Stock Code:2356

INVENTEC CORPORATION AND SUBSIDIARIES

CONSOLIDATED FINANCIAL STATEMENTS

With Independent Auditors’ Review Report For the Nine Months Ended September 30, 2020 and 2019

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

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

〜 1 〜

Contents
1. Cover Page
2. Table of Contents
3. Independent Auditors’ Review Report
4. Consolidated Balance Sheets
5. Consolidated Statements of Comprehensive Income
6. Consolidated Statements of Changes in Equity
7. Consolidated Statements of Cash Flows
8. Notes to the Consolidated Financial Statements
(1)Overview
(2)Financial Statements Authorization Date and Authorization Process
(3)New Standards, Amendments and Interpretations not yet Adopted
(4)Summary of Significant Accounting Policies
(5)Significant Accounting Judgments, Estimation, Assumptions, and Sources
of Estimation Uncertainty
(6)Explanation to Significant Accounts
(7)Related Party Transactions
(8)Pledged Assets
(9)Significant Commitments and Contingencies
(10)Losses Due to Major Disasters
(11)Subsequent Events
(12)Other
(13)Other disclosures
(a) Information on significant transactions
(b) Information on investment
(c) Information on investment in Mainland China
(d) Information on major shareholder
(14)Segment Information Page

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Contents 1. Cover Page 2. Table of Contents 3. Independent Auditors’ Review Report 4. Consolidated Balance Sheets 5. Consolidated Statements of Comprehensive Income 6. Consolidated Statements of Changes in Equity 7. Consolidated Statements of Cash Flows 8. Notes to the Consolidated Financial Statements (1)Overview (2)Financial Statements Authorization Date and Authorization Process (3)New Standards, Amendments and Interpretations not yet Adopted (4)Summary of Significant Accounting Policies (5)Significant Accounting Judgments, Estimation, Assumptions, and Sources of Estimation Uncertainty (6)Explanation to Significant Accounts (7)Related Party Transactions (8)Pledged Assets (9)Significant Commitments and Contingencies (10)Losses Due to Major Disasters (11)Subsequent Events (12)Other (13)Other disclosures (a) Information on significant transactions (b) Information on investment (c) Information on investment in Mainland China (d) Information on major shareholder (14)Segment Information	Page
	1 2 3 4 5 6 7 8 8 8`～`10 10`～`13 13`～`14 14`～`48 49`～`51 51 52 52 52 52`～`53 53`～`61 62`～`63 63`～`65 63`～`65 65`～`66

〜 2 〜

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

KPMG

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

Independent Auditors’ Review Report

To the Board of Directors of Inventec Corporation:

Introduction

We have reviewed the accompanying consolidated balance sheets of Inventec Corporation (“Company”) and its subsidiaries (“ Group” ) as of September 30, 2020 and 2019, and the related consolidated statements of comprehensive income for the three months and nine months ended September 30, 2020 and 2019, as well as the changes in equity and cash flows for the nine months ended September 30, 2020 and 2019, and notes to the consolidated financial statements, including a summary of significant accounting policies. Management is responsible for the preparation and fair presentation of the consolidated financial statements in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and International Accounting Standard 34, “ Interim Financial Reporting” endorsed and issued into effect by the Financial Supervisory Commission of the Republic of China. Our responsibility is to express a conclusion on the consolidated financial statements based on our reviews.

Scope of Review

Except as explained in the Basis for Qualified Conclusion paragraph, we conducted our reviews in accordance with Statement of Auditing Standard 65, “ Review of Financial Information Performed by the Independent Auditor of the Entity”. A review of the consolidated financial statements consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with the generally accepted auditing standards and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Basis for Qualified Conclusion

As stated in Note 4(b), the consolidated financial statements included the financial statements of certain nonsignificant subsidiaries, which were not reviewed by independent auditors. These financial statements reflect the total assets amounting to $75,116,126 thousand and $73,766,851 thousand, constituting 32% and 36% of the consolidated total assets; and the total liabilities amounting to $19,564,012 thousand and $20,716,118 thousand, constituting 11% and 14% of the consolidated total liabilities as of September 30, 2020 and 2019, respectively; as well as the total comprehensive income (loss) amounting to $598,362 thousand, $581,615 thousand, $(365,125) thousand and $529,923 thousand, constituting 29%, 82%, (6)% and 14% of the consolidated total comprehensive income (loss) for the three months and nine months ended September 30, 2020 and 2019, for the three months ended September 30, 2020 and 2019, respectively.

〜 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.

Furthermore, as stated in Note (6)(f), the other equity accounted investments of the Group in its investee companies of $1,128 thousand and $0 thousand as of September 30, 2020 and 2019, respectively, and its equity in net earnings on these investee companies of $1,032 thousand, $0 thousand, $(579) thousand and $(1,697) thousand for the three months and nine months ended September 30, 2020 and 2019, respectively, were recognized solely on the financial statements prepared by these investee companies, but not reviewed by independent auditors.

Qualified Conclusion

Except for the adjustments, if any, as might have been determined to be necessary had the financial statements of certain consolidated subsidiaries and equity accounted investee companies described in the Basis for Qualified Conclusion paragraph above been reviewed by independent auditors, based on our reviews, nothing has come to our attention that causes us to believe that the accompanying consolidated financial statements do not present fairly, in all material respects, the consolidated financial position of the Group as of September 30, 2020 and 2019, and of its consolidated financial performance for the three months and nine months ended September 30, 2020 and 2019, as well as its consolidated cash flows for the nine months ended September 30, 2020 and 2019 in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and International Accounting Standard 34, “ Interim Financial Reporting” endorsed and issued into effect by the Financial Supervisory Commission of the Republic of China.

The engagement partners on the reviews resulting in this independent auditors’ review report are Wan-Wan Lin and Liu-Fong Yang.

KPMG

Taipei, Taiwan (Republic of China) November 10, 2020

Notes to Readers

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

〜 3-1 〜

(English Translation of Consolidated Financial Statements Originally Issued in Chinese)

REVIEWED ONLY, NOT AUDITED IN ACCORDANCE WITH GENERALLY ACCEPTED AUDITING STANDARDS AS OF SEPTEMBER 30, 2020 AND 2019

INVENTEC CORPORATION AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

September 30, 2020, December 31, 2019, and September 30, 2019

(Expressed in Thousands of New Taiwan Dollars)

ASSETS Current Assets`：` 1100 Cash and cash equivalents (Notes (6)(a)) 1110 Current financial assets at fair value through profit or loss (Notes (6)(b)) 1120 Current financial assets at fair value through other comprehensive income (Notes (6)(b)) 1170 Accounts receivable, net (Notes (6)(c) and (7)) 1200 Other receivables, net (Notes (6)(d) and (7)) 1310 Inventories, manufacturing business, net (Notes (6)(e)) 1470 Other current assets (Notes (6)(l)) Non-current assets`：` 1510 Non-current financial assets at fair value through profit or loss (Notes (6)(b)) 1517 Non-current financial assets at fair value through other comprehensive income (Notes (6)(b)) 1550 Investments accounted for using equity method, net (Notes (6)(f)) 1600 Property, plant and equipment (Notes (6)(h)) 1755 Right-of-use assets (Notes (6)(i)) 1760 Investment property, net (Notes (6)(j)) 1780 Intangible assets (Notes (6)(k)) 1900 Other non-current assets (Notes (4), (6)(l) and (6)(q)) TOTAL ASSETS	2020.9.30		2019.12.31		2019.9.30 Amount % 26,330,817 13 2,751,249 1 1,131,458 1 89,229,993 43 893,792 - 46,518,735 23 1,514,599 1 168,370,643 82 - - 361,134 - 256,758 - 29,647,277 14 3,473,106 2 705,577 - 903,606 1 2,261,999 1 37,609,457 18 205,980,100 100 2020.9.30 LIABILITIES AND EQUITY Amount % Current Liabilities`：` 2100 Short-term borrowings (Note (6)(m)) $ 40,634,468 18 2120 Current financial liabilities at fair value through profit or loss (Notes (6)(b)) 174,959 - 2130 Current contract liabilities (Note (6)(u)) 7,428,251 3 2170 Accounts payable (Note (7)) 87,216,175 38 2230 Current tax liabilities 2,421,932 1 2200 Other payables (Note (7)) 10,449,750 4 2322 Long-term borrowings, current portion (Note (6)(m)) 3,822,744 2 2280 Current lease liabilities (Notes (4) and (6)(n)) 193,301 - 2399 Other current liabilities, others 11,821,946 5 164,163,526 71 Non-current Liabilities`：` 2540 Long-term borrowings (Note (6)(m)) 3,345,731 2 2640 Net defined benefit liability, non-current (Notes (4) and (6)(p)) 604,960 - 2580 Non-current lease liabilities (Notes (4) and (6)(n)) 783,001 - 2670 Other non-current liabilities, others (Notes (6)(q)) 4,726,591 2 9,460,283 4 Total Liabilities 173,623,809 75 Equity attributable to owners of parent`：` 3110 Ordinary share (Note (6)(r)) 35,874,751 16 3200 Capital surplus (Note (6)(r)) 2,913,461 1 3300 Retained earnings (Note (6)(r)) 20,244,599 9 3400 Other equity interest (Note (6)(r)) (1,480,909) (1) Total equity attributable to owners of parent 57,551,902 25 36XX Non-controlling interests 433,262 - Total Equity 57,985,164 25 TOTAL LIABILITIES AND EQUITY $ 231,608,973 100	2020.9.30		2019.12.31		2019.9.30 Amount % 33,781,966 17 12,515 - 6,489,783 3 77,007,687 37 2,901,133 2 11,355,758 6 386,979 - 188,384 - 9,049,349 4 141,173,554 69 3,742,195 2 600,865 - 868,165 - 3,314,306 2 8,525,531 4 149,699,085 73 35,874,751 18 2,912,889 1 16,966,738 8 (1,287,109) (1) 54,467,269 26 1,813,746 1 56,281,015 27 205,980,100 100
	Amount % $ 26,707,329 12 2,516,035 1 1,163,960 1 107,526,097 46 787,950 - 46,677,859 20 5,007,845 2 190,387,075 82 716,668 - 3,910,669 2 220,218 - 28,881,126 13 3,391,451 2 - - 889,852 - 3,211,914 1 41,221,898 18 $ 231,608,973 100		Amount % 18,952,967 10 3,958,468 2 1,194,430 1 88,491,343 46 754,975 - 37,345,542 19 1,469,984 1 152,167,709 79 - - 2,243,738 1 247,194 - 30,729,458 16 3,546,126 2 693,315 - 880,774 1 2,584,539 1 40,925,144 21 193,092,853 100

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

〜 4 〜

(English Translation of Consolidated Financial Statements Originally Issued in Chinese) Reviewed only, not audited in accordance with generally accepted auditing standards INVENTEC CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

For the Three months and nine months ended September 30, 2020 and 2019

(Expressed in Thousands of New Taiwan Dollars)

For the three	months e	nded September 30,	e months	ended September 30,	ended September 30,
2020	% 100 96 4 - 1 2 - 3 1 - - - - - - 1 - 1 - - - - - - - - - 1 1 - 1 1 - 1 0.54 0.54	2019 Amount 128,707,851 122,691,641 6,016,210 653,652 1,105,395 2,362,948 10,779 4,132,774 1,883,436 385,923 125,301 (384,010) (498,414) (10,551) (381,751) 1,501,685 496,973 1,004,712 339,731 1,082 - 340,813 (638,342) (1,351) - (639,693) (298,880) 705,832 1,063,946 (59,234) 1,004,712 776,609 (70,777) 705,832	% 100 96 4 - 1 2 - 3 1 - - 2 - - 2 3 1 2 - - - - - - - - - 2 2 - 2 2 - 2 1.85 1.83	2019 Amount 371,374,775 354,738,053 16,636,722 1,977,105 3,212,062 7,017,836 9,543 12,216,546 4,420,176 1,006,734 243,160 572,981 (1,373,066) (17,462) 432,347 4,852,523 1,307,659 3,544,864 651,310 2,072 - 653,382 (300,682) (1,208) - (301,890) 351,492 3,896,356 4,125,379 (580,515) 3,544,864 4,484,627 (588,271) 3,896,356
Amount $ 145,380,375 139,529,062 5,851,313 711,622 1,062,359 2,534,400 13,833 4,322,214 1,529,099 271,630 86,077 679,130 (268,841) (3,180) 764,816 2,293,915 549,598 1,744,317 54,732 (8,272) - 46,460 245,915 526 - 246,441 292,901 $ 2,037,218 $ 1,931,429 (187,112) $ 1,744,317 $ 2,216,884 (179,666) $ 2,037,218 $ $					% 100 96
					4
					- 1 2 -
					3
					1
					- - - - -
					-
					1 -
					1
					- - -
					-
					- - -
					-
					-
					1
					1 -
					1
					1 -
					1
					1.15
					1.14

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

〜 5 〜

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

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

For the Nine Months Ended September 30, 2020 and 2019

(Expressed in Thousands of New Taiwan Dollars)

Equity attributable to owners of parent

Retained Earnings	Retained Earnings		Other Equity Interest Exchange Differences on Translation Unrealized gains (losses) from financial assets measured at fair value of Foreign Financial Statements through other comprehensive income (990,250) (656,107) - - (294,133) 653,381 (294,133) 653,381 - - - - - - - - - - (1,284,383) (2,726) (2,005,134) 183,129 - - (615,088) 936,926 (615,088) 936,926 - - - - - - - 19,258 - - (2,620,222) 1,139,313
			Exchange Differences on Translation of Foreign Financial Statements (990,250) - (294,133) (294,133) - - - - - (1,284,383) (2,005,134) - (615,088) (615,088) - - - - - (2,620,222)
Legal Reserve 10,149,619 - - - 649,986 - - - - 10,799,605 10,799,605 - - - 546,296 - - - - 11,345,901	Special Reserve 107,546 - - - - 1,538,811 - - - 1,646,357 1,646,357 - - - - 175,647 - - - 1,822,004	Unappropriated Retained Earnings
		7,966,033 4,125,379 - 4,125,379 (649,986) (1,538,811) (5,381,213) - (626) 4,520,776 5,858,979 6,622,634 - 6,622,634 (546,296) (175,647) (4,663,718) (19,258) - 7,076,694

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

〜 6 〜

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

INVENTEC CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

For the Nine Months Ended September 30, 2020 and 2019

(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 losses of associates and joint ventures accounted for using equity method Gain on disposal of property, plant and equipment Gain on disposal of non-current assets held-for-sale Gain on disposal of investments accounted for using equity method Impairment loss on non-financial assets Unrealized foreign exchange gain Others Total adjustments to reconcile profit Changes in operating assets and liabilities: Changes in operating assets: Increase in financial assets at fair value through profit or loss, mandatorily measured at fair value (Increase) decrease in accounts receivable (Increase) decrease in other receivables Increase in inventories Increase in other current assets Total changes in operating assets Changes in operating liabilities: Increase in financial liabilities held for trading Increase (decrease) in contract liabilities Increase in accounts payable Decrease in other payables Increase (decrease) in other current liabilities Decrease in net defined benefit liabilities, non-current Total changes in operating liabilities Total changes in operating assets and liabilities Total adjustments Cash (outflow) inflow generated from operations Interest received Dividends received Interest paid Income taxes paid Net cash flows (used in) from operating activities	For the nine months ended September 30, 2020 2019 $ 9,531,028 4,852,523 2,233,900 2,374,224 624,241 784,523 62,681 9,543 846,179 1,373,066 (857,302) (1,006,734) (30,069) (20,829) 14,045 17,462 (4,739,995) (46,387) - (628,470) (24,435) - 103,300 313,612 (175,269) 27,692 (1,971) (15,377) (1,944,695) 3,182,325 (380,427) (122,955) (20,069,736) 1,526,324 (23,133) 1,265,700 (10,671,685) (3,537,091) (3,031,943) (345,296) (34,176,924) (1,213,318) 67,443 7,556 980,496 (218,879) 18,103,161 1,676,027 (1,207,647) (775,181) 2,292,108 (1,130,071) (35,441) (32,950) 20,200,120 (473,498) (13,976,804) (1,686,816) (15,921,499) 1,495,509 (6,390,471) 6,348,032 827,385 1,021,006 30,069 20,829 (785,147) (1,564,598) (2,016,777) (734,110) (8,334,941) 5,091,159
	2020 $ 9,531,028 2,233,900 624,241 62,681 846,179 (857,302) (30,069) 14,045 (4,739,995) - (24,435) 103,300 (175,269) (1,971) (1,944,695) (380,427) (20,069,736) (23,133) (10,671,685) (3,031,943) (34,176,924) 67,443 980,496 18,103,161 (1,207,647) 2,292,108 (35,441) 20,200,120 (13,976,804) (15,921,499) (6,390,471) 827,385 30,069 (785,147) (2,016,777) (8,334,941)

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 losses of associates and joint ventures accounted for using equity method
Gain on disposal of property, plant and equipment
Gain on disposal of non-current assets held-for-sale
Gain on disposal of investments accounted for using equity method
Impairment loss on non-financial assets
Unrealized foreign exchange gain
Others
Total adjustments to reconcile profit
Changes in operating assets and liabilities:
Changes in operating assets:
Increase in financial assets at fair value through profit or loss, mandatorily measured at fair value
(Increase) decrease in accounts receivable
(Increase) decrease in other receivables
Increase in inventories
Increase in other current assets
Total changes in operating assets
Changes in operating liabilities:
Increase in financial liabilities held for trading
Increase (decrease) in contract liabilities
Increase in accounts payable
Decrease in other payables
Increase (decrease) in other current liabilities
Decrease in net defined benefit liabilities, non-current
Total changes in operating liabilities
Total changes in operating assets and liabilities
Total adjustments
Cash (outflow) inflow generated from operations
Interest received
Dividends received
Interest paid
Income taxes paid
Net cash flows (used in) from operating activities

For the nine months ended
September 30,
2020
2019
$ 9,531,028
4,852,523
2,233,900
2,374,224
624,241
784,523
62,681
9,543
846,179
1,373,066
(857,302)
(1,006,734)
(30,069)
(20,829)
14,045
17,462
(4,739,995)
(46,387)
-
(628,470)
(24,435)
-
103,300
313,612
(175,269)
27,692
(1,971)
(15,377)
(1,944,695)
3,182,325
(380,427)
(122,955)
(20,069,736)
1,526,324
(23,133)
1,265,700
(10,671,685)
(3,537,091)
(3,031,943)
(345,296)
(34,176,924)
(1,213,318)
67,443
7,556
980,496
(218,879)
18,103,161
1,676,027
(1,207,647)
(775,181)
2,292,108
(1,130,071)
(35,441)
(32,950)
20,200,120
(473,498)
(13,976,804)
(1,686,816)
(15,921,499)
1,495,509
(6,390,471)
6,348,032
827,385
1,021,006
30,069
20,829
(785,147)
(1,564,598)
(2,016,777)
(734,110)
(8,334,941)
5,091,159

2020
$ 9,531,028
2,233,900
624,241
62,681
846,179
(857,302)
(30,069)
14,045
(4,739,995)
-
(24,435)
103,300
(175,269)
(1,971)
(1,944,695)
(380,427)
(20,069,736)
(23,133)
(10,671,685)
(3,031,943)
(34,176,924)
67,443
980,496
18,103,161
(1,207,647)
2,292,108
(35,441)
20,200,120
(13,976,804)
(15,921,499)
(6,390,471)
827,385
30,069
(785,147)
(2,016,777)
(8,334,941)

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

〜 7 〜

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

INVENTEC CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS (CONT'D)

For the Nine Months Ended September 30, 2020 and 2019

(Expressed in Thousands of New Taiwan Dollars)

Cash flows from investing activities:
Acquisition of financial assets at fair value through other comprehensive income
Proceeds from disposal of financial assets at fair value through other comprehensive income
Acquisition of financial assets at fair value through profit or loss
Proceeds from disposal of financial assets at fair value through profit or loss
Proceeds from disposal of non-current assets held for sale
Acquisition of property, plant and equipment
Proceeds from disposal of property, plant and equipment
Acquisition of intangible assets
Effect on loss of control over subsidiary's cash
Acquisition of investment properties
(Increase) decrease in other financial assets
Increase in other non-current assets
Net cash flows from (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 in other payables due to related parties
Payment of lease liabilities
Increase (decrease) in other non-current liabilities
Cash dividends paid
Change in non-controlling interests
Net cash flows from financing activities
Effect of exchange rate changes on cash and cash equivalents
Net increase in cash and cash equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period

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

〜 7-1 〜

(English Translation of Consolidated Financial Statements Originally Issued in Chinese)

REVIEWED ONLY, NOT AUDITED IN ACCORDANCE WITH GENERALLY ACCEPTED AUDITING STANDARDS INVENTEC CORPORATION AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

September 30, 2020 and 2019

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

(1) Overview

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

The consolidated financial statements of the Company as of and for the year ended September 30, 2020 comprised the Company and its subsidiaries (together referred to as the “ Group” and individually as “Group entities”). The Group primarily is involved in the developing, computer hardware and software products, manufacturing, processing and trading of computers and related products, and sale of wired and wireless communication and digital accessory products. Please refer to Note 4(b) for details.

