Stock Code:2356

INVENTEC CORPORATION AND SUBSIDIARIES

CONSOLIDATED FINANCIAL STATEMENTS

With Independent Auditors’ Review Report For the Three Months Ended March 31, 2021 and 2020

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

The independent auditors’ 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
	1 2 3 4 5 6 7 9 9 9～10 10～12 12～13 13～47 47～50 50 50～51 51 51 51 51～59 59～60 61～62 61～62 62～63

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

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KPMG

��110615��5�7�68�(��101��) Telephone �� + 886 2 8101 6666 68F., TAIPEI 101 TOWER, No. 7, Sec. 5, Fax �� + 886 2 8101 6667 Xinyi Road, Taipei City 110615, Taiwan (R.O.C.) Internet �� 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 March 31, 2021 and 2020, and the related consolidated statements of comprehensive income, changes in equity and cash flows for the three months ended March 31, 2021 and 2020, 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 $64,287,015 thousand and $70,961,725 thousand, constituting 30% and 36% of the consolidated total assets; and the total liabilities amounting to $18,068,447 thousand and $16,280,251 thousand, constituting 11% and 11% of the consolidated total liabilities as of March 31, 2021 and 2020, respectively; as well as the total comprehensive income (loss) amounting to $(8,497) thousand and $(974,865) thousand, constituting (1)% and (33)% of the consolidated total comprehensive income (loss) for the three months ended March 31, 2021 and 2020, respectively.

〜 3 〜

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Furthermore, as stated in Note (6)(f), the other equity accounted investments of the Group in its investee companies of $24,264 thousand and $848 thousand as of March 31, 2021 and 2020, respectively, and its equity in net earnings on these investee companies of $(781) thousand and $(858) thousand 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 March 31, 2021 and 2020, and of its consolidated financial performance and its consolidated cash flows for the three months ended March 31, 2021 and 2020 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 Rou-Lan Kuo.

KPMG

Taipei, Taiwan (Republic of China) May 11, 2021

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 MARCH 31, 2021 AND 2020

INVENTEC CORPORATION AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

March 31, 2021, December 31, 2020, and March 31, 2020

(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)(k)) 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)) 1780 Intangible assets (Notes (6)(j)) 1900 Other non-current assets (Notes (4), (6)(k) and (6)(q)) TOTAL ASSETS	2021.3.31 Amount % $ 36,783,886 17 1,076,893 - 1,588,510 1 87,490,422 40 789,867 - 45,410,447 21 4,031,427 2 177,171,452 81 876,612 - 3,731,380 2 229,575 - 27,975,741 13 3,301,931 2 925,498 - 3,411,033 2 40,451,770 19 $ 217,623,222 100	2020.12.31 Amount % 32,951,595 16 782,284 - 1,405,689 1 91,811,309 43 844,441 - 41,416,323 19 4,258,311 2 173,469,952 81 911,660 - 3,657,808 2 211,643 - 28,004,583 13 3,403,891 2 875,801 - 3,626,099 2 40,691,485 19 214,161,437 100	2020.3.31 Amount % 38,140,243 19 2,151,308 1 1,070,518 1 57,119,954 29 498,969 - 54,815,470 28 3,001,810 2 156,798,272 80 548,349 - 2,621,478 1 241,816 - 29,717,278 15 3,182,264 2 858,000 1 2,488,386 1 39,657,571 20 196,455,843 100 LIABILITIES AND EQUITY Current Liabilities： 2100 Short-term borrowings (Note (6)(m)) 2120 Current financial liabilities at fair value through profit or loss (Notes (6)(b)) 2130 Current contract liabilities (Note (6)(u)) 2170 Accounts payable (Note (7)) 2230 Current tax liabilities 2200 Other payables (Note (6)(r) and (7)) 2322 Long-term borrowings, current portion (Note (6)(m)) 2280 Current lease liabilities (Notes (4) and (6)(n)) 2399 Other current liabilities, others (Note (6)(l)) Non-current Liabilities： 2540 Long-term borrowings (Note (6)(m)) 2640 Net defined benefit liability, non-current (Notes (4) and (6)(p)) 2580 Non-current lease liabilities (Notes (4) and (6)(n)) 2670 Other non-current liabilities, others (Notes (6)(l) and (6)(q)) Total Liabilities Equity attributable to owners of parent： 3110 Ordinary share (Note (6)(r)) 3200 Capital surplus (Note (6)(r)) 3300 Retained earnings (Note (6)(r)) 3400 Other equity interest (Note (6)(r)) Total equity attributable to owners of parent 36XX Non-controlling interests Total Equity TOTAL LIABILITIES AND EQUITY	2021.3.31 Amount % $ 36,155,169 17 426,739 - 7,200,829 3 77,220,022 36 2,102,053 1 15,874,418 7 330,744 - 204,750 - 12,637,723 6 152,152,447 70 6,301,029 3 643,672 - 697,135 - 5,424,789 3 13,066,625 6 165,219,072 76 35,874,751 17 2,899,284 1 15,620,439 7 (1,826,910) (1) 52,567,564 24 (163,414) - 52,404,150 24 $ 217,623,222 100	2020.12.31 Amount % 31,890,755 15 250,136 - 7,828,232 4 74,370,226 35 2,296,677 1 11,595,245 5 330,744 - 216,479 - 11,765,194 6 140,543,688 66 8,990,825 4 656,171 - 748,035 - 5,331,975 3 15,727,006 7 156,270,694 73 35,874,751 17 2,899,284 1 21,112,549 10 (1,901,925) (1) 57,984,659 27 (93,916) - 57,890,743 27 214,161,437 100	2020.3.31 Amount % 21,289,727 11 118,856 - 6,602,792 3 76,339,037 39 2,990,198 2 14,382,592 7 331,144 - 195,507 - 10,191,761 5 132,441,614 67 3,824,425 2 628,690 - 828,080 1 4,300,056 2 9,581,251 5 142,022,865 72 35,874,751 18 2,913,461 2 16,653,724 9 (1,769,468) (1) 53,672,468 28 760,510 - 54,432,978 28 196,455,843 100

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 ended March 31, 2021 and 2020

(Expressed in Thousands of New Taiwan Dollars)

For the th 2021	ree mont	hs ended March 31,
	% 100 95 5 1 1 2 - 4 1 - - - - - - 1 - 1 - - - - - - - - - 1 1 - 1 1 - 1 0.32 0.32	2020 Amount 88,679,110 84,483,360 4,195,750 585,323 1,091,798 2,272,811 (7,489) 3,942,443 253,307 294,972 72,223 4,791,539 (246,281) (528) 4,911,925 5,165,232 2,230,498 2,934,734 229,716 (4,128) - 225,588 (195,456) (722) - (196,178) 29,410 2,964,144 3,031,759 (97,025) 2,934,734 3,065,038 (100,894) 2,964,144
Amount $ 111,848,189 106,728,005 5,120,184 712,712 959,865 2,470,933 (4,674) 4,138,836 981,348 283,829 63,710 248,424 (166,170) (5,912) 423,881 1,405,229 328,082 1,077,147 161,730 - - 161,730 (88,773) 132 - (88,641) 73,089 $ 1,150,236 $ 1,144,719 (67,572) $ 1,077,147 $ 1,219,734 (69,498) $ 1,150,236 $			% 100 95

			5
			1 1 3 -
			5
			-
			- - 6 - -
			6
			6 3
			3
			- - -
			-
			- - -
			-
			-
			3
			3 -
			3
			3 -
			3
			0.85
$			0.84

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 Three Months Ended March 31, 2021 and 2020

(Expressed in Thousands of New Taiwan Dollars)

		Equity attributable to owners of parent	Equity attributable to owners of parent	Equity attributable to owners of parent	Equity attributable to owners of parent	Total Equity
Capital Stock Share Capital $ 35,874,751 - - - - - - $ 35,874,751 $ 35,874,751 - - - - $ 35,874,751	Capital Surplus 2,913,461 - - - - - - 2,913,461 2,899,284 - - - - 2,899,284	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 (2,005,134) 183,129 - - (192,309) 225,588 (192,309) 225,588 - - - 19,258 - - (2,197,443) 427,975 (2,467,365) 565,440 - - (86,715) 161,730 (86,715) 161,730 - - (2,554,080) 727,170
					Exchange Differences on Translation of Foreign Financial Statements (2,005,134) - (192,309) (192,309) - - - (2,197,443) (2,467,365) - (86,715) (86,715) - (2,554,080)
		Legal Reserve 10,799,605 - - - - - - 10,799,605 11,345,901 - - - - 11,345,901	Special Reserve 1,646,357 - - - - - - 1,646,357 1,822,004 - - - - 1,822,004	Unappropriated Retained Earnings
				5,858,979 3,031,759 - 3,031,759 (4,663,718) (19,258) - 4,207,762 7,944,644 1,144,719 - 1,144,719 (6,636,829) 2,452,534		56,971,228 2,934,734 29,410
						2,964,144
						(4,663,718) - (838,676)
						54,432,978
						57,890,743 1,077,147 73,089
						1,150,236
						(6,636,829)
						52,404,150

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 Three Months Ended March 31, 2021 and 2020

(Expressed in Thousands of New Taiwan Dollars)

Cash flows from operating activities: Profit before tax Adjustments: Adjustments to reconcile profit: Depreciation expenses Amortization expenses Expected credit gains Interest expenses Interest income Shares of losses of associates and joint ventures accounted for using equity method Losses (gains) on disposal of property, plant and equipment Losses (gains) on disposal of investments accounted for using equity method Impairment losses on non-financial assets Unrealized foreign exchange gains Total adjustments to reconcile profit Changes in operating assets and liabilities: Changes in operating assets: (Increase) decrease in financial assets at fair value through profit or loss, mandatorily measured at fair value Decrease in accounts receivable Decrease in other receivables Increase in inventories Decrease (increase) in other current assets Total changes in operating assets Changes in operating liabilities: Increase in financial liabilities held for trading (Decrease) increase in contract liabilities Increase in accounts payable Decrease in other payables Increase 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 inflow generated from operations Interest received Interest paid Income taxes paid Net cash flows from operating activities	For the three months ended March 31, 2021 2020 $ 1,405,229 5,165,232 594,837 775,489 243,526 211,232 (4,674) (7,489) 166,170 246,281 (283,829) (294,972) 5,912 528 25,997 (4,891,005) 22,242 (24,435) 4,043 - (11,218) (521,300) 763,006 (4,505,671) (332,625) 27,038 4,829,452 31,274,741 246,737 245,998 (4,005,527) (17,594,061) 583,602 (147,893) 1,321,639 13,805,823 176,457 10,681 (624,785) 157,315 2,719,592 5,839,189 (2,442,735) (1,769,343) 671,649 649,845 (12,499) (11,711) 487,679 4,875,976 1,809,318 18,681,799 2,572,324 14,176,128 3,977,553 19,341,360 385,734 337,068 (144,666) (279,950) (414,799) (927,428) 3,803,822 18,471,050
	2021 $ 1,405,229 594,837 243,526 (4,674) 166,170 (283,829) 5,912 25,997 22,242 4,043 (11,218) 763,006 (332,625) 4,829,452 246,737 (4,005,527) 583,602 1,321,639 176,457 (624,785) 2,719,592 (2,442,735) 671,649 (12,499) 487,679 1,809,318 2,572,324 3,977,553 385,734 (144,666) (414,799) 3,803,822

