INVENTEC - Audit Report / Information 2021

Stock Code:2356

INVENTEC CORPORATION

PARENT COMPANY ONLY FINANCIAL STATEMENTS

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

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

The independent auditors’ report and the accompanying 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)Company History (2)Financial Statements Authorization Date and Authorization Process (3)New Standards, Amendments and Interpretations Adopted (4)Significant Accounting Policies (5)Significant Accounting Assumptions and Judgements, and Major Sources of Estimation Uncertainty (6)Explanation to Significant Accounts (7)Related Parties Transactions (8)Pledged Assets (9)Significant Commitments and Contingencies (10)Losses Due to Major Disasters (11)Subsequent Events (12)Other (13)Other disclosures (a) Information on significant transactions (b) Information on investment (c) Information on investment in Mainland China (d) Major shareholders (14)Segment Information 9. List of major account titles	Page
	1 2 3 4 5 6 7 8 8 8～9 9～23 24 24～60 60～65 65 65 65 65 66～67 67～76 76～78 78～80 80 80 81～97

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)Company History
(2)Financial Statements Authorization Date and Authorization Process
(3)New Standards, Amendments and Interpretations Adopted
(4)Significant Accounting Policies
(5)Significant Accounting Assumptions and Judgements, and Major Sources
of Estimation Uncertainty
(6)Explanation to Significant Accounts
(7)Related Parties Transactions
(8)Pledged Assets
(9)Significant Commitments and Contingencies
(10)Losses Due to Major Disasters
(11)Subsequent Events
(12)Other
(13)Other disclosures
(a) Information on significant transactions
(b) Information on investment
(c) Information on investment in Mainland China
(d) Major shareholders
(14)Segment Information
9. List of major account titles

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〜 2 〜

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KPMG

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

Independent Auditors’ Report

To the Board of Directors of Inventec Corporation:

Opinion

We have audited the financial statements of Inventec Corporation(“the Company”), which comprise the balance sheet as of December 31, 2021 and 2020, 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, 2021 and 2020, and its financial performance and its cash flows for the years then ended December 31, 2021 and 2020 in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers.

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 RouLan Kuo.

KPMG

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

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, 2021 and 2020

(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 (Notes (4) and (6)(e)) 1470 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 (Notes (4) and (6)(f)) 1600 Property, plant and equipment (Notes (4) and (6)(h)) 1755 Right-of-use assets (Notes (4) and (6)(i)) 1780 Intangible assets (Notes (4) and (6)(j)) 1900 Other non-current assets (Notes (4), (6)(k), (6)(p), (7) and (8)) TOTAL ASSETS	December 31, 2021 Amount % $ 12,188,253 5 209,799 - 1,521,476 1 68,410,419 28 35,489,138 14 58,209,619 24 11,354,230 5 723,996 - 188,106,930 77 788,955 - 2,151,728 1 37,875,505 16 13,081,621 5 8,352 - 155,539 - 1,581,217 1 55,642,917 23 $ 243,749,847 100	December 31, 2020 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 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 shares (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 (Note (6)(q)) Total Equity TOTAL LIABILITIES AND EQUITY	December 31, 2021 Amount % $ 32,678,217 13 112,133 - 6,692,362 3 48,062,057 20 68,966,168 28 1,144,254 - 5,495,327 2 5,069 - 7,217,500 3 8,580,885 4 178,953,972 73 2,450,000 1 3,423 - 589,919 - 4,667,829 2 7,711,171 3 186,665,143 76 35,874,751 15 2,899,592 1 12,093,033 5 1,901,925 1 7,030,001 3 (2,714,598) (1) 57,084,704 24 $ 243,749,847 100	December 31, 2020 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

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, 2021 and 2020

(Expressed in Thousands of New Taiwan Dollars)

For they	ear ende	d December 31,
2021	% 100 97 3 - - 3 1 - 1 - 2 1 - - - - 1 1 2 - 2 - - - - - - - - - - 2 1.82 1.81	2020 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
Amount $ 440,973,660 427,814,434 13,159,226 17,394 11,807 13,153,639 2,062,040 1,815,954 6,430,989 74,291 10,383,274 2,770,365 10,466 154,191 100,515 (423,852) 5,088,208 4,929,528 7,699,893 1,162,128 6,537,765 16,050 15,162 (259,598) 3,210 (231,596) (52,317) (517,286) - (569,603) (801,199) $ 5,736,566 $ $			% 100 97
			3 - -
			3
			- 1 1 -
			2
			1
			- - - - 2
			2
			3 1
			2
			- - - -
			-
			- - -
			-
			-
			2
			2.10
			2.08

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, 2021 and 2020

(Expressed in Thousands of New Taiwan Dollars)

	Retained Earnings		Other Equity Exchange Differences on Translation Unrealized gains (losses) from financial assets measured at fair value of Foreign Financial Statements through other comprehensive income (2,005,134) 183,129 - - (462,231) 348,853 (462,231) 348,853 - - - - - - - - - 19,258 - - - 14,200 (2,467,365) 565,440 - - (569,603) (244,443) (569,603) (244,443) - - - - - - - - - 1,373 (3,036,968) 322,370	Total Equity
			Exchange Differences on Translation of Foreign Financial Statements (2,005,134) - (462,231) (462,231) - - - - - - - (2,467,365) - (569,603) (569,603) - - - - - (3,036,968)
Legal Reserve 10,799,605 - - - 546,296 - - - - - - 11,345,901 - - - 747,132 - - - - 12,093,033	Special reserve 1,646,357 - - - - 175,647 - - - - - 1,822,004 - - - - 79,921 - - - 1,901,925	Unappropriated Retained Earnings
		5,858,979 7,547,985 (43,201) 7,504,784 (546,296) (175,647) (4,663,718) - (19,258) - (14,200) 7,944,644 6,537,765 12,847 6,550,612 (747,132) (79,921) (6,636,829) - (1,373) 7,030,001		55,271,148 7,547,985 (156,579)
				7,391,406
				- - (4,663,718) 679 - (14,856) -
				57,984,659 6,537,765 (801,199)
				5,736,566
				- - (6,636,829) 308 -
				57,084,704

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, 2021 and 2020

(Expressed in Thousands of New Taiwan Dollars)

Cash flows from operating activities: Profit before tax Adjustments: Adjustments to reconcile profit 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 other assets Gain on disposal of investments accounted for using equity method Unrealized foreign exchange (gain) loss Total adjustments to reconcile profit Changes in operating assets and liabilities: Changes in operating assets: Decrease (increase) in financial assets at fair value through profit or loss, mandatorily measured at fair value Increase in accounts receivable Increase in other receivable (Increase) decrease in inventories Decrease (increase) in other current assets Total changes in operating assets Changes in operating liabilities: (Decrease) increase in financial liabilities held for trading Increase in contract liabilities Increase in accounts payable (Decrease) increase in other payables Increase 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 inflow (outflow) generated from operations Interest received Dividends received Interest paid Income taxes paid Net cash flows from (used in) operating activities	For the years ended December 31, 2021 2020 $ 7,699,893 9,593,556 634,481 561,757 650,761 578,179 74,291 44,784 423,852 712,190 (10,466) (26,738) (123,577) (30,069) (5,088,208) (8,184,317) (7,017) (52) (339) - 25,025 (20,602) (144,632) 647,091 (3,565,829) (5,717,777) 122,521 (277,459) (17,387,183) (13,264,562) (3,590,528) (7,651,920) (8,966,285) 1,490,976 2,148,982 (2,486,104) (27,672,493) (22,189,069) (69,935) 73,893 455,983 681,559 27,351,060 13,020,360 (171,999) 372,754 724,686 2,903,673 (50,202) (47,360) 28,239,593 17,004,879 567,100 (5,184,190) (2,998,729) (10,901,967) 4,701,164 (1,308,411) 10,899 27,158 790,087 1,367,069 (403,837) (702,702) (148,181) (94,652) 4,950,132 (711,538)
	2021 $ 7,699,893 634,481 650,761 74,291 423,852 (10,466) (123,577) (5,088,208) (7,017) (339) 25,025 (144,632) (3,565,829) 122,521 (17,387,183) (3,590,528) (8,966,285) 2,148,982 (27,672,493) (69,935) 455,983 27,351,060 (171,999) 724,686 (50,202) 28,239,593 567,100 (2,998,729) 4,701,164 10,899 790,087 (403,837) (148,181) 4,950,132

Cash flows from operating activities:
Profit before tax
Adjustments:
Adjustments to reconcile profit
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 other assets
Gain on disposal of investments accounted for using equity method
Unrealized foreign exchange (gain) loss
Total adjustments to reconcile profit
Changes in operating assets and liabilities:
Changes in operating assets:
Decrease (increase) in financial assets at fair value through profit or loss, mandatorily
measured at fair value
Increase in accounts receivable
Increase in other receivable
(Increase) decrease in inventories
Decrease (increase) in other current assets
Total changes in operating assets
Changes in operating liabilities:
(Decrease) increase in financial liabilities held for trading
Increase in contract liabilities
Increase in accounts payable
(Decrease) increase in other payables
Increase 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 inflow (outflow) generated from operations
Interest received
Dividends received
Interest paid
Income taxes paid
Net cash flows from (used in) operating activities

For the years ended December 31,
2021
2020
$ 7,699,893
9,593,556
634,481
561,757
650,761
578,179
74,291
44,784
423,852
712,190
(10,466)
(26,738)
(123,577)
(30,069)
(5,088,208)
(8,184,317)
(7,017)
(52)
(339)
-
25,025
(20,602)
(144,632)
647,091
(3,565,829)
(5,717,777)
122,521
(277,459)
(17,387,183)
(13,264,562)
(3,590,528)
(7,651,920)
(8,966,285)
1,490,976
2,148,982
(2,486,104)
(27,672,493)
(22,189,069)
(69,935)
73,893
455,983
681,559
27,351,060
13,020,360
(171,999)
372,754
724,686
2,903,673
(50,202)
(47,360)
28,239,593
17,004,879
567,100
(5,184,190)
(2,998,729)
(10,901,967)
4,701,164
(1,308,411)
10,899
27,158
790,087
1,367,069
(403,837)
(702,702)
(148,181)
(94,652)
4,950,132
(711,538)

2021
$ 7,699,893
634,481
650,761
74,291
423,852
(10,466)
(123,577)
(5,088,208)
(7,017)
(339)
25,025
(144,632)
(3,565,829)
122,521
(17,387,183)
(3,590,528)
(8,966,285)
2,148,982
(27,672,493)
(69,935)
455,983
27,351,060
(171,999)
724,686
(50,202)
28,239,593
567,100
(2,998,729)
4,701,164
10,899
790,087
(403,837)
(148,181)
4,950,132

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, 2021 and 2020

(Expressed in Thousands of New Taiwan Dollars)

Cash flows used in investing activities:
Acquisition 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
Acquisition of property, plant and equipment
Proceeds from disposal of property, plant and equipment
Acquisition of intangible assets
Proceeds from disposal of intangible assets
Increase in other non-current assets
Net cash flows used in investing activities
Cash flows from financing activities:
Increase in short-term borrowings
Proceeds from long-term borrowings
Repayments of long-term borrowings
Increase (decrease) in other non-current liabilities
Cash dividends paid
Payment of lease liabilities
Net cash flows from 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, 2021 and 2020

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

(1) Company History

Inventec Corporation (the “Company”) was organized in 1975. The Company engages primarily in the 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 15, 2022.

(3) New Standards, Amendments and Interpretations Adopted:

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

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

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

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

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

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

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

〜 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, 2021 and 2020

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

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 1 “Disclosure of Accounting Policies”
●Amendments to IAS 8 “Definition of Accounting Estimates”
●Amendments to IAS 12 “Deferred Tax related to Assets and Liabilities arising from a Single Transaction”

(4) 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).

