INVENTEC — Interim / Quarterly Report 2021

Nov 25, 2021

Stock Code:2356

INVENTEC CORPORATION AND SUBSIDIARIES

CONSOLIDATED FINANCIAL STATEMENTS

With Independent Auditors’ Review Report For the Six Months Ended June 30, 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.

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Table of contents

Contents 1. Cover Page 2. Table of Contents 3. Independent Auditors’ Review Report 4. Consolidated Balance Sheets 5. Consolidated Statement of Comprehensive Income 6. Consolidated Statement of Changes in Equity 7. Consolidated Statement 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

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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 June 30, 2021 and 2020, and the related consolidated statements of comprehensive income for the three months and six months ended June 30, 2021 and 2020, as well as the changes in equity and cash flows for the six months ended June 30, 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 $74,732,310 thousand and $74,390,631 thousand, constituting 33% and 30% of the consolidated total assets; and the total liabilities amounting to $19,655,127 thousand and $21,136,283 thousand, constituting 11% and 11% of the consolidated total liabilities as of June 30, 2021 and 2020, respectively; as well as the total comprehensive income (loss) amounting to $249,775 thousand, $11,378 thousand, $241,278 thousand and $(963,487) thousand, constituting 543%, 1%, 20% and (22)% of the consolidated total comprehensive income (loss) for the three months and six months ended June 30, 2021 and 2020, respectively.

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Furthermore, as stated in Note (6)(f), the other equity accounted investments of the Group in its investee companies of $23,551 thousand and $95 thousand as of June 30, 2021 and 2020, respectively, and its equity in net earnings on these investee companies of $(713) thousand, $(753) thousand, $(1,494) thousand and $(1,611) thousand for the three months and six months ended June 30, 2021 and 2020, 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 June 30, 2021 and 2020, and of its consolidated financial performance for the three months and six months ended June 30, 2021 and 2020, as well as its consolidated cash flows for the six months ended June 30, 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) August 10, 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.

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.

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(English Translation of Consolidated Financial Statements Originally Issued in Chinese) REVIEWED ONLY, NOT AUDITED IN ACCORDANCE WITH GENERALLY ACCEPTED AUDITING STANDARDS AS OF JUNE 30, 2021 AND 2020 INVENTEC CORPORATION AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

June 30, 2021, December 31, 2020, and June 30, 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) and (8)) 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), (6)(q) and (8)) TOTAL ASSETS	2021.6.30 Amount % $ 33,863,200 15 789,766 - 1,523,507 1 88,546,073 39 1,872,446 1 52,964,007 23 7,596,078 3 187,155,077 82 849,693 - 4,063,017 2 299,553 - 27,606,192 12 3,144,470 1 918,363 1 3,248,262 2 40,129,550 18 $ 227,284,627 100	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	2020.6.30 Amount % 33,334,526 14 3,081,810 1 1,214,743 - 107,036,035 44 471,371 - 53,638,007 22 5,572,146 2 204,348,638 83 720,124 - 3,803,749 2 231,144 - 29,275,530 12 3,113,742 2 859,891 - 2,888,974 1 40,893,154 17 245,241,792 100 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	2021.6.30 Amount % $ 34,333,751 15 175,658 - 7,198,525 3 78,017,627 35 2,050,610 1 16,302,357 7 330,744 - 194,981 - 14,866,897 7 153,471,150 68 14,595,260 6 631,168 - 644,606 - 5,492,345 3 21,363,379 9 174,834,529 77 35,874,751 16 2,899,284 1 16,753,038 7 (2,788,696) (1) 52,738,377 23 (288,279) - 52,450,098 23 $ 227,284,627 100	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	2020.6.30 Amount % 42,340,395 17 194,344 - 6,937,818 3 88,035,971 36 2,318,383 1 15,978,848 7 13,249,424 5 194,631 - 10,879,568 4 180,129,382 73 3,354,698 2 616,882 - 812,151 - 4,380,733 2 9,164,464 4 189,293,846 77 35,874,751 15 2,913,461 1 18,313,170 8 (1,766,364) (1) 55,335,018 23 612,928 - 55,947,946 23 245,241,792 100

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

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(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 STATEMENT OF COMPREHENSIVE INCOME

For the Three months and six months Ended June 30, 2021 and 2020

(Expressed in Thousands of New Taiwan Dollars)

4110 Total sales revenue (Notes (4), (6)(u) and (7)) 5000 Total operating costs (Notes (4) and (7)) Gross profit from operations Operating expenses (Notes (6)(c) and (6)(v)): 6100 Selling expenses 6200 Administrative expenses 6300 Research and development expenses 6450 Expected credit losses 6400 Total operating expenses Net operating income Non-operating income and expenses: 7100 Interest income (Note (6)(w)) 7010 Other income (Note (6)(w)) 7020 Other gains and losses, net (Note (6)(w)) 7050 Finance costs, net (Notes (6)(w)) 7060 Shares of profit (loss) of associates and joint ventures accounted for using equity method, net (Note (4) and (6)(f)) Total non-operating income and expenses Profit from continuing operations before tax 7950 Less: Income tax expenses (Note (6)(q)) Profit Other comprehensive income: 8310 Components of other comprehensive income that will not be reclassified to profit or loss 8316 Unrealized gains (losses) from investments in equity instruments measured at fair value through other comprehensive income 8320 Share of other comprehensive income of associates and joint ventures accounted for using equity method, components of other comprehensive income that will not be reclassified to profit or loss 8349 Income tax related to components of other comprehensive income that will not be reclassified to profit or loss Components of other comprehensive income that will not be reclassified to profit or loss 8360 Components of other comprehensive income (loss) that will be reclassified to profit or loss 8361 Exchange differences on translation of foreign financial statements 8370 Share of other comprehensive income of associates and joint ventures accounted for using equity method, components of other comprehensive income that will be reclassified to profit or loss 8399 Income tax related to components of other comprehensive income that will be reclassified to profit or loss Components of other comprehensive income that will be reclassified to profit or loss Other comprehensive income 8500 Total comprehensive income Profit (loss), attributable to: 8610 Profit (loss), attributable to owners of parent 8620 Profit (loss), attributable to non-controlling interests Comprehensive income attributable to: 8710 Comprehensive income, attributable to owners of parent 8720 Comprehensive income, attributable to non-controlling interests Earnings per share attributable to stockholders of parent (Notes (4) and (6)(t)) 9750 Basic earnings per share (NT dollars) 9850 Diluted earnings per share (NT dollars)	For the three month	s ended June 30, 2020 Amount % 148,757,797 100 142,723,330 96 6,034,467 4 718,821 - 945,853 1 2,283,680 2 56,337 - 4,004,691 3 2,029,776 1 290,700 - 58,249 - 34,550 - (331,057) - (10,337) - 42,105 - 2,071,881 1 553,039 - 1,518,842 1 664,723 - 155 - - - 664,878 - (668,262) - (490) - - - (668,752) - (3,874) - 1,514,968 1 1,659,446 1 (140,604) - 1,518,842 1 1,662,550 1 (147,582) - 1,514,968 1 0.46	For the six month 2021 Amount % 226,651,717 100 216,383,416 95 10,268,301 5 1,470,602 1 1,850,551 1 4,913,330 2 22,263 - 8,256,746 4 2,011,555 1 572,180 - 230,484 - 68,610 - (326,960) - 61,757 - 606,071 - 2,617,626 1 530,389 - 2,087,237 1 (281,045) - (225) - - - (281,270) - (612,449) - 2,666 - - - (609,783) - (891,053) - 1,196,184 1 2,277,318 1 (190,081) - 2,087,237 1 1,390,547 1 (194,363) - 1,196,184 1 0.63	s ended June 30,
	2021 Amount % $ 114,803,528 100 109,655,411 96 5,148,117 4 757,890 - 890,686 1 2,442,397 2 26,937 - 4,117,910 3 1,030,207 1 288,351 - 166,774 - (179,814) - (160,790) - 67,669 - 182,190 - 1,212,397 1 202,307 - 1,010,090 1 (442,775) - (225) - - - (443,000) - (523,676) (1) 2,534 - - - (521,142) (1) (964,142) (1) $ 45,948 - $ 1,132,599 1 (122,509) - $ 1,010,090 1 $ 170,813 - (124,865) - $ 45,948 - $ 0.32			2020 Amount % 237,436,907 100 227,206,690 96 10,230,217 4 1,304,144 - 2,037,651 1 4,556,491 2 48,848 - 7,947,134 3 2,283,083 1 585,672 - 130,472 - 4,826,089 2 (577,338) - (10,865) - 4,954,030 2 7,237,113 3 2,783,537 1 4,453,576 2 894,439 - (3,973) - - - 890,466 - (863,718) - (1,212) - - - (864,930) - 25,536 - 4,479,112 2 4,691,205 2 (237,629) - 4,453,576 2 4,727,588 2 (248,476) - 4,479,112 2 1.31
	$ 0.32	0.46	0.63	1.30

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

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(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 STATEMENT OF CHANGES IN EQUITY

For the Six Months Ended June 30, 2021 and 2020

(Expressed in Thousands of New Taiwan Dollars)

Balance at January 1, 2020 Net income (loss) for the period Other comprehensive income (loss) for the period Total comprehensive income (loss) for the period Appropriation and distribution of retained earnings: Legal reserve appropriated Special reserve appropriated Cash dividends of ordinary shares Disposal of subsidiaries or investments accounted for using equity method Changes in non-controlling interests Balance at June 30, 2020 Balance at January 1, 2021 Net income (loss) for the period Other comprehensive income (loss) for the period Total comprehensive income (loss) for the period Appropriation and distribution of retained earnings: Legal reserve appropriated Special reserve appropriated Cash dividends of ordinary shares Balance at June 30, 2021			Equity attributable to owners of parent	Equity attributable to owners of parent	Equity attributable to owners of parent	Equity attributable to owners of parent	Equity attributable to owners of parent 55,271,148 4,691,205 36,383 4,727,588 - - (4,663,718) - - 55,335,018 57,984,659 2,277,318 (886,771) 1,390,547 - - (6,636,829) 52,738,377	Non - controlling interests 1,700,080 (237,629) (10,847) (248,476) - - - - (838,676) 612,928 (93,916) (190,081) (4,282) (194,363) - - - (288,279)	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 - - (854,083) 890,466 (854,083) 890,466 - - - - - - - 19,258 - - (2,859,217) 1,092,853 (2,467,365) 565,440 - - (605,501) (281,270) (605,501) (281,270) - - - - - - (3,072,866) 284,170
						Exchange Differences on Translation of Foreign Financial Statements (2,005,134) - (854,083) (854,083) - - - - - (2,859,217) (2,467,365) - (605,501) (605,501) - - - (3,072,866)
			Legal Reserve 10,799,605 - - - 546,296 - - - - 11,345,901 11,345,901 - - - 747,132 - - 12,093,033	Special Reserve 1,646,357 - - - - 175,647 - - - 1,822,004 1,822,004 - - - - 79,921 - 1,901,925	Unappropriated Retained Earnings
					5,858,979 4,691,205 - 4,691,205 (546,296) (175,647) (4,663,718) (19,258) - 5,145,265 7,944,644 2,277,318 - 2,277,318 (747,132) (79,921) (6,636,829) 2,758,080				56,971,228 4,453,576 25,536
									4,479,112
									- - (4,663,718) - (838,676)
									55,947,946
									57,890,743 2,087,237 (891,053)
									1,196,184
									- - (6,636,829)
									52,450,098

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 STATEMENT OF CASH FLOWS

For the Six Months Ended June 30, 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 losses Interest expenses Interest income Dividend income Shares of (gain) loss 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) losses Others Total adjustments to reconcile profit Changes in operating assets and liabilities: Changes in operating assets: Increase in financial assets at fair value through profit or loss, mandatorily measured at fair value Decrease (increase) in accounts receivable (Increase) decrease in other receivables Increase in inventories Decrease (increase) in other current assets Total changes in operating assets Changes in operating liabilities: (Decrease) increase in financial liabilities held for trading (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 outflow generated from operations Interest received Dividends received Interest paid Income taxes paid Net cash flows used in operating activities