Cash flows from operating activities:
Profit before tax
Adjustments:
Adjustments to reconcile profit:
Depreciation expenses
Amortization expenses
Expected credit gains
Interest expenses
Interest income
Shares of losses of associates and joint ventures accounted for using equity method
Losses (gains) on disposal of property, plant and equipment
Losses (gains) on disposal of investments accounted for using equity method
Impairment losses on non-financial assets
Unrealized foreign exchange gains
Total adjustments to reconcile profit
Changes in operating assets and liabilities:
Changes in operating assets:
(Increase) decrease in financial assets at fair value through profit or loss, mandatorily measured at fair
value
Decrease in accounts receivable
Decrease in other receivables
Increase in inventories
Decrease (increase) in other current assets
Total changes in operating assets
Changes in operating liabilities:
Increase in financial liabilities held for trading
(Decrease) increase in contract liabilities
Increase in accounts payable
Decrease in other payables
Increase 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 inflow generated from operations
Interest received
Interest paid
Income taxes paid
Net cash flows from operating activities

For the three months ended
March 31,
2021
2020
$ 1,405,229
5,165,232
594,837
775,489
243,526
211,232
(4,674)
(7,489)
166,170
246,281
(283,829)
(294,972)
5,912
528
25,997
(4,891,005)
22,242
(24,435)
4,043
-
(11,218)
(521,300)
763,006
(4,505,671)
(332,625)
27,038
4,829,452
31,274,741
246,737
245,998
(4,005,527)
(17,594,061)
583,602
(147,893)
1,321,639
13,805,823
176,457
10,681
(624,785)
157,315
2,719,592
5,839,189
(2,442,735)
(1,769,343)
671,649
649,845
(12,499)
(11,711)
487,679
4,875,976
1,809,318
18,681,799
2,572,324
14,176,128
3,977,553
19,341,360
385,734
337,068
(144,666)
(279,950)
(414,799)
(927,428)
3,803,822
18,471,050

2021
$ 1,405,229
594,837
243,526
(4,674)
166,170
(283,829)
5,912
25,997
22,242
4,043
(11,218)
763,006
(332,625)
4,829,452
246,737
(4,005,527)
583,602
1,321,639
176,457
(624,785)
2,719,592
(2,442,735)
671,649
(12,499)
487,679
1,809,318
2,572,324
3,977,553
385,734
(144,666)
(414,799)
3,803,822

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 Three Months Ended March 31, 2021 and 2020

(Expressed in Thousands of New Taiwan Dollars)

Cash flows from investing activities:
Acquisition of financial assets at fair value through other comprehensive income
Acquisition of financial assets at fair value through profit or loss
Proceeds from disposal of financial assets at fair value through profit or loss
Acquisition of investments accounted for using equity method
Proceeds from capital reduction of financial assets at fair value through other comprehensive income
Acquisition of property, plant and equipment
Proceeds from disposal of property, plant and equipment
Acquisition of intangible assets
Effect on loss of control over subsidiary's cash
Acquisition of investment properties
Increase in other financial assets
Increase in other non-current assets
Net cash flows (used in) from investing activities
Cash flows from financing activities:
Increase (decrease) in short-term borrowings
Proceeds from long-term borrowings
Repayments of long-term borrowings
Payment of lease liabilities
(Decrease) increase in other non-current liabilities
Net cash flows from (used in) 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

March 31, 2021 and 2020

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

(2) Financial Statements Authorization Date and Authorization Process

The consolidated financial statements were authorized for issuance by the Board of Directors on May 11, 2021.

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

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

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

●Amendments to IFRS 4 “Extension of the Temporary Exemption from Applying IFRS 9”
－
●Amendments to IFRS 9, IAS39, IFRS7, IFRS 4 and IFRS 16 “Interest Rate Benchmark Reform Phase 2”
(b) The impact of IFRS issued by the FSC but not yet effective

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

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

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

●Amendments to IFRS 10 and IAS 28 “Sale or Contribution of Assets Between an Investor and Its Associate or Joint Venture”
●IFRS 17 “ Insurance Contracts” and amendments to IFRS 17 “ Insurance Contracts”

〜 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)

March 31, 2021 and 2020

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

●Amendments to IAS 1 “Classification of Liabilities as Current or Non-current”
－
●Amendments to IAS 16 “Property, Plant and Equipment Proceeds before Intended Use”
－
●Amendments to IAS 37 “Onerous Contracts Cost of Fulfilling a Contract”
●Annual Improvements to IFRS Standards 2018-2020
●Amendments to IFRS 3 “Reference to the Conceptual Framework”
●Amendments to IAS 1 “Disclosure of Accounting Policies”
●Amendments to IAS 8 “Definition of Accounting Estimates”

(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, 2020. For the related information, please refer to note 4 of the consolidated financial statements for the year ended December 31, 2020.

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

Investor	Name of Subsidiary	Principal activity	Shareholding Rat	Shareholding Rat	io 2020.3.31 Note
			2021.3.31	2020.12.31
The Company 〞〞〞〞〞〞〞〞〞 The Company、 Inventec Investments Co., Ltd. and Inventec Appliances Corp.	Inventec Corporation (Hong Kong) Ltd. Inventec Holding (North America) Corp. Inventec (Cayman) Corp. IEC (Cayman) Corporation Inventec (Czech), s.r.o. Inventec Development Japan Corporation Inventec Investments Co., Ltd. AIMobile Co., Ltd. Inventec Japan Corporation Inventec Appliances Corp. Inventec Solar Energy Corporation	Trading Holding Company Holding Company Holding Company Production and sales of computer products Trading Investment company Developing, production and sales of intelligent mobile devices Trading and management services Intelligent device products Sales of solar cells and medical equipment	% 100.00 % 100.00 % 100.00 % 100.00 % 100.00 % 100.00 % 100.00 % 73.00 % 100.00 % 100.00 % 47.65	% 100.00 % 100.00 % 100.00 % 100.00 % 100.00 % 100.00 % 100.00 % 73.00 % 100.00 % 100.00 % 47.65	% 100.00 (Note 1) % 100.00 (Note 2) % 100.00 % 100.00 (Note 1) % 100.00 (Note 1) % 100.00 (Note 1) % 100.00 (Note 1) % 55.00 (Note 1) % 100.00 (Note 1) % 100.00 (Note 2) % 47.65 (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)

March 31, 2021 and 2020

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

Investor	Name of Subsidiary	Principal activity	Shareholding Rat	Shareholding Rat	io 2020.3.31 Note
			2021.3.31	2020.12.31
The Company and Inventec Investments Co., Ltd. Inventec Corporation (Hong Kong) Ltd. 〞 Inventec (Cayman) Corp. and Inventec (Pudong) Technology Corp. 〞 Inventec (Cayman) Corp. 〞〞〞〞〞 Inventec (Cayman) Corp. and IEC (Cayman) Corporation Inventec (Shanghai) Corp. Inventec (Shanghai) Service Co., Ltd. Inventec (Pudong) Technology Corp. Inventec Holding (North America) Corp. 〞〞〞 Inventec Holding (North America) Corp. and Inventec Distribution (North America) Corporation Inventec Appliances Corp. Inventec Appliances (Cayman) Holding Corp. 〞〞〞〞〞〞	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 Inventec (Chongqing) Corp. Inventec Asset-Management (Shanghai) Corporation Saint Investment Consulting Corporation SQ Technology (Sanghai) Corporation 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	Trading Electronic product software development 〞 Sales of computer products 〞〞 Production and sales of computer products Sales of computer products 〞〞〞 Production and sales of computer products Leasing Business management Production and sales of computer products Services of computer products 〞 Production and sales of computer products 〞〞 Holding Company Marketing promotion Sales service Development of intelligent devices Production and sales of intelligent devices 〞 House leasing Development of intelligent devices	% 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 % 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 % 78.00 % 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) % - (Note 1) % 100.00 (Note 1) % 100.00 (Note 1) % 100.00 (Note 1) % 100.00 (Note 1) % 100.00 The cancellation of registration process was completed in January 18, 2021. % 100.00 (Note 1) % 100.00 % 78.00 (Note 1) % - Inventec (Shanghai) Service Co., Ltd. invested it on April 30, 2020. (Note 1) % - Inventec (Pudong) Technology Corp. invested it on January 6, 2021. (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)

〜 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)

March 31, 2021 and 2020

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

Investor	Name of Subsidiary	Principal activity	Shareholding Rat	Shareholding Rat	io 2020.3.31 Note
			2021.3.31	2020.12.31
Inventec Appliances (Cayman) Holding Corp. 〞 Inventec Appliances (Shanghai) Co., Ltd. 〞〞 Inventec Appliances (Pudong) Corp.	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.	Development of intelligent devices Production and sales of intelligent devices Development of intelligent devices Business management Production and sales of intelligent devices 〞	% 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 Transferred 100% shares to Inventec Appliances (Pudong) Corp. on July 20, 2020. % 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.
(c) 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.

(d) 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.

〜 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)

March 31, 2021 and 2020

(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, 2020. For related information, please refer to note 5 of the consolidated financial statements for the year ended December 31, 2020.

(6) Explanation to Significant Accounts

Except for the following disclosures, there were no material differences in the disclosures of significant accounts between, the interim consolidated financial statements for the current period and the 2020 consolidated financial statements. Please refer to Note (6) of the 2020 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	2021.3.31 $ 6,381 27,759,841 9,017,664 $ 36,783,886	2020.12.31 7,013 27,934,618 5,009,964 32,951,595	2020.3.31
			8,548 32,858,371 5,273,324
			38,140,243

(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 Emerging stock Unquoted financial instruments Unsecured convertible bonds Total	2021.3.31 $ 606,810 14,098 72,295 194,035 1,035,028 31,239 $ 1,953,505	2020.12.31 13,606 237,568 145,460 232,340 1,033,760 31,210 1,693,944	2020.3.31
			102,740 16,152 80,747 - 2,452,662 47,356
			2,699,657

〜 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) March 31, 2021 and 2020

(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	2021.3.31 $ 110,528 316,211 $ 426,739	2020.12.31 210,598 39,538 250,136	2020.3.31
			41,973 76,883
			118,856

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 Foreign exchange swap Forward Foreign exchange swap Forward Forward		2021.3.31
	Contract Amount USD 110,000 USD 759,000	Currency Maturity Period USD to TWD 2021.04.20~2021.06.29 USD to TWD 2021.04.09~2021.09.27 2020.12.31
	Contract Amount USD 715,000 USD 214,000	Currency Maturity Period USD to TWD 2021.01.07~2021.06.11 USD to TWD 2021.01.06-2021.06.09 2020.3.31
	Contract Amount USD 170,000 USD 425,000 USD 30,000	Currency Maturity Period USD to TWD 2020.05.22-2020.06.29 USD to TWD 2020.04.08-2020.06.29 USD to CNY 2020.05.13-2020.06.23

〜 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) March 31, 2021 and 2020

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

2) Financial liabilities:

Foreign exchange swap Forward Forward Foreign exchange swap Forward Forward Foreign exchange swap Forward Forward		2021.3.31
	Contract Amount USD 719,000 USD 70,000 USD 148,306	Currency Maturity Period USD to TWD 2021.04.09~2021.09.27 USD to TWD 2021.06.28~2021.09.24 USD to CNY 2021.04.29~2021.07.05 2020.12.31
	Contract Amount USD 114,000 USD 615,000 USD 28,306	Currency Maturity Period USD to TWD 2021.01.06-2021.03.25 USD to TWD 2021.01.07~2021.06.11 USD to CNY 2021.07.05 2020.3.31
	Contract Amount USD 425,000 USD 170,000 USD 30,000	Currency Maturity Period USD to TWD 2020.04.08-2020.06.18 USD to TWD 2020.05.22-2020.06.22 USD to CNY 2020.04.09-2020.04.29

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	2021.3.31 $ 1,722,140 3,597,750 $ 5,319,890	2020.12.31 1,496,291 3,567,206 5,063,497	2020.3.31
			1,147,670 2,544,326
			3,691,996

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.