〜 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, 2021 and 2020

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

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.

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.

〜 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, 2021 and 2020

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

(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
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.

〜 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, 2021 and 2020

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

On initial recognition, a financial asset is classified as measured at: amortized cost; 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
‧ its contractual terms give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

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

2) Fair value through other comprehensive income (FVOCI)

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

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.

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, 2021 and 2020

(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, notes and trade receivables, other receivable, guarantee deposit paid and other financial 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 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 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:

‧significant financial difficulty of the borrower or issuer;

‧a breach of contract such as a default or being more than 1 year past due;

〜 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, 2021 and 2020

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

‧ 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.

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) Classification of debt or equity

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

2) Equity instrument

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

3) Financial liabilities

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

〜 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, 2021 and 2020

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

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

4) Derecognition of financial liabilities

The 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.

5) Offsetting of financial assets and liabilities

Financial assets and financial liabilities are offset and the net amount presented in the statement of balance sheet when, and only when, the 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, 2021 and 2020

(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, 2021 and 2020

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

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

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

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

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

2.Subsequent expenditure

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

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

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

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

(k) Leases

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.

〜 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, 2021 and 2020

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

(i) 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
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.

〜 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, 2021 and 2020

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

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

The 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.

(ii) 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.

(l) 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.

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.

〜 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, 2021 and 2020

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

3.Amortization

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

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

Computer software cost 1year~ 6 years

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

(m) Impairment of non-financial assets

At each reporting date, the Company reviews the carrying amounts of its non-financial assets (other than inventories 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.

(n) 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.

〜 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, 2021 and 2020

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

(o) 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.

(p) 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.

〜 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, 2021 and 2020

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

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.

(q) 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.

〜 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, 2021 and 2020

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

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.
(r) 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.

(s) Operating segments

Please refer to the consolidated financial report of Inventec Corporation for the years ended December 31, 2021 and 2020 for operating segments information.

〜 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, 2021 and 2020

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

(5) Significant Accounting Assumptions and Judgements, and Major 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.

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	December 31, 2021 $ 1,001 11,451,699 735,553 $ 12,188,253	December 31, 2020
		1,072 4,536,510 728,540
		5,266,122

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

〜 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, 2021 and 2020

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

(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 Financial liabilities at fair value through profit or loss Held-for-trading financial liabilities Forward exchange contracts Foreign exchange swap Total	December 31, 2021 $ 28,391 163,696 114,198 674,757 17,712 $ 998,754 $ 109,891 2,242 $ 112,133	December 31, 2020
		13,606 237,568 232,340 589,096 16,415
		1,089,025
		142,530 39,538
		182,068

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, 2021 and 2020:

1) Financial assets:

Foreign exchange swap Forward Foreign exchange swap Forward		December 31, 2021
	Contract Amount (in thousands) USD 814,000 USD 235,000	Currency Maturity Period USD to TWD 2022.01.13-2022.06.17 USD to TWD 2022.02.09-2022.03.29 December 31, 2020
	Contract Amount (in thousands) USD 715,000 USD 214,000	Currency Maturity Period USD to TWD 2021.01.07-2021.06.11 USD to TWD 2021.01.06-2021.06.09

〜 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, 2021 and 2020

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

2) Financial liabilities:

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

2.Financial assets at fair value through other comprehensive income

Equity investments at fair value through other comprehensive income Stocks of listed companies Stocks of unlisted companies Total	December 31, 2021 $ 1,538,951 2,134,253 $ 3,673,204	December 31, 2020
		1,496,291 2,124,983
		3,621,274

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.

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

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.

2) For credit risk and market risk, please refer to note 6(v).
3) As of December 31, 2021 and 2020, the aforesaid financial assets were not pledged as collateral.

〜 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, 2021 and 2020

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

Accounts receivable due from related parties Accounts receivables due from non-related parties Less: Loss allowance	December 31, 2021 $ 35,489,138 68,477,452 (67,033) $ 103,899,557	December 31, 2020 27,718,823 59,201,602 (34,867) 86,885,558

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:

December 31, 2021	December 31, 2021
Gross carrying amount $ 97,230,320 6,710,729 25,541 $ 103,966,590	Weighted- average loss rate 0.00%~0.50% 0.04%~0.50% 0.04%~100%	Loss allowance provision
		41,237 255 25,541
		67,033

As of February 28, 2022, the amount received in subsequent period by the Company is $62,206,067.

December 31, 2020	December 31, 2020
Gross carrying amount $ 79,817,018 7,102,984 423 $ 86,920,425	Weighted- average loss rate 0.00%~0.50% 0.04%~0.50% 0.04%~100%	Loss allowance provision
		33,572 872 423
		34,867

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

Balance at January 1 Impairment losses recognized Amounts written off Balance at December 31	For the years ended December 31, 2021 2020 $ 34,867 28,286 32,590 7,567 (424) (986) $ 67,033 34,867
	2021 $ 34,867 32,590 (424) $ 67,033

〜 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, 2021 and 2020

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

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

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

		December 31, 2021	December 31, 2021
Purchaser	Amount Derecognized Credit Unused Credit Advanced $ 24,852,588 USD 1,822 USD 898,178		Amount Recognized in Other Receivables -	Range of Interest Rate Significant Transferring Terms 0.86%~0.98% The accounts receivable factoring is without recourse but the seller still bears the risks except for eligible obligor’s insolvency.
Non-related parties

		December 31, 2020	December 31, 2020
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

(d) Other receivables Other receivables－related parties Other receivables－non-related parties Less: Loss allowance	December 31, 2021 $ 58,071,654 214,308 (76,343) $ 58,209,619	December 31, 2020
		54,723,480 237,797 (34,642)
		54,926,635

〜 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, 2021 and 2020

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

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

Balance at January 1 Impairment losses recognized Amounts written off Balance at December 31	For the years ended December 31, 2021 2020 $ 34,642 - 41,701 37,217 - (2,575) $ 76,343 34,642
	2021 $ 34,642 41,701 - $ 76,343

(e) Inventories

Raw materials and consumables Work in process Finished goods	December 31, 2021 $ 7,637,842 1,472,908 2,243,480 $ 11,354,230	December 31, 2020
		1,182,506 675,657 529,782
		2,387,945

For the years ended December 31, 2021 and 2020, the write-up of inventories amounted to $88,326 and $11,198, 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, 2021 and 2020, expenses of idle capacity amounted to $24,528 and $26,306, respectively.

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

(f) Investments accounted for using equity method

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

Subsidiaries Associates	December 31, 2021 $ 37,623,774 251,731 $ 37,875,505	December 31, 2020
		33,565,625 210,311
		33,775,936

The credit balance of investments accounted for using equity method at the reporting date (recognized as other non-current liabilities) were as follows:

Subsidiaries	December 31, 2021 $ 633,253	December 31, 2020
		296,204

1.Subsidiaries

Please refer to the consolidated financial statements for the year ended December 31, 2021.

〜 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, 2021 and 2020

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

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.

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	December 31, 2021 December 31, 2020 $ 251,731 210,311 For the years ended December 31, 2021 2020 $ 41,015 (17,891) 405 (17,285) $ 41,420 (35,176)
	2021 $ 41,015 405 $ 41,420

As of December 31, 2021 and 2020, 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, 2021.
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 seven 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 of control over subsidiaries

The meeting of shareholders of Inventec Manufacturing (India) Private Limited decided to dismiss their respective companies in July 7, 2021. 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	$	8,309
Account receivables		4,984
Other payables		(196)
Carrying amount of net asset of the former subsidiary	$	13,097

〜 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, 2021 and 2020

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

The meeting of shareholders of E-Ton Solar Tech. Co., Ltd. ("E-ton") decided to dismiss their respective companies in 2020. It is currently in liquidation process. As a result, The 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, 2021 and 2020 were as follows:

Land	Building and construction	Machinery and equipment	Transportation equipment	Office equipment	Other facilities	Others	Total
$ 7,641,024 - - -	5,134,289 - - -	1,136,857 16,713 (89,111) 24,761	25,798 - (2,122) -	2,255,496 112,088 (149,320) 11,752	1,255,292 52,970 (1,391) 75,987	114,501 11,719 - (114,501)	17,563,257 193,490 (241,944) (2,001)
$ 7,641,024	5,134,289	1,089,220	23,676	2,230,016	1,382,858	11,719	17,512,802
$ 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	349,747 112,984 - (348,230)	16,831,924 962,124 (221,666) (9,125)
$ 7,641,024	5,134,289	1,136,857	25,798	2,255,496	1,255,292	114,501	17,563,257
$ - - -	952,627 119,987 -	371,440 195,108 (84,503)	18,717 3,264 (2,122)	1,969,601 158,116 (137,037)	715,243 152,131 (1,391)	- - -	4,027,628 628,606 (225,053)
$ -	1,072,614	482,045	19,859	1,990,680	865,983	-	4,431,181

〜 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, 2021 and 2020

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

Land	Building and construction	Machinery and equipment	Transportation equipment	Office equipment	Other facilities	Total
$ - - -	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
$ 7,641,024	4,061,675	607,175	3,817	239,336	516,875	13,081,621
$ 7,641,024	4,181,662	765,417	7,081	285,895	540,049	13,535,629
$ 7,641,024	4,301,649	335,308	10,234	187,181	400,140	13,225,283

As of December 31, 2021 and 2020, 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: Balance at January 1, 2021 Additions Disposals Balance as of December 31, 2021 Balance at January 1, 2020 Additions Balance at December 31, 2020 Accumulated depreciation and impairment losses: Balance at January 1, 2021 Depreciation for the period Balance at December 31, 2021 Balance at January 1, 2020 Depreciation for the period Balance at December 31, 2020	Land $ 6,348 160 - $ 6,508 $ 6,348 - $ 6,348 $ 2,540 1,301 - $ 3,841 $ 1,270 1,270 $ 2,540	Vehicles 12,919 5,010 (4,331) 13,598 10,973 1,946 12,919 7,670 4,574 (4,331) 7,913 3,015 4,655 7,670	Total 19,267 5,170 (4,331) 20,106 17,321 1,946 19,267 10,210 5,875 (4,331) 11,754 4,285 5,925 10,210

〜 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, 2021 and 2020

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

Carrying amounts: Balance at December 31, 2021 Balance at December 31, 2020 Balance at January 1, 2020	Land $ 2,667 $ 3,808 $ 5,078	Vehicles 5,685 5,249 7,958	Total
			8,352
			9,057
			13,036

(j) Intangible assets

The costs of intangible assets and amortization of the Company for the years ended December 31, 2021 and 2020 were as follows:

Cost:
Balance at January 1, 2021
Additions
Disposals
Balance at December 31, 2021
Balance at January 1, 2020
Additions
Disposals
Balance at December 31, 2020
Amortization and impairment losses:
Balance at January 1, 2021
Amortization for the period
Disposals
Balance at December 31, 2021
Balance at January 1, 2020
Amortization for the period
Disposals
Balance at December 31, 2020
Carrying amounts:
Balance at December 31, 2021
Balance at December 31, 2020
Balance at January 1, 2020

Software cost
$ 1,154,751
247,305
(111,643)
$
1,290,413
$ 1,106,016
117,321
(68,586)
$
1,154,751
$ 1,088,489
158,028
(111,643)
$
1,134,874
$ 1,034,806
122,269
(68,586)
$
1,088,489
$
155,539
$
66,262
$
71,210

〜 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, 2021 and 2020

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

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

income:
Operating costs Operating expenses Total	For the years ended December 31,
	2021 $ 6,451 151,577 $ 158,028	2020
		7,408 114,861
		122,269

As of December 31, 2021 and 2020, 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 Payments on behalf of others Others	December 31, 2021 $ 32,403 145,190 117,832 1,128,332 456,626 424,830 $ 2,305,213	December 31, 2020
		28,930 260,999 132,954 1,172,586 2,511,971 571,766
		4,679,206

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 on behalf of others.

