Stock Code:2356

INVENTEC CORPORATION AND SUBSIDIARIES

CONSOLIDATED FINANCIAL STATEMENTS

With Independent Auditors’ Review Report For the Nine Months Ended September 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.

〜 1 〜

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) Company History (2) Financial Statements Authorization Date and Authorization Process (3) New Standards, Amendments and Interpretations Adopted (4) Summary of Significant Accounting Policies (5) Significant Accounting Assumptions and Judgements, and Major Sources of Estimation Uncertainty (6) Explanation to Significant Accounts (7) Related Parties Transactions (8) Pledged Assets (9) Significant Commitments and Contingencies (10) Losses Due to Major Disasters (11) Subsequent Events (12) Other (13) Other disclosures (a) Information on significant transactions (b) Information on investment (c) Information on investment in Mainland China (d) Information on major shareholders (14) Segment Information	Page
	1 2 3 4 5 6 7 8 8 8～9 9～12 12 12～49 50～52 52 53 53 53 53～54 54～64 65～66 66～68 66～68 68～69

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

Page

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〜 2 〜

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

KPMG

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

To the Board of Directors of Inventec Corporation:

Introduction

We have reviewed the accompanying consolidated balance sheets of Inventec Corporation (“Company”) and its subsidiaries (“ Group” ) as of September 30, 2021 and 2020, and the related consolidated statements of comprehensive income for the three months and nine months ended September 30, 2021 and 2020, as well as changes in equity and cash flows for the nine months ended September 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 $79,314,019 thousand and $75,116,126 thousand, constituting 31% and 32% of the consolidated total assets; and the total liabilities amounting to $25,776,612 thousand and $19,564,012 thousand, constituting 13% and 11% of the consolidated total liabilities as of September 30, 2021 and 2020, respectively; as well as the total comprehensive (loss) income amounting to $(762,096) thousand, $598,362 thousand, $(520,818) thousand and $(365,125) thousand, constituting (34)%, 29%, (15)% and (6)% of the consolidated total comprehensive income (loss) for the three months and nine months ended September 30, 2021 and 2020, respectively.

〜 3 〜

KPMG, a Taiwan partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee.

Furthermore, as stated in Note (6)(f), the other equity accounted investments of the Group in its investee companies of $35,687 thousand and $1,128 thousand as of September 30, 2021 and 2020, respectively, and its equity in net earnings on these investee companies of $(744) thousand, $1,032 thousand, $(2,238) thousand and $(579) thousand for the three months and nine months ended September 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 September 30, 2021 and 2020, and of its consolidated financial performance for the three months and nine months ended September 30, 2021 and 2020, as well as its consolidated cash flows for the nine months ended September 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) November 12, 2021

Notes to Readers

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

〜 3-1 〜

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

INVENTEC CORPORATION AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

September 30, 2021, December 31, 2020, and September 30, 2020

(Expressed in Thousands of New Taiwan Dollars)

ASSETS Current Assets： 1100 Cash and cash equivalents (Note (6)(a)) 1110 Current financial assets at fair value through profit or loss (Note (6)(b)) 1120 Current financial assets at fair value through other comprehensive income (Note (6)(b)) 1170 Accounts receivable, net (Notes (6)(c) and (7)) 1200 Other receivables, net (Notes (6)(d) and (7)) 1310 Inventories (Note (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 (Note (6)(b)) 1517 Non-current financial assets at fair value through other comprehensive income (Note (6)(b)) 1550 Investments accounted for using equity method (Note (6)(f)) 1600 Property, plant and equipment (Notes (6)(h) and (8)) 1755 Right-of-use assets (Notes (6)(i) and (8)) 1780 Intangible assets (Note (6)(j)) 1900 Other non-current assets (Notes (6)(k) and (8)) TOTAL ASSETS	September 30, 2021 Amount % $ 34,268,070 13 1,344,941 1 1,259,433 1 108,770,104 42 790,834 - 68,934,754 27 3,021,096 1 218,389,232 85 785,218 - 4,052,213 2 300,244 - 27,431,628 11 3,080,914 1 938,074 - 2,980,685 1 39,568,976 15 $ 257,958,208 100	December 31, 2020 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	September 30, 2020 Amount % 26,707,329 12 2,516,035 1 1,163,960 1 107,526,097 46 787,950 - 46,677,859 20 5,007,845 2 190,387,075 82 716,668 - 3,910,669 2 220,218 - 28,881,126 13 3,391,451 2 889,852 - 3,211,914 1 41,221,898 18 231,608,973 100 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 (7)) 2322 Long-term borrowings, current portion (Note (6)(m)) 2280 Current lease liabilities (Note (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 2580 Non-current lease liabilities (Note (6)(n)) 2670 Other non-current liabilities, others (Note (6)(l)) Total Liabilities Equity attributable to owners of parent： 3110 Ordinary shares (Note (6)(r)) 3200 Capital surplus (Note (6)(r)) 3300 Retained earnings (Note (6)(r)) 3400 Other equity (Note (6)(r)) Total equity attributable to owners of parent 36XX Non-controlling interests Total Equity TOTAL LIABILITIES AND EQUITY	September 30, 2021 Amount % $ 49,067,205 19 100,790 - 7,491,576 3 98,705,884 38 2,769,264 1 9,751,224 4 330,744 - 186,946 - 12,988,485 5 181,392,118 70 14,701,690 6 618,531 - 617,581 - 5,951,191 3 21,888,993 9 203,281,111 79 35,874,751 14 2,899,284 1 19,553,224 7 (3,250,450) (1) 55,076,809 21 (399,712) - 54,677,097 21 $ 257,958,208 100	December 31, 2020 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	September 30, 2020 Amount % 40,634,468 18 174,959 - 7,428,251 3 87,216,175 38 2,421,932 1 10,449,750 4 3,822,744 2 193,301 - 11,821,946 5 164,163,526 71 3,345,731 2 604,960 - 783,001 - 4,726,591 2 9,460,283 4 173,623,809 75 35,874,751 16 2,913,461 1 20,244,599 9 (1,480,909) (1) 57,551,902 25 433,262 - 57,985,164 25 231,608,973 100

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

〜 4 〜

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

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

For the Three months and nine months ended September 30, 2021 and 2020

(Expressed in Thousands of New Taiwan Dollars)

4000 Operating revenue (Notes (6)(u) and (7)) 5000 Operating costs (Notes (6)(e) and (7)) 5900 Gross profit from operations Operating expenses (Notes (6)(c), (6)(v) and (7)): 6100 Selling expenses 6200 Administrative expenses 6300 Research and development expenses 6450 Expected credit losses 6900 Net operating income Non-operating income and expenses: 7100 Interest income (Notes (6)(w) and (7)) 7010 Other income (Note (6)(w)) 7020 Other gains and losses (Note (6)(w)) 7050 Finance costs (Note (6)(w)) 7060 Shares of profit (loss) of associates and joint ventures accounted for using equity method (Note (6)(f)) 7900 Profit before tax 7950 Less: Income tax expenses (Note (4) and (6)(q)) 8000 Profit Other comprehensive income (loss): 8310 Components of other comprehensive income (loss) 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 Shares 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 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 Shares 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 Other comprehensive income, net of income tax 8500 Total comprehensive income Profit, attributable to: 8610 Profit, 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 (loss), attributable to non-controlling interests Earnings per share (Note (6)(t)) 9750 Basic earnings per share (NT dollars) 9850 Diluted earnings per share (NT dollars)	For the three months e	nded September 30 2020 Amount % 145,380,375 100 139,529,062 96 5,851,313 4 711,622 - 1,062,359 1 2,534,400 2 13,833 - 4,322,214 3 1,529,099 1 271,630 - 86,077 - 679,130 - (268,841) - (3,180) - 764,816 - 2,293,915 1 549,598 - 1,744,317 1 54,732 - (8,272) - - - 46,460 - 245,915 - 526 - - - 246,441 - 292,901 - 2,037,218 1 1,931,429 1 (187,112) - 1,744,317 1 2,216,884 1 (179,666) - 2,037,218 1 0.54	For the nine months 2021 Amount % 371,730,854 100 355,555,301 96 16,175,553 4 2,255,995 - 2,861,188 1 7,515,433 2 25,986 - 12,658,602 3 3,516,951 1 821,137 - 338,646 - 1,928,846 - (509,005) - 51,043 - 2,630,667 - 6,147,618 1 1,370,002 - 4,777,616 1 (629,108) - (1,517) - - - (630,625) - (726,290) - 2,482 - - - (723,808) - (1,354,433) - 3,423,183 1 5,077,504 1 (299,888) - 4,777,616 1 3,728,979 1 (305,796) - 3,423,183 1 1.42	ended September 30
	2021 Amount % $ 145,079,137 100 139,171,885 96 5,907,252 4 785,393 - 1,010,637 1 2,602,103 2 3,723 - 4,401,856 3 1,505,396 1 248,957 - 108,162 - 1,860,236 1 (182,045) - (10,714) - 2,024,596 1 3,529,992 2 839,613 - 2,690,379 2 (348,063) - (1,292) - - - (349,355) - (113,841) - (184) - - - (114,025) - (463,380) - $ 2,226,999 2 $ 2,800,186 2 (109,807) - $ 2,690,379 2 $ 2,338,432 2 (111,433) - $ 2,226,999 2 $ 0.78			2020 Amount % 382,817,282 100 366,735,752 96 16,081,530 4 2,015,766 - 3,100,010 1 7,090,891 2 62,681 - 12,269,348 3 3,812,182 1 857,302 - 216,549 - 5,505,219 2 (846,179) - (14,045) - 5,718,846 2 9,531,028 3 3,333,135 1 6,197,893 2 949,171 - (12,245) - - - 936,926 - (617,803) - (686) - - - (618,489) - 318,437 - 6,516,330 2 6,622,634 2 (424,741) - 6,197,893 2 6,944,472 2 (428,142) - 6,516,330 2 1.85
	$ 0.78	0.54	1.41	1.83

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

〜 5 〜

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

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

For the Nine Months Ended September 30, 2021 and 2020

(Expressed in Thousands of New Taiwan Dollars)

Equity attributable to owners of parent

Retained Earnings	Retained Earnings	Retained Earnings	Other Equity Exchange Differences on Translation Unrealized gains (losses) from financial assets measured at fair value of Foreign Financial Statements through other comprehensive income (2,005,134) 183,129 - - (615,088) 936,926 (615,088) 936,926 - - - - - - - 19,258 - - (2,620,222) 1,139,313 (2,467,365) 565,440 - - (717,900) (630,625) (717,900) (630,625) - - - - - - (3,185,265) (65,185)	Total Equity
			Exchange Differences on Translation of Foreign Financial Statements (2,005,134) - (615,088) (615,088) - - - - - (2,620,222) (2,467,365) - (717,900) (717,900) - - - (3,185,265)
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 6,622,634 - 6,622,634 (546,296) (175,647) (4,663,718) (19,258) - 7,076,694 7,944,644 5,077,504 - 5,077,504 (747,132) (79,921) (6,636,829) 5,558,266		56,971,228 6,197,893 318,437
				6,516,330
				- - (4,663,718) - (838,676)
				57,985,164
				57,890,743 4,777,616 (1,354,433)
				3,423,183
				- - (6,636,829)
				54,677,097

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 Nine Months Ended September 30, 2021 and 2020

(Expressed in Thousands of New Taiwan Dollars)

