GSC — Audit Report / Information 2021

Nov 15, 2021

Stock Code: 2406

Gigastorage Corporation

Parent Company Only Financial Statements For the Years Ended December 31, 2021 and 2020 and Independent Auditor’s Report

Address: No. 3, Industrial 1st Road, Hukou Township, Hsinchu County TEL: (03)598-5510

-----------------------------------------------------------------------------------------------------------------------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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§Table of Contents§

Item Page 1. Cover 1 2. Table of Contents 2 3. Independent Auditor’s Report 3~7 4. Parent Company Only Balance Sheet 8 5. Parent Company Only Comprehensive Income Statement 9~10 6. Parent Company Only Statement of Changes in Shareholders’ Equity 11 7. Parent Company Only Cash Flow Statement 12~14 8. Notes to Parent Company Only Financial Statements (1) Company History 15 (2) Date and Procedures for Approval of Financial Statements 15 (3) Application of New and Revised Standards and Interpretation 15~20 (4) Summary of Significant Accounting Policies 20~35 (5) Significant Accounting Judgments and Estimations, and Main Sources of Assumption Uncertainties 35~36 (6) Summary of Significant Accounting Items 36~78 (7) Related Party Transactions 78~83 (8) Pledged Assets 84 (9) Significant Contingent Liabilities and Unrecognized Contract Commitments 84~86 (10) Significant Disaster Loss - (11) Significant Subsequent Events - (12) Others 86~87 (13) Additional Disclosure 1. Information on significant transactions 87 2. Information on invested enterprises 87 3. Information on investment in mainland China 87 4. Information on major shareholders 88 (14) Segment Information - 9. Schedule of Important Accounting Items 102~117

Financial Statements Number of Notes

- - - - - - - 1 2 3 4 5 6~29 30 31 32 - - 33 34 34 34 34 - -

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INDEPENDENT AUDITORS’ REPORT

To the Board of Directors and Shareholders Gigastorage Corporation

Audit opinion

We have audited the parent company only balance sheet of Gigastorage Corporation as of December 31, 2021 and 2020, and the parent company only comprehensive income statements, parent company only statement of changes in shareholders’ equity, parent company only cash flow statements, and notes to the parent company only financial statements (including significant accounting policies) for the years then ended.

In our opinion, based on our audits and the reports of other independent auditors (please refer to the Other Matters paragraph), the parent company only financial statements referred to above present fairly, in all material respects, the individual financial position of Gigastorage Corporation as of December 31, 2021 and 2020 and its individual financial performance and cash flows for the years ended December 31 2021 and 2020, in conformity with the requirements of regulations governing the preparation of financial statements by securities issuers.

Basis of Opinion

We conducted the audit in accordance with the Regulations Governing Auditing and Attestation of Financial Statements by Certified Public Accountant and the Generally Accepted Auditing Standards. Our responsibilities under those standards are further described in the responsibilities of auditors for the audit of the parent company only financial statements. We are independent of Gigastorage Corporation and its subsidiaries in accordance with the Code of Professional Ethics for Certified Public Accountants, and we have fulfilled our other ethical responsibilities in accordance with the Code. Based on our audits and the reports of other independent auditors, we believed that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Key Audit Matters

Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the 2021 parent company only financial statements of Gigastorage Corporation and its subsidiaries. These matters were addressed in the content of our audit of the parent company only financial statements as a whole, and in forming our opinion thereon, and we do not provide separate opinions on those matters.

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Key audit matters of the 2021 parent company only financial statements of Gigastorage Corporation were as follows: Authenticity of revenues

As stated in Note 10 to the parent company only financial statements, investments accounted for using the equity method of Gigastorage Corporation amounted to NT$3,393,237 thousand, or 68% of total assets as of December 31, 2021, and the shares of profits or losses of subsidiaries, affiliates and joint ventures using the equity method was NT$(120,395) thousand, or 581% of net income before tax from January 1, 2021 to December 31, 2021. The financial status and performance of its subsidiaries would significantly affect Gigastorage Corporation.

The sales revenues of Gigastorage Corporation and its subsidiaries are mainly from the sales of solar conductive plasma and silicon excipients, which account for 85% of the consolidated revenues. The sales revenues of solar conductive plasma and silicon excipients changed significantly in 2021 (see Note 19), and the customer portfolio changed in the past two years; therefore, we have included the authenticity of the aforementioned revenues as a key audit matter.

We have performed the following key audit procedures:

1. We assessed the effectiveness of the design and implementation of internal control practices related to sales transactions by understanding the related internal control systems and operating procedures related to the sales transaction cycle.

2. To confirm the authenticity of revenue, we selected samples from the sales details, reviewed the original customer orders, shipping documents or export declarations and sales invoices, and examined whether there were any abnormalities in the receivable collections and the customers to whom the sales were made.

Other Matters

The financial statements of certain equity-method investees have not been audited by us, but by other independent auditors. Therefore, of our opinions on the parent company only financial statements referred to above, the amounts included in the financial statements were based on the audit reports of other independent auditors. As of December 31, 2021 and 2020, the above-mentioned investments under the equity method amounted to NT$1,347,041 thousand and NT$1,040,119 thousand, or 27.02% and 20.55% of total assets, respectively; the share of investment losses recognized under the equity method amounted to NT$1,957 thousand and NT$293 thousand, or 9.44% and (0.06)% of net income (loss) before tax, respectively for the years ended December 31, 2021 and 2020.

The financial statements of certain equity-method investees prepared in accordance with different financial reporting framework have not been audited by us, but have been audited by other independent auditors in accordance with different auditing standards. The above-mentioned financial statements have been converted into adjusted financial statements that conform to the

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regulations governing the preparation of financial statements by securities issuers and we have performed the requisite audit procedures. Therefore, of our opinions on the parent company only financial statements referred to above, the amounts included in the financial statements were based on the audit reports of other independent auditors and the result of additional audit procedures performed in accordance with the Regulations Governing Auditing and Attestation of Financial Statements by Certified Public Accountants and relevant provisions of auditing standards generally accepted in the Republic of China. As of December 31, 2021 and 2020, the above-mentioned investments under the equity method amounted to NT$11,962 thousand and NT$40,923 thousand, or 0.24% and 0.81% of total assets, respectively; the share of investment losses recognized under the equity method amounted to NT$3,319 thousand and NT$(6,406) thousand, or 16% and 1.21% of net income (loss) before tax, respectively for the years 2021 and 2020.

Responsibilities of Management and Those Charged with Governance for the Financial Statements

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

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

Those in charge of corporate governance (including the Auditing Committee) are responsible for overseeing the reporting process of the financial statements of Gigastorage Corporation.

Auditor’s Responsibilities for the Audit of the Parent company only financial statements

Our objectives are to obtain reasonable assurance about whether the parent company only financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with the generally accepted accounting principles will always detect a material misstatement when it exists. Misstatements can arise from fraud or error. Misstatements are considered material, individually or in aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these parent company only financial statements.

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

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

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

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

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

5. Evaluate the overall presentation, structure, and content of the parent company only financial statements (including related notes), whether the parent company only financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

6. Obtain sufficient and appropriate audit evidence regarding the financial information or the entities or business activities of Gigastorage Corporation to express an opinion on the parent company only financial statements. We are responsible for the direction, supervision and performance of the audit of Gigastorage Corporation, and forming the audit opinion on Gigastorage Corporation.

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 in charge of governance with a statement that we have complied with relevant ethical requirements regarding independence, and communicate with them all

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relationships and other matters that may reasonably be thought to affect our independence, and other matters (including related protective measures).

From the matters communicated with those in charge of corporate governance, we determine those matters that were of most significance in the audit of the 2021 parent company only financial statements of Gigastorage Corporation and its subsidiaries and are therefore the key audit matters. We describe these matters in our auditor’s 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.

The engagement partners on the audits resulting in this independent auditors’ report are Huang, Yu-Feng and Chung, Ming-Yuan.

Deloitte & Touche Taipei, Taiwan Republic of China March 30, 2022

Notice to Readers

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

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

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Gigastorage Corporation

Parent Company Only Balance Sheet December 31, 2021 and 2020

Code 1100 1140 1150 1170 1180 1200 1210 1220 130X 1410 1476 1479 11XX 1517 1550 1600 1755 1760 1780 1980 1990 15XX 1XXX	Assets Current assets Cash (Notes 4 and 6) Contract assets – current (Notes 4, 20 and 30) Notes receivable, net (Notes 4 and 8) Accounts receivable, net (Notes 4, 8 and 20) Accounts payable – related party, net (Notes 4, 8, 20 and 30) Other receivables (Notes 4 and 8) Other receivables – related parties (Notes 4, 8 and 30) Current income tax assets (Notes 4 and 22) Inventories (Notes 4 and 9) Prepayments (Note 15) Other financial assets – current (Notes 4 and 31) Other current assets (Notes 15, 31 and 32) Total current assets Non-current assets Financial assets at fair value through other comprehensive income – non-current (Notes 4 and 7) Investments using the equity method (Notes 4, 10, 30 and 31) Property, plant and equipment (Notes 4, 11, 30 and 31) Right-of-use assets (Notes 4 and 12) Investment property (Notes 4, 13 and 31) Intangible assets (Notes 4 and 14) Other financial assets – non-current (Notes 4 and 31) Other non-current assets (Notes 4, 15, 18, 31 and 32) Total non-current assets Total assets		December 31,2021	December 31,2021	% 4 3 - 3 1 - - - - 7 - - 18 1 68 7 1 3 - - 2 82 100		December 31,2020	December 31,2020	% 2 3 - 2 - - - - 1 7 - 5 20 1 63 8 1 3 - - 4 80 100	Code 2100 2110 2150 2170 2180 2200 2220 2230 2280 2322 2399 21XX 2540 2580 2645 25XX 2XXX 3110 3200 3310 3320 3350 3400 3XXX	Liabilities and equity Current liabilities Short-term borrowings (Notes 16 and 31) Short-term notes and bills payable (Notes 16 and 31) Notes payable Accounts payable Accounts payable – related party (Note 30) Other payables (Notes 17 and 32) Other payables – related party (Note 29) Current income tax liabilities (Notes 4 and 22) Lease liabilities – current (Notes 4, 12 and 30) Long-term borrowings due within one year (Notes 16 and 31) Other current liabilities (Notes 17, 20 and 30) Total current liabilities Non-current liabilities Long-term borrowings (Notes 16 and 31) Lease liabilities – non-current (Notes 4, 12 and 30) Deposits received Total non-current liabilities Total liabilities Equity (Notes 4, 19, 24 and 26) Capital stock Ordinary share capital Capital surplus Retained earnings Legal reserve Special reserve Unappropriated earnings (Accumulated profit or loss) Other equity Total equity Total liabilities and equity		December 31,2021	December 31,2021	% 15 4 - 1 - 1 - - - 5 - 26 14 1 1 16 42 57 10 - 3 10 ) 2) 58 100		Unit: NTD thousands December 31,2020 Amount % $ 1,490,814 30 - - 648 - 47,054 1 1,111 - 570,183 11 959 - 4,039 - 3,752 - 84,000 2 5,670 - 2,208,230 44 293,500 6 24,394 - 449 - 318,343 6 2,526,573 50 2,859,057 56 250,109 5 14,689 - 155,982 3 571,686 ) ( 11 ) 173,047) ( 3) 2,535,104 50 $ 5,061,677 100	Unit: NTD thousands December 31,2020 Amount % $ 1,490,814 30 - - 648 - 47,054 1 1,111 - 570,183 11 959 - 4,039 - 3,752 - 84,000 2 5,670 - 2,208,230 44 293,500 6 24,394 - 449 - 318,343 6 2,526,573 50 2,859,057 56 250,109 5 14,689 - 155,982 3 571,686 ) ( 11 ) 173,047) ( 3) 2,535,104 50 $ 5,061,677 100
			Amount $ 179,549 167,117 13,440 143,625 19,111 3,615 7,310 32 18,411 318,838 16,214 4,315 891,577 47,449 3,393,237 361,554 23,863 167,077 932 - 100,450 4,094,562 $ 4,986,139				Amount $ 116,979 170,113 4,693 90,684 9,627 2,572 8,060 27 31,201 325,691 15,003 252,254 1,026,904 44,459 3,199,373 402,231 27,740 166,154 915 1,200 192,701 4,034,773 $ 5,061,677						Amount $ 737,257 199,338 104 79,598 189 30,988 1,035 - 3,673 236,000 25,514 1,313,696 715,500 20,721 41,657 777,878 2,091,574 2,859,057 498,574 14,689 155,982 533,647 ) 100,090) 2,894,565 $ 4,986,139				Amount $ 1,490,814 - 648 47,054 1,111 570,183 959 4,039 3,752 84,000 5,670 2,208,230 293,500 24,394 449 318,343 2,526,573 2,859,057 250,109 14,689 155,982 571,686 ) 173,047) 2,535,104 $ 5,061,677
												( (		( (		( (		( (

The accompanying notes are an integral part of the parent company only financial statements. (Please refer to the audit report dated March 30, 2022 of Deloitte and Touche)

Managerial officer: Chen, Chi-Ming

Accounting officer: Tsai, Jyh- Pyng

Chairperson: Chen, Chi-Ming

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Gigastorage Corporation

Parent Company Only Comprehensive Income Statement

January 1 to December 31, 2021 and 2020

(In thousands of NT$, but Earnings per share is in NT$)

Code 4000 Net operating revenues (Notes 20 and 30) 5000 Operating cost (Notes 9, 14, 21 and 30) 5900 Operating gross profits 5910 Unrealized profits on sales 5920 Realized sales profits 5950 Realized operating gross profits Operating expenses (Notes 8, 14, 21 and 30) 6100 Marketing expenses 6200 Administration expenses 6300 R&D expenses 6450 Expected credit reversal gain 6000 Total 6500 Net other income and expenses (Note 32) 6900 Net operating income (loss) Non-operating income and expenses 7100 Interest income (Note 21) 7010 Other income (Notes 21, 25 and 30) 7060 Share of profits or losses of subsidiaries, affiliates and joint ventures using the equity method (Notes 4 and 10) 7050 Financial costs (Notes 21 and 30) 7020 Other gains and losses (Notes 4 and 21) 7000 Total		2021		% 100 95 5 8 ) 5 2 2 20 3 - 25 44 21 - 9 21 ) 5 ) 1) 18)		2020
		Amount $ 576,818 550,685 26,133 47,313 ) 31,685 10,505 11,846 115,524 16,455 1,177) 142,648 254,805 122,662 499 49,967 120,395 ) 28,181 ) 3,814) 101,924)				Amount $ 530,454 438,594 91,860 31,685 ) 13,098 73,273 7,762 117,860 53,742 382) 178,982 409,885) 515,594) 173 63,044 77,380 140,283 ) 16,137) 15,823)		%
	( ( ( ( ( (		( ( ( ( (		( ( ( ( ( ( (		( ( ( ( ( (	100 83 17 6 ) 3 14 2 22 10 - 34 77) 97) - 12 15 27 ) 3) 3)

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Code 7900 Net income (loss) before tax 7950 Income tax gains (expense) (Notes 4 and 22) 8200 Net income (loss) for the year Other comprehensive income 8310 Items not to be reclassified as profit or loss: 8311 Remeasurement of defined benefit plan 8316 Unrealized gains or losses on investments in equity instruments measured at fair value through other comprehensive income 8331 Remeasurement of defined benefit plans of subsidiaries recognized under the equity method 8336 Other comprehensive income of subsidiaries recognized under the equity method is measured at fair value. 8360 Items that may be reclassified subsequently to profit or loss: 8361 Exchange differences on translation of financial statements of foreign operations 8381 Exchange differences on translation of financial statements of foreign operations of subsidiaries recognized under the equity method 8300 Other comprehensive income for the year (net after tax) 8500 Total comprehensive income for the year Earnings per share (Note 23) 9750 Basic 9850 Diluted		2021		% 3 1 4 - - - 19 - 4) 15 19		2020
		Amount $ 20,738 4,058 24,796 1,931 ) 2,990 906 109,825 4,268 ) 21,573) 85,949 $ 110,745 $ 0.09 $ 0.09				Amount $ 531,417 ) 4,058) 535,475) 60 ) 30,537 2,009 ) 14,167 1,950 ) 3,483 44,168 $ 491,307) $ 2.17) $ 2.17)		%
	( ( (		(		( ( ( ( ( ( ( ( (		( ( ( ( ( (	100 ) 1) 101) - 6 1 ) 3 1 ) 1 8 93)

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

(Please refer to the audit report dated March 30, 2022 of Deloitte and Touche)

Chairperson: Chen, Chi-Ming Managerial officer: Chen, Chi-Ming

Accounting officer: Tsai, Jyh- Pyng

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Gigastorage Corporation

Parent Company Only Statement of Changes in Shareholders’ Equity

January 1 to December 31, 2021 and 2020

Code A1 Balance as of January 1, 2020 Appropriation and distribution of 2019 earnings B1 Legal reserve B3 Special reserve E1 Cash capital increase N1 Share-based payment (Note 24) C7 Changes in affiliates and joint ventures recognized under the equity method D1 Net loss for 2020 D3 Other comprehensive income for 2020 D5 Total comprehensive income for 2020 H3 Organization restructuring M5 Disposal of equity in subsidiaries (Note 26) M7 Changes in ownership interest in subsidiaries (Notes 19 and 26) Q1 Disposal of equity instruments at fair value through other comprehensive income Q1 Disposal of equity instruments at fair value through other comprehensive income by a subsidiary Z1 Balance as of December 31, 2020 O1 Subsidiary share based payment transactions D1 Net income for 2021 D3 Other comprehensive income for 2021 D5 Total comprehensive income for 2021 M5 Disposal of equity in subsidiaries (Note 26) M7 Changes in ownership interest in subsidiaries (Notes 19 and 26) C7 Changes in affiliates and joint ventures recognized under the equity method Q1 Disposal of equity instruments at fair value through other comprehensive income by a subsidiary Z1 Balance as of December 31, 2021	Capital	stock Amount $ 2,059,057 - - 800,000 - - - - - - - - - - 2,859,057 - - - - - - - - $ 2,859,057		Capital surplus $ 211,927 - - 117,249 ) 1,432 1,935 - - - - 26,034 126,030 - - 250,109 16,545 - - - 26,481 204,909 530 - $ 498,574				Retained earnings	Unappropriated earnings (Accumulated profits or losses) $ 146,887 ( 14,689 ) ( 132,198 ) ( 6,248 ) - - ( 535,475 ) ( 2,069) ( 537,544) ( 6,659 ) - - ( 2,093 ) ( 19,142) ( 571,686 ) - 24,796 ( 1,025) 23,771 - - - 14,268 ($ 533,647)	Other equity Exchange differences on Unrealized gains (losses) translation of financial on financial assets at fair statements of foreign value through other operations comprehensive income ( $ 114,115 ) ( $ 145,597 ) - - - - - - - - - - - - 1,533 44,704 1,533 44,704 - - 15,258 3,935 - - - 2,093 - 19,142 ( 97,324 ) ( 75,723 ) - - - - ( 25,841) 112,815 ( 25,841) 112,815 152 ( 109 ) 208 - - - - ( 14,268) ($ 122,805) $ 22,715	Other equity Exchange differences on Unrealized gains (losses) translation of financial on financial assets at fair statements of foreign value through other operations comprehensive income ( $ 114,115 ) ( $ 145,597 ) - - - - - - - - - - - - 1,533 44,704 1,533 44,704 - - 15,258 3,935 - - - 2,093 - 19,142 ( 97,324 ) ( 75,723 ) - - - - ( 25,841) 112,815 ( 25,841) 112,815 152 ( 109 ) 208 - - - - ( 14,268) ($ 122,805) $ 22,715		Unit: NTD thousands Total equity
										Exchange differences on translation of financial statements of foreign operations ( $ 114,115 ) - - - - - - 1,533 1,533 - 15,258 - - - ( 97,324 ) - - ( 25,841) ( 25,841) 152 208 - - ($ 122,805)
						Legal reserve $ - 14,689 - - - - - - - - - - - - 14,689 - - - - - - - - $ 14,689		Special reserve $ 23,784 - 132,198 - - - - - - - - - - - 155,982 - - - - - - - - $ 155,982
	Number of shares (in thousands) 205,906 - - 80,000 - - - - - - - - - - 285,906 - - - - - - - - 285,906
			(						( ( ( ( ( ( ( ( ( ( ( (	( ( ( ( (	( ( ( (	( ( (	$ 2,181,943 - - 676,503 1,432 1,935 535,475 ) 44,168 491,307) 6,659 ) 45,227 126,030 - - 2,535,104 16,545 24,796 85,949 110,745 26,524 205,117 530 - $ 2,894,565

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

(Please refer to the audit report dated March 30, 2022 of Deloitte and Touche)

Chairperson: Chen, Chi-Ming

Managerial officer: Chen, Chi-Ming

Accounting officer: Tsai, Jyh- Pyng

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Gigastorage Corporation

Parent Company Only Cash Flow Statement January 1 to December 31, 2021 and 2020

Unit: NTD thousands

Code Cash flow from operating activities: A10000 Net income (loss) before tax for the year A20000 Adjustments: A20010 Income or expenses having no effect on cash flows A20100 Depreciation expense A20200 Amortization expenses A20300 Expected credit reversal gain A20400 Net loss on financial assets and liabilities at fair value through profit or loss A20900 Financial costs A21200 Interest income A21300 Dividend income A21900 Share-based remuneration costs A22300 Share of profits or losses of subsidiaries, affiliates and joint ventures accounted for using the equity method A22500 Gain on disposal and scrapping of property, plant and equipment A23200 Loss on disposal of investment accounted for using the equity method A23700 Impairment loss on non-financial assets A23800 Loss on decline in value of inventories (reversal gain) A23900 Unrealized profits on sales A24000 Realized sales profits A24100 Unrealized foreign currency exchange loss A29900 Compensation loss from expected litigation loss (gain from reversal) (Note 32)	2021 $ 20,738 47,925 581 ( 1,177 ) - 28,181 ( 499 ) ( 1,078 ) - 120,395 ( 112 ) - - ( 11,836 ) 47,313 ( 31,685 ) 721 ( 254,805 )	2020
		( $ 531,417 ) 51,504 733 ( 382 ) 62 140,283 ( 173 ) - 527 ( 77,380 ) ( 475 ) 444 7,046 3,608 31,685 ( 13,098 ) 1,227 409,885

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Code A30000 Net changes in assets/liabilities related to operating activities. A31125 Contract assets A31130 Notes receivables A31150 Accounts receivables A31160 Accounts receivable – related party A31180 Other receivables A31190 Other receivables – related party A31200 Inventories A31230 Prepayments A31240 Other current assets A32130 Notes payable A32150 Accounts payable A32160 Accounts payable – related party A32180 Other payables A32190 Other payables – related party A32230 Other current liabilities A32240 Net defined benefit liabilities A33000 Cash inflow (outflow)from operations A33100 Interests received A33500 Income tax returned AAAA Net cash inflow (outflow) from operating activities Cash flow from investment activities: B00010 Acquisition of financial assets measured at fair value through other comprehensive income B00020 Disposal of financial assets measured at fair value through other comprehensive income B00200 Disposal of Financial assets at fair value through profit or loss B01800 Acquisition of investment accounted for using the equity method B02300 Net cash inflow from disposal of subsidiaries B02700 Acquisition of property, plant and equipment	2021 $ 2,996 ( 8,747 ) ( 53,451 ) ( 9,484 ) ( 1,043 ) 738 24,626 6,853 ( 1,947 ) ( 544 ) 32,741 ( 922 ) ( 272,240 ) 76 19,844 ( 2,922) ( 298,764 ) 499 14 ( 298,251) - - - ( 93,790 ) - ( 4,178 )	2020
		$ 69,929 ( 2,123 ) ( 2,074 ) ( 7,172 ) ( 958 ) 25,021 2,519 29,145 ( 1,854 ) ( 2,293 ) ( 3,463 ) ( 6,402 ) ( 2,162 ) 107 1,561 ( 2,684) 121,176 266 143 121,585 ( 3,816 ) 104 2,411 ( 456,151 ) 1,876 ( 3,193 )

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Code B02800 Proceeds from disposal of property, plant and equipment B03800 Decrease (increase) in refundable deposits B04500 Acquisition of intangible assets B06600 Decrease (increase) in other financial assets B06800 Increase in other non-current assets B07600 Dividends received BBBB Net cash inflow (outflow) from investment activities Cash flow from financing activities: C00100 Increase (decrease) in short-term borrowings C00500 Increase in short-term notes and bills payable C01300 Repayment of corporate bonds C01600 Borrowing of long-term loans C01700 Repayment of long-term loans C03100 Increase (decrease) in guarantee deposits received C04020 Repayment of lease principal C04600 Cash capital increase C05500 Disposal of equity in subsidiaries (Note 26) C09900 Return of share proceeds from capital reduction of subsidiaries C05600 Interests paid CCCC Net cash outflow from financing activities DDDD Effect of exchange rate changes on cash EEEE Net increase (decrease) in cash and cash equivalents E00100 Cash balance at the beginning of the year E00200 Cash balance at the end of the year	2021 $ 176 423,633 ( 598 ) ( 11 ) ( 89,554 ) 65,698 301,376 ( 753,557 ) 199,315 - 740,000 ( 166,000 ) 41,208 ( 3,752 ) - 4,877 28,012 ( 29,209) 60,894 ( 1,449) 62,570 116,979 $ 179,549	2020
		$ 475 ( 409,889 ) - 111,075 ( 1,161 ) 59,466 ( 698,803) 552,853 - ( 1,236,360 ) 250,000 ( 34,000 ) ( 1,009 ) ( 3,695 ) 676,503 289,268 - ( 24,236) 469,324 ( 2,378) ( 110,272 ) 227,251 $ 116,979

The accompanying notes are an integral part of the parent company only financial statements. (Please refer to the audit report dated March 30, 2022 of Deloitte and Touche)

Chairperson: Chen, Chi-Ming Managerial officer: Chen, Chi-Ming Accounting officer: Tsai, Jyh- Pyng

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Gigastorage Corporation

Notes to Parent Company Only Financial Statements

January 1 to December 31, 2021 and 2020

(Units: NTD thousands, unless otherwise stated)

1. Company History

Gigastorage Corporation (hereinafter referred to as the “Company”) was established on March 26, 1997 and began operations on December 1, 1997. The Company is engaged in the manufacturing of computers and peripherals, international trade, manufacturing and reproduction of data storage media, manufacturing and trading of electronic materials, components and silicon wafers, energy technology services, and non-public power generation. The Company’s shares are listed and traded on Taiwan Stock Exchange.