(2) Financial Statements Authorization Date and Authorization Process

The consolidated financial statements were authorized for issuance by the Board of Directors on November 10, 2020.

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

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

The following new standards, interpretations and amendments have been endorsed by the FSC and are effective for annual periods beginning on or after January 1, 2020.

	Effective date
New, Revised or Amended Standards and Interpretations	per IASB
Amendments to IFRS 3 “Definition of a Business”	January 1, 2020
Amendments to IFRS 9, IAS39 and IFRS7 “Interest Rate Benchmark Reform”	January 1, 2020
Amendments to IAS 1 and IAS 8 “Definition of Material”	January 1, 2020
Amendments to IFRS 16 “Covid-19-Related Rent Concessions”	June 1, 2020

Except for the following items, the Group believes that the adoption of the above IFRSs would not have any material impact on its consolidated financial statements. The extent and impact of significant changes are as follows:

(i) Amendments to IFRS 16 “Covid-19-Related Rent Concessions”

As a practical expedient, a lessee may elect not to assess whether a rent concession that meets certain conditions is a lease modification, rather any changes in lease liability is recognized in profit or loss. The amendments have been endorsed by the FSC in July 2020, earlier application from January 1, 2020 is permitted. Related accounting policy is explained in Note 4(c).

〜 8 〜

(English Translation of Consolidated Financial Statements Originally Issued in Chinese)

REVIEWED ONLY, NOT AUDITED IN ACCORDANCE WITH GENERALLY ACCEPTED AUDITING STANDARDS INVENTEC CORPORATION AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT'D)

September 30, 2020 and 2019

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

The Group has elected to apply the practical expedient for all rent concessions that meet the criteria beginning January 1, 2020, with early adoption. No adjustment was made upon the initial application of the amendments. The amounts recognized in profit or loss for the three months and the nine months ended September 30, 2020 were 82 thousand and 5,163 thousand, respectively.

(b) The impact of IFRS issued by the FSC but not yet effective

The following new standards, interpretations and amendments have been endorsed by the FSC and are effective for annual periods beginning on or after January 1, 2021:

are effective for annual periods beginning on or after January 1, 2021:
	Effective date
New, Revised or Amended Standards and Interpretations	per IASB
Amendments to IFRS 4 “Extension of the Temporary Exemption from Applying	January 1, 2021
IFRS 9”

The Group assesses that the adoption of the abovementioned amendments would not have any material impact on its consolidated financial statements.

As of the date, the following IFRSs that have been issued by the International Accounting Standards Board (IASB), but have yet to be endorsed by the FSC:

Board (IASB), but have yet to be endorsed by the FSC:
	Effective date
New, Revised or Amended Standards and Interpretations	per IASB
Amendments to IFRS 10 and IAS 28 “Sale or Contribution of Assets Between	Effective date to
an Investor and Its Associate or Joint Venture”	be determined
	by IASB
IFRS 17 “Insurance Contracts”	January 1, 2023
Amendments to IAS 1 “Classification of Liabilities as Current or Non-current”	January 1, 2023
Amendments to IAS 16 “Property, Plant and Equipment`－`Proceeds before	January 1, 2022
Intended Use”
Amendments to IAS 37 “Onerous Contracts`－`Cost of Fulfilling a Contract”	January 1, 2022
Annual Improvements to IFRS Standards 2018-2020	January 1, 2022
Amendments to IFRS 3 “Reference to the Conceptual Framework”	January 1, 2022
Amendments to IFRS 17 “Insurance Contracts”	January 1, 2023
Amendments to IFRS 9, IAS39, IFRS7, IFRS 4 and IFRS 16 “Interest Rate	January 1, 2021
Benchmark Reform`－`Phase 2”

〜 9 〜

(English Translation of Consolidated Financial Statements Originally Issued in Chinese)

REVIEWED ONLY, NOT AUDITED IN ACCORDANCE WITH GENERALLY ACCEPTED AUDITING STANDARDS INVENTEC CORPORATION AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT'D)

September 30, 2020 and 2019

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

Those which may be relevant to the Group are set out below:

Issuance / Release
Dates
January 23, 2020

Standards or
Interpretations
Content of amendment
Amendments to IAS 1
“Classification of Liabilities as
Current or Non-current”
The amendments aim to promote consistency
in applying the requirements by helping
companies
determine
whether,
in
the
statement of balance sheet, debt and other
liabilities with an uncertain settlement date
should be classified as current (due or
potentially due to be settled within one year)
or non-current. The amendments include
clarifying the classification requirements for
debt a company might settle by converting it
into equity.

The Group is evaluating the impact of its initial adoption of the abovementioned standards or interpretations on its consolidated financial position and consolidated financial performance. The results thereof will be disclosed when the Group completes its evaluation.

(4) Summary of Significant Accounting Policies

(a) Statement of compliance

These consolidated financial statements have been prepared in accordance with the preparation and guidelines of IAS 34 “Interim Financial Reporting” which are endorsed and issued into effect by FSC, and do not include all of the information required by the Regulations and International Financial Reporting Standards, International Accounting Standards, IFRIC Interpretations and SIC Interpretations endorsed and issued into effect by the FSC (hereinafter referred to IFRS endorsed by the FSC) for a complete set of the annual consolidated financial statements.

Except the following accounting policies mentioned below, the significant accounting policies adopted in the consolidated financial statements are the same as those in the consolidated financial statement for the year ended December 31, 2019. For the related information, please refer to note 4 of the consolidated financial statements for the year ended December 31, 2019.

(b) Basis of consolidation
1.List of subsidiaries in the consolidated financial statements

Investor	Name of Subsidiary	Principal activity	Shareholding Rat	Shareholding Rat	io 2019.9.30 Note
			2020.9.30	2019.12.31
The Company `〞` `〞` `〞`	Inventec Corporation (Hong Kong) Ltd. Inventec Holding (North America) Corp. Inventec (Cayman) Corp. IEC (Cayman) Corporation	Investing in Mainland China and import and export business Investment of holding company in America Holding Company Holding Company	% 100.00 % 100.00 % 100.00 % 100.00	% 100.00 % 100.00 % 100.00 % 100.00	% 100.00 (Note 1) % 100.00 (Note 2) % 100.00 % 100.00 (Note 1)

〜 10 〜

(English Translation of Consolidated Financial Statements Originally Issued in Chinese)

REVIEWED ONLY, NOT AUDITED IN ACCORDANCE WITH GENERALLY ACCEPTED AUDITING STANDARDS INVENTEC CORPORATION AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT'D)

September 30, 2020 and 2019

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

Investor	Name of Subsidiary	Principal activity	Shareholding Rat	Shareholding Rat	io 2019.9.30 Note
			2020.9.30	2019.12.31
The Company `〞` `〞` `〞` `〞` `〞` The Company`、` Inventec Investments Co., Ltd. and Inventec Appliances Corp. The Company and Inventec Investments Co., Ltd. `〞` Inventec Corporation (Hong Kong) Ltd. `〞` Inventec (Cayman) Corp. and Inventec (Pudong) Technology Corp. `〞` Inventec (Cayman) Corp. `〞` `〞` `〞` `〞` `〞` `〞` Inventec (Cayman) Corp. and IEC (Cayman) Corporation Inventec (Shanghai) Corp. Inventec (Shanghai) Service Co., Ltd.	Inventec (Czech), s.r.o. Inventec Development Japan Corporation Inventec Investments Co., Ltd. AIMobile Co., Ltd. Inventec Japan Corporation Inventec Appliances Corp. Inventec Solar Energy Corporation E-TON Solar Tech. Co., Ltd Inventec Manufacturing (India) Private Limited Inventec Electronics (Tianjin) Co., Ltd. Inventec (Beijing) Electronics Technology Co., Ltd. Inventec (Shanghai) Corp. Inventec (Shanghai) Service Co., Ltd. Inventec (Pudong) Corp. Inventec (Pudong) Technology Corp. Inventec (Shanghai) Service Co., Ltd. Inventec Hi-Tech Corp. Inventec Huan Hsin (Zhejiang) Technology Co., Ltd. Inventec (Chongqing) Service Co., Ltd TPV-Inventa Holding Ltd. Inventec (Chongqing) Corp. Inventec Asset-Management (Shanghai) Corporation Saint Investment Consulting Corporation	Computer products assembly operations Developing, designing and selling computer peripherals Investment company Developing, production and selling of intelligent mobile devices Trading and management services Wireless terminal products Developing, production and selling of multi-crystalline solar cells Manufacturing and selling of solar cells Computer product assembles and warranty services Electronic product software and hardware development manufacturing `〞` Electronic product software and hardware development manufacturing `〞` `〞` `〞` `〞` `〞` Complete of the electronic computer and product and sale of external equipment Electronic product software and hardware development manufacturing Holding Company Assembly and sale of computer products Equipment leasing, Storage, technological development and sale of computer Business management consulting	% 100.00 % 100.00 % 100.00 % 55.00 % 100.00 % 100.00 % 47.65 % - % 100.00 % 100.00 % 100.00 % 100.00 % 100.00 % 100.00 % 100.00 % - % 100.00 % 100.00 % 100.00 % - % 100.00 % 78.00 % 100.00	% 100.00 % 100.00 % 100.00 % 55.00 % 100.00 % 100.00 % 47.65 % 34.65 % 100.00 % 100.00 % 100.00 % 100.00 % - % 100.00 % 100.00 % 100.00 % 100.00 % 100.00 % 100.00 % 90.00 % 100.00 % 78.00 % -	% 100.00 (Note 1) % 100.00 (Note 1) % 100.00 (Note 1) % 55.00 (Note 1) % 100.00 The subsidiary was established on August 29, 2019. (Note 1) % 100.00 (Note 2) % 47.65 (Note 1) % 34.65 E-ton decided to dismiss on March 26, 2020. It is currently in liquidation process. % 100.00 (Note 1) % 100.00 (Note 1) % 100.00 (Note 1) % 100.00 (Note 1) % - (Note 1) % 100.00 (Note 1) % 100.00 (Note 1) % 100.00 (Note 1) % 100.00 (Note 1) % 100.00 The subsidiary resolved to liquidate on July 28, 2020 and is currently in liquidation process. % 100.00 (Note 1) % 90.00 The cancellation of registration process was completed in March 27, 2020. % 100.00 % 78.00 (Note 1) % - The subsidiary was established on September 4, 2020, and Inventec (Shanghai) Service Co., Ltd. invested it on April 30, 2020. (Note 1)

〜 11 〜

(English Translation of Consolidated Financial Statements Originally Issued in Chinese)

REVIEWED ONLY, NOT AUDITED IN ACCORDANCE WITH GENERALLY ACCEPTED AUDITING STANDARDS INVENTEC CORPORATION AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT'D)

September 30, 2020 and 2019

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

Investor	Name of Subsidiary	Principal activity	Shareholding Rat	Shareholding Rat	io 2019.9.30 Note
			2020.9.30	2019.12.31
Inventec Holding (North America) Corp. `〞` `〞` `〞` Inventec Holding (North America) Corp. and Inventec Distribution (North America) Corporation Inventec Appliances Corp. Inventec Appliances (Cayman) Holding Corp. `〞` `〞` `〞` `〞` `〞` `〞` `〞` `〞` Inventec Appliances (Shanghai) Co., Ltd. `〞` `〞` Inventec Appliances (Pudong) Corp.	Inventec (USA) Corporation Inventec Manufacturing (North America) Corporation Inventec Configuration (North America) Corporation Inventec Distribution (North America) Corporation IEC Technologies, S. de R.L. de C.V. Inventec Appliances (Cayman) Holding Corp. Inventec Appliances (USA) Distribution Corp. Inventec Appliances Corporation USA, Inc. Inventec Appliances (Shanghai) Co., Ltd. Inventec Appliances (Pudong) Corp. Inventec Appliances (Jiangning) Corp. Inventec Appliances (Nanjing) Corp. Inventec Appliances (XI'AN) Corporation Inventec Appliances (Nanchang) Corporation Inventec Appliances (Malaysia) SDN. BHD. Inventec Appliances (Shanghai) Enterprise Co., Ltd. APEX Business Management & Consulting (Shanghai) Co., Ltd. Inventec Appliances (Nanchang) Intelligent Manufacturing Co., Ltd. Inventec Appliances (Malaysia) SDN. BHD.	Computer product assembles `〞` `〞` `〞` `〞` Holding Company Marketing promotion Sale of electronics products Telecommunication research Electronic communication and products manufacturing `〞` House leasing Telecommunication research and service `〞` Manufacture and sale of electronic materials and products Development and consultation on software and hardware; as well as selling of electronic products Business management Manufacture of wearable devices and developing, design, manufacture and sale of telecommunications Manufacture and sale of electronic materials and products	% 100.00 % 100.00 % 100.00 % 100.00 % 100.00 % 100.00 % 100.00 % 100.00 % 100.00 % 100.00 % 100.00 % 100.00 % 100.00 % 100.00 % - % 100.00 % 100.00 % 100.00 % 100.00	% 100.00 % 100.00 % 100.00 % 100.00 % 100.00 % 100.00 % 100.00 % 100.00 % 100.00 % 100.00 % 100.00 % 100.00 % 100.00 % 100.00 % 100.00 % 100.00 % 100.00 % 100.00 % -	% 100.00 (Note 1) % 100.00 (Note 1) % 100.00 (Note 1) % 100.00 (Note 1) % 100.00 (Note 1) % 100.00 (Note 1) % 100.00 (Note 1) % 100.00 (Note 1) % 100.00 (Note 1) % 100.00 (Note 1) % 100.00 (Note 1) % 100.00 (Note 1) % 100.00 (Note 1) % 100.00 (Note 1) % 100.00 Transferred 100% shares to Inventec Appliances (Pudong) Corp. on July 20, 2020. (Note 1) % 100.00 (Note 1) % 100.00 (Note 1) % 100.00 (Note 1) % - Acquired 100% shares from Inventec Appliances (Cayman) Holding Corp. on July 20, 2020. (Note 1)

Note 1: The Company is a non-significant subsidiaries, its financial statements have not been reviewed.

Note 2: The Company is a non-significant subsidiaries, its financial statements have been reviewed.

2.Subsidiaries excluded from the consolidated financial statements: None.

〜 12 〜

(English Translation of Consolidated Financial Statements Originally Issued in Chinese)

REVIEWED ONLY, NOT AUDITED IN ACCORDANCE WITH GENERALLY ACCEPTED AUDITING STANDARDS INVENTEC CORPORATION AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT'D)

September 30, 2020 and 2019

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

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

(i) the rent concessions occurring as a direct con sequence of the covid-19 pandemic;
(ii) the change in lease payments that results in revised consideration for the lease that is substantially the same as, or less than, the consideration for the lease immediately preceding the change;
(iii) any reduction in lease payments affects only payments originally due on or before 30 June 2021; and
(iv) there is no substantive change in other terms and conditions of the lease.

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

(d) Income taxes

The income tax expenses have been prepared and disclosed in accordance with paragraph B12 of International Financial Reporting Standards 34, Interim Reporting.

Income tax expenses for the period are best estimated by multiplying pre-tax income for the interim reporting period by the effective annual tax rate as forecasted by the management. This should be recognized fully as tax expense for the current period.

Temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and their respective tax bases shall be measured based on the tax rates that have been enacted or substantively enacted at the time of the asset or liability is recovered or settled, and be recognized directly in equity or other comprehensive income as tax expense.

(e) Employee benefits

The pension cost in the interim period was calculated and disclosed on a year-to-date basis by using the actuarially determined pension cost rate at the end of the prior fiscal year.

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

The preparation of the consolidated financial statements in conformity with the Regulations and IFRSs (in accordance with IAS 34 “Interim Financial Reporting” and endorsed by the FSC) requires management to make judgments, estimates and assumptions that affect the application of the accounting policies and the reported amount of assets, liabilities, income and expenses. Actual results may differ from these estimates.

