INX — Audit Report / Information 2021

Nov 15, 2021

INNOLUX CORPORATION AND SUBSIDIARIES

CONSOLIDATED FINANCIAL STATEMENTS AND

INDEPENDENT AUDITORS’ REPORT

DECEMBER 31, 2021 AND 2020

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INDEPENDENT AUDITORS’ REPORT

To the Board of Directors and Shareholders of Innolux Corporation:

Opinion

We have audited the accompanying consolidated balance sheets of Innolux Corporation and its subsidiaries (the “Group”) as at December 31, 2021 and 2020, and the related consolidated statements of comprehensive income, of changes in equity and of cash flows for the years then ended, and notes to the consolidated financial statements, including a summary of significant accounting policies.

In our opinion, based on our audits and the reports of other auditors (please refer to the Other matter section), the accompanying consolidated financial statements present fairly, in all material respects, the consolidated financial position of the Group as at December 31, 2021 and 2020, and its consolidated financial performance and its consolidated cash flows for the years then ended in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and International Financial Reporting Standards, International Accounting Standards, IFRIC Interpretations, and SIC Interpretations as endorsed by the Financial Supervisory Commission.

Basis for opinion

We conducted our audits in accordance with the Regulations Governing Auditing and Attestation of Financial Statements by Certified Public Accountants and generally accepted auditing standards in the Republic of China. Our responsibilities under those standards are further described in the auditors’ responsibilities for the audit of the consolidated financial statements section of our report. We are independent of the Group in accordance with the Norm of Professional Ethics for Certified Public Accountants of the Republic of China, and we have fulfilled our other ethical responsibilities in accordance with these requirements. Based on our audits and the reports of other auditors (please refer to the Other matter section), we believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Key audit matters

Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the Group’s 2021 consolidated financial statements. These matters were addressed in the context

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of our audit of the consolidated financial statements as a whole and, in forming our opinion thereon, we do not provide a separate opinion on these matters.

The key audit matters in relation to the consolidated financial statements of the Group for the year ended December 31, 2021 are outlined as follows:

Inventory valuation

Description

The industry is characterized in its significant fluctuations closely in connection with the economic environment. As the technology evolves rapidly, the launch of new products may cause major changes in consumer demand or due to the update of production approach, the existing products may become obsolete or no longer meet market needs. The Group has evaluated the inventory by taking into account of allowance, obsoleteness or trivial sales amount and the cost has been written down to the net realizable value. The abovementioned allowance for inventory valuation losses mainly arose from the excess of the cost of inventory over the net realizable value of inventory. For details of inventory, please refer to Note 6(6). There is a risk of the excess of the cost of inventory over the net realizable value of inventory as a result of that the amounts of inventories are material and the sales prices of related products may have significant fluctuations because of market demand; we consider inventory valuation a key audit matter.

How our audit addressed the matter

We compared financial statements to ascertain the provision policy on allowance for inventory valuation losses has been consistently applied and assessed the reasonableness of the provision policy; obtained the net realizable value report of inventory used by management for evaluation and obtained an understanding of sales price basis adopted by management for abovementioned inventory along with the related supporting documents; sampled individual inventory item numbers and checked them against historical data on inventory clearance and discount to assess the reasonableness of net realizable value and the appropriateness of valuation basis.

Valuation and impairment of goodwill and property, plant and equipment

Description

For details of the impairment valuation of goodwill and property, plant and equipment, please refer to Notes 6(8) and 6(11).

The Group measures the recoverable amount of the cash generating unit to determine whether goodwill

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and property, plant and equipment may be impaired based on future cash flows with appropriate discount rates, and future cash flows are estimated based on how assets are utilized, duration years of assets and projected income and expenses in the future. As these estimates, which are uncertain and dependent upon significant judgment from management, involve several assumptions such as determination of discount rates, expected growth rate and future financial projections, we consider management’s assessment of impairment of goodwill and property, plant and equipment a key audit matter.

How our audit addressed the matter

We assessed the key assumptions used by management in estimating expected future cash flows, including the reasonableness of expected operating revenue, gross profit, changes in expenses, and the basic assumptions applied in expected future cash flows. We also examined the parameters of discount rates, including the risk-free rate of return on equity capital, the risk factor of the industry and the rate of return on similar investments in the market.

Other matter – Reference to the audits of other auditors

We did not audit the financial statements of certain subsidiaries and investments accounted for under the equity method of the Company for the year ended December 31, 2021, which were audited by other auditors. Therefore, our opinion expressed herein, insofar as it relates to the amounts and Note 13 included in respect of these subsidiaries and investments accounted for under the equity method, is based solely on the reports of the other auditors. Total assets of these subsidiaries and the balances of these investments accounted for under the equity method included in the Group’s consolidated financial statements amounted to NT$17,666,179 thousand, constituting 3.8% of the consolidated total assets of the Group as at December 31, 2021, and sales revenue of these subsidiaries included in the Group’s consolidated financial statements amounted to NT$25,269,413 thousand, constituting 7.2% of the consolidated total sales revenue of the Group for the year ended December 31, 2021.

Other matter – Parent company only financial reports

We have audited and expressed an unqualified opinion with other matter paragraph on the parent company only financial statements of Innolux Corporation as at and for the years ended December 31, 2021 and 2020.

Responsibilities of management and those charged with governance for the consolidated financial statements

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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 the International Financial Reporting Standards, International Accounting Standards, IFRIC Interpretations, and SIC Interpretations as endorsed by the Financial Supervisory Commission, and for such internal control as management determines is necessary to enable the preparation of consolidated financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the consolidated financial statements, management is responsible for assessing the Group’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Group or to cease operations, or has no realistic alternative but to do so.

Those charged with governance, including audit committee, are responsible for overseeing the Group’s financial reporting process.

Auditors’ responsibilities for the audit of the consolidated financial statements

Our objectives are to obtain reasonable assurance about whether the consolidated financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors’ report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with the generally accepted auditing standards in the Republic of China will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these consolidated financial statements.

As part of an audit in accordance with the generally accepted auditing standards in the Republic of China, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:

• A. Identify and assess the risks of material misstatement of the consolidated financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the

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override of internal control.

• B. Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Group’s internal control.

• C. Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.

• D. Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Group’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditors’ report to the related disclosures in the consolidated financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditors’ report. However, future events or conditions may cause the Group to cease to continue as a going concern.

E.

Evaluate the overall presentation, structure and content of the consolidated financial statements, including the disclosures, and whether the consolidated financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

• F. Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the Group to express an opinion on the consolidated financial statements. We are responsible for the direction, supervision and performance of the group audit. We remain solely responsible for our audit opinion.

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.

From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the consolidated financial statements for the year ended

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December 31, 2021 and are therefore the key audit matters. We describe these matters in our auditors’ report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.

PricewaterhouseCoopers, Taiwan

February 11, 2022

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The accompanying consolidated financial statements are not intended to present the financial position and results of operations and cash flows in accordance with accounting principles generally accepted in countries and jurisdictions other than the Republic of China. The standards, procedures and practices in the Republic of China governing the audit of such financial statements may differ from those generally accepted in countries and jurisdictions other than the Republic of China. Accordingly, the accompanying consolidated financial statements and report of independent accountants are not intended for use by those who are not informed about the accounting principles or auditing standards generally accepted in the Republic of China, and their applications in practice.

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INNOLUX CORPORATION AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS DECEMBER 31, 2021 AND 2020

(Expressed in thousands of New Taiwan dollars)

Assets	Notes 6(1) 6(2) 6(4) 6(5) 7 6(2) 6(6) 8 6(2) 6(3) 6(4) 6(7) 6(8), 7 and 8 6(9) 6(10) 6(11) 6(29) 6(8) and 8	December 31, 2021 $ 28,667,746 17,358,003 22,633,195 60,528,170 1,351,375 2,378,705 38,278,221 4,345,185 280,623 175,821,223 4,326,863 9,848,126 74,224,423 1,442,684 162,607,908 5,146,768 471,655 17,520,594 3,412,138 12,697,208 291,698,367 $ 467,519,590	December 31, 2020
Current Assets 1100 Cash and cash equivalents 1110 Financial assets at fair value through profit or loss - current 1136 Financial assets at amortized cost - current 1170 Accounts receivable, net 1180 Accounts receivable, net - related parties 1200 Other receivables 130X Inventory 1410 Prepayments 1479 Other current assets 11XX Total current assets Non-current assets 1510 Financial assets at fair value through profit or loss - non-current 1517 Financial assets at fair value through other comprehensive income - non- current 1535 Financial assets at amortised cost - non -current 1550 Investments accounted for under equity method 1600 Property, plant and equipment 1755 Right-of-use assets 1760 Investment property, net 1780 Intangible assets 1840 Deferred income tax assets 1990 Other non-current assets 15XX Total non-current assets 1XXX Total assets			$ 26,532,083 706,299 42,687,746 49,897,758 2,224,157 2,980,756 30,865,270 3,119,861 148,377
			159,162,307
			3,480,182 4,887,681 - 1,246,234 178,901,675 5,547,909 499,444 17,506,984 7,121,962 1,205,459
			220,397,530
			$ 379,559,837

(Continued)

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INNOLUX CORPORATION AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS DECEMBER 31, 2021 AND 2020

(Expressed in thousands of New Taiwan dollars)

Liabilities and Equity

Notes December 31, 2021 December 31, 2020 6(2) $ 198,896 $ 3,222,134 52,321,478 45,839,540 7 2,190,308 1,720,931 6(12) and 7 36,514,228 25,677,541 2,196,227 1,581,635 6(17) and 9 7,541,182 6,152,983 639,969 201,073 6(13)(14) 8,770,385 19,367,206 6,180,834 5,407,605 116,553,507 109,170,648 6(13) - 5,374,293 6(14) 35,592,540 20,384,502 6(29) 2,003,404 1,608,990 4,391,331 4,894,091 6(15) 4,181,877 560,267 46,169,152 32,822,143 162,722,659 141,992,791 6(18) 105,596,201 97,110,720 - 2,293,612 6(19) 103,287,482 99,707,996 6(20) 8,062,551 7,870,713 6,059,671 7,325,437 84,545,631 29,120,853 6(21) ( 3,204,136) ( 6,059,671 ) 304,347,400 237,369,660 449,531 197,386 304,796,931 237,567,046 $ 467,519,590 $ 379,559,837

Current Liabilities 2120 Financial liabilities at fair value through profit or loss - current 2170 Accounts payable 2180 Accounts payable - related parties 2200 Other payables 2230 Current income tax liabilities 2250 Provisions - current 2280 Lease liabilities - current 2320 Long-term liabilities, current portion 2399 Other current liabilities 21XX Total current liabilities Non-current liabilities 2530 Corporate bonds payable 2540 Long-term borrowings 2570 Deferred income tax liabilities 2580 Lease liabilities - non-current 2600 Other non-current liabilities 25XX Total non-current liabilities 2XXX Total liabilities Equity attributable to owners of the parent Share capital 3110 Share capital - common stock 3130 Certificate of entitlement to new shares from convertible bond 3200 Capital surplus Retained earnings 3310 Legal reserve 3320 Special reserve 3350 Unappropriated retained earnings 3400 Other equity interest 31XX Equity attributable to owners of the parent 36XX Non-controlling interests 3XXX Total equity 3X2X Total liabilities and equity

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

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INNOLUX CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

YEARS ENDED DECEMBER 31, 2021 AND 2020

(Expressed in thousands of New Taiwan dollars, except for earnings per share amounts)

Items

Notes 2021 2020 6(22) and 7 $ 350,076,690 $ 269,911,051 6(6)(27) and 7 ( 258,577,010) ( 246,077,953) 91,499,680 23,833,098 6(27) ( 5,417,962) ( 3,383,316) ( 8,323,993) ( 6,488,472) ( 15,044,650) ( 12,149,513) ( 28,786,605) ( 22,021,301) 62,713,075 1,811,797 6(23) 928,364 383,137 6(24) 3,441,361 2,714,290 6(25) ( 3,759,802) ( 1,502,138) 6(26) ( 977,035) ( 1,026,516) 6(7) 65,134 176,561 ( 301,978) 745,334 62,411,097 2,557,131 6(29) ( 4,865,974) ( 917,307) $ 57,545,123 $ 1,639,824

4000 Sales revenue 5000 Operating costs 5900 Net operating margin Operating expenses 6100 Selling expenses 6200 General and administrative expenses 6300 Research and development expenses 6000 Total operating expenses 6900 Operating profit Non-operating income and expenses 7100 Interest income 7010 Other income 7020 Other gains and losses 7050 Finance costs 7060 Share of profit of associates and joint ventures accounted for under equity method 7000 Total non-operating income and expenses 7900 Profit before income tax 7950 Income tax expense 8200 Profit for the year

(Continued)

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INNOLUX CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME YEARS ENDED DECEMBER 31, 2021 AND 2020

(Expressed in thousands of New Taiwan dollars, except for earnings per share amounts)

