INVENTEC - Audit Report / Information 2020

Stock Code:2356

INVENTEC CORPORATION

PARENT COMPANY ONLY FINANCIAL STATEMENTS

With Independent Auditors’ Report For the Years Ended December 31, 2020 and 2019

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 parent company only 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 parent company only financial statements, the Chinese version shall prevail.

〜 1 〜

Contents 1. Cover Page 2. Table of Contents 3. Independent Auditors’ Report 4. Balance Sheets 5. Statements of Comprehensive Income 6. Statements of Changes in Equity 7. Statements of Cash Flows 8. Notes to the Parent Company Only Financial Statements (1)Overview (2)Financial Statements Authorization Date and Authorization Process (3)New Standards, Amendments and Interpretations not yet Adopted (4)Significant Accounting Policies (5)Significant Accounting Judgments, Estimation, Assumptions, and Sources of Estimation Uncertainty (6)Explanation to Significant Accounts (7)Related Party 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) Major shareholders (14)Segment Information 9. List of major account titles	Page
	1 2 3 4 5 6 7 8 8 8～9 9～25 25～26 26～60 60～64 65 65 65 65 66～67 67～75 75～77 77～79 79 79 80～96

Contents
1. Cover Page
2. Table of Contents
3. Independent Auditors’ Report
4. Balance Sheets
5. Statements of Comprehensive Income
6. Statements of Changes in Equity
7. Statements of Cash Flows
8. Notes to the Parent Company Only Financial Statements
(1)Overview
(2)Financial Statements Authorization Date and Authorization Process
(3)New Standards, Amendments and Interpretations not yet Adopted
(4)Significant Accounting Policies
(5)Significant Accounting Judgments, Estimation, Assumptions, and Sources
of Estimation Uncertainty
(6)Explanation to Significant Accounts
(7)Related Party 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) Major shareholders
(14)Segment Information
9. List of major account titles

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==> picture [169 x 19] intentionally omitted <==

KPMG

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

Independent Auditors’ Report

To the Board of Directors of Inventec Corporation:

Opinion

We have audited the financial statements of Inventec Corporation(“the Company”), which comprise the balance sheet as of December 31, 2020 and 2019, and the statements of comprehensive income, changes in equity and cash flows for the years then ended, and notes to the financial statements, including a summary of significant accounting policies.

In our opinion, the accompanying financial statements present fairly, in all material respects, the financial position of the Company as at December 31, 2020 and 2019, and its financial performance and its cash flows for the years ended December 31, 2020 and 2019 in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers.

Basis for Opinion

We conducted our audits 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 Financial Statements section of our report. We are independent of the Company 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 financial statements of the current period. These matters were addressed in the context of our audit of the 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(g), Note 5(a), and Note 6(e) for accounting policies, significant accounting assumptions and judgments, major sources of estimation uncertainty, and related disclosure information for inventory, respectively.

Description of the key audit matter:

The Company’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.

〜 3 〜

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.

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 Company’s policies.

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

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

In preparing the financial statements, management is responsible for assessing the Company’ 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 Company or to cease operations, or has no realistic alternative but to do so.

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

Auditor’s Responsibilities for the Audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether the 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 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 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 Company’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 Company’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 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 Company to cease to continue as a going concern.

〜 3-1 〜

Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the 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 investment in other entities accounted for using the equity method to express an opinion on the financial statements. We are responsible for the direction, supervision and performance of the audit. We remain soley 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 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 LiuFong Yang.

KPMG

Taipei, Taiwan (Republic of China) March 30, 2021

Notes to Readers

The accompanying parent company only financial statements are intended only to present the 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 parent company only financial statements are those generally accepted and applied in the Republic of China.

The independent auditors’ audit report and the accompanying parent company only 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 parent company only financial statements, the Chinese version shall prevail.

〜 3-2 〜

(English Translation of Parent Company Only Financial Statements Originally Issued in Chinese) INVENTEC CORPORATION

BALANCE SHEETS

December 31, 2020 and 2019

(Expressed in Thousands of New Taiwan Dollars)

ASSETS Current Assets： 1100 Cash and cash equivalents (Notes (4) and (6)(a)) 1110 Current financial assets at fair value through profit or loss (Notes (4) and (6)(b)) 1120 Current financial assets at fair value through other comprehensive income (Notes (4) and (6)(b)) 1170 Accounts receivable, net (Note (4) and (6)(c)) 1180 Accounts receivable due from related parties, net (Notes (4), (6)(c) and (7)) 1200 Other receivables, net (Notes (4), (6)(d) and (7)) 1310 Inventories, manufacturing business, net (Notes (4) and (6)(e)) 1470 Total other current assets (Notes (4) and (6)(k)) Non-current assets： 1510 Non-current financial assets at fair value through profit or loss (Notes 4 and 6(b)) 1517 Non-current financial assets at fair value through other comprehensive income (Notes (4) and (6)(b)) 1550 Investments accounted for using equity method, net (Notes (4) and (6)(f)) 1600 Property, plant and equipment (Notes (4) and (6)(h)) 1755 Right-of-use assets (Notes (4) and (6)(h)) 1780 Intangible assets (Notes (4) and (6)(j)) 1900 Other non-current assets (Notes (4), (6)(k), (6)(p), (7) and (8)) TOTAL ASSETS	2020.12.31 Amount % $ 5,266,122 3 267,589 - 1,405,689 1 59,166,735 29 27,718,823 13 54,926,635 27 2,387,945 1 2,871,207 1 154,010,745 75 821,436 - 2,215,585 1 33,775,936 16 13,535,629 7 9,057 - 66,262 - 1,807,999 1 52,231,904 25 $ 206,242,649 100	2019.12.31 Amount % 4,698,660 3 182,104 - 1,194,430 1 46,901,062 27 27,188,723 15 47,453,959 27 3,878,921 2 385,103 - 131,882,962 75 - - 2,074,739 1 27,383,652 16 13,225,283 7 13,036 - 71,210 - 1,600,348 1 44,368,268 25 176,251,230 100 LIABILITIES AND EQUITY Current Liabilities： 2100 Short-term borrowings (Note (6)(l)) 2120 Current financial liabilities at fair value through profit or loss (Notes (4) and (6)(b)) 2130 Current contract liabilities (Note (6)(s)) 2170 Accounts payable 2180 Accounts payable due to related parites, net (Note (7)) 2230 Current tax liabilities 2200 Other payables (Note (7)) 2280 Current lease liabilities (Note (6)(m)) 2322 Long-term borrowings, current portion (Note (6)(l)) 2399 Other current liabilities Non-current Liabilities： 2540 Long-term borrowings (Note (6)(l)) 2580 Non-current lease liabilities (Note (6)(m)) 2640 Net defined benefit liability, non-current (Notes (4) and (6)(o)) 2670 Other non-current liabilities, others (Notes (4) and (6)(p)) Total Liabilities Equity: 3110 Ordinary share (Note (6)(q)) 3200 Capital surplus (Note (6)(q)) Retained earnings (Note (6)(q)): 3310 Legal reserve 3320 Special reserve 3350 Unappropriated retained earnings 3400 Other equity interest (Note (6)(q)) Total Equity TOTAL LIABILITIES AND EQUITY	2020.12.31 Amount % $ 24,193,173 12 182,068 - 6,236,379 3 42,861,735 21 47,377,719 23 1,295,766 - 5,644,166 3 4,152 - 300,000 - 7,856,199 4 135,951,357 66 8,446,000 4 5,024 - 656,171 - 3,199,438 2 12,306,633 6 148,257,990 72 35,874,751 17 2,899,284 1 11,345,901 6 1,822,004 1 7,944,644 4 (1,901,925) (1) 57,984,659 28 $ 206,242,649 100	2019.12.31 Amount % 21,453,043 12 108,175 - 5,554,820 3 33,426,844 19 43,827,529 25 1,046,130 1 5,332,183 3 5,483 - 300,000 - 4,952,526 3 116,006,733 66 3,050,000 2 7,557 - 640,401 - 1,275,391 1 4,973,349 3 120,980,082 69 35,874,751 20 2,913,461 2 10,799,605 6 1,646,357 1 5,858,979 3 (1,822,005) (1) 55,271,148 31 176,251,230 100

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

〜 4 〜

(English Translation of Parent Company Only Financial Statements and Report Originally Issued in Chinese) INVENTEC CORPORATION

STATEMENTS OF COMPREHENSIVE INCOME

For the Years Ended December 31, 2020 and 2019

(Expressed in Thousands of New Taiwan Dollars)

4110 Total sales revenue (Notes (4), (6)(s) and (7)) 5000 Total operating costs (Notes (4), (6)(e) and (7)) Gross profit from operations 5910 Less:Unrealized profit (loss) from sales (Note (7)) 5920 Add:Realized profit (loss) from sales (Note (7)) Gross profit from operations Operating expenses (Notes (4)(q)): 6100 Selling expenses 6200 Administrative expenses 6300 Research and development expenses 6450 Expected credit loss (gain) Total operating expenses Net operating income Non-operating income and expenses (Notes (4), (6)(f) and (6)(u)): 7100 Interest income 7010 Other income 7020 Other gains and losses, net 7050 Finance costs, net 7775 Share of profit (loss) of subsidiaries, associates and joint ventures accounted for using equity method Total non-operating income and expenses 7900 Profit (loss) from continuing operations before tax 7950 Less: Income tax expenses (Notes (4) and (6)(p)) 8200 Profit Other comprehensive income: 8310 Components of other comprehensive income that will not be reclassified to profit or loss 8311 Gains (losses) on remeasurements of defined benefit plans 8316 Unrealized gains (losses) from investments in equity instruments measured at fair value through other comprehensive income 8330 Share of other comprehensive income of subsidiaries, associates and joint ventures accounted for using equity method, components of other comprehensive income that will not be reclassified to profit or loss 8349 Income tax related to components of other comprehensive income that will not be reclassified to profit or loss Components of other comprehensive income that will not be reclassified to profit or loss 8360 Components of other comprehensive income (loss) that will be reclassified to profit or loss 8361 Exchange differences on translation of foreign financial statements 8380 Share of other comprehensive income of subsidiaries, associates and joint ventures accounted for using equity method, components of other comprehensive income that will be reclassified to profit or loss 8399 Income tax related to components of other comprehensive income that will be reclassified to profit or loss Components of other comprehensive income that will be reclassified to profit or loss Other comprehensive income, net 8500 Total comprehensive income Earnings per share attributable to stockholders of parent (Notes (4) and (6)(r)) 9750 Basic earnings per share (NT dollars) 9850 Diluted earnings per share (NT dollars)	2020	% 100 97 3 - - 3 - 1 1 - 2 1 - - - - 2 2 3 1 2 - - - - - - - - - - 2 2.10 2.08	2019 Amount 357,462,052 344,938,970 12,523,082 14,174 18,889 12,527,797 1,512,265 1,804,654 5,586,067 5,118 8,908,104 3,619,693 68,002 95,853 488,838 (1,207,015) 2,966,083 2,411,761 6,031,454 523,494 5,507,960 (50,641) 830,368 4,377 (10,128) 794,232 (32,310) (982,574) - (1,014,884) (220,652) 5,287,308
	Amount $ 407,434,848 395,650,876 11,783,972 11,807 14,174 11,786,339 1,760,505 1,895,856 5,826,007 44,784 9,527,152 2,259,187 26,738 62,496 (226,992) (712,190) 8,184,317 7,334,369 9,593,556 2,045,571 7,547,985 (63,130) 352,106 4,050 (12,626) 305,652 (65,492) (396,739) - (462,231) (156,579) $ 7,391,406 $ $			% 100 96
				4 - -
				4
				- 1 2 -
				3
				1
				- - - - 1
				1
				2 -
				2
				- - - -
				-
				- - -
				-
				-
				2
				1.54
				1.53

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

〜 5 〜

(English Translation of Parent Company Only Financial Statements and Report Originally Issued in Chinese) INVENTEC CORPORATION

STATEMENTS OF CHANGES IN EQUITY

For the Years Ended December 31, 2020 and 2019

(Expressed in Thousands of New Taiwan Dollars)

	Retained Earnings		Other Equity Interest Exchange Differences on Translation Unrealized gains (losses) from financial assets measured at fair value of Foreign Financial Statements through other comprehensive income (990,250) (656,107) - - (1,014,884) 819,200 (1,014,884) 819,200 - - - - - - - - - 20,036 (2,005,134) 183,129 - - (462,231) 348,853 (462,231) 348,853 - - - - - - - - - 19,258 - - - 14,200 (2,467,365) 565,440	Total Equity
			Exchange Differences on Translation of Foreign Financial Statements (990,250) - (1,014,884) (1,014,884) - - - - - (2,005,134) - (462,231) (462,231) - - - - - - - (2,467,365)
Legal Reserve 10,149,619 - - - 649,986 - - - - 10,799,605 - - - 546,296 - - - - - - 11,345,901	Special reserve 107,546 - - - - 1,538,811 - - - 1,646,357 - - - - 175,647 - - - - - 1,822,004	Unappropriated Retained Earnings
		7,966,033 5,507,960 (24,968) 5,482,992 (649,986) (1,538,811) (5,381,213) - (20,036) 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		55,364,481 5,507,960 (220,652)
				5,287,308
				- - (5,381,213) 572 -
				55,271,148 7,547,985 (156,579)
				7,391,406
				- - (4,663,718) 679 - (14,856) -
				57,984,659

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

〜 6 〜

(English Translation of Parent Company Only Financial Statements and Report Originally Issued in Chinese) INVENTEC CORPORATION

STATEMENTS OF CASH FLOWS

For the Years Ended December 31, 2020 and 2019

(Expressed in Thousands of New Taiwan Dollars)

Cash flows from operating activities: Profit before income tax Adjustments: Adjustments to reconcile profit before income tax to net cash provided by operating activities Depreciation expense Amortization expense Expected credit loss Interest expense Interest income Dividend income Share of profit of subsidiaries, associates and joint ventures accounted for using equity method Gain on disposal of property, plant and equipment Gain on disposal of non-current assets held for sale Gain on disposal of investments accounted for using equity method Unrealized foreign exchange loss Total adjustments to reconcile profit Changes in operating assets and liabilities: Changes in operating assets: Increase in financial assets at fair value through profit or loss, mandatorily measured at fair value (Increase) decrease in accounts receivable (Increase) decrease in other receivable Decrease (increase) in inventories Decrease (increase) in other current assets Total changes in operating assets Changes in operating liabilities: Increase in financial liabilities held for trading Increase (decrease) in contract liabilities Increase in accounts payable Increase (decrease) in other payables Increase (decrease) in other current liabilities Decrease in net defined benefit liabilities Total changes in operating liabilities Total changes in operating assets and liabilities Total adjustments Cash (outflow) inflow generated from operations Interest received Dividends received Interest paid Income taxes paid Net cash flows (used in) from operating activities	2020 $ 9,593,556 561,757 578,179 44,784 712,190 (26,738) (30,069) (8,184,317) (52) - (20,602) 647,091 (5,717,777) (277,459) (13,264,562) (7,651,920) 1,490,976 (2,486,104) (22,189,069) 73,893 681,559 13,020,360 372,754 2,903,673 (47,360) 17,004,879 (5,184,190) (10,901,967) (1,308,411) 27,158 1,367,069 (702,702) (94,652) (711,538)	2019 6,031,454 408,792 667,744 5,118 1,207,015 (68,002) (20,301) (2,966,083) (248) (628,983) - 747,858 (647,090) (113,791) 2,404,374 4,559,761 (1,695,046) 437,151 5,592,449 103,217 (295,612) 2,804,027 (445,168) (553,622) (44,055) 1,568,787 7,161,236 6,514,146 12,545,600 67,911 4,026,222 (1,279,274) (423,450) 14,937,009

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

〜 7 〜

(English Translation of Parent Company Only Financial Statements Originally Issued in Chinese) INVENTEC CORPORATION

STATEMENTS OF CASH FLOWS (CONT'D)

For the Years Ended December 31, 2020 and 2019

(Expressed in Thousands of New Taiwan Dollars)

Cash flows from investing activities:
Acquisition of financial assets at fair value through other comprehensive income
Proceeds from disposal of financial assets at fair value through other comprehensive income
Proceeds from capital reduction of financial assets at fair value through other comprehensive
income
Acquisition of financial assets at fair value through profit or loss
Acquisition of investments accounted for using equity method
Proceeds from disposal of non-current assets held for sale
Acquisition of property, plant and equipment
Proceeds from disposal of property, plant and equipment
Acquisition of intangible assets
Increase in other non-current assets
Net cash flows used in investing activities
Cash flows from financing activities:
Increase (decrease) in short-term borrowings
Proceeds from long-term borrowings
Repayments of long-term borrowings
Decrease in other non-current liabilities
Cash dividends paid
Payment of lease liabilities
Net cash flows from (used in) financing activities
Net increase in cash and cash equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period

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

〜 7-1 〜

(English Translation of Financial Statements and Report Originally Issued in Chinese) INVENTEC CORPORATION

NOTES TO THE PARENT COMPANY ONLY FINANCIAL STATEMENTS

For the years ended December 31, 2020 and 2019

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

(1) Overview

Inventec Co., Ltd. (the “ Company” ) was organized in 1975. The Company engages primarily in the developing, 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.