		For the nine months	ended
		September 30
		2021	2020
Cash flows from operating activities:
Profit before tax	$	6,147,618	9,531,028
Adjustments:
Adjustments to reconcile profit:
Depreciation expenses		1,784,763	2,233,900
Amortization expenses		722,315	624,241
Expected credit losses		25,986	62,681
Interest expenses		509,005	846,179
Interest income		(821,137)	(857,302)
Dividend income		(133,990)	(30,069)
Shares of (gain) loss of associates and joint ventures accounted for using equity method		(51,043)	14,045
Gains on disposal of property, plant and equipment		(1,451,532)	(4,739,995)
Losses (gains) on disposal of investments		39,157	(24,435)
Impairment losses on non-financial assets		4,043	103,300
Unrealized foreign exchange gains		(323,056)	(175,269)
Others		(7,853)	(1,971)
Total adjustments to reconcile profit		296,658	(1,944,695)
Changes in operating assets and liabilities:
Changes in operating assets:
Decrease (increase) in financial assets at fair value through profit or loss, mandatorily measured at fair		206,454	(380,427)
value
Increase in accounts receivable		(17,447,030)	(20,069,736)
Increase in other receivables		(20,209)	(23,133)
Increase in inventories		(28,476,029)	(10,671,685)
Decrease (increase) in other current assets		1,851,388	(3,031,943)
Total changes in operating assets		(43,885,426)	(34,176,924)
Changes in operating liabilities:
(Decrease) increase in financial liabilities held for trading		(148,079)	67,443
(Decrease) increase in contract liabilities		(327,987)	980,496
Increase in accounts payable		25,915,517	18,103,161
Decrease in other payables		(1,634,739)	(1,207,647)
Increase in other current liabilities		1,025,566	2,292,108
Decrease in net defined benefit liabilities, non-current		(37,640)	(35,441)
Total changes in operating liabilities		24,792,638	20,200,120
Total changes in operating assets and liabilities		(19,092,788)	(13,976,804)
Total adjustments		(18,796,130)	(15,921,499)
Cash outflow generated from operations		(12,648,512)	(6,390,471)
Interest received		960,993	827,385
Dividends received		133,990	30,069
Interest paid		(529,756)	(785,147)
Income taxes paid		(443,558)	(2,016,777)
Net cash flows used in operating activities		(12,526,843)	(8,334,941)

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

〜 7 〜

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

INVENTEC CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENT OF CASH FLOWS (CONT'D)

For the Nine Months Ended September 30, 2021 and 2020

(Expressed in Thousands of New Taiwan Dollars)

Cash flows (used in) 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
Net cash flows from loss of control of subsidiary
Acquisition of investment properties
Decrease (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
Increase in other payables due to related parties
Payment of lease liabilities
(Decrease) increase in other non-current liabilities
Cash dividends paid
Net cash flows from financing activities
Effect of exchange rate changes on cash and cash equivalents
Net increase in cash and cash equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period

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

〜 7-1 〜

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

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

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

September 30, 2021 and 2020

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

(1) Company History

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

The consolidated financial statements of the Company as of and for the year ended September 30, 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 November 12, 2021.

(3) New Standards, Amendments and Interpretations Adopted:

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

The 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)

September 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

Name of Investor	Name of Subsidiary	Principal activity		Shareholding	September 30, 2020 Note
			September 30, 2021	December 31, 2020
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)

September 30, 2021 and 2020

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

Name of Investor	Name of Subsidiary	Principal activity		Shareholding	September 30, 2020 Note
			September 30, 2021	December 31, 2020
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 % 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 on January 18, 2021. (Note 1) % 100.00 (Note 1) % 100.00 % 78.00 (Note 1) % 100.00 (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)

September 30, 2021 and 2020

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

Name of Investor	Name of Subsidiary	Principal activity		Shareholding	September 30, 2020 Note
			September 30, 2021	December 31, 2020
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 (Shanghai) Enterprise Co., Ltd. APEX Business Management & Consulting (Shanghai) Co., Ltd. Inventec Appliances (Nanchang) Intelligent Manufacturing Co., Ltd. Inventec Appliances (Malaysia) SDN. BHD. Inventec Easy Doctor Corporation	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 Business management 〞 Production and sales of intelligent devices 〞 Production and sales of medical 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 % -	% 100.00 (Note 1) % 100.00 (Note 1) % 100.00 (Note 1) % 100.00 (Note 1) % 100.00 (Note 1) % 100.00 (Note 1) % 100.00 (Note 1) % 100.00 (Note 1) % 100.00 (Note 1) % 100.00 (Note 1) % 100.00 (Note 1) % 100.00 (Note 1) % 100.00 (Note 1) % 100.00 (Note 1) % - Inventec Easy Doctor Corporation was established on July 1, 2021. (Note 1)

Note 1: Companies are non-significant subsidiaries and their financial statements have not been reviewed.

Note 2: Companies are non-significant subsidiaries and their 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 using 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)

September 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 Assumptions and Judgements, and Major 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 on hand Demand deposits and checking accounts Time deposits Cash and cash equivalents in consolidated statement of cash flows	September 30, 2021 $ 5,312 27,400,999 6,861,759 $ 34,268,070	December 31, 2020 7,013 27,934,618 5,009,964 32,951,595	September 30, 2020
			7,155 21,519,973 5,180,201
			26,707,329

〜 12 〜

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

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

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT'D)

September 30, 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	September 30, 2021 $ 105,485 104,160 62,520 122,152 1,702,489 33,353 $ 2,130,159 $ 57,691 43,099 $ 100,790	December 31, 2020 13,606 237,568 145,460 232,340 1,033,760 31,210 1,693,944 210,598 39,538 250,136	September 30, 2020
			87,506 232,896 112,511 220,441 2,551,863 27,486
			3,232,703
			174,959 -
			174,959

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		September 30, 2021
	Contract Amount (in thousands) USD 544,000 USD 440,000 USD 46,000	Currency Maturity Period USD to TWD 2021.10.08~2022.02.25 USD to TWD 2021.10.22~2022.03.29 USD to CNY 2021.11.30~2021.12.30

〜 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) September 30, 2021 and 2020

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

Foreign exchange swap Forward Foreign exchange swap Forward Forward 2) Financial liabilities: Foreign exchange swap Forward Forward Foreign exchange swap Forward Forward Forward Forward Forward		December 31, 2020
	Contract Amount (in thousands) USD 715,000 USD 214,000	Currency Maturity Period USD to TWD 2021.01.07~2021.06.11 USD to TWD 2021.01.06~2021.06.09 September 30, 2020
	Contract Amount (in thousands) USD 685,000 USD 40,000 USD 127,000	Currency Maturity Period USD to TWD 2020.10.07~2020.12.28 USD to TWD 2020.10.07~2020.12.28 USD to CNY 2020.10.30~2020.12.31 September 30, 2021
	Contract Amount (in thousands) USD 315,000 USD 419,000 USD 23,000	Currency Maturity Period USD to TWD 2021.11.12~2022.03.29 USD to TWD 2021.10.08~2022.03.24 USD to CNY 2021.12.30 December 31, 2020
	Contract Amount (in thousands) 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 September 30, 2020
	Contract Amount (in thousands) USD 645,000 USD 15,000 USD 28,306	Currency Maturity Period USD to TWD 2020.10.08~2020.12.22 USD to CNY 2020.12.30 USD to CNY 2021.07.05

〜 14 〜

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

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT'D)

September 30, 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 of listed companies Stocks of unlisted companies Total	September 30, 2021 $ 1,485,550 3,826,096 $ 5,311,646	December 31, 2020 1,496,291 3,567,206 5,063,497	September 30, 2020
			1,281,969 3,792,660
			5,074,629

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

Accounts receivable- non-related parties Accounts receivable- related parties Less: Loss allowance	September 30, 2021 $ 108,866,272 1,099 (97,267) $ 108,770,104	December 31, 2020 91,807,993 75,749 (72,433) 91,811,309	September 30, 2020 107,645,904 8,447 (128,254) 107,526,097

The Group has assessed a portion of its trade receivables that was held within a business model whose objective is achieved by both collecting contractual cash flows and selling financial assets; therefore, such trade receivables were measured at fair value through other comprehensive income. As of September 30, 2021, December 31, 2020, and September 30, 2020, the amounts of trade receivables measured at fair value through other comprehensive income were $937,298, $2,035,693 and $902,529, 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) September 30, 2021 and 2020

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

September 30, 2021	September 30, 2021
Gross carrying amount $ 107,072,126 1,769,130 26,115 $ 108,867,371	Weighted- average loss rate 0%~0.5% 0.04%~10% 0.04%~100%	Loss allowance provision
		70,683 884 25,700
		97,267

As of October 25, 2021, the amount received in subsequent period by the Group is $11,218,996.

December 31, 2020	December 31, 2020
Gross carrying amount Weighted- average loss rate $ 90,849,182 0%~0.5% 1,031,417 0.04%~10% 3,143 0.04%~100% $ 91,883,742 September 30, 2020		Loss allowance provision
		57,719 11,802 2,912
		72,433

	Weighted- average loss rate 0%~1% 0.04%~10% 0.04%~100%	Loss allowance provision
		98,517 23,024 6,713
		128,254

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

Balance at January 1 Impairment losses recognized Amounts written off Foreign exchange losses Balance at September 30	For the nine months ended September 30 2021 2020 $ 72,433 102,855 26,101 25,441 (423) - (844) (42) $ 97,267 128,254
	2021 $ 72,433 26,101 (423) (844) $ 97,267

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)

September 30, 2021 and 2020

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

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

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

(Unit: Foreign currency/TWD in Thousands)

		September 30, 2021	September 30, 2021
Purchaser	Amount Derecognized	Amount Advanced Amount Recognized in other Unpaid Paid Receivable USD 11,858 Note USD1,092,220 - December 31, 2020		Range of Significant Transferring Interest Rate Terms 0.79%~1.28% The accounts receivable factoring is without recourse but the seller still bears the risks except for eligible obligor’s insolvency.
Non-related parties	$ 30,407,405

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

		September 30, 2020	September 30, 2020
Purchaser	Amount Derecognized	Amount Advanced Unpaid Paid USD 5,730 Note USD1,033,288	Amount Recognized in other Receivable -	Range of Significant Transferring Interest Rate Terms 1.07%~1.62% The accounts receivable factoring is without recourse but the seller still bears the risks except for eligible obligor’s insolvency.
		Unpaid USD 5,730 Note USD
Non-related parties	$ 30,068,684

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) September 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 Inventories Raw materials and consumables Work in process Finished goods Materials and supplies in transit	September 30, 2021 $ 32,097 758,737 $ 790,834 September 30, 2021 $ 57,607,277 6,584,585 4,736,859 6,033 $ 68,934,754	December 31, 2020 66 844,375 844,441 December 31, 2020 28,128,939 6,541,004 5,518,187 1,228,193 41,416,323	September 30, 2020
			2,610 785,340
			787,950
			September 30, 2020
			34,300,250 8,414,847 3,926,897 35,865
			46,677,859

(e) Inventories

For the three months and nine months ended September 30, 2021 and 2020, the write-up of inventories amounted to $135,847, $197,644, $340,056 and $132,046, respectively. 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 nine months ended September 30, 2021 and 2020, expenses of idle capacity amounted to $38,882, $96,636, $159,818 and $195,543, respectively.

As of September 30, 2021, December 31, 2020, and September 30, 2020, the aforesaid inventories were not pledged as collateral.

(f) Investments accounted for using equity method

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

follows:
Associates	September 30, 2021 $ 300,244	December 31, 2020 211,643	September 30, 2020
			220,218

As of September 30, 2021, December 31, 2020 and September 30, 2020, the Group’s investments under equity method has not been pledged as collaterals.

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

〜 18 〜

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

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT'D)

September 30, 2021 and 2020

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

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.

