ICHIA - Audit Report / Information 2020

Stock Code: 2402

ICHIA TECHNOLOGIES INC.

Stand-alone Financial Statements and Independent Auditor’s Report 2020 and 2019

Address: No. 268, Huaya 2nd Rd., Guishan Dist., Taoyuan City TEL: (03)3973345

§TABLE OF CONTENTS§

						NOTES TO THE	NOTES TO THE
							FINANCIAL
		ITEM			PAGE	STATEMENTS
i.	Cover				1		-
ii.	Table of Contents				2		-
iii.	Independent Auditor’s Report				3`～`7		-
iv.	Stand-alone Balance Sheet				8		-
v.	Stand-alone Comprehensive Income				9`～`10		-
	Statement
vi.	Stand-alone Statement of Changes in				11		-
	Equity
vii.	Stand-alone Cash Flow Statement				12`～`13		-
viii.	Notes to the Stand-alone Financial
	Statements
	(i)	Company History			14		1
	(ii)	Date and Procedure for Approval of			14		2
		Financial Statements
	(iii)	Application of New and Revised			14`～`16		3
		Standards and Interpretations
	(iv)	Summary of Significant Accounting			16`～`30		4
		Policies
	(v)	Significant Accounting Judgments			30`～`30		5
		and Estimations, and Main Sources of
		Assumption Uncertainties
	(vi)	Summary of Significant Accounting			31`～`63		6–26
		Items
	(vii)	Related Party Transactions			64`～`66		27
	(viii)	Pledged Assets			66		28
	(ix)	Significant Contingent Liabilities and			66		29
		Unrecognized Contract
		Commitments
	(x)	Significant Disaster Loss			-		-
	(xi)	Significant Subsequent Events			-		-
	(xii)	Others			67`～`69		30, 31
	(xiii)	Additional Disclosure
		1. Information	on Significant		69`～`76		32
		Transactions
		2. Information	on Investees		69`～`76		32
		3. Information	on investment in	69`、`74`、`77			32
		Mainland China
		4. Information	on major		70`、`78		32
		shareholders

Independent Auditop’s Repopt

To the Board of Directors and Shareholders of ICHIA TECHNOLOGIES INC.:

Audit opinions

We have audited the accompanying stand-alone balance sheet of ICHIA TECHNOLOGIES INC. as of December 31, 2020 and 2019, and the related stand-alone comprehensive income statements, stand-alone statement of changes in shareholders’ equity, stand-alone cash flow statements, and notes to the stand-alone financial statements (including significant accounting policies) for the years then ended.

In our opinion, the stand-alone financial statements referred to above present fairly, in all material respects, the stand-alone financial position of ICHIA TECHNOLOGIES INC. as of December 31, 2020 and 2019, and its stand-alone financial performance and cash flows for the years ended December 31 2020 and 2019, in conformity with the requirements of regulations governing the preparation of financial statements by securities issuers.

Basis fop opinions

We conclude our audits in accordance with the Regulations Governing Auditing and Attestation of Financial Statements by Certified Public Accountants and the Generally Accepted Auditing Standards. Our responsibilities under those standards are further described in the responsibilities of auditors for the audit of the stand-alone financial statements. We are independent of ICHIA TECHNOLOGIES INC. 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. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Key audit matteps

Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the 2020 stand-alone financial statements of ICHIA TECHNOLOGIES INC. These matters were addressed in the content of our audit of the

stand-alone financial statements as a whole, and in forming our opinion thereon, and we do not provide separate opinions on those matters.

Key audit matters of the 2020 stand-alone financial statements of ICHIA TECHNOLOGIES INC. were as follows:

Authenticity of revenues recognized from sales to specific customers in triangular trade

ICHIA TECHNOLOGIES INC. manufactures a wide range of flexible printed circuit boards and mechanism integrated components (MVI) for the automotive and consumer electronics markets. Its sales patterns include domestic sales, direct export sales and triangular trade. Revenues from sales of triangular trade are recognized when the goods are delivered to a third-party forward designated by the customer and the risks and rewards are transferred. Since the aforementioned revenue recognition process involves manual work, which may result in improper revenue recognition, the authenticity of the sales revenues recognized from triangular trade for customers with more significant increase in sales revenue and growth are included as key audit matters in this year’s stand-alone financial statements.

We have also performed the following major audit procedures with respect to the above key audit matters:

Understand and test the effectiveness of the design and implementation of the internal control system related to revenue recognition.
Obtain samples of sales revenues from triangular trade with specific customers for the whole and check the related documents of trade year, triangular including

invoices and customs declarations with the recorded amounts to test the authenticity of the sales revenues recognized.

Examine whether there are any abnormalities in the collection after the credit period granted to specific customers.

Responsibilities of management and those in chapge with govepnance of the stand-alone financial statements

The management is responsible for the preparation and fair presentation of the stand-alone 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 stand-alone financial statements to be free from material misstatement whether due to fraud or error.

In preparing the stand-alone financial statements, the management is also responsible for assessing the ability of ICHIA TECHNOLOGIES INC. 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 ICHIA TECHNOLOGIES INC. or to cease operations, or has no other realistic alternative but to do so.

Those in charge of governance (including the Auditing Committee) are responsible for overseeing the reporting process of the financial statements of ICHIA TECHNOLOGIES INC.

Auditop’s pesponsibilities fop the audit of the stand-alone financial statements

Our objectives are to obtain reasonable assurance about whether the stand-alone 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, if they could reasonably be expected to influence the economic decisions of users taken on the basis of these stand-alone financial statements.

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:

Identify and assess the risks of material misstatement of the stand-alone financial statements, whether due to fraud or error; design, and perform countermeasures for assessed risks; and obtain evidence that is 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.
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 of an on the effectiveness of the internal control

purpose expressing opinion effective in ICHIA TECHNOLOGIES INC.

Evaluate the appropriateness of accounting policies and the reasonableness of accounting estimates and related disclosures made by management.
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
5 -

material uncertainty exists related to events or conditions that may cast significant doubt on ICHIA TECHNOLOGIES INC 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 stand-alone 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 ICHIA TECHNOLOGIES INC. to cease as a going concern.

5.

6.

Evaluate the overall presentation, structure, and content of the stand-alone financial statements, including related notes, and whether the stand-alone financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

Obtain sufficient and appropriate audit evidence regarding the financial information or the entities or business activities of ICHIA TECHNOLOGIES INC. to express an opinion on the stand-alone financial statements. We are responsible for the direction, supervision, and performance of the audit of ICHIA TECHNOLOGIES INC. We remain solely responsible for our audit opinion.

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings deficiencies in internal control that we our (including any significant identify during 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 relationships and other matters that may reasonably be thought to affect on our independence, and other matters (including related protective measures). From the matters communicated with those in charge of governance, we determine those matters that were of most significance in the audit of the 2020 stand-alone financial statements of ICHIA TECHNOLOGIES INC. 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.

Deloitte Touche Tohmatsu Limited CPA Hsieh Ming-Chung

CPA Liu Shu-Lin

Financial Supervisory Commission approval document Jin-Guan-Zheng-Shen-Zi No. 1000028068

Financial Supervisory Commission approval document Jin-Guan-Zheng-Shen-Zi No. 1050024633

March 16, 2021

ICHIA TECHNOLOGIES, INC.

STANDALONE BALANCE SHEETS

(In Thousands of New Taiwan Dollars)

ICHIA TECHNOLOGIES, INC. STANDALONE BALANCE SHEETS (In Thousands of New Taiwan Dollars)
			December 31,		2020							December 31,		2019
Assets			Amount				％					Amount				％

Current assets
Cash and cash equivalents（Notes 4 and 6）		$	1,141,628				13				$	659,431					8
Current financial assets at fair value through profit or loss
（Notes 4 and 7）			20,001					-				71,145					1
Accounts receivable, net（Notes 4 and 9）			1,501,163				17					1,399,879				17
Receivables from related parties（Notes 4、9 and 27）			1,707					-				392					-
Other receivables from related parties（Notes 27）			41,693					-				36,630					-
Current tax assets（Notes 23）			612					-				1,393					-
Current inventories（Notes 4 and 10）			92,094					1				84,737					1
Other current assets（Notes 15）			29,894					-				32,753					-
Total current assets			2,828,792				31					2,286,360				27
Non-current assets
Non-current financial assets at amortised cost（Notes 4 and
8）			126,599					1				2,067					-
Investments accounted for using equity method（Notes
4 and 11）			5,104,379				57					5,144,394				61
Property, plant and equipment（Notes 4 and 12）			852,685					9				916,464				11
Right-of-use assets（Notes 4 and 13）			3,205					-				-					-
Deferred tax assets（Notes 4 and 23）			59,883					1				77,980					1
Non-current Defined benefit assets, net（Notes 4 and 19）			19,789					-				19,866					-
Other non-current assets（Notes 15）			43,959					1				12,466					-
Total non-current assets			6,210,499				69					6,173,237				73
Total assets		$	9,039,291				100				$	8,459,597				100
Liabilities and equity
Current liabilities
Short-term loans（Notes 4 and 16）		$	981,960				11				$	400,000					5
Current financial liabilities at fair value through profit or
loss（Notes 4 and 7）			-					-				98					-
Accounts payable（Notes 17）			92,083					1				69,277					1
Payables to related parties（Notes 17 and 27）			1,518,933				17					1,122,051				13
Current contract liabilities（Notes 21）			2,747					-				1,190					-
Other payables（Notes 18）			48,693					-				49,513					-
Other payables to related parties（Notes 27）			378,784					4				490,834					6
Current lease liabilities（Notes 4 and 13）			1,266					-				-					-
Current portion of long-term debt payable（Notes 4 and 16）			167,191					2				165,066					2
Other current liabilities（Notes 18）			9,015					-				6,462					-
Total current liabilities			3,200,672				35					2,304,491				27
Non-current liabilities
long-term debt payable（Notes 4 and 16）			126,527					2				293,996					4
Deferred tax liabilities（Notes 4 and 23）			5,339					-				-					-
Non-current lease liabilities（Notes 4 and 13）			1,959					-				-					-
Others non-current liabilities（Notes 18）			1,310					-				2,809					-
Total non-current liabilities			135,135					2				296,805					4
Total liabilities			3,335,807				37					2,601,296				31
Equity（Notes 20）
Ordinary share			3,075,366				34					3,075,366				36
Capital surplus			2,086,827				23					2,163,711				26
Retained earnings
Legal reserve			573,593					6				550,914					6
Special reserve			335,706					4				137,012					2
Unappropriated retained earnings			88,717					1				267,004					3
Total retained earnings			998,016				11					954,930				11
Other equity	(		295,397	)		(		3	)	(		335,706	)		(		4	)
Treasury shares	(		161,328	)		(		2	)			-					-
Total equity			5,703,484				63					5,858,301				69
Total liabilities and equity		$	9,039,291				100				$	8,459,597				100

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

Director: Chuang Yi Investment Co., Ltd Managerial officer: Tseng Kung-Sheng Representative: Huang Chiu-Yung.

Accounting officer: Cheng Ching-Yi

ICHIA TECHNOLOGIES, INC.

STANDALONE STATEMENTS OF COMPREHENSIVE INCOME (In Thousands of New Taiwan Dollaps, Except Eapnings Pep Shape)

		2020				2019

		Amount		％		Amount		％

Operating revenue
Sales revenue (Notes 4,
21 and 27)		$ 3,681,833		101		$ 4,126,386		101
Sales returns	(	4,973)		-	(	6,220)		-
Sales discounts and
allowances	(	39,050 )	(	1 )	(	32,290 )	(	1 )
Net sales revenue		3,637,810		100		4,087,876		100
Operating costs (Notes 4、10,
22 and 27)		3,367,296		93		3,929,819		96
Gross profit from operations		270,514		7		158,057		4
Operating expenses (Notes 22
and 27)
Selling expenses		40,920		1		41,290		1
Administrative expenses		113,026		3		111,871		3
Research and
development
expenses		13,177		-		14,358		-
Expected credit
Impairment loss(gain)	(	12,398 )		-		6,068		-
Total operating
expenses		154,725		4		173,587		4
Net operating income (loss)		115,789		3	(	15,530 )		-
Non-operating income and
expenses (Notes 22 and 27)
Interest income		1,755		-		3,077		-
Other income		15,046		-		19,264		-
Other gains and losses,
net	(	33,633)	(	1)		182		-
Finance costs, net	(	10,623)		-	(	21,203)		-
Share of profits of
subsidiaries and
associates		67,076		2		243,618		6
Total non-operating income
and expenses		39,621		1		244,938		6

			2020					2019

			Amount		％			Amount		％

Income before income tax		$	155,410		4		$	229,408		6
Income tax expense（Notes 4
and 23）	(		35,220 )	(	1 )	(		2,616 )		-
Net income			120,190		3			226,792		6
Other comprehensive
income
Components of other
comprehensive income that
will not be reclassified to
profit or loss：
Gains (losses) on
remeasurements of defined
benefit plans（Notes 19）	(		220)		-	(		361)		-
Components of other
comprehensive income that
will be reclassified to profit
or loss：
Exchange differences arising
on translation of foreign
operations			40,309		1	(		198,694 )	(	5 )
Other comprehensive loss
for the year, net of income
tax			40,089		1	(		199,055 )	(	5 )
Total comprehensive income		$	160,279		4		$	27,737		1
Eearnings per share (Notes
24)
Basic earnings per share		$	0.40				$	0.74
Diluted earnings per share		$	0.39				$	0.74

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

Director: Chuang Yi Investment Co., Ltd Managerial officer: Tseng Kung-Sheng Accounting officer: Cheng Ching-Yi Representative: Huang Chiu-Yung.