For the six months ended June 30, 2021 2020 $ 2,617,626 7,237,113 1,192,404 1,510,439 488,677 420,472 22,263 48,848 326,960 577,338 (572,180) (585,672) (93,334) - (61,757) 10,865 174,120 (4,740,058) 22,242 (24,435) 4,043 55,373 (110,933) 98,778 7,796 - 1,400,301 (2,628,052) (44,858) (298,506) 3,057,976 (20,471,838) (1,096,168) 194,904 (12,428,256) (17,188,662) 685,548 (3,601,518) (9,825,758) (41,365,620) (72,842) 86,169 (624,340) 253,856 4,589,347 18,877,783 (1,806,400) (121,695) 3,028,501 1,623,127 (25,003) (23,519) 5,089,263 20,695,721 (4,736,495) (20,669,899) (3,336,194) (23,297,951) (718,568) (16,060,838) 742,107 632,491 93,334 - (343,757) (479,496) (716,100) (1,841,250) (942,984) (17,749,093)

2021 $ 2,617,626 1,192,404 488,677 22,263 326,960 (572,180) (93,334) (61,757) 174,120 22,242 4,043 (110,933) 7,796 1,400,301 (44,858) 3,057,976 (1,096,168) (12,428,256) 685,548 (9,825,758) (72,842) (624,340) 4,589,347 (1,806,400) 3,028,501 (25,003) 5,089,263 (4,736,495) (3,336,194) (718,568) 742,107 93,334 (343,757) (716,100) (942,984)

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 STATEMENT OF CASH FLOWS (CONT'D)

For the Six Months Ended June 30, 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 in short-term borrowings Proceeds from long-term borrowings Repayments of long-term borrowings Payment of lease liabilities Decrease in other non-current liabilities Net cash flows from financing activities Effect of exchange rate changes on cash and cash equivalents Net increase in cash and cash equivalents Cash and cash equivalents at beginning of period Cash and cash equivalents at end of period

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

〜 7-1 〜

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

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

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

June 30, 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 June 30, 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 August 10, 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. which have already been adopted.

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

• ●Amendments to IFRS 4 “Extension of the Temporary Exemption from Applying IFRS 9”

• ●Amendments to IFRS 9, IAS39, IFRS7, IFRS 4 and IFRS 16 “Interest Rate Benchmark Reform— Phase 2”

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

• ●Amendments to IFRS 16 “Covid-19-Related Rent Concessions beyond June 30, 2021”

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

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

• －

• ●Amendments to IAS 16 “Property, Plant and Equipment Proceeds before Intended Use”

• －

• ●Amendments to IAS 37 “Onerous Contracts Cost of Fulfilling a Contract”

〜 8 〜

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

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

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT'D)

June 30, 2021 and 2020

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

• ●Annual Improvements to IFRS Standards 2018–2020

• ●Amendments to IFRS 3 “Reference to the Conceptual Framework”

• (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”

• ●Amendments to IAS 1 “Classification of Liabilities as Current or Non-current”

• ●Amendments to IAS 1 “Disclosure of Accounting Policies”

• ●Amendments to IAS 8 “Definition of Accounting Estimates”

• ●Amendments to IAS 12 “Deferred Tax related to Assets and Liabilities arising from a Single Transaction”

(4) Summary of Significant Accounting Policies

• (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 2020.6.30 Note
			2021.6.30	2020.12.31
The Company 〞 〞 〞 〞	Inventec Corporation (Hong Kong) Ltd. Inventec Holding (North America) Corp. Inventec (Cayman) Corp. IEC (Cayman) Corporation Inventec (Czech), s.r.o.	Trading Holding Company Holding Company Holding Company Production and sales of computer products	% 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 2) % 100.00 % 100.00 (Note 1) % 100.00 (Note 1)

〜 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)

June 30, 2021 and 2020

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

Investor	Name of Subsidiary	Principal activity	Shareholding Rat	Shareholding Rat	io 2020.6.30 Note
			2021.6.30	2020.12.31
The Company 〞 〞 〞 〞 The Company、 Inventec Investments Co., Ltd. and Inventec Appliances Corp. The Company and Inventec Investments Co., Ltd. Inventec Corporation (Hong Kong) Ltd. 〞 Inventec (Cayman) Corp. and Inventec (Pudong) Technology Corp. 〞 Inventec (Cayman) Corp. 〞 〞 〞 〞 Inventec (Cayman) Corp. and IEC (Cayman) Corporation Inventec (Shanghai) Corp. Inventec (Shanghai) Service Co., Ltd. Inventec (Pudong) Technology Corp. Inventec Holding (North America) Corp. 〞 〞 〞	Inventec Development Japan Corporation Inventec Investments Co., Ltd. AIMobile Co., Ltd. Inventec Japan Corporation Inventec Appliances Corp. Inventec Solar Energy Corporation Inventec Manufacturing (India) Private Limited Inventec Electronics (Tianjin) Co., Ltd. Inventec (Beijing) Electronics Technology Co., Ltd. Inventec (Shanghai) Corp. Inventec (Shanghai) Service Co., Ltd. Inventec (Pudong) Corp. Inventec (Pudong) Technology Corp. Inventec Hi-Tech Corp. Inventec Huan Hsin (Zhejiang) Technology Co., Ltd. Inventec (Chongqing) Service Co., Ltd Inventec (Chongqing) Corp. Inventec Asset-Management (Shanghai) Corporation Saint Investment Consulting Corporation SQ Technology (Sanghai) Corporation Inventec (USA) Corporation Inventec Manufacturing (North America) Corporation Inventec Configuration (North America) Corporation Inventec Distribution (North America) Corporation	Trading Investment company Developing, production and sales of intelligent mobile devices Trading and management services Intelligent device products Sales of solar cells and medical equipment Trading Electronic product software development 〞 Sales of computer products 〞 〞 Production and sales of computer products Sales of computer products 〞 〞 Production and sales of computer products Leasing Business management Production and sales of computer products Services of computer products 〞 Production and sales of computer products 〞	% 100.00 % 100.00 % 73.00 % 100.00 % 100.00 % 47.65 % 100.00 % 100.00 % 100.00 % 100.00 % 100.00 % 100.00 % 100.00 % 100.00 % - % 100.00 % 100.00 % 78.00 % 100.00 % 100.00 % 100.00 % 100.00 % 100.00 % 100.00	% 100.00 % 100.00 % 73.00 % 100.00 % 100.00 % 47.65 % 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 (Note 1) % 100.00 (Note 1) % 55.00 (Note 1) % 100.00 (Note 1) % 100.00 (Note 2) % 47.65 (Note 1) % 100.00 Inventec Manufacturing (India) Private Limited decided to dismiss on July 7, 2021. It is currently in liquidation process. (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 The cancellation of registration process was completed in January 18, 2021. % 100.00 (Note 1) % 100.00 % 78.00 (Note 1) % 100.00 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)

〜 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)

June 30, 2021 and 2020

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

Investor	Name of Subsidiary	Principal activity	Shareholding Rat	Shareholding Rat	io 2020.6.30 Note
			2021.6.30	2020.12.31
Inventec Holding (North America) Corp. and Inventec Distribution (North America) Corporation Inventec Appliances Corp. Inventec Appliances (Cayman) Holding Corp. 〞 〞 〞 〞 〞 〞 〞 〞 Inventec Appliances (Shanghai) Co., Ltd. 〞 〞 Inventec Appliances (Pudong) Corp.	IEC Technologies, S. de R.L. de C.V. Inventec Appliances (Cayman) Holding Corp. Inventec Appliances (USA) Distribution Corp. Inventec Appliances Corporation USA, Inc. Inventec Appliances (Shanghai) Co., Ltd. Inventec Appliances (Pudong) Corp. Inventec Appliances (Jiangning) Corp. Inventec Appliances (Nanjing) Corp. Inventec Appliances (XI'AN) Corporation Inventec Appliances (Nanchang) Corporation Inventec Appliances (Malaysia) SDN. BHD. Inventec Appliances (Shanghai) Enterprise Co., Ltd. APEX Business Management & Consulting (Shanghai) Co., Ltd. Inventec Appliances (Nanchang) Intelligent Manufacturing Co., Ltd. Inventec Appliances (Malaysia) SDN. BHD.	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 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 % 100.00 % 100.00 % 100.00	% 100.00 % 100.00 % 100.00 % 100.00 % 100.00 % 100.00 % 100.00 % 100.00 % 100.00 % 100.00 % - % 100.00 % 100.00 % 100.00 % 100.00	% 100.00 (Note 1) % 100.00 (Note 1) % 100.00 (Note 1) % 100.00 (Note 1) % 100.00 (Note 1) % 100.00 (Note 1) % 100.00 (Note 1) % 100.00 (Note 1) % 100.00 (Note 1) % 100.00 (Note 1) % 100.00 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.

〜 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)

June 30, 2021 and 2020

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

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.

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 and cash equivalents
Cash Demand deposits and checking accounts Time deposits Cash and cash equivalents in consolidated statement of cash flows	2021.6.30 $ 4,633 26,854,101 7,004,466 $ 33,863,200	2020.12.31 7,013 27,934,618 5,009,964 32,951,595	2020.6.30
			6,110 30,778,569 2,549,847
			33,334,526

〜 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)

June 30, 2021 and 2020

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

• (b) Financial instruments

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

Financial assets at fair value through profit or loss Derivative instruments not used for hedging Forward exchange contracts Foreign exchange swap Non-derivative financial assets Stocks of listed companies Emerging stock Unquoted financial instruments Unsecured convertible bonds Total Financial liabilities at fair value through profit or loss Held-for-trading financial liabilities Forward exchange contracts Foreign exchange swap Total	2021.6.30 $ 249,449 138,571 69,125 149,243 998,672 34,399 $ 1,639,459 2021.6.30 $ 153,443 22,215 $ 175,658	2020.12.31 13,606 237,568 145,460 232,340 1,033,760 31,210 1,693,944 2020.12.31 210,598 39,538 250,136	2020.6.30
			3,810 219,920 326,291 - 3,203,091 48,822
			3,801,934
			2020.6.30
			192,880 1,464
			194,344

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

1) Financial assets:

Foreign exchange swap Forward Forward		2021.6.30
	Contract Amount USD 644,000 USD 625,000 USD 107,000	Currency Maturity Period USD to TWD 2021.07.12~2021.11.24 USD to TWD 2021.07.12~2021.11.26 USD to CNY 2021.07.02~2021.12.30

〜 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) June 30, 2021 and 2020

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

Foreign exchange swap Forward Foreign exchange swap Forward 2) Financial liabilities: Foreign exchange swap Forward Forward Foreign exchange swap Forward Forward Foreign exchange swap Forward		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 2020.6.30
	Contract Amount USD 645,000 USD 76,306	Currency Maturity Period USD to TWD 2020.07.06-2020.09.29 USD to CNY 2020.07.30-2021.07.05 2021.6.30
	Contract Amount USD 215,000 USD 234,000 USD 51,306	Currency Maturity Period USD to TWD 2021.08.23~2021.11.26 USD to TWD 2021.09.10~2021.10.27 USD to CNY 2021.07.05~2021.12.30 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 2020.6.30
	Contract Amount USD 20,000 USD 665,000	Currency Maturity Period USD to TWD 2020.09.15 USD to TWD 2020.07.06-2020.09.29

〜 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) June 30, 2021 and 2020

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

2.Financial assets at fair value through other comprehensive income

Equity investments at fair value through other comprehensive income Stocks listed on domestic markets Stocks not listed on domestic markets Total	2021.6.30 $ 1,632,000 3,954,524 $ 5,586,524	2020.12.31 1,496,291 3,567,206 5,063,497	2020.6.30
			1,289,045 3,729,447
			5,018,492

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.

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 June 30, 2021, the aforesaid financial assets were not pledged as collateral.