〜 13 〜

(English Translation of Consolidated Financial Statements Originally Issued in Chinese)

REVIEWED ONLY, NOT AUDITED IN ACCORDANCE WITH GENERALLY ACCEPTED AUDITING STANDARDS INVENTEC CORPORATION AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT'D)

September 30, 2020 and 2019

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

The preparation of the consolidated interim financial statements, estimates and underlying assumptions are reviewed on an ongoing basis which are in conformity with the consolidated financial statements for the year ended December 31, 2019. For the related information, please refer to note 5 of the consolidated financial statements for the year ended December 31, 2019.

(a) Judgment on existence of substantial control over investee

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

(6) Explanation to Significant Accounts

Except for the following disclosures, there is no significant difference as compared with those disclosed in the consolidated financial statements for the year ended December 31, 2019. Please refer to Note (6) of the 2019 annual consolidated financial statements.

(a) Cash and cash equivalents

Cash Demand deposits and checking accounts Time deposits Cash and cash equivalents in consolidated statement of cash flows	2020.9.30 $ 7,155 21,519,973 5,180,201 $ 26,707,329	2019.12.31 9,416 16,249,163 2,694,388 18,952,967	2019.9.30
			5,614 17,890,574 8,434,629
			26,330,817

(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 Derivative instruments not used for hedging Forward exchange contracts Foreign exchange swap Non-derivative financial assets Stocks of listed companies Stocks of unlisted companies Unquoted financial instruments Unsecured convertible bonds Total	2020.9.30 $ 87,506 232,896 112,511 220,441 2,551,863 27,486 $ 3,232,703	2019.12.31 - 125,305 115,909 - 3,660,455 56,799 3,958,468	2019.9.30
			18,151 5,425 88,929 - 2,575,058 63,686
			2,751,249

〜 14 〜

(English Translation of Consolidated Financial Statements Originally Issued in Chinese)

REVIEWED ONLY, NOT AUDITED IN ACCORDANCE WITH GENERALLY ACCEPTED AUDITING STANDARDS INVENTEC CORPORATION AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT'D)

September 30, 2020 and 2019

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

Financial liabilities at fair value through profit or loss Held-for-trading financial liabilities Forward exchange contracts Foreign exchange swap Total	2020.9.30 $ 174,959 - $ 174,959	2019.12.31 108,175 - 108,175	2019.9.30
			5,649 6,866
			12,515

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

1) Financial assets:

Foreign exchange swap Forward Forward Foreign exchange swap Forward Forward Forward Foreign exchange swap		2020.9.30
	Contract Amount USD 685,000 USD 40,000 USD 127,000	Currency Maturity Period USD to TWD 2020.10.07-2020.12.28 USD to TWD 2020.10.07-2020.12.28 USD to CNY 2020.10.30-2020.12.31 2019.12.31
	Contract Amount USD 335,000	Currency Maturity Period USD to TWD 2020.02.18-2020.03.18 2019.9.30
	Contract Amount USD 100,000 USD 20,000 USD 2,000 USD 40,000	Currency Maturity Period USD to TWD 2019.10.21-2019.11.06 USD to CNY 2019.10.21 USD to JPY 2019.10.21 USD to TWD 2019.10.15-2019.10.17

〜 15 〜

(English Translation of Consolidated Financial Statements Originally Issued in Chinese)

REVIEWED ONLY, NOT AUDITED IN ACCORDANCE WITH GENERALLY ACCEPTED AUDITING STANDARDS INVENTEC CORPORATION AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT'D)

September 30, 2020 and 2019

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

2) Financial liabilities:

2020.9.30

Forward Forward Forward Forward Forward Foreign exchange swap	Contract Amount USD 645,000 USD 15,000 USD 28,306	Currency Maturity Period USD to TWD 2020.10.08-2020.12.22 USD to CNY 2020.12.30 USD to CNY 2021.07.05 2019.12.31
	Contract Amount USD 335,000	Currency Maturity Period USD to TWD 2020.02.18-2020.03.18 2019.9.30
	Contract Amount USD 60,000 USD 80,000	Currency Maturity Period USD to TWD 2019.10.15-2019.10.21 USD to TWD 2019.10.22-2019.11.06

2.Financial assets at fair value through other comprehensive income

Equity investments at fair value through other comprehensive income Stocks listed on domestic markets Stocks not listed on domestic markets Total	2020.9.30 $ 1,281,969 3,792,660 $ 5,074,629	2019.12.31 1,323,651 2,114,517 3,438,168	2019.9.30
			1,210,793 281,799
			1,492,592

1) Equity investments at fair value through other comprehensive income

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

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

3) As of September 30, 2020, the aforesaid financial assets were not pledged as collateral.

〜 16 〜

(English Translation of Consolidated Financial Statements Originally Issued in Chinese)

REVIEWED ONLY, NOT AUDITED IN ACCORDANCE WITH GENERALLY ACCEPTED AUDITING STANDARDS INVENTEC CORPORATION AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT'D)

September 30, 2020 and 2019

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

Accounts receivable- non-related parties Accounts receivable- related parties Less: Loss allowance	2020.9.30 $ 107,645,904 8,447 (128,254) $ 107,526,097	2019.12.31 88,594,198 - (102,855) 88,491,343	2019.9.30 89,359,434 - (129,441) 89,229,993

The Group has assessed a portion of its trade receivables that was held within a business model whose objective is achieved by both collecting contractual cash flows and selling financial assets; therefore, such trade receivables were measured at fair value through other comprehensive income. As of September 30, 2020, December 31, 2019, and September 30, 2019, the amounts of trade receivables measured at fair value through other comprehensive income were $902,529, $3,061,165 and $34,449,633, respectively.

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

	2020.9.30
Gross carrying amount $ 105,488,866 2,156,712 8,773 $ 107,654,351	Weighted- average 0%~1% 0.04%~10% 0.04%~100%	Loss allowance provision
		98,517 23,024 6,713
		128,254

As of the end of October 27, 2020, the amount that received by the Group is $29,164,086.

	2019.12.31
Gross carrying amount $ 84,510,859 3,963,098 120,241 $ 88,594,198	Weighted- average 0%~1% 0.04%~10% 0.04%~100%	Loss allowance provision
		89,828 11,504 1,523
		102,855

〜 17 〜

(English Translation of Consolidated Financial Statements Originally Issued in Chinese)

REVIEWED ONLY, NOT AUDITED IN ACCORDANCE WITH GENERALLY ACCEPTED AUDITING STANDARDS INVENTEC CORPORATION AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT'D)

September 30, 2020 and 2019

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

	2019.9.30
Gross carrying amount $ 86,387,447 2,818,043 153,944 $ 89,359,434	Weighted- average 0%~1% 0.04%~10% 0.04%~100%	Loss allowance provision
		110,412 6,549 12,480
		129,441

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

		For the nine months	ended
		September 30,
		2020	2019
Balance at January 1, 2020 and 2019	$	102,855	120,009
Impairment losses recognized		25,441	9,543
Foreign exchange losses		(42)	(111)
Balance at September 30, 2020 and 2019	$	128,254	129,441

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

As of September 30, 2020, December 31, 2019 and September 30, 2019, none of the receivables above are pledged as collateral for loans and borrowings.

As of September 30, 2020, December 31, 2019 and September 30, 2019, the Group sold its accounts receivable without recourse as follows:

(Unit: Foreign currency/TWD in Thousands)

2020.9.30

		2020.9.30
Purchaser	Amount Derecognized	Amount Advanced Unpaid Paid USD 5,730 Note USD1,033,288	Amount Recognized in other Receivable -	Range of Significant Transferring Interest Rate Terms 1.07%~1.62% The accounts receivable factoring is without recourse but the seller still bears the risks except for eligible obligor’s insolvency.
		Unpaid USD 5,730 Note USD
Non-related parties	$ 30,068,684

〜 18 〜

(English Translation of Consolidated Financial Statements Originally Issued in Chinese)

REVIEWED ONLY, NOT AUDITED IN ACCORDANCE WITH GENERALLY ACCEPTED AUDITING STANDARDS INVENTEC CORPORATION AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT'D)

September 30, 2020 and 2019

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

		2019.12.31
Purchaser	Amount Derecognized	Amount Advanced Unpaid Paid Note USD 863,028	Amount Recognized in other Receivable -	Range of Significant Transferring Interest Rate Terms 2.58%~2.74% The accounts receivable factoring is without recourse but the seller still bears the risks except for eligible obligor’s insolvency.
Non-related parties	$ 25,959,896

		2019.9.30
Purchaser	Amount Derecognized	Amount Advanced Unpaid Paid Note USD 722,524	Amount Recognized in other Receivable -	Range of Significant Transferring Interest Rate Terms 2.89%~3.25% The accounts receivable factoring is without recourse but the seller still bears the risks except for eligible obligor’s insolvency.
Non-related parties	$ 22,376,574

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

(d) Other receivables

Other accounts receivable`－`related parties Other accounts receivable`－`non-related parties (e) Inventories Raw materials and consumables Work in process Finished goods Materials and supplies in transit	2020.9.30 $ 2,610 785,340 $ 787,950 2020.9.30 $ 34,300,250 8,414,847 3,926,897 35,865 $ 46,677,859	2019.12.31 1,305 753,670 754,975 2019.12.31 24,313,559 8,709,279 4,288,687 34,017 37,345,542	2019.9.30
			- 893,792
			893,792
			2019.9.30
			28,613,736 9,741,378 8,158,642 4,979
			46,518,735

〜 19 〜

(English Translation of Consolidated Financial Statements Originally Issued in Chinese)

REVIEWED ONLY, NOT AUDITED IN ACCORDANCE WITH GENERALLY ACCEPTED AUDITING STANDARDS INVENTEC CORPORATION AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT'D)

September 30, 2020 and 2019

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

For the three months and nine months ended September 30, 2020 and 2019, the (write-up) writedown of inventories amounted to $197,644, $(241,201), $132,046 and $(391,932), respectively. When the factor causing the net realizable value to be lower than the cost is disappeared due to obsolescence or disposal, the increase of the net realizable value is recognized in deduction of operating cost. In addition, loss on inventory valuation and obsolescence is due to obsolescence or out of use, which causes the net realizable value to be lower than the cost. Loss on inventory valuation and obsolescence is due to obsolescence or out of use, which causes the net realizable value to be lower than the cost. Loss on inventory valuation and obsolescence is recognized in operating cost. For the three months and nine months ended September 30, 2020 and 2019, expenses of idle capacity amounted to $96,636, $48,179, $195,543, and $182,781, respectively.

As of September 30, 2020, December 31, 2019 and September 30, 2019, the aforesaid inventories were not pledged as collateral.

(f) Investments accounted for using equity method

The investment using equity method was as follows:

Associate	2020.9.30 $ 220,218	2019.12.31 247,194	2019.9.30
			256,758

As of September 30, 2020, December 31, 2019 and September 30, 2019, the Group’s investments under equity method has not been pledged as collaterals.

Except for Inventec Besta Co., Ltd., investments were accounted for by the equity method, and the share of profit or loss and other comprehensive income of those investments were calculated based on the financial statements that have not been reviewed.

(g) Loss control of subsidiaries

The meeting of shareholders of E-Ton decided to dismiss their respective companies in 2020. It is currently in liquidation process. As a result, The Group lose control of these subsidiaries.

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

Cash and cash equivalents	$	5,710
Property, plant and equipment		302,951
Investment property		1,026,336
Other receivables		40
Other current assets		27,253
Other assets		239,358
Accounts 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

〜 20 〜

(English Translation of Consolidated Financial Statements Originally Issued in Chinese)

REVIEWED ONLY, NOT AUDITED IN ACCORDANCE WITH GENERALLY ACCEPTED AUDITING STANDARDS INVENTEC CORPORATION AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT'D)

September 30, 2020 and 2019

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

(h) Property, plant and equipment

The cost, depreciation, and impairment of the property, plant and equipment of the Group for the nine months ended September 30, 2020 and 2019 were as follows:

Land	Building and construction	Machinery and equipment	Transportation equipment	Office equipment	Other facilities	Leasehold improvements	Others	Total
$ 7,884,298 - - (99,541) -	20,800,616 3,713 (1,925,498) (1,413,577) (223,407)	24,774,688 800,463 (2,133,592) (2,137,126) (267,668)	103,832 136 - - (1,057)	5,325,639 326,174 (368,147) (10,232) (79,444)	10,517,913 145,964 (1,918,575) 116,065 (118,571)	665,838 4,771 (2,372) (291,473) (14,738)	1,851,731 692,970 - (632,788) (14,152)	71,924,555 1,974,191 (6,348,184) (4,468,672) (719,037)
$ 7,784,757	17,241,847	21,036,765	102,911	5,193,990	8,742,796	362,026	1,897,761	62,362,853
$ 6,723,319 - - - -	21,223,870 4,447 - 945 (179,576)	26,824,079 895,995 (2,100,260) 69,064 (86,922)	107,596 4,976 (5,806) - (915)	5,301,457 280,013 (185,746) - (1,951)	10,607,750 100,699 (65,483) 45,511 (88,692)	1,448,410 25,165 (1,946) 193 (4,660)	895,871 489,281 - (40,304) 973	73,132,352 1,800,576 (2,359,241) 75,409 (361,743)
$ 6,723,319	21,049,686	25,601,956	105,851	5,393,773	10,599,785	1,467,162	1,345,821	72,287,353
$ 10,231 - - - (10,231) -	6,653,767 296,325 (1,350,997) - (1,199,936) (67,610)	20,714,397 927,168 (1,800,387) 103,164 (2,338,422) (220,847)	71,883 8,977 - - - (754)	4,683,815 286,280 (399,513) - (16,142) (64,272)	8,540,656 450,345 (1,923,442) 136 (13,414) (112,232)	520,348 35,056 (2,043) - (291,473) (9,106)	- - - - - -	41,195,097 2,004,151 (5,476,382) 103,300 (3,869,618) (474,821)
$ -	4,331,549	17,385,073	80,106	4,490,168	6,942,049	252,782	-	33,481,727
$ 9,183 - - - -	6,358,805 337,381 - 945 (71,571)	22,157,507 1,061,639 (2,100,360) 255,340 (76,946)	67,329 10,515 (5,624) - (730)	4,632,500 279,888 (175,122) - (2,679)	8,276,131 443,404 (65,120) 5,978 (86,341)	1,306,381 25,521 (1,912) 292 (2,258)	- - - - -	42,807,836 2,158,348 (2,348,138) 262,555 (240,525)
$ 9,183	6,625,560	21,297,180	71,490	4,734,587	8,574,052	1,328,024	-	42,640,076
$ 7,874,067	14,146,849	4,060,291	31,949	641,824	1,977,257	145,490	1,851,731	30,729,458
$ 7,784,757	12,910,298	3,651,692	22,805	703,822	1,800,747	109,244	1,897,761	28,881,126
$ 6,714,136	14,865,065	4,666,572	40,267	668,957	2,331,619	142,029	895,871	30,324,516
$ 6,714,136	14,424,126	4,304,776	34,361	659,186	2,025,733	139,138	1,345,821	29,647,277

As of September 30, 2020, December 31, 2019, and September 30, 2019, the property, plant and equipment were pledged as collateral, please refer to Note 8. The Group performed an impairment test on its property, plant and equipment, based on the experience of the past and actual operating result, the discontinued rate used in September 30, 2020 and December 31, 2019 were 10.89% and 10.50%. Thus, the Group adopted the value in use as its recoverable amount, and recognized the impairment losses based on the differences between the book values and the recoverable amounts of the property, plant and equipment. For September 30, 2020 and December 31, 2019, the impairment losses were $103,300 and $30,256 respectively.

〜 21 〜

(English Translation of Consolidated Financial Statements Originally Issued in Chinese)

REVIEWED ONLY, NOT AUDITED IN ACCORDANCE WITH GENERALLY ACCEPTED AUDITING STANDARDS INVENTEC CORPORATION AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT'D)

September 30, 2020 and 2019

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

The meeting of shareholders of E-Ton decided to discontinue its business of solar cell manufacturing and dispose of related assets on June 21, 2019. Besides, E-Ton reassessed the impairment and additionally recognized $263,603 and $262,555 on impairment loss of related assets for the ended December 31, 2019 and nine months ended September 30, 2019.

Inventec (Pudong) Co., Ltd. disposed its plant and property on January 16, 2020, please refer to Note 13 for related information.

(i) Right-of-use assets

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

Cost: Original balance as of January 1, 2020 Additions Termination before the expiration Others Effect of changes in foreign exchange rates Balance as of September 30, 2020 Balance as of January 1, 2019 Additions Termination before the expiration Effect of changes in foreign exchange rates Balance as of September 30,2019 Accumulated depreciation and impairment losses: Original balance as of January 1, 2020 Depreciation for the year Termination before the expiration Others Effect of changes in foreign exchange rates Balance as of September 30, 2020 Balance as of January 1, 2019 Depreciation for the year Termination before the expiration Effect of changes in foreign exchange rates Balance as of September 30,2019 Carrying amount: Balance at January 1, 2020 Balance at September 30, 2020 Balance at January 1, 2019 Balance at September 30, 2019	Land $ 2,594,248 4,427 (187,845) 75,434 (32,036) $ 2,454,228 $ 2,834,870 2,433 - (51,788) $ 2,785,515 $ 87,481 53,648 (32,671) (10,768) (6,204) $ 91,486 $ - 78,495 - (8,280) $ 70,215 $ 2,506,767 $ 2,362,742 $ 2,834,870 $ 2,715,300	Buildings 1,199,936 51,643 (1,016) 103,304 (9,866) 1,344,001 739,876 143,334 (1,413) (14,368) 867,429 174,934 158,639 - - (7,822) 325,751 - 126,512 - (2,134) 124,378 1,025,002 1,018,250 739,876 743,051	Vehicles 15,368 3,205 (182) (2,914) (72) 15,405 8,232 5,440 - 10 13,682 4,658 4,188 (182) (1,053) (36) 7,575 - 3,173 - - 3,173 10,710 7,830 8,232 10,509	Other 5,087 - - - (22) 5,065 6,126 - (687) 6 5,445 1,440 1,014 - - (18) 2,436 - 1,266 (67) - 1,199 3,647 2,629 6,126 4,246	Total 3,814,639 59,275 (189,043) 175,824 (41,996)
					3,818,699
					3,589,104 151,207 (2,100) (66,140)
					3,672,071
					268,513 217,489 (32,853) (11,821) (14,080)
					427,248
					- 209,446 (67) (10,414)
					198,965
					3,546,126
					3,391,451
					3,589,104
					3,473,106

〜 22 〜

(English Translation of Consolidated Financial Statements Originally Issued in Chinese)

REVIEWED ONLY, NOT AUDITED IN ACCORDANCE WITH GENERALLY ACCEPTED AUDITING STANDARDS INVENTEC CORPORATION AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT'D)

September 30, 2020 and 2019

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

(j) Investment property

Carrying amounts: Balance at January 1, 2020 Balance at September 30, 2020 Balance at January 1, 2019 Balance at September 30, 2019	Building and construction
	$ 693,315 $ - $ 740,269 $ 705,577

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

There were no significant purchase, disposal, impairment loss or reversal gain on investment property for the nine months ended September 30, 2019. Please refer to Note 12(a) for the details of depreciation on investment property, and to Note 6(i) of the consolidated financial statements for the year ended December 31, 2019 for other related information.