(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 nine months ended September 30, 2021 and 2020 were as follows:

Land	Building and construction	Machinery and equipment	Transportation equipment	Office equipment	Other facilities	Leasehold improvements	Others	Total
$ 7,784,757 - - - -	17,344,433 - (619,723) - (217,091)	20,575,197 639,314 (2,948,567) 132,501 (220,932)	103,254 3,710 (2,632) - (1,378)	5,179,869 279,325 (292,557) 21,856 (56,325)	8,803,802 84,569 (1,811,365) 72,133 (81,458)	396,393 136,050 (30,106) - (17,914)	2,160,725 906,453 (858) (338,902) (42,783)	62,348,430 2,049,421 (5,705,808) (112,412) (637,881)
$ 7,784,757	16,507,619	18,177,513	102,954	5,132,168	7,067,681	484,423	2,684,635	57,941,750
$ 7,884,298 - - (99,541) -	20,800,616 3,713 (1,925,498) (1,413,577) (223,407)	24,774,688 800,463 (2,133,592) (2,137,126) (267,668)	103,832 136 - - (1,057)	5,325,639 326,174 (368,147) (10,232) (79,444)	10,517,913 145,964 (1,918,575) 116,065 (118,571)	665,838 4,771 (2,372) (291,473) (14,738)	1,851,731 692,970 - (632,788) (14,152)	71,924,555 1,974,191 (6,348,184) (4,468,672) (719,037)
$ 7,784,757	17,241,847	21,036,765	102,911	5,193,990	8,742,796	362,026	1,897,761	62,362,853

〜 19 〜

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

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT'D)

September 30, 2021 and 2020

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

Land	Building and construction	Machinery and equipment	Transportation equipment	Office equipment	Other facilities	Leasehold improvements	Others	Total
$ - - - - -	4,460,648 278,040 (292,943) - (61,317)	17,798,027 695,730 (2,853,264) - (213,139)	83,005 7,880 (2,371) - (1,090)	4,509,777 287,975 (253,269) 2,070 (48,147)	7,226,057 265,094 (1,561,743) - (90,417)	266,333 39,200 (23,708) - (8,306)	- - - - -	34,343,847 1,573,919 (4,987,298) 2,070 (422,416)
$ -	4,384,428	15,427,354	87,424	4,498,406	5,838,991	273,519	-	30,510,122
$ 10,231 - - - (10,231) -	6,653,767 296,325 (1,350,997) - (1,199,936) (67,610)	20,714,397 927,168 (1,800,387) 103,164 (2,338,422) (220,847)	71,883 8,977 - - - (754)	4,683,815 286,280 (399,513) - (16,142) (64,272)	8,540,656 450,345 (1,923,442) 136 (13,414) (112,232)	520,348 35,056 (2,043) - (291,473) (9,106)	- - - - - -	41,195,097 2,004,151 (5,476,382) 103,300 (3,869,618) (474,821)
$ -	4,331,549	17,385,073	80,106	4,490,168	6,942,049	252,782	-	33,481,727
$ 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	12,123,191	2,750,159	15,530	633,762	1,228,690	210,904	2,684,635	27,431,628
$ 7,874,067	14,146,849	4,060,291	31,949	641,824	1,977,257	145,490	1,851,731	30,729,458
$ 7,784,757	12,910,298	3,651,692	22,805	703,822	1,800,747	109,244	1,897,761	28,881,126

As of September 30, 2021, December 31, 2020, and September 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 and the nine months ended September 30, 2021 were 11.40% and 10.89%. 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 and the nine months ended September 30, 2021, the impairment losses were $949,815 and $103,300.

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.

〜 20 〜

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

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

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT'D)

September 30, 2021 and 2020

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

(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: Balance at January 1, 2021 Additions Termination before the expiration Effect of changes in foreign exchange rates Balance at September 30, 2021 Balance at January 1, 2020 Additions Termination before the expiration Others Effect of changes in foreign exchange rates Balance at September 30,2020 Accumulated depreciation and impairment losses: Balance at January 1, 2021 Depreciation for the year Termination before the expiration Effect of changes in foreign exchange rates Balance at September 30, 2021 Balance at January 1, 2020 Depreciation for the year Termination before the expiration Others Effect of changes in foreign exchange rates Balance at September 30,2020 Carrying amounts: Balance at January 1, 2021 Balance at September 30, 2021 Balance at January 1, 2020 Balance at September 30, 2020	Land $ 2,501,251 160 (57,303) (57,160) $ 2,386,948 $ 2,594,248 4,427 (187,845) 75,434 (32,036) $ 2,454,228 $ 115,716 50,940 (3,002) (8,659) $ 154,995 $ 87,481 53,648 (32,671) (10,768) (6,204) $ 91,486 $ 2,385,535 $ 2,231,953 $ 2,506,767 $ 2,362,742	Buildings 1,372,877 36,312 - (67,206) 1,341,983 1,199,936 51,643 (1,016) 103,304 (9,866) 1,344,001 360,840 155,912 - (15,303) 501,449 174,934 158,639 - - (7,822) 325,751 1,012,037 840,534 1,025,002 1,018,250	Vehicles 15,351 5,547 (4,331) (56) 16,511 15,368 3,205 (182) (2,914) (72) 15,405 9,042 3,899 (4,331) (33) 8,577 4,658 4,188 (182) (1,053) (36) 7,575 6,309 7,934 10,710 7,830	Others 620 579 - (16) 1,183 5,087 - - - (22) 5,065 610 93 - (13) 690 1,440 1,014 - - (18) 2,436 10 493 3,647 2,629	Total 3,890,099 42,598 (61,634) (124,438) 3,746,625 3,814,639 59,275 (189,043) 175,824 (41,996) 3,818,699 486,208 210,844 (7,333) (24,008) 665,711 268,513 217,489 (32,853) (11,821) (14,080) 427,248 3,403,891 3,080,914 3,546,126 3,391,451

〜 21 〜

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

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT'D)

September 30, 2021 and 2020

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

(j) Intangible assets

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

Carrying amounts: Balance at January 1, 2021 Balance at September 30, 2021 Balance at January 1, 2020 Balance at September 30, 2020	Goodwill $ 808,420 $ 808,420 $ 808,420 $ 808,420	Software cost 67,381 129,654 72,354 81,432	Total
			875,801
			938,074
			880,774
			889,852

For the nine months ended September 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 September 30, 2021, December 31, 2020, and September 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 Payments on behalf of others Deferred tax assets Others	September 30, 2021 $ 67,615 266,786 884,636 271,114 1,971,187 2,540,443 $ 6,001,781	December 31, 2020 69,662 21,581 1,127,892 2,511,971 1,767,526 2,385,778 7,884,410	September 30, 2020
			64,103 30,623 1,469,562 2,282,862 1,755,579 2,617,030
			8,219,759

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 on behalf of others.

As of September 30, 2021, December 31, 2020, and September 30, 2020, the details of other assets were pledged as collateral, please refer to Note 8.

〜 22 〜

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

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

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT'D)

September 30, 2021 and 2020

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

( 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	September 30, 2021 $ 3,829,060 6,533,591 2,481,176 5,728,705 367,144 $ 18,939,676	December 31, 2020 3,255,201 5,452,614 3,027,071 4,916,698 445,585 17,097,169	September 30, 2020
			3,480,889 5,502,706 2,814,227 4,438,590 312,125
			16,548,537

(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		September 30, 2021	September 30, 2021
	Interest Rate	Currency	Maturity Date Amount 2031.02.26 $ 2,825,000 2024.02.14 1,040,690 2021.10.06~2022.02.09 14,642,185 2021.10.01~2022.10.14 45,589,336 2021.11.30 2,428 $ 64,099,639 $ 49,397,949 14,701,690 $ 64,099,639 $ 47,209,064
	1.02%~5.23% 0.36%~2.20%	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) September 30, 2021 and 2020

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

	December 31, 2020	December 31, 2020	December 31, 2020
Interest Rate	Currency
1.19%~5.23% 0.48%~2.90%

Interest Rate	Currency	Maturity Date Amount 2031.02.26 $ 3,125,000 2024.02.14 520,731 2020.10.22~2020.10.30 582,000 2020.10.07~2021.05.31 9,840,107 2020.10.06~2021.06.04 33,731,621 2021.05.31 3,484 $ 47,802,943 $ 44,457,212 3,345,731 $ 47,802,943 $ 59,725,865	Amount
0.80%~5.23% 0.56%~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 September 30, 2021, December 31, 2020, and September 30, 2020, the Group was in compliance with the above financial covenants.

〜 24 〜

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

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT'D)

September 30, 2021 and 2020

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

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%.

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	September 30, 2021 $ 186,946 $ 617,581	December 31, 2020 216,479 748,035	September 30, 2020
			193,301
			783,001

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

〜 25 〜

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

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT'D)

September 30, 2021 and 2020

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

The amounts recognized in profit or loss were as follows:

For the three months ended September 30 2021 2020 $ 6,166 8,246 $ 12,090 8,902 $ 4,753 4,641 $ 6,047 21,601 $ - 82	For the nine months ended September 30	For the nine months ended September 30
2021 $ 6,166 $ 12,090 $ 4,753 $ 6,047 $ -	2021 19,948 40,255 11,553 20,484 -	2020
		22,007
		36,944
		24,402
		36,208
		5,163

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

Total cash outflow for leases	For the nine months ended September 30	For the nine months ended September 30
	2021 $ 244,325	2020
		266,156

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. These leases are negotiated and monitored by local management, and accordingly, contain a wide range of different terms and conditions. The extension options held are exercisable only by the Group and not by the lessors. When the lessee is not reasonably certain to use an optional extended lease term, payments associated with the optional period will not be included within lease liabilities.

〜 26 〜

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

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT'D)

September 30, 2021 and 2020

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

2. Other leases

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

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

(o) Operating Leases

For the nine months ended September 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.

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

For the three months ended September 30 2021 2020 $ 344 428 443 486 951 1,120 2,017 2,291 $ 3,755 4,325	For the nine months ended September 30	For the nine months ended September 30
2021 $ 344 443 951 2,017 $ 3,755	2021 1,073 1,323 2,836 6,037 11,269	2020
		1,325 1,400 3,284 6,967
		12,976

2.Defined contribution plans

The pension costs incurred from the contributions to the Bureau of the Labor Insurance amounted to $63,653, $63,756, $192,521 and $191,965 for the three months and nine months ended September 30, 2021 and 2020, respectively.

The pension expenses contributed by the foreign entities following the local regulations amounted to $224,594, $207,040, $619,279 and $542,854 for the three months and nine months ended September 30, 2021 and 2020, respectively.

〜 27 〜

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

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

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT'D)

September 30, 2021 and 2020

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

(q) Income taxes

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

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

Current tax expenses Current period	For the three months ended September 30 2021 2020 $ 839,613 549,598	For the nine months ended September 30	For the nine months ended September 30
	2021 $ 839,613	2021 1,370,002	2020
			3,333,135

For the nine months ended September 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 2019 have been assessed and approved by the Tax Authority.

3.Business income tax administrative remedies

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

(r) Capital and other equity

Except for the following disclosures, there was no significant change for capital and other equity for the nine months ended September 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 accumulated deficit, and 10% of the rest be set aside as legal reserve. The appropriation for legal reserve is discontinued when the balance of the legal reserve equals the total authorized capital. Special reserve may be appropriated for operations or to meet regulations. The remaining earnings, if any, may be appropriated for operations according to the proposal, and the distributed dividends may not be lower than 10% of the earnings. Surplus distribution based on issuance of new shares approved by the Board of Directors, should be resolved during the shareholder's meeting. In consideration of the Company's long-term operating plan, funding needs, and satisfying shareholder demand for cash flow, the Company distributes cash dividends of at least 10% of the aggregate of cash dividends and stock dividends if the distributions include cash

〜 28 〜

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

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT'D)

September 30, 2021 and 2020

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

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

On March 30, 2021, and on March 24, 2020, the Company's Board of Directors resolved the amount of cash dividends of the earnings distribution of 2020 and 2019. These earnings were appropriated for distribution as follows:

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

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

(s) Share-Based payments

There were no significant changes on share-based payment for the nine months ended September 30, 2021. Please refer to Note 6(s) of the consolidated financial statements for the year ended December 31, 2020 for other related information.