Items	Notes 2021 6(15) ( $ 414,516) 6(21) 4,834,177 6(29) ( 623,501) ( 3,796,160 6(21) ( 950,206) 6(7)(21) ( 34,241) ( ( 984,447) $ 2,811,713 $ 60,356,836 $ 57,534,461 $ 10,662 $ 60,347,656 $ 9,180 6(30) $ 5.53 $ 5.34	2020 $ 57,639 881,733 9,886) 929,486 681,556 62,442) 619,114 $ 1,548,600 $ 3,188,424 $ 1,636,144 $ 3,680 $ 3,184,147 $ 4,277 $ 0.17 $ 0.17
Other comprehensive income (net) Components of other comprehensive income that will not be reclassified to profit or loss 8311 Remeasurement of defined benefit plans 8316 Unrealized gains on financial assets at fair value through other comprehensive income 8349 Income tax related to components of other comprehensive income that will not be reclassified to profit or loss 8310 Components of other comprehensive income that will not be reclassified to profit or loss Components of other comprehensive (loss) income that will be reclassified to profit or loss 8361 Financial statements translation differences of foreign operations 8370 Share of other comprehensive loss of associates and joint ventures accounted for under equity method 8360 Components of other comprehensive (loss) income that will be reclassified to profit or loss 8300 Other comprehensive income for the year, net of tax 8500 Total comprehensive income for the year Profit attributable to: 8610 Owners of the parent 8620 Non-controlling interest Other comprehensive income attributable to: 8710 Owners of the parent 8720 Non-controlling interest Earnings per share (in dollars) 9750 Basic earnings per share 9850 Diluted earnings per share

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

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INNOLUX CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY YEARS ENDED DECEMBER 31, 2021 AND 2020

(Expressed in thousands of New Taiwan dollars)

2020 Balance at January 1 Profit for the year Other comprehensive income for the year Total comprehensive income Appropriation of 2019 earnings: Special reserve Cash dividends from capital surplus Recognition of change in equity of associates in proportion to the Group's ownership Conversion of convertible bonds Recognition of changes in ownership interests in subsidiaries Disposal of investments in equity instruments measured at fair value through other comprehensive income Treasury shares transferred to employees Decrease in non-controlling interests Others Balance at December 31 2021 Balance at January 1 Profit for the year Other comprehensive (loss) income for the year Total comprehensive (loss) income Appropriation of 2020 earnings: Legal reserve Special reserve Cash dividends Cash dividends from capital surplus Recognition of change in equity of associates in proportion to the Group's ownership Conversion of convertible bonds Recognition of changes in ownership interests in subsidiaries Decrease in non-controlling interests Establishment of subsidiaries Difference between consideration and carrying amount of subsidiaries acquired Difference between consideration and carrying amount of subsidiaries disposed Disposal of investments in equity instruments measured at fair value through other comprehensive income Others Balance at December 31	Notes					Equityattributable to	Equityattributable to	Equityattributable to	Equityattributable to	owners of theparen	t	t	t				Non-controlling interests	Total
		Share Capital			Capital surplus			Retained Earnings		Unappropriated retained earnings	Other EquityInterest Financial statements translation differences of foreign operations Unrealised gains (losses) from financial assets measured at fair value through other comprehensive income			Treasuryshares ( $ 618,580) - - - - - - - - - 618,580 - - $ - $ - - - - - - - - - - - - - - - - - $ -	Total
		Common stock $ 97,110,720 - - - - - - - - - - - - $ 97,110,720 $ 97,110,720 - - - - - - - - 8,485,481 - - - - - - - $ 105,596,201	Certificate of entitlement to new shares from convertible bond			Legal reserve		Special reserve			Financial statements translation differences of foreign operations
	6(21) 6(20) 6(19)(20) 6(19) 6(18)(19) 6(19) 6(3)(21) 6(18)(19) 6(19) 6(21) 6(20) 6(19)(20) 6(19) 6(18)(19) 6(19) 6(19) 6(19) 6(19) 6(3)(21)		$ - - - - - - - 2,293,612 - - - - - $ 2,293,612 $ 2,293,612 - - - - - - - - ( 2,293,612) - - - - - - - $ -		$ 100,362,379 - - - - ( 963,107 ) 21,005 243,805 38 - 42,182 - 1,694 $ 99,707,996 $ 99,707,996 - - - - - - ( 1,047,090 ) 1,602 4,544,732 11,722 - ( 5,300 ) ( 364 ) 64,494 - 9,690 $ 103,287,482	$ 7,870,713 - - - - - - - - - - - - $ 7,870,713 $ 7,870,713 - - - 191,838 - - - - - - - - - - - - $ 8,062,551		$ 4,663,463 - - - 2,661,974 - - - - - - - - $ 7,325,437 $ 7,325,437 - - - - ( 1,265,766 ) - - - - - - - - - - - $ 6,059,671		$ 29,864,446 1,636,144 46,111 1,682,255 ( 2,661,974) - - - - 236,126 - - - $ 29,120,853 $ 29,120,853 57,534,461 ( 331,603) 57,202,858 ( 191,838) 1,265,766 ( 3,141,271) - - - - - - - - 289,263 - $ 84,545,631	($ 9,497,686 ) - 618,517 618,517 - - - - - - - - - ($ 8,879,169 ) ($ 8,879,169 ) - ( 982,975 ) ( 982,975 ) - - - - - - - - - - - - - ($ 9,862,144 )		$ 2,172,249 - 883,375 883,375 - - - - - ( 236,126 ) - - - $ 2,819,498 $ 2,819,498 - 4,127,773 4,127,773 - - - - - - - - - - - ( 289,263 ) - $ 6,658,008		$ 231,927,704 1,636,144 1,548,003 3,184,147 - ( 963,107) 21,005 2,537,417 38 - 660,762 - 1,694 $ 237,369,660 $ 237,369,660 57,534,461 2,813,195 60,347,656 - - ( 3,141,271) ( 1,047,090) 1,602 10,736,601 11,722 - ( 5,300) ( 364) 64,494 - 9,690 $ 304,347,400		$ 182,325 3,680 597 4,277 - - - - 14,031 - - ( 3,247) - $ 197,386 $ 197,386 10,662 ( 1,482) 9,180 - - - - - - 61,097 ( 2,068) 45,000 ( 37,356) 176,292 - - $ 449,531	$ 232,110,029 1,639,824 1,548,600 3,188,424 - ( 963,107) 21,005 2,537,417 14,069 - 660,762 ( 3,247) 1,694 $ 237,567,046 $ 237,567,046 57,545,123 2,811,713 60,356,836 - - ( 3,141,271) ( 1,047,090) 1,602 10,736,601 72,819 ( 2,068) 39,700 ( 37,720) 240,786 - 9,690 $ 304,796,931

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

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INNOLUX CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

YEARS ENDED DECEMBER 31, 2021 AND 2020

(Expressed in thousands of New Taiwan dollars)

CASH FLOWS FROM OPERATING ACTIVITIES Profit before tax Adjustments Adjustments to reconcile profit (loss) Depreciation and amortization Net loss (gain) on financial assets or liabilities at fair value through profit or loss Compensation cost of share-based payments Expected credit loss Share of profit of associates and joint ventures accounted for under equity method Loss on disposal of Investments Loss (gain) on disposal of property, plant and equipment Gain on lease modification Interest expense Interest income Dividend income Foreign exchange gain Others Changes in operating assets and liabilities Changes in operating assets Financial assets /liabilities at fair value through profit or loss Accounts receivable Accounts receivable - related parties Other receivables Inventories Prepayments Other current assets Changes in operating liabilities Accounts payable Accounts payable - related parties Other payables Provisions - current Other current liabilities Other non-current liabilities Cash inflow generated from operations Cash paid for income tax Net cash flows from operating activities

Notes 2021 2020 $ 62,411,097 $ 2,557,131 6(27) 36,300,651 35,568,103 1,169,890 ( 267,827 ) 6(27) 19,280 395,669 12(2) 53,191 - 6(7) ( 65,134 ) ( 176,561 ) 6(25) 109,342 - 6(25) 204,872 ( 7,709 ) ( 966 ) - 6(26) 977,035 1,026,516 6(23) ( 928,364 ) ( 383,137 ) 6(24) ( 812,648 ) ( 198,526 ) ( 28,043 ) ( 250,864 ) 4,599 - 706,373 ( 754,282 ) ( 10,699,445 ) ( 10,230,321 ) 872,782 264,362 179,463 659,865 ( 7,412,951 ) ( 426,194 ) ( 2,964,654 ) 218,974 ( 129,389 ) ( 33,856 ) 6,497,780 ( 1,594,325 ) 469,377 ( 2,064,060 ) 10,418,353 ( 225,269 ) 1,388,199 ( 622,944 ) 77,578 562,150 3,772,292 ( 49,414 ) 102,590,560 23,967,481 ( 838,362 ) ( 1,563,328 ) 101,752,198 22,404,153

(Continued)

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INNOLUX CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

YEARS ENDED DECEMBER 31, 2021 AND 2020

(Expressed in thousands of New Taiwan dollars)

CASH FLOWS FROM INVESTING ACTIVITIES Acquisition of financial assets or liabilities at fair value through profit or loss Proceeds from disposal of financial assets at fair value through profit or loss Acquisition of investments in financial assets measured at fair value through other comprehensive income Proceeds from disposal of financial assets measured at fair value through other comprehensive income Decrease (increase) in financial assets at amortized cost -current Acqusition of financial assets at amortized cost - non-current Proceeds from disposal of financial assets at amortized cost Proceeds from repayments of financial assets at amortised cost Increase in refundable deposits Increase in investment accounted for under equity method Joint venture to establish a subsidiary Acquisition of property, plant and equipment Proceeds from disposal of property, plant and equipment Acquisition of intangible assets Interest received Dividends received Net cash flows used in investing activities CASH FLOWS FROM FINANCING ACTIVITIES Proceeds from long-term borrowings Repayments of long-term borrowings Proceeds from issuance of bonds Interest paid Repayment of the principal portion of lease liabilities Cash dividends paid to non-controlling interests Treasury shares transferred to employees Repurchase of bonds payable Cash paid from capital surplus Cash dividends paid Proceeds from acquisition of shares of subsidiaries Proceeds from disposal of shares of subsidiaries Employee share options exercised Others Net cash flows (used in) from financing activities Effect of changes in foreign currency exchange Net increase (decrease) in cash and cash equivalents Cash and cash equivalents at beginning of year Cash and cash equivalents at end of year

Notes 2021 2020 ( $ 32,005,794 ) ( $ 447,862 ) 16,249,815 1,307,261 ( 518,942 ) ( 7,328 ) 6(3) 363,588 277,836 18,964,520 ( 22,988,048 ) ( 110,139,087 ) - 31,170,000 - 5,658,284 - ( 1,163,436 ) ( 447,386 ) ( 300,000 ) - 4(3) 39,700 - 6(31) ( 28,138,827 ) ( 20,673,368 ) 78,968 258,342 6(11) ( 21,937 ) ( 26,076 ) 369,065 391,537 972,500 420,986 ( 98,421,583 ) ( 41,934,106 ) 23,850,000 20,000,000 ( 19,309,333 ) ( 16,046,000 ) - 8,900,934 ( 806,097 ) ( 676,496 ) ( 241,061 ) ( 308,894 ) - ( 3,247 ) - 279,162 6(13) ( 104,455 ) - 6(20) ( 1,047,090 ) ( 963,107 ) 6(20) ( 3,141,271 ) - 4(3) ( 37,720 ) - 4(3) 240,786 - 57,775 - 6(19) 9,690 1,694 ( 528,776 ) 11,184,046 ( 666,176 ) 145,015 2,135,663 ( 8,200,892 ) 26,532,083 34,732,975 $ 28,667,746 $ 26,532,083

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

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INNOLUX CORPORATION AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

YEARS ENDED DECEMBER 31, 2021 AND 2020

(Expressed in thousands of New Taiwan dollars, except as otherwise indicated)

1. HISTORY AND ORGANIZATION

• (1) Innolux Corporation (the “Company”) was organized on January 14, 2003 under the Act for Establishment and Administration of Science Parks in the Republic of China (R.O.C.). The Company was listed on the Taiwan Stock Exchange Corporation (the “TSEC”) in October 2006. The Company merged with TPO Displays Corporation and Chi Mei Optoelectronics Corporation on March 18, 2010, with the Company as the surviving entity.

• (2) The Company and its subsidiaries (the “Group”) engage in the research, development, design, manufacture and sales of TFT-LCD panels, modules and monitors of LCD, color filter, and low temperature poly-silicon TFT-LCD.

2. THE DATE OF AUTHORIZATION FOR ISSUANCE OF THE CONSOLIDATED FINANCIAL

STATEMENTS AND PROCEDURES FOR AUTHORIZATION

These consolidated financial statements were authorized for issuance by the Board of Directors on February 11, 2022.

1. APPLICATION OF NEW STANDARDS, AMENDMENTS AND INTERPRETATIONS (1) Effect of the adoption of new issuances of or amendments to International Financial Reporting Standards (“IFRS”) as endorsed by the Financial Supervisory Commission (“FSC”)

New standards, interpretations and amendments endorsed by the FSC effective from 2021 are as follows:

follows:
New Standards,Interpretations andAmendments	Effective date by International Accounting StandardsBoard
Amendments to IFRS 4, ‘Extension of the temporary exemption from applying IFRS 9’ Amendments to IFRS 9, IAS 39, IFRS 7, IFRS 4 and IFRS 16, ‘Interest Rate Benchmark Reform - Phase 2’ Amendment to IFRS 16, ‘Covid-19 - related rent concessions beyond 30 June 2021’	January 1, 2021 January 1, 2021 April 1, 2021 (Note)

Note ： Earlier application from January 1, 2021 is allowed by the FSC.