The parent company only financial statements are presented in NTD, the functional currency of the Company.

1. Date and Procedures for Approval of Parent Company Only Financial Statements The parent company only financial statements were approved by the board meeting on March 28, 2022.

2. Application of New and Revised Standards and Interpretation

3. (1) First-time application of International Financial Reporting Standards (“IFRSs”), International Accounting Standards (“IAS”), Interpretations (“IFRICs”) and Interpretations (“SICs”) (hereinafter referred to as “IFRSs”) endorsed by the Financial Supervisory Commission (“FSC”) and issued to be effective

   • The adoption of the IFRSs endorsed and issued into effect by the FSC will not result in significant changes in the Company’s accounting policies.

4. (2) IFRSs endorsed by the FSC and applicable in 2022.

IFRSs endorsed by the FSC and applicable in 2022.
New, Revised or Amended Standards and Interpretations “Annual improvement of IFRSs 2018-2020” Amendment to IFRS 3 “Reference to Conceptual Frameworks” Amendment to IAS 16 “Property, plant and equipment: price before reaching the intended state of use” Amendment to IAS 37 “Onerous Contracts – Cost of Performing Contracts.”	Effective date of IASB publication
	January 1, 2022 (Note 1) January 1, 2022 (Note 2) January 1, 2022 (Note 3) January 1, 2022 (Note 4)

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• Note 1: Amendments to IFRS 9 apply to exchanges or modification of terms of financial liabilities in annual reporting periods after 1 January 2022; amendments to IAS 41 “Agriculture” apply to fair value measurements in annual reporting periods after 1 January 2022; amendments to IFRS 1 “First application of IFRSs” apply retrospectively to annual reporting periods after 1 January 2022.

• Note 2: This amendment applies to business mergers for which the acquisition date falls within the annual reporting period after January 1, 2022.

• Note 3: This amendment applies to plant, property and equipment that begins to operate in the manner such as location and condition expected by management after January 1, 2021.

• Note 4: This amendment applies to contracts with unfulfilled obligations as of January 1, 2022.

• Amendment to IAS 16 “Property, plant and equipment: price before reaching the intended state of use”

• The amendment provides that the sale price of output items of property, plant and equipment produced to bring them to the location and condition necessary to meet management’s expectations for the manner in which they will be operated is not appropriate as a deduction to the cost of those assets. The above-mentioned output items shall be measured according to IAS 2 “Inventory,” and the sales price and cost shall be recognized in profit or loss according to the applicable standards.

The amendment applies to plant, property and equipment in the location and condition necessary to achieve management’s intended mode of operation after January 1, 2021, and the information of the comparative period shall be restated when the amendment is first applied by the Company.

In addition to the impacts above, the Company assesses that the amendments to other standards and interpretations will not have a significant impact on the financial position and financial performance as of the date of issuance of this individual financial report.

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• (3) The IFRSs released by the IASB but not yet endorsed and issued into effect by the

FSC

FSC
New, Revised or Amended Standards and Interpretations Amendment to IFRS 10 and IAS 28, “Sale or Contribution of Assets between an Investor and its Affiliate or Joint Venture.” IFRS 17 “Insurance Contracts” Amendment to IFRS 17 Amendment to IFRS 17 “First application of IFRS 17 and IFRS 9 – comparative information” Amendment to IAS 1 “Classification of Liabilities as Current or Noncurrent” Amendment to IAS 1 “Disclosure of Accounting Policies.” Amendment to IAS 8 “Definition of Accounting Estimates.” Amendment to IAS 12 “Deferred income tax relating to assets and liabilities arising from a single transaction”	Effective date of IASB publication(Note 1)
	Undecided January 1, 2023 January 1, 2023 January 1, 2023 January 1, 2023 January 1, 2023 (Note 2) January 1, 2023 (Note 3) January 1, 2023 (Note 4)

• Note 1: Unless otherwise stated, the aforementioned new/amended/revised standards

or interpretation

are effective for annual reporting periods beginning after the respective dates.

• Note 2: This amendment will be applicable for annual reporting periods beginning after January 1, 2023.

• Note 3: This amendment applies to changes in accounting estimates and changes in accounting policies that occur in annual reporting periods beginning after January 1, 2023.

• Note 4: Other than the recognition of deferred tax on temporary differences in lease and decommissioning obligations on January 1, 2022, the amendment applies to transactions occurring after January 1, 2022.

• Amendment to IFRS 10 and IAS 28, “Sale or Contribution of Assets between an Investor and its Affiliate or Joint Venture.”

• The amendment provides that if the Company sells or contributes an asset to an affiliate (or joint venture), or if the Company loses control of a subsidiary but retains significant influence (or joint control) over the subsidiary, the Company shall recognize all of the gains or losses from such transactions if the

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aforementioned asset or subsidiary meets the definition of “business” in “business merger” under IFRS 3.

In addition, if the Company sells or contributes an asset to an affiliate (or joint venture), or if the Company loses control of a subsidiary but retains significant influence (or joint control) over the subsidiary, the Company shall recognize gains and losses from such transactions only to the extent that they are not related to the investor’s interest in the affiliate (or joint venture), i.e. they are eliminated to the extent of the Company’s share of such gains and losses if the aforementioned asset or subsidiary does not meet the definition of “business” in “business merger” under IFRS 3.

1. Amendment to IAS 1 “Classification of Liabilities as Current or Noncurrent” The amendment aims to clarify whether a liability is classified as non-current; the Company should assess whether it has the right to defer settlement at the end of the reporting period for at least 12 months after the reporting period. If the Company has such a right as of the end of the reporting period, the liability is classified as non-current whether or not the Company exercises its right to defer settlement of a liability. The amendment aims to clarify if the Company is required to comply with certain conditions in order to have the right to defer settlement of a liability. The Company must have complied with specific conditions as of the end of the reporting period, even if the lender tests whether the Company has complied with those conditions at a later date.

The amendment provides the purpose to clarify that settlement refers to the transfer to the counterparty of cash, other economic resources or equity instruments of the Company that results in the extinguishment of the liability. However, if the terms of the liability may result in transferring the Company’s equity instruments at the option of the counterparty, and if the option is separately recognized in equity in accordance with IAS 32, “Financial Instruments: Presentation,” the above-mentioned provisions do not affect the classification of the liability.

1. Amendment to IAS 1 “Disclosure of Accounting Policies.”

The amendment specifies that the Company shall determine the material accounting policy information to be disclosed based on the definition of materiality. Accounting policy information is considered material if it could reasonably be expected to affect the decisions of the primary users of the

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general-purpose financial statements based on those financial statements. The amendment also clarifies:

• Accounting policy information related to immaterial transactions, other events or circumstances is immaterial and the Company is not required to disclose such information.

• The Company may determine that related accounting policy information is material because of the nature of the transactions, other events or circumstances, even if the amount is not material.

• Not all accounting policy information related to significant transactions, other events or circumstances is material.

In addition, the amendment provides examples of accounting policy information that may be material if it relates to significant transactions, other events or circumstances and under the following circumstances, the information may be material:

• (1) A change in the Company’s accounting policy during the reporting period that results in a material change in financial statement information;

• (2) The Company selects applicable accounting policies from among the options permitted by the standards;

• (3) Due to the lack of specific standards, the Company establishes accounting policies in accordance with IAS 8 “Accounting Policies, Changes and Errors in Accounting Estimates”;

• (4) The Company discloses the relevant accounting policies that require the application of significant judgments or assumptions; or

• (5) that it involves complex accounting requirements when users of financial statements rely on such information to understand such significant transactions, other events or circumstances.

• Amendment to IAS 8 “Definition of Accounting Estimates.”

• The amendment explicitly specifies that accounting estimate represents the monetary amounts in the financial statements that are subject to measurement uncertainty. In applying accounting policies, the Company may need to measure financial statement items using monetary amounts that are not directly observable but must be estimated, and therefore measurement techniques and input values are required to create accounting estimates for this purpose. The effect of changes in measurement techniques or input values on accounting

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estimates that are not corrections of prior period errors are accounted for as changes in accounting estimates.

In addition to the above effects, the Company will continue to evaluate the effect of the amendment to other standards on the financial positions and performance of the Company to the date the parent company only financial statements are approved and released, and will make appropriate disclosure after the evaluation.

1. Summary of Significant Accounting Policies

2. (1) Compliance Statement

The parent company only financial statements were prepared in accordance with the Regulations Governing the Preparation of Financial Statements by Securities Issuers.

• (2) Basis of preparation

This individual financial report is prepared on a historical cost basis, except for financial instruments at fair value and net defined benefit liabilities recognized at the present value less net defined benefit liabilities recognized at the fair value of plan assets.

The evaluation of fair value could be classified into Level 1 to Level 3 by the observable intensity and importance of the related input value:

1. Level 1 input value: refers to the quotation of the same asset or liability in an active market as of the evaluation (before adjustment).

2. Level 2 input value: refers to the direct (the price) or indirect (inference of price) observable input value of asset or liability further to the quotation of Level 1.

3. Level 3 input value: the unobservable input value of asset or liability.

When preparing the parent company only financial statements, the Company processed the investment in subsidiaries and associates under the equity method. In order to make the same the current profit or loss, other comprehensive income and equity in the parent company only financial statements as the current year’s profit or loss, other comprehensive income and equity attributable to the owners of the Company in the consolidated financial statements, certain accounting differences between the individual basis and consolidated basis are adjusted for “investments using the equity method,” “share of profit or loss of subsidiaries, affiliates and joint ventures using the equity method,” “share of other comprehensive income of subsidiaries, affiliates and joint ventures using the equity method” and related equity items.

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• (3) Standards in differentiating current and noncurrent assets and liabilities

• Current assets include:

• Assets held primarily for trading purposes;

• Assets expected to be realized within 12 months of the balance sheet date; and

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

Current liabilities include:

1. Liabilities held primarily for trading purposes;

2. Liabilities due for settlement within 12 months after the balance sheet date (current liabilities even if a long-term refinancing or rescheduling agreement is completed after the balance sheet date and before the financial statements are authorized for issuance), and

3. Liabilities whose settlement deadline cannot be unconditionally deferred until at least 12 months after the balance sheet date. If the terms of the liability, at the option of the counterparty, result in the settlement of the liability by the issuance of equity instruments, the classification is not affected.

Those that are not current assets or liabilities above are classified as noncurrent assets or liabilities.

• (4) Foreign currency

• For the transactions conducted in a currency other than the business entity’s functional currency (foreign currency), it is to be translated to the functional currency in accordance with the exchange rate on the transaction date when preparing financial statements.

Foreign currency monetary items are translated at the closing rate on each balance sheet date. The exchange differences arising from the settlement of monetary items or translating monetary items are recognized in profit or loss in the period in which they occur.

The foreign non-currency items measured at fair value are translated in accordance with the exchange rate on the fair value determination date and the exchange difference is booked as profit or loss in the period. However, for the changes in fair value recognized in other comprehensive income, the exchange difference is recorded in other comprehensive income.

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The foreign non-currency items measured at historical cost are translated in accordance with the exchange rate on the transaction date without the need for a retranslation.

When preparation of the individual financial report, the assets and liabilities of overseas operating institutions (including the subsidiaries in the countries of business operation or those using currencies different from the Company’s) were converted to New Taiwan dollars based on the exchange rate quoted on every balance sheet date. Income and expense items are translated at the average exchange rate for the period and the exchange differences are booked in other comprehensive income.

• (5) Inventories

Inventory includes raw materials, supplies, finished goods and work-in-process. Inventory is valued in accordance with the lower of cost or net realizable value. When comparing cost and net realizable value, except for the homogeneous inventories, it is based on the itemized lower of cost or net realizable value. Net realizable value refers to the estimated sale price under normal circumstances net of the estimated cost needed to completion and the estimated expenses needed to consummate the sale. The cost of inventory is calculated using the weighted average method.

• (6) Investments in subsidiaries

The Company adopts the equity method for investment in subsidiaries.

A subsidiary is an entity (including a structured entity) over which the Company has control.

Under the equity method, investments in subsidiaries are originally recognized at cost; the book value after the acquisition date fluctuates along with the distribution of profit or loss from the subsidiaries and other comprehensive income by the Company. Additionally, the change in the interests the Company holds in subsidiaries is recognized pro rata to the shareholding percentages.

When a change in the Company’s ownership interest in a subsidiary does not result in a loss of control, it is treated as an equity transaction. The difference between the carrying amount of the investment and the fair value of the consideration paid or received is recognized directly in equity.

When the Company’s share of losses in a subsidiary equals or exceeds its interest in the subsidiary (including the carrying amount of the subsidiary under the equity method and other long-term interests that are in substance a component of the

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Company’s net investment in the subsidiary), the Company continues to recognize losses in proportion to its equity in the subsidiary.

The excess of the acquisition cost over the Company’s share of the net fair value of the identifiable assets and liabilities of the subsidiaries constituting the business at the acquisition date is recorded as goodwill, which is included in the carrying amount of the investment and is not amortized; the excess of the Company’s share of the net fair value of the identifiable assets and liabilities of the subsidiaries constituting the business at the acquisition date over the acquisition cost is recorded as gain or loss for the period.

The Company assesses impairment based on the cash-generating units as a whole in the financial statements and compares their recoverable amounts with their book values. If the amount of recoverable assets increased in the future, the reversal of impairment shall be recognized as income. The book value of the reversal of impaired assets shall not exceed the book value before recognition for impairment net of amortization. Impairment losses attributable to goodwill must not be reversed in subsequent periods.

When control over a subsidiary is lost, the Company measures its remaining investment in the subsidiary at fair value at the date of loss of control. The difference between the fair value of the remaining investment and the carrying amount of the investment at the date of loss of control, if any, is recognized in profit or loss for the period. In addition, all amounts recognized in other comprehensive income related to the subsidiary are accounted for on the same basis as if the Company had directly disposed of the related assets or liabilities.

Unrealized gains or losses on downstream transactions with subsidiaries are eliminated in the parent company only financial statements. Gains or losses from upstream and side-stream transactions with subsidiaries are recognized in the parent company only financial statements only to the extent that they are not related to the Company’s equity interest in the subsidiary.

• (7) Investments in affiliates and joint ventures

The term “affiliate” as set forth herein denotes an enterprise which has significant effect upon the Company but is not a subsidiary or a joint venture.

A joint venture is a joint agreement between the Company and another company with joint control and rights to the net assets.

The Company adopts the equity method for investment in affiliates.

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Under the equity method, investments in affiliates and joint ventures are originally recognized at cost; the book value after the acquisition date fluctuates along with the distribution of profit or loss from the affiliates and joint ventures and other comprehensive income by the Company. In addition, changes in equity in affiliated companies and joint ventures are recognized on a proportional basis to shareholdings.

The Company assesses impairment by comparing the recoverable amount to the carrying amount of an investment as a whole (including goodwill) as a single asset. The impairment loss recognized is not allocated to any asset, including goodwill, that forms part of the carrying amount of the investment. Any reversal of impairment loss can be recognized to the extent that the recoverable amount of the investment subsequently increases.

Gains or losses from upstream, downstream and side-stream transactions with affiliates and joint ventures are recognized in the parent company only financial statements only to the extent that they are not related to the Company’s equity interest in the affiliates and joint ventures

• (8) Property, plant and equipment

Property, plant, and equipment shall be recognized based on cost. Subsequent costing shall be measured on the cost net of accumulated depreciations and accumulated impairments.

Except for owned land, which is not depreciated, other property, plant and equipment are depreciated separately over their useful lives on a straight-line basis for each significant component. The Company reviews the estimated useful lives, residual values and depreciation methods at least at the end of each year and defers the effect of changes in applicable accounting estimates.

When property, plant and equipment is derecognized, the difference between the net disposal price and the carrying amount of the asset is recognized in profit or loss.

• (9) Investment property

Investment property refers to real estate held for the purpose of earning rent or capital appreciation or both. Investment property also includes land held for future use that is currently undetermined.

Self-owned investment property is initially measured at cost (including transaction costs) and subsequently measured at cost less accumulated depreciation and accumulated impairment losses.

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Investment property is depreciated on a straight-line basis.

• When investment property is derecognized, the difference between the net disposal price and the carrying amount of the asset is recognized in profit or loss.

• (10) Intangible assets

• Acquired separately

Intangible assets with finite useful lives acquired separately are initially measured at cost and subsequently measured at cost less accumulated amortization and accumulated impairment. Intangible assets are amortized on a straight-line basis over their useful lives. The Company reviews the estimated useful lives, residual values and amortization methods at least at the end of each year and defers the effect of changes in applicable accounting estimates. Intangible assets with indefinite useful lives are stated at cost less accumulated impairment.

1. Derecognition

When intangible assets are derecognized, the difference between the net disposal price and the carrying amount of the assets is recognized in profit or loss for the period.

• (11) Impairment of property, plant and equipment, right-of-use assets, investment property and intangible assets

The Company assesses on each balance sheet date whether there is any indication that the property, plant and equipment, right-of-use assets, investment property and intangible assets (other than goodwill) may have been impaired. If there is any indication of impairment, the recoverable amount of the asset should be estimated. If the recoverable amount of an individual asset cannot be estimated, the Company is to estimate the recoverable amount of the respective cash-generating unit. Shared assets are allocated to individual cash-generating units on a reasonably consistent basis. Intangible assets with indefinite useful lives and not yet available for use are tested for impairment at least annually and whenever there is an indication of impairment. The recoverable amount is the higher of the fair value less costs to sell and its value in use. When the recoverable amount of an individual asset or a cash-generating unit is less than its carrying amount, the carrying amount of the asset or cash-generating unit should be reduced to its recoverable amount. The impairment loss is recognized in profit or loss.

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When the impairment loss is subsequently reversed, the carrying amount of the asset or cash-generating unit is increased to the adjusted recoverable amount, provided that the increased carrying amount does not exceed the carrying amount (net of amortization or depreciation) that would have become if the impairment loss had not been recognized in prior years for that asset or cash-generating unit. Reversal of impairment loss is recognized in profit or loss.

(12)

Financial instruments

When the Company has become a party to the instrument contract, the financial assets and financial liabilities are to be recognized in the parent company only balance sheet.

For the initial recognition of the financial assets and financial liabilities, if the financial assets or financial liabilities are not measured at fair value through profit or loss, it is measured at fair value plus transaction cost that is directly attributable to the acquisition or issuance of financial assets or financial liabilities. The transaction cost directly attributable to the acquisition or issuance of financial assets or financial liabilities that are measured at fair value through profit or loss is immediately recognized in profit or loss.

1. Financial assets

The regular transaction of financial assets is recognized and derecognized in accordance with the trade date accounting.

• (1) Type of measurement

The types of financial assets held by the Company are financial assets at fair value through profit or loss, financial assets at amortized cost, and investments in equity instruments at fair value through other comprehensive income.

• A. Financial assets at fair value through profit or loss

• Financial assets at fair value through profit or loss are financial assets mandatorily measured at fair value through profit or loss. Financial assets mandatorily measured at fair value through profit or loss include investments in equity instruments investments not designated by the Consolidated Company as being measured at fair value through other comprehensive income, and investments in debt instruments not qualified for classification as being measured at amortized cost or at fair value through other comprehensive income.

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Financial assets at fair value through profit or loss are measured at fair value, while dividends, interests and gains or losses arising from remeasurement are recognized in other gains and losses. Please refer to Note 35 for the determination of fair value.

B. Financial assets at amortized cost

The Company’s financial assets, if meeting both of the following conditions, are classified as financial assets at amortized cost:

• a. Financial assets held under a particular mode of operation and the purpose of holding is for the collection of contractual cash flows; and

• b. The terms of the contracts give rise to cash flows at specified dates that are solely for the payment of principal and interest on the outstanding principal amount.

Financial assets (including cash, accounts receivable measured at amortized cost), after initial recognition, are measured at their total carrying amount determined using the effective interest method, less amortized cost of any impairment loss, with any foreign currency exchange gain or loss recognized in profit or loss.

Interest income is calculated by multiplying the effective interest rate by the total carrying amount of the financial assets, except for the following two cases.

• a. Interest income on financial assets that are credit-impaired upon acquisition or creation is calculated using the credit-adjusted effective interest rate multiplied by the amortized cost of the financial assets.

• b. Interest income on financial assets that are not credit-impaired upon acquisition or creation but become credit-impaired subsequently is calculated using the effective interest rate multiplied by the amortized cost of the financial assets from the next reporting period after the impairment.

Credit-impaired financial assets are those for which the issuer or the debtor has experienced significant financial difficulties, defaulted, or where it is probable that the debtor will declare bankruptcy or other

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financial reorganization, or where an active market for the financial assets has disappeared due to financial difficulties.

• C. Investment in equity instruments at fair value through other comprehensive income

The Company may make an irrevocable choice at the time of initial recognition for designating the investment of equity instruments not available-for-sale and not recognized by the acquirer under corporate merger and acquisition or with consideration at fair value through other comprehensive income for measurement.

Investment in equity instruments at fair value through other comprehensive income is measured at fair value. Subsequent changes in fair value will be recognized as other comprehensive income and accumulated into other equity. In the disposition of assets, accumulated gains or loss shall be directly transferred to retained earnings without classification as profit or loss.