• (c) Note and trade receivables

Accounts receivable- non-related parties Accounts receivable- related parties Less: Loss allowance	2021.6.30 $ 88,580,067 59,556 (93,550) $ 88,546,073	2020.12.31 91,807,993 75,749 (72,433) 91,811,309	2020.6.30 107,150,146 153 (114,264) 107,036,035

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 June 30, 2021, December 31, 2020, and June 30, 2020, the amounts of trade receivables measured at fair value through other comprehensive income were $1,435,603, $2,035,693 and $3,354,997, 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:

〜 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) June 30, 2021 and 2020

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

Current 1 to 180 days past due More than 180 days past due		2021.6.30
	Gross carrying amount $ 86,133,378 2,371,835 134,410 $ 88,639,623	Weighted- average 0%~0.5% 0.04%~10% 0.04%~100%	Loss allowance provision
			57,452 28,138 7,960
			93,550

As of the end of July 26, 2021, the amount that received by the Group is $22,133,713.

Current 1 to 180 days past due More than 180 days past due Current 1 to 180 days past due More than 180 days past due		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% 2020.6.30	Loss allowance provision
			57,719 11,802 2,912
			72,433
		Weighted- average 0%~1% 0.04%~10% 0.04%~100%	Loss allowance provision
			101,453 7,017 5,794
			114,264

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

Balance at January 1, 2021 and 2020 Impairment losses recognized Amounts written off Foreign exchange losses Balance at June 30, 2021 and 2020	For the six months ended June 30, 2021 2020 $ 72,433 102,855 22,355 11,548 (423) - (815) (139) $ 93,550 114,264
	2021 $ 72,433 22,355 (423) (815) $ 93,550

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.

〜 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)

June 30, 2021 and 2020

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

As of June 30, 2021, December 31, 2020 and June 30, 2020, none of the receivables above are pledged as collateral for loans and borrowings.

As of June 30, 2021, December 31, 2020 and June 30, 2020, the Group sold its accounts receivable without recourse as follows:

(Unit: Foreign currency/TWD in Thousands)

2021.6.30

			2021.6.30	2021.6.30
Purchaser	Amount Derecognized		Amount Advanced Unpaid Paid USD 221,256 Note USD 812,978 2020.12.31		Amount Recognized in other Receivable -	Range of Significant Transferring Interest Rate Terms 0.80%~1.31% The accounts receivable factoring is without recourse but the seller still bears the risks except for eligible obligor’s insolvency.
Non-related parties	$ 22,649,577
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
Purchaser	Amount Derecognized				Amount Recognized in other Receivable -	Range of Significant Transferring Interest Rate Terms 1.16%~2.09% The accounts receivable factoring is without recourse but the seller still bears the risks except for eligible obligor’s insolvency.
			Unpaid USD 2,088 Note USD
Non-related parties	$ 29,686,586

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.

〜 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) June 30, 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	2021.6.30 $ - 1,872,446 $ 1,872,446 2021.6.30 $ 41,413,869 8,101,671 3,390,516 57,951 $ 52,964,007	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	2020.6.30
			- 471,371
			471,371
			2020.6.30
			37,129,914 10,295,673 6,048,587 163,833
			53,638,007

For the three months and six months ended June 30, 2021 and 2020, the (write-up) write-down of inventories amounted to $(102,854), $14,802, $(204,209) and $65,598, 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 realized value to be lower than the cost is disappeared due to obsolescence or disposal, the increase of the net realizable value is recognized in deduction of operating cost. For the three months and six months ended June 30, 2021 and 2020, expenses of idle capacity amounted to $72,846, $21,771, $120,936, and $98,907, respectively.

As of June 30, 2021, December 31, 2020 and June 30, 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	2021.6.30 $ 299,553	2020.12.31 211,643	2020.6.30
			231,144

As of June 30, 2021, December 31, 2020 and June 30, 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 seven board directors. Therefore, the Group does not have existing rights and the current ability to direct the investee's relevant activities, thus, the Group does not have control over Besta.

〜 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)

June 30, 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 six months ended June 30, 2021 and 2020 were as follows:

Cost or deemed cost: Balance at January 1, 2021 Additions Disposals Other Effect of movements in exchange rate Balance at June 30, 2021 Balance at January 1, 2020 Additions Disposals Other Effect of movements in exchange rate Balance at June 30, 2020 Depreciation and impairment losses: Balance at January 1, 2021 Depreciation for the period Disposals Other Effect of movements in exchange rate Balance at June 30, 2021	Land	Building and construction	Machinery and equipment	Transportation equipment	Office equipment	Other facilities	Leasehold improvements	Others	Total
	$ 7,784,757 - - - -	17,344,433 - - (622,515) (174,277)	20,575,197 461,201 (1,959,089) 21,561 (200,199)	103,254 2,735 (1,298) - (1,104)	5,179,869 166,853 (227,686) 21,856 (48,723)	8,803,802 81,703 (1,235,705) (315,734) (61,535)	396,393 122,606 (26,899) - (10,795)	2,160,725 680,792 (858) (226,620) (31,179)	62,348,430 1,515,890 (3,451,535) (1,121,452) (527,812)
	$ 7,784,757	16,547,641	18,898,671	103,587	5,092,169	7,272,531	481,305	2,582,860	58,763,521
	$ 7,884,298 - - (99,541) -	20,800,616 - (1,926,856) (1,413,577) (327,867)	24,774,688 250,548 (1,393,643) (2,132,176) (300,079)	103,832 107 - - (1,885)	5,325,639 215,632 (176,523) (10,232) (61,182)	10,517,913 131,285 (1,868,717) 56,293 (148,256)	665,838 3,395 - (291,473) (12,375)	1,851,731 698,762 - (274,875) (57,866)	71,924,555 1,299,729 (5,365,739) (4,165,581) (909,510)
	$ 7,784,757	17,132,316	21,199,338	102,054	5,293,334	8,688,518	365,385	2,217,752	62,783,454
	$ - - - - -	4,460,648 187,386 - (294,315) (48,409)	17,798,027 460,572 (1,888,861) - (180,889)	83,005 5,323 (1,037) - (871)	4,509,777 187,512 (217,499) 2,070 (41,852)	7,226,057 185,461 (1,082,759) (384,776) (72,952)	266,333 26,099 (21,242) - (5,479)	- - - - -	34,343,847 1,052,353 (3,211,398) (677,021) (350,452)
	$ -	4,305,310	16,188,849	86,420	4,440,008	5,871,031	265,711	-	31,157,329

〜 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) June 30, 2021 and 2020

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

Balance at January 1, 2020 Depreciation for the period Disposals Impairment loss Other Effect of movements in exchange rate Balance at June 30, 2020 Carrying amounts: Balance at January 1, 2021 Balance at June 30, 2021 Balance at January 1, 2020 Balance at June 30, 2020	Land	Building and construction	Machinery and equipment	Transportation equipment	Office equipment	Other facilities	Leasehold improvements	Others	Total
	$ 10,231 - - - (10,231) -	6,653,767 202,712 (1,351,950) - (1,199,936) (101,358)	20,714,397 662,326 (1,275,844) 55,373 (2,338,422) (256,603)	71,883 6,072 - - - (1,386)	4,683,815 190,401 (173,828) - (16,142) (50,471)	8,540,656 269,013 (1,867,608) - (13,414) (140,754)	520,348 23,515 - - (291,473) (7,165)	- - - - - -	41,195,097 1,354,039 (4,669,230) 55,373 (3,869,618) (557,737)
	$ -	4,203,235	17,561,227	76,569	4,633,775	6,787,893	245,225	-	33,507,924
	$ 7,784,757	12,883,785	2,777,170	20,249	670,092	1,577,745	130,060	2,160,725	28,004,583
	$ 7,784,757	12,242,331	2,709,822	17,167	652,161	1,401,500	215,594	2,582,860	27,606,192
	$ 7,874,067	14,146,849	4,060,291	31,949	641,824	1,977,257	145,490	1,851,731	30,729,458
	$ 7,784,757	12,929,081	3,638,111	25,485	659,559	1,900,625	120,160	2,217,752	29,275,530

As of June 30, 2021, December 31, 2020, and June 30, 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 Others Effect of changes in foreign exchange rates Balance as of June 30, 2021	Land $ 2,501,251 160 - (57,557) (43,680) $ 2,400,174	Buildings 1,372,877 3,618 - - (48,252) 1,328,243	Vehicles 15,351 5,010 (4,331) - (53) 15,977	Other 620 581 - - (17) 1,184	Total
					3,890,099 9,369 (4,331) (57,557) (92,002)
					3,745,578

〜 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)

June 30, 2021 and 2020

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

Balance as of January 1, 2020 Additions Termination before the expiration Others Effect of changes in foreign exchange rates Balance as of June 30,2020 Accumulated depreciation and impairment losses: Original balance as of January 1, 2021 Depreciation for the year Termination before the expiration Others Effect of changes in foreign exchange rates Balance as of June 30, 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 June 30,2020 Carrying amount: Balance at January 1, 2021 Balance at June 30, 2021 Balance at January 1, 2020 Balance at June 30, 2020	Land $ 2,594,248 4,427 (187,959) (116,416) (76,751) $ 2,217,549 $ 115,716 34,387 - (3,010) (6,616) $ 140,477 $ 87,481 36,686 (32,675) (10,768) (12,419) $ 68,305 $ 2,385,535 $ 2,259,697 $ 2,506,767 $ 2,149,244	Buildings 1,199,936 51,189 (176) - (24,888) 1,226,061 360,840 103,001 - - (11,148) 452,693 174,934 103,967 - - (7,103) 271,798 1,012,037 875,550 1,025,002 954,263	Vehicles 15,368 1,242 - (2,914) (30) 13,666 9,042 2,604 (4,331) - (32) 7,283 4,658 2,762 - (1,053) (16) 6,351 6,309 8,694 10,710 7,315	Other 5,087 - - - (10) 5,077 610 59 - - (14) 655 1,440 725 - - (8) 2,157 10 529 3,647 2,920	Total 3,814,639 56,858 (188,135) (119,330) (101,679) 3,462,353 486,208 140,051 (4,331) (3,010) (17,810) 601,108 268,513 144,140 (32,675) (11,821) (19,546) 348,611 3,403,891 3,144,470 3,546,126 3,113,742

(j) Intangible assets

The costs of intangible assets, amortization, and impairment loss of the Group for the six months ended June 30, 2021 and 2020 were as follows:

Carrying amounts: Balance at January 1, 2021 Balance at June 30, 2021 Balance at January 1, 2020 Balance at June 30, 2020	Goodwill $ 808,420 $ 808,420 $ 808,420 $ 808,420	Software cost 67,381 109,943 72,354 51,471	Total
			875,801
			918,363
			880,774
			859,891

〜 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)

June 30, 2021 and 2020

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

For the six months ended June 30, 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 June 30, 2021, December 31, 2020, and June 30, 2020, the aforesaid intangible assets were not pledged as collateral.

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

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

Refundable deposits Prepayments to suppliers Restricted assets Payment on behalf of others Non-current assets held for sale Deferred tax assets Others	2021.6.30 $ 64,692 305,329 4,230,723 1,741,521 380,378 1,900,189 2,221,508 $ 10,844,340	2020.12.31 69,662 21,581 1,127,892 2,511,971 - 1,767,526 2,385,778 7,884,410	2020.6.30
			58,077 14,225 719,536 2,949,082 - 1,602,905 3,117,295
			8,461,120

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 June 30, 2021, December 31, 2020, and June 30, 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	2021.6.30 $ 4,029,649 8,057,205 2,659,751 5,269,305 343,332 $ 20,359,242	2020.12.31 3,255,201 5,452,614 3,027,071 4,916,698 445,585 17,097,169	2020.6.30
			2,329,891 5,111,272 3,274,061 4,143,990 401,087
			15,260,301

〜 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) June 30, 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 Total Current Non-current Total Unused credit line Secured bank loans Unsecured bank loans Total Current Non-current Total Unused credit line			2021.6.30	2021.6.30
	Interest Rate	Currency
	1.19%~5.23% 0.43%~4.30%
	Interest Rate	Currency	Maturity Date Amount 2031.02.26 $ 3,050,000 2024.02.14 544,825 2021.01.06~2021.05.31 9,320,106 2021.01.06~2022.10.14 28,293,818 2021.05.31 3,575 $ 41,212,324 $ 32,221,499 8,990,825 $ 41,212,324 $ 70,541,804	Amount
	1.19%~5.23% 0.48%~2.90%	TWD CNY TWD USD EUR

〜 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) June 30, 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			2020.6.30
	Interest Rate	Currency	Maturity Date Amount 2031.02.26 $ 3,200,000 2024.02.14 454,698 2020.08.27 592,600 2020.07.01~2021.05.31 6,904,370 2020.07.08~2021.06.04 47,789,457 2021.05.31 3,392 $ 58,944,517 $ 55,589,819 3,354,698 $ 58,944,517 $ 41,706,506
	1.19%~5.23% 0.64%~2.90%	TWD CNY USD TWD USD EUR

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

• 2.Important borrowing restrictions

The Group entered into syndicated credit agreement with a number of financial institutions. Under these agreements, the Group shall adhere to certain financial provisions such as current ratios, leverage ratios, interest coverage ratios and tangible net worth in the annual report on the balance sheet date. Otherwise, the borrowings will be considered due and payable immediately. As of June 30, 2021, December 31, 2020, and June 30, 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. On January 29, 2021, Inventec Solar Energy Corporation has applied again for claims and liabilities negotiation, requesting an extension of repayment period for its long-term and shortterm loans. The approval of more than half of the total creditor bank claims on June 7, 2021, was based on the bank meetings held on April 28, and May 18, 2021, resulting a half year extension. During the extension period due on November 30, 2021, the financial results 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%.