〜 29 〜

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

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT'D)

September 30, 2021 and 2020

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

(t) Earnings per share

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

For the three months ended September 30 2021 2020 $ 2,800,186 1,931,429 3,587,475 3,587,475 $ 0.78 0.54 $ 2,800,186 1,931,429 3,587,475 3,587,475 8,657 7,211 3,596,132 3,594,686 $ 0.78 0.54	For the nine months ended September 30	For the nine months ended September 30
2021 $ 2,800,186 3,587,475 $ 0.78 $ 2,800,186 3,587,475 8,657 3,596,132 $ 0.78	2021 5,077,504 3,587,475 1.42 5,077,504 3,587,475 23,754 3,611,229 1.41	2020
		6,622,634
		3,587,475
		1.85
		6,622,634
		3,587,475 31,560
		3,619,035
		1.83

〜 30 〜

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

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

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT'D)

September 30, 2021 and 2020

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

(u) Revenue from contracts with customers
1.Disaggregation of revenue

For the three months ended September 30, 2021	For the three months ended September 30, 2021	For the three months ended September 30, 2021
Core Others Total $ 16,646,257 - 16,646,257 98,849,611 - 98,849,611 1,252,614 - 1,252,614 16,581,456 - 16,581,456 11,749,199 - 11,749,199 $ 145,079,137 - 145,079,137 $ 144,975,573 - 144,975,573 103,564 - 103,564 $ 145,079,137 - 145,079,137 For the three months ended September 30, 2020		Total
		16,646,257 98,849,611 1,252,614 16,581,456 11,749,199
		145,079,137
		144,975,573 103,564
		145,079,137
	Others 187,933 41,955 - (17,791) - 212,097 - - 212,097 212,097	Total
		13,687,692 93,291,864 967,015 22,835,159 14,598,645
		145,380,375
		144,933,120 235,158 212,097
		145,380,375

〜 31 〜

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

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

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

For the nine months ended September 30, 2021	For the nine months ended September 30, 2021	For the nine months ended September 30, 2021
Core Others Total $ 38,528,704 297 38,529,001 248,928,181 11,115 248,939,296 3,616,821 - 3,616,821 46,910,198 - 46,910,198 33,735,538 - 33,735,538 $ 371,719,442 11,412 371,730,854 $ 371,181,626 - 371,181,626 537,816 - 537,816 - 11,412 11,412 $ 371,719,442 11,412 371,730,854 For the nine months ended September 30, 2020		Total
		38,529,001 248,939,296 3,616,821 46,910,198 33,735,538
		371,730,854
		371,181,626 537,816 11,412
		371,730,854
	Others 786,454 116,360 - 212,354 - 1,115,168 - - 1,115,168 1,115,168	Total
		22,847,973 258,946,624 6,773,421 52,897,051 41,352,213
		382,817,282
		381,200,701 501,413 1,115,168
		382,817,282

〜 32 〜

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

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

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

2.Contract balances

Notes and Accounts receivable (included related parties) Less: Loss allowance Total Contract liabilities	September 30, 2021 $ 108,867,371 (97,267) $ 108,770,104 $ 7,491,576	December 31, 2020 91,883,742 (72,433) 91,811,309 7,828,232	September 30, 2020 107,654,351 (128,254) 107,526,097 7,428,251

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

The amount of revenue recognized for the three months and nine months ended September 30, 2021 and 2020 were $691,420, $858,530, $2,130,673 and $1,882,277, respectively.

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

(v) Remunerations of employees and directors

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

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

The remuneration of employees amounted to $223,343, $161,885, $399,678 and $559,086 and the remuneration of directors amounted to $40,889, $29,638, $73,172 and $102,356 for the three months and nine months ended September 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 September 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.

〜 33 〜

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

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

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT'D)

September 30, 2021 and 2020

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

(w) Non-operating income and expenses

1.Interest income

The details of interest income were as follows:

Interest income from bank deposits	For the three months ended September 30 For the nine months ended September 30 2021 2020 2021 2020 $ 248,957 271,630 $ 821,137 857,302	For the nine months ended September 30	For the nine months ended September 30
	2021 $ 248,957		2020
			857,302

2.Other income

The details of other income were as follows:

For the three months ended September 30 2021 2020 $ 67,506 56,008 40,656 30,069 $ 108,162 86,077	For the nine months ended September 30	For the nine months ended September 30
2021 $ 67,506 40,656 $ 108,162	2021 204,656 133,990 338,646	2020
		186,480 30,069
		216,549

3.Other gains and losses

The details of other income and losses were as follows:

For the three months ended September 30 2021 2020 Foreign exchange losses $ (68,599) (43,211) (Losses) gains on disposal of investments (16,915) - Net gains on financial assets (liabilities) measured at fair value through profit or loss 138,176 336,813 Gains (losses) on disposal of property, plant and equipment 1,625,652 (63) Impairment losses on property, plant and equipment - (47,927) Other impairment losses - - Others 181,922 433,518 $ 1,860,236 679,130	For the nine months ended September 30 2021 2020 (669,799) (683,871) (39,157) 24,435 773,071 649,007 1,451,532 4,739,995 - (103,300) (4,043) - 417,242 878,953 1,928,846 5,505,219
	2021 (669,799) (39,157) 773,071 1,451,532 - (4,043) 417,242 1,928,846

For the three months ended
September 30
2021
2020
Foreign exchange losses
$ (68,599)
(43,211)
(Losses) gains on disposal of
investments
(16,915)
-
Net gains on financial assets
(liabilities) measured at fair
value through profit or loss
138,176
336,813
Gains (losses) on disposal of
property, plant and
equipment
1,625,652
(63)
Impairment losses on property,
plant and equipment
-
(47,927)
Other impairment losses
-
-
Others
181,922
433,518
$
1,860,236
679,130

For the nine months ended
September 30
2021
2020
(669,799)
(683,871)
(39,157)
24,435
773,071
649,007
1,451,532
4,739,995
-
(103,300)
(4,043)
-
417,242
878,953
1,928,846
5,505,219

2021
(669,799)
(39,157)
773,071
1,451,532
-
(4,043)
417,242
1,928,846

〜 34 〜

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

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

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT'D)

September 30, 2021 and 2020

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

4.Finance costs

The details of finance expenses were as follows:

For the three months ended September 30 2021 2020 $ 105,537 156,756 76,508 112,085 $ 182,045 268,841	For the nine months ended September 30	For the nine months ended September 30
2021 $ 105,537 76,508 $ 182,045	2021 308,300 200,705 509,005	2020
		505,159 341,020
		846,179

(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:

September 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	Carrying amounts $ 3,865,690 60,233,949 98,705,884 9,751,224 804,527 57,691 - 43,099 - $ 173,462,064	Contractual cash flows 4,114,336 60,402,681 98,705,884 9,751,224 878,588 (12,289,410) 12,231,719 (8,728,645) 8,685,546 173,751,923	Within 6 months 193,711 48,901,753 98,705,884 9,751,224 106,567 (12,289,410) 12,231,719 (8,728,645) 8,685,546 157,558,349	6 to 12 months 193,337 360,866 - - 101,348 - - - - 655,551	1 to 2 years 469,397 11,140,062 - - 136,285 - - - - 11,745,744	2 to 5 years 1,897,414 - - - 332,787 - - - - 2,230,201	Over 5 years
							1,360,477 - - - 201,601 - - - -
							1,562,078

〜 35 〜

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

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

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT'D)

September 30, 2021 and 2020

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

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 September 30, 2020 Non-derivative financial liabilities Secured bank loans Unsecured bank loans Accounts payable Other payables Lease liabilities Derivative financial liabilities Forward exchange contracts not used for hedging: Outflow Inflow	Carrying amounts $ 3,594,825 37,617,499 74,370,226 11,595,245 964,514 210,598 - 39,538 - $ 128,392,445 $ 4,227,731 43,572,212 87,216,175 10,449,750 976,302 174,959 - $ 146,617,129	Contractual cash flows 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 4,516,703 43,662,682 87,216,175 10,449,750 1,080,463 (20,065,385) 19,890,426 146,750,814	Within 6 months 182,167 33,256,306 74,370,226 11,595,245 115,403 (18,092,129) 17,881,531 (3,209,668) 3,170,130 119,269,211 764,205 40,324,409 87,216,175 10,449,750 111,076 (20,065,385) 19,890,426 138,690,656	6 to 12 months 181,354 29,234 - - 134,958 - - - - 345,546 181,236 3,338,273 - - 109,456 - - 3,628,965	1 to 2 years 447,247 5,741,352 - - 171,981 - - - - 6,360,580 402,298 - - - 156,428 - - 558,726	2 to 5 years 1,462,220 - - - 394,867 - - - - 1,857,087 1,490,786 - - - 402,688 - - 1,893,474	Over 5 years
							1,598,418 - - - 283,646 - - - -
							1,882,064
							1,678,178 - - - 300,815 - -
							1,978,993

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

〜 36 〜

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

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

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT'D)

September 30, 2021 and 2020

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

2.Currency risks
1) Exposure to currency risks

The Group's significant exposure to foreign currency risks from its foreign currency denominated financial assets and liabilities was as follows:

Financial assets Monetary items USD CNY JPY Non-monetary items USD Financial Liabilities Monetary items USD CNY Financial assets Monetary items USD CNY JPY Non-monetary items USD		September 30, 2021
	Foreign currency (In thousand) $ 6,973,698 538,421 299,497 1,150,466 5,419 59,452 5,967,276 1,352,385 311,405 304,759	Exchange rate TWD USD：TWD 27.84 194,147,752 USD：CNY 6.49 14,989,641 USD：CZK 22.03 8,337,996 CNY：USD 0.15 4,938,605 JPY：TWD 0.25 1,339 USD：TWD 27.84 1,655,152 USD：TWD 27.84 166,128,964 USD：CNY 6.49 37,650,398 USD：CZK 22.03 8,669,515 CNY：USD 0.15 1,308,239 December 31, 2020
	Foreign currency (In thousand) $ 5,480,099 433,993 317,555 3,553,701 7,167 57,844	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

〜 37 〜

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

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT'D) September 30, 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		December 31, 2020
	Foreign currency (In thousand) 4,480,491 242,494 396,525 345,548	Exchange rate TWD 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 September 30, 2020
	Foreign currency (In thousand) $ 6,429,645 465,530 293,137 5,606,295 6,221 56,303 5,432,080 263,977 363,790 313,240	Exchange rate TWD USD：TWD 29.10 187,102,670 USD：CNY 6.81 13,546,923 USD：CZK 23.24 8,530,287 CNY：USD 0.15 23,956,259 JPY：TWD 0.27 1,680 USD：TWD 29.10 1,624,460 USD：TWD 29.10 158,073,528 USD：CNY 6.81 7,681,731 USD：CZK 23.24 10,586,289 CNY：USD 0.15 1,338,506

〜 38 〜

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

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT'D)

September 30, 2021 and 2020

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

2) Sensitivity analysis

The Group's exposure to foreign currency risks arises from the translation of the foreign currency exchange gains and losses on cash and cash equivalents, accounts receivable, other receivables, loans and borrowings, accounts payable and other payables that are denominated in foreign currency. A 0.5% depreciation or appreciation of the functional currency against all the non-functional currency as of September 30, 2021 and 2020 would have increased or decreased the net profit after tax by $39,754 and $212,627, respectively. The analysis is performed on the same basis for both periods.

3) Gains or losses on foreign exchange

Since the Group has many kinds of functional currency, the information on foreign exchange gain (loss) on monetary items is disclosed by total amount. For the nine months ended September 30, 2021 and 2020, the foreign exchange loss, including realized and unrealized, amounted to $669,799 and $683,871, respectively.