Please refer to Note 8 for the information of the Group’s investment property pledged as collateral as of December 31, 2019, and September 30, 2019.

(k) Intangible assets

The costs of intangible assets, amortization, and impairment loss of the Group for the nine months ended September 30, 2020 and 2019 were as follows:

Carrying amounts: Balance at January 1, 2020 Balance at September 30, 2020 Balance at January 1, 2019 Balance at September 30, 2019	Goodwill $ 808,420 $ 808,420 $ 808,420 $ 808,420	Software cost 72,354 81,432 76,887 95,186	Total
			880,774
			889,852
			885,307
			903,606

〜 23 〜

(English Translation of Consolidated Financial Statements Originally Issued in Chinese)

REVIEWED ONLY, NOT AUDITED IN ACCORDANCE WITH GENERALLY ACCEPTED AUDITING STANDARDS INVENTEC CORPORATION AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT'D)

September 30, 2020 and 2019

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

For the nine months ended September 30, 2020 and 2019, there were no significant additions, disposal, recognition or reversal of impairment loss on intangible assets. Please refer to Note 12(a) for the details of amortization of intangible assets, and to Note 6(j) of the consolidated financial statements for the year ended December 31, 2019 for other related information.

As of September 30, 2020, December 31, 2019, and September 30, 2019, the aforesaid intangible assets were not pledged as collateral.

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

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

Refundable deposits Prepayments to suppliers Restricted assets Deferred Tax assets Payments for other Others	2020.9.30 $ 64,103 30,623 1,469,562 1,755,579 2,282,862 2,617,030 $ 8,219,759	2019.12.31 173,802 6,724 64,081 1,653,148 - 2,156,768 4,054,523	2019.9.30
			180,574 16,355 24,105 1,617,077 - 1,938,487
			3,776,598

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

As of September 30, 2020, December 31, 2019, and September 30, 2019, the details of other noncurrent assets were pledged as collateral, please refer to Note 8.

(m) Long-term and short-term borrowings

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

Secured bank loans Unsecured bank loans Total Current Non-current Total Unused credit line			2020.9.30
	Interest Rate	Currency	Maturity Date Amount 2031.02.26 $ 3,125,000 2024.02.14 520,731 2020.10.22~2020.10.30 582,000 2020.10.07~2021.05.31 9,840,107 2020.10.06~2021.06.04 33,731,621 2021.05.31 3,484 $ 47,802,943 $ 44,457,212 3,345,731 $ 47,802,943 $ 59,725,865
	0.80%~5.23% 0.56%~2.90%	TWD CNY USD TWD USD EUR

〜 24 〜

(English Translation of Consolidated Financial Statements Originally Issued in Chinese)

REVIEWED ONLY, NOT AUDITED IN ACCORDANCE WITH GENERALLY ACCEPTED AUDITING STANDARDS INVENTEC CORPORATION AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT'D)

September 30, 2020 and 2019

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

	2019.12.31	2019.12.31	2019.12.31
Interest Rate	Currency	Maturity Date Amount 2031.02.26 $ 3,350,000 2024.02.14 833,134 2020.01.03~2020.07.25 5,847,701 2020.01.03~2020.11.17 19,377,878 $ 29,408,713 $ 25,525,579 3,883,134 $ 29,408,713 $ 75,851,186 2019.9.30
1.44%~5.23% 0.65%~3.79%	TWD CNY TWD USD

Interest Rate	Currency	Maturity Date Amount 2031.02.26 $ 3,425,000 2024.02.14 617,195 2019.10.02~2020.07.25 6,652,589 2019.10.01~2020.08.11 27,216,356 $ 37,911,140 $ 34,168,945 3,742,195 $ 37,911,140 $ 64,153,401	Amount
1.44%~5.23% 0.63%~4.08%	TWD CNY TWD USD

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

2.Contract of bank loans

According to the “Key points for the Ministry of Economic Affairs to Assist Enterprises in Bank Credit and Debt Negotiations” , Inventec Solar Energy Corporation applied to the Industrial Development Bureau for Claims and liability negotiation on April 7, 2020, requesting a one year extension of repayment period for its long and short-term loans. The approval of more than half of the total creditor bank claims on June 10, 2020 was based on the bank meetings held on April 30, and May 18, 2020.

〜 25 〜

(English Translation of Consolidated Financial Statements Originally Issued in Chinese)

REVIEWED ONLY, NOT AUDITED IN ACCORDANCE WITH GENERALLY ACCEPTED AUDITING STANDARDS INVENTEC CORPORATION AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT'D)

September 30, 2020 and 2019

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

During the extension period due on May 31, 2021, the financial restraints will not be calculated. On the other hand, the interest rate for borrowing in Taiwan dollars is calculated at the rate of 1.50% (but not lower than the interest on advances from major shareholders), and the interest rate for borrowing in US dollars is calculated at the rate of 2.20%.

(n) Lease liabilities

The Group lease liabilities were as follows:

Current Non-current	2020.9.30 $ 193,301 $ 783,001	2019.12.31 200,289 976,791	2019.9.30
			188,384
			868,165

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

The amounts recognized in profit or loss were as follows:

For the three months ended September 30, 2020 2019 $ 8,246 8,808 $ 8,902 19,822 $ 4,641 22,776 $ 21,601 2,273 $ 82 -	For the nine months ended September 30, 2020 2019 22,007 24,210 36,944 60,911 24,402 52,809 36,208 5,710 5,163 -	For the nine months ended September 30, 2020 2019 22,007 24,210 36,944 60,911 24,402 52,809 36,208 5,710 5,163 -
2020	2020 22,007 36,944 24,402 36,208 5,163
$ 8,246 $ 8,902 $ 4,641 $ 21,601 $ 82		24,210 60,911 52,809 5,710 -

〜 26 〜

(English Translation of Consolidated Financial Statements Originally Issued in Chinese)

REVIEWED ONLY, NOT AUDITED IN ACCORDANCE WITH GENERALLY ACCEPTED AUDITING STANDARDS INVENTEC CORPORATION AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT'D)

September 30, 2020 and 2019

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

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

The amounts recognized in the statement of cash flows for the	Group were as follows:	Group were as follows:
Total cash outflow for leases	For the nine months ended September 30,
	2020 $ 266,156	2019
		298,467

1. Real estate leases

As of September 30, 2020, the Group leases land and buildings for its office space and plants. The leases of office space typically run for 2 to 13 years. Some leases include an option to renew the lease for an additional period of the same duration after the end of the contract term.

Some leases of equipment contain extension or cancellation options exercisable by the Group up to one year before the end of the non-cancellable contract period. These leases are negotiated and monitored by local management, and accordingly, contain a wide range of different terms and conditions. The extension options held are exercisable only by the Group and not by the lessors. In which lessee is not reasonably certain to use an optional extended lease term, payments associated with the optional period are not included within lease liabilities.

Other leases

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

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

(o) Operating Leases

For the nine months ended September 30, 2020, there were no significant changes on lease contracts. Please refer to Note 6(n) of the consolidated financial statements for the year ended December 31, 2019 for other related information.

(p) Employee benefits
1.Defined benefit plans

Management believes that there was no material volatility of the market, no material reimbursement and settlement or other material one-time events since prior fiscal year. As a result, the pension cost in the accompanying interim consolidated financial statements was measured and disclosed according to the actuarial report as of December 31, 2019 and 2018.

〜 27 〜

(English Translation of Consolidated Financial Statements Originally Issued in Chinese)

REVIEWED ONLY, NOT AUDITED IN ACCORDANCE WITH GENERALLY ACCEPTED AUDITING STANDARDS INVENTEC CORPORATION AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT'D)

September 30, 2020 and 2019

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

The expenses recognized in profit or loss for the Group were as follows:

For the three months ended September 30, 2020 2019 $ 428 448 486 545 1,120 1,308 2,291 2,651 $ 4,325 4,952	For the nine months ended September 30,	For the nine months ended September 30,
2020 $ 428 486 1,120 2,291 $ 4,325	2020 1,325 1,400 3,284 6,967 12,976	2019
		1,351 1,643 3,928 7,936
		14,858

2.Defined contribution plans

The pension costs incurred from the contributions to the Bureau of the Labor Insurance amounted to $63,756, $63,290, $191,965 and $188,644 for the three months and nine months ended September 30, 2020 and 2019, respectively.

The pension expenses contributed by the foreign entities following the local regulations amounted to $207,040, $396,272, $542,854 and $1,230,615 for the three months and nine months ended September 30, 2020 and 2019, respectively.

(q) Income taxes

Income tax expense for the year is estimated by multiplying the pretax income for the interim reporting period using the effective annual tax rate as forecasted by the management.

1.The components of income tax expense (gain) for the three months and nine months ended September 30, 2020 and 2019 were as follows:

Current tax expense Current period	For the three months ended September 30, 2020 2019 $ 549,598 496,973	For the nine months ended September 30,	For the nine months ended September 30,
	2020 $ 549,598	2020 3,333,135	2019
			1,307,659

For the nine months ended September 30, 2020 and 2019, there were no income tax recognized in equity and other comprehensive income.

2.Income Tax approval

The Company’s income tax returns through 2016 have been examined and approved by the Tax Authority.

(r) Capital and reserves

Except for the following disclosure, there was no significant change for capital and other equity for the nine months ended September 30, 2020 and 2019. For the related information, please refer to note 6(q) of the consolidated financial statements for the year ended December 31, 2019.

〜 28 〜

(English Translation of Consolidated Financial Statements Originally Issued in Chinese)

REVIEWED ONLY, NOT AUDITED IN ACCORDANCE WITH GENERALLY ACCEPTED AUDITING STANDARDS INVENTEC CORPORATION AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT'D)

September 30, 2020 and 2019

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

1.Retained earnings

The Company’s articles of incorporation require that after-tax earnings shall first be offset against any deficit, and 10% of the rest be set aside as legal reserve. The appropriation for legal reserve is discontinued when the balance of the legal reserve equals the total authorized capital. Special reserve may be appropriated for operations or to meet regulations. The remaining earnings, if any, may be appropriated for operations according to the proposal, and the distributed dividends may not be lower than 10% of the earnings. Surplus distribution based on issuance of new shares approved by the Board of Directors, should be resolved during the shareholder's meeting. In consideration of the Company’ s long-term operating plan, funding needs, and 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 Company act, the Company authorizes the Board of Directors, with more than two thirds of attendance and over half of those attendees, to resolve the distribution of dividends and bonuses, or one or both of the legal reserves and additional paid-in capital specified by the Company act, Article 241, in the form of cash; thereafter, to be reported during the shareholders’ meeting.

1) Legal reserve

In accordance with the ROC Company Act, 10 percent of net income should be set aside as legal reserve, until it is equal to share capital. If the Company experienced profit for the year, the meeting of shareholders shall decide on the distribution of the statutory earnings reserve either by new shares or by cash, of up to 25 percent of the actual share capital.

2) Special reserve

In accordance with Permit No.1010012865 as issued by the Financial Supervisory Commission on April 6, 2012, a special reserve equal to the contra account of other shareholders' equity is appropriated from the current and prior period earnings. When the debit balance of any of the contra accounts in the shareholders' equity is reversed, the related special reserve can be reversed. The subsequent reversals of the contra accounts in shareholders' equity shall qualify for additional distributions.

3) Earnings Distribution

On March 24, 2020, the Company’s board of directors resolved to distribute the 2019 earnings. On June 14, 2019, the shareholder’s meetings resolved to distribute the 2018 earnings. These earnings were appropriated for distribution as follows:

Dividends distributed to ordinary shareholders Cash	2019 Amount $ 4,663,718	2018
		Amount
		5,381,213

〜 29 〜

(English Translation of Consolidated Financial Statements Originally Issued in Chinese)

REVIEWED ONLY, NOT AUDITED IN ACCORDANCE WITH GENERALLY ACCEPTED AUDITING STANDARDS INVENTEC CORPORATION AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT'D)

September 30, 2020 and 2019

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

(s) Share-Based payments

There were no significant changes on share-based payment for the nine months ended September 30, 2020. Please refer to Note 6(r) of the consolidated financial statements for the year ended December 31, 2019 for other related information.

(t) Earnings per share

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

For the three months ended September 30, 2020 2019 Basic earnings per share: Profit attributable to ordinary shareholders $ 1,931,429 1,063,946 Weighted average number of ordinary shares (thousand shares) 3,587,475 3,587,475 Basic earnings per share (NT dollars) $ 0.54 0.30 Diluted earnings per share: Profit attributable to ordinary shareholders of the Company (adjusted for the effects of all dilutive potential ordinary shares) $ 1,931,429 1,063,946 Weighted average number of ordinary shares (thousand shares) 3,587,475 3,587,475 Effect of dilutive potential common shares (thousand shares) profit sharing to employees 7,211 3,217 Weighted average number of ordinary shares (adjusted for the effects of all dilutive potential ordinary shares) 3,594,686 3,590,692 Diluted earnings per share (NT dollars) $ 0.54 0.30	For the nine months ended September 30,	For the nine months ended September 30,
	2020 6,622,634 3,587,475 1.85 6,622,634 3,587,475 31,560 3,619,035 1.83	2019
		4,125,379
		3,587,475
		1.15
		4,125,379
		3,587,475 20,276
		3,607,751
		1.14

〜 30 〜

(English Translation of Consolidated Financial Statements Originally Issued in Chinese)

REVIEWED ONLY, NOT AUDITED IN ACCORDANCE WITH GENERALLY ACCEPTED AUDITING STANDARDS INVENTEC CORPORATION AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT'D)

September 30, 2020 and 2019

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

(u) Revenue from contracts with customers
Disaggregation of revenue

For the three months ended September 30, 2020	For the three months ended September 30, 2020	For the three months ended September 30, 2020
Core Solar Energy Total $ 13,499,759 187,933 13,687,692 93,249,909 41,955 93,291,864 967,015 - 967,015 22,852,950 (17,791) 22,835,159 14,598,645 - 14,598,645 $ 145,168,278 212,097 145,380,375 $ 144,933,120 - 144,933,120 - 212,097 212,097 235,158 - 235,158 $ 145,168,278 212,097 145,380,375 For the three months ended September 30, 2019		Total
		13,687,692 93,291,864 967,015 22,835,159 14,598,645
		145,380,375
		144,933,120 212,097 235,158
		145,380,375
	Solar Energy 760,228 91,279 - 247,926 - 1,099,433 - 1,099,433 - 1,099,433	Total
		2,461,698 86,746,570 3,522,506 18,103,739 17,873,338
		128,707,851
		127,336,213 1,099,433 272,205
		128,707,851

〜 31 〜

(English Translation of Consolidated Financial Statements Originally Issued in Chinese)

REVIEWED ONLY, NOT AUDITED IN ACCORDANCE WITH GENERALLY ACCEPTED AUDITING STANDARDS INVENTEC CORPORATION AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT'D)

September 30, 2020 and 2019

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

For the nine months ended September 30, 2020	For the nine months ended September 30, 2020	For the nine months ended September 30, 2020
Core Solar Energy Total $ 22,061,519 786,454 22,847,973 258,830,264 116,360 258,946,624 6,773,421 - 6,773,421 52,684,697 212,354 52,897,051 41,352,213 - 41,352,213 $ 381,702,114 1,115,168 382,817,282 $ 381,200,701 - 381,200,701 - 1,115,168 1,115,168 501,413 - 501,413 $ 381,702,114 1,115,168 382,817,282 For the nine months ended September 30, 2019		Total
		22,847,973 258,946,624 6,773,421 52,897,051 41,352,213
		382,817,282
		381,200,701 1,115,168 501,413
		382,817,282
	Solar Energy 2,033,070 235,559 - 668,712 91,657 3,028,998 - 3,028,998 - 3,028,998	Total
		6,811,235 247,619,271 11,059,814 53,044,686 52,839,769
		371,374,775
		367,701,074 3,028,998 644,703
		371,374,775

〜 32 〜

(English Translation of Consolidated Financial Statements Originally Issued in Chinese)

REVIEWED ONLY, NOT AUDITED IN ACCORDANCE WITH GENERALLY ACCEPTED AUDITING STANDARDS INVENTEC CORPORATION AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT'D)

September 30, 2020 and 2019

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

Contract balances

Notes and Accounts receivable (included related parties) Less: Loss allowance Total Contract liabilities	2020.9.30 $ 107,654,351 (128,254) $ 107,526,097 $ 7,428,251	2019.12.31 88,594,198 (102,855) 88,491,343 6,449,213	2019.9.30 89,359,434 (129,441) 89,229,993 6,489,783

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

The amount of revenue recognized for the three months and nine months ended September 30, 2020 and 2019 that were included in the contract liability balance at the beginning of the period were $2,228,783, $2,269,467, $5,832,682 and $7,870,897, 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.

(v) Remuneration of employees and directors

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

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

The remuneration of employees amounted to $161,885, $68,836, $559,086 and $296,518 and the remuneration of directors amounted to $29,638, $13,652, $102,356 and $58,809 for the three months and nine months ended September 30, 2020 and 2019, respectively. These amounts are calculated using the Company's profit before tax for each period described above, and are determined using the earnings allocation method which stated under the Company's article. These remunerations are expensed under operating cost or expenses in September 30, 2020 and 2019. The difference between the actual amounts of employee remuneration and estimation of employee remuneration, if any, will be treated as changes in accounting estimates and adjusted in profit or loss in the following year.

In the financial statements for the years 2019 and 2018, the Company accrued the employee remuneration of $424,704 and $490,803, and the board of directors’ remuneration of $77,754 and $97,342, respectively. There were no differences between the amounts to be distributed as remuneration to employees and directors and those of the estimation made by the Company. Related information would be available at the Market Observation Post System after the meeting of the shareholders has been convened.