〜 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)

June 30, 2021 and 2020

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

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.

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	2021.6.30 $ 194,981 $ 644,606	2020.12.31 216,479 748,035	2020.6.30
			194,631
			812,151

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 Covid-19-related rent concessions (recognized as deduction of depreciation expenses)	For the three months ended June 30, 2021 2020 $ 6,726 8,003 $ 19,105 5,720 $ 3,614 8,836 $ 4,316 11,482 $ - 5,081	For the three months ended June 30, 2021 2020 $ 6,726 8,003 $ 19,105 5,720 $ 3,614 8,836 $ 4,316 11,482 $ - 5,081	For the three months ended June 30, 2021 2020 $ 6,726 8,003 $ 19,105 5,720 $ 3,614 8,836 $ 4,316 11,482 $ - 5,081	For the six months ended June 30, 2021 2020 13,782 13,761 28,165 28,042 6,800 19,761 14,437 14,607 - 5,081	For the six months ended June 30, 2021 2020 13,782 13,761 28,165 28,042 6,800 19,761 14,437 14,607 - 5,081
	2021			2021 13,782 28,165 6,800 14,437 -
	$ 6,726 $ 19,105 $ 3,614 $ 4,316 $ -				13,761 28,042 19,761 14,607 5,081

〜 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)

June 30, 2021 and 2020

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

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

The amounts recognized in the statement of cash flows for the	Group were as follows:	Group were as follows:
Total cash outflow for leases	For the six months ended June 30,
	2021 $ 161,338	2020
		175,606

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.

1. 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 six months ended June 30, 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.

〜 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) June 30, 2021 and 2020

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

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

Operating cost Selling expenses Administration expenses Research and development expenses	For the three months ended June 30, 2021 2020 $ 359 442 444 460 941 1,082 2,014 2,343 $ 3,758 4,327	For the six months ended June 30,	For the six months ended June 30,
	2021 $ 359 444 941 2,014 $ 3,758	2021 729 880 1,885 4,020 7,514	2020
			897 914 2,164 4,676
			8,651

2.Defined contribution plans

The pension costs incurred from the contributions to the Bureau of the Labor Insurance amounted to $64,315, $64,275, $128,868 and $128,209 for the three months and six months ended June 30, 2021 and 2020, respectively.

The pension expenses contributed by the foreign entities following the local regulations amounted to $205,253, $108,884, $394,685 and $335,814 for the three months and six months ended June 30, 2021 and 2020, respectively.

(q) Income taxes

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

1.The components of income tax expense (gain) for the three months and six months ended June 30, 2021 and 2020 were as follows:

Current tax expense Current period	For the three months ended June 30, 2021 2020 $ 202,307 553,039	For the six months ended June 30,	For the six months ended June 30,
	2021 $ 202,307	2021 530,389	2020
			2,783,537

For the six months ended June 30, 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.

〜 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)

June 30, 2021 and 2020

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

(r) Capital and reserves

Except for the following disclosure, there was no significant change for capital and other equity for the six months ended June 30, 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 accordance with Article 240 of the ROC Company Act, the Company authorizes the distribution of dividends and bonuses or its legal reserve and capital reserve, according to Article 241 of the ROC Company Act, in whole or in part may be paid in cash after a resolution has been adopted by a majority vote at a meeting of the Board of Directors attended by two-thirds of the total number of directors; then such distribution shall be submitted to the shareholder's meeting.

1) Legal reserve

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

2) Special reserve

In accordance with Permit No.1010012865 as issued by the Financial Supervisory Commission on 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

The Company has resolved the amount of cash dividends of the earning distribution of 2020 in the Board meeting held on March 30, 2021. The results of electronic voting on other earning distributions held on June 15, 2021, has reached the statutory threshold, and would be further resolved in the shareholder’ s meeting on July 22, 2021. On June 12, 2020, the earning distribution of 2019 were resolved in the shareholders' meeting. Earnings were appropriated for distribution as follows:

〜 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)

June 30, 2021 and 2020

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

Legal reserve Special reserve Dividends distributed to ordinary shareholders Cash	2020 Amount $ 747,132 $ 79,921 $ 6,636,829	2019
		Amount
		546,296
		175,647
		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 six months ended June 30, 2021. Please refer to Note 6(s) of the consolidated financial statements for the year ended December 31, 2020 for other related information.

(t) Earnings per share

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

For the three months ended June 30, 2021 2020 Basic earnings per share: Profit attributable to ordinary shareholders $ 1,132,599 1,659,446 Weighted average number of ordinary shares (thousand shares) 3,587,475 3,587,475 Basic earnings per share (NT dollars) $ 0.32 0.46 Diluted earnings per share: Profit attributable to ordinary shareholders of the Company (adjusted for the effects of all dilutive potential ordinary shares) $ 1,132,599 1,659,446	For the six months ended June 30,	For the six months ended June 30,
	2021 2,277,318 3,587,475 0.63 2,277,318	2020
		4,691,205
		3,587,475
		1.31
		4,691,205

〜 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)

June 30, 2021 and 2020

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

For the three months ended June 30, 2021 2020 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 3,106 5,656 Weighted average number of ordinary shares (adjusted for the effects of all dilutive potential ordinary shares) 3,590,581 3,593,131 Diluted earnings per share (NT dollars) $ 0.32 0.46	For the six months ended June 30,	For the six months ended June 30,
	2021 3,587,475 18,838 3,606,313 0.63	2020
		3,587,475 25,691
		3,613,166
		1.30

(u) Revenue from contracts with customers

1. Disaggregation of revenue

Primary geographical markets Taiwan USA Japan Hong Kong, Macao and Mainland China Other countries Major products Computer product Service Others	For the three	months ended June 30, 2021	months ended June 30, 2021
	Core $ 12,041,539 75,231,813 929,692 14,834,619 11,765,865 $ 114,803,528 $ 114,682,756 120,772 - $ 114,803,528	Others - - - - - - - - - -	Total
			12,041,539 75,231,813 929,692 14,834,619 11,765,865
			114,803,528
			114,682,756 120,772 -
			114,803,528

〜 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) June 30, 2021 and 2020

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

Primary geographical markets Taiwan USA Japan Hong Kong, Macao and Mainland China Other countries Major products Computer product Service Others Primary geographical markets Taiwan USA Japan Hong Kong, Macao and Mainland China Other countries Major products Computer product Service Others	For the three	months ended June 30, 2020	months ended June 30, 2020
	Core Others Total $ 7,253,418 179,318 7,432,736 104,520,399 19,768 104,540,167 3,293,439 - 3,293,439 19,049,648 61,624 19,111,272 14,380,183 - 14,380,183 $ 148,497,087 260,710 148,757,797 $ 148,361,496 - 148,361,496 135,591 - 135,591 - 260,710 260,710 $ 148,497,087 260,710 148,757,797 For the six months ended June 30, 2021		Total
			7,432,736 104,540,167 3,293,439 19,111,272 14,380,183
			148,757,797
			148,361,496 135,591 260,710
			148,757,797
		Others 297 11,115 - - - 11,412 - - 11,412 11,412	Total
			21,882,744 150,089,685 2,364,207 30,328,742 21,986,339
			226,651,717
			226,206,053 434,252 11,412
			226,651,717

〜 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) June 30, 2021 and 2020

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

Primary geographical markets Taiwan USA Japan Hong Kong, Macao and Mainland China Other countries Major products Computer product Service Others 2. Contract balances Notes and Accounts receivable (included related parties) Less: Loss allowance Total Contract liabilities	For the six months ended June 30, 2020 Core Others Total $ 8,561,760 598,521 9,160,281 165,580,355 74,405 165,654,760 5,806,406 - 5,806,406 29,831,747 230,145 30,061,892 26,753,568 - 26,753,568 $ 236,533,836 903,071 237,436,907 $ 236,267,581 - 236,267,581 266,255 - 266,255 - 903,071 903,071 $ 236,533,836 903,071 237,436,907 2021.6.30 2020.12.31 2020.6.30 $ 88,639,623 91,883,742 107,150,299 (93,550) (72,433) (114,264) $ 88,546,073 91,811,309 107,036,035 $ 7,198,525 7,828,232 6,937,818	For the six months ended June 30, 2020 Core Others Total $ 8,561,760 598,521 9,160,281 165,580,355 74,405 165,654,760 5,806,406 - 5,806,406 29,831,747 230,145 30,061,892 26,753,568 - 26,753,568 $ 236,533,836 903,071 237,436,907 $ 236,267,581 - 236,267,581 266,255 - 266,255 - 903,071 903,071 $ 236,533,836 903,071 237,436,907 2021.6.30 2020.12.31 2020.6.30 $ 88,639,623 91,883,742 107,150,299 (93,550) (72,433) (114,264) $ 88,546,073 91,811,309 107,036,035 $ 7,198,525 7,828,232 6,937,818
	Core $ 8,561,760 165,580,355 5,806,406 29,831,747 26,753,568 $ 236,533,836 $ 236,267,581 266,255 - $ 236,533,836 2021.6.30 $ 88,639,623 (93,550) $ 88,546,073 $ 7,198,525	Others 598,521 74,405 - 230,145 - 903,071 - - 903,071 903,071 2020.12.31 91,883,742 (72,433) 91,811,309 7,828,232

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

The amount of revenue recognized for the three months and six months ended June 30, 2021 and 2020 were $711,165, $536,371, $1,439,253 and $1,023,747, respectively.