The above standards and interpretations have no significant impact to the Group’s financial condition and financial performance based on the Group’s assessment.

(2) Effect of new issuances of or amendments to IFRSs as endorsed by the FSC but not yet adopted by

the Group

New standards, interpretations and amendments endorsed by the FSC effective from 2022 are as follows:

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	Effective date by
	International Accounting
New Standards, Interpretations and Amendments	Standards Board
Amendments to IFRS 3, ‘Reference to the conceptual framework’	January 1, 2022
Amendments to IAS 16, ‘Property, plant and equipment: proceeds	January 1, 2022
before intended use’
Amendments to IAS 37, ‘Onerous contracts - cost of fulfilling a contract	January 1, 2022
Annual improvements to IFRSs 2018-2020 cycle	January 1, 2022

The above standards and interpretations have no significant impact to the Group’s financial condition and financial performance based on the Group’s assessment.

(3) IFRSs issued by IASB but not yet endorsed by the FSC

New standards, interpretations and amendments issued by IASB but not yet included in the IFRSs as endorsed by the FSC are as follows:

endorsed by the FSC are as follows:
New Standards,Interpretations andAmendments	Effective date by International Accounting StandardsBoard
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’ Amendments to IFRS 17, 'Insurance contracts' Amendments to IFRS 17, 'Initial application of IFRS 17 and IFRS 9 - comparative information' 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’	To be determined by International Accounting January 1, 2023 January 1, 2023 January 1, 2023 January 1, 2023 January 1, 2023 January 1, 2023 January 1, 2023

Except for the following, the above standards and interpretations have no significant impact to the Group’s financial condition and financial performance based on the Group’s assessment. Amendments to IAS 1, ‘Classification of liabilities as current or non-current’

The amendments clarify that classification of liabilities depends on the rights that exist at the end of the reporting period. An entity shall classify a liability as current when it does not have a right at the end of the reporting period to defer settlement of the liability for at least twelve months after the reporting period. Also, the amendments define ‘settlement’ as the extinguishment of a liability with cash, other economic resources or an entity’s own equity instruments.

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4. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The principal accounting policies applied in the preparation of these consolidated financial statements are set out below. These policies have been consistently applied to all the periods presented, unless otherwise stated.

(1) Compliance statement

The consolidated financial statements of the Group have been prepared in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers, International Financial Reporting Standards, International Accounting Standards, IFRIC Interpretations, and SIC Interpretations as endorsed by the FSC (collectively referred herein as the “IFRSs”).

• (2) Basis of preparation

• A. Except for the following items, these consolidated financial statements have been prepared under the historical cost convention:

  • (a) Financial assets and financial liabilities (including derivative instruments) at fair value through profit or loss.

  • (b) Financial assets at fair value through other comprehensive income.

  • (c) Defined benefit liabilities recognized based on the net amount of pension fund assets less present value of defined benefit obligations.

• B. The preparation of financial statements in conformity with IFRSs requires the use of certain critical accounting estimates. It also requires management to exercise its judgment in the process of applying the Group’s accounting policies. The areas involving a higher degree of judgment or complexity, or areas where assumptions and estimates are significant to the consolidated financial statements are disclosed in Note 5.

(3) Basis of consolidation

• A. Basis for preparation of consolidated financial statements

• (a) All subsidiaries are included in the Group’s consolidated financial statements. Subsidiaries are all entities controlled by the Group. The Group controls an entity when the Group is exposed, or has rights, to variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity. Consolidation of subsidiaries begins from the date the Group obtains control of the subsidiaries and ceases when the Group loses control of the subsidiaries.

• (b) Significant inter-company transactions, balances and unrealized gains or losses on transactions between companies within the Group are eliminated. Accounting policies of subsidiaries have been adjusted where necessary to ensure consistency with the policies adopted by the Group.

• (c) Profit or loss and each component of other comprehensive income are attributed to the owners of the parent and to the non-controlling interests. Total comprehensive income is attributed to the owners of the parent and to the non-controlling interests even if this results in the noncontrolling interests having a deficit balance.

• (d) Changes in a parent’s ownership interest in a subsidiary that do not result in the parent losing

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control of the subsidiary (transactions with non-controlling interests) are accounted for as equity transactions, i.e. transactions with owners in their capacity as owners. Any difference between the amount by which the non-controlling interests are adjusted and the fair value of the consideration paid or received is recognized directly in equity.

• (e) When the Group loses control of a subsidiary, the Group remeasures any investment retained in the former subsidiary at its fair value. Any difference between fair value and carrying amount is recognized in profit or loss. All amounts previously recognized in other comprehensive income in relation to the subsidiary would be reclassified to profit or loss when the related assets or liabilities are disposed of.

• B. Subsidiaries included in the consolidated financial statements:

Main Business Name of Investor Name ofSubsidiary Activities Innolux Corporation Innolux Holding Limited Investment holdings Keyway Investment Management Limited Investment holdings Landmark International Ltd. Investment holdings Toppoly Optoelectronics (B.V.I.) Ltd. Investment holdings Innolux Hong Kong Holding Limited Investment holdings Leadtek Global Group Limited Distribution company Yuan Chi Investment Co., Ltd. Investment company InnoJoy Investment Corporation Investment company Innolux Japan Co., Ltd. Investment, R&D and distribution company Innolux Singapore Holding Pte. Ltd. Investment holdings InnoCare Optoelectronics Corporation Investment, R&D, manufacturing and distribution company GIO Optoelectronics Corp. Investment, R&D, manufacturing and distribution company INStek Corporation R&D, manufacturing and distribution company Innolux Holding Limited Rockets Holding Limited Investment holdings Suns Holding Ltd Investment holdings Lakers Trading Limited Distribution company

December December 31,2021 31,2020 Description 100 100 - 100 100 - 100 100 - 100 100 - 100 100 - - 100 (c) 100 100 - 100 100 - 54 54 - 100 100 - 59 100 (d) 76 63 (e) 40 - (f) 100 100 - 100 100 - - 100 (h) Ownership (%)

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----- Start of picture text -----

Main Ownership (%)
Business December December
Name of Investor Name of Subsidiary Activities 31, 2021 31, 2020 Description
----- End of picture text -----

Name of Investor	Name ofSubsidiary	Business Activities	December 31, 2021	December 31,2020	Description
Keyway Investment	Foshan Innolux Logistics	Warehousing	100	100	-
Management Limited	Ltd.	company
Landmark	Ningbo Innolux	Processing company	100	100	-
International Ltd.	Optoelectronics Ltd.
	Foshan Innolux	Processing company	100	100	-
	Optoelectronics Ltd.
	Ningbo Innolux Display Ltd.	Processing company	100	100	-
Toppoly	Toppoly Optoelectronics	Investment holdings	100	100	-
Optoelectronics	(Cayman) Ltd.
(B.V.I.) Ltd.
Innolux Hong Kong	Innolux Hong Kong Limited	Distribution	100	100	-
Holding Limited		company
	Innolux Japan Co., Ltd.	Investment, R&D	46	46	-
		and distribution
		company
	CarUX Holding Limited	Investment holdings	100	100	-
InnoJoy Investment	Inno Capital Corporation	Investment company	100	-	(g)
Corporation
Innolux Japan Co.,	Innolux USA, Inc.	Distribution	100	100	-
Ltd.		company
Innolux Singapore	INNOLUX	Distribution	100	100	-
Holding Pte. Ltd.	OPTOELECTRONICS	company
	INDIA PRIVATE LIMITED
	INNOLUX	Manufacturing and	100	100	-
	OPTOELECTRONICS	distribution company
	PHILIPPINES CORP.
	INNOLUX	Manufacturing and	-	100	(i)
	OPTOELECTRONICS	distribution company
	MALAYSIA SDN. BHD
Rockets Holding	Stanford Developments	Investment holdings	100	100	-
Limited	Limited
	Nets Trading Ltd.	Investment company	100	100	-
Suns Holding Ltd	Warriors Technology	Investment company	100	100	-
	Investments Ltd
Toppoly	Nanjing Innolux Technology	Distribution	100	100	-
Optoelectronics	Ltd.	company
(Cayman) Ltd.
	Nanjing Innolux	Processing company	100	100	-
	Optoelectronics Ltd.
CarUX Holding	CARUX TECHNOLOGY	Investment and	100	100	-
Limited	PTE. LTD.	distribution company
CARUX	Innolux Optoelectronics	Investment holdings	100	100	-
TECHNOLOGY	Hong Kong Holding Limited
PTE. LTD.

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Main Ownership (%)
Business December December
Name of Investor Name of Subsidiary Activities 31, 2021 31, 2020 Description
----- End of picture text -----

Name of Investor	Name ofSubsidiary	Business Activities	December 31, 2021	December 31,2020	Description
CARUX	Innolux Europe B.V.	Investment,	100	100	-
TECHNOLOGY		distribution, and
PTE. LTD.		R&D testing
		company
	CarUX Technology Inc.	R&D, manufacturing	100	100	-
		and distribution
		company
Innolux	Shanghai Innolux	Processing company	100	100	-
Optoelectronics Hong	Optoelectronics Ltd.
Kong Holding
Limited
Innolux Europe B.V.	Innolux Technology	Testing and	100	100	-
	Germany GmbH	maintenance
		company
Stanford	Innocom Technology	Processing company	100	100	-
Developments	(Shenzhen) Co., Ltd.
Limited
Ningbo Innolux	Ningbo CarUX Technology	Processing company	100	-	(a)
Optoelectronics	Ltd.
Ltd.
Innocom Technology	Shenzhen PixinLED	R&D and	-	100	(j)
(Shenzhen) Co., Ltd.	Technology Co., LTD.	distribution company
InnoCare	InnoCare Optoelectronics	Distribution	100	100	-
Optoelectronics	Japan Co., Ltd.	company
Corporation
	InnoCare Optoelectronics	Distribution	100	100	-
	USA, INC.	company
	Ningbo Innolux Electornics	Distribution	100	100	-
	Ltd.	company
	Innocare Optoelectronics	After-sales service	100	-	(b)
	Europe B.V.	company
GIO Optoelectronics	Double Star Inc.	Investment holdings	100	100	-
Corp.
	GIO (Maanshan)	Processing company	100	100	-
	Optoelectronics Co., Ltd.

• (a) Ningbo CarUX Technology Ltd. was established in the first quarter of 2021 and was included in the consolidated financial statements since the date of establishment.

• (b) Innocare Optoelectronics Europe B.V. was established in the first quarter of 2021 and was included in the consolidated financial statements since the date of establishment.

• (c) In the second quarter of 2021, Leadtek Global Group Limited had completed liquidation and dissolution.

• (d) The Board of Directors of the Company resolved to implement InnoCare Optoelectronics Corporation’s (“InnoCare Company”) listing plan by releasing its equity interests in the subsidiary in the amount of 10,500 thousand shares in the third quarter of 2021.The Company

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had released 10,500 thousand shares of InnoCare Company and received proceeds amounting to $240,786.

  - (e) The Company repurchased outstanding domestic convertible bonds of the subsidiary, GIO Optoelectronics Corp. (“GIO Company”), in the third quarter of 2021, and the Company converted those convertible bonds into common shares of GIO Company, please refer to Note 6(13) for further information. The Company repurchased 3,575 thousand shares of outstanding common stock of GIO Company, in the fourth quarter of 2021, and paided fee amounting to $37,720.

  - (f) The Company injected capital and established a new subsidiary, INStek Corporation, and acquired 40% equity interests in the subsidiary in the third quarter of 2021. The Company had ability and had obtained half seats in the Board of Directors, which indicates that the Company has current ability to direct the relevant activities of the subsidiary. The subsidiary shall be included in the consolidated financial statements, and net cash inflow in the consolidated financial statements was $39,700.

  - (g) Inno Capital Corporation was established in the third quarter of 2021 and was included in the consolidated financial statements since the date of establishment.

  - (h) In the fourth quarter of 2021, Lakers Trading Limited had completed liquidation and dissolution.

  - (i) In the fourth quarter of 2021, INNOLUX OPTOELECTRONICS MALAYSIA SDN. BHD. had completed liquidation and dissolution.

  - (j) The Company's subsidiary, Innocom Technology (Shenzhen) Co., LTD., sold 100% equity of Shenzhen PixinLED Technology Co., LTD., in the fourth quarter of 2021.

• C. Subsidiaries not included in the consolidated financial statements: None.

• D. Adjustments for subsidiaries with different balance sheet dates: None.

• E. The restrictions on fund remittance from subsidiaries to the parent company: None.

• F. Subsidiaries that have non-controlling interests that are material to the Group: None.

• (4) Foreign currency translation

Items included in the financial statements of each of the Group’s entities are measured using the currency of the primary economic environment in which the entity operates (the “functional currency”). The consolidated financial statements are presented in New Taiwan dollars, which is the Company’s functional and the Group’s presentation currency.