(2) Financial Statements Authorization Date and Authorization Process

The financial statements were authorized for issuance by the Board of Directors on March 30, 2021.

(3) New Standards, Amendments and Interpretations not yet Adopted:

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

The Company has initially adopted the following new amendments, which do not have a significant impact on its financial statements, from January 1, 2020:

●Amendments to IFRS 3 “Definition of a Business”
●Amendments to IFRS 9, IAS39 and IFRS7 “Interest Rate Benchmark Reform”
●Amendments to IAS 1 and IAS 8 “Definition of Material”
●Amendments to IFRS 16 “COVID-19-Related Rent Concessions”
(b) The impact of IFRS issued by the FSC but not yet effective

The Company assesses that the adoption of the following new amendments, effective for annual period beginning on January 1, 2021, would not have a significant impact on its financial statements:

●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”
(c) The impact of IFRS issued by IASB but not yet endorsed by the FSC

The Company 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 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 16 “Property, Plant and Equipmentt Proceeds before Intended Use”

〜 8 〜

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

NOTES TO THE PARENT COMPANY ONLY FINANCIAL STATEMENTS (CONT'D)

For the years ended December 31, 2020 and 2019

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

－
●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”
●Amendments to IAS 1 “Disclosure of Accounting Policies”
●Amendments to IAS 8 “Definition of Accounting Estimates”

(4) Significant Accounting Policies

The accompanying parent company only 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 parent company only financial statements, the Chinese version shall prevail.

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

(a) Statement of compliance

These annual financial statements have been prepared in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers.

(b) Basis of preparation
1.Basis of measurement

Except for the following significant accounts, the 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;
3) 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(q).
2.Functional and presentation currency

The functional currency of the Company is determined based on the primary economic environment in which the entity operates. The 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.

〜 9 〜

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

NOTES TO THE PARENT COMPANY ONLY FINANCIAL STATEMENTS (CONT'D) For the years ended December 31, 2020 and 2019

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

(c) Foreign currencies
1.Foreign currency transaction

Transactions in foreign currencies are translated into the respective functional currencies of Company 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.

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 Company 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 Company 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.

(d) 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

〜 10 〜

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

NOTES TO THE PARENT COMPANY ONLY FINANCIAL STATEMENTS (CONT'D)

For the years ended December 31, 2020 and 2019

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

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 Company 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.
(e) Cash and cash equivalents

Cash comprises cash on hand and demand deposits. Cash equivalents 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.

(f) Financial instruments

Trade receivables are initially recognized when they are originated. All other financial assets and financial liabilities are initially recognized when the Company 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) – debt investment; FVOCI – equity investment; or FVTPL. Financial assets are not reclassified subsequent to their initial recognition unless the Company 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

〜 11 〜

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

NOTES TO THE PARENT COMPANY ONLY FINANCIAL STATEMENTS (CONT'D)

For the years ended December 31, 2020 and 2019

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

‧ 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)

A debt investment is measured at FVOCI 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 achieved by both collecting contractual cash flows and selling financial assets; 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.

On initial recognition of an equity investment that is not held for trading, the Company 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.

Debt investments at FVOCI are subsequently measured at fair value. Interest income calculated using the effective interest method, foreign exchange gains and losses and impairment are recognized in profit or loss. Other net gains and losses are recognized in other comprehensive income. On derecognition, gains and losses accumulated in other comprehensive income are reclassified to profit or loss.

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 Company’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 Company 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.

〜 12 〜

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

NOTES TO THE PARENT COMPANY ONLY FINANCIAL STATEMENTS (CONT'D)

For the years ended December 31, 2020 and 2019

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

4) Impairment of financial assets

The Company 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, guarantee deposit paid and other financial assets), debt investments measured at FVOCI and contract assets.

The Company 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 Company 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 Company’s historical experience and informed credit assessment as well as forward-looking information.

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

The Company 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 Company 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 months 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 Company 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 Company in accordance with the contract and the cash flows that the Company expects to receive). ECL are discounted at the effective interest rate of the financial asset.

At each reporting date, the Company 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 asset is credit-impaired includes the following observable data:

〜 13 〜

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

NOTES TO THE PARENT COMPANY ONLY FINANCIAL STATEMENTS (CONT'D) For the years ended December 31, 2020 and 2019

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

‧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 charged 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 when the Company has no reasonable expectations of recovering a financial asset in its entirety or a portion thereof. For corporate customers, the Company individually makes an assessment with respect to the timing and amount of write-off based on whether there is a reasonable expectation of recovery. The Company expects no significant recovery from the amount written off. However, financial assets that are written off could still be subject to enforcement activities in order to comply with the Company’s procedures for recovery of amounts due.

5) Derecognition of financial assets

The Company 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 Company neither transfers nor retains substantially all of the risks and rewards of ownership and it does not retain control of the financial asset.

The Company 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) 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.

〜 14 〜

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

NOTES TO THE PARENT COMPANY ONLY FINANCIAL STATEMENTS (CONT'D)

For the years ended December 31, 2020 and 2019

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

2) Derecognition of financial liabilities

The Company derecognizes a financial liability when its contractual obligations are discharged or cancelled, or expire. The Company 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.

3) 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 Company 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.

3.Derivative financial instruments and hedge accounting

The Company holds derivative financial instruments to hedge its foreign currency and interest rate exposures. Embedded derivatives are separated from the host contract and accounted for separately if the host contract is not a financial asset and certain criteria are met.

Derivatives are initially measured at fair value. Subsequent to initial recognition, derivatives are measured at fair value, and changes therein are generally recognized in profit or loss.

(g) 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 existing 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.

(h) Investment in associates

Associates are those entities in which the Company 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.

〜 15 〜

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

NOTES TO THE PARENT COMPANY ONLY FINANCIAL STATEMENTS (CONT'D) For the years ended December 31, 2020 and 2019

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

The financial statements include the Company’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 Company, from the date on which significant influence commences until the date on which significant influence ceases. The Company 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 transactions between the Company and an associate are recognized only to the extent of unrelated Company’s interests in the associate.

When the Company’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 Company has incurred legal or constructive obligations or made payments on behalf of the associate.

The Company discontinues the use of equity method and measures the retained niterest 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 Company 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 reclassified to profit or loss (or retained earnings) on the disposal of the related assets or liabilities, the Company 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 Company's ownership interest in an associate is reduced, while it continues to apply the equity method, the Company 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.

When the Company 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 Company’s proportionate interest in the net assets of the associate. The Company 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 Company’ 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.

(i) Investment in subsidiaries

The subsidiaries in which the Company holds controlling interest are accounted for under equity method in the parent company only financial statements. Under equity method, the net income, other comprehensive income and equity in the parent company only financial statement are the same as those attributable to the owners of parent in the consolidated financial statements.

The changes in ownership of the subsidiaries are recognized as equity transaction.

〜 16 〜

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

NOTES TO THE PARENT COMPANY ONLY FINANCIAL STATEMENTS (CONT'D) For the years ended December 31, 2020 and 2019

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

(j) Joint Arrangements

A joint arrangement is an arrangement of which two or more parties have joint control. The IFRS classifies joint arrangements into two types-joint operations and joint ventures, and have the following characteristics: (a) The parties are bound by a contractual arrangement; (b) The contractual arrangement gives two or more of those parties joint control of the arrangement. IFRS 11 “Joint Arrangements” defines joint control as the contractually agreed sharing of control of an arrangement, which exists only when decisions about the relevant activities (i.e. activities that significantly affect the returns of the arrangement) require the unanimous consent of the parties sharing control.

A joint venture is a joint arrangement whereby the Company has joint control of the arrangement (i.e. joint venturers) in which the Company has rights to the net assets of the arrangement, rather than rights to its assets and obligations for its liabilities. The Company recognizes its interest in a joint venture as an investment and accounts for that investment using the equity method in accordance with IAS 28 “ Investments in Associates and Joint Ventures” , unless, the Company qualifies for exemption from that Standard.

When assessing the classification of a joint arrangement, the Company considers the structure and legal form of the arrangement, the terms in the contractual arrangement and other facts and circumstances. When the facts and circumstances change, the Company reevaluates whether the classification of the joint arrangement has changed.

(k) 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 Company.

3.Depreciation

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

Land is not depreciated.

〜 17 〜

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

NOTES TO THE PARENT COMPANY ONLY FINANCIAL STATEMENTS (CONT'D) For the years ended December 31, 2020 and 2019

(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.

(l) Leases
(i) Identifying a lease

At inception of a contract, the Company 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 asset for a period of time in exchange for consideration. To assess whether a contract conveys the right to control the use of an identified asset, the Company assesses whether:

1) the contract involves the use of an identified asset – this may be specified explicitly or implicitly, and should be physically distinct or represent substantially all of the capacity of a physically distinct asset. If the supplier has a substantive substitution right, then the asset is not identified; and
2) the Company has the right to obtain substantially all of the economic benefits from use of the asset throughout the period of use; and
3) the Company has the right to direct the use of the asset throughout the period of use only if either:
the Company has the right to direct how and for what purpose the asset is used throughout the period of use; or
the relevant decisions about how and for what purpose the asset is used are predetermined and:
- － the Company has the right to operate the asset throughout the period of use, without the supplier having the right to change those operating instructions; or
- － the Company designed the asset in a way that predetermines how and for what purpose it will be used throughout the period of use.

〜 18 〜

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

NOTES TO THE PARENT COMPANY ONLY FINANCIAL STATEMENTS (CONT'D) For the years ended December 31, 2020 and 2019

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

At inception or on reassessment of a contract that contains a lease component, the Company allocates the consideration in the contract to each lease component on the basis of their relative stand-alone prices. However, for the leases of land and buildings in which it is a lessee, the Company has elected not to separate non-lease components and account for the lease and nonlease components as a single lease component.

(ii) As a lessee

The Company 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.

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 Company’s incremental borrowing rate. Generally, the Company 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 payments;
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 Company’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

〜 19 〜

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

NOTES TO THE PARENT COMPANY ONLY FINANCIAL STATEMENTS (CONT'D)

For the years ended December 31, 2020 and 2019

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

4) there is a change of its assessment on whether it will exercise a purchase, extension or termination option; or
5) there are 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 Company 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 Company has elected not to recognize right-of-use assets and lease liabilities for shortterm leases of machinery that have a lease term of 12 months or less and leases of low-value assets, including other equipment. The Company recognizes the lease payments associated with these leases as an expense on a straight-line basis over the lease term.

(iii) As a lessor

When the Company 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 Company 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 Company 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

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 Company 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 Company and have finite useful lives are measured at cost less accumulated amortization and any accumulated impairment losses.

〜 20 〜

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

NOTES TO THE PARENT COMPANY ONLY FINANCIAL STATEMENTS (CONT'D)

For the years ended December 31, 2020 and 2019

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

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.

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:

Computer software cost 1year~ 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 Company reviews the carrying amounts of its non-financial assets (other than inventories, contract assets and deferred tax assets) to determine whether there is any indication of impairment. If any such indication exists, then the asset’s recoverable amount is estimated.

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.

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.

〜 21 〜

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

NOTES TO THE PARENT COMPANY ONLY FINANCIAL STATEMENTS (CONT'D) For the years ended December 31, 2020 and 2019

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

(o) Provisions

A provision is recognized if, as a result of a past event, the Company 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.

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.

(p) Revenue
1.Revenue from contracts with customers

Revenue is measured based on the consideration to which the Company expects to be entitled in exchange for transferring goods or services to a customer. The Company 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 Company’s main types of revenue are explained below.

1)Sale of goods

The Company 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 Company 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 Company has a right to an amount of consideration that is unconditional.

2) Consulting services and Management services

The Company 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.

3) Financing components

The Company 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.

〜 22 〜

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

NOTES TO THE PARENT COMPANY ONLY FINANCIAL STATEMENTS (CONT'D) For the years ended December 31, 2020 and 2019

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

(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 Company’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 Company, 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 Company 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 Company 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 Company can no longer withdraw the offer of those benefits and when the Company 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.

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 Company 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.

〜 23 〜

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

NOTES TO THE PARENT COMPANY ONLY FINANCIAL STATEMENTS (CONT'D) For the years ended December 31, 2020 and 2019

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

(r) 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 Company 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.

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 Company 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.

〜 24 〜

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

NOTES TO THE PARENT COMPANY ONLY FINANCIAL STATEMENTS (CONT'D) For the years ended December 31, 2020 and 2019

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

(s) Business combination

The Company accounts for business combinations using the acquisition method. The goodwill arising from an acquisition is measured as the excess of (i) the consideration transferred (which is generally measured at fair value) and (ii) the amount of non-controlling interest in the acquiree, both over the identifiable net assets acquired at the acquisition date. If the amount calculated above is a deficit balance, the Company recognized that amount as a gain on a bargain purchase in profit or loss immediately after reassessing whether it has correctly identified all of the assets acquired and all of the liabilities assumed.

All the transaction costs incurred for the business combination are recognized immediately as the Company’s expenses when incurred, except for the issuance of debt or equity instruments.

For each business combination, the Company measures any non-controlling interests in the acquiree either at fair value or at the non-controlling interest’ s proportionate share of the acquiree’ s identifiable net assets, if the non-controlling interests are present ownership interests and entitle their holders to a proportionate share of the Company’s net assets in the event of liquidation. Other noncontrolling interests are measured at their acquisition-date fair values, unless another measurement basis is required by the IFRSs endorsed by the FSC.

(t) Earnings per share

The Company 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

Please refer to the consolidated financial report of Inventec Corporation for the years ended December 31, 2020 and 2019 for operating segments information.

(5) Significant Accounting Judgments, Estimation, Assumptions, and Sources of Estimation Uncertainty

The preparation of the financial statements in conformity with the Regulations Governing the Preparation of Financial Reports by Securities Issuers 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.

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.

The Company does not have any accounting policies which involve significant judgment which have significant influence to the annual financial statements.

〜 25 〜

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

NOTES TO THE PARENT COMPANY ONLY FINANCIAL STATEMENTS (CONT'D) For the years ended December 31, 2020 and 2019

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

Information about assumptions and estimation uncertainties that have a significant risk of resulting in a material adjustment within the next financial year is as follows, 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 Company 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.

(6) Explanation to Significant Accounts

(a) Cash and cash equivalents

Cash Demand deposits and checking accounts Time deposits Cash and cash equivalents in statement of cash flows	2020.12.31 $ 1,072 4,536,510 728,540 $ 5,266,122	2019.12.31
		1,021 3,969,817 727,822
		4,698,660

Refer to Note 6(v) for the currency risk of the financial assets of the Company.

(b) Financial assets and liabilities at fair value through profit or loss and financial assets at fair value through other comprehensive income
1.Financial assets and liabilities at fair value through profit or loss

Financial assets at fair value through profit or loss Mandatorily measured at fair value through profit or loss: Derivative instruments not used for hedging Forward exchange contracts Foreign exchange swap Non-derivative financial assets Emerging stock Unquoted financial instruments Unsecured convertible bonds Total	2020.12.31 $ 13,606 237,568 232,340 589,096 16,415 $ 1,089,025	2019.12.31
		- 125,305 - 56,799
		182,104

〜 26 〜

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

NOTES TO THE PARENT COMPANY ONLY FINANCIAL STATEMENTS (CONT'D) For the years ended December 31, 2020 and 2019

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

Financial liabilities at fair value through profit or loss Held-for-trading financial liabilities Forward exchange contracts Foreign exchange swap Total	2020.12.31 $ 142,530 39,538 $ 182,068	2019.12.31
		108,175 -
		108,175

The Company uses derivative financial instruments to hedge certain foreign exchange and interest risk the Company 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 and held-for-trading financial liabilities on December 31, 2020 and 2019:

1) Financial assets:

Foreign exchange swap Forward Foreign exchange swap 2) Financial liabilities: Foreign exchange swap Forward Forward		2020.12.31
	Contract Amount USD 715,000 USD 214,000	Currency Maturity Period USD to TWD 2021.01.06-2021.06.11 USD to TWD 2021.01.07-2021.06.09 2019.12.31
	Contract Amount USD 335,000	Currency Maturity Period USD to TWD 2020.02.18-2020.03.18 2020.12.31
	Contract Amount USD 114,000 USD 615,000	Currency Maturity Period USD to TWD 2021.01.06-2021.03.25 USD to TWD 2021.01.07-2021.06.11 2019.12.31
	Contract Amount USD 335,000	Currency Maturity Period USD to TWD 2020.02.18-2020.03.18

〜 27 〜

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

NOTES TO THE PARENT COMPANY ONLY FINANCIAL STATEMENTS (CONT'D)

For the years ended December 31, 2020 and 2019

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

2.Financial assets at fair value through other comprehensive income

Equity investments at fair value through other comprehensive income Stocks listed on domestic markets Stocks not listed on domestic markets Total	2020.12.31 $ 1,496,291 2,124,983 $ 3,621,274	2019.12.31
		1,323,650 1,945,519
		3,269,169

1) Equity investments at fair value through other comprehensive income

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

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

For strategic purposes, the Company has sold its equity investments at fair value through other comprehensive income of $29,964 in 2019, resulting in the Company to realize a loss of $20,036, 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(v).
3) As of December 31, 2020 and 2019, the aforesaid financial assets were not pledged as collateral.
(c) Trade receivables

Accounts receivable due from related parties Accounts receivables due from non-related parties Less: Loss allowance	2020.12.31 $ 27,718,823 59,201,602 (34,867) $ 86,885,558	2019.12.31 27,188,723 46,929,348 (28,286) 74,089,785

〜 28 〜

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

NOTES TO THE PARENT COMPANY ONLY FINANCIAL STATEMENTS (CONT'D)

For the years ended December 31, 2020 and 2019

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

The Company 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, trade receivables have been grouped based on shared credit risk characteristics and the days past due, as well as incorporated forward looking information, including macroeconomic and relevant industry information. The loss allowance provision in Taiwan were determined as follows:

	2020.12.31
Gross carrying amount $ 79,817,018 7,102,984 423 $ 86,920,425	Weighted- average 0.00%~0.50% 0.04%~0.50% 0.04%~100%	Loss allowance provision
		33,572 872 423
		34,867

As of the end of February 28, 2021, the amount that received by the Company is $48,381,015.