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

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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT'D)

June 30, 2021 and 2020

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

• (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 $81,526, $142,493, $176,335 and $397,201 and the remuneration of directors amounted to $14,926, $26,087, $32,283 and $72,718 for the three months and six months ended June 30, 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 June 30, 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 June 30, For the six months ended June 30, 2021 2020 2021 2020 $ 288,351 290,700 $ 572,180 585,672	For the six months ended June 30,	For the six months ended June 30,
	2021 $ 288,351		2020
			585,672

2.Other income

The details of other income were as follows:

Rent income Dividend income	For the three months ended June 30, 2021 2020 $ 73,440 58,249 93,334 - $ 166,774 58,249	For the six months ended June 30,	For the six months ended June 30,
	2021 $ 73,440 93,334 $ 166,774	2021 137,150 93,334 230,484	2020
			130,472 -
			130,472

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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT'D)

June 30, 2021 and 2020

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

3.Other income and losses

The details of other income and losses were as follows:

For the three months ended June 30, 2021 2020 Foreign exchange losses $ (347,122) (377,574) (Losses) gains on disposal of investments - - Net gains (losses) on financial assets (liabilities) measured at fair value through profit or loss 195,205 324,632 (Losses) gains on disposal of property, plant and equipment (148,123) (150,947) Impairment loss on property, plant and equipment - (55,373) Other impairment losses - - Other 120,226 293,812 $ (179,814) 34,550

For the six months ended June 30, 2021 2020 (601,200) (640,660) (22,242) 24,435 634,895 312,194 (174,120) 4,740,058 - (55,373) (4,043) - 235,320 445,435 68,610 4,826,089

2021 (601,200) (22,242) 634,895 (174,120) - (4,043) 235,320 68,610

4.Finance costs

The details of finance expenses were as follows:

Interest expenses Bank borrowings Others	For the three months ended June 30, 2021 2020 $ 96,889 207,191 63,901 123,866 $ 160,790 331,057	For the six months ended June 30,	For the six months ended June 30,
	2021 $ 96,889 63,901 $ 160,790	2021 202,763 124,197 326,960	2020
			348,403 228,935
			577,338

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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT'D)

June 30, 2021 and 2020

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

(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:

June 30, 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 $ 3,751,260 45,508,495 78,017,627 16,302,357 839,587 153,443 - 22,215 - $ 144,594,984 $ 3,594,825 37,617,499 74,370,226 11,595,245 964,514 210,598 - 39,538 - $ 128,392,445	Contractual cash flows 3,995,508 45,690,285 78,017,627 16,302,357 919,835 (8,043,373) 7,889,930 (5,973,476) 5,951,261 144,749,954 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 189,396 34,123,497 78,017,627 16,302,357 109,053 (8,043,373) 7,889,930 (5,973,476) 5,951,261 128,566,272 182,167 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 188,477 391,316 - - 108,181 - - - - 687,974 181,354 29,234 - - 134,958 - - - - 345,546	1 to 2 years 460,652 11,175,472 - - 130,435 - - - - 11,766,559 447,247 5,741,352 - - 171,981 - - - - 6,360,580	2 to 5 years 1,717,416 - - - 347,943 - - - - 2,065,359 1,462,220 - - - 394,867 - - - - 1,857,087	More than 5 years
							1,439,567 - - - 224,223 - - - -
							1,663,790
							1,598,418 - - - 283,646 - - - -
							1,882,064

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(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)

June 30, 2021 and 2020

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

June 30, 2020 Non-derivative financial liabilities Secured bank loans Unsecured bank loans Accounts payable Other payables Lease liabilities Derivative financial liabilities Forward exchange contracts not used for hedging: Outflow Inflow Foreign exchange swap contracts not used for hedging: Outflow Inflow	Carrying amount $ 4,247,298 54,697,219 88,035,971 15,978,848 1,006,782 192,880 - 1,464 - $ 164,160,462	Contractual cash flows 4,540,565 54,853,917 88,035,971 15,978,848 1,120,274 (19,664,875) 19,471,995 (590,460) 588,996 164,335,231	Less than 6 months 774,313 51,400,648 88,035,971 15,978,848 113,372 (19,664,875) 19,471,995 (590,460) 588,996 156,108,808	6 to 12 months 179,787 3,453,269 - - 110,964 - - - - 3,744,020	1 to 2 years 398,815 - - - 167,209 - - - - 566,024	2 to 5 years 1,429,489 - - - 411,774 - - - - 1,841,263	More than 5 years
							1,758,161 - - - 316,955 - - - -
							2,075,116

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:

2021.6.30

		2021.6.30
Financial assets Monetary items USD CNY JPY Non-monetary items USD	Foreign currency (In thousand) $ 5,554,995 568,350 334,034 2,999,665 6,945 59,112	Exchange rate TWD USD：TWD 27.86 154,762,161 USD：CNY 6.46 15,834,231 USD：CZK 21.43 9,306,187 CNY：USD 0.15 12,928,556 JPY：TWD 0.25 1,736 USD：TWD 27.86 1,646,873

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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT'D) June 30, 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		2021.6.30
	Foreign currency (In thousand) 4,449,001 994,970 445,316 501,180	Exchange rate TWD USD：TWD 27.86 123,949,168 USD：CNY 6.46 27,719,864 USD：CZK 21.43 12,406,504 CNY：USD 0.15 2,160,086 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

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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT'D) June 30, 2021 and 2020

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

2020.6.30

		2020.6.30
Financial assets Monetary items USD CNY JPY Non-monetary items USD Financial Liabilities Monetary items USD CNY	Foreign currency (In thousand) $ 5,652,496 454,713 332,958 4,545,234 54,006 55,296 4,649,813 284,642 410,548 287,313	Exchange rate TWD USD：TWD 29.63 167,483,456 USD：CNY 7.08 13,473,146 USD：CZK 23.88 9,865,546 CNY：USD 0.14 19,023,276 JPY：TWD 0.27 14,582 USD：TWD 29.63 1,638,431 USD：TWD 29.63 137,773,959 USD：CNY 7.08 8,433,942 USD：CZK 23.88 12,164,537 CNY：USD 0.14 1,202,498

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 June 30, 2021 and 2020 would have increased or decreased the net profit after tax by $104,374 and $195,529, 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 six months ended June 30, 2021 and 2020, the foreign exchange loss, including realized and unrealized, amounted to $(601,200) and $(640,660), respectively.

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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT'D)

June 30, 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 :

Financial assets at fair value through profit or loss Derivative financial assets Non-derivative financial assets mandatorily measured at fair value through profit or loss Subtotal Financial assets at fair value through other comprehensive income Stocks of listed companies Unquoted equity instruments Subtotal Financial assets at amortized cost Cash and cash equivalents Accounts receivable and other receivables Subtotal Total			2021.6.30	2021.6.30
	Book Value $ 388,020 1,251,439 1,639,459 1,583,162 4,003,362 5,586,524 33,863,200 90,418,519 124,281,719 $ 131,507,702		Fair Value
		Level 1 - 218,368 218,368 1,583,162 - 1,583,162 - - - 1,801,530	Level 2 388,020 - 388,020 - 48,838 48,838 - - - 436,858	Level 3 - 1,033,071 1,033,071 - 3,954,524 3,954,524 - - - 4,987,595	Total 388,020 1,251,439
					1,639,459
					1,583,162 4,003,362
					5,586,524
					- -
					-
					7,225,983

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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT'D)

June 30, 2021 and 2020

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

Book Value Financial liabilities at fair value through profit or loss Derivative financial liabilities $ 175,658 Financial liabilities at amortized cost Bank loans 49,259,755 Accounts payable 78,017,627 Other payables 16,302,357 Lease liabilities 839,587 Subtotal 144,419,326 Total $ 144,594,984 Book Value Financial assets at fair value through profit or loss Derivative financial assets $ 251,174 Non-derivative financial assets mandatorily measured at fair value through profit or loss 1,442,770 Subtotal 1,693,944 Financial assets at fair value through other comprehensive income Stocks of listed companies 1,420,469 Unquoted equity instruments 3,643,028 Subtotal 5,063,497 Financial assets at amortized cost Cash and cash equivalents 32,951,595 Accounts receivable and other receivables 92,655,750 Subtotal 125,607,345 Total $ 132,364,786			2021.6.30	2021.6.30
			Fair Value
		Level 1 - - - - - - -	Level 2 175,658 - - - - - 175,658 2020.12.31	Level 3 - - - - - - -	Total 175,658
					- - - -
					-
					175,658
			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

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

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT'D)

June 30, 2021 and 2020

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

Book Value Financial liabilities at fair value through profit or loss Derivative financial liabilities $ 250,136 Financial liabilities at amortized cost Bank loans 41,212,324 Accounts payable 74,370,226 Other payables 11,595,245 Lease liabilities 964,514 Subtotal 128,142,309 Total $ 128,392,445 Book Value Financial assets at fair value through profit or loss Derivative financial assets $ 223,730 Non-derivative financial assets mandatorily measured at fair value through profit or loss 3,578,204 Subtotal 3,801,934 Financial assets at fair value through other comprehensive income Stocks of listed companies 1,214,743 Unquoted equity instruments 3,803,749 Subtotal 5,018,492 Financial assets at amortized cost Cash and cash equivalents 33,334,526 Accounts receivable and other receivables 107,507,406 Other financial assets and refundable deposit 777,613 Subtotal 141,619,545 Total $ 150,439,971			2020.12.31	2020.12.31
			Fair Value
		Level 1 - - - - - - -	Level 2 250,136 - - - - - 250,136 2020.6.30	Level 3 - - - - - - -	Total 250,136
					- - - -
					-
					250,136
			Fair Value
		Level 1 - 326,291 326,291 1,214,743 - 1,214,743 - - - - 1,541,034	Level 2 223,730 - 223,730 - 74,302 74,302 - - - - 298,032	Level 3 - 3,251,913 3,251,913 - 3,729,447 3,729,447 - - - - 6,981,360	Total 223,730 3,578,204
					3,801,934
					1,214,743 3,803,749
					5,018,492
					- - -
					-
					8,820,426

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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT'D)

June 30, 2021 and 2020

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

Book Value Financial liabilities at fair value through profit or loss Derivative financial liabilities $ 194,344 Financial liabilities at amortized cost Bank loans 58,944,517 Account payable 88,035,971 Other payable 15,978,848 Lease liabilities 1,006,782 Subtotal 163,966,118 Total $ 164,160,462			2020.6.30	2020.6.30
			Fair Value
		Level 1 - - - - - - -	Level 2 194,344 - - - - - 194,344	Level 3 - - - - - - -	Total 194,344
					- - - -
					-
					194,344

• 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 six months ended June 30, 2021.

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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT'D)

June 30, 2021 and 2020

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

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

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

Balance as of January 1, 2021 Total gains and losses recognized in Profit or loss Other comprehensive income Purchase Disposals Proceeds from capital reduction Effect of movements in exchange rate Balance as of June 30, 2021 Balance as of January 1, 2020 Total gains and losses recognized in Profit or loss Other comprehensive income Purchase Disposals Transfers out of Level 3 Effect of movements in exchange rate Balance as of June 30, 2020	At fair value through profit or loss $ 1,064,970 (7,109) - 32,250 (52,068) - (4,972) $ 1,033,071 $ 3,717,254 45,999 - 4,905,651 (5,204,859) (74,980) (137,152) $ 3,251,913	Fair value through other comprehensive income 3,567,207 - (344,223) 738,744 - (4,838) (2,366) 3,954,524 2,114,517 - 929,044 687,055 - - (1,169) 3,729,447

For the six months ended June 30, 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 six months ended June 30,
	2021 2020 $ (7,931) 2,033 (344,223) 929,044

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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT'D)

June 30, 2021 and 2020

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

• 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:

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 (2.79% on June 30, 2021 3.20% on December 31, 2020 2.90%~3.55% on June 30, 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 (30%~50%) ‧ 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:

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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT'D)

June 30, 2021 and 2020

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

June 30, 2021 Financial assets at fair value through profit or loss Financial instruments without an active market Financial assets at fair value through other comprehensive income Equity instruments without an active market December 31, 2020 Financial assets at fair value through profit or loss Financial instruments without an active market Financial assets at fair value through other comprehensive income Equity instruments without an active market June 30, 2020 Financial assets at fair value through profit or loss Financial instruments without an active market Financial assets at fair value through other comprehensive income Equity instruments without an active market	Input Discount Rate Market Multiple Discount Rate Market Multiple Discount Rate Market Multiple	Variation	Impact on Fair V Net incom	alue Change on e or loss Unfavorable Change (4,822) - (13,709) - (5,341) -	Impact on Fair Value Change on Other Comprehensive income or loss Favorable Change Unfavorable Change - - 20,741 (20,741) - - 17,790 (17,790) - - 15,637 (15,637)
			Favorable Change $ 4,822 - $ 13,709 - $ 5,341 -
		0.5% 0.5% 0.5% 0.5% 0.5% 0.5%

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

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.