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

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

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

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

〜 39 〜

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

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

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT'D)

September 30, 2021 and 2020

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

	September 30, 2021	September 30, 2021	September 30, 2021
Book Value $ 209,645 1,920,514 2,130,159 1,478,160 3,833,486 5,311,646 34,268,070 109,560,938 952,251 144,781,259 $ 152,223,064 $ 100,790 64,099,639 98,705,884 9,751,224 804,527 173,361,274 $ 173,462,064		Fair Value
	Level 1 - 184,672 184,672 1,478,160 - 1,478,160 - - - - 1,662,832 - - - - - - -	Level 2 209,645 - 209,645 - 7,390 7,390 - - - - 217,035 100,790 - - - - - 100,790	Level 3 - 1,735,842 1,735,842 - 3,826,096 3,826,096 - - - - 5,561,938 - - - - - - -	Total 209,645 1,920,514
				2,130,159
				1,478,160 3,833,486
				5,311,646
				- - -
				-
				7,441,805
				100,790
				- - - -
				-
				100,790

〜 40 〜

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

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

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT'D)

September 30, 2021 and 2020

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

	December 31, 2020	December 31, 2020	December 31, 2020
Book Value $ 251,174 1,442,770 1,693,944 1,420,469 3,643,028 5,063,497 32,951,595 92,655,750 1,197,554 126,804,899 $ 133,562,340 $ 250,136 41,212,324 74,370,226 11,595,245 964,514 128,142,309 $ 128,392,445		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 - - - - 326,996 250,136 - - - - - 250,136	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
				250,136
				- - - -
				-
				250,136

〜 41 〜

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

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

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT'D)

September 30, 2021 and 2020

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

	September 30, 2020	September 30, 2020	September 30, 2020
Book Value $ 320,402 2,912,301 3,232,703 1,163,960 3,910,669 5,074,629 26,707,329 108,314,047 1,533,665 136,555,041 $ 144,862,373 $ 174,959 47,802,943 87,216,175 10,449,750 976,302 146,445,170 $ 146,620,129		Fair Value
	Level 1 - 332,952 332,952 1,163,960 - 1,163,960 - - - - 1,496,912 - - - - - - -	Level 2 320,402 - 320,402 - 118,009 118,009 - - - - 438,411 174,959 - - - - - 174,959	Level 3 - 2,579,349 2,579,349 - 3,792,660 3,792,660 - - - - 6,372,009 - - - - - - -	Total 320,402 2,912,301
				3,232,703
				1,163,960 3,910,669
				5,074,629
				- - -
				-
				8,307,332
				174,959
				- - - -
				-
				174,959

〜 42 〜

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

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT'D)

September 30, 2021 and 2020

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

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

The fair value of financial assets and liabilities 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 investee 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 nine months ended September 30, 2021.

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.

〜 43 〜

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

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT'D)

September 30, 2021 and 2020

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

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

Balance as of January 1, 2021 Total gains and losses recognized in Profit or loss Other comprehensive income Purchase Disposals Proceeds from capital reduction Effect of movements in exchange rates Balance as of September 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 rates Balance as of September 30, 2020	At fair value through profit or loss $ 1,064,970 (45,543) - 131,564 (51,816) - 636,667 $ 1,735,842 $ 3,717,254 24,578 - 7,073,679 (8,066,475) (74,980) (94,707) $ 2,579,349	Fair value through other comprehensive income 3,567,207 - (471,569) 738,114 - (4,838) (2,818) 3,826,096 2,114,517 - 990,853 687,008 - - 282 3,792,660

For the nine months ended September 30, 2021 and 2020, the total gains and losses included in “other gains and losses” and “unrealized gains and losses from financial assets at fair value through other comprehensive income” were as follows:

Total gains and losses recognized: In profit or loss, and presented in “other gains and losses” In other comprehensive income, and presented in “unrealized gains and losses from financial assets at fair value through other comprehensive income”	For the nine months ended September 30 2021 2020 $ (46,361) (41,634) (471,569) 990,853

〜 44 〜

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

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

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT'D)

September 30, 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 (2.59%~3.60% on September 30, 2021 3.20% on December 31, 2020 2.50%~3.43% on September 30, 2020) ‧ The higher the discount rate, the lower the fair value ‧ Net Asset Value ‧ Not applicable ‧ Market Multiple (1.37~2.58) ‧ 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 (0.58~5.09) ‧ Discount due to Lack of Market liquidity (30%~45%) ‧ 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

〜 45 〜

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

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

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT'D)

September 30, 2021 and 2020

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

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:

September 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 September 30, 2020 Financial assets at fair value through profit or loss Financial instruments without an active market Financial assets at fair value through other comprehensive income Equity instruments without an active market	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 (5,612) - (4,361) - (4,369) -	Impact on Fair Value Change on Other Comprehensive income or loss Favorable Change Unfavorable Change - - 22,310 (22,310) - - 17,790 (17,790) - - 18,923 (18,923)
			Favorable Change $ 5,612 - $ 4,361 - $ 4,369 -
		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.

〜 46 〜

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

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT'D)

September 30, 2021 and 2020

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

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 compliance with offsetting term of statement, but the Group has an exercisable master netting arrangement or similar agreement in place with its counterparties, and both parties reach a consensus regarding net settlement. The aforesaid exercisable master netting arrangement or similar agreement can be net settled after offsetting the financial assets and financial liabilities. Otherwise, the transaction can be settled at the total amount. In the event of default involving one of the parties, the other party can have the transaction net settled.

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

September 30, 2021	September 30, 2021	September 30, 2021	September 30, 2021	September 30, 2021	September 30, 2021
Financial assets that are offset which have an exercisable master netting arrangement or similar agreement
Gross amounts of recognized financial assets (a) $ 414,404,202 148,902 $ 414,553,104		Gross amounts of financial liabilities offset in the balance sheet (b) 414,065,929 - 414,065,929	Net amount of financial assets presented in the balance sheet (c)=(a)-(b) 338,273 148,902 487,175 September	Amounts not off set in the balance sheet (d) Financial instruments (Note) Cash collateral received - - - - - - 30, 2021	Net amount (e)=(c)-(d)
				Financial instruments (Note) - - - 30, 2021
					338,273 148,902
					487,175

	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) 74,596	Amounts not off set in the balance sheet (d) Financial instruments (Note) Cash collateral received - -	Net amount (e)=(c)-(d)
				Financial instruments (Note) -
					74,596

〜 47 〜

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

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

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT'D)

September 30, 2021 and 2020

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

December 31, 2020	December 31, 2020	December 31, 2020	December 31, 2020	December 31, 2020	December 31, 2020
Financial assets that are offset which have an exercisable master netting arrangement or similar agreement
Gross amounts of recognized financial assets (a) $ 390,039,674 72,194 $ 390,111,868		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 December	Amounts not off set in the balance sheet (d) Financial instruments (Note) Cash collateral received - - - - - - 31, 2020	Net amount (e)=(c)-(d)
				Financial instruments (Note) - - - 31, 2020
					446,035 72,194
					518,229

	Financial liabilities that are		offset which have an exercisable master netting arrangement or similar agreement
		Gross amounts of financial assets offset in the balance sheet (b) -	Net amount of financial liabilities presented in the balance sheet (c)=(a)-(b) 182,068 September	Amounts not off set in the balance sheet (d) Financial instruments (Note) Cash collateral received - - 30, 2020	Net amount (e)=(c)-(d)
				Financial instruments (Note) - 30, 2020
					182,068

	Financial assets that are offset which have an exercisable master netting arrangement or similar agreement
		Gross amounts of financial liabilities offset in the balance sheet (b) 408,291,938 - 408,291,938	Net amount of financial assets presented in the balance sheet (c)=(a)-(b) 405,851 184,307 590,158 September	Amounts not off set in the balance sheet (d) Financial instruments (Note) Cash collateral received - - - - - - 30, 2020	Net amount (e)=(c)-(d)
				Financial instruments (Note) - - - 30, 2020
					405,851 184,307
					590,158

	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) 145,923	Amounts not off set in the balance sheet (d) Financial instruments (Note) Cash collateral received - -	Net amount (e)=(c)-(d)
				Financial instruments (Note) -
					145,923

Note: Master netting arrangements are included.

〜 48 〜

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

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT'D)

September 30, 2021 and 2020

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

(y) Financial risk management

There were no significant changes in the Group's financial risk management and policies as 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 nine months ended September 30, 2021 and 2020, were as follows:

1.For right-of-use assets under leases, please refer to Note 6(i).
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 5,934,838 17,024,378 (152,085) 22,807,131 Cash flows 3,179,314 15,544,165 (146,595) 18,576,884	Non-cash changes Reclassification Foreign exchange movement (225,000) 1,027 225,000 (72,928) 42,598 (50,500) 42,598 (122,401) Non-cash changes Reclassification Foreign exchange movement (3,717,000) 283 3,717,000 (329,532) (108,547) 54,364 (108,547) (274,885)	September 30, 2021
				14,701,690 49,397,949 804,527
				64,904,166
				September 30, 2020
			Reclassification (3,717,000) 3,717,000 (108,547) (108,547)
				3,345,731 44,457,212 976,302
				48,779,245

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

〜 49 〜

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

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

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT'D)

September 30, 2021 and 2020

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

(7) Related Parties Transactions

(a) Names and relationships with related parties

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

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

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

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

For the three months ended September 30 2021 2020 $ 692 8,447 1,487 35 $ 2,179 8,482	For the nine months ended September 30	For the nine months ended September 30
2021 $ 692 1,487 $ 2,179	2021 59,263 1,528 60,791	2020
		9,693 310
		10,003

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 related parties were as follows:

Associates	For the three months ended September 30 2021 2020 $ - 551	For the nine months ended September 30	For the nine months ended September 30
	2021 $ -	2021 811	2020
			6,002

〜 50 〜

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

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT'D)

September 30, 2021 and 2020

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

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

3.Accounts receivable from related parties

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

Account	Related Party Categories	September 30, 2021 $ 1,099 - - $ 1,099	December 31, 2020 75,749 - 66 75,815	September 30, 2020
Accounts receivable Other receivables	Associates Other related parties Associates			8,417 30 2,610
				11,057

4.Accounts payable to related parties

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

Account	Related Party Categories	September 30, 2021 $ - 4,684 300,000 $ 304,684	December 31, 2020 678 1,046 300,000 301,724	September 30, 2020
Accounts payable Other payables 〞	Associates Associates Other related parties			365 1,850 300,000
				302,215

As of September 30, 2021, December 31, 2020, and September 30, 2020, the Group borrowed the amount of $300,000 from shareholders, which were accounted as other payables. The borrowing interest rate was 1.50%.

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

For the three months and nine months ended September 30, 2021 and 2020, the Group purchased equipment, intangible assets and other assets from Inventec Besta Co., Ltd. and paid the amount of $4,225, $4,980, $4,911 and $9,196, respectively.

6.Others

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

Associates	For the three months ended September 30 2021 2020 $ 528 3,134	For the nine months ended September 30	For the nine months ended September 30
	2021 $ 528	2021 4,087	2020
			5,674

〜 51 〜

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

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

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT'D)

September 30, 2021 and 2020

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

2) Donations to other related parties were as follows:

Other related parties	For the three months ended September 30 2021 2020 $ - -	For the nine months ended September 30	For the nine months ended September 30
	2021 $ -	2021 10,000	2020
			10,000

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

Associates	For the three months ended September 30 2021 2020 $ 1,058 1,763	For the nine months ended September 30	For the nine months ended September 30
	2021 $ 1,058	2021 2,626	2020
			3,560

Key management personnel compensation comprised:

For the three months ended September 30 2021 2020 $ 129,350 119,375 1,515 919 $ 130,865 120,294	For the nine months ended September 30	For the nine months ended September 30
2021 $ 129,350 1,515 $ 130,865	2021 339,397 3,695 343,092	2020
		373,583 2,787
		376,370

(8) Pledged Assets

The carrying amounts of pledged assets were as follows:

Pledged assets	Object	September 30, 2021 $ 67,615 884,636 8,751,129 $ 9,703,380	December 31, 2020 69,662 1,127,892 8,438,458 9,636,012	September 30, 2020
Refundable deposits (Other non-current assets) Restricted cash in banks (Other current assets and Other non-current assets) Land, buildings, structures, machinery and equipment (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			64,103 1,469,562 8,397,183
				9,930,848

〜 52 〜

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

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT'D)

September 30, 2021 and 2020

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

(9) Significant Commitments and Contingencies

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

EUR USD TWD	September 30, 2021 $ 55 - -	December 31, 2020 September 30, 2020 360 306 56 1,619 25,345 25,345

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

TWD USD	September 30, 2021 $ 22,420,465 1,813,400	December 31, 2020 September 30, 2020 21,940,262 21,913,676 1,776,400 1,692,400

(b) Contingencies: None.

(10) Losses Due to Major Disasters: None.

(11) Subsequent Events: None.

