INVENTEC - Annual Report 2021 | FinancialReports.eu

Stock Code:2356

INVENTEC CORPORATION AND SUBSIDIARIES

CONSOLIDATED FINANCIAL STATEMENTS

With Independent Auditors’ Report For the Years Ended December 31, 2021 and 2020

Address: No.66, Hougang Street, Shinlin District, Taipei City, Taiwan, R.O.C. Telephone: 886-2-2881-0721

The independent auditors’ report and the accompanying consolidated financial statements are the English translation of the Chinese version prepared and used in the Republic of China. If there is any conflict between, or any difference in the interpretation of the English and Chinese language independent auditors’ report and consolidated financial statements, the Chinese version shall prevail.

〜 1 〜

Contents 1. Cover Page 2. Table of Contents 3. Representation Letter 4. Independent Auditors’ Report 5. Consolidated Balance Sheets 6. Consolidated Statements of Comprehensive Income 7. Consolidated Statements of Changes in Equity 8. Consolidated Statements of Cash Flows 9. Notes to the Consolidated Financial Statements (1) Company History (2) Financial Statements Authorization Date and Authorization Process (3) New Standards, Amendments and Interpretations Adopted (4) Summary of Significant Accounting Policies (5) Significant Accounting Assumptions and Judgements, and Major Sources of Estimation Uncertainty (6) Explanation to Significant Accounts (7) Related Parties Transactions (8) Pledged Assets (9) Significant Commitments and Contingencies (10) Losses Due to Major Disasters (11) Subsequent Events (12) Other (13) Other disclosures (a) Information on significant transactions (b) Information on investment (c) Information on investment in Mainland China (d) Information on major shareholders (14) Segment Information	Page
	1 2 3 4 5 6 7 8 9 9 9～10 10～28 28～29 29～73 73～75 76 76～77 77 77 78 78～88 89～90 90～92 90～92 93～95

Contents
1. Cover Page
2. Table of Contents
3. Representation Letter
4. Independent Auditors’ Report
5. Consolidated Balance Sheets
6. Consolidated Statements of Comprehensive Income
7. Consolidated Statements of Changes in Equity
8. Consolidated Statements of Cash Flows
9. Notes to the Consolidated Financial Statements
(1) Company History
(2) Financial Statements Authorization Date and Authorization Process
(3) New Standards, Amendments and Interpretations Adopted
(4) Summary of Significant Accounting Policies
(5) Significant Accounting Assumptions and Judgements, and Major Sources
of Estimation Uncertainty
(6) Explanation to Significant Accounts
(7) Related Parties Transactions
(8) Pledged Assets
(9) Significant Commitments and Contingencies
(10) Losses Due to Major Disasters
(11) Subsequent Events
(12) Other
(13) Other disclosures
(a) Information on significant transactions
(b) Information on investment
(c) Information on investment in Mainland China
(d) Information on major shareholders
(14) Segment Information

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〜 2 〜

Representation Letter

The entities that are required to be included in the combined financial statements of Inventec Corporation as of and for the year ended December 31, 2021 under the Criteria Governing the Preparation of Affiliation Reports, Consolidated Business Reports, and Consolidated Financial Statements of Affiliated Enterprises are the same as those included in the consolidated financial statements prepared in conformity with International Financial Reporting Standards No. 10 by the Financial Supervisory Commission, "Consolidated Financial Statements." In addition, the information required to be disclosed in the combined financial statements is included in the consolidated financial statements. Consequently, Inventec Corporation and Subsidiaries do not prepare a separate set of combined financial statements.

Company name: Inventec Corporation Chairman: Tom-Hwar Cho Date: March 15, 2022

〜 3 〜

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KPMG

台北市110615信義路5段7號68樓(台北101大樓) 電話 Tel + 886 2 8101 6666 68F., TAIPEI 101 TOWER, No. 7, Sec. 5, 傳真 Fax + 886 2 8101 6667 Xinyi Road, Taipei City 110615, Taiwan (R.O.C.) 網址 Web home.kpmg/tw

Independent Auditors’ Report

To the Board of Directors of Inventec Corporation:

Opinion

We have audited the consolidated financial statements of Inventec Corporation and its subsidiaries (“ the Group” ), which comprise the consolidated balance sheets as of December 31, 2021 and 2020, and the consolidated statements of comprehensive income, changes in equity and cash flows for the years then ended, and notes to the consolidated financial statements, including a summary of significant accounting policies.

In our opinion, the accompanying consolidated financial statements present fairly, in all material respects, the consolidated financial position of the Group as at December 31, 2021 and 2020, and its consolidated financial performance and its consolidated cash flows for the years then ended December 31, 2021 and 2020 in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and with the International Financial Reporting Standards (“ IFRSs” ), International Accounting Standards (“ IASs” ), Interpretations developed by the International Financial Reporting Interpretations Committee (“IFRIC”) or the former Standing Interpretations Committee (“SIC”) endorsed and issued into effect by the Financial Supervisory Commission of the Republic of China.

Basis for Opinion

We conducted our audit in accordance with the Regulations Governing Auditing and Certification of Financial Statements by Certified Public Accountants and the auditing standards generally accepted in the Republic of China. Our responsibilities under those standards are further described in the Auditors’ Responsibilities for the Audit of the Consolidated Financial Statements section of our report. We are independent of the Group in accordance with the Certified Public Accountants Code of Professional Ethics in Republic of China (“ the Code”), 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 of our opinion.

Key Audit Matters

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

1. Inventory Valuation

Please refer to Note 4(h), Note 5 and Note 6(e) for accounting policies, significant accounting assumptions and judgments, major sources of estimation uncertainty and related disclosure information for inventory, respectively.

〜 4 〜

KPMG, a Taiwan partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee.

Description of the key audit matter:

The Group’s materials may be obsolescence or slow-moving due to the risk of price decline in inventory, the material prepared for designing products and forecast orders may be canceled or changed, or changed on components and quantities. Therefore, the valuation of inventories has been identified as a key audit matter.

How the matter was addressed in our audit:

In relation to the key audit matter above, we have performed certain key audit procedures that included assessing the appropriateness of inventories valuation policies; ensuring the process of inventory valuation is in conformity with the accounting policies; inspecting the inventory aging report; recalculating estimation of inventory valuation based on the Group’s policies.

2. The offsetting agreements of financial assets and liabilities

Please refer to Note 4(g), 6(b) and 6(y) for accounting policy and detailed information on the agreements of financial assets and liabilities offsetting.

Description of the key audit matter:

In order to use fund flexibly, the Group handled multiple kinds of financial instruments which IAS was endorsed by FSC to offset financial assets and liabilities and be reported in the balance sheet. The disclosure of financial instruments which are not expired on the reporting date would influence the judgment of report reader.

How the matter was addressed in our audit:

In relation to the key audit matter above, we have performed certain key audit procedures that included examining whether the amount of the signed contract were within the scope authorized by the Board of Directors; sampling transactions in 2021 to examine whether contracts were signed with banks; review the contracts to check if the regulation of offsetting criteria was met; and assessing whether the disclosure of financial assets and liabilities offsetting is appropriate.

3. Disposal of property, plant and equipment and right-of-use assets of subdidiaries

Please refer to Note 4(j), 4(l), 6(h) and 6(i) for accounting policy and detailed information for disposal of property, plant and equipment and right-of-use assets of subsidiaries.

Description of the key audit matter:

For optimizing idled assets, lowing the Group’s operating costs, the Group disposed the idled assets. Due to the significance of the amount, the disposal of property, plant and equipment and right-of-use assets has been identified as a key audit matter.

How the matter was addressed in our audit:

In relation to the key audit matter above, we have performed certain key audit procedures that includes examining whether the disposal of property; plant and equipment has been approved by the Board of Directors; obtaining the professional valuation report in accordance with the Company's acquisition and disposal of assets processing procedures; verifying to the sale documents, confirming and calculating whether the gains and losses on the disposal are appropriate; examining whether depreciation recognition has been terminated at the asset disposal date, and that the cost and accumulated depreciation have been removed from the account.

〜 4-1 〜

Other Matter

Inventec Corporation has additionally prepared its parent company only financial statements as of and for the years ended December 31, 2021 and 2020, on which we have issued an unqualified opinion.

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

Management is responsible for the preparation and fair presentation of the consolidated financial statements in accordance with Regulations Governing the Preparation of Financial Reports by Securities Issuers and IFRSs, IASs, interpretation as well as related guidance endorsed by the Financial Supervisory Commission of the Republic of China, and for such internal control as management determines is necessary to enable the preparation of consolidated financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the consolidated financial statements, management is responsible for assessing the Group’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Group or to cease operations, or has no realistic alternative but to do so.

Those charged with governance (including the Audit Committee or supervisors) are responsible for overseeing the Group’s financial reporting process.

Auditor’s Responsibilities for the Audit of the Consolidated Financial Statements

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

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

Identify and assess the risks of material misstatement of the consolidated financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Group’s internal control.
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.
Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Group’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditors’ report to the related disclosures in the consolidated financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the Group to cease to continue as a going concern.

〜 4-2 〜

Evaluate the overall presentation, structure and content of the consolidated financial statements, including the disclosures, and whether the consolidated financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the Group to express an opinion on the consolidated financial statements. We are responsible for the direction, supervision and performance of the group audit. We remain solely responsible for our audit opinion.

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.

From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the consolidated financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditors’ report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.

The engagement partners on the audit resulting in this independent auditors’ report are Wan-Wan Lin and RouLan Kuo.

KPMG

Taipei, Taiwan (Republic of China) March 15, 2022

Notes to Readers

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

The independent auditors’ audit report and the accompanying consolidated financial statements are the English translation of the Chinese version prepared and used in the Republic of China. If there is any conflict between, or any difference in the interpretation of the English and Chinese language independent auditors’ audit report and consolidated financial statements, the Chinese version shall prevail.

〜 4-3 〜

(English Translation of Consolidated Financial Statements Originally Issued in Chinese) INVENTEC CORPORATION AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

December 31, 2021 and 2020

(Expressed in Thousands of New Taiwan Dollars)

ASSETS Current Assets： 1100 Cash and cash equivalents (Note (4) and (6)(a)) 1110 Current financial assets at fair value through profit or loss (Note (4) and (6)(b)) 1120 Current financial assets at fair value through other comprehensive income (Note (4) and (6)(b)) 1170 Accounts receivable, net (Notes (4), (6)(c) and (7)) 1200 Other receivables, net (Notes (6)(d) and (7)) 1310 Inventories (Note (4) and (6)(e)) 1470 Other current assets (Notes (6)(l), (4)(q) and (8)) Non-current assets： 1510 Non-current financial assets at fair value through profit or loss (Note (4) and (6)(b)) 1517 Non-current financial assets at fair value through other comprehensive income (Note (4) and (6)(b)) 1550 Investments accounted for using equity method (Note (4) and (6)(f)) 1600 Property, plant and equipment (Notes (4), (6)(h) and (8)) 1755 Right-of-use assets (Notes (4), (6)(i) and (8)) 1780 Intangible assets (Note (4) and (6)(k)) 1900 Other non-current assets (Notes (6)(k), (6)(r) and (8)) TOTAL ASSETS	December 31, 2021 Amount % $ 34,787,912 14 1,343,945 1 1,521,476 1 103,795,621 42 884,098 - 62,417,356 25 2,873,014 1 207,623,422 84 893,885 - 4,192,435 2 300,127 - 27,466,491 11 3,162,003 1 967,451 - 3,009,608 2 39,992,000 16 $ 247,615,422 100	December 31, 2020 Amount % 32,951,595 16 782,284 - 1,405,689 1 91,811,309 43 844,441 - 41,416,323 19 4,258,311 2 173,469,952 81 911,660 - 3,657,808 2 211,643 - 28,004,583 13 3,403,891 2 875,801 - 3,626,099 2 40,691,485 19 214,161,437 100 LIABILITIES AND EQUITY Current Liabilities： 2100 Short-term borrowings (Note (6)(n)) 2120 Current financial liabilities at fair value through profit or loss (Notes (4) and (6)(b)) 2130 Current contract liabilities (Note (6)(v)) 2170 Accounts payable (Note (7)) 2230 Current tax liabilities 2200 Other payables (Note (7)) 2322 Long-term borrowings, current portion (Note (6)(n)) 2280 Current lease liabilities (Note (6)(o)) 2399 Other current liabilities, others (Note (6)(m) and (6)(r)) Non-current Liabilities： 2540 Long-term borrowings (Note (6)(n)) 2640 Net defined benefit liability, non-current (Note (4) and (6)(q)) 2580 Non-current lease liabilities (Note (4) and (6)(o)) 2670 Other non-current liabilities, others (Note (6)(m) and (6)(r)) Total Liabilities Equity attributable to owners of parent： 3110 Ordinary shares (Note (6)(s)) 3200 Capital surplus (Note (6)(s)) 3300 Retained earnings (Note (6)(s)) 3400 Other equity (Note (6)(s)) Total equity attributable to owners of parent 36XX Non-controlling interests Total Equity TOTAL LIABILITIES AND EQUITY	December 31, 2021 Amount % $ 54,694,565 22 112,133 - 7,562,873 3 84,907,477 34 2,374,435 1 10,524,706 4 7,248,244 3 182,996 - 12,472,789 5 180,080,218 72 3,790,708 2 589,919 - 693,497 - 6,062,986 3 11,137,110 5 191,217,328 77 35,874,751 14 2,899,592 1 21,024,959 9 (2,714,598) (1) 57,084,704 23 (686,610) - 56,398,094 23 $ 247,615,422 100	December 31, 2020 Amount % 31,890,755 15 250,136 - 7,828,232 4 74,370,226 35 2,296,677 1 11,595,245 5 330,744 - 216,479 - 11,765,194 6 140,543,688 66 8,990,825 4 656,171 - 748,035 - 5,331,975 3 15,727,006 7 156,270,694 73 35,874,751 17 2,899,284 1 21,112,549 10 (1,901,925) (1) 57,984,659 27 (93,916) - 57,890,743 27 214,161,437 100

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

〜 5 〜

(English Translation of Consolidated Financial Statements Originally Issued in Chinese) INVENTEC CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

For the years ended December 31, 2021 and 2020

(Expressed in Thousands of New Taiwan Dollars)

For the 2021	years end	ed December 31
	% 100 96 4 - 1 2 - 3 1 - - - - - - 1 - 1 - - - - - - - - - - 1 1 - 1 1 - 1 1.82 1.81	2020 Amount 508,294,198 487,181,281 21,112,917 2,795,370 4,190,267 9,715,204 (29,010) 16,671,831 4,441,086 1,186,629 276,301 5,514,251 (1,054,244) (18,318) 5,904,619 10,345,705 3,772,727 6,572,978 (53,824) 365,376 (16,646) (10,746) 305,652 (457,317) (639) - (457,956) (152,304) 6,420,674 7,547,985 (975,007) 6,572,978 7,391,406 (970,732) 6,420,674
Amount $ 519,732,048 497,437,486 22,294,562 3,076,667 3,866,479 10,593,339 33,443 17,569,928 4,724,634 1,075,960 378,252 2,220,446 (738,437) 38,329 2,974,550 7,699,184 1,752,091 5,947,093 16,762 (242,078) (2,511) 3,769 (231,596) (574,653) 2,914 - (571,739) (803,335) $ 5,143,758 $ 6,537,765 (590,672) $ 5,947,093 $ 5,736,566 (592,808) $ 5,143,758 $			% 100 96

			4
			- 1 2 -
			3
			1
			- - 1 - -
			1
			2 1
			1
			- - - -
			-
			- - -
			-
			-
			1
			1 -
			1
			1 -
			1
			2.10
$			2.08

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

〜 6 〜

(English Translation of Consolidated Financial Statements Originally Issued in Chinese) REVIEWED ONLY, NOT AUDITED IN ACCORDANCE WITH GENERALLY ACCEPTED AUDITING STANDARDS INVENTEC CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

For the Years Ended December 31, 2021 and 2020

(Expressed in Thousands of New Taiwan Dollars)

		Equity attributable to owners of parent	Equity attributable to owners of parent	Equity attributable to owners of parent	Equity attributable to owners of parent	Total Equity
Share Capital Ordinary shares $ 35,874,751 - - - - - - - - - - - 35,874,751 - - - - - - - - $ 35,874,751	Capital Surplus 2,913,461 - - - - - - - (14,856) - - 679 2,899,284 - - - - - - - 308 2,899,592	Retained Earnings			Other Equity Exchange Differences on Translation Unrealized gains (losses) from financial assets measured at fair value of Foreign Financial Statements through other comprehensive income (2,005,134) 183,129 - - (462,231) 348,853 (462,231) 348,853 - - - - - - - 19,258 - - - - - 14,200 - - (2,467,365) 565,440 - - (569,603) (244,443) (569,603) (244,443) - - - - - - - 1,373 - - (3,036,968) 322,370
					Exchange Differences on Translation of Foreign Financial Statements (2,005,134) - (462,231) (462,231) - - - - - - - - (2,467,365) - (569,603) (569,603) - - - - - (3,036,968)
		Legal Reserve 10,799,605 - - - 546,296 - - - - - - - 11,345,901 - - - 747,132 - - - - 12,093,033	Special Reserve 1,646,357 - - - - 175,647 - - - - - - 1,822,004 - - - - 79,921 - - - 1,901,925	Unappropriated Retained Earnings
				5,858,979 7,547,985 (43,201) 7,504,784 (546,296) (175,647) (4,663,718) (19,258) - - (14,200) - 7,944,644 6,537,765 12,847 6,550,612 (747,132) (79,921) (6,636,829) (1,373) - 7,030,001		56,971,228 6,572,978 (152,304)
						6,420,674
						- - (4,663,718) - (14,856) (823,820) - 1,235
						57,890,743 5,947,093 (803,335)
						5,143,758
						- - (6,636,829) - 422
						56,398,094

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

〜 7 〜

(English Translation of Consolidated Financial Statements Originally Issued in Chinese) INVENTEC CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

For the Years Ended December 31, 2021 and 2020

(Expressed in Thousands of New Taiwan Dollars)

2021
Cash flows from operating activities:
Profit before tax
$ 7,699,184
Adjustments:
Adjustments to reconcile profit:
Depreciation expense
2,361,213
Amortization expense
901,608
Expected credit loss (gain)
33,443
Interest expense
738,437
Interest income
(1,075,960)
Dividend income
(133,902)
Share-based payments transactions
422
Shares of (gain) loss of associates and joint ventures accounted for using equity method
(38,329)
Gains on disposal of property, plant and equipment
(1,458,999)
Losses (gains) on disposal of investments accounted for using equity method
47,269
Impairment losses on non-financial assets
550,703
Unrealized foreign exchange (gains) losses
(228,023)
Others
1,401
Total adjustments to reconcile profit
1,699,283
Changes in operating assets and liabilities:
Changes in operating assets:
Decrease (increase) in financial assets at fair value through profit or loss, mandatorily measured at fair
value
107,325
Increase in accounts receivable
(12,291,774)
Increase in other receivables
(79,815)
Increase in inventories
(22,067,263)
Decrease (increase) in other current assets
1,967,814
Total changes in operating assets
(32,363,713)
Changes in operating liabilities:
(Decrease) increase in financial liabilities held for trading
(136,640)
(Decrease) increase in contract liabilities
(262,058)
Increase in accounts payable
11,691,774
Decrease in other payables
(1,124,694)
Increase in other current liabilities
741,515
Decrease in net defined benefit liabilities, non-current
(50,202)
Total changes in operating liabilities
10,859,695
Total changes in operating assets and liabilities
(21,504,018)
Total adjustments
(19,804,735)
Cash (outflow) inflow generated from operations
(12,105,551)
Interest received
1,035,979
Dividends received
133,902
Interest paid
(740,053)
Income taxes paid
(851,177)
Net cash flows (used in) from operating activities
(12,526,900)

2020
10,345,705
2,901,598
951,942
(29,010)
1,054,244
(1,186,629)
(30,069)
1,235
18,318
(4,773,910)
(24,435)
952,222
908,619
(775)
743,350
(409,902)
(3,405,318)
(4,664)
(5,753,543)
(2,711,422)
(12,284,849)
144,351
1,367,153
4,008,134
(54,069)
2,249,990
(47,360)
7,668,199
(4,616,650)
(3,873,300)
6,472,405
926,665
30,069
(974,169)
(2,127,658)
4,327,312

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

〜 8 〜

(English Translation of Consolidated Financial Statements Originally Issued in Chinese) INVENTEC CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS (CONT'D)

For the Years Ended December 31, 2021 and 2020

(Expressed in Thousands of New Taiwan Dollars)

Cash flows (used in) from investing activities: Acquisition of financial assets at fair value through other comprehensive income Acquisition of financial assets at fair value through profit or loss Proceeds from disposal of financial assets at fair value through profit or loss Acquisition of investments accounted for using equity method Proceeds from capital reduction of financial assets at fair value through other comprehensive income Acquisition of property, plant and equipment Proceeds from disposal of property, plant and equipment Acquisition of intangible assets Net cash flows from loss of control of subsidiary Acquisition of investment properties Decrease (increase) in other financial assets Increase in other non-current assets Net cash flows (used in) from investing activities Cash flows from financing activities: Increase in short-term borrowings Proceeds from long-term borrowings Repayments of long-term borrowings Payment of lease liabilities (Decrease) increase in other non-current liabilities Cash dividends paid Net cash flows from financing activities Effect of exchange rate changes on cash and cash equivalents Net increase in cash and cash equivalents Cash and cash equivalents at beginning of period Cash and cash equivalents at end of period	2021 $ (826,499) (833,425) 105,038 (49,668) 4,838 (2,809,391) 2,208,725 (250,596) (8,309) - 172,944 (836,384) (3,122,727) 23,164,212 18,915,930 (17,172,500) (209,820) (187,459) (6,636,829) 17,873,534 (387,590) 1,836,317 32,951,595 $ 34,787,912	2020 (1,258,524) (7,136,355) 10,245,574 - - (2,433,923) 5,821,830 (118,581) (5,710) (345,283) (781,915) (1,177,205) 2,809,908 6,830,904 19,473,486 (14,470,076) (199,245) 175,204 (4,663,718) 7,146,555 (285,147) 13,998,628 18,952,967 32,951,595

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

〜 8-1 〜

(English Translation of Consolidated Financial Statements Originally Issued in Chinese) INVENTEC CORPORATION AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

For the years ended December 31, 2021 and 2020

(Expressed in Thousands of New Taiwan Dollars, Unless Otherwise Specified)

(1) Company History

Inventec Corporation (the “Company”) was organized in 1975. The Company engages primarily in the manufacturing, processing and trading of computers and related products. The Company’ s registered office address is located at No.66 Hougang Street, Shilin District, Taipei City, Taiwan, R.O.C. The shares of the Company became officially listed and traded on the Taiwan Stock Exchange in November 1996.

The consolidated financial statements of the Company as of and for the year ended December 31, 2021 comprised the Company and its subsidiaries (together referred to as the “ Group” and individually as “Group entities”). The Group primarily is involved in the production and sales of computer products and intelligent devices. Please refer to Note 4(b) for details.

(2) Financial Statements Authorization Date and Authorization Process

The consolidated financial statements were authorized for issuance by the Board of Directors on March 15, 2022.

(3) New Standards, Amendments and Interpretations Adopted:

(a) The impact of the International Financial Reporting Standards (“IFRSs”) endorsed by the Financial Supervisory Commission, R.O.C. which have already been adopted.

The Group has initially adopted the following new amendments, which do not have a significant impact on its consolidated financial statements, from January 1, 2021:

●Amendments to IFRS 4 “Extension of the Temporary Exemption from Applying IFRS 9”
●Amendments to IFRS 9, IAS39, IFRS7, IFRS 4 and IFRS 16 “Interest Rate Benchmark Reform— Phase 2”

The Group has initially adopted the following new amendments, which do not have a significant impact on its consolidated financial statements, from April 1, 2021:

●Amendments to IFRS 16 “Covid-19-Related Rent Concessions beyond June 30, 2021”
(b) The impact of IFRS issued by the FSC but not yet effective

The Group assesses that the adoption of the following new amendments, effective for annual period beginning on January 1, 2022, would not have a significant impact on its consolidated financial statements:

－
●Amendments to IAS 16 “Property, Plant and Equipment Proceeds before Intended Use”
－
●Amendments to IAS 37 “Onerous Contracts Cost of Fulfilling a Contract”
●Annual Improvements to IFRS Standards 2018–2020
●Amendments to IFRS 3 “Reference to the Conceptual Framework”

〜 9 〜

(English Translation of Consolidated Financial Statements Originally Issued in Chinese) INVENTEC CORPORATION AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT'D)

For the years ended December 31, 2021 and 2020

(Expressed in Thousands of New Taiwan Dollars, Unless Otherwise Specified)

The Group does not expect the following new and amended standards, which have yet to be endorsed by the FSC, to have a significant impact on its consolidated financial statements:

●Amendments to IFRS 10 and IAS 28 “Sale or Contribution of Assets Between an Investor and Its Associate or Joint Venture”
●IFRS 17 “ Insurance Contracts” and amendments to IFRS 17 “ Insurance Contracts”
●Amendments to IAS 1 “Classification of Liabilities as Current or Non-current”
●Amendments to IAS 1 “Disclosure of Accounting Policies”
●Amendments to IAS 8 “Definition of Accounting Estimates”
●Amendments to IAS 12 “Deferred Tax related to Assets and Liabilities arising from a Single Transaction”

(4) Summary of Significant Accounting Policies

The accompanying consolidated financial statements are the English translation of the Chinese version prepared and used in the Republic of China. If there is any conflict between, or any difference in the interpretation of, the English and Chinese language consolidated financial statements, the Chinese version shall prevail.

The significant accounting policies presented in the consolidated financial statements are summarized below. Except for the explanation of Note3, the following accounting policies were applied consistently throughout the periods presented in the consolidated financial statements.

(a) Statement of compliance

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

(b) Basis of preparation

The consolidated entity, Inventec Solar Energy Corporation, resolved at its Board meeting on December 1, 2021, to file the bankruptcy to the court. The financial statements were prepared on the assumption that the entity was unable to continue as a going concern and did not adopt a going concern accounting basis.

1.Basis of measurement

Except for the following significant accounts, the consolidated financial statements have been prepared on a historical cost basis:

1) Financial instruments at fair value through profit or loss are measured at fair value;

2) Financial assets at fair value through other comprehensive income are measured at fair value;

〜 10 〜

(English Translation of Consolidated Financial Statements Originally Issued in Chinese) INVENTEC CORPORATION AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT'D)

For the years ended December 31, 2021 and 2020

(Expressed in Thousands of New Taiwan Dollars, Unless Otherwise Specified)

3) Cash-settled share-based payment liabilities are measured at fair value;
4) The defined benefit liabilities (assets) are measured at fair value of the plan assets less the present value of the defined benefit obligation, limited as explained in Note 4(r).
2.Functional and presentation currency

The functional currency of each Group entity is determined based on the primary economic environment in which the entity operates. The consolidated financial statements are presented in New Taiwan Dollar, which is the Company’ s functional currency. All financial information presented in New Taiwan Dollar has been rounded to the nearest thousand.