• A. Foreign currency transactions and balances

• (a) Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the dates of the transactions or valuation where items are remeasured. Foreign exchange gains and losses resulting from the settlement of such transactions are recognized in profit or loss in the period in which they arise.

• (b) Monetary assets and liabilities denominated in foreign currencies at the period end are retranslated at the exchange rates prevailing at the balance sheet date. Exchange differences arising upon re-translation at the balance sheet date are recognized in profit or loss.

• (c) Non-monetary assets and liabilities denominated in foreign currencies held at fair value

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through profit or loss are re-translated at the exchange rates prevailing at the balance sheet date; their translation differences are recognized in profit or loss. Non-monetary assets and liabilities denominated in foreign currencies held at fair value through other comprehensive income are re-translated at the exchange rates prevailing at the balance sheet date; their translation differences are recognized in other comprehensive income. However, nonmonetary assets and liabilities denominated in foreign currencies that are not measured at fair value are translated using the historical exchange rates at the dates of the initial transactions.

• (d) All foreign exchange gains and losses are presented in the statement of comprehensive income within ‘other gains and losses’.

• B. Translation of foreign operations

• (a) The operating results and financial position of all the group entities and associates that have a functional currency different from the presentation currency are translated into the presentation currency as follows:

  • i. Assets and liabilities for each balance sheet presented are translated at the spot exchange rate at the date of that balance sheet;

  • ii. Income and expenses for each statement of comprehensive income are translated at average exchange rates of that period; and

  • iii. All resulting exchange differences are recognized in other comprehensive income.

• (b) When the foreign operation partially disposed of or sold is an associate, exchange differences that were recorded in other comprehensive income are proportionately reclassified to profit or loss as part of the gain or loss on sale. In addition, even when the Group retains partial interest in the former foreign associate after losing significant influence over the former foreign associate, such transactions should be accounted for as disposal of all interest in these foreign operations.

• (c) When the foreign operation partially disposed of or sold is a subsidiary, cumulative exchange differences that were recorded in other comprehensive income are proportionately transferred to the non-controlling interest in this foreign operation. In addition, even when the Group retains partial interest in the former foreign subsidiary after losing control of the former foreign subsidiary, such transactions should be accounted for as disposal of all interest in the foreign operation.

(5) Classification of current and non-current items

• A. Assets that meet one of the following criteria are classified as current assets; otherwise they are classified as non-current assets:

• (a) Assets arising from operating activities that are expected to be realized, or are intended to be sold or consumed within the normal operating cycle;

• (b) Assets held mainly for trading purposes;

• (c) Assets that are expected to be realized within twelve months from the balance sheet date;

• (d) Cash and cash equivalents, excluding restricted cash and cash equivalents and those that are to be exchanged or used to settle liabilities more than twelve months after the balance sheet

~22~

date.

• B. Liabilities that meet one of the following criteria are classified as current liabilities; otherwise they are classified as non-current liabilities:

• (a) Liabilities that are expected to be settled within the normal operating cycle;

• (b) Liabilities arising mainly from trading activities;

• (c) Liabilities that are to be settled within twelve months from the balance sheet date;

• (d) Liabilities for which the repayment date cannot be extended unconditionally to more than twelve months after the balance sheet date. Terms of a liability that could, at the option of the counterparty, result in its settlement by the issue of equity instruments do not affect its classification.

(6) Cash equivalents

• Cash equivalents refer to short-term, highly liquid investments that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value. Time deposits that meet the definition above and are held for the purpose of meeting short-term cash commitments in operations are classified as cash equivalents.

• (7) Financial assets at fair value through profit or loss

• A. Financial assets at fair value through profit or loss are financial assets that are not measured at amortized cost or fair value through other comprehensive income.

• B. On a regular way purchase or sale basis, financial assets at fair value through profit or loss are recognized and derecognized using trade date accounting.

• C. At initial recognition, the Group measures the financial assets at fair value and recognizes the transaction costs in profit or loss. The Group subsequently measures the financial assets at fair value, and recognizes the gain or loss in profit or loss.

• D. The Group recognizes the dividend income when the right to receive payment is established, future economic benefits associated with the dividend will flow to the Group and the amount of the dividend can be measured reliably.

(8) Financial assets at fair value through other comprehensive income

• A. Financial assets at fair value through other comprehensive income comprise equity securities which are not held for trading, and for which the Group has made an irrevocable election at initial recognition to recognize changes in fair value in other comprehensive income.

• B. On a regular way purchase or sale basis, financial assets at fair value through other comprehensive income are recognized and derecognized using trade date accounting.

• C. At initial recognition, the Group measures the financial assets at fair value plus transaction costs. The Group subsequently measures the financial assets at fair value: The changes in fair value of equity investments that were recognized in other comprehensive income are reclassified to retained earnings and are not reclassified to profit or loss following the derecognition of the investment. Dividends are recognized as revenue when the right to receive payment is established, future economic benefits associated with the dividend will flow to the

~23~

Group and the amount of the dividend can be measured reliably.

• (9) Financial assets at amortized cost

• A. Financial assets at amortized cost are those that meet all of the following criteria:

• (a) The objective of the Group’s business model is achieved by collecting contractual cash flows.

• (b) The assets’ contractual cash flows represent solely payments of principal and interest.

• B. On a regular way purchase or sale basis, financial assets at amortized cost are recognized and derecognized using trade date accounting.

• C. At initial recognition, the Group measures the financial assets at fair value plus transaction costs. Interest income from these financial assets is included in finance income using the effective interest method. A gain or loss is recognized in profit or loss when the asset is derecognized or impaired.

• D. The Group’s time deposits which do not fall under cash equivalents are those with a short maturity period and are measured at initial investment amount as the effect of discounting is immaterial.

• (10) Accounts and notes receivable

• A. Accounts and notes receivable entitle the Group a legal right to receive consideration in exchange for transferred goods or rendered services.

• B. The short-term accounts and notes receivable without bearing interest are subsequently measured at initial invoice amount as the effect of discounting is immaterial.

• (11) Impairment of financial assets

• For financial assets at amortized cost, at each reporting date, the Group recognizes the impairment provision for 12 months expected credit losses if there has not been a significant increase in credit risk since initial recognition or recognizes the impairment provision for the lifetime expected credit losses (ECLs) if such credit risk has increased since initial recognition after taking into consideration all reasonable and verifiable information that includes forecasts. On the other hand, for accounts receivable that do not contain a significant financing component, the Group recognizes the impairment provision for lifetime ECLs.

(12) Derecognition of financial assets

The Group derecognizes a financial asset when the contractual rights to receive the cash flows from the financial asset expire.

• (13) Operating leases (lessor)

Lease income from an operating lease (net of any incentives given to the lessee) is recognized in profit or loss on a straight-line basis over the lease term.

(14) Inventories

Inventories are stated at the lower of cost and net realizable value. Cost is determined using the weighted-average method. The cost of finished goods and work in progress comprises raw materials, direct labor, other direct costs and related production overheads (allocated based on normal operating capacity). It excludes borrowing costs. The item by item approach is used in applying the lower of cost and net realizable value. Net realizable value is the estimated selling price in the

~24~

ordinary course of business, less the estimated cost of completion and applicable variable selling expenses.

(15) Investments accounted for using equity method / associates

• A. Associates are all entities over which the Group has significant influence but not control. In general, it is presumed that the investor has significant influence, if an investor holds, directly or indirectly 20 percent or more of the voting power of the investee. Investments in associates are accounted for using the equity method and are initially recognized at cost.

• B. The Group’s share of its associates’ post-acquisition profits or losses is recognized in profit or loss, and its share of post-acquisition movements in other comprehensive income is recognized in other comprehensive income. When the Group’s share of losses in an associate equals or exceeds its interest in the associate, the Group does not recognize further losses, unless it has incurred legal or constructive obligations or made payments on behalf of the associate.

• C. When changes in an associate’s equity do not arise from profit or loss or other comprehensive income of the associate and such changes do not affect the Group’s ownership percentage of the associate, the Group recognizes change in ownership interests in the associate in ‘capital surplus’ in proportion to its ownership.

• D. Unrealized gains on transactions between the Group and its associates are eliminated to the extent of the Group’s interest in the associates. Unrealized losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred. Accounting policies of associates have been adjusted where necessary to ensure consistency with the policies adopted by the Group.

• E. In the case that an associate issues new shares and the Group does not subscribe or acquire new shares proportionately, which results in a change in the Group’s ownership percentage of the associate but maintains significant influence on the associate, then ‘capital surplus’ and ‘investments accounted for under the equity method’ shall be adjusted for the increase or decrease of its share of equity interest. If the above condition causes a decrease in the Group’s ownership percentage of the associate, in addition to the above adjustment, the amounts previously recognized in other comprehensive income in relation to the associate are reclassified to profit or loss proportionately on the same basis as would be required if the relevant assets or liabilities were disposed of.

(16) Property, plant and equipment

• A. Property, plant and equipment are initially recorded at cost. Borrowing costs incurred during the construction period are capitalized.

• B. Subsequent costs are included in the asset’s carrying amount or recognized as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the Group and the cost of the item can be measured reliably. The carrying amount of the replaced part is derecognized. All other repairs and maintenance are charged to profit or loss during the financial period in which they are incurred.

~25~

• C. Land is not depreciated. Other property, plant and equipment apply cost model and are depreciated using the straight-line method to allocate their cost over their estimated useful lives. Each part of an item of property, plant, and equipment with a cost that is significant in relation to the total cost of the item must be depreciated separately.

• D. The assets’ residual values, useful lives and depreciation methods are reviewed, and adjusted if appropriate, at each financial year-end. If expectations for the assets’ residual values and useful lives differ from previous estimates or the patterns of consumption of the assets’ future economic benefits embodied in the assets have changed significantly, any change is accounted for as a change in estimate under IAS 8, ‘Accounting Policies, Changes in Accounting Estimates and Errors’, from the date of the change. The estimated useful lives of property, plant and equipment are as follows:

Buildings and structures 2~51years Machinery and equipment 5~11 years Other equipment 2~6 years

• (17) Leasing arrangements (lessee) - right-of-use assets / lease liabilities

• A. Leases are recognized as a right-of-use asset and a corresponding lease liability at the date at which the leased asset is available for use by the Group. For short-term leases or leases of lowvalue assets, lease payments are recognized as an expense on a straight-line basis over the lease term.

• B. Lease liabilities include the net present value of the remaining lease payments at the commencement date, discounted using the incremental borrowing interest rate. Lease payments are comprised of the following:

  • (a) Fixed payments, less any lease incentives receivable; and

  • (b) Variable lease payments that depend on an index or a rate.

  • The Group subsequently measures the lease liability at amortized cost using the interest method and recognizes interest expense over the lease term. The lease liability is remeasured and the amount of remeasurement is recognized as an adjustment to the right-of-use asset when there are changes in the lease term or lease payments and such changes do not arise from contract modifications.

• C. At the commencement date, the right-of-use asset is stated at cost comprising the following: (a) The amount of the initial measurement of lease liability; and

  • (b) Any lease payments made at or before the commencement date.

  • The right-of-use asset is measured subsequently using the cost model and is depreciated from the commencement date to the earlier of the end of the asset’s useful life or the end of the lease term. When the lease liability is remeasured, the amount of remeasurement is recognized as an adjustment to the right-of-use asset.

(18) Investment property

An investment property is stated initially at its cost and measured subsequently using the cost model.

~26~

Except for land, investment property is depreciated on a straight-line basis over its estimated useful life of 25 ~ 50 years.

(19) Intangible assets

• A. Goodwill arises in a business combination accounted for by applying the acquisition method.

• B. Patent, royalties and other intangible assets are amortized on a straight-line basis over their estimated useful lives of 2 ~ 10 years.

(20) Impairment of non-financial assets

• A. The Group assesses at each balance sheet date the recoverable amounts of those assets where there is an indication that they are impaired. An impairment loss is recognized for the amount by which the asset’s carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset’s fair value less costs to sell or value in use. Except for goodwill, when the circumstances or reasons for recognizing impairment loss for an asset in prior years no longer exist or diminish, the impairment loss is reversed. The increased carrying amount due to reversal should not be more than what the depreciated or amortized historical cost would have been if the impairment had not been recognized.

• B. The recoverable amounts of goodwill, intangible assets with an indefinite useful life and intangible assets that have not yet been available for use are evaluated periodically. An impairment loss is recognized for the amount by which the asset’s carrying amount exceeds its recoverable amount. Impairment loss of goodwill previously recognized in profit or loss shall not be reversed in the following years.

• C. For the purpose of impairment testing, goodwill acquired in a business combination is allocated to each of the cash-generating units, or groups of cash-generating units, that is/are expected to benefit from the synergies of the business combination. Each unit or group of units to which the goodwill is allocated represents the lowest level within the entity at which the goodwill is monitored for internal management purposes. Goodwill is monitored at the operating segment level.

(21) Borrowings

• A. Borrowings comprise long-term and short-term bank borrowings. Borrowings are recognized initially at fair value, net of transaction costs incurred. Borrowings are subsequently stated at amortized cost; any difference between the proceeds (net of transaction costs) and the redemption value is recognized in profit or loss over the period of the borrowings using the effective interest method.