ICHIA TECHNOLOGIES, INC.

STANDALONE STATEMENTS OF CHANGES IN EQUITY

(In Thousands of New Taiwan Dollars)

																						Others

																					Exchange
	Capital Stock - Shares (In Thousands)				Common Stock Amount				Capital Surplus			Legal reserve			Retained Earnings Special reserve Unappropriated retained earning						differences on translation of foreign financial statements			Treasury shares				Total equity
BALANCE, JANUARY 1, 2019			317,267			$ 3,172,676			$ 2,219,748				$	536,403		$ -		$	379,342		( $ 137,012		)	( $	186,825	)			$ 5,984,332
Appropriations of earnings
Legal capital reserve			-			-				-				14,511		-	(		14,511	)		-			-				-
Special capital reserve			-			-				-				-		137,012	(		137,012	)		-			-				-
Cash dividends to
shareholders			-			-				-				-		-	(		153,768	)		-			-		(		153,768	)
Net income in 2019			-			-				-				-		-			226,792			-			-				226,792
Other comprehensive income
(loss) in 2019, net of income tax			-			-				-				-		-	(		361	)	( 198,694		)		-		(		199,055	)
Total comprehensive income (loss)
in 2019			-			-				-				-		-			226,431		( 198,694		)		-				27,737
Retirement of treasury share	(		9,731	)	(	97,310 )		(		56,037	)			-		-	(		33,478	)		-			186,825				-
BALANCE, DECEMBER 31, 2019			307,536			3,075,366			2,163,711					550,914		137,012			267,004		( 335,706		)		-				5,858,301
Appropriations of earnings
Legal capital reserve			-			-				-				22,679		-	(		22,679	)		-			-				-
Special capital reserve			-			-				-				-		198,694	(		198,694	)		-			-				-
Cash dividends to
shareholders			-			-		(		76,884	)			-		-	(		76,884	)		-			-		(		153,768	)
Purchase of treasury shares			-			-				-				-		-			-			-		(	161,328	)	(		161,328	)
Net income in 2020			-			-				-				-		-			120,190			-			-				120,190
Other comprehensive income
(loss) in 2020, net of income tax			-			-				-				-		-	(		220	)		40,309			-				40,089
Total comprehensive income (loss)
in 2020			-			-				-				-		-			119,970			40,309			-				160,279
BALANCE, DECEMBER 31, 2020			307,536			$ 3,075,366			$ 2,086,827				$	573,593		$ 335,706		$	88,717		($ 295,397		)	($	161,328	)			$ 5,703,484
The accompanying notes are an integral part of		the parent company only financial					statements.
Director: Chuang Yi Investment Co., Ltd						Managerial officer:				Tseng Kung-Sheng									Accounting officer: Cheng Ching-Yi
Representative: Huang Chiu-Yung.

ICHIA TECHNOLOGIES, INC.

STANDALONE STATEMENTS OF CASH FLOWS (In Thousands of New Taiwan Dollars)

			2020		2019

Cash flows from operating activities
Profit (loss) before tax		$	155,410	$	229,408
Adjustments for:
Expected credit loss (gain)	(		12,398)		6,068
Depreciation expense			101,186		106,267
Net loss (gain) on financial assets
or liabilities at fair value
through profit or loss	(		688)	(	1,196)
Interest expense			10,623		21,203
Interest income	(		1,755)	(	3,077)
Impairment loss (Reversal of
impairment loss) on inventories	(		9,782)		1,155
Unrealized (realized) gross profit
on sales to subsidiaries and
associates	(		67,076)	(	243,618)
Loss (gain) on disposal of
property, plan and equipment	(		2,239)	(	2,307)
Changes in operating assets and
liabilities:
Notes and accounts receivable,
net	(		90,201)		465,131
Other receivables	(		5,063)	(	13,740)
Inventories			2,425	(	37,402)
Other current assets			2,910		3,267
Other operating assets	(		143)	(	195)
Contract liabilities			1,557		1,190
Accounts payable			419,688		257,737
Other payable			1,239	(	937)
Other current liabilities			2,553		51
Cash generated from operations			508,246		789,005
Interest received			1,779		3,374
Interest paid	(		12,682)	(	26,997)
Income taxes (paid) proceeds	(		11,003 )		381
Net cash generated by operating
activities			486,340		765,763

(Continued)

			2020			2019

Cash flows from investing activities
Acquisition of financial assets at
amortised cost	($		124,532)		$	-
Acquisition of financial assets at fair
value through profit or loss	(		170,000)	(		1,341,060)
Proceeds from disposal of financial
assets at fair value through profit or
loss			221,734			1,505,386
Acquisition of property, plant and
equipment	(		17,303)	(		10,701)
Proceeds from disposal of property,
plant and equipment			2,101			234
Increase in refundable deposits	(		1,531)			-
Decrease in refundable deposits			-			1,328
Increase in other non-current assets	(		1,192)	(		3,396)
Increase in prepayments for business
facilities	(		49,669)	(		7,419)
Dividends received from subsidiaries			147,400			-
Net cash used in investing
activities			7,008			144,372
Cash flows from financing activities
Increase in short-term loans			4,407,020			2,090,000
Decrease in short-term loans	(		3,825,060)	(		2,400,000)
Repayments of long-term debt	(		165,344)	(		340,809)
Decrease in guarantee deposits
received			-	(		3,400)
Increase in other payables to related
parties			-			22,554
Decrease in other payables to related
parties	(		112,050)			-
Payments of lease liabilities	(		621)			-
Cash dividends paid	(		153,768)	(		153,768)
Payments to acquire treasury shares	(		161,328 )			-
Net cash used in financing
activities	(		11,151 )	(		785,423	)
Net increase in cash and cash equivalents			482,197			124,712
Cash and cash equivalents at beginning of
period			659,431			534,719
Cash and cash equivalents at end of period		$	1,141,628		$	659,431

The accompanying notes are an integral part of the parent company only financial statements. Director: Chuang Yi Investment Co., Ltd Managerial officer: Tseng Kung-Sheng Accounting officer: Cheng Ching-Yi Representative: Huang Chiu-Yung.

ICHIA TECHNOLOGIES INC.

Notes to the stand-alone financial statements

January 1 to December 31, 2020 and 2019

(Amounts NTD thousand, unless otherwise stated)

i. Company History

ICHIA TECHNOLOGIES INC. (hereinafter referred to as the Company) was established in November 1989 to manufacture, process, and trade various components (conductive silicone elastomers, plastic keys, keyboard assemblies, input devices, and flexible printed circuit boards) and materials for electronics, home appliances, electronical engineering, electrical equipment, communications (telecommunications), and computers, as well as to import and export domestic and foreign products and to engage in the agency, distribution, tender and quotation business.

The Company’s shares have been listed on the Taiwan Stock Exchange since January 14, 2000.

The stand-alone financial statements are presented in New Taiwan dollars (NTD), which is the functional currency of the Company.

ii. Date and Procedure for Approval of Financial Statements

The stand-alone financial statements were approved by the Board of Directors on March 16, 2021.

iii. Application of New and Revised Standards and Interpretations

(i) First-time application of International Financial Reporting Standards (“IFRSs”), International Accounting Standards (“IAS”), Interpretations and referred to as
(“IFRICs”) Interpretations (“SICs”) (hereinafter “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:

(ii) IFRSs endorsed by the Financial Supervisory Commission (hereinafter referred to as “FSC”) applicable for 2021
- The new/amended/revised standards or Effective date of IASB inter retations ublication p p
Amendment to IFRS 4 “Extension of Provisional Effective from the date Exemption for Application of IFRS 9” of publication
Amendments to the IFRS 9, IAS 39, and IFRS 7, Effective for annual

The new/amended/revised standards or Effective date of IASB inter retations ublication p p IFRS 4 and IFRS 16 “Interest Rate Benchmark reporting periods Reform - Phase II” beginning after January 1, 2021 Amendment to IFRS 16 “Rent Reduction Effective for annual Associated with COVID-19 Pandemic” reporting periods beginning after June 1, 2020

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

The new/amended/revised standards or Effective date of IASB interpretations publication (Note 1) “Annual Improvements 2018–2020 Cycle” January 1, 2022 (Note 2) Amendment to IFRS 3 “Update the index of the January 1, 2022 (Note 3) conceptual framework” Amendment to IFRS 10 and IAS 28 “Sale or Undecided Contribution of Assets between an Investor and its Associate or Joint Venture” IFRS 17 “Insurance Contracts” January 1, 2023 Amendment to IFRS 17 January 1, 2023 Amendment to IAS 1 “Classification of January 1, 2023 Liabilities as Current or Noncurrent” Amendment to IAS 1 “Disclosure of Accounting January 1, 2023 (Note 6) Policies” Amendment to IAS 8 “Definition of Accounting January 1, 2022 (Note 7) Estimates” Amendment to IAS 16 “Property, Plant and January 1, 2022 (Note 4) Equipment: Price Before Reaching the Intended State of Use” Amendment to IAS 37 “Onerous Contracts - January 1, 2022 (Note 5) Cost of Performing Contracts”

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: The amendment to IFRS 9 applies to swaps or changes in the terms of financial liabilities that occur in annual reporting periods beginning after January 1, 2022; the amendment to IAS 41 “Agriculture” applies to fair value measurements in annual reporting periods beginning after January 1, 2022; and the amendment to IFRS 1 “First-time

Adoption of IFRSs” applies retrospectively to annual reporting periods beginning after January 1, 2022.

Note 3: This amendment applies to business mergers for which the acquisition date falls within the annual reporting period after January 1, 2022.
Note 4: 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 5: This amendment applies to contracts with unfulfilled obligations as of January 1, 2022.
Note 6: This amendment will be prospective application for annual reporting periods beginning after January 1, 2023.
Note 7: This amendment applies to changes in accounting estimates and changes in accounting policies that occur in annual reporting periods beginning after January 1, 2023.

The Company will continue to evaluate the effect of the amendment to other IFRSs 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.

iv. Summary of Significant Accounting Policies

(i) Compliance Statement
The stand-alone financial statements were prepared in accordance with
the Regulations Governing the Preparation of Financial Statements by Securities Issuers.
(ii) Basis of preparation
The stand-alone financial statements were prepared on the historical
cost basis, except for financial instruments measured at fair value and net defined benefit liabilities recognized at the present value of the defined benefit obligation less 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:

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

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.
Level 3 input value: the unobservable input value of asset or liability. The Company when preparing the stand-alone financial statements the investment in subsidiaries and associates the

processes using equity method. In order to make the same the current profit or loss, other income and in the stand-alone financial statements as

comprehensive equity 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 stand-alone basis and consolidated basis are adjusted for “investments accounted for using the equity method,” “profit or loss share of subsidiaries, affiliates and joint ventures accounted for using the equity method”, “other comprehensive income share of subsidiaries, affiliates and joint ventures accounted for using the equity method” and related equity items.

(iii) 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 and cash equivalents (excluding those restricted from being exchanged or settled more than 12 months after the balance sheet date).

Current liabilities include:

Liabilities held primarily for trading purposes;
Liabilities due for settlement within 12 months after the balance sheet date, and
Liabilities whose settlement deadline cannot be unconditionally deferred until at least 12 months after the balance sheet date.
Those that are not current assets or liabilities above are classified as
noncurrent assets or liabilities.
(iv)
Foreign currency

For the transactions conducted in a other than the business currency 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 the current profit or loss, except for the following.

When a monetary item receivable from or payable to a foreign operation, the settlement of which is neither planned nor likely to occur in the foreseeable future (and therefore forms part of the net investment in the foreign operation), the exchange difference is recognized initially in other comprehensive income and is reclassified from equity to profit or loss upon disposal of the net investment.

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.

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

Upon preparation of the stand-alone financial reports, the assets and liabilities of overseas operating institutions (including the subsidiaries and affiliates in the countries of business operation or those using currencies different from the Company’s) were converted to NTD 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.

If the of its entire interest in a Company disposes equity foreign operation, or disposes of part of its equity interest in a subsidiary that includes a foreign operation and loses control, or the retained equity interest after disposing of a joint agreement of a foreign operation or an affiliate is a financial asset and is accounted for as a financial instrument., all cumulative translation differences related to the foreign operation are reclassified to profit or loss.

If the partial disposal of a foreign operating subsidiary does not result in a loss of control, the accumulated exchange differences are included in equity transactions on a pro rata basis, but are not recognized in profit or loss. In the case of any other partial disposal of foreign operations, the cumulative exchange differences are reclassified to profit or loss in proportion to the disposal.

(v) Inventories

Inventories include raw materials, supplies, semi-finished goods, finished work in and in-transit. Inventories are valued in goods, process accordance with the lower of cost or net cash value. When comparing cost and net cash value, except for the homogeneous inventories, it is based on the itemized lower of cost or net cash value. Net realizable value refers to the estimated sale price under normal circumstances net of the estimated cost needed to complete the project and the estimated expenses needed to complete the sale. Inventories are valued at standard costs before book closing and adjusted upon book closing to approximate cost calculated on a weighted-average basis.

(vi)

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 holds in subsidiaries is rata to the Company recognized pro shareholding percentages.

When a in the interest in a change Company’s ownership 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 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 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 at the acquisition date over the acquisition cost is recorded as or loss for the When a that does not constitute a gain period. subsidiary business is acquired, the cost of acquisition is appropriately allocated to the identifiable assets acquired (including intangible assets) and the share of liabilities assumed, and no goodwill or current profit is generated.

The Company assesses impairment based on the cash-generating units as a whole in the financial statements and their recoverable compares amounts with their book values. If the amount of recoverable assets increases 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 in other income related to the are recognized comprehensive subsidiary 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 stand-alone financial statements. Gains or losses from upstream and side-stream transactions with subsidiaries are recognized in the stand-alone financial statements only to the extent that they are not related to the Company’s equity interest in the subsidiary.