(c) Basis of consolidation
1.Principle of preparation of the consolidated financial statements

The consolidated financial statements comprise the Company and subsidiaries. Subsidiaries are entities controlled by the Group. The Group controls an entity when it is exposed to, or has rights to, variable returns from its involvement with the entity and has the ebility to affect those returns through its power over the entity.

The financial statements of subsidiaries are included in the consolidated financial statements from the date on which control commences until the date on which control ceases. Intra group balances and transactions, and any unrealized income and expenses arising from intra-group transactions, are eliminated in preparing the consolidated financial statements. The Group attributes the profit or loss and each component of other comprehensive income to the owners of the parent and to the non-controlling interests, even if this results in the non-controlling interests having a deficit balance.

The Group prepares consolidated financial statements using uniform accounting policies for like transactions and other events in similar circumstances. Changes in the Group’s ownership interest in a subsidiary that do not result in a loss of control are accounted for as equity transactions. Any difference between the amount by which the non-controlling interests are adjusted and the fair value of the consideration paid or received will be recognized directly in equity, and the Group will attribute it to the owners of the parent.

When the Group loses control over a subsidiary, it derecognizes the assets (including any goodwill) and liabilities of the subsidiary, and any related non-controlling interests and other components of equity. Any interest retained in the former subsidiary is measured at fair value when control is lost, with the resulting gain or loss being recognized in profit or loss. The Group recognizes as gain or loss in profit or loss the difference between (i) the fair value of the consideration received as well as any investment retained in the former subsidiary at its fair value at the date when control is lost; and (ii) the assets (including any goodwill), liabilities of the subsidiary as well as any related non-controlling interests as their carrying amounts at the date when control is lost, as gain or loss in profit or loss. When the Group loses control of its subsidiary, it accounts for all amounts previously recognized in other comprehensive income in relation to that subsidiary on the same basis as would be required if it had directly deposed of the related assets or liabilities.

〜 11 〜

(English Translation of Consolidated Financial Statements Originally Issued in Chinese) INVENTEC CORPORATION AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT'D)

For the years ended December 31, 2021 and 2020

(Expressed in Thousands of New Taiwan Dollars, Unless Otherwise Specified)

2.List of subsidiaries in the consolidated financial statements

Name of Investor	Name of Subsidiary	Principal activity	Shareholding December 31, 2021 December 31, 2020 Note	Shareholding December 31, 2021 December 31, 2020 Note
			December 31, 2021
The Company 〞〞〞〞〞〞〞〞〞 The Company、 Inventec Investments Co., Ltd. and Inventec Appliances Corp. The Company and Inventec Investments Co., Ltd. Inventec Corporation (Hong Kong) Ltd. 〞 Inventec (Cayman) Corp. and Inventec (Pudong) Technology Corp. 〞 Inventec (Cayman) Corp. 〞〞〞〞 Inventec (Cayman) Corp. and IEC (Cayman) Corporation Inventec (Shanghai) Corp. Inventec (Shanghai) Service Co., Ltd. Inventec (Pudong) Technology Corp.	Inventec Corporation (Hong Kong) Ltd. Inventec Holding (North America) Corp. Inventec (Cayman) Corp. IEC (Cayman) Corporation Inventec (Czech), s.r.o. Inventec Development Japan Corporation Inventec Investments Co., Ltd. AIMobile Co., Ltd. Inventec Japan Corporation Inventec Appliances Corp. Inventec Solar Energy Corporation Inventec Manufacturing (India) Private Limited Inventec Electronics (Tianjin) Co., Ltd. Inventec (Beijing) Electronics Technology Co., Ltd. Inventec (Shanghai) Corp. Inventec (Shanghai) Service Co., Ltd. Inventec (Pudong) Corp. Inventec (Pudong) Technology Corp. Inventec Hi-Tech Corp. Inventec Huan Hsin (Zhejiang) Technology Co., Ltd. Inventec (Chongqing) Service Co., Ltd Inventec (Chongqing) Corp. Inventec Asset-Management (Shanghai) Corporation Saint Investment Consulting Corporation SQ Technology (Sanghai) Corporation	Trading Holding Company Holding Company Holding Company Production and sales of computer products Trading Investment company Developing, production and sales of intelligent mobile devices Trading and management services Intelligent device products Sales of solar cells and medical equipment Trading Electronic product software development 〞 Sales of computer products 〞〞 Production and sales of computer products Sales of computer products 〞〞 Production and sales of computer products Leasing Business management Production and sales of computer products	% 100.00 % 100.00 % 100.00 % 100.00 % 100.00 % 100.00 % 100.00 % 73.00 % 100.00 % 100.00 % 47.65 % - % 100.00 % 100.00 % 100.00 % 100.00 % 100.00 % 100.00 % 100.00 % - % 100.00 % 100.00 % 78.00 % 100.00 % 100.00	% 100.00 % 100.00 % 100.00 % 100.00 % 100.00 % 100.00 % 100.00 % 73.00 % 100.00 % 100.00 % 47.65 Inventec Solar Energy Corporation resolved at its Board meeting on December 1, 2021, to file the bankruptcy to the court. As of December 31, 2021, the court has not yet announced the result of the ruling. % 100.00 Inventec Manufacturing (India) Private Limited decided to dismiss on July 7, 2021. It is currently in liquidation process. % 100.00 % 100.00 % 100.00 % 100.00 % 100.00 % 100.00 % 100.00 % 100.00 The cancellation of registration process was completed on January 18, 2021. % 100.00 % 100.00 % 78.00 % 100.00 % - Inventec (Pudong) Technology Corp. invested it on January 6, 2021.

〜 12 〜

(English Translation of Consolidated Financial Statements Originally Issued in Chinese) INVENTEC CORPORATION AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT'D)

For the years ended December 31, 2021 and 2020

(Expressed in Thousands of New Taiwan Dollars, Unless Otherwise Specified)

Name of Investor	Name of Subsidiary	Principal activity	Shareholding December 31, 2021 December 31, 2020 Note	Shareholding December 31, 2021 December 31, 2020 Note
			December 31, 2021
Inventec Holding (North America) Corp. 〞〞〞 Inventec Holding (North America) Corp. and Inventec Distribution (North America) Corporation Inventec Appliances Corp. Inventec Appliances (Cayman) Holding Corp. 〞〞〞〞〞〞〞 Inventec Appliances (Shanghai) Co., Ltd. 〞〞 Inventec Appliances (Pudong) Corp. 〞	Inventec (USA) Corporation Inventec Manufacturing (North America) Corporation Inventec Configuration (North America) Corporation Inventec Distribution (North America) Corporation IEC Technologies, S. de R.L. de C.V. Inventec Appliances (Cayman) Holding Corp. Inventec Appliances (USA) Distribution Corp. Inventec Appliances Corporation USA, Inc. Inventec Appliances (Shanghai) Co., Ltd. Inventec Appliances (Pudong) Corp. Inventec Appliances (Jiangning) Corp. Inventec Appliances (Nanjing) Corp. Inventec Appliances (XI'AN) Corporation Inventec Appliances (Nanchang) Corporation Inventec Appliances (Shanghai) Enterprise Co., Ltd. APEX Business Management & Consulting (Shanghai) Co., Ltd. Inventec Appliances (Nanchang) Intelligent Manufacturing Co., Ltd. Inventec Appliances (Malaysia) SDN. BHD. Inventec Easy Doctor Corporation	Services of computer products 〞 Production and sales of computer products 〞 Production and sales of computer products Holding Company Marketing promotion Sales service Development of intelligent devices Production and sales of intelligent devices 〞〞 House leasing Development of intelligent devices Business management 〞 Production and sales of intelligent devices 〞 Production and sales of medical devices	% 100.00 % 100.00 % 100.00 % 100.00 % 100.00 % 100.00 % 100.00 % 100.00 % 100.00 % 100.00 % 100.00 % 100.00 % 100.00 % 100.00 % 100.00 % 100.00 % 100.00 % 100.00 % 100.00	% 100.00 % 100.00 % 100.00 % 100.00 % 100.00 % 100.00 % 100.00 % 100.00 % 100.00 % 100.00 % 100.00 % 100.00 % 100.00 % 100.00 % 100.00 % 100.00 % 100.00 % 100.00 % - Inventec Easy Doctor Corporation was established on July 1, 2021.

3.Subsidiaries excluded from the consolidated financial statements: None.
(d) Foreign currencies
1.Foreign currency transactions

Transactions in foreign currencies are translated into the respective functional currencies of Group entities at the exchange rates at the dates of the transactions. At the end of each subsequent reporting period, monetary items denominated in foreign currencies are translated into the functional currencies using the exchange rate at that date. Non-monetary items denominated in foreign currencies that are measured at fair value are translated into the functional currencies using the exchange rate at the date that the fair value was determined. Nonmonetary items denominated in foreign currencies that are measured based on historical cost are translated using the exchange rate at the date of the transaction.

Exchange differences are generally recognized in profit or loss except for an investment in equity securities designed as at fair value through other comprehensive income, which is recognized in other comprehensive income.

〜 13 〜

(English Translation of Consolidated Financial Statements Originally Issued in Chinese) INVENTEC CORPORATION AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT'D)

For the years ended December 31, 2021 and 2020

(Expressed in Thousands of New Taiwan Dollars, Unless Otherwise Specified)

2.Foreign operations

The assets and liabilities of foreign operations, including goodwill and fair value adjustments arising on acquisition, are translated into the presentation currency at the exchange rates at the reporting date. The income and expenses of foreign operations are translated into the presentation currency at the average exchange rate. Exchange differences are recognized in other comprehensive income.

When a foreign operation is disposed of such that control, significant influence, or joint control is lost, the cumulative amount in the translation reserve related to that foreign operation is reclassified to profit or loss as part of the gain or loss on disposal. When the Group disposes of only part of its interest in a subsidiary that includes a foreign operation while retaining control, the relevant proportion of the cumulative amount is reattributed to non controlling interests. When the Group disposes of only part of its investment in an associate or joint venture that includes a foreign operation while retaining significant influence or joint control, the relevant proportion of the cumulative amount is reclassified to profit or loss.

When the settlement of a monetary receivable from or payable to a foreign operation is neither planned nor likely to occur in the foreseeable future, exchange differences arising from such a monetary item that are considered to form part of the net investment in the foreign operation are recognized in other comprehensive income.

(e) Classification of current and non-current assets and liabilities

An asset is classified as current under one of the following criteria, and all other assets are classified as non-current.

It is expected to be realized, or intended to be sold or consumed, in the normal operating cycle;
It is held primarily for the purpose of trading;
It is expected to be realized within twelve months after the reporting period; or
The asset is cash or a cash equivalent (as defined in IAS 7) unless the asset is restricted from being exchanged or used to settle a liability for at least twelve months after the reporting period.

A liability is classified as current under one of the following criteria, and all other liabilities are classified as non-current.

An entity shall classify a liability as current when:

It is expected to be settled in the normal operating cycle;
It is held primarily for the purpose of trading;
It is due to be settled within twelve months after the reporting period; or
The Group does not have an unconditional right to defer settlement of the liability for at least twelve months after the reporting period. Terms of a liability that could, at the option of the counterparty, result in its settlement by issuing equity instruments do not affect its classification.

〜 14 〜

(English Translation of Consolidated Financial Statements Originally Issued in Chinese) INVENTEC CORPORATION AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT'D)

For the years ended December 31, 2021 and 2020

(Expressed in Thousands of New Taiwan Dollars, Unless Otherwise Specified)

(f) Cash and cash equivalents

Cash comprises cash on had and demand deposits. Cash equipments are short term, highly liquid investments that are readily convertible to known amounts of cash and are subject to an insignificant risk of changes in value. Time deposits which meet the above definition and are held for the purpose of meeting short term cash commitments rather than for investment or other purposes should be recognized as cash equivalents.

(g) Financial instruments

Trade receivables are initially recognized when they are originated. All other financial assets and financial liabilities are initially recognized when the Group becomes a party to the contractual provisions of the instrument. A financial asset or financial liability is initially measured at fair value plus, for an item not at fair value through profit or loss (FVTPL), transaction costs that are directly attributable to its acquisition or issue.

1.Financial assets

All regular way purchases or sales of financial assets are recognized and derecognized on a trade date basis.

On initial recognition, a financial asset is classified as measured at: amortized cost; Fair value through other comprehensive income (FVOCI) equity investment; or FVTPL. Financial assets are not reclassified subsequent to their initial recognition unless the Group changes its business model for managing financial assets, in which case all affected financial assets are reclassified on the first day of the first reporting period following the change in the business model.

1) Financial assets measured at amortized cost

A financial asset is measured at amortized cost if it meets both of the following conditions and is not designated as at FVTPL:

‧it is held within a business model whose objective is to hold assets to collect contractual cash flows; and
‧ its contractual terms give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

These assets are subsequently measured at amortized cost, which is the amount at which the financial asset is measured at initial recognition, plus/minus, the cumulative amortization using the effective interest method, adjusted for any loss allowance. Interest income, foreign exchange gains and losses, as well as impairment, are recognized in profit or loss. Any gain or loss on derecognition is recognized in profit or loss.

2) Fair value through other comprehensive income (FVOCI)

Some trade receivables are held within a business model whose objective is achieved by both collecting contractual cash flows and selling by the Group; therefore, those receivables are measured at FVOCI. However, they are included in the ‘trade receivables’ line item.

〜 15 〜

(English Translation of Consolidated Financial Statements Originally Issued in Chinese) INVENTEC CORPORATION AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT'D)

For the years ended December 31, 2021 and 2020

(Expressed in Thousands of New Taiwan Dollars, Unless Otherwise Specified)

On initial recognition of an equity investment that is not held for trading, the Group may irrevocably elect to present subsequent changes in the investment’ s fair value in other comprehensive income. This election is made on an instrument-by-instrument basis.

Equity investments at FVOCI are subsequently measured at fair value. Dividends are recognized as income in profit or loss unless the dividend clearly represents a recovery of part of the cost of the investment. Other net gains and losses are recognized in other comprehensive income and are never reclassified to profit or loss.

Dividend income is recognized in profit or loss on the date on which the Group’ s right to receive payment is established.

3) Fair value through profit or loss (FVTPL)

All financial assets not classified as amortized cost or FVOCI described as above are measured at FVTPL, including derivative financial assets. On initial recognition, the Group may irrevocably designate a financial asset, which meets the requirements to be measured at amortized cost or at FVOCI, as at FVTPL if doing so eliminates or significantly reduces an accounting mismatch that would otherwise arise.

These assets are subsequently measured at fair value. Net gains and losses, including any interest or dividend income, are recognized in profit or loss.

4) Impairment of financial assets

The Group recognizes loss allowances for expected credit losses (ECL) on financial assets measured at amortized cost (including cash and cash equivalents, amortized costs, notes and trade receivables, other receivable, leases receivable, guarantee deposit paid and other financial assets), debt investments measured at FVOCI and contract assets.

The Group measures loss allowances at an amount equal to lifetime ECL, except for the following which are measured as 12-month ECL:

‧debt securities that are determined to have low credit risk at the reporting date; and
‧other debt securities and bank balances for which credit risk (i.e. the risk of default occurring over the expected life of the financial instrument) has not increased significantly since initial recognition.

Loss allowance for trade receivables and contract assets are always measured at an amount equal to lifetime ECL.

When determining whether the credit risk of a financial asset has increased significantly since initial recognition and when estimating ECL, the Group considers reasonable and supportable information that is relevant and available without undue cost or effort. This includes both quantitative and qualitative information and analysis based on the Group’s historical experience and informed credit assessment as well as forward-looking information.

The Group assumes that the credit risk on a financial asset has increased significantly if it is more than 90 days past due.

〜 16 〜

(English Translation of Consolidated Financial Statements Originally Issued in Chinese) INVENTEC CORPORATION AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT'D)

For the years ended December 31, 2021 and 2020

(Expressed in Thousands of New Taiwan Dollars, Unless Otherwise Specified)

The Group considers a financial asset to be in default when the financial asset is more than year past due or the debtor is unlikely to pay its credit obligations to the Group in full.

Lifetime ECL are the ECL that result from all possible default events over the expected life of a financial instrument.

12-month ECL are the portion of ECL that result from default events that are possible within the 12 month after the reporting date (or a shorter period if the expected life of the instrument is less than 12 months).

The maximum period considered when estimating ECL is the maximum contractual period over which the Group is exposed to credit risk.

ECL are a probability-weighted estimate of credit losses. Credit losses are measured as the present value of all cash shortfalls (i.e the difference between the cash flows due to the Group in accordance with the contract and the cash flows that the Group expects to receive). ECL are discounted at the effective interest rate of the financial asset.

At each reporting date, the Group assesses whether financial assets carried at amortized cost and debt securities at FVOCI are credit-impaired. A financial asset is ‘credit-impaired’ when one or more events that have a detrimental impact on the estimated future cash flows of the financial asset have occurred. Evidence that a financial assets is credit-impaired includes the following observable data:

‧significant financial difficulty of the borrower or issuer;

‧a breach of contract such as a default or being more than 1 year past due;
‧ the lender of the borrower, for economic or contractual reasons relating to the borrower's financial difficulty, having granted to the borrower a concession that the lender would not otherwise consider;
‧it is probable that the borrower will enter bankruptcy or other financial reorganization;or
‧the disappearance of an active market for a security because of financial difficulties.

Loss allowances for financial assets measured at amortized cost are deducted from the gross carrying amount of the assets. For debt securities at FVOCI, the loss allowance is charge to profit or loss and is recognized in other comprehensive income instead of reducing the carrying amount of the asset.

The gross carrying amount of a financial asset is written off either partially or in full to the extent that there is no realistic prospect of recovery. This is generally the case when the Group determines that the debtor does not have assets or sources of income that could generate sufficient cash flows to repay the amounts subject to the write off. However, financial assets that are written off could still be subject to enforcement activities in order to comply with the Group’s procedures for recovery of amounts due.

〜 17 〜

(English Translation of Consolidated Financial Statements Originally Issued in Chinese) INVENTEC CORPORATION AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT'D)

For the years ended December 31, 2021 and 2020

(Expressed in Thousands of New Taiwan Dollars, Unless Otherwise Specified)

5) Derecognition of financial assets

The Group derecognizes a financial asset when the contractual rights to the cash flows from the financial asset expire, or it transfers the rights to receive the contractual cash flows in a transaction in which substantially all of the risks and rewards of ownership of the financial asset are transferred or in which the Group neither transfers nor retains substantially all of the risks and rewards of ownership and it does not retain control of the financial asset.

The Group enters into transactions whereby it transfers assets recognized in its statement of balance sheet, but retains either all or substantially all of the risks and rewards of the transferred assets. In these cases, the transferred assets are not derecognized.

2.Financial liabilities and equity instruments
1) Classification of debt or equity

Debt and equity instruments issued by the Group are classified as financial liabilities or equity in accordance with the substance of the contractual arrangements and the definitions of a financial liability and an equity instrument.

2) Equity instrument

An equity instrument is any contract that evidences residual interest in the assets of an entity after deducting all of its liabilities. Equity instruments issued are recognized as the amount of consideration received, less the direct cost of issuing.

3) Financial liabilities

Financial liabilities are classified as measured at amortized cost or FVTPL. A financial liability is classified as at FVTPL if it is classified as held-for-trading, it is a derivative or it is designated as such on initial recognition. Financial liabilities at FVTPL are measured at fair value and net gains and losses, including any interest expense, are recognized in profit or loss.

Other financial liabilities are subsequently measured at amortized cost using the effective interest method. Interest expense and foreign exchange gains and losses are recognized in profit or loss. Any gain or loss on derecognition is also recognized in profit or loss.

4) Derecognition of financial liabilities

The Group derecognizes a financial liability when its contractual obligations are discharged or cancelled, or expire. The Group also derecognizes a financial liability when its terms are modified and the cash flows of the modified liability are substantially different, in which case a new financial liability based on the modified terms is recognized at fair value.

On derecognition of a financial liability, the difference between the carrying amount of a financial liability extinguished and the consideration paid (including any non-cash assets transferred or liabilities assumed) is recognized in profit or loss.

〜 18 〜

(English Translation of Consolidated Financial Statements Originally Issued in Chinese) INVENTEC CORPORATION AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT'D)

For the years ended December 31, 2021 and 2020

(Expressed in Thousands of New Taiwan Dollars, Unless Otherwise Specified)

5) Offsetting of financial assets and liabilities

Financial assets and financial liabilities are offset and the net amount presented in the statement of balance sheet when, and only when, the Group currently has a legally enforceable right to set off the amounts and it intends either to settle them on a net basis or to realize the asset and settle the liability simultaneously.

(h) Inventories

Inventories are measured at the lower of cost and net realizable value. The cost of inventories is based on the weighted average method, and includes expenditure incurred in acquiring the inventories, production or conversion costs and other costs incurred in bringing them to their present location and condition. In the case of manufactured inventories and work in progress, cost includes an appropriate share of production overheads based on normal operating capacity.

Net realizable value is the estimated selling price in the ordinary course of business, less the estimated costs of completion and selling expenses.

(i) Investment in associates

Associates are those entities in which the Group has significant influence, but not control or jointly control, over the financial and operating policies.

Investments in associates are accounted for using the equity method and are recognized initially at cost. The cost of the investment includes transaction costs. The carrying amount of the investment in associates includes goodwill arising from the acquisition less any accumulated impairment losses.

The consolidated financial statements include the Group’ s share of the profit or loss and other comprehensive income of those associates, after adjustments to align the accounting policies with those of the Group, from the date on which significant influence commences until the date on which significant influence ceases. The Group recognizes any changes of its proportionate share in the investee within capital surplus, when an associate’s equity changes due to reasons other than profit and loss or comprehensive income, which did not result in changes in actual significant influence.

Gains and losses resulting from the transactions between the Group and an associate are recognized only to the extent of unrelated Group’s interest in the associate.

When the Group’ s share of losses of an associate equals or exceeds its interest in associates, it discontinues recognizing its share of further losses. After the recognized interest is reduced to zero, additional losses are provided for, and a liability is recognized, only to the extend that the Group has incurred legal or constructive obligations or made payments on behalf of the associate.

The Group discontinues the use of equity method and measures the retained interest at fair value from the date when its investment ceases to be an associate. The difference between the fair value of retained interest and proceeds from disposing and the carrying amount of the investment at the date the equity method that was discontinued is recognized in profit or loss. The Group accounts for all the amounts previously recognized in other comprehensive income in relation to that investment on the same basis as would have been required if the investee had directly disposed of the related assets or liabilities. If a gain or loss previously recognized in other comprehensive income would be

〜 19 〜

(English Translation of Consolidated Financial Statements Originally Issued in Chinese) INVENTEC CORPORATION AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT'D)

For the years ended December 31, 2021 and 2020

(Expressed in Thousands of New Taiwan Dollars, Unless Otherwise Specified)

reclassified to profit or loss (or retained earnings) on the disposal of the related assets or liabilities, the Group reclassifies the gain or loss from equity to profit or loss (or retained earnings) (as a reclassification adjustment) when the equity method is discontinued. If the Group's ownership interest in an associate or a joint venture is reduced, while the entity continues to apply the equity method, the Group reclassifies the proportion of the gain or loss, that had previously been recognized in other comprehensive income relating to that reduction in ownership interest, to profit or loss.

If an investment in an associate becomes an investment in a joint venture or an investment in a joint venture becomes an investment in an associate, the Group shall continue to apply the equity method without remeasuring the retained interest.

When the Group subscribes to additional shares in an associate at a percentage different from its existing ownership percentage, the resulting carrying amount of the investment will differ from the amount of the Group’s proportionate interest in the net assets of the associate. The Group records such a difference as an adjustment to investments with the corresponding amount charged or credited to capital surplus. The aforesaid adjustment should first be adjusted under additional paid-in capital. If the additional paid-in capital resulting from changes in ownership interest is not sufficient, the remaining difference is debited to retained earnings. If the Group’s ownership interest is reduced due to the additional subscription to the shares of associate by other investors, the proportionate amount of the gains or losses previously recognized in other comprehensive income in relation to that associate will be reclassified to profit or loss on the same basis as would be required if the associate had directly disposed of the related assets or liabilities.

(j) Property, plant, and equipment
1.Recognition and measurement

Items of property, plant and equipment are measured at cost, which includes capitalized borrowing costs, less accumulated depreciation and any accumulated impairment losses.

If significant parts of an item of property, plant and equipment have different useful lives, they are accounted for as separate items (major components) of property, plant and equipment.

Any gain or loss on disposal of an item of property, plant and equipment is recognized in profit or loss.

2.Subsequent expenditure

Subsequent expenditure is capitalized only if it is probable that the future economic benefits associated with the expenditure will flow to the Group.

3.Depreciation

Depreciation is calculated on the cost of an asset less its residual value and is recognized in profit or loss on a straightline basis over the estimated useful lives of each component of an item of property, plant and equipment.

Land is not depreciated.

〜 20 〜

(English Translation of Consolidated Financial Statements Originally Issued in Chinese) INVENTEC CORPORATION AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT'D)

For the years ended December 31, 2021 and 2020

(Expressed in Thousands of New Taiwan Dollars, Unless Otherwise Specified)

The estimated useful lives of property, plant and equipment for current and comparative periods are as follows:

are as follows:
Buildings	10 ~ 50years
Machinery	2 ~ 11years
Transportation equipment	3 ~ 6years
Furniture and office facilities	2 ~ 14years
Power equipment	2 ~ 16years
Renovation and leasehold improvements	2 ~ 20years
Miscellaneous equipment	2 ~ 16years

Depreciation methods, useful lives and residual values are reviewed at each reporting date and adjusted if appropriate.

(k) Investment property

Investment property is a property held either to earn rental income or for capital appreciation or for both, but not for sale in the ordinary course of business, use in the production or supply of goods or services or for administrative purposes. Investment property is measured at cost on initial recognition and subsequently at cost less accumulated depreciation and accumulated impairment losses. Depreciation expense is calculated based on the depreciation method, useful life, and residual value which are the same as those adopted for property, plant and equipment.

Any gain or loss on disposal of an investment property (calculated as the difference between the net proceeds from disposal and its carrying amount) is recognized in profit or loss.

When investment property is reclassified to the property, plant and equipment due to change of use, reclassified at the carrying value at the time of change of use.

The estimated useful lives of investment property for current and comparative are as follows:

Buildings 25years
(l) Leases

At inception of a contract, the Group assesses whether a contract is, or contains a lease. A contract is, or contains, a lease if the contract conveys the right to control the use of an identified assets for a period of time in exchange for consideration.