	2019.12.31
Gross carrying amount $ 67,748,789 6,249,042 120,240 $ 74,118,071	Weighted- average 0.00%~0.50% 0.04%~0.50% 0.04%~100%	Loss allowance provision
		25,885 878 1,523
		28,286

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

Balance atJanuary 1, 2020 and 2019 Impairment losses Amounts written off Balance at December 31, 2020 and 2019	For the years ended December 31,	For the years ended December 31,
	2020 $ 28,286 7,567 (986) $ 34,867	2019
		23,168 5,118 -
		28,286

The allowance for impairment account is used to record bad debt expenses. If the Company 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 Company.

As of December 31, 2020 and 2019, none of the receivables above are pledged as collateral for loans and borrowings.

〜 29 〜

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

NOTES TO THE PARENT COMPANY ONLY FINANCIAL STATEMENTS (CONT'D)

For the years ended December 31, 2020 and 2019

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

As of December 31, 2020 and 2019, the Company sold its accounts receivable without recourse as follows:

follows:
		2020.12.31
Purchaser	Amount Derecognized Credit Unused Credit Advanced $ 15,566,808 USD 153,413 USD 546,587		Amount Recognized in Other Receivables -	Range of Interest Rate Significant Transferring Terms 0.99%~1.05% The accounts receivable factoring is without recourse but the seller still bears the risks except for eligible obligor’s insolvency.
Non-related parties

			2019.12.31
Purchaser	Amount Derecognized $ 17,620,075	Credit Unused Credit Advanced Note USD 585,774		Amount Recognized in Other Receivables -	Range of Interest Rate Significant Transferring Terms 2.58%~2.68% The accounts receivable factoring is without recourse but the seller still bears the risks except for eligible obligor’s insolvency.
Non-related parties

Note: The purchaser has the right to make factoring transactions with the company based on the amount allocated by the client under factoring agreement.

(d) Other receivables

Other receivables－related parties Other receivables－non-related parties Less: Loss allowance	2020.12.31 $ 54,723,480 237,797 (34,642) $ 54,926,635	2019.12.31
		47,376,952 77,007 -
		47,453,959

The movement in the allowance for impairment with respect to other receivables was as follows:

Impairment losses recognized Written off Ending balance	For the years ended December 31,
	2020
	$ 37,217 (2,575) $ 34,642

〜 30 〜

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

NOTES TO THE PARENT COMPANY ONLY FINANCIAL STATEMENTS (CONT'D)

For the years ended December 31, 2020 and 2019

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

(e) Inventories

Raw materials and consumables Work in process Finished goods	2020.12.31 $ 1,182,506 675,657 529,782 $ 2,387,945	2019.12.31
		1,661,656 1,250,578 966,687
		3,878,921

For the years ended December 31, 2020 and 2019, the write-up of inventories amounted to $11,198 and $6,913, respectively, due to obsolescence or out of use, which causes the net realizable value to be lower than the cost. For the years ended December 31, 2020 and 2019, expenses of idle capacity amounted to $26,306 and $3,132, respectively.

As of December 31, 2020 and 2019, the aforesaid inventories were not pledged as collateral.

(f) Investments accounted for using equity method

The investment using equity method was as follows:

The investment using equity method was as follows:
Subsidiaries Associates	2020.12.31 $ 33,565,625 210,311 $ 33,775,936	2019.12.31
		27,138,165 245,487
		27,383,652

1.Subsidiaries

Please refer to the consolidated financial statements for the year ended December 31, 2020.

2.Associates

The Company’ 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 financial statements.

Individually insignificant associates The Company’s share of profit (loss) of the associates Loss from continuing operations Other comprehensive income Total comprehensive income	2020.12.31 2019.12.31 $ 210,311 245,487 For the years ended December 31, 2020 2019 $ (17,891) (24,518) (17,285) (1,653) $ (35,176) (26,171)
	2020 $ (17,891) (17,285) $ (35,176)

As of December 31, 2020 and 2019, the Company’s investments under equity method has not been pledged as collaterals.

〜 31 〜

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

NOTES TO THE PARENT COMPANY ONLY FINANCIAL STATEMENTS (CONT'D) For the years ended December 31, 2020 and 2019

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

As of December 31, 2020 and 2019, the Company’s investments under equity method has not been pledged as collaterals.

3.Judgment on whether the invested company has substantial control

1) For whether the invested company has substantial control, refer to the consolidated financial report for the years ended December 31, 2020.
2) Judgment on existence of substantial control over investee

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

(g) Loss control of subsidiaries

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 Company 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 Company for the years ended December 31, 2020 and 2019 were as follows:

Cost or deemed cost: Balance at January 1, 2020 Additions Disposals Other Balance at December 31, 2020	Land	Building and construction	Machinery and equipment	Transportation equipment	Office equipment	Other facilities	Others 349,747 112,984 - (348,230) 114,501	Total
	$ 7,641,024 - - - $ 7,641,024	5,134,289 - - -	609,833 460,993 (122,054) 188,085	25,691 107 - -	2,089,631 248,294 (91,356) 8,927	981,709 139,746 (8,256) 142,093		16,831,924 962,124 (221,666) (9,125)
		5,134,289	1,136,857	25,798	2,255,496	1,255,292		17,563,257

〜 32 〜

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

NOTES TO THE PARENT COMPANY ONLY FINANCIAL STATEMENTS (CONT'D)

For the years ended December 31, 2020 and 2019

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

Land	Building and construction	Machinery and equipment	Transportation equipment	Office equipment	Other facilities	Others	Total
$ 6,480,044 1,160,980 - -	5,112,450 21,839 - -	238,141 373,895 (2,203) -	26,023 2,689 (3,021) -	2,049,760 133,695 (93,824) -	909,543 55,749 - 16,417	16,417 349,747 - (16,417)	14,832,378 2,098,594 (99,048) -
$ 7,641,024	5,134,289	609,833	25,691	2,089,631	981,709	349,747	16,831,924
$ - - -	832,640 119,987 -	274,525 148,772 (51,857)	15,457 3,260 -	1,902,450 141,882 (74,731)	581,569 141,931 (8,257)	- - -	3,606,641 555,832 (134,845)
$ -	952,627	371,440	18,717	1,969,601	715,243	-	4,027,628
$ - - -	717,204 115,436 -	229,856 46,872 (2,203)	14,721 3,757 (3,021)	1,895,479 100,795 (93,824)	443,922 137,647 -	- - -	3,301,182 404,507 (99,048)
$ -	832,640	274,525	15,457	1,902,450	581,569	-	3,606,641
$ 7,641,024	4,181,662	765,417	7,081	285,895	540,049	114,501	13,535,629
$ 7,641,024	4,301,649	335,308	10,234	187,181	400,140	349,747	13,225,283
$ 6,480,044	4,395,246	8,285	11,302	154,281	465,621	16,417	11,531,196

As of December 31, 2020 and 2019, the property, plant and equipment were pledged as collateral, please refer to Note 8.

(i) Right-of-use assets

The Company leases many assets including land and vehicles. Information about leases for which the Company as a lessee is presented below:

Cost: Original balance as of January 1, 2020 Additions Balance as of December 31, 2020 Original balance as of January 1, 2019 Additions Balance as of December 31, 2019	Land $ 6,348 - $ 6,348 $ 6,348 - $ 6,348	Vehicles 10,973 1,946 12,919 4,248 6,725 10,973	Total
			17,321 1,946
			19,267
			10,596 6,725
			17,321

〜 33 〜

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

NOTES TO THE PARENT COMPANY ONLY FINANCIAL STATEMENTS (CONT'D)

For the years ended December 31, 2020 and 2019

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

Accumulated depreciation and impairment losses: Original balance as of January 1, 2020 Depreciation for the year Balance as of December 31, 2020 Original balance as of January 1, 2019 Depreciation for the year Balance as of December 31, 2019 Carrying amounts: Balance at December 31, 2020 Balance at December 31, 2019 Balance at January 1, 2019	Land $ 1,270 1,270 $ 2,540 $ - 1,270 $ 1,270 $ 3,808 $ 5,078 $ 6,348	Vehicles 3,015 4,655 7,670 - 3,015 3,015 5,249 7,958 4,248	Total
			4,285 5,925
			10,210
			- 4,285
			4,285
			9,057
			13,036
			10,596

(j) Intangible assets

The costs of intangible assets and amortization of the Company for the years ended December 31, 2020 and 2019 were as follows:

Cost: Balance at January 1, 2020 Additions Disposals Balance at December 31, 2020 Balance at January 1, 2019 Additions Disposals Balance at December 31, 2019 Amortization and impairment losses: Balance at January 1, 2020 Amortization for the period Disposals Balance at December 31, 2020	Software cost $ 1,106,016 117,321 (68,586) $ 1,154,751 $ 999,782 225,618 (119,384) $ 1,106,016 $ 1,034,806 122,269 (68,586) $ 1,088,489

〜 34 〜

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

NOTES TO THE PARENT COMPANY ONLY FINANCIAL STATEMENTS (CONT'D)

For the years ended December 31, 2020 and 2019

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

Balance at January 1, 2019 Amortization for the period Disposals Balance at December 31, 2019 Carrying amounts: Balance at December 31, 2020 Balance at December 31, 2019 Balance at January 1, 2019	Software cost $ 925,163 229,027 (119,384) $ 1,034,806 $ 66,262 $ 71,210 $ 74,619

The amortization of intangible assets is respectively included in the statement of comprehensive income:

Operating costs Operating expenses Total	For the years ended December 31,	For the years ended December 31,
	2020 $ 7,408 114,861 $ 122,269	2019
		107,336 121,691
		229,027

As of December 31, 2020 and 2019, the aforesaid intangible assets were not pledged as collateral.

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

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

Refundable deposits Asset for recovery Restricted assets Deferred tax assets Payment on behalf of others Prepayments for investments Others	2020.12.31 $ 28,930 260,999 132,954 1,172,586 2,511,971 - 571,766 $ 4,679,206	2019.12.31
		25,855 208,022 - 1,234,583 - 15,000 501,991
		1,985,451

The Company 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 Company 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 from others.

〜 35 〜

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

NOTES TO THE PARENT COMPANY ONLY FINANCIAL STATEMENTS (CONT'D) For the years ended December 31, 2020 and 2019

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

As of December 31, 2020 and 2019, the other non-current assets were pledged as collateral, please refer to Note 8.

(l) Long-term and short-term borrowings

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

Unsecured bank loans Secured bank loans Total Current Non-current Total Unused credit line		2020.12.31	2020.12.31
	Interest Rate	Currency	Maturity Date Amount 2021.01.07~2021.03.26 $ 4,900,000 2021.01.06~2022.10.14 24,989,173 2031.02.26 3,050,000 $ 32,939,173 $ 24,493,173 8,446,000 $ 32,939,173 $ 32,100,467
	0.48%~1.01% 1.19%	TWD USD TWD

Unsecured bank loans Secured bank loans Total Current Non-current Total Unused credit line		2019.12.31	2019.12.31
	Interest Rate	Currency	Maturity Date Amount 2020.01.03~2020.02.10 $ 3,590,000 2020.01.16~2020.06.02 17,863,043 2031.02.26 3,350,000 $ 24,803,043 $ 21,753,043 3,050,000 $ 24,803,043 $ 34,772,437
	0.65%~2.56% 1.44%	TWD USD TWD

1.Please refer to Note 8 for details of the related assets pledged as collateral.

2.Important borrowing restrictions

The Company entered into syndicated credit agreements with a number of financial institutions. Under these agreements, the Company 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, 2020 and 2019, the Company was in compliance with the above financial covenants.

〜 36 〜

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

NOTES TO THE PARENT COMPANY ONLY FINANCIAL STATEMENTS (CONT'D) For the years ended December 31, 2020 and 2019

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

(m) Lease liabilities

The Company lease liabilities were as follows:

The Company lease liabilities were as follows:
Current Non-current	2020.12.31 $ 4,152 $ 5,024	2019.12.31
		5,483
		7,557

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

The amounts recognized in profit or loss were as follows:

Interest on lease liabilities Expenses relating to short-term leases Expenses relating to leases of low-value, excluding short-term leases of low-value assets	For the years ended December 31,	For the years ended December 31,
	2020 $ 123 $ 1,666 $ 208	2019
		124
		1,203
		425

The amounts recognized in the statement of cash flows for the Company was as follows:

Total cash outflow for leases	For the years ended December 31,	For the years ended December 31,
	2019 $ 7,807	2019
		6,033

1. Real estate leases

The Company leases land for its office and plants. 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 Company up to one year before the end of the non-cancellable contract period. 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 Company and not by the lessors. In which lessee is not reasonably certain to use an optional extended lease term, payments associated with the optional period are not included within lease liabilities.

Other leases

The Company leases vehicles, with lease terms of two to three years. In some cases, the Company has option to guarantees the residual value of the leased assets at the end of the contract term.

The Company also leases other equipment with contract terms of one to three years. These leases are short-term and or leases of low-value items. The Company has elected not to recognize rightof-use assets and lease liabilities for these leases.

〜 37 〜

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

NOTES TO THE PARENT COMPANY ONLY FINANCIAL STATEMENTS (CONT'D) For the years ended December 31, 2020 and 2019

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

(n) Operating Leases

A maturity analysis of lease receivables, showing the undiscounted lease receivables 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 Total undiscounted lease receivables	2020.12.31 $ 20,116 11,040 862 - $ 32,018	2019.12.31
		15,951 4,877 3,490 142
		24,460

The rental revenues incurred by leasing land, offices and plants were $32,427 and $75,552 for the years ended December 31, 2020 and 2019, respectively.

(o) 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	2020.12.31 $ 1,400,254 (744,083) $ 656,171	2019.12.31 1,336,939 (696,538) 640,401

The Company 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.

1) Composition of plan assets

The Company 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 Company’s pension reserve account in Bank of Taiwan amounted to $740,284 at the end of December 31, 2020. 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.