〜 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)

March 31, 2021 and 2020

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

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

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

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

Accounts receivable- non-related parties Accounts receivable- related parties Less: Loss allowance	2021.3.31 $ 87,493,540 63,466 (66,584) $ 87,490,422	2020.12.31 91,807,993 75,749 (72,433) 91,811,309	2020.3.31 57,214,928 342 (95,316) 57,119,954

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 March 31, 2021, December 31, 2020, and March 31, 2020, the amounts of trade receivables

measured at fair value through other comprehensive income were $1,187,761, $2,035,693 and $935,491, respectively.

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

as follows:
Current 1 to 180 days past due More than 180 days past due		2021.3.31
	Gross carrying amount $ 83,404,035 4,021,535 131,436 $ 87,557,006	Weighted- average 0%~0.5% 0.04%~10% 0.04%~100%	Loss allowance provision
			59,567 4,558 2,459
			66,584

As of the end of April 23, 2021, the amount that received by the Group is $23,720,732.

〜 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)

March 31, 2021 and 2020

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

	2020.12.31
Gross carrying amount $ 90,849,182 1,031,417 3,143 $ 91,883,742	Weighted- average 0%~0.5% 0.04%~10% 0.04%~100% 2020.3.31	Loss allowance provision
		57,719 11,802 2,912
		72,433

	Weighted- average 0%~1% 0.04%~10% 0.04%~100%	Loss allowance provision
		83,653 9,006 2,657
		95,316

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

Balance at January 1, 2021 and 2020 Gains on reversal of impairment losses Amounts written off Foreign exchange losses Balance at March 31, 2021 and 2020	For the three months ended March 31, 2021 2020 $ 72,433 102,855 (4,651) (7,489) (423) - (775) (50) $ 66,584 95,316
	2021 $ 72,433 (4,651) (423) (775) $ 66,584

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

〜 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)

March 31, 2021 and 2020

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

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

(Unit: Foreign currency/TWD in Thousands)

		2021.3.31
Purchaser	Amount Derecognized	Amount Advanced Unpaid Paid USD 164,562 Note USD 787,958 2020.12.31	Amount Recognized in other Receivable -	Range of Significant Transferring Interest Rate Terms 0.87%~1.36% The accounts receivable factoring is without recourse but the seller still bears the risks except for eligible obligor’s insolvency.
Non-related parties	$ 22,480,432

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

		2020.3.31
Purchaser	Amount Derecognized	Amount Advanced Unpaid Paid Note USD 720,470	Amount Recognized in other Receivable -	Range of Significant Transferring Interest Rate Terms 1.51%~2.62% The accounts receivable factoring is without recourse but the seller still bears the risks except for eligible obligor’s insolvency.
Non-related parties	$ 21,779,807

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

〜 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) March 31, 2021 and 2020

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

(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	2021.3.31 $ 1,311 788,556 $ 789,867 2021.3.31 $ 33,843,179 7,395,625 4,117,844 53,799 $ 45,410,447	2020.12.31 66 844,375 844,441 2020.12.31 28,128,939 6,541,004 5,518,187 1,228,193 41,416,323	2020.3.31
			1,303 497,666
			498,969
			2020.3.31
			40,552,118 7,835,012 6,411,051 17,289
			54,815,470

For the three months ended March 31, 2021 and 2020, the (write-up) write-down of inventories amounted to $(101,355) and $50,796, respectively. 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. In addition, 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. For the

three months ended March 31, 2021 and 2020, expenses of idle capacity amounted to $48,090, and $77,136, respectively.

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

(f) Investments accounted for using equity method

The investment using equity method was as follows:

Associate	2021.3.31 $ 229,575	2020.12.31 211,643	2020.3.31
			241,816

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

1.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.

〜 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)

March 31, 2021 and 2020

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

(g) Loss of control over subsidiaries

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

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

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

(h) Property, plant and equipment

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

Land	Building and construction	Machinery and equipment	Transportation equipment	Office equipment	Other facilities	Leasehold improvements	Others	Total
$ 7,784,757 - - - -	17,344,433 - - - (39,161)	20,575,199 72,690 (1,390,611) 47,469 (28,407)	103,254 1,019 (562) - (292)	5,179,868 80,315 (142,409) 10,638 (7,517)	8,803,802 155,433 (1,535) 11 (16,033)	396,393 8,990 - - (7,886)	2,160,724 380,249 - (111,572) (12,904)	62,348,430 698,696 (1,535,117) (53,454) (112,200)
$ 7,784,757	17,305,272	19,276,340	103,419	5,120,895	8,941,678	397,497	2,416,497	61,346,355
$ 7,884,298 - - (99,541) -	20,800,616 - (1,954,020) (1,413,577) (67,624)	24,774,688 132,124 (256,163) (2,151,019) (43,172)	103,832 107 - - (524)	5,325,639 137,383 (75,856) (11,652) (1,253)	10,517,913 60,791 (1,885,404) 2,636 (4,365)	665,838 1,896 - (291,473) (11,470)	1,851,731 300,048 - (204,201) (28,628)	71,924,555 632,349 (4,171,443) (4,168,827) (157,036)
$ 7,784,757	17,365,395	22,456,458	103,415	5,374,261	8,691,571	364,791	1,918,950	64,059,598
$ - - - - -	4,460,648 93,829 - - (12,002)	17,798,027 221,269 (1,341,677) 42,352 (25,818)	83,005 2,654 (300) - (220)	4,509,777 91,840 (140,409) 2,044 (3,632)	7,226,057 102,909 (1,269) 11 (13,758)	266,333 12,024 - - (3,080)	- - - - -	34,343,847 524,525 (1,483,655) 44,407 (58,510)
$ -	4,542,475	16,694,153	85,139	4,459,620	7,313,950	275,277	-	33,370,614

〜 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)

March 31, 2021 and 2020

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

Land	Building and construction	Machinery and equipment	Transportation equipment	Office equipment	Other facilities	Leasehold improvements	Others	Total
$ 10,231 - - (10,231) -	6,653,767 109,431 (1,371,009) (1,199,936) (19,637)	20,714,397 335,245 (254,243) (2,338,422) (37,382)	71,883 3,099 - - (371)	4,683,815 94,251 (73,990) (16,142) (446)	8,540,656 132,741 (1,885,373) (13,415) (21,200)	520,348 11,985 - (291,473) (6,259)	- - - - -	41,195,097 686,752 (3,584,615) (3,869,619) (85,295)
$ -	4,172,616	18,419,595	74,611	4,687,488	6,753,409	234,601	-	34,342,320
$ 7,784,757	12,883,785	2,777,172	20,249	670,091	1,577,745	130,060	2,160,724	28,004,583
$ 7,784,757	12,762,797	2,582,187	18,280	661,275	1,627,728	122,220	2,416,497	27,975,741
$ 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	13,192,779	4,036,863	28,804	686,773	1,938,162	130,190	1,918,950	29,717,278

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

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

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

(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, 2021 Additions Termination before the expiration Effect of changes in foreign exchange rates Balance as of March 31, 2021 Balance as of January 1, 2020 Additions Termination before the expiration Others Effect of changes in foreign exchange rates Balance as of March 31,2020	Land $ 2,501,251 160 - (17,773) $ 2,483,638 $ 2,594,248 4,427 (190,228) (116,416) (23,299) $ 2,268,732	Buildings 1,372,877 3,590 (33) (29,431) 1,347,003 1,199,936 - (4) - (11,651) 1,188,281	Vehicles 15,351 5,010 (3,325) 4 17,040 15,368 756 - (2,914) 12 13,222	Other 620 410 - 6 1,036 5,087 - - - 2 5,089	Total 3,890,099 9,170 (3,358) (47,194) 3,848,717 3,814,639 5,183 (190,232) (119,330) (34,936) 3,475,324

〜 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)

March 31, 2021 and 2020

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

Accumulated depreciation and impairment losses: Original balance as of January 1, 2021 Depreciation for the year Termination before the expiration Effect of changes in foreign exchange rates Balance as of March 31, 2021 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 March 31,2020 Carrying amount: Balance at January 1, 2021 Balance at March 31, 2021 Balance at January 1, 2020 Balance at March 31, 2020	Land $ 115,716 17,236 - (2,092) $ 130,860 $ 87,481 21,254 (32,755) (10,768) (3,279) $ 61,933 $ 2,385,535 $ 2,352,778 $ 2,506,767 $ 2,206,799	Buildings 360,840 51,581 - (4,322) 408,099 174,934 53,426 - - (4,078) 224,282 1,012,037 938,904 1,025,002 963,999	Vehicles 9,042 1,470 (3,325) 4 7,191 4,658 1,476 - (1,053) 5 5,086 6,309 9,849 10,710 8,136	Other 610 25 - 1 636 1,440 318 - - 1 1,759 10 400 3,647 3,330	Total 486,208 70,312 (3,325) (6,409) 546,786 268,513 76,474 (32,755) (11,821) (7,351) 293,060 3,403,891 3,301,931 3,546,126 3,182,264

(j) Intangible assets

The costs of intangible assets, amortization, and impairment loss of the Group for the three months ended March 31, 2021 and 2020 were as follows:

Carrying amounts: Balance at January 1, 2021 Balance at March 31, 2021 Balance at January 1, 2020 Balance at March 31, 2020	Goodwill $ 808,420 $ 808,420 $ 808,420 $ 808,420	Software cost 67,381 117,078 72,354 49,580	Total
			875,801
			925,498
			880,774
			858,000

For the three months ended March 31, 2021 and 2020, 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(k) of the consolidated financial statements for the year ended December 31, 2020 for other related information.

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

〜 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)

March 31, 2021 and 2020

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

(k) 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 Payment on behalf of others Deferred tax assets Others	2021.3.31 $ 82,630 302,307 1,088,719 1,774,867 1,819,935 2,374,002 $ 7,442,460	2020.12.31 69,662 21,581 1,127,892 2,511,971 1,767,526 2,385,778 7,884,410	2020.3.31
			32,598 6,065 1,418,850 - 1,720,925 2,311,758
			5,490,196

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

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

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

Provisions - Current Temporary credits Receipts under custody Deferred tax liabilities Others	2021.3.31 $ 3,932,919 5,763,964 2,886,489 5,180,303 298,837 $ 18,062,512	2020.12.31 3,255,201 5,452,614 3,027,071 4,916,698 445,585 17,097,169	2020.3.31
			2,117,101 4,222,389 3,727,461 4,053,744 371,122
			14,491,817

〜 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) March 31, 2021 and 2020

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

(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 (Note) Total Current Non-current Total Unused credit line			2021.3.31
	Interest Rate	Currency	Maturity Date Amount 2031.02.26 $ 2,975,000 2024.02.14 773,029 2021.04.01~2021.06.30 8,697,426 2021.04.01~2022.10.14 27,192,378 2021.05.31 3,413 2021.04.01~2021.08.24 3,145,696 $ 42,786,942 $ 36,485,913 6,301,029 $ 42,786,942 $ 67,546,050
	1.19%~5.23% 0.45%~4.35%	TWD CNY TWD USD EUR CNY

Note: Among the unsecured bank loans, $590,814 were pledged by machine as secondary collateral.