1.As a leasee

The Group recognizes a right-of-use asset and a lease liability at the lease commencement date. The right-of-use asset is initially measured at cost, which comprises the initial amount of the lease liability adjusted for any lease payments made at or before the commencement date, plus any initial direct costs incurred and an estimate of costs to dismantle and remove the underlying asset or to restore the underlying asset or the site on which it is located, less any lease incentives received.

The right-of-use asset is subsequently depreciated using the straight-line method from the commencement date to the earlier of the end of the useful life of the right-of-use asset or the end of the lease term. In addition, the right-of-use asset is periodically reduced by impairment losses, if any, and adjusted for certain remeasurements of the lease liability.

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(English Translation of Consolidated Financial Statements Originally Issued in Chinese) INVENTEC CORPORATION AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT'D)

For the years ended December 31, 2021 and 2020

(Expressed in Thousands of New Taiwan Dollars, Unless Otherwise Specified)

The lease liability is initially measured at the present value of the lease payments that are not paid at the commencement date, discounted using the interest rate implicit in the lease or, if that rate cannot be reliably determined, the Group’s incremental borrowing rate. Generally, the Group uses its incremental borrowing rate as the discount rate.

Lease payments included in the measurement of the lease liability comprise the following:

1) Fixed payments, including in-substance fixed payment;
2) Variable lease payments that depend on an index or a rate, initially measured using the index or rate as at the commencement date;
3) Amounts expected to be payable under a residual value guarantee; and
4) Payments for purchase or termination options that are reasonably certain to be exercised.

The lease liability is measured at amortized cost using the effective interest method. It is remeasured when:

1) there is a change in future lease payments arising from the change in an index or rate; or
2) there is a change in the Group’s estimate of the amount expected to be payable under a residual value guarantee; or
3) there is a change in the lease term resulting from a change of its assessment on whether it will exercise an option to purchase the underlying asset; or
4) there is a change of its assessment on whether it will exercise a purchase, extension or termination option; or
5) there is any lease modifications.

When the lease liability is remeasured, other than lease modifications, a corresponding adjustment is made to the carrying amount of the right-of-use asset, or in profit and loss if the carrying amount of the right-of-use asset has been reduced to zero.

When the lease liability is remeasured to reflect the partial or full termination of the lease for lease modifications that decrease the scope of the lease, the Group accounts for the remeasurement of the lease liability by decreasing the carrying amount of the right-of-use asset to reflect the partial or full termination of the lease, and recognize in profit or loss any gain or loss relating to the partial or full termination of the lease.

The Group presents right-of-use assets that do not meet the definition of investment and lease liabilities as a separate line item respectively in the statement of financial position.

The Group has elected not to recognize right-of-use assets and lease liabilities for short-term leases of housing, transportation, and other equipment that have a lease term of 12 months or less and leases of low-value assets. The Group recognizes the lease payments associated with these leases as an expense on a straight-line basis over the lease term.

〜 22 〜

(English Translation of Consolidated Financial Statements Originally Issued in Chinese) INVENTEC CORPORATION AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT'D)

For the years ended December 31, 2021 and 2020

(Expressed in Thousands of New Taiwan Dollars, Unless Otherwise Specified)

As a practical expedient, the Group elects not to assess whether all rent concessions that meets all the following conditions are lease modifications or not:

1) the rent concessions occurring as a direct consequence of the COVID-19 pandemic;
2) the change in lease payments that resulted in revised consideration for the lease that is substantially the same as, or less than, the consideration for the lease immediately preceding the change;
3) any reduction in lease payments that affects only those payments originally due on, or before, June 30, 2021; and
4) there is no substantive change in other terms and conditions of the lease.

In accordance with the practical expedient, the effect of the change in the lease liability is reflected in profit or loss in the period in which the event or condition that triggers the rent concession occurs.

2.As a lessor

When the Group acts as a lessor, it determines at lease commencement whether each lease is a finance lease or an operating lease. To classify each lease, the Group makes an overall assessment of whether the lease transfers to the lessee substantially all of the risks and rewards of ownership incidental to ownership of the underlying asset. If this is the case, then the lease is a finance lease; if not, then the lease is an operating lease. As part of this assessment, the Group considers certain indicators such as whether the lease is for the major part of the economic life of the asset.

(m) Intangible assets
1.Recognition and measurement

Goodwill arising on the acquisition of subsidiaries is measured at cost, less accumulated impairment losses.

Expenditure on research activities is recognized in profit or loss as incurred.

Development expenditure is capitalized only if the expenditure can be measured reliably, the product or process is technically and commercially feasible, future economic benefits are probable and the Group intends to, and has sufficient resources to, complete development and to use or sell the asset. Otherwise, it is recognized in profit or loss as incurred. Subsequent to initial recognition, development expenditure is measured at cost, less accumulated amortization and any accumulated impairment losses.

Other intangible assets that are acquired by the Group and have finite useful lives are measured at cost less accumulated amortization and any accumulated impairment losses.

2.Subsequent expenditure

Subsequent expenditure is capitalized only when it increases the future economic benefits embodied in the specific asset to which it relates. All other expenditure, including expenditure on internally generated goodwill and brands, is recognized in profit or loss as incurred.

〜 23 〜

(English Translation of Consolidated Financial Statements Originally Issued in Chinese) INVENTEC CORPORATION AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT'D) For the years ended December 31, 2021 and 2020

(Expressed in Thousands of New Taiwan Dollars, Unless Otherwise Specified)

3.Amortization

Amortization is calculated over the cost of the asset, less its residual value, and is recognized in profit or loss on a straight-line basis over the estimated useful lives of intangible assets, other than goodwill, from the date that they are available for use.

The estimated useful lives for current and comparative periods are as follows:

1) Trademark rights 10 years 2) Computer software cost 1 years~ 6 years

Amortization methods, useful lives and residual values are reviewed at each reporting date and adjusted if appropriate.

(n) Impairment of non-financial assets

At each reporting date, the Group reviews the carrying amounts of its non-financial assets (other than inventories, contract assets, deferred tax assets and investment properties and biological assets, measured at fair value, less costs) to determine whether there is any indication of impairment. If any such indication exists, then the asset’s recoverable amount is estimated. Goodwill is tested annually for impairment.

For impairment testing, assets are grouped together into the smallest group of assets that generates cash inflows from continuing use that are largely independent of the cash inflows of other assets or CGUs. Goodwill arising from a business combination is allocated to CGUs or groups of CGUs that are expected to benefit from the synergies of the combination.

The recoverable amount of an asset or CGU is the greater of its value in use and its fair value less costs to sell. Value in use is based on the estimated future cash flows, discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset or CGU.

An impairment loss is recognized if the carrying amount of an asset or CGU exceeds its recoverable amount.

Impairment losses are recognized in profit or loss. They are allocated first to reduce the carrying amount of any goodwill allocated to the CGU, and then to reduce the carrying amounts of the other assets in the CGU on a pro rata basis.

An impairment loss in respect of goodwill is not reversed. For other assets, an impairment loss is reversed only to the extent that the asset’s carrying amount does not exceed the carrying amount that would have been determined, net of depreciation or amortization, if no impairment loss had been recognized.

(o) Provisions

A provision is recognized if, as a result of a past event, the Group has a present obligation that can be estimated reliably, and it is probably that an outflow of economic benefits will be required to settle the obligation. Provisions are determined by discounting the expected future cash flows at a pre-tax rate that reflects the current market assessments of the time value of money and the risks specific to the liability. The unwinding of the discount is recognized as finance cost.

〜 24 〜

(English Translation of Consolidated Financial Statements Originally Issued in Chinese) INVENTEC CORPORATION AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT'D)

For the years ended December 31, 2021 and 2020

(Expressed in Thousands of New Taiwan Dollars, Unless Otherwise Specified)

1.Warranties

A provision for warranties is recognized when the underlying products or services are sold, based on historical warranty data and a weighting of all possible outcomes against their associated probabilities.

2.Onerous contracts

A provision for onerous contracts is recognized when the expected benefits to be derived by the Group from a contract are lower than the unavoidable cost of meeting its obligations under the contract. The provision is measured at the present value of the lower of the expected cost of terminating the contract and the expected net cost of continuing with the contract. Before a provision is established, the Group recognizes any impairment loss on the assets associated with that contract.

3.The Group has periodically assessed the obligation of all litigation and claims and relative legal costs based on historical experience. If settling present obligation is probable and the amount can be reasonably estimated, the Group recognizes a provision for legal claims.
(p) Revenue from contracts with customers

Revenue is measured based on the consideration to which the Group expects to be entitled in exchange for transferring goods or services to a customer. The Group recognizes revenue when it satisfies a performance obligation by transferring control of a good or a service to a customer. The accounting policies for the Group’s main types of revenue are explained below.

1.Sale of goods

The Group recognizes revenue when control of the products has transferred, being when the products are delivered to the customer, the customer has full discretion over the channel and price to sell the products, and there is no unfulfilled obligation that could affect the customer’ s acceptance of the products. Delivery occurs when the products have been shipped to the specific location, the risks of obsolescence and loss have been transferred to the customer, and either the customer has accepted the products in accordance with the sales contract, the acceptance provisions have lapsed, or the Group has objective evidence that all criteria for acceptance have been satisfied.

A receivable is recognized when the goods are delivered as this is the point in time that the Group has a right to an amount of consideration that is unconditional.

2.Consulting services and Management services

The Group provides advisory and management services. Revenue from providing services is recognized in the accounting period in which the services are rendered. For fixed-price contracts, revenue is recognized based on the actual service provided to the end of the reporting period as a proportion of the total services to be provided. The proportion of services provided is determined based on the costs incurred to date as a proportion of the total estimated costs of the transaction.

〜 25 〜

(English Translation of Consolidated Financial Statements Originally Issued in Chinese) INVENTEC CORPORATION AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT'D)

For the years ended December 31, 2021 and 2020

(Expressed in Thousands of New Taiwan Dollars, Unless Otherwise Specified)

3.Financing components

The Group does not expect to have any contracts where the period between the transfer of the promised goods or services to the customer and payment by the customer exceeds one year. As a consequence, the group does not adjust any of the transaction prices for the time value of money.

(q) Employee benefits

1.Defined contribution plans

Obligations for contributions to defined contribution plans are expensed as the related service is provided.

2.Defined benefit plans

The Group’s net obligation in respect of defined benefit plans is calculated separately for each the plan by estimating the amount of future benefit that employees have earned in the current and prior periods, discounting that amount and deducting the fair value of any plan assets.

The calculation of defined benefit obligations is performed annually by a qualified actuary using the projected unit credit method. When the calculation results in a potential asset for the Group, the recognized asset is limited to the present value of economic benefits available in the form of any future refunds from the plan or reductions in future contributions to the plan. To calculate the present value of economic benefits, consideration is given to any applicable minimum funding requirements.

Remeasurements of the net defined benefit liability, which comprise actuarial gains and losses, the return on plan assets (excluding interest) and the effect of the asset ceiling (if any, excluding interest), are recognized immediately in other comprehensive income, and accumulated in retained earnings within equity. The Group determines the net interest expense (income) on the net defined benefit liability (asset) for the period by applying the discount rate used to measure the defined benefit obligation at the beginning of the annual period to the then-net defined benefit liability (asset). Net interest expense and other expenses related to defined benefit plans are recognized in profit or loss.

When the benefits of a plan are changed or when a plan is curtailed, the resulting change in benefit that relates to past service or the gain or loss on curtailment is recognized immediately in profit or loss. The Group recognizes gains and losses on the settlement of a defined benefit plan when the settlement occurs.

3.Termination benefits

Termination benefits are expensed at the earlier of when the Group can no longer withdraw the offer of those benefits and when the Group recognizes costs for a restructuring. If benefits are not expected to be settled wholly within 12 months of the reporting date, then they are discounted.

〜 26 〜

(English Translation of Consolidated Financial Statements Originally Issued in Chinese) INVENTEC CORPORATION AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT'D)

For the years ended December 31, 2021 and 2020

(Expressed in Thousands of New Taiwan Dollars, Unless Otherwise Specified)

4.Short-term employee benefits

Short-term employee benefits are expensed as the related service is provided. A liability is recognized for the amount expected to be paid if the Group has a present legal or constructive obligation to pay this amount as a result of past service provided by the employee and the obligation can be estimated reliably.

(r) Share-based payment

The grant-date fair value of equity-settled share-based payment arrangements granted to employees is generally recognized as an expense, with a corresponding increase in equity, over the vesting period of the awards. The amount recognized as an expense is adjusted to reflect the number of awards for which the related service and non-market performance conditions are expected to be met, such that the amount ultimately recognized is based on the number of awards that meet the related service and non-market performance conditions at the vesting date. For share-based payment awards with nonvesting conditions, the grant-date fair value of the share-based payment is measured to reflect such conditions and there is no true-up for differences between expected and actual outcomes.

Grant date of a share-based payment award is the date which the board of directors and the employees have made an agreement on the price and number of the new award.

(s) Income taxes

Income taxes comprise current taxes and deferred taxes. Except for expenses related to business combinations or recognized directly in equity or other comprehensive income, all current and deferred taxes are recognized in profit or loss.

Current taxes comprise the expected tax payables or receivables on the taxable profits (losses) for the year and any adjustment to the tax payable or receivable in respect of previous years. The amount of current tax payables or receivables are the best estimate of the tax amount expected to be paid or received that reflects uncertainty related to income taxes, if any. It is measured using tax rates enacted or substantively enacted at the reporting date.

Deferred taxes arise due to temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and their respective tax bases. Deferred taxes are recognized except for the following:

1.temporary differences on the initial recognition of assets and liabilities in a transaction that is not a business combination and that affects neither accounting nor taxable profits (losses) at the time of the transaction;
2.temporary differences related to investments in subsidiaries, associates and joint arrangements to the extent that the Group is able to control the timing of the reversal of the temporary differences and it is probable that they will not reverse in the foreseeable future; and
3.taxable temporary differences arising on the initial recognition of goodwill.

〜 27 〜

(English Translation of Consolidated Financial Statements Originally Issued in Chinese) INVENTEC CORPORATION AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT'D)

For the years ended December 31, 2021 and 2020

(Expressed in Thousands of New Taiwan Dollars, Unless Otherwise Specified)

Deferred tax assets are recognized for the carry forward of unused tax losses, unused tax credits, and deductible temporary differences to the extent that it is probable that future taxable profits will be available against which they can be utilized. Deferred tax assets are reviewed at each reporting date, and are reduced to the extent that it is no longer probable that the related tax benefits will be realized; such reductions are reversed when the probability of future taxable profits improves.

Deferred taxes are measured at tax rates that are expected to be applied to temporary differences when they reserve, using tax rates enacted or substantively enacted at the reporting date.

Deferred tax assets and liabilities are offset if the following criteria are met:

1.the Group has a legally enforceable right to set off current tax assets against current tax liabilities; and
2.the deferred tax assets and the deferred tax liabilities relate to income taxes levied by the same taxation authority on either:
1) the same taxable entity; or
2) different taxable entities which intend to settle current tax assets and liabilities on a net basis, or to realize the assets and liabilities simultaneously, in each future period in which significant amounts of deferred tax liabilities or assets are expected to be settled or recovered.

(t) Earnings per share

The Group disclose the Company’ s basic and diluted earnings per share attributable to ordinary equity holders of the Company. The calculation of basic earnings per share is based on the profit attributable to the ordinary shareholders of the Company divided by the weighted-average number of ordinary shares outstanding. The calculation of diluted earnings per share is based on the profit attributable to ordinary shareholders of the Company, divided by the weighted-average number of ordinary shares outstanding after adjustment for the effects of all dilutive potential ordinary shares, such as convertible bonds and employee compensation.

(u) Operating segments

An operating segment is a component of the Group that engages in business activities from which it may earn revenues and incur expenses (including revenues and expenses relating to transactions with other components of the Group). Operating results of the operating segment are regularly reviewed by the Group’s chief operating decision maker to make decisions about resources to be allocated to the segment and assess its performance. Each operating segment consists of standalone financial information.

(5) Significant Accounting Assumptions and Judgements, and Major Sources of Estimation

Uncertainty

The preparation of the consolidated financial statements in conformity with the Regulations and the IFRSs endorsed by the FSC requires management to make judgments, estimates, and assumptions that affect the application of the accounting policies and the reported amount of assets, liabilities, income, and expenses. Actual results may differ from these estimates.

〜 28 〜

(English Translation of Consolidated Financial Statements Originally Issued in Chinese) INVENTEC CORPORATION AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT'D)

For the years ended December 31, 2021 and 2020

(Expressed in Thousands of New Taiwan Dollars, Unless Otherwise Specified)

The management continues to monitor the accounting estimates and assumptions. The management recognizes any changes in accounting estimates during the period and the impact of those changes in accounting estimates in the next period.

Information about assumptions and estimation uncertainties that have a significant risk of resulting in a material adjustment to the carrying amounts of assets and liabilities within the next financial year is as follows. Those assumptions and estimation have been updated to reflect the impact of COVID-19 pandemic:

(a) Valuation of inventories

As inventories are stated at the lower of cost or net realizable value, the Group estimates the net realizable value of inventories for obsolescence and unmarketable items at the end of the reporting period and then writes down the cost of inventories to net realizable value. The net realizable value of the inventory is mainly determined based on assumptions as to future demand within a specific time horizon. Due to the rapid industrial transformation, there may be significant changes in the net realizable value of inventories. Refer to note 6(e) for further description of the valuation of inventories.

(b) The value of an entity’s assets without adopting a going concern accounting basis

When the management of the consolidated entity has no intention to continue its operation, it usually disposes of the assets to recover the economic benefit. The entity's assets are assessed and measured based on the recoverable amount; however, the evaluation method involves different assumptions (including orderly transactions, sufficient time to trade, and the expected number of market participants). When the creditors exercise right of claim, the entity's assets are estimated under abnormal market condition as a result of the forced sale or rapid liquidation. The estimated amount will be different from the amount under an orderly transaction with market participants that the entity could collect to sell assets, or need to pay to transfer liabilities, less directly attributable incremental cost of disposing of assets or cash-generating units.

(6) Explanation to Significant Accounts

(a) Cash and cash equivalents

Cash on hand Demand deposits and checking accounts Time deposits Cash and cash equivalents in consolidated statement of cash flows	December 31, 2021 $ 6,113 28,473,081 6,308,718 $ 34,787,912	December 31, 2020
		7,013 27,934,618 5,009,964
		32,951,595

Refer to Note 6(y) for the sensitivity analysis and interest rate risk of the financial assets and liabilities of the Group.

〜 29 〜

(English Translation of Consolidated Financial Statements Originally Issued in Chinese) INVENTEC CORPORATION AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT'D)

For the years ended December 31, 2021 and 2020

(Expressed in Thousands of New Taiwan Dollars, Unless Otherwise Specified)

(b) Financial instruments

1.Financial assets and liabilities at fair value through profit or loss

Financial assets at fair value through profit or loss Derivative instruments not used for hedging Forward exchange contracts Foreign exchange swap Non-derivative financial assets Stocks of listed companies Emerging stock Unquoted financial instruments Unsecured convertible bonds Total Financial liabilities at fair value through profit or loss Held-for-trading financial liabilities Forward exchange contracts Foreign exchange swap Total	December 31, 2021 $ 28,391 163,696 67,540 114,198 1,831,498 32,507 $ 2,237,830 December 31, 2021 $ 109,891 2,242 $ 112,133	December 31, 2020
		13,606 237,568 145,460 232,340 1,033,760 31,210
		1,693,944
		December 31, 2020
		210,598 39,538
		250,136

The Group uses derivative financial instruments to hedge certain foreign exchange and interest risk the Group is exposed to, arising from its operating, financing and investing activities. The following derivative instruments, without the application of hedge accounting, were classified as mandatorily measured at fair value through profit or loss financial assets and held-for-trading financial liabilities:

1) Financial assets:

Foreign exchange swap Forward		December 31, 2021
	Contract Amount (in thousands) USD 814,000 USD 235,000	Currency Maturity Period USD to TWD 2022.01.13~2022.06.17 USD to TWD 2022.02.09~2022.03.29

〜 30 〜

(English Translation of Consolidated Financial Statements Originally Issued in Chinese) INVENTEC CORPORATION AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT'D)

For the years ended December 31, 2021 and 2020

(Expressed in Thousands of New Taiwan Dollars, Unless Otherwise Specified)

Foreign exchange swap Forward		December 31, 2020
	Contract Amount (in thousands) USD 715,000 USD 214,000	Currency Maturity Period USD to TWD 2021.01.07~2021.06.11 USD to TWD 2021.01.06~2021.06.09

2) Financial liabilities:

Foreign exchange swap Forward Foreign exchange swap Forward Forward		December 31, 2021
	Contract Amount (in thousands) USD 45,000 USD 624,000	Currency Maturity Period USD to TWD 2022.03.08~2022.03.14 USD to TWD 2022.01.13~2022.06.17 December 31, 2020
	Contract Amount (in thousands) USD 114,000 USD 615,000 USD 28,306	Currency Maturity Period USD to TWD 2021.01.06~2021.03.25 USD to TWD 2021.01.07~2021.06.11 USD to CNY 2021.07.05

2.Financial assets at fair value through other comprehensive income

Equity investments at fair value through other comprehensive income Stocks of listed companies Stocks of unlisted companies Total	December 31, 2021 $ 1,690,042 4,023,869 $ 5,713,911	December 31, 2020
		1,496,291 3,567,206
		5,063,497

1) Equity investments at fair value through other comprehensive income

The Group designated the investments shown above as equity securities at fair value through other comprehensive income because these equity securities represent those investments that the Group intends to hold for long-term strategic purposes.

WK Technology Fund IV Crop. was liquidated on October 29, 2021. The fair value of the residual property received by the Group was $240, resulting in the Group to realize a loss of $1,373, which was recognized as other comprehensive income, then later on, was reclassified to retained earnings.

〜 31 〜

(English Translation of Consolidated Financial Statements Originally Issued in Chinese) INVENTEC CORPORATION AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT'D)

For the years ended December 31, 2021 and 2020

(Expressed in Thousands of New Taiwan Dollars, Unless Otherwise Specified)

Global Strategic Venture Capital Co., Ltd. was liquidated on November 17, 2020. The fair value of the residual property received by the Group was $14,150, resulting in the Group to realize a loss of $14,200, which was recognized as other comprehensive income, then later on, reclassified to retained earnings.

2) For credit risk and market risk, please refer to note 6(y).

3) As of December 31, 2021, the aforesaid financial assets were not pledged as collateral.

Accounts receivable- non-related parties Accounts receivable- related parties Less: Loss allowance	December 31, 2021 $ 103,899,597 154 (104,130) $ 103,795,621	December 31, 2020 91,807,993 75,749 (72,433) 91,811,309

The Group has assessed a portion of its trade receivables that was held within a business model whose objective is achieved by both collecting contractual cash flows and selling financial assets; therefore, such trade receivables were measured at fair value through other comprehensive income. As of December 31, 2021 and 2020, the amounts of trade receivables measured at fair value through other comprehensive income were $4,004,719 and $2,035,693, respectively.

The Group applies the simplified approach to provide for its expected credit losses, i.e. the use of lifetime expected loss provision for all receivables. To measure the expected credit losses, notes and trade receivables have been grouped based on shared credit risk characteristics and the days past due, as well as incorporated forward looking information. The loss allowance provision was determined as follows:

as follows:
Current 1 to 180 days past due More than 180 days past due	December 31, 2021
	Gross carrying amount $ 102,820,512 1,053,698 25,541 $ 103,899,751	Weighted- average loss rate 0%~0.5% 0.04%~10% 0.04%~100%	Loss allowance provision
			76,184 2,405 25,541
			104,130

As of February 28, 2022, the amount received in subsequent period by the Group is $69,609,212.

〜 32 〜

(English Translation of Consolidated Financial Statements Originally Issued in Chinese) INVENTEC CORPORATION AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT'D)

For the years ended December 31, 2021 and 2020

(Expressed in Thousands of New Taiwan Dollars, Unless Otherwise Specified)

December 31, 2020	December 31, 2020
Gross carrying amount $ 90,849,182 1,031,417 3,143 $ 91,883,742	Weighted- average loss rate 0%~0.5% 0.04%~10% 0.04%~100%	Loss allowance provision
		57,719 11,802 2,912
		72,433

The movement in the allowance for notes and trade receivable was as follows:

Balance at January 1 Impairment losses recognized (reversed) Amounts written off Foreign exchange (losses) gains Balance at December 31	For the years ended December 31,	For the years ended December 31,
	2021 $ 72,433 33,783 (424) (1,662) $ 104,130	2020
		102,855 (29,537) (986) 101
		72,433

The allowance for impairment account is used to record bad debt expenses. If the Group believes that it may not be able to collect the receivables. The accumulated impairment was used to offset the receivables when it is certain they are unrecoverable, after related legal actions were taken by the Group.

As of December 31, 2021, and 2020, none of the receivables above are pledged as collateral for loans and borrowings.

As of December 31, 2021, and 2020, the Group sold its accounts receivable without recourse as follows:

(Unit: Foreign currency/TWD in Thousands)

		December 31, 2021	December 31, 2021
Purchaser	Amount Derecognized	Amount Advanced Unpaid Paid USD 1,822 Note USD1,323,195	Amount Recognized in other Receivable -	Range of Significant Transferring Interest Rate Terms 0.86%~1.38% The accounts receivable factoring is without recourse but the seller still bears the risks except for eligible obligor’s insolvency.
		Unpaid USD 1,822 Note USD
Non-related parties	$ 36,612,816

〜 33 〜

(English Translation of Consolidated Financial Statements Originally Issued in Chinese) INVENTEC CORPORATION AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT'D)

For the years ended December 31, 2021 and 2020

(Expressed in Thousands of New Taiwan Dollars, Unless Otherwise Specified)

		December 31, 2020	December 31, 2020
Purchaser	Amount Derecognized	Amount Advanced Unpaid Paid USD 153,413 Note USD 937,252	Amount Recognized in other Receivable -	Range of Significant Transferring Interest Rate Terms 0.99%~1.45% The accounts receivable factoring is without recourse but the seller still bears the risks except for eligible obligor’s insolvency.
Non-related parties	$ 26,692,929

Note: The amount advanced unpaid of subsidiaries which means that the purchaser has the right to make factoring transactions with the Group based on the amount allocated by the client under factoring agreement.

(d) Other receivables

Other accounts receivable－related parties Other accounts receivable－non-related parties	December 31, 2021 $ 2,471 881,627 $ 884,098	December 31, 2020
		66 844,375
		844,441

(e) Inventories

Raw materials and consumables Work in process Finished goods Materials and supplies in transit	December 31, 2021 $ 48,722,163 5,824,908 6,547,660 1,322,625 $ 62,417,356	December 31, 2020
		28,128,939 6,541,004 5,518,187 1,228,193
		41,416,323

For the years ended December 31, 2021 and 2020, the write-up of inventories amounted to $392,358 and $204,495, respectively. When the factor causing the net realized value to be lower than the cost is disappeared due to obsolescence or disposal, the increase of the net realizable value is recognized in deduction of operating cost. For the years ended December 31, 2021 and 2020, expenses of idle capacity amounted to $137,923 and $177,928, respectively.