• B. Fees paid on the establishment of loan facilities are recognized as transaction costs of the loan to the extent that it is probable that some or all of the facility will be drawn down. In this case, the fee is deferred until the draw-down occurs. To the extent there is no evidence that it is probable that some or all of the facility will be drawn down, the fee is capitalized as a pre-payment for liquidity services and amortized over the period of the facility to which it relates.

~27~

(22) Notes and accounts payable

• A. Accounts payable are liabilities for purchases of raw materials, goods or services and notes payable are those resulting from operating and non-operating activities.

• B. The short-term notes and accounts payable without bearing interest are subsequently measured at initial invoice amount as the effect of discounting is immaterial.

(23) Financial liabilities at fair value through profit or loss

• A. Financial liabilities are classified in this category of held for trading if acquired principally for the purpose of repurchasing in the short-term. Derivatives are also categorized as financial liabilities held for trading unless they are designated as hedges.

• B. At initial recognition, the Group measures the financial liabilities at fair value. All related transaction costs are recognized in profit or loss. The Group subsequently measures these financial liabilities at fair value with any gain or loss recognized in profit or loss.

• (24) Convertible bonds payable

Convertible bonds which are compound financial instruments

• A. Convertible bonds issued by the Group contain conversion options (that is, the bondholders have the right to convert the bonds into the Group’s common shares by exchanging a fixed amount of cash for a fixed number of common shares). The Group classifies the bonds payable upon issuance as a financial liability or an equity instrument in accordance with the contract terms. They are accounted for as follows:

• (a) The host contracts of bonds are initially recognized at fair value. Any difference between the initial recognition and the redemption value is accounted for as the premium or discount on bonds payable and is subsequently amortized in profit or loss as an adjustment to ‘finance costs’ over the period of circulation using the effective interest method.

• (b) The embedded conversion options which meet the definition of an equity instrument are initially recognized in ‘capital surplus—share options’ at the residual amount of total issue price less the amount of bonds payable as stated above. Conversion options are not subsequently remeasured.

• (c) Any transaction costs directly attributable to the issuance are allocated to each liability or equity component in proportion to the initial carrying amount of each abovementioned item.

• (d) When bondholders exercise conversion options, the liability component of the bonds (including bonds payable) shall be remeasured on the conversion date. The issuance cost of converted common shares is the total book value of the abovementioned liability component and ‘capital surplus—share options’.

Convertible bonds which are hybrid financial instruments

• B. Convertible bonds issued by the Company contain conversion options (that is, the bondholders have the right to convert the bonds into the Company’s common shares, but not exchanging a fixed amount of cash for a fixed number of common shares), call options and put options. The Group classifies the bonds payable upon issuance as a financial liability or an equity instrument

~28~

in accordance with the contract terms. They are accounted for as follows:

• (a) The embedded conversion options, call options and put options are recognized initially at net fair value as ‘financial assets or financial liabilities at fair value through profit or loss’. They are subsequently remeasured and stated at fair value on each balance sheet date; the gain or loss is recognized as ‘gain or loss on valuation of financial assets or financial liabilities at fair value through profit or loss’.

• (b) The host contracts of bonds are initially recognized at the residual value of total issue price less the amount of ‘financial assets or financial liabilities at fair value through profit or loss’ as stated above. Any difference between the initial recognition and the redemption value is accounted for as the premium or discount on bonds payable and subsequently is amortized in profit or loss as an adjustment to the ‘finance costs’ over the period of circulation using the effective interest method.

• (c) Any transaction costs directly attributable to the issuance are allocated to each liability component in proportion to the initial carrying amount of each abovementioned item.

• (d) When bondholders exercise conversion options, the liability component of the bonds (including bonds payable and ‘financial assets or financial liabilities at fair value through profit or loss’ ) shall be remeasured on the conversion date. The issuance cost of converted common shares is the total book value of the abovementioned liability component.

(25) Derecognition of financial liabilities

A financial liability is derecognized when the obligation specified in the contract is either discharged or cancelled or expires.

(26) Provisions

Provisions (including warranties, litigation, etc.) are recognized when the Group has a present legal or constructive obligation as a result of past events, and it is probable that an outflow of economic resources will be required to settle the obligation and the amount of the obligation can be reliably estimated. Provisions are measured at the present value of the expenditures expected to be required to settle the obligation on the balance sheet date, which is discounted using a pre-tax discount rate that reflects the current market assessments of the time value of money and the risks specific to the obligation. When discounting is used, the increase in the provision due to passage of time is recognized as interest expense. Provisions are not recognized for future operating losses.

(27) Employee benefits

• A. Short-term employee benefits

Short-term employee benefits are measured at the undiscounted amount of the benefits expected to be paid in respect of service rendered by employees in a period and should be recognized as expense in that period when the employees render service.

• B. Pensions

(a) Defined contribution plans

For defined contribution plans, the contributions are recognized as pension expense when

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they are due on an accrual basis. Prepaid contributions are recognized as an asset to the extent of a cash refund or a reduction in the future payments.

  - (b) Defined benefit plans

     - i. Net obligation under a defined benefit plan is defined as the present value of an amount of pension benefits that employees will receive on retirement for their services with the Group in current period or prior periods. The liability recognized in the balance sheet in respect of defined benefit pension plans is the present value of the defined benefit obligation at the balance sheet date less the fair value of plan assets. The net defined benefit obligation is calculated annually by independent actuaries using the projected unit credit method. The rate used to discount is determined by using interest rates of government bonds (at the balance sheet date) that are denominated in the currency in which the benefits will be paid, and that have terms to maturity approximating to the terms of the related pension liability.

     - ii. Remeasurements arising on defined benefit plans are recognized in other comprehensive income in the period in which they arise and are recorded as retained earnings.

• C. Employees’ compensation and directors’ remuneration

  • Employees’ compensation and directors’ remuneration are recognized as expense and liability, provided that such recognition is required under legal or constructive obligation and those amounts can be reliably estimated. Any difference between the resolved amounts and the subsequently actual distributed amounts is accounted for as changes in estimates.

• (28) Employee share based payment

• For the equity-settled share-based payment arrangements, the employee services received are measured at the fair value of the equity instruments granted at the grant date, and are recognized as compensation cost over the vesting period, with a corresponding adjustment to equity. The fair value of the equity instruments granted shall reflect the impact of market vesting conditions and nonmarket vesting conditions. Compensation cost is subject to adjustment based on the service conditions that are expected to be satisfied and the estimates of the number of equity instruments that are expected to vest under the non-market vesting conditions at each balance sheet date. Ultimately, the amount of compensation cost recognized is based on the number of equity instruments that eventually vest.

(29) Income tax

• A. The tax expense for the year comprises current and deferred tax. Tax is recognized in profit or loss, except to the extent that it relates to items recognized in other comprehensive income or items recognized directly in equity, in which cases the tax is recognized in other comprehensive income or equity.

• B. The current income tax expense is calculated on the basis of the tax laws enacted or substantively enacted at the balance sheet date in the countries where the Group operate and generate taxable income. Management periodically evaluates positions taken in tax returns with respect to situations in accordance with applicable tax regulations. It establishes provisions where

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appropriate based on the amounts expected to be paid to the tax authorities. An additional tax is levied on the unappropriated retained earnings and is recorded as income tax expense in the year the stockholders resolve to retain the earnings.

• C. Deferred tax is recognized, using the balance sheet liability method, on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the consolidated balance sheet. Deferred tax is determined using tax rates (and laws) that have been enacted or substantially enacted by the balance sheet date and are expected to apply when the related deferred tax asset is realized or the deferred tax liability is settled.

• D. Deferred tax assets are recognized only to the extent that it is probable that future taxable profit will be available against which the temporary differences can be utilized. At each balance sheet date, unrecognized and recognized deferred tax assets are reassessed.

• E. A deferred tax asset shall be recognized for the carryforward of unused tax credits resulting from research and development expenditures to the extent that it is possible that future taxable profit will be available against which the unused tax credits can be utilized.

• (30) Share capital

• A. Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of new shares or stock options are shown in equity as a deduction, net of tax, from the proceeds.

• B. Where the Company repurchases the Company’s equity share capital that has been issued, the consideration paid, including any directly attributable incremental costs is deducted from equity attributable to the Company’s equity holders. Where such shares are subsequently reissued, the difference between their book value and any consideration received, net of any directly attributable incremental transaction costs, is included in equity attributable to the Company’s equity holders.

(31) Dividends

Dividends are recorded in the Company's financial statements in the period in which they are resolved by the Company's shareholders' meeting. Cash dividends are recorded as liabilities.

(32) Revenue recognition

• A. The Group is primarily engaged in manufacture and sale of TFT-LCD panel products. The Group recognizes revenue when the right of control is transferred to the customer when the products are delivered to customer and the Group has no unperformed obligation that could affect customer acceptance of the product. Delivery occurs when the products have been shipped to the specific location, the risks of obsolescence and loss have been transferred to the customer, and either the customer has accepted the products in accordance with the sales contract, or the Group has objective evidence that all criteria for acceptance have been satisfied.

• B. Sales revenue is calculated based on the contract price, net of volume discounts and sales returns and discounts. Revenue from these sales is recognized based on the price specified in the contract, net of the estimated volume discounts and sales discounts and allowances. Accumulated experience is used to estimate and provide for the volume discounts, sales discounts and allowances, using the expected value method, and revenue is only recognized to the extent that

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it is highly probable that a significant reversal will not occur. The estimation is subject to an assessment at each reporting date. A refund liability is recognized for expected volume discounts, sales discounts and allowances payable to customers in relation to sales made until the end of the reporting period. No element of financing is deemed present as the sales are made, which is consistent with market practice.

• C. A receivable is recognized when the goods are delivered as this is the point in time that the consideration is unconditional because only the passage of time is required before the payment is due.

(33) Operating segments

Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision maker, who is responsible for allocating resources and assessing performance of the operating segments.

5. CRITICAL ACCOUNTING JUDGMENTS, ESTIMATES AND KEY SOURCES OF ASSUMPTION

UNCERTAINTY

The preparation of these consolidated financial statements requires management to make critical judgments in applying the Group’s accounting policies and make critical assumptions and estimates concerning future events. Assumptions and estimates may differ from the actual results and are continually evaluated and adjusted based on historical experience and other factors. For the information of critical accounting judgments, estimates and key sources of assumption uncertainty is addressed below:

• (1) Critical accounting estimates and assumptions

The Group makes estimates and assumptions based on the expectation of future events that are believed to be reasonable under the circumstances at the end of the reporting period. The resulting accounting estimates might be different from the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are addressed below:

• A. Impairment assessment of goodwill

The impairment assessment of goodwill relies on the Group’s subjective judgment, including identifying cash-generating units, allocating assets and liabilities as well as goodwill to related cash-generating units, and determining the recoverable amounts of related cash-generating units. Please refer to Note 6(11) for the information of goodwill impairment.

• B. Impairment assessment of tangible and intangible assets (excluding goodwill)

• The Group assesses impairment based on its subjective judgment and determines the separate cash flows of a specific group of assets, useful lives of assets and the future possible income and expenses arising from the assets depending on how assets are utilized and industrial characteristics. Any changes of economic circumstances or estimates due to the change of Group strategy might cause material impairment on assets in the future. Please refer to Notes 6(8) and 6(11) for the information of impairment assessment impairment.

• C. Evaluation of inventories

As inventories are stated at the lower of cost and net realizable value, the Group must determine

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the net realizable value of inventories on balance sheet date using judgments and estimates. Due to the rapid technology innovation, the Group evaluates the amounts of normal inventory consumption, obsolete inventories or inventories without market selling value on balance sheet date, and writes down the cost of inventories to the net realizable value. Such an evaluation of inventories is principally based on the demand for the products within the specified period in the future. Therefore, there might be material changes to the evaluation.

6. DETAILS OF SIGNIFICANT ACCOUNTS

(1) Cash and cash equivalents

TAILS OF SIGNIFICANT ACCOUNTS Cash and cash equivalents
Cash on hand, demand deposits and checking accounts Time deposits	December31,2021 22,769,902 $ 5,897,844 28,667,746 $	December 31, 2020
		21,461,990 $ 5,070,093 26,532,083 $

• A. The Group associates with a variety of financial institutions all with high credit quality to disperse credit risk, so it expects that the probability of counterparty default is remote.

• B. The above time deposits expire in 3 months and risks of changes in their values are remote.

• (2) Financial assets and liabilities at fair value through profit or loss

Financial assets and liabilities at fair value through	profit or loss
Assets Current items Financial assets mandatorily measured at fair value through profit or loss Beneficiary certificates Structured products Forward foreign exchange contracts Foreign exchange swap contracts Non-current items Financial assets mandatorily measured at fair value through profit or loss Listed stocks Unlisted stocks Financial products	December31,2021 13,903,225 $ 3,269,530 54,965 130,283 17,358,003 $ 1,224,882 $ 3,063,428 38,553 4,326,863 $	December31,2020
		- $ - 706,299 -
		706,299 $
		1,037,782 $ 2,442,400 -
		3,480,182 $

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==> picture [482 x 95] intentionally omitted <==

----- Start of picture text -----

Liabilities December 31, 2021 December 31, 2020
Current items
Financial liabilities held for trading
Convertible bonds derivative instruments $ - $ 3,208,560
Forward foreign exchange contracts 198,896 13,574
$ 198,896 $ 3,222,134
----- End of picture text -----

• A. The Group sold $3,115 and $2,566,352 of stocks at fair value during the years ended December 31, 2021 and 2020 and the amount of receivables (shown as other receivables) outstanding as of December 31, 2021 and 2020 was $0 and $1,259,091.