〜 33 〜

(English Translation of Consolidated Financial Statements Originally Issued in Chinese)

REVIEWED ONLY, NOT AUDITED IN ACCORDANCE WITH GENERALLY ACCEPTED AUDITING STANDARDS INVENTEC CORPORATION AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT'D)

September 30, 2020 and 2019

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

(w) Non-operating income and expenses
1.Interest income

The details of interest income were as follows:

For the three months ended September 30, 2020 2019 $ 271,630 385,923	For the nine months ended September 30,	For the nine months ended September 30,
2020 $ 271,630	2020 857,302	2019
		1,006,734

2.Other income

The details of other income were as follows:

For the three months ended September 30, 2020 2019 $ 56,008 104,472 30,069 20,829 $ 86,077 125,301	For the nine months ended September 30,	For the nine months ended September 30,
2020 $ 56,008 30,069 $ 86,077	2020 186,480 30,069 216,549	2019
		222,331 20,829
		243,160

3.Other income and losses

The details of other income and losses were as follows:

For the three months ended September 30, 2020 2019 Foreign exchange losses $ (43,211) (615,486) Gain on disposal of investments - - Net gains (losses) on financial assets (liabilities) measured at fair value through profit or loss 336,813 60,007 Gain on disposal of property, plant and equipment (63) 30,903 Gain on non-current assets held-for-sell - 17 Impairment loss on property, plant and equipment (47,927) - Other impairment loss - - Other 433,518 140,549 $ 679,130 (384,010)	For the nine months ended September 30, 2020 2019 (683,871) (439,990) 24,435 - 649,007 138,835 4,739,995 46,387 - 628,470 (103,300) (262,555) - (51,057) 878,953 512,891 5,505,219 572,981
	2020 (683,871) 24,435 649,007 4,739,995 - (103,300) - 878,953 5,505,219

For the three months ended
September 30,
2020
2019
Foreign exchange
losses
$ (43,211)
(615,486)
Gain on disposal of
investments
-
-
Net gains (losses) on
financial assets
(liabilities) measured
at fair value through
profit or loss
336,813
60,007
Gain on disposal of
property, plant and
equipment
(63)
30,903
Gain on non-current
assets held-for-sell
-
17
Impairment loss on
property, plant and
equipment
(47,927)
-
Other impairment loss
-
-
Other
433,518
140,549
$
679,130
(384,010)

For the nine months ended
September 30,
2020
2019
(683,871)
(439,990)
24,435
-
649,007
138,835
4,739,995
46,387
-
628,470
(103,300)
(262,555)
-
(51,057)
878,953
512,891
5,505,219
572,981

2020
(683,871)
24,435
649,007
4,739,995
-
(103,300)
-
878,953
5,505,219

〜 34 〜

(English Translation of Consolidated Financial Statements Originally Issued in Chinese)

REVIEWED ONLY, NOT AUDITED IN ACCORDANCE WITH GENERALLY ACCEPTED AUDITING STANDARDS INVENTEC CORPORATION AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT'D)

September 30, 2020 and 2019

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

4.Finance costs

The details of finance expenses were as follows:

For the three months ended September 30, 2020 2019 $ 156,756 230,294 112,085 268,120 $ 268,841 498,414	For the nine months ended September 30,	For the nine months ended September 30,
2020 $ 156,756 112,085 $ 268,841	2020 505,159 341,020 846,179	2019
		690,254 682,812
		1,373,066

(x) Financial instruments

There were no significant differences in the Group's exposure to credit risk on financial instruments, except for the following. Please refer to Note 6(w) of the consolidated financial statements for the year ended December 31, 2019 for other related information.

1.Liquidity risks

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

September 30, 2020 Non-derivative financial liabilities Secured bank loans Unsecured bank loans Accounts payable Other payables Lease liabilities Derivative financial liabilities Forward exchange contracts not used for hedging: Outflow Inflow	Carrying amount $ 4,227,731 43,575,212 87,216,175 10,449,750 976,302 174,959 - $ 146,620,129	Contractual cash flows 4,516,703 43,662,682 87,216,175 10,449,750 1,080,463 (20,065,385) 19,890,426 146,750,814	Less than 6 months 764,205 40,324,409 87,216,175 10,449,750 111,076 (20,065,385) 19,890,426 138,690,656	6 to 12 months 181,236 3,338,273 - - 109,456 - - 3,628,965	1 to 2 years 402,298 - - - 156,428 - - 558,726	2 to 5 years 1,490,786 - - - 402,688 - - 1,893,474	More than 5 years
							1,678,178 - - - 300,815 - -
							1,978,993

〜 35 〜

(English Translation of Consolidated Financial Statements Originally Issued in Chinese)

REVIEWED ONLY, NOT AUDITED IN ACCORDANCE WITH GENERALLY ACCEPTED AUDITING STANDARDS INVENTEC CORPORATION AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT'D)

September 30, 2020 and 2019

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

December 31, 2019 Non-derivative financial liabilities Secured bank loans Unsecured bank loans Accounts payable Other payable Lease liabilities Derivative financial liabilities Forward exchange contracts not used for hedging: Outflow Inflow September 30, 2019 Non-derivative financial liabilities Secured bank loans Unsecured bank loans Accounts payable Other payables Lease liabilities Derivative financial liabilities Forward exchange contracts not used for hedging : Outflow Inflow Foreign exchange swap contracts not used for hedging: Outflow Inflow	Carrying amount $ 4,183,134 25,225,579 71,342,557 6,169,489 1,177,080 108,175 - $ 108,206,014 $ 4,042,195 33,868,945 77,007,687 6,189,606 1,056,549 5,649 - 6,866 - $ 122,177,497	Contractual cash flows 4,628,036 26,354,636 71,342,557 6,169,489 1,308,241 (10,119,285) 10,011,110 109,694,784 4,460,974 33,948,125 77,007,687 6,189,606 1,168,974 (1,863,520) 1,857,871 (2,472,700) 2,465,834 122,762,851	Less than 6 months 189,281 26,339,684 71,342,557 6,169,489 112,656 (10,119,285) 10,011,110 104,045,492 190,480 33,904,303 77,007,687 6,189,606 105,494 (1,863,520) 1,857,871 (2,472,700) 2,465,834 117,385,055	6 to 12 months 192,619 14,952 - - 119,727 - - 327,298 189,613 43,822 - - 113,486 - - - - 346,921	1 to 2 years 382,057 - - - 181,668 - - 563,725 375,716 - - - 220,006 - - - - 595,722	2 to 5 years 1,930,829 - - - 456,376 - - 2,387,205 1,690,075 - - - 441,684 - - - - 2,131,759	More than 5 years
							1,933,250 - - - 437,814 - -
							2,371,064
							2,015,090 - - - 288,304 - - - -
							2,303,394

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

〜 36 〜

(English Translation of Consolidated Financial Statements Originally Issued in Chinese)

REVIEWED ONLY, NOT AUDITED IN ACCORDANCE WITH GENERALLY ACCEPTED AUDITING STANDARDS INVENTEC CORPORATION AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT'D)

September 30, 2020 and 2019

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

2.Currency risks
1) Exposure to currency risks

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

Financial assets Monetary items USD CNY JPY Non-monetary items USD Financial Liabilities Monetary items USD CNY Financial assets Monetary items USD CNY JPY Non-monetary items USD		2020.9.30
	Foreign currency (In thousand) $ 6,429,645 465,530 293,137 5,606,295 6,221 56,303 5,432,080 263,977 363,790 313,240	Exchange rate TWD USD`：`TWD 29.10 187,102,670 USD`：`CNY 6.81 13,546,923 USD`：`CZK 23.24 8,530,287 CNY`：`USD 0.15 23,956,259 JPY`：`TWD 0.27 1,680 USD`：`TWD 29.10 1,624,460 USD`：`TWD 29.10 158,073,528 USD`：`CNY 6.81 7,681,731 USD`：`CZK 23.24 10,586,289 CNY`：`USD 0.15 1,338,506 2019.12.31
	Foreign currency (In thousand) $ 4,595,867 633,654 293,178 3,593,671 6,563 59,255	Exchange rate TWD USD`：`TWD 30.08 138,243,679 USD`：`CNY 6.98 19,060,312 USD`：`CZK 22.62 8,818,794 CNY`：`USD 0.14 15,495,191 JPY`：`TWD 0.28 1,838 USD`：`TWD 30.08~32.19 1,785,737

〜 37 〜

(English Translation of Consolidated Financial Statements Originally Issued in Chinese)

REVIEWED ONLY, NOT AUDITED IN ACCORDANCE WITH GENERALLY ACCEPTED AUDITING STANDARDS INVENTEC CORPORATION AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT'D)

September 30, 2020 and 2019

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

Financial Liabilities Monetary items USD CNY Financial assets Monetary items USD CNY JPY Non-monetary items USD Financial Liabilities Monetary items USD CNY		2019.12.31
	Foreign currency (In thousand) 3,743,732 522,687 379,553 309,273	Exchange rate TWD USD`：`TWD 30.08 112,611,459 USD`：`CNY 6.98 15,722,425 USD`：`CZK 22.62 11,416,954 CNY`：`USD 0.14 1,333,523 2019.9.30
	Foreign currency (In thousand) $ 4,839,919 718,271 291,203 5,020,608 4,995 57,886 3,795,820 680,653 359,973 278,469	Exchange rate TWD USD`：`TWD 30.97 149,892,291 USD`：`CNY 7.07 22,244,853 USD`：`CZK 23.71 9,018,557 CNY`：`USD 0.14 21,990,263 JPY`：`TWD 0.29 1,449 USD`：`TWD 30.44~32.19 1,791,993 USD`：`TWD 30.97 117,556,545 USD`：`CNY 7.07 21,079,823 USD`：`CZK 23.71 11,148,364 CNY`：`USD 0.14 1,219,694

2) Sensitivity analysis

The Group's exposure to foreign currency risk arises from the translation of the foreign currency exchange gains and losses on cash and cash equivalents, accounts receivable, other receivables, loans and borrowings, accounts payable and other payables that are denominated in foreign currency. A 0.5% depreciation or appreciation of the functional currency against all the non-functional currency as of September 30, 2020 and 2019 would have increased or decreased the net profit after tax by $212,627 and $181,665, respectively. The analysis is performed on the same basis for both periods.

〜 38 〜

(English Translation of Consolidated Financial Statements Originally Issued in Chinese)

REVIEWED ONLY, NOT AUDITED IN ACCORDANCE WITH GENERALLY ACCEPTED AUDITING STANDARDS INVENTEC CORPORATION AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT'D)

September 30, 2020 and 2019

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

3) Gains or losses on foreign exchange

As Group deals with diverse foreign currencies, therefore, the gains or losses on foreign exchange were summarized as a single amount. For the nine months ended September 30, 2020 and 2019, the foreign exchange loss, including realized and unrealized, amounted to $(683,871) and $(439,990), respectively.

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

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

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

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

		2020.9.30	2020.9.30
Book Value $ 320,402 2,912,301 3,232,703 1,163,960 3,910,669 5,074,629		Fair Value
	Level 1 - 332,952 332,952 1,163,960 - 1,163,960	Level 2 320,402 - 320,402 - 118,009 118,009	Level 3 - 2,579,349 2,579,349 - 3,792,660 3,792,660	Total 320,402 2,912,301
				3,232,703
				1,163,960 3,910,669
				5,074,629

〜 39 〜

(English Translation of Consolidated Financial Statements Originally Issued in Chinese)

REVIEWED ONLY, NOT AUDITED IN ACCORDANCE WITH GENERALLY ACCEPTED AUDITING STANDARDS INVENTEC CORPORATION AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT'D)

September 30, 2020 and 2019

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

	2020.9.30	2020.9.30
	Fair Value
Level 1 - - - - 1,496,912 - - - - - - -	Level 2 - - - - 438,411 174,959 - - - - - 174,959 2019.12.31	Level 3 - - - - 6,372,009 - - - - - - -	Total - - -
			-
			8,307,332
			174,959
			- - - -
			-
			174,959

	Fair Value
Level 1 - 115,909 115,909 1,194,430 - 1,194,430	Level 2 125,305 - 125,305 - 129,221 129,221	Level 3 - 3,717,254 3,717,254 - 2,114,517 2,114,517	Total 125,305 3,833,163
			3,958,468
			1,194,430 2,243,738
			3,438,168

〜 40 〜

(English Translation of Consolidated Financial Statements Originally Issued in Chinese)

REVIEWED ONLY, NOT AUDITED IN ACCORDANCE WITH GENERALLY ACCEPTED AUDITING STANDARDS INVENTEC CORPORATION AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT'D)

September 30, 2020 and 2019

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

	2019.12.31	2019.12.31
	Fair Value
Level 1 - - - - 1,310,339 - - - - - - -	Level 2 - - - - 254,526 108,175 - - - - - 108,175 2019.9.30	Level 3 - - - - 5,831,771 - - - - - - -	Total - - -
			-
			7,396,636
			108,175
			- - - -
			-
			108,175

	Fair Value
Level 1 - 88,929 88,929 1,160,625 - 1,160,625	Level 2 23,576 - 23,576 - 50,168 50,168	Level 3 - 2,638,744 2,638,744 - 281,799 281,799	Total 23,576 2,727,673
			2,751,249
			1,160,625 331,967
			1,492,592

〜 41 〜

(English Translation of Consolidated Financial Statements Originally Issued in Chinese)

REVIEWED ONLY, NOT AUDITED IN ACCORDANCE WITH GENERALLY ACCEPTED AUDITING STANDARDS INVENTEC CORPORATION AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT'D)

September 30, 2020 and 2019

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

	2019.9.30	2019.9.30
	Fair Value
Level 1 - - - - 1,249,554 - - - - - - -	Level 2 - - - - 73,744 12,515 - - - - - 12,515	Level 3 - - - - 2,920,543 - - - - - - -	Total - - -
			-
			4,243,841
			12,515
			- - - -
			-
			12,515

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

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

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

〜 42 〜

(English Translation of Consolidated Financial Statements Originally Issued in Chinese)

REVIEWED ONLY, NOT AUDITED IN ACCORDANCE WITH GENERALLY ACCEPTED AUDITING STANDARDS INVENTEC CORPORATION AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT'D)

September 30, 2020 and 2019

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

(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 nine months ended September 30, 2020 and 2019.

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

Balance as of January 1, 2020 Total gains and losses recognized in Profit or loss Other comprehensive income Purchase Disposals Transfers out of Level 3 Effect of movements in exchange rate Balance as of September 30, 2020 Balance as of January 1, 2019 Total gains and losses recognized in Profit or loss Other comprehensive income Purchase Disposals Effect of movements in exchange rate Balance as of September 30, 2019	At fair value through profit or loss $ 3,717,254 24,578 - 7,073,679 (8,066,475) (74,980) (94,707) $ 2,579,349 $ 2,402,590 75,339 - 10,313,467 (10,035,667) (116,985) $ 2,638,744	Fair value through other comprehensive income
		2,114,517 - 990,853 687,008 - - 282
		3,792,660
		264,886 - 13,212 3,245 - 456
		281,799

〜 43 〜

(English Translation of Consolidated Financial Statements Originally Issued in Chinese)

REVIEWED ONLY, NOT AUDITED IN ACCORDANCE WITH GENERALLY ACCEPTED AUDITING STANDARDS INVENTEC CORPORATION AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT'D)

September 30, 2020 and 2019

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

For the nine months ended September 30, 2020 and 2019, total gains and losses included in “other gains and losses” and “unrealized gains and losses from financial assets at fair value through other comprehensive income” were as follows:

through other comprehensive income” were as follows:
		For the nine months	ended
		September 30,
		2020	2019
Total gains and losses recognized in:
In profit or loss, and included “other gains and losses”	$	(41,634)	10,575
In other comprehensive income, and presented in		990,853	13,212
“unrealized gains and losses from financial assets at fair
value through other comprehensive income”

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 other comprehensive income`－`equity instruments investments without an active market Financial assets at fair value through profit or loss`－`financial instruments without an active market Financial assets at fair value through profit or loss`－`equity instruments investments without an active market Financial assets at fair value through other comprehensive income`－`equity instruments investments without an active market	Valuation Technique Comparable Listed Companies Method Discounted Cash Flow Method Net Asset Value Method Net Asset Value Method	Significant Non-observable Input The Relationship between Significant Non-observable Input and Fair Value ‧ Market Multiple (0.85~1.92) ‧ Discount due to Lack of Market liquidity (20%~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) ‧ Discounted Rate (2.50%~3.43% on September 30, 2020 3.20%~4.00% and December 31, 2019 3.05%~3.95% on September 30, 2019) ‧ The higher the discount rate, the lower the fair value ‧ Net Asset Value ‧ Not applicable ‧ Net Asset Value ‧ Not applicable

〜 44 〜

(English Translation of Consolidated Financial Statements Originally Issued in Chinese)

REVIEWED ONLY, NOT AUDITED IN ACCORDANCE WITH GENERALLY ACCEPTED AUDITING STANDARDS INVENTEC CORPORATION AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT'D)

September 30, 2020 and 2019

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

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:

September 30, 2020 Financial assets at fair value through profit or loss Financial instruments without an active market Financial assets at fair value through other comprehensive income Equity instruments without an active market December 31, 2019 Financial assets at fair value through profit or loss Financial instruments without an active market Financial assets at fair value through other comprehensive income Equity instruments without an active market September 30, 2019 Financial assets at fair value through profit or loss Financial instruments without an active market Financial assets at fair value through other comprehensive income Equity instruments without an active market	Input Discount Rate Market Multiple Discount Rate Market Multiple Discount Rate Market Multiple	Variation	Impact on Fair V Net incom	alue Change on e or loss Unfavorable Change (4,369) - (2,187) - (1,338) -	Impact on Fair Value Change on Other Comprehensive income or loss Favorable Change Unfavorable Change - - 18,923 (18,923) - - 33,497 (33,497) - - 617 (617)
			Favorable Change $ 4,369 - $ 2,187 - $ 1,338 -
		0.5% 0.5% 0.5% 0.5% 0.5% 0.5%

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

〜 45 〜

(English Translation of Consolidated Financial Statements Originally Issued in Chinese)

REVIEWED ONLY, NOT AUDITED IN ACCORDANCE WITH GENERALLY ACCEPTED AUDITING STANDARDS INVENTEC CORPORATION AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT'D)

September 30, 2020 and 2019

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

4.Offsetting financial assets and financial liabilities

The Group 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 Group also performs transactions not applicable to the International Financial Reporting Standards Sections 42 NO. 32, but the Group has an exercisable master netting arrangement or similar agreement in place with its counterparties, and both parties reach a consensus regarding net settlement. The aforesaid exercisable master netting arrangement or similar agreement can be net settled after offsetting the financial assets and financial liabilities. Otherwise, the transaction can be settled at the total amount. In the event of default involving one of the parties, the other party can have the transaction net settled.