The dividend of the investment of equity instruments at fair value through other comprehensive income shall be recognized as income when the right of the Company in the collection of dividends is ascertained, unless the dividend is obviously representing the recovery of the cost of investment in part.

• (2) Impairment of financial assets and contract assets

The Company at each balance sheet date assesses the impairment loss of financial assets (including accounts receivable) at amortized cost and contract assets according to the expected credit loss.

An allowance is recognized for losses on accounts receivable and contract assets based on expected credit losses over the life. Other financial assets are first evaluated to determine whether there is a significant increase in credit risk since initial recognition. If there is no significant increase, an allowance for loss is recognized based on the expected credit loss over 12 months, and if there is a significant increase, an allowance for loss is recognized based on the expected credit loss over the duration.

Expected credit loss is a weighted average credit loss based on the risk of default. Expected credit loss in a 12-month period represents the

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expected credit loss arising from possible defaults of the financial instruments within 12 months after the reporting date, and the ongoing expected credit loss represents the expected credit loss arising from all possible defaults of the financial instruments during the expected life of the financial instruments.

For internal credit risk management purposes, the Company, without considering the collateral, determines the following circumstances indicating that a default has occurred on the financial assets:

• A. There is internal or external information showing that the debtor has been unable to pay off the debt.

• B. Payments are overdue for more than 90 days, unless there is reasonable and supporting information showing that the delayed default benchmark is more appropriate.

The carrying amount of all financial assets is reduced through an allowance account

• (3) The derecognition of financial assets

The Company has financial assets derecognized only when the contractual rights from the cash flows of a financial asset become invalid or when the financial assets are transferred, and almost all the risks and rewards of the asset ownership have been transferred to other enterprises. When a particular entry of financial assets measured at amortized cost is removed, the difference between its book value and consideration shall be recognized as income. When particular equity instruments measured at fair value through comprehensive income are entirely derecognized, the accumulated gains of loss shall be directly transferred to retained earnings without being classified as profit or loss.

1. Equity instruments

The debt and equity instruments issued by the Company are classified as financial liabilities or equity pursuant to the contractual agreements and the definition of financial liabilities and equity instruments.

Equity instruments issued by the Company are recognized for an amount after deducting the direct issuing cost from the proceeds collected.

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The retrieval of the Company’s own equity instruments is recognized and deducted under equity. The Company’s equity purchased, sold, issued, or cancelled is not recognized in the profit or loss.

1. Financial liabilities

2. (1) Subsequent measurement

All financial liabilities are measured at amortized cost using the effective interest method.

• (2) Derecognition of financial liabilities

When derecognizing financial liabilities, the difference between the carrying amount and the consideration paid (including any non-cash assets transferred or liabilities assumed) is recognized as profit or loss.

• (13) Provision for liabilities

• The amount recognized as provision for liabilities is the best estimate of the amount required to settle the obligation at the balance sheet date, taking into account the risk and uncertainty of the obligation. The provision for liabilities is measured as the present value of the discounted estimated cash flows to settle the obligation.

• (14) Recognition of revenues The Company, after identifying the performance obligations, had the transaction price amortized to each performance obligation and recognized as income when the performance obligations were fulfilled.

• Merchandise sales revenues

  • The Company recognizes revenue when the promised product is delivered to the customer and the customer obtains control (i.e. the customer’s ability to direct the use of the product and obtain substantially all of the residual benefits of the product), based on the price stated in the contract.

The credit period for product sold by the Company is 30 to 120 days. Most of the contracts are recognized as accounts receivable when control of the product is transferred and the right to receive unconditional consideration is available. These accounts receivable are usually of short duration and do not have significant financial components.

1. Revenues from power plant design and construction projects

2. For real estate construction contracts in which the real estate is under the control of the customer during the construction process, the Company recognizes revenue gradually over time. Since the cost of construction is

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directly related to the degree of completion of contractual obligations, the Company measures the progress of completion based on the proportion of the actual cost invested to the expected total cost. The Company recognizes contract assets over time during the construction process and reclassifies them as accounts receivable upon billing. If the amount received exceeds the amount of revenue recognized, the difference is recognized as a contract liability. The retention money withheld by the customer under the terms of the contract are intended to ensure the Company’s completion of all contractual obligations and are recognized as contract assets until the Company’s performance of the contract is completed.

If the outcome of the performance obligation cannot be measured reliably, revenue is recognized only to the extent that the costs incurred to satisfy the performance obligation are expected to be recovered.

(15) Lease

The Company assesses whether the contract is (or includes) a lease on the effective contract date.

1. The Company is the lessor

2. A lease is classified as a capital lease when the terms of the lease transfer substantially all the risks and rewards incidental to the ownership of the asset to the lessee. All other leases are classified as operating leases.

3. Under operating leases, lease payments, net of lease incentives, are recognized as income on a straight-line basis over the relevant lease period.

4. The Company is the lessee

5. Right-of-use assets and lease liabilities are recognized at the lease inception date, except for leases of low-value underlying assets to which the recognition exemption applies and short-term leases for which lease payments are recognized as expenses on a straight-line basis over the lease period.

Right-of-use assets are initially measured at cost (the original measured amount of the lease liability) and subsequently at cost less accumulated depreciation and accumulated impairment loss, adjusted for the remeasurement of the lease liability. The right-of-use assets are expressed separately in the parent company only balance sheet.

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The right-of-use assets are depreciated on a straight-line basis over the period starting from the lease inception date to the end of their useful lives or the expiration of the lease period, whichever is sooner.

The lease liability was originally measured at the present value of the lease payments (both fixed and substantively constant). If the implicit interest rate of the lease is readily determinable, the lease payments are discounted using that rate. If that rate is not readily determinable, the lessee’s incremental borrowing rate is used.

Subsequently, lease liabilities are measured at amortized cost using the effective interest method, and interest expense is amortized over the lease period. If a change in the index used to determine lease payments during the lease term results in a change in future lease payments, the Company remeasures the lease liability and adjusts the right-of-use asset accordingly. However, if the carrying amount of the right-of-use asset is reduced to zero, the remaining remeasurement amount is recognized in profit or loss. The lease liabilities are expressed separately in the parent company only balance sheet.

• (16) Government subsidies Government subsidies are recognized when there is reasonable assurance that the enterprise will comply with the conditions attached to the government subsidy and that the subsidy will be received.

• Government subsidies related to income are recognized in other income on a systematic basis over the period in which the related costs for which they are intended to compensate are recognized as expenses by the Company.

• Government subsidies are recognized in profit or loss in the period in which they become collectible if they are intended to compensate for expenses or losses already incurred or to provide immediate financial support to the Company and have no future related costs.

• (17) Share-based payment agreement

• Employee stock options granted to the employees of the Company Employee stock options are recognized as expense on a straight-line basis over the vesting period based on the fair value of the equity instruments at the grant date and the best estimate of the number expected to be vested, with an adjustment to capital surplus – employee stock options at the same time. If the vesting is made immediately on the grant date, the full cost is recognized on

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the grant date. The Company reserves shares for employee subscription at the time of cash capital increase and recognizes the date as the grant date when the number of shares to be subscribed by employees is confirmed.

1. Employee stock options granted to the employees of subsidiaries Employee stock options granted to employees of subsidiaries for settlement with the Company’s equity instruments are considered as capital contributions to the subsidiaries and are measured at the fair value of the equity instruments at the date of grant and recognized as an increase in the carrying amount of the investment in the subsidiary during the vesting period, with a corresponding adjustment to capital surplus – employee stock options.

2. (18) Employee benefits

3. Short-term employee benefits

   • Liabilities relating to short-term employee benefits are measured by the non-discounted amount of the expected payment in exchange for employee services.

4. Post-employment benefits

Under defined contribution pension plan, the pension amount appropriated during the service years of the employees is recognized as an expense.

The defined benefit cost (including service cost, net interest and remeasurement) of defined benefit pension plan is actuarially determined using the projected unit credit method. Service cost (including current service cost) and net interest on net defined benefit liabilities (assets) are recognized as employee benefit expense as incurred. Remeasurements (including actuarial gains and losses and return on plan assets, net of interest) are recognized in other comprehensive income and included in retained earnings as incurred and are not reclassified to profit or loss in subsequent periods.

The net defined benefit liability (asset) represents the deficit (remaining) of the defined benefit pension plan appropriation. The net defined benefit asset may not exceed the present value of refunds of appropriations from the plan or reductions in future appropriations.

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• (19) Income tax

Income tax expense is the sum of the current income tax and deferred income tax.

1. Current income tax

The Company determines income (loss) for the period in accordance with the regulations enacted by the income tax reporting jurisdictions and calculates income tax payable (recoverable) accordingly.

Additional Income tax on unappropriated earnings calculated in accordance with the ROC Income Tax Act is recognized in the year in which resolutions are made at the shareholders’ meeting.

The adjustment to prior years’ income tax payable is booked as current period’s income tax.

1. Deferred tax

Deferred tax is calculated on temporary differences between the carrying amounts of assets and liabilities and the tax bases used to compute taxable income.

Deferred tax liabilities are generally recognized for all taxable temporary differences, while deferred tax assets are recognized to the extent that it is probable that taxable profit will be available against which income tax credits can be utilized, such as deductions for temporary differences, loss carryforwards and investment tax credits.

Deferred tax liabilities are recognized for taxable temporary differences associated with investments in subsidiaries, affiliates, except where the Company can control the timing of the reversal of the temporary differences and it is probable that the temporary differences will not reverse in the foreseeable future. Deferred tax assets are recognized for deductible temporary differences associated with such investments only to the extent that it is probable that sufficient taxable income will be available to allow the temporary differences to be realized and to the extent that a reversal is expected in the foreseeable future.

The carrying amount of deferred tax assets is reviewed on each balance sheet date and reduced to the extent that it is no longer probable that sufficient tax assets will be available to allow recovery of all or part of the asset. part of the asset should be adjusted down. Deferred tax assets that are not recognized as such initially are reviewed on each balance sheet date and the carrying amount

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is increased to the extent that it is probable that future taxable income will be available to recover all or part of the assets.

Deferred tax assets and liabilities are measured at the tax rates that are expected to apply to the period when the liability is settled or the asset is realized, which are based on tax rates and tax laws that have been legislated or substantively legislated on the balance sheet date. The measurement of deferred income tax liabilities and assets reflects the tax consequence resulting from the book value of the assets or liabilities expected to be recovered or liquidated on the balance sheet date.

1. Current and deferred tax

   • Current and deferred income taxes are recognized in the profit or loss, except for the current and deferred income taxes related to the items recognized in other comprehensive income or directly included in the equity are recognized in other comprehensive income or directly included in the equity.

2. Significant Accounting Judgments and Estimations, and Main Sources of Assumption Uncertainties

When adopting accounting policies, the Company’s management is required to make judgments, estimates and assumptions that are based on historical experience and other factors that are not readily apparent from other sources Actual results may differ from estimates.

The Company takes the recent development of COVID-19 in Taiwan and its possible impact on the economic environment into the consideration of major accounting estimates such as cash flow estimation, growth rate, discount rate and profitability. The management will continue to review the estimates and basic assumptions. If a revision of an estimate affects only the current period, it is recognized in the period in which it is revised. If a revision of an accounting estimate affects both the current and future periods, it is recognized in the period in which it is revised and in the future periods. Significant Accounting Judgments No

Estimations, and Main Sources of Assumption Uncertainties

• (1) Impairment of Investments in affiliates

• When there is an indication that an investment in an affiliate may be impaired and the carrying amount may not be recoverable, the Company assesses the impairment of the investment immediately. The Company’s management assesses impairment

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based on future cash flow projections of the affiliates, including assumptions on sales growth and capacity utilization as estimated by the affiliates’ internal management. The Company also considers the relevant market and industry conditions to determine the reasonableness of its relevant assumptions.

6.

Cash

Cash
Cash on hand and petty cash Demand deposits Cash in transit	December 31,2021 $ 451 179,098 - $ 179,549	December 31,2020
			$ 468 116,430 81 $ 116,979

7.

Financial Assets Measured at Fair Value	through Other Comprehensive Income December 31,2021 December 31,2020 $ 13,798 $ 13,798 59,726 59,726 (26,075) (29,065) $ 47,449 $ 44,459	through Other Comprehensive Income December 31,2021 December 31,2020 $ 13,798 $ 13,798 59,726 59,726 (26,075) (29,065) $ 47,449 $ 44,459	through Other Comprehensive Income December 31,2021 December 31,2020 $ 13,798 $ 13,798 59,726 59,726 (26,075) (29,065) $ 47,449 $ 44,459
Investment in equity instruments – non-current Unlisted (emerging) company stocks Prorit Corporation New Land Packing Corporation Adjustments to the valuation of financial assets at fair value through other comprehensive income	December 31,2021 $ 13,798 59,726 (26,075) $ 47,449
	(	(	$ 13,798 59,726 29,065) $ 44,459

The Company invests in the common stock of the Company listed above for medium- to long-term strategic purposes and expects to earn a profit from the long-term investment. The Company’s management believes that it would be inconsistent with the aforementioned long-term investment plan to include short-term fair value fluctuations of these investments in profit or loss, and has therefore elected to designate these investments as measured at fair value through other comprehensive income.

On August 10, 2020, the Company participated in the cash capital increase of New Land Packing Corporation by NT$3,816 thousand, and acquired 382 thousand shares.

The Company’s financial assets at fair value through other comprehensive income are not provided as guarantee.

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1. Notes Receivable, Accounts Receivable and Other Receivables

The Company derecognized certain investments in equity instruments measured at fair

value through other comprehensive income. The Information related to the derecognition in 2020 is as follows.

derecognition in 2020 is as follows.
Fair value at the date of derecognition. Accumulated loss on disposal of retained earnings transferred from other equity	2020
	$ 104 ( 2,093 )

Notes receivables Measured at amortized cost Total carrying amount – incurred as a result of operations Less: allowance for loss Accounts receivables Measured at amortized cost Accounts receivables Less: allowance for loss Accounts receivable – related party Other receivables Other receivables – other Other receivables – related party	December 31,2021 $ 13,440 - $ 13,440 $ 145,992 ( 2,367) 143,625 19,111 $ 162,736 $ 3,615 7,310 $ 10,925	December 31,2020	December 31,2020
	(	(	$ 4,693 - $ 4,693 $ 94,228 3,544) 90,684 9,627 $ 100,311 $ 2,572 8,060 $ 10,632

(1) Notes and accounts receivable

The Company’s notes and accounts receivable are not provided as guarantee.

The average credit period of the Company’s product sales ranges from 30 to 120 days.

Each unit of the Company manages credit risk in accordance with its policies, procedures and controls over credit risk. The credit risk of all counterparties is evaluated by taking into account the financial condition of the counterparties, the ratings of credit rating agencies, historical transaction experience, the current

economic environment and the Company’s internal rating standards. The Company

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also uses certain credit enhancement tools (such as advance receipts) at appropriate times to reduce the credit risk of specific counterparties.

The Finance Department manages the credit risk of bank deposits, fixed-income securities and other financial instruments in accordance with the Company’s policies. Since the Corporation’s counterparties are determined by internal control procedures and are creditworthy banks and investment-grade financial institutions, corporate organizations and government agencies, there is no significant credit risk.

The Company recognizes an allowance for losses on accounts receivable based on expected credit losses over the life of the receivables. Expected credit losses for the duration are calculated using a reserve matrix, which takes into account the customer’s past default history and current financial condition, the economic situation of the industry, as well as industry outlook. Because the Company’s credit loss history shows that there is no significant difference in loss patterns among different customer segments, the reserve matrix does not further differentiate between customer segments and only sets the expected credit loss rate based on the number of days past due on accounts receivable.

If there is evidence that the counterparty is in serious financial difficulty and the Company cannot reasonably expect to recover the amount, the Company shall directly write off the related notes and accounts receivable but shall engage in recourse activities and recognize the amount recovered in profit or loss as a result of the recourse. The Company measured the allowance for losses on notes and accounts receivable based on the reserve matrix as follows.

December 31, 2021

December 31, 2021	December 31, 2021
Notpast due Expected credit impairment loss - Total book value $ 175,934 Allowance for loss (expected credit loss during the life) - Amortized cost $ 175,934 December 31, 2020 Notpast due Expected credit impairment loss 0~1% Total book value $ 101,440 Allowance for loss (expected credit loss during the life) ( 274) Amortized cost $ 101,166		0–30 days past due - $ - - $ - 0–30 days past due 0~16% $ - - $ -	31–120 days past due - $ 242 - $ 242 31–120 days past due 7~19% $ 2,776 ( 195) $ 2,581	121–270 days past due - $ - - $ - 121–270 days past due 22~31% $ 1,581 ( 349) $ 1,232	Over 270 days past due 23~100% $ 2,367 ( 2,367) $ - Over 270 days past due 30~100% $ 2,751 ( 2,726) $ 25		Total
						(	$ 178,543 2,367) $ 176,176 Total
Expected credit impairment loss Total book value Allowance for loss (expected credit loss during the life) Amortized cost
	(		(	(	(	(	$ 108,548 3,544) $ 105,004

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Information on changes in allowance for losses on notes and accounts receivable is as follows:

as follows:
Balance at the beginning of the year Add: Reversal impairment loss for the year Less: Actual write off for the year Balance at the end of the year	2021 $ 3,544 ( 1,177 ) - $ 2,367	2020
		$ 3,926 ( 382 ) - $ 3,544

The changes in the allowance for loss as of December 31, 2021 and 2020 were due to the combined effect of changes in notes and accounts receivable and the net increase in total carrying amount for different aging risk groups.

9. Inventories

Inventories
Raw materials Work in process Finished goods	December 31,2021 $ 14,502 340 3,569 $ 18,411	December 31,2020
			$ 13,942 - 17,259 $ 31,201

The operating costs related to inventories were NT$550,685 thousand and NT$438,594 thousand from January 1 to December 31, 2021 and2020, respectively. Operating costs consisted of NT$(11,836) thousand and NT$3,608 thousand of loss from inventory falling prices (reversal gain). The above-mentioned recovery of net realizable value of inventory is recognized as recovery benefits because the factors that previously caused the net realizable value of inventory to be lower than the cost have disappeared.

No guarantee has been provided for the Company’s inventory.

10. Investment Accounted for Using the Equity Method

Investments in subsidiaries Investment in affiliate Investment in joint venture	December 31,2021 $ 2,832,447 485,552 75,238 $ 3,393,237	December 31,2020	December 31,2020
			$ 2,728,333 405,579 65,461 $ 3,199,373

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(1) Investments in subsidiaries

Investments in subsidiaries
Giga Solar Materials Corporation Wafering Technology Corporation Ho Mi Specialty Materials Corporation Global Acetech Co., Ltd.	December 31,2021 $ 2,521,416 215,762 83,307 11,962 $ 2,832,447	December 31,2020
			$ 2,405,116 198,484 83,810 40,923 $ 2,728,333

Companyname Giga Solar Materials Corporation Wafering Technology Corporation Ho Mi Specialty Materials Corporation Global Acetech Co., Ltd.	Business nature Solar Energy Related Business Solar Energy Related Business Solar Energy Related Business Solar Energy Related Business	Main Business Location Hukou Township, Hsinchu County Hukou Township, Hsinchu County Hukou Township, Hsinchu County Thailand	Percentage of ownership interests and voting rights held	Percentage of ownership interests and voting rights held
			December 31,2021 39.15% 100% 92.57% 99.99%	December 31,2020
				45.13% 100% 92.57% 99.99%

Please refer to Note 31 for the amount set as a guarantee for borrowing by the investee subsidiary.

• (2) Investment in affiliate

Investment in affiliate
Investee name Affiliates of no materiality Wole Max Green Power Co., Ltd. Tron Energy Technology Corporation Ri Yun Green Energy Corporation UJGIGA Co., Ltd.	December 31,2021 $ 354,675 48,995 47,933 33,949 $ 485,552	December 31,2020
			$ 352,159 - 41,784 11,636 $ 405,579

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Companyname Wole Max Green Power Co., Ltd. Tron Energy Technology Corporation Ri Yun Green Energy Corporation UJGIGA Co., Ltd.	Business nature Solar Energy Related Business Electric buses, diesel buses/battery systems/energy storage systems Solar Energy Related Business Solar Energy Related Business	Main Business Location Hukou Township, Hsinchu County Taoyuan City Taipei City Kaohsiung City	Percentage of ownership interests and voting rights held	Percentage of ownership interests and voting rights held
			December 31,2021 31% 1.11% 30% 30%	December 31,2020
				31% - 30% 30%

On November 27, 2020 and December 30, 2020, the Company invested NT$195,300 thousand and NT$171,322 thousand, respectively, in Wole Max Green Power Co., Ltd. and acquired 33,790,000 shares, representing a 31% shareholding,

The Company invested in the rights shares of Tron Energy Technology Corporation in August 2021 with an investment amount of NT$49,950 thousand, and acquired 666,000 shares in total with a shareholding ratio of 1.11%, and completed the change registration on October 19, 2021. Considering that Giga Solar Materials Corporation , a subsidiary of the Company, holds one seat of its directors, it is judged that has significant influence.

On April 30, 2020, the Company invested NT$8,769 thousand in Ri Yun Green Energy Corporation and acquired 876,900 shares, representing a 30% shareholding Later on December 7, 2020, the Company invested NT$7,500 thousand in Ri Yun Green Energy Corporation and acquired 750,000 shares, representing a 30% shareholding. Later on December 27, 2021, the Company invested NT$6,300 thousand in Ri Yun Green Energy Corporation and acquired 630,000 shares, representing a 30% shareholding.

On March 31, 2020, the Consolidated Company invested NT$5,292 thousand in UJGIGA Co., Ltd. and acquired 529,200 shares, representing a 49% shareholding. It again invested UJGIGA Co., Ltd. on November 16, 2020, April 16, 2021 and December 10, 2021, with an investment amount of NT$468 thousand, NT$9,960 thousand and NT$12,240 thousand respectively, and acquired 46,800 shares, 996,000 shares and 1,224,000 shares respectively, with a shareholding ratio of 30% consistently.

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The aggregate financial information of the Company’s investments in the aforementioned affiliates, which are not material to the Company, based on their respective shares, is presented below:

respective shares, is presented below:
Net income (loss) from continuing operations for the year Other comprehensive income Total comprehensive income		2021 $ 14,555 - $ 14,555	2020
			( $ 5,441 ) - ($ 5,441)

• (3) Investment in joint venture

Investment in joint venture
Affiliates of no materiality Giga Solar Green Power Co., Ltd. Jieshuo Co., Ltd. Shuoyitai Green Energy Co., Ltd.	December 31,2021 $ 69,914 4,981 343 $ 75,238	December 31,2020
			$ 65,461 - - $ 65,461

The Company’s ownership interest in the joint venture and the percentage of voting rights as of the balance sheet date are as follows:

Companyname Giga Solar Green Power Co., Ltd. Jieshuo Co., Ltd. Shuoyitai Green Energy Co., Ltd.	Business nature Solar Energy Related Business Development of solar energy and energy storage systems Development, installation and holding of energy storage systems	Main Business Location Hukou Township, Hsinchu County Hukou Township, Hsinchu County Hukou Township, Hsinchu County	Percentage of ownership interests and voting rights held	Percentage of ownership interests and voting rights held
			December 31,2021 50% 49.9% 35%	December 31,2020
				50% - -

On August 24, 2020, the Company further invested NT$42,500 thousand in Giga Solar Green Power Co., Ltd. The Company acquired 4,250,000 shares with a 50% shareholding. Later on November 17, 2020, the Company further invested NT$25,000 thousand in Giga Solar Green Power Co., Ltd. and acquired 2,500,000 shares with a 50% shareholding. On December 30, 2021, the Company further invested NT$10,000 thousand in Giga Solar Green Power Co., Ltd. and acquired 1,000,000 shares and 249,975 shares of stock dividends, with a 50% shareholding.