〜 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)

June 30, 2021 and 2020

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

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

2021.6.30

	2021.6.30	2021.6.30	2021.6.30	2021.6.30	2021.6.30	2021.6.30
Offsetting agreement Derivative financial instruments Total Derivative financial instruments Offsetting agreement Derivative financial instruments Total	Financial assets that are offset which have an exercisable master netting arrangement or similar agreement
	Gross amounts of recognized financial assets (a) $ 433,174,132 334,893 $ 433,509,025		Gross amounts of financial liabilities offset in the balance sheet (b) 432,791,046 - 432,791,046	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 383,086 - - 334,893 - - 717,979 - - 2021.6.30		Net amount (e)=(c)-(d)
						383,086 334,893
						717,979
		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 70,047 - - 2020.12.31		Net amount (e)=(c)-(d)
						70,047
		Financial assets that are offset which have an exercisable master netting arrangement or similar agreement
			Gross amounts of financial liabilities offset in the balance sheet (b) 389,593,639 - 389,593,639	Net amount of financial assets presented in the balance sheet (c)=(a)-(b) 446,035 72,194 518,229	Amounts not off set in the balance sheet (d) Financial instruments (Note) Cash collateral received - - - - - -	Net amount (e)=(c)-(d)
					Financial instruments (Note) - - -
						446,035 72,194
						518,229

Derivative financial instruments			2020.12.31	2020.12.31	2020.12.31
	Financial liabilities that are		offset which have an exercisable master netting arrangement or similar agreement
	Gross amounts of recognized financial liabilities (a) $ 182,068	Gross amounts of financial assets offset in the balance sheet (b) -	Net amount of financial liabilities presented in the balance sheet (c)=(a)-(b) 182,068	Amounts not off set in the balance sheet (d) Financial instruments (Note) Cash collateral received - -	Net amount (e)=(c)-(d)
				Financial instruments (Note) -
					182,068

〜 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)

June 30, 2021 and 2020

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

Offsetting agreement Derivative financial instruments Total Derivative financial instruments	2020.6.30	2020.6.30	2020.6.30	2020.6.30	2020.6.30	2020.6.30
	Financial assets that are offset which have an exercisable master netting arrangement or similar agreement
	Gross amounts of recognized financial assets (a) $ 402,956,219 67,423 $ 403,023,642		Gross amounts of financial liabilities offset in the balance sheet (b) 402,603,085 - 402,603,085	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 353,134 - - 67,423 - - 420,557 - - 2020.6.30		Net amount (e)=(c)-(d)
						353,134 67,423
						420,557
		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) 194,344	Amounts not off set in the balance sheet (d) Financial instruments (Note) Cash collateral received - -	Net amount (e)=(c)-(d)
					Financial instruments (Note) -
						194,344

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 six months ended June 30, 2021 and 2020, were as follows:

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

〜 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) June 30, 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 5,740,864 2,479,987 (98,154) 8,122,697 Cash flows 12,680,825 17,430,348 (99,435) 30,011,738	Non-cash changes Reclassification Foreign exchange movement (150,000) 13,571 150,000 (186,991) 9,369 (36,142) 9,369 (209,562) Non-cash changes Reclassification Foreign exchange movement (13,068,680) (140,581) 13,068,680 (434,788) (108,547) 37,684 (108,547) (537,685)	June 30, 2021
				14,595,260 34,664,495 839,587
				50,099,342
				June 30, 2020
			Reclassification (13,068,680) 13,068,680 (108,547) (108,547)
				3,354,698 55,589,819 1,006,782
				59,951,299

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

〜 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)

June 30, 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:

Associates Other related parties	For the three months ended June 30, 2021 2020 $ 30,498 890 22 176 $ 30,520 1,066	For the six months ended June 30,	For the six months ended June 30,
	2021 $ 30,498 22 $ 30,520	2021 58,571 41 58,612	2020
			1,246 275
			1,521

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 June 30, 2021 2020 $ 263 4,424	For the six months ended June 30,
	2021 $ 263	2021 811	2020
			5,451

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	2021.6.30 $ 59,556 - - $ 59,556	2020.12.31 75,749 - 66 75,815	2020.6.30
Accounts receivable Other receivables	Associates Other related parties Associates			88 65 -
				153

〜 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)

June 30, 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	2021.6.30 $ 265 562 300,000 $ 300,827	2020.12.31 678 1,046 300,000 301,724	2020.6.30
Accounts payable Other payables 〞	Associates Associates Other related parties			4,549 697 300,000
				305,246

As of June 30, 2021, December 31, 2020, and June 30, 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 and six months ended June 30, 2021 and 2020, the Group purchased equipment, intangible assets and other assets from Inventec Besta Co., Ltd. and paid the amount of $686, $3,740, $686 and $4,216, respectively.

6.Others

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

For the three months ended June 30, 2021 2020 Associates $ 537 766 Donations for other related parties were as follows: For the three months ended June 30, 2021 2020 Other related parties $ - -	For the six months ended June 30,	For the six months ended June 30,
	2021 2020 3,559 2,540 For the six months ended June 30,	2020
		2,540
	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 June 30, 2021 2020 $ 947 438	For the six months ended June 30,	For the six months ended June 30,
	2021 $ 947	2021 1,568	2020
			1,797

〜 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)

June 30, 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 June 30, 2021 2020 $ 103,810 116,147 1,240 921 $ 105,050 117,068	For the six months ended June 30,	For the six months ended June 30,
	2021 $ 103,810 1,240 $ 105,050	2021 210,047 2,180 212,227	2020
			254,208 1,868
			256,076

(8) Pledged Assets

The carrying values of pledged assets were as follows:

Pledged assets	Object	2021.6.30 $ 64,692 4,230,723 8,642,640 $ 12,938,055	2020.12.31 69,662 1,127,892 8,438,458 9,636,012	2020.6.30
Refundable deposits (Other non-current assets) Restricted cash in banks (Other current assets and Other non-current assets) Land, buildings, structures, machinery and equipment, net (Property, plant and equipment 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			58,077 719,536 8,295,370
				9,072,983

(9) Significant Commitments and Contingencies

• (a) Major Commitments:

• 1.Unused standby letters of credit were as follows:

EUR USD TWD	2021.6.30 $ 176 - -	2020.12.31 2020.6.30 360 298 56 9,213 25,345 25,345

〜 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)

June 30, 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	2021.6.30 $ 21,827,759 1,781,400	2020.12.31 2020.6.30 21,940,262 22,241,273 1,776,400 1,482,400

• (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 June 30, 2021	For the three months ended June 30, 2021	For the three months ended June 30, 2021	For the three months ended June 30, 2020	For the three months ended June 30, 2020	For the three months ended June 30, 2020
	Operating costs	Operating and non-operating expense	Total	Operating costs	Operating and non-operating expense	Total
Employee benefits Salary Labor and health insurance Pension Others Depreciation Amortization	1,943,847 181,607 140,424 130,904 393,809 49,701	2,148,871 193,315 132,902 76,046 203,758 195,450	4,092,718 374,922 273,326 206,950 597,567 245,151	2,153,117 154,276 93,730 96,297 493,289 52,288	2,121,289 145,059 83,756 64,908 241,661 156,952	4,274,406 299,335 177,486 161,205 734,950 209,240
By function By item	For the six months ended June 30, 2021			For the six months ended June 30, 2020
	Operating costs	Operating and non-operating expense	Total	Operating costs	Operating and non-operating expense	Total
Employee benefits Salary Labor and health insurance Pension Others Depreciation Amortization	3,821,838 366,038 278,173 245,112 776,274 99,668	4,307,650 405,179 252,894 141,788 416,130 389,009	8,129,488 771,217 531,067 386,900 1,192,404 488,677	4,808,473 382,943 283,193 225,457 993,477 111,054	4,350,800 334,807 189,481 118,331 516,962 309,418	9,159,273 717,750 472,674 343,788 1,510,439 420,472

〜 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)

June 30, 2021 and 2020

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

(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 six month ended June 30, 2021:

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	Coll	ateral	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	83,353 259,140 800,000 87,740 2,764,160	60,382 129,390 800,000 - 1,380,160	47,443 129,390 321,350 - 1,380,160	3.045% 3.045% 1.95% - 5.225%	2 2 2 2 2	- - - - -	Working Capital 〞 〞 〞 〞	- - - - -	None 〞 〞 〞 〞	- - - - -	343,822 1,771,832 1,516,119 4,126,672 1,650,669	343,822 1,771,832 3,032,237 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.

〜 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) June 30, 2021 and 2020

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

1. Guarantees and endorsements for other parties:

(In Thousands of New Taiwan Dollars)

No.	Name of guarantor	Counter-party of guarantee and endorsement	Counter-party of guarantee and endorsement	Limitation on amount of guarantees and endorsements for a specific enterprise	Highest balance for guarantees and endorsement during the period	s Balance of guarantees and endorsements as of reporting date	Actual usage amount during the period	Property pledged for guarantees and endorsements (Amount)	Ratio of accumulated amounts of guarantees and endorsements to net worth of the latest financialstatements	Maximum amount for guarantees and endorsements	Parent company endorsements /guarantees to third parties on behalf of subsidiary	Subsidiary endorsements/ guarantees to third parties on behalf of parent company	Endorsement s/guarantees to third parties on behalf of companies in Mainland China
		Name	Relationshi p with the Company
1	Inventec Appliances Corp.	Inventec Appliances (Jiangning) Corp.	2	3,790,297	1,164,141	1,136,806	-	-	% 15.00	3,790,297	N	N	N

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

• 2.Subsidiaries in which the Company holds more than 50 percent of its voting power.

• 3.A investee in which the Company and subsidiary holds more than 50 percent of its voting shares.

• 4.Subsidiaries in which the Company holds more than 90 percent of its voting power.

• 5.Companies in accordance with contractual provisions established by mutual applicants or in need of project.

• 6.Companies that are endorsed and guaranteed by all capital shareholders based on their shareholding ratio due to a joint investment relationship.

• 7.The performance of pre-sale house sales contract between intra-industry companies is in accordance with the Consumer Protection Law required joint guarantees.

Note 2: Both the aggregate amount of endorsements/guarantees and the amount of endorsements/guarantees for a single enterprise by Inventec Appliance Corp. cannot 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.

1. 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.	- - - - - - -	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	242 14,476 48,838 1,523,507 241 - 11,757	% 1.52 % 0.05 % 10.15 % 0.96 % 0.20 % 6.67 % 16.00	242 14,476 48,838 1,523,507 241 - 11,757

〜 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)

June 30, 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 Electronics (Tianjin) Co., Ltd.	Rasilient Systems, Inc. preference share SKSpruce Holding Limited preferred stock CloudMosa Technologies, Inc. preferred stock QEEXO, Co. preferred stock Rescale, Inc. preferred stock Sensel, Inc. preferred stock ASOCS LTD. preferred stock ZT Group Int'l, Inc. SKSpruce Holding Limited convertible short- term note Empass Technology Entire Technology Co., Ltd. E-TON Solar Tech. Co., Ltd Imedtac Co., Ltd. TMY Technology Inc. Enflex Corporation Chainwin Biotech and Agrotech (Cayman Islands) Co., Ltd. Testron Technology (JiangSu) Co., Ltd. Hunan Titanium Xpower Integrated Circuits Co., LTD. Shanghai Starfive Technology Co., Ltd. Guangdong StarFive Technology Co., Ltd. Kunshan Joing Technology Co., Ltd. ICBC Wealth Management Corporation Tian Libao No. 2 Net Worth Management Product	- - - - - - - - - - - - - - - - - - - - - -	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 〞	3,632 3,746 235 568 355 532 360 70 - 450 3,260 94,889 1,200 2,857 750 30,000 2,778 417 17 522 5,948	- 49,866 - 18,037 14,083 4,953 1,843 1,850,364 19,604 17,654 149,243 452,619 61,404 60,686 17,864 1,585,643 68,140 43,126 2,758 83,495 205,202 107,815	% 6.20 % 3.72 % 2.95 % 3.09 % 1.29 % 3.37 % 1.44 % 10.00 % - % 6.75 % 4.50 % 29.70 % 9.42 % 8.00 % 0.99 % 13.17 % 10.00 % 4.00 % 0.73 % 0.73 % 2.96 %	- 49,866 - 18,037 14,083 4,953 1,843 1,850,364 19,604 17,654 149,243 452,619 61,404 60,686 17,864 1,585,643 68,140 43,126 2,758 83,495 205,202 107,815

〜 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)

June 30, 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 Development Japan Corporation Inventec Investments Co., Ltd. 〞 〞 〞 〞 Inventec Appliances Corp. 〞 〞 〞 〞 〞 〞 〞 〞 〞 〞 〞	Famm Co., Ltd. ENNOSTAR Inc. UCFUNNEL CO LTD Sagacity Tech. Co., Ltd. Living Pattern Technology Inc. E-TON Solar Tech. Co., Ltd SCOPE INDUSTRIES BERHAD Rong Cheng Tech. Co., Ltd. Tai Yi Precision Corporation 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	- - - - - - - - - - - - - - - - - -	Non-current financial assets at fair value through other comprehensive income Current financial assets at fair value through profit or loss Non-current financial assets at fair value through other comprehensive income 〞 〞 Non-current financial assets at fair value through profit or loss Non-current financial assets at fair value through other comprehensive income 〞 〞 〞 〞 〞 〞 〞 〞 〞 〞 Non-current financial assets at fair value through profit or loss	100 881 83 79 4 15,813 32,000 1,950 635 461 100 93 939 314 594 1,603 2,974 -	8,442 69,125 10,756 172 526 75,428 45,179 - - - 1,000 - - - - 152,800 46,280 14,795	% 16.00 % 0.13 % 5.00 % 15.00 % 13.70 % 4.95 % 4.16 % 9.38 % 1.67 % 0.15 % 11.76 % 0.12 % 4.80 % 2.88 % 5.30 % 0.02 % 4.53 % -	8,442 69,125 10,756 172 526 75,428 45,179 - - - 1,000 - - - - 152,800 46,280 14,795

〜 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)

June 30, 2021 and 2020

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

Name of holder	Category and name of security	Relationship with company	Account title	Ending balance	Ending balance	Ending balance	Ending balance	Note
				Shares/Units (thousands)	Carrying value	Percentage of ownership (%)	Fair value (Note1)
Inventec Appliances (Cayman) Holding Corp. 〞 〞	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 〞 〞	99 1,250 446	- - -	% 0.03 % 2.36 % 2.08	- - -

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.