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

2020.9.30	2020.9.30	2020.9.30	2020.9.30	2020.9.30	2020.9.30	2020.9.30
Financial assets that are offset which have an exercisable master netting arrangement or similar agreement
Gross amounts of recognized financial assets (a) $ 408,697,789 184,307 $ 408,882,096		Gross amounts of financial liabilities offset in the balance sheet (b) 408,291,938 - 408,291,938	Net amount of financial assets presented in Amounts not off set in the balance sheet (d) the balance sheet (c)=(a)-(b) Financial instruments (Note) Cash collateral received 405,851 - - 184,307 - - 590,158 - - 2020.9.30			Net amount (e)=(c)-(d)
						405,851 184,307
						590,158

	Financial liabilities that are		offset which have an exercisable ma or similar agreement		ster netting arrangement
		Gross amounts of financial assets offset in the balance sheet (b) -	Net amount of financial liabilities presented in the balance sheet (c)=(a)-(b) 145,923	Amounts not off set in the balance sheet (d) Financial instruments (Note) Cash collateral received - -		Net amount (e)=(c)-(d)
				Financial instruments (Note) -
						145,923

〜 46 〜

(English Translation of Consolidated Financial Statements Originally Issued in Chinese)

REVIEWED ONLY, NOT AUDITED IN ACCORDANCE WITH GENERALLY ACCEPTED AUDITING STANDARDS INVENTEC CORPORATION AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT'D)

September 30, 2020 and 2019

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

2019.12.31	2019.12.31	2019.12.31	2019.12.31	2019.12.31	2019.12.31	2019.12.31
Financial assets that are offset which have an exercisable master netting arrangement or similar agreement
Gross amounts of recognized financial assets (a) $ 413,711,801 33,069 $ 413,744,870		Gross amounts of financial liabilities offset in the balance sheet (b) 413,317,202 - 413,317,202	Net amount of financial assets presented in Amounts not off set in the balance sheet (d) the balance sheet (c)=(a)-(b) Financial instruments (Note) Cash collateral received 394,599 - - 33,069 - - 427,668 - - 2019.12.31			Net amount (e)=(c)-(d)
						394,599 33,069
						427,668

	Financial liabilities that are		offset which have an exercisable ma or similar agreement		ster netting arrangement
		Gross amounts of financial assets offset in the balance sheet (b) -	Net amount of financial liabilities presented in Amounts not off set in the balance sheet (d) the balance sheet (c)=(a)-(b) Financial instruments (Note) Cash collateral received 108,175 - - 2019.9.30			Net amount (e)=(c)-(d)
						108,175

	Financial assets that are offset which have an exercisable mas or similar agreement				ter netting arrangement
		Gross amounts of financial liabilities offset in the balance sheet (b) 413,461,603 - 413,461,603	Net amount of financial assets presented in Amounts not off set in the balance sheet (d) the balance sheet (c)=(a)-(b) Financial instruments (Note) Cash collateral received 373,900 - - 15,292 - - 389,192 - - 2019.9.30			Net amount (e)=(c)-(d)
						373,900 15,292
						389,192

	Financial liabilities that are		offset which have an exercisable ma or similar agreement		ster netting arrangement
		Gross amounts of financial assets offset in the balance sheet (b) -	Net amount of financial liabilities presented in the balance sheet (c)=(a)-(b) 5,649	Amounts not off set in the balance sheet (d) Financial instruments (Note) Cash collateral received - -		Net amount (e)=(c)-(d)
				Financial instruments (Note) -
						5,649

Note: Master netting arrangements are included.

〜 47 〜

(English Translation of Consolidated Financial Statements Originally Issued in Chinese)

REVIEWED ONLY, NOT AUDITED IN ACCORDANCE WITH GENERALLY ACCEPTED AUDITING STANDARDS INVENTEC CORPORATION AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT'D)

September 30, 2020 and 2019

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

(y) Financial risk management

There were no significant differences of the Group's financial risk management and policies with those disclosed in Note (6)(x) of the consolidated financial statements for the year ended December 31, 2019.

(z) Capital Management

Management believes that the objectives, policies and processes of capital management of the Group have been applied consistently with those described in the consolidated financial statements for the year ended December 31, 2019. Also, management believes that there were no significant changes in the Group's capital management information as disclosed in Note (6)(y) for the year ended December 31, 2019.

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

The Group has no investing and financing activities which did not affect the current cash flow for the nine months ended September 30, 2020.

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) Lease liabilities (Note) Total liabilities from financing activities	January 1, 2020 $ 3,883,134 25,525,579 1,177,080 $ 30,585,793 January 1, 2019 $ 3,409,061 31,857,950 1,074,436 $ 36,341,447	Cash flows 3,179,314 15,544,165 (146,595) 18,576,884 Cash flows 638,805 2,142,979 (154,827) 2,626,957	Non-cash changes Reclassification Foreign exchange movement (3,717,000) 283 3,717,000 (329,532) (108,547) 54,364 (108,547) (274,885) Non-cash changes Reclassification Foreign exchange movement (284,061) (21,610) 284,061 (116,045) 148,773 (11,833) 148,773 (149,488)	September 30, 2020
				3,345,731 44,457,212 976,302
				48,779,245
				September 30, 2019
			Reclassification (284,061) 284,061 148,773 148,773
				3,742,195 34,168,945 1,056,549
				38,967,689

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

〜 48 〜

(English Translation of Consolidated Financial Statements Originally Issued in Chinese)

REVIEWED ONLY, NOT AUDITED IN ACCORDANCE WITH GENERALLY ACCEPTED AUDITING STANDARDS INVENTEC CORPORATION AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT'D)

September 30, 2020 and 2019

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

(7) Related Party Transactions

(a) Names and relationship with related parties

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

the consolidated financial statements.
Name of related party	Relationship with the Group
Inventec Besta Co., Ltd.	Associates
Inventec Besta (XiAn) Co., Ltd.	Subsidiary of associates
Gainia Intellectual Asset Services, Inc.	Associates
Inventec Group Charity Foundation	Over one-third of total amount of fund donated by
	the Company
Inventec Welfare Committee	The same chairman of the Group
Kou-I Yeh	Director of the board of the Company
Ching-Sung Chang	Director of the board of the Company

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

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

For the three months ended September 30, 2020 2019 $ 8,447 1,720 35 - $ 8,482 1,720	For the nine months ended September 30,	For the nine months ended September 30,
2020 $ 8,447 35 $ 8,482	2020 9,693 310 10,003	2019
		1,720 -
		1,720

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

2.Purchase

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

Associates	For the three months ended September 30, 2020 2019 $ 551 -	For the nine months ended September 30,	For the nine months ended September 30,
	2020 $ 551	2020 6,002	2019
			-

〜 49 〜

(English Translation of Consolidated Financial Statements Originally Issued in Chinese)

REVIEWED ONLY, NOT AUDITED IN ACCORDANCE WITH GENERALLY ACCEPTED AUDITING STANDARDS INVENTEC CORPORATION AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT'D)

September 30, 2020 and 2019

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

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

3.Accounts receivable from related parties

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

Financial Statement Account	Related Party Categories	2020.9.30 $ 8,417 30 2,610 $ 11,057	2019.12.31 - - 1,305 1,305	2019.9.30
Accounts receivable Other receivables	Associates Other related parties Associates			- - -
				-

4.Accounts payable to Related Parties

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

Financial Statement Account	Related Party Categories	2020.9.30 $ 365 1,850 300,000 $ 302,215	2019.12.31 - 2,477 250,000 252,477	2019.9.30
Accounts payable Other payables `〞`	Associates Associates Other related parties			- 14,552 250,000
				264,552

As of September 30, 2020, December 31, 2019, and September 30, 2019, the Group borrowed the amount of $300,000, $250,000 and $250,000 from shareholders, respectively, which were accounted as other payables. The borrowing interest rate was 1.50%, 2.13% and 2.13%.

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

For the three months and nine months ended September 30, 2020 and 2019, the Group purchased equipment, intangible assets and other assets from Inventec Besta Co., Ltd. and paid the amount $4,980, $13,362, $9,196 and $28,059, respectively.

6.Others

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

Associates	For the three months ended September 30, 2020 2019 $ 3,134 659	For the nine months ended September 30,	For the nine months ended September 30,
	2020 $ 3,134	2020 5,674	2019
			4,872

〜 50 〜

(English Translation of Consolidated Financial Statements Originally Issued in Chinese)

REVIEWED ONLY, NOT AUDITED IN ACCORDANCE WITH GENERALLY ACCEPTED AUDITING STANDARDS INVENTEC CORPORATION AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT'D)

September 30, 2020 and 2019

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

2) Donations for other related parties were as follows:

Other related parties	For the three months ended September 30, 2020 2019 $ - -	For the nine months ended September 30,	For the nine months ended September 30,
	2020 $ -	2020 10,000	2019
			10,000

3) Payments for system development expenses, maintenance expenses and service expenses to associates were as follows:

Associates	For the three months ended September 30, 2020 2019 $ 1,763 2,085	For the nine months ended September 30,	For the nine months ended September 30,
	2020 $ 1,763	2020 3,560	2019
			6,668

Key management personnel compensation includes:

For the three months ended September 30, 2020 2019 $ 119,375 144,576 919 939 $ 120,294 145,515	For the nine months ended September 30,	For the nine months ended September 30,
2020 $ 119,375 919 $ 120,294	2020 373,583 2,787 376,370	2019
		438,559 2,817
		441,376

(8) Pledged Assets

The carrying values of pledged assets were as follows:

Pledged assets	Object	2020.9.30 $ 64,103 1,469,562 8,397,183 $ 9,930,848	2019.12.31 173,802 64,081 8,395,434 8,633,317	2019.9.30
Refundable deposits (Other non-current assets) Restricted cash in banks (Other current assets and Other non-current assets) Land, buildings, structures, machinery and equipment, net (Property, plant and equipment, investment property and right-of-use assets) Total	Membership guarantee and rental deposit Borrowings Current portion long-term borrowings, as well as long-term borrowings and credit line			180,574 24,105 9,215,965
				9,420,644

〜 51 〜

(English Translation of Consolidated Financial Statements Originally Issued in Chinese)

REVIEWED ONLY, NOT AUDITED IN ACCORDANCE WITH GENERALLY ACCEPTED AUDITING STANDARDS INVENTEC CORPORATION AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT'D)

September 30, 2020 and 2019

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

(9) Significant Commitments and Contingencies

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

EUR USD TWD	2020.9.30 $ 306 1,619 25,345

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

TWD USD	2020.9.30 $ 21,913,676 1,692,400

(b) Contingencies: None.

(10) Losses Due to Major Disasters: None.

(11) Subsequent Events: None.

(12) Other

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

By function By item	For the three months ended September 30, 2020	For the three months ended September 30, 2020	For the three months ended September 30, 2020	For the three months ended September 30, 2019	For the three months ended September 30, 2019	For the three months ended September 30, 2019
	Operating costs	Operating and non-operating expense	Total	Operating costs	Operating and non-operating expense	Total
Employee benefits Salary Labor and health insurance Pension Others Depreciation Amortization	1,950,235 211,130 162,072 164,087 501,022 50,414	2,178,565 177,265 113,049 61,319 222,439 153,355	4,128,800 388,395 275,121 225,406 723,461 203,769	3,497,352 340,483 343,220 174,266 492,897 75,115	2,113,742 182,287 121,294 72,993 277,543 136,763	5,611,094 522,770 464,514 247,259 770,440 211,878

〜 52 〜

(English Translation of Consolidated Financial Statements Originally Issued in Chinese)

REVIEWED ONLY, NOT AUDITED IN ACCORDANCE WITH GENERALLY ACCEPTED AUDITING STANDARDS INVENTEC CORPORATION AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT'D)

September 30, 2020 and 2019

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

By function By item	For the nine months ended September 30, 2020	For the nine months ended September 30, 2020	For the nine months ended September 30, 2020	For the nine months ended September 30, 2019	For the nine months ended September 30, 2019	For the nine months ended September 30, 2019
	Operating costs	Operating and non-operating expense	Total	Operating costs	Operating and non-operating expense	Total
Employee benefits Salary Labor and health insurance Pension Others Depreciation Amortization	6,758,708 594,073 445,265 389,544 1,494,499 161,468	6,529,365 512,072 302,530 179,650 739,401 462,773	13,288,073 1,106,145 747,795 569,194 2,233,900 624,241	9,737,508 911,847 1,059,106 489,699 1,564,214 333,367	6,354,376 551,045 375,011 218,075 810,010 451,156	16,091,884 1,462,892 1,434,117 707,774 2,374,224 784,523

(13) Other disclosures

(a) Information on significant transactions

The following is the information on significant transactions required by the “Regulations Governing the Preparation of Financial Reports by Securities Issuers” for the Group for the nine month ended September 30, 2020:

Loans to other parties:

(In Thousands of New Taiwan Dollars)

Number	Name of lender	Name of borrower	Account name	Related party	Highest balance of financing to other parties during the period	Ending balance	Actual usage amount during the period	Range of interest rates during the period	Purposes of fund financing for the borrower	Transaction amount for business between two parties	Reasons for short-term financing	Allowance for bad debt	Coll	ateral	Individual funding loan limits	Maximum limit of fund financing
													Item	Value
1 2 3 3 4	Inventec (Chongqing) Corp.(Note 2) Inventec Appliances (Nanjing) Corp.(Note 3) Inventec Appliances (Shanghai) Co., Ltd.(Note 3) `〞` Inventec Appliances Corp.(Note 3)	Inventec Huan Hsin (Zhejiang) Technology Co., Ltd. Inventec Appliances (XI'AN) Corporation Inventec Appliances (Shanghai) Interprise Inventec Appliances (Nanchang) Intelligent manufacturing Co., Ltd. Inventec Appliances (Malaysia) SDN. BHD.	Other receivables `〞` `〞` `〞` `〞`	Y Y Y Y Y	523,800 100,395 30,555 130,950 800,000	- 81,187 - 128,190 800,000	- 59,822 - 128,190 331,550	- 3.045% - 3.045% 1.95%	2 2 2 2 2	- - - - -	Working Capital `〞` `〞` `〞` `〞`	- - - - -	None `〞` `〞` `〞` `〞`	- - - - -	3,026,261 326,835 1,785,604 1,785,604 8,944,922	3,026,261 326,835 1,785,604 1,785,604 8,944,922

〜 53 〜

(English Translation of Consolidated Financial Statements Originally Issued in Chinese)

REVIEWED ONLY, NOT AUDITED IN ACCORDANCE WITH GENERALLY ACCEPTED AUDITING STANDARDS INVENTEC CORPORATION AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT'D)

September 30, 2020 and 2019

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

Number	Name of lender	Name of borrower	Account name	Related party	Highest balance of financing to other parties during the period	Ending balance	Actual usage amount during the period	Range of interest rates during the period	Purposes of fund financing for the borrower	Transaction amount for business between two parties	Reasons for short-term financing	Allowance for bad debt	Coll	ateral	Individual funding loan limits	Maximum limit of fund financing
													Item	Value
5 5	Inventec (Pudong) Corp.(Note 4) `〞`	Inventec Asset- Management (Shanghai) Corporation Inventec Hi-Tech Corp.	Other receivables `〞`	Y Y	1,375,680 85,980	1,367,360 85,460	1,079,221 -	5.225% -	2 2	- -	Working Capital `〞`	- -	None `〞`	- -	1,521,678 3,804,195	1,521,678 3,804,195

Note 1: (1) Those with business contact, please fill in 1.
- (2) Those necessary for short term financing, please fill in 2.
Note 2: Where an inter-company or inter-firm short-term financing facility is necessary, total financing amount shall not exceed 40 percent of the company's net worth as stated in its latest financial report. Each financing amount shall not exceed 100 percent of the permitted aggregate amount of loans of the company.
Note 3: Among Subsidiaries which the parent company holds 100% voting power, aggregate amount of loans shall not exceed the company's net worth as stated in its latest financial report, and each amount of loans shall not exceed 100 percent of the permitted aggregate amount of loans of the company.
Note 4: Where an inter-company or inter-firm short-term financing facility is necessary, total financing amount shall not exceed 40 percent of the company's net worth as stated in its latest financial report. Each financing amount shall not exceed 100 percent of the permitted aggregate amount of loans of the company. Among Subsidiaries which the parent company holds 100% voting power, aggregate amount of loans shall not exceed the company's net worth as stated in its latest financial report, and each amount of loans shall not exceed 100 percent of the permitted aggregate amount of loans of the company.
Note 5: The transactions with the Group were eliminated in the consolidated financial statements.
Note 6: The transactions in foreign currencies were exchanged to New Taiwan Dollars in spot rate at the date of the audited entity's financial reports.
Guarantees and endorsements for other parties: None.
Securities held as of balance sheet date (excluding investment subsidiaries, associates and joint ventures) :

(In Thousands of New Taiwan Dollars)

Name of holder	Category and name of security	Relationship with company	Account title		Ending balance	Ending balance		Note
				Shares/Units (thousands)	Carrying value	Percentage of ownership (%)	Fair value (Note1)
The Company `〞` `〞` `〞` `〞`	WK Technology Fund IV Corp. Global Strategy Venture Capital Corporation Arima Communications Corp. WIN Semiconductors Corp. Tomorrow Studio Co., Ltd	- - - - -	Non-current financial assets at fair value through other comprehensive income `〞` `〞` Current financial assets at fair value through other comprehensive income Non-current financial assets at fair value through other comprehensive income	645 2,835 21,114 4,063 29	5,296 14,118 118,009 1,163,960 86	% 1.52 % 6.45 % 10.15 % 0.96 % 0.30	5,296 14,118 118,009 1,163,960 86

〜 54 〜

(English Translation of Consolidated Financial Statements Originally Issued in Chinese)

REVIEWED ONLY, NOT AUDITED IN ACCORDANCE WITH GENERALLY ACCEPTED AUDITING STANDARDS INVENTEC CORPORATION AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT'D)