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The Company invested in Jieshuo Co., Ltd. jointly with other companies on November 15, 2021, with an investment amount of NT$4,990 thousand and acquired 499,000 shares in total, with a shareholding ratio of 49.9%, and completed the change registration on November 29, 2021. According to the joint venture agreement, the major operations of Jieshuo shares are jointly led by all investors.

The Company invested in Shuoyitai Green Energy Co., Ltd. jointly with other companies on August 25, 2021, with an investment amount of NT$350 thousand and acquired 35,000 shares in total with a shareholding ratio of 35%, and completed the change registration on September 11, 2021. In January 2022, the Company further invested NT$24,050 thousand in Shuoyitai Green Energy Co., Ltd. and acquired 2,400,500 shares with a 35% shareholding. According to the joint venture agreement, the major operations of Shuoyitai Green Energy Co., Ltd. shares are jointly led by all investors.

The aggregate financial information of the Company’s investments in the aforementioned joint ventures, which are not material to the Company, based on their respective shares, is presented below:

respective shares, is presented below:
Net income (loss) from continuing operations for the year Other comprehensive income Total comprehensive income	2021 ( $ 1,007 ) - ($ 1,007)		2020
			$ 2,710 - $ 2,710

The Company’s affiliates and joint ventures have no pledges as loan guarantees.

Jieshuo Co., Ltd. and Shuoyitai Green Energy Co., Ltd. are individual insignificant joint ventures, and their financial reports have not been audited by CPAs; however, the management of the Consolidated Company believes that these individual insignificant financial reports of the joint venture companies will not have significant differences if audited by CPAs.

(11) Property, Plant and Equipment

Property, Plant and Equipment
Self-use	December 31,2021 $ 361,554	December 31,2020
			$ 402,231

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(1) Self-use

Self-use
Costs Balance as of January 1, 2021 Addition Disposal Transfer Balance as of December 31, 2021 Accumulated depreciation and impairment Balance as of January 1, 2021 Depreciation Disposal Transfer Balance as of December 31, 2021 Net as of December 31, 2020 and January 1, 2021 Net as of December 31, 2021 Costs Balance as of January 1, 2020 Addition Disposal Transfer Balance as of December 31, 2020 Accumulated depreciation and impairment Balance as of January 1, 2020 Depreciation Disposal Transfer Balance as of December 31, 2020 Net as of December 31, 2019 and January 1, 2020 Net as of December 31, 2020		Land	Houses and buildings	Machinery equipment		Office equipment	Transportation equipment		R&D equipment	Other equipment	Total
		$ 118,236 - - ( 2,584) $ 115,652 $ 18,019 - - - $ 18,019 $ 100,217 $ 97,633 $ 114,176 - - 4,060 $ 118,236 $ 18,019 - - - $ 18,019 $ 96,157 $ 100,217	$ 865,125 1,170 ( 3,136 ) ( 10,404) $ 852,755 $ 656,204 17,033 ( 3,136 ) ( 6,386) $ 663,715 $ 208,921 $ 189,040 $ 847,985 992 ( 195 ) 16,343 $ 865,125 $ 628,715 18,001 ( 195 ) 9,683 $ 656,204 $ 219,270 $ 208,921	$ 178,521 420 ( 41,561 ) 248,754 $ 386,134 $ 126,126 15,460 ( 41,497 ) 239,934 $ 340,023 $ 52,395 $ 46,111 $ 177,905 580 ( 142 ) 178 $ 178,521 $ 112,320 13,948 ( 142 ) - $ 126,126 $ 65,585 $ 52,395		$ 20,647 278 - - $ 20,925 $ 20,122 287 - - $ 20,409 $ 525 $ 516 $ 20,504 143 - - $ 20,647 $ 19,749 373 - - $ 20,122 $ 755 $ 525	$ 140 - - - $ 140 $ 140 - - - $ 140 $ - $ - $ 720 - ( 580 ) - $ 140 $ 720 - ( 580 ) - $ 140 $ - $ -	$ 309,591 2,490 - ( 248,754) $ 63,327 $ 269,912 5,168 - ( 239,934) $ 35,146 $ 39,679 $ 28,181 $ 345,472 1,478 ( 37,795 ) 436 $ 309,591 $ 298,968 8,739 ( 37,795 ) - $ 269,912 $ 46,504 $ 39,679		$ 30,004 - ( 2,868 ) - $ 27,136 $ 29,510 421 ( 2,868 ) - $ 27,063 $ 494 $ 73 $ 30,826 - ( 822 ) - $ 30,004 $ 29,362 970 ( 822 ) - $ 29,510 $ 1,464 $ 494	$ 1,522,264 4,358 ( 47,565 ) ( 12,988) $ 1,466,069 $ 1,120,033 38,369 ( 47,501 ) ( 6,386) $ 1,104,515 $ 402,231 $ 361,554 $ 1,537,588 3,193 ( 39,534 ) 21,017 $ 1,522,264 $ 1,107,853 42,031 ( 39,534 ) 9,683 $ 1,120,033 $ 429,735 $ 402,231

The Company did not perform impairment testing for 2021 and 2020 as there was no indication of impairment.

Depreciation expense is provided on a straight-line basis over the following useful lives:

Houses and buildings	1 to 56 years
Machinery equipment	1 to 11 years
Office equipment	5 years
R&D equipment	1 to 11 years
Other equipment	2 to 10 years

The significant components of the Company’s buildings are mainly the main structure, electrical, mechanical and air-conditioning equipment, which have a useful life of 1 to 56 years and 1 to 11 years, respectively.

Please refer to note 31 for the Company’s property, plant and equipment provided as collaterals.

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12. Lease Agreements

• (1) Right-of-use assets

Right-of-use assets
Book value of right-of-use assets Houses and buildings Transportation equipment Depreciation expense of right-of-use assets Houses and buildings Transportation equipment	December 31,2021 $ 23,473 390 $ 23,863 2021 $ 3,354 523 $ 3,877	December 31,2020
			$ 26,827 913 $ 27,740 2020
			$ 3,354 523 $ 3,877

Other than the above additions and depreciation expense recognized, there were no significant subleases or impairments of the Company’s right-of-use assets from January 1 to December 31, 2021 and 2020.

• (2) Lease liabilities

Lease liabilities
Book value of lease liabilities Current Non-current The discount rate range for lease Houses and buildings Transportation equipment	December 31,2021 $ 3,673 $ 20,721 liabilities is as follows: December 31,2021 1.50% 1.68%	December 31,2020
		$ 3,752 $ 24,394 December 31,2020
		1.50% 1.68%

• (3) Major Lease Activities and Terms

Some of the Company’s real estate lease agreements include lease extension options. In determining the lease period, the non-cancellable period of the right to use the subject asset is combined with the period covered by the lease extension option that is reasonably certain to be exercised by the Company. The use of these options allows for maximum flexibility in the operation of management contracts. The majority of the lease extension options available are exercisable by the Company only. The Company re-evaluates the lease period when a material event or significant change in circumstances occurs after the commencement date (that is within the control of the lessee and affects whether the Company can be reasonably certain that

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it will exercise an option not previously included in the determination of the lease period.)

• (4) Information on other lease

Please refer to Note 13 for the Company’s investment property agreements.

Short-term lease expense Total cash outflow from leases		2021 $ 208 $ 4,358		2020
				$ 41 $ 4,190

The Company has elected to apply the exemption from recognition to transportation equipment and other equipment that qualify as short-term leases and does not recognize the related right-of-use assets and lease liabilities for these leases.

13. Investment Property

Investment property is the Company’s own investment property. The Company enters into commercial property leases for its own investment properties. The leases include provisions for annual rental adjustments based on market conditions.

Costs Balance as of January 1, 2021 Transfer from Property, plant and equipment Balance as of December 31, 2021 Accumulated depreciation and impairment Balance as of January 1, 2021 From Property, plant and equipment Depreciation expense Balance as of December 31, 2021 Net as of December 31, 2021		Land $ 65,039 2,584 $ 67,623 $ - - - $ - $ 67,623		Houses and buildings $ 261,834 10,404 $ 272,238 $ 160,719 6,386 5,679 $ 172,784 $ 99,454		Total
						$ 326,873 12,988 $ 339,861 $ 160,179 6,386 5,679 $ 172,784 $ 167,077

(Continued on next page)

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(Continued from previous page)

Costs Balance as of January 1, 2020 Transfer to Property, plant and equipment ( Balance as of December 31, 2020 Accumulated depreciation and impairment Balance as of January 1, 2020 Depreciation expense Transfer to Property, plant and equipment Balance as of December 31, 2020 Net as of December 31, 2020 Rental income from investment property Less:Direct operating expenses of investment properties that generate rental income in the current year Total		Land Houses and buildings $ 69,099 $ 278,177 4,060) ( 16,343) $ 65,039 $ 261,834 $ - $ 164,806 - 5,596 - ( 9,683) $ - $ 160,719 $ 65,039 $ 101,115 2021 $ 31,689 5,679 $ 26,010	Land Houses and buildings $ 69,099 $ 278,177 4,060) ( 16,343) $ 65,039 $ 261,834 $ - $ 164,806 - 5,596 - ( 9,683) $ - $ 160,719 $ 65,039 $ 101,115 2021 $ 31,689 5,679 $ 26,010	Land Houses and buildings $ 69,099 $ 278,177 4,060) ( 16,343) $ 65,039 $ 261,834 $ - $ 164,806 - 5,596 - ( 9,683) $ - $ 160,719 $ 65,039 $ 101,115 2021 $ 31,689 5,679 $ 26,010		Total
					( (	$ 347,276 20,403) $ 326,873 $ 164,806 5,596 9,683) $ 160,719 $ 166,154 2020
						$ 29,454 5,596 $ 23,858

Investment property is depreciated on a straight-line basis over the following useful lives:

Houses and buildings 2 to 37 years

Please refer to Note 31 for the investment properties the Company provided as collaterals.

The fair values of investment properties were NT$372,679 thousand and NT$333,282 thousand as of December 31, 2021 and 2020.

The Company does not measure its investment property at fair value, but only discloses information about its fair value, which is in Level 3 of the fair value hierarchy. The aforementioned fair values are determined using the cash flow analysis method and the simultaneous consideration of the cost method and the income method, respectively,

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where the main input values used are discount rates, of which the main input values used and their quantitative information are as follows:

(14)	Capitalization rate of income Intangible Assets	December 31,2021 4.77%	December 31,2020
			5.14%

Intangible Assets
Costs Balance as of January 1, 2021 Addition Balance as of December 31, 2021 Accumulated amortization and impairment Balance as of January 1, 2021 Amortization Balance as of December 31, 2021 Net as of December 31, 2020 and January 1, 2021 Net as of December 31, 2021 Costs Balance as of January 1, 2020 Addition Balance as of December 31, 2020 Accumulated amortization and impairment Balance as of January 1, 2020 Amortization Balance as of December 31, 2020 Net as of December 31, 2019 and January 1, 2020 Net as of December 31, 2020	Computer software
		$ 6,826 598 $ 7,424 $ 5,911 581 $ 6,492 $ 915 $ 932 $ 6,826 - $ 6,826 $ 5,178 733 $ 5,911 $ 1,648 $ 915

Summary of amortization by function:

Summary of amortization by function:
Operating costs Administration expenses		2021 $ 545 36 $ 581		2020
				$ - 733 $ 733

Amortization expense is provided on a straight-line basis over the following useful lives:

Computer software 3 years

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15. Prepayments and Other Assets

Prepayments and Other Assets
Tax retained overpaid Prepayment for equipment Prepaid expenses Net defined benefit assets （Note18） Refundable deposits Prepayment for goods Others Current Non-current	December 31,2021 $ 314,323 99,298 1,193 991 152 8 7,638 $ 423,603 $ 323,153 100,450 $ 423,603	December 31,2020
			$ 320,626 7,244 1,188 2,624 432,654 335 5,975 $ 770,646 $ 577,945 192,701 $ 770,646

16. Borrowing

• (1) Short-term borrowings

Short-term borrowings
Secured borrowings Bank borrowings 1) Unsecured borrowings Line of credit borrowing (Note).	Interest range (%) 1.50~1.70 1.40~1.55	December 31, 2021 $ 550,000 187,257 $ 737,257	December 31, 2020
				$ 1,240,000 250,814 $ 1,490,814

Note: The restrictions on the borrowing contract are as follows:

If the Company’s shareholding in Giga Solar Materials Corporation is less than

35% and 40% on December 31, 2021 and 2020 respectively, the line of loan agreements shall cease to be utilized.

For collaterals for short-term borrowings, please refer to Note 31.

• (2) Short term notes and bills payable

Short term notes and bills payable
Commercial promissory notes payable Less: Discount of short-term notes and bills payable	December 31,2021 $ 200,000 ( 662) $ 199,338	December 31,2020
	(		$ - - $ -

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The outstanding short-term notes and bills payable are as follows:

December 31, 2021

Guarantee/accepta nce agency		Face value	Discounted value	Discounted value		Book value	Book value	Interest range	Collateral	Book value of collateral	Book value of collateral
Commercial promissory notes payable International Bills Finance		$ 200,000	(	$ 662)			$ 199,338	1.38%	GigaSolar stocks		$194,258

For collaterals for short-term borrowings, please refer to Note 31.

• (3) Long-term borrowings

The breakdown of the Company’s long-term borrowings is as follows:

Creditor Secured loan from the Shanghai Commercial Bank Secured loan from Xingong Branch, Land Bank of Taiwan Credit loan from The Shanghai Commercial Bank Credit loan from Agricultural Bank of Taiwan Less: Long-term loans due within one year Creditor Secured loan from Land Bank of Taiwan Credit loan from The Shanghai Commercial Bank Less: Long-term loans due within one year	December 31, 2021 $ 630,000 200,000 93,500 28,000 ( 236,000) $ 715,500 December 31, 2020 $ 250,000 127,500 ( 84,000) $ 293,500	Interest rate(%) 1.58 1.58 1.43 1.25 Interest rate(%) 1.58 1.43	Repaymentperiod and method
			Starting from July 29, 2021, repay the loan in 20 installments of 3 months each, with the interest payable once every month. Starting from January 6, 2021, repay the loan in 10 installments of 6 months, with interest payable once every month. Starting from October 26, 2019, repay the loan in 20 installments of 3 months, with interest payable once every month. Starting from January 30, 2021, repay the loan in 40 installments of 1 month each, with the interest payable once every month. Repaymentperiod and method
	(		Starting from January 6, 2021, repay the loan in 10 installments of 6 months, with interest payable once every month. Starting from October 26, 2019, repay the loan in 20 installments of 3 months, with interest payable once every month.

For collaterals for long-term borrowings, please refer to Note 31.

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17. Other Payables and Other Current Liabilities

Salaries and bonuses payable Payable on machinery and equipment Litigation fees payable Others Contract liabilities Others	December 31,2021 $ 15,221 4,542 - 11,225 $ 30,988 $ 23,904 1,610 $ 25,514	December 31,2020	December 31,2020
			$ 15,103 1,401 535,991 17,688 $ 570,183 $ 4,145 1,525 $ 5,670

18. Post-Employment Benefit Plan

(1) Defined contribution plan

The Company’s pension system under the “Labor Pension Act” is a government-administered defined contribution pension plan with contributes 6% of employees’ monthly salaries contributed to the personal accounts at the Bureau of Labor Insurance.

• (2) Defined benefit plan

The Company’s pension system under the “Labor Standards Act” is a government-administered defined benefit pension plan. The employee’s pension is calculated based on the bases of years of service and the average monthly salary at the time of approval of retirement. Two bases are granted for each year of service up to (including) 15 years, and one base is granted for each year of service over 15 years, subject to a maximum accumulation of 45 bases. The Company appropriates 2% of employees’ monthly salaries to pension funds, which is deposited by the Supervisory

Committee of Labor Retirement Reserve in the name of the Committee into a special

account at the Bank of Taiwan. Before the end of the year, if the balance in the

special account is estimated to be insufficient to pay for employees who are expected to meet the retirement requirements in the following year, the difference will be

made up in one lump sum by the end of March of the following year. The management of the special account is entrusted to the Bureau of Labor Funds, the Ministry of Labor. The Company has no right to influence the investment management strategy.

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The amounts of defined benefit plans included in the parent company only balance sheets are shown below:

sheets are shown below:
Present value of defined benefit obligations Fair value of plan assets Net defined benefit (assets) liabilities	December 31,2021 $ 19,597 (20,588) ($ 991)	December 31,2020
	( (	( (	$ 17,494 20,118) $ 2,624)

The changes in net defined benefit (assets) liabilities are as follows:

January 1, 2020 Financial costs Interest expense (income) Service income from the previous period Recognized in profit or loss Remeasurement Actuarial gains - Changes in financial assumptions - Adjustments through experiences Recognized in other comprehensive income Employer appropriation December 31, 2020 Financial costs Interest expense (income) Service income from the previous period Recognized in profit or loss (Continued on next page)	Present value of defined benefit obligations $ 16,668 139 - 139 1,066 ( 379) 687 - 17,494 75 - 75
	(

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(Continued from previous page)

Remeasurement Actuarial (gains) losses - Actuarial gains and losses from changes in demographic assumptions - Changes in financial assumptions - Adjustments through experiences Recognized in other comprehensive income Employer appropriation Benefits paid December 31, 2021	Present value of defined benefit obligations $ - ( 998 ) 3,206 2,208 - ( 180) $ 19,597	Fair value of plan assets $ - ( 277 ) - ( 277) ( 287) 180 ($ 20,588)	Net defined benefit (assets) liabilities
			$ - ( 1,275 ) 3,206 1,931 ( 287) - ($ 991)

The Company is exposed to the following risks as a result of the pension system under the “Labor Standards Act”:

1. Investment risk: The Bureau of Labor Funds, Ministry of Labor invests the labor pension fund in domestic and foreign equity securities, debt securities, and bank deposits through its own management or entrusted third parties, but the amount allocated to the Company’s plan assets is based on the income at a rate no less than the local bank’s 2-year time deposit rate.

2. Interest rate risk: A decrease in interest rates on government bonds will increase the present value of the defined benefit obligation, but the return on debt investment in plan assets will also increase, which will have a partially offsetting effect on the net defined benefit obligation.

3. Salary Risk: The present value of the defined benefit obligation is calculated by reference to the future salary of the plan member. Therefore, increases in plan member’s salary will result in an increase in the present value of the defined benefit obligation.

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The present value of the Company’s defined benefit obligation was actuarially determined by a qualified actuary and the significant assumptions at the measurement date were as follows.

measurement date were as follows.
Discount rate Expected rate of salary increase	December 31,2021 0.77% 3.00%	December 31,2020
		0.43% 3.00%

The amount by which the present value of the defined benefit obligation would increase (decrease) if there are reasonable possible changes in significant actuarial assumptions, with all other assumptions held constant, is as follows

Discount rate Increase by 0.5% Decrease by 0.5% Expected rate of salary increase Increase by 0.5% Decrease by 0.5%	December 31,2021 ($ 1,368) $ 1,487 $ 1,446 ($ 1,346)	December 31,2020	December 31,2020
	( (	( (	$ 1,321) $ 1,443 $ 1,399 $ 1,295)

The sensitivity analysis above may not reflect actual changes in the present value of the defined benefit obligation because the actuarial assumptions may be correlated and changes in only one assumption are not feasible.

Amount expected to be appropriated within 1 year Average duration to maturity of defined benefit obligation	December 31,2021 $ 287 15 years	December 31,2020	December 31,2020
			$ 272 16 years

19. Equity

• (1) Ordinary share capital

Ordinary share capital
Authorized number of shares (in thousands) Authorized capital stock Number of shares issued and fully paid (in thousands) Capital stock issued	December 31,2021 500,000 $ 5,000,000 285,906 $ 2,859,057	December 31,2020
			500,000 $ 5,000,000 285,906 $ 2,859,057

The issued ordinary shares has a face value of NT$10 per share and each share is entitled to one voting right and receiving dividends.

On November 12, 2019, the board meeting approved the issuance of 80,000 thousand shares with a par value of NT$10 per share as rights shares for the repayment of bank

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loans and the repayment of the principal and interest due on the fourth domestic secured convertible bonds. The capital increase was reported as effective on February 14, 2020. The book-close date for the rights shares was June 29, 2020, and the subscription price per share was NT$8.5. The total paid-in share payment of NT$680,000 thousand has been fully received.

In order to meet the demand of repaying bank loans, the board meeting decided to issue 65,000 thousand new shares by cash capital increase on November 1, 2021. The benchmark date of the cash capital increase was February 24, 2022. The subscription price per share was NT$25, and the total amount of share capital received was NT$1,625,000 thousand, which has been fully collected.

• (2) Capital surplus

Capital surplus
For loss make-up, payment in cash or capitalization as equity (1) Stock issuance premium Differences between equity price and carrying amount arising from actual acquisition or disposal of subsidiaries Only for loss make-up Recognition of changes in ownership interest in subsidiaries (2) Changes in net equity of affiliates accounted for using the equity method Not for any purpose Others	December 31,2021 $ 1,432 52,515 372,807 2,465 69,355 $ 498,574	December 31,2020
			$ 1,432 26,034 151,353 1,935 69,355 $ 250,109

1. Such capital surplus may be used to make up for losses or, when the Company has no losses, to distribute cash or to capitalize equity, provided that the capitalization is limited to a certain percentage of the paid-in capital each year.

2. This type of capital surplus represents the effect of equity transactions recognized for changes in the Company’s equity when the Company has not actually acquired or disposed of ownership interest in the subsidiary. Among them, the Company’s subsidiary Giga Diamond Materials Corporation disposed of the trust shares of its resigned employees in accordance with the trust agreement in 2021 and 2020, and the remaining amount after deducting

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the amount to be distributed and returned to the employees was NT$4,797 thousand and NT$1222 thousand respectively, which is deemed to be a reissue after Giga Diamond Materials Corporation called back the shares. The Company included them in the capital reserve according to the shareholding ratio – changes in ownership interests of subsidiaries, with amounts of NT$1,538 thousand and NT$448 thousand respectively.

• (3) Retained earnings and dividend policy

In accordance with the Company’s earnings distribution policy as stipulated in the Articles of Association, if there is any net earnings in the Company’s annual final accounts, the Company shall first pay tax, make up for accumulated losses and then set aside 10% as legal reserve in accordance with the law. If the accumulated legal reserve has reached the Company’s paid-in capital, the Company may no longer set aside legal reserve. The remainder shall be set aside and reversed from special reserve as provided by law or by the competent authority. If there are still remaining earnings, the board of directors shall prepare a proposal for distribution of the remainder together with the accumulated unappropriated earnings as dividends to shareholder, and submit it to the shareholders’ meeting for resolution on the distribution.

The shareholders’ meeting held on July 26, 2021 approved the amendment of the Company’s policy on the distribution of dividends to shareholders, which is subject to the Company’s current and future investment environment, capital requirements, domestic and external competition, and capital budget, with the interests of shareholders and the Company’s long-term financial planning taken into account. If the distributable earnings for the year reaches 5% of the paid-in capital, dividends shall be paid at a percentage of not less than 20% of the distributable earnings for the year; if the distributable earnings for the year does not reach 5% of the paid-in capital, no dividends may be paid. The percentage of cash dividends paid each year shall not be less than 20% of the total amount of cash and stock dividends paid in that year. The aforementioned dividend distribution percentage may be adjusted based on financial, business and operational considerations.

Please refer to Note 20(7) for the Company’s policy on employee and director remuneration distribution under the Company’s Articles of Association.

The legal reserve should be appropriated until the balance reaches the Company’s total paid-in capital. Legal reserve may be used to make up for losses. If the

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Company has no losses, the excess of legal reserve over 25% of the paid-in capital may be distributed in cash in addition to capitalization as equity.