(vii) Property, plant and equipment

Property, plant, and equipment shall be recognized at cost and subsequently measured at cost less accumulated depreciation and accumulated impairment.

Except for land owned by the Company, which is not depreciated, 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.

In removing property, plant, and equipment from book, the difference between the net proceeds of disposition and the book value shall be recognized as profit or loss for the period.

(viii) Impairment of property, plant and equipment, right-of-use assets, intangible assets and assets related to contract costs.

The Company assesses at each balance sheet date whether there is any indication that property, plant and equipment, right-of-use assets, intangible assets and assets related to contract costs may have been impaired If any indication of impairment exists, the recoverable amount of the asset is estimated. If the recoverable amount of an individual asset cannot be estimated, the Company estimates the recoverable amount of the cash-generating unit to which the asset belongs. Shared assets are allocated to the smallest group of cash-generating units on a reasonable and consistent basis.

The recoverable amount is the higher of the fair value less costs to sell and its value in use. If the recoverable amount of an asset or cash-generating unit is less than its carrying amount, the carrying amount of the asset or cash-generating unit is reduced to its recoverable amount, and the impairment loss is recognized in profit or loss.

When an impairment loss is subsequently reversed, the carrying amount of the asset or cash-generating unit is increased to the revised recoverable amount, provided that the increased carrying amount does not exceed the carrying amount (net of amortization or depreciation) that would have been determined 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.

(ix) Financial instruments

Financial assets and financial liabilities are recognized in the stand-alone balance sheets when the Company becomes a party to the contracts of such instruments.

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.

Financial assets

The customary 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 measured at fair value through profit or loss and financial assets at amortized cost.

A. Financial assets at fair value through profit or loss

Financial assets at fair value through profit or loss include financial assets that are mandatorily measured at fair value through profit or loss and those designated as at fair value through profit or loss. Financial assets mandatorily measured at fair value through profit or loss include investments in equity instruments not designated by the 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.

Financial assets at fair value or loss are through profit measured at fair value, which is determined as described in Note 26.

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 and cash equivalents, 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
or creation is calculated the
upon acquisition using 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.

Cash include time that are equivalents deposits highly liquid, readily convertible into fixed amount of cash with minimal risk of changes in value within 3 months from the acquisition date and are used to meet short-term cash commitments.

(2) Impairment of financial assets and contract assets

The Company assesses impairment losses on financial assets measured at amortized cost (including accounts receivable) based on expected credit loss on each balance sheet date.

An allowance for losses is recognized for accounts receivable based on the expected credit loss over the duration. Other financial assets shall be evaluated for increase of any significant risk from the day of initial recognition. If none is found, recognize for provision for anticipated credit loss along a period of 12 months. If it is, recognize for provision of anticipated credit risk within the lifetime of the assets.

Anticipated credit loss is the weighted average loss of credit on the basis of the weight of the risk of default. Anticipated credit loss in a period of 12 months means the expected loss of credit from the financial instruments within 12 months due to default. Anticipated credit loss with the lifetime of the financial instruments means the expected loss of credit from the financial instruments within the lifetime of these financial instruments.

All impairment losses on financial assets are accounted for by reducing the carrying amount 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 profit or loss.

Financial liabilities
(1) Subsequent measurement

All financial liabilities are measured at amortized cost using the effective interest method, except for the following.

Financial liabilities at fair value through profit or loss

Financial liabilities at fair value through profit or loss comprise financial liabilities held for trading and those designated as at fair value through profit or loss.

(2) Derecognition of financial liabilities

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

Derivatives

The derivatives entered into by the Company include forward exchange contracts, which are used to manage the Company’s exchange rate risk.

Derivatives are initially recognized at fair value when the derivative contracts are entered into and subsequently remeasured at fair value at the balance sheet date. Gains or losses arising from subsequent measurements are recognized directly in profit or loss, except for derivatives designated as effective hedging instruments, for which the point of recognition in profit or loss will depend on the nature of the hedging. When the fair value of the derivatives is positive, it is classified as a financial asset; when the fair value is negative, it is classified as a financial liability.

For derivatives embedded in asset master contracts within the scope of IFRS 9 “Financial Instruments”, the classification of financial assets shall be determined based on the overall contract. A derivative is considered to be a separate derivative if it is embedded in an asset master contract that is not within the scope of IFRS 9 (e.g., embedded in a master contract of a financial liability) and the embedded derivative meets the definition of a derivative, the risks and characteristics of which are not closely related to those of the master contract and the hybrid contract is not measured at fair value through profit or loss.

(x) Revenue recognition

The Company allocates the transaction price to each performance obligation after the performance obligation is identified in the customer contract and recognizes revenue when each performance obligation is satisfied.

Merchandise sales revenues

Merchandise sales revenues are derived from sales of electronic parts and components. The Company recognizes revenues and accounts receivable at the point when the products arrive at the customer’s designated location because the customer has the right to determine resale prices and use the products and has the primary responsibility for re-selling the products and bears the risk of obsolescence.

(xi)

When materials are supplied to subcontractors for processing, the control and the ownership of the processed products have not been transferred, so revenues are not recognized for the materials supplied. Lease

The Company assesses whether a contract is (or contains) a lease at the contract inception date.

The Company is the lessor

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

For an operating lease, the net lease payments of the lease incentives are recognized as income on a straight-line basis over the relevant lease The direct cost incurred in an periods. original acquiring operating lease is added to the carrying amount of the subject asset and recognized as an expense on a straight-line basis over the lease period. 2. The Company is the lessee

Except for the low-value leased assets entitled to exemption and lease payments for short-term leases recognized as expenses on a straight-line basis over the lease period, the right-of-use assets and lease liabilities of other leases are recognized starting from the lease commencement date.

The right-of-use assets are initially measured at cost (including the original measured amount of lease liability, the lease payment paid before the lease commencement date net of the lease incentives collected, the original direct costs, and the estimated cost of the recovered underlying assets), and then subsequently measured at the net cost of the accumulated depreciation and accumulated impairment

loss; also, the remeasured amount of the lease liability is adjusted. Right-of-use assets are expressed separately in the stand-alone balance sheet.

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

Lease liabilities are measured initially at the present value of lease payments (including fixed benefits). If the implied interest rate of the lease is readily determinable, the lease payments are discounted using that rate. If said lease implied interest rate is not easy to determine, the lease payment is discounted at the lessee’s incremental borrowing rate of interest.

Subsequently, the lease liability is measured according to the effective interest method and the amortized cost; also, the interest is amortized over the lease If a in the lease expense period. change period 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. Lease liabilities are expressed separately in the stand-alone balance sheet.

(xii) Borrowing costs

Borrowing costs directly attributable to acquiring, building or producing assets that meet the requirements are part of the costs of such assets until the completion of all necessary activities have achieved their intended use or sale condition.

The income of a temporary investment with a specific loan that has not yet met the essential requirement of capital expenditure is deducted from the loan cost that meets the essential requirement of capitalization.

In addition to the above, all other loan costs are recognized as profit and loss upon occurring.

(xiii) Government subsidies

Government subsidies are recognized only when it is reasonably certain that the Company will comply with the conditions attached to the government subsidies and that the subsidies will be received.

Government subsidies related to revenues 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 or losses incurred or to immediate financial expenses already provide support to the Company and have no future related costs.

(xiv) Employee benefits

Short-term employee benefits

Liabilities related to short-term employee benefits are measured at the non-discounted amount expected to be paid in exchange for employee services.

Post-employment benefits

Under the 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 the 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 are as benefit as (assets) recognized employee expense 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.

(xv) Income tax

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

Income tax for the period

Additional income tax on unappropriated earnings calculated in accordance with the Republic of China Income Tax Act is recognized in the year in which resolutions are made at the shareholder meeting.

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

2. 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 and joint ventures, 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, and 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 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 the to be recovered or on expected by Company liquidated the balance sheet date.

3. Current and deferred income 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, which are respectively recognized in other comprehensive income or directly included in the equity.

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

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

The Company has taken the economic impact of the COVID-19 pandemic into consideration for significant accounting estimates, and management will review the estimates and underlying assumptions on an ongoing basis. 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.

vi. Cash and cash equivalents

Cash and cash equivalents
	December 31,			December 31,
			2020			2019

Cash on hand and revolving
funds		$	35		$	35
Bank checking accounts and
demand deposits			1,056,144			629,416
Cash equivalents (investments
with an original maturity of
less than 3 months)
Bank time deposits			56,960			29,980
Bonds with repurchase
agreement			28,489			-
		$	1,141,628		$	659,431

The interest rate ranges for bank deposits as of the balance sheet date were as follows:

	as follows:
				December 31,			December 31,
					2020				2019

	Bank demand deposits			0.01%`～`0.38%			0.01%`～`0.38%
	Bank time deposits				0.3%				2%
	Bonds with repurchase
	agreement				0.4%				-
vii.	Financial instruments at fair		value	through profit or loss
				December 31,			December 31,
					2020				2019

	Financial assets-current
	Mandatorily measured	at	fair
	value through profit or	loss
	Non-derivative financial
	assets
	- Fund beneficiary
	certificates				$ 20,001			$	71,145
	Financial liabilities-current
	Held for trading
	Derivatives (not designated
	for hedging)
	- Forward foreign
	exchange contracts
	(1)				$	-		$	98

(i) Forward foreign exchange contracts not subject to hedge accounting and outstanding at the balance sheet date were as follows:

December 31, 2019

			Contract Amount
	Currency	Expiration Date	(Thousands)
Sale of forward	NTD to USD	December 30, 2019	NTD 150,235／USD 5,000
foreign		to January 30,
exchange		2020

The purpose of the Company’s forward exchange transactions is to hedge the risk of foreign currency assets and liabilities arising from exchange rate fluctuations.

viii. Financial assets at amortized cost

			December 31,	December 31,	December	December	31,
				2020		2019

Noncurrent
Pledge of time deposits (1)			$	2,127	$	2,067
Restricted	foreign	exchange
deposits with offshore funds
(ii)				124,472			-
			$	126,599	$	2,067

(i) As of December 31, 2020 and 2019, the market interest rate for time deposits with original maturity over one year was 0.84% and 1.09% per annum, respectively.
(ii) On August 26, 2020, the Company remitted $146,285 thousand (USD 5,000 thousand) in accordance with the “The Management, Utilization, and Taxation of Repatriated Offshore Funds Act” and deposited the net amount after tax in a dedicated account for foreign exchange deposits, as approved by National Taxation Bureau of the Northern Area, Ministry of Finance. The deposits in the dedicated account are subject to restrictions on the free use of the funds as prescribed by law, except for financial investments or real investments and part of the free use of the funds as prescribed by law, which can be withdrawn in three-year increments after five years from the date of deposit in the dedicated account.
(iii) For information on pledges of financial assets measured at amortized cost, see Note 28.

ix. Accounts receivable and overdue receivables

		December 31,	December 31,	December 31,	December 31,	December 31,	December 31,	December 31,
				2020			2019

Accounts receivable
Measured at amortized cost
Total carrying amount			$	1,501,605		$	1,400,088
Less: Allowance	for loss	(		442 )	(		209	)
			$	1,501,163		$	1,399,879
Accounts receivable	- related
party			$	1,707		$	392
Overdue receivables
Measured at amortized cost
Total carrying amount			$	54,768		$	78,535
Less: Allowance	for loss	(		54,768 )	(		78,535	)
			$	-		$	-

Accounts receivable

The average credit period of the Company’s merchandise sales is 150 days. In determining the collectibility of accounts receivable, the Company considers in the credit of the accounts receivable from the any changes quality original credit grant date to the balance sheet date.

To mitigate credit risk, the Company’s management has assigned a dedicated team to be responsible for credit limit determination, credit approval and other monitoring procedures to ensure that appropriate actions are taken to collect overdue accounts receivable. In addition, the Company reviews the recoverable amounts of accounts receivable on a case-by-case basis at the balance sheet date to ensure that appropriate impairment losses have been recorded for uncollectible accounts receivable. Accordingly, the Company’s management believes that the Company’s credit risk has been significantly reduced.

An allowance for losses is recognized for accounts receivable by the Company based on the expected credit loss over the duration. Expected credit losses for the duration are calculated using an allowance matrix, which takes into account the customer’s past default history and current financial condition, the economic situation of the industry, as well as GDP forecasts and industry outlook. Since the credit loss shows that there is no Company’s history significant difference in the loss patterns of different customer groups, therefore, instead of further differentiating the customer groups, the allowance matrix

loss rate based on the number due on only sets the expected credit of days past accounts receivable.

If there is evidence that the counterparty is in serious financial difficulty and the Company cannot reasonably expect to recover the amount, for example, if the counterparty is in liquidation or the debt is overdue for more than 365 days, the Company reclassifies the amount directly to overdue receivable and continues the collection activities, and the amount recovered is offset against the related overdue receivable.