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

(Amounts Expressed in Thousands of New Taiwan Dollars)

Name of company	Category and name of security (Note 1)	Account name (Note 1)	Name of counter-party	Relationship with the company	Beginnin	g Balance	Pur	chases		Sa	les		Ending	Balance
					Shares	Amount	Shares	Amount	Shares	Price	Cost	Gain (loss) on disposal	Shares	Amount
Inventec (Cayman) Corp.	Chainwin Biotech and Agrotech (Cayman Islands) Co., Ltd. common shares	Non-current financial assets at fair value through other comprehensive income	Cash Capital Increase	Non-related barties	20,000	1,175,931	10,000	409,712	-	-	-	-	30,000	1,585,643

Note 1: The amounts above are valued at exchange rate. Note 2: The transactions in foreign currencies were exchanged to New Taiwan Dollars in spot rate at the date of the audited entity's financial reports.

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

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

(Amounts Expressed in Thousands of New Taiwan Dollars)

Name of company	Types of property	Transaction Date	Original Acquisition Date	Book value	Transaction amount (Note 1)	Receipt Terms	Gain (loss) on disposal	Counter-party	Relationship	Purpose o disposal	f Price reference	Other terms
Inventec (pudong) Technology Corp. Inventec (pudong) Co., Ltd.	Land and Building Land and Building	2021.04.27 2021.04.27	2006 2006	327,952 52,426	1,482,932 759,634	50% 50%	The transfer has not been completed "	Shanghai Chengye apartment Management Co., Ltd Shanghai Tiantang apartment Management Co., Ltd	Non-related parties Non-related parties	Optimize assets Optimize assets	Negotiated based on the valuation report with the amount of RMB318,576 and RMB311,780 Negotiated based on the valuation report with the amount of RMB167,148 and RMB158,520	None None

Note 1: The price has been included tax, and the transfer has not been completed.

〜 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)

June 30, 2021 and 2020

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

1. 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 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. Inventec (Czech), s.r.o. The Company The Company Inventec Holding (North America) Corp. Inventec Holding (North America) Corp. The Company Inventec (Pudong) Technology Corp. SQ Technology (Shanghai) Corporation Inventec (Chongqing) Corp. Inventec Corporation (Hong Kong) Ltd. Inventec (Shanghai) Corp. SQ Technology (Shanghai) Corporation	Subsidiary 〞 〞 〞 〞 Parent Associates 〞 〞 〞 〞 〞 〞 Parent Associates 〞 〞 〞 〞 〞	Sales Sales Purchases Purchases Purchases Purchases Sales Sales Purchases Purchases Sales Purchases Sales Sales Purchases Purchases Purchases Sales Sales Sales	32,874,941 12,375,764 141,824,627 233,610 263,377 32,874,941 261,099 244,573 122,774 12,375,764 263,377 244,573 122,774 141,824,627 12,993,834 5,884,934 122,945,859 12,993,834 8,919,603 10,788,040	% 17.41 % 6.55 % 75.67 % 0.12 % 0.14 % 90.30 % 0.76 % 0.71 % 0.34 % 94.60 % 2.04 % 1.98 % 0.95 % 100.00 % 9.16 % 4.15 % 86.69 % 38.18 % 26.21 % 31.70	105 days 105 days 90-105 days 90 days 105 days 105 days 105 days 105 days 105 days 105 days 105 days 105 days 105 days 90-105 days 105 days 105 days 90 days 105 days 105 days 105 days	- - - - - - - - - - - - - - - - - - - -	No general trading partner can be compared. 〞 〞 〞 〞 〞 〞 〞 〞 〞 〞 〞 〞 〞 〞 〞 〞 〞 〞 〞	23,333,130 12,203,257 (37,271,448) (131,765) (32,451) (23,333,130) 573 82,852 (32,192) (12,203,257) 32,451 (82,852) 32,192 37,271,448 (8,495,047) (5,365,273) (23,411,128) 8,495,047 838,264 7,820,830	% 26.02 % 13.61 % 43.41 % 0.15 % 0.04 % 97.26 % 0.01 % 0.84 % 0.13 % 98.10 % 0.37 % 0.67 % 0.37 % 43.48 % 9.91 % 6.26 % 27.31 % 48.04 % 4.74 % 44.23

〜 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)

June 30, 2021 and 2020

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

Name of company	Related party	Nature of relationship		Transacti	on details		Trans diffe	actions with terms rent from others	Notes/Accounts r	eceivable (payable)	Note
			Purchase/ Sale	Amount	Percentage of total purchases/sale	Payment terms	Unit price	Payment terms	Ending balance	Percentage of total notes/accounts receivable (payable)
Inventec (Pudong) Technology Corp. Inventec (Shanghai) Corp. 〞 Inventec (Chongqing) Corp. SQ Technology (Shanghai) Corporation 〞 〞 Inventec Appliances Corp. 〞 〞 〞 Inventec Appliances (USA) Distribution Corp. Inventec Appliances (Pudong) Corp. 〞 Inventec Appliances (Nanjing) Co. Ltd. Inventec Appliances (Jiangning) Corp. 〞 〞	Inventec Holding (North America) Corp. Inventec (Pudong) Technology Corp. SQ Technology (Shanghai) Corporation Inventec Corporation (Hong Kong) Ltd. Inventec Corporation (Hong Kong) Ltd. Inventec (Shanghai) Corp. Inventec (Pudong) Technology Corp. Inventec Appliances (Pudong) Corp. Inventec Appliances (Jiangning) Corp. Inventec Appliances (Nanchang) Intelligent Manufacturing Co., Ltd. Inventec Appliances (USA) Distribution Corp. Inventec Appliances Corp. Inventec Appliances Corp. Inventec Appliances (Nanchang) Intelligent Manufacturing Co., Ltd. Inventec Appliances (Jiangning) Corp. Inventec Appliances Corp. The Company Inventec Appliances (Nanjing) Co. Ltd.	Associates 〞 〞 〞 〞 〞 〞 〞 〞 〞 〞 〞 〞 〞 〞 〞 Parent Associates	Purchases Purchases Purchases Sales Sales Sales Purchases Purchases Purchases Purchases Sales Purchases Sales Sales Sales Sales Sales Purchases	261,099 8,919,603 4,291,530 122,945,859 5,884,934 4,291,530 10,788,040 9,169,602 698,183 415,081 564,535 564,535 9,169,602 304,438 118,469 698,183 233,610 118,469	% 0.99 % 67.52 % 32.48 % 99.74 % 33.08 % 24.13 % 32.44 % 72.39 % 5.51 % 3.28 % 4.65 % 100.00 % 95.71 % 3.22 % 100.00 % 32.52 % 10.79 % 10.03	105 days 105 days 105 days 90 days 105 days 105 days 105 days 1-2 months 〞 〞 〞 〞 〞 〞 30 days 1-2 months 90 days 30 days	- - - - - - - - - - - - - - - - - -	No general trading partner can be compared. 〞 〞 〞 〞 〞 〞 〞 〞 〞 〞 〞 〞 〞 〞 〞 〞 〞	(573) (838,264) (4,798,627) 23,411,128 5,365,273 4,798,627 (7,820,830) (6,580,108) (301,225) (235,693) 199,259 (199,259) 6,580,108 341,658 60,012 301,225 131,765 (60,012)	% - % 14.67 % 83.95 % 99.51 % 36.65 % 32.78 % 33.36 % 81.56 % 3.73 % 2.92 % 3.65 % 100.00 % 94.77 % 4.92 % 100.00 % 29.36 % 12.84 % 13.88

〜 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)

June 30, 2021 and 2020

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

Name of company	Related party	Nature of relationship	Transaction details	Transaction details	Transaction details	Transaction details	Trans diffe	actions with terms rent from others	Notes/Accounts receivable (payable)	Notes/Accounts receivable (payable)	Note
			Purchase/ Sale	Amount	Percentage of total purchases/sale	Payment terms	Unit price	Payment terms	Ending balance	Percentage of total notes/accounts receivable (payable)
Inventec Appliances (Nanchang) Intelligent Manufacturing Co., Ltd. 〞	Inventec Appliances Corp. Inventec Appliances (Pudong) Corp.	Associates 〞	Sales Purchases	415,081 304,438	% 99.37 % 76.04	60 days 1-2 months	- -	No general trading partner can be compared. 〞	235,693 (341,658)	% 91.01 % 99.89

Note 1: Based on the negotiated price while trading.

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

1. 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 Corporation (Hong Kong) Ltd. 〞 〞 〞 Inventec (Pudong) Technology Corp. 〞 〞 Inventec (Chongqing) Corp. SQ Technology (Shanghai) Corporation 〞 Inventec Appliances Corp. Inventec Appliences (Pudong) Corp.	Inventec Holding (North America) Corp. Inventec (Czech), s.r.o. Inventec Corporation (Hong Kong) Ltd. (Note) The Company Inventec (Pudong) Technology Corp. (Note) SQ Technology (Shanghai) Corporation Inventec (Chongqing) Corp. (Note) Inventec Corporation (Hong Kong) Ltd. Inventec (Shanghai) Corp. SQ Technology (Shanghai) Corporation Inventec Corporation (Hong Kong) Ltd. Inventec Corporation (Hong Kong) Ltd. Inventec (Shanghai) Corp. Inventec Appliances (USA) Distribution Corp. Inventec Appliances Corp.	Subsidiary Subsidiary Subsidiary Parent Associates Associates Associates Associates Associates Associates Associates Associates Associates Subsidiary Associates	23,333,130 12,203,257 48,432,697 37,271,448 13,643,910 12,829,522 21,959,265 8,495,047 838,264 7,820,830 23,411,128 5,365,273 4,798,627 199,259 6,580,108	3.29 2.14 - 6.73 - - - 3.09 3.04 5.52 7.91 4.39 3.58 8.19 2.35	2,008,277 3,860,425 9,979,280 1,723,313 9,970,015 - 9,265 1,723,313 1,232 - - - - - -	Received in the subsequent period Received in the subsequent period Received in the subsequent period Received in the subsequent period Intensive follow-up on collection Received in the subsequent period Received in the subsequent period Received in the subsequent period	4,957,861 2,442,329 24,665,960 13,618,616 12,679,029 - 11,986,932 3,705,380 815,982 517,515 9,913,236 - 991,904 47,241 1,144,221	- - - - - - - - - - - - - - -

〜 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)

June 30, 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 Appliences (Pudong) Corp. Inventec Appliances (Jiangning) Corp. 〞 Inventec Appliances (Nanchang) Intelligent Manufacturing Co., Ltd.	Inventec Appliances (Nanchang) Intelligent Manufacturing Co., Ltd. Inventec Appliances Corp. The Company Inventec Appliances Corp.	Associates Associates Associates Associates	341,658 301,225 131,765 235,693	1.70 5.01 4.17 4.27	- - - -		94,504 130,905 41,290 40,123	- - - -

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.