〜 38 〜

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

NOTES TO THE PARENT COMPANY ONLY FINANCIAL STATEMENTS (CONT'D)

For the years ended December 31, 2020 and 2019

(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 Company on 2020 and 2019 were as follows:

Defined benefit obligation at January 1 Current service costs and interest Remeasurement on the net defined benefit liability －Experience adjustments arising on the actuarial gain or loss －Actuarial loss (gain) arising from changes in financial assumptions Benefits paid by the plan assets Defined benefit obligation at December 31	For the years ended December 31, 2020 2019 $ 1,336,939 1,289,116 20,948 25,096 50,016 18,913 35,562 53,137 (43,211) (49,323) $ 1,400,254 1,336,939
	2020 $ 1,336,939 20,948 50,016 35,562 (43,211) $ 1,400,254

3) Movements of defined benefit plan assets

The movements in the present value of the defined benefit plan assets for the Company on 2020 and 2019 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 Fair value of plan assets at December 31	For the years ended December 31, 2020 2019 $ 696,538 655,301 5,460 7,711 22,448 21,409 62,848 61,440 (43,211) (49,323) $ 744,083 696,538
	2020 $ 696,538 5,460 22,448 62,848 (43,211) $ 744,083

4) Expenses recognized in profit or loss

The expenses recognized in profit or loss for the Company on 2020 and 2019 were as follows:

Current service costs Net interest of net liabilities for defined benefit obligations	For the years ended December 31,	For the years ended December 31,
	2020 $ 10,921 4,567 $ 15,488	2019
		10,602 6,783
		17,385

〜 39 〜

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

NOTES TO THE PARENT COMPANY ONLY FINANCIAL STATEMENTS (CONT'D)

For the years ended December 31, 2020 and 2019

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

Operating cost Selling expenses Administration expenses Research and development expenses	For the years ended December 31,	For the years ended December 31,
	2020 $ 1,712 1,711 3,605 8,460 $ 15,488	2019
		1,831 1,903 4,151 9,500
		17,385

5) Actuarial assumptions

The following are the Company’s principal actuarial assumptions:

Present Value of defined benefit obligations:

Present Value of defined benefit obligations:
Discount rate Future salary increases rate	For the years ended December 31,
	2020 2019 0.500% 0.750% 1.625% 1.625%

The expected allocation payment made by the Company to the defined benefit plans for the one year period after the reporting date was $64,113.

The weighted-average duration of the defined benefit obligation is 10.5 years.

6) Sensitivity analysis

If the actuarial assumptions had changed, the impact on the present value of the defined benefit obligation for 2020 and 2019 shall be as follows:

December 31, 2020 Discount rate December 31, 2019 Discount rate	Influences of defined benefit obligations
	Increased 0.25% Decreased 0.25% $ (35,562) 36,934 (35,766) 37,185

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 2020 and 2019.

〜 40 〜

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

NOTES TO THE PARENT COMPANY ONLY FINANCIAL STATEMENTS (CONT'D)

For the years ended December 31, 2020 and 2019

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

2.Defined contribution plans

In accordance with the provisions of the Labor Pension Act, the Company 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 Labor Insurance amounted to $213,407 and $194,780 for the years ended December 31, 2020 and 2019, respectively. Except for the accounts payable of $57,639 and $54,044 respectively, the Company have been contributed to the Bureau of Labor Insurance.

(p) Income taxes

1.The components of income tax expense (gain) in the years 2020 and 2019 were as follows:

Current tax expense Current period Adjustment for prior periods Deferred tax expense Origination and reversal of temporary differences Income tax expense from continuing operations	For the years ended December 31, 2020 2019 $ 423,773 514,786 (79,484) 41,017 344,289 555,803 1,701,282 (32,309) $ 2,045,571 523,494
	2020 $ 423,773 (79,484) 344,289 1,701,282 $ 2,045,571

The amount of income tax recognized in other comprehensive income for 2020 and 2019 was as follows:

follows:
Items that will not be reclassified subsequently to profit or loss: Remeasurement from defined benefit plans	For the years ended December 31,
	2020 $ 12,626	2019
		10,128

〜 41 〜

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

NOTES TO THE PARENT COMPANY ONLY FINANCIAL STATEMENTS (CONT'D)

For the years ended December 31, 2020 and 2019

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

A reconciliation of income before income tax and income tax expense recognized in profit or loss was as follows:

Income before tax Income tax using the statutory tax rate Permanent differences Tax credits Change in unrecognized temporary differences (Over) under provision of temporary differences Other Undistributed earnings additional tax Income tax expense	For the years ended December 31, 2020 2019 $ 9,593,556 6,031,454 1,918,711 1,206,291 (97,100) (308,822) (86,797) (73,685) 178,946 (105,032) 207,430 (236,275) (79,484) 41,017 3,865 - $ 2,045,571 523,494
	2020 $ 9,593,556 1,918,711 (97,100) (86,797) 178,946 207,430 (79,484) 3,865 $ 2,045,571

Under provision in prior periods is estimation of the difference between approved amounts by Tax Authority and the declared amounts.

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	2020.12.31 $ 928,929	2019.12.31
		749,983

2) Recognized deferred tax assets and liabilities

The movements in deferred tax assets and liabilities for the years ended December 31, 2020 and 2019 were as follows:

Deferred Tax Liabilities: Balance at January 1, 2020 Recognized in profit or loss Balance at December 31, 2020 Balance at January 1, 2019 Recognized in profit or loss Balance at December 31, 2019	Gain (loss) on investment $ 1,239,155 1,626,659 $ 2,865,814 $ 1,210,634 28,521 $ 1,239,155	Other - - 48,225 (48,225) -	Total 1,239,155 1,626,659 2,865,814 1,258,859 (19,704) 1,239,155

〜 42 〜

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

NOTES TO THE PARENT COMPANY ONLY FINANCIAL STATEMENTS (CONT'D) For the years ended December 31, 2020 and 2019

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

Deferred Tax Assets: Balance at January 1, 2020 Recognized in profit or loss Recognized in other comprehensive income Balance at December 31, 2020 Balance at January 1, 2019 Recognized in profit or loss Recognized in other comprehensive income Balance at December 31, 2019	Deferred Income $ 770,799 37,318 - $ 808,117 $ 853,028 (82,229) - $ 770,799	Defined Benefit Plans 71,736 (9,472) 12,626 74,890 70,419 (8,811) 10,128 71,736	Others 392,048 (102,469) - 289,579 288,403 103,645 - 392,048	Total 1,234,583 (74,623) 12,626 1,172,586 1,211,850 12,605 10,128 1,234,583

3.The Company’s income tax returns through 2018 have been examined and approved by the Tax Authority.

(q) Capital and reserves

As of December 31, 2020 and 2019, 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:

2020.12.31 Share capital $ 2,891,959 Other 7,325 $ 2,899,284	2019.12.31
	2,891,959 21,502
	2,913,461

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 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

〜 43 〜

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

NOTES TO THE PARENT COMPANY ONLY FINANCIAL STATEMENTS (CONT'D) For the years ended December 31, 2020 and 2019

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

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.

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 with Permit No.1010012865 as issued by the Financial Supervisory Commission on 6 April 2012, 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 24, 2020, the Company's Board and Directors resolved to distribute the 2019 earnings. On June 14, 2019, the shareholder's meetings resolve to distribute the 2018 earnings. These earnings were appropriated for distribution as follows:

Dividends distributed to common shareholders Cash	2019	2019	2019	2018 Dividend per share ($) Amount 1.50 5,381,213	2018 Dividend per share ($) Amount 1.50 5,381,213
	Dividend per share ($)		Amount		Amount
	$ 1.30		4,663,718		5,381,213

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 30, 2021, the Company's Board of Directors resolved to appropriate the 2020 earnings respectively, as follows:

Dividends distributed to common shareholders Cash	2020	2020
	Dividend per share ($) $ 1.85	Amount
		6,636,829

〜 44 〜

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

NOTES TO THE PARENT COMPANY ONLY FINANCIAL STATEMENTS (CONT'D)

For the years ended December 31, 2020 and 2019

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

3.Other equity (net of taxes)

Balance at January 1, 2020 Exchange differences on foreign operations Exchange differences on associates 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 accounted for using equity method Disposal of investments in equity instruments designed at fair value through other comprehensive income Balance at December 31, 2020 Balance at January 1, 2019 Exchange differences on foreign operations Exchange differences on associates 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 Balance at December 31, 2019	Exchange differences on translation of foreign financial statements $ (2,005,134) (65,492) (396,739) - - - - $ (2,467,365) $ (990,250) (32,310) (982,574) - - - $ (2,005,134)	Unrealized gains (losses) from financial assets measured at fair value through other comprehensive income
		183,129 - - 352,106 (3,253 19,258 14,200
		565,440
		(656,107 - - 830,368 (11,168 20,036
		183,129

(r) 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)	For the years ended December 31,	For the years ended December 31,
	2020 $ 7,547,985 3,587,475 $ 2.10	2019
		5,507,960
		3,587,475
		1.54

〜 45 〜

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

NOTES TO THE PARENT COMPANY ONLY FINANCIAL STATEMENTS (CONT'D)

For the years ended December 31, 2020 and 2019

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

Diluted earnings per share: Profit attributable to ordinary shareholders of the Company (adjusted for the effects of all dilutive potential ordinary shares) Weighted average number of ordinary shares (thousand shares) Effect of dilutive potential common shares (thousand shares) profit sharing to employees Weighted average number of ordinary shares (adjusted for the effects of all dilutive potential ordinary shares) Diluted earnings per share (NT dollars) (s) Revenue from contracts with customers 1.Disaggregation of revenue Primary geographical markets Taiwan USA Japan Hong Kong, Macao and Mainland China Other countries Major products Computer product Rendering of services 2.Contract balances 2020.12.31 Contract liabilities $ 6,236,379	For the years ended December 31,	For the years ended December 31,
	2020 2019 $ 7,547,985 5,507,960 3,587,475 3,587,475 32,907 23,150 3,620,382 3,610,625 $ 2.08 1.53 For the years ended December 31,	2019
		5,507,960
		3,587,475 23,150
		3,610,625
		1.53
	2020 $ 31,704,545 321,088,197 5,970,995 8,317,851 40,353,260 $ 407,434,848 $ 407,113,297 321,551 $ 407,434,848 2019.12.31 5,554,820	2019
		6,364,849 289,742,413 11,423,674 9,869,620 40,061,496
		357,462,052
		357,056,883 405,169
		357,462,052
		2019.1.1
$ 6,236,379		5,850,432

〜 46 〜

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

NOTES TO THE PARENT COMPANY ONLY FINANCIAL STATEMENTS (CONT'D) For the years ended December 31, 2020 and 2019

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

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

The amount of revenue recognized for the year ended December 31, 2020 and 2019 were $1,683,970 and $2,064,774, 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.

(t) Remuneration 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 $675,529 and $424,704 and the remuneration of directors amounted to $123,674 and $77,754 for the years ended December 31, 2020 and 2019, 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 2020 and 2019. 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 2020 and 2019 and the amounts stated in the individual reports.

(u) 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 $ 26,738	2019
		68,002

2.Other income

The details of other income were as follows:

Rent income Dividend income	For the years ended December 31,	For the years ended December 31,
	2020 $ 32,427 30,069 $ 62,496	2019
		75,552 20,301
		95,853

〜 47 〜

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

NOTES TO THE PARENT COMPANY ONLY FINANCIAL STATEMENTS (CONT'D)

For the years ended December 31, 2020 and 2019

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

3.Other income and losses

The details of other income and losses were as follows:

Gains on disposal of investments Gains on disposal of assets held-for-sell Foreign exchange (losses) gains Net gains (losses) on financial assets (liabilities) measured at fair value through profit or loss Other income and losses Net other income and losses	For the years ended December 31, 2020 2019 $ 20,602 - - 628,983 (1,490,122) (520,088) 715,969 130,758 526,559 249,185 $ (226,992) 488,838
	2020 $ 20,602 - (1,490,122) 715,969 526,559 $ (226,992)

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 $ 460,522 251,668 $ 712,190	2019
		688,460 518,555
		1,207,015

(v) Financial instruments

1.Credit risks

1) Credit risks exposure

The carrying amounts of financial assets represented the maximum credit risk exposure of the Company.

2) Condition of credit risk concentration

Implicit credit risk of the Company 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 Company 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.

〜 48 〜

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

NOTES TO THE PARENT COMPANY ONLY FINANCIAL STATEMENTS (CONT'D)

For the years ended December 31, 2020 and 2019

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

Besides, the 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 Company's credit risk to be limited.

As of December 31, 2020 and 2019, 68% and 72% 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 Company, including estimation of interest, but excluding the impact of netting arrangements:

December 31, 2020 Non-derivative financial liabilities Unsecured bank loans Secured 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, 2019 Non-derivative financial liabilities Unsecured bank loans Secured bank loans Accounts payable Other payables Lease liabilities Foreign exchange contracts not used for hedging: Outflow Inflow	Carrying amount $ 29,889,173 3,050,000 90,239,454 5,644,166 9,176 142,530 - 39,538 - $ 129,014,037 $ 21,453,043 3,350,000 77,254,373 2,522,391 13,040 108,175 - $ 104,701,022	Contractual cash flows 30,010,610 3,236,011 90,239,454 5,644,166 9,285 (17,205,665) 17,063,135 (3,209,668) 3,170,130 128,957,458 21,532,539 3,621,350 77,254,373 2,522,391 13,236 (10,119,285) 10,011,110 104,835,714	Less than 6 months 24,240,024 167,775 90,239,454 5,644,166 2,765 (17,205,665) 17,063,135 (3,209,668) 3,170,130 120,112,116 21,532,539 173,670 77,254,373 2,522,391 3,596 (10,119,285) 10,011,110 101,378,394	6 to 12 months 29,234 166,883 - - 1,465 - - - - 197,582 - 172,590 - - 2,000 - - 174,590	1 to 2 years 5,741,352 331,089 - - 3,375 - - - - 6,075,816 - 341,940 - - 3,597 - - 345,537	2 to 5 years - 971,846 - - 1,680 - - - - 973,526 - 999,900 - - 4,043 - - 1,003,943	More than 5 years
							- 1,598,418 - - - - - - -
							1,598,418
							- 1,933,250 - - - - -
							1,933,250

The Company are not expecting that the cash flows included in the maturity analysis could occur significantly earlier or at significantly different amounts.

〜 49 〜

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

NOTES TO THE PARENT COMPANY ONLY FINANCIAL STATEMENTS (CONT'D) For the years ended December 31, 2020 and 2019

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

3.Currency risks

1) Exposure to currency risks

The Company’ s exposures to significant currency risk were those from its foreign currency denominated financial assets and liabilities as follows:

Financial assets Monetary items USD Non-monetary items USD Financial Liabilities Monetary items USD Financial assets Monetary items USD Non-monetary items USD Financial Liabilities Monetary items USD		2020.12.31
	Foreign currency (In thousand) $ 5,103,055 57,844 4,092,120	Exchange rate TWD USD：TWD 28.48 145,335,006 USD：TWD 28.48 1,647,427 USD：TWD 28.48 116,543,578 2019.12.31
	Foreign currency (In thousand) $ 4,158,034 54,667 3,194,435	Exchange rate TWD USD：TWD 30.08 125,073,663 USD：TWD 30.08 1,644,385 USD：TWD 30.08 96,088,605

2) Sensitivity analysis

The Company’ s exposure to foreign currency risk 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, 2020 and 2019 would have increased or decreased the net profit after tax by $115,155 and $115,940, respectively. The analysis is performed on the same basis for both periods.

〜 50 〜

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

NOTES TO THE PARENT COMPANY ONLY FINANCIAL STATEMENTS (CONT'D)

For the years ended December 31, 2020 and 2019

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

3) Gains or losses on foreign exchange

For the years ended December 31, 2020 and 2019, the foreign exchange loss, including realized and unrealized, amounted to $1,490,122 and $520,088, respectively. As Company deals with diverse foreign currencies, therefore, the gains or losses on foreign exchange cannot be fully disclosed by its materiality.

4.Interest rate analysis

The Company’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 Company’s profit will decrease or increase by $12,200 and$13,400 for the years ended December 31, 2020 and 2019, respectively, assuming all other variable factors remain constant. This is mainly due to the Company's variable rate in borrowings.

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

The Company 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 lease liabilities information is not required:

		2020.12.31	2020.12.31
Book Value $ 251,174 837,851 1,089,025		Fair Value
	Level 1 - 232,340 232,340	Level 2 251,174 - 251,174	Level 3 - 605,511 605,511	Total 251,174 837,851
				1,089,025

〜 51 〜

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

NOTES TO THE PARENT COMPANY ONLY FINANCIAL STATEMENTS (CONT'D)

For the years ended December 31, 2020 and 2019

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

	2020.12.31	2020.12.31
	Fair Value
Level 1 1,420,469 - 1,420,469 - - - - 1,652,809 - - - - - - -	Level 2 - 75,822 75,822 - - - - 326,996 182,068 - - - - - 182,068 2019.12.31	Level 3 - 2,124,983 2,124,983 - - - - 2,730,494 - - - - - - -	Total 1,420,469 2,200,805
			3,621,274
			- - -
			-
			4,710,299
			182,068
			- - - -
			-
			182,068

	Fair Value
Level 1 - - - 1,194,430 - 1,194,430	Level 2 125,305 - 125,305 - 129,220 129,220	Level 3 - 56,799 56,799 - 1,945,519 1,945,519	Total 125,305 56,799
			182,104
			1,194,430 2,074,739
			3,269,169

〜 52 〜

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

NOTES TO THE PARENT COMPANY ONLY FINANCIAL STATEMENTS (CONT'D)

For the years ended December 31, 2020 and 2019

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

	2019.12.31	2019.12.31
	Fair Value
Level 1 - - - - 1,194,430 - - - - - - -	Level 2 - - - - 254,525 108,175 - - - - - 108,175	Level 3 - - - - 2,002,318 - - - - - - -	Total - - -
			-
			3,451,273
			108,175
			- - - -
			-
			108,175

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

The fair value of financial assets and liabilities were 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 instruments were 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 consolidated subsidiaries on the measurement day.
(2.2)Derivative financial instruments

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

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, 2020 and 2019.