The Company estimated the allowance for losses on accounts receivable based on the allowance matrix as follows:

December 31, 2020

December 31, 2020
			Overdue 1 to				Overdue 180
	Not overdue				180 days			to	365 days			Total
Expected credit loss rate		0%			0.40%				11.97%			-
Total carrying amount		$ 1,435,844		$	64,207			$	1,554			$ 1,501,605
Allowance for loss
(Expected credit
losses over the
duration)		-	(		256	)	(		186	)	(	442	)
Amortized cost		$ 1,435,844		$	63,951			$	1,368			$ 1,501,163
December 31, 2019
			Overdue 1 to				Overdue 180
	Not overdue				180 days			to	365 days			Total
Expected credit loss rate		0%			0.3%				0%			-
Total carrying amount		$ 1,328,505		$	71,583			$	-			$ 1,400,088
Allowance for loss
(Expected credit
losses over the
duration)		-	(		209	)			-		(	209	)
Amortized cost		$ 1,328,505		$	71,374			$	-			$ 1,399,879

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

receivable is as follows:
			2020			2019

Balance at the beginning of the
year		$	209		$	2,765
Add: Provision for impairment
loss for the year			484			10,327
Less: Reclassification for the
year	(		251 )	(		12,883 )
Balance at the end of the year		$	442		$	209

Information on the changes in the allowance for losses on overdue receivables is as follows:

		2020		2019

Balance at the beginning of the
year		$ 78,535		$ 75,309
Add: Reclassification for the
year		251		12,883
Less: Actual write off for the
year	(	11,136)	(	5,398)
Less: Reversal of
impairment loss for the
year	(	12,882 )	(	4,259 )
Balance at the end of the year		$ 54,768		$ 78,535
Inventories
	December 31,		December 31,
		2020		2019

Finished good		$ 60,679		$ 70,249
Semi-finished goods		552		196
Work in progress		6,347		1,819
Raw materials and supplies		9,426		9,377
In-transit		15,090		3,096
		$ 92,094		$ 84,737

x. Inventories

The nature of cost of goods sold is as follows:

		2020		2019

Cost of inventories sold		$ 3,364,898		$ 3,947,887
(Gain on reversal of) loss on
decline in value of
inventories (1)	(	9,782)		1,155
Others		12,180	(	19,223 )
		$ 3,367,296		$ 3,929,819

(i) The increase in net realizable value of inventories was due to the disposal of slow-moving inventories and the reversal of allowances and slow-moving inventories.

xi. Investments accounted for using the equity method Investments in subsidiaries

	December 31,	December 31,	December 31,	December 31,	December 31,	December 31,
			2020			2019

ICHIA	USA Inc.	$	37,283		$	36,800
ICHIA	HOLDINGS (B.V.I) Co., Ltd.		5,067,096			5,107,594
		$	5,104,379		$	5,144,394
	Percentage of ownership interest and
			votingrights
	December 31,			December 31,
	Subsidiaryname		2020			2019
ICHIA	USA Inc.		100%			100%
ICHIA	HOLDINGS (B.V.I) Co., Ltd.		100%			100%

The Company invested in ICHIA INTERNATIONAL TRADING LTD.(BVI) (hereinafter referred to as ICHIA INTERNATIONAL) through BVI-ICHIA, and the Company disposed of ICHIA INTERNATIONAL on August 10, 2020. Please refer to Note 26 to the Consolidated Financial Statements for the disclosure of the Company’s disposal of subsidiaries.

Please refer to Note 32 for the details of the Company’s indirect investment in subsidiaries.

The shares of profit or loss and other comprehensive income of the subsidiaries under the equity method for the years ended December 31, 2020 and 2019 were recognized based on the audited financial statements of each subsidiary for the same period.

xii. Property, plant and equipment

Self-use

							Machinery	Machinery
			Self-owned					and		Other
				land	Buildings		equipment		equipment			Total
Cost
Balance as of January 1, 2020			$	516,225	$	534,618	$	539,305	$	235,518	$	1,825,666
Addition				-		-		9,853		7,450		17,303
Disposal				-	(	95 )	(	23,336 )	(	22,152 )	(	45,583)
Reclassification				-		890		16,968		2,966		20,824
Balance as of December 31, 2020			$	516,225	$	535,413	$	542,790	$	223,782	$	1,818,210
Accumulated		depreciation and
	impairment
Balance as of January 1, 2020			$	-	$	344,244	$	368,059	$	196,899	$	909,202
Disposal				-	(	95 )	(	23,336 )	(	20,791 )	(	44,222 )
Depreciation expense				-		19,264		64,167		17,114		100,545
Balance as of December 31, 2020			$	-	$	363,413	$	408,890	$	193,222	$	965,525
Net as of December 31, 2020			$	516,225	$	172,000	$	133,900	$	30,560	$	852,685

(Continued on next page)

(Continued from previous page)

						Machinery	Machinery
		Self-owned					and		Other
			land	Buildings		equipment		equipment			Total
Cost
Balance as of January 1, 2019		$	288,562	$	422,881	$	521,456	$	242,427	$	1,475,326
Addition			-		550		7,128		3,023		10,701
Disposal			-		-		-	(	11,698 )	(	11,698 )
Assets from operating leases			227,663		110,241		-		-		337,904
Reclassification			-		946		10,721		1,766		13,433
Balance as of December 31,
	2019	$	516,225	$	534,618	$	539,305	$	235,518	$	1,825,666
Accumulated depreciation
	and impairment
Balance as of January 1, 2019		$	-	$	300,313	$	303,929	$	185,459	$	789,701
Disposal			-		-		-	(	11,454 )	(	11,454 )
Assets from operating leases			-		27,680		-		-		27,680
Depreciation expense			-		16,251		64,130		22,894		103,275
Balance as of December 31,
	2019	$	-	$	344,244	$	368,059	$	196,899	$	909,202
Net as of December 31, 2019		$	516,225	$	190,374	$	171,246	$	38,619	$	916,464

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

Buildings
Main structures	51 years
Air conditioning system	26 years
Improvement to main structures	4 to 51 years
Machinery and equipment	13 years
Other equipment	16 years

For the amount of self-use and used as property, plant equipment collaterals for loans, please refer to Note 28.

xiii. Lease Agreement

(i) Right-of-use assets.

Right-of-use assets.
		December 31,			December		31,
				2020		2019

Carrying amount of right-of-use
assets
Transportation equipment			$	3,205		$	-
				2020		2019

Addition of right-of-use assets.			$	3,846		$	-
Depreciation expense	of
right-of-use assets
Transportation equipment			$	641		$	-

Other than the above additions and depreciation expense recognized, there were no significant subleases or impairments of the Company’s right-of-use assets in 2020 and 2019.

(ii) Lease liabilities

Lease liabilities
	December 31,			December		31,
			2020		2019

Carry amount of lease
liabilities
Current		$	1,266		$	-
Noncurrent		$	1,959		$	-

The discount rate range for lease liabilities is as follows:	The discount rate range for lease liabilities is as follows:	The discount rate range for lease liabilities is as follows:
	December 31,	December 31,
	2020	2019

Transportation equipment	2.5%	-

(iii) Information on other leases

Please refer to Note 14 for the Company’s agreements to lease investment properties under operating leases.

			2020			2019

Short-term lease expenses		$	21		$	97
Low-value asset lease
expenses		$	183		$	144
Total cash (outflow) from
leases	($		870 )	($		241	)

The Company has elected to apply the recognition exemption to leases of buildings, structures and office equipment that qualify as short-term leases and certain other equipment that qualify as low-value asset leases and does not recognize the related right-of-use assets and lease liabilities for these leases.

Short-term lease expense for 2019 also included other leases with lease periods ending before December 31, 2019 and for which the recognition exemption was elected. The amount of short-term lease commitments for which the recognition exemption was applicable (including short-term lease commitments commencing after the balance sheet date) was $463 thousand and $396 thousand as of December 31, 2020 and 2019, respectively.

The Company has no commitments to enter into leases for periods beginning after the balance sheet date.

xiv. Investment Properties

	Completed	Completed	Completed
	investment
	properties
Cost
Balance as of January 1, 2019		$	337,904
Transferred to property, plant and equipment	(		337,904 )
Balance as of December 31, 2019		$	-
Accumulated depreciation and impairment
Balance as of January 1, 2019	($		24,688)
Depreciation expense	(		2,992)
Transferred to property, plant and equipment			27,680
Balance as of December 31, 2019		$	-
Net as of December 31, 2019		$	-

Depreciation expense of investment properties is provided on a straight-line basis over the following useful life: Main structures 51 years Elevator equipment 16 years Air conditioning system 10 years Improvement to main structures 4 to 49 years

All of the Company’s investment properties are owned by the Company.

xv. Other assets

		December 31,	December 31,	December 31,
		2020		2019

Current
Prepaid	expenses	$ 14,075	$	14,583
Tax overpaid retained		9,670		12,448
Other receivables		2,267		2,073
Temporary payments		28		172
Others		3,854		3,477
		$ 29,894	$	32,753
Noncurrent
Prepaid	equipment (Note 29)	$ 29,670	$	900
Refundable deposits		7,977		6,446
Long-term prepaid expenses		6,312		5,120
		$ 43,959	$	12,466

xvi.	Borrowings
(i)	Short-term borrowings
		December 31,		December 31,
			2020		2019

	Unsecured borrowings
	Credit facility borrowings		$ 981,960		$ 400,000

As of December 31, 2020 and 2019, the interest rates on bank borrowings for operating turnover ranged from 0.90% to 1.036% and 0.98% to 1.10%, respectively.

	respectively.	respectively.
(ii)	Long-term borrowings
				December 31,		December 31,
					2020		2019

	Secured borrowings		(Note
	28)
	Bank borrowings				$ 293,718		$ 459,062
	Less: Classified	as	due
	within 1 year			(	167,191 )	(	165,066 )
	Long-term borrowings				$ 126,527		$ 293,996

The bank borrowings were secured by pledges of the Company’s self-owned land and buildings (see Note 28). The maturity date of the borrowings is September 11, 2022, and the effective interest rates are 1.03% and 1.28% per annum for the years ended December 31, 2020 and 2019, respectively.

The Company’s borrowings consist of:

	Maturity		Effective	December 31,	December 31,	December 31,	December 31,	December 31,	December 31,	December 31,	December 31,
	date	Major terms and conditions	interest rate			2020				2019
Floating rate	2022-09-11	Chang Hwa Commercial Bank, Ltd.
borrowings:
		The borrowing amount is	1.03%		$	293,718			$	459,062
		$500,000 thousand with
		interest rates ranging from
		1.0% to 1.5% to finance the
		medium-term operating
		turnover. The borrowing
		period is from September 11,
		2017 to September 11, 2022,
		with monthly interest
		deductions. Repayment is
		made on the 11th day of each
		month, starting from October
		11, 2019, in 36 equal
		installments of principal and
		interest.
		Less: Classified as due within 1 year		(		167,191	)	(		165,066	)
		Long-term borrowings			$	126,527			$	293,996

xvii. Accounts payable

Accounts payable
	December 31,			December 31,
			2020			2019

Accounts payable
Non-related party - Occurred
due to business		$	92,083		$	69,277
Related party - Occurred due
to business		$	1,518,933		$	1,122,051

The average credit period for the purchase of goods is one to three months, and no interest is accrued on the accounts The has a payable. Company financial risk management policy to ensure that all payables are repaid within the pre-agreed credit periods.

xviii. Other liabilities

			December 31,	December 31,	December 31,	December 31,
				2020		2019

Current
Other payables
Salaries	and	bonuses
payable			$	22,735	$	26,637
Leave payables				10,549		9,930
Interest	payables			582		526
Other expense payables				14,827		12,420
			$	48,693	$	49,513
Other liabilities
Temporary receipts			$	8,763	$	5,737
Others				252		725
			$	9,015	$	6,462
Noncurrent
Other liabilities
Deferred credits			$	1,310	$	2,809

xix. Post-employment benefit plans

(i) Defined contribution plan

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

(ii) Defined benefit plan

The pension system of the Company under the “Labor Standards Act” is a government-administered defined benefit pension plan. Pension payment is calculated in accordance with the of service and the years average salary six months prior to the authorized retirement date. The Company appropriate 2% of employees’ monthly salaries as pension funds, which is deposited by the Supervisory Committee of Labor Retirement Reserve in the name of the Committee into a dedicated account at the Bank of Taiwan. Before the end of the year, if the balance in the dedicated 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 in one sum the end of March of the The up lump by following year. management of the dedicated account is entrusted to the Bureau of Labor Funds, Ministry of Labor. The Company has no right to influence the investment management strategy.

The amounts included in the stand-alone balance sheets for defined benefit plan are shown below:

			December 31,	December 31,	December 31,	December 31,
				2020		2019

Present	value of	defined
benefit	obligations			$ 25,558		$ 23,716
Fair value of plan assets			(	45,347 )	(	43,582 )
Net defined benefit assets			($ 19,789 )		($ 19,866 )

Changes in net defined benefit assets are as follows:

	Present value	Present value	Present value
		of defined
			benefit	Fair	value of		Net	defined
	obligations			plan assets			benefit assets
January 1, 2019		$	21,842	($	41,874	)	($	20,032	)
Service costs
Service costs for the
period			55		-			55
Interest expenses
(incomes)			273	(	523	)	(	250	)
Recognized in profit or loss			328	(	523	)	(	195	)
Remeasurement
Return on plan assets
(other than amounts
included in net interest)			-	(	1,389)		(	1,389)
Actuarial losses
- Change in financial
assumptions			565		-			565
- Adjustments through
experience			1,185		-			1,185
Recognized in other
comprehensive income			1,750	(	1,389	)		361
Benefit payments	(		204 )		204			-
December 31, 2019			23,716	(	43,582	)	(	19,866	)
Service costs
Service costs for the
period			56		-			56
Interest expenses
(incomes)			237	(	436	)	(	199	)
Recognized in profit or loss			293	(	436	)	(	143	)
Remeasurement
Return on plan assets
(other than amounts
included in net interest)			-	(	1,329)		(	1,329)
Actuarial losses
- Change in financial
assumptions			450		-			450
- Adjustments through
experience			1,099		-			1,099
Recognized in other
comprehensive income			1,549	(	1,329	)		220
Benefit payments			-		-			-
December 31, 2020		$	25,558	($	45,347	)	($	19,789	)

The amounts in or loss for defined benefit are recognized profit plan summarized by function as follows:

		2020		2019

Operating costs	($	15)	($	22)
Promotional expenses	(	4)	(	6)
Administrative expenses	(	110)	(	148)
R&D expenses	(	14 )	(	19 )
	($	143 )	($	195 )

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

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 Consolidated Company’s plan assets is based on the income at a rate no less than the local bank’s 2-year time deposit rate.
Interest rate risk: A decrease in interest rates on government/corporate

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.