(12) Other

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

By function By item	For the three months ended September 30, 2021	For the three months ended September 30, 2021	For the three months ended September 30, 2021	For the three months ended September 30, 2020	For the three months ended September 30, 2020	For the three months ended September 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	2,068,927 185,812 155,812 144,784 391,230 47,264	2,331,446 201,007 136,190 67,457 201,129 186,374	4,400,373 386,819 292,002 212,241 592,359 233,638	1,950,235 211,130 162,072 164,087 501,022 50,414	2,178,565 177,265 113,049 61,319 222,439 153,355	4,128,800 388,395 275,121 225,406 723,461 203,769

〜 53 〜

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

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

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT'D)

September 30, 2021 and 2020

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

By function By item	For the nine months ended September 30, 2021	For the nine months ended September 30, 2021	For the nine months ended September 30, 2021	For the nine months ended September 30, 2020	For the nine months ended September 30, 2020	For the nine months ended September 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	5,890,765 551,850 433,985 389,896 1,167,504 146,932	6,639,096 606,186 389,084 209,245 617,259 575,383	12,529,861 1,158,036 823,069 599,141 1,784,763 722,315	6,758,708 594,073 445,265 389,544 1,494,499 161,468	6,529,365 512,072 302,530 179,650 739,401 462,773	13,288,073 1,106,145 747,795 569,194 2,233,900 624,241

(13) Other disclosures

(a) Information on significant transactions

The following is the information on significant transactions required by the “Regulations Governing the Preparation of Financial Reports by Securities Issuers” for the Group for the nine months ended September 30, 2021:

Loans to other parties:

(In Thousands of New Taiwan Dollars)

Number	Name of lender	Name of borrower	Account name	Related party	Highest balance of financing to other parties during the period	Ending balance	Actual usage amount during the period	Range of interest rates during the period	Purposes of fund financing for the borrower	Transaction amount for business between two parties	Reasons for short-term financing	Allowance for bad debt	Coll	ateral	Individual funding loan limits	Maximum limit of fund financing
													Item	Value
1 2 3 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.	Other receivables 〞〞〞	Y Y Y Y	83,353 259,140 1,600,000 87,740	60,102 128,790 1,600,000 -	42,930 128,790 321,122 -	3.045% 3.045% 1.95% -	2 2 2 2	- - - -	Working Capital 〞〞〞	- - - -	None 〞〞〞	- - - -	343,822 1,771,832 1,540,148 4,126,672	343,822 1,771,832 3,080,296 4,126,672

〜 54 〜

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

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

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT'D)

September 30, 2021 and 2020

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

Number	Name of lender	Name of borrower	Account name	Related party	Highest balance of financing to other parties during the period	Ending balance	Actual usage amount during the period	Range of interest rates during the period	Purposes of fund financing for the borrower	Transaction amount for business between two parties	Reasons for short-term financing	Allowance for bad debt	Collateral	Collateral	Individual funding loan limits	Maximum limit of fund financing
													Item	Value
4	Inventec (Pudong) Corp.(Note 4)	Inventec Asset- Management (Shanghai) Corporation r	Other eceivables	Y	2,764,160	1,373,760	1,373,760	5.225%	2	-	Working Capital	-	None	-	1,650,669	1,650,669

Note 1: Purpose of fund financing for the borrower:

(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. (The Board of Directors convened in advance resulted in a double count of the balances, but there was no overrun in substance.)
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 aforementioned inter-company transactions have been eliminated in the consolidated financial statements. Note 6: The transactions in foreign currencies were translated into New Taiwan Dollars using spot rates at the financial report date.

Guarantees and endorsements for other parties:

(In Thousands of New Taiwan Dollars)

No.	Name of guarantor	Counter-party of g endorsem	uarantee and ent	Limitation on amount of guarantees and endorsements for a specific enterprise	Highest balance for guarantees and endorsements during the period	Balance of guarantees and endorsements as of reporting date	Actual usage amount during the period	Property pledged for guarantees and endorsements (Amount)	Ratio of accumulated amounts of guarantees and endorsements to net worth of the latest financialstatements	Maximum amount for guarantees and endorsements	Parent company endorsements /guarantees to third parties on behalf of subsidiary	Subsidiary endorsements/ guarantees to third parties on behalf of parent company	Endorsement s/guarantees to third parties on behalf of companies in Mainland China
		Name	Relationshi p with the Company
0 1	Inventec Corporation Inventec Appliances Corp.	IEC Technologies, S.DE R.L. DE C.V. Inventec Appliances (Malaysia) SDN. BHD.	2 2	27,538,405 3,850,370	278,400 1,164,141	278,400 1,135,623	- 141,965	- -	% 0.51 % 14.75	27,538,405 3,850,370	Y N	N N	N N
	Note 1:	The relationship between the entity for which the endorsement/guarantee is made and the Company: 1.The Company has business relationship. 2.Subsidiaries in which the Company holds more than 50 percent of its voting power. 3.A investee in which the Company and subsidiary holds more than 50 percent of its voting shares. 4.Subsidiaries in which the Company holds more than 90 percent of its voting power. 5.Companies in accordance with contractual provisions established by mutual applicants or in need of project. 6.Companies that are endorsed and guaranteed by all capital shareholders based on their shareholding ratio due to a joint investm 7.The performance of pre-sale house sales contract between intra-industry companies is in accordance with the Consumer Protec required joint guarantees.										ent relationship. tion Law

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

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

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

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

〜 55 〜

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

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

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT'D)

September 30, 2021 and 2020

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

Securities held at the reporting 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. Tomorrow Studio Co., Ltd Tai Yi Precision Corporation New E Materials Co., Ltd. Rasilient Systems, Inc. preferred stock 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. WIN Semiconductors Corp. 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	- - - - - - - - - - - - - - - - - - - - - -	Non-current financial assets at fair value through other comprehensive income 〞〞〞〞〞〞〞〞〞〞〞〞〞 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 〞〞〞〞〞	161 26 21,114 29 2,540 1,760 3,632 3,746 235 568 355 532 360 - 4,063 - 450 3,260 94,889 1,200 2,857 750	242 13,658 7,390 158 - 13,059 - 47,207 - 16,251 9,641 - - 1,788,412 1,259,433 18,558 14,612 122,152 452,619 53,436 48,200 3,975	% 1.52 % 0.05 % 10.15 % 0.20 % 6.67 % 16.00 % 6.20 % 3.72 % 2.95 % 3.09 % 1.17 % 3.37 % 1.44 % 10.00 % 0.96 % - % 6.75 % 4.13 % 29.70 % 9.42 % 8.00 % 0.99	242 13,658 7,390 158 - 13,059 - 47,207 - 16,251 9,641 - - 1,788,412 1,259,433 18,558 14,612 122,152 452,619 53,436 48,200 3,975

〜 56 〜

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

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

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT'D)

September 30, 2021 and 2020

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

Name of holder	Category and name of security	Relationship with company	Account title		Ending balance	Ending balance		Note
				Shares/Units (thousands)	Carrying value	Percentage of ownership (%)	Fair value (Note1)
Inventec (Cayman) Corp. Saint Investment Consulting Corporation 〞〞〞 Inventec (Chongqing) Corp. Inventec Hi-Tech Corp. 〞 Inventec (Beijing) Electronics Technology Co., Ltd. Inventec Electronics (Tianjin) Co., Ltd. Inventec Development Japan Corporation Inventec Investments Co., Ltd. 〞〞〞〞	Chainwin Biotech and Agrotech (Cayman Islands) Co., Ltd. Testron Technology (JiangSu) Co., Ltd. Hunan Titanium Xpower Integrated Circuits Co., LTD. Shanghai Starfive Technology Co., Ltd. Guangdong StarFive Technology Co., Ltd. Kunshan Joing Technology Co., Ltd. SCSB Winners Zun Chong Jun Xiang Financial Product SCSB Winners Yijing Ling Financial Product Bank of Communications Pension CNY Financial products ICBC Wealth Management Corporation Tian Libao No. 2 Net Worth Management Product Famm Co., Ltd. ENNOSTAR Inc. UCFUNNEL CO LTD Sagacity Tech. Co., Ltd. Living Pattern Technology Inc. E-TON Solar Tech. Co., Ltd	- - - - - - - - - - - - - - - -	Non-current financial assets at fair value through other comprehensive income 〞〞〞〞 Current financial assets at fair value through profit or loss 〞〞〞〞 Non-current financial assets at fair value through other comprehensive income Current financial assets at fair value through profit or loss Non-current financial assets at fair value through other comprehensive income 〞〞 Non-current financial assets at fair value through profit or loss	30,000 2,778 417 17 522 5,948 - - - 100 881 83 79 4 15,813	1,534,735 67,825 42,927 2,745 83,110 204,259 429,272 214,636 51,513 154,538 8,271 62,520 10,843 145 445 75,429	% 13.17 % 10.00 % 4.00 % 0.73 % 0.73 % 2.96 % - % % - % - % 16.00 % 0.13 % 5.00 % 15.00 % 13.70 % 4.95	1,534,735 67,825 42,927 2,745 83,110 204,259 429,272 214,636 51,513 154,538 8,271 62,520 10,843 145 445 75,429

〜 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)

September 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 Appliances Corp. 〞〞〞〞〞〞〞〞〞〞〞 Inventec Appliances (Cayman) Holding Corp. 〞〞	SCOPE INDUSTRIES BERHAD Rong Cheng Tech. Co., Ltd. Tai Yi Precision Corporation Siano Mobile Silicon Inc. All People Health Social Enterprise Co.,Ltd. GCT Semiconductor, Inc. preferred stock Pandigital Worldwide, Ltd. preferred stock 3GTMobile Corporation preferred stock Linc Global Inc. (Proximiant, Inc.) preferred stock Molekule, Inc. preferred stock XMEMS LABS INC preferred stock Cardio Ring Technologies, Inc. convertible long-term note Siano Mobile Silicon Inc. Leadtone Limited(Class B preferred stock) Digital Chaotex Holdings Ltd.( Class A2 preferred stock)	- - - - - - - - - - - - - - -	Non-current financial assets at fair value through other comprehensive income 〞〞〞〞〞〞〞〞〞〞 Non-current financial assets at fair value through profit or loss Non-current financial assets at fair value through other comprehensive income 〞〞	84,444 1,950 635 461 100 93 939 314 594 1,603 2,974 - 99 1,250 446	205,069 - - - 1,000 - - - - 152,800 46,280 14,795 - - -	% 7.32 % 9.38 % 1.67 % 0.15 % 11.76 % 0.12 % 4.80 % 2.88 % 5.30 % 1.57 % 4.53 % - % 0.03 % 2.36 % 2.08	205,069 - - - 1,000 - - - - 152,800 46,280 14,795 - - -

Note 1: The value of listed company is market value, and the value of unlisted company is net asset value. The net asset value uses recent audited or unaudited financial statements.

Note 2: The transactions in foreign currencies were translated into New Taiwan Dollars using spot rates at the financial report date.

〜 58 〜

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

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

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT'D)

September 30, 2021 and 2020

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

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

(Amounts Expressed in Thousands of New Taiwan Dollars)

Name of company	Security type and name (Note 1)	Account name (Note 1)	Counter-party	Relationship	Beginning Balance	Beginning Balance	Acquistion	Acquistion	Disposal	Disposal	Disposal	Disposal	Ending Balance	Ending Balance
					Shares	Amount	Shares	Amount	Shares	Price	Cost	Gain (loss) on disposal	Shares	Amount
Inventec (Cayman) Corp. Inventec Hi-Tech Corp.	Chainwin Biotech and Agrotech (Cayman Islands) Co., Ltd. common shares SCSB Winners Zun Chong Jun Xiang Financial Product	Non-current financial assets at fair value through other comprehensive income Current financial assets at fair value through profit or loss	Cash Capital Increase Bank of Shanghai	Non-related parties -	20,000 -	1,175,931 -	10,000 -	358,804 429,272	- -	- -	- -	- -	30,000 -	1,534,735 429,272

Note 1: The ending balance includes adjustments of valuation. Note 2: The transactions in foreign currencies were translated into New Taiwan Dollars using spot rates at the financial report date.