〜 53 〜

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

NOTES TO THE PARENT COMPANY ONLY FINANCIAL STATEMENTS (CONT'D)

For the years ended December 31, 2020 and 2019

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

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

Balance as of January 1, 2020 Total gains and losses recognized in Profit or loss Other comprehensive income Purchase Disposals Effect of movements in exchange rate Balance as of December 31, 2020 Balance as of January 1, 2019 Total gains and losses recognized in Profit or loss Other comprehensive income Purchase Disposals Proceeds from capital reduction Balance as of December 31, 2019	At fair value through profit or loss $ 56,799 (5,770) - 629,462 - (74,980) $ 605,511 $ 64,553 (4,509) - 1,748 (4,993) - $ 56,799	Fair value through other comprehensive income 1,945,519 - 193,614 - (14,150) - 2,124,983 217,935 - 47,835 1,706,149 - (26,400) 1,945,519

The amount reclassified under IFRS 9 has been included in the balance as of January 1, 2018.

For the years ended December 31, 2020 and 2019, 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: In profit or loss, and including “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, 2020 2019 $ (5,770) (4,509) 193,614 47,835

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

The Company uses level 3 inputs to measure fair value through profit or loss, and fair value through other comprehensive income financial assets.

〜 54 〜

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

NOTES TO THE PARENT COMPANY ONLY FINANCIAL STATEMENTS (CONT'D)

For the years ended December 31, 2020 and 2019

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

Quantified information of significant unobservable inputs was as follows:

Item Financial assets at fair value through profit or loss－financial instruments without an active market Financial assets at fair value through profit or loss－equity instruments investments without an active market Financial assets at fair value through profit or loss－equity instruments investments without an active market Financial assets at fair value through other comprehensive income－equity instruments investments without an active market	Valuation Technique Comparable Listed Companies Method Net Asset Value Method Comparable Listed Companies Method Net Asset Value Method	Significant Non-observable Input The Relationship between Significant Non-observable Input and Fair Value ‧ Discount due to Lack of Market liquidity (30%) ‧ The estimated fair value would increase (decrease) if the price of earnings ratio multiple is higher (lower) and the marketability discount is lower (higher) ‧ Net Asset Value ‧ Not applicable ‧‧ Discount due to Lack of Market liquidity (30%) ‧ The estimated fair value would increase (decrease) if the marketability discount is lower (higher) ‧ Net Asset Value ‧ No applicable

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

The Company'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, 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 December 31, 2019 Financial assets at fair value through other comprehensive income Equity instruments without an active market	Input Discount Rate Market Multiple Market Multiple	Variation	Impact on Fair V Net incom	alue Change on e or loss Unfavorable Change (2,945) - -	Impact on Fair Value Change on Other Comprehensive income or loss Favorable Change Unfavorable Change - - 10,625 (10,625) 32,693 (32,693)
			Favorable Change $ 2,945 - $ -
		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.

〜 55 〜

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

NOTES TO THE PARENT COMPANY ONLY FINANCIAL STATEMENTS (CONT'D)

For the years ended December 31, 2020 and 2019

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

6.Offsetting financial assets and financial liabilities

The Company has financial instruments 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 Company also performs transactions not applicable to the International Financial Reporting Standards Sections 42 NO. 32, but the Company 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.

2020.12.31	2020.12.31	2020.12.31	2020.12.31	2020.12.31	2020.12.31
Financial assets that are offset which have an exercisable master netting arrangement or similar agreement
Gross amounts of recognized financial assets (a) $ 72,194		Gross amounts of financial liabilities offset in the balance sheet (b) -	Net amount of financial assets presented in Amounts not off set in the balance sheet (d) the balance sheet (c)=(a)-(b) Financial instruments (Note) Cash collateral received 72,194 - - 2020.12.31		Net amount (e)=(c)-(d)
					72,194

	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 Amounts not off set in the balance sheet (d) the balance sheet (c)=(a)-(b) Financial instruments (Note) Cash collateral received 182,068 - - 2019.12.31		Net amount (e)=(c)-(d)
					182,068

	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) -	Net amount of financial assets presented in the balance sheet (c)=(a)-(b) 33,069	Amounts not off set in the balance sheet (d) Financial instruments (Note) Cash collateral received - -	Net amount (e)=(c)-(d)
				Financial instruments (Note) -
					33,069

〜 56 〜

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

NOTES TO THE PARENT COMPANY ONLY FINANCIAL STATEMENTS (CONT'D)

For the years ended December 31, 2020 and 2019

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

2019.12.31

			2019.12.31	2019.12.31	2019.12.31
Derivative financial instruments	Financial liabilities that are		offset which have an exercisable master netting arrangement or similar agreement
	Gross amounts of recognized financial liabilities (a) $ 108,175	Gross amounts of financial assets offset in the balance sheet (b) -	Net amount of financial liabilities presented in the balance sheet (c)=(a)-(b) 108,175	Amounts not off set in the balance sheet (d) Financial instruments (Note) Cash collateral received - -	Net amount (e)=(c)-(d)
				Financial instruments (Note) -
					108,175

Note: Master netting arrangements are included.

(w) Financial risk management
1.Overview

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

1) credit risk

2) liquidity risk

3) market risk

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

2.Risk management framework

The Company 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 Company’s financial performance, the Company 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 Company’s risk management framework. The financial units follow 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(v) for the analysis of credit risk of cash, cash equivalent and accounts receivable.

〜 57 〜

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

NOTES TO THE PARENT COMPANY ONLY FINANCIAL STATEMENTS (CONT'D) For the years ended December 31, 2020 and 2019

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

4.Liquidity risk

Liquidity risk is a risk that the Company is unable to meet the obligations associated with its financial liabilities that are settled by delivering cash or another financial asset. The Company’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 Company’s reputation.

The Company use actual cost to estimate the cost of its products and services to better assist the Company's monitoring on the cash flow and optimizing the return on investment. As of December 31, 2020, the capital and working funds of the Company are sufficient to meet its entire contractual obligation; therefore, the management is not expecting any significant issue on liquidity risk. As of December 31, 2020 and 2019, the Company's unused credit line were amounted to $32,100,467 and $34,772,437, respectively.

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 Company’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 Company 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 Company.

1) Currency risk

The Company is exposed to currency risk on sales, purchases and borrowings that are denominated in a currency other than the functional currency of the Company primarily the New Taiwan Dollars (TWD). The currencies used in these transactions are denominated in TWD and USD.

The Company 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 Company. 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 Company 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.

〜 58 〜

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

NOTES TO THE PARENT COMPANY ONLY FINANCIAL STATEMENTS (CONT'D) For the years ended December 31, 2020 and 2019

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

2) Interest rate risk

The Company’ 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 longterm 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 Company periodically evaluates bank and currency borrowing rate to hedge the cash flow risk caused by the market interest rate fluctuation.

(x) 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 of the Company. The Board of Directors monitors the return on capital as well as the level of dividends to ordinary shareholders.

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

Total Liabilities Less: cash and cash equivalents Net debt Total Equity Debt to equity ratio	2020.12.31 $ 148,257,990 (5,266,122) 142,991,868 $ 57,984,659 % 246.60	2019.12.31 120,980,082 (4,698,660) 116,281,422 55,271,148 % 210.38

According to the Company’s management, there were no changes in the Company’s approach to capital management as of December 31, 2020.

(y) Investing and financing activities not affecting current cash flow

The Company has no investing and financing activities which did not affect the current cash flow for the year ended December 31, 2020.

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

〜 59 〜

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

NOTES TO THE PARENT COMPANY ONLY FINANCIAL STATEMENTS (CONT'D)

For the years ended December 31, 2020 and 2019

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

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

Long-term borrowings Short-term borrowings(including current portion of long-term borrowings) Lease liabilities (note) Total liabilities from financing activities Long-term borrowings Short-term borrowings(including current portion of long-term borrowings) Total liabilities from financing activities	January 1, 2020 $ 3,050,000 21,753,043 13,040 $ 24,816,083 January 1, 2019 $ 3,350,000 25,494,660 10,596 $ 28,855,256	Cash flows 5,624,000 2,432,588 (5,810) 8,050,778 Cash flows - (3,852,533) (4,281) (3,856,814)	Non-cash changes Reclassification Foreign exchange movement (300,000) 72,000 300,000 7,542 1,946 - 1,946 79,542 Non-cash changes Reclassification Foreign exchange movement (300,000) - 300,000 (189,084) 6,725 - 6,725 (189,084)	December 31, 2020
				8,446,000 24,493,173 9,176
				32,948,349
				December 31, 2019
			Reclassification (300,000) 300,000 6,725 6,725
				3,050,000 21,753,043 13,040
				24,816,083

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

(7) Related Party Transactions

(a) Names and relationship with related parties

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

Name of related party	Relationship with the Company
Inventec Besta Co., Ltd.	Associates
Inventec Group Charity Foundation	Over one-third of total amount of fund donated by
	the Company
Inventec Corporation (Hong Kong) Ltd.	Subsidiary
Inventec Holding (North America) Corp.	Subsidiary
Inventec (Czech), s.r.o	Subsidiary
Inventec Development Japan Corporation	Subsidiary
Inventec Japan Corporation	Subsidiary
Inventec Investment Co., Ltd.	Subsidiary
AIMobile Co., Ltd.	Subsidiary
Inventec Solar Energy Corporation	Subsidiary
Inventec Appliances Corp.	Subsidiary
Inventec Manufacturing (India) Private Limited	Subsidiary
Inventec Appliances (Jiangning) Corp.	Indirect holding subsidiary

〜 60 〜

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

NOTES TO THE PARENT COMPANY ONLY FINANCIAL STATEMENTS (CONT'D)

For the years ended December 31, 2020 and 2019

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

(b) Significant transactions with related parties

1.Sale revenue

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

related parties were as follows:
Subsidiaries Inventec Holding (North America) Corp. Inventec (Czech), s.r.o Other subsidiaries Associates	For the years ended December 31,
	2020 $ 71,105,867 26,100,876 265,992 1,027 $ 97,473,762	2019
		59,284,144 28,950,547 97,127 1,720
		88,333,538

After the Company receives the orders from all regions, the production and marketing department arranges to sell semi-finished products to the subsidiaries. The price is determined in accordance with mutual agreements. Since the subsidiaries are the overseas offices providing after-sales and assembling service, there is no other comparable objects, and the average collection terms are 90~105 days for sales.

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

Unrealized profit (loss) from sales to the subsidiaries of the Company for the years ended December 31, 2020 and 2019 were $11,807 and $14,174, respectively.

2.Purchase

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

Subsidiaries Inventec Corporation (Hong Kong) Ltd. Other subsidiaries Associates	For the years ended December 31,	For the years ended December 31,
		2019
		264,957,998 1,554,271 -
		266,512,269

For the Company’s purchase of materials used for after-sales service from subsidiaries, the price and terms were determined in accordance with mutual agreements with payment terms of 60~105 days.

〜 61 〜

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

NOTES TO THE PARENT COMPANY ONLY FINANCIAL STATEMENTS (CONT'D) For the years ended December 31, 2020 and 2019

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

3.Accounts receivable from related parties

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

Financial Statement Account	Related Party Categories	2020.12.31 $ 16,589,292 10,953,538 175,993 54,544,416 144,356 66 $ 82,407,661	2019.12.31
Accounts receivable Other receivables	Subsidiaries Inventec Holding (North America) Corp. Inventec (Czech), s.r.o Other subsidiaries Subsidiaries Inventec Corporation (Hong Kong) Ltd. Other subsidiaries Associates		15,937,407 11,231,269 20,047 47,244,779 130,868 1,305
			74,565,675

Note: Other receivables from subsidiaries are mainly generated from purchasing material for subsidiaries.

4.Accounts payable to Related Parties

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

Financial Statement Account	Related Party Categories	2020.12.31 $ 47,083,769 293,272 678 68,559 994 $ 47,447,272	2019.12.31
Accounts payable Accounts payable Other payables	Subsidiaries Inventec Corporation (Hong Kong) Ltd. Other subsidiaries Associates Subsidiary Associates		43,413,344 414,185 - 143,278 340
			43,971,147

Note: Other payables are mainly the payments of computer software, toolings, payment on behalf of others and software development.

〜 62 〜

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

NOTES TO THE PARENT COMPANY ONLY FINANCIAL STATEMENTS (CONT'D)

For the years ended December 31, 2020 and 2019

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

5.Property transactions
1) Acquisition of property, plant, equipment

For the years ended December 31, 2020 and 2019, the Company purchased property, plant, equipment from subsidiaries, and associates and paid the amount $9,976 and $52,919, respectively.

2) Disposal of property, plant and equipment

For the year ended December 31, 2020, the Company sold machinery, office equipment and software to subsidiaries. The total prices and gain on property disposal were $90,104 and $3,427, respectively.

3) For the year ended December 31, 2019, the Company purchased software for products from Inventec Corporation (Hong Kong) Ltd., amounted to $103,995. The price and term were determined in accordance with mutual agreements with payment term within three months.
4) In 2000, the Company paid property, deferred assets, assets stated under expense to investment Inventec Appliances Corp. resulting in gain on disposal of $103,713 and other revenue of $31,693. In addition, selling of property, plant and equipment, deferred assets and assets stated under expense has generated gain on disposal of $5,829 and other revenue of $6,427. As of December 31, 2020 and 2019, the unrealized gain on property disposal were $18,886 and $19,649, respectively.
5) In 1999, the Company 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, 2020 and 2019, the unrealized other revenues are both $1,211.
6.After-sale service, product processing and support services

The payments of after-sale service, product processing and support services to related parties were as follows:

as follows:
Subsidiaries Inventec Holding (North America) Corp. Inventec Corporation (Hong Kong) Ltd. Other subsidiaries	For the years ended December 31,
	2020 $ 311,221 322,021 559,735 $ 1,192,977	2019
		432,424 346,668 129,588
		908,680

〜 63 〜

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

NOTES TO THE PARENT COMPANY ONLY FINANCIAL STATEMENTS (CONT'D)

For the years ended December 31, 2020 and 2019

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

7.Acquired investments accounted by the equity method

The Board of directors resolved to establish Inventec Japan Corporation on July 23, 2019. The Company invested 200 shares amounting to JPY10,000 thousand.

In March, 2016, the company reinvested $165,000 in AIMobile Co., Ltd., with a shareholding ratio of 55%. In addition, AIMobile Co., Ltd. was approved by the Board of Directors to handle cash capital on August 24, 2018. Taking 25 January, 2018 as the base date for capital increase, the company’s investment amounted to 5,500 thousands of shares, totaling $55,000.

AIMobile Co., Ltd., through a resolution of the Board of Directors, made a cash capital increase on 2 December, 2020. With December 31, 2020 as the base date for capital increase, the Company invested 10,000 shares, $100,000, the shareholding ratio increased to 73%.

8.Others

1) Rental and building management fee collected from and related parties were as follows:

Subsidiaries Associates	For the years ended December 31,	For the years ended December 31,
	2020 $ 9,517 5,336 $ 14,853	2019
		58,876 7,099
		65,975

2) For the years ended December 31, 2020 and 2019, the amount of donation for other related parties were $10,000 and $10,000, respectively.
(c) Key management personnel compensation

Key management personnel compensation includes:

Key management personnel compensation includes:
Short-term employee benefits Post-employment benefit	For the years ended December 31,
	2020 $ 383,258 4,524 $ 387,782	2019
		347,602 2,038
		349,640

〜 64 〜

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

NOTES TO THE PARENT COMPANY ONLY FINANCIAL STATEMENTS (CONT'D) For the years ended December 31, 2020 and 2019

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

(8) Pledged Assets

The carrying values of pledged assets were as follows:

Pledged assets Object Refundable deposits (Other non-current assets) Customs duty guarantee and membership card Restricted assets (Other non- current assets) The fund remitted back to special-purpose account Land, buildings, structures, machinery and equipment, net (Property, plant and equipment) Long-term borrowings Total	2020.12.31 $ 28,930 132,954 5,840,331 $ 6,002,215	2019.12.31
		25,855 - 5,893,692
		5,919,547

(9) Significant Commitments and Contingencies

(a) Major Commitments:

1.Unused standby letters of credit were as follows: None.

2.Promissory notes issued for the bank credit and MOEA TDP performance guarance were as follows:

TWD USD	2020.12.31 2019.12.31 $ 15,898,550 15,890,600 1,643,000 1,356,000

(b) Contingencies: None.

(10) Losses Due to Major Disasters : None.

(11) Subsequent Events : None.