• B. The Company entered into a ‘Share Issuance and Asset Purchase Agreement’ with Nanjing Huadong Electronic Information & Technology Co., Ltd (It was renamed as TPV Technology Co.,ltd. in the second quarter of 2021) (“TPV Technology”) during the year ended December 31, 2021. Refer to Note 9(2) for relevant information.

• C. The non-hedging derivative financial assets and liabilities transaction information are as follows:

Current items Forward foreign exchange contracts Foreign exchange swap contracts Forward foreign exchange contracts Derivative financial assets and liabilities Forward foreign exchange contracts Forward foreign exchange contracts Forward foreign exchange contracts Forward foreign exchange contracts Forward foreign exchange contracts	December31,2021	December31,2020	December31,2020
	Contract Period RMB (sell) 1,020,844 $ 2021/12-2022/01 USD (buy) 160,000 2021/12-2022/01 RMB (sell) 625,000 2021/12-2022/01 TWD (buy) 2,711,077 2021/12-2022/01 USD (sell) 40,000 2021/12-2022/01 JPY (buy) 4,577,300 2021/12-2022/01 TWD (sell) 6,171,025 2020/09-2021/03 JPY (buy) 25,000,000 2020/09-2021/03 EUR (sell) 6,000 2021/12-2022/01 USD (buy) 6,803 2021/12-2022/01 HKD (sell) 66,283 2021/11-2022/02 USD (buy) 8,500 2021/11-2022/02 USD (sell) 930,000 2021/12-2022/01 TWD (buy) 25,755,547 2021/12-2022/01 USD (sell) 805,000 2021/10-2022/05 TWD (buy) 22,406,595 2021/10-2022/05 Contract Amount (Notional Principal) (in thousands)	Contract Amount (Notional Principal) (in thousands)	Contract Period
		TWD (sell) 4,034,150 $ JPY (buy) 15,000,000 USD (sell) 170,000 JPY (buy) 17,711,370 USD (sell) 1,207,000 RMB (buy) 8,012,265 USD (sell) 140,000 TWD (buy) 3,924,200	2020/11-2021/02 2020/11-2021/02 2020/11-2021/02 2020/11-2021/02 2020/10-2021/04 2020/10-2021/04 2020/12-2021/01 2020/12-2021/01

The Group entered into forward foreign exchange contracts to hedge exchange rate risk of import and export proceeds in foreign currency, foreign exchange swap contracts are to meet fund procurement demand. However, these contracts are not accounted for using hedge accounting.

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(3) Financial assets at fair value through other comprehensive income

Non-current items Equity instruments Listed stocks Unlisted stocks	December31,2021 December31,2020 9,818,232 $ 3,853,042 $ 29,894 1,034,639 9,848,126 $ 4,887,681 $

• A. The Group has elected to classify equity instruments that are considered to be strategic investments and steady dividend income as financial assets at fair value through other comprehensive income.

• B. The Group sold $358,212 and $283,212 of stocks at fair value resulting in cumulative gains amounting to $289,263 and $236,126 on disposal which were recognized in unappropriated retained earnings during the years ended December 31, 2021 and 2020.

• C. For information on other comprehensive income for fair value change recognized by the Group for the years ended December 31, 2021 and 2020, please refer to Note 6(21) “Other equity”.

(4) Financial assets at amortized cost

Financial assets at amortized cost
Current items Principal guaranteed financial assets Corporate bonds Non-current items Principal guaranteed financial assets Corporate bonds Fixed income financial products	December31,2021 20,637,496 $ 1,995,699 22,633,195 $ 63,343,505 $ 5,697,755 5,183,163 74,224,423 $	December31,2020
		42,687,746 $ - 42,687,746 $ - $ - - - $

• A. The Group recognized $771,602 and $164,623 of interest income arising from the financial assets at amortized cost for the years ended December 31, 2021 and 2020, respectively.

• B. The Group associates with a variety of financial institutions and counterparties all with high credit quality to disperse credit risk, so it expects that the probability of financial institution and counterparty defaults is remote.

(5) Notes receivable and accounts receivable

counterparty defaults is remote. Notes receivable and accounts receivable
Notes receivable Accounts receivable Less: Allowance for uncollectible accounts (	December31,2021 75,311 $ 60,715,469 60,790,780 262,610) ( 60,528,170 $	December31,2020
		239,644 $ 49,867,533 50,107,177 209,419) 49,897,758 $

• A. The aging analysis of accounts receivable and notes receivable is as follows:

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		December31,2021		December31,2020
Not past due	$	56,887,325	$	49,489,308
Up to 60 days		3,418,512		401,369
61 to 180 days		245,769		129,369
Over 180 days		239,174		87,131
	$	60,790,780	$	50,107,177

The above aging analysis was based on past due date.

• B. As of December 31, 2021 and 2020, accounts receivable and notes receivable were all from contracts with customers. As of January 1, 2020, the balance of receivables from contracts with customers amounted to $40,099,225.

• C. Information relating to credit risk of accounts receivable is provided in Note 12(2).

(6) Inventories

Inventories
Raw materials and supplies Work in progress Finished goods	December 31, 2021 8,785,532 $ 14,575,596 14,917,093 38,278,221 $	December 31, 2020
		5,782,404 $ 13,670,471 11,412,395 30,865,270 $

For the years ended December 31, 2021 and 2020, the Group recognized cost of goods sold for inventories that have been sold at $258,315,997 and $246,024,010 and recognized net inventory loss at $261,013 and $53,944 due to write down of cost of scrap inventories to net realizable value, respectively.

(7) Investments accounted for under the equity method

Ampower Holding Ltd. FI Medical Device Manufacturing Co., Ltd. PanelSemi Corporation Others	December 31, 2021 801,157 $ 318,640 243,661 79,226 1,442,684 $	December31,2020
		834,982 $ 377,751 - 33,501 1,246,234 $

The operating results of the Group’s share in all individually immaterial associates are summarized below:

below:
Profit for the year from continuing operations Other comprehensive loss - net of tax ( Total comprehensive income	2021 2020 65,134 $ 176,561 $ 34,241) 62,442) ( 30,893 $ 114,119 $ Years ended December31,
	2021 65,134 $ 34,241) ( 30,893 $

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(8) Property, plant and equipment

2021

At January1 Additions Disposals Cost: Land 4,093,726 $ - $ - $ Buildings 203,938,280 435,176 226,780) ( Machinery and equipment 526,646,694 4,332,608 6,270,330) ( Other equipment 49,731,327 26,216 2,957,357) ( 784,410,027 4,794,000 9,454,467) ( Accumulated depreciation and impairment: Buildings 139,325,425) ( 8,588,932) ( 223,417 Machinery and equipment 436,793,758) ( 22,456,891) ( 5,697,690 Other equipment 42,804,109) ( 4,530,235) ( 2,923,228 618,923,292) ( 35,576,058) ( 8,844,335 Unfinished construction and equipment under acceptance 13,414,940 23,767,262 42) ( 178,901,675 $

Transfer, net exchange differences and others At December 31 - $ 4,093,726 $ 1,421,485 205,568,161 12,852,932 537,561,904 4,062,214 50,862,400 18,336,631 798,086,191 90,984 147,599,956) ( 162,739 453,390,220) ( 87,658 44,323,458) ( 341,381 645,313,634) ( 27,346,809) ( 9,835,351 162,607,908 $

2020

									2020
												Transfer, net
												exchange
												differences
			At January1			Additions			Disposals			and others			At December 31
Cost:
Land		$	4,093,726		$	-		$	-		$	-		$	4,093,726
Buildings			202,292,552			380,614	(		394,478)			1,659,592			203,938,280
Machinery and
equipment			519,719,206			2,325,506	(		7,203,510)			11,805,492			526,646,694
Other equipment			47,114,625			129,623	(		1,692,237)			4,179,316			49,731,327
			773,220,109			2,835,743	(		9,290,225)			17,644,400			784,410,027
Accumulated depreciation
and impairment:
Buildings	(		130,770,638)	(		8,490,978)			389,459	(		453,268)	(		139,325,425)
Machinery and
equipment	(		421,695,341)	(		21,667,679)			6,974,077	(		404,815)	(		436,793,758)
Other equipment	(		39,800,737)	(		4,674,102)			1,676,056	(		5,326)	(		42,804,109)
	(		592,266,716)	(		34,832,759)			9,039,592	(		863,409)	(		618,923,292)
Unfinished construction
and equipment under
acceptance			13,429,043			15,124,459			-	(		15,138,562)			13,414,940
		$	194,382,436											$	178,901,675

• A. Information about the property, plant and equipment that were pledged to others as collateral is provided in Note 8.

• B. As of December 31, 2021 and 2020, the prepayments for business facilities which have not yet entered the factory (shown as ‘other non-current assets’) amounted to $8,530,392 and $242,041,

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respectively.

－ (9) Leasing arrangements lessee

• A. The Group leases various assets including land, offices and business vehicles. Rental contracts are typically made for periods of 2 to 50 years. Lease terms are negotiated on an individual basis and contain a wide range of different terms and conditions. The lease agreements do not impose covenants, but leased assets may not be used as security for borrowing purposes.

• B. Short-term leases with a lease term of 12 months or less comprise office, dormitory and equipment. Low-value assets comprise computer equipment.

• C. The carrying amount of right-of-use assets and the depreciation charge are as follows:

Land Buildings (Office) Transportation equipment (Business vehicles) Land Buildings (Office) Transportation equipment (Business vehicles)	December31,2021 Carryingamount 5,042,470 $ 101,957 2,341 5,146,768 $ Year ended December 31, 2021 Depreciationcharge 477,095 $ 40,298 1,302 518,695 $	December31,2020
		Carrying amount
		5,521,852 $ 22,904 3,153 5,547,909 $
		Year ended December 31, 2020
		Depreciationcharge 483,648 $ 23,475 1,260
		508,383 $

• D. For the years ended December 31, 2021 and 2020, the additions to right-of-use assets were $135,603 and $5,245, respectively.

• E. The information on profit and loss accounts relating to lease contracts is as follows:

Items affecting profit or loss Interest expense on lease liabilities Expense on variable lease payments Expense on short-term lease contracts Expense on leases of low-value assets	Year ended December31,2021 87,404 $ 149,913 76,702 37,508	Year ended December31,2020
		94,596 $ 186,729 89,631 37,510

• F. For the years ended December 31, 2021 and 2020, the Group’s total cash outflow for leases were $541,789 and $687,179, respectively.

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(10) Investment property

Investment property
				2021
		At January 1		Additions		At December 31
Cost:
Land	$	188,247	$	-	$	188,247
Buildings		439,228		-		439,228
		627,475		-		627,475
Accumulated depreciation:
Buildings	(	128,031)	(	27,789)	(	155,820)
	$	499,444	($	27,789)	$	471,655
				2020
		At January1		Additions		AtDecember31
Cost:
Land	$	188,247	$	-	$	188,247
Buildings		439,228		-		439,228
		627,475		-		627,475
Accumulated depreciation:
Buildings	(	100,243)	(	27,788)	(	128,031)
	$	527,232	($	27,788)	$	499,444

The fair value of the investment property held by the Group as at December 31, 2021 and 2020 was $1,978,199 and $2,035,178, respectively. The amounts mentioned above represent valuation results of comparative method based on market trading information categorized within Level 3 in the fair value hierarchy.

(11) Intangible assets

A. Intangible assets are goodwill, payments for TFT-LCD related technology and royalty. Details of intangible assets are as follows:

AtJanuary1 Additions Cost: Patents and royalty 8,184,436 $ - $ Goodwill 17,117,339 - Others 5,368,254 21,937 ( 30,670,029 21,937 ( Accumulated amortization and impairment: Patents and royalty 8,156,715) ( 15,215) ( Others 5,006,330) ( 162,894) ( 13,163,045) ( 178,109) ( 17,506,984 $ 156,172) ($			2021
			Disposals - $ - 635,658) 635,658) - 635,658 635,658 - $

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2020

AtJanuary1 Additions Disposals Cost: Patents and royalty 8,158,285 $ - $ - $ Goodwill 17,117,339 - - Others 5,309,115 26,076 27,892) ( 30,584,739 26,076 27,892) ( Accumulated amortization and impairment: Patents and royalty 8,151,571) ( 5,144) ( - Others 4,855,524) ( 194,029) ( 27,892 13,007,095) ( 199,173) ( 27,892 17,577,644 $ 173,097) ($ - $	Transfer, net exchange differences and others At December31 26,151 $ 8,184,436 $ - 17,117,339 60,955 5,368,254 87,106 30,670,029 - 8,156,715) ( 15,331 5,006,330) ( 15,331 13,163,045) ( 102,437 $ 17,506,984 $

• B. Details of amortization of intangible assets are as follows:

Operating costs Operating expenses	Years ended December 31,	Years ended December 31,
	2021 59,212 $ 118,897 178,109 $	2020
		69,559 $ 129,614
		199,173 $

• C. The Company is primarily engaged in the manufacture of TFT-LCD products, which is a single cash-generating unit. The Group performed impairment analysis for recoverable amount of the goodwill at each reporting date and used the value in use as the basis for calculation of the recoverable amount. The value in use was calculated based on the estimated present value of future cash flows for five years, which was discounted at the discount rate of 12.58% and 12.07% , respectively, for the years ended December 31, 2021 and 2020, to reflect the specific risks of the related cash generating units. The future cash flows were estimated based on the future revenue, gross profit, and other operating costs each year. Based on the evaluation above, the Group did not recognize impairment loss on goodwill for the years ended December 31, 2021 and 2020, respectively.