Secured bank loans Unsecured bank loans Total Current Non-current Total Unused credit line		2020.12.31	2020.12.31
	Interest Rate	Currency	Maturity Date Amount 2031.02.26 $ 3,050,000 2024.02.14 544,825 2021.01.06~2021.05.31 9,320,106 2021.01.06~2022.10.14 28,293,818 2021.05.31 3,575 $ 41,212,324 $ 32,221,499 8,990,825 $ 41,212,324 $ 70,541,804
	1.19%~5.23% 0.48%~2.90%	TWD CNY 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) March 31, 2021 and 2020

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

Secured bank loans Unsecured bank loans Total Current Non-current Total Unused credit line			2020.3.31
	Interest Rate	Currency	Maturity Date Amount 2031.02.26 $ 3,275,000 2024.02.14 849,425 2020.04.01~2020.11.17 4,573,739 2020.04.03~2020.09.22 16,746,537 2020.09.18 595 $ 25,445,296 $ 21,620,871 3,824,425 $ 25,445,296 $ 80,859,063
	1.19%~5.23% 0.64%~3.49%	TWD CNY TWD USD EUR

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

2.Important borrowing restrictions

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

3.Contract of bank loans

Inventec Solar Energy Corporation has applied to the Industrial Development Bureau for claims and liabilities negotiation on April 7, 2020, based on the “ Key points for the Ministry of Economic Affairs to Assist Enterprises in Bank Credit and Debt Negotiations”. With the approval of more than half of the total creditor banks, the long-term and short-term borrowings shall be extended for one more year from the maturity date. The extension period is due on May 31, 2021. In 2021, Inventec Solar Energy Corporation has applied again for claims and liabilities negotiation, but no results until the financial report issued.

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 liabilities 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)

March 31, 2021 and 2020

(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	2021.3.31 $ 204,750 $ 697,135	2020.12.31 216,479 748,035	2020.3.31
			195,507
			828,080

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

The amounts recognized in profit or loss were as follows:

Interest on lease liabilities Variable lease payments not included in the measurement of lease liabilities Expenses relating to short-term leases Expenses relating to leases of low-value assets, excluding short-term leases of low-value assets	For the three months ended March 31, 2021 2020 $ 7,056 5,758 $ 9,060 22,322 $ 3,186 10,925 $ 10,121 3,125	For the three months ended March 31, 2021 2020 $ 7,056 5,758 $ 9,060 22,322 $ 3,186 10,925 $ 10,121 3,125
	2021 $ 7,056 $ 9,060 $ 3,186 $ 10,121
		5,758 22,322 10,925 3,125

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

Total cash outflow for leases	For the three months ended March 31,	For the three months ended March 31,
	2021 $ 77,752	2020
		83,468

1. Real estate leases

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

Some leases of equipment contain extension or cancellation options exercisable by the Group 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. When the lessee is not reasonably certain to use an optional extended lease term, payments associated with the optional period will not be included within lease liabilities.

〜 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)

March 31, 2021 and 2020

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

2. Other leases

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

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

(o) Operating Leases

For the three months ended March 31, 2021, there were no significant changes on lease contracts. Please refer to Note 6(o) of the consolidated financial statements for the year ended December 31, 2020 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, 2020 and 2019.

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

	For	the three months	ended March 31,
		2021	2020
Operating cost	$	370	455
Selling expenses		436	454
Administration expenses		944	1,082
Research and development expenses		2,006	2,333
	$	3,756	4,324

2.Defined contribution plans

The pension costs incurred from the contributions to the Bureau of the Labor Insurance amounted to $64,553 and $63,934 for the three months ended March 31, 2021 and 2020, respectively.

The pension expenses contributed by the foreign entities following the local regulations amounted to $189,432 and $226,930 for the three months ended March 31, 2021 and 2020, respectively.

〜 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)

March 31, 2021 and 2020

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

(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 ended March 31, 2021 and 2020 were as follows:

2020 were as follows:
Current tax expense Current period	For the three months ended March 31,
	2021 $ 328,082	2020
		2,230,498

For the three months ended March 31, 2021 and 2020, there were no income tax recognized in equity and other comprehensive income.

2.Income Tax approval

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

3.Business income tax administrative remedies

The Group adopted the transfer pricing method on income tax declaration from year 2013 to 2014. As the calculation had a conflict with the opinion of the tax authority, the Group applied for administrative relief after paying the approved additional tax. The administrative appeal and litigation procedures are in progress.

(r) Capital and reserves

Except for the following disclosure, there was no significant change for capital and other equity for the three months ended March 31, 2021 and 2020. For the related information, please refer to note 6(r) of the consolidated financial statements for the year ended December 31, 2020.

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

〜 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)

March 31, 2021 and 2020

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

accordance with Article 240 of the ROC Company Act, the Company authorizes the distribution of dividends and bounses or its legal reserve and capital reserve, according to Article 241 of the ROC Company Act, in whole or in part may be paid in cash after a resolution has been adopted by a majority vote at a meeting of the Board of Directors attended by two-thirds of the total number of diretors; then such distribution shall be submitted to the shareholder's meeting.

1) Legal reserve

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

2) Special reserve

In accordance with Permit No.1010012865 as issued by the Financial Supervisory Commission on 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 30, 2021, and on March 24, 2020, the Company's Board of Directors resolved to distribute the 2020 and 2019 earnings. These earnings were appropriated for distribution as follows:

follows:
Dividends distributed to ordinary shareholders Cash	2020 Amount $ 6,636,829	2019
		Amount
		4,663,718

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

(s) Share-Based payments

There were no significant changes on share-based payment for the three months ended March 31, 2021. Please refer to Note 6(s) of the consolidated financial statements for the year ended December 31, 2020 for other related information.

〜 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)

March 31, 2021 and 2020

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

(t) Earnings per share

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

For the three months ended March 31, 2021 2020 Basic earnings per share: Profit attributable to ordinary shareholders $ 1,144,719 3,031,759 Weighted average number of ordinary shares (thousand shares) 3,587,475 3,587,475 Basic earnings per share (NT dollars) $ 0.32 0.85 Diluted earnings per share: Profit attributable to ordinary shareholders of the Company (adjusted for the effects of all dilutive potential ordinary shares) $ 1,144,719 3,031,759 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 27,750 30,469 Weighted average number of ordinary shares (adjusted for the effects of all dilutive potential ordinary shares) 3,615,225 3,617,944 Diluted earnings per share (NT dollars) $ 0.32 0.84 (u) Revenue from contracts with customers 1. Disaggregation of revenue For the three months ended March 31, 2021 Core Others Total Primary geographical markets Taiwan $ 9,840,908 297 9,841,205 USA 74,846,757 11,115 74,857,872 Japan 1,434,515 - 1,434,515 Hong Kong, Macao and Mainland China 15,494,123 - 15,494,123 Other countries 10,220,474 - 10,220,474 $ 111,836,777 11,412 111,848,189	For the three months ended March 31,	For the three months ended March 31,
		2020
		3,031,759
		3,587,475
		0.85
		3,031,759
		3,587,475 30,469
		3,617,944
		0.84
Core $ 9,840,908 74,846,757 1,434,515 15,494,123 10,220,474 $ 111,836,777	Others 297 11,115 - - - 11,412	Total
		9,841,205 74,857,872 1,434,515 15,494,123 10,220,474
		111,848,189

〜 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)

March 31, 2021 and 2020

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

Major products
Computer product
Service
Others
Primary geographical markets
Taiwan
USA
Japan
Hong Kong, Macao and Mainland
China
Other countries
Major products
Computer product
Service
Others
2. Contract balances
Notes and Accounts receivable
(included related parties)
Less: Loss allowance
Total
Contract liabilities

For the three months ended March 31, 2021
Core
Others
Total
$ 111,523,297
-
111,523,297
313,480
-
313,480
-
11,412
11,412
$
111,836,777
11,412
111,848,189
For the three months ended March 31, 2020
Core
Others
Total
$ 1,308,342
419,203
1,727,545
61,059,956
54,637
61,114,593
2,512,967
-
2,512,967
10,782,099
168,521
10,950,620
12,373,385
-
12,373,385
$
88,036,749
642,361
88,679,110
$ 87,906,085
-
87,906,085
130,664
-
130,664
-
642,361
642,361
$
88,036,749
642,361
88,679,110
2021.3.31
2020.12.31
2020.3.31
$ 87,557,006
91,883,742
57,215,270
(66,584)
(72,433)
(95,316)
$
87,490,422
91,811,309
57,119,954
$
7,200,829
7,828,232
6,602,792

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

〜 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)

March 31, 2021 and 2020

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

The amount of revenue recognized for the three months ended March 31, 2021 and 2020 were $728,088 and $487,376, 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 $94,809 and $254,708 and the remuneration of directors amounted to $17,357 and $46,631 for the three months ended March 31, 2021 and 2020, respectively. These amounts are calculated using the Company's profit before tax for each period described above, and are determined using the earnings allocation method which stated under the Company's article. These remunerations are expensed under operating cost or expenses in March 31, 2021 and 2020. 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 2020 and 2019, the Company accrued the employee remuneration of $675,529 and $424,704, and the board of directors’ remuneration of $123,674 and $77,754, 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.

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

The details of interest income were as follows:

Interest income from bank deposits	For the three months ended March 31,	For the three months ended March 31,
	2021 $ 283,829	2020
		294,972

〜 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)

March 31, 2021 and 2020

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

2.Other income

The details of other income were as follows:

The details of other income were as follows:
Rent income	For the three months ended March 31,
	2021 $ 63,710	2020
		72,223

3.Other income and losses

The details of other income and losses were as follows:

Foreign exchange losses Losses (gains) on disposal of investments Net gains (losses) on financial assets (liabilities) measured at fair value through profit or loss Losses (gains) on disposal of property, plant and equipment Other impairment losses Other	For the three months ended March 31, 2021 2020 $ (254,078) (263,086) (22,242) 24,435 439,690 (12,438) (25,997) 4,891,005 (4,043) - 115,094 151,623 $ 248,424 4,791,539
	2021 $ (254,078) (22,242) 439,690 (25,997) (4,043) 115,094 $ 248,424

4.Finance costs

The details of finance expenses were as follows:

Interest expenses Bank borrowings Others	For the three months ended March 31,	For the three months ended March 31,
	2021 $ 105,874 60,296 $ 166,170	2020
		141,212 105,069
		246,281

(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(x) of the consolidated financial statements for the year ended December 31, 2020 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:

〜 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)

March 31, 2021 and 2020

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

March 31, 2021 Non-derivative financial liabilities Secured bank loans Unsecured bank loans Accounts payable Other payables Lease liabilities Derivative financial liabilities Forward exchange contracts not used for hedging: Outflow Inflow Foreign exchange swap contracts not used for hedging : Outflow Inflow December 31, 2020 Non-derivative financial liabilities Secured bank loans Unsecured bank loans Accounts payable Other payable 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 $ 3,748,029 39,038,913 77,220,022 15,874,418 901,885 110,528 - 316,211 - $ 137,210,006 $ 3,594,825 37,617,499 74,370,226 11,595,245 964,514 210,598 - 39,538 - $ 128,392,445	Contractual cash flows 4,043,605 39,125,629 77,220,022 15,874,418 989,649 (6,266,224) 6,155,696 (20,171,369) 19,855,158 136,826,584 3,871,406 39,026,892 74,370,226 11,595,245 1,100,855 (18,092,129) 17,881,531 (3,209,668) 3,170,130 129,714,488	Less than 6 months 187,974 36,215,766 77,220,022 15,874,418 114,523 (6,266,224) 6,155,696 (20,171,369) 19,855,158 129,185,964 182,167 33,256,306 74,370,226 11,595,245 115,403 (18,092,129) 17,881,531 (3,209,668) 3,170,130 119,269,211	6 to 12 months 186,744 42,097 - - 114,504 - - - - 343,345 181,354 29,234 - - 134,958 - - - - 345,546	1 to 2 years 457,980 2,867,766 - - 140,389 - - - - 3,466,135 447,247 5,741,352 - - 171,981 - - - - 6,360,580	2 to 5 years 1,692,026 - - - 369,775 - - - - 2,061,801 1,462,220 - - - 394,867 - - - - 1,857,087	More than 5 years
							1,518,881 - - - 250,458 - - - -
							1,769,339
							1,598,418 - - - 283,646 - - - -
							1,882,064