〜 65 〜

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

NOTES TO THE PARENT COMPANY ONLY FINANCIAL STATEMENTS (CONT'D)

For the years ended December 31, 2020 and 2019

(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 years ended December 31, 2020	For the years ended December 31, 2020	For the years ended December 31, 2020	For the years ended December 31, 2019	For the years ended December 31, 2019	For the years ended December 31, 2019
	Operating costs	Operating and non-operating expense	Total	Operating costs	Operating and non-operating expense	Total
Employee benefits Salary Labor and health insurance Pension Remuneration of directors Others Depreciation Amortization	1,072,516 98,114 34,265 - 48,350 247,106 71,623	4,758,618 331,473 194,630 133,554 146,321 314,651 506,556	5,831,134 429,587 228,895 133,554 194,671 561,757 578,179	715,810 57,625 25,265 - 31,621 100,248 176,000	4,368,055 317,725 186,900 87,414 164,352 308,544 491,744	5,083,865 375,350 212,165 87,414 195,973 408,792 667,744

The Company For the years ended December 31, 2020 and 2019 employees and employee benefits expenses were as follows:

Number of employees Number of directors who were not employees The average employee benefit The average salaries and wages Average adjustment of employee salaries and wages Remuneration receivedby supervisors	2020 5,635 4 $ 1,187 $ 1,036 % (4.25) $ -	2019 4,704 4 1,248 1,082 -

The Company's salary and remuneration policy (including directors, supervisors, managers and employees) is as follows:

The Company's salary and remuneration policy is committed to link with performance and to implement a performance-oriented remuneration system.

The remuneration system considers the Company's operating objectives along with financial status and comprehensively evaluates various categories such as performance and makes differentiated assessments based on individual contributions.

〜 66 〜

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

NOTES TO THE PARENT COMPANY ONLY FINANCIAL STATEMENTS (CONT'D)

For the years ended December 31, 2020 and 2019

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

1.Regardless operating profit or loss of the Company’ s business, the Company shall pay remuneration regularity to all directors. The remuneration is determined by the participation to the Company's operating performance of directors, the value of directors’ contribution to the Company's operations, and peer salary levels, then are reviewed by the remuneration committee and are submitted to the board of directors for further decision.
2.The individual salary and remuneration of directors and managers shall refer to the general salary level of peers. It should also consider personal duties contributions, performance, and conjunct with the company’ s operating goals and performance. Policies should be reviewed by the remuneration committee and sent to the Board of Directors for further decision.
3.The employee's remuneration includes monthly salary based on job grades, bonuses in accordance to performance, and remuneration measured on the level of Company's profitability.
Note: The Company's Articles of Association specify that no less than 3% of profit shall be allocated for employees' remuneration and no more than 3% of profit shall be allocated for directors' remuneration.

(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 Company for the year ended December 31, 2020:

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 3 4	Inventec (Chongqing) Corp.(Note 2) Inventec Appliances (Nanjing) Corp.(Note 3) Inventec Appliances (Shanghai) Co., Ltd.(Note 3) 〞 Inventec Appliances Corp. (Note 3)	Inventec Asset- Management (Shanghai) Corporation Inventec Appliances (XI'AN) Corporation Inventec Appliances (Shanghai) Enterprise Inventec Appliances (Nanchang) Intelligent Manufacturing Co., Ltd. Inventec Appliances (Malaysia) SDN. BHD.	Other receivables 〞〞〞〞	Y Y Y Y Y	523,800 100,395 30,555 131,400 800,000	- 82,935 - 130,950 800,000	- 56,745 - 130,950 328,409	3.045% - 3.045% 1.95%	2 2 2 2 2	- - - - -	Working Capital 〞〞〞〞	- - - - -	None 〞〞〞〞	- - - - -	3,184,453 343,822 1,771,832 1,771,832 8,476,966	3,184,453 343,822 1,771,832 1,771,832 8,476,966

〜 67 〜

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

NOTES TO THE PARENT COMPANY ONLY FINANCIAL STATEMENTS (CONT'D)

For the years ended December 31, 2020 and 2019

(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
5 5	Inventec (Pudong) Corp. (Note 4) 〞	Inventec Hi-Tech Corp. Inventec Asset- Management (Shanghai) Corporation	Other receivables 〞	Y Y	87,600 1,401,600	87,300 1,396,800	- 1,163,567	- 5.225%	2 2	- -	Working Capital 〞	- -	None 〞	- -	4,126,672 1,650,669	4,126,672 1,650,669

Note 1: (1)Those with business contact, please fill in 1.
(2)Those necessary for short term financing, please fill in 2.
Note 2: 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.
Note 3: 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: 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 5: The transactions in foreign currencies were exchanged to New Taiwan Dollars in spot rate at the date of the audited entity's financial reports.

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 r	Balance of guarantees and endorsements as of eporting 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
1	Inventec Appliances Corp.	Inventec Appliances (Jiangning) Corp.	2	4,238,483	1,163,146	1,163,146	-	-	% 13.72	4,238,483	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 directly holds more than 50 percent of its voting shares.
3.An investee in which the Company and subsidiary holds more than 50 percent of its voting shares.

Note 2: The total amount of guarantees and endorsements cannot exceed 50 percent of the Company's net asset value for the current year; the amount of each guarantee and endorsement cannot exceed 50 percent of the Company's net asset value for the current year.

Note 3: The transactions in foreign currencies were exchanged to New Taiwan Dollars in spot rate at the date of the audited entity's financial reports.

〜 68 〜

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

NOTES TO THE PARENT COMPANY ONLY FINANCIAL STATEMENTS (CONT'D)

For the years ended December 31, 2020 and 2019

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

Securities held as balance sheet 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		Note
				Shares/Units (thousands)	Carrying value	Percentage of ownership (%)	Fair value (Note1)
The Company 〞〞〞〞〞〞〞〞〞〞〞〞〞〞〞〞〞〞〞	WK Technology Fund IV Corp. Amphastar Pharmaceuticals Inc. Arima Communications Corp. WIN Semiconductors 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 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.	- - - - - - - - - - - - - - - - - - - -	Non-current financial assets at fair value through other comprehensive income 〞〞 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 〞〞〞〞	645 26 21,114 4,063 29 2,540 1,760 3,632 3,746 235 568 355 532 70 - 450 3,260 94,889 1,000 2,857	5,084 14,780 75,822 1,405,689 166 - 12,197 - 41,755 - 15,923 26,544 12,370 2,010,944 16,415 19,184 232,340 452,619 59,350 57,943	% 1.52 % 0.05 % 10.15 % 0.96 % 0.20 % 6.67 % 16.00 % 6.20 % 3.72 % 2.95 % 3.09 % 1.37 % 3.38 % 10.00 % - % 6.80 % 4.50 % 29.70 % 10.19 % 8.00	5,084 14,780 75,822 1,405,689 166 - 12,197 - 41,755 - 15,923 26,544 12,370 2,010,944 16,415 19,184 232,340 452,619 59,350 57,943

〜 69 〜

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

NOTES TO THE PARENT COMPANY ONLY FINANCIAL STATEMENTS (CONT'D)

For the years ended December 31, 2020 and 2019

(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		Note
				Shares/Units (thousands)	Carrying value	Percentage of ownership (%)	Fair value (Note1)
Inventec (Cayman) Corp. Saint Investment Consulting Corporation Inventec (Chongqing) Corp. Inventec (Beijing) Electronics Technology Co., Ltd. Inventec Electronics (Tianjin) Co., Ltd. Inventec Development Japan Corporation Inventec Investments Co., Ltd. 〞〞〞〞 Inventec Appliances Corp. 〞〞〞〞〞〞〞〞〞〞	Chainwin Biotech and Agrotech (Cayman Islands) Co., Ltd. Testron Technology (JiangSu) Co., Ltd. Kunshan Joing Technology Co., Ltd. Bank of Communications Pension CNY Financial products ICBC Wealth Management Corporation Tian Libao No. 2 Net Worth Management Product Famm Co., Ltd. EPISTAR Corporation UCFUNNEL CO LTD Sagacity Tech. Co., Ltd. Living Pattern Technology Inc. E-TON Solar Tech. Co., Ltd 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. 3GTMobile Corporation Linc Global Inc. (Proximiant, Inc.) Molekule, Inc. XMEMS LABS INC	- - - - - - - - - - - - - - - - - - - - - -	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 Current financial assets at fair value through profit or loss Non-current financial assets at fair value through other comprehensive income 〞〞〞〞〞〞〞〞〞	20,000 2,778 5,948 - - 100 1,761 83 79 4 15,813 32,000 1,950 635 461 100 93 939 314 594 1,603 1,778	1,175,931 68,964 207,736 52,379 109,120 9,192 72,911 9,653 - 626 75,429 72,549 - - - 1,000 - - - - 152,800 24,057	% 12.10 % 10.00 % 2.96 % - % - % 16.00 % 0.16 % 5.00 % 15.00 % 13.70 % 4.95 % 4.16 % 9.38 % 1.67 % 0.15 % 11.76 % 0.12 % 4.80 % 2.88 % 5.30 % 1.57 % 3.05	1,175,931 68,964 207,736 52,379 109,120 9,192 72,911 9,653 - 626 75,429 72,549 - - - 1,000 - - - - 152,800 24,057

〜 70 〜

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

NOTES TO THE PARENT COMPANY ONLY FINANCIAL STATEMENTS (CONT'D)

For the years ended December 31, 2020 and 2019

(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	Ending balance	Note
				Shares/Units (thousands)	Carrying value	Percentage of ownership (%)	Fair value (Note1)
Inventec Appliances Corp. Inventec Appliances (Cayman) Holding Corp. 〞〞	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 profit or loss 〞〞〞	- 99 1,250 446	14,795 - - -	% - % 0.03 % 2.36 % 2.08	14,795 - - -

Note 1: The value of publicly traded company is market value, and the value of private entity is net asset value. The net asset value was calculated based on audited financial statements or non audited financial statements.

Note 2: The transactions in foreign currencies were exchanged to New Taiwan Dollars in spot rate at the date of the audited entity's financial reports.

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	Category and name of security (Note 1)	Account name (Note 1)	Name of counter-party	Relationship with the company	Beginnin	g Balance	Pur	chases		Sa	les		Ending	Balance
					Shares	Amount	Shares	Amount	Shares	Price	Cost	Gain (loss) on disposal	Shares	Amount
Inventec (Cayman) Corp. Inventec (Chongqing) Corp. Inventec Appliances (Shanghai) Corp. 〞 Inventec Appliances (Nanjing) Co. Ltd. Inventec Appliances (Jiangning) Corp.	Chainwin Biotech and Agrotech (Cayman Islands) Co., Ltd. common shares CMBC Wealth Management Services SCSB Winners CNY Financial Product Bank of China SCSB Winners CNY Financial Product 〞	Non-current financial assets at fair value through other comprehensive income Current financial assets at fair value through profit or loss 〞〞〞〞	Cash Capital Increase CMBC Bank of Shanghai Bank of China Bank of Shanghai 〞	Non-related parties - - - - -	- - - - - -	- 862,093 325,959 301,853 152,006 1,893,146	20,000 - - - - -	1,175,931 - 955,947 296,370 198,382 4,781,313	- - - - - -	- 870,449 1,292,301 605,403 355,752 6,723,267	- 862,093 1,281,906 598,223 350,388 6,674,459	- 8,356 10,395 7,180 5,364 48,808	20,000 - - - - -	1,175,931 - - - - -

Note 1: The amounts above are valued at exchange rate.

Note 2: The transactions in foreign currencies were exchanged to New Taiwan Dollars in spot rate at the date of the audited entity's financial reports.

〜 71 〜

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

NOTES TO THE PARENT COMPANY ONLY FINANCIAL STATEMENTS (CONT'D)

For the years ended December 31, 2020 and 2019

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

Acquisition of individual real estate with amount exceeding the lower of TWD300 million or 20% of the capital stock: None.
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	Receipt Terms	Gain (loss) on disposal	Counter-party	Relationship	Purpose of disposal	Price reference	Other terms
Inventec (Pudong) Co., Ltd.	Land and Building	2020.01.06	2003.06.27~ 2007.12.31	740,483	5,912,920	100%	4,890,869	Shanghai Jingshuo Data Science & Technology Co., Ltd.	Non-related parties	Optimize assets N t w R R	egotiated based on he valuation report ith the amounts of MB1,340,170 and MB1,364,810	None

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

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 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. Inventec (Czech), s.r.o. Inventec (Czech), s.r.o.	Subsidiary 〞〞〞〞〞〞 Parent 〞 Associates 〞〞	Sales Sales Sales Purchases Purchases Purchases Purchases Purchases Sales Sales Sales Purchases	71,105,867 26,100,876 190,326 299,231,642 344,879 800,083 764,846 71,105,867 800,083 647,061 1,125,297 289,861	% 17.45 % 6.41 % 0.05 % 76.45 % 0.09 % 0.20 % 0.20 % 89.75 % 1.05 % 0.85 % 1.48 % 0.37	90-105 days 90-105 days 60 days 90-105 days 90 days 90-105 days 90-105 days 90-105 days 90-105 days 90-105 days 90-105 days 90-105 days	- - - - - - - - - - - -	No general trading partner can be compared. 〞〞〞〞〞〞〞〞〞〞〞	16,589,292 10,953,538 108,031 (47,083,769) (92,431) (62,178) (138,655) (16,589,292) 62,178 112,290 242,702 (31,241)	% 19.09 % 12.61 % 0.12 % 52.18 % 0.10 % 0.07 % 0.15 % 93.30 % 0.97 % 1.75 % 3.77 % 0.18

〜 72 〜

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

NOTES TO THE PARENT COMPANY ONLY FINANCIAL STATEMENTS (CONT'D)

For the years ended December 31, 2020 and 2019

(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 (Czech), s.r.o. 〞〞〞〞 Inventec Corporation (Hong Kong) Ltd. 〞〞 Inventec (Pudong) Technology Corp. 〞〞〞 Inventec (Shanghai) Corp. Inventec (Chongqing) Corp. 〞〞 Inventec Appliances Corp. 〞〞〞	The Company The Company Inventec Holding (North America) Corp. Inventec Holding (North America) Corp. Inventec (Pudong) Technology Corp. The Company Inventec (Pudong) Technology Corp. Inventec (Chongqing) Corp. Inventec Corporation (Hong Kong) Ltd. Inventec (Shanghai) Corp. Inventec Holding (North America) Corp. Inventec (Czech), s.r.o. Inventec (Pudong) Technology Corp. Inventec Corporation (Hong Kong) Ltd. Inventec Appliances (Pudong) Corp. Inventec Appliances (Pudong) Corp. Inventec Appliances (Pudong) Corp. Inventec Appliances (Jiangning) Corp. Inventec Appliances (Nanchang) Intelligent Manufacturing Co., Ltd. Inventec Appliances (USA) Distribution Corp.	Parent 〞 Associates 〞〞 Parent Associates 〞〞〞〞〞〞〞〞〞〞〞〞〞	Purchases Sales Purchases Sales Sales Sales Purchases Purchases Sales Sales Purchases Purchases Purchases Sales Sales Purchases Purchases Purchases Purchases Sales	26,100,876 764,846 1,125,297 289,861 131,200 299,231,642 36,587,835 262,643,807 36,587,835 50,835,082 647,061 131,200 50,835,082 262,643,807 3,461,826 3,680,438 30,918,894 1,046,079 658,785 3,466,765	% 92.80 % 2.61 % 4.28 % 0.99 % 0.45 % 100.00 % 12.23 % 87.77 % 39.92 % 55.46 % 0.68 % 0.14 % 100.00 % 97.94 % 1.29 % 1.38 % 89.13 % 3.02 % 1.90 % 9.65	90-105 days 90-105 days 90-105 days 90-105 days 90-105 days 90-105 days 90-105 days 90 days 90-105 days 90-105 days 90-105 days 90-105 days 90-105 days 90 days 60 days 60 days 1-2 months 1-2 months 1-2 months 1-2 months	- - - - - - - - - - - - - - - - - - - -	No general trading partner can be compared. 〞〞〞〞〞〞〞〞〞〞〞〞〞〞〞〞〞〞〞	(10,953,538) 138,655 (242,702) 31,241 18,675 47,083,769 (8,339,964) (38,743,806) 8,339,964 10,882,010 (112,290) (18,675) (10,882,010) 38,743,806 - - (9,058,738) (256,111) (153,221) 76,546	% 96.76 % 1.65 % 2.14 % 0.37 % 0.22 % 46.27 % 8.20 % 38.07 % 42.29 % 55.18 % 0.35 % 0.06 % 100.00 % 98.81 % - % - % 89.80 % 2.54 % 1.52 % 1.34

〜 73 〜

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

NOTES TO THE PARENT COMPANY ONLY FINANCIAL STATEMENTS (CONT'D)

For the years ended December 31, 2020 and 2019

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

Name of company	Related party	Nature of relationship	Transaction details	Transaction details	Transaction details	Transaction details	Trans diffe	actions with terms rent from others	Notes/Accounts receivable (payable)	Notes/Accounts receivable (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 (Jiangning) Corp. 〞 Inventec Appliances (Nanchang) Intelligent Manufacturing Co., Ltd. 〞 AIMobile Co., Ltd.	Inventec Appliances Corp. Inventec Appliances Corp. Inventec Appliances (Nanchang) Intelligent Manufacturing Co., Ltd. Inventec (Chongqing) Corp. Inventec (Chongqing) Corp. Inventec Appliances Corp. The Company Inventec Appliances Corp. Inventec Appliances (Pudong) Corp. The Company	Associates 〞〞〞〞〞 Parent Associates 〞 Parent	Purchases Sales Sales Sales Purchases Sales Sales Sales Purchases Purchases	3,466,765 30,918,894 679,313 3,680,438 3,461,826 1,046,079 344,879 658,785 679,313 190,326	% 100.00 % 87.33 % 1.70 % 10.40 % 12.72 % 22.07 % 7.31 % 98.89 % 98.65 % 87.80	1-2 months 1-2 months 1-2 months 60 days 60 days 1-2 months 90 days 1-2 months 1-2 months 60 days	- - - - - - - - - -	No general trading partner can be compared. 〞〞〞〞〞〞〞〞〞	(76,546) 9,058,738 374,674 - - 256,111 92,431 153,221 (374,674) (108,031)	% 100.00 % 96.10 % 3.90 % - % - % 23.67 % 8.54 % 98.48 % 99.67 % (94.17)

Note 1: Based on the negotiated price while trading.