On July 26, 2021, the shareholders’ meeting of the Company passed a resolution to amend the Articles of Association to specify that when the special reserve is allocated from the net deduction of other equity accumulated in the previous period, if the undistributed surplus in the previous period is insufficient to allocate, the after-tax net income plus items other than the after-tax net income of the current period will be added into the undistributed surplus of the current period for the allocation. Before the amendment to the Articles of Association, the Company shall allocate the undistributed earnings from the previous period according to law.

The earnings distribution proposal for 2020 was approved at the general shareholders’ meeting of the Company on July 26, 2021 as follows:

Loss to be made up at the beginning of the year Remeasurement of defined benefit plan Adjustment of cash capital increase Net loss for 2020 Disposal of equity instruments at fair value through other comprehensive income Organization restructuring Loss to be made up at the end of the year	2020
	Proposal for loss make-up
	$ - ( 2,069 ) ( 6,248 ) ( 535,475 ) ( 21,235 ) ( 6,659) ($ 571,686)

The earnings distribution proposal for 2019 was approved at the regular

shareholders’ meeting of the Company on June 9, 2020 as follows:

Legal reserve Special reserve		2019
		$ 14,689 $ 132,198

The loss compensation proposal for 2021 as proposed by the board meeting on March 28, 2022 is as follows:

March 28, 2022 is as follows:
Loss to be made up at the beginning of the year Remeasurement of defined benefit plan Net income for 2021 Disposal of equity instruments at fair value through other comprehensive income Loss to be made up at the end of the year	2021
	Proposal for loss make-up
	( $ 571,686 ) ( 1,025 ) 24,796 14,268 ($ 533,647)

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The loss compensation proposal for 2021 is pending the resolution of the shareholders’ meeting scheduled to be held on June 24, 2022.

• (4) Special reserve

Special reserve
Balance at the beginning of the year Provision of special reserve 2019 earnings distribution Balance at the end of the year		2021 $ 155,982 - $ 155,982		2020
				$ 23,784 132,198 $ 155,982

As of December 31, 2021 and 2020, the amount of special reserve first utilized was NT$23,784 thousand.

• (5) Other equity items

• Exchange differences on translation of financial statements of foreign operations

operations
Balance at the beginning of the year Generated in the year Translation differences on translation of foreign operations Share of subsidiary recognized under the equity method Disposal of partial interest in a subsidiary Change in recognition of ownership interest in subsidiaries Balance at the end of the year	2021 ( $ 97,324 ) ( 4,268 ) ( 21,573 ) 152 208 ($ 122,805)	2020
		( $ 114,115 ) ( 1,950 ) 3,483 15,258 - ($ 97,324)

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1. Unrealized valuation gains or losses on financial assets measured at fair value

through other comprehensive income

Balance at the beginning of the year Generated in the year Unrealized gain or loss Equity instruments Share of subsidiary under the equity method Disposal of partial interest in a subsidiary Transfer of accumulated gain or loss on disposal of equity instruments to retained earnings Balance at the end of the year	2021 ( $ 75,723 ) 2,990 109,825 ( 109 ) (14,268) $ 22,715	2020
		( $ 145,597 ) 30,537 14,167 3,935 21,235 ($ 75,723)

20. Revenues

(1) Description of Customer Contract

Revenue recognition is recognized at a point in time. Information on revenue from customer contracts is as follows:

customer contracts is as follows:
Revenue from customer contracts Merchandise sales revenues Revenues from construction projects Other operating revenues		2021 $ 369,988 190,641 16,189 $ 576,818		2020
				$ 324,145 189,666 16,643 $ 530,454

Breakdown of revenue from customer contracts

Product type Photovoltaic Ribbons Revenues from construction projects Revenues from sales of silicon products Others		2021 $ 356,795 190,641 1,645 27,737 $ 576,818		2020
				$ 295,968 189,666 - 44,820 $ 530,454

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(2) Contract balance

Contract balance
Accounts receivable (Note 8) Accounts receivable – related party Contract assets Power Plant Construction Contract Less: allowance for loss Contract assets – current Contract liabilities Merchandise Sales Power Plant Construction Project Contract liabilities – current (included in other current liabilities)	December 31, 2021 $ 143,625 $ 19,111 $ 167,117 - $ 167,117 $ 1,710 22,194 $ 23,904	December 31, 2020 $ 90,684 $ 9,627 $ 170,113 - $ 170,113 $ 1,565 2,580 $ 4,145	January1,2020
				$ 85,891 $ 2,455 $ 240,042 - $ 240,042 $ 2,510 - $ 2,510

The change in contract assets is mainly due to the difference between the point at which the performance obligation is satisfied and the point at which the customer pays, and other significant changes are as follows:

Contract assets Transfer of beginning balance to accounts receivable		2021 $ 163,064		2020
				$ 163,670

The change in contract assets is mainly due to the difference between the point at which the performance obligation is satisfied and the point at which the customer pays. The amount of contract liabilities from the beginning of 2020 recognized as other revenue was NT$2,303 thousand. The amount of contract liabilities from the beginning of 2021 recognized as other revenue was NT$15 thousand.

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(3) Customer contracts not yet fully performed

The allocated transaction prices and the expected timing of recognition as revenue for the outstanding performance obligations are as follows:

	for the outstanding performance obligations are as follows:
21. (1) (2) (3)	December 31,2021 Power Plant Construction Contract Performed in 2021 $ - Performed in 2022 16,143 $ 16,143 Net Income from Continuing Operations Interest income 2021 Bank deposits $ 193 Others 306 $ 499 Other income 2021 Rental income $ 31,689 Dividend income 1,078 Government subsidy income (Note 25) - Others 17,200 $ 49,967 Other gains and losses 2021 Gain on disposal and scrapping of property, plant and equipment $ 112 Net foreign currency exchange loss ( 3,918 ) Net loss (gain) on financial assets and liabilities at fair value through profit or loss - Loss on disposal of investment - Impairment loss on non-financial assets - Other losses ( 8) ($ 3,814)	December 31,2020
			$ 49,207 - $ 49,207 2020
	Interest income Bank deposits Others Other income Rental income Dividend income Government subsidy income (Note 25) Others Other gains and losses Gain on disposal and scrapping of property, plant and equipment Net foreign currency exchange loss Net loss (gain) on financial assets and liabilities at fair value through profit or loss Loss on disposal of investment Impairment loss on non-financial assets Other losses
			$ 173 - $ 173 2020
			$ 29,454 - 7,513 26,077 $ 63,044 2020
		$ 475 ( 6,998 ) ( 62 ) ( 444 ) ( 7,046 ) ( 2,062) ($ 16,137)

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(4) Financial costs

(4)	Financial costs
				2021			2020
	Interest on Bank Borrowings		$	27,748		$	19,778
	Interest on lease liabilities			398			454
	Amortization of short-term
	notes and bills payable			23			-
	Amortization of long-term
	payables			-			5,836
	Amortization of discount on
	corporate bonds payable			-			962
	Imputed interest on deposit and
	others (Note 32)			12			113,253
			$	28,181		$	140,283
(5)	Depreciation and amortization
				2021			2020
	Summary of depreciation by
	function.
	Operating costs		$	19,852		$	16,945
	Operating expenses			28,073			34,559
			$	47,925		$	51,504
	Summary of amortization by
	function.
	Operating costs		$	36		$	-
	Operating expenses			545			733
			$	581		$	733
(6)	Employee benefit expenses
				2021			2020
	Short-term employee benefits		$	110,595		$	109,047
	Share-based payment (Note 24)			-			527
	Post-employment benefits
	Defined contribution plan			4,672			4,563
	Defined benefit plan (Note
	18)	(		11 )	(		20 )
	Other employee benefits			4,292			4,443
	Total employee benefit
	expenses		$	119,548		$	118,560
	Summary by function.
	Operating costs		$	46,540		$	35,540
	Operating expenses			73,008			83,020
			$	119,548		$	118,560

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(7) Remuneration for employees and directors

In accordance with the Company’s Articles of Association, the remuneration for employees shall not be less than 4% and not more than 8%, and the remuneration for directors shall not be more than 3%.

In 2021 and 2020, no remuneration for employees and directors was estimated due to a cumulative loss.

If there is a change in the amount of the parent company only financial statements after the date of its issuance, the amount is adjusted in the following year in accordance with the rules related to changes in accounting estimates.

The estimated remuneration for employees and directors for 2019 was approved by the board of directors on March 27, 2020 as follows:

Estimated percentage

Estimated percentage
Remuneration for employees Remuneration for directors Amount Remuneration for employees Remuneration for directors		2019
		4% 3% 2019
		$ 7,345 $ 5,509

There was no difference between the actual amount of employees’, directors’ and supervisors’ remuneration paid for 2019 and the amount recognized in the standalone financial statements in 2019.

Please refer to the “Market Observation Post System” of the Taiwan Stock Exchange for information on the remuneration for employees and directors resolved by the board of directors of the Company.

22. Income tax

• (1) Income tax recognized in profit or loss

The major components of income tax expense (benefits) are as follows:

Current income tax Generated in the year Adjustments for prior years Income tax expense (benefits) recognized in profit or loss		2021 $ - 4,058) $ 4,058)		2020
	( (			$ 4,058 - $ 4,058

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The reconciliation of accounting income to income tax expense is as follows:

		2021	2020
Net income (loss) before tax
from continuing operations		$ 20,738	($ 531,417)
Income tax expense (benefit) at
statutory tax rate on net income
(loss) before tax		$ 4,148	( $ 106,283 )
Tax exempted income		-	( 18,020 )
Non-deductible expenses due
to tax purposes		24,753	126
Deduction of unrecognized
losses		79,996	18,306
Temporary difference	(	108,897 )	105,871
Basic tax difference payable		-	4,058
Adjustments to current income
tax expenses of previous years	(	4,058)	-
	(	$ 4,058)	$ 4,058

• (2) Current income tax assets and liabilities

Current income tax assets Tax refund receivable Current income tax liabilities Income tax payable	December 31,2021 $ 32 $ -	December 31,2020	December 31,2020
			$ 27 $ 4,039

• (3) Deductible temporary differences and unused loss carryforwards for deferred tax assets not recognized in parent company only balance sheets

Loss carryforwards Expires in 2021 Expires in 2022 Expires in 2023 Expires in 2024 Expires in 2025 Expires in 2026 Expires in 2027 Expires in 2028 Expires in 2029 Expires in 2030 Expires in 2031 Deductible temporary difference	December 31,2021 $ - 417,748 414,424 463,981 505,875 22,349 780,102 1,148,158 728,150 32,067 399,980 $ 4,912,834 $ 1,971,065	December 31,2020	December 31,2020
			$ 50,134 417,748 414,424 463,981 505,875 22,349 780,102 1,148,158 728,150 32,067 - $ 4,562,988 $ 2,515,036

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(4) The status of income tax assessment

The Company’s income tax returns have been assessed by the tax authorities up to

23. Earnings Per Share

2019.
Earnings Per Share Basic profit (loss) per share Diluted profit (loss) per share		Unit: NTD per share 2021 2020 $ 0.09 ($ 2.17) $ 0.09 ($ 2.17)
			( (	$ 2.17) $ 2.17)

The weighted-average number of ordinary shares and net income (loss) used in the calculation of earnings per share are as follows:

Net income (loss) for the year

Net income (loss) for the year
Net income (loss) attributable to owners of the Company Impact of potential ordinary shares with dilutive effect: After-tax interest on convertible bonds Net income (loss) used in the calculation of diluted earnings per share Number of shares Weighted-average number of ordinary shares used in the calculation of basic earnings per share Impact of potential ordinary shares with dilutive effect: Convertible corporate bonds Weighted-average number of ordinary shares used in the calculation of basic earnings per share		2021 2020 $ 24,796 ( $ 535,475 ) - - $ 24,796 ($ 535,475) Unit: Thousand shares 2021 2020 285,906 246,454 - - 285,906 246,454

If the Consolidated Company may choose to pay employees’ remuneration in shares or cash, when calculating the diluted profit (loss) per share, it is assumed that the employees’ remuneration will be issued in shares, and when the potential ordinary

shares have a dilutive effect, they will be included in the weighted average number of outstanding shares for the calculation of the diluted profit (loss) per share. The dilutive effect of these potential ordinary shares will also continue to be considered in the

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calculation of diluted profit (loss) per share before the resolution on the number of shares awarded to employees in the following year.

24. Share-Based Payment Agreement

In November 2021 and June 2020, the board meetings respectively resolved to issue rights shares, and reserved 15% and 10% of the total number of new shares respectively for subscription by employees in accordance with the Company Act. The recipients include employees of the Company and its subsidiaries who meet certain criteria. Warrant holders may immediately exercise the stock options in accordance with the measures for the issue and exercise of employee stock options after being granted the employee stock option warrants. In February 2022 and June 2020, the Company granted 1,331 and 2,863 units of employee stock options respectively, and each unit is entitled to 1,000 shares of ordinary shares. The stock options have a duration of 0.02 and 0.03 year, and the exercise price is NT$25 and NT$8.50 per share respectively.

Information on employee stock options of the Company and subsidiaries is as follows:

Employee stock options In circulation at the beginning of the year Granted in the year Exercised in the year In circulation at the end of the year Exercisable at the end of the year Weighted average fair value of stock options granted during the year (NT$)		January1 to December 31,2020	January1 to December 31,2020
		Unit - 2,863 2,863) - - $ 0.5	Weighted average exercise price (NT$)
	(		$ - 8.5 8.5

The Company used the Black-Scholes valuation model for the employee stock options granted in June 2020, and the input values used in the valuation model were as follows:

Share price on the grant date(NT$) Exercise price(NT$) Expected volatility Duration(Year) Expected rate of dividend Risk-free interest rate	June 2020
	$ 9 $ 8.5 3.06% 0.03 - 0.4549%

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From January 1 to December 31, 2020, the Company recognized remuneration costs of NT$1,432 thousand (of which NT$905 thousand was recognized as remuneration costs to employees of subsidiaries, which were booked as investments accounted for using the equity method).

25. Government Subsidies

In addition to those disclosed in other notes, the Company received the following government subsidies:

On May 14, 2020, the Company applied for the Industrial Development Bureau of the Ministry of Economic Affairs to subsidize the salaries and working capital of the manufacturing and technical service industries affected by severe and special infectious pneumonia, which were approved and disbursed after examination and approval, and a total of NT$7,695 thousand was approved. In 2020, NT$7,513 thousand of government subsidy income was recognized and NT$7,513 thousand of grant was received.

In accordance with the “Notice to the Ministry of Economic Affairs for Handling Applications for Salary and Operating Capital Subsidies for Enterprises in Hardship Affected by Severe and Special Infectious Pneumonia in the Manufacturing and Technical Service Industries,” the Industrial Development Bureau of the Ministry of Economic Affairs may revoke or annul the subsidies and recover all or part of the amount paid if the agreed items are not complied with.

1. Partial Acquisition or Disposal of Investment in Subsidiaries – Not Affecting Control The subsidiaries Giga Solar Materials Corporation and Wafering Technology Corporation did not subscribe to the rights shares of Giga Diamond Materials Corporation according to the shareholding ratio on February 3, 2021, resulting in the shareholding ratio decreasing from 36.71% to 35.35%. On October 1, 2021, Giga Diamond Materials Corporation exchanged all the shares of the remaining shareholders of its subsidiary Hua Hsu Optotech Co., Ltd. by issuing new shares and paying cash, resulting in the reduction of the shareholding ratio of Giga Solar Materials Corporation and Wafering Technology Corporation from 35.35% to 32.08%.

On February 13, 2021, the subsidiary Giga Solar Materials Corporation did not subscribe to the rights shares of the subsidiary Green Energy Electrode, Inc. according to the shareholding ratio, resulting in the shareholding ratio decreasing from 50.39% to 48.39%.

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The Company and its subsidiary Wafering Technology Corporation sold a total of 206 thousand shares of Giga Solar Materials Corporation in 2021. Due to the capital increase of Giga Solar Materials Corporation on June 29, 2021 and the resolution of the extraordinary shareholders’ meeting on September 30, 2021, Giga Solar Materials Corporation transferred 750 thousand treasury shares to employees. The book-close date of share subscription was November 11, 2021, and the objects were the current employees of Giga Solar Materials Corporation, so the consolidated shareholding ratio decreased to 39.81%.

Since the above transaction did not change the Company’s control over the subsidiary, the Company treated it as an equity transaction.

27. Information on Cash Flow

• (1) Changes in liabilities from financing activities

January 1 to December 31, 2021

Short-term borrowings Short term notes and bills payable Long-term borrowings Deposits received Lease liabilities	January1,2021 $ 1,490,814 - 377,500 449 28,146 $ 1,896,909		Cash flow $ 753,557 ) 199,315 574,000 41,208 3,752) $ 57,214	Non-Cash Changes Interest expense and amortization of discount $ - 23 - - - $ 23	December 31, 2021	December 31, 2021
		( (				$ 737,257 199,338 951,500 41,657 24,394 $ 1,954,146

January 1 to December 31, 2020

Short-term borrowings Long-term borrowings Deposits received Corporate bonds payable Long-term payables Lease liabilities	January1,2020 $ 937,961 161,500 1,458 1,199,038 30,524 31,841 $ 2,362,322		Cash flow $ 552,853 216,000 1,009 ) 1,200,000 ) 36,360 ) 3,695) $ 472,211)	Non-Cash Changes Amortization of discount $ - - - 962 5,836 - $ 6,798	December 31, 2020	December 31, 2020
		( ( ( ( (				$ 1,490,814 377,500 449 - - 28,146 $ 1,896,909

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28. Capital Risk Management

The Company conducts capital management to ensure that the Group’s enterprises are able to maximize shareholder returns by optimizing debt and equity balances while continuing to operate. There were no significant changes in the Company’s overall strategy.

The Company’s capital structure consists of net debt (i.e. borrowings less cash) and equity (i.e. capital stock, capital surplus, retained earnings, other equity items and non-controlling interests).

29. Financial Instruments

• (1) Fair value information – financial instruments not measured at fair value

The management of the Company believes that the book amount of financial assets and financial liabilities not measured at fair value either approaches its fair value or its fair value cannot be measured reliably.

• (2) Fair value information – financial instruments measured at fair value on a recurring basis

1. Fair value hierarchy.

December 31, 2021

December 31, 2021
Financial assets measured at fair value through other comprehensive income Investment in equity instruments December 31, 2020 Financial assets measured at fair value through other comprehensive income Investment in equity instruments		Level 1 $ - Level 1 $ -		Level 2 $ - Level 2 $ -		Level 3 $ 47,449 Level 3 $ 44,459		Total
								$ 47,449 Total
								$ 44,459

There was no transfer between Level 1 and Level 2 fair value measurements in

2021and 2020.

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1. Reconciliation of financial instruments measured at fair value in Level 3

2021

Assets Measured at fair value through other comprehensive income Stocks Balance at the beginning of the year $ 44,459 Total income (loss) recognized during the year. Recognized in other comprehensive income (reported in “unrealized gains or losses on investments in equity instruments measured at fair value through other comprehensive income”) 2,990 Balance at the end of the year $ 47,449

2020

2020
Balance at the beginning of the year Total income (loss) recognized during the year. Recognized in other comprehensive income (reported in “unrealized gains or losses on investments in equity instruments measured at fair value through other comprehensive income”) Acquisition Disposal Balance at the end of the year	Assets
	Measured at fair value through other comprehensive income
		Stocks
	(	$ 10,210 30,537 3,816 104) $ 44,459

1. Valuation techniques and input values for Level 3 fair value measurement

The following table presents the significant unobservable input values to the Company’s fair value hierarchy for assets measured at fair value on a recurring basis within Level 3 of the fair value hierarchy:

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December 31, 2021

December 31,	2021
Financial assets Measured at fair value through other comprehensive income Stocks December 31,	Valuation techniques	Significant Unobservable Input Values	Quantitative Information	Relationship between input value and fair value	Sensitivity analysis of the relationship between input value and fair value
	Market method 2020 Valuation techniques	Discount for lack of liquidity Significant Unobservable Input Values	30% Quantitative Information	The higher the degree of illiquidity, the lower the fair value estimate Relationship between input value and fair value	When the percentage of illiquidity increases (decreases) by 5%, the Company’s profit or loss would decrease/increase by NT$907 thousand to NT$2,479 thousand. Sensitivity analysis of the relationship between input value and fair value
Financial assets Measured at fair value through other comprehensive income Stocks
	Market method	Discount for lack of liquidity	30%	The higher the degree of illiquidity, the lower the fair value estimate	When the percentage of illiquidity increases (decreases) by 5%, the Company’s profit or loss would decrease/increase by NT$512 thousand to NT$2,651 thousand.

The Company’s finance and investment departments are responsible for conducting fair value tests to ensure that the valuation results approximate market conditions, that the sources of information are independent, reliable, consistent with other resources and representative of realizable prices, and that changes in the value of assets and liabilities that are subject to remeasurement or re-evaluation in accordance with the Company’s accounting policies are analyzed at each reporting date to ensure that the valuation results are reasonable.

• (3) Type of Financial instruments

Type of Financial instruments
Financial assets Financial assets at amortized cost (Note 1) Financial assets measured at fair value through other comprehensive income Financial liabilities Measured at amortized cost (Note 2)	December 31,2021 $ 383,016 47,449 2,021,587	December 31,2020
		$ 681,471 44,459 1,931,896

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Note 1: The balance consisted of financial assets measured at amortized cost, such as cash, notes and accounts receivable and accounts receivable – related party, net, other receivables, other receivables – related party, refundable deposits and other financial assets.

• Note 2: The balance consisted of financial liabilities measured at amortized cost, including short-term borrowings, notes payable, accounts payable, other payables, bonds payable, long-term borrowing, long-term bank borrowings due within one year, corporate bonds due or subject to exercise of right of sale within one year, long-term payables and deposits received.

• (4) Objectives and Policies of Financial Risk Management The Company’s major financial instruments include investments in equity instruments, accounts receivable, accounts payable, corporate bonds payable, borrowings and lease liabilities. The Company’s financial management department provides services to each business unit, coordinates the operation of access to domestic financial markets, and monitors and manages financial risks associated with the Company’s operations through internal risk reports that analyze risk exposures based on risk degree and breadth. These risks include market risk (which includes exchange rate risk, interest rate risk and other price risks), credit risk and liquidity risk.

The Company uses derivative financial instruments to hedge its exposure in risk in order to mitigate the impact of these risks. The use of derivative financial instruments is governed by the policies approved by the Company’s board of directors, which are the written principles for exchange rate risk, interest rate risk, credit risk, use of derivative financial instruments and non-derivative financial instruments, and investment of surplus circulating capital. Internal auditors review policy compliance and risk limits on an ongoing basis. The Company does not trade in financial instruments (including derivative financial instruments) for speculative purposes. The financial management department reports to the board of directors of the Company on a quarterly basis.

1. Market risk

The main financial risks to which the Company is exposed as a result of its operating activities are changes in foreign currency exchange rates (see (1) below) and changes in interest rates (see (2) below). The Company engages in

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various derivative financial instruments to manage its exposure to foreign currency exchange rate and interest rate risk.

There have been no changes in the Company’s exposure to market risk of financial instruments and the way it manages and measures such exposures.

• (1) Exchange rate risk

The Company’s exposure to exchange rate risk relates primarily to operating activities (when revenues or expenses are denominated in currencies different from the Company’s functional currency) and net investments in foreign operations.

A portion of the Consolidated Company’s foreign currency receivables and payables are denominated in the same currency, in which case, a natural hedge is created. The Consolidated Company does not apply hedge accounting because the aforementioned natural hedge and the management of exchange rate risk by means of swap contracts do not meet the requirements of hedge accounting; in addition, the net investment in foreign operations is a strategic investment and therefore the Consolidated Company does not hedge it.