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

〜 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, 2021 and 2020

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

(l) Long-term and short-term borrowings

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

	December 31, 2021	December 31, 2021	December 31, 2021
Interest Rate	Currency
0.41%~1.03% 1.19%

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	Amount
0.48%~1.01% 1.19%	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, 2021 and 2020, the Company was in compliance with the above financial covenants.

〜 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, 2021 and 2020

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

(m) Lease liabilities

The carrying amounts of the Company’s lease liabilities were as follows:

Current Non-current	December 31, 2021 $ 5,069 $ 3,423	December 31, 2020
		4,152
		5,024

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,
	2021 $ 128 $ 1,586 $ 195	2020
		123
		1,666
		208

The amounts recognized in the statements 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,
	2020 $ 7,763	2020
		7,807

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. 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.

2. 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.

〜 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, 2021 and 2020

(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 Total undiscounted lease receivables	December 31, 2021 $ 16,697 2,286 415 $ 19,398	December 31, 2020
		20,116 11,040 862
		32,018

The rental revenues incurred by leasing land, offices and plants were $30,614 and $32,427 for the years ended December 31, 2021 and 2020, 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	December 31, 2021 $ 1,356,731 (766,812) $ 589,919	December 31, 2020 1,400,254 (744,083) 656,171

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 $766,812 at the end of December 31, 2021. For information on the utilization of the labor pension fund assets including the assets allocation and yield of the fund, please refer to the website of the Bureau of Labor Funds, Ministry of Labor.

〜 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, 2021 and 2020

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

2) Movements in present value of the defined benefit obligations

The movements in present value of defined benefit obligations for the Company for the years ended December 31, 2021 and 2020 were as follows:

Defined benefit obligation at January 1 Current service costs and interest Remeasurement on the net defined benefit liability －Actuarial loss (gain) arising from changes in demography assumption －Experience adjustments arising on the actuarial gain or loss －Actuarial loss (gain) arising from changes in financial assumptions Benefits paid by the plan assets Defined benefit obligation at December 31	For the years ended December 31, 2021 2020 $ 1,400,254 1,336,939 17,370 20,948 34,468 - (24,591) 50,016 (16,580) 35,562 (54,190) (43,211) $ 1,356,731 1,400,254
	2021 $ 1,400,254 17,370 34,468 (24,591) (16,580) (54,190) $ 1,356,731

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

For the years ended December 31,
2021
2020
$ 1,400,254
1,336,939
17,370
20,948
34,468
-
(24,591)
50,016
(16,580)
35,562
(54,190)
(43,211)
$
1,356,731
1,400,254

2021
$ 1,400,254
17,370
34,468
(24,591)
(16,580)
(54,190)
$
1,356,731

3) Movements of defined benefit plan assets

The movements in the present value of the defined benefit plan assets for the Company for the years ended December 31, 2021 and 2020 were as follows:

Fair value of plan assets at January 1 Interest income Remeasurement on the net defined benefit liability －Return on plan assets (excluding current interest) Contributions made Benefits paid by the plan assets Fair value of plan assets at December 31	For the years ended December 31, 2021 2020 $ 744,083 696,538 3,864 5,460 9,348 22,448 63,707 62,848 (54,190) (43,211) $ 766,812 744,083
	2021 $ 744,083 3,864 9,348 63,707 (54,190) $ 766,812

4) Expenses recognized in profit or loss

The expenses recognized in profit or loss for the Company for the years ended December 31, 2021 and 2020 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,
	2021 $ 10,385 3,121 $ 13,506	2020
		10,921 4,567
		15,488

〜 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, 2021 and 2020

(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,
	2021 $ 1,396 1,606 3,146 7,358 $ 13,506	2020
		1,712 1,711 3,605 8,460
		15,488

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,
	2021 2020 0.625% 0.500% 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 $64,767.

The weighted-average duration of the defined benefit obligation is 10.2 years.

6) Sensitivity analysis

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

December 31, 2021 Discount rate December 31, 2020 Discount rate	Influences of defined benefit obligations
	Increased 0.25% Decreased 0.25% $ (32,994) 34,211 (35,562) 36,934

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

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

〜 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, 2021 and 2020

(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 $224,616 and $213,407 for the years ended December 31, 2021 and 2020, respectively. Except for the accounts payable of $57,751 and $57,639 respectively, the Company have been contributed to the Bureau of Labor Insurance.

(p) Income taxes

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

Current tax expense Current period Other Deferred tax expense Origination and reversal of temporary differences Income tax expense from continuing operations	For the years ended December 31, 2021 2020 $ 356,765 423,773 (360,095) (79,484) (3,330) 344,289 1,165,458 1,701,282 $ 1,162,128 2,045,571
	2021 $ 356,765 (360,095) (3,330) 1,165,458 $ 1,162,128

The details of income tax recognized in other comprehensive income for the years ended December 31, 2021 and 2020 were as follows:

December 31, 2021 and 2020 were as follows:
Items that will not be reclassified subsequently to profit or loss: Remeasurement from defined benefit plans	For the years ended December 31,
	2021 $ (3,210)	2020
		12,626

〜 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, 2021 and 2020

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

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

Profit before tax Income tax using the statutory tax rate Permanent differences Tax incentives Changes in unrecognized temporary differences Under provision of temporary differences Other Undistributed earnings additional tax Income tax expense	For the years ended December 31,	For the years ended December 31,
	2021 $ 7,699,893 1,539,979 37,985 (152,900) 97,159 - (360,095) - $ 1,162,128	2020
		9,593,556
		1,918,711 (97,100) (86,797) 178,946 207,430 (79,484) 3,865
		2,045,571

Other is mainly overestimate in prior periods, which is the 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	December 31, 2021 $ 1,026,088	December 31, 2020
		928,929

2) Recognized deferred tax assets and liabilities

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

Deferred Tax Liabilities: Balance at January 1, 2021 Recognized in profit or loss Balance at December 31, 2021 Balance at January 1, 2020 Recognized in profit or loss Balance at December 31, 2020	Gain (loss) on investment $ 2,865,814 1,057,962 $ 3,923,776 $ 1,239,155 1,626,659 $ 2,865,814	Other - 66,452 66,452 - - -	Total
			2,865,814 1,124,414
			3,990,228
			1,239,155 1,626,659
			2,865,814

〜 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, 2021 and 2020

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

Deferred Tax Assets: Balance at January 1, 2021 Recognized in profit or loss Recognized in other comprehensive income Balance at December 31, 2021 Balance at January 1, 2020 Recognized in profit or loss Recognized in other comprehensive income Balance at December 31, 2020	Deferred Income $ 808,117 51,709 - $ 859,826 $ 770,799 37,318 - $ 808,117	Defined Benefit Plans 74,890 (10,040) (3,210) 61,640 71,736 (9,472) 12,626 74,890	Others 289,579 (82,713) - 206,866 392,048 (102,469) - 289,579	Total 1,172,586 (41,044) (3,210) 1,128,332 1,234,583 (74,623) 12,626 1,172,586

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

(q) Capital and other equity

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

1.Capital surplus

The components of the capital surplus were as follows:

December 31, 2021 Share capital $ 2,891,959 Other 7,633 $ 2,899,592	December 31, 2020
	2,891,959 7,325
	2,899,284

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

〜 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, 2021 and 2020

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

2.Retained earnings

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

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

3) Earnings Distribution

On March 30, 2021, and March 24, 2020, the shareholder's meetings resolved to distribute the 2020 and 2019 earnings. These earnings were appropriated for distribution as follows:

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

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

〜 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, 2021 and 2020

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

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

earnings respectively, as follows:
		2021
	Dividend per
	share ($)	Amount
Dividends distributed to ordinary shareholders
Cash	$	1.40	5,022,465
Other equity (net of taxes)
			Unrealized gains
			(losses) from
			financial assets
	Exchange differences		measured at fair
		on translation of	value through other
		foreign financial	comprehensive
		statements	income
Balance at January 1, 2021	$	(2,467,365)		565,440
Exchange differences on foreign operations		(52,317)		-
Exchange differences on associates accounted for using equity method		(517,286)		-
Unrealized gains (losses) from financial assets measured at fair value through other comprehensive income		-		15,162
Unrealized gains (losses) from financial assets measured at fair value through other comprehensive
income, associates and joint ventures accounted for using equity method		-		(259,605)
Disposal of investments in equity instruments designed at fair value through other comprehensive income		-		1,373
Balance at December 31, 2021	$	(3,036,968)		322,370
Balance at January 1, 2020	$	(2,005,134)		183,129
Exchange differences on foreign operations		(65,492)		-
Exchange differences on associates accounted for using equity method		(396,739)		-
Unrealized gains (losses) from financial assets measured at fair value through other comprehensive income		-		352,106
Unrealized gains (losses) from financial assets measured at fair value through other comprehensive
income, associates and joint ventures accounted for using equity method		-		(3,253)
Disposal of investments in equity instruments designed at fair value through other comprehensive income		-		19,258
Balance at December 31, 2020	$	(2,467,365)		551,240

3.Other equity (net of taxes)

(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,
	2021 $ 6,537,765 3,587,475 $ 1.82	2020
		7,547,985
		3,587,475
		2.10

〜 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, 2021 and 2020

(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) Effect of employee share bonus 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 products Services 2.Contract balances December 31, 2021 Contract liabilities $ 6,692,362	For the years ended December 31,	For the years ended December 31,
	2021 2020 $ 6,537,765 7,547,985 3,587,475 3,587,475 28,459 32,907 3,615,934 3,620,382 $ 1.81 2.08 For the years ended December 31,	2020
		7,547,985
		3,587,475 32,907
		3,620,382
		2.08
	2021 $ 50,879,384 337,629,814 3,652,353 10,863,796 37,948,313 $ 440,973,660 $ 440,588,654 385,006 $ 440,973,660 December 31, 2020 6,236,379	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
		January 1, 2020
$ 6,692,362		5,554,820

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

〜 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, 2021 and 2020

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

The amount of revenue recognized for the year ended December 31, 2021 and 2020 were $2,252,515 and $1,683,970, 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) Remunerations of employees and directors

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

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

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

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

(u) Non-operating income and expenses

1.Interest income

The details of interest income for the years ended December 31, 2021 and 2020, were as follows:

Interest income from bank deposits	For the years ended December 31,	For the years ended December 31,
	2021 $ 10,466	2020
		26,738

2.Other income

The details of other income for the years ended December 31, 2021 and 2020, were as follows:

Rent income Dividend income	For the years ended December 31,	For the years ended December 31,
	2021 $ 30,614 123,577 $ 154,191	2020
		32,427 30,069
		62,496

〜 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, 2021 and 2020

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

3.Other gains and losses

The details of other gains and losses for the years ended December 31, 2021 and 2020, were as follows:

(Losses) gains on disposal of investments Foreign exchange losses Net gains 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, 2021 2020 $ (25,025) 20,602 (814,054) (1,490,122) 883,282 715,969 56,312 526,559 $ 100,515 (226,992)
	2021 $ (25,025) (814,054) 883,282 56,312 $ 100,515

4.Finance costs

The details of finance expenses for the years ended December 31, 2021 and 2020, were as follows:

Interest expenses Bank borrowings Others	For the years ended December 31,	For the years ended December 31,
	2021 $ 295,648 128,204 $ 423,852	2020
		460,522 251,668
		712,190

(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.