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.

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:

	December 31,	December 31,
	2020	2019

Discount rate	0.80%	1.00%
Expected rate of salary	3.00%	3.00%
increase

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:

is as follows:
	December 31,			December 31,
			2020			2019

Discount rate
Increase by 0.25%	($		556 )	($		560	)
Decrease by 0.25%		$	577		$	582
Expected rate of salary
increase
Increase by 1%		$	2,385		$	2,415
Decrease by 1%	($		2,097 )	($		2,113	)

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.

		December 31,	December 31,	December 31,	December 31,
			2020		2019

	Average duration to
	maturity of defined
	benefit obligations		13.7 years		14.6 years
xx.	Equity
(i)	Common stock
		December 31,		December 31,
			2020		2019

	Authorized number of
	shares (thousand shares)		600,000		420,000
	Authorized capital stock		$ 6,000,000		$ 4,200,000
	Number of shares issued
	and fully paid (thousand
	shares)		307,536		307,536
	Issued capital stock		$ 3,075,366		$ 3,075,366

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

30,000 thousand shares of the authorized capital stock were reserved for the issuance of convertible bonds and employee restricted stock options.

On March 25, 2019, the Board of Directors resolved to retire 9,731 thousand shares of treasury stock and the change registration was completed on April 10, 2019.

On March 18, 2020, the Company’s Board of Directors resolved to increase the authorized capital to $6,000,000 thousand, and on June 12, 2010, the resolution was approved by the regular shareholders’ meeting. (ii) Capital surplus

Capital surplus
	December 31,			December 31,
			2020			2019

For loss make-up, payment
in cash or capitalization as
equity (1)
Stock issue premium		$	411,281		$	488,165
Corporate bond conversion
premium			1,238,407			1,238,407
Gain on disposal of assets			167			167
Consolidation excess			42,695			42,695
Not for any purpose
Employee stock purchase
plan			149,021			149,021
Employee restricted stock
option			120,365			120,365
Convertible bond stock
options			124,891			124,891
		$	2,086,827		$	2,163,711

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.
(iii) Retained Earnings and Dividend Policy

In accordance with the earnings distribution policy of the Company’s Articles of Incorporation, if there are any net earnings as indicated in the final accounts, the Company shall pay tax and make up for the accumulated losses, and then set aside 10% as legal reserve, and the rest shall be set aside as special reserve or offset by reversal of special reserve as required by law; if there are still remaining earnings, the Board of Directors shall prepare a proposal for the distribution of the remainder together with the accumulated unappropriated earnings at the beginning of the period, and submit it to the shareholder meeting for resolution on the distribution of dividends to shareholders. The Company’s policy on the distribution of employees’ and directors’ remuneration as stipulated in the Company’s Articles of

Incorporation is described in Note 22(7) Employees’ Remuneration and Directors’ Remuneration.

Based on the resolution of a majority of directors at the meeting attended by two-thirds of the total number of directors, the Company shall distribute the dividend and bonus, in whole or in part, in the form of cash and report to the shareholders’ meeting.

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

The has and reversed the reserve in Company provided special accordance with the letters Jin-Guan-Zheng-Fa-Zi Nos. 1010012865, 1010047490 and 1030006415 and the provisions of the “Questions and Answers on the Application of International Financial Reporting Standards (IFRSs) to the Provision of Special Reserve”.

At the regular shareholders’ meetings held on June 12, 2020 and June 14, 2019, the Company resolved to distribute the earnings for 2019 and 2018 as follows:

follows:
		2019		2018

Legal reserve	$	22,679	$	14,511
Special reserve	$	198,694	$	137,012
Cash dividends	$	153,768	$	153,768
Cash dividends per share	$	0.5	$	0.5

The Board of Directors proposed the following earnings distribution for 2020 on March 16, 2021:

2020 on March 16, 2021:
	Earnings
	distribution
	proposal
Legal reserve	$ 11,997
Special reserve	($ 40,309	)
Cash dividends	$ 148,768
Cash dividends per share	$ 0.5

The earnings proposal for 2020 is pending resolution at the shareholders’ meeting scheduled for June 21, 2021.

(iv) Treasury stock

Treasury stock
						Shares of
						parent
		Transfer of			Repurchase	company
			shares to		for	held by
			employees		retirement	subsidiaries		Total
			(thousand		(thousand	(thousand		(thousand
Reason for recovery			shares)		shares)	shares)		shares)
Number of shares as
of January 1, 2020			-		-	-		-
Increase in the year			10,000		-	-		10,000
Number of shares as
of December 31,
2020			10,000		-	-		10,000
Number of shares as
of January 1, 2019			9,731		-	-		9,731
Decrease in the year	(		9,731	)	-	-	(	9,731	)
Number of shares as
of December 31,
2019			-		-	-		-

On July 27, 2020, the Board of Directors resolved to repurchase 10,000 thousand shares of the Company’s common stock to employees for the period from July 28, 2020 to September 25, 2020 at a price range of $12 to $18 in order to motivate employees and enhance their cohesiveness to the Company. As of the end of the repurchase period (September 25, 2020), the Company had repurchased 10,000 thousand shares for a total of $161,328 thousand.

The repurchased shares shall be transferred to employees within 5 years in accordance with the Securities and Exchange Act. If the shares are not transferred after the expiration date, they shall be considered as unissued shares of the Company and shall be registered for change.

Treasury stock held by the Company cannot be pledged under the Securities and Exchange Act, and is not entitled to dividend distribution or voting rights.

Revenues
				2020				2019

Customer	contract revenues
Merchandise sales revenues			$	3,637,810			$	4,087,876
Lease incomes
Investment Properties (Note 14)					-			7,872
			$	3,637,810			$	4,095,748
Contract balance
		December			31,	December 31,
				2020				2019

Accounts receivable (including
related party) (Note 9)			$	1,502,870			$	1,400,271
Contract liabilities - current
Merchandise sales			$	2,747			$	1,190

The change in contract liabilities mainly arises from the difference between the point at which performance obligations are satisfied and the point at which customers pay.

xxii.

Net profits before tax

(i) Interest incomes

(i)	Interest incomes
			2020		2019

	Bank deposits	$	1,390	$	1,195
	Bonds with repurchase
	agreement		13		-
	Financial assets at amortized cost		345		1,876
	Imputed interest on deposits		7		6
		$	1,755	$	3,077
(ii)	Other incomes
			2020		2019

	Lease incomes
	Rental incomes from
	operating lease
	- Investment properties	$	-	$	7,872
	- Rental incomes from
	dormitory and
	parking lot		835		595
			835		8,467
	Government subsidy incomes		5,017		-
	Management service incomes		15		9,014
	Compensation incomes		6,036		-
	Others		3,143		1,783
		$	15,046	$	19,264

(iii)	Other incomes (expenses)
				2020			2019

	Gain (loss) on financial
	assets (Note 7)
	Financial assets
	mandatorily
	measured at fair
	value through profit
	or loss
	- Realized		$	589		$	129
	- Unrealized			1			1,165
				590			1,294
	Financial liabilities held
	for trading
	- Realized			98			-
	- Unrealized			-	(		98 )
				98	(		98 )
				688			1,196
	Net foreign currency
	exchange loss	(		36,561)	(		2,306)
	Gain on disposal of
	property, plant and
	equipment			2,239			2,307
	Others			1	(		1,015 )
		($		33,633 )		$	182
(iv)	Financial costs
				2020			2019

	Interest on borrowings from
	related parties		$	-		$	7,088
	Interest on bank borrowings			10,578			14,115
	Interest on lease liabilities			45			-
			$	10,623		$	21,203
	No interest capitalization in 2020 and 2019.
(v)	Depreciation
				2020			2019

	Depreciation expense is
	summarized by function
	Operating costs		$	89,635		$	91,291
	Operating expenses			11,551			14,976
			$	101,186		$	106,267

(vi) Employee benefit expenses

Employee benefit expenses
			2020			2019

Post-employment benefits
Defined contribution
plans		$	5,312		$	4,833
Defined benefit plan
(Note 19)	(		143 )	(		195 )
			5,169			4,638
Other employee benefits			135,328			119,791
Total employee benefit
expenses		$	140,497		$	124,429
Summarized by function
Operating costs		$	45,749		$	31,013
Operating expenses			94,748			93,416
		$	140,497		$	124,429

(vii) Employees’ remuneration and directors’ remuneration.

In accordance with the Company’s Articles of Incorporation, the Company appropriates no less than 1% and no more than 3% of the profits before tax to employees’ and directors’ remuneration, respectively, for the before the distribution of and directors’ remuneration. The year employees’ estimated remuneration to employees and directors for the years ended 2020 and 2019 were resolved by the Board of Directors on March 16, 2021 and March 18, 2019, respectively, as follow:

Estimated percentage

	2020	2019

Remuneration to employees	4.18%	3.30%
Remuneration to directors	2.94%	2.06%
Amount

Amount
		2020		2019

		Cash		Cash

Remuneration to employees	$	7,000	$	8,000
Remuneration to directors		4,919		5,000

If there is a change in the amount of the stand-alone 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.

There was no difference between the actual amount of employees’ and directors’ remuneration paid for 2019 and 2018 and the amount recognized in the stand-alone financial statements in 2019 and 2018.

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

(viii) Foreign currency exchange gains (losses)

		2020			2019

Total foreign currency
exchange gains		$ 89,822		$	98,787
Total foreign currency
exchange (losses)	(	126,383 )	(		101,093	)
Net gains (losses)	($ 36,561 )		($		2,306	)

xxiii. Income tax

(i) Income tax recognized in profit or loss

The major components of income tax expense are as follows:

			2020		2019

Income tax for the period
Prior year adjustment	($		8)	$	-
Repatriation of offshore
funds			11,792		-
			11,784		-
Deferred tax
Occurred in the year			26,835		373
Prior year adjustment	(		3,399 )		2,243
			23,436		2,616
Income tax expenses recognized
in profit or loss		$	35,220	$	2,616

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

follows:
		2020		2019

Net profits before tax		$ 155,410	$	229,408
Income tax expenses at
statutory tax rate on net
profits before tax		$ 31,082	$	45,882
Non-deductible expenses for
tax purposes		6,679		3,781
Tax-exempt incomes	(	14,465)	(	49,290)
Unrecognized loss
carryforwards		3,539		-
Adjustments to prior years’
deferred tax expenses
recorded in the year	(	3,399)		2,243
Adjustments to prior years’
current income tax
benefits recorded in the
period	(	8)		-
Repatriation of offshore
funds		11,792		-
Income tax expenses
recognized in profit or
loss		$ 35,220	$	2,616

In July 2019, the President of Taiwan announced the promulgation of “The Management, Utilization, and Taxation of Repatriated Offshore Funds Act”, with new rules that if a profit-seeking enterprise applies for repatriation of funds within the approved period from August 15, 2019 to August 14, 2020, the tax rate applicable to the repatriation of funds is reduced from 20% to 8% and the repatriated funds should be deposited into a dedicated account, and the receiving bank will deduct the tax when the funds are deposited into the dedicated account. On August 26, 2020, the Company was approved to remit $147,400 thousand (USD 5,000 thousand) by the National Taxation Bureau, Ministry of Finance, and the tax amount was $11,792 thousand based on the applicable tax rate of 8%.

(ii) Current income tax assets

		December 31,	December 31,	December 31,	December 31,
			2020		2019

	Current income tax assets
	Tax refund receivable	$	612	$	1,393
(iii)	Deferred tax assets and liabilities
	Changes in deferred income tax assets and liabilities are as follows:
	2020

2020
	Balance at the								Balance at the
	beginning of			Recognized				in	end of the
		theyear		profit or loss							year
Deferred tax assets

Temporary difference
Leave payables		$	1,985		$	124				$	2,109
Defined benefit pension
plan			962	(		29	)				933
Unrealized gain on
decline in value of
inventories			3,618	(		1,956)					1,662
Allowance for loss			12,791	(		4,865)					7,926
Impairment of property,
plant and equipment			1,216			-					1,216
Unrealized exchange
gains	(		238 )			238					-
Others			563	(		300	)				263
			20,897	(		6,788)					14,109
Loss carryforwards			57,083	(		11,309 )					45,774
		$	77,980	(	$	18,097 )				$	59,883
Deferred tax liabilities

Temporary difference
Unrealized exchange
gains		$	-	(	$	5,339 )			($		5,339	)

2019

2019
	Balance at the								Balance at the
	beginning of			Recognized				in	end of the
		theyear		profit		or loss					year
Deferred tax assets

Temporary difference
Leave payables		$	1,918		$	67				$	1,985
Defined benefit pension
plan			1,001	(		39	)				962
Unrealized loss on
decline in value of
inventories			3,387			231					3,618
Allowance for loss			11,716			1,075					12,791
Impairment of property,
plant and equipment			1,216			-					1,216
Others			1,025	(		462	)				563
Unrealized exchange
gains			2,863	(		3,101 )			(		238	)
			23,126	(		2,229)					20,897
Loss carryforwards			57,470	(		387	)				57,083
		$	80,596	(	$	2,616 )				$	77,980

(iv) Unused loss carryforwards for deferred tax assets not recognized in the stand-alone balance sheets

stand-alone balance sheets
	December 31,		December		31,
		2020		2019

Loss carryforwards
Expire in 2029		$ 17,693		$	-

(v) Information on unused loss carryforwards

Information on loss carryforwards for the year ended December 31, 2020 is as follows:

ws:	ws:
Notyet used balance		Finalyear of use
	$ 149,134	2027
	71,149	2028
	26,278	2029
	$ 246,561

(vi) Income tax assessment

The Company’s income tax returns have been assessed by the tax authorities up to 2018, but not yet for 2019.

xxiv. Earnings per share

Weighted-average number of shares of common stock used to calculate earnings per share is as follows:

Net profits for the year

Net profits for the year
	2020	2019

Net profits used to calculate
basic earnings per share	$ 120,190	$ 226,792
Net profits used to calculate
diluted earnings per share	$ 120,190	$ 226,792
Number of shares Unit: Thousand shares
	2020	2019

Weighted-average number of
shares of common stock
used to calculate basic
earnings per share	304,024	307,536
Impact of potential common
stock with dilutive effect:
Remuneration to
employees	540	731
Weighted-average number of
shares of common stock
used to calculate diluted
earnings per share	304,564	308,267

If the Company may choose to have the employee compensation distributed via a stock or cash dividend, the calculation of the diluted earnings share assumes that the bonus to is with a stock dividend per employees distributed, with the weighted average number of shares outstanding included when the potential common stock has a diluted effect. The diluting effect of these potential common shares also continues to be considered in the calculation of diluted earnings per share before the resolution on the number of shares awarded to employees as remumeration or profit-sharing in the following year’s resolution.

xxv.