(12) Other payables

respectively. Other payables
Other personnel expenses Payable on machinery and equipment Repairs and maintenance expense payable Utilities expense payable Other payables	December31,2021 16,607,485 $ 4,172,348 2,993,417 1,163,786 11,577,192 36,514,228 $	December31,2020
		8,460,510 $ 3,749,913 2,808,420 1,137,259 9,521,439
		25,677,541 $

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(13) Bonds payable

Bonds payable
	December31,2021		December31,2020
Bonds payable	- $	$		6,331,424
Less: Discount on bonds payable	-	(		858,420)
Less: Current portion of bonds payable	-	(		98,711)
	- $	$		5,374,293
A. The issuance of unsecured overseas convertible bonds by the Company in			2019
The terms of the first unsecured overseas	convertible bonds issued by the		Company	in 2019 are
as follows:

• (a) The Company issued USD 300 million, 0% first unsecured overseas convertible bonds, as approved by the regulatory authority on January 15, 2020. The bonds mature 5 years from the issue date (January 22, 2020 ~ January 22, 2025) and will be redeemed in cash at face value at the maturity date.

• (b) The bondholders have the right to ask for conversion of the bonds into common shares of the Company during the period from the date after three months of the bonds issue to 30 days before the maturity date, except for the stop transfer period as specified in the terms of the bonds or the laws/regulations. The rights and obligations of the new shares converted from the bonds are the same as the issued and outstanding common shares.

• (c) The conversion price of the bonds is adjusted based on the pricing model in the terms of the bonds. As of December 31, 2021, the conversion price was $10.38 (in dollars) (using the exchange rate 1 USD: 29.913 NTD).

• (d) The bondholders have the right to require the Company to redeem bonds at the price of the bonds’ face value in whole or partially on the date of three years after the bond issuance.

• (e) Under the terms of the bonds, all bonds repurchased (including from secondary market), early redeemed and matured by the Company, or converted and sold back by the bondholder will be cancelled and not to be reissued.

• (f) As of December 31, 2021, all unsecured overseas convertible bonds issued by the Company had been converted. All convertible bonds were calculated at the conversion price at the time of conversion. Refer to Note 6(18) for relevant information.

• B. Regarding the issuance of convertible bonds, the non-equity conversion options, redeem options and put options were separated from their host contracts and were recognized in ‘financial assets or liabilities at fair value through profit or loss’ in net amount in accordance with IFRS 9 because the economic characteristics and risks of the embedded derivatives were not closely related to those of the host contracts.

• C. The issuance of domestic convertible bonds by the Group’s subsidiary GIO Company The terms of the first domestic secured convertible bonds issued by GIO Company are as follows:

• (a) GIO Company issued $100,000, 0% first domestic secured convertible bonds, as approved by the regulatory authority. The bonds mature 3 years from the issue date (October 1, 2018

~41~

     - ~ October 1, 2021) and will be redeemed in cash at face value at the maturity date.

  - (b) The bondholders have the right to ask for conversion of the bonds into common shares of GIO Company during the period from the date after three months of the bonds issue to 10 days before the maturity date, except for the stop transfer period as specified in the terms of the bonds or the laws/regulations. The rights and obligations of the new shares converted from the bonds are the same as the issued and outstanding common shares.

  - (c) The conversion price of the bonds is set up based on the pricing model in the terms of the bonds, and is subject to adjustments if the condition of the anti-dilution provisions occurs subsequently. The conversion price was $10.7 (in dollars) per share upon issuance.

  - (d) Under the terms of the bonds, all bonds redeemed (including bonds repurchased from the Taipei Exchange), matured and converted are cancelled and not to be re-issued; all rights and obligations attached to the bonds are also extinguished.

• D. The Company repurchased all the outstanding domestic convertible bonds of GIO Company in the amount of $104,455 in the third quarter of 2021 and converted all those convertible bonds into ordinary shares of GIO Company amounting to 9,901 thousand shares.

• (14) Long term borrowings

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----- Start of picture text -----

Type of loans Period December 31, 2021 December 31, 2020
Syndicated bank borrowings 2016/12/6 $ 43,750,000 $ 39,750,000
~2024/4/15
Unsecured bank borrowings 2021/12/2 600,000 -
~2026/11/15
Secured borrowings 2017/7/28 95,166 54,500
~2024/9/22
Less:
Administrative expenses
charged by syndicated banks ( 82,241) ( 151,503)
Current portion (includes
administrative expenses) ( 8,770,385) ( 19,268,495)
$ 35,592,540 $ 20,384,502
Range of interest rates 0.75%~1.79% 1.45%~2.07%
----- End of picture text -----

Range of interest rates

• A. Please refer to Note 8 for the information on assets pledged as collateral for long-term borrowings.

• B. The syndicated borrowing agreements specified that the Company shall meet covenants on current ratio, liability ratio, interest coverage, and tangible net equity, based on the Company’s annual consolidated financial statements audited by independent auditors. The Company’s financial ratios on the consolidated financial statements for the years ended December 31, 2021 and 2020 are in compliance with the covenants on the syndicated borrowing agreement.

• C. For repayment of borrowings from financial institutions and financing mid-term working capital fund, the Board of Directors approved the signing of a syndicated borrowing with financial institution in the amount of $37.5 billion on May 5, 2020. As of December 31, 2021, the borrowing has yet to be drawn down.

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(15) Pensions

• A. Defined benefit pension plan

• (a) The Company and its domestic subsidiaries have a defined benefit pension plan in accordance with the Labor Standards Law, covering all regular employees’ service years prior to the enforcement of the Labor Pension Act on July 1, 2005 and service years thereafter of employees who choose to continue to be subject to the pension mechanism under the Law. Under the defined benefit pension plan, two units are accrued for each year of service for the first 15 years and one unit for each additional year thereafter, subject to a maximum of 45 units. Pension benefits are based on the number of units accrued and the average monthly salaries and wages of the last 6 months prior to retirement. The Company and its domestic subsidiaries contribute monthly an amount equal to 2% of the employees’ monthly salaries and wages to the retirement fund deposited with Bank of Taiwan, the trustee, under the name of the independent retirement fund committee. Also, the Company and its domestic subsidiaries would assess the balance in the aforementioned labor pension reserve account by December 31, every year. If the account balance is insufficient to pay the pension calculated by the aforementioned method to the employees expected to qualify for retirement in the following year, the Company and its domestic subsidiaries will make contributions for the deficit by next March.

• (b) The amounts recognized in the balance sheet are as follows:

Present value of defined benefit obligations Fair value of plan assets ( Net defined benefit liability	December31,2021 2,568,347 $ 2,501,876) ( 66,471 $	December 31, 2020 2,127,700 $ 1,970,661) 157,039 $

• (c) Movements in net defined benefit liabilities are as follows:

Year ended December 31, 2021 Balance at January 1 Current service cost Interest expense / income Remeasurements: Return on plan assets (excluding amounts included in interest income or expense) Change in demographic assumptions Change in financial assumptions Experience adjustments Benefits paid ( Contribution for the year Balance at December 31	Present value of defined benefit obligations 2,127,700 $ 5,727 8,511 14,238 - 3,891 120,141 317,855 15,478) ( 426,409 - 2,568,347 $	Fair value Net defined ofplan assets benefit liability 1,970,661 $ 157,039 $ - 5,727 7,883 628 7,883 6,355 27,371 27,371) ( - 3,891 - 120,141 - 317,855 15,478) - 11,893 414,516 511,439 511,439) ( 2,501,876 $ 66,471 $

~43~

Present value of defined benefit obligations Year ended December 31, 2020 Balance at January 1 2,128,296 $ Current service cost 5,756 Interest expense / income 18,071 23,827 Remeasurements: Return on plan assets (excluding amounts included in interest income or expense) - Change in financial assumptions 148,100 Experience adjustments 158,528) ( Benefits paid 13,995) ( ( 24,423) ( Contribution for the year - Balance at December 31 2,127,700 $

Fair value Net defined ofplan assets benefit liability 1,835,192 $ 293,104 $ - 5,756 15,959 2,112 15,959 7,868 47,211 47,211) ( - 148,100 - 158,528) ( 13,995) - 33,216 57,639) ( 86,294 86,294) ( 1,970,661 $ 157,039 $

• (d) The Bank of Taiwan was commissioned to manage the Fund of the Company’s and domestic subsidiaries’ defined benefit pension plan in accordance with the Fund’s annual investment and utilization plan and the “Regulations for Revenues, Expenditures, Safeguard and Utilization of the Labor Retirement Fund” (Article 6: The scope of utilization for the Fund includes deposit in domestic or foreign financial institutions, investment in domestic or foreign listed, over-the-counter, or private placement equity securities, investment in domestic or foreign real estate securitization products, etc.). With regard to the utilization of the Fund, its minimum earnings in the annual distributions on the final financial statements shall be no less than the earnings attainable from the amounts accrued from two-year time deposits with the interest rates offered by local banks. If the earnings is less than aforementioned rates, government shall make payment for the deficit after being authorized by the Regulator. The Company and domestic subsidiaries have no right to participate in managing and operating that fund and hence the Company and domestic subsidiaries are unable to disclose the classification of plan assets fair value in accordance with IAS 19 paragraph 142. The composition of fair value of plan assets as of December 31, 2021 and 2020 is given in the Annual Labor Retirement Fund Utilization Report announced by the government.

~44~

(e) The principal actuarial assumptions used were as follows:

Discount rate Future salary increases	2021 2020 0.625%~0.70% 0.40% 2.40%~3.00% 1.50% Years endedDecember31,

Future mortality rate was estimated based on the 6th Taiwan Standard Ordinary Experience Mortality Table.

Because the main actuarial assumption changed, the present value of defined benefit obligation is affected. The analysis was as follows:

Increase Decrease 0.25% 0.25% December 31, 2021 Effect on present value of defined benefit obligation 89,871) ($ 94,602 $ Increase Decrease 0.25% 0.25% December 31, 2020 Effect on present value of defined benefit obligation 83,849) ($ 87,979 $ Discountrate Discountrate	Increase Decrease 0.25% 0.25% 85,142 $ 82,777) ($ Increase Decrease 0.25% 0.25% 81,342 $ 78,113) ($ Future salary increases Future salaryincreases

The sensitivity analysis above is based on one assumption which changed while the other conditions remain unchanged. In practice, more than one assumption may change all at once. The method of analysing sensitivity and the method of calculating net pension liability in the balance sheet are the same. The methods and types of assumptions used in preparing the sensitivity analysis did not change compared to the previous period.

• (f) As of December 31, 2021, the weighted average duration of the retirement plan is 16 ~ 34.5 years.

• B. Defined contribution pension plan

• (a) Effective July 1, 2005, the Company and its domestic subsidiaries have established a defined contribution pension plan (the “New Plan”) under the Labor Pension Act (the “Act”), covering all regular employees with R.O.C. nationality. Under the New Plan, the Company contributes monthly an amount based on 6% of the employees’ monthly salaries and wages to the employees’ individual pension accounts at the Bureau of Labor Insurance. The benefits accrued are paid monthly or in lump sum upon termination of employment.

• (b) The Company's foreign subsidiaries contribute pension in accordance with the pension regulations in their territory respectively.

• C. The pension costs under the defined contribution pension plans of the Group for the years ended December 31, 2021 and 2020 were $1,859,850 and $1,682,528, respectively.

~45~

(16) Share-based payment

• A. For the years ended December 31, 2021 and 2020, the share-based payment arrangements of the Group’s subsidiary were as follows:

Group’s subsidiary were as	follows:
Type of loans arrangement Employee stock options Employee stock options Treasury stock transferred to employees	Grant date 2017/10/01 2020/07/07 2020/08/17	Quantity granted (in thousand units)	Contract period (inyears) 5 1.08；6 -	Vesting conditions
		6,600 7,500 80,000		Note 1 Note 2 Vested immediately

• Note 1: The employees’ stock options of the subsidiary, GIO Company, are exercised based on the issue date. After the date of issuance (2 to 3 years), the employees can exercise their employee stock options in batch at the ratio of 60% and 40%. Stock options that not exercise before the expiry date will be permanently forfeited.

• Note 2: The employees’ stock options of the subsidiary, InnoCare Company, are exercised based on the issue date and the following two plans :(a) for 1 year after the date of issuance, the employees can exercise their employee stock options all at once; and (b) for 2 to 4 years after the date of issuance, the employees can exercise their employee stock options in batch at the ratio of 30%, 30% and 40%. Stock options that not exercise before the expiry date will be permanently forfeited.