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.

〜 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, 2021 and 2020

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

As of December 31, 2021 and 2020, 76% and 68% 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, 2021 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, 2020 Non-derivative financial liabilities Unsecured bank loans Secured bank loans Accounts payable Other payables Lease liabilities Derivative financial liabilities Forward exchange swap contracts not used for hedging : Outflow Inflow Foreign exchange contracts not used for hedging: Outflow Inflow	Carrying amounts $ 39,595,717 2,750,000 117,028,225 5,494,327 8,492 109,891 - 2,242 - $ 164,988,894 $ 29,889,173 3,050,000 90,239,454 5,644,166 9,176 142,530 - 39,538 - $ 129,014,037	Contractual cash flows 39,619,004 2,901,352 117,028,225 5,494,327 8,564 (17,267,921) 17,158,030 (1,242,815) 1,240,573 164,939,339 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	Within 6 months 39,619,004 165,990 117,028,225 5,494,327 2,315 (17,267,921) 17,158,030 (1,242,815) 1,240,573 162,197,728 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	6 to 12 months - 165,098 - - 2,815 - - - - 167,913 29,234 166,883 - - 1,465 - - - - 197,582	1 to 2 years - 327,519 - - 3,434 - - - - 330,953 5,741,352 331,089 - - 3,375 - - - - 6,075,816	2 to 5 years - 961,136 - - - - - - - 961,136 - 971,846 - - 1,680 - - - - 973,526	Over 5 years
							- 1,281,609 - - - - - - -
							1,281,609
							- 1,598,418 - - - - - - -
							1,598,418

〜 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, 2021 and 2020

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

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

3.Currency risks
1) Exposure to currency risks

The Company’ s significant exposure to foreign currency risk from its foreign currency denominated financial assets and liabilities were 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		December 31, 2021
	Foreign currency (In thousand) $ 6,274,720 68,148 5,285,966	Exchange rate TWD USD：TWD 27.67 173,621,502 USD：TWD 27.67 1,885,659 USD：TWD 27.67 146,262,679 December 31, 2020
	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

〜 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, 2021 and 2020

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

2) Sensitivity analysis

The Company’s exposure to foreign currency risks arises from the translation of the foreign currency exchange gains and losses on cash and cash equivalents, accounts receivable, other receivables, loans and borrowings, accounts payable and other payables that are denominated in foreign currency. A 0.5% depreciation or appreciation of the functional currency against all the non-functional currency as of December 31, 2021 and 2020 would have increased or decreased the net profit after tax by $109,435 and $115,155, respectively. The analysis is performed on the same basis for both periods.

3) Gains or losses on foreign exchange

For the years ended December 31, 2021 and 2020, the foreign exchange loss, including realized and unrealized, amounted to $814,054 and $1,490,122, 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 $11,000 and$12,200 for the years ended December 31, 2021 and 2020, respectively, assuming all other variable factors remain constant. This is mainly due to the 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).

〜 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, 2021 and 2020

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

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:

December 31, 2021	December 31, 2021	December 31, 2021
	Fair Value
Level 1 - 114,198 114,198 1,538,106 - 1,538,106 - - - - 1,652,304 - - - - - - -	Level 2 192,087 - 192,087 845 - 845 - - - - 192,932 112,133 - - - - - 112,133	Level 3 - 692,469 692,469 - 2,134,253 2,134,253 - - - - 2,826,722 - - - - - - -	Total
			192,087 806,667
			998,754
			1,538,951 2,134,253
			3,673,204
			- - -
			-
			4,671,958
			112,133
			- - - -
			-
			112,133

〜 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, 2021 and 2020

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

December 31, 2020	December 31, 2020	December 31, 2020
	Fair Value
Level 1 - 232,340 232,340 1,420,469 - 1,420,469 - - - - 1,652,809 - - - - - - -	Level 2 251,174 - 251,174 - 75,822 75,822 - - - - 326,996 182,068 - - - - - 182,068	Level 3 - 605,511 605,511 - 2,124,983 2,124,983 - - - - 2,730,494 - - - - - - -	Total 251,174 837,851
			1,089,025
			1,420,469 2,200,805
			3,621,274
			- - -
			-
			4,710,299
			182,068
			- - - -
			-
			182,068

〜 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, 2021 and 2020

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

2) Valuation techniques and assumptions 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 investees 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, 2021 and 2020.

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

Balance as of January 1, 2021 Total gains and losses recognized in Profit or loss Other comprehensive income Purchase Proceeds from capital reduction Disposals Balance as of December 31, 2021	At fair value through profit or loss $ 605,511 54,708 - 32,250 - - $ 692,469	Fair value through other comprehensive income 2,124,983 - (27,497) 41,845 (4,838) (240) 2,134,253

〜 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, 2021 and 2020

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

Balance as of January 1, 2020 Total gains and losses recognized in Profit or loss Other comprehensive income Purchase Disposals Transfer out of Level 3 Balance as of December 31, 2020	At fair value through profit or loss $ 56,799 (5,770) - 629,462 - (74,980) $ 605,511	Fair value through other comprehensive income 1,945,519 - 193,614 - (14,150) - 2,124,983

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

Total gains and losses recognized in: In profit or loss, and presented in “other gains and losses” In other comprehensive income, and presented in “unrealized gains and losses from financial assets at fair value through other comprehensive income”)	For the years ended December 31, 2021 2020 $ 54,708 (5,770) (27,492) 193,614

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.

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	Valuation Technique 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

〜 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, 2021 and 2020

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

Item 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	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 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, 2021 Financial assets at fair value through profit or loss Financial instruments without an active market Financial assets at fair value through other comprehensive income Equity instruments without an active market December 31, 2020 Financial assets at fair value through other comprehensive income Equity instruments without an active market Financial assets at fair value through other comprehensive income Equity instruments without an active market	Input Discount Rate Market Multiple Market Multiple	Variation	Impact on Fair V Net incom	alue Change on e or loss Unfavorable Change (3,462) - (2,945) -	Impact on Fair Value Change on Other Comprehensive income or loss Favorable Change Unfavorable Change - - 10,704 (10,704) - - 10,625 (10,625)
			Favorable Change $ 3,462 - $ 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, 2021 and 2020

(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.

December 31, 2021	December 31, 2021	December 31, 2021	December 31, 2021	December 31, 2021	December 31, 2021
Financial assets that are offset which have an exercisable master netting arrangement or similar agreement
Gross amounts of recognized financial assets (a) $ 103,916		Gross amounts of financial liabilities offset in the balance sheet (b) -	Net amount of financial assets presented in the balance sheet (c)=(a)-(b) 103,916 December	Amounts not off set in the balance sheet (d) Financial instruments (Note) Cash collateral received - - 31, 2021	Net amount (e)=(c)-(d)
				Financial instruments (Note) - 31, 2021
					103,916

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

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

〜 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, 2021 and 2020

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

		December 31, 2020	December 31, 2020	December 31, 2020
Financial liabilities that are		offset which have an exercisable master netting arrangement or similar agreement
Gross amounts of recognized financial liabilities (a) $ 182,068	Gross amounts of financial assets offset in the balance sheet (b) -	Net amount of financial liabilities presented in the balance sheet (c)=(a)-(b) 182,068	Amounts not off set in the balance sheet (d) Financial instruments (Note) Cash collateral received - -	Net amount (e)=(c)-(d)
			Financial instruments (Note) -
				182,068

Note: Master netting arrangements are included.

(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, 2021 and 2020

(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, 2021, 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, 2021 and 2020, the Company's unused credit line were amounted to $22,325,093 and $32,100,467, 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) Exchange rate 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, 2021 and 2020

(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	December 31, 2021 $ 186,665,143 (12,188,253) 174,476,890 $ 57,084,704 % 305.65	December 31, 2020 148,257,990 (5,266,122) 142,991,868 57,984,659 % 246.60

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

〜 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, 2021 and 2020

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

(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, 2021.

1.For right-of-use assets under leases, please refer to Note 6(i).
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, 2021 $ 8,446,000 24,493,173 9,176 $ 32,948,349 January 1, 2020 $ 3,050,000 21,753,043 13,040 $ 24,816,083	Cash flows 1,247,000 8,348,131 (5,854) 9,589,277 Cash flows 5,624,000 2,432,588 (5,810) 8,050,778	Non-cash changes Reclassification Foreign exchange movement (7,217,500) (25,500) 7,217,500 (163,087) 5,170 - 5,170 (188,587) Non-cash changes Reclassification Foreign exchange movement (300,000) 72,000 300,000 7,542 1,946 - 1,946 79,542	December 31, 2021
				2,450,000 39,895,717 8,492
				42,354,209
				December 31, 2020
			Reclassification (300,000) 300,000 1,946 1,946
				8,446,000 24,493,173 9,176
				32,948,349

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

(7) Related Parties Transactions

(a) Names and relationships with related parties

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

the parent company only financial statements.
Names of related party	Relationships 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
IEC (Cayman) Corporation	Subsidiary
Inventec (Cayman) Corp.	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, 2021 and 2020

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

Names of related party	Relationships with the Company
Inventec Investment Co., Ltd.	Subsidiary
AIMobile Co., Ltd.	Subsidiary
Inventec Solar Energy Corporation	Subsidiary (Note 1)
Inventec Appliances Corp.	Subsidiary
Inventec Manufacturing (India) Private Limited	Subsidiary (Note 2)
IEC Technologies, S. de R.L. de C.V.	Indirect holding subsidiary
Inventec Appliances (Jiangning) Corp.	Indirect holding subsidiary

Note 1: Inventec Solar Energy Corp. resolved at its broad meeting on December 1, 2021, to file the bankruptcy to the court. As of December 31, 2021, the court has not yet announced the result of the ruling.
Note 2: The company was dissolved on July 7, 2021. Currently, the liquidation procedure is still in progress.
(b) Significant transactions with related parties
1.Sale revenue

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

follows:
Subsidiaries Inventec Holding (North America) Corp. Inventec (Czech), s.r.o Other subsidiaries Associates	For the years ended December 31,
	2021 $ 78,253,326 24,182,011 128,854 3,871 $ 102,568,062	2020
		71,105,867 26,100,876 265,992 1,027
		97,473,762

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, 2021 and 2020 were $17,934 and $11,807, respectively.

〜 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, 2021 and 2020

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

2.Purchase

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

as follows:
Subsidiaries Inventec Corporation (Hong Kong) Ltd. Other subsidiaries Associates	For the years ended December 31,
		2020
		299,231,642 1,909,549 4,227
		301,145,418

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.

3.Accounts receivable from related parties

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

Account	Related Party Categories	December 31, 2021 $ 31,814,854 3,655,074 19,206 4 57,988,820 4,020 2,471 $ 93,484,449	December 31, 2020
Accounts receivable Other receivables	Subsidiaries Inventec Holding (North America) Corp. Inventec (Czech), s.r.o Other subsidiaries Associates Subsidiaries Inventec Corporation (Hong Kong) Ltd. Other subsidiaries Associates		16,589,292 10,953,538 175,993 - 54,544,416 144,356 66
			82,407,661

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

〜 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, 2021 and 2020

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

4.Accounts payable to related parties

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

Account	Related Party Categories	December 31, 2021 $ 68,023,513 942,655 - 36,844 1,256 $ 69,004,268	December 31, 2020
Accounts payable Other payables	Subsidiaries Inventec Corporation (Hong Kong) Ltd. Other subsidiaries Associates Subsidiaries Associates		47,083,769 293,272 678 68,559 994
			47,447,272

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

5.Property transactions

1) Acquisition of property, plant, equipment

For the years ended December 31, 2021 and 2020, the Company purchased property, plant, equipment from subsidiaries, and associates and paid the amount $19,915 and $9,976, respectively.