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

(In Thousands of New Taiwan Dollars)

Name of company	Name of property	Transaction date	Transaction amount	Status of payment	Counter-party	Relationship	If the coun	ter-party is a re previous transfe	lated party, r informatio	disclose the n	References for determining price	Purpose of acquisition and current condition	Others
							Owner	Relationship with the Company	Date of transfer	Amount
IEC TECHNOLGOIES, S. DER. L. DEC. V.	Engaging others to build on the company's own land 2	August 10, 021	USD 75,900	Unpaid	FERROMINIO DISENO Y CONSTRUCCI ON S.A. DE C.V. etc.	Non-related parties	-	-	-	-	N/A	Engaging others to build on the company's own land	N/A

Note: Approved by the Board of Directors.

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 Hi-Tech Corp.	Land and Building Land and Building	April 27, 2021 April 27, 2021	2006 2006	327,952 52,426	1,482,932 759,634	100% 100%	1,088,714 667,869	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 been completed.

〜 59 〜

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

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

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT'D)

September 30, 2021 and 2020

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

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

(In Thousands of New Taiwan Dollars)

Name of company	Related party	Nature of relationship		Transacti	on details		Trans diffe	actions with terms rent from others	Notes/Accounts r	eceivable (payable)	Note
			Purchase/ Sale	Amount	Percentage of total purchases/sale	Payment terms	Unit price	Payment terms	Ending balance	Percentage of total notes/accounts receivable (payable)
The Company 〞〞〞〞〞 Inventec Holding (North America) Corp. 〞〞〞 Inventec (Czech), s.r.o. 〞〞〞 Inventec Corporation (Hong Kong) Ltd. 〞〞〞	Inventec Holding (North America) Corp. Inventec (Czech), s.r.o. AIMobile Co., Ltd. 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.	Subsidiary 〞〞〞〞〞 Parent Associates 〞〞 Parent 〞 Associates 〞 Parent Associates 〞〞	Sales Sales Sales Purchases Purchases Purchases Purchases Sales Sales Purchases Purchases Sales Purchases Sales Sales Purchases Purchases Purchases	56,943,135 20,497,836 105,232 235,564,861 290,113 5,800,333 56,943,135 260,820 299,626 179,285 20,497,836 5,800,333 299,626 179,285 235,564,861 19,557,551 8,995,684 207,011,626	% 17.97 % 6.47 % 0.03 % 75.74 % 0.09 % 1.87 % 91.15 % 0.47 % 0.54 % 0.31 % 95.29 % 23.84 % 1.47 % 0.74 % 100.00 % 8.30 % 3.82 % 87.88	105 days 105 days 60 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	- - - - - - - - - - - - - - - - - -	No general trading partner can be compared. 〞〞〞〞〞〞〞〞〞〞〞〞〞〞〞〞〞	27,676,195 8,530,981 34,284 (62,200,869) (57,451) (427,082) (27,676,195) - 94,130 (78,446) (8,530,981) 427,082 (94,130) 78,446 62,200,869 (4,162,120) (4,865,527) (53,173,221)	% 25.85 % 7.97 % 0.03 % 50.89 % 0.05 % 0.35 % 96.58 % - % 0.90 % 0.27 % 98.17 % 5.34 % 1.08 % 0.98 % 47.62 % 3.19 % 3.72 % 40.71

〜 60 〜

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

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

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT'D)

September 30, 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 Corporation (Hong Kong) Ltd. Inventec (Shanghai) Corp. SQ Technology (Shanghai) Corporation 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 (Nanchang) Intelligent Manufacturing Co., Ltd. Inventec Appliances (Malaysia) SDN. BHD. Inventec Appliances (USA) Distribution Corp. Inventec Appliances Corp.	Associates 〞〞〞〞〞〞〞〞〞〞〞〞〞〞〞	Sales Sales Sales Purchases Purchases Purchases Sales Sales Sales Purchases Purchases Purchases Purchases Purchases Sales Purchases	19,557,551 8,918,594 11,752,502 260,820 8,918,594 8,979,729 207,011,626 8,995,684 8,979,729 11,752,502 15,867,739 959,398 572,177 124,084 773,760 773,760	% 46.41 % 21.16 % 27.89 % 0.74 % 49.83 % 50.17 % 99.79 % 26.79 % 26.74 % 20.90 % 76.03 % 4.60 % 2.74 % 0.59 % 3.80 % 100.00	105 days 105 days 105 days 105 days 105 days 105 days 90 days 105 days 105 days 105 days 1-2 months 1-2 months 1-2 months 1-2 months 1-2 months 1-2 months	- - - - - - - - - - - - - - - -	No general trading partner can be compared. 〞〞〞〞〞〞〞〞〞〞〞〞〞〞〞	4,162,120 4,551 6,247,802 - (4,551) (6,238,242) 53,173,221 4,865,527 6,238,242 (6,247,802) (7,140,421) (132,034) (33,795) (124,084) 196,436 (196,436)	% 38.25 % 0.04 % 57.41 % - % 0.07 % 98.67 % 99.80 % 27.04 % 34.68 % 22.17 % 86.84 % 1.60 % 0.41 % 1.51 % 2.79 % 100.00

〜 61 〜

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

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

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT'D)

September 30, 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 Appliances (Pudong) Corp. 〞〞 Inventec Appliances (Nanjing) Corp. Inventec Appliances (Jiangning) Corp. 〞〞 Inventec Appliances (Nanchang) Intelligent Manufacturing Co., Ltd. 〞 Inventec Appliances (Malaysia) SDN. BHD. 〞 AIMobile Co., Ltd.	Inventec Appliances Corp. Inventec Appliances (Nanchang) Intelligent Manufacturing Co., Ltd. Inventec Appliances (Malaysia) SDN. BHD. Inventec Appliances (Jiangning) Corp. Inventec Appliances Corp. The Company Inventec Appliances (Nanjing) Corp. Inventec Appliances Corp. Inventec Appliances (Pudong) Corp. Inventec Appliances Corp. Inventec Appliances (Pudong) Corp. The Company	Associates 〞〞〞〞 Parent Associates 〞〞 Associates 〞 Parent	Sales Sales Purchases Sales Sales Sales Purchases Sales Purchases Sales Sales Purchases	15,867,739 429,382 231,188 267,949 959,398 290,113 267,949 572,177 429,382 124,084 231,188 105,232	% 96.54 % 2.61 % 1.02 % 99.26 % 29.41 % 8.89 % 14.56 % 99.63 % 77.03 % 34.68 % 64.61 % 87.80	1-2 months 1-2 months 1-2 months 30 days 1-2 months 90 days 30 days 1-2 months 1-2 months 1-2 months 1-2 months 60 days	- - - - - - - - - - - -	No general trading partner can be compared. 〞〞〞〞〞〞〞〞〞〞〞	7,140,421 166,028 (203,365) 41,410 132,034 57,451 (41,410) 33,795 (166,028) 124,084 203,365 (34,284)	% 96.87 % 2.25 % 2.65 % 95.44 % 17.53 % 7.63 % 7.38 % 95.31 % 85.28 % 37.93 % 62.17 % 79.75

Note 1: Based on the negotiated price while trading.

Note 2: The transactions in foreign currencies were translated into New Taiwan Dollars using spot rates at the financial report date.

〜 62 〜

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

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

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT'D)

September 30, 2021 and 2020

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

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	Ov	erdue	Amounts received in subsequent period	Allowance for bad debts
					Amount	Action taken
The Company 〞〞 Inventec (Czech), s.r.o. Inventec Corporation (Hong Kong) Ltd. 〞〞〞 Inventec (Pudong) Technology Corp. 〞 Inventec (Chongqing) Corp. SQ Technology (Shanghai) Corporation 〞 Inventec Appliances Corp. Inventec Appliances (Pudong) Corp. 〞 Inventec Appliances (Jiangning) Corp. Inventec Appliances (Malaysia) SDN. BHD. 〞	Inventec Holding (North America) Corp. Inventec (Czech), s.r.o. Inventec Corporation (Hong Kong) Ltd. (Note) The Company The Company Inventec (Pudong) Technology Corp. (Note) SQ Technology (Shanghai) Corporation (Note) Inventec (Chongqing) Corp. (Note) Inventec Corporation (Hong Kong) Ltd. 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. Inventec Appliances (Nanchang) Intelligent Manufacturing Co., Ltd. Inventec Appliances Corp. Inventec Appliances Corp. Inventec Appliances (Pudong) Corp.	Subsidiary Subsidiary Subsidiary Parent Parent Associates Associates Associates Associates Associates Associates Associates Associates Associates Associates Associates Associates Associates Associates	27,676,195 8,530,981 68,360,969 427,082 62,200,869 3,896,783 19,393,739 45,070,447 4,162,120 6,247,802 53,173,221 4,865,527 6,238,242 196,436 7,140,421 166,028 132,034 124,084 203,365	3.43 2.81 - 27.34 5.75 - - - 4.17 5.02 6.01 4.93 3.84 7.56 2.61 2.12 6.59 2.67 3.03	197,801 4 5,190,495 - - 918,491 4,271,458 546 - 5,181,053 - - 194,813 - - - - - -	Received in the subsequent period Received in the subsequent period Received in the subsequent period Received in the subsequent period Received in the subsequent period Received in the subsequent period Received in the subsequent period Received in the subsequent period	2,113,771 1,347,143 20,131,299 427,082 14,082,960 1,520 4,468,289 15,661,491 882,528 229,271 12,933,169 267,263 2,008,984 80,535 170,793 - 19,996 - 58,500	- - - - - - - - - - - - - - - - - - -

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

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

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

〜 63 〜

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

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

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

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

10. Business relationships and significant inter-company transactions:

No.	Name of company	Name of counter party	Existing relationship with the counter- party		Intercompany Transactions	Intercompany Transactions
				Account name	Amount	Terms of trading	Percentage of the consolidated total revenue or total assets
0 1 2 3 4	Inventec Corporation 〞〞〞〞〞〞 Inventec Corporation (Hong Kong) Ltd. 〞〞〞〞〞〞〞〞 Inventec (Pudong) Technology Corp. 〞〞 SQ Technology (Shanghai) Corporation 〞 Inventec Appliances 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 〞 Inventec (Shanghai) Co., Ltd. 〞 Inventec Appliances (Pudong) Corp. 〞	1 1 1 1 1 1 1 3 3 3 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 Sales Accounts Receivable Sales Accounts Receivable Purchases Accounts Payable	56,943,135 27,676,195 20,497,836 8,530,981 235,564,861 68,360,969 62,200,869 19,557,551 4,162,120 3,896,783 8,995,684 4,865,527 19,393,739 207,011,626 53,173,221 45,070,447 8,918,594 11,752,502 6,247,802 8,979,729 6,238,242 15,867,739 7,140,421	Negotiated price 105 days Negotiated price 105 days Negotiated price 90-105 days 〞 Negotiated price 105 days 〞 Negotiated price 105 days 〞 Negotiated price 90 days 〞 Negotiated price Negotiated price 105 days Negotiated price 105 days Negotiated price 1-2 months	% 15 % 11 % 6 % 3 % 63 % 27 % 24 % 5 % 2 % 2 % 2 % 2 % 2 % 56 % 21 % 17 % 2 % 3 % 2 % 2 % 2 % 4 % 3

Note 1: Company numbering as follows: 1.Parent company - 0.

2.Subsidiaries starts from 1.

Note 2: The numbering of the relationship between transaction parties as follows: 1.Parent company to subsidiary.

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2.Subsidiary to parent company.
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3.Subsidiary to subsidiary.
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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.