〜 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)

March 31, 2021 and 2020

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

March 31, 2020 Non-derivative financial liabilities Secured bank loans Unsecured bank loans Accounts payable Other payables Lease liabilities Derivative financial liabilities Forward exchange contracts not used for hedging : Outflow Inflow Foreign exchange swap contracts not used for hedging: Outflow Inflow	Carrying amount $ 4,124,425 21,320,871 76,339,037 10,144,770 1,023,587 41,973 - 76,883 - $ 113,071,546	Contractual cash flows 4,505,932 22,376,189 76,339,037 10,144,770 1,141,408 (6,012,340) 5,970,367 (12,737,045) 12,660,162 114,388,480	Less than 6 months 191,786 22,373,894 76,339,037 10,144,770 118,205 (6,012,340) 5,970,367 (12,737,045) 12,660,162 109,048,836	6 to 12 months 190,536 2,295 - - 107,889 - - - - 300,720	1 to 2 years 378,765 - - - 149,528 - - - - 528,293	2 to 5 years 1,906,478 - - - 425,446 - - - - 2,331,924	More than 5 years
							1,838,367 - - - 340,340 - - - -
							2,178,707

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

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		2021.3.31
	Foreign currency (In thousand) $ 4,942,443 348,407 292,339 3,498,432 4,236 58,040	Exchange rate TWD USD：TWD 28.53 141,007,899 USD：CNY 6.57 9,940,052 USD：CZK 22.29 8,340,432 CNY：USD 0.15 15,188,792 JPY：TWD 0.26 1,083 USD：TWD 28.53 1,655,873

〜 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) March 31, 2021 and 2020

(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		2021.3.31
	Foreign currency (In thousand) 3,938,869 193,608 387,973 1,018,806	Exchange rate TWD USD：TWD 28.53 112,375,933 USD：CNY 6.57 5,523,636 USD：CZK 22.29 11,068,870 CNY：USD 0.15 4,423,248 2020.12.31
	Foreign currency (In thousand) $ 5,480,099 433,993 317,555 3,553,701 7,167 57,844 4,480,491 242,494 396,525 345,548	Exchange rate TWD USD：TWD 28.48 156,073,220 USD：CNY 6.52 12,360,121 USD：CZK 21.38 9,043,960 CNY：USD 0.15 15,511,194 JPY：TWD 0.27 1,935 USD：TWD 28.48 1,647,427 USD：TWD 28.48 127,604,384 USD：CNY 6.52 6,906,229 USD：CZK 21.38 11,293,032 CNY：USD 0.15 1,508,248

〜 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) March 31, 2021 and 2020

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

Financial assets Monetary items USD CNY JPY Non-monetary items USD Financial Liabilities Monetary items USD CNY		2020.3.31
	Foreign currency (In thousand) $ 4,188,866 465,282 273,846 3,405,534 4,558 55,547 3,442,127 348,031 372,243 291,267	Exchange rate TWD USD：TWD 30.23 126,629,419 USD：CNY 7.09 14,065,475 USD：CZK 24.94 8,278,365 CNY：USD 0.14 14,530,392 JPY：TWD 0.28 1,262 USD：TWD 30.23 1,679,173 USD：TWD 30.23 104,055,499 USD：CNY 7.09 10,520,977 USD：CZK 24.94 11,252,906 CNY：USD 0.14 1,242,749

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 March 31, 2021 and 2020 would have increased or decreased the net profit after tax by $158,635 and $142,140, respectively. The analysis is performed on the same basis for both periods.

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 three months ended March 31, 2021 and 2020, the foreign exchange loss, including realized and unrealized, amounted to $(254,078) and $(263,086), respectively.

〜 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)

March 31, 2021 and 2020

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

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 :

		2021.3.31	2021.3.31
Book Value $ 620,908 1,332,597 1,953,505 1,674,548 3,645,342 5,319,890 36,783,886 88,280,289 125,064,175 $ 132,337,570		Fair Value
	Level 1 - 266,330 266,330 1,661,330 - 1,661,330 - - - 1,927,660	Level 2 620,908 - 620,908 - 60,810 60,810 - - - 681,718	Level 3 - 1,066,267 1,066,267 - 3,597,750 3,597,750 - - - 4,664,017	Total 620,908 1,332,597
				1,953,505
				1,661,330 3,658,560
				5,319,890
				- -
				-
				7,273,395

〜 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)

March 31, 2021 and 2020

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

	2021.3.31	2021.3.31
	Fair Value
Level 1 - - - - - - -	Level 2 426,739 - - - - - 426,739 2020.12.31	Level 3 - - - - - - -	Total 426,739
			- - - -
			-
			426,739

	Fair Value
Level 1 - 377,800 377,800 1,420,469 - 1,420,469 - - - 1,798,269	Level 2 251,174 - 251,174 - 75,822 75,822 - - - 326,996	Level 3 - 1,064,970 1,064,970 - 3,567,206 3,567,206 - - - 4,632,176	Total 251,174 1,442,770
			1,693,944
			1,420,469 3,643,028
			5,063,497
			- -
			-
			6,757,441

〜 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)

March 31, 2021 and 2020

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

	2020.12.31	2020.12.31
	Fair Value
Level 1 - - - - - - -	Level 2 250,136 - - - - - 250,136 2020.3.31	Level 3 - - - - - - -	Total 250,136
			- - - -
			-
			250,136

	Fair Value
Level 1 - 80,747 80,747 1,070,518 - 1,070,518 - - - - 1,151,265	Level 2 118,892 - 118,892 - 77,152 77,152 - - - - 196,044	Level 3 - 2,500,018 2,500,018 - 2,544,326 2,544,326 - - - - 5,044,344	Total 118,892 2,580,765
			2,699,657
			1,070,518 2,621,478
			3,691,996
			- - -
			-
			6,391,653

〜 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) March 31, 2021 and 2020

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

	2020.3.31	2020.3.31
	Fair Value
Level 1 - - - - - - -	Level 2 118,856 - - - - - 118,856	Level 3 - - - - - - -	Total 118,856
			- - - -
			-
			118,856

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.
(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 three months ended March 31, 2021 and 2020.

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

〜 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)

March 31, 2021 and 2020

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

Balance as of January 1, 2021 Total gains and losses recognized in Profit or loss Other comprehensive income Purchase Proceeds from capital reduction Effect of movements in exchange rate Balance as of March 31, 2021 Balance as of January 1, 2020 Total gains and losses recognized in Profit or loss Other comprehensive income Purchase Disposals Effect of movements in exchange rate Balance as of March 31, 2020	At fair value through profit or loss $ 1,064,970 3,286 - - - (1,989) $ 1,066,267 $ 3,717,254 14,536 - 2,224,506 (3,475,093) 18,815 $ 2,500,018	Fair value through other comprehensive income 3,567,207 - 8,431 27,950 (4,838) (1,000) 3,597,750 2,114,517 - 405,696 24,056 - 57 2,544,326

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

Total gains and losses recognized in: In profit or loss, and included “other gains and losses” In other comprehensive income, and presented in “unrealized gains and losses from financial assets at fair value through other comprehensive income”	For the three months ended March 31, 2021 2020 $ 3,286 (15,048) 8,431 405,696

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

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

〜 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)

March 31, 2021 and 2020

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

Item Financial assets at fair value through profit or loss－financial instruments without an active market Financial assets at fair value through profit or loss－equity instruments investments without an active market Financial assets at fair value through profit or loss－equity instruments investments without an active market Financial assets at fair value through other comprehensive income－equity instruments investments without an active market Financial assets at fair value through other comprehensive income－equity instruments investments without an active market	Valuation Technique Discounted Cash Flow Method Net Asset Value Method Comparable Listed Companies Method Comparable Listed Companies Method Net Asset Value Method	Significant Non-observable Input The Relationship between Significant Non-observable Input and Fair Value ‧ Discounted Rate (3.20% on March 31, 2021 3.20% on December 31, 2020 3.28%~3.60% on March 31, 2020) ‧ The higher the discount rate, the lower the fair value ‧ Net Asset Value ‧ Not applicable ‧ Discount due to Lack of Market liquidity (30%) ‧ The estimated fair value would increase (decrease) if the price of earnings ratio multiple is higher (lower) and the marketability discount is lower (higher) ‧ Market Multiple (0.85~1.92) ‧ Discount due to Lack of Market liquidity (20%~35%) ‧ The estimated fair value would increase (decrease) if the price of earnings ratio multiple is higher (lower) and the marketability discount is lower (higher) ‧ Net Asset Value ‧ Not applicable

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

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

March 31, 2021 Financial assets at fair value through profit or loss Financial instruments without an active market Financial assets at fair value through other comprehensive income Equity instruments without an active market	Input Discount Rate Market Multiple	Variation	Impact on Fair V Net incom	alue Change on e or loss Unfavorable Change (4,435) -	Impact on Fair Value Change on Other Comprehensive income or loss Favorable Change Unfavorable Change - - 18,527 (18,527)
			Favorable Change $ 4,435 -
		0.5% 0.5%

〜 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)

March 31, 2021 and 2020

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

December 31, 2020 Financial assets at fair value through profit or loss Financial instruments without an active market Financial assets at fair value through other comprehensive income Equity instruments without an active market March 31, 2020 Financial assets at fair value through profit or loss Financial instruments without an active market Financial assets at fair value through other comprehensive income Equity instruments without an active market	Input Discount Rate Market Multiple Discount Rate Market Multiple	Variation	Impact on Fair V Net incom	alue Change on e or loss Unfavorable Change (13,709) - (1,576) -	Impact on Fair Value Change on Other Comprehensive income or loss Favorable Change Unfavorable Change - - 17,790 (17,790) - - 12,681 (12,681)
			Favorable Change $ 13,709 - $ 1,576 -
		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.

4.Offsetting financial assets and financial liabilities

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

The Group also performs transactions not 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.

〜 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)

March 31, 2021 and 2020

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

2021.3.31	2021.3.31	2021.3.31	2021.3.31	2021.3.31	2021.3.31
Financial assets that are offset which have an exercisable master netting arrangement or similar agreement
Gross amounts of recognized financial assets (a) $ 439,055,450 609,025 $ 439,664,475		Gross amounts of financial liabilities offset in the balance sheet (b) 438,543,617 - 438,543,617	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 511,833 - - 609,025 - - 1,120,858 - - 2021.3.31		Net amount (e)=(c)-(d)
					511,833 609,025
					1,120,858

	Financial liabilities that are		offset which have an exercisable master netting arrangement or similar agreement
		Gross amounts of financial assets offset in the balance sheet (b) -	Net amount of financial liabilities presented in Amounts not off set in the balance sheet (d) the balance sheet (c)=(a)-(b) Financial instruments (Note) Cash collateral received 188,676 - - 2020.12.31		Net amount (e)=(c)-(d)
					188,676

	Financial assets that are offset which have an exercisable master netting arrangement or similar agreement
		Gross amounts of financial liabilities offset in the balance sheet (b) 389,593,639 - 389,593,639	Net amount of financial assets presented in Amounts not off set in the balance sheet (d) the balance sheet (c)=(a)-(b) Financial instruments (Note) Cash collateral received 446,035 - - 72,194 - - 518,229 - - 2020.12.31		Net amount (e)=(c)-(d)
					446,035 72,194
					518,229

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

〜 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)

March 31, 2021 and 2020

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

2020.3.31	2020.3.31	2020.3.31	2020.3.31	2020.3.31	2020.3.31
Financial assets that are offset which have an exercisable master netting arrangement or similar agreement
Gross amounts of recognized financial assets (a) $ 379,551,528 105,012 $ 379,656,540		Gross amounts of financial liabilities offset in the balance sheet (b) 379,185,329 - 379,185,329	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 366,199 - - 105,012 - - 471,211 - - 2020.3.31		Net amount (e)=(c)-(d)
					366,199 105,012
					471,211

	Financial liabilities that are		offset which have an exercisable master netting arrangement or similar agreement
		Gross amounts of financial assets offset in the balance sheet (b) -	Net amount of financial liabilities presented in the balance sheet (c)=(a)-(b) 85,676	Amounts not off set in the balance sheet (d) Financial instruments (Note) Cash collateral received - -	Net amount (e)=(c)-(d)
				Financial instruments (Note) -
					85,676

Note: Master netting arrangements are included.