2) Disposal of property, plant and equipment

For the year edned December 31, 2021, the Company sold machinery, office equipment and software to subsidiaries. The total prices and gain on property disposal were $9,608 and $1,399, respectively.

For the year edned 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) 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, 2021 and 2020, the unrealized gain on property disposal were $18,124 and $18,886, respectively.

〜 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, 2021 and 2020

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

4) 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, 2021 and 2020, 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,
	2021 $ 305,821 279,543 549,505 $ 1,134,869	2020
		311,221 322,021 559,735
		1,192,977

7.Acquisition of investments accounted for using equity method

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 thousands shares, $100,000, the shareholding ratio increased to 73%.

Inventec Holding (North America) Copr. through a resolution of the Board of Directors, made a cash capital increase on 12 November, 2021. With December 22, 2021 as the base date for capital increase, the Company invested 700 shares, $194,740, the shareholding ratio remained at 100%.

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,
	2021 $ 6,857 5,112 $ 11,969	2020
		9,517 5,336
		14,853

2) For the years ended December 31, 2021 and 2020, the amount of donation to other related parties were $10,000 and $10,000, respectively.
9.Guarantees and endorsements

For the year ended December 31, 2021, the Company provided a guarantee of $276,700 thousand for a bank loan to IEC Technologies, S. de R.L.de C.V., with the balance of the endorsement guarantee at the end of the period being $276,700 thousand.

For the year ended December 31, 2020, there was no mutual guarantees and endorsements with related parities.

〜 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, 2021 and 2020

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

(c) Key management personnel compensation

Key management personnel compensation comprised:

Key management personnel compensation comprised:
Short-term employee benefits Post-employment benefit	For the years ended December 31,
	2021 $ 343,776 4,500 $ 348,276	2020
		383,258 4,524
		387,782

(8) Pledged Assets

The carrying amounts of pledged assets were as follows:

Pledged assets	Object	December 31, 2021 $ 32,403 117,832 5,786,971 $ 5,937,206	December 31, 2020
Refundable deposits (Other non-current assets) Restricted assets (Other non- current assets) Land, buildings, structures, machinery and equipment (Property, plant and equipment) Total	Customs duty guarantee and membership card The fund remitted back to special-purpose account Long-term borrowings		28,930 132,954 5,840,331
			6,002,215

(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	December 31, 2021 December 31, 2020 $ 15,581,250 15,898,550 1,693,000 1,643,000

(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, 2021 and 2020

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

(12) Other

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

By function By item	For the years ended December 31, 2021	For the years ended December 31, 2021	For the years ended December 31, 2021	For the years ended December 31, 2020	For the years ended December 31, 2020	For the years ended December 31, 2020
	Operating costs	Operating and non-operating expense	Total	Operating costs	Operating and non-operating expense	Total
Employee benefits Salary Labor and health insurance Pension Remuneration of directors Others Depreciation Amortization	1,007,489 97,448 32,713 - 32,986 315,292 73,535	5,076,433 379,167 205,409 93,072 131,365 319,189 577,226	6,083,922 476,615 238,122 93,072 164,351 634,481 650,761	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

The Company For the years ended December 31, 2021 and 2020 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 The adjustment rate of average employee salaries Remuneration ofby supervisors	2021 5,668 4 $ 1,229 $ 1,074 % 3.67 $ -	2020 5,635 4 1,187 1,036 % (4.25) -

The Company's salary and remuneration policy (including directors, supervisors, managers and employees) are 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, 2021 and 2020

(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.
(b) Other:

On January 22, 2022, Inventec Corporation received a certificate confirming the payment order from the Taiwan Taoyuan District Court. Inventec Solar Energy Corp. shall pay Inventec Corporation a total of $42,041 with the interest shown thereon. Inventec Solar Energy Corp. did not raise any objection.

(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, 2021:

Loans to other parties:

(In Thousands of New Taiwan Dollars)

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

〜 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, 2021 and 2020

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

Number	Name of lender	Name of borrower	Account name	Related party	Highest balance of financing to other parties during the period	Ending balance	Actual usage amount during the period	Range of interest rates during the period	Purposes of fund financing for the borrower	Transaction amount for business between two parties	Reasons for short-term financing	Allowance for bad debt	Collateral	Collateral	Individual funding loan limits	Maximum limit of fund financing
													Item	Value
4 4	Inventec (Pudong) Corp. (Note 4) 〞	Inventec Hi-Tech Corp. Inventec Asset- Management (Shanghai) Corporation	Other receivables Other receivables	Y Y	87,740 2,764,160	- 1,388,800	- 1,388,800	- 5.225%	2 2	- -	Working Capital 〞	- -	None 〞	- -	4,179,252 1,671,700	4,179,252 1,671,700

Note 1: (1)Those with business contact, please fill in 1.
(2)Those necessary for short term financing, please fill in 2.
Note 2: Among Subsidiaries which the parent company holds 100% voting power, aggregate amount of loans shall not exceed the Company's net worth as stated in its latest financial report, and each amount of loans shall not exceed 100 percent of the permitted aggregate amount of loans of the company.
Note 3: Where an inter-company or inter-firm short-term financing facility is necessary, total financing amount shall not exceed 40 percent of the company's net worth as stated in its latest financial report. Each financing amount shall not exceed 50 percent of the permitted aggregate amount of loans of the company.
Note 4: Where an inter-company or inter-firm short-term financing facility is necessary, total financing amount shall not exceed 40 percent of the company's net worth as stated in its latest financial report. Each financing amount shall not exceed 100 percent of the permitted aggregate amount of loans of the company. Among Subsidiaries which the parent company holds 100% voting power, aggregate amount of loans shall not exceed the company's net worth as stated in its latest financial report, and each amount of loans shall not exceed 100 percent of the permitted aggregate amount of loans of the company.

Note 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.

2. Guarantees and endorsements for other parties:

(In Thousands of New Taiwan Dollars)

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

Note 1: The relationship between the entity for which the endorsement/guarantee is made and the Company:

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

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

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

Note 4: The aforementioned inter-company transactions have been eliminated in the consolidated financial statements.

Note 5: The transactions in foreign currencies were translated into New Taiwan Dollars using spot rates at the financial report date.

〜 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, 2021 and 2020

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

〜 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, 2021 and 2020

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

Name of holder	Category and name of security	Relationship with company	Account title		Ending balance	Ending balance		Note
				Shares/Units (thousands)	Carrying value	Percentage of ownership (%)	Fair value (Note1)
Inventec (Cayman) Corp. Saint Investment Consulting Corporation 〞〞〞 Inventec (Chongqing) Corp. Inventec Hi-Tech Corp. 〞 Inventec (Beijing) Electronics Technology Co., Ltd. Inventec Electronics (Tianjin) Co., Ltd. Inventec Development Japan Corporation Inventec Investments Co., Ltd. 〞〞〞〞 Inventec Appliances Corp. 〞〞	Chainwin Biotech and Agrotech (Cayman Islands) Co., Ltd. Testron Technology (JiangSu) Co., Ltd. Hunan Titanium Xpower Integrated Circuits Co., LTD. Shanghai Starfive Technology Co., Ltd. Guangdong StarFive Technology Co., Ltd. Kunshan Joing Technology Co., Ltd. SCSB Winners Zun Chong Jun Xiang Financial Product SCSB Winners Yijing Ling Financial Product Bank of Communications Pension CNY Financial products ICBC Wealth Management Corporation Tian Libao No. 2 Net Worth Management Product Famm Co., Ltd. ENNOSTAR Inc. UCFUNNEL CO LTD Sagacity Tech. Co., Ltd. Living Pattern Technology Inc. E-TON Solar Tech. Co., Ltd SCOPE INDUSTRIES BERHAD Rong Cheng Tech. Co., Ltd. Tai Yi Precision Corporation	- - - - - - - - - - - - - - - - - - -	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 Non-current financial assets at fair value through other comprehensive income 〞〞	30,000 2,778 417 17 522 5,948 - - - 100 881 83 79 4 15,813 84,444 1,950 635	1,465,197 68,571 43,399 2,775 84,023 206,435 433,992 216,995 52,947 156,237 12,347 67,540 12,303 391 530 90,135 151,091 - -	% 13.17 % 10.00 % 4.00 % 0.66 % 0.66 % 2.96 % - % % - % - % 16.00 % 0.13 % 5.00 % 15.00 % 13.70 % 4.95 % 7.32 % 9.38 % 1.67	1,465,197 68,571 43,399 2,775 84,023 206,435 433,992 216,995 52,947 156,237 12,347 67,540 12,303 391 530 90,135 151,091 - -

〜 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, 2021 and 2020

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

Name of holder	Category and name of security	Relationship with company	Account title	Ending balance	Ending balance	Ending balance	Ending balance	Note
				Shares/Units (thousands)	Carrying value	Percentage of ownership (%)	Fair value (Note1)
Inventec Appliances Corp. 〞〞〞〞〞〞〞〞 Inventec Appliances (Cayman) Holding Corp. 〞〞	Siano Mobile Silicon Inc. All People Health Social Enterprise Co.,Ltd. GCT Semiconductor, Inc. Pandigital Worldwide, Ltd. preferred stock 3GTMobile Corporation Linc Global Inc. (Proximiant, Inc.) preferred stock Molekule, Inc. preferred stock XMEMS LABS INC Cardio Ring Technologies, Inc. convertible long-term note Siano Mobile Silicon Inc. Leadtone Limited(Class B preferred stock) Digital Chaotex Holdings Ltd.( Class A2 preferred stock)	- - - 〞 - - - - - - - -	Non-current financial assets at fair value through other comprehensive income 〞〞〞〞〞〞〞 Non-current financial assets at fair value through profit or loss Non-current financial assets at fair value through other comprehensive income 〞〞	461 100 93 939 314 594 1,603 2,974 - 99 1,250 446	- 1,000 - - - - 152,800 46,280 14,795 - - -	% 0.15 % 11.76 % 0.12 % 4.80 % 2.88 % 5.30 % 1.50 % 3.62 % - % 0.03 % 2.36 % 2.08	- 1,000 - - - - 152,800 46,280 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 Hi-Tech Corp.	Chainwin Biotech and Agrotech (Cayman Islands) Co., Ltd. common shares SCSB Winners Zan Chong Jun Xiang Financial Product	Non-current financial assets at fair value through other comprehensive income Current financial assets at fair value through profit or loss	Cash Capital Increase Bank of Shanghai	Non-related parties 〞	20,000 -	1,175,931 -	10,000 -	289,266 433,992	- -	- -	- -	- -	30,000 -	1,465,197 433,992

Note 1: The 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 〜

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

For the years ended December 31, 2021 and 2020

(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:

(In Thousands of New Taiwan Dollars)

Name of company	Name of property	Transaction date	Transaction amount	Status of payment	Counter-party	Relationship with the Company	If the counter-party is a related party, disclose the previous transfer information	If the counter-party is a related party, disclose the previous transfer information	If the counter-party is a related party, disclose the previous transfer information	If the counter-party is a related party, disclose the previous transfer information	References for determining price	Purpose of acquisition and current condition	Others
							Owner	Relationship with the Company	Date of transfer	Amount
IEC TECHNOLO GIES, S. DER. L. DEC. V.	Engaging others to build on the company's own land	2021/08/10	USD 75,900	13% paid	FERROMINIO DISENO Y CONSTRUCCI ON S.A. DE C.V. etc.	Non-related party	-	-	-	-	N/A	Engaging others to build on the company's own land	N/A