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 balance	Ov	erdue	Amounts received in subsequent period	Allowance for bad debts
					Amount	Action taken
The Company 〞〞〞 Inventec Holding (North America) Corp. 〞	Inventec Holding (North America) Corp. AIMobile Co., Ltd. Inventec (Czech), s.r.o. Inventec Corporation (Hong Kong) Ltd. (Note) Inventec (Czech), s.r.o. Inventec (Pudong) Technology Corp.	Subsidiary Subsidiary Subsidiary Subsidiary Associates Associates	16,589,292 108,031 10,953,538 54,544,416 242,702 112,290	4.37 2.97 2.35 - 4.53 9.03	2,693,480 30,878 3,978,775 11,228,394 - -	Received in the subsequent period Received in the subsequent period Received in the subsequent period Received in the subsequent period	7,473,792 63,923 5,083,626 37,115,539 - -	- - - - - -

〜 74 〜

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

NOTES TO THE PARENT COMPANY ONLY FINANCIAL STATEMENTS (CONT'D)

For the years ended December 31, 2020 and 2019

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

Name of company	Counter party	Relationship	Ending balance	Turnover balance	Overdue	Overdue	Amounts received in subsequent period	Allowance for bad debts
					Amount	Action taken
Inventec (Czech), s.r.o. Inventec Corporation (Hong Kong) Ltd. 〞〞 Inventec (Pudong) Technology Corp. 〞 Inventec (Chongqing) Corp. Inventec Appliances (Pudong) Corp. 〞 Inventec Appliances (Jiangning) Corp. Inventec Appliances (Nanchang) Intelligent Manufacturing Co., Ltd.	The Company The Company Inventec (Pudong) Technology Corp. (Note) Inventec (Chongqing) Corp. (Note) Inventec Corporation (Hong Kong) Ltd. Inventec (Shanghai) Corp. Inventec Corporation (Hong Kong) Ltd. Inventec Appliances Corp. Inventec Appliances (Nanchang) Intelligent Manufacturing Co., Ltd. Inventec Appliances Corp. Inventec Appliances Corp.	Parent Parent Associates Associates Associates Associates Associates Associates Associates Associates Associates	138,655 47,083,769 23,828,947 30,715,470 8,339,964 10,882,010 38,743,806 9,058,738 374,674 256,111 153,221	7.60 6.61 - - 2.82 5.29 8.15 2.61 3.63 4.78 8.60	- - 11,205,570 22,824 - 32,561 - - - - -	Received in the subsequent period Received in the subsequent period Received in the subsequent period Received in the subsequent period	138,655 37,733,251 6,402,488 30,713,051 1,565,414 5,171,927 36,167,837 3,853,102 30,551 256,111 153,221	- - - - - - - - - - -

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

Trading in derivative instruments: Please refer to notes (6)(b) and (6)(v).
(b) Information on investment:

The following is the information on investees for the year ended December 31, 2020 (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 inve	stment amount	Balance	as of December 3	1, 2020	Net income (loss) of the investee	Share of profits/losses of investee	Note
				December 31, 2020	December 31, 2019	Shares/Units (In thousands)	Percentage of ownership	Carrying value
The Company 〞〞〞〞	Inventec Besta Co., Ltd. Inventec Corporation (Hong Kong) Ltd. Inventec Holding (North America) Corp. Inventec Appliances Corp. Inventec (Cayman) Corp.	Taipei Hong Kong USA New Taipei City Cayman	Electronic dictionary Investing in Mainland China and import and export business Investment of holding company in America Wireless terminal products Holding Company	420,347 167,162 159,003 9,656,877 9,812,963	420,347 167,162 159,003 9,656,877 9,812,963	23,405 2,500 5,000 536,857 301,768	% 37.53 % 100.00 % 100.00 % 100.00 % 100.00	210,311 365,614 1,281,813 9,246,421 21,100,327	(47,675) 10,896 62,310 679,517 7,722,888	(17,892) 10,896 62,310 679,517 7,722,888	Associate under equity method Subsidiary 〞〞〞

〜 75 〜

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

NOTES TO THE PARENT COMPANY ONLY FINANCIAL STATEMENTS (CONT'D)

For the years ended December 31, 2020 and 2019

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

Investor company	Investee company	Location	Main businesses and products	Original inves	tment amount	Balance	as of December 3	1, 2020	Net income (loss) of the investee	Share of profits/losses of investee	Note
				December 31, 2020	December 31, 2019	Shares/Units (In thousands)	Percentage of ownership	Carrying value
The Company 〞〞〞〞〞〞〞 Inventec Investment Co., Ltd. 〞 Inventec Appliances 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 Manufacturing (India) Private Limited Inventec Solar Energy Corporation Inventec Manufacturing (India) Private Limited Inventec Appliances (Cayman) Holding Corp. Gainia Intellectual Asset Services, Inc. Inventec Solar Energy Corporation	Cayman Czech Taipei Taoyuan Japan Japan Taipei India Taoyuan India Cayman Taipei Taoyuan	Holding Company Computer products assembly operations Investment Company Developing, production and selling of multicrystalline solar cells Developing, designing and selling computer peripherals Trading and management service Developing, production and selling of intelligent mobile device Computer products assembly operations Developing, production and selling of multicrystalline solar cells Computer products assembly operations Holding Company Intellectual property rights integrative services Developing, production and selling of multicrystalline solar cells	739,500 85,921 1,000,000 1,087,800 630,845 2,954 182,500 281,691 150,000 28 5,683,886 6,400 311,160	739,500 85,921 1,000,000 1,087,800 630,845 2,954 220,000 281,691 150,000 28 5,683,886 6,400 311,160	25,000 - 108,800 108,150 45 - 18,250 55,994 15,000 6 199,575 205 30,930	% 100.00 % 100.00 % 100.00 % 33.45 % 100.00 % 100.00 % 73.00 % 99.99 % 4.64 % 0.01 % 100.00 % 38.90 % 9.57	1,178,105 114,544 124,923 (296,204) 17,677 3,181 122,282 10,738 (44,540) 1 16,545,017 1,332 (91,841)	273,585 78,541 (52,959) (1,695,966) (1,036) 414 (81,693) 34,347 (1,695,966) 34,347 (300,331) (1,096) (1,695,966)	273,585 78,541 (52,959) (546,206) (1,036) 414 (44,924) 35,455 - - - - -	Subsidiary 〞〞〞〞〞〞〞 Associate Company 〞〞 Associate under equity method Associate Company

〜 76 〜

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

NOTES TO THE PARENT COMPANY ONLY FINANCIAL STATEMENTS (CONT'D)

For the years ended December 31, 2020 and 2019

(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, 2020	Balance as of December 31, 2020	Balance as of December 31, 2020	Net income (loss) of the investee	Share of profits/losses of investee	Note
				December 31, 2020	December 31, 2019	Shares/Units (In thousands)	Percentage of ownership	Carrying value
Inventec Appliances (Cayman) Holding Corp. 〞 Inventec Appliances (Pudong) Corp.	Inventec Appliances (USA) Distribution Corp Inventec Appliances Corporation USA Inc. Inventec Appliances (Malaysia) SDN. BHD.	. USA S P s , USA S Malaysia s p	elling of MP3 layer, PDA and cience plotter elling services Manufacture and ale of electronic materials and roducts	22,784 1,424 501,784	22,784 1,424 -	400 10 71,000	% 100.00 % 100.00 % 100.00	92,687 13,003 482,340	1,127 885 (19,102)	- - -	Associate Company 〞〞

Note 1: The transactions in foreign currencies were exchanged to New Taiwan Dollars in spot rate at the date of the audited entity's financial reports. Note 2: According to the regulations, the Company are not required to disclose the share of income / loss of investees..

(c) Information on investment 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, 2020	Investm	ent flows	Accumulated outflow of investment from Taiwan as of December 31, 2020	Net income (losses) of the investee	Percentage of ownership	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. 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	Multimedia computer and system parts assembling Multimedia computer and system parts assembling Multimedia computer and system parts assembling Multimedia computer and system parts assembling Multimedia computer and system parts assembling Multimedia computer and system parts assembling Software production Software production Multimedia computer and system parts assembling	188,679 28,480 1,424,000 2,087,127 2,136,000 1,668,692 142,400 41,296 1,424,000	(2) (2) (2) (2) (2) (2) (2) (2) (2)	56,960 28,480 1,424,000 840,160 2,136,000 1,424,000 121,040 41,296 1,424,000	- - - - - - - - -	- - - - - - - - -	56,960 28,480 1,424,000 840,160 2,136,000 1,424,000 121,040 41,296 1,424,000	(971) (1,330) 3,550,998 93,305 2,365,436 2,274,369 2,345 1,516 (57,017)	% 100.00 % 100.00 % 100.00 % 100.00 % 100.00 % 100.00 % 100.00 % 100.00 % 100.00	(971) (1,330) 3,550,998 93,305 2,365,436 2,273,877 2,345 1,516 (57,017)	123,206 40,042 4,126,672 1,859,116 7,961,132 6,615,064 230,567 77,358 1,138,394	30,234 - - - 2,242,107 321,599 149,517 - -

〜 77 〜

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

NOTES TO THE PARENT COMPANY ONLY FINANCIAL STATEMENTS (CONT'D)

For the years ended December 31, 2020 and 2019

(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, 2020	Investm	ent flows	Accumulated outflow of investment from Taiwan as of December 31, 2020	Net income (losses) of the investee	Percentage of ownership	Investment income (losses) (Note 2)	Book value	Accumulated remittance of earnings in current period (Note 6)
					Out-flow	Inflow
Inventec Huan Hsin (Zhejiang) Technology Co., Ltd. Inventec Asset- Management (Shanghai) Corporation Saint Investment consulting corporation 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. Inventec Appliances (Shanghai) Enterprise Inventec Appliances (Nanchang) Intelligent Manufacturing Co., Ltd.	Complete of the electronic computer and product and sale of external equipment Equipment leasing, storage, technological development and saleof computer Business management consulting Electronic communication and products assemble Electronic communication and products assemble Electronic communication and products assemble House leasing Electronic communication and products assemble Electronic communication and products assemble Business Management Development and consultation on software and hardware; as well as selling of electronic products Electronic communication and products assemble	817,376 1,869,030 87,296 1,469,568 2,192,960 1,936,640 142,400 113,920 59,808 2,190 34,919 261,889	(2) (3) (3) (2) (2) (2) (2) (2) (2) (3) (3) (3)	822,474 - - 1,370,401 2,192,960 1,196,160 255,793 113,920 59,808 - - -	- - - - - - - - - - - -	- - - - - - - - - - - -	822,474 - - 1,370,401 2,192,960 1,196,160 255,793 113,920 59,808 - - -	(2,120) (22,349) 33 (34,975) (569,471) 308,573 12,695 10,358 (50,163) 25,252 (2,026) (81,203)	% 100.00 % 78.00 % 100.00 % 100.00 % 100.00 % 100.00 % 100.00 % 100.00 % 100.00 % 100.00 % 100.00 % 100.00	(2,120) (17,432) 33 (34,975) (545,196) 306,693 12,695 10,358 (50,163) 25,252 (2,026) (81,203)	3,837 1,374,393 87,330 1,771,832 8,854,398 5,291,450 382,786 50,757 81,258 84,036 25,385 105,694	- - - 1,535,981 2,297,117 1,636,736 85,353 - - - - -

2. Limitation on investment in Mainland China:

2. Limitation on inves	tment in Mainland China:
Name of Company	Accumulated Investment in Mainland China as of December 31, 2020	Investment Amounts Authorized by Investment Commission, MOEA	Upper Limit on Investment (Note 3,4,7)
The Company Inventec Appliances Corp.	8,378,214 5,252,510	8,378,214 5,252,510	- 5,086,180

Note 1: There are three ways of investments as following:

(a) Direct investment in Mainland China.

(b) Indirect investment in Mainland china through a subsidiary in a third place.

〜 78 〜

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

NOTES TO THE PARENT COMPANY ONLY FINANCIAL STATEMENTS (CONT'D)

For the years ended December 31, 2020 and 2019

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

Note 2: The base of recognition of investment income (loss) is the financial statement 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 exchanged to New Taiwan Dollars in spot rate at the date of the audited entity's financial reports. Note 6: The amount of foreign currencies were exchanged to New Taiwan Dollars in historical exchange rates. Note 7: After the accumulated investment in Mainland China as of Dcecmber 31, 2020, deducted the accumulated remittance of earnings in current period, the difference of Inventec Appliance Corp. was still under the upper limit on investment.

Note 8: The inter-company transactions with the Company 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, 2020, are disclosed in “Information on significant transactions”.

(d) Major shareholders: No shareholders hold more than 5% shares.

(14) Segment Information

Please refer to consolidated financial report of Inventec Corporation for the year ended December 31, 2020.