(y) Financial risk management

There were no significant differences of the Group's financial risk management and policies with those disclosed in Note (6)(y) of the consolidated financial statements for the year ended December 31, 2020.

(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, 2020. Also, management believes that there were no significant changes in the Group's capital management information as disclosed in Note (6)(z) for the year ended December 31, 2020.

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

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

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

〜 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)

March 31, 2021 and 2020

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

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

Long-term borrowings Short-term borrowings (including current portion of long-term borrowings) Lease liabilities (Note) Total liabilities from financing activities Long-term borrowings Short-term borrowings (including current portion of long-term borrowings) Lease liabilities (Note) Total liabilities from financing activities	January 1, 2021 $ 8,990,825 32,221,499 964,514 $ 42,176,838 January 1, 2020 $ 3,883,134 25,525,579 1,177,080 $ 30,585,793	Cash flows (2,638,665) 3,832,164 (48,329) 1,145,170 Cash flows 25,294 (4,059,665) (41,338) (4,075,709)	Non-cash changes Reclassification Foreign exchange movement (75,000) 23,869 75,000 357,250 9,170 (23,470) 9,170 357,649 Non-cash changes Reclassification Foreign exchange movement (75,000) (9,003) 75,000 79,957 (103,368) (8,787) (103,368) 62,167	March 31, 2021
				6,301,029 36,485,913 901,885
				43,688,827
				March 31, 2020
			Reclassification (75,000) 75,000 (103,368) (103,368)
				3,824,425 21,620,871 1,023,587
				26,468,883

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

(7) Related Party Transactions

(a) Names and relationship with related parties

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

〜 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)

March 31, 2021 and 2020

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

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

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

related parties were as follows:
Associates Other related parties	For the three months ended March 31,
	2021 $ 28,073 19 $ 28,092	2020
		356 99
		455

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:

follows:
Associates	For the three months ended March 31,
	2021 $ 548	2020
		1,027

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	2021.3.31 $ 63,466 1,311 $ 64,777	2020.12.31 75,749 66 75,815	2020.3.31
Accounts receivable Other receivables	Associates Associates			342 1,303
				1,645

〜 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)

March 31, 2021 and 2020

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

4.Accounts payable to Related Parties

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

Financial Statement Account	Related Party Categories	2021.3.31 $ 558 352 300,000 $ 300,910	2020.12.31 678 1,046 300,000 301,724	2020.3.31
Accounts payable Other payables 〞	Associates Associates Other related parties			1,628 839 300,000
				302,467

As of March 31, 2021, December 31, 2020, and March 31, 2020, the Group borrowed the amount of $300,000 from shareholders, which were accounted as other payables. The borrowing interest rate were 1.50%, 1.50% and 2.13%, respectively.

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

For the three months ended March 31, 2021 and 2020, the Group purchased equipment, intangible assets and other assets from Inventec Besta Co., Ltd. and paid the amount of $0 and $476, respectively.

6.Others

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

Associates Donations for other related parties were as follows: Other related parties	For the three months ended March 31,	For the three months ended March 31,
	2021 2020 $ 3,022 1,774 For the three months ended March 31,	2020
		1,774
	2021 $ 10,000	2020
		10,000

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

Associates	For the three months ended March 31,	For the three months ended March 31,
	2021 $ 621	2020
		1,359

〜 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)

March 31, 2021 and 2020

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

(c) Key management personnel compensation

Key management personnel compensation includes:

Short-term employee benefits Post-employment benefit	For the three months ended March 31,	For the three months ended March 31,
	2021 $ 106,237 940 $ 107,177	2020
		138,061 947
		139,008

(8) Pledged Assets

The carrying values of pledged assets were as follows:

Pledged assets	Object	2021.3.31 $ 82,630 1,088,719 8,584,092 $ 9,755,441	2020.12.31 69,662 1,127,892 8,438,458 9,636,012	2020.3.31
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 and right-of-use assets) Total	Membership guarantee and rental deposit Guarantee and the account of repatriated offshore funds Current portion long-term borrowings, as well as long-term borrowings and credit line			32,598 1,418,850 8,355,925
				9,807,373

(9) Significant Commitments and Contingencies

(a) Major Commitments:

1.Unused standby letters of credit were as follows:

EUR USD TWD	2021.3.31 $ 224 56 25,345	2020.12.31 2020.3.31 360 94 56 9,253 25,345 56,605

〜 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)

March 31, 2021 and 2020

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

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	2021.3.31 $ 21,827,759 1,801,400	2020.12.31 2020.3.31 21,940,262 22,241,273 1,776,400 1,510,400

(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 March 31, 2021	For the three months ended March 31, 2021	For the three months ended March 31, 2021	For the three months ended March 31, 2020	For the three months ended March 31, 2020	For the three months ended March 31, 2020
	Operating costs	Operating and non-operating expense	Total	Operating costs	Operating and non-operating expense	Total
Employee benefits Salary Labor and health insurance Pension Others Depreciation Amortization	1,877,991 184,431 137,749 114,208 382,465 49,967	2,158,779 211,864 119,992 65,742 212,372 193,559	4,036,770 396,295 257,741 179,950 594,837 243,526	2,655,356 228,667 189,463 129,160 500,188 58,766	2,229,511 189,748 105,725 53,423 275,301 152,466	4,884,867 418,415 295,188 182,583 775,489 211,232

(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 three month ended March 31, 2021:

〜 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) March 31, 2021 and 2020

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

1. 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	Collateral	Collateral	Individual funding loan limits	Maximum limit of fund financing
													Item	Value
1 2 3 4 4	Inventec Appliances (Nanjing) Corp.(Note 2) Inventec Appliances (Shanghai) Co., Ltd.(Note 2) Inventec Appliances Corp.(Note 3) Inventec (Pudong) Corp.(Note 4) 〞	Inventec Appliances (XI'AN) Corporation Inventec Appliances (Nanchang) Intelligent Manufacturing Co., Ltd. Inventec Appliances (Malaysia) SDN. BHD. Inventec Hi-Tech Corp. Inventec Asset- Management (Shanghai) Corporation	Other receivables 〞〞〞〞	Y Y Y Y Y	83,353 131,610 800,000 87,740 1,403,840	60,788 130,260 800,000 86,840 1,389,440	47,762 130,260 328,978 - 1,187,830	3.045% 3.045% 1.95% - 5.225%	2 2 2 2 2	- - - - -	Working Capital 〞〞〞〞	- - - - -	None 〞〞〞〞	- - - - -	343,822 1,771,832 1,532,322 4,126,672 1,650,669	343,822 1,771,832 3,064,643 4,126,672 1,650,669

Note 1: (1) Those with business contact, please fill in 1.
(2) Those necessary for short term financing, please fill in 2.

Note 2: Among Subsidiaries which the parent company holds 100% voting power, aggregate amount of loans shall not exceed the company's net worth as stated in its latest financial report, and each amount of loans shall not exceed 100 percent of the permitted aggregate amount of loans of the company.

Note 3: Where an inter-company or inter-firm short-term financing facility is necessary, total financing amount shall not exceed 40 percent of the company's net worth as stated in its latest financial report. Each financing amount shall not exceed 50 percent of the permitted aggregate amount of loans of the company.

Note 4: Where an inter-company or inter-firm short-term financing facility is necessary, total financing amount shall not exceed 40 percent of the company's net worth as stated in its latest financial report. Each financing amount shall not exceed 100 percent of the permitted aggregate amount of loans of the company. Among Subsidiaries which the parent company holds 100% voting power, aggregate amount of loans shall not exceed the company's net worth as stated in its latest financial report, and each amount of loans shall not exceed 100 percent of the permitted aggregate amount of loans of the company.

Note 5: The transactions 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:

(In Thousands of New Taiwan Dollars)

No.	Name of guarantor	Counter-party of g endorsem	uarantee an ent	d Limitation on amount of guarantees and endorsements for a specific enterprise	Highest balance for guarantees and endorsements during the period r	Balance of guarantees and endorsements as of eporting date	Actual usage amount during the period	Property pledged for guarantees and endorsements (Amount)	Ratio of accumulated amounts of guarantees and endorsements to net worth of the latest financialstatements	Maximum amount for guarantees an endorsements	Parent company d endorsements /guarantees to third parties on behalf of subsidiary	Subsidiary endorsements/ guarantees to third parties on behalf of parent company	Endorsement s/guarantees to third parties on behalf of companies in Mainland China
		Name	Relationshi p with the Company
1	Inventec Appliances Corp.	Inventec Appliance (Jiangning) Corp.	s 2	3,830,804	1,164,141	1,164,141	-	-	% 15.19	3,830,804	N	N	N

〜 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)

March 31, 2021 and 2020

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

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

Note 2: Both the aggregate amount of endorsements/guarantees and the amount of endorsements/guarantees for a single enterprise by Inventec Appliance Corp. can not exceed 50 percent of its net worth as stated in its latest financial statement.

Note 3: The transactions with the Group were eliminated in the consolidated financial statements. Note 4: The transactions in foreign currencies were exchanged to New Taiwan Dollars in spot rate at the date of the audited entity's financial reports.
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. Amphastar Pharmaceuticals Inc. Arima Communications Corp. WIN Semiconductors Corp. Tomorrow Studio Co., Ltd Tai Yi Precision Corporation New E Materials Co., Ltd. Rasilient Systems, Inc. preference share SKSpruce Holding Limited preferred stock CloudMosa Technologies, Inc. preferred stock QEEXO, Co. preferred stock Rescale, Inc. preferred stock Sensel, Inc. preferred stock	- - - - - - - - - - - - -	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 〞〞〞〞〞〞〞〞	161 26 21,114 4,063 29 2,540 1,760 3,632 3,746 235 568 355 532	242 13,488 60,810 1,588,510 141 - 11,299 - 41,829 - 15,950 26,591 6,064	% 1.52 % 0.05 % 10.15 % 0.96 % 0.20 % 6.67 % 16.00 % 6.20 % 3.72 % 2.95 % 3.09 % 1.37 % 3.38	242 13,488 60,810 1,588,510 141 - 11,299 - 41,829 - 15,950 26,591 6,064

〜 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)