As of December 31, 2021, and 2020, the aforesaid inventories were not pledged as collateral.

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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT'D)

For the years ended December 31, 2021 and 2020

(Expressed in Thousands of New Taiwan Dollars, Unless Otherwise Specified)

(f) Investments accounted for using equity method

The components of investments accounted for using equity method at the reporting date were as follows:

follows:
Associates	December 31, 2021 $ 300,127	December 31, 2020
		211,643

1.Associate

The Group’ s financial information for investments in individually insignificant associates accounted for using equity method at the reporting date was as follows. These financial information are included in the consolidated financial statements.

Individually insignificant associates The Group’s share of profit (loss) of the associates Loss from continuing operations Other comprehensive income Total comprehensive income	December 31, 2021 December 31, 2020 $ 300,127 211,643 For the years ended December 31,	December 31, 2020
		211,643
	2021 $ 38,329 403 $ 38,732	2020
		(18,318) (17,285)
		(35,603)

As of December 31, 2021 and 2020, the Group’s investments under equity method has not been pledged as collaterals.

2.Judgment on existence of substantial control over investee

The Group holds 37.528% of the outstanding voting shares of Inventec Besta Co., Ltd. (Besta) and obtains only one seat among all seven board directors. Therefore, the Group does not have existing rights and the current ability to direct the investee's relevant activities, thus, the Group does not have control over Besta.

(g) Loss of control over subsidiaries

Iveentec Manufacturing (India) Private Limited dismissed on July 7, 2021. It is currently in liquidation process. As a result, The Group lose control over it.

The details of assets and liabilities of the aferesaid subsidiary were as follows:

Cash and cash equipment	$	8,309
Notes Receivables		4,984
Other Payables		(196)
Carrying amount of net asset of the former subsidiary	$	13,097

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(English Translation of Consolidated Financial Statements Originally Issued in Chinese) INVENTEC CORPORATION AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT'D)

For the years ended December 31, 2021 and 2020

(Expressed in Thousands of New Taiwan Dollars, Unless Otherwise Specified)

The meeting of shareholders of E-Ton Solar Tech. Co., Ltd ("E-ton") decided to dismiss their respective companies in 2020. It is currently in liquidation process. As a result, The Group lose control of these subsidiaries.

The details of assets and liabilities of the aforesaid subsidiaries were as follows:

Cash and cash equivalents	$	5,710
Property, plant and equipment		302,951
Investment property		1,026,336
Other receivables		40
Other current assets		27,253
Other assets		239,358
Notes payable		(395)
Other payables		(19,369)
Long-term payable		(190,000)
Other liabilities		(109,093)
Carrying amount of net asset of the former subsidiary	$	1,282,791

(h) Property, plant and equipment

The cost, depreciation, and impairment of the property, plant and equipment of the Group for the years ended December 31, 2021 and 2020 were as follows:

Land	Building and construction	Machinery and equipment	Transportation equipment	Office equipment	Other facilities	Leasehold improvements	Others	Total
$ 7,784,757 - - - -	17,344,433 - (619,593) - (146,188)	20,575,199 717,913 (3,288,960) 144,022 (256,376)	103,254 4,728 (4,755) - (925)	5,179,868 364,530 (367,927) 13,900 (64,176)	8,803,802 80,575 (1,814,035) 119,508 (58,403)	396,393 139,876 (30,107) 249,995 (20,091)	2,160,724 1,557,326 - (481,516) (20,935)	62,348,430 2,864,948 (6,125,377) 45,909 (567,094)
$ 7,784,757	16,578,652	17,891,798	102,302	5,126,195	7,131,447	736,066	3,215,599	58,566,816
$ 7,884,298 - - (99,541) -	20,800,616 3,730 (1,934,553) (1,413,577) (111,783)	24,774,688 928,886 (2,728,309) (2,147,735) (252,331)	103,832 261 (535) - (304)	5,325,639 379,645 (427,344) 3,293 (101,365)	10,517,913 201,185 (1,941,375) 107,073 (80,994)	665,838 11,323 (2,372) (268,277) (10,119)	1,851,731 1,019,096 - (734,064) 23,961	71,924,555 2,544,126 (7,034,488) (4,552,828) (532,935)
$ 7,784,757	17,344,433	20,575,199	103,254	5,179,868	8,803,802	396,393	2,160,724	62,348,430
$ - - - - - -	4,460,648 369,522 (293,181) - - (38,979)	17,798,027 944,240 (3,194,065) 135,914 - (272,946)	83,005 10,402 (4,495) 129 - (682)	4,509,777 371,511 (350,395) - 2,070 (51,171)	7,226,057 330,684 (1,564,122) 409,832 - (67,103)	266,333 51,817 (23,708) 785 - (9,581)	- - - - - -	34,343,847 2,078,176 (5,429,966) 546,660 2,070 (440,462)
$ -	4,498,010	15,411,170	88,359	4,481,792	6,335,348	285,646	-	31,100,325

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(English Translation of Consolidated Financial Statements Originally Issued in Chinese) INVENTEC CORPORATION AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT'D)

For the years ended December 31, 2021 and 2020

(Expressed in Thousands of New Taiwan Dollars, Unless Otherwise Specified)

Land	Building and construction	Machinery and equipment	Transportation equipment	Office equipment	Other facilities	Leasehold improvements	Others	Total
$ 10,231 - - - (10,231) -	6,653,767 390,371 (1,357,351) - (1,199,936) (26,203)	20,714,397 1,248,589 (2,426,248) 800,125 (2,338,422) (200,414)	71,883 11,787 (535) - - (130)	4,683,815 379,979 (455,805) - (16,142) (82,070)	8,540,656 527,463 (1,902,176) 149,690 (13,414) (76,162)	520,348 46,496 (2,043) - (6,996) (291,472)	- - - - - -	41,195,097 2,604,685 (6,144,158) 949,815 (3,585,141) (676,451)
$ -	4,460,648	17,798,027	83,005	4,509,777	7,226,057	266,333	-	34,343,847
$ 7,784,757	12,080,642	2,480,628	13,943	644,403	796,099	450,420	3,215,599	27,466,491
$ 7,874,067	14,146,849	4,060,291	31,949	641,824	1,977,257	145,490	1,851,731	30,729,458
$ 7,784,757	12,883,785	2,777,172	20,249	670,091	1,577,745	130,060	2,160,724	28,004,583

As of December 31, 2021 and 2020, the property, plant and equipment were pledged as collateral, please refer to Note 8. The Group performed an impairment test on its property, plant and equipment, based on the experience of the past and actual operating result, the discontinued rate used in for the year ended December 31, 2020 were 11.40%. Thus, the Group adopted the value in use as its recoverable amount and recognized the impairment losses based on the differences between the book values and the recoverable amounts of the property, plant and equipment. For the year ended December 31, 2020, the impairment losses were $949,815.

The subsidiary of the Group, Inventec Solar Energy Corporation., resolved at its Board meeting on December 1, 2021, to file the bankruptcy to the court. Since most creditors have obtained a ground of execution, the subsidiary's assets are measured in recoverable amounts considering that may force disposal. The impairment loss of $546,660 had been recognized in the consolidated statements of comprehensive income.

The recoverable amount is based on a comprehensive analysis, which mainly relied on the cost method supplemented by the market value method and is classified as Level 3 fair value. The adjustment of residual value is analyzed by the utilization rate, physical life, economic life, and technical life of the equipment. In addition, the present value of the equipment is assumed to be reasonable based on the actual condition, availability, and market value of the equipment and considered the original acquisition information and the similar machine in the market.

The Group has loss control over E-ton on March 26, 2020. Therefore, all property, plant and equipment were eliminated.

Inventec (Pudong) Technology Corp. disposed its plant and property on April 27, 2021. For related information, please refer to Note 13 of the consolidated financial statement for the year ended December 31, 2021.

Inventec Hi-Tech Corp. disposed its plant and property on April 27, 2021. For related information, please refer to Note 13 of the consolidated financial statement for the year ended December 31, 2021.

Inventec (Pudong) Co., Ltd. disposed its plant and property on January 16, 2020. For related information, please refer to Note 13 of the consolidated financial statement for the year ended December 31, 2020.

〜 37 〜

(English Translation of Consolidated Financial Statements Originally Issued in Chinese) INVENTEC CORPORATION AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT'D)

For the years ended December 31, 2021 and 2020

(Expressed in Thousands of New Taiwan Dollars, Unless Otherwise Specified)

(i) Right-of-use assets

The Group leases many assets including land and buildings, vehicles and other equipment. Information about leases for which the Group as a lessee is presented below:

Cost: Balance at January 1, 2021 Additions Reductions Effect of changes in foreign exchange rates Balance at December 31, 2021 Balance at January 1, 2020 Additions Reductions Others Effect of changes in foreign exchange rates Balance at December 31,2020 Accumulated depreciation and impairment losses: Balance at January 1, 2021 Depreciation for the year Reductions Effect of changes in foreign exchange rates Balance at December 31, 2021 Balance at January 1, 2020 Depreciation for the year Reductions Others Effect of changes in foreign exchange rates Balance at December 31,2020 Carrying amounts: Balance at December 31, 2021 Balance at January 1, 2020 Balance at December 31, 2020	Land $ 2,501,251 160 (57,267) (32,868) $ 2,411,276 $ 2,594,248 4,427 (188,602) 76,078 15,100 $ 2,501,251 $ 115,716 67,751 (2,971) (4,377) $ 176,119 $ 87,481 70,875 (32,698) (10,768) 826 $ 115,716 $ 2,235,157 $ 2,506,767 $ 2,385,535	Buildings 1,372,877 179,107 - (82,307) 1,469,677 1,199,936 96,228 (17,578) 103,651 (9,360) 1,372,877 360,840 209,752 - (20,333) 550,259 174,934 207,032 (16,597) - (4,529) 360,840 919,418 1,025,002 1,012,037	Vehicles 15,351 5,546 (4,350) (74) 16,473 15,368 3,193 (181) (2,914) (115) 15,351 9,042 5,184 (4,331) (44) 9,851 4,658 5,682 (181) (1,053) (64) 9,042 6,622 10,710 6,309	Others 620 1,152 - (26) 1,746 5,087 - (4,432) - (35) 620 610 350 - (20) 940 1,440 1,062 (1,862) - (30) 610 806 3,647 10	Total 3,890,099 185,965 (61,617) (115,275) 3,899,172 3,814,639 103,848 (210,793) 176,815 5,590 3,890,099 486,208 283,037 (7,302) (24,774) 737,169 268,513 284,651 (51,338) (11,821) (3,797) 486,208 3,162,003 3,546,126 3,403,891

〜 38 〜

(English Translation of Consolidated Financial Statements Originally Issued in Chinese) INVENTEC CORPORATION AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT'D)

For the years ended December 31, 2021 and 2020

(Expressed in Thousands of New Taiwan Dollars, Unless Otherwise Specified)

(j) Investment property

Building and construction

Cost or deemed cost:
Balance at January 1, 2021	$	-
Balance at December 31, 2021	$	-
Balance at January 1, 2020	$	1,569,906
Reclassification		(1,569,906)
Balance at December 31, 2020	$	-
Depreciation and impairment losses:
Balance at January 1, 2021	$	-
Balance at December 31, 2021	$	-
Balance at January 1, 2020	$	876,591
Depreciation for the period			12,262
Impairment loss		(888,853)
Balance at December 31, 2020	$	-
Carrying amounts:
Balance at December 31, 2021	$	-
Balance at January 1, 2020	$	693,315
Balance at December 31, 2020	$	-
Fair value:
Balance at December 31, 2021	$	-
Balance at December 31, 2020	$	-

Based on the purposes of earning rental income or for capital appreciation income or both, the Group reclassified buildings to investment property.

In order to facilitate the future sale of the factory and owned buildings in Annan District, 2nd Rd. through deducting the land price by the rent paid, E-ton resolved to apply for the purchase of land No. 455 and 455-1 in the Science and Technology Section of Annan District. E-ton obtained the approval letter from the Industrial Development Bureau on January 3, 2020, at a price of $687,108, resulting in the payable to be $327,587 after deducting the rent paid and security deposit. E-ton entered into an agreement with its related party on January 31, 2020 and borrowed the amount of $190,000 for land purchase on February 4, 2020. The Group has loss control over E-ton on March 26, 2020, therefore all investment properties are eliminated.

〜 39 〜

(English Translation of Consolidated Financial Statements Originally Issued in Chinese) INVENTEC CORPORATION AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT'D)

For the years ended December 31, 2021 and 2020

(Expressed in Thousands of New Taiwan Dollars, Unless Otherwise Specified)

(k) Intangible assets

Cost: Balance at January 1, 2021 Additions Disposals Effect of movements in exchange rate Balance at December 31, 2021 Balance at January 1, 2020 Additions Other Disposals Effect of movements in exchange rate Balance at December 31, 2020 Amortization and impairment losses: Balance at January 1, 2021 Amortization for the period Disposals Effect of movements in exchange rate Balance at December 31, 2021 Balance at January 1, 2020 Amortization for the period Other Disposals Effect of movements in exchange rate Balance at December 31, 2020 Carrying amounts: Balance at December 31, 2021 Balance at January 1, 2020 Balance at December 31, 2020	Goodwill $ 980,719 - - - $ 980,719 $ 980,719 - - - - $ 980,719 $ 172,299 - - - $ 172,299 $ 172,299 - - - - $ 172,299 $ 808,420 $ 808,420 $ 808,420	Patent and trademark right - - - - - 456 - - (456) - - - - - - - 456 - - (456) - - - - -	Software cost 1,173,014 250,596 (119,804) (27) 1,303,779 1,122,935 118,581 (68,586) - 84 1,173,014 1,105,633 158,952 (119,804) (33) 1,144,748 1,050,581 123,559 (68,586) - 79 1,105,633 159,031 72,354 67,381	Total 2,153,733 250,596 (119,804) (27) 2,284,498 2,104,110 118,581 (68,586) (456) 84 2,153,733 1,277,932 158,952 (119,804) (33) 1,317,047 1,223,336 123,559 (68,586) (456) 79 1,277,932 967,451 880,774 875,801

〜 40 〜

(English Translation of Consolidated Financial Statements Originally Issued in Chinese) INVENTEC CORPORATION AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT'D)

For the years ended December 31, 2021 and 2020

(Expressed in Thousands of New Taiwan Dollars, Unless Otherwise Specified)

The amortization of intangible assets and impairment losses are respectively included in the statements of comprehensive income:

statements of comprehensive income:
Operating costs Operating expenses Total	For the years ended December 31,
	2021 $ 6,649 152,303 $ 158,952	2020
		7,466 116,093
		123,559

As of December 31, 2021 and 2020, the aforesaid intangible assets were not pledged as collateral.

(l) Other current assets and other non-current assets

The other current assets-others and other non-current assets of the Group were as follows:

Refundable deposits Prepayments to suppliers Restricted assets Payments on behalf of others Deferred tax assets Others	December 31, 2021 $ 370,203 44,445 695,032 456,626 1,659,287 2,657,029 $ 5,882,622	December 31, 2020
		69,662 21,581 1,127,892 2,511,971 1,767,526 2,385,778
		7,884,410

The Group determines the substance of the transaction in terms of sales and production, as well as production of the same target, to complete its sales contract. The Group has the nature of an agent, and so the transaction is reflected as the net amount after the purchases and sales are written off. The unused inventory of purchases is listed as payments on behalf of others.

As of December 31, 2021 and 2020, the details of other assets were pledged as collateral, please refer to Note 8.

(m) Other current liabilities and other non-current liabilities

The other current liabilities-others and other non-current liabilities of the Group were as follows:

Provisions - Current Temporary credits Receipts under custody Deferred tax liabilities Others	December 31, 2021 $ 3,654,637 6,120,642 2,384,309 5,842,187 534,000 $ 18,535,775	December 31, 2020
		3,255,201 5,452,614 3,027,071 4,916,698 445,585
		17,097,169

〜 41 〜

(English Translation of Consolidated Financial Statements Originally Issued in Chinese) INVENTEC CORPORATION AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT'D) For the years ended December 31, 2021 and 2020

(Expressed in Thousands of New Taiwan Dollars, Unless Otherwise Specified)

(n) Long-term and short-term borrowings

The significant terms and conditions of long-term and short-term borrowings were as follows:

	December 31, 2021	December 31, 2021	December 31, 2021
Interest Rate	Currency
1.19%~5.23% 0.35%~6.07%

Interest Rate	Currency	Maturity Date Amount 2031.02.26 $ 3,050,000 2024.02.14 544,825 2021.01.06~2021.05.31 9,320,106 2021.01.06~2022.10.14 28,293,818 2021.05.31 3,575 $ 41,212,324 $ 32,221,499 8,990,825 $ 41,212,324 $ 70,541,804	Amount
1.19%~5.23% 0.48%~2.90%	TWD CNY TWD USD EUR

1.Please refer to Note 8 for details of the related assets pledged as collateral. Part of bank loans were pledged by machine as secondary collateral.

〜 42 〜

(English Translation of Consolidated Financial Statements Originally Issued in Chinese) INVENTEC CORPORATION AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT'D)

For the years ended December 31, 2021 and 2020

(Expressed in Thousands of New Taiwan Dollars, Unless Otherwise Specified)

2.Important borrowing restrictions

The Group entered into syndicated credit agreement with a number of financial institutions. Under these agreements, the Group shall adhere to certain financial provisions such as current ratios, leverage ratios, interest coverage ratios and tangible net worth in the annual report on the balance sheet date. Otherwise, the borrowings will be considered due and payable immediately. As of December 31, 2021 and 2020, the Group was in compliance with the above financial covenants.

3.Others

Due to insolvency, Inventec Solar Energy Corporation resolved at its Board meeting on December 1, 2021, to file the bankruptcy to the court. When the court grants the bankruptcy ruling, Inventec Solar Energy Corporation will start the legal procedures of bankruptcy. After the bank allocated the remaining balance offset by the related expenses, interests, and principles, Inventec Solar Energy Corporation recognized the borrowing as short-term and long-term loans within a year or a business cycle since the company borrowings have defaulted. Please refer to note 9 for details of the payment orders of each bank.

(n) Lease liabilities

The Group lease liabilities were as follows:

The Group lease liabilities were as follows:
Current Non-current	December 31, 2021 $ 182,996 $ 693,497	December 31, 2020
		216,479
		748,035

For the maturities analysis, please refer to Note 6(x).

The amounts recognized in profit or loss were as follows:

Interests on lease liabilities Variable lease payments not included in the measurement of lease liabilities Expenses relating to short-term leases Expenses relating to leases of low-value assets, excluding short-term leases of low-value assets Covid-19-related rent concessions (recognized as deduction of depreciation expenses)		For the years ended December 31	For the years ended December 31
			2020
			29,006
			44,532
			29,999
			52,154
			6,203

〜 43 〜

(English Translation of Consolidated Financial Statements Originally Issued in Chinese) INVENTEC CORPORATION AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT'D)

For the years ended December 31, 2021 and 2020

(Expressed in Thousands of New Taiwan Dollars, Unless Otherwise Specified)

The amounts recognized in the statement of cash flows for the Group were as follows:

The amounts recognized in the statement of cash flows for the	Group were as follows:	Group were as follows:
Total cash outflow for leases	For the years ended December 31
	2021 $ 309,191	2020
		354,936

1. Real estate leases

The Group leases land and buildings for its office space and plants. The leases of office space typically run for 2 to 13 years. Some leases include an option to renew the lease for an additional period of the same duration after the end of the contract term.

Some leases of equipment contain extension or cancellation options exercisable by the Group. These leases are negotiated and monitored by local management, and accordingly, contain a wide range of different terms and conditions. The extension options held are exercisable only by the Group and not by the lessors. When the lessee is not reasonably certain to use an optional extended lease term, payments associated with the optional period will not be included within lease liabilities.

Other leases

The Group leases vehicles and other equipment, with lease terms of two to five years. In some cases, the Group has options to purchase the assets at the end of the contract term; in other cases, it guarantees the residual value of the leased assets at the end of the contract term.

The Group also leases dormitory, vehicles and other equipment with contract terms of one to two years. These leases are short-term and leases of low-value items. The Group has elected not to recognize right-of-use assets and lease liabilities for these leases.

(p) Operating Leases

A maturity analysis of lease payments, showing the undiscounted lease payments to be received after the reporting date are as follows:

Less than one year One to two years Two to three years Three to four years Four to five years More than five years Total undiscounted lease payments	December 31, 2021 $ 191,230 99,428 40,872 37,037 9,118 269 $ 377,954	December 31, 2020
		189,758 134,695 85,784 37,709 34,271 8,649
		490,866

The rental revenues incurred by leasing plants were $244,350 and $246,232 for the years ended December 31, 2021 and 2020, respectively.

〜 44 〜

(English Translation of Consolidated Financial Statements Originally Issued in Chinese) INVENTEC CORPORATION AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT'D)

For the years ended December 31, 2021 and 2020

(Expressed in Thousands of New Taiwan Dollars, Unless Otherwise Specified)

(q) Employee benefits

1.Defined benefit plans

Reconciliation of defined benefit obligation at present value and plan asset at fair value are as follows:

Present value of the defined benefit obligations Fair value of plan assets Net defined benefit liabilities	December 31, 2021 $ 1,721,329 (1,235,817) $ 485,512	December 31, 2020 1,768,018 (1,192,773) 575,245

The Group makes defined benefit plan contributions to the pension fund account at Bank of Taiwan that provides pensions for employees upon retirement. The plans (covered by the Labor Standards Law) entitle a retired employee to receive an annual payment based on years of service and average salary for the six months prior to retirement. As of December 31, 2021 and 2020, the defined benefit plans amounted to $104,407 and $80,926, respectively, which were accounted as other current assets.

1) Composition of plan assets

The Group allocates pension funds in accordance with the Regulations for Revenues, Expenditures, Safeguard and Utilization of the Labor Retirement Fund, and such funds are managed by the Bureau of Labor Funds, Ministry of Labor. With regard to the utilization of the funds, minimum earnings in the annual distributions on the final financial statements shall be no less than the earnings attainable from the amounts accrued two-year time deposits with interest rates offered by local banks.

The Group’s pension reserve account in Bank of Taiwan amounted to $1,235,817 at the end of December 31, 2021. For information on the utilization of the labor pension fund assets including the assets allocation and yield of the fund, please refer to the website of the Bureau of Labor Funds, Ministry of Labor.

〜 45 〜

(English Translation of Consolidated Financial Statements Originally Issued in Chinese) INVENTEC CORPORATION AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT'D)

For the years ended December 31, 2021 and 2020

(Expressed in Thousands of New Taiwan Dollars, Unless Otherwise Specified)

2) Movements in present value of the defined benefit obligations

The movements in present value of defined benefit obligations for the Group on 2021 and 2020 were as follows:

Defined benefit obligation at January 1 Current service costs and interest Remeasurement on the net defined benefit liability －Actuarial loss (gain) arising from changes in demographic assumption －Experience adjustments arising on the actuarial gain or loss －Actuarial loss (gain) arising from changes in financial assumptions Benefits paid by the plan assets Settlement Defined benefit obligation at December 31	For the years ended December 31, 2021 2020 $ 1,768,018 1,736,857 21,191 26,212 43,068 - (26,660) 47,255 (20,091) 43,393 (64,198) (85,189) - (510) $ 1,721,328 1,768,018
	2021 $ 1,768,018 21,191 43,068 (26,660) (20,091) (64,198) - $ 1,721,328

Defined benefit obligation at January 1
Current service costs and interest
Remeasurement on the net defined benefit liability
－Actuarial loss (gain) arising from changes in
demographic assumption
－Experience adjustments arising on the actuarial gain
or loss
－Actuarial loss (gain) arising from changes in financial
assumptions
Benefits paid by the plan assets
Settlement
Defined benefit obligation at December 31

For the years ended December 31,
2021
2020
$ 1,768,018
1,736,857
21,191
26,212
43,068
-
(26,660)
47,255
(20,091)
43,393
(64,198)
(85,189)
-
(510)
$
1,721,328
1,768,018

2021
$ 1,768,018
21,191
43,068
(26,660)
(20,091)
(64,198)
-
$
1,721,328

3) Movements of defined benefit plan assets

The movements in the present value of the defined benefit plan assets for the Group on 2021 and 2020 were as follows:

Fair value of plan assets at January 1 Interest income Remeasurement on the net defined benefit liability －Return on plan assets (excluding current interest) Contributions made Benefits paid by the plan assets Settlement Fair value of plan assets at December 31	For the years ended December 31, 2021 2020 $ 1,192,773 1,155,255 6,164 8,910 15,165 36,920 85,913 85,974 (64,198) (85,189) - (9,097) $ 1,235,817 1,192,773
	2021 $ 1,192,773 6,164 15,165 85,913 (64,198) - $ 1,235,817

〜 46 〜

(English Translation of Consolidated Financial Statements Originally Issued in Chinese) INVENTEC CORPORATION AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT'D)

For the years ended December 31, 2021 and 2020

(Expressed in Thousands of New Taiwan Dollars, Unless Otherwise Specified)

4) Expenses recognized in profit or loss

The expenses recognized in profit or loss for the Group on 2021 and 2020 were as follows:

Current service costs Net interest of net liabilities for defined benefit obligations Operating cost Selling expenses Administration expenses Research and development expenses	For the years ended December 31,	For the years ended December 31,
	2021 $ 12,368 2,659 $ 15,027 $ 1,426 1,767 3,788 8,046 $ 15,027	2020
		13,202 4,100
		17,302
		1,757 1,907 4,367 9,271
		17,302

5) Actuarial assumptions

The following are the Group’s principal actuarial assumptions:

Present Value of defined benefit obligations:

Discount rate Future salary increases rate	December 31, 2021 December 31, 2020 0.63% 0.50%% 1.63%~2.00% 1.63%~2.00%

The expected allocation payment made by the Group to the defined benefit plans for the one year period after the reporting date was $87,186.

The weighted-average duration of the defined benefit obligation is 7.7~11.2 years.

6) Sensitivity analysis

If the actuarial assumptions had changed, the impact on the present value of the defined benefit obligation for 2021 and 2020 shall be as follows:

December 31, 2021 Discount rate Future salary increasing rate	Influences of defined benefit obligations
	Increased 0.25% Decreased 0.25% (40,012) 41,453 40,269 (39,074)

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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT'D)

For the years ended December 31, 2021 and 2020

(Expressed in Thousands of New Taiwan Dollars, Unless Otherwise Specified)

December 31, 2020 Discount rate Future salary increasing rate	Influences of defined benefit obligations
	Increased 0.25% Decreased 0.25% (43,393) 45,029 43,681 (42,320)

Reasonably possible changes at the reporting date to one of the relevant actuarial assumptions, holding other assumptions constant, would have affected the defined benefit obligation by the amounts shown above. The method used in the sensitivity analysis is consistent with the calculation of pension liabilities in the balance sheets.