September 30, 2020 and 2019

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

Name of holder	Category and name of security	Relationship with company	Account title		Ending balance	Ending balance		Note
				Shares/Units (thousands)	Carrying value	Percentage of ownership (%)	Fair value (Note1)
The Company `〞` `〞` `〞` `〞` `〞` `〞` `〞` `〞` `〞` `〞` `〞` `〞` Inventec (Cayman) Corp. Saint Investment Consulting Corporation Inventec (Beijing) Electronics Technology Co., Ltd. Inventec Development Japan Corporation Inventec Investments Co., Ltd. `〞` `〞` `〞`	Tai Yi Precision Corporation New E Materials Co., Ltd. Rasilient Systems, Inc. preference share SKSpruce Holding Limited preferred stock CloudMosa Technologies, Inc. preferred stock QEEXO, Co. preferred stock Rescale, Inc. preferred stock Sensel, Inc. preferred stock ZT Group Int'l, Inc. preferred stock SKSpruce Holding Limited convertible short- term note Empass Technology Entire Technology Co., Ltd. E-TON Solar Tech. Co., Ltd Chainwin Biotech and Agrotech (Cayman Islands) Co., Ltd. Testron Technology (JiangSu) Co., Ltd. Bank of Communications Pension CNY Financial products Famm Co., Ltd. EPISTAR Corporation UCFUNNEL CO LTD Sagacity Tech. Co., Ltd. Living Pattern Technology Inc.	- - - - - - - - - - - - - - - - - - - - -	Non-current financial assets at fair value through other comprehensive income `〞` `〞` `〞` `〞` `〞` `〞` `〞` `〞` Current financial assets at fair value through profit or loss Non-current financial assets at fair value through 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 Current financial assets at fair value through profit or loss Non-current financial assets at fair value through other comprehensive income `〞` `〞`	2,540 1,760 3,632 3,746 235 568 355 532 70 - 450 3,260 94,889 10,000 - - 100 1,761 83 79 4	- 11,053 - 32,283 12,466 23,320 28,981 16,710 2,756,893 12,691 15,377 220,441 399,482 630,716 67,514 51,278 8,062 62,256 7,866 - 440	% 6.67 % 16.00 % 6.20 % 3.72 % 2.95 % 3.10 % 1.37 % 3.38 % 10.00 % - % 6.80 % 4.50 % 29.70 % 7.88 % 10.00 % - % 14.30 % 0.16 % 5.00 % 15.00 % 13.70	- 11,053 - 32,283 12,466 23,320 28,981 16,710 2,756,893 12,691 15,377 220,441 399,482 630,716 67,514 51,278 8,062 62,256 7,866 - 440

〜 55 〜

(English Translation of Consolidated Financial Statements Originally Issued in Chinese)

REVIEWED ONLY, NOT AUDITED IN ACCORDANCE WITH GENERALLY ACCEPTED AUDITING STANDARDS INVENTEC CORPORATION AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT'D)

September 30, 2020 and 2019

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

Name of holder	Category and name of security	Relationship with company	Account title		Ending balance	Ending balance		Note
				Shares/Units (thousands)	Carrying value	Percentage of ownership (%)	Fair value (Note1)
Inventec Investments Co., Ltd. Inventec Appliances Corp. `〞` `〞` `〞` `〞` `〞` `〞` `〞` `〞` `〞` `〞` Inventec Appliances (Cayman) Holding Corp. `〞` `〞` Inventec Appliances (Shanghai) Co., Ltd. `〞` Inventec Appliances (Nanjing) Co. Ltd. Inventec Appliances (Jiangning) Corp. Inventec Appliances (Nanchang) Corporation	E-TON Solar Tech. Co., Ltd SCOPE INDUSTRIES BERHAD Rong Cheng Tech. Co., Ltd. Tai Yi Precision Corporation Siano Mobile Silicon Inc. GCT Semiconductor, Inc. Pandigital Worldwide, Ltd. 3GTMobile Corporation Linc Global Inc. (Proximiant, Inc.) Molekule, Inc. 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) BOC Guaranteed CNY On Schedule Financial Product SCSB Winners CNY Financial Product `〞` `〞` `〞`	- - - - - - - - - - - - - - - - - - - -	Non-current financial assets at fair value through profit or loss Current financial assets at fair value through profit or loss Non-current financial assets at fair value through other comprehensive income `〞` `〞` `〞` `〞` `〞` `〞` `〞` `〞` Non-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 `〞` `〞` `〞` `〞`	15,813 32,000 1,950 635 461 93 939 314 594 1,603 1,778 - 99 1,250 446 - - - - -	66,573 50,255 - - - - - - - 152,800 24,056 14,795 - - - 300,713 321,906 125,863 1,193,300 77,371	% 4.95 % 4.58 % 9.38 % 1.67 % 0.15 % 0.12 % 4.80 % 2.88 % 5.30 % 1.57 % 3.05 % - % 0.03 % 2.36 % 2.08 % - % - % - % - % -	66,573 50,255 - - - - - - - 152,800 24,056 14,795 - - - 300,713 321,906 125,863 1,193,300 77,371

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 with the Group were eliminated in the consolidated financial statements.

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

〜 56 〜

(English Translation of Consolidated Financial Statements Originally Issued in Chinese)

REVIEWED ONLY, NOT AUDITED IN ACCORDANCE WITH GENERALLY ACCEPTED AUDITING STANDARDS INVENTEC CORPORATION AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT'D)

September 30, 2020 and 2019

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

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

(Amounts Expressed in Thousands of New Taiwan Dollars)

Name of company	Category and name of security (Note 1)	Account name (Note 1)	Name of counter-party	Relationship with the company	Beginnin	g Balance	Pur	chases		Sa	les		Ending	Balance
					Shares	Amount	Shares	Amount	Shares	Price	Cost	Gain (loss) on disposal	Shares	Amount
Inventec (Cayman) Corp. Inventec (Chongqing) Corp. Inventec Appliances (Shanghai) Corp. `〞` Inventec Appliances (Jiangning) Corp.	Chainwin Biotech and Agrotech (Cayman Islands) Co., Ltd. common shares CMBC Wealth Management Services SCSB Winners CNY Financial Product Bank of China SCSB Winners CNY Financial Product	Current financial assets at fair value through other comprehensive income Current financial assets at fair value through profit or loss `〞` `〞` `〞`	Cash Capital Increase CMBC Bank of Shanghai Bank of China Bank of Shanghai	Non-related barties - - - -	- - - - -	- 862,093 325,959 301,853 1,893,146	10,000 - - - -	630,716 - 952,873 296,571 4,761,016	- - - - -	- 870,410 965,046 302,288 5,500,242	- 862,093 956,926 297,711 5,460,862	- 8,317 8,120 4,577 39,380	10,000 - - - -	630,716 - 321,906 300,713 1,193,300

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.

Acquisition of individual real estate with amount exceeding the lower of TWD300 million or 20% of the capital stock: None.
Disposal of individual real estate with amount exceeding the lower of TWD300 million or 20% of the capital stock:

(Amounts Expressed in Thousands of New Taiwan Dollars)

Name of company	Types of property	Transaction Date	Original Acquisition Date	Book value	Transaction amount	Receipt Terms	Gain (loss) on disposal	Counter-party	Relationship	Purpose o disposal	f Price reference	Other terms
Inventec (Pudong) Co., Ltd.	Land and Building	2020.01.16	2003.06.27~ 2007.12.31	740,483	5,912,920	100%	4,890,869	Shanghai Jingshuo Data Science & Technology Co., Ltd.	Non-related parties	Optimize assets	Negotiated based on the valuation report with the amounts of RMB1,340,170 and RMB 1,364,810	None

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

〜 57 〜

(English Translation of Consolidated Financial Statements Originally Issued in Chinese)

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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT'D)

September 30, 2020 and 2019

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

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

(In Thousands of New Taiwan Dollars)

Name of company	Related party	Nature of relationship		Transacti	on details		Trans diffe	actions with terms rent from others	Notes/Accounts r	eceivable (payable)	Note
			Purchase/ Sale	Amount	Percentage of total purchases/sale	Payment terms	Unit price	Payment terms	Ending balance	Percentage of total notes/accounts receivable (payable)
The Company `〞` `〞` `〞` `〞` `〞` Inventec Holding (North America) Corp. `〞` `〞` `〞` `〞` Inventec (Czech), s.r.o. `〞` `〞` `〞` `〞` Inventec Corporation (Hong Kong) Ltd. `〞` `〞`	Inventec Holding (North America) Corp. Inventec (Czech), s.r.o. Inventec Corporation (Hong Kong) Ltd. Inventec Appliances (Jiangning) Corp. Inventec Holding (North America) Corp. Inventec (Czech), s.r.o. The Company The Company Inventec (Pudong) Technology Corp. Inventec (Czech), s.r.o. Inventec (Czech), s.r.o. The Company The Company Inventec Holding (North America) Corp. Inventec Holding (North America) Corp. Inventec (Pudong) Technology Corp. The Company Inventec (Pudong) Technology Corp. Inventec (Chongqing) Corp.	Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Parent Parent Associates Associates Associates Associates Associates Associates Associates Associates Parent Associates Associates	Sales Sales Purchases Purchases Purchases Purchases Purchases Sales Sales Sales Purchases Purchases Sales Purchases Sales Sales Sales Purchases Purchases	56,740,490 19,551,283 222,117,186 251,145 666,300 611,401 56,740,490 666,300 521,920 733,764 228,457 19,551,283 611,401 733,764 228,457 103,748 222,117,186 27,434,177 194,683,009	% 18.43 % 6.35 % 74.96 % 0.08 % 0.22 % 0.21 % 90.86 % 1.17 % 0.92 % 1.29 % 0.36 % 93.46 % 2.78 % 3.77 % 1.04 % 0.47 % 100.00 % 12.35 % 87.65	90 days 90 days 90 days 90 days 90 days 90 days 90 days 90 days 90 days 90 days 90 days 90 days 90 days 90 days 90 days 90 days 90 days 90 days 90 days	- - - - - - - - - - - - - - - - - - -	No general trading partner can be compared. `〞` `〞` `〞` `〞` `〞` `〞` `〞` `〞` `〞` `〞` `〞` `〞` `〞` `〞` `〞` `〞` `〞` `〞`	23,166,124 10,329,440 (67,470,364) (99,903) (587,492) (159,092) (23,166,124) 587,492 191,420 204,427 (81,301) (10,329,440) 159,092 (204,427) 81,301 16,387 67,470,364 (5,352,368) (62,117,996)	% 23.69 % 10.56 % 56.49 % 0.08 % 0.49 % 0.13 % 94.64 % 5.40 % 1.76 % 1.88 % 0.33 % 97.22 % 1.92 % 1.92 % 0.98 % 0.20 % 47.30 % 3.69 % 42.77

〜 58 〜

(English Translation of Consolidated Financial Statements Originally Issued in Chinese)

REVIEWED ONLY, NOT AUDITED IN ACCORDANCE WITH GENERALLY ACCEPTED AUDITING STANDARDS INVENTEC CORPORATION AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT'D)

September 30, 2020 and 2019

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

Name of company	Related party	Nature of relationship		Transacti	on details		Trans diffe	actions with terms rent from others	Notes/Accounts r	eceivable (payable)	Note
			Purchase/ Sale	Amount	Percentage of total purchases/sale	Payment terms	Unit price	Payment terms	Ending balance	Percentage of total notes/accounts receivable (payable)
Inventec (Pudong) Technology Corp. `〞` `〞` `〞` Inventec (Shanghai) Corp. Inventec (Chongqing) Corp. `〞` `〞` Inventec Appliances Corp. `〞` `〞` Inventec Appliances Corp. Inventec Appliances (USA) Distribution Corp. Inventec Appliances (Pudong) Corp. `〞` `〞` `〞`	Inventec Corporation (Hong Kong) Ltd. Inventec (Shanghai) Corp. Inventec Holding (North America) Corp. Inventec (Czech), s.r.o. Inventec (Pudong) Technology Corp. Inventec Corporation (Hong Kong) Ltd. Inventec Appliences (Pudong) Corp. Inventec Appliences (Pudong) Corp. Inventec Appliances (Pudong) Corp. Inventec Appliances (Jiangning) Corp. Inventec Appliances (Nanchang) Intelligent Manufacturing Co., Ltd. Inventec Appliances (USA) Distribution Corp. Inventec Appliances Corp. Inventec Appliances Corp. Inventec Appliances (Nanchang) Intelligent Manufacturing Co., Ltd. Inventec (Chongqing) Corp. Inventec (Chongqing) Corp.	Associates Associates Associates Associates Associates Associates Associates Associates Associates Associates Associates Associates Associates Parent Associates Associates Associates	Sales Sales Purchases Purchases Purchases Sales Sales Purchases Purchases Purchases Purchases Sales Purchases Sales Sales Sales Purchases	27,434,177 38,387,036 521,920 103,748 38,387,036 194,683,009 3,494,739 3,663,201 25,068,531 709,751 457,790 3,286,899 3,286,899 25,068,531 496,135 3,663,201 3,540,543	% 39.58 % 55.39 % 0.72 % 0.14 % 100.00 % 97.38 % 1.75 % 1.82 % 90.77 % 2.57 % 1.66 % 11.72 % 100.00 % 85.45 % 1.70 % 12.56 % 15.51	90 days 90 days 90 days 90 days 90 days 90 days 60 days 60 days 1-2 months 1-2 months 1-2 months 1-2 months 1-2 months 1-2 months 1-2 months 60 days 60 days	- - - - - - - - - - - - - - - - -	No general trading partner can be compared. `〞` `〞` `〞` `〞` `〞` `〞` `〞` `〞` `〞` `〞` `〞` `〞` `〞` `〞` `〞` `〞`	5,352,368 18,997,827 (191,420) (16,387) (18,997,827) 62,117,996 157 (1,095) (10,853,789) (166,689) (220,950) 274,536 (274,536) 10,853,789 395,934 1,095 (154)	% 21.67 % 76.91 % 0.60 % 0.05 % 100.00 % 99.53 % 0.00 % 0.00 % 90.13 % 1.57 % 2.09 % 3.88 % 100.00 % 96.06 % 3.91 % - % -

〜 59 〜

(English Translation of Consolidated Financial Statements Originally Issued in Chinese)

REVIEWED ONLY, NOT AUDITED IN ACCORDANCE WITH GENERALLY ACCEPTED AUDITING STANDARDS INVENTEC CORPORATION AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT'D)

September 30, 2020 and 2019

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

Name of company	Related party	Nature of relationship		Transacti	on details		Trans diffe	actions with terms rent from others	Notes/Accounts r	eceivable (payable)	Note
			Purchase/ Sale	Amount	Percentage of total purchases/sale	Payment terms	Unit price	Payment terms	Ending balance	Percentage of total notes/accounts receivable (payable)
Inventec Appliances (Jiangning) Corp. `〞` Inventec Appliances (Nanchang) Intelligent Manufacturing Co., Ltd. `〞`	Inventec Appliances Corp. Inventec Corp. Inventec Appliances Corp. Inventec Appliances (Pudong) Corp.	Associates Parent Parent Associates	Sales Sales Sales Purchases	709,751 251,145 457,790 496,135	% 21.08 % 7.61 % 98.82 % 100.00	1-2 months 90 days 1-2 months 1-2 months	- - - -	No general trading partner can be compared. `〞` `〞` `〞`	166,689 99,903 220,950 (395,934)	% 19.27 % 11.55 % 99.33 % 99.67

Note 1: Based on the negotiated price while trading.

Note 2: The transactions with the Group were eliminated in the consolidated financial statement.

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 (Pudong) Technology Corp. `〞` Inventec (Chongqing) Corp. Inventec Appliances Corp.	Inventec Holding (North America) Corp. Inventec (Czech), s.r.o. Inventec Corporation (Hong Kong) Ltd. (Note) The Company Inventec (Pudong) Technology Corp. Inventec (Czech), s.r.o. The Company The Company Inventec (Pudong) Technology Corp. (Note) Inventec (Chongqing) Corp. (Note) Inventec Corporation (Hong Kong) Ltd. Inventec (Shanghai) Corp. Inventec Corporation (Hong Kong) Ltd. Inventec Appliances (USA) Distribution Corp.	Subsidiary Subsidiary Subsidiary Parent Associates Associates Parent Parent Associates Associates Associates Associates Associates Subsidiary	23,166,124 10,329,440 74,985,523 587,492 191,420 204,427 159,092 67,470,364 22,696,923 52,288,600 5,352,368 18,997,827 62,117,996 274,536	8.71 5.44 - 4.75 14.08 9.60 16.55 12.02 - - 7.17 8.43 13.30 3.56	7,903,047 3,969,854 9,238,758 31,708 - - - - 9,219,984 253 - 1,245,370 - -	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	4,131,714 1,958,194 9,614,529 17,888 - - 158,840 15,703,990 4,376,528 5,238,001 4,900,556 4,698,038 10,803,414 182,141	- - - - - - - - - - - - - -

〜 60 〜

(English Translation of Consolidated Financial Statements Originally Issued in Chinese)

REVIEWED ONLY, NOT AUDITED IN ACCORDANCE WITH GENERALLY ACCEPTED AUDITING STANDARDS INVENTEC CORPORATION AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT'D)

September 30, 2020 and 2019

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

Name of company	Counter party	Relationship	Ending balance	Turnover balance	Ov	erdue	Amounts received in subsequent period	Allowance for bad debts
					Amount	Action taken
Inventec Appliences (Pudong) Corp. Inventec Appliences (Pudong) Corp. Inventec Appliances (Jiangning) Corp. Inventec Appliances (Nanchang) Intelligent Manufacturing Co., Ltd.	Inventec Appliances Corp. Inventec Appliances (Nanchang) Intelligent Manufacturing Co., Ltd. Inventec Appliances Corp. `〞`	Parent Associates Parent Parent	10,853,789 395,934 166,689 220,950	2.64 3.34 8.16 8.29	- - - -		1,362,248 21,168 88,782 21,168	- - - -

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

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

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

No.	Name of company	Name of counter party	Existing relationship with the counter- party		Tr	ansactions
				Account name	Amount	Terms of trading	Percentage of the consolidated total revenue or total assets
0 1 2	Inventec Corporation " " " " " " Inventec Corporation (Hong Kong) Ltd. " " " " " Inventec Appliances Corp. "	Inventec Holding (North America) Corp. " Inventec (Czech), s.r.o. " Inventec Corporation (Hong Kong) Ltd. " " Inventec (Pudong) Technology Corp. " " Inventec (Chongqing) Corp. " " Inventec Appliances (Pudong) Corp. "	1 1 1 1 1 1 1 3 3 3 3 3 3 3 3	Sales Account Receivable Sales Account Receivable Purchases Other Receivable Account Payable Purchases Account Payable Account Receivable Purchases Account Payable Account Receivable Purchases Account Payable	56,740,490 23,166,124 19,551,283 10,329,440 222,117,186 74,985,523 67,470,364 27,434,177 5,352,368 22,696,923 194,683,009 62,117,996 52,288,600 25,068,531 10,853,789	Negotiated price 90 days Negotiated price 90 days Negotiated price 90 days `〞` Negotiated price 90 days `〞` Negotiated price 90 days `〞` Negotiated price 1-2 months	% 15 % 10 % 5 % 4 % 58 % 32 % 29 % 7 % 2 % 10 % 51 % 27 % 23 % 7 % 5

Note 1: The labeling method is as follows:

1.Parent company labeled 0.
2.Subsidiaries labeled in number sequence from 1.