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

(Amounts Expressed in Thousands of New Taiwan Dollars)

Name of company	Types of property	Transaction Date	Original Acquisition Date	Book value	Transaction amount (Note 1)	Receipt Terms	Gain (loss) on disposal	Counter-party	Relationship	Purpose of disposal	Price reference	Other terms
Inventec (Pudong) Technology Corp. Inventec Hi-Tech Corp. b	Land and Building Land and uilding	2021.04.27 2021.04.27	2006 year 2006 year	327,952 52,426	1,482,932 759,634	100% 100%	1,080,844 664,487	Shanghai Chengye Apartment Management Co,. Ltd Shanghai Tiantang Apartment Management Co., Ltd	Non-related parties Non-related parties	Optimize assets N t w R R Optimize assets N t w R R	egotiated based on he valuation report ith the amount of MB318,576 and MB311,780 egotiated based on he valuation report ith the amount of MB167,148 and MB158,520	None 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 (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.	Subsidiary Subsidiary 〞〞〞 Subsidiary 〞	Sales Sales Sales Purchases Purchases Purchases Purchases	78,253,326 24,182,011 126,159 329,539,123 332,244 272,247 6,374,456	% 17.75 % 5.48 % 0.03 % 74.67 % 0.08 % 0.06 % 1.44	105 days 105 days 60 days 90-105 days 90 days 105 days 105 days	- - - - - - -	No general trading partner can be compared. 〞〞〞〞〞〞	31,814,854 3,655,074 19,206 (68,023,513) (41,698) (640,011) (260,946)	% 30.62 % 3.52 % 0.02 % 58.13 % 0.04 % 0.55 % 0.22

〜 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, 2021 and 2020

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

Name of company	Related party	Nature of relationship		Transacti	on details		Trans diffe	actions with terms rent from others	Notes/Accounts r	eceivable (payable)	Note
			Purchase/ Sale	Amount	Percentage of total purchases/sale	Payment terms	Unit price	Payment terms	Ending balance	Percentage of total notes/accounts receivable (payable)
Inventec Holding (North America) Corp. 〞〞〞〞〞 Inventec (Czech), s.r.o. 〞〞〞 Inventec Corporation (Hong Kong) Ltd. 〞〞〞 Inventec (Pudong) Technology Corp. 〞〞〞〞 Inventec (Shanghai) Corp. 〞 Inventec (Chongqing) Corp.	The Company The Company Inventec (Pudong) Technology Corp. SQ Technology (Shanghai) Corporation Inventec (Czech), s.r.o. Inventec (Czech), s.r.o. The Company The Company Inventec Holding (North America) Corp. Inventec Holding (North America) Corp. The Company Inventec (Pudong) Technology Corp. SQ Technology (Shanghai) Corporation Inventec (Chongqing) Corp. Inventec Corporation (Hong Kong) Ltd. Inventec (Shanghai) Corp. SQ Technology (Shanghai) Corporation Inventec Holding (North America) Corp. SQ Technology (Shanghai) Corporation Inventec (Pudong) Technology Corp. SQ Technology (Shanghai) Corporation Inventec Corporation (Hong Kong) Ltd.	Parent 〞 Associates 〞〞〞 Parent 〞 Associates 〞 Parent Associates 〞〞 Associates 〞〞〞〞〞〞〞	Purchases Sales Sales Sales Sales Purchases Purchases Sales Purchases Sales Sales Purchases Purchases Purchases Sales Sales Sales Purchases Purchases Purchases Purchases Sales	78,253,326 272,247 260,657 361,682 299,299 177,769 24,182,011 6,374,456 299,299 177,769 329,539,123 27,541,156 12,286,557 289,711,410 27,541,156 8,927,664 12,575,075 260,657 183,548 8,927,664 13,576,729 289,711,410	% 91.84 % 0.35 % 0.34 % 0.47 % 0.39 % 0.23 % 95.65 % 32.33 % 1.26 % 0.90 % 100.00 % 8.36 % 3.73 % 87.91 % 53.35 % 17.29 % 24.36 % 0.58 % 0.40 % 39.67 % 60.33 % 99.78	105 days 105 days 105 days 105 days 105 days 105 days 105 days 105 days 105 days 105 days 90-105 days 105 days 105 days 90 days 105 days 105 days 105 days 105 days 105 days 105 days 105 days 90 days	- - - - - - - - - - - - - - - - - - - - - -	No general trading partner can be compared 〞〞〞〞〞〞〞〞〞〞〞〞〞 No general trading partner can be compared. 〞〞〞〞〞〞〞	(31,231,633) 265,477 208 268,798 - - (3,655,074) 260,946 - - 68,023,513 (6,592,888) (4,992,920) (56,437,706) 6,592,888 29,047 5,795,040 (208) (183,071) (29,047) (5,739,082) 56,437,706	% 98.08 % 2.25 % - % 2.28 % - % - % 99.05 % 9.79 % - % - % 53.97 % 5.23 % 3.96 % 44.77 % 51.79 % 0.23 % 45.52 % - % 1.66 % 0.49 % 96.25 % 99.71

〜 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, 2021 and 2020

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

Name of company	Related party	Nature of relationship		Transacti	on details		Trans diffe	actions with terms rent from others	Notes/Accounts r	eceivable (payable)	Note
			Purchase/ Sale	Amount	Percentage of total purchases/sale	Payment terms	Unit price	Payment terms	Ending balance	Percentage of total notes/accounts receivable (payable)
SQ Technology (Shanghai) Corporation 〞〞〞〞 Inventec Appliances Corp. 〞〞〞〞 Inventec Appliances (USA) Distribution Corp. Inventec Appliances (Pudong) Corp. 〞〞	Inventec Corporation (Hong Kong) Ltd. Inventec (Shanghai) Corp. Inventec (Pudong) Technology Corp. Inventec (Pudong) Technology Corp. Inventec Holding (North America) Corp. Inventec Appliances (Pudong) Corp. Inventec Appliances (Jiangning) Corp. Inventec Appliances (Nanchang) Intelligent Manufacturing Co., Ltd. Inventec Appliances (Malaysia) SDN. BHD. Inventec Appliances (USA) Distribution Corp. Inventec Appliances Corp. Inventec Appliances Corp. Inventec Appliances (Nanchang) Intelligent Manufacturing Co., Ltd. Inventec Appliances (Malaysia) SDN. BHD.	Associates 〞〞〞〞〞〞〞〞〞〞〞〞〞	Sales Sales Sales Purchases Purchases Purchases Purchases Purchases Purchases Purchases Purchases Sales Sales Sales	12,286,557 13,576,729 183,548 12,575,075 361,682 22,755,398 1,201,076 665,462 510,042 997,740 997,740 22,755,398 491,258 484,048	% 24.23 % 26.77 % 0.36 % 17.69 % 0.64 % 78.73 % 4.16 % 2.30 % 1.76 % 3.40 % 100.00 % 96.60 % 2.09 % 0.33	105 days 105 days 105 days 105 days 105 days 1-2 months 1-2 months 1-2 months 1-2 months 1-2 months 1-2 months 1-2 months 1-2 months 1-2 months	- - - - - - - - - - - - - -	No general trading partner can be compared 〞〞〞〞〞〞〞〞〞〞〞〞〞	4,992,920 5,739,082 183,071 (5,795,040) (268,798) (7,037,783) (185,364) (59,560) (270,985) 235,787 (235,787) 7,037,783 225,811 (243,919)	% 26.67 % 30.66 % 0.98 % 25.51 % 1.18 % 86.19 % 2.27 % 0.73 % 3.32 % 3.19 % 100.00 % 96.76 % 3.10 % 3.67

〜 74 〜

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

For the years ended December 31, 2021 and 2020

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

Name of company	Related party	Nature of relationship	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 (Jiangning) Corp. 〞 Inventec Appliances (Nanchang) Intelligent Manufacturing Co., Ltd. 〞 Inventec Appliances (Malaysia) SDN. BHD. 〞 AIMobile Co., Ltd.	Inventec Appliances Corp. The Company Inventec Appliances Corp. Inventec Appliances (Pudong) Corp. Inventec Appliances Corp. Inventec Appliances (Pudong) Corp. The Company	Associates Parent Associates 〞〞〞 Parent	Sales Sales Sales Purchases Purchases Purchases Purchases	1,201,076 332,244 665,462 491,258 510,042 484,048 126,159	% 26.46 % 7.38 % 99.15 % 75.53 % 51.63 % 48.28 % 57.02	90 days 90 days 60 days 1-2 months 1-2 months 1-2 months 60 days	- - - - - - -	No general trading partner can be compared. 〞〞〞〞〞〞	185,364 41,698 59,560 (225,811) 270,985 243,919 (19,206)	% 21.11 % 4.75 % 97.68 % 95.22 % 52.55 % 47.30 % 32.50

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 (Czech), s.r.o. Inventec Corporation (Hong Kong) Ltd. 〞〞〞	Inventec Holding (North America) Corp. Inventec (Czech), s.r.o. Inventec Corporation (Hong Kong) Ltd. (Note) The Company SQ Technology (Shanghai) Corporation The Company The Company Inventec (Pudong) Technology Corp. (Note) SQ Technology (Shanghai) Corporation (Note) Inventec (Chongqing) Corp. (Note)	Subsidiary Subsidiary Subsidiary Parent Associates Parent Parent Associates Associates Associates	31,814,854 3,655,074 57,988,820 265,477 268,798 260,946 68,023,513 3,144,201 14,390,816 40,453,802	3.23 3.31 - 1.66 2.69 31.90 5.73 - - -	6,506,965 397 3,963,832 30,221 87 - 1,311,706 280,597 3,683,235 -	Received in the subsequent period Received in the subsequent period Received in the subsequent period Received in the subsequent period Received in the subsequent period Received in the subsequent period Received in the subsequent period Received in the subsequent period	14,337,974 2,142,143 42,771,214 50,729 259,663 260,946 57,427,681 2,364,730 1,165 40,405,318	- - - - - - - - - -

〜 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, 2021 and 2020

(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 (Pudong) Technology Corp. 〞 Inventec (Chongqing) Corp. SQ Technology (Shanghai) Corporation 〞〞 Inventec Appliances Corp. Inventec Appliances (Pudong) Corp. Inventec Appliances (Pudong) Corp. Inventec Appliances (Jiangning) Corp. Inventec Appliances (Malaysia) SDN. BHD. 〞	Inventec Corporation (Hong Kong) Ltd. SQ Technology (Shanghai) Corporation Inventec Corporation (Hong Kong) Ltd. Inventec Corporation (Hong Kong) Ltd. Inventec (Shanghai) Corp. Inventec (Pudong) Technology Corp. Inventec Appliances (USA) Distribution Corp. Inventec Appliances Corp. Inventec Appliances (Nanchang) Intelligent Manufacturing Co., Ltd. Inventec Appliances Corp. Inventec Appliances Corp. Inventec Appliances (Pudong) Corp.	Associates Associates Associates Associates Associates Associates Subsidiary Associates Associates Associates Associates Associates	6,592,888 5,795,040 56,437,706 4,992,920 5,739,082 183,071 235,787 7,037,783 225,811 185,364 270,985 243,919	3.69 4.34 6.09 4.92 4.73 2.01 6.39 2.83 3.51 5.44 3.76 3.97	- 4,888,395 - 1,311,706 - 126,417 - - - - - -	Received in the subsequent period Received in the subsequent period Intensive follow-up on collection	1,343,241 5,641,167 56,081,341 3,100 3,929,816 - 132,760 3,758,763 - 185,067 270,985 208,019	- - - - - - - - - - - -

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

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, 2021 (excluding investees in Mainland China):