There is no change in the method and assumptions used in the preparation of sensitivity analysis for 2021 and 2020.

2.Defined contribution plans

In accordance with the provisions of the Labor Pension Act, the Group contribute an amount equal to 6% of the employee’s monthly wages to the Labor Pension personal account with the Bureau of the Labor Insurance.

The pension costs incurred from the contributions to the to the Bureau of the Labour Insurance amounted to $256,266 and $256,097 for the years ended December 31, 2021 and 2020, respectively.

The pension expenses contributed by the foreign entities following the local regulations amounted to $828,669 and $756,918 for the years ended December 31, 2021 and 2020, respectively.

(r) Income taxes

1.The details of income tax expense for the years ended December 31, 2021 and 2020 were as follows:

Current tax expenses Current period Other Adjustment for prior periods Deferred tax expense Origination and reversal of temporary differences Change in unrecognized deductible temporary differences Recognition of previously unrecognized tax losses Income tax expense from continuing operations		For the years ended December 31 2021 2020 905,068 1,588,272 208,859 816,680 (385,611) (114,742) 728,316 2,290,210 926,616 1,303,593 97,159 178,946 - (22) 1,023,775 1,482,517 1,752,091 3,772,727
		2021 905,068 208,859 (385,611) 728,316 926,616 97,159 - 1,023,775 1,752,091

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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT'D)

For the years ended December 31, 2021 and 2020

(Expressed in Thousands of New Taiwan Dollars, Unless Otherwise Specified)

The amount of income tax recognized in other comprehensive income for 2021 and 2020 was as follows:

Items that will not be reclassified subsequently to profit or loss: Remeasurement from defined benefit plans	For the years ended December 31,	For the years ended December 31,
	2021 $ (3,769)	2020
		10,746

Reconciliations between profit before tax and income tax expense for the years ended December 31, 2021 and 2020 were as follows:

profit before tax Income tax using the Company’s domestic tax rate Permanent differences Tax-exempt income Tax incentives Current-year losses for which no deferred tax asset was recognized Changes in unrecognized temporary differences (Over) under provision in prior periods (Over) under provision of temporary differences Undistributed earnings additional tax Other Effect of loss carry forward Income tax expense	For the years ended December 31, 2021 2020 $ 7,699,184 10,345,705 2,217,919 3,592,046 (274,830) (202,801) (10,635) (7,272) (152,900) (86,797) 82,357 199,760 95,792 881,345 (385,611) (114,742) (16,472) 334,433 - 3,865 281,906 180,718 (85,435) (1,007,828) $ 1,752,091 3,772,727
	2021 $ 7,699,184 2,217,919 (274,830) (10,635) (152,900) 82,357 95,792 (385,611) (16,472) - 281,906 (85,435) $ 1,752,091

profit before tax
Income tax using the Company’s domestic tax rate
Permanent differences
Tax-exempt income
Tax incentives
Current-year losses for which no deferred tax asset was
recognized
Changes in unrecognized temporary differences
(Over) under provision in prior periods
(Over) under provision of temporary differences
Undistributed earnings additional tax
Other
Effect of loss carry forward
Income tax expense

For the years ended December 31,
2021
2020
$
7,699,184
10,345,705
2,217,919
3,592,046
(274,830)
(202,801)
(10,635)
(7,272)
(152,900)
(86,797)
82,357
199,760
95,792
881,345
(385,611)
(114,742)
(16,472)
334,433
-
3,865
281,906
180,718
(85,435)
(1,007,828)
$
1,752,091
3,772,727

2021
$
7,699,184
2,217,919
(274,830)
(10,635)
(152,900)
82,357
95,792
(385,611)
(16,472)
-
281,906
(85,435)
$
1,752,091

2.Deferred Tax Assets and Liabilities
1) Unrecognized Deferred Tax Assets

Deferred tax assets that have not been recognized in respect of the following items:

Tax effect of deductible Temporary Differences The carryforward of unused tax losses	December 31, 2021 $ 1,423,064 1,100,822 $ 2,523,886	December 31, 2020
		1,117,423 774,311
		1,891,734

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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT'D)

For the years ended December 31, 2021 and 2020

(Expressed in Thousands of New Taiwan Dollars, Unless Otherwise Specified)

The carryforward of unused tax credits were determined in accordance with the rules established by each taxation authorities, and can be applied to offset against profit and income tax in the future respectively. The deferred tax assets have not been recognized in respect of the aforementioned items because they are not probable that future taxable profit will be available against which the Group can utilize the benefits therefrom.

The Susidiaries located in China, where the income tax rate is 25%, in accordance with the rules for the implementation of the Income Tax Law of the People's Republic of China for enterprises with Foreign Investment and Foreign Enterprises, was entitled to the preferential treatment for advanced technology industries with respect to reduction of or exemption from income tax. Under such tax law, commencing with the first profit-making year is exempted from income tax in the first and second profitable year and is entitled to a 50% reduction from the third to fifth year.

The Group invested in the companies which were incorporated in the Cayman Islands. The earnings of these entities are not taxable by the local government in their respective jurisdictions. Other foreign subsidiaries are taxed in accordance with the Income Tax Law of their respective jurisdiction.

As of December 31, 2021 and 2020, the Group estimated that the part of the temporary differences have slight chance to realize in the visible future, so they were not recognized as deferred tax assets.

Each company is taxed in accordance with the income tax law of their respective jurisdiction. Unused operating loss carry-forwards can be applied to offset against profit in the future after being examined by the Tax Authority. As of December 31, 2021, the company that have loss carry forwards which can be used to offset profit were as follow. Among the taxable losses, $0 were recognized as deferred tax assets.

As of December 31, 2021, the Group did not recognized its prior years' loss carry-forwards as deferred tax assets, whose expiry years were as follows:

The carryforward of unused losses	Unused loss Expiry year $ 4,723,443 2022~2031

Due to the unstable economic environment recovery, the realizability of tax assets of the tax losses, which amounted to $4,723,443, is doubtful. Therefore, the Group has recognized the partial tax losses as deferred tax assets. If the sales grow continuously, the Group would recognize the aforementioned tax losses in the future and generate the additional tax benefits.

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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT'D)

For the years ended December 31, 2021 and 2020

(Expressed in Thousands of New Taiwan Dollars, Unless Otherwise Specified)

2) Recognized Deferred Tax Assets and Liabilities

The movements in deferred tax assets and liabilities for the years ended December 31, 2021 and 2020 were as follows:

Deferred Tax Liabilities: Balance at January 1, 2021 Recognized in profit or loss Balance at December 31, 2021 Balance at January 1, 2020 Recognized in profit or loss Balance at December 31, 2020 Deferred Tax Assets: Balance at January 1, 2021 Recognized in profit or loss Recognized in other comprehensive income Effect of movements in exchange rate Balance at December 31, 2021 Balance at January 1, 2020 Recognized in profit or loss Recognized in other comprehensive income Effect of movements in exchange rate Balance at December 31, 2020	Warranty expense	Gain (loss) on investment $ 4,886,835 872,859 $ 5,759,694 $ 3,320,241 1,566,594 $ 4,886,835 Defined Benefit Plans 74,819 (10,040) (3,769) - 61,010 73,545 (9,472) 10,746 - 74,819	Other 29,863 52,630 82,493 8,375 21,488 29,863 Others 796,193 (113,956) - (6,184) 676,053 733,177 64,949 - (1,933) 796,193	Total 4,916,698 925,489 5,842,187 3,328,616 1,588,082 4,916,698 Total 1,767,526 (98,286) (3,769) (6,184) 1,659,287 1,653,148 105,565 10,746 (1,933) 1,767,526
	$ 896,514 25,710 - - $ 922,224 $ 846,426 50,088 - - $ 896,514

3.Income Tax approval

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

4.Business income tax administrative remedies

The Group adopted the transfer pricing method on income tax declaration from year 2013 to 2015. As the calculation had a conflict with the opinion of the tax authority, the Group applied for administrative relief after paying the approved additional tax. The administrative appeal and litigation procedures are in progress.

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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT'D)

For the years ended December 31, 2021 and 2020

(Expressed in Thousands of New Taiwan Dollars, Unless Otherwise Specified)

(s) Capital and other equity

As of December 31, 2021 and 2020, the authorized capital of the Company both consisted of 3,650,000 thousand shares and both issued worth $36,500,000, with par value of $10 per share, and its outstanding capital both consisted of 3,587,475 thousand shares of stock. All issued shares were paid up upon issuance.

1.Capital surplus

The components of the capital surplus were as follows:

The components of the capital surplus were as follows:
Share capital Other	December 31, 2021 $ 2,891,959 7,633 $ 2,899,592	December 31, 2020
		2,891,959 7,325
		2,899,284

In accordance with the ROC company Act, realized capital reserves can only be reclassified as share capital or distributed as cash dividends after offsetting losses. The aforementioned capital reserves include share premiums and donation gains. In accordance with the securities offering and Issuance Guidelines, the amount of capital reserve to be reclassified under share capital shall not exceed 10 percent of the actual share capital amount.

2.Retained earnings

The Company’s articles of incorporation require that after-tax earnings shall first be offset against any accumulated deficit, and 10% of the rest be set aside as legal reserve. The appropriation for legal reserve is discontinued when the balance of the legal reserve equals the total authorized capital. Special reserve may be appropriated for operations or to meet regulations. The remaining earnings, if any, may be appropriated for operations according to the proposal, and the distributed dividends may not be lower than 10% of the earnings. Surplus distribution based on issuance of new shares approved by the Board of Directors, should be resolved during the shareholder's meeting. In consideration of the Company's long-term operating plan, funding needs, and satisfying shareholder demand for cash flow, the Company distributes cash dividends of at least 10% of the aggregate of cash dividends and stock dividends if the distributions include cash dividend. In accordance with Article 240 of the ROC Company Act, the Company authorizes the distribution of dividends and bonuses or its legal reserve and capital reserve, according to Article 241 of the ROC Company Act, in whole or in part may be paid in cash after a resolution has been adopted by a majority vote at a meeting of the Board of Directors attended by two-thirds of the total number of directors; then such distribution shall be submitted to the shareholder's meeting.

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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT'D)

For the years ended December 31, 2021 and 2020

(Expressed in Thousands of New Taiwan Dollars, Unless Otherwise Specified)

1) Legal reserve

If the Company experienced profit for the year, the meeting of shareholders shall decide on the distribution of the statutory earnings reserve either by new shares or by cash, of up to 25 percent of the actual share capital.

2) Special reserve

In accordance by the Financial Supervisory Commission a special reserve equal to the contra account of other shareholders' equity is appropriated from the current and prior period earnings. When the debit balance of any of the contra accounts in the shareholders' equity is reversed, the related special reserve can be reversed. The subsequent reversals of the contra accounts in shareholders' equity shall qualify for additional distributions.

3) Earnings Distribution

On March 30, 2021, and on March 24, 2020, the Company's Board of Directors resolved the amount of cash dividends of the earnings distribution of 2020 and 2019. These earnings were appropriated for distribution as follows:

Dividends distributed to ordinary shareholders Cash	2020	2020	2020	2019 Dividend per share ($) Amount 1.30 4,663,718	2019 Dividend per share ($) Amount 1.30 4,663,718
	Dividend per share ($)		Amount		Amount
	$ 1.85		6,636,829		4,663,718

The information on prior year's distribution of the Company's earnings were announced through the Market Observation Post System on the internet.

On March 15, 2022, the Company's Board of Directors resolved to appropriate the 2021 earnings as follows:

earnings as follows:
Dividends distributed to common shareholders Cash	2021
	Dividend per share ($) $ 1.40	Amount
		5,022,465

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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT'D)

For the years ended December 31, 2021 and 2020

(Expressed in Thousands of New Taiwan Dollars, Unless Otherwise Specified)

3.Other equity (net of taxes) and non-controlling interests

Balance at January 1, 2021 Exchange differences on foreign operations Exchange differences on subsidiaries accounted for using equity method Unrealized gains (losses) from financial assets measured at fair value through other comprehensive income Unrealized gains (losses) from financial assets measured at fair value through other comprehensive income, associates and joint ventures accounted for using equity method Disposal of investments in equity instruments designed at fair value through other comprehensive income Profit attributable to non-controlling interest Others Balance at December 31, 2021 Balance at January 1, 2020 Exchange differences on foreign operations Exchange differences on subsidiaries accounted for using equity method Unrealized gains (losses) from financial assets measured at fair value through other comprehensive income Unrealized gains (losses) from financial assets measured at fair value through other comprehensive income, associates and joint ventures accounted for using equity method Disposal of investments in equity Disposal of investments in equity instruments designed at fair value through other comprehensive income Profit attributable to non-controlling interest Others (Note) Balance at December 31, 2020	Exchange differences on translation of foreign financial statements $ (2,467,365) (572,517) 2,914 - - - - - $ (3,036,968) (2,005,134) (461,592) (639) - - - - - - $ (2,467,365)	Unrealized gains (losses) from financial assets measured at fair value through other comprehensive income 565,440 - - (242,078) (2,365) 1,373 - - 322,370 183,129 - - 365,376 (16,523) 19,258 14,200 - - 565,440	Non-controlling interests (93,916) (2,136) - - - - (590,672) 114 (686,610) 1,700,080 4,275 - - - - - (975,007) (823,264) (93,916)

Note: Due to lossing control over the subsidiary, the impact was amounted to $838,676.

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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT'D)

For the years ended December 31, 2021 and 2020

(Expressed in Thousands of New Taiwan Dollars, Unless Otherwise Specified)

(t) Share-Based payments

1.AIMobile Co. Ltd

As of December 31, 2021, share-based payments of AIMobile Co. Ltd are as follows:

Grant date Number of shares granted Contractual life Grant target Vesting conditions	Equity transaction
	Employee Stock Option Plan
	March 25, 2019 1,605 thousand units 5 year Employees of AIMobile Co. Ltd Subsequent 2~4 years service

1) Determining the fair value of equity instruments granted

AIMobile Co. Ltd adopted the Black-Scholes Model to calculate the fair value of the stock option at grant date, and the assumptions adopted in this valuation model were as follows:

Fair value at grant date Share price at grant date Exercise price Expected volatility(%) Expected life of the option (year) Expected dividend yield rate Risk free interest rate (%)	2021
	Employee Stock Option Plan
	2.28 / 2.77 / 3.29 10.4 10 30.971% / 34.193% / 36.901% 2.60 / 3.30 / 4.15 -% 0.574% / 0.597% / 0.621%

AIMobile Co. Ltd use the historical volatility as base to estimate the expected volatility; the duration of stock options is in accordance with the regulations. The expected dividends were set at 0, and the risk free rate was set considering the rate of the short term government bonds. The definition of fair value did not cover the service fee of the trade or the non-market achievement conditions.

2) Expenses and liabilities resulted from share-based payments

As of December 31, 2021 and 2020, expense and liability resulted from share-based payments are accounted as follow:

Expenses resulting from granted employee stock option	2021 $ 422	2020
		1,235

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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT'D)

For the years ended December 31, 2021 and 2020

(Expressed in Thousands of New Taiwan Dollars, Unless Otherwise Specified)

(u) Earnings per share

The following are the calculation of basic earnings per share and diluted earnings per share:

Basic earnings per share: Profit attributable to ordinary shareholders Weighted average number of ordinary shares (thousand shares) Basic earnings per share (NT dollars) Diluted earnings per share: Profit attributable to ordinary shareholders (diluted) Weighted average number of ordinary shares (thousand shares) Effect of dilutive potential common shares (thousand shares) Effect of employee share bonus Weighted average number of ordinary shares (diluted) Diluted earnings per share (NT dollars)		For the years ended December 31	For the years ended December 31
			2020
			7,547,985
			3,587,475
			2.10
			7,547,985
			3,587,475 32,907
			3,620,382
			2.08

(v) Revenue from contracts with customers

1.Disaggregation of revenue

For the years ended December 31, 2021	For the years ended December 31, 2021	For the years ended December 31, 2021
Core $ 51,514,149 355,513,671 4,319,623 64,395,784 43,977,408 $ 519,720,635 $ 518,945,327 775,308 - $ 519,720,635	Others 297 11,116 - - - 11,413 - - 11,413 11,413	Total
		51,514,446 355,524,787 4,319,623 64,395,784 43,977,408
		519,732,048
		518,945,327 775,308 11,413
		519,732,048

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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT'D)

For the years ended December 31, 2021 and 2020

(Expressed in Thousands of New Taiwan Dollars, Unless Otherwise Specified)

Primary geographical markets Taiwan USA Japan Hong Kong, Macao and Mainland China Other countries Major products Computer products Services Others 2.Contract balances Notes and Accounts receivable (included related parties) Less: Loss allowance Total Contract liabilities	For the years ended December 31, 2020 Core Others Total $ 32,249,613 767,482 33,017,095 345,570,121 104,146 345,674,267 7,723,625 - 7,723,625 68,334,265 212,354 68,546,619 53,236,397 96,195 53,332,592 $ 507,114,021 1,180,177 508,294,198 $ 506,413,658 - 506,413,658 700,363 - 700,363 - 1,180,177 1,180,177 $ 507,114,021 1,180,177 508,294,198 December 31, 2021 December 31, 2020 January 1, 2020 $ 103,899,751 91,883,742 88,594,198 (104,130) (72,433) (102,855) $ 103,795,621 91,811,309 88,491,343 $ 7,562,873 7,828,232 6,449,213	For the years ended December 31, 2020 Core Others Total $ 32,249,613 767,482 33,017,095 345,570,121 104,146 345,674,267 7,723,625 - 7,723,625 68,334,265 212,354 68,546,619 53,236,397 96,195 53,332,592 $ 507,114,021 1,180,177 508,294,198 $ 506,413,658 - 506,413,658 700,363 - 700,363 - 1,180,177 1,180,177 $ 507,114,021 1,180,177 508,294,198 December 31, 2021 December 31, 2020 January 1, 2020 $ 103,899,751 91,883,742 88,594,198 (104,130) (72,433) (102,855) $ 103,795,621 91,811,309 88,491,343 $ 7,562,873 7,828,232 6,449,213
	Core $ 32,249,613 345,570,121 7,723,625 68,334,265 53,236,397 $ 507,114,021 $ 506,413,658 700,363 - $ 507,114,021 December 31, 2021 $ 103,899,751 (104,130) $ 103,795,621 $ 7,562,873	Others 767,482 104,146 - 212,354 96,195 1,180,177 - - 1,180,177 1,180,177 December 31, 2020 91,883,742 (72,433) 91,811,309 7,828,232

For details on notes and accounts receivable and allowance for impairment, please refer to Note 6(c).

The amount of revenue recognized for the years ended December 31, 2021 and 2020 were $3,118,347 and $7,431,819, respectively.

The contract liabilities primarily relate to deferred recognition of warranty revenue, for which revenue is recognized when the warranties are redeemed or when they expire.

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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT'D)

For the years ended December 31, 2021 and 2020

(Expressed in Thousands of New Taiwan Dollars, Unless Otherwise Specified)

(w) Remunerations of employees and directors

The Company's articles of incorporation require that earnings shall first be offset against any deficit. A minimum of 3% will be distributed as employee remuneration and a maximum of 3% will be allocated as directors' remuneration.

If the employee remuneration is distributed in the form of stock or cash, the employees qualifying for such distribution shall include the employees of the subsidiaries of the Company who meet certain specific requirements. Such qualified employees and the distribution ratio shall be decided by the Board of Directors.

The remuneration of employees amounted to $558,931 and $675,529 and the remuneration of directors amounted to $83,422 and $123,674 for the years ended December 31, 2021 and 2020, respectively. These amounts are calculated using the Company's profit before tax for each period described above, and are determined using the earnings allocation method which stated under the Company's article. These remunerations were expensed under operating cost or expenses in 2021 and 2020. Related information would be available at the Market Observation Post System after the meeting of the shareholders has been convened.

There were no differences between the amounts to be distributed as remuneration to employees and directors in 2021 and 2020 and the amounts stated in the individual reports.

(x) Non-operating income and expenses

1.Interest income

The details of interest income were as follows:

The details of interest income were as follows:
Interest income from bank deposits	For the years ended December 31
		2020
		1,186,629

2.Other income

The details of other income were as follows:

The details of other income were as follows:
Rent income Dividend income	For the years ended December 31
		2020
		246,232 30,069
		276,301

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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT'D)

For the years ended December 31, 2021 and 2020

(Expressed in Thousands of New Taiwan Dollars, Unless Otherwise Specified)

3.Other gains and losses

The details of other income and losses were as follows:

Foreign exchange losses (Losses) gains on disposal of investments Net gains on financial assets (liabilities) measured at fair value through profit or loss Gains (losses) on disposal of property, plant and equipment Impairment losses on property, plant and equipment Other impairment losses Others

4.Finance costs

The details of finance expenses were as follows:

Interest expenses Bank borrowings Others		For the years ended December 31	For the years ended December 31
			2020
			609,087 445,157
			1,054,244

(y) Financial instruments

1.Credit risks

1) Credit risks exposure

The carrying amounts of financial assets and contract assets represented the maximum credit risk exposure of the Group.

2) Condition of credit risk concentration

Implicit credit risk of the Group is inherent in its cash and accounts receivable. The cash is deposited in different financial institutions. The Company manages the credit risk exposure with each of these financial institutions and believes that cash do not have a significant credit risk concentration.

The major customers of the Group are centralized in the high-tech computer industry. To minimize credit risk, the Company periodically evaluates the Company’s financial positions and the possibility of collecting trade receivables.

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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT'D)

For the years ended December 31, 2021 and 2020

(Expressed in Thousands of New Taiwan Dollars, Unless Otherwise Specified)

Besides, the Consolidated Company monitors and reviews the recoverable amount of the trade receivables to ensure the uncollectible amount are recognized appropriately as impairment loss. Therefore, the executives evaluate the Group's credit risk to be limited.

As of December 31, 2021 and 2020, 60% and 63% of accounts receivable were attributable to two major customers. Thus, credit risk is significantly centralized.

2.Liquidity risks

The following are the contractual maturities of financial liabilities of the Group, including estimation of interest, but excluding the impact of netting arrangements:

December 31, 2021 Non-derivative financial liabilities Secured bank loans Unsecured bank loans Accounts payable Other payables Lease liabilities Derivative financial liabilities Forward exchange contracts not used for hedging: Outflow Inflow Foreign exchange swap contracts not used for hedging: Outflow Inflow December 31, 2020 Non-derivative financial liabilities Secured bank loans Unsecured bank loans Accounts payable Other payables Lease liabilities Derivative financial liabilities Forward exchange contracts not used for hedging: Outflow Inflow Foreign exchange swap contracts not used for hedging: Outflow Inflow	Carrying amounts $ 4,090,708 61,642,809 84,907,477 10,524,706 876,493 109,891 - 2,242 - $ 162,154,326 $ 3,594,825 37,617,499 74,370,226 11,595,245 964,514 210,598 - 39,538 - $ 128,392,445	Contractual cash flows 4,393,692 61,728,151 84,907,477 10,524,706 955,665 (17,267,921) 17,158,030 (1,242,815) 1,240,573 162,397,558 3,871,406 39,026,892 74,370,226 11,595,245 1,100,855 (18,092,129) 17,881,531 (3,209,668) 3,170,130 129,714,488	Within 6 months 201,243 61,728,151 84,907,477 10,524,706 103,414 (17,267,921) 17,158,030 (1,242,815) 1,240,573 157,352,858 182,167 33,256,306 74,370,226 11,595,245 115,403 (18,092,129) 17,881,531 (3,209,668) 3,170,130 119,269,211	6 to 12 months 199,555 - - - 101,797 - - - - 301,352 181,354 29,234 - - 134,958 - - - - 345,546	1 to 2 years 398,544 - - - 187,361 - - - - 585,905 447,247 5,741,352 - - 171,981 - - - - 6,360,580	2 to 5 years 2,312,741 - - - 375,356 - - - - 2,688,097 1,462,220 - - - 394,867 - - - - 1,857,087	Over 5 years
							1,281,609 - - - 187,737 - - - -
							1,469,346
							1,598,418 - - - 283,646 - - - -
							1,882,064

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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT'D)

For the years ended December 31, 2021 and 2020

(Expressed in Thousands of New Taiwan Dollars, Unless Otherwise Specified)

The Group does not expect the cash flows included in the maturity analysis to occur significantly earlier or at significantly different amounts.

3.Currency risks
1) Exposure to currency risks

The Group's significant exposure to foreign currency risks from its foreign currency denominated financial assets and liabilities was as follows:

Financial assets Monetary items USD CNY JPY Non-monetary items USD Financial Liabilities Monetary items USD CNY		December 31, 2021
	Foreign currency (In thousand) $ 6,675,602 549,375 119,462 1,192,315 5,855 68,148 5,699,357 1,158,418 132,624 735,012	Exchange rate TWD USD：TWD 27.67 184,713,907 USD：CNY 6.38 15,201,206 USD：CZK 21.94 3,305,514 CNY：USD 0.16 5,174,528 JPY：TWD 0.24 1,396 USD：TWD 27.67 1,885,659 USD：TWD 27.67 157,701,208 USD：CNY 6.38 32,053,426 USD：CZK 21.94 3,669,706 CNY：USD 0.16 3,189,879

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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT'D)

For the years ended December 31, 2021 and 2020

(Expressed in Thousands of New Taiwan Dollars, Unless Otherwise Specified)

Financial assets Monetary items USD CNY JPY Non-monetary items USD Financial Liabilities Monetary items USD CNY		December 31, 2020
	Foreign currency (In thousand) $ 5,480,099 433,993 317,555 3,553,701 7,167 57,844 4,480,491 242,494 396,525 345,548	Exchange rate TWD USD：TWD 28.48 156,073,220 USD：CNY 6.52 12,360,121 USD：CZK 21.38 9,043,960 CNY：USD 0.15 15,511,194 JPY：TWD 0.27 1,935 USD：TWD 28.48 1,647,427 USD：TWD 28.48 127,604,384 USD：CNY 6.52 6,906,229 USD：CZK 21.38 11,293,032 CNY：USD 0.15 1,508,248

2) Sensitivity analysis

The Group's exposure to foreign currency risks arises from the translation of the foreign currency exchange gains and losses on cash and cash equivalents, accounts receivable, other receivables, loans and borrowings, accounts payable and other payables that are denominated in foreign currency. A 0.5% depreciation or appreciation of the functional currency against all the non-functional currency as of December 31, 2021 and 2020 would have increased or decreased the net profit after tax by $53,011 and $179,933, respectively. The analysis is performed on the same basis for both periods.