1. Trading in derivative instruments: Please refer to notes (6)(b) and (6)(x).

2. Business relationships and significant inter-company transactions:

No.	Name of company	Name of counter party	Existing relationship with the counter- party		Tr	ansactions
				Account name	Amount	Terms of trading	Percentage of the consolidated total revenue or total assets
0 1 2	Inventec Corporation 〞 〞 〞 〞 〞 〞 Inventec Corporation (Hong Kong) Ltd. 〞 〞 〞 〞 〞 〞 〞 〞 Inventec (Pudong) Technology Corp. 〞 〞 〞	Inventec Holding (North America) Corp. 〞 Inventec (Czech), s.r.o. 〞 Inventec Corporation (Hong Kong) Ltd. 〞 〞 Inventec (Pudong) Technology Corp. 〞 〞 SQ Technology (Shanghai) Corporation 〞 〞 Inventec (Chongqing) Corp. 〞 〞 Inventec (Shanghai) Co., Ltd. 〞 SQ Technology (Shanghai) Corporation 〞	1 1 1 1 1 1 1 3 3 3 3 3 3 3 3 3 3 3 3 3	Sales Accounts Receivable Sales Accounts Receivable Purchases Other Receivables Accounts Payable Purchases Accounts Payable Accounts Receivable Purchases Accounts Payable Accounts Receivable Purchases Accounts Payable Accounts Receivable Sales Accounts Receivable Sales Accounts Receivable	32,874,941 23,333,130 12,375,764 12,203,257 141,824,627 48,432,697 37,271,448 12,993,834 8,495,047 13,643,910 5,884,934 5,365,273 7,820,830 122,945,859 23,411,128 21,959,265 8,919,603 838,264 10,788,040 7,820,830	Negotiated price 105 days Negotiated price 105 days Negotiated price 90-105 days 90-105 days Negotiated price 105 days 〞 Negotiated price 105 days 〞 Negotiated price 90 days 〞 Negotiated price 105 days Negotiated price 105 days	% 15 % 10 % 5 % 5 % 63 % 21 % 16 % 6 % 4 % 6 % 3 % 2 % 3 % 54 % 10 % 10 % 4 % - % 5 % 3

〜 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)

June 30, 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
3 4	SQ Technology (Shanghai) Corporation I 〞 Inventec Appliances Corp. I ( 〞	nventec (Shanghai) Co., Ltd. 〞 nventec Appliances Pudong) Corp. 〞	3 3 3 3	Sales Accounts Receivable Purchases Accounts Payable	4,291,530 4,798,627 9,169,602 6,580,108	Negotiated price 105 days Negotiated price 1-2 months	% 2 % 2 % 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 six months ended June 30, 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 June 30, 2	021	Net income (loss) of the investee	Share of profits/losses of investee	Note
				June 30, 2021	June 30, 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.	Taipei Hong Kong USA New Taipei City Cayman Cayman Czech Taipei	Electronic dictionary Trading Holding Company Intelligent device products Holding Company Holding Company Production and sales of computer products Investment Company	420,347 167,162 159,003 9,656,877 9,812,963 739,500 85,921 1,000,000	420,347 167,162 159,003 9,656,877 9,812,963 739,500 85,921 1,000,000	23,405 2,500 5,000 536,857 301,768 25,000 - 108,800	% 37.53 % 100.00 % 100.00 % 100.00 % 100.00 % 100.00 % 100.00 % 100.00	276,002 368,782 1,278,091 8,350,048 21,884,503 1,257,502 130,339 106,828	168,541 8,164 24,365 13,121 1,266,603 100,076 18,647 (19,269)	63,250 8,164 24,365 13,121 1,266,603 100,076 18,647 (19,269)	Investment accounted for using equity method Subsidiary 〞 〞 〞 〞 〞 〞

〜 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)

June 30, 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	Balan	ce as of June 30, 2	021	Net income (loss) of the investee	Share of profits/losses of investee	Note
				June 30, 2021	June 30, 2020	Shares/Units (In thousands)	Percentage of ownership	Carrying value
The Company 〞 〞 〞 〞 Inventec Investment Co., Ltd. 〞 Inventec Appliances Corp. 〞 〞 〞 Inventec Appliances (Cayman) Holding Corp. 〞 Inventec Appliences (Pudong) Corp.	Inventec Solar Energy Corporation Inventec Development Japan Corporation Inventec Japan Corporation AIMobile Co., Ltd. Inventec Manufacturing (India) Private Limited Inventec Solar Energy Corporation Inventec Manufacturing (India) Private Limited Inventec Appliances (Cayman) Holding Corp. Gainia Intellectual Asset Services, Inc. Good Future Biomedical Technology Corp. Inventec Solar Energy Corporation Inventec Appliances (USA) Distribution Corp. Inventec Appliances Corporation USA, Inc. Inventec Appliances (Malaysia) SDN. BHD.	Taoyuan Japan Japan Taipei India Taoyuan India Cayman Taipei Taoyuan Taoyuan USA 〞 Malaysia	Sales of solar cells and medical equipment Trading 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	1,087,800 630,845 2,954 182,500 281,691 150,000 28 5,560,149 6,400 23,712 311,160 22,288 1,393 476,410	1,087,800 630,845 2,954 182,500 281,691 150,000 28 5,560,149 6,400 23,712 311,160 22,288 1,393 476,410	108,150 45 - 18,250 55,994 15,000 6 199,575 205 9,120 30,930 400 10 71,000	% 33.45 % 100.00 % 100.00 % 73.00 % 99.99 % 4.64 % 0.01 % 100.00 % 38.90 % 30.00 % 9.57 % 100.00 % 100.00 % 100.00	(403,550) 15,800 3,237 104,057 10,316 (59,949) 1 15,840,130 155 23,396 (123,614) 91,133 13,162 404,066	(331,565) (449) 326 (24,964) (474) (331,565) (474) (489,273) (3,027) (1,922) (331,565) 468 445 (55,029)	(107,346) (449) 326 (18,225) 82 - - - - - - - - -	Subsidiary 〞 〞 〞 〞 Associate Company 〞 〞 Investment accounted for using 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.

〜 63 〜

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

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

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT'D)

June 30, 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 June 30, 2021	Net income (losses) of the investee	Percentage of ownership	Investment income (losses) (Note 2)	Book value	Accumulated remittance of earnings in current period (Note 6)
					Out-flow	Inflow
Inventec (Shanghai) Service Co., Ltd Inventec (ChongQing) Service Co., Ltd Inventec (Pudong) Co., Ltd. Inventec (Shanghai) Co., Ltd. Inventec (ChongQing) Corporation Inventec (Pudong) Technology Corp. Inventec Electronics (Tianjin) Co., Ltd. Inventec (Beijing) Electronics Technology Co., Ltd. Inventec Hi-Tech Corporation Inventec Asset- Management(Shangh ai)Corporation Saint Investment consulting corporation SQ Technology (Shanghai) Corporation Inventec Appliances (Shanghai) Co., Ltd. Inventec Appliences (Pudong) Corp. Inventec Appliances (Jiangning) Corp. Inventec Appliances (Nanjing) 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	315,800 27,860 1,393,000 2,062,166 2,089,500 1,632,365 139,300 40,397 1,393,000 1,846,677 215,630 215,630 1,437,576 2,145,220 1,894,480 139,300	(2) (2) (2) (2) (2) (2) (2) (2) (2) (3) (3) (3) (2) (2) (2) (2)	55,720 27,860 1,393,000 821,870 2,089,500 1,393,000 118,405 40,397 1,393,000 - - - 1,340,568 2,145,220 1,170,120 250,224	- - - - - - - - - - - - - - - -	- - - - - - - - - - - - - - - -	55,720 27,860 1,393,000 821,870 2,089,500 1,393,000 118,405 40,397 1,393,000 - - - 1,340,568 2,145,220 1,170,120 250,224	(346) (197) 32,416 22,254 906,864 625,009 2,007 (45) (18,088) (10,414) 114 61,369 (54,106) (220,015) 189,171 6,877	% 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	(346) (197) 32,416 22,254 906,864 548,518 2,007 (45) (18,088) (8,123) 114 61,369 (54,106) (611,867) 189,171 6,877	250,768 39,368 4,109,547 1,859,005 7,978,967 7,012,645 229,805 76,388 1,106,804 1,349,886 215,778 276,627 1,696,869 8,120,145 5,416,167 385,511	30,234 - - - 2,242,107 321,599 149,517 - - - - - 1,535,981 2,297,117 1,636,736 85,353

〜 64 〜

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

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

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT'D)

June 30, 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 June 30, 2021	Net income (losses) of the investee	Percentage of ownership	Investment income (losses) (Note 2)	Book value	Accumulated remittance of earnings in current period (Note 6)
					Out-flow	Inflow
Inventec Appliances (XI'AN) Corporation Inventec Appliances (Nanchang) Corp. APEX Business Management & Consulting (Shanghai) Co., Ltd. Inventec Appliances (Shanghai) Enterprise Co., Ltd. Inventec Appliances (Nanchang) Intelligent Manufacturing Co., Ltd.	Development of intelligent devices Development of intelligent devices Business Management Development of intelligent devices Production and sales of intelligent devices	111,440 58,506 2,164 34,501 258,758	(2) (2) (3) (3) (3)	111,440 58,506 - - -	- - - - -	- - - - -	111,440 58,506 - - -	7,052 (27,165) 8,998 (1,172) (27,232)	% 100.00 % 100.00 % 100.00 % 100.00 % 100.00	7,052 (27,165) 8,998 (1,172) (27,232)	57,160 53,287 91,974 23,917 77,364	- - - - -

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 June 30, 2021	Investment Amounts Authorized by Investment Commission, MOEA	Upper Limit on Investment (Note 3,4,7)
The Company Inventec Appliances Corp.	7,391,258 5,138,164	7,391,258 5,138,164	- 4,548,356

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 June 30, 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 six months ended June 30, 2021, are disclosed in “Information on significant transactions”.

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

〜 65 〜

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

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

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT'D)

June 30, 2021 and 2020

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

(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.

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

Revenue Revenue from external customers Intersegment revenues Total revenue Reportable segment net operating income (loss) Revenue Revenue from external customers Intersegment revenues Total revenue Reportable segment net operating income (loss)	For the three months ended June 30, 2021	For the three months ended June 30, 2021	For the three months ended June 30, 2021
	Core Others Adjustment and Elimination $ 114,803,528 - - - - - $ 114,803,528 - - $ 1,431,403 (219,006) - For the three months ended June 30, 2020			Total 114,803,528 -
				114,803,528
				1,212,397
		Others 260,710 - 260,710 (243,332)	Adjustment and Elimination - - - -	Total 148,757,797 -
				148,757,797
				2,071,881

Revenue Revenue from external customers Intersegment revenues Total revenue Reportable segment net operating income (loss)	For the six months ended June 30, 2021	For the six months ended June 30, 2021	For the six months ended June 30, 2021
	Core $ 226,640,305 - $ 226,640,305 $ 2,949,795	Others 11,412 - 11,412 (332,169)	Adjustment and Elimination - - - -	Total 226,651,717 -
				226,651,717
				2,617,626

〜 66 〜

(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) June 30, 2021 and 2020

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

Revenue Revenue from external customers Intersegment revenues Total revenue Reportable segment net operating income (loss) Reportable segment net operating assets June 30, 2021 December 31, 2020 June 30, 2020	For the six months ended June 30, 2020	For the six months ended June 30, 2020	For the six months ended June 30, 2020
	Core $ 236,533,836 - $ 236,533,836 $ 7,628,983 $ - $ - $ -	Others 903,071 - 903,071 (391,870) - - -	Adjustment and Elimination - - - - - - -	Total 237,436,907 -
				237,436,907
				7,237,113
				-
				-
				-

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.

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