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

Investor company	Investee company	Location	Main businesses and products	Original inv	estment amount	Balance	as of December 3	1, 2021	Net income (loss) of the investee	Share of profits/losses of investee	Note
				December 31, 2021	December 31, 2020	Shares/Units (In thousands)	Percentage of ownership	Carrying value
The Company 〞〞〞	Inventec Besta Co., Ltd. Inventec Corporation (Hong Kong) Ltd. Inventec Holding (North America) Corp. Inventec Appliances Corp.	Taipei Hong Kong USA New Taipei City	Electronic dictionary Trading Holding Company Intelligent device products	420,347 167,162 353,743 9,656,877	420,347 167,162 159,003 9,656,877	23,405 2,500 2,001 536,857	% 37.53 % 100.00 % 100.00 % 100.00	251,731 389,244 1,496,415 8,618,636	109,291 27,093 59,949 157,700	41,015 27,093 59,949 157,700	Investment accounted for using equity method Subsidiary 〞〞

〜 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, 2021 and 2020

(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, 2021	Net income (loss) of the investee	Share of profits/losses of investee	Note
				December 31, 2021	December 31, 2020	Shares/Units (In thousands)	Percentage of ownership	Carrying value
The Company 〞〞〞〞〞〞〞 Inventec Investment Co., Ltd. Inventec Appliances Corp. 〞〞〞 Inventec Appliances (Cayman) Holding Corp. 〞	Inventec (Cayman) Corp. IEC (Cayman) Corporation Inventec (Czech), S.R.O. Inventec Investment Co., Ltd. Inventec Solar Energy Corporation Inventec Development Japan Corporation Inventec Japan Corporation AIMobile Co., Ltd. Inventec Solar Energy Corporation Inventec Appliances (Cayman) Holding Corp. Gainia Intellectual Asset Services, Inc. Good Future Biomedical Technology Corp. Inventec Solar Energy Corporation Inventec Appliances (USA) Distribution Corp. Inventec Appliances Corporation USA, Inc.	Cayman Cayman Czech Taipei Taoyuan Japan Japan Taipei Taoyuan Cayman Taipei Taoyuan Taoyuan USA 〞	Holding Company Holding Company Production and sales of computer products Investment Company Sales of solar cells and medical equipment Trading Trading and management service Developing, production and sales of intelligent mobile devices Sales of solar cells and medical equipment Holding Company Intellectual property rights integrative services Biotechnology services and retail sale and wholesale of medical divices Sales of solar cells and medical equipment Marketing promotion Sales services	9,812,963 739,500 85,921 1,000,000 1,087,800 630,845 2,954 182,500 150,000 5,522,230 6,400 23,712 311,160 22,136 1,384	9,812,963 739,500 85,921 1,000,000 1,087,800 630,845 2,954 182,500 150,000 5,522,230 6,400 - 311,160 22,136 1,384	301,768 25,000 - 108,800 108,150 45 - 18,250 15,000 199,575 205 9,120 30,930 400 10	% 100.00 % 100.00 % 100.00 % 100.00 % 33.45 % 100.00 % 100.00 % 73.00 % 4.64 % 100.00 % 38.90 % 30.00 % 9.57 % 100.00 % 100.00	25,340,228 1,426,351 166,344 87,874 (633,253) 19,018 3,044 76,620 (93,579) 15,494,150 977 22,233 (192,960) 90,952 13,434	4,892,191 276,704 59,237 (39,996) (1,057,139) (746) 300 (62,961) (1,057,139) (925,513) (914) (5,798) (1,056,534) 909 808	4,892,191 276,704 59,237 (39,996) (337,049) (746) 300 (45,969) - - - - - - -	Subsidiary 〞〞〞〞〞〞〞 Associate Company 〞 Investment accounted for using equity method 〞 Associate Company 〞〞

〜 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, 2021 and 2020

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

Investor company	Investee company	Location	Main businesses and products	Original investment amount	Original investment amount	Balance as of December 31, 2021	Balance as of December 31, 2021	Balance as of December 31, 2021	Net income (loss) of the investee	Share of profits/losses of investee	Note
				December 31, 2021	December 31, 2020	Shares/Units (In thousands)	Percentage of ownership	Carrying value
Inventec Appliences (Pudong) Corp.	Inventec Appliances (Malaysia) SDN. BHD.	Malaysia P s d	roduction and ales of intelligent evices	801,843	470,503	121,000	% 100.00	499,655	(288,490)	-	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, 2021	Investm	ent flows	Accumulated outflow of investment from Taiwan as of December 31, 2021	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 Inventec Asset- Management (Shanghai) Corporation Saint Investment consulting corporation SQ Technology (Shanghai) Corporation Truswe (ChongQing) Technology Co.,Ltd	Sales of computer products Sales of computer products Sales of computer products Sales of computer products Production and sales of computer products Production and sales of computer products Electronic product software development Electronic product software development Sales of computer products Leasing Business management Production and sales of computer products Sales of computer products	317,799 27,670 1,383,500 2,075,220 2,075,250 1,621,233 138,350 40,122 1,383,500 1,858,367 216,995 216,995 130,197	(2) (2) (2) (2) (2) (2) (2) (2) (2) (3) (3) (3) (3)	55,340 27,670 1,383,500 816,265 2,075,250 1,383,500 117,598 40,122 1,383,500 - - - -	- - - - - - - - - - - - -	- - - - - - - - - - - - -	55,340 27,670 1,383,500 816,265 2,075,250 1,383,500 117,598 40,122 1,383,500 - - - -	(873) (397) 75,879 24,325 2,315,700 2,288,343 11,918 2,268 563,662 (22,694) 210 536,144 (4,255)	% 100.00 % 100.00 % 100.00 % 100.00 % 100.00 % 100.00 % 100.00 % 100.00 % 100.00 % 78.00 % 100.00 % 100.00 % 20.00	(873) (397) 75,879 24,325 2,315,700 2,318,301 11,918 2,268 563,662 (17,701) 210 536,144 (851)	251,825 39,416 4,179,252 1,872,913 9,326,398 8,716,981 241,208 79,191 1,697,375 1,348,794 217,240 754,864 25,186	30,234 - - - 2,242,107 321,599 149,517 - - - - - -

〜 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, 2021 and 2020

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

Name of investee	Main businesses and products	Total amount of paid-incapital	Method of investment (Note 1)	Accumulated outflow of investment from Taiwan as of January 1, 2021	Investment flows	Investment flows	Accumulated outflow of investment from Taiwan as of December 31, 2021	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 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. Inventec Easy Doctor Corporation	Development of intelligent devices Production and sales of intelligent devices Production and sales of intelligent devices Production and sales of intelligent devices House leasing Development of intelligent devices Business management Business management Production and sales of intelligent devices Production and sales of medical devices	1,427,772 2,130,590 1,881,560 138,350 110,680 58,107 2,178 34,719 260,395 43,399	(2) (2) (2) (2) (2) (2) (3) (3) (3) (3)	1,331,426 2,130,590 1,162,140 248,518 110,680 58,107 - - - -	- - - - - - - - - -	- - - - - - - - - -	1,331,426 2,130,590 1,162,140 248,518 110,680 58,107 - - - -	(146,365) (707,488) 300,401 14,665 11,394 (43,694) 24,673 (3,138) (101,103) (1,010)	% 100.00 % 100.00 % 100.00 % 100.00 % 100.00 % 100.00 % 100.00 % 100.00 % 100.00 % 100.00	(146,365) (1,063,560) 300,525 14,665 11,394 (43,694) 24,673 (3,138) (101,103) (1,010)	1,614,887 7,710,943 5,562,737 395,537 61,898 36,959 108,309 22,092 3,663 42,386	1,535,981 2,297,117 1,636,736 85,353 - - - - - -

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, 2021	Investment Amounts Authorized by Investment Commission, MOEA	Upper Limit on Investment (Note 3,4,7)
The Company Inventec Appliances Corp.	7,340,851 5,103,123	7,340,851 5,103,123	- 4,709,509

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

(a) Direct investment in Mainland China.

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

Note 2: The base of recognition of investment income (loss) is the financial statements audited by CPA of the investee company.

Note 3: In accordance with the regulation of amended limitation calculation of Investment Commission in 29 August, 2008, MOEA (IDB) committed the Company were in the scope of operating headquarter; therefore there is no need to calculate the limitation.

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

Note 5: The transactions in foreign currencies were 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

〜 79 〜

(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, 2021 and 2020

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

Significant transactions:

The significant inter-company transactions with the subsidiary in Mainland China for the year ended December 31, 2021, 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, 2021.

〜 80 〜

INVENTEC CORPORATION

Statement of Cash and Cash Equivalents

December 31, 2021

(In Thousands of New Taiwan Dollars)

Item	Description Amount Petty cash $ 450 Foriegn cash 551 Subtotal 1,001 Checking accounts 510 Demand deposits 111,675 Foriegn deposits USD 409,742 thousands 11,339,514 JPY 2,511 thousands CNY 32 thousands EUR 39 thousands Time deposits 735,553 Subtotal 12,187,252 $ 12,188,253
Cash Cash in banks

〜 81 〜

INVENTEC CORPORATION

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

For the year ended December 31, 2021

(In Thousands of New Taiwan Dollars)

Share or units	Par value $ 40,630	Total amount 1,521,476	Interest rate % -	Acquisition cost 113,690	Accumulated impairment -	Fair value Unit price Total amount Note 374.50 1,521,476
						Unit price 374.50
4,063

〜 82 〜

INVENTEC CORPORATION

Statement of Accounts Receivables

December 31, 2021

(In Thousands of New Taiwan Dollars)

Client Name	Description	Amount Note $ 47,034,715 12,222,287 9,220,450 The year-end balance of each client doesn't exceed 5% of the account balance. 68,477,452 (67,033) 68,410,419 31,814,854 3,655,074 19,210 The year-end balance of each client doesn't exceed 5% of the account balance. 35,489,138 - 35,489,138 $ 103,899,557
Non-related parties : HP International Pte. Ltd. ASUSTEK Computer Incorporation Other Subtotal Less: Loss allowance Net amount Related parties : Inventec Holding (North America) Corp. Inventec (Czech), S.R.O. Other Subtotal Less: Loss allowance Net amount Total

〜 83 〜

INVENTEC CORPORATION

Statement of Other Receivables

December 31, 2021

(In Thousands of New Taiwan Dollars)

Item	Description	Amount Note $ 213,060 57,995,311 1,248 $ 58,209,619
Non-related parties Related parties Earned revenue receivable Total	Payments on behalf of others Payments of materials on behalf of others Interest receivable from banks

Statement of Inventory

Item	Amount Cost Net realized value Note $ 7,751,715 7,637,842 1,488,177 1,472,908 2,268,288 2,243,480 11,508,180 11,354,230 (153,950) $ 11,354,230
	Cost $ 7,751,715 1,488,177 2,268,288 11,508,180 (153,950) $ 11,354,230
Raw materials Work in process Finished goods Subtotal Less: Allowance for inventory market decline and obsolescence Total

〜 84 〜

INVENTEC CORPORATION

Statement of Other Current Assets

December 31, 2021

(In Thousands of New Taiwan Dollars)

Item	Description	Amount Note $ 1,393 95,917 97,310 5,147 456,626 145,190 19,723 $ 723,996
Prepayments Temporary payments Payments on behalf of others Asset recognized as right to recover products from customers Other	Premium Other Subtotal Other Other Other