The carrying amounts of monetary assets and monetary liabilities denominated in a currency other than the functional currency (including monetary items denominated in a currency other than the functional currency that have been written off in the consolidated financial statements) and the carrying amounts of derivatives with exchange rate risk exposure as of the balance sheet date are described in Note 33.

Sensitivity analysis

The Company is primarily affected by fluctuations in the USD exchange rate.

The following table details the sensitivity analysis of the Company when the exchange rate of the NTD (functional currency) increases and decreases by 1% against each relevant foreign currency. The sensitivity analysis includes only foreign currency monetary items in circulation and adjusts their period-end translation by a 1% change in exchange rates. The positive numbers in the following table represent the increase in net income before tax if the NTD weakens by 1% against the respective currencies, and the negative numbers for the same amount represent the

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decrease in net income before tax if the NTD strengthens by 1% against the respective currencies.

the respective currencies.
Gains	Impact of USD
	2021 $ 1,733	2020
		$ 897

(2) Interest rate risk

Interest rate risk arises because entities within the Company borrow funds at both fixed and floating rates. The Company manages interest rate risk by maintaining an appropriate mix of fixed and floating rates; however, hedge accounting is not applied because the Company does not meet the requirements for hedge accounting.

The carrying amounts of financial assets and financial liabilities exposed to interest rate risk as of the balance sheet date were as follows:

Fair value interest rate risk - Financial assets - Financial liabilities Cash flow interest rate risk - Financial assets - Financial liabilities	December 31,2021 $ 1,205 24,394 194,107 1,888,095	December 31,2020
		$ 1,200 28,146 131,514 1,868,314

Sensitivity analysis

The following sensitivity analysis is based on the interest rate risk of derivative and non-derivative instruments as of the balance sheet date. For floating rate assets (liabilities), the analysis assumes that the amount of the liability outstanding at the balance sheet date is outstanding during the reporting period. The rate of change used in reporting interest rates internally to key management is a 1% basis point increase or decrease in interest rates, which also represents management’s assessment of the range of reasonably possible changes in interest rates.

If the floating rate had increased/decreased by 1%, with all other variables held constant, the Company’s net income before tax would have decreased/increased by NT$16,940 thousand and increased/decreased by NT$17,368 thousand for 2021 and 2020, respectively.

(3) Other price risk

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The fair value of the Company’s unlisted equity securities may be affected by the uncertainty of the future value of these underlying securities. The fair value of the Company’s unlisted equity securities are measured at fair value through other comprehensive income. The Company manages the price risk of equity securities by diversifying its investments and setting limits on its investments in equity securities, both individually and in the aggregate. Portfolio information on equity securities is provided to the Company’s senior management on a regular basis, and the Board of Directors is required to review and approve all investment decisions on equity securities.

Sensitivity analysis

The sensitivity analysis of the price risk of equity instruments is mainly based on the changes in fair value at the end of the financial reporting period.

If the equity instrument price had increased/decreased by 10%, the Company’s equity value would have increased/decreased by NT$4,745 thousand and NT$4,446 thousand for 2021 and 2020, respectively. For the fair value hierarchy of other equity instruments in Level 3, please refer to Note 29(2) for sensitivity analysis information.

1. Credit risk

Credit risk refers to the risk of financial loss due to default on contract obligations by the counterparties. The Company’s credit risk is attributable to operating activities (mainly accounts receivable and notes) and financial activities (mainly bank deposits and various financial instruments).

Each unit of the Company manages credit risk in accordance with its policies, procedures and controls over credit risk. The credit risk of all counterparties is evaluated by taking into account the financial condition of the counterparties, the ratings of credit rating agencies, historical transaction experience, the current economic environment and the Company’s internal rating standards. The Company also uses certain credit enhancement tools (such as advance receipts) at appropriate times to reduce the credit risk of specific counterparties.

As of December 31, 2021 and 2020, the percentages of receivables from the top ten customers to the Company’s total receivables were 75% and 93%,

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respectively, and the credit concentration risk of the remaining receivables was relatively insignificant.

The Finance Department manages the credit risk of bank deposits, fixed-income securities and other financial instruments in accordance with the Company’s policies. Since the Corporation’s counterparties are determined by internal control procedures and are creditworthy banks and investment-grade financial institutions, corporate organizations and government agencies, there is no significant credit risk.

1. Liquidity risk

The Company manages and maintains sufficient positions of cash to support the Group’s operations and mitigate the impact of cash flow fluctuations. The Company’s management monitors the use of bank financing lines and ensures compliance with the terms of the loan agreements.

The Company’s financial position as of December 31, 2021 was subject to the liquidity risk of current liabilities exceeding current assets. In order to improve its operating condition, the Company has been actively transforming and increasing its domestic power plant construction project business and wafer processing business in order to continuously improve its operations and increase profitability. At the same time, the Company has disposed of some of its long-term investments and completed the renewal of its bank loan facilities, and continues to negotiate and sign new long-term secured loan facilities with banks to meet short-term capital needs and improve liquidity risk.

In order to meet the demand of repaying bank loans, the board meeting decided to issue 65,000 thousand rights shares on November 1, 2021. The book-close date of the rights shares was February 24, 2022 with a face value of NT$10. The subscription price per share was NT$25, and the total amount of share capital received was NT$1,625,000 thousand, which has been fully collected to meet the demand for repayment of bank loans and improve liquidity risk. Bank loans are an important source of liquidity for the Company. See (2) below for a description of the Company’s unused financing lines.

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• (1) Liquidity and interest rate risk of non-derivative financial liabilities

The analysis of the remaining contractual maturities of non-derivative financial liabilities has been prepared based on the undiscounted cash flows (including principal and estimated interest) of the financial liabilities based on the earliest possible date on which the Company could be required to make repayment. Therefore, bank loans that the Company may be required to repay immediately are shown in the earliest period of the below table, without regard to the probability that the bank will enforce the right immediately; the maturity analysis of other non-derivative financial liabilities is prepared based on the contractual repayment dates.

The undiscounted interest amount of interest cash flows paid at floating interest rates is derived from the curve of the yield rate at the balance sheet date.

December 31, 2021

Accounts payable Borrowing Lease liabilities		Less than 1 year		1–3years		4–5years		More than 5 years		Total
		$ 111,914 1,192,680 4,013 $ 1,308,607		$ - 474,103 7,227 $ 481,330		$ - 263,680 7,227 $ 270,907		$ - - 7,227 $ 7,227		$ 111,914 1,930,463 25,694 $ 2,068,071

Further information on the maturity analysis of the financial liabilities above is as follows:

Floating interest rate Fixed interest rate Lease liabilities		Less than 1 year $ 939,284 253,396 4,013 $1,196,693		1–5years $ - 737,783 14,454 $ 752,237		5–10years $ - - 7,227 $ 7,227		10–15years $ - - - $ -		15–20years		More than 20 years
										$ - - - $ -		$ - - - $ -

December 31, 2020

Accounts payable Borrowing Lease liabilities		Less than 1 year		1–3years		4–5years		More than 5 years		Total
		$ 619,955 1,590,949 4,149 $ 2,215,053		$ - 252,374 7,627 $ 260,001		$ - 50,593 7,227 $ 57,820		$ - - 10,840 $ 10,840		$ 619,955 1,893,916 29,843 $ 2,543,714

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Further information on the maturity analysis of the financial liabilities above is as follows:

Floating interest rate Fixed interest rate Lease liabilities		Less than 1 year $1,501,269 89,680 4,149 $1,595,098		1–5years $ - 302,967 14,854 $ 317,821		5–10years $ - - 10,840 $ 10,840		10–15years		15–20years $ - - - $ -		More than 20 years
								$ - - - $ -				$ - - - $ -

(2) Financing line limit

Financing line limit
Unsecured bank overdraft limit (Revisited every year) - Amount used - Amount unused Secured bank overdraft limit - Amount used - Amount unused	December 31,2021 $ 323,512 197,988 $ 521,500 $ 1,380,000 270,000 $ 1,650,000	December 31,2020
			$ 429,730 335,270 $ 765,000 $ 1,490,000 100,000 $ 1,590,000

1. Related Party Transactions

In addition to those disclosed in other notes, the transactions between the Company and other related parties are as follows:

• (1) Name and relationship of related party

Name of related party Relationship with the Company Wole Max Green Power Co., Ltd. Affiliated enterprise Ya Fei Solar Energy Co., Ltd. Affiliated enterprise Hunjin Enterprise Inc. Affiliated enterprise Giga Whole Energy Co., Ltd. Affiliated enterprise Whole Wing Energy Co., Ltd. Affiliated enterprise Whole Fund Energy Co., Ltd. Affiliated enterprise Yuandeng Solar Energy Co., Ltd. Affiliated enterprise Tron Energy Technology Affiliated enterprise Corporation Landian Solar Energy Co., Ltd. Affiliated enterprise Lanjing Volt Co., Ltd. Affiliated enterprise Huiqun Energy Co., Ltd. Affiliated enterprise UJGIGA Co., Ltd. Affiliated enterprise Yiguang Energy Co., Ltd. Affiliated enterprise (Note 1) Yijia Energy Co., Ltd. Affiliated enterprise (Note 1) Yichia Energy Co., Ltd. Affiliated enterprise (Note 1)

(Continued on next page)

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(Continued from previous page)

Name of related party Relationship with the Company Yijshin Energy Co., Ltd. Affiliated enterprise (Note 1) Yihui Energy Co., Ltd. Affiliated enterprise (Note 1) Ligao Optoelectronics Co., Ltd. Affiliated enterprise Lichao Optoelectronics Co., Ltd. Affiliated enterprise (Note 2) Suefu Co., Ltd. Affiliated enterprise (Note 2) Giga Solar Green Power Co., Ltd. Joint venture Giga Solar No.1 Co., Ltd. Joint venture (Note 3) Giga Solar No.2 Co., Ltd. Joint venture (Note 3) Giga Solar No.3 Co., Ltd. Joint venture (Note 3) Shuoyitai Green Energy Co., Ltd. Joint venture (Note 4) Jieshuo Co., Ltd. Joint venture (Note 5) Giga Solar Materials Corporation Subsidiaries Ho Mi Specialty Materials Subsidiaries Corporation Wafering Technology Corporation Subsidiaries Tron Energy Technology Corporation Subsidiaries Giga Diamond Materials Corporation Subsidiaries Whole Sun Green Power Co., Ltd. Subsidiaries Yancheng Giga Diamond Materials Subsidiaries Corporation Global Acetech Co., Ltd. Subsidiaries Hua Hsu Optotech Co., Ltd. Subsidiaries

• Note 1: The company is 100% owned by Wole Max Green Power Co., Ltd. and is listed as an affiliated enterprise after evaluation.

• Note 2: The company is 100% owned by Ligao Optoelectronics Co., Ltd. and is listed as an affiliated enterprise after evaluation.

• Note 3: The company is 100% owned by Giga Solar Green Power Co., Ltd. and is listed as a joint venture after evaluation.

• Note 4: The Company increased its capital in August 2021 and holds 35% of Shuoyitai Green Energy Co., Ltd., and it is listed as a joint venture after evaluation.

• Note 5: The Company increased its capital in November 2021 and holds 49.9% of Jieshuo Co., Ltd., and it is listed as a joint venture after evaluation.

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(2) Operating revenues

Account item Sales revenues Revenues from construction projects	Type/name of relatedparty Subsidiaries Affiliated enterprise Joint venture Giga Solar Green Power Co., Ltd. Ligao Optoelectronics Co., Ltd. Lichao Optoelectronics Co., Ltd.		2021 $ 4,648 14,974 $ 19,622 $ 75,947 57,148 49,892 $ 182,987		2020
					$ 10,925 14,508 $ 25,433 $ 82,681 48,459 51,202 $ 182,342

The above sale prices are agreed upon by both parties and there is no fixed percentage of price increase.

(3) Purchases

Purchases
Type/name of relatedparty Subsidiaries		2021 $ 1,066		2020
				$ 16,077

The above purchase prices are agreed upon by both parties and there is no fixed percentage of price increase.

(4) Contract assets

Contract assets
Type/name of relatedparty Joint venture Giga Solar Green Power Co., Ltd. Affiliated enterprise Lichao Optoelectronics Co., Ltd. Ligao Optoelectronics Co., Ltd. Others		2021 $ 29,226 $ 5,564 - 1,873 $ 7,437		2020
				$ 7,619 $ 31,815 34,245 - $ 66,060

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• (5) Receivables from related parties

Receivables from	related parties
Account item Accounts receivables Other receivables	Type/name of relatedparty Subsidiaries Affiliated enterprise Subsidiaries Affiliated enterprise Joint venture	December 31, 2021 $ 611 18,500 $ 19,111 $ 6,369 245 696 $ 7,310	December 31, 2020
				$ 611 9,016 $ 9,627 $ 6,734 1,286 40 $ 8,060

• (6) Payables to related parties

Account item Accounts payable Other payables	Type/name of relatedparty Subsidiaries Subsidiaries	December 31, 2021 $ 189 $ 1,035	December 31, 2020	December 31, 2020
				$ 1,111 $ 959

• (7) Contract liabilities

Contract liabilities
Type/name of relatedparty Affiliated enterprise Lichao Optoelectronics Co., Ltd. Lanjing Volt Co., Ltd. Landian Solar Energy Co., Ltd.		2021 $ 4,462 1,569 1,011 $ 7,042		2020
				$ - 1,569 1,011 $ 2,580

• (8) Acquisition of marketable securities

Acquisition of marketable securities
Type/name of relatedparty Subsidiaries Whole Sun Green Power Co., Ltd.		Acquisitionprice
		2021 $ -		2020
				$ 366,622

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(9) Property, plant and equipment acquired

Property, plant and equipment acquired	Property, plant and equipment acquired	Property, plant and equipment acquired	d	d
Type/name of relatedparty Subsidiaries Giga Solar Materials Corporation Disposal of property, plant and equipment Sale Price 2021 Subsidiaries $ 83 $					Acquisitionprice
					2021		Gain on		2020
					$ - 2020 -				$ 142 disposal
		2021					2021 $ 19			2020
		$ 83		$						$ -

• (10) Disposal of property, plant and equipment

• (11) Lending to related parties

Lending to related parties
Interest income Type/name of relatedparty Subsidiaries		2021 $ 291		2020
				$ -

The interest income above is mainly generated from the loan of funds in response to the short-term working capital needs of subsidiaries. The interest income is calculated by multiplying the balance of outstanding loans by an annual interest rate of 2.50%.

• (12) Related party transactions

The Company participated in the rights shares of Tron Energy Technology Corporation in August 2021 with an investment amount of NT$49,950 thousand, and acquired 666 shares. The shareholding ratio is 1.11%.

• (13) Lease agreement

Lease agreement
Account item Lease liabilities Interest expense	Type/name of relatedparty Subsidiaries Giga Solar Materials Corporation Subsidiaries Giga Solar Materials Corporation		2021 $ 23,997 $ 386		2020
					$ 27,224 $ 434

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Type/name of relatedparty Rental income Subsidiaries Giga Solar Materials Corporation Ho Mi Specialty Materials Corporation Others Affiliated enterprise Joint venture		2021 $ 18,083 1,875 888 204 99 $ 21,149		2020
				$ 17,123 1,875 896 134 79 $ 20,107

(14) Others

Other transactions between the Company and its subsidiaries are summarized as follows:

follows:
Item Advance receipts Payments for others Miscellaneous purchases Other income Repair and maintenance expenses	2021 $ 38 - - 12,081 -	2020
		$ 93 15,952 173 14,737 5

Other transactions between the Company and affiliates are summarized as follows:

Item Advance receipts Payments for others Other income	2021 $ 45 - 2,819	2020
		$ 31 36 1,003

Other transactions between the Company and joint ventures are summarized as

follows:

follows:
Item Advance receipts Payments for others Other income	2021 $ 54 - 453	2020
		$ 38 1 419

(15) Salary for key management

Salary for key management
Short-term employee benefits Post-employment benefits		2021 $ 14,612 266 $ 14,878		2020
				$ 17,981 577 $ 18,558

The remuneration for directors and other key management is determined by the Remuneration Committee based on individual performance and market trends.

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31. Pledged Assets

The following assets have been provided as collateral for financing loans, litigation guarantee deposits, tariff guarantees for imported raw materials or performance and lease guarantees:

Item Property, plant and equipment (including investment property) Refundable deposits Other financial assets – current and non-current Shares of subsidiaries (Giga Solar Materials Corporation)		December 31, 2021 $ 442,610 152 16,214 1,575,179 $ 2,034,155		December 31, 2020 $ 450,126 432,654 16,203 1,354,988 $ 2,253,971	Content of secured debts
					Bank borrowings Processed the lodgment of collateral with the lodgment office of the Hsinchu District Court and the deposit of court cost, etc. for the Philips lawsuit. Customs bonds, performance bonds, commodity bonds, lease bonds and bank loans Bank loans, short-term bills payable and project performance guarantees

1. Significant Contingent Liabilities and Unrecognized Contract Commitments

2. (1) As of December 31, 2021, the outstanding balance of letters of credit of the Company was about NT$14,755 thousand.

3. (2) The Company has entered into the following product licensing agreements with the following companies:

following companies:
Companyname Industrial Technology Research Institute	Payment of royalties for products Coating-related products	Contract Year December 2005	Valid period 20 years	Calculation of royalties
				Calculated based on product sales, payable annually

• (3) Koninklijke Philips Electronics N.V. (“Philips”) filed a civil lawsuit against the Company on April 28, 2014, claiming that the DVD-R and DVD-RW products manufactured and sold by the Company infringe upon Philips’ patent No. 82864 in the Republic of China (“Patent at Issue”), and requesting the Company to pay compensation of NT$10,000 thousand plus interest at 5% per annum from the day following the service of the complaint to the date of settlement. On May 13, 2015, Philips requested the Taiwan Intellectual Property Court to expand the amount of the original patent infringement lawsuit filed against Philips from NT$10,000 thousand

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to NT$1,050,000 thousand. On March 29, 2016, the Intellectual Property Court ruled in the first instance that the Company should compensate Philips for NT$10,500 thousand plus interest at 5% per annum from June 25, 2015 to the date of settlement, and dismissed the rest of Philips’ claims. The Company and Philips filed appeals to the Intellectual Property Court for the 2nd instance against the judgment of the first trial. The second instance of the Intellectual Property Court ruled on June 29, 2017 that the Company should return NT$1,050,000 thousand to Philips as unjust enrichment, and therefore the Company has already recorded in the accounting books the amount of the second instance judgment plus interest. The Company reappointed professional lawyers to appeal to the Supreme Court against the aforementioned second instance judgment of the Intellectual Property Court. The Supreme Court ruled on September 26, 2018 that the original judgment ordering the Company to pay and dismissing the Company’s appeal and the portion related to the court costs were reversed and remanded to the Intellectual Property Court. Therefore, the Company reversed the full amount of the potential compensation from the original intellectual property court’s second instance verdict in accordance with the Supreme Court’s ruling.

The judgment of the Intellectual Property Court adjudicating the case was pronounced on May 14, 2020. The Intellectual Property Court ruled that the Company should pay Philips an additional NT$409,885 thousand, plus interest at 5% per annum from June 25, 2015 to the date of settlement. The portion of the payment ordered by the judgment may be provisionally executed with a guarantee of NT$136,630 thousand issued by Philips or a promissory note of the same amount by Citi Taiwan Limited. However, if the Company provides security in advance for Philips with NT$ 409,885 thousand, it is exempted from provisional execution. The Company has estimated and booked the amount of the intellectual property court judgment plus interest.

After receiving the judgment of the Intellectual Property Court on May 25, 2020, the Company deposited an advance guarantee of NT$409,885 thousand with the Hsinchu District Court in accordance with the law to be exempted from pseudo execution, and obtained the performance guarantee amount of NT$409,885 thousand from Shanghai Commercial Bank on September 28, 2020. On September 30, 2020, the Company obtained a ruling from the Intellectual Property Court to replace the original lodgment with the performance guarantee from the Shanghai Commercial Bank and

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on January 18, 2021, the Company received back the lodgment of NT$409,885 thousand and its interest. The Company pledged 3,183 thousand shares of Giga Solar Materials Corporation’s stock under the performance guarantee contract with Shanghai Commercial Bank and lodged NT$160,000 thousand in a demand deposit reserve account in January 2021.

The Company has officially signed a confidential settlement agreement with Philips on April 28, 2021, which has come into force on April 30, 2021. According to the settlement agreement, both Philips and the Company withdrew their appeal on May 13, 2021; the Company withdrew the Shanghai Commercial Bank guarantee deposited with the court in June 2021, withdrew the NT$160,000 thousand deposited in the demand deposit reimbursement account, and then withdrew the rest of the cash deposited with the court on June 21, 2021. All litigation and non-litigation proceedings between the company and Philips have been concluded.

1. Information on Foreign Currency Assets and Liabilities with Significant Effect

The following information is expressed in aggregate in foreign currencies other than the Company’s functional currency, and the exchange rates disclosed refer to the rates at which such foreign currencies are converted to the functional currency. Information on foreign currency assets and liabilities with significant effect is as follows:

December 31, 2021 Financial assets Monetary items USD RMB JPY Financial liabilities Monetary items USD December 31, 2020 Financial assets Monetary items USD RMB EUR JPY	Foreign currency $ 6,841 32 408 580 3,782 32 7 408	Exchange rate 27.68 4.344 0.2405 27.680 28.48 4.377 35.02 0.276	Book value
			$ 189,348 141 98 16,060 107,719 142 232 113

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Financial liabilities Monetary items USD RMB	Foreign currency $ 632 17	Exchange rate 28.48 4.377	Book value
			$ 18,009 76

The Company’s net foreign currency exchange loss (realized and unrealized) was NT$3,918 thousand and NT$6,998 thousand for 2021 and 2020, respectively. Due to the variety of foreign currency transactions, it is not possible to disclose the exchange gains and losses by each currency of significant impact.

34. Additional Disclosure

• (1) Information on major transactions and (ii) invested enterprise

• Lending funds to others (Exhibit 1)

• Endorsement and guarantee for others (Exhibit 2)

• Marketable securities held at the end of the period (excluding investment in subsidiaries, affiliated enterprises and joint ventures) (Exhibit 3)

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

• Acquisition of real estate exceeding NT$300 million or 20% of paid-in capital or more. (Exhibit 4)

• Disposal of real estate exceeding NT$300 million or 20% of paid-in capital or more. (None)

• Purchases or sales of goods from or to related parties reaching NT$100 million or 20% of paid-in capital or more. (Exhibit 5)

• Receivables from related parties reaching NT$100 million or 20% of paid-in capital or more. (Exhibit 6)

• Engagement in derivative transactions. (None)

• Information on Investees (Exhibit 7)

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• (3) Information on investment in Mainland China

• The name of the investees in Mainland China, principal business, paid-in capital, investment methods, capital outward and inward remittances, shareholding, investment gains and losses, investment carrying amount at the end of the period, repatriated investment gains and losses, and investment quota for Mainland China. (Exhibit 8)

• Please refer to Exhibits 1 and 2 and Note 30 for the following significant transactions with Mainland China investees directly or indirectly through third regions, as well as their prices, payment terms, and unrealized profits or losses.

  • (1) The amount and percentage of purchases and the related ending balance and percentage of payables.

  • (2) The amount and percentage of sales and the related ending balance and percentage of receivables.

  • (3) The amount of property transactions and the amount of resulting gains or losses.

  • (4) The ending balance of endorsement guarantee of bills or the provision of collateral and its purpose.

  • (5) The maximum balance, ending balance, interest rate range and total current interest amount of financial accommodation

  • (6) Other transactions that have a significant effect on the current profit or loss or financial position, such as the provision or receipt of services.