3) Gains or losses on foreign exchange

Since the Group has many kinds of functional currency, the information on foreign exchange gain (loss) on monetary items is disclosed by total amount. For the years ended December 31, 2021 and 2020, the foreign exchange loss, including realized and unrealized, amounted to $351,570 and $461,964, respectively.

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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT'D)

For the years ended December 31, 2021 and 2020

(Expressed in Thousands of New Taiwan Dollars, Unless Otherwise Specified)

4.Interest rate analysis

The Group’s financial assets and financial liabilities with interest rate exposure risk were noted in the liquidity risk section.

The following sensitivity analysis in interest rates is based on the risk exposure to interest rates on the reporting date. For variable rate instruments, the sensitivity analysis assumes the variable rate liabilities are outstanding for the whole year on the reporting date.

If the interest rate increases or decreases by 0.5%, the Group’s profit will decrease or increase by $11,000 and $12,200 for the years ended December 31, 2021 and 2020, respectively, assuming all other variable factors remain constant. This is mainly due to the Group's variable rate in borrowings and time deposits.

5.Fair value of financial instruments
1) Fair value hierarchy

The Group uses the observable market data to evaluate its assets and liabilities. The different inputs of levels of fair value hierarchy in determination of fair value are as follows:

‧Level 1:quoted prices (unadjusted) in active markets for identified assets or liabilities.
‧Level 2:inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices).
‧Level 3:inputs for the assets or liability that are not based on observable market data (unobservable inputs).

Financial assets and liabilities at fair value through profit or loss and financial assets at fair value through other comprehensive income is measured on a recurring basis. However, for financial instruments not measured at fair value whose carrying amount is estimated reasonably close to the fair value, and for equity investments that has no quoted prices in the active markets and whose fair value cannot be reliably measured, the disclosure of their fair value information is not required:

	December 31, 2021	December 31, 2021	December 31, 2021
Book Value $ 192,087 2,045,743 2,237,830		Fair Value
	Level 1 - 181,738 181,738	Level 2 192,087 - 192,087	Level 3 - 1,864,005 1,864,005	Total 192,087 2,045,743
				2,237,830

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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT'D)

For the years ended December 31, 2021 and 2020

(Expressed in Thousands of New Taiwan Dollars, Unless Otherwise Specified)

December 31, 2021	December 31, 2021	December 31, 2021
	Fair Value
Level 1 Level 2 Level 3 1,689,197 - - - 845 4,023,869 1,689,197 845 4,023,869 - - - - - - - - - 1,870,935 192,932 5,887,874 - 112,133 - - - - - - - - - - - - - - - - - 112,133 - December 31, 2020			Total 1,689,197 4,024,714
			5,713,911
			- -
			-
			7,951,741
			112,133
			- - - -
			-
			112,133

	Fair Value
Level 1 - 377,800 377,800 1,420,469 - 1,420,469	Level 2 251,174 - 251,174 - 75,822 75,822	Level 3 - 1,064,970 1,064,970 - 3,567,206 3,567,206	Total 251,174 1,442,770
			1,693,944
			1,420,469 3,643,028
			5,063,497

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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT'D)

For the years ended December 31, 2021 and 2020

(Expressed in Thousands of New Taiwan Dollars, Unless Otherwise Specified)

December 31, 2020

					Fair	Value
	Book Value		Level 1	Level	2	Level 3	Total
Financial assets measured at
amortized cost
Cash and cash equivalents		32,951,595	-	-		-	-
Accounts receivable and other
receivables		92,655,750	-	-		-	-
Subtotal		125,607,345	-	-		-	-
Total	$	132,364,786	1,798,269	326,996		4,632,176	6,757,441
Financial liabilities at fair value
through profit or loss
Derivative financial liabilities	$	250,136	-	250,136		-	250,136
Financial liabilities measured at
amortized cost
Bank loans		41,212,324	-	-		-	-
Account payable		74,370,226	-	-		-	-
Other payable		11,595,245	-	-		-	-
Lease liabilities		964,514	-	-		-	-
Subtotal		128,142,309	-	-		-	-
Total	$	128,392,445	-	250,136		-	250,136

2) Valuation techniques and assumptions for financial instruments measured at fair value:

The fair value of financial assets and liabilities was decided in accordance with the solutions as follows:

(2.1) Non-derivative financial instruments
A. The stocks of listed companies are financial assets with standard terms which are traded in the active markets. Their fair values are based on the quoted market prices.
B. The fair value of private equity is based on standard terms and quoted market prices.
C. The fair value of unquoted equity instruments was estimated using the market comparable price or net asset value method. The assumption of market comparable price method was based on a comparison between the market prices of each listed company, multiplied by using the estimated price. The discount effect is adjusted due to lack of market liquidity in equity securities.
D. The fair value of unquoted instruments was estimated using either the discounted cash flow model in which future cash flow were estimated and discounted or the fair value of the recognized assets and liabilities of the investee on the measurement day.
(2.2) Derivative financial instruments

Foreign exchange swap and forward exchange were usually evaluated in the latest forward rate.

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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT'D)

For the years ended December 31, 2021 and 2020

(Expressed in Thousands of New Taiwan Dollars, Unless Otherwise Specified)

3) Transfers between level 1 and level 2

There were no transfers between level 1 and level 2 of the fair value for the years ended December 31, 2021.

As of May 29, 2020, Entire Technology Co., Ltd. listed its equity shares on Taiwan Stock Exchange, and they are currently actively traded in the market. Because the equity shares now have a published price quotation in an active market, the fair value measurement was transferred from Level 3 to Level 1 of the fair value hierarchy as of June 30, 2020.

4) The following table shows the movements in fair value measurements under level 3 of the fair value hierarchy:

Balance as of January 1, 2021 Total gains and losses recognized in Profit or loss Other comprehensive income Purchase Disposals Proceeds from capital reduction Effect of movements in exchange rates Balance as of December 31, 2021 Balance as of January 1, 2020 Total gains and losses recognized in Profit or loss Other comprehensive income Purchase Disposals Transfers out of Level 3 Effect of movements in exchange rates Balance as of December 31, 2020	At fair value through profit or loss $ 1,064,970 70,628 - 833,425 (103,824) - (1,194) $ 1,864,005 $ 3,717,254 78,434 - 7,617,410 (10,159,972) (74,980) (113,176) $ 1,064,970	Fair value through other comprehensive income 3,567,207 - (289,028) 752,249 (240) (4,838) (1,481) 4,023,869 2,114,517 - 206,885 1,258,524 (14,150) - 1,431 3,567,207

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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT'D)

For the years ended December 31, 2021 and 2020

(Expressed in Thousands of New Taiwan Dollars, Unless Otherwise Specified)

For the years ended December 31, 2021 and 2020, the total gains and losses included in “other gains and losses” and “unrealized gains and losses from financial assets at fair value through other comprehensive income” were as follows:

Total gains and losses recognized: In profit or loss, and presented in “other gains and losses” In other comprehensive income, and presented in “unrealized gains and losses from financial assets at fair value through other comprehensive income”	For the years ended December 31, 2021 2020 $ 69,414 (5,737) (289,023) 206,885

5) Quantified information for significant unobservable inputs (Level 3) used in fair value measurement

The Group uses level 3 inputs to measure fair value through profit or loss, and fair value through other comprehensive income financial assets. Quantified information of significant unobservable inputs was as follows:

The Relationship between Significant Significant Non-observable Item Valuation Technique Non-observable Input Input and Fair Value Financial assets at fair value Discounted Cash Flow ‧ Discounted Rate ‧ The higher the discount through profit or loss－financial Method (2.40%~3.60% on rate, the lower the fair value instruments without an active December 31, 2021 and market 3.20% on December 31, 2020) Financial assets at fair value Net Asset Value Method ‧ Net Asset Value ‧ Not applicable － through profit or loss equity instruments investments without an active market Financial assets at fair value Comparable Listed ‧ Market Multiple ‧ The estimated fair value － through profit or loss equity Companies Method (1.37~2.58) would increase (decrease) if instruments investments without ‧ Discount due to Lack of the price of earnings ratio an active market multiple is higher (lower) Market liquidity (30%) and the marketability discount is lower (higher) Financial assets at fair value Comparable Listed ‧ Market Multiple ‧ The estimated fair value through other comprehensive Companies Method (0.58~5.09) would increase (decrease) if income－equity instruments ‧ Discount due to Lack of the price of earnings ratio investments without an active multiple is higher (lower) Market liquidity market and the marketability (30%~45%) discount is lower (higher) Financial assets at fair value Net Asset Value Method ‧ Net Asset Value ‧ Not applicable

Financial assets at fair value through other comprehensive income －equity instruments investments without an active market

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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT'D)

For the years ended December 31, 2021 and 2020

(Expressed in Thousands of New Taiwan Dollars, Unless Otherwise Specified)

6) Sensitivity analysis for fair values of financial instruments using Level 3 Inputs

The Group's fair value measurement on financial instruments is reasonable. However, the measurement would differ if different valuation models or valuation parameters are used. For financial instruments using level 3 inputs, if the valuation parameters are changed, the impact on net income or loss and other comprehensive income or loss will be as follows:

December 31, 2021 Financial assets at fair value through profit or loss Financial instruments without an active market Financial assets at fair value through other comprehensive income Equity instruments without an active market December 31, 2020 Financial assets at fair value through profit or loss Financial instruments without an active market Financial assets at fair value through other comprehensive income Equity instruments without an active market	Input Discount Rate Market Multiple Discount Rate Market Multiple	Variation	Impact on Fair V Net incom	alue Change on e or loss Unfavorable Change (6,674) - (13,709) -	Impact on Fair Value Change on Other Comprehensive income or loss Favorable Change Unfavorable Change - - 20,087 (20,087) - - 17,790 (17,790)
			Favorable Change $ 6,674 - $ 13,709 -
		0.5% 0.5% 0.5% 0.5%

The favorable change and unfavorable change refer to the fluctuation of fair value. The fair value is calculated based on the different levels of unobservable inputs. The table above shows the impact on single input. Therefore, the relations and variations between inputs are not considered.

6.Offsetting financial assets and financial liabilities

The Group has financial instrument transactions, applicable to the International Financial Reporting Standards Sections 42 NO. 32 approved by the FSC, which required for offsetting. Financial assets and liabilities relating those transactions are recognized in the net amount of the balance sheets.

The Group also performs transactions not compliance with offsetting term of statement, but the Group has an exercisable master netting arrangement or similar agreement in place with its counterparties, and both parties reach a consensus regarding net settlement. The aforesaid exercisable master netting arrangement or similar agreement can be net settled after offsetting the financial assets and financial liabilities. Otherwise, the transaction can be settled at the total amount. In the event of default involving one of the parties, the other party can have the transaction net settled.

The following tables present the aforesaid offsetting financial assets and financial liabilities.

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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT'D)

For the years ended December 31, 2021 and 2020

(Expressed in Thousands of New Taiwan Dollars, Unless Otherwise Specified)

December 31, 2021

	December 31, 2021	December 31, 2021	December 31, 2021	December 31, 2021	December 31, 2021
Offsetting agreement Derivative financial instruments Total	Financial assets that are offset which have an exercisable master netting arrangement or similar agreement
	Gross amounts of recognized financial assets (a) $ 391,122,834 103,916 $ 391,226,750	Gross amounts of financial liabilities offset in the balance sheet (b) 390,805,219 - 390,805,219	Net amount of financial assets presented in the balance sheet (c)=(a)-(b) 317,615 103,916 421,531	Amounts not off set in the balance sheet (d) Financial instruments (Note) Cash collateral received - - - - - -	Net amount (e)=(c)-(d)
				Financial instruments (Note) - - -
					317,615 103,916
					421,531

			December 31, 2021	December 31, 2021	December 31, 2021
Financial liabilities that are			offset which have an exercisable master netting arrangement or similar agreement
Gross amounts of recognized financial liabilities (a) $ 109,968		Gross amounts of financial assets offset in the balance sheet (b) -	Net amount of financial liabilities presented in the balance sheet (c)=(a)-(b) 109,968 December	Amounts not off set in the balance sheet (d) Financial instruments (Note) Cash collateral received - - 31, 2020	Net amount (e)=(c)-(d)
				Financial instruments (Note) - 31, 2020
					109,968

	Financial assets that are offset which have an exercisable master netting arrangement or similar agreement
		Gross amounts of financial liabilities offset in the balance sheet (b) 389,593,639 - 389,593,639	Net amount of financial assets presented in the balance sheet (c)=(a)-(b) 446,035 72,194 518,229 December	Amounts not off set in the balance sheet (d) Financial instruments (Note) Cash collateral received - - - - - - 31, 2020	Net amount (e)=(c)-(d)
				Financial instruments (Note) - - - 31, 2020
					446,035 72,194
					518,229

	Financial liabilities that are		offset which have an exercisable master netting arrangement or similar agreement
		Gross amounts of financial assets offset in the balance sheet (b) -	Net amount of financial liabilities presented in the balance sheet (c)=(a)-(b) 182,068	Amounts not off set in the balance sheet (d) Financial instruments (Note) Cash collateral received - -	Net amount (e)=(c)-(d)
				Financial instruments (Note) -
					182,068

Note: Master netting arrangements are included.

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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT'D)

For the years ended December 31, 2021 and 2020

(Expressed in Thousands of New Taiwan Dollars, Unless Otherwise Specified)

(z) Financial risk management

1.Overview

The Group have exposures to the following risks from its financial instruments:

1) credit risk

2) liquidity risk

3) market risk

The following likewise discusses the Group’s objectives, policies and processes for measuring and managing the above mentioned risks. For more disclosures about the quantitative effects of these risks exposures, please refer to the respective notes in the accompanying consolidated financial statements.

2.Risk management framework

The group are exposed to credit risk, market risk, operating risk and liquidity risk due to its operating activities. To lower the latent unfavorable effects of changing market to the Group's financial performance, the Group have made efforts in identifying and evaluating the risks and avoiding the uncertainty of the market through derivative financial instruments.

The Board of Directors has the overall responsibility for the establishment and oversight of the Group’s risk management framework. The financial units follows the risk management policies, and report the operating status to the Board of Directors regularly. The internal auditors perform regular reviews by taking risk management control procedures and report to the Board of Directors.

3.Credit risk

Please refer to Note 6(y) for the analysis of credit risk of cash, cash equivalent and accounts receivable.

4.Liquidity risk

Liquidity risk is a risk that the Group is unable to meet the obligations associated with its financial liabilities that are settled by delivering cash or another financial asset. The Group’s approach to managing liquidity is to ensure, as much as possible, that it always have sufficient liquidity to meet its liabilities when due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the Group’s reputation.

The Group use actual cost to estimate the cost of its products and services to better assist the Group's monitoring on the cash flow and optimizing the return on investment. As of December 31, 2021, the capital and working funds of the Group are sufficient to meet its entire contractual obligation; therefore, the management is not expecting any significant issue on liquidity risk. As of December 31, 2021 and 2020, the Group's unused credit line were amounted to $53,778,358 and $70,541,804, respectively.

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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT'D)

For the years ended December 31, 2021 and 2020

(Expressed in Thousands of New Taiwan Dollars, Unless Otherwise Specified)

5.Market risk

Market risk is the risk that changes in market prices, such as foreign exchange rates, interest rate, and equity prices which will affect the Group’s income or the value of its holdings of financial instruments. The objective of market risk management is to manage and control market risk exposures within acceptable parameters while optimizing the return.

The Group buys and sells derivatives, and also incurs financial liabilities, in order to manage market risks. All such transactions are carried out within the guidelines set by the Group.

1) Currency risk

The Group is exposed to currency risk on sales, purchases and borrowings that are denominated in a currency other than the respective functional currencies of the Group’s entities, primarily the New Taiwan Dollars (TWD), US Dollars (USD), Czech Koruna (CZK), Japanese Yen (JPY) and China Yuan (CNY). The currencies used in these transactions are denominated in TWD, USD, JPY and CNY.

The Group often uses the principle of natural hedging as its basis, and proceed supplemented by derivative instruments for hedging exchange rate risk.

The interest is denominated in the same currency as borrowings. Generally, borrowings are denominated in currencies that match the cash flows generated by the underlying operations of the Group. This provides an economic hedge without derivatives being entered into, and therefore, hedge accounting is not applied in these circumstances.

In respect of other monetary assets and liabilities denominated in foreign currencies, the Group ensures that its net exposure is kept to an acceptable level by buying or selling foreign currencies at spot rates when necessary to address short-term imbalances.

2) Interest rate risk

The Group's interest rate risk arises from long-term borrowings bearing floating interest rates. The fluctuation of the market interest rate changes the floating interest rates of the long-term borrowings, and thus affect the future cash flow. In order to decrease the effect of the market interest rate fluctuation on to the future cash flow, the Group periodically evaluates bank and currency borrowing rate to hedge the cash flow risk caused by the market interest rate fluctuation.

(aa) Capital Management

The Board’s policy is to maintain a strong capital base so as to maintain investor, creditor and market confidence and to sustain future development of the business. Capital consists of ordinary shares, additional paid-in capital, retained earnings, other equity interest and non-controlling interests of the Group. The Board of Directors monitors the return on capital as well as the level of dividends to ordinary shareholders.

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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT'D)

For the years ended December 31, 2021 and 2020

(Expressed in Thousands of New Taiwan Dollars, Unless Otherwise Specified)

The group's objective for managing capitals is to maintain investor, creditor and market confidence, and to sustain future development of the business by making debts and capital the most suitable capital structure and optimizing the best of it based on industrial scales, future growth development, and capital expenditures needed for plants and equipment. Thus, the Group calculates the operating funds based on the life cycle of the products, plans for the development in the long run, and then decides the most suitable capital structure considering the business cycle.

The Group ensures the financial resources and the operating plan are sufficient to support the future needs of operating funds, capital expenditures, debt refunding and dividend distribution.

The Group’s debt to equity ratio at the reporting date was as follows:

Total Liabilities Less: cash and cash equivalents Net debt Total Equity Adjusted Capital Debt to capital ratio	December 31, 2021 $ 191,217,328 (34,787,912) $ 156,429,416 $ 56,398,094 $ 56,398,094 % 277.37	December 31, 2020 156,270,694 (32,951,595) 123,319,099 57,890,743 57,890,743 % 213.02

According to the Company's management, there were no changes in the Group's approach to capital management as of December 31, 2021.

(ab) Investing and financing activities not affecting the current cash flow

The Group's investing and financing activities which did not affect the current cash flow in the nine months ended December 31, 2021 and 2020, were as follows:

1.For right-of-use assets under leases, please refer to Note 6(i).

2.Reconciliation of liabilities arising from financing activities were as follows:

Long-term borrowings Short-term borrowings (including current portion of long-term borrowings) Lease liabilities (Note) Total liabilities from financing activities	January 1, 2021 $ 8,990,825 32,221,499 964,514 $ 42,176,838	Cash flows 2,043,430 22,864,212 (209,820) 24,697,822	Non-cash changes Reclassification Foreign exchange movement (7,217,500) (26,047) 7,217,500 (360,402) 185,965 (64,166) 185,965 (450,615)	December 31, 2021
			Reclassification (7,217,500) 7,217,500 185,965 185,965
				3,790,708 61,942,809 876,493
				66,610,010

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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT'D)

For the years ended December 31, 2021 and 2020

(Expressed in Thousands of New Taiwan Dollars, Unless Otherwise Specified)

Long-term borrowings Short-term borrowings (including current portion of long-term borrowings) Lease liabilities (Note) Total liabilities from financing activities	January 1, 2020 $ 3,883,134 25,525,579 1,177,080 $ 30,585,793	Cash flows 5,331,728 6,502,586 (199,245) 11,635,069	Non-cash changes Reclassification Foreign exchange movement (300,000) 75,963 300,000 (106,666) (6,985) (6,336) (6,985) (37,039)	December 31, 2020
			Reclassification (300,000) 300,000 (6,985) (6,985)
				8,990,825 32,221,499 964,514
				42,176,838

Note: Reclassification is due to additional and early terminated lease liability during this period.

(7) Related Parties Transactions

(a) Names and relationships with related parties

The followings are entities that have had transactions with related party during the periods covered in the consolidated financial statements.

the consolidated financial statements.
Names of related party	Relationships with the Group
Inventec Besta Co., Ltd.	Associates
Inventec Besta (XiAn) Co., Ltd.	Subsidiary of associates
Gainia Intellectual Asset Services, Inc.	Associates
Good Future Biomedical Technology Corp.	Associates
Inventec Group Charity Foundation	Over one-third of total amount of fund donated by
	the Company
Kou-I Yeh	Director of the Board of the Company
Ching-Sung Chang	Director of the Board of the Company

(b) Significant transactions with related parties
1.Sale revenue

The amounts of significant sales transactions between the Group and related parties were as follows:

Associates Other related parties	For the years ended December 31 2021 2020 $ 60,419 88,274 1,546 310 $ 61,965 88,584	For the years ended December 31	For the years ended December 31
			2020
			88,274 310
			88,584

For associates and other related parties, the price and terms were determined in accordance with mutual agreements with its collection terms of 30~90 days for sales. Receivables from related parties were not secured with collaterals, and did not require provisions for impairment.

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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT'D)

For the years ended December 31, 2021 and 2020

(Expressed in Thousands of New Taiwan Dollars, Unless Otherwise Specified)

2.Purchase

The amounts of significant purchase transactions between the Group and related parties were as follows:

Associates		For the years ended December 31	For the years ended December 31
			2020
			6,672

There is no other vendor as comparison for the above purchases, and the purchase prices are based on the settling price agreed by both sides. The payment term is 30~75 days.

3.Accounts receivable from related parties

The amounts of accounts receivable between the Group and related parties were as follows:

Account	Related Party Categories	December 31, 2021 $ 154 2,471 $ 2,625	December 31, 2020
Accounts receivable Other receivables	Associates Associates		75,749 66
			75,815

4.Accounts payable to related parties

The amounts of accounts payables between the Group and related parties were as follows:

Account	Related Party Categories	December 31, 2021 $ - 2,816 300,000 $ 302,816	December 31, 2020
Accounts payable Other payables 〞	Associates Associates Other related parties		678 1,046 300,000
			301,724

As of December 31, 2021 and 2020, the Group borrowed the amount of $300,000 from shareholders, which were accounted as other payables. The borrowing interest rate was 1.50%.

5.Property transactions
1) Acquisition of property, plant, equipment, intangible assets and other assets

For the years ended December 31, 2021 and 2020, the Group purchased equipment, intangible assets and other assets from Inventec Besta Co., Ltd. and paid the amount of $10,390 and $12,620, respectively.

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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT'D)

For the years ended December 31, 2021 and 2020

(Expressed in Thousands of New Taiwan Dollars, Unless Otherwise Specified)

2) In 1999, the Group sold property, deferred assets, assets stated under expense, and trademarks to Inventec Besta Co., Ltd., resulting in a gain on property disposal of $51,712 and other revenue of $40,453. As of December 31, 2021 and 2020, the unrealized other revenues are both $1,211.
3) Disposal of property, plant, equipment, intangible assets and other assets

For the year ended December 31, 2021, the Group sold its other assets to Inventec Besta Co., LTD. with a total price and gain on disposal amounted to $1,060 thousand.

6.Others

1) Rental and other revenue collected from related parties were as follows:

Associates Donations to other related parties were as follows: Other related parties		For the years ended December 31	For the years ended December 31
			2020
			6,206

2) Donations to other related parties were as follows:
3) Payments for system development expenses, maintenance expenses and service expenses to associates were as follows:

associates were as follows:
Associates	For the years ended December 31
		2020
		3,935

Key management personnel compensation comprised:

Key management personnel compensation comprised:
Short-term employee benefits Post-employment benefit	For the years ended December 31
		2020
		494,902 6,192
		501,094

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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT'D)

For the years ended December 31, 2021 and 2020

(Expressed in Thousands of New Taiwan Dollars, Unless Otherwise Specified)

(8) Pledged Assets

The carrying amounts of pledged assets were as follows:

Pledged assets	Object	December 31, 2021 $ 370,203 695,032 8,945,371 $ 10,010,606	December 31, 2020
Refundable deposits (Other non-current assets) Restricted cash in banks (Other current assets and Other non-current assets) Land, buildings, structures, machinery and equipment (Property, plant and equipment and right-of-use assets) Total	Membership guarantee and rental deposit Guarantee and the account of repatriated offshore funds Current portion long-term borrowings, as well as long-term borrowings and credit line		69,662 1,127,892 8,438,458
			9,636,012

(9) Significant Commitments and Contingencies

(a) Major Commitments:
1.Unused standby letters of credit were as follows:

EUR USD TWD	December 31, 2021 December 31, 2020 $ - 360 - 56 - 25,345

2.Promissory notes issued for bank credit, forward contracts, secured deposits for executing technology agreements with the government and property deposits were as follows:

TWD USD	December 31, 2021 December 31, 2020 $ 22,120,465 21,940,262 1,813,400 1,776,400

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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT'D)

For the years ended December 31, 2021 and 2020

(Expressed in Thousands of New Taiwan Dollars, Unless Otherwise Specified)

(b) Payment orders and other significant disclosures
- 1.On December 13, 2021, Inventec Solar Energy Corporation received a civil ruling from the Taiwan Taipei District Court. On June 28, 2021, Inventec Solar Energy Corporation was ordered to pay Mega International Commercial Bank Co., Ltd. (“Mega Bank”) TWD 603,670 with interest of promissory note in the amount of TWD 609,000, issued by Inventec Solar Energy Corporation. On January 5, 2022, Inventec Solar Energy Corporation sent a letter to Mega Bank indicating that Mega Bank had allocated proportionally the remaining balance of the working capital supervisory special account held by Inventec Solar Energy Corporation to each creditor bank. The amount distributed to Mega Bank was TWD 22,553. Accordingly, the claim amount of Mega Bank should be reduced to TWD 581,117 instead of the amount set out in the promissory note ruling.
- 2.On December 24, 2021, Inventec Solar Energy Corporation received a civil payment order from the Taiwan Taoyuan District Court. Inventec Solar Energy Corporation was requested to pay CTBC Bank Co., Ltd. TWD 150,000 with the interest and penalty as shown in the application. Inventec Solar Energy Corporation filed an objection on January 5, 2022.
- 3.On January 26, 2022, Inventec Solar Energy Corporation received a civil payment order from the Taiwan Taoyuan District Court. Inventec Solar Energy Corporation was requested to pay Taiwan Land Bank Co., Ltd. TWD 58,338 with the interest and penalty as shown in the application. Inventec Solar Energy Corporation has no objection.
- 4.On February 11, 2022, Inventec Solar Energy Corporation received a civil payment order from the Taiwan Taoyuan District Court. Inventec Solar Energy Corporation was requested to pay Changhua Commercial Bank Co., Ltd. TWD 30,744, EUR 67 thousand, USD 2,149 thousand with the interest and penalty as shown in the application. Inventec Solar Energy Corporation has no objection.
- 5.On February 16, 2022, Inventec Solar Energy Corporation received a civil payment order from the Taiwan Taoyuan District Court. Inventec Solar Energy Corporation was requestd to pay the Bank of Taiwan TWD 90,901, USD 3,903 thousand with the interest and penalty as shown in the application. Inventec Solar Energy Corporation has no objection.
(10) Losses Due to Major Disasters: None.
(11) Subsequent Events: None.