Capital risk management

The in to ensure that it can Company engages capital management maximize shareholder returns by optimizing debt and equity balances while continuing to operate.

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

The Company is not subject to any other external capital requirements.

The Company’s key management reviews the Company’s capital structure annually, which includes consideration of the cost of various types of capital and the associated risks. The Company will balance its overall capital structure by paying dividends, issuing new shares, repurchasing shares and issuing new debt or paying off old debt, as recommended by key management.

xxvi. Financial instruments

(i) Fair value information - Financial instruments that are not measured at fair value

The Company’s management believes that the carrying amounts of financial assets and financial liabilities that are not measured at fair value on the balance sheet approximate their fair values.

Fair value information - Financial instruments measured at fair value on a
(ii) recurring basis
Fair value hierarchy

December 31, 2020

				Level 1		Level 2		Level 3		Total

Financial		assets at fair
	value through profit
	or loss
Fund beneficiary
	certificates		$	20,001	$	-	$	-	$	20,001
December 31, 2019
				Level 1		Level 2		Level 3		Total

Financial		assets at fair
	value through profit
	or loss
Fund beneficiary
	certificates		$	71,145	$	-	$	-	$	71,145
Financial		liabilities at
	fair value through
	profit or loss
Non-derivative
	financial liabilities
	held for trading		$	-	$	98	$	-	$	98

There were no transfers between Level 1 and Level 2 fair value measurements in 2020 and 2019.

Level 2 fair value measurement valuation techniques and input values Class of financial

Class of financial
instruments	Valuation techniques and input values
Derivatives - Forward	The discounted cash flow method: The
foreign exchange	future cash flows are estimated based
contracts	on observable forward exchange rates
	and contracted exchange rates at the
	end of the period, and are discounted
	at a rate that reflects the credit risk of
	each counterparty.

(iii) Types of financial instruments

	December	December	31,	December 31,	December 31,
		2020			2019

Financial asset
Measured at fair value
through profit or loss
Mandatorily measured
at fair value through
profit or loss	$	20,001		$	71,145
Financial assets at amortized
cost (Note 1)		2,820,767			2,104,845
Financial liabilities
Measured at fair value
through profit or loss
Held for trading			-		98
Measured at amortized cost
(Note 2)		3,280,887			2,554,170

Note 1: The balance includes financial assets measured at amortized cost, such as cash and cash equivalents, accounts receivable (including related parties), other receivables (including related parties) and refundable deposits.
Note 2: The balance includes financial liabilities measured at amortized cost, including short-term borrowings, accounts payable (including related parties), other payables (including related parties excluding benefits due within one
employee payable), long-term borrowings year, long-term borrowings and deposits received.

(iv) Financial risk management objectives and policies

The Company’s major financial instruments include investments in equity instruments, accounts receivable, accounts payable, borrowings and notes payable. The risks associated with the operations of the above financial instruments include market risk (including exchange rate risk, interest rate risk and other price risk), credit risk and liquidity risk.

Market risk

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

(1) Exchange rate risk

The Company engages in foreign currency-denominated sales and purchase transactions, which expose the Company to exchange rate risk. The Company manages its exposure to exchange rate risk by using forward exchange contracts and options to the extent permitted by policy.

The carrying amounts of monetary assets and monetary liabilities denominated in non-functional currencies as of the balance sheet date are shown in Note 31.

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. 1% is the sensitivity percentage used for the Company’s internal reporting of exchange rate risk to key management and represents management’s assessment of the reasonably possible range of changes in foreign currency exchange rates. The sensitivity analysis includes only outstanding foreign currency monetary items and forward exchange contracts designated as cash flow hedges, and adjusts their year-end translation by a 1% change in exchange rates. The negative amount for USD below represents the decrease in net profits

before tax when NTD strengthens by 1% against USD, and the positive amount when NTD depreciates by 1% against USD.

Im act of USD p

		2020		2019

Profit or loss	$	2,841	$	8,768	(i)

(i) Mainly derived from the Company’s receivables and payables that were outstanding at the balance sheet date and not hedged for cash flow.

(2) Interest rate risk

The Company’s bank deposits and borrowed funds carry both fixed and floating interest rates, resulting in interest rate risk.

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

		December 31,	December 31,	December	December	31,
			2020		2019

Fair value interest rate
risk
-	Financial assets	$	212,048	$	32,047
-	Financial
	liabilities		156,960			-
Cash flow interest rate
risk
-	Financial
	liabilities		1,118,718		859,062

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 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 0.25% 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 interest rates had increased/decreased by 0.25% basis points, with all other variables held constant, the Company’s net profits before tax would have decreased/increased by $2,797 thousand and $2,148 thousand for 2020 and 2019, respectively.

(3) Other price risk

The Company has equity price risk due to its investment in equity securities.

Sensitivity analysis

The following sensitivity analysis is based on the equity price exposure at the balance sheet date.

If the equity price had increased/decreased by 10%, profits or losses before tax for 2020 and 2019 would have increased/decreased by $2,000 thousand and $7,115 thousand, respectively, due to the increase/decrease in fair value of financial assets measured at fair value through profit or loss.

There was no significant change in the sensitivity of the Company’s investment in equity securities compared with the previous year.

2. Credit risk

Credit risk refers to the risk of financial loss due to default on contract obligations by the counterparties. As of the balance sheet date, the Company’s maximum exposure to credit risk of financial loss due to non-performance by counterparties and the provision of financial guarantees by the Company was mainly due to:

(1) The carrying amount of financial assets recognized in the stand-alone balance sheets.
(2) The maximum amount that the Company may be required to pay for the provision of financial guarantees, regardless of the likelihood of occurrence.

The Company’s primary potential credit risk arises from financial instruments such as cash and cash equivalents and accounts receivable. The Company’s cash is deposited with various banks and financial institutions. The cash is held in time deposits with maturities of approximately 3 months, which have high liquidity and flexibility and enjoy high interest rates with near-zero risk. The Company controls its

exposure to the credit risk of each financial institution and believes that the Company’s cash and cash equivalents are not subject to significant concentrations of credit risk.

The counterparties of the Company’s accounts receivable are customers in the electronics industry. In order to reduce the credit risk of accounts receivable, the Company’s management has assigned a dedicated team to establish credit management rules and regulations and to be responsible for credit limit determination, credit approval and other monitoring procedures for the credit management of accounts receivable.

In addition, the Company reviews the recoverable amounts of accounts receivable on a case-by-case basis every month to ensure that appropriate impairment losses have been recorded for uncollectible accounts receivable. Accordingly, the Company’s management believes that the Company’s credit risk is limited.

3.

The Company’s credit risk is mainly concentrated in the Company’s top ten customers. As of December 31, 2020 and 2019, the percentage of total accounts receivable from the aforementioned customers was 73.38% and 73.74%, respectively. Liquidity risk

The Company manages and maintains sufficient balance of cash and cash equivalents to support the Group’s operations and mitigate the impact of cash flow fluctuations. The Company’s management monitors the use of bank facilities and ensures financing compliance with the terms and conditions of the borrowing agreements.

Bank borrowings are an important source of liquidity for the Company. See (2) below for a description of the Company’s unused financing facilities.

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

The analysis of the remaining contract maturities of non-derivative financial liabilities is prepared using the undiscounted cash flows of financial liabilities (including principal and estimated interest) based on the earliest possible date on which the Company could be required to make repayment.

Therefore, bank borrowings that the Company may be required to repay immediately are shown in the the earliest period below, 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 contract repayment dates.

December 31, 2020

				Less than 1	Less than 1									More than 3	More than 3
Non-derivative					year	1 to 2years					2 to 3years			years			Total
	financial
	liabilities
Accounts payable				$	1,611,016	$		-			$		-	$	-		$ 1,611,016
Other payables					392,375			-					-		-		392,375
Borrowings					1,149,733		126,527						-		-		1,276,260
Lease liabilities					1,332		1,332					666			-		3,330
				$	3,154,456	$	127,859				$	666		$	-		$ 3,282,981
December		31,	2019
				Less than 1										More than 3
Non-derivative					year	1 to 2years					2 to 3years			years			Total
	financial
	liabilities
Accounts payable				$	1,191,328	$		-			$		-	$	-		$ 1,191,328
Other payables					501,813			-					-		-		501,813
Borrowings					565,592			-				293,996			-		859,588
				$	2,258,733	$		-			$	293,996		$	-		$ 2,552,729
Financing		facilities
							December 31,							December 31,
									2020								2019

Unsecured bank
	borrowing facility
	(extendable by mutual
	consent)
	Financing facilities
	used							$		981,960					$		400,000
	Financing facilities
	unused								1,048,600							1,579,780
								$	2,030,560						$	1,979,780
Secured bank			borrowing
	facility (extendable by
	mutual consent)
	Financing facilities
	used							$		500,000					$		500,000
	Financing facilities
	unused											-					-
								$		500,000					$		500,000

(2) Financing facilities

xxvii. Related party transactions

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

(i) Names of related parties and relationships

Relationship with Name of related art the Com an p y p y ICHIA HOLDINGS (B.V.I) Co., Ltd. (hereafter referred Subsidiary to as BVI-ICHIA) ICHIA USA INC. (hereafter referred to as ICHIA USA). Subsidiary ICHIA RUBBER INDUSTRY (M) Sdn. Bhd. (hereinafter Subsidiary referred to as ICHIA Malaysia) ICHIA INTERNATIONAL TRADING LTD. (BVI) Subsidiary (hereafter referred to as ICHIA INTERNATIONAL) ZHONGSHAN ICHIA ELECTRONICS CO., LTD. Subsidiary (hereafter referred to as ZHONGSHAN ICHIA) ICHIA TECHNOLOGY (SUZHOU) CO., LTD. Subsidiary (hereafter referred to as ICHIA SUZHOU)

(ii) Operating revenues

Operating revenues
	Type of related
Account in the book	party		2020		2019
Sales revenues	Subsidiary	$	1,912	$	966

Sales to related parties are determined based on the Company’s transfer pricing.

(iii) Purchases

pricing. Purchases
Name of relatedparty	2020	2019
ICHIA SUZHOU	$ 2,830,735	$ 3,398,853
ZHONGSHAN ICHIA	357,188	391,681
	$ 3,187,923	$ 3,790,534

Purchases from related parties are determined based on the Company’s transfer pricing.

(iv) Receivables from related parties (excluding loans to related parties and contract assets)

contract assets)
	Name of related	December			31,	December 31,
Account in the book	party			2020				2019
Accounts receivable	ICHIA USA Inc.		$	1,707			$	200
- related party
	ICHIA Malaysia				-			192
			$	1,707			$	392

Other receivables - ICHIA SUZHOU $ 41,693 $ 27,972 related party ICHIA - 8,658 INTERNATIONAL $ 41,693 $ 36,630

The outstanding receivables from related parties are not guaranteed. No allowance for loss has been provided for the receivables from related parties in 2020 and 2019.

(v) Payables to related parties (excluding borrowings from related parties)

	Name of related	December 31,	December 31,
Account in the book	party	2020	2019
Accounts payable -	ICHIA SUZHOU	$ 1,336,428	$ 1,046,473
related party
	ZHONGSHAN	182,497	75,578
	ICHIA
	ICHIA Malaysia	8	-
		$ 1,518,933	$ 1,122,051

The outstanding payables to related parties are not guaranteed.

(vi) Non-operating incomes

	Type of related
Account in the book	party			2020				2019
Other incomes	ICHIA SUZHOU		$	2,122			$	-

(vii) Borrowings from related parties

	December	December	31,	December 31,	December 31,
Name of relatedparty		2020			2019
Other payables
BVI-ICHIA	$	378,784		$	490,834
Interest expenses
BVI-ICHIA	$		-	$	7,088

The loans to BVI-ICHIA in 2020 and 2019 were all unsecured loans.
(viii) Other related party transactions

The management charge of $8,830 thousand was recognized and received by the Company as part of the management services provided to ICHIA INTERNATIONAL and was appropriately allocated to the relevant departments that incurred costs. ICHIA INTERNATIONAL completed its

liquidation and closed its operations on September 28, 2020, therefore, no management charge was made to it in 2020.