Note 2: Relationship is classified into three types: 1.Parent company to subsidiary.

2.Subsidiary to parent company.

3.Subsidiary to subsidiary.

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

〜 61 〜

(English Translation of Consolidated Financial Statements Originally Issued in Chinese)

REVIEWED ONLY, NOT AUDITED IN ACCORDANCE WITH GENERALLY ACCEPTED AUDITING STANDARDS INVENTEC CORPORATION AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT'D)

September 30, 2020 and 2019

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

(b) Information on investment:

The following is the information on investees for the nine months ended September 30, 2020 (excluding investees in Mainland China):

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

Investor company	Investee company	Location	Main businesses and products	Original inves	tment amount	Balance a	s of September 3	0, 2020	Net income (loss) of the investee	Share of profits/losses of investee	Note
				September 30, 2020	September 30, 2019	Shares/Units (In thousands)	Percentage of ownership	Carrying value
The Company `〞` `〞` `〞` `〞` `〞` `〞` `〞` `〞` `〞` `〞` `〞` `〞` Inventec Investment Co., Ltd. `〞`	Inventec Besta Co., Ltd. Inventec Corporation (Hong Kong) Ltd. Inventec Holding (North America) Corp. Inventec Appliances Corp. Inventec (Cayman) Corp. IEC (Cayman) Corporation Inventec (Czech), S.R.O. Inventec Investment Co., Ltd. Inventec Solar Energy Corporation Inventec Development Japan Corporation Inventec Japan Corporation AIMobile Co., Ltd. Inventec Manufacturing (India) Private Limited Inventec Solar Energy Corporation Inventec Manufacturing (India) Private Limited	Taipei Hong Kong USA New Taipei City Cayman Cayman Czech Taipei Taoyuan Japan Japan Taipei India Taoyuan India	Electronic dictionary Investing in Mainland China and import and export business Investment of holding company in America Wireless terminal products Holding Company Holding Company Computer products assembly operations Investment Company Developing, production and selling of multicrystalline solar cells Developing, designing and selling computer peripherals Trading and management service Developing, production and selling of intelligent mobile device Computer products assembly operations Developing, production and selling of multicrystalline solar cells Computer products assembly operations	420,347 167,162 159,003 9,656,877 9,812,963 739,500 85,921 1,000,000 1,087,800 630,845 2,954 220,000 281,691 150,000 28	420,347 167,162 159,003 9,656,877 9,812,963 739,500 85,921 1,000,000 1,087,800 630,845 2,954 220,000 281,691 150,000 28	23,405 2,500 5,000 536,857 301,768 25,000 - 108,800 108,150 45 - 22,000 55,994 15,000 6	% 37.53 % 100.00 % 100.00 % 100.00 % 100.00 % 100.00 % 100.00 % 100.00 % 33.45 % 100.00 % 100.00 % 55.00 % 99.99 % 4.64 % 0.01	219,090 357,494 1,266,966 8,688,038 18,902,309 1,082,526 65,229 150,914 41,675 16,730 3,456 50,967 (25,315) 2,771 (3)	(35,883) 8,064 19,084 464,752 5,355,796 156,142 35,400 (24,994) (676,098) (832) 703 (55,314) (1,991) (676,098) (1,991)	(13,466) 8,064 19,084 464,752 5,355,796 156,142 35,400 (24,994) (208,327) (832) 703 (30,416) (1,157) - -	Associate under equity method Subsidiary `〞` `〞` `〞` `〞` `〞` `〞` `〞` `〞` `〞` `〞` `〞` Associate Company `〞`

〜 62 〜

(English Translation of Consolidated Financial Statements Originally Issued in Chinese)

REVIEWED ONLY, NOT AUDITED IN ACCORDANCE WITH GENERALLY ACCEPTED AUDITING STANDARDS INVENTEC CORPORATION AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT'D)

September 30, 2020 and 2019

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

Investor company	Investee company	Location	Main businesses and products	Original inves	tment amount	Balance a	s of September 3	0, 2020	Net income (loss) of the investee	Share of profits/losses of investee	Note
				September 30, 2020	September 30, 2019	Shares/Units (In thousands)	Percentage of ownership	Carrying value
Inventec Appliances Corp. `〞` `〞` Inventec Appliances (Cayman) Holding Corp. `〞` Inventec Appliences (Pudong) Corp.	Inventec Appliances (Cayman) Holding Corp. Gainia Intellectual Asset Services, Inc. Inventec Solar Energy Corporation Inventec Appliances (USA) Distribution Corp. Inventec Appliances Corporation USA, Inc. Inventec Appliances (Malaysia) SDN. BHD.	Cayman Taipei Taoyuan USA `〞` Malaysia	Holding Compan Intellectual property rights integrative services Developing, production and selling of multicrystalline solar cells Selling of MP3 Player, PDA and science plotter Selling services Manufacture and sale of electronic materials and products	y 5,807,622 6,400 311,160 23,280 1,455 497,438	5,807,622 6,400 311,160 23,280 1,455 7,006	199,575 205 30,930 400 10 71,000	% 100.00 % 38.90 % 9.57 % 100.00 % 100.00 % 100.00	16,592,232 1,128 5,713 94,311 13,059 488,848	82,930 (1,487) (676,098) 735 662 (8,421)	- - - - - -	Associate Company Associate under equity method Associate Company `〞` `〞` `〞`

Note 1: The transactions with the Group were eliminated in the consolidated 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. Note 3: According to the regulations, investment companies other than the Company are not required to disclose the share of income / loss of investees.

(c) Information on 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-in capital	Method of investment (Note 1)	Accumulated outflow of investment from Taiwan as of January 1, 2020	Investm	ent flows	Accumulated outflow of investment from Taiwan as of September 30, 2020	Net income (losses) of the investee	Percentage of ownership	Investment income (losses) (Note 2)	Book value	Accumulated remittance of earnings in current period (Note 8)
					Out-flow	Inflow
Inventec (Shanghai) Service Co., Ltd Inventec (ChongQing) Service Co., Ltd Inventec (Pudong) Co., Ltd. Inventec (Shanghai) Co., Ltd. Inventec (ChongQing) Corporation	Multimedia computer and system parts assembling Multimedia computer and system parts assembling Multimedia computer and system parts assembling Multimedia computer and system parts assembling Multimedia computer and system parts assembling	184,715 29,100 1,455,000 2,043,278 2,182,500	(2) (2) (2) (2) (2)	58,200 29,100 1,455,000 858,450 2,182,500	- - - - -	- - - - -	58,200 29,100 1,455,000 858,450 2,182,500	(748) (683) 3,306,722 77,622 1,407,995	% 100.00 % 100.00 % 100.00 % 100.00 % 100.00	(748) (683) 3,306,722 77,622 1,407,995	120,835 39,844 3,811,195 1,804,718 7,176,268	30,234 - - - 2,242,107

〜 63 〜

(English Translation of Consolidated Financial Statements Originally Issued in Chinese)

REVIEWED ONLY, NOT AUDITED IN ACCORDANCE WITH GENERALLY ACCEPTED AUDITING STANDARDS INVENTEC CORPORATION AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT'D)

September 30, 2020 and 2019

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

Name of investee	Main businesses and products	Total amount of paid-in capital	Method of investment (Note 1)	Accumulated outflow of investment from Taiwan as of January 1, 2020	Investm	ent flows	Accumulated outflow of investment from Taiwan as of September 30, 2020	Net income (losses) of the investee	Percentage of ownership	Investment income (losses) (Note 2)	Book value	Accumulated remittance of earnings in current period (Note 8)
					Out-flow	Inflow
Inventec (Pudong) Technology Corp. Inventec Electronics (Tianjin) Co., Ltd. Inventec (Beijing) Electronics Technology Co., Ltd. Inventec Hi-Tech Corporation Inventec Huan Hsin (Zhejiang) Technology Co., Ltd. Inventec Asset- Management (Shanghai) Corporation Saint Investment consulting corporation Inventec Appliances (Shanghai) Co., Ltd. Inventec Appliances (Pudong) Corp. Inventec Appliances (Jiangning) Corp. Inventec Appliances (Nanjing) Corp. Inventec Appliances (XI'AN) Corporation Inventec Appliances (Nanchang) Corp. APEX Business Management & Consulting (Shanghai) Co., Ltd. Inventec Appliances (Shanghai) Enterprise Inventec Appliances (Nan chang) Intelligent Manufacturing Co., Ltd.	Multimedia computer and system parts assembling Software production Software production Multimedia computer and system parts assembling Complete of the electronic computer and product and sale of external equipment Equipment leasing, storage, technological development and saleof computer Business management consulting Electronic communication and products assemble Electronic communication and products assemble Electronic communication and products assemble House leasing Electronic communication and products assemble Electronic communication and products assemble Business Management Development and consultation on software and hardware; as well as selling of electronic products Manufacture of wearable devices and developing, design, manufacture and sale of telecommunications	1,705,019 145,500 42,195 1,455,000 835,170 1,829,763 85,462 1,501,560 2,240,700 1,978,800 145,500 116,400 61,110 2,144 34,185 256,384	(2) (2) (2) (2) (2) (3) (3) (2) (2) (2) (2) (2) (2) (3) (3) (3)	1,455,000 123,675 42,195 1,455,000 840,379 - - 1,400,235 2,240,700 1,222,200 261,361 116,400 61,110 - - -	- - - - - - - - - - - - - - - -	- - - - - - - - - - - - - - - -	1,455,000 123,675 42,195 1,455,000 840,379 - - 1,400,235 2,240,700 1,222,200 261,361 116,400 61,110 - - -	964,128 5,382 (4,739) (37,022) (1,350) (16,722) 20 (18,214) (96,322) 217,653 10,074 7,165 (37,217) 17,346 (1,353) (57,807)	% 100.00 % 100.00 % 100.00 % 100.00 % 100.00 % 78.00 % 100.00 % 100.00 % 100.00 % 100.00 % 100.00 % 100.00 % 100.00 % 100.00 % 100.00 % 100.00	961,037 5,382 (4,739) (37,022) (1,350) (13,043) 20 (18,214) (105,687) 214,504 10,074 7,165 (37,217) 17,346 (1,353) (57,807)	5,414,852 228,784 69,454 1,134,285 4,520 1,349,830 85,481 1,751,262 9,113,260 5,088,996 372,985 46,532 92,320 74,447 25,518 126,597	321,599 149,517 - - - - - 1,535,981 2,297,117 1,636,736 85,353 - - - - -

〜 64 〜

(English Translation of Consolidated Financial Statements Originally Issued in Chinese)

REVIEWED ONLY, NOT AUDITED IN ACCORDANCE WITH GENERALLY ACCEPTED AUDITING STANDARDS INVENTEC CORPORATION AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT'D)

September 30, 2020 and 2019

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

2. Limitation on investment in Mainland China:

2. Limitation on inves	tment in Mainland China:
Name of Company	Accumulated Investment in Mainland China as of September 30, 2020	Investment Amounts Authorized by Investment Commission, MOEA	Upper Limit on Investment (Note 3,4,7)
The Company Inventec Appliances Corp.	8,560,605 5,366,855	8,560,605 5,366,855	- 4,751,150

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.
(c) Others

Note 2: The base of recognition of investment income (loss) is the financial statement reviewed by CPA or book value 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 was exchanged to New Taiwan Dollars in historical exchange rates.

Note 7: After the accumulated investment in Mainland China as of September 30, 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 Group were eliminated in the consolidated financial statements

3. Significant transactions:

The significant inter-company transactions with the subsidiary in Mainland China for the nine months ended September 30, 2020, are disclosed in “Information on significant transactions”.

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

(14) Segment Information

(a) General information

The Group reportable segments: core department and solar energy department. The core department manufactures computer products and sells them to customers. The solar energy department develops and manufactures emerging environmental energy.

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

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

For the three months ended September 30, 2020	For the three months ended September 30, 2020	For the three months ended September 30, 2020	For the three months ended September 30, 2020
Core $ 145,168,278 - $ 145,168,278 $ 2,632,926	Solar energy 212,097 - 212,097 (339,011)	Adjustment and Elimination - - - -	Total 145,380,375 -
			145,380,375
			2,293,915

〜 65 〜

(English Translation of Consolidated Financial Statements Originally Issued in Chinese)

REVIEWED ONLY, NOT AUDITED IN ACCORDANCE WITH GENERALLY ACCEPTED AUDITING STANDARDS INVENTEC CORPORATION AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT'D)

September 30, 2020 and 2019

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

For the three months ended September 30, 2019	For the three months ended September 30, 2019	For the three months ended September 30, 2019	For the three months ended September 30, 2019
Core $ 127,608,418 - $ 127,608,418 $ 1,577,095 For	Solar energy Adjustment and Elimination Total 1,099,433 - 128,707,851 - - - 1,099,433 - 128,707,851 (75,410) - 1,501,685 the nine months ended September 30, 2020		Total 128,707,851 -
			128,707,851
			1,501,685
	Solar energy 1,115,168 - 1,115,168 (730,881)	Adjustment and Elimination - - - -	Total 382,817,282 -
			382,817,282
			9,531,028

For	the nine months ended September 30, 2019	the nine months ended September 30, 2019	the nine months ended September 30, 2019
Core $ 368,345,777 - $ 368,345,777 $ 5,707,311 $ - $ - $ -	Solar energy 3,028,998 - 3,028,998 (854,788) - - -	Adjustment and Elimination - - - - - - -	Total 371,374,775 -
			371,374,775
			4,852,523
			-
			-
			-

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

The operating segment accounting policies are similar to those described in Note (2) “Significant accounting policies”. Reportable segment profit or loss is based on operating profit or loss before taxation, and as the base of performance evaluation.

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

〜 66 〜

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INVENTEC — Interim / Quarterly Report 2020

52026_rns_2020-11-26_70cc1f72-69d6-4562-ab01-0191b0e60d35.pdf

INVENTEC CORPORATION AND SUBSIDIARIES

CONSOLIDATED FINANCIAL STATEMENTS

Table of contents

KPMG

Independent Auditors’ Review Report

Introduction

Scope of Review

Basis for Qualified Conclusion

Qualified Conclusion

KPMG

Notes to Readers

(English Translation of Consolidated Financial Statements Originally Issued in Chinese)

REVIEWED ONLY, NOT AUDITED IN ACCORDANCE WITH GENERALLY ACCEPTED AUDITING STANDARDS AS OF SEPTEMBER 30, 2020 AND 2019

INVENTEC CORPORATION AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

September 30, 2020, December 31, 2019, and September 30, 2019

(English Translation of Consolidated Financial Statements Originally Issued in Chinese) Reviewed only, not audited in accordance with generally accepted auditing standards INVENTEC CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

For the Three months and nine months ended September 30, 2020 and 2019

(Expressed in Thousands of New Taiwan Dollars)

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

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

For the Nine Months Ended September 30, 2020 and 2019

Equity attributable to owners of parent

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

INVENTEC CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

For the Nine Months Ended September 30, 2020 and 2019

(Expressed in Thousands of New Taiwan Dollars)

INVENTEC CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS (CONT'D)

For the Nine Months Ended September 30, 2020 and 2019

REVIEWED ONLY, NOT AUDITED IN ACCORDANCE WITH GENERALLY ACCEPTED AUDITING STANDARDS INVENTEC CORPORATION AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

September 30, 2020 and 2019

(1) Overview

(2) Financial Statements Authorization Date and Authorization Process

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

REVIEWED ONLY, NOT AUDITED IN ACCORDANCE WITH GENERALLY ACCEPTED AUDITING STANDARDS INVENTEC CORPORATION AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT'D)

September 30, 2020 and 2019

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

REVIEWED ONLY, NOT AUDITED IN ACCORDANCE WITH GENERALLY ACCEPTED AUDITING STANDARDS INVENTEC CORPORATION AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT'D)

September 30, 2020 and 2019

(4) Summary of Significant Accounting Policies

REVIEWED ONLY, NOT AUDITED IN ACCORDANCE WITH GENERALLY ACCEPTED AUDITING STANDARDS INVENTEC CORPORATION AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT'D)

September 30, 2020 and 2019

REVIEWED ONLY, NOT AUDITED IN ACCORDANCE WITH GENERALLY ACCEPTED AUDITING STANDARDS INVENTEC CORPORATION AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT'D)

September 30, 2020 and 2019

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

REVIEWED ONLY, NOT AUDITED IN ACCORDANCE WITH GENERALLY ACCEPTED AUDITING STANDARDS INVENTEC CORPORATION AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT'D)

September 30, 2020 and 2019

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

REVIEWED ONLY, NOT AUDITED IN ACCORDANCE WITH GENERALLY ACCEPTED AUDITING STANDARDS INVENTEC CORPORATION AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT'D)

September 30, 2020 and 2019

(a) Judgment on existence of substantial control over investee

(6) Explanation to Significant Accounts

REVIEWED ONLY, NOT AUDITED IN ACCORDANCE WITH GENERALLY ACCEPTED AUDITING STANDARDS INVENTEC CORPORATION AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT'D)

September 30, 2020 and 2019

REVIEWED ONLY, NOT AUDITED IN ACCORDANCE WITH GENERALLY ACCEPTED AUDITING STANDARDS INVENTEC CORPORATION AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT'D)

September 30, 2020 and 2019

2) Financial liabilities:

REVIEWED ONLY, NOT AUDITED IN ACCORDANCE WITH GENERALLY ACCEPTED AUDITING STANDARDS INVENTEC CORPORATION AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT'D)

September 30, 2020 and 2019

REVIEWED ONLY, NOT AUDITED IN ACCORDANCE WITH GENERALLY ACCEPTED AUDITING STANDARDS INVENTEC CORPORATION AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT'D)

September 30, 2020 and 2019

REVIEWED ONLY, NOT AUDITED IN ACCORDANCE WITH GENERALLY ACCEPTED AUDITING STANDARDS INVENTEC CORPORATION AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT'D)

INVENTEC Interim / Quarterly Report 2020