〜 79 〜

INVENTEC CORPORATION

Statement of Cash and Cash Equivalents

December 31, 2020

(In Thousands of New Taiwan Dollars)

Item	Description Amount Petty cash $ 450 Foriegn cash 622 Subtotal 1,072 Checking accounts 1,384 Demand deposits 90,112 Foriegn deposits USD 156,034 4,445,014 JPY 3,822 CNY 17 EUR 1 Time deposits 728,540 Subtotal 5,265,050 $ 5,266,122
Cash Cash in bank

〜 80 〜

INVENTEC CORPORATION

Statement of Changes in Financial Assets Measured at Fair Value through Other Comprehensive Income - Current

For the year ended December 31, 2020

(In Thousands of New Taiwan Dollars)

Name of financial instrument	Description Stock	Share or units	Par value $ 40,630	Total amount 1,405,689	Interest rate % -	Acquisition cost 113,690	Accumulated impairment -	Fair value Unit price Total amount Note 346.00 1,405,689
								Unit price 346.00
WIN Semiconductors Corp.		4,063

〜 81 〜

INVENTEC CORPORATION

Statement of Trade Receivables

December 31, 2020

(In Thousands of New Taiwan Dollars)

Client Name	Description	Amount Note $ 42,557,810 8,522,803 8,120,989 The year-end balance of each client doesn't exceed 5% of the account balance. 59,201,602 (34,867) 59,166,735 16,589,292 10,953,538 175,993 The year-end balance of each client doesn't exceed 5% of the account balance. 27,718,823 - 27,718,823 $ 86,885,558
Non-related parties : HP ASUSTEK Other Subtotal Less: Allowance for impairment Net amount Related parties : Inventec Holding (North America) Corp. Inventec (Czech), S.R.O. Other Subtotal Less: Allowance for impairment Net amount Total

〜 82 〜

INVENTEC CORPORATION

Statement of Other Receivables

December 31, 2020

(In Thousands of New Taiwan Dollars)

Item	Description	Amount Note $ 236,116 54,688,838 1,681 $ 54,926,635
Non-related parties Related parties Earned revenue receivable Total	Payment on behalf of others Payment of materials on behalf of others Interest receivable from bank

Statement of Inventory

Item	Amount Cost Net realized value Note $ 1,225,291 1,171,277 691,631 683,313 536,647 526,593 2,453,569 2,381,183 (65,624) $ 2,387,945
	Cost $ 1,225,291 691,631 536,647 2,453,569 (65,624) $ 2,387,945
Raw materials Work in process Finished goods Subtotal Less: Allowance for inventory market decline and obsolescence Total

〜 83 〜

INVENTEC CORPORATION

Statement of Other Current Assets

December 31, 2020

(In Thousands of New Taiwan Dollars)

Item	Description	Amount Note $ 863 74,913 75,776 2,511,971 260,999 22,461 $ 2,871,207
Prepayments Payment on behalf of others Asset for recovery Other	Premium Other Subtotal Other Other

〜 84 〜

Inventec Corporation

Statement of Non-current financial assets at fair value through

profit or loss

For the year ended December 31, 2020

(In Thousands of New Taiwan Dollars)

Name of financial instrument Common Stock Empass Technology Inc Entire Technology Co., Ltd. E-Ton Solar Tech Co., LTD Imedtac Co., Ltd. Tmy Technology Inc. Total	Beginning Balance Shares/(in thousand) Fair value - $ - - - - - - - - - $ -	Addition Shares/(in thousand) Amount 450 19,184 3,260 232,340 94,889 452,619 1,000 59,350 2,857 57,943 821,436	Decrease Shares/(in thousand) Amount - - - - - - - - - - -	Ending balance Shares/(in thousand) Fair value 450 19,184 3,260 232,340 94,889 452,619 1,000 59,350 2,857 57,943 821,436	Collateral Note None 〞〞〞〞
	Shares/(in thousand)	Shares/(in thousand) 450 3,260 94,889 1,000 2,857	Shares/(in thousand) - - - - -	Shares/(in thousand) 450 3,260 94,889 1,000 2,857
	- - - - -

〜 85 〜

INVENTEC CORPORATION

Statement of Changes in Financial Assets Measured at fair Value － through Other Comprehensive Income Non-current

For the year ended December 31, 2020

(In Thousands of New Taiwan Dollars)

Name of financial instrument Common Stock WK Technology Fund IV Corp. Global Strategy Venture Capital Corporation Arima Communications Corp. Tomorrow Studio Co., Ltd. Tai Yi Precision Corporation New E Materials Co., Ltd. ZT Group Int'l, Inc. Amphastar Pharmaceuticals Inc. Subtotal Preferred Stock CloudMosa Technologies, Inc. Rasilient Systems, Inc. SKSpruce Holding Limited QEEXO Co. Rescale Inc. Sensel Inc. Subtotal Total	Beginning Balance Shares (in thousand) Fair value 645 $ 5,632 2,835 14,940 21,114 129,221 29 176 2,540 - 1,760 14,555 70 1,699,658 - - 1,864,182 235 11,150 3,632 - 3,746 138,701 568 27,703 355 26,637 532 6,366 210,557 $ 2,074,739	Addition Shares (in thousand) Amount - - - - - - - - - - - - - 311,286 26 14,780 326,066 - - - - - - - - - - - 6,004 6,004 332,070	Decrease Shares (in thousand) Amount - 548 2,835 14,940 - 53,399 - 10 - - - 2,358 - - - - 71,255 - 11,150 - - - 96,946 - 11,780 - 93 - - 119,969 191,224	Ending balance Shares (in thousand) Fair value 645 5,084 - - 21,114 75,822 29 166 2,540 - 1,760 12,197 70 2,010,944 26 14,780 2,118,993 235 - 3,632 - 3,746 41,755 568 15,923 355 26,544 532 12,370 96,592 2,215,585	Collateral Note None 〞〞〞〞〞〞〞〞〞〞〞〞〞
	Shares (in thousand)	Shares (in thousand) - - - - - - - 26 - - - - - -	Shares (in thousand) - 2,835 - - - - - - - - - - - -	Shares (in thousand) 645 - 21,114 29 2,540 1,760 70 26 235 3,632 3,746 568 355 532
	645 2,835 21,114 29 2,540 1,760 70 - 235 3,632 3,746 568 355 532

〜 86 〜

INVENTEC CORPORATION

Statement of Changes in Investments Accounted for Using the Equity Method

For the Year Ended December 31, 2020

(In Thousands of New Taiwan Dollars)

Name of investee 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 Development Japan Corporation Inventec Japan Cororation Inventec Investment Co., Ltd. E-Ton Solar Tech. Co., Ltd. Manufacturing (India) Private Limited AI Mobile Co., Ltd. Inventec Solar Energy Corporation	Beginning Balance Shares (in thousand) Amount 23,405 $ 245,487 2,500 354,041 5,000 1,290,344 536,857 9,714,377 301,768 13,887,270 25,000 958,568 - 32,250 45 17,630 - 2,774 108,800 178,323 94,889 396,783 55,994 (25,580) 22,000 81,383 $ 27,133,650 108,150 $ 250,002	Add	ition Amount - 11,573 - - 7,213,057 219,537 82,294 47 407 - - 36,318 40,899 7,604,132 -	Dec	rease Amount 35,176 - 8,531 467,956 - - - - - 53,400 396,783 - - 961,846 546,206		Ending balance	Amount 210,311 365,614 1,281,813 9,246,421 21,100,327 1,178,105 114,544 17,677 3,181 124,923 - 10,738 122,282 33,775,936 (296,204)	Market V Asset	alue or Net s Value Total amount 230,071 365,614 1,281,813 9,246,421 21,100,327 1,178,105 114,544 17,677 3,181 124,923 - 10,738 122,282 33,795,696 (296,204)	Collateral Note None Note 〞〞〞〞〞〞〞〞〞〞〞〞〞〞〞〞〞〞〞〞〞〞〞〞〞 Note 1
	Shares (in thousand)	Shares (in thousand) - - - - - - - - - - - - 10,000 -		Shares (in thousand) - - - - - - - - - - 94,889 - 13,750 -		Shares (in thousand) 23,405 2,500 5,000 536,857 301,768 25,000 - 45 - 108,800 - 55,994 18,250 108,150	Percentage of ownership % 37.53 % 100.00 % 100.00 % 100.00 % 100.00 % 100.00 % 100.00 % 100.00 % 100.00 % 100.00 % - % 99.99 % 73.00 % 33.45		Unit price 9.83 - - - - - - - - - - - - -
	23,405 2,500 5,000 536,857 301,768 25,000 - 45 - 108,800 94,889 55,994 22,000 108,150

Note : The value of listed company is market value, and the value of private entity is net equity.

Note1: Other non-current liabilities, others.

〜 87 〜

INVENTEC CORPORATION

Statement of Other Non-current Assets

December 31, 2020

(In Thousands of New Taiwan Dollars)

Item	Description	Amount Note $ 2,776,909 (2,337,485) 1,172,586 132,954 28,930 34,105 $ 1,807,999
Deferred expense Less: Accumulated, depreciation Deferred tax assets Restricted assets Refundable deposits Other assets	Toolings Membership card and customs duty guarantee

〜 88 〜

INVENTEC CORPORATION

Statement of Short-term Borrowings

December 31, 2020

(In Thousands of New Taiwan Dollars)

Type	Description	Ending balance $ 5,919,969 5,259,907 4,260,116 2,191,639 1,708,206 1,704,372 1,448,964 1,000,000 400,000 300,000 $ 24,193,173	Contract Period 2020.11.05-2021.03.10 2020.10.08-2021.03.26 2020.11.11-2021.01.15 2020.10.29-2021.01.27 2020.12.03-2021.06.01 2020.11.04-2021.01.13 2020.12.17-2021.03.17 2020.11.27-2021.02.26 2020.10.07-2021.01.07 2020.11.13-2021.01.13	Range of interest rate Loan commitment 0.48%-0.61% USD 223,000 0.74%-0.85% USD 250,000 0.50%-0.51% USD 150,000 0.63% TWD 2,325,000 0.70% USD 80,000 0.67% USD 80,000 0.73% TWD 1,800,000 0.80% USD 60,000 0.68% USD 80,000 0.85% USD 30,000	Collateral Note None 〞〞〞〞〞〞〞〞〞
Short-term borrowings	Citi Bank DBS Bank Bank of Taiwan Hua Nan Bank Mega Bank Taishin Bank Land Bank Mizuho Bank Sumito Mitsui Bank OCBC Bank

〜 89 〜

INVENTEC CORPORATION

Statement of Accounts Payable

December 31, 2020

(In Thousands of New Taiwan Dollars)

Vendor name	Description	Amount Note $ 15,992,173 6,795,321 20,074,241 The year-end balance of each client doesn't exceed 5% of the account balance. 42,861,735 47,083,769 293,950 The year-end balance of each client doesn't exceed 5% of the account balance. 47,377,719 $ 90,239,454
Non-related parties : HP International Pte. Ltd. Asustek Computer Incorporation Other Subtotal Related parties : Inventec Corporation (Hong Kong) Ltd. Other Subtotal Total

〜 90 〜

INVENTEC CORPORATION

Statement of Other Payables

December 31, 2020

(In Thousands of New Taiwan Dollars)

Item	Description Amount Payables for salary and bonus $ 2,700,935 Payables for purchasing softwares 22,439 Inventory processing fee 563,559 Other 2,357,233 $ 5,644,166
Other payables Total

Statement of Other Current Liabilities

Item	Description	Amount Note $ 746 56,604 4,557,593 3,241,256 $ 7,856,199
Other current liabilities	Advance receipts Receipts under custody Temporary credits Other

〜 91 〜

INVENTEC CORPORATION

Statement of Long-term Borrowings

December 31, 2020

(In Thousands of New Taiwan Dollars)

Creditor	Description	Amount $ 5,696,000 2,033,333 1,016,667 (300,000) $ 8,446,000	Term of contract 2020.10.14-2022.10.14 2016.02.26-2031.02.26 2016.02.26-2031.02.26	Interest rate Collateral Note % 1.01 None With financial covenant % 1.19 Land and building No financial covenant % 1.19 〞〞
Syndicated agreement with Hua Nan Bank and other 13 participating banks Hua Nan Bank Bank of Taiwan Less: Long-term Borrowings, current portion Total	- Secured borrowings 〞

〜 92 〜

INVENTEC CORPORATION

Statement of Other Non-current Liabilities

December 31, 2020

(In Thousands of New Taiwan Dollars)

Item	Description	Amount Note $ 2,865,814 36,859 561 296,204 $ 3,199,438
Other non-current liabilities	Deferred tax liabilities Deferred credits Gaurantee deposits received Credit balance of investments accounted for using equity method

〜 93 〜

INVENTEC CORPORATION

Statement of Operating Costs

For the year ended December 31, 2020

(In Thousands of New Taiwan Dollars)

Item
Cost of goods sold from manufacturing
Direct material
Add: Raw material, January 1
Purchase
Gain on physical inventory
Less: Raw material, December 31
Transferred to expense
Sale
Loss on physical inventory
Direct labor
Manufacturing expenses
Cost of manufacturing
Add: Work in process, January 1
Purchase
Gain on physical inventory
Less: Work in process, December 31
Transferred to expense
Loss on physical inventory
Transferred to warrunty
Cost of finished goods
Add: Finished goods, January 1
Gain on physical inventory
Less: Finished goods, December 31
Loss on inventory
Transferred to expense
Transferred to warranty
Cost of material sold
Cost of merchandise sold (triangle trade)
Loss of inventory valuation
Cost of warranty
Expense of idle capacity
Loss on physical inventory
Cost of provision of sales return
Total operating costs

Amount
Subtotal
Total
$ 29,147,821
13,592,903
1,706,188
14,139,890
35,119
(1,225,291)
(89,335)
(932,473)
(41,195)
748,072
1,796,817
16,137,792
1,255,327
12,570,148
386
(691,631)
(167,077)
(687)
(159)
29,104,099
971,832
3,484
(536,647)
(4,054)
(382,894)
(7,999)
932,473
364,989,767
11,198
589,340
26,306
6,947
(52,976)
$
395,650,876

〜 94 〜

INVENTEC CORPORATION

Statement of Selling Expenses

For the year ended December 31, 2020

(In Thousands of New Taiwan Dollars)

Item	Decription	Amount Note $ 486,323 390,190 474,956 104,666 304,370 $ 1,760,505
Salary and wages expense Amortization expense Freight Miscellaneous expense Other expense

Statement of Administrative Expenses

Item	Description	Amount Note $ 941,120 255,266 140,401 118,094 103,152 337,823 $ 1,895,856
Salary and wages expense Miscellaneous expense Depreciation expense Repair expense Professional service fees Other expense

〜 95 〜

INVENTEC CORPORATION

Statement of Research and Development Expenses

December 31, 2020

(In Thousands of New Taiwan Dollars)

Item	Description	Amount Note $ 3,649,479 661,063 315,530 1,199,935 $ 5,826,007
Salary and wages expense Supplies Examination expense Other expense

〜 96 〜

AI assistant

INVENTEC — Audit Report / Information 2020

52026_rns_2020-11-26_0948796a-5808-40b5-972b-d44d77099669.pdf

INVENTEC CORPORATION

PARENT COMPANY ONLY FINANCIAL STATEMENTS

Table of contents

KPMG

Independent Auditors’ Report

Opinion

Basis for Opinion

Key Audit Matters

1. Inventory Valuation

Description of the key audit matter:

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

Auditor’s Responsibilities for the Audit of the Financial Statements

Notes to Readers

(English Translation of Parent Company Only Financial Statements Originally Issued in Chinese) INVENTEC CORPORATION

BALANCE SHEETS

December 31, 2020 and 2019

(English Translation of Parent Company Only Financial Statements and Report Originally Issued in Chinese) INVENTEC CORPORATION

STATEMENTS OF COMPREHENSIVE INCOME

For the Years Ended December 31, 2020 and 2019

(Expressed in Thousands of New Taiwan Dollars)

(English Translation of Parent Company Only Financial Statements and Report Originally Issued in Chinese) INVENTEC CORPORATION

STATEMENTS OF CHANGES IN EQUITY

For the Years Ended December 31, 2020 and 2019

(English Translation of Parent Company Only Financial Statements and Report Originally Issued in Chinese) INVENTEC CORPORATION

STATEMENTS OF CASH FLOWS

For the Years Ended December 31, 2020 and 2019

(Expressed in Thousands of New Taiwan Dollars)

STATEMENTS OF CASH FLOWS (CONT'D)

For the Years Ended December 31, 2020 and 2019

NOTES TO THE PARENT COMPANY ONLY FINANCIAL STATEMENTS

For the years ended December 31, 2020 and 2019

(1) Overview

(2) Financial Statements Authorization Date and Authorization Process

(3) New Standards, Amendments and Interpretations not yet Adopted:

NOTES TO THE PARENT COMPANY ONLY FINANCIAL STATEMENTS (CONT'D)

For the years ended December 31, 2020 and 2019

(4) Significant Accounting Policies

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

NOTES TO THE PARENT COMPANY ONLY FINANCIAL STATEMENTS (CONT'D) For the years ended December 31, 2020 and 2019

2.Foreign operations

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

NOTES TO THE PARENT COMPANY ONLY FINANCIAL STATEMENTS (CONT'D)

For the years ended December 31, 2020 and 2019

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

NOTES TO THE PARENT COMPANY ONLY FINANCIAL STATEMENTS (CONT'D)

For the years ended December 31, 2020 and 2019

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

NOTES TO THE PARENT COMPANY ONLY FINANCIAL STATEMENTS (CONT'D)

For the years ended December 31, 2020 and 2019

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

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

NOTES TO THE PARENT COMPANY ONLY FINANCIAL STATEMENTS (CONT'D) For the years ended December 31, 2020 and 2019

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

NOTES TO THE PARENT COMPANY ONLY FINANCIAL STATEMENTS (CONT'D)

For the years ended December 31, 2020 and 2019

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

2) Derecognition of financial liabilities

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

NOTES TO THE PARENT COMPANY ONLY FINANCIAL STATEMENTS (CONT'D) For the years ended December 31, 2020 and 2019

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

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

NOTES TO THE PARENT COMPANY ONLY FINANCIAL STATEMENTS (CONT'D) For the years ended December 31, 2020 and 2019

(j) Joint Arrangements

NOTES TO THE PARENT COMPANY ONLY FINANCIAL STATEMENTS (CONT'D) For the years ended December 31, 2020 and 2019

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

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

NOTES TO THE PARENT COMPANY ONLY FINANCIAL STATEMENTS (CONT'D) For the years ended December 31, 2020 and 2019

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

NOTES TO THE PARENT COMPANY ONLY FINANCIAL STATEMENTS (CONT'D)

For the years ended December 31, 2020 and 2019

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

(m) Intangible assets

NOTES TO THE PARENT COMPANY ONLY FINANCIAL STATEMENTS (CONT'D)

For the years ended December 31, 2020 and 2019

3.Amortization

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

NOTES TO THE PARENT COMPANY ONLY FINANCIAL STATEMENTS (CONT'D) For the years ended December 31, 2020 and 2019

INVENTEC Audit Report / Information 2020