(ix) Key management remuneration

Key management remuneration
	2020	2019

Short-term employee
benefits	$ 20,521	$ 21,105
Post-employment benefits	358	495
	$ 20,879	$ 21,600

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

xxviii. Pledged assets

The following assets have been pledged as collaterals for borrowings and tariff guarantees for imported raw materials:

	December 31,	December 31,	December 31,	December 31,
		2020		2019

Pledged time deposits
(recorded as financial assets
at amortized cost -
noncurrent)	$	2,127	$	2,067
Self-owned land		227,663		227,663
Buildings - net		79,568		82,561
	$	309,358	$	312,291

xxix. Significant contingent liabilities and unrecognized contract commitments

(i) The total contract amount of the equipment contracted by the Company with vendors was NTD 57,858 thousand. As of December 31, 2020, the Company had paid NTD 29,670 thousand (recorded as prepayment for equipment) and the remaining NTD 28,188 thousand had not been paid.
(ii) As of December 31, 2020, the Company had guaranteed for cooperative education and provided a reserve for the issuance of refundable deposit notes (including long-term borrowings and short-term borrowings) of approximately NTD 960,360 thousand and USD 8,500 thousand, respectively.
(iii) As of December 31, 2020, the Company had received NTD 8,090 thousand in guarantee deposit notes for the purchase of equipment and construction.

xxx. Other matters

The Company was affected by the global pandemic of coronavirus pneumonia and delayed the resumption of work at some of its plants, resulting in a significant decrease in operating revenues from February to June of 2020. With the slowdown of the epidemic and the relaxation of policies, the Company expects that its operations will gradually return to normal.

In response to the impact of the outbreak, the Company took the following actions:

(i) Adjustment of business strategy

The Company’s business strategy has not been adjusted due to the impact of the epidemic, but the Company will remain cautious about the future development of the epidemic and the impact on end-use demand. (ii) Financing strategy In view of the possible impact of the uncertainty of the COVID-19 pandemic in the future, the Company will increase its medium-term and long-term financing positions and raise medium-term and long-term operating funds to establish a stable source of medium-term and long-term operating funds for the Company.

(iii) Government relief measures

The Company has applied for government subsidies for salaries, working capital, interest and rent, and has received $5,017 thousand of approved funds.

xxxi. Information on foreign currency assets and liabilities with significant impact

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

December 31, 2020

		Foreign		Carrying
	currency		Exchange rate	amount
Foreign currency
assets

Monetary items
USD	$	79,407	28.48 (USD : NTD)	$ 2,261,397
Non-monetary
items
Subsidiaries
under the
equity method
USD		112,799	28.48 (USD : NTD)	$ 5,104,379
Foreign currency
liabilities

Monetary items
USD		70,291	28.48 (USD : NTD)	$ 2,002,007
December 31, 2019
		Foreign		Carrying
	currency		Exchange rate	amount
Foreign currency
assets

Monetary items
USD	$	63,399	29.98 (USD : NTD)	$ 1,900,692
Non-monetary
items
Subsidiaries
under the
equity method
USD		112,799	29.98 (USD : NTD)	$ 5,144,394
Foreign currency
liabilities

Monetary items
USD		53,856	29.98 (USD : NTD)	$ 1,614,487

Foreign currency translation gains and losses (realized and unrealized) with significant impact as follows:

with significant impact as follows:	with significant impact as follows:	with significant impact as follows:	with significant impact as follows:
2020 2019 Foreign currency Exchange rate Net exchange gains or losses Exchange rate Net exchange gains or losses USD 28.48 (USD : NTD) ( $ 36,561 ) 29.98 (USD : NTD) ( $ 2,306 ) xxxii. Additional disclosure (i) Significant transactions and(ii)information on the investee enterprises: No. Item Description 1 Lendingfunds to others Exhibit 1 2 Endorsements andguarantees for others. Exhibit 2 3 Marketable securities held at the end of the period. (Excluding investment in subsidiaries, affiliated enterprises andjoint venture interests) Exhibit 3 4 The cumulative amount of purchases or sales of the same marketable securities reaches at least NTD 300 million or 20% of thepaid-in capital. None 5 Acquisition of real estate amounting to at least NTD 300 million or 20% of thepaid-in capital. None 6 Disposal of real estate amounting to at least NTD 300 million or 20% of thepaid-in capital. None 7 The amount of purchase or sale with related parties is at least NTD 100 million or 20% of the paid-in capital. Exhibit 4 8 Receivables from related parties amounting to at least NTD 100 million or 20% of thepaid-in capital. Exhibit 5 9 Engagement in derivative transactions. Note 7 10 Information on investees Exhibit 6
	No.	Item	Description
	1	Lendingfunds to others	Exhibit 1
	2	Endorsements andguarantees for others.	Exhibit 2
	3	Marketable securities held at the end of the period. (Excluding investment in subsidiaries, affiliated enterprises andjoint venture interests)	Exhibit 3
	4	The cumulative amount of purchases or sales of the same marketable securities reaches at least NTD 300 million or 20% of thepaid-in capital.	None
	5	Acquisition of real estate amounting to at least NTD 300 million or 20% of thepaid-in capital.	None
	6	Disposal of real estate amounting to at least NTD 300 million or 20% of thepaid-in capital.	None
	7	The amount of purchase or sale with related parties is at least NTD 100 million or 20% of the paid-in capital.	Exhibit 4
	8	Receivables from related parties amounting to at least NTD 100 million or 20% of thepaid-in capital.	Exhibit 5
	9	Engagement in derivative transactions.	Note 7
	10	Information on investees	Exhibit 6

(iii) Information on investment in Mainland China:

No.	Item	Description
1	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 7
2	The following significant transactions with investees in Mainland China, directly or indirectly through third regions, and their prices, payment terms, and unrealizedgains or losses:
	(1) Amounts andpercentages ofpurchases and	Exhibit 4

	relatedpayables at the end of theperiod.
	(2) Amounts and percentages of sales and related receivables at the end of theperiod.	None
	(3) The amount of property transactions and the amount of gain or loss resulting from such transactions.	None
	(4) The ending balance of endorsement and guarantee of notes orprovision of collateral and itspurpose.	None
	(5) The maximum balance, ending balance, interest rate range and total current interest amount of financial accommodation.	None
	(6) Other transactions that have a significant effect on the current profit or loss or financial position, such as theprovision or receipt of services.	None

(iv) Information on major shareholders:

Name, number and percentage of shares held by shareholders with 5% or more of the shares: Exhibit 8.

Unit: NTD and foreign currency in thousands, unless otherwise indicated

ICHIA TECHNOLOGIES INC.

Lending funds to others

January 1 to December 31, 2020

Exhibit 1

No. (Note 1)	The lender company of funds	The borrower of funds	Transaction	Related party or not	Maximum balance for the period	Balance at the end of the period	Actual amounts drawn	Interest rate range	Nature of funds lending (Note 2)	Amount of business transactions	Reasons for the necessity of short-term financing	Amount of allowance for bad debts	Collateral	Collateral	The limit for individual funds lending (Note 3)	The limit for total funds lending (Note 3)	Remarks
													Name	Value
1	BVI-ICHIA	ICHIA Technologies Hungary Limited Liability Company ICHIA TECHNOLOGIES INC.	Other receivables - related party Other receivables - related party	Yes Yes	$ 117,397 ( USD 3,850 ) 941,895 ( USD 30,800 )	$ 55,251 ( USD 1,940 ) 378,784 ( USD 13,300 )	$ 54,397 ( USD 1,910 ) 378,784 ( USD 13,300 )	- -	2 2	$ - -	Operating turnover Operating turnover	$ - -	None None	$ - -	$ 10,152,848 (Note 4) 10,152,848 (Note 4)	$ 10,152,848 (Note 4) 10,152,848 (Note 4)

Note 1: The number column is filled out as follows:

(1) Fill in 0 for the issuer.

(2) Investees are numbered sequentially from Arabic numeral 1 according to the company type.

Note 2: The nature of the funds lending is described as follows:

(1) Fill in 1 for those who have business transactions.

(2) Fill in 2 for those in need of short-term financing.

Note 3: Calculation and amount of funds lending limits.

i. The limit for individual funds lending
(1) The amount of funds lending of the Company to individual counterparties is limited to 30% of the Company’s current net worth (December 31, 2020), in accordance with the Company’s Operating Procedures for Lending Funds to Others.
(2) The amount of funds lending of an investee to individual counterparties is limited to 200% of the investee’s current net worth (December 31, 2020), in accordance with the investee’s Operating Procedures for Lending Funds to Others.
(3) The amount of funds lending of BVI-ICHIA to the Group’s parent company is limited to 200% of BVI-ICHIA’s current net worth (December 31, 2020) in accordance with BVI-ICHIA.’s Operating Procedures for Lending Funds to Others.
ii. The limit for total funds lending:
(1) The cumulative amount of funds lending of the Company to external counterparties is limited to 40% of the Company’s current net worth (December 31, 2020), in accordance with the Company’s Operating Procedures for Lending Funds to Others.
(2) The cumulative amount of funds lending of an investee is limited to 200% of the investee’s current net worth (December 31, 2020), in accordance with the investee’s Operating Procedures for Lending Funds to Others. (3) The cumulative amount of funds lending of BVI-ICHIA to the Group’s parent company is limited to 200% of BVI-ICHIA’s current net worth (December 31, 2020) in accordance with BVI-ICHIA’s Operating Procedures for Lending Funds to Others.

iii. The Company’s funds lending limit was calculated based on the net worth of the Company’s financial statements reviewed by CPA; the investee’s funds lending limit was calculated based on the net worth of the investee’s financial statements in foreign currencies reviewed by CPA. iv. The funds lending limits here are presented in NTD. If foreign currencies are involved, they are translated into NTD at the prevailing exchange rate on the date of the financial statements. (The spot exchange rate for USD as of December 31, 2020 was 28.48.)

Note 4: The funds lending between companies outside of the Republic of China in which the Company directly or indirectly holds 100% of the voting rights is not subject to the funds lending limits in Note 3.

ICHIA TECHNOLOGIES INC.

Endorsements and guarantees for others January 1 to December 31, 2020

Exhibit 2

Unit: NTD and foreign currency in thousands, unless otherwise indicated

No. (Note 1)	Endorser and guarantor company name	Counterparty endorsed and guaranteed	Counterparty endorsed and guaranteed	Endorsement and guarantee limit for a single enterprise (Note 3)	Maximum endorsement and guarantee balance for the period	Endorsement and guarantee balance at the end of the period	Actual amounts drawn	Amount of endorsement and guarantee by property	Percentage of cumulative endorsement and guarantee to net worth of the most recent financial statements (%)	Maximum endorsement and guarantee limit (Note 3)	Parent company endorsement and guarantee for subsidiary	Subsidiary endorsement and guarantee for parent company	Endorse ment and guarantee for Mainland China	Remarks
		Company name	Relationship (Note 2)
0	ICHIA TECHNOLOGIES INC.	ICHIA HOLDINGS (B.V.I) Co., Ltd.	(2)	$ 5,133,136	$ 538,355 ( USD 11,000 ) ( NTD 200,000 )	$ -	$ -	$ -	-	$ 5,703,484	Y	N	N

Note 1: The number column is filled out as follows:

(1) Fill in 0 for the issuer.
(2) Investees are numbered sequentially from Arabic numeral 1 according to the company type.
Note 2: There are seven types of relationships with the counterparty of endorsement and guarantee, indicating the type suffices:
(1) Companies with business relationship.
(2) Subsidiaries in which the Company directly or indirectly holds more than 50% of the voting shares.
(3) Companies that directly or indirectly hold more than 50% of the voting rights in the Company.
(4) Between companies in which the Company directly or indirectly holds more than 90% of the voting shares.
(5) Intra-industry or co-founded companies with mutual insurance in accordance with contractual provisions based on the need for contracted work.
(6) Companies that are endorsed and guaranteed by all contributing shareholders in proportion to their shareholdings as a result of joint investment.
(7) Intra-industry companies engaged in joint guarantees for the performance of the pre-sale house sales contract in accordance with the regulations of the Consumer Protection Act.
Note 3: Calculation of endorsement and guarantee limit and amount.
i. Endorsement and guarantee limit for a single enterprise:
- (1) The amount of endorsement and guarantee of the Company to a single enterprise is limited to 80% of the Company’s current net worth (December 31, 2020), in accordance with the Company’s Operating Procedures for Endorsement and Guarantee.
- (2) The amount of endorsement and guarantee of the Company to individual overseas affiliate is limited to 90% of the Company’s current net worth (December 31, 2020), in accordance with the Company’s Operating Procedures for Endorsement and Guarantee.
ii. Maximum Endorsement and Guarantee limit:
- (1) The cumulative amount of endorsement and guarantee of the Company to external counterparties is limited to 100% of the Company’s current net worth (December 31, 2020), in accordance with the Company’s Operating Procedures for Endorsement and Guarantee.

ICHIA TECHNOLOGIES INC.

Marketable securities held at the end of the period

December 31, 2020

Exhibit 3

Unit: NTD and foreign currency in thousands, unless otherwise indicated

Subsidiaries held	Type and name of marketable securities (Note 1)	Relationship with the issuer of marketable securities	Account in the book	Period end	Period end	Period end	Period end	Remarks
				Number of shares (thousand shares)	Carrying amount	Shareholdi ng (%)	Fair value
ICHIA TECHNOLOGIES INC.	Fund beneficiary certificates Franklin Templeton SinoAm Money Market Fund	None	Financial assets at fair value through profit or loss - Current	1,918	$ 20,001	-	$ 20,001

Note 1: Marketable securities referred to here are stocks, bonds, beneficiary certificates and marketable securities derived from the above items that fall within the scope of IFRS 9 “Financial Instruments”.