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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT'D)

For the years ended December 31, 2021 and 2020

(Expressed in Thousands of New Taiwan Dollars, Unless Otherwise Specified)

(12) Other

(a) The employee benefits, depreciation, depletion and amortization expenses categorized by function were as follows:

By function By item	For the nine months ended September 30, 2021	For the nine months ended September 30, 2021	For the nine months ended September 30, 2021	For the nine months ended September 30, 2020	For the nine months ended September 30, 2020	For the nine months ended September 30, 2020
	Operating costs	Operating and non-operating expense	Total	Operating costs	Operating and non-operating expense	Total
Employee benefits Salary Labor and health insurance Pension Others Depreciation Amortization	8,162,075 760,960 599,946 541,914 1,544,474 192,549	8,934,465 786,195 500,016 308,288 816,739 709,059	17,096,540 1,547,155 1,099,962 850,202 2,361,213 901,608	8,860,268 778,575 608,446 506,400 1,894,677 220,322	8,666,824 696,797 421,871 268,056 1,006,921 731,620	17,527,092 1,475,372 1,030,317 774,456 2,901,598 951,942

(13) Other disclosures

(a) Information on significant transactions

The following is the information on significant transactions required by the “Regulations Governing the Preparation of Financial Reports by Securities Issuers” for the Group for the year ended December 31, 2021:

Loans to other parties:

(In Thousands of New Taiwan Dollars)

Number	Name of lender	Name of borrower	Account name	Related party	Highest balance of financing to other parties during the period	Ending balance	Actual usage amount during the period	Range of interest rates during the period	Purposes of fund financing for the borrower	Transaction amount for business between two parties	Reasons for short-term financing	Allowance for bad debt	Coll	ateral	Individual funding loan limits	Maximum limit of fund financing
													Item	Value
1 2 3 4	Inventec Appliances (Nanjing) Corp.(Note 2) Inventec Appliances (Shanghai) Co., Ltd.(Note 2) Inventec Appliances Corp.(Note 3) Inventec (Pudong) Corp.(Note 4)	Inventec Appliances (XI'AN) Corporation Inventec Appliances (Nanchang) Intelligent Manufacturing Co., Ltd. Inventec Appliances (Malaysia) SDN. BHD. Inventec Hi-Tech Corp.	Other receivables Other receivables Other receivables Other receivables	Y Y Y Y	83,353 259,140 1,600,000 87,740	60,760 130,200 1,245,150 -	34,720 130,200 751,526 -	3.045% 3.045% 1.20% -	2 2 2 2	- - - -	Working Capital 〞〞〞	- - - -	None 〞〞〞	- - - -	356,573 1,614,887 1,569,836 4,179,252	356,573 1,614,887 3,139,673 4,179,252

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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT'D)

For the years ended December 31, 2021 and 2020

(Expressed in Thousands of New Taiwan Dollars, Unless Otherwise Specified)

Number	Name of lender	Name of borrower	Account name	Related party	Highest balance of financing to other parties during the period	Ending balance	Actual usage amount during the period	Range of interest rates during the period	Purposes of fund financing for the borrower	Transaction amount for business between two parties	Reasons for short-term financing	Allowance for bad debt	Collateral	Collateral	Individual funding loan limits	Maximum limit of fund financing
													Item	Value
4	Inventec (Pudong) Corp.(Note 4)	Inventec Asset- Management (Shanghai) Corporation r	Other eceivables	Y	2,764,160	1,388,800	1,388,800	5.225%	2	-	Working Capital	-	None	-	1,671,700	1,671,700

Note 1: Purpose of fund financing for the borrower:
- (1) Those with business contact, please fill in 1.
- (2) Those necessary for short term financing, please fill in 2.
Note 2: Among Subsidiaries which the parent company holds 100% voting power, aggregate amount of loans shall not exceed the Company's net worth as stated in its latest financial report, and each amount of loans shall not exceed 100 percent of the permitted aggregate amount of loans of the company.
Note 3: Where an inter-company or inter-firm short-term financing facility is necessary, total financing amount shall not exceed 40 percent of the company's net worth as stated in its latest financial report. Each financing amount shall not exceed 50 percent of the permitted aggregate amount of loans of the company.
Note 4: Where an inter-company or inter-firm short-term financing facility is necessary, total financing amount shall not exceed 40 percent of the company's net worth as stated in its latest financial report. Each financing amount shall not exceed 100 percent of the permitted aggregate amount of loans of the company. Among Subsidiaries which the parent company holds 100% voting power, aggregate amount of loans shall not exceed the Company's net worth as stated in its latest financial report, and each amount of loans shall not exceed 100 percent of the permitted aggregate amount of loans of the company.
Note 4: The transactions in foreign currencies were translated into New Taiwan Dollars using spot rates at the financial report date.
Guarantees and endorsements for other parties:

(In Thousands of New Taiwan Dollars)

No.	Name of guarantor	Counter-party of g endorsem	uarantee and ent	Limitation on amount of guarantees and endorsements for a specific enterprise	Highest balance for guarantees and endorsements during the period	Balance of guarantees and endorsements as of reporting date	Actual usage amount during the period	Property pledged for guarantees and endorsements (Amount)	Ratio of accumulated amounts of guarantees and endorsements to net worth of the latest financialstatements	Maximum amount for guarantees and endorsements	Parent company endorsements /guarantees to third parties on behalf of subsidiary	Subsidiary endorsements/ guarantees to third parties on behalf of parent company	Endorsement s/guarantees to third parties on behalf of companies in Mainland China
		Name	Relationshi p with the Company
0 1	The Company Inventec Appliances Corp.	IEC Technologies, S.DE R.L. DE C.V. Inventec Appliances (Malaysia) SDN. BHD.	2 2	28,542,352 3,924,591	278,400 1,164,141	276,700 1,128,866	- 832,863	- -	% 0.48 % 14.38	28,542,352 3,924,591	Y N	N N	N N

Note 1: The relationship between the entity for which the endorsement/guarantee is made and the Company: 1.The Company has business relationship.
2.Subsidiaries in which the Company holds more than 50 percent of its voting power.
3.A investee in which the Company and subsidiary holds more than 50 percent of its voting shares.
4.Subsidiaries in which the Company holds more than 90 percent of its voting power.
5.Companies in accordance with contractual provisions established by mutual applicants or in need of project.
6.Companies that are endorsed and guaranteed by all capital shareholders based on their shareholding ratio due to a joint investment relationship.
7.The performance of pre-sale house sales contract between intra-industry companies is in accordance with the Consumer Protection Law required joint guarantees.

Note 2: Both the aggregate amount of endorsements/guarantees and the amount of endorsements/guarantees for a single enterprise by the Company's cannot exceed 50 percent of its net worth as stated in its latest financial statement.

Note 3: Both the aggregate amount of endorsements/guarantees and the amount of endorsements/guarantees for a single enterprise by Inventec Appliance Corp. cannot exceed 50 percent of its net worth as stated in its latest financial statement.

Note 4: The transactions in foreign currencies were translated into New Taiwan Dollars using spot rates at the financial report date.

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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT'D)

For the years ended December 31, 2021 and 2020

(Expressed in Thousands of New Taiwan Dollars, Unless Otherwise Specified)

Securities held at the reporting date (excluding investment subsidiaries, associates and joint ventures) :

(In Thousands of New Taiwan Dollars)

Name of holder	Category and name of security	Relationship with company	Account title		Ending balance	Ending balance	Ending balance	Highest percentage of ownership (%) during the year	Note
				Shares/Units (thousands)	Carrying value	Percentage of ownership (%)	Fair value (Note1)
The Company 〞〞〞〞〞〞〞〞〞〞〞〞〞〞〞〞〞〞〞〞〞	WIN Semiconductors Corp. Amphastar Pharmaceuticals Inc. Arima Communications Corp. Tomorrow Studio Co., Ltd Tai Yi Precision Corporation New E Materials Co., Ltd. Rasilient Systems, Inc. preference share SKSpruce Holding Limited preferred stock CloudMosa Technologies, Inc. preferred stock QEEXO, Co. preferred stock Rescale, Inc. preferred stock Sensel, Inc. preferred stock ASOCS LTD. preferred stock Atayalan, Inc. preferred stock ZT Group Int'l, Inc. SKSpruce Holding Limited convertible short-term note Empass Technology Entire Technology Co., Ltd. E-TON Solar Tech. Co., Ltd Imedtac Co., Ltd. TMY Technology Inc. Enflex Corporation	- - - - - - - - - - - - - - - - - - - - - -	Current financial assets at fair value through other comprehensive income Non-current financial assets at fair value through other comprehensive income 〞〞〞〞〞〞〞〞〞〞〞〞〞 Current financial assets at fair value through profit or loss Non-current financial assets at fair value through profit or loss 〞〞〞〞〞	4,063 26 21,114 29 2,540 1,760 3,632 3,746 235 568 355 532 360 1,553 70 - 495 3,260 94,889 1,200 2,857 750	1,521,476 16,630 845 156 - 8,941 - 45,054 - 22,750 12,385 - - 13,895 2,031,072 17,712 17,464 114,198 540,866 54,480 57,200 4,747	% 0.96 % 0.05 % 10.15 % 0.20 % 6.67 % 16.00 % 6.20 % 3.72 % 2.95 % 3.09 % 1.17 % 3.37 % 1.44 % 3.65 % 10.00 % - % 6.75 % 4.13 % 29.70 % 9.42 % 8.00 % 0.99	1,521,476 16,630 845 156 - 8,941 - 45,054 - 22,750 12,385 - - 13,895 2,031,072 17,712 17,464 114,198 540,866 54,480 57,200 4,747	% 0.96 % 0.05 % 10.15 % 0.20 % 6.67 % 16.00 % 6.20 % 3.72 % 2.95 % 3.09 % 1.17 % 3.37 % 1.44 % 3.65 % 10.00 % - % 6.75 % 4.13 % 29.70 % 9.42 % 8.00 % 0.99

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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT'D)

For the years ended December 31, 2021 and 2020

(Expressed in Thousands of New Taiwan Dollars, Unless Otherwise Specified)

Name of holder	Category and name of security	Relationship with company	Account title		Ending balance	Ending balance	Ending balance	Highest percentage of ownership (%) during the year	Note
				Shares/Units (thousands)	Carrying value	Percentage of ownership (%)	Fair value (Note1)
Inventec (Cayman) Corp. Saint Investment Consulting Corporation 〞〞〞 Inventec (Chongqing) Corp. Inventec Hi-Tech Corp. 〞 Inventec (Beijing) Electronics Technology Co., Ltd. Inventec Electronics (Tianjin) Co., Ltd. Inventec Development Japan Corporation Inventec Investments Co., Ltd. 〞〞〞〞	Chainwin Biotech and Agrotech (Cayman Islands) Co., Ltd. Testron Technology (JiangSu) Co., Ltd. Hunan Titanium Xpower Integrated Circuits Co., LTD. Shanghai Starfive Technology Co., Ltd. Guangdong StarFive Technology Co., Ltd. Kunshan Joing Technology Co., Ltd. SCSB Winners Zun Chong Jun Xiang Financial Product SCSB Winners Yijing Ling Financial Product Bank of Communications Pension CNY Financial products ICBC Wealth Management Corporation Tian Libao No. 2 Net Worth Management Product Famm Co., Ltd. ENNOSTAR Inc. UCFUNNEL CO LTD Sagacity Tech. Co., Ltd. Living Pattern Technology Inc. E-TON Solar Tech. Co., Ltd	- - - - - - - - - - - - - - - -	Non-current financial assets at fair value through other comprehensive income 〞〞〞〞 Current financial assets at fair value through profit or loss 〞〞〞〞 Non-current financial assets at fair value through other comprehensive income Current financial assets at fair value through profit or loss Non-current financial assets at fair value through other comprehensive income 〞〞 Non-current financial assets at fair value through profit or loss	30,000 2,778 417 17 522 5,948 - - - 100 881 83 79 4 15,813	1,465,197 68,571 43,399 2,775 84,023 206,435 433,992 216,995 52,947 156,237 12,347 67,540 12,303 391 530 90,135	% 13.17 % 10.00 % 4.00 % 0.66 % 0.66 % 2.96 % - % % - % - % 16.00 % 0.13 % 5.00 % 15.00 % 13.70 % 4.95	1,465,197 68,571 43,399 2,775 84,023 206,435 433,992 216,995 52,947 156,237 12,347 67,540 12,303 391 530 90,135	% 13.17 % 10.00 % 4.00 % 0.73 % 0.73 % 2.96 % - % % - % - % 16.00 % 0.16 % 0.05 % 15.00 % 13.70 % 4.95

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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT'D)

For the years ended December 31, 2021 and 2020

(Expressed in Thousands of New Taiwan Dollars, Unless Otherwise Specified)

Name of holder	Category and name of security	Relationship with company	Account title		Ending balance	Ending balance	Ending balance	Highest percentage of ownership (%) during the year	Note
				Shares/Units (thousands)	Carrying value	Percentage of ownership (%)	Fair value (Note1)
Inventec Appliances Corp. 〞〞〞〞〞〞〞〞〞〞〞 Inventec Appliances (Cayman) Holding Corp. 〞〞	SCOPE INDUSTRIES BERHAD Rong Cheng Tech. Co., Ltd. Tai Yi Precision Corporation Siano Mobile Silicon Inc. All People Health Social Enterprise Co.,Ltd. GCT Semiconductor, Inc. Pandigital Worldwide, Ltd. preferred stock 3GTMobile Corporation Linc Global Inc. (Proximiant, Inc.) preferred stock Molekule, Inc. preferred stock XMEMS LABS INC Cardio Ring Technologies, Inc. convertible long-term note Siano Mobile Silicon Inc. Leadtone Limited(Class B preferred stock) Digital Chaotex Holdings Ltd.( Class A2 preferred stock)	- - - - - - - 〞 - - - - - - -	Non-current financial assets at fair value through other comprehensive income 〞〞〞〞〞〞〞〞〞〞 Non-current financial assets at fair value through profit or loss Non-current financial assets at fair value through other comprehensive income 〞〞	84,444 1,950 635 461 100 93 939 314 594 1,603 2,974 - 99 1,250 446	151,091 - - - 1,000 - - - - 152,800 46,280 14,795 - - -	% 7.32 % 9.38 % 1.67 % 0.15 % 11.76 % 0.12 % 4.80 % 2.88 % 5.30 % 1.50 % 3.62 % - % 0.03 % 2.36 % 2.08	151,091 - - - 1,000 - - - - 152,800 46,280 14,795 - - -	% 7.32 % 9.38 % 1.67 % 0.15 % 11.76 % 0.12 % 4.80 % 2.88 % 5.30 1.57 % 4.53 % - % 0.03 % 2.36 % 2.08

Note 1: The value of listed company is market value, and the value of unlisted company is net asset value. The net asset value uses recent audited or unaudited financial statements.

Note 2: The transactions in foreign currencies were translated into New Taiwan Dollars using spot rates at the financial report date.

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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT'D)

For the years ended December 31, 2021 and 2020

(Expressed in Thousands of New Taiwan Dollars, Unless Otherwise Specified)

Individual securities acquired or disposed of with accumulated amount exceeding the lower of TWD300 million or 20% of the capital stock:

(Amounts Expressed in Thousands of New Taiwan Dollars)

Name of company	Security type and name (Note 1)	Account name (Note 1)	Counter-party	Relationship	Beginning Balance	Beginning Balance	Acquistion	Acquistion	Disposal	Disposal	Disposal	Disposal	Ending Balance	Ending Balance
					Shares	Amount	Shares	Amount	Shares	Price	Cost	Gain (loss) on disposal	Shares	Amount
Inventec (Cayman) Corp. Inventec Hi-Tech Corp.	Chainwin Biotech and Agrotech (Cayman Islands) Co., Ltd. common shares SCSB Winners Zan Chong Jun Xiang Financial Product	Non-current financial assets at fair value through other comprehensive income Non-current financial assets at fair value through other comprehensive income	Cash Capital Increase Bank of Shanghai	Non-related parties 〞	20,000 -	1,175,931 -	10,000 -	289,266 433,992	- -	- -	- -	- -	30,000 -	1,465,197 433,992

Note 1: The ending balance includes adjustments of valuation. Note 2: The transactions in foreign currencies were translated into New Taiwan Dollars using spot rates at the financial report date.

Acquisition of individual real estate with amount exceeding the lower of TWD300 million or 20% of the capital stock:

(In Thousands of New Taiwan Dollars)

Name of company	Name of property	Transaction date	Transaction amount	Status of payment	Counter-party	Relationship	If the cou the	nter-party is a r previous transf	elated par er informa	ty, disclose tion	References for determining price	Purpose of acquisition and current condition	Others
							Owner	Relationship with the Company	Date of transfer	Amount
IEC TECHNOLGOIES, S. DER. L. DEC. V.	Engaging others to build on the company's own land 2	August 10, 021	USD 75,900	13%	FERROMINIO DISENO Y CONSTRUCCION S.A. DE C.V. etc.	Non-related parties	-	-	-	-	N/A	Engaging others to build on the company's own land	N/A

Disposal of individual real estate with amount exceeding the lower of TWD300 million or 20% of the capital stock:

(Amounts Expressed in Thousands of New Taiwan Dollars)

Name of company	Types of property	Transaction Date	Original Acquisition Date	Book value	Transaction amount (Note 1)	Receipt Terms	Gain (loss) on disposal	Counter-party	Relationship	Purpose o disposal	f Price reference	Other terms
Inventec (pudong) Technology Corp. Inventec Hi-Tech Corp.	Land and Building Land and Building	April 27, 2021 April 27, 2021	2006 2006	327,952 52,426	1,482,932 759,634	100% 100%	1,080,844 664,487	Shanghai Chengye Apartment Management Co., Ltd Shanghai Tiantang Apartment Management Co., Ltd	Non-related parties a Non-related parties a	Optimize ssets Optimize ssets	Negotiated based on the valuation report with the amount of RMB318,576 and RMB311,780 Negotiated based on the valuation report with the amount of RMB167,148 and RMB158,520	None None

Note 1: The price has been included tax, and the transfer has been completed.

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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT'D)

For the years ended December 31, 2021 and 2020

(Expressed in Thousands of New Taiwan Dollars, Unless Otherwise Specified)

Related-party transactions for purchases and sales with amounts exceeding the lower of TWD100 million or 20% of the capital stock:

(In Thousands of New Taiwan Dollars)

Name of company	Related party	Nature of relationship		Transacti	on details		Trans diffe	actions with terms rent from others	Notes/Accounts r	eceivable (payable)	Note
			Purchase/ Sale	Amount	Percentage of total purchases/sale	Payment terms	Unit price	Payment terms	Ending balance	Percentage of total notes/accounts receivable (payable)
The Company 〞〞〞〞〞〞 Inventec Holding (North America) Corp. 〞〞〞〞〞 Inventec (Czech), s.r.o. 〞〞〞 Inventec Corporation (Hong Kong) Ltd. 〞〞〞	Inventec Holding (North America) Corp. Inventec (Czech), s.r.o. AIMobile Co., Ltd. Inventec Corporation (Hong Kong) Ltd. Inventec Appliances (Jiangning) Corp. Inventec Holding (North America) Corp. Inventec (Czech), s.r.o. The Company The Company Inventec (Pudong) Technology Corp. SQ Technology (Shanghai) Corporation Inventec (Czech), s.r.o. Inventec (Czech), s.r.o. The Company The Company Inventec Holding (North America) Corp. Inventec Holding (North America) Corp. The Company Inventec (Pudong) Technology Corp. SQ Technology (Shanghai) Corporation Inventec (Chongqing) Corp.	Subsidiary Subsidiary 〞〞〞 Subsidiary 〞 Parent 〞 Associates 〞〞〞 Parent 〞 Associates 〞 Parent Associates 〞〞	Sales Sales Sales Purchases Purchases Purchases Purchases Purchases Sales Sales Sales Sales Purchases Purchases Sales Purchases Sales Sales Purchases Purchases Purchases	78,253,326 24,182,011 126,159 329,539,123 332,244 272,247 6,374,456 78,253,326 272,247 260,657 361,682 299,299 177,769 24,182,011 6,374,456 299,299 177,769 329,539,123 27,541,156 12,286,557 289,711,410	% 17.75 % 5.48 % 0.03 % 74.67 % 0.08 % 0.06 % 1.44 % 91.84 % 0.35 % 0.34 % 0.47 % 0.39 % 0.23 % 95.65 % 32.33 % 1.26 % 0.90 % 100.00 % 8.36 % 3.73 % 87.91	105 days 105 days 60 days 90-105 days 90 days 105 days 105 days 105 days 105 days 105 days 105 days 105 days 105 days 105 days 105 days 105 days 105 days 90-105 days 105 days 105 days 90 days	- - - - - - - - - - - - - - - - - - - - -	No general trading partner can be compared. 〞〞〞〞〞〞〞〞〞〞〞〞〞〞〞〞〞〞〞〞	31,814,854 3,655,074 19,206 (68,023,513) (41,698) (640,011) (260,946) (31,231,633) 265,477 208 268,798 - - (3,655,074) 260,946 - - 68,023,513 (6,592,888) (4,992,920) (56,437,706)	% 30.62 % 3.52 % 0.02 % 58.13 % 0.04 % 0.55 % 0.22 % 98.08 % 2.25 % - % 2.28 % - % - % 99.05 % 9.79 % - % - % 53.97 % 5.23 % 3.96 % 44.77

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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT'D)

For the years ended December 31, 2021 and 2020

(Expressed in Thousands of New Taiwan Dollars, Unless Otherwise Specified)

Name of company	Related party	Nature of relationship		Transacti	on details		Trans diffe	actions with terms rent from others	Notes/Accounts r	eceivable (payable)	Note
			Purchase/ Sale	Amount	Percentage of total purchases/sale	Payment terms	Unit price	Payment terms	Ending balance	Percentage of total notes/accounts receivable (payable)
Inventec (Pudong) Technology Corp. 〞〞 Inventec (Pudong) Technology Corp. 〞 Inventec (Shanghai) Corp. 〞 Inventec (Chongqing) Corp. SQ Technology (Shanghai) Corporation 〞〞〞〞 Inventec Appliances Corp. 〞〞〞〞	Inventec Corporation (Hong Kong) Ltd. Inventec (Shanghai) Corp. SQ Technology (Shanghai) Corporation Inventec Holding (North America) Corp. SQ Technology (Shanghai) Corporation Inventec (Pudong) Technology Corp. SQ Technology (Shanghai) Corporation Inventec Corporation (Hong Kong) Ltd. Inventec Corporation (Hong Kong) Ltd. Inventec (Shanghai) Corp. Inventec (Pudong) Technology Corp. Inventec (Pudong) Technology Corp. Inventec Holding (North America) Corp. Inventec Appliances (Pudong) Corp. Inventec Appliances (Jiangning) Corp. Inventec Appliances (Nanchang) Intelligent Manufacturing Co., Ltd. Inventec Appliances (Malaysia) SDN. BHD. Inventec Appliances (USA) Distribution Corp.	Associates 〞〞〞〞〞〞〞〞〞〞〞〞〞〞〞〞〞	Sales Sales Sales Purchases Purchases Purchases Purchases Sales Sales Sales Sales Purchases Purchases Purchases Purchases Purchases Purchases Purchases	27,541,156 8,927,664 12,575,075 260,657 183,548 8,927,664 13,576,729 289,711,410 12,286,557 13,576,729 183,548 12,575,075 361,682 22,755,398 1,201,076 665,462 510,042 997,740	% 53.35 % 17.29 % 24.36 % 0.58 % 0.40 % 39.67 % 60.33 % 99.78 % 24.23 % 26.77 % 0.36 % 17.69 % 0.64 % 78.73 % 4.16 % 2.30 % 1.76 % 3.40	105 days 105 days 105 days 105 days 105 days 105 days 105 days 90 days 105 days 105 days 105 days 105 days 105 days 1-2 months 1-2 months 1-2 months 1-2 months 1-2 months	- - - - - - - - - - - - - - - - - -	No general trading partner can be compared. 〞〞〞〞〞〞〞〞〞〞〞〞〞〞〞〞〞	6,592,888 29,047 5,795,040 (208) (183,071) (29,047) (5,739,082) 56,437,706 4,992,920 5,739,082 183,071 (5,795,040) (268,798) (7,037,783) (185,364) (59,560) (270,985) 235,787	% 51.79 % 0.23 % 45.52 % - % 1.66 % 0.49 % 96.25 % 99.71 % 26.67 % 30.66 % 0.98 % 25.51 % 1.18 % 86.19 % 2.27 % 0.73 % 3.32 % 3.19

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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT'D)

For the years ended December 31, 2021 and 2020

(Expressed in Thousands of New Taiwan Dollars, Unless Otherwise Specified)

Name of company	Related party	Nature of relationship		Transacti	on details		Trans diffe	actions with terms rent from others	Notes/Accounts r	eceivable (payable)	Note
			Purchase/ Sale	Amount	Percentage of total purchases/sale	Payment terms	Unit price	Payment terms	Ending balance	Percentage of total notes/accounts receivable (payable)
Inventec Appliances (USA) Distribution Corp. Inventec Appliances (Pudong) Corp. 〞 Inventec Appliances (Pudong) Corp. Inventec Appliances (Jiangning) Corp. 〞 Inventec Appliances (Nanchang) Intelligent Manufacturing Co., Ltd. 〞 Inventec Appliances (Malaysia) SDN. BHD. 〞 AIMobile Co., Ltd.	Inventec Appliances Corp. Inventec Appliances Corp. Inventec Appliances (Nanchang) Intelligent Manufacturing Co., Ltd. Inventec Appliances (Malaysia) SDN. BHD. Inventec Appliances Corp. The Company Inventec Appliances Corp. Inventec Appliances (Pudong) Corp. Inventec Appliances Corp. Inventec Appliances (Pudong) Corp. The Company	Associates 〞〞〞〞 Parent Associates 〞〞〞 Parent	Purchases Sales Sales Sales Sales Sales Sales Purchases Sales Sales Purchases	997,740 22,755,398 491,258 484,048 1,201,076 332,244 665,462 491,258 510,042 484,048 126,159	% 100.00 % 96.60 % 2.09 % 0.33 % 26.46 % 7.38 % 99.15 % 75.53 % 51.63 % 48.28 % 57.02	1-2 months 1-2 months 1-2 months 1-2 months 90 days 90 days 60 days 1-2 months 1-2 months 1-2 months 60 days	- - - - - - - - - - -	No general trading partner can be compared. 〞〞〞〞〞〞〞〞〞〞	(235,787) 7,037,783 225,811 (243,919) 185,364 41,698 59,560 (225,811) 270,985 243,919 (19,206)	% 100.00 % 96.76 % 3.10 % 3.67 % 21.11 % 4.75 % 97.68 % 95.22 % 52.55 % 47.30 % 32.50

Note 1: Based on the negotiated price while trading.