March 31, 2021 and 2020

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

Name of holder	Category and name of security	Relationship with company	Account title		Ending balance	Ending balance		Note
				Shares/Units (thousands)	Carrying value	Percentage of ownership (%)	Fair value (Note1)
The Company 〞〞〞〞〞〞〞 Inventec (Cayman) Corp. Saint Investment Consulting Corporation Inventec (Chongqing) Corp. Inventec (Beijing) Electronics Technology Co., Ltd. Inventec Electronics (Tianjin) Co., Ltd. Inventec Development Japan Corporation Inventec Investments Co., Ltd. 〞〞〞〞	ASOCS LTD. preferred stock ZT Group Int'l, Inc. SKSpruce Holding Limited convertible short- term note Empass Technology Entire Technology Co., Ltd. E-TON Solar Tech. Co., Ltd Imedtac Co., Ltd. TMY Technology Inc. Chainwin Biotech and Agrotech (Cayman Islands) Co., Ltd. Testron Technology (JiangSu) Co., Ltd. Kunshan Joing Technology Co., Ltd. Bank of Communications Pension CNY Financial products Icbc Wealth Management Corporation Tian Libao No. 2 Net Worth Management Product Famm Co., Ltd. ENNOSTAR Inc. UCFUNNEL CO LTD Sagacity Tech. Co., Ltd. Living Pattern Technology Inc. E-TON Solar Tech. Co., Ltd	- - - - - - - - - - - - - - - - - - -	Non-current financial assets at fair value through other comprehensive income 〞 Current financial assets at fair value through profit or loss Non-current financial assets at fair value through 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 〞〞 Non-current financial assets at fair value through profit or loss	360 70 - 450 3,260 94,889 1,200 2,857 20,000 2,778 5,948 - - 100 881 83 79 4 15,813	27,950 2,077,298 16,444 20,210 194,035 452,619 63,924 55,600 1,124,000 68,598 206,607 52,099 108,540 8,559 72,295 10,747 150 476 75,429	% 1.44 % 10.00 % - % 6.80 % 4.50 % 29.70 % 9.42 % 8.00 % 12.10 % 10.00 % 2.96 % - % - % 16.00 % 0.13 % 5.00 % 15.00 % 13.70 % 4.95	27,950 2,077,298 16,444 20,210 194,035 452,619 63,924 55,600 1,124,000 68,598 206,607 52,099 108,540 8,559 72,295 10,747 150 476 75,429

〜 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)

March 31, 2021 and 2020

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

Name of holder	Category and name of security	Relationship with company	Account title		Ending balance	Ending balance		Note
				Shares/Units (thousands)	Carrying value	Percentage of ownership (%)	Fair value (Note1)
Inventec Appliances Corp. 〞〞〞〞〞〞〞〞〞〞〞 Inventec Appliances (Cayman) Holding Corp. 〞〞	SCOPE INDUSTRIES BERHAD Rong Cheng Tech. Co., Ltd. Tai Yi Precision Corporation Siano Mobile Silicon Inc. All People Health Social Enterprise Co.,Ltd. GCT Semiconductor, Inc. preferred stock Pandigital Worldwide, Ltd. preferred stock 3GTMobile Corporation preferred stock Linc Global Inc. (Proximiant, Inc.) preferred stock Molekule, Inc. preferred stock XMEMS LABS INC preferred stock Cardio Ring Technologies, Inc. convertible long-term note Siano Mobile Silicon Inc. Leadtone Limited(Class B preferred stock) Digital Chaotex Holdings Ltd.( Class A2 preferred stock)	- - - - - - - - - - - - - - -	Non-current financial assets at fair value through other comprehensive income 〞〞〞〞〞〞〞〞〞〞 Non-current financial assets at fair value through profit or loss Non-current financial assets at fair value through other comprehensive income 〞〞	32,000 1,950 635 461 100 93 939 314 594 1,603 1,778 - 99 1,250 446	59,332 - - - 1,000 - - - - 152,800 24,056 14,795 - - -	% 4.16 % 9.38 % 1.67 % 0.15 % 11.76 % 0.12 % 4.80 % 2.88 % 5.30 % 1.57 % 3.05 % - % 0.03 % 2.36 % 2.08	59,332 - - - 1,000 - - - - 152,800 24,056 14,795 - - -

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

Note 2: The transactions 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.

Individual securities acquired or disposed of with accumulated amount exceeding the lower of TWD300 million or 20% of the capital stock: None.
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: None.

〜 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)

March 31, 2021 and 2020

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

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

(In Thousands of New Taiwan Dollars)

Name of company	Related party	Nature of relationship		Transacti	on details		Trans diffe	actions with terms rent from others	Notes/Accounts r	eceivable (payable)	Note
			Purchase/ Sale	Amount	Percentage of total purchases/sale	Payment terms	Unit price	Payment terms	Ending balance	Percentage of total notes/accounts receivable (payable)
The Company 〞〞〞〞 Inventec Holding (North America) Corp. 〞〞 Inventec (Czech), s.r.o. 〞〞 Inventec Corporation (Hong Kong) Ltd. 〞〞 Inventec (Pudong) Technology Corp. 〞〞〞 Inventec (Shanghai) Corp. Inventec (Chongqing) Corp.	Inventec Holding (North America) Corp. Inventec (Czech), s.r.o. Inventec Corporation (Hong Kong) Ltd. Inventec Appliances (Jiangning) Corp. Inventec (Czech), s.r.o. The Company Inventec (Pudong) Technology Corp. Inventec (Czech), s.r.o. The Company The Company Inventec Holding (North America) Corp. The Company Inventec (Pudong) Technology Corp. Inventec (Chongqing) Corp. Inventec Corporation (Hong Kong) Ltd. Inventec (Shanghai) Corp. SQ Technology (Shanghai) Corporation Inventec Holding (North America) Corp. Inventec (Pudong) Technology Corp. Inventec Corporation (Hong Kong) Ltd.	Subsidiary 〞〞〞〞 Parent Associates 〞 Parent 〞 Associates Parent Associates 〞〞〞〞〞〞〞	Sales Sales Purchases Purchases Purchases Purchases Sales Sales Purchases Sales Purchases Sales Purchases Purchases Sales Sales Sales Purchases Purchases Sales	13,784,895 6,072,282 69,704,781 101,171 109,022 13,784,895 260,689 128,405 6,072,282 109,022 128,405 69,704,781 7,393,676 62,311,106 7,393,676 8,614,315 1,776,175 260,689 8,614,315 62,311,106	% 15.21 % 6.70 % 77.34 % 0.38 % 0.12 % 89.82 % 1.58 % 0.78 % 94.29 % 1.69 % 2.06 % 100.00 % 10.61 % 89.39 % 40.03 % 46.64 % 9.62 % 1.31 % 100.00 % 99.31	90-105 days 90-105 days 90-105 days 90-105 days 90 days 90-105 days 90-105 days 90-105 days 90-105 days 90-105 days 90-105 days 90-105 days 90-105 days 90-105 days 90 days 90-105 days 90-105 days 90 days 90-105 days 90-105 days	- - - - - - - - - - - - - - - - - - - -	No general trading partner can be compared. 〞〞〞〞〞〞〞〞〞〞〞〞〞〞〞〞〞〞〞	18,819,307 10,816,308 (36,965,840) (102,261) (40,816) (18,819,307) 265,276 136,912 (10,816,308) 40,816 (136,912) 36,965,840 (11,424,035) (25,541,805) 11,424,035 8,736,582 1,764,313 (265,276) (8,736,582) 25,541,805	% 22.00 % 12.64 % 46.21 % 0.13 % 0.05 % 96.92 % 2.88 % 1.48 % 97.32 % 0.50 % 1.23 % 46.61 % 14.40 % 32.20 % 51.12 % 39.10 % 7.90 % 0.95 % 100.00 % 97.74

〜 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)

March 31, 2021 and 2020

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

Name of company	Related party	Nature of relationship		Transacti	on details		Trans diffe	actions with terms rent from others	Notes/Accounts r	eceivable (payable)	Note
			Purchase/ Sale	Amount	Percentage of total purchases/sale	Payment terms	Unit price	Payment terms	Ending balance	Percentage of total notes/accounts receivable (payable)
SQ Technology (Shanghai) Corporation Inventec Appliances Corp. 〞〞〞 Inventec Appliances (USA) Distribution Corp. Inventec Appliances (Pudong) Corp. Inventec Appliances (Jiangning) Corp. 〞 Inventec Appliances (Nanchang) Intelligent Manufacturing Co., Ltd.	Inventec (Pudong) Technology Corp. Inventec Appliances (USA) Distribution Corp. Inventec Appliances (Pudong) Corp. Inventec Appliances (Jiangning) Corp. Inventec Appliances (Nanchang) Intelligent Manufacturing Co., Ltd. Inventec Appliances Corp. Inventec Appliances Corp. The Company Inventec Appliances Corp. Inventec Appliances Corp.	Associates 〞〞〞〞〞〞 Parent Associates 〞	Purchases Sales Purchases Purchases Purchases Purchases Sales Sales Sales Sales	1,776,175 192,043 4,193,916 312,277 133,481 192,043 4,193,916 101,171 312,277 133,481	% 100.00 % 3.49 % 70.95 % 5.35 % 2.29 % 100.00 % 97.30 % 10.22 % 31.29 % 98.25	90 days 90 days 1-2 months 1-2 months 1-2 months 1-2 months 1-2 months 1-2 months 90 days 1-2 months	- - - - - - - - - -	No general trading partner can be compared. 〞〞〞〞〞〞〞〞〞	(1,764,313) 61,874 (6,432,972) (185,814) (43,485) (61,874) 6,432,972 102,261 185,814 43,485	% 100.00 % 1.39 % 83.31 % 2.41 % 0.56 % 100.00 % 96.10 % 14.65 % 26.62 % 96.18

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 Holding (North America) Corp. Inventec (Czech), s.r.o. Inventec Corporation (Hong Kong) Ltd. (Note) Inventec (Czech), s.r.o.	Subsidiary Subsidiary Subsidiary Associates	18,819,307 10,816,308 42,338,616 136,912	3.11 2.23 - 2.71	2,939,896 3,077,096 6,714,369 -	Received in the subsequent period Received in the subsequent period Received in the subsequent period	1,434,060 355,974 14,677,430 -	- - - -

〜 57 〜

(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)

March 31, 2021 and 2020

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

Name of company	Counter party	Relationship	Ending balance	Turnover balance	Overdue	Overdue	Amounts received in subsequent period	Allowance for bad debts
					Amount	Action taken
Inventec Holding (North America) Corp. Inventec Corporation (Hong Kong) Ltd. 〞〞 Inventec (Pudong) Technology Corp. 〞〞 Inventec (Chongqing) Corp. Inventec Appliences (Pudong) Corp. Inventec Appliances (Jiangning) Corp. 〞	Inventec (Pudong) Technology Corp. The Company Inventec (Pudong) Technology Corp. (Note) Inventec (Chongqing) Corp. (Note) Inventec Corporation (Hong Kong) Ltd. Inventec (Shanghai) Corp. SQ Technology (Shanghai) Corporation Inventec Corporation (Hong Kong) Ltd. Inventec Appliances Corp. The Company Inventec Appliances Corp.	Associates Parent Associates Associates Associates Associates Associates Associates Associates Parent Associates	265,276 36,965,840 20,917,029 21,421,587 11,424,035 8,736,582 1,764,313 25,541,805 6,432,972 102,261 185,814	5.52 6.63 - - 2.99 3.51 8.05 7.75 2.17 4.16 5.65	1,161 1,583,864 6,712,084 2,285 1,583,864 34,561 - - - - -	Received in the subsequent period Intensive follow-up on collection Received in the subsequent period Intensive follow-up on collection Received in the subsequent period	- 1,426,500 - 14,677,430 - 4,385,016 - 1,426,500 406,158 47,472 84,521	- - - - - - - - - - -

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	Inventec Corporation 〞〞〞〞〞〞 Inventec Corporation (Hong Kong) Ltd. 〞〞〞〞〞	Inventec Holding (North America) Corp. 〞 Inventec (Czech), s.r.o. 〞 Inventec Corporation (Hong Kong) Ltd. 〞〞 Inventec (Pudong) Technology Corp. 〞〞 Inventec (Chongqing) Corp. 〞〞	1 1 1 1 1 1 1 3 3 3 3 3 3	Sales Accounts Receivable Sales Accounts Receivable Purchases Other Receivables Accounts Payable Purchases Accounts Payable Accounts Receivable Purchases Accounts Payable Accounts Receivable	13,784,895 18,819,307 6,072,282 10,816,308 69,704,781 42,338,616 36,965,840 7,393,676 11,424,035 20,917,029 62,311,106 25,541,805 21,421,587	Negotiated price 90-105 days Negotiated price 90-105 days Negotiated price 90-105 days 90-105 days Negotiated price 90-105 days 〞 Negotiated price 90 days 〞	% 12 % 9 % 5 % 5 % 62 % 19 % 17 % 7 % 5 % 10 % 56 % 12 % 10

〜 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)

March 31, 2021 and 2020

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

No.	Name of company	Name of counter party	Existing relationship with the counter- party	Transactions	Transactions	Transactions	Transactions
				Account name	Amount	Terms of trading	Percentage of the consolidated total revenue or total assets
2	Inventec Appliances Corp. I ( 〞	nventec Appliances Pudong) Corp. 〞	3 3	Purchases Accounts Payable	4,193,916 6,432,972	Negotiated price 1-2 months	% 4 % 3
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.