Note 2: For information on investments in subsidiaries, affiliates and joint venture interests, please refer to Exhibit 6 and Exhibit 7.

ICHIA TECHNOLOGIES INC.

The amount of purchase or sale with related parties is at least NTD 100 million or 20% of the paid-in capital.

January 1 to December 31, 2020

Exhibit 4

Unit: NTD thousand, unless otherwise indicated

Purchase (sale) company	Trading partner name	Relationship	Transactions	Transactions	Transactions	Transactions	The circumstances and reasons why the trading terms are different from those of ordinary transactions	The circumstances and reasons why the trading terms are different from those of ordinary transactions	Notes and accounts receivable (payable)	Notes and accounts receivable (payable)	Remarks
			Purchase (sale)	Amount	Purchase (sale) company	Credit period	Unit price	Credit period	Balance	Percentage of total notes and accounts receivable (payable)
ICHIA TECHNOLOGIES INC.	ICHIA SUZHOU ZHONGSHAN ICHIA	The same affiliate 〃	Purchase 〃	$ 2,830,735 357,188	84 10	30 days from monthly cut-off day 〃	- -	- -	($ 1,336,428) ( 182,497)	( 88 ) ( 12 )

ICHIA TECHNOLOGIES INC.

Receivables from related parties amounting to at least NTD 100 million or 20% of the paid-in capital.

December 31, 2020

Exhibit 5

Unit: NTD thousand, unless otherwise indicated

Companies with accounts receivable	Trading partner name	Relationship	Balance of receivables from related parties	Turnover rate	Overdue receivables from related parties	Overdue receivables from related parties	Receivables from related parties collected during the subsequent period	Amount of allowance for bad debts
					Amount	Processing method
ICHIA SUZHOU ZHONGSHAN ICHIA BVI-ICHIA	ICHIA TECHNOLOGIES INC. ICHIA TECHNOLOGIES INC. ICHIA TECHNOLOGIES INC.	The same affiliate The same affiliate The same affiliate	Accounts receivable $ 1,336,428 Accounts receivable 182,497 Other receivables 378,784	2.38 2.77 Note	$ - - -	－－－	$ 534,134 77,255 -	$ - - -

Note: The turnover rate is not calculated because it is mainly due to other receivables arising from the lending of funds.

ICHIA TECHNOLOGIES INC.

Information on investees, locations, ......, etc.

January 1 to December 31, 2020

Exhibit 6

Unit: NTD and foreign currency in thousands, unless otherwise indicated

Investor	Investee	Location	Principle business	Original investment amount	Original investment amount	Holdingat the end ofperiod	Holdingat the end ofperiod	Holdingat the end ofperiod	Profit or loss of investees for the period	Investment gain (loss) recognized in the period	Remarks
				The end of the period	The end of last year	Number of shares (thousand shares)	Percentag e %	Carrying amount
ICHIA TECHNOLOGIES INC. ICHIA HOLDINGS (B.V.I) Co., Ltd. ICHIA UK. LTD.	ICHIA HOLDINGS (B.V.I) Co., Ltd. ICHIA USA Inc. ICHIA RUBBER INDUSTRY (M) Sdn. Bhd. ICHIA UK. LTD. ICHIA HOLDINGS (H.K.) Co., Ltd. ICHIA INTERNATIONAL ICHIA Technologies Hungary Limited Liability Company	P.O. BOX957, Offshore Incorporation Centre, Road Town, Tortola, British Virgin Islands 1057 Tierra Del Rey, Suite G ,Chula Vista, CA 91910 U.S.A. 997-A, Solok Pervshaan Tiga Prai Industrial Estate 13600 Prai, P.W. West Halasia Malaysia P.O. Box 3152, Town, Tortola, British Virgin Islands Room 1004, National Health Centre, 151 Gloucester Road, Wanchai, Hong Kong P.O. BOX 3152, ROAD TOWN. Tortola \british Virgin Islands 2900 Komarom Ipari Park Banki Domat U. 2. Hungary	Various investment businesses International trading of various electronic components and materials Manufacturing, processing and trading of various electronic components and materials for various electronic and telecommunication computers. Various investment businesses Various investment businesses International trading of various electronic components and materials Manufacturing, processing and trading of rubber and plastic keypads	$ 3,532,566 ( USD 108,693 ) 118,309 ( USD 4,106 ) 86,152 ( USD 3,025 ) 140,292 ( USD 4,926 ) 2,136,000 ( USD 75,000 ) - 140,292 ( USD 4,926 )	$ 3,532,566 ( USD 108,693 ) 118,309 ( USD 4,106 ) 86,152 ( USD 3,025 ) 140,292 ( USD 4,926 ) 2,136,000 ( USD 75,000 ) 307,584 ( USD 10,800 ) 140,292 ( USD 4,926 )	108,693 4,106 9,000 4,926 75,000 - -	100 100 100 100 100 - 100	$ 5,067,096 37,283 95,636 ( USD 3,358 ) ( 30,901 ) ( USD -1,085 ) 3,799,175 ( USD 133,398 ) - ( 30,901 ) ( USD -1,085 )	$ 58,730 2,428 7,376 ( USD 259 ) ( 1,424 ) ( USD -50 ) 45,967 ( USD 1,614 ) 3,218 ( USD 113 ) ( 1,424 ) ( USD -50 )	$ 64,648 2,428 7,376 ( USD 259 ) ( 1,424 ) ( USD -50 ) 45,967 ( USD 1,614 ) 3,218 ( USD 113 ) ( 1,424 ) ( USD -50 )	Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Note 2 Subsidiary

Note 1: Please refer to Exhibit 7 for information on the investees in Mainland China.

Note 2: ICHIA INTERNATIONAL was liquidated by a resolution of the Board of Directors on August 10, 2020, and all liquidation procedures were completed on September 28, 2020, ending its operations.

Unit: NTD and foreign currency in thousands, unless otherwise indicated

ICHIA TECHNOLOGIES INC.

Information on investment in Mainland China

January 1 to December 31, 2020

Exhibit 7

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, repatriated

investment gains and losses:

Investee in Mainland China	Principle business	Paid-in capital	Type of investment (Note 1)	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	Accumulated investment amount remitted from Taiwan at the end of the period	Profit or loss of investees for the period	Shareholding percentage of the Company’s direct or indirect investment	Investment gain (loss) recognized in the period (Note 2)	Carrying amount of investments at the end of the period	Investment income remitted back as of the end of the period
					Remittance	Recovery
ICHIA SUZHOU ZHONGSHAN ICHIA	Rubber, plastic keypads and flexible printed circuit boards Rubber and plastic keypads	$ 2,477,760 ( USD 87,000 ) 484,160 ( USD 17,000 )	(ii) B (ii) A	$ 2,477,760 ( USD 87,000 ) 484,160 ( USD 17,000 )	$ - -	$ - -	$ 2,477,760 ( USD 87,000 ) 484,160 ( USD 17,000 )	$ 55,992 ( USD 1,966 ) 2,706 ( USD 95 )	100 100	$ 46,052 ( USD 1,617 ) (ii) B 3,389 ( USD 119 ) (ii)B	$ 3,796,811 ( USD 133,315 ) 743,641 ( USD 26,111 )	$ - -

2. Investment quota for Mainland China. Accumulated amount of investment from Taiwan to Mainland China at the end of theperiod Amount of investment approved by the Investment Commission, Ministry of Economic Affairs Investment quota for mainland China as stipulated by the Investment Commission,Ministryof Economic Affairs NTD 2,961,920 ( USD 104,000 ) NTD 2,961,920 ( USD 104,000 ) NTD 3,422,090 ( USD 120,158 )	2. Investment quota for Mainland China. Accumulated amount of investment from Taiwan to Mainland China at the end of theperiod Amount of investment approved by the Investment Commission, Ministry of Economic Affairs Investment quota for mainland China as stipulated by the Investment Commission,Ministryof Economic Affairs NTD 2,961,920 ( USD 104,000 ) NTD 2,961,920 ( USD 104,000 ) NTD 3,422,090 ( USD 120,158 )	2. Investment quota for Mainland China. Accumulated amount of investment from Taiwan to Mainland China at the end of theperiod Amount of investment approved by the Investment Commission, Ministry of Economic Affairs Investment quota for mainland China as stipulated by the Investment Commission,Ministryof Economic Affairs NTD 2,961,920 ( USD 104,000 ) NTD 2,961,920 ( USD 104,000 ) NTD 3,422,090 ( USD 120,158 )	2. Investment quota for Mainland China. Accumulated amount of investment from Taiwan to Mainland China at the end of theperiod Amount of investment approved by the Investment Commission, Ministry of Economic Affairs Investment quota for mainland China as stipulated by the Investment Commission,Ministryof Economic Affairs NTD 2,961,920 ( USD 104,000 ) NTD 2,961,920 ( USD 104,000 ) NTD 3,422,090 ( USD 120,158 )
	Accumulated amount of investment from Taiwan to Mainland China at the end of theperiod	Amount of investment approved by the Investment Commission, Ministry of Economic Affairs	Investment quota for mainland China as stipulated by the Investment Commission,Ministryof Economic Affairs
	NTD 2,961,920 ( USD 104,000 )	NTD 2,961,920 ( USD 104,000 )	NTD 3,422,090 ( USD 120,158 )

Note 1: The investment methods can be divided into the following three types, indicating as such suffices:

(i) Investment in Mainland China directly.
(ii) Investment in Mainland China through companies in third regions (please specify the investment company of the third region). A. BVI-ICHIA
- B. ICHIA HOLDINGS (H.K.) Co., Ltd.
(iii) Other types.
Note 2: In the column of investment gain or loss recognized in the current period:
(i) If the investment is under preparation and there is no investment gain or loss, it should be noted.
(ii) The basis for recognizing investment gains or losses is divided into the following three categories, which should be specified. A. The financial statements have been audited by an international CPA firm with which CPA firms in the Republic of China have a cooperative relationship.
- B. The financial statements have been audited by the attesting CPA of the parent company in Taiwan. C. Others.
Note 3: The figures in this Exhibit are presented in NTD. Where foreign currencies are involved, the exchange rate at the date of financial reporting is used to translate into NTD. (The spot exchange rate for USD as of December 31, 2020 was 28.48)

ICHIA TECHNOLOGIES INC.

Information on major shareholders December 31, 2020

Exhibit 8

Name of Major Shareholder	Shares	Shares
	Shareholding	ShareholdingPercentage
Ferrari Investment Co., Ltd. Creative Investment Co., Ltd.	15,472,481 15,468,480	5.03% 5.02%

Note 1: The information on major shareholders in this Exhibit is compiled by Taiwan Depository & Clearing Corporation based on the last business day of the quarter in which the shareholders held 5% or more of the Company’s common shares and preferred shares whose registration and delivery have been completed in non-physical form (including treasury shares). The number of shares recorded in the Company’s consolidated financial statements and the actual number of shares registered and delivered in non-physical form may differ depending on the basis of preparation of the calculations.

AI assistant

ICHIA — Audit Report / Information 2020

52057_rns_2020-11-12_96effa9e-b8e4-4bc0-b5ee-e8230aeb446e.pdf

ICHIA TECHNOLOGIES INC.

Stand-alone Financial Statements and Independent Auditor’s Report 2020 and 2019

§TABLE OF CONTENTS§

Independent Auditop’s Repopt

Audit opinions

Basis fop opinions

Key audit matteps

Responsibilities of management and those in chapge with govepnance of the stand-alone financial statements

Auditop’s pesponsibilities fop the audit of the stand-alone financial statements

5.

6.

CPA Liu Shu-Lin

ICHIA TECHNOLOGIES, INC.

STANDALONE BALANCE SHEETS

ICHIA TECHNOLOGIES, INC.

STANDALONE STATEMENTS OF COMPREHENSIVE INCOME (In Thousands of New Taiwan Dollaps, Except Eapnings Pep Shape)

ICHIA TECHNOLOGIES, INC.

STANDALONE STATEMENTS OF CHANGES IN EQUITY

ICHIA TECHNOLOGIES, INC.

ICHIA TECHNOLOGIES INC.

Notes to the stand-alone financial statements

i. Company History

ii. Date and Procedure for Approval of Financial Statements

iii. Application of New and Revised Standards and Interpretations

iv. Summary of Significant Accounting Policies

(ix) Financial instruments

Financial liabilities at fair value through profit or loss

Merchandise sales revenues

(xiii) Government subsidies

(xv) Income tax

2. Deferred tax

3. Current and deferred income tax

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

vi. Cash and cash equivalents

December 31, 2019

viii. Financial assets at amortized cost

ix. Accounts receivable and overdue receivables

Accounts receivable

December 31, 2020

x. Inventories

xi. Investments accounted for using the equity method Investments in subsidiaries

xii. Property, plant and equipment

(Continued from previous page)

xiii. Lease Agreement

(ii) Lease liabilities

(iii) Information on other leases

xiv. Investment Properties

xv. Other assets

xvii. Accounts payable

xviii. Other liabilities

xix. Post-employment benefit plans

(i) Defined contribution plan

(ii) Defined benefit plan

xxii.

Net profits before tax

(vi) Employee benefit expenses

Estimated percentage

xxiii. Income tax

2019

(v) Information on unused loss carryforwards

(vi) Income tax assessment

xxiv. Earnings per share

Net profits for the year

xxv.

Capital risk management

xxvi. Financial instruments

December 31, 2020

Sensitivity analysis

(2) Interest rate risk

Sensitivity analysis

Sensitivity analysis

2.

Credit risk

3.

December 31, 2020

(2) Financing facilities

xxvii. Related party transactions

ICHIA Audit Report / Information 2020