〜 85 〜

Inventec Corporation

Statement of Non-current financial assets at fair value through

profit or loss

For the year ended December 31, 2021

(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. Enflex Corporation Total	Beginning 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	Addition Shares/(in thousand) Amount 45 - - - - 88,247 200 - - - 750 32,250 120,497	Decrease Shares/(in thousand) Amount - 1,720 - 118,142 - - - 4,870 - 743 - 27,503 152,978	Ending balance Shares/(in thousand) Fair value 495 17,464 3,260 114,198 94,889 540,866 1,200 54,480 2,857 57,200 750 4,747 788,955	Collateral Note None 〞〞〞〞〞
	Shares/(in thousand)	Shares/(in thousand) 45 - - 200 - 750	Shares/(in thousand) - - - - - -	Shares/(in thousand) 495 3,260 94,889 1,200 2,857 750
	450 3,260 94,889 1,000 2,857 -

〜 86 〜

INVENTEC CORPORATION

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

For the year ended December 31, 2021

(In Thousands of New Taiwan Dollars)

Name of financial instrument Common Stock WK Technology Fund IV Corp. 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. ASOCS LTD. Atayalan, Inc. Subtotal Total	Beginning 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	Addition Shares (in thousand) Amount - - - - - - - - - - - 20,128 - 1,850 21,978 - - - - - 3,299 - 6,827 - - - - 360 27,950 1,553 13,895 51,971 73,949	Decrease Shares (in thousand) Amount 645 5,084 - 74,977 - 10 - - - 3,256 - - - - 83,327 - - - - - - - - - 14,159 - 12,370 - 27,950 - - 54,479 137,806	Ending balance Shares (in thousand) Fair value - - 21,114 845 29 156 2,540 - 1,760 8,941 70 2,031,072 26 16,630 2,057,644 235 - 3,632 - 3,746 45,054 568 22,750 355 12,385 532 - 360 - 1,553 13,895 94,084 2,151,728	Collateral Note None 〞〞〞〞〞〞〞〞〞〞〞〞〞〞
	Shares (in thousand)	Shares (in thousand) - - - - - - - - - - - - - 360 1,553	Shares (in thousand) 645 - - - - - - - - - - - - - -	Shares (in thousand) - 21,114 29 2,540 1,760 70 26 235 3,632 3,746 568 355 532 360 1,553
	645 21,114 29 2,540 1,760 70 26 235 3,632 3,746 568 355 532 - -

〜 87 〜

INVENTEC CORPORATION

Statement of Changes in Investments Accounted for Using the Equity Method

For the Year Ended December 31, 2021

(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. Manufacturing (India) Private Limited AI Mobile Co., Ltd. Inventec Solar Energy Corporation	Beginning Balance Shares (in thousand) Amount 23,405 $ 210,311 2,500 365,614 5,000 1,281,813 536,857 9,246,421 301,768 21,100,327 25,000 1,178,105 - 114,544 45 17,677 - 3,181 108,800 124,923 55,994 10,738 18,250 122,282 $ 33,775,936 108,150 $ (296,204)	Add	ition Amount 41,420 23,630 214,602 - 4,239,901 248,246 51,800 1,341 - - - - 4,820,940 -	Dec	rease Amount - - - 627,785 - - - - 137 37,049 10,738 45,662 721,371 337,049		Ending balance	Amount 251,731 389,244 1,496,415 8,618,636 25,340,228 1,426,351 166,344 19,018 3,044 87,874 - 76,620 37,875,505 (633,253)	Market V Asset	alue or Net s Value Total amount 410,758 389,244 1,496,415 8,618,636 25,340,228 1,426,351 166,344 19,018 3,044 87,874 - 76,620 38,034,532 (633,253)	Collateral Note None Note 〞〞〞〞〞〞〞〞〞〞〞〞〞〞〞〞〞〞〞〞〞〞〞 Note 1
	Shares (in thousand)	Shares (in thousand) - - 1 - - - - - - - - - -		Shares (in thousand) - - 3,000 - - - - - - - 55,994 - -		Shares (in thousand) 23,405 2,500 2,001 536,857 301,768 25,000 - 45 - 108,800 - 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 % - % 73.00 % 33.45		Unit price 17.55 - - - - - - - - - - - -
	23,405 2,500 5,000 536,857 301,768 25,000 - 45 - 108,800 55,994 18,250 108,150

Note : The market value of listed companies are market value, and the value of private entities are net asset value.

Note1: Other non-current liabilities, others.

〜 88 〜

INVENTEC CORPORATION

Statement of Other Non-current Assets

December 31, 2021

(In Thousands of New Taiwan Dollars)

Item	Description	Amount Note $ 2,833,128 (2,750,179) 1,128,331 117,832 32,403 219,702 $ 1,581,217
Deferred expense Less: Accumulated depreciation Deferred tax assets Restricted assets Refundable deposits Other assets	Toolings Membership card and customs duty guarantee

〜 89 〜

INVENTEC CORPORATION

Statement of Short-term Borrowings

December 31, 2021

(In Thousands of New Taiwan Dollars)

Category of loans	Description	Ending balance $ 1,300,000 1,355,801 3,293,279 6,693,104 3,809,265 2,158,054 1,656,720 500,000 1,716,948 1,600,000 4,052,112 300,000 1,660,192 2,582,742 $ 32,678,217	Contract Period 2022.01.13 2022.01.19 2022.01.03-2022.02.10 2022.02.08-2022.03.24 2022.01.05 2022.02.16 2022.03.22 2022.01.28 2022.02.11 2022.01.26-2022.02.09 2022.01.07-2022.03.31 2022.02.25 2022.01.14 2022.01.19	Range of interest rate Loan commitments 1.03% USD 50,000 0.53% TWD 1,500,000 0.41%-0.45% USD 223,000 0.7%-0.8% USD 250,000 0.55% USD 150,000 0.55% TWD 2,325,000 0.75% USD 60,000 0.89% USD 80,000 0.65% TWD 1,800,000 0.73% USD 60,000 0.51%-0.68% USD 150,000 0.75% USD 30,000 0.48% USD 60,000 0.53% TWD 3,000,000	Collateral or guarantee Note None 〞〞〞〞〞〞〞〞〞〞〞〞〞
Short-term borrowings	BNP Paribas E.SUN Bank Citi Bank DBS Bank Bank of Taiwan Hua Nan Bank Mega Bank Taishin Bank Land Bank Mizuho Bank Sumito Mitsui Bank OCBC Bank Cathay Bank First Bank

〜 90 〜

INVENTEC CORPORATION

Statement of Accounts Payable

December 31, 2021

(In Thousands of New Taiwan Dollars)

Vendor name	Description	Amount Note $ 13,917,616 10,029,571 3,842,693 2,900,906 17,371,271 The year-end balance of each client doesn't exceed 5% of the account balance. 48,062,057 68,023,513 942,655 The year-end balance of each client doesn't exceed 5% of the account balance. 68,966,168 $ 117,028,225
Non-related parties : Hp International Pte. Ltd. Asustek Computer Incorporation Hewlett Packard Caribe Y Andina, Bv Llc Hewlett Packard Enterprise Crl Other Subtotal Related parties : Inventec Corporation (Hong Kong) Ltd. Other Subtotal Total

〜 91 〜

INVENTEC CORPORATION

Statement of Other Payables

December 31, 2021

(In Thousands of New Taiwan Dollars)

Item	Description Amount Payables for salary, incentive and bonus $ 3,114,707 Payables for purchasing softwares 25,584 Inventory processing fee 619,784 Other 1,735,252 $ 5,495,327
Other payables Total

Statement of Other Current Liabilities

Item	Description	Amount Note $ 638 55,486 5,356,208 3,168,553 $ 8,580,885
Other current liabilities	Advance receipts Receipts under custody Temporary credits Other

〜 92 〜

INVENTEC CORPORATION

Statement of Long-term Borrowings

December 31, 2021

(In Thousands of New Taiwan Dollars)

Creditor	Description	Amount $ 6,917,500 1,833,333 916,667 (7,217,500) $ 2,450,000	Contract period 2022.01.11-2022.02.11 2031.02.26 2031.02.26	Interest rate Collateral or guarantee Note 0.97%~1.00% 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	Syndicated Loans Secured borrowings 〞

〜 93 〜

INVENTEC CORPORATION

Statement of Other Non-current Liabilities

December 31, 2021

(In Thousands of New Taiwan Dollars)

Item	Description	Amount Note $ 3,990,228 43,787 561 633,253 $ 4,667,829
Other non-current liabilities	Deferred tax liabilities Deferred credits Gaurantee deposits received Credit balance of investments accounted for using equity method

〜 94 〜

INVENTEC CORPORATION

Statement of Operating Costs

For the year ended December 31, 2021

(In Thousands of New Taiwan Dollars)

Item
Cost of goods sold from manufacturing
Direct material
Add: Raw material, January 1
Purchases
Gain on physical inventory
Less: Raw material, December 31
Transferred to expense
Sales
Loss on physical inventory
Direct labor
Manufacturing expenses
Cost of manufacturing
Add: Work in process, January 1
Purchases
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
Gain on physical inventory
Cost of provision of sales return
Total operating costs

Amount
Subtotal
Total
$ 25,063,060
15,178,192
1,225,291
23,388,056
41,578
(7,751,715)
(208,762)
(1,474,813)
(41,443)
403,075
1,757,524
17,338,791
691,631
10,868,536
204
(1,488,177)
(185,741)
(20)
(6,182)
27,219,042
536,647
200
(2,268,288)
(39)
(378,486)
(46,016)
1,474,813
400,359,758
88,326
688,620
24,528
(480)
115,809
$
427,814,434

〜 95 〜

INVENTEC CORPORATION

Statement of Selling Expenses

For the year ended December 31, 2021

(In Thousands of New Taiwan Dollars)

Item	Decription	Amount Note $ 546,484 419,666 627,223 98,181 370,486 $ 2,062,040
Salary and wages expense Amortization expense Freight Miscellaneous expense Other expense

Statement of Administrative Expenses

Item	Description	Amount Note $ 921,992 139,998 142,687 118,149 136,561 356,567 $ 1,815,954
Salary and wages expense Miscellaneous expense Depreciation expense Repair expense Professional service fees Other expense

〜 96 〜

INVENTEC CORPORATION

Statement of Research and Development Expenses

December 31, 2021

(In Thousands of New Taiwan Dollars)

Item	Description	Amount Note $ 3,896,787 806,311 359,225 327,210 172,028 127,057 742,371 $ 6,430,989
Salary and wages expense Supplies Miscellaneous expense Examination expense Depreciation expense Amortization expense Other expense

〜 97 〜

AI assistant

INVENTEC — Audit Report / Information 2021

52026_rns_2021-11-25_72137993-1ce5-42fa-960a-dd9bdba3715f.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, 2021 and 2020

(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, 2021 and 2020

(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, 2021 and 2020

(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, 2021 and 2020

(Expressed in Thousands of New Taiwan Dollars)

STATEMENTS OF CASH FLOWS (CONT'D)

For the Years Ended December 31, 2021 and 2020

(Expressed in Thousands of New Taiwan Dollars)

NOTES TO THE PARENT COMPANY ONLY FINANCIAL STATEMENTS

For the years ended December 31, 2021 and 2020

(1) Company History

(2) Financial Statements Authorization Date and Authorization Process

(3) New Standards, Amendments and Interpretations Adopted:

(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, 2021 and 2020

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

(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, 2021 and 2020

2.Functional and presentation currency

1.Foreign currency transaction

2.Foreign operations

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

(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, 2021 and 2020

(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, 2021 and 2020

(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, 2021 and 2020

(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, 2021 and 2020

(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, 2021 and 2020

(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, 2021 and 2020

(k) Leases

(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, 2021 and 2020

(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, 2021 and 2020

(ii) As a lessor

(l) Intangible assets

2.Subsequent expenditure

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

INVENTEC Audit Report / Information 2021