Note 2: The aforementioned inter-company transactions were eliminated in the consolidated financial statements.

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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT'D)

For the years ended December 31, 2021 and 2020

(Expressed in Thousands of New Taiwan Dollars, Unless Otherwise Specified)

Receivables from related parties with amounts exceeding the lower of NT$100 million or 20% of capital stock:

(Expressed in Thousands of New Taiwan Dollars)

Name of company	Counter party	Relationship	Ending balance	Turnover	Ov	erdue	Amounts received in subsequent period	Allowance for bad debts
					Amount	Action taken
The Company 〞〞 Inventec Holding (North America) Corp. 〞 Inventec (Czech), s.r.o. Inventec Corporation (Hong Kong) Ltd. 〞〞〞 Inventec (Pudong) Technology Corp. 〞 Inventec (Chongqing) Corp. SQ Technology (Shanghai) Corporation 〞〞 Inventec Appliances Corp. Inventec Appliances (Pudong) Corp. Inventec Appliances (Pudong) Corp. Inventec Appliances (Jiangning) Corp. Inventec Appliances (Malaysia) SDN. BHD. 〞	Inventec Holding (North America) Corp. Inventec (Czech), s.r.o. Inventec Corporation (Hong Kong) Ltd. (Note) The Company SQ Technology (Shanghai) Corporation The Company The Company Inventec (Pudong) Technology Corp. (Note) SQ Technology (Shanghai) Corporation (Note) Inventec (Chongqing) Corp. (Note) Inventec Corporation (Hong Kong) Ltd. SQ Technology (Shanghai) Corporation Inventec Corporation (Hong Kong) Ltd. Inventec Corporation (Hong Kong) Ltd. Inventec (Shanghai) Corp. Inventec (Pudong) Technology Corp. Inventec Appliances (USA) Distribution Corp. Inventec Appliances Corp. Inventec Appliances (Nanchang) Intelligent Manufacturing Co., Ltd. Inventec Appliances Corp. Inventec Appliances Corp. Inventec Appliances (Pudong) Corp.	Subsidiary Subsidiary Subsidiary Parent Associates Parent Parent Associates Associates Associates Associates Associates Associates Associates Associates Associates Subsidiary Associates Associates Associates Associates Associates	31,814,854 3,655,074 57,988,820 265,477 268,798 260,946 68,023,513 3,144,201 14,390,816 40,453,802 6,592,888 5,795,040 56,437,706 4,992,920 5,739,082 183,071 235,787 7,037,783 225,811 185,364 270,985 243,919	3.23 3.31 - 1.66 2.69 31.90 5.73 - - - 3.69 4.34 6.09 4.92 4.73 2.01 6.39 2.83 3.51 5.44 3.76 3.97	6,506,965 397 3,963,832 30,221 87 - 1,311,706 280,597 3,683,235 - - 4,888,395 - 1,311,706 - 126,417 - - - - - -	Received in the subsequent period Received in the subsequent period Received in the subsequent period Received in the subsequent period Received in the subsequent period Received in the subsequent period Received in the subsequent period Received in the subsequent period Received in the subsequent period Received in the subsequent period Intensive follow-up on collection	14,337,974 2,142,143 42,771,214 50,729 259,663 260,946 57,427,681 2,364,730 1,165 40,405,318 1,343,241 5,641,167 56,081,341 3,100 3,929,816 - 132,760 3,758,763 - 185,067 270,985 208,019	- - - - - - - - - - - - - - - - - - - - - -

Note 1: The receivables were not yielded by sales or purchases; therefore, there is no turnover rate.

Note 2: The aforementioned inter-company transactions were eliminated in the consolidated financial statements.

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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT'D)

For the years ended December 31, 2021 and 2020

(Expressed in Thousands of New Taiwan Dollars, Unless Otherwise Specified)

Trading in derivative instruments: Please refer to notes (6)(b) and (6)(y).
Business relationships and significant inter-company transactions:

No.	Name of company	Name of counter party	Existing relationship with the counter- party		Intercompany Transactions	Intercompany Transactions
				Account name	Amount	Terms of trading	Percentage of the consolidated total revenue or total assets
0 0 1 2 3 4	Inventec Corporation Inventec Corporation 〞〞〞〞〞 Inventec Corporation (Hong Kong) Ltd. 〞〞〞〞〞〞〞〞 Inventec (Pudong) Technology Corp. 〞〞 SQ Technology (Shanghai) Corporation 〞 Inventec Appliances Corp. 〞	Inventec Holding (North America) Corp. Inventec Holding (North America) Corp. Inventec (Czech), s.r.o. 〞 Inventec Corporation (Hong Kong) Ltd. 〞〞 Inventec (Pudong) Technology Corp. 〞〞 SQ Technology (Shanghai) Corporation 〞〞 Inventec (Chongqing) Corp. 〞〞 Inventec (Shanghai) Co., Ltd. SQ Technology (Shanghai) Corporation 〞 Inventec (Shanghai) Co., Ltd. 〞 Inventec Appliances (Pudong) Corp. 〞	1 1 1 1 1 1 1 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3	Sales Accounts Receivable Sales Accounts Receivable Purchases Other Receivables Accounts Payable Purchases Accounts Payable Accounts Receivable Purchases Accounts Payable Accounts Receivable Purchases Accounts Payable Accounts Receivable Sales Sales Accounts Receivable Sales Accounts Receivable Purchases Accounts Payable	78,253,326 31,814,853 24,182,011 3,655,074 329,539,123 57,988,820 68,023,513 27,541,156 6,592,888 3,144,201 12,286,557 4,992,920 14,390,816 289,711,410 56,437,706 40,453,802 8,927,664 12,575,075 5,795,040 13,576,729 5,739,082 22,755,398 7,037,783	Negotiated price 105 days Negotiated price 105 days Negotiated price 90-105 days 〞 Negotiated price 105 days 〞 Negotiated price 105 days 〞 Negotiated price 90 days 〞 Negotiated price Negotiated price 105 days Negotiated price 105 days Negotiated price 1-2 months	% 15 % 13 % 5 % 1 % 63 % 23 % 27 % 5 % 3 % 1 % 2 % 2 % 6 % 56 % 23 % 16 % 2 % 2 % 2 % 3 % 2 % 4 % 3

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Note 1: Company numbering as follows:
1.Parent company - 0.
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2.Subsidiaries starts from 1.

Note 2: The numbering of the relationship between transaction parties as follows: 1.Parent company to subsidiary.

2.Subsidiary to parent company.

3.Subsidiary to subsidiary.

Note 3: The transaction amount is calculated as a proportion of the consolidated revenue or assets. If categorized as an asset or liability, the calculation is compared with the consolidated asset; if categorized as income or loss, the calculation is compared with the consolidated operating revenue.

〜 88 〜

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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT'D)

For the years ended December 31, 2021 and 2020

(Expressed in Thousands of New Taiwan Dollars, Unless Otherwise Specified)

(b) Information on investments:

The following is the information on investees for the year ended December 31, 2021 (excluding investees in Mainland China):

(In Thousands of New Taiwan Dollars, Except for Share Data)

Investor company	Investee company	Location	Main businesses and products	Original inves	tment amount	Balance a	s of December 3	1, 2021	Highest percentage of ownership during the year	Net income (loss) of the investee	Share of profits/losses of investee	Note
				December 31, 2021	December 31, 2020	Shares/Units (In thousands)	Percentage of ownership	Carrying value
The Company 〞〞〞〞〞〞〞〞〞〞〞 Inventec Investment Co., Ltd.	Inventec Besta Co., Ltd. Inventec Corporation (Hong Kong) Ltd. Inventec Holding (North America) Corp. Inventec Appliances Corp. Inventec (Cayman) Corp. IEC (Cayman) Corporation Inventec (Czech), S.R.O. Inventec Investment Co., Ltd. Inventec Solar Energy Corporation Inventec Development Japan Corporation Inventec Japan Corporation AIMobile Co., Ltd. Inventec Solar Energy Corporation	Taipei Hong Kong USA New Taipei City Cayman Cayman Czech Taipei Taoyuan Japan Japan Taipei Taoyuan	Electronic dictionary Trading Holding Company Intelligent device products Holding Company Holding Company Production and sales of computer products Investment Company Sales of solar cells and medical equipment Trading Trading and management service Developing, production and sales of intelligent mobile devices Sales of solar cells and medical equipment	420,347 167,162 353,743 9,656,877 9,812,963 739,500 85,921 1,000,000 1,087,800 630,845 2,954 182,500 150,000	420,347 167,162 159,003 9,656,877 9,812,963 739,500 85,921 1,000,000 1,087,800 630,845 2,954 182,500 150,000	23,405 2,500 2,001 536,857 301,768 25,000 - 108,800 108,150 45 - 18,250 15,000	% 37.53 % 100.00 % 100.00 % 100.00 % 100.00 % 100.00 % 100.00 % 100.00 % 33.45 % 100.00 % 100.00 % 73.00 % 4.64	251,731 389,244 1,496,415 8,618,636 25,340,228 1,426,351 166,344 87,874 (633,253) 19,018 3,044 76,620 (93,579)	% 37.53 % 100.00 % 100.00 % 100.00 % 100.00 % 100.00 % 100.00 % 100.00 % 33.45 % 100.00 % 100.00 % 73.00 % 4.64	109,291 27,093 59,949 157,700 4,892,191 276,704 59,237 (39,996) (1,057,139) (746) 300 (62,961) (1,057,139)	41,015 27,093 59,949 157,700 4,892,191 276,704 59,237 (39,996) (337,049) (746) 300 (45,969) -	Investment accounted for using equity method Subsidiary 〞〞〞〞〞〞〞〞〞〞 Associate Company

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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT'D)

For the years ended December 31, 2021 and 2020

(Expressed in Thousands of New Taiwan Dollars, Unless Otherwise Specified)

Investor company	Investee company	Location	Main businesses and products	Original investment amount	Original investment amount	Balance as of December 31, 2021	Balance as of December 31, 2021	Balance as of December 31, 2021	Highest percentage of ownership during the year	Net income (loss) of the investee	Share of profits/losses of investee	Note
				December 31, 2021	December 31, 2020	Shares/Units (In thousands)	Percentage of ownership	Carrying value
Inventec Appliances Corp. 〞〞〞 Inventec Appliances (Cayman) Holding Corp. 〞 Inventec Appliences (Pudong) Corp.	Inventec Appliances (Cayman) Holding Corp. Gainia Intellectual Asset Services, Inc. Good Future Biomedical Technology Corp. Inventec Solar Energy Corporation Inventec Appliances (USA) Distribution Corp. Inventec Appliances Corporation USA, Inc. Inventec Appliances (Malaysia) SDN. BHD.	Cayman Taipei Taoyuan Taoyuan USA 〞 Malaysia	Holding Company Intellectual property rights integrative services Biotechnology services and retail sale and wholesale of medical divices Sales of solar cells and medical equipment Marketing promotion Sales services Production and sales of intelligent devices	5,522,230 6,400 23,712 311,160 22,136 1,384 801,843	5,522,230 6,400 - 311,160 22,136 1,384 470,503	199,575 205 9,120 30,930 400 10 121,000	% 100.00 % 38.90 % 30.00 % 9.57 % 100.00 % 100.00 % 100.00	15,494,150 977 22,233 (192,960) 90,952 13,434 499,655	% 100.00 % 38.90 % 30.00 % 9.57 % 100.00 % 100.00 % 100.00	(925,513) (914) (5,798) (1,057,139) 909 808 (288,490)	- - - - - - -	Associate Company Investment accounted for using equity method 〞 Associate Company 〞〞〞

Note 1: The aforementioned inter-company transactions have been eliminated in the consolidated financial statements. Note 2: The transactions in foreign currencies were translated into New Taiwan Dollars using spot rates at the financial report date. Note 3: According to the regulations, investment companies other than the Company are not required to disclose the share of income / loss of investees.

(c) Information on investments in Mainland China:
The names of investees in Mainland China, the main businesses and products, and other

information:

(In Thousands of New Taiwan Dollars)

Name of investee	Main businesses and products	Total amount of paid-incapital	Method of investment (Note 1)	Accumulated outflow of investment from Taiwan as of January 1, 2021	Investm	ent flows	Accumulated outflow of investment from Taiwan as of December 31, 2021	Net income (losses) of the investee	Percentage of ownership	Highest percentage of ownership during the yeas	Investment income (losses) (Note 2)	Book value	Accumulated remittance of earnings in current period (Note 6)
					Out-flow	Inflow
Inventec (Shanghai) Service Co., Ltd Inventec (ChongQing) Service Co., Ltd Inventec (Pudong) Co., Ltd.	Sales of computer products Sales of computer products Sales of computer products	317,799 27,670 1,383,500	(2) (2) (2)	55,340 27,670 1,383,500	- - -	- - -	55,340 27,670 1,383,500	(873) (397) 75,879	% 100.00 % 100.00 % 100.00	% 100.00 % 100.00 % 100.00	(873) (397) 75,879	251,825 39,416 4,179,252	30,234 - -

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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT'D)

For the years ended December 31, 2021 and 2020

(Expressed in Thousands of New Taiwan Dollars, Unless Otherwise Specified)

Name of investee	Main businesses and products	Total amount of paid-incapital	Method of investment (Note 1)	Accumulated outflow of investment from Taiwan as of January 1, 2021	Investm	ent flows	Accumulated outflow of investment from Taiwan as of December 31, 2021	Net income (losses) of the investee	Percentage of ownership	Highest percentage of ownership during the yeas	Investment income (losses) (Note 2)	Book value	Accumulated remittance of earnings in current period (Note 6)
					Out-flow	Inflow
Inventec (Shanghai) Co., Ltd. Inventec (ChongQing) Corporation Inventec (Pudong) Technology Corp. Inventec Electronics (Tianjin) Co., Ltd. Inventec (Beijing) Electronics Technology Co., Ltd. Inventec Hi-Tech Corporation Inventec Asset- Management (Shanghai) Corporation Saint Investment consulting corporation SQ Technology (Shanghai) Corporation Truswe (ChongQing) Technology Co.,Ltd Inventec Appliances (Shanghai) Co., Ltd. Inventec Appliances (Pudong) Corp. Inventec Appliances (Jiangning) Corp. Inventec Appliances (Nanjing) Corp. Inventec Appliances (XI'AN) Corporation Inventec Appliances (Nanchang) Corp. APEX Business Management & Consulting (Shanghai) Co., Ltd.	Sales of computer products Production and sales of computer products Production and sales of computer products Electronic product software development Electronic product software development Sales of computer products Leasing Business management Production and sales of computer products Sales of electronic products Development of intelligent devices Production and sales of intelligent devices Production and sales of intelligent devices Production and sales of intelligent devices House leasing Development of intelligent devices Business management	2,075,220 2,075,250 1,621,233 138,350 40,122 1,383,500 1,858,367 216,995 216,995 130,197 1,427,772 2,130,590 1,881,560 138,350 110,680 58,107 2,178	(2) (2) (2) (2) (2) (2) (3) (3) (3) (3) (2) (2) (2) (2) (2) (2) (3)	816,265 2,075,250 1,383,500 117,598 40,122 1,383,500 - - - - 1,331,426 2,130,590 1,162,140 248,518 110,680 58,107 -	- - - - - - - - - - - - - - - - -	- - - - - - - - - - - - - - - - -	816,265 2,075,250 1,383,500 117,598 40,122 1,383,500 - - - - 1,331,426 2,130,590 1,162,140 248,518 110,680 58,107 -	24,325 2,315,700 2,288,343 11,918 2,268 563,662 (22,694) 210 536,144 (4,255) (146,365) (707,488) 300,401 14,665 11,394 (43,694) 24,673	% 100.00 % 100.00 % 100.00 % 100.00 % 100.00 % 100.00 % 78.00 % 100.00 % 100.00 % 20.00 % 100.00 % 100.00 % 100.00 % 100.00 % 100.00 % 100.00 % 100.00	% 100.00 % 100.00 % 100.00 % 100.00 % 100.00 % 100.00 % 78.00 % 100.00 % 100.00 % 20.00 % 100.00 % 100.00 % 100.00 % 100.00 % 100.00 % 100.00 % 100.00	24,325 2,315,700 2,318,301 11,918 2,268 563,662 (17,701) 210 536,144 (851) (146,365) (1,063,560) 300,525 14,665 11,394 (43,694) 24,673	1,872,913 9,326,398 8,716,981 241,208 79,191 1,697,375 1,348,794 217,240 754,864 25,186 1,614,887 7,710,943 5,562,737 395,537 61,898 36,959 108,309	- 2,242,107 321,599 149,517 - - - - - - 1,535,981 2,297,117 1,636,736 85,353 - - -

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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT'D)

For the years ended December 31, 2021 and 2020

(Expressed in Thousands of New Taiwan Dollars, Unless Otherwise Specified)

==> picture [476 x 135] intentionally omitted <==

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

Investment flows Accumulated
Main businesses and Total amount of investmentMethod of investment fromTaiwan as of Accumulatedoutflow of investment fromDecember 31,Taiwan as of outflow of (losses) of theNet income Percentage of percentage ofduring theownershipHighest Investmentincome(losses) current periodremittance ofAccumulatedearnings in
Name of investee products paid-in capital (Note 1) January 1, 2021 Out-flow Inflow 2021 investee ownership yeas (Note 2) Book value (Note 6)
Inventec Appliances Business 34,719 (3) - - - - (3,138) 100.00 % 100.00 % (3,138) 22,092 -
(Shanghai) management
Enterprise
Inventec Appliances Production and sales 260,395 (3) - - - - (101,103) 100.00 % 100.00 % (101,103) 3,663 -
(Nanchang) of intelligent devices
Intelligent
Manufacturing Co.,
Ltd.
Inventec Easy Production and sales 43,399 (3) - - - - (1,010) 100.00 % 100.00 % (1,010) 42,386 -
Doctor Corporation of medical devices
----- End of picture text -----

Upper limit on investment in Mainland China:

2. Upper limit on inve	stment in Mainland China:
Name of Company	Accumulated Investment in Mainland China as of December 31, 2021	Investment Amounts Authorized by Investment Commission, MOEA	Upper Limit on Investment (Note 3,4,7)
The Company Inventec Appliances Corp.	7,340,851 5,103,123	7,340,851 5,103,123	- 4,709,509

Note 1: There are three ways of investments as following:
(1) Direct investment in Mainland China.
(2) Indirect investment in Mainland china through a subsidiary in a third place.
(3) Others

Note 2: The recognition of investment income (loss) is based on the financial statements audited by CPA of the investee company. Note 3: In accordance with the regulation of amended limitation calculation of Investment Commission in 29 August, 2008, MOEA (IDB) committed the Company were in the scope of operating headquarter; therefore there is no need to calculate the limitation.

Note 4: The upper limit on investment of Inventec Appliances Corp. is the higher of 60% of net value or 60% of consolidated net value.

Note 5: The transactions in foreign currencies were translated into New Taiwan Dollars using spot rates at the financial report date. Note 6: The amount of foreign currencies was translated into New Taiwan Dollars at historical exchange rates. Note 7: After the accumulated investment in Mainland China as of December 31, 2021, deducted the accumulated remittance of earnings, the investment amounts of Inventec Appliance Corp. was still under the upper limit on investment.

Note 8: The inter-company transactions were eliminated in the consolidated financial statements

3. Significant transactions:

The significant inter-company transactions with the subsidiary in Mainland China for the year ended December 31, 2021, which were eliminated in the preparation of consolidated financial statements, are disclosed in “Information on significant transactions”.

(d) Information on major shareholders: No shareholders hold more than 5% shares.

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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT'D)

For the years ended December 31, 2021 and 2020

(Expressed in Thousands of New Taiwan Dollars, Unless Otherwise Specified)

(14) Segment Information

(a) General information

The Group's reportable segments: core department and other department. The core department manufactures computer products and intelligent device products and sells them to customers. The other department is engaged in environmental energy and emerging technology business.

The reportable segments are the Group's strategic divisions. They offer different products and services, and are managed separately because they require different technological and marketing strategies.

(b) Information about reportable segments and their measurement and reconciliations

	For the year ended December 31, 2021	For the year ended December 31, 2021
Core $ 519,720,635 - $ 519,720,635 $ 703,142 3,123,244 - $ 8,756,323 $ -	Others Adjustment and Elimination 11,413 - - - 11,413 - 35,295 - 139,577 - 550,703 - (1,057,139) - - - For the year ended December 31, 2020		Total 519,732,048 -
			519,732,048
			738,437 3,262,821 550,703 7,699,184
			-

	Others 1,180,177 - 1,180,177 48,178 470,258 952,222 (1,719,769) -	Adjustment and Elimination - - - - - - - -	Total 508,294,198 -
			508,294,198
			1,054,244 3,853,540 952,222 10,345,705
			-

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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT'D)

For the years ended December 31, 2021 and 2020

(Expressed in Thousands of New Taiwan Dollars, Unless Otherwise Specified)

Taxation or extraordinary activity is not able to be allocated to each reportable segment. In addition, not all reportable segments include depreciation and amortization of significant non-cash items. The reportable amount is the same as the report used by the chief operating decision maker.

The operating segment's accounting policies are similar to those described in Note 2 “Significant accounting policies”. Reportable segment profit or loss is measured by operating profit or loss before taxation, and is used as the base of performance evaluation.

Since the evaluated amount of the Group’s assets was not provided to the chief operating decision maker, the evaluated amount of the assets which should be disclosed was 0.

Segment information was disclosed in consolidated financial statement; therefore it was not disclosed in individual financial statement.

Revenue from the external customers of the Group was as follows:

Products and Services Computer product Rendering of services Others Total	For the years ended December 31,	For the years ended December 31,
	2021 $ 518,945,327 775,308 11,413 $ 519,732,048	2020
		506,413,658 700,363 1,180,177
		508,294,198

(d) Geographical information

In presenting information on the basis of geography, the revenue is based on the geographical location of customers and non-current assets are based on the geographical location of the assets.

By region Revenue from external customers: Taiwan USA Japan Hong Kong, Macao and Mainland China Other countries Total	For the years ended December 31,	For the years ended December 31,
	2021 $ 51,514,446 355,524,787 4,319,623 64,395,784 43,977,408 $ 519,732,048	2020
		33,017,095 345,674,267 7,723,625 68,546,619 53,332,592
		508,294,198

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(English Translation of Consolidated Financial Statements Originally Issued in Chinese) INVENTEC CORPORATION AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT'D)

For the years ended December 31, 2021 and 2020

(Expressed in Thousands of New Taiwan Dollars, Unless Otherwise Specified)

By region Non-current assets Taiwan Mainland China USA Other countries Total	December 31, 2021 $ 14,112,999 15,670,130 948,632 1,301,679 $ 32,033,440	December 31, 2020
		15,677,635 16,105,546 364,272 1,036,387
		33,183,840

Non-current assets include property, plant and equipment, investment property, intangible assets and other assets, not including financial instruments, deferred tax assets, pension fund assets and rights arising from an insurance contract (non-current).

(e) Major customers: Revenue

For the years ended December 31,	For the years ended December 31,
2021 $ 337,445,382	2020
	333,461,728

〜 95 〜

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INVENTEC — Annual Report 2021

52026_rns_2021-11-25_9dca2a2b-1460-4fa4-b618-7b21f00e8cec.pdf

INVENTEC CORPORATION AND SUBSIDIARIES

CONSOLIDATED FINANCIAL STATEMENTS

Table of contents

Representation Letter

KPMG

Independent Auditors’ Report

Opinion

Basis for Opinion

Key Audit Matters

1. Inventory Valuation

How the matter was addressed in our audit:

2. The offsetting agreements of financial assets and liabilities

Description of the key audit matter:

3. Disposal of property, plant and equipment and right-of-use assets of subdidiaries

Other Matter

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

Auditor’s Responsibilities for the Audit of the Consolidated Financial Statements

Notes to Readers

(English Translation of Consolidated Financial Statements Originally Issued in Chinese) INVENTEC CORPORATION AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

December 31, 2021 and 2020

(English Translation of Consolidated Financial Statements Originally Issued in Chinese) INVENTEC CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

For the years ended December 31, 2021 and 2020

(English Translation of Consolidated Financial Statements Originally Issued in Chinese) REVIEWED ONLY, NOT AUDITED IN ACCORDANCE WITH GENERALLY ACCEPTED AUDITING STANDARDS INVENTEC CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

(English Translation of Consolidated Financial Statements Originally Issued in Chinese) INVENTEC CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

For the Years Ended December 31, 2021 and 2020

(Expressed in Thousands of New Taiwan Dollars)

(English Translation of Consolidated Financial Statements Originally Issued in Chinese) INVENTEC CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS (CONT'D)

For the Years Ended December 31, 2021 and 2020

(Expressed in Thousands of New Taiwan Dollars)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

For the years ended December 31, 2021 and 2020

(1) Company History

(2) Financial Statements Authorization Date and Authorization Process

(3) New Standards, Amendments and Interpretations Adopted:

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT'D)

For the years ended December 31, 2021 and 2020

(Expressed in Thousands of New Taiwan Dollars, Unless Otherwise Specified)

(4) Summary of Significant Accounting Policies

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT'D)

For the years ended December 31, 2021 and 2020

(English Translation of Consolidated Financial Statements Originally Issued in Chinese) INVENTEC CORPORATION AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT'D)

For the years ended December 31, 2021 and 2020

(English Translation of Consolidated Financial Statements Originally Issued in Chinese) INVENTEC CORPORATION AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT'D)

For the years ended December 31, 2021 and 2020

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT'D)

For the years ended December 31, 2021 and 2020

2.Foreign operations

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT'D)

For the years ended December 31, 2021 and 2020

1.Financial assets

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT'D)

For the years ended December 31, 2021 and 2020

(Expressed in Thousands of New Taiwan Dollars, Unless Otherwise Specified)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT'D)

For the years ended December 31, 2021 and 2020

(Expressed in Thousands of New Taiwan Dollars, Unless Otherwise Specified)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT'D)

For the years ended December 31, 2021 and 2020

(English Translation of Consolidated Financial Statements Originally Issued in Chinese) INVENTEC CORPORATION AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT'D)

For the years ended December 31, 2021 and 2020

(Expressed in Thousands of New Taiwan Dollars, Unless Otherwise Specified)

(h) Inventories

(English Translation of Consolidated Financial Statements Originally Issued in Chinese) INVENTEC CORPORATION AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT'D)

For the years ended December 31, 2021 and 2020

(Expressed in Thousands of New Taiwan Dollars, Unless Otherwise Specified)

2.Subsequent expenditure

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT'D)

For the years ended December 31, 2021 and 2020

INVENTEC Annual Report 2021