• (4) Information on major shareholders: Name, number and percentage of shares held by shareholders with 5% or more of the shares. (None)

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Exhibit 1

Units: NTD thousands, unless otherwise stated

Gigastorage Corporation Lending Funds to Others January 1 to December 31, 2021

Number	The lending company of funds	The borrower of funds	Transactions	Related party or not	Highest balance in the period	Balance at the end of the period	Actual amounts drawn	Interest range	Nature of funds lending	Amount of business dealings	Reasons for the necessity of short-term financial accommodation	Provision of allowance for doubtful accounts	Collateral	Collateral	The limit for individual funds lending	The limit for total funds lending	Remarks
													Name	Value
0 1 2 3 4 5 6 7 8	Gigastorage Corporation Giga Solar Materials Corporation Whole Sun Green Power Co., Ltd. Green Energy Electrode, Inc. Green Energy Electrode,Inc. (Samoa) Wisdom Field Limited Merchant Energy PTE., Ltd. Eiwa Electric Power Co., Inc. Giga Diamond Materials Corporation	Wafering Technology Corporation Yancheng Giga Solar Materials Corporation Sunshine Solar Power Generation Co., Inc. Yancheng Green Energy Electrode Crop. Green Energy Electrode,Inc.(Samoa) Yancheng Green Energy Electrode Crop. Sunshine Solar Power Generation Co., Inc. Sunshine Solar Power Generation Co., Inc. Giga Solar Materials Corporation Yancheng Giga Diamond Materials Corporation Hua Hsu Optotech Co., Ltd.	Other receivables Other receivables (Note 1) Other receivables Other receivables Other receivables Other receivables Other receivables Other receivables Other receivables Other receivables Other receivables	Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes	$ 30,000 1,103,216 ( CNY 253,963 ) 470,105 ( USD 16,984 ) 44,288 ( USD 1,600 ) 8,304 ( USD 300 ) 8,304 ( USD 300 ) 193,760 ( USD 7,000 ) 130,096 ( USD 4,700 ) 240,500 ( JPY1,000,000 ) 209,814 ( USD 7,580 ) 30,000	$ - 703,568 ( CNY 161,963 ) 259,737 ( USD 9,384 ) 44,288 ( USD 1,600 ) 8,304 ( USD 300 ) 8,304 ( USD 300 ) 193,760 ( USD 7,000 ) 130,096 ( USD 4,700 ) - ( JPY - ) 157,499 ( USD 5,690 ) 25,000	$ - 703,568 ( CNY 161,963 ) 259,737 ( USD 9,384 ) 44,288 ( USD 1,600 ) 8,304 ( USD 300 ) 8,304 ( USD 300 ) 193,760 ( USD 7,000 ) 130,096 ( USD 4,700 ) - ( JPY - ) 157,499 ( USD 5,690 ) 25,000	2.5% - 2% 1% 1% 1% 2% 2% 1.6% 1% 3%	Short-term financial accommodation Business dealings Short-term financial accommodation Short-term financial accommodation Short-term financial accommodation Short-term financial accommodation Short-term financial accommodation Short-term financial accommodation Short-term financial accommodation Short-term financial accommodation Short-term financial accommodation	$ - 960,771 - - - - - - - - -	－ － To meet the operational needs of subsidiary . To meet the operational needs of subsidiary . To meet the operational needs of subsidiary . To meet the operational needs of subsidiary . To meet the operational needs of subsidiary . To meet the operational needs of subsidiary . To meet the operational needs To meet the operational needs of subsidiary . To meet the operational needs of subsidiary .	$ - - - - - - - - - - -	No No No No No No No No No No No	$ - － - - - - - - - - -	$ 289,457 (Note 2) 960,771 (Note 2) 592,267 (Note 3) 55,502 (Note 7) 55,502 (Note 7) 25,992 (Note 7) 184,769 (Notes 3 and 8) 109,704 (Notes 3 and 8) 615,931 (Note 5) 266,116 (Note 4) 266,116 (Note 4)	$ 1,157,826 (Note 2) 2,563,646 (Note 2) 888,400 (Note 3) 111,005 (Note 7) 111,005 (Note 7) 51,984 (Note 7) 277,153 (Note 3) 164,557 (Note 3) 615,931 (Note 5) 266,116 (Note 4) 266,116 (Note 4)	－ － － － － － － － － － －

Note 1: It refers to the other receivables recognized instead due to the fact that the receivables of related parties exceeded a certain period of normal credit extension period, and the loan nature was approved by the board meeting of Giga Solar Materials Corporation on November 11, 2021.

Note 2: The amount of funds lending to individual shall not exceed 10% of the current net worth of the lending company, and the total amount of funds lending shall not exceed 40% of the current net worth of the lending company; for companies that have business dealings with the Company, the amount of individual funds lending shall not exceed the amount of business dealings between the two parties, and the total amount of funds lending from the Company shall not exceed 40% of the Company’s net worth.

Note 3: The total amount of funds lending shall not exceed 60% of the net worth of the lending company, and the total amount of funds lending to companies with short-term financial accommodation needs shall not exceed 40% of the net worth of the lending company. If the lending company directly

or indirectly owns more than 50% of the voting shares of a subsidiary or a subsidiary that is included as a consolidated entity under IFRSs, the amount of individual funds lending is limited to 40% of the Company’s net worth; the amount of individual funds lending to other parties is limited to 10% of the Company’s net worth.

Note 4: The total amount of funds lending shall not exceed 40% of the Company’s net worth, and the amount of funds lending to individual companies that are affiliated with the Company with short-term financing accommodation needs shall be limited to 40% of the Company’s net worth; for other parties, the amount shall not exceed 10% of the Company’s net worth.

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• Note 5: The total amount of funds lending by Eiwa Electric Power Co., Inc. shall be limited to no more than 2% of its most recent net worth. The amount of individual funds lending to the parent company that directly or indirectly holds 100% of its voting shares is limited to 2000% of the Company’s net worth. For subsidiaries in which more than 50% of the voting shares are directly or indirectly held and are in needs for short-term financial accommodation as well as those included in the consolidated entities under IFRSs, the amount of individual funds lending is limited to 40% of its most recent net worth.

Note 6: If foreign currencies are involved, they are converted into New Taiwan dollars at the exchange rate on the date of the financial report (the ending exchange rate is 1 RMB = 4.3440 NT$, 1 USD = 27.68 NTD and 1 JPY = 0.2405 NTD).

• Note 7: The total amount of funds lending shall not exceed 40% of the Company’s most recent net worth, and the amount of funds lending to individual companies that are affiliated with the Company for short-term financing accommodation shall be limited to 20% of the Company’s most recent net worth; for other parties, the amount shall not exceed 10% of the Company’s most recent net worth.

Note 8: The capital loan and ending balance exceeded the limit; the subsidiary Whole Sun Green Power Co., Ltd. formulated an improvement plan on December 8, 2021 which has been approved by the board meeting, and will complete the improvement according to the planned schedule.

Note 9: NT$748,644 thousand was recognized as other receivables due to the fact that the receivables of Giga Solar Materials Corporations from Yancheng Giga Diamond Materials Corporation exceeded a certain period of normal credit extension period, and the loan nature was approved by the board meeting of Giga Solar Materials Corporation on January 24, 2022.

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Gigastorage Corporation

Endorsement and Guarantee for Others

January 1 to December 31, 2021

Exhibit 2

Units: NTD thousands, unless otherwise stated

Num ber	Name of the company providing endorsement and guarantee	Partyendorsed andguaranteed	Partyendorsed andguaranteed	Limit for endorsement and guarantee for a single enterprise	Balance of the maximum endorsement and guarantee for the period	Balance of endorsement and guarantee at the end of the period	Actual amounts drawn	Amount of endorsement and guarantee by property	Percentage of cumulative endorsements and guarantees to net worth of the most recent financial statements(%)	Limit for Maximum Endorsement and Guarantee	Parent company endorse- ment and guarantee for subsidiary	Subsi- diary endorse- ment and guarantee for parent company	Endorse- ment and guarantee for Mainland China	Remarks
		Company name	Relationship
1	Giga Diamond Materials Corporation	Yancheng Giga Diamond Materials Corporation	2	$ 665,291 (Note 1)	$ 208,512	$ 186,792	$ 121,082	$ 129,582	28.08	$ 665,291	Y	－	Y	－

Note 1: According to Giga Diamond Materials Corporation’s “Operating Procedures for Endorsements and Guarantee,” the total amount of endorsement and guarantee shall not exceed 100% of the net worth of the current period, among which the endorsement and guarantee limit for a single enterprise shall not exceed 10% of the net worth of the current period, except for the subsidiaries directly or indirectly invested by Giga Diamond Materials Corporation. The total amount of endorsements and guarantee by Giga Diamond Materials Corporation and its subsidiaries as a whole shall not exceed 100% of the Company’s net worth, and the endorsement and guarantee for a single enterprise shall not exceed 10% of the Giga Diamond Materials Corporation’s net worth.

Note 2: If foreign currencies are involved, they are converted into New Taiwan dollars at the exchange rate on the date of the financial report (the ending exchange rate is 1 RMB = 4.3440 NT$, 1 USD = 27.68 NTD and 1 JPY = 0.2405 NTD).

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Units: NTD thousands, unless otherwise stated

Gigastorage Corporation

Marketable Securities Held at the End of the Period

December 31, 2021

Exhibit 3

.Subsidiaries held	Type of marketable securities	Name of marketable securities	Relationship with the issuer of marketable securities	Booked account			End of theperiod	End of theperiod		Remarks
					Unit		Book value	Shareholding ratio(%)	Fair value
Gigastorage Corporation Wafering Technology Corporation Giga Solar Materials Corporation Tron Energy Technology Corporation	Stocks Stocks Stocks Stocks Funds Stocks Stocks Stocks	Prorit Corporation New Land Packing Corporation Big Sun Energy Technology Inc. SyneuRx International (Taiwan) Corp. TIEF Fund, L.P. Long Time Technology Co., Ltd. Big Sun Energy Technology Inc. Phoenix Battery Corporation	－ － The Company is its corporate director － － － － －	Financial assets measured at fair value through other comprehensive income – non-current Financial assets measured at fair value through other comprehensive income – non-current Financial assets measured at fair value through other comprehensive income – non-current Financial assets at fair value through profit or loss – non-current Financial assets at fair value through profit or loss – non-current Financial assets measured at fair value through other comprehensive income – non-current Financial assets measured at fair value through other comprehensive income – non-current Financialassets at fair value through other comprehensive income –Non-current	3,942,205 2,155,410 8,000,000 245,086 - 8,005,000 2,250,000 500,000	$ 12,812 34,637 - 11,997 26,284 460,859 - 5,000		1.26 11.97 1.98 0.20 7.45 6.65 0.56 1.33	$ 12,812 34,637 - 11,997 26,284 460,859 - 5,000	－ － － － － － － －

Note 1: The marketable securities listed above were not guaranteed or pledged for borrowing or otherwise restricted by contract as of December 31, 2021. Note 2: For information on investment in subsidiaries and affiliated companies, please refer to Exhibits 7 and 8.

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Units: NTD thousands, unless otherwise stated

Gigastorage Corporation

Acquisition of Real Estate Reaching NT$300 Million or 20% of Paid-in Capital or More.

January 1 to December 31, 2021

Exhibit 4

The company which acquired the real estate	Asset name	Date of occurrence	Transaction amount	Consideration payment status	Trading counterparty	Relationship	If the trading	counterparty is a related party, the previous transfer information	counterparty is a related party, the previous transfer information	counterparty is a related party, the previous transfer information	Reference for price determination	Acquisition purpose and status of use	Other agreed matters
							Owner	Relationship with the issuer	Transfer date	Amount
The Company. Giga Solar Materials Corporation	Land Land and buildings Land and buildings	February 19, 2021 July 6, 2021 December 15, 2021	$ 1/6 of NT$2,000,000 thousand $ 315,000 840,379	The first installment has been paid, and the total amount is NT$50,000 thousand $ 315,000 80,000	Natural person Yoyo Enterprise Inc. Energy Pass Incorporation	No No No	Not applicable Not applicable Not applicable	Not applicable Not applicable Not applicable	Not applicable Not applicable Not applicable	Not applicable Not applicable Not applicable	Market price and appraisal report After considering the current market price and negotiating with the seller After considering the current market price and negotiating with the seller	It is required for participating in the development of the Green Energy Industrial Park and the medium and long-term operation planning of the Group For the operation of Giga Solar Materials Corporation and its subsidiaries For the operation of Giga Solar Materials Corporation and its subsidiaries	No No No

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Gigastorage Corporation

Purchases or Sales of Goods from or to Related Parties Reaching NT$100 Million or 20% of Paid-in Capital or More

January 1 to December 31, 2021

Exhibit 5

Units: NTD thousands, unless otherwise stated

Purchase (sales) company	Name of trading counterparty	Relationship		The circumstance of the dealings	The circumstance of the dealings	The circumstance of the dealings	The circumstances and reasons why the trading terms are different from those of ordinarytransactions	The circumstances and reasons why the trading terms are different from those of ordinarytransactions	Notes and accounts receivable (payable)	Notes and accounts receivable (payable)	Remar ks
			Purchase (sales)	Amount	As a percentage of total purchase (sales)	Credit period	Unit price	Credit period	Balance	As a percentage of total notes and accounts receivable (payable)
Giga Solar Materials Corporation	Yancheng Giga Solar Materials Corporation	Affiliates of the Company	Sales	$ 959,382	21.15%	Monthly settlement 120–180 days	$ -	－	$ 477,094	46.12%	－

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Gigastorage Corporation

Receivables from Related Parties Reaching NT$100 Million or 20% of Paid-in Capital or More.

December 31, 2021

Exhibit 6

Units: NTD thousands, unless otherwise stated

Companies recorded as accounts receivables	Name of trading counterparty	Relationship	Balance of receivables from related parties	Turnover rate	Past due receivables from relatedparties	Past due receivables from relatedparties	Amount of receivables from related parties collected during the subsequentperiod	Provision of allowance for loss
					Amount	Method of processing
Accounts receivable and other receivables Giga Solar Materials Corporation Giga Diamond Materials Corporation Other receivables Whole Sun Green Power Co., Ltd. Wisdom Field Limited (Samoa) Merchant Energy PTE.,Ltd. Yancheng Giga Solar Materials Corporation	Yancheng Giga Solar Materials Corporation Yancheng Giga Diamond Materials Corporation Sunshine Solar Power Generation Co., Inc. Sunshine Solar Power Generation Co., Inc. Sunshine Solar Power Generation Co., Inc. Tron Giga (Yancheng) Energy Co., Ltd.	Affiliates of the Company Affiliates of the Company Affiliates of the Company Affiliates of the Company Affiliates of the Company Affiliates of the Company	$ 1,444,023 288,589 269,085 199,955 138,716 117,440	Once - - - - -	$ 966,929 131,090 - - - 9,997	Ongoing Collections Ongoing Collections － － － Ongoing Collections	$ 499,560 - - - - 9,997	- - - - - -

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Gigastorage Corporation

Name of Investee, Location, Etc.

January 1 to December 31, 2021

Exhibit 7

Units: NTD thousands, unless otherwise stated

Investor name	Investee name	Location	Principal Business	Initial investment amount	Initial investment amount	Holdingat the end of t	Holdingat the end of t	he	period	Profits (losses) of the investee for theperiod	Investment gain (loss) recognized in theperiod	Remarks
				The end of the period	The end of last year	Number of shares	Percentage		Book value
Gigastorage Corporation	Global Acetech Co., Ltd. UJGIGA Co., Ltd. Giga Solar Materials Corporation Ho Mi Specialty Materials Corporation Giga Solar Green Power Co., Ltd. Wafering Technology Corporation Wole Max Green Power Co., Ltd. Ri Yun Green Energy Corporation Tron Energy Technology Corporation Shuoyitai Green Energy Co., Ltd. Jieshuo Co., Ltd.	Thailand Kaohsiung City Hukou Township, Hsinchu County Hukou Township, Hsinchu County Hukou Township, Hsinchu County Hukou Township, Hsinchu County Hukou Township, Hsinchu County Taipei City Taoyuan City Hukou Township, Hsinchu County Hukou Township, Hsinchu County	Solar Energy Related Business Solar Energy Related Business Precision chemical materials, industrial plastic products Precision chemical materials Solar Energy Related Business Solar Energy Related Business Solar Energy Related Business Solar Energy Related Business Electric buses, diesel buses/battery systems/energy storage systems Development, installation and holding of energy storage systems Development of solar energy and energy storage systems	$ 1,094,992 33,840 163,955 93,500 85,000 180,001 366,622 48,300 49,950 350 4,990	$ 1,123,004 11,640 164,087 93,500 75,000 180,001 366,622 42,000 - - -	29,574,997 3,384,000 29,708,902 9,350,000 8,749,975 26,996,112 33,790,000 4,830,000 666,000 35,000 499,000	99.99% 30% 39.15% 92.57% 50% 100% 31% 30% 1.11% 35% 49.9%	$ 11,962 33,949 2,509,214 83,061 86,887 244,078 356,775 47,933 48,995 343 4,981		$ 3,319 379 ( 375,458 ) ( 1,083 ) ( 1,982 ) 6,721 50,033 ( 506 ) ( 64,050 ) ( 20 ) ( 18 )	$ 3,319 113 ( 143,756 ) ( 924 ) ( 991 ) 7,418 15,510 ( 151 ) ( 918 ) ( 7 ) ( 9 )	－ － (Note 5) (Note 5) (Note 5) (Note 5) (Note 5) － － (Note 6) (Note 6)

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Investor name	Investee name	Location	Principal Business	Initial investment amount	Initial investment amount	Holdingat the end of the	Holdingat the end of the	Holdingat the end of the	period	Profits (losses) of the investee for theperiod	Investment gain (loss) recognized in theperiod	Remarks
				The end of the period	The end of last year	Number of shares	Percentage		Book value
Wafering Technology Corporation Giga Solar Materials Corporation	Giga Solar Materials Corporation Giga Diamond Materials Corporation Tron Energy Technology Corporation Ligao Optoelectronics Co., Ltd. Wole Max Green Power Co., Ltd. UJGIGA Co., Ltd. Yusheng Energy Co., Ltd. Whole Sun Green Power Co., Ltd. Giga Solar Materials Corporation (Mauritius) Tron Energy Technology Corporation	Hukou Township, Hsinchu County Hukou Township, Hsinchu County Taoyuan City Hukou Township, Hsinchu County Hukou Township, Hsinchu County Kaohsiung City Taipei City Hukou Township, Hsinchu County Mauritius Taoyuan City	Precision chemical materials, industrial plastic products Manufacturing of metal wire products, manufacturing of electronic components, trading and other related businesses Electric buses, diesel buses/battery systems/energy storage systems Solar Energy Related Business Solar Energy Related Business Solar Energy Related Business Renewable energy relate business Solar Energy Related Business General investment Electric buses, diesel buses/battery systems/energy storage systems	$ 105,387 1,077 49,302 56,800 94,612 21,432 50,000 2,723,842 565,410 461,875	$ 143,593 1,043 31,970 31,800 94,612 7,372 - 2,723,842 565,410 399,723	502,000 38,114 733,200 5,680,000 8,720,000 2,143,200 5,000,000 126,516,924 17,900,000 6,244,989	0.66% 0.03% 1.22% 50% 8% 19% 11.88% 100% 100% 10.40%	$ 42,399 222 43,865 47,707 92,071 21,504 50,058 1,480,667 854,867 457,257		( $ 375,458 ) ( 104,098 ) ( 64,050 ) ( 649 ) 50,033 379 228 3,139 ( 140,186 ) ( 64,050 )	$ (Note 2) (Note 2) (Note 2) (Note 2) (Note 2) (Note 2) (Note 2) (Note 2) (Note 2) (Note 2)	－ － － － － － － － (Note 5) (Note 5)

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Investor name	Investee name	Location	Principal Business	Initial investment amount	Initial investment amount	Holdingat the end of the	Holdingat the end of the	Holdingat the end of the	period	Profits (losses) of the investee for theperiod	Investment gain (loss) recognized in theperiod	Remarks
				The end of the period	The end of last year	Number of shares	Percentage		Book value
Giga Solar Materials Corporation Green Energy Electrode, Inc. Whole Sun Green Power Co., Ltd. Wisdom Field Limited (Samoa) Merchant Energy PTE., Ltd. Giga Diamond Materials Corporation	Giga Diamond Materials Corporation Tron Energy Technology Corporation Prosperous China Inc. Yusheng Energy Co., Ltd. Green Energy Electrode, Inc.(Samoa) Eiwa Electric Power Co., Inc. Godo Kaisha Best Solar Godo Kaisha Chiba 1 Godo Kaisha Merchant Energy NO.8 Wisdom Field Limited (Samoa) Merchant Energy PTE., Ltd. Sunshine Solar Power Generation Co., Inc. Giga Diamond Materials Corporation (Seychelles) Hua Hsu Optotech Co., Ltd.	Hukou Township, Hsinchu County Hukou Township, Hsinchu County Samoa Taipei City Samoa Fukushima Prefecture, Japan Chiba Prefecture, Japan Wakayama, Japan Fukushima Prefecture, Japan Samoa Singapore Philippines Seychelles Xitun District, Taichung	Manufacturing of metal wire products, manufacturing of electronic components, trading and other related businesses Manufacturing and trading of energy materials General investment Renewable energy relate business General investment Solar Energy Related Business Solar Energy Related Business Solar Energy Related Business Solar Energy Related Business General investment General investment Solar Energy Related Business General investment Wafer surface treatment, silicon processing, silicon materials for solar energy, OEM business,etc.	$ 500,471 216,971 18,904 60,000 176,342 15,070 44,939 62,788 69,325 1,173,221 930,951 814,827 594,542 235,784	$ 477,938 116,754 18,904 - 77,966 15,070 44,939 42,428 69,325 1,173,221 930,951 814,827 594,542 152,712	36,658,046 15,858,067 500,000 6,000,000 6,000,000 - - - - 37,110,000 29,800,000 - 19,200,000 8,100,000	32.05% 48.39% 100% 14.25% 100% 100% - (Note 1) - (Note 1) - (Note 1) 100% 87.65% 39.93% 100% 100%	$ 222,312 134,863 19,031 60,069 129,729 76,846 42,397 48,420 135,815 461,922 240,390 100,833 ( 128,263 ) 244,620		( $ 104,098 ) ( 42,229 ) 277 228 ( 25,365 ) 18,307 7,708 ( 963 ) 51,967 ( 47,736 ) ( 50,783 ) ( 56,689 ) ( 121,897 ) 83,576	(Note 2) (Note 2) (Note 2) (Note 2) (Note 2) (Note 2) (Note 2) (Note 2) (Note 2) (Note 2) (Note 2) (Note 2) (Note 2) (Note 2)	－ － － － － － － － － － － － － －

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• Note 1: Whole Sun Green Power Co., Ltd. invests in Godo Kaisha Best Solar, Godo Kaisha Chiba 1 and Godo Kaisha Merchant Energy No.8 according to the Japanese TK-GK structure. Although it does not hold voting rights, Whole Sun Green Power Co., Ltd. is endowed with economic beneficial rights and the right to request these parties to consult Whole Sun Green Power Co., Ltd. in advance for major decision-making requests according to the contract.

• Note 2: Gains or losses on investments in these companies are included in the investment gain or loss of the subsidiaries.

• Note 3: The relevant figures here are presented in NTD. Where foreign currencies are involved, they should be translated into NTD using the exchange rates prevailing at the date of the financial statements.

• Note 4: Please refer to Exhibit 8 for information on investees in Mainland China.

• Note 5: For the investment gain or loss for the period, taken into account were the unrealized gain or loss on intercompany transactions and the amortization effect of the excess of the fair value of identifiable net assets over their carrying amount at the time of original acquisition.

• Note 6: Jieshuo Co., Ltd. and Shuoyitai Green Energy Co., Ltd. are individual insignificant joint ventures, and their financial reports have not been audited by CPAs; however, the management of the Consolidated Company believes that these individual insignificant financial reports of the joint venture companies will not have significant differences if audited by CPAs.