(b) Information on investment:

The following is the information on investees for the three months ended March 31, 2021 (excluding investees in Mainland China):

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

Investor company	Investee company	Location	Main businesses and products	Original inves	tment amount	Balanc	e as of March 31,	2021	Net income (loss) of the investee	Share of profits/losses of investee	Note
				March 31, 2021	March 31, 2020	Shares/Units (In thousands)	Percentage of ownership	Carrying value
The Company 〞〞〞〞〞〞〞〞〞	Inventec Besta Co., Ltd. Inventec Corporation (Hong Kong) Ltd. Inventec Holding (North America) Corp. Inventec Appliances Corp. Inventec (Cayman) Corp. IEC (Cayman) Corporation Inventec (Czech), S.R.O. Inventec Investment Co., Ltd. Inventec Solar Energy Corporation Inventec Development Japan Corporation	Taipei Hong Kong USA New Taipei City Cayman Cayman Czech Taipei Taoyuan Japan	Electronic dictionary Trading Holding Company Intelligent device products Holding Company Holding Company Production and sales of computer products Investment Company Sales of solar cells and medical equipment Trading	420,347 167,162 159,003 9,656,877 9,812,963 739,500 85,921 1,000,000 1,087,800 630,845	420,347 167,162 159,003 9,656,877 9,812,963 739,500 85,921 1,000,000 1,087,800 630,845	23,405 2,500 5,000 536,857 301,768 25,000 - 108,800 108,150 45	% 37.53 % 100.00 % 100.00 % 100.00 % 100.00 % 100.00 % 100.00 % 100.00 % 33.45 % 100.00	205,311 360,520 1,295,353 8,431,063 21,587,719 1,236,047 114,646 120,088 (332,177) 16,176	(13,673) (3,591) 11,143 (38,034) 526,253 55,342 4,638 (5,928) (113,164) (295)	(5,131) (3,591) 11,143 (38,034) 526,253 55,342 4,638 (5,928) (35,973) (295)	Associate under equity method Subsidiary 〞〞〞〞〞〞〞〞

〜 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)

March 31, 2021 and 2020

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

Investor company	Investee company	Location	Main businesses and products	Original inves	tment amount	Balanc	e as of March 31,	2021	Net income (loss) of the investee	Share of profits/losses of investee	Note
				March 31, 2021	March 31, 2020	Shares/Units (In thousands)	Percentage of ownership	Carrying value
The Company 〞〞 Inventec Investment Co., Ltd. Inventec Investment Co., Ltd. Inventec Appliances Corp. 〞〞〞 Inventec Appliances (Cayman) Holding Corp. 〞 Inventec Appliences (Pudong) Corp.	Inventec Japan Corporation AIMobile Co., Ltd. Inventec Manufacturing (India) Private Limited Inventec Solar Energy Corporation Inventec Manufacturing (India) Private Limited Inventec Appliances (Cayman) Holding Corp. Gainia Intellectual Asset Services, Inc. Good Future Biomedical Technology Corp. Inventec Solar Energy Corporation Inventec Appliances (USA) Distribution Corp. Inventec Appliances Corporation USA, Inc. Inventec Appliances (Malaysia) SDN. BHD.	Japan Taipei India Taoyuan India Cayman Taipei Taoyuan Taoyuan USA USA Malaysia	Trading and management service Developing, production and sales of intelligent mobile devices Trading Sales of solar cells and medical equipment Trading Holding Company Intellectual property rights integrative services Biotechnology services and retail sale and wholesale of medical divices Sales of solar cells and medical equipment Marketing promotion Sales services Production and sales of intelligent devices	2,954 182,500 281,691 150,000 28 5,693,864 6,400 23,712 311,160 22,824 1,427 487,813	2,954 182,500 281,691 150,000 28 5,693,864 6,400 23,712 311,160 22,824 1,427 487,813	- 18,250 55,994 15,000 6 199,575 205 9,120 30,930 400 10 71,000	% 100.00 % 73.00 % 99.99 % 4.64 % 0.01 % 100.00 % 38.90 % 30.00 % 9.57 % 100.00 % 100.00 % 100.00	3,135 112,005 11,227 (49,789) 1 16,218,452 552 23,712 (102,665) 93,390 13,318 450,969	179 (14,078) 59 (113,164) 59 (228,968) (2,007) (869) (113,164) 533 289 (18,094)	179 (10,277) 337 - - - - - - - - -	Subsidiary 〞〞 Associate Company 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.

〜 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)

March 31, 2021 and 2020

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

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

(In Thousands of New Taiwan Dollars)

Name of investee	Main businesses and products	Total amount of paid-incapital	Method of investment (Note 1)	Accumulated outflow of investment from Taiwan as of January 1, 2021	Investm	ent flows	Accumulated outflow of investment from Taiwan as of March 31, 2021	Net income (losses) of the investee	Percentage of ownership	Investment income (losses) (Note 2)	Book value	Accumulated remittance of earnings in current period (Note 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 Inventec (Pudong) Technology Corp. Inventec Electronics (Tianjin) Co., Ltd. Inventec (Beijing) Electronics Technology Co., Ltd. Inventec Hi-Tech Corporation Inventec Asset- Management (Shanghai) Corporation Saint Investment consulting corporation SQ Technology (Shanghai) Corporation 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.	Sales of computer products Sales of computer products Sales of computer products Sales of computer products Production and sales of computer products Production and sales of computer products Electronic product software development Electronic product software development Sales of computer products Leasing Business Management Production and sales of computer products Development of intelligent devices Production and sales of intelligent devices Production and sales of intelligent devices House leasing Development of intelligent devices Development of intelligent devices	187,676 28,530 1,426,500 2,076,033 2,139,750 1,671,622 142,650 41,369 1,426,500 1,859,095 86,832 180,723 1,472,148 2,196,810 1,940,040 142,650 114,120 59,913	(2) (2) (2) (2) (2) (2) (2) (2) (2) (3) (3) (3) (2) (2) (2) (2) (2) (2)	57,060 28,530 1,426,500 841,635 2,139,750 1,426,500 121,253 41,369 1,426,500 - - - 1,372,807 2,196,810 1,198,260 256,242 114,120 59,913	- - - - - - - - - - - - - - - - - -	- - - - - - - - - - - - - - - - - -	57,060 28,530 1,426,500 841,635 2,139,750 1,426,500 121,253 41,369 1,426,500 - - - 1,372,807 2,196,810 1,198,260 256,242 114,120 59,913	(165) 115 13,068 20,065 497,850 155,815 1,103 (6,824) (10,536) (5,152) 45 2,156 (46,013) (126,821) 43,093 2,430 3,762 (12,927)	% 100.00 % 100.00 % 100.00 % 100.00 % 100.00 % 100.00 % 100.00 % 100.00 % 100.00 % 78.00 % 100.00 % 100.00 % 100.00 % 100.00 % 100.00 % 100.00 % 100.00 % 100.00	(165) 115 13,068 20,065 497,850 156,969 1,103 (6,824) (10,536) (4,018) 45 2,156 (46,013) (219,687) 43,944 2,430 3,762 (12,927)	122,386 39,945 4,117,781 1,869,275 7,845,500 6,779,074 230,443 70,129 1,121,815 1,363,070 86,910 182,878 1,716,443 8,577,014 5,307,198 383,385 54,246 67,912	30,234 - - - 2,242,107 321,599 149,517 - - - - - 1,535,981 2,297,117 1,636,736 85,353 - -

〜 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)

March 31, 2021 and 2020

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

Name of investee	Main businesses and products	Total amount of paid-incapital	Method of investment (Note 1)	Accumulated outflow of investment from Taiwan as of January 1, 2021	Investment flows	Investment flows	Accumulated outflow of investment from Taiwan as of March 31, 2021	Net income (losses) of the investee	Percentage of ownership	Investment income (losses) (Note 2)	Book value	Accumulated remittance of earnings in current period (Note 8)
					Out-flow	Inflow
APEX Business Management & Consulting (Shanghai) Co., Ltd. Inventec Appliances (Shanghai) Enterprise Co., Ltd. Inventec Appliances (Nanchang) Intelligent Manufacturing Co., Ltd.	Business Management Development of intelligent devices Production and sales of intelligent devices	2,179 34,733 260,496	(3) (3) (3)	- - -	- - -	- - -	- - -	3,753 (226) (35,856)	% 100.00 % 100.00 % 100.00	3,753 (226) (35,856)	87,338 25,024 69,312	- - -

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 March 31, 2021	Investment Amounts Authorized by Investment Commission, MOEA	Upper Limit on Investment (Note 3,4,7)
The Company Inventec Appliances Corp.	7,569,009 5,261,731	7,569,009 5,261,731	- 4,596,965

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

(1) Direct investment in Mainland China.

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

(3) Others

Note 2: The 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 March 31, 2021, 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 three months ended March 31, 2021, 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 other department. The core department manufactures computer products and intelligent device products and sells them to customers. The other department is engaged in environmental energy and emerging technology business.

〜 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)

March 31, 2021 and 2020

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

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 March 31, 2021	For the three months ended March 31, 2021	For the three months ended March 31, 2021	For the three months ended March 31, 2021
Core Others Adjustment and Elimination Total $ 111,836,777 11,412 - 111,848,189 $ 111,836,777 11,412 - 111,848,189 $ 1,518,392 (113,163) - 1,405,229 For the three months ended March 31, 2020			Total 111,848,189
			111,848,189
			1,405,229
	Others 642,361 642,361 (148,538) - - -	Adjustment and Elimination - - - - - -	Total 88,679,110
			88,679,110
			5,165,232
			-
			-
			-

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.

〜 63 〜

AI assistant

INVENTEC — Interim / Quarterly Report 2021

52026_rns_2021-11-25_e6af68b2-de11-4c7f-bb5c-a44228271839.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

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 MARCH 31, 2021 AND 2020

INVENTEC CORPORATION AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

March 31, 2021, December 31, 2020, and March 31, 2020

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

INVENTEC CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

For the Three months ended March 31, 2021 and 2020

(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 Three Months Ended March 31, 2021 and 2020

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

INVENTEC CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

For the Three Months Ended March 31, 2021 and 2020

INVENTEC CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS (CONT'D)

For the Three Months Ended March 31, 2021 and 2020

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

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2021 and 2020

(1) Overview

(2) Financial Statements Authorization Date and Authorization Process

(3) 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)

March 31, 2021 and 2020

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

(4) Summary of Significant Accounting Policies

(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)

March 31, 2021 and 2020

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

(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)

March 31, 2021 and 2020

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

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

(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)

March 31, 2021 and 2020

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

(6) Explanation to Significant Accounts

(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) March 31, 2021 and 2020

(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) March 31, 2021 and 2020

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

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT'D)

March 31, 2021 and 2020

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

(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)

March 31, 2021 and 2020

(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)

March 31, 2021 and 2020

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

(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) March 31, 2021 and 2020

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

1.Judgment on existence of substantial control over investee

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

INVENTEC Interim / Quarterly Report 2021