〜 64 〜

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

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

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT'D)

September 30, 2021 and 2020

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

(b) Information on investments:

The following is the information on investees for the nine months ended September 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	Balance a	s of September 3	0, 2021	Net income (loss) of the investee	Share of profits/losses of investee	Note
				September 30, 2021	December 31, 2020	Shares/Units (In thousands)	Percentage of ownership	Carrying value
The Company 〞〞〞〞〞〞〞〞〞〞〞 Inventec Investment Co., Ltd. Inventec Appliances Corp. 〞	Inventec Besta Co., Ltd. Inventec Corporation (Hong Kong) Ltd. Inventec Holding (North America) Corp. Inventec Appliances Corp. Inventec (Cayman) Corp. IEC (Cayman) Corporation Inventec (Czech), S.R.O. Inventec Investment Co., Ltd. Inventec Solar Energy Corporation Inventec Development Japan Corporation Inventec Japan Corporation AIMobile Co., Ltd. Inventec Solar Energy Corporation Inventec Appliances (Cayman) Holding Corp. Gainia Intellectual Asset Services, Inc.	Taipei Hong Kong USA New Taipei City Cayman Cayman Czech Taipei Taoyuan Japan 〞 Taipei Taoyuan Cayman Taipei	Electronic dictionary Trading Holding Company Intelligent device products Holding Company Holding Company Production and sales of computer products Investment Company Sales of solar cells and medical equipment Trading Trading and management service Developing, production and sales of intelligent mobile devices Sales of solar cells and medical equipment Holding Company Intellectual property rights integrative services	420,347 167,162 159,003 9,656,877 9,812,963 739,500 85,921 1,000,000 1,087,800 630,845 2,954 182,500 150,000 5,556,158 6,400	420,347 167,162 159,003 9,656,877 9,812,963 739,500 85,921 1,000,000 1,087,800 630,845 2,954 182,500 150,000 5,556,158 6,400	23,405 2,500 5,000 536,857 301,768 25,000 - 108,800 108,150 45 - 18,250 15,000 199,575 205	% 37.53 % 100.00 % 100.00 % 100.00 % 100.00 % 100.00 % 100.00 % 100.00 % 33.45 % 100.00 % 100.00 % 73.00 % 4.64 % 100.00 % 38.90	264,557 363,860 1,291,292 8,470,195 23,890,449 1,332,768 156,299 91,384 (465,125) 15,363 3,333 90,225 (68,749) 15,509,848 110	141,977 4,655 38,435 124,297 3,368,420 175,877 48,995 (34,694) (521,278) (567) 491 (43,908) (521,278) (742,886) (3,143)	53,281 4,655 38,435 124,297 3,368,420 175,877 48,995 (34,694) (168,921) (567) 491 (32,057) - - -	Investment accounted for using equity method Subsidiary 〞〞〞〞〞〞〞〞〞〞 Associate Company 〞 Investment accounted for using equity method

〜 65 〜

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

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

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT'D)

September 30, 2021 and 2020

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

Investor company	Investee company	Location	Main businesses and products	Original investment amount	Original investment amount	Balance as of September 30, 2021	Balance as of September 30, 2021	Balance as of September 30, 2021	Net income (loss) of the investee	Share of profits/losses of investee	Note
				September 30, 2021	December 31, 2020	Shares/Units (In thousands)	Percentage of ownership	Carrying value
Inventec Appliances Corp. 〞 Inventec Appliances (Cayman) Holding Corp. 〞 Inventec Appliances (Pudong) Corp.	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 Taoyuan USA 〞 Malaysia	Biotechnology services and retail sale and wholesale of medical divices Sales of solar cell and medical equipment Marketing promotion Sales services Production and sales of intelligen devices	23,712 s 311,160 22,272 1,392 t 802,436	- 311,160 22,272 1,392 470,851	9,120 30,930 400 10 121,000	% 30.00 % 9.57 % 100.00 % 100.00 % 100.00	22,888 (141,761) 91,296 13,342 644,246	(3,615) (521,278) 695 634 (142,708)	- I - - - -	nvestment accounted for using equity method Associate Company 〞〞〞

Note 1: The aforementioned inter-company transactions have been eliminated in the consolidated financial statements. Note 2: The transactions in foreign currencies were translated into New Taiwan Dollars using spot rates at the financial report date. Note 3: According to the regulations, investment companies other than the Company are not required to disclose the share of income / loss of investees.

(c) Information on investments 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 September 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) Corp. Inventec (Shanghai) Corp. Inventec (ChongQing) Corp. Inventec (Pudong) Technology 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	314,343 27,840 1,392,000 2,052,651 2,088,000 1,631,193	(2) (2) (2) (2) (2) (2)	55,680 27,840 1,392,000 821,280 2,088,000 1,392,000	- - - - - -	- - - - - -	55,680 27,840 1,392,000 821,280 2,088,000 1,392,000	(643) (284) 53,303 21,452 1,506,540 1,493,615	% 100.00 % 100.00 % 100.00 % 100.00 % 100.00 % 100.00	(643) (284) 53,303 21,452 1,506,540 1,516,862	249,313 39,099 4,111,498 1,849,733 8,574,417 7,951,546	30,234 - - - 2,242,107 321,599

〜 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)

September 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	Investm	ent flows	Accumulated outflow of investment from Taiwan as of September 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 Electronics (Tianjin) Co.,Ltd. Inventec (Beijing) Electronics Co.,Ltd. Inventec Hi-Tech Corp. Inventec Asset- Management (Shanghai) Corporation Saint Investment Consulting Corporation SQ Technology (Shanghai) Corporation Truswe (ChongQing) Technology Co.,Ltd 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 APEX Business Management & Consulting (Shanghai) Co.,Ltd. Inventec Appliances (Shanghai) Enterprise Co., Ltd Inventec Appliances (Nanchang) Intelligent Manufacturing Co., Ltd. Inventec Easy Doctor Corporation	Electronic product software development Electronic product software development Sales of computer products Leasing Business Management Production and sales of computer products Production and sales of electronic products Development of intelligent devices Production and sales of intelligent devices Production and sales of intelligent devices Production and sales of intelligent devices House leasing Development of intelligent devices Business Management Business Management Production and sales of intelligent devices Production and sales of medical devices	139,200 40,368 1,392,000 1,838,156 214,635 214,635 64,391 1,436,544 2,143,680 1,893,120 139,200 111,360 58,464 2,154 34,342 257,563 42,927	(2) (2) (2) (3) (3) (3) (3) (2) (2) (2) (2) (2) (2) (3) (3) (3) (3)	118,320 40,368 1,392,000 - - - - 1,339,606 2,143,680 1,169,280 250,045 111,360 58,464 - - - -	- - - - - - - - - - - - - - - - -	- - - - - - - - - - - - - - - - -	118,320 40,368 1,392,000 - - - - 1,339,606 2,143,680 1,169,280 250,045 111,360 58,464 - - - -	2,495 (7,938) 571,412 (16,568) 158 63,417 (955) (84,057) (490,633) 227,373 10,527 10,427 (40,838) 18,802 (2,552) (62,241) (2)	% 100.00 % 100.00 % 100.00 % 78.00 % 100.00 % 100.00 % 20.00 % 100.00 % 100.00 % 100.00 % 100.00 % 100.00 % 100.00 % 100.00 % 100.00 % 100.00 % 100.00	2,495 (7,938) 571,412 (12,923) 158 63,417 (191) (84,057) (867,842) 227,722 10,527 10,427 (40,838) 18,802 (2,552) (62,241) (2)	229,239 68,188 1,687,656 1,338,843 214,826 277,682 12,689 1,659,000 7,821,953 5,430,391 387,572 60,285 39,317 101,340 22,428 42,071 42,925	149,517 - - - - - - 1,535,981 2,297,117 1,636,736 85,353 - - - - - -

〜 67 〜

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

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

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT'D)

September 30, 2021 and 2020

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

2. Upper limit on investment in Mainland China:

2. Upper limit on inve	stment in Mainland China:
Name of Company	Accumulated Investment in Mainland China as of September 30, 2021	Investment Amounts Authorized by Investment Commission, MOEA	Upper Limit on Investment (Note 3,4,7)
The Company Inventec Appliances Corp.	7,385,952 5,134,476	7,385,952 5,134,476	- 4,620,444

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 recognition of investment income (loss) is based on the financial statement reviewed by CPA or the 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 translated into New Taiwan Dollars using spot rates at the financial report date. Note 6: The amount of foreign currencies was translated into New Taiwan Dollars at historical exchange rates.

Note 7: After the accumulated investment in Mainland China as of September 30, 2021, deducted the accumulated remittance of earnings in current period, the investment amounts of Inventec Appliance Corp. was still under the upper limit on investment.

Note 8: The inter-company transactions were eliminated in the consolidated financial statements

3. Significant transactions:

The significant inter-company transactions with the subsidiary in Mainland China for the nine months ended September 30, 2021, which were eliminated in the preparation of consolidated financial statements, are disclosed in “Information on significant transactions”.

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

(14) Segment Information

(a) General information

The Group's 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

For the three months ended September 30, 2021	For the three months ended September 30, 2021	For the three months ended September 30, 2021	For the three months ended September 30, 2021
Core $ 145,079,137 - $ 145,079,137 $ 3,719,706	Others - - - (189,714)	Adjustment and Elimination - - - -	Total 145,079,137 -
			145,079,137
			3,529,992

〜 68 〜

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

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT'D)

September 30, 2021 and 2020

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

For the three months ended September 30, 2020	For the three months ended September 30, 2020	For the three months ended September 30, 2020	For the three months ended September 30, 2020
Core $ 145,168,278 - $ 145,168,278 $ 2,632,926 For	Others Adjustment and Elimination Total 212,097 - 145,380,375 - - - 212,097 - 145,380,375 (339,011) - 2,293,915 the nine months ended September 30, 2021		Total 145,380,375 -
			145,380,375
			2,293,915
	Others Adjustment and Elimination Total 11,412 - 371,730,854 - - - 11,412 - 371,730,854 (521,883) - 6,147,618 the nine months ended September 30, 2020		Total 371,730,854 -
			371,730,854
			6,147,618
	Others 1,115,168 - 1,115,168 (730,881) - - -	Adjustment and Elimination - - - - - - -	Total 382,817,282 -
			382,817,282
			9,531,028
			-
			-
			-

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's accounting policies are similar to those described in Note 2 “Significant accounting policies”. Reportable segment profit or loss is measured by operating profit or loss before taxation, and is used as the base of performance evaluation.

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

〜 69 〜

AI assistant

INVENTEC — Interim / Quarterly Report 2021

52026_rns_2021-11-25_2bde958d-962b-4c73-be04-48099677f51a.pdf

INVENTEC CORPORATION AND SUBSIDIARIES

CONSOLIDATED FINANCIAL STATEMENTS

Table of contents

KPMG

Introduction

Scope of Review

Basis for Qualified Conclusion

Qualified Conclusion

KPMG

Notes to Readers

INVENTEC CORPORATION AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

September 30, 2021, December 31, 2020, and September 30, 2020

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

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

For the Three months and nine months ended September 30, 2021 and 2020

(Expressed in Thousands of New Taiwan Dollars)

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

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

For the Nine Months Ended September 30, 2021 and 2020

Equity attributable to owners of parent

INVENTEC CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENT OF CASH FLOWS

For the Nine Months Ended September 30, 2021 and 2020

INVENTEC CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENT OF CASH FLOWS (CONT'D)

For the Nine Months Ended September 30, 2021 and 2020

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

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

September 30, 2021 and 2020

(1) Company History

(2) Financial Statements Authorization Date and Authorization Process

(3) New Standards, Amendments and Interpretations Adopted:

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

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT'D)

(4) Summary of Significant Accounting Policies

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

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT'D)

September 30, 2021 and 2020

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

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

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT'D)

September 30, 2021 and 2020

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

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

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT'D)

September 30, 2021 and 2020

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

(d) Employee benefits

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

(6) Explanation to Significant Accounts

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

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT'D)

September 30, 2021 and 2020

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

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

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

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

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT'D)

September 30, 2021 and 2020

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

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

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

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

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT'D)

September 30, 2021 and 2020

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

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

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

(f) Investments accounted for using equity method

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

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT'D)

September 30, 2021 and 2020

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

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT'D)

September 30, 2021 and 2020

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

INVENTEC Interim / Quarterly Report 2021