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Gigastorage Corporation

Information on Investment in Mainland China

January 1 to December 31, 2021

Exhibit 8

Units: NTD thousands, unless otherwise stated

Investee name in Mainland China	Principal Business	Principal Business	Paid-in capital	Investment method	Investment method	Accumulated investment amount remitted from Taiwan at the beginning of the period	Amount of investment remitted or recovered duringtheperiod	Amount of investment remitted or recovered duringtheperiod	Amount of investment remitted or recovered duringtheperiod	Accumulated investment amount remitted from Taiwan at the end of the period	Profits or losses of the investee for the period	Shareholdin g percentage of the Company’s direct or indirect investment	Investment gain or loss recognized in the period (Note 2)	Carrying amount of investment at the end of the period	Investment income remitted back as of the end of the period	Remarks
							Remittance		Recovery
Suzhou Giga Solar Materials Corporation Yancheng Giga Solar Materials Corporation Yancheng Giga Diamond Materials Corporation Yancheng Green Energy Electrode Crop. Tron Giga (Yancheng) Energy Co., Ltd. Nantong Exojet Technology Co., Ltd. Shanghai Exojet Electronic Materials Co., Ltd.	Photovoltaic process testing and technical services, etc. Photovoltaic process testing and technical services, etc. Manufacturing and sale of wire materials, etc. Lithium battery material manufacturing, research and development, and lithium-ion battery technology development and consulting services Battery module, battery pack and battery component assembly Manufacturing and sales of thick film materials for passive components Manufacturing and sales of thick film materials for passive components		$ 88,625 ( USD 3,000 ) 638,350 ( USD 14,900 + CNY 35,000 ) （Note 5） 594,542 ( USD 19,200 ) 176,342 ( USD 6,000 ) 91,071 ( USD 1,530+ CNY 10,437 ) （Note 6） 154,128 ( USD 5,000 ) 13,686 ( USD 350 )	Indirectly invested through an invested enterprise in the third region (Mauritius) Indirectly invested through an invested enterprise in the third region (Mauritius) Indirectly invested through an invested enterprise in the third region (Seychelles) Indirectly invested through an invested enterprise in the third region (Samoa) Indirectly invested through an invested enterprise in the third region (Mauritius) Direct invest in mainland China Indirectly invested through an invested enterprise in the third region(Samoa)		$ 88,625 ( USD 3,000 ) 478,050 ( USD 14,900 ) 594,542 ( USD 19,200 ) 77,966 ( USD 2,500 ) 154,128 ( USD 5,000 ) 13,686 ( USD 350 )	$ - - - 98,376 ( USD 3,500 ) - - -		$ - - - - - - -	$ 88,625 ( USD 3,000 ) 478,050 ( USD 14,900 ) 594,542 ( USD 19,200 ) 176,342 ( USD 6,000 ) - 154,128 ( USD 5,000 ) 13,686 ( USD 350 )	( $ 3,739 ) ( 140,392 ) ( 121,897 ) ( 25,365 ) 8,052 ( 9,428 ) 277	100% 100% 100% 100% 49% 100% 100%	( $ 3,739 ) ( 140,392 ) ( 121,966 ) ( 25,365 ) 3,945 ( 9,428 ) 277	$ 81,683 748,966 ( 125,199 ) 129,953 42,114 88,593 18,963	$ - - - - - - -	(Note 2) (Note 2) (Note 2) (Note 7) - (Note 2) (Note 2)
Company name		Cumulative amount of investment remitted from Taiwan to Mainland China at the end of theperiod			Investment amount approved by the Investment Commission of the Ministry Economic Affairs			of	Ceiling on investments in Mainland China imposed by the Investment Commission of the Ministry of Economic Affairs
Giga Solar Materials Corporation		$940,232 (USD23,250+CNY45,437)			$937,902 (USD29,849)				$ 3,845,469
Giga Diamond Materials Corporation		594,542 (USD19,200)			594,542 (USD19,200)				399,174
Green Energy Electrode, Inc.		176,342 (USD6,000)			178,833 (USD6,090)				166,507

Note 1: Investment methods are classified into the following three categories; fill in the number of the category that each case belongs to:

1. Invest in Mainland China directly.

2. Invest in Mainland China through companies in third regions. (Please specify the investment company of the third region.)

3. Other methods.

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Note 2: The investment gain or loss recognized in the current period is based on the evaluation of the financial statements audited by CPAs.

Note 3: The translation is based on the exchange rate at the time of remittance.

Note 4: The repatriated investment amount was translated at the prevailing exchange rate, and the investment amount not repatriated was translated at the period end rate of 1:27.68.

• Note 5: RMB35,000 thousand represented the direct investment of cash dividends from the earnings of Suzhou Giga Solar Materials Corporation through a third region (Mauritius) into Yancheng Giga Solar Materials Corporation. The process of application to the Investment Commission of the Ministry of Economic Affairs had been completed. The difference between the paid-in capital and the amount approved by the Investment Commission of the Ministry of Economic Affairs is due to the difference between the exchange rate of USD and RMB on the date of application and the date of remittance.

• Note 6: RMB10,437 thousand represented the direct investment of cash dividends from the earnings of Suzhou Giga Solar Materials Corporation through a third region (Mauritius) into Tron Giga (Yancheng) Energy Co., Ltd. The process of application to the Investment Commission of the Ministry of Economic Affairs had been completed. The difference between the paid-in capital and the amount approved by the Investment Commission of the Ministry of Economic Affairs is due to the difference between the exchange rate of USD and RMB on the date of application and the date of remittance.

• Note 7: Green Energy Electrode, Inc. invested US$3.5 million in Yancheng Green Energy Electrode Crop. with the self-owned funds of Green Energy Electrode, Inc.(Samoa) as an investment enterprise in the third region approved by the Investment Committee of the Ministry of Economic Affairs in April 2021, and the investment has completed.

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§Table of Contents of the Schedule of Important Accounting Items§

Item Schedule of assets, liabilities and equity items Schedule of cash and cash equivalents Schedule of notes and accounts receivable Schedule of other receivables Schedule of inventories Schedule of Financial assets at fair value through other comprehensive income – non-current Schedule of prepayment and other current assets Schedule of changes in investment accounted for using the equity method Schedule of changes in property, plant and equipment Schedule of Changes in Right-of-Use Assets and Changes in Accumulated Depreciation of Right-of-Use Assets Schedule of changes in intangible assets Schedule of short-term notes and bills payable Schedule of short-term borrowings Schedule of accounts payable Schedule of long-term borrowings Schedule of lease liabilities Schedule of profit or loss items Schedule of operating revenues Schedule of operating costs Schedule of operating expenses Schedule of other income and expenses Schedule of non-operating income and expenses Summary of employee benefits, depreciation and amortization expense by function incurred during the period

Number / Index

Schedule 1 Schedule 2 Note 9 Schedule 3 Schedule 4 Note 15 Schedule 5 Note 11 Schedule 6 Note 14 Note 16 Schedule 7 Schedule 8 Schedule 9 Schedule 10 Schedule 11 Schedule 12 Schedule 13 Note 21 Note 21 Schedule 14

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Gigastorage Corporation

Schedule of Cash and Cash Equivalents

December 31, 2021

	December 31, 2021	December 31, 2021	December 31, 2021
Schedule 1 Name Cash on hand and petty cash Bank deposits Demand deposits	Units: NTD thousands, unless otherwise stated Abstract Amount $ 451 Including NT$124,171 thousand and USD1,984 thousand (exchange rate 27.68) 179,098 $ 179,549
			$ 451 179,098 $ 179,549

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Gigastorage Corporation

Schedule of Notes and Accounts Receivable

December 31, 2021

Schedule 2

Unit: NTD thousands

Customer name Not-related party Customer A Customer B Customer C Customer D Customer E Customer F Others (Note) Less: allowance for doubtful accounts Related party UJGIGA Co., Ltd. Other related party (Note)		Amount
	(	$ 43,913 37,910 21,506 13,439 12,242 11,159 19,263 2,367) 157,065 17,218 1,893 19,111 $ 176,176

Note: The balance of each party does not exceed 5% of the balance of the account.

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Gigastorage Corporation Schedule of Inventories December 31, 2021

Schedule 3

Unit: NTD thousands

Item Raw materials Work in process Finished goods		Amount	Amount	Amount
		Costs $ 14,502 340 3,569 $ 18,411	Net realizable value
				$ 17,037 416 3,622 $ 21,075

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Gigastorage Corporation

Schedule of Financial Assets at Fair Value through Other Comprehensive Income – Non-Current

January 1 to December 31, 2021

Schedule 4

Units: NTD thousands, unless otherwise stated

Name Prorit Corporation New Land Packing Corporation Total	Balance at the beginning of the year Number of shares (in thousands) Fair value 3,942 $ 7,451 2,156 37,008 $ 44,459	Balance at the beginning of the year Number of shares (in thousands) Fair value 3,942 $ 7,451 2,156 37,008 $ 44,459	Increase in theyear Number of shares (in thousands) Amount - $ - - - $ -	Increase in theyear Number of shares (in thousands) Amount - $ - - - $ -	Decrease in theyear Number of shares (in thousands) Amount - $ - - - $ -	Decrease in theyear Number of shares (in thousands) Amount - $ - - - $ -	Financial assets Unrealized gains (losses) on financial assets $ 5,361 ( 2,371) $ 2,990	Balance at the end of the	Balance at the end of the	year Fair value $ 12,812 34,637 $ 47,449	Provision of guarantee or pledge No No	Remarks
	Number of shares (in thousands) 3,942 2,156		Number of shares (in thousands) - -		Number of shares (in thousands) - -			Number of shares (in thousands) 3,942 2,156	Shareholding% 1.26 11.97
							(

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Gigastorage Corporation

Schedule of Changes in Investment Accounted for Using the Equity Method January 1 to December 31, 2021

Schedule 5

Units: NTD thousands, unless otherwise stated

Investments in subsidiaries Giga Solar Materials Corporation Wafering Technology Corporation Ho Mi Specialty Materials Corporation Global Acetech Co., Ltd. Investments in affiliates and joint ventures Wole Max Green Power Co., Ltd. Giga Solar Green Power Co., Ltd. Tron Energy Technology Corporation Ri Yun Green Energy Corporation UJGIGA Co., Ltd. Jieshuo Co., Ltd. Shuoyitai Green Energy Co., Ltd. Total	Balance at the beginning of the year Number of shares (in thousands) Amount 29,733 $ 2,405,116 26,996 198,484 9,350 83,810 118,300 40,923 33,790 352,159 7,500 65,461 - - 4,200 41,784 1,164 11,636 - - - - $ 3,199,373	Balance at the beginning of the year Number of shares (in thousands) Amount 29,733 $ 2,405,116 26,996 198,484 9,350 83,810 118,300 40,923 33,790 352,159 7,500 65,461 - - 4,200 41,784 1,164 11,636 - - - - $ 3,199,373	Increase in	th	eyear Amount $ - - - - - 10,000 49,950 6,300 22,200 4,990 350 $ 93,790	Decrease i	n theyear Amount ( $ 56,386 ) - - ( 28,012 ) ( 13,111 ) - - - - - - ($ 97,509)	Investment income(loss) ( $ 143,756 ) 7,418 ( 924 ) 3,319 15,511 ( 991 ) ( 918 ) ( 151 ) 113 ( 9 ) ( 7) ($ 120,395)	Exchange differences on translation of financial statements of foreign operations ( $ 21,088 ) ( 448 ) - ( 4,268 ) - - ( 37 ) - - - - ($ 25,841)	Unrealized gains (losses) on financial assets measured at fair value through other comprehensive income $ 108,045 1,780 - - - - - - - - - $ 109,825	(Unrealized) realized net incomes on sales $ - ( 11,188 ) - - 116 ( 4,556 ) - - - - - ($ 15,628)	Actuarial (loss) gain on defined benefit plan $ 890 16 - - - - - - - - - $ 906		Change in subsidiaries and affiliated enterprises $ 228,595 19,700 421 - - - - - - - - $ 248,716	Balan	ce at the end of the	ye	ar Amount $ 2,521,416 215,762 83,307 11,962 354,675 69,914 48,995 47,933 33,949 4,981 343 $ 3,393,237		Net equity $ 2,509,214 243,839 83,061 11,962 356,775 86,887 48,995 47,933 33,949 4,981 343 $ 3,427,939	Pledge status Yes No No No No No No No No No No	Remarks
	Number of shares (in thousands) 29,733 26,996 9,350 118,300 33,790 7,500 - 4,200 1,164 - -		Number of shares (in thousands) - - - - - 1,250 666 630 2,220 499 35			Number of shares (in thousands) ( 24 ) - - ( 88,725 ) - - - - - - -									Number of shares (in thousands) 29,709 26,996 9,350 29,575 33,790 8,750 666 4,830 3,384 499 35	Shareholding % 39.15 100 92.57 99.99 31 50 1.11 30 30 49.9 35
																						Notes 1 and 2 Note 2 Note 2 Note 3 Note 3

Note 1: Please refer to Note 30 for the pledge status. Note 2: The decreases in the current period include the cash dividends issued by Giga Solar Materials Corporation and Whole Max Green Power Co., Ltd. of NT$51,509 thousand and NT$13,111 thousand respectively, and the share capital returned by Global Acetech Co., Ltd. of NT$28,012 thousand. Note 3: Jieshuo Co., Ltd. and Shuoyitai Green Energy Co., Ltd. are individual insignificant joint ventures, and their financial reports have not been audited by CPAs; however, the management of the Consolidated Company believes that these individual insignificant financial reports of the joint venture companies will not have significant differences if audited by CPAs.

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Gigastorage Corporation

Schedule of Changes in Right-of-Use Assets and Changes in Accumulated Depreciation of Right-of-Use Assets

January 1 to December 31, 2021

Schedule 6

Units: NTD thousands, unless otherwise stated

Costs Balance as of January 1, 2021 Balance as of December 31, 2021 Accumulated depreciation Balance as of January 1, 2021 Depreciation Balance as of December 31, 2021 Net as of December 31, 2021	Houses and buildings $ 33,535 33,535 6,708 3,354 10,062 $ 23,473	Transportation equipment $ 1,518 1,518 605 523 1,128 $ 390		Total
				$ 35,053 35,053 7,313 3,877 11,190 $ 23,863

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Gigastorage Corporation

Schedule of Short-Term Borrowings

December 31, 2021

Schedule 7

Units: NTD thousands, unless otherwise stated

Name Guaranteed Line of Credit EnTie Bank Taishin Bank Kaoshung Bank Bank Sinopac Line of credit borrowing Taiwan Cooperative Bank Mega International Commercial Bank The Shanghai Commercial & Savings Bank		Borrowing Balance $ 300,000 100,000 80,000 70,000 29,482 87,775 70,000 $ 737,257	Contract Period October 26, 2021 – February 23, 2022 October 8, 2021 – January 7, 2022 October 20 2021 – January 20, 2022 December 1, 2021 – June 1, 2022 July 30, 2021 – June 28, 2022 September 30, 2021 – May 16, 2022 August 16, 2021 – April 14, 2022	Interest range 1.50% 1.53% 1.70% 1.57% 1.40% 1.40% 1.55%	Circumstance of pledge andguarantee
					The Company has provided 3,000 thousand shares of Giga Solar Materials Corporation’s stock as collateral. The Company has provided 2,000 thousand shares of Giga Solar Materials Corporation’s stock as collateral. The Company has provided 1,000 thousand shares of Giga Solar Materials Corporation’s stock as collateral. The Company has provided 3,000 thousand shares of Giga Solar Materials Corporation’s stock as collateral. No No No

Note: As of December 31, 2021, the Company has unused short-term loan lines of NT$467,988 thousand.

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Gigastorage Corporation

Schedule of Accounts Payable

December 31, 2021

Schedule 8

Unit: NTD thousands

Supplier name Not-related party Supplier A Supplier B Supplier C Supplier D Others (Note) Related party Ho Mi Specialty Materials Corporation		Amount
		$ 30,616 15,417 12,873 5,235 15,457 79,598 189 $ 79,787

Note: The balance of each item does not exceed 5% of the balance of the account.

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Gigastorage Corporation

Schedule of Long-Term Borrowings December 31, 2021

Schedule 9 Item Bank borrowings Secured loan from Shanghai Commercial Bank Secured loan from Land Bank of Taiwan Credit loan from Shanghai Commercial Bank Credit loan from Agricultural Bank of China Portion due within one year	Abstract Balance at the end of theyear Enrichment of operating capital $ 630,000 Enrichment of operating capital 200,000 Enrichment of operating capital 93,500 Enrichment of operating capital 28,000 ( 236,000) $ 715,500	Units: NTD thousands, unless otherwise stated Contract Period Interest range Circumstance of provision of mortgage or guarantee April 29, 2021 – April 29, 2026 1.58% The Company has provided land and buildings as collateral. July 6, 2020 – July 6, 2025 1.58% The Company has provided 6,000 thousand shares of Giga Solar Materials Corporation’s stock as collateral. July 26, 2019 – July 26, 2024 1.43% No January 25, 2021 – April 30, 2024 1.25% No	Units: NTD thousands, unless otherwise stated Contract Period Interest range Circumstance of provision of mortgage or guarantee April 29, 2021 – April 29, 2026 1.58% The Company has provided land and buildings as collateral. July 6, 2020 – July 6, 2025 1.58% The Company has provided 6,000 thousand shares of Giga Solar Materials Corporation’s stock as collateral. July 26, 2019 – July 26, 2024 1.43% No January 25, 2021 – April 30, 2024 1.25% No
			The Company has provided land and buildings as collateral. The Company has provided 6,000 thousand shares of Giga Solar Materials Corporation’s stock as collateral. No No

Units: NTD thousands, unless otherwise stated

Note: As of December 31, 2021, the Company had no unused long-term loan lines.

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Gigastorage Corporation

Schedule of Lease Liabilities

December 31, 2021

Schedule 10

Units: NTD thousands, unless otherwise stated

Name Buildings Transportation equipment Total Less: Lease liabilities – current Lease liabilities – non-current	Leaseperiod From 2019.01 to 2028.12 From 2019.09 to 2022.12	Discount rate 1.50% 1.68%		Amount
			(	$ 23,997 397 24,394 3,673) $ 20,721

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Gigastorage Corporation

Schedule of Operating Revenues

January 1 to December 31, 2021

Schedule 11

Unit: NTD thousands

Name Photovoltaic Ribbons Revenues from construction projects Others	Quantity 998 thousand units 5,792 units (Note) －		Amount
			$ 356,795 190,641 29,382 $ 576,818

Note: Of these units, 998 were still incomplete as of December 31, 2021, and revenue was recognized based on the cost of construction inputs.

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Gigastorage Corporation

Schedule of Operating Costs

January 1 to December 31, 2021

Schedule 12

Unit: NTD thousands

Item Cost of goods sold for self-produced products Direct raw materials Inventory at the beginning of the year Add: purchases during the period Less: raw materials at the end of the year Sales of raw materials Transfer to expenses Raw material consumption during the period Direct labors Manufacturing overheads Manufacturing costs Add: work in process at the beginning of the year Less: work in process at the end of the year Transfer to expenses Work in process sold Other operating costs Cost of finished goods Add: finished goods at the beginning of the year Less: finished goods at the end of the year Transfer to expenses Cost of production and sales Cost of goods sold for trading merchandise Inventory at the beginning of the year Add: purchases during the period Less: merchandise at the end of the year Other operating costs Cost of raw materials sold Cost of work in process sold Gain on reversal of loss on decline in value of inventories Construction costs Other operating costs Income from sales of scraps Others Cost of goods sold

Amount

$ 22,789 297,005 ( 20,521 ) ( 3,571 ) ( 4,399) 291,303 32,260 63,624 387,187 16,796 ( 11,713 ) 821 ( 5,802 ) ( 11,445) 375,844 23,417 ( 6,140 ) 744 393,865 - 16,370 - 410,235 3,571 5,802 ( 11,836 ) 149,061 11,445 ( 1,851 ) (15,742) $ 550,685

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Gigastorage Corporation

Schedule of Operating Expenses

January 1 to December 31, 2021

Schedule 13

Unit: NTD thousands

Item Salary expenses Freight expenses Insurance expenses Service expenses Depreciation expense Utilities expenses Test and experiment expenses Others (Note)		Marketing expenses $ 7,499 1,424 710 72 39 - - 2,102 $ 11,846	Administration expenses $ 45,490 1 5,369 8,561 22,413 6,944 - 26,746 $ 115,524	R&D expenses	R&D expenses
					$ 7,635 16 769 - 5,621 - 98 2,316 $ 16,455

Note: The balance of each item does not exceed 5% of the balance of the account.

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Gigastorage Corporation

Summary of Employee Benefits, Depreciation and Amortization Expense by Function Incurred During the Period January 1 to December 31, 2021 and 2020

Schedule 14

Unit: NTD thousands

Employee benefit expenses Salary expenses Employee insurance expenses Pension Remuneration for directors Share-based payments Other employee benefit expenses Depreciation expense Amortization expenses		2021		Total $ 99,265 9,780 4,661 1,550 - 4,292 $ 119,548 $ 47,925 $ 581		2020
	Those belonging to operating costs $ 38,641 4,223 1,608 - - 2,068 $ 46,540 $ 19,852 $ 36	Those belonging to operating expenses $ 60,624 5,557 3,053 1,550 - 2,224 $ 73,008 $ 28,073 $ 545			Those belonging to operating costs $ 30,025 2,910 934 - 34 1,637 $ 35,540 $ 16,945 $ -	Those belonging to operating expenses $ 68,032 6,400 3,609 1,680 493 2,806 $ 83,020 $ 34,559 $ 733		Total
								$ 98,057 9,310 4,543 1,680 527 4,443 $ 118,560 $ 51,504 $ 733

Note 1: The number of employees for the year and the previous year were 156 and 160, respectively, of which the number of directors who were not also employees was 6 and 7, respectively.

• Note 2: Companies whose shares are listed on TWSE or TPEx should disclose additional information on the following:

• (1) The average employee benefit expense for the current year was NT$787 thousand (“Total employee benefit expense for the current year - Total directors’ remuneration” / “Number of employees for the current year - Number of directors who did not also serve as employees”).

  • The average employee benefit expense for the previous year was NT$764 thousand (“Total employee benefit expense for the previous year - Total directors’ remuneration” / “Number of employees for the previous year - Number of directors who did not also serve as employees”).

• (2) The average employee salary expense for the current year was NT$662 thousand (“Total salary expense for the current year” / “Number of employees for the current year - Number of directors who did not also serve as employees”).

  • The average employee salary expense for the previous year was NT$641 thousand (“Total salary expense for the previous year” / “Number of employees for the previous year - Number of directors who did not also serve as employees”).

• (3) Change in average employee salary expense adjustment of 3.28% (“Average employee salary expense for the current year - Average employee salary expense for the previous year” / Average employee salary expense for the previous year)

• (4) The Company has no supervisor and therefore does not intend to disclose the salary, remuneration and business execution expenses of the supervisor.

(Continued on next page)

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(Continued from previous page)

• (5) The Company’s remuneration policy is to provide all employees with compensation and benefits that are at least in line with the average salary level compared to the relevant industry, in order to attract talented and stable employees to continue to work for the Company. Employee compensation includes monthly salaries, quarterly bonuses for operational performance, and employee profit sharing remuneration based on annual profitability. In accordance with the Company’s Articles of Association, the Company shall set aside 4% to 8% as employee profit sharing remuneration and no more than 3% as director remuneration if the Company makes a profit in the year. The amount and distribution method shall be proposed by the Remuneration Committee to the board meeting and approved by the board meeting for payment. Each employee’s allocated employee profit sharing remuneration is determined based on individual duties, contributions, and performance.

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