• B. Details of the share-based payment arrangements are as follows:

• －

• (a) Employee stock options GIO Company

Options outstanding at the beginning of the year Options forfeited Options outstanding at the end of the year Options exercisable at the end of the year		Quantity Weighted-average (in thousand exercise price units) (indollars) 6,122 9.4 $ 1,000) 9.4 5,122 7.5 5,122 2021	Quantity Weighted-average (in thousand exercise price units) (indollars) 6,122 9.4 $ 1,000) 9.4 5,122 7.5 5,122 2021			Weighted-average exercise price (indollars) 2020
		Quantity (in thousand units)			Quantity (in thousand units)
	(	6,122 1,000) 5,122 5,122	9.4 $ 9.4 7.5	(	6,232 110) 6,122 6,122	9.6 $ 9.6 9.4

~46~

－ (b) Employee stock options InnoCare Company

Options outstanding at the beginning of the year Options granted Options exercised Options expired Options outstanding at the end of the year Options exercisable at the end of the year	Quantity Weighted-average Quantity Weighted-average (in thousand exercise price (in thousand exercise price units) (in dollars) units) (in dollars) 7,500 22.5 $ - - $ - - 7,500 22.5 3,985) ( 14.5 - - 101) ( 14.5 - - 3,414 14.5 7,500 22.5 - - 2021 2020

• C. The expiry date and exercise price of stock options outstanding at balance sheet date are as follows:

follows:
Issue date approved Expiry date 2017.10.1 2022.9.30 2020.7.7 2026.7.6 Issue date approved Expiry date 2017.10.1 2022.9.30 2020.7.7 2026.7.6	December	31, 2021
	Quantity (in thousand units) 5,122 3,414 December	Exercise price (indollars)
		$ 7.5 14.5 31, 2020
	Quantity (inthousand units) 6,122 7,500	Exercise price (indollars)
		$ 9.4 22.5

• D. The fair value of stock options granted is measured using the Black-Scholes option-pricing model. Relevant information is as follows:

Type of loans arrangement Employee stock options Employee stock options	Grant date 2017.10.01 2020.07.07	Price (in dollars) 2.18 23.61	Exercise Price (in dollars) 10 22.5	Expected volatility (%) 48.38~ 48.58 35.59~ 45.98	Expected duration (inyears) 3.5~4 1.04~5	Expected dividends - -	Risk-free interest rate(%) 0.63~ 0.68 0.26~ 0.37	Fair value per unit (in dollars)
								0.0783~ 0.1099 4.88~ 8.16

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E. The information on fair value of treasury stock transferred to the employees is as follows:

Price Type of loans arrangement Grant date (in dollars) Treasury stock transferred to employees 2020.08.17 8.27	Exercise Fair value Price per unit (in dollars) (in dollars) 3.5 4.77

• F. For the years ended December 31, 2021 and 2020, the Group recognized expenses on share-based payment transaction (equity settlement) were $19,280 and $395,669, respectively.

(17) Provisions-current

At January 1, 2021 Additions during the year Used (unused amounts reversed) during the year ( At December 31, 2021	Warranty Litigation and others Total 3,056,598 $ 3,096,385 $ 6,152,983 $ 1,425,347 1,291,720 2,717,067 1,182,789) 146,079) ( 1,328,868) ( 3,299,156 $ 4,242,026 $ 7,541,182 $

A. Warranty

The Group provides warranty on TFT-LCD panel products sold. Provision for warranty is estimated based on historical warranty data of TFT-LCD panel products.

• B. Litigation and others

Litigation and other provisions for the Group are related to patents of TFT-LCD panel products and anti-trust litigations. For information on estimation of provisions, please refer to Note 9(1).

(18) Share capital

• A. As of December 31, 2021, the Company’s authorized and outstanding capital were $120,000,000 and $105,596,201, with a par value of $10 (in dollars) per share, respectively. All proceeds from shares issued have been collected.

Movements in the number of the Company’s ordinary shares outstanding (including certificate of entitlement to new shares from convertible bonds) are as follows:

At January 1 Stocks converted from bonds Treasury stock transferred to employees At December 31	2021 Number of ordinary shares (inthousand units) 9,940,433 619,187 - 10,559,620	2020 Number of ordinary shares (inthousand units) 9,631,072 229,361 80,000 9,940,433

~48~

• B. The Company’s bonds totalling USD 281,800 thousand (face value) had been converted into $6,191,869 of ordinary shares (619,187 thousand shares) with a par value of $10 (in dollars) per share during the year ended December 31, 2021, which resulted in ‘capital surplus, additional paid-in capital arising from bond conversion’ of $4,544,732.

• C. Treasury shares

• (a) Reason for share reacquisition and movements in the number of the Company’s treasury shares are as follows:

shares are as follows:
	2020
	Number of
	ordinary shares
	(in thousand units)		Book value
At January 1	80,000	$	618,580
Treasury stock transferred to employees	80,000) (	(	618,580)
At December 31	-	$	-

• (b) For the year ended December 31, 2020, treasury stocks transferred to employees of the Company and subsidiaries were 80,000 thousand shares, and cost of employees’ compensation and transferred amount were $381,600 and $279,162, respectively. The aforementioned amount is higher than the carrying amount of treasury stock. Thus, the differences were recognized as share capital generated from treasury stock transactions.

(19) Capital surplus

• Pursuant to the R.O.C. Company Act, capital surplus arising from paid-in capital in excess of par value on issuance of common stocks and donations can be used to cover accumulated deficit or to issue new stocks or cash to shareholders in proportion to their share ownership, provided that the Company has no accumulated deficit. Further, the R.O.C. Securities and Exchange Act requires that the amount of capital surplus to be capitalized mentioned above should not exceed 10% of the paidin capital each year. Accumulated deficit shall first be covered by retained earnings before the capital reserve can be used to cover the accumulated deficit.

~49~

2021

Share premium 96,484,845 $ 1,047,090) ( 4,544,732 - - - - - 9,690 99,992,177 $	Share premium 96,484,845 $ 1,047,090) ( 4,544,732 - - - - - 9,690 99,992,177 $	Share premium 96,484,845 $ 1,047,090) ( 4,544,732 - - - - - 9,690 99,992,177 $	Share premium 96,484,845 $ 1,047,090) ( 4,544,732 - - - - - 9,690 99,992,177 $	Share premium 96,484,845 $ 1,047,090) ( 4,544,732 - - - - - 9,690 99,992,177 $	Share premium 96,484,845 $ 1,047,090) ( 4,544,732 - - - - - 9,690 99,992,177 $	Share premium 96,484,845 $ 1,047,090) ( 4,544,732 - - - - - 9,690 99,992,177 $	Share premium 96,484,845 $ 1,047,090) ( 4,544,732 - - - - - 9,690 99,992,177 $	Share premium 96,484,845 $ 1,047,090) ( 4,544,732 - - - - - 9,690 99,992,177 $
				$
	Share premium		Treasury share transactions 3,141,232 $ - - - - 42,182 - 3,183,414 $		Changes in ownership interests in subsidiaries 24 $ - - 38 - - - 62 $	Share of profit (loss) of associates accounted for under equitymethod 18,670 $ $ - ( - - 21,005 - - 39,675 $ $
								$

~50~

(20) Retained earnings

• A. Under the Company’s Articles of Incorporation, the current year’s earnings, if any, shall first be offset against prior years’ operating losses, then set aside 10% of the remaining amount as legal reserve (until the legal reserve equals the paid-in capital). Preferred dividend shall be distributed after setting aside or reversing a special reserve according to related regulations. The appropriation of the remaining amount along with the unappropriated earnings from previous years shall be proposed by the Board of Directors and resolved by the shareholders.

• The net decrease in other equity accumulated in prior periods should be appropriated from prior period's undistributed earnings to a special reserve of the same amount, and if there is a deficiency, the same amount should be appropriated from the post-tax profit for the year plus the amount of items other than post-tax profit for the year, and the amount was included in the unappropriated earnings for the year.

• Depending on the Company's future long-term financial planning, investment environment, industry competition, capital expenditure budget, capital requirements and protection of shareholders' rights, dividends should account for at less 20% of the distributable earnings for the year. However, as the distributable earnings is lower than 2% of the paid-in capital, the Company may choose not to distribute dividends and transferred dividends to the retained earnings. Earnings shall be preferably distributed using cash dividends and may also be distributed using stock dividends. The ratio for cash dividends shall not be less than 50% of the total amount of dividends distributed. The aforementioned dividend distribution rate may be adjusted based on financial, business and operational factors.

• B. Except for covering accumulated deficit or issuing new stocks or cash to shareholders in proportion to their share ownership, the legal reserve shall not be used for any other purpose. The use of legal reserve for the issuance of stocks or cash to shareholders in proportion to their share ownership is permitted, provided that the balance of the reserve exceeds 25% of the Company’s paid-in capital.

• C. The details of the 2020 net income which was approved by the stockholders during their meeting in July 2021 and the appropriation of 2019 deficit compensation which was approved at the stockholders’ meeting in June 2020 are as follows:

share ownership is permitted, provided that the balance of the reserve exceeds 25% of the Company’s paid-in capital. The details of the 2020 net income which was approved by the stockholders during their meeting n July 2021 and the appropriation of 2019 deficit compensation which was approved at the stockholders’ meeting in June 2020 are as follows:	ermitted, provided that the balance of the reserve exceeds 25% of the apital. 0 net income which was approved by the stockholders during their meeting appropriation of 2019 deficit compensation which was approved at the in June 2020 are as follows:	ermitted, provided that the balance of the reserve exceeds 25% of the apital. 0 net income which was approved by the stockholders during their meeting appropriation of 2019 deficit compensation which was approved at the in June 2020 are as follows:	ermitted, provided that the balance of the reserve exceeds 25% of the apital. 0 net income which was approved by the stockholders during their meeting appropriation of 2019 deficit compensation which was approved at the in June 2020 are as follows:
Dividends per Dividends per Amount share (indollars) Amount share (indollars) Legal reserve 191,838 $ - $ (Reversal of) provision for special reserve 1,265,766) ( 2,661,974 Cash dividends 3,141,271 0.3 $ - - $ 2,067,343 $ 2,661,974 $ Years endedDecember31, 2020 2019	Years endedDecember31,
		2019
		Amount - $ 2,661,974 - 2,661,974 $	Dividends per share (indollars)
			- $

~51~

In July 2021, the shareholders at their meeting resolved to distribute cash dividends amounting to $1,047,000 at $0.1 (in dollars) per share from capital surplus, and the stockholders’ meeting in June 2020 approved a resolution to distribute cash dividends amounting to $963,107 at $0.1 (in dollars) per share from capital surplus.

(21) Other equity items

(21)	In July 2021, the shareholders at their meeting resolved to distribute cash dividends amounting to $1,047,000 at $0.1 (in dollars) per share from capital surplus, and the stockholders’ meeting in June 2020 approved a resolution to distribute cash dividends amounting to $963,107 at $0.1 (in dollars) per share from capital surplus. Other equity items	In July 2021, the shareholders at their meeting resolved to distribute cash dividends amounting to $1,047,000 at $0.1 (in dollars) per share from capital surplus, and the stockholders’ meeting in June 2020 approved a resolution to distribute cash dividends amounting to $963,107 at $0.1 (in dollars) per share from capital surplus. Other equity items	In July 2021, the shareholders at their meeting resolved to distribute cash dividends amounting to $1,047,000 at $0.1 (in dollars) per share from capital surplus, and the stockholders’ meeting in June 2020 approved a resolution to distribute cash dividends amounting to $963,107 at $0.1 (in dollars) per share from capital surplus. Other equity items	In July 2021, the shareholders at their meeting resolved to distribute cash dividends amounting to $1,047,000 at $0.1 (in dollars) per share from capital surplus, and the stockholders’ meeting in June 2020 approved a resolution to distribute cash dividends amounting to $963,107 at $0.1 (in dollars) per share from capital surplus. Other equity items	In July 2021, the shareholders at their meeting resolved to distribute cash dividends amounting to $1,047,000 at $0.1 (in dollars) per share from capital surplus, and the stockholders’ meeting in June 2020 approved a resolution to distribute cash dividends amounting to $963,107 at $0.1 (in dollars) per share from capital surplus. Other equity items
(22)	Operating income Financial assets at fair Currency value through other translation comprehensive income Total At January 1 8,879,169) ($ 2,819,498 $ 6,059,671) ($ Revaluation - gross - 4,834,177 4,834,177 Disposal of investments in equity instruments measured at fair value through other comprehensive income - 289,263) ( 289,263) ( Currency translation differences 948,734) ( - 948,734) ( Share of other comprehensive loss of associates 34,241) ( - 34,241) ( Effect of income tax - 706,404) ( 706,404) ( At December 31 9,862,144) ($ 6,658,008 $ 3,204,136) ($ 2021 Financial assets at fair Currency value through other translation comprehensive income Total At January 1 9,497,686) ($ 2,172,249 $ 7,325,437) ($ Revaluation - gross - 881,733 881,733 Disposal of investments in equity instruments measured at fair value through other comprehensive income - 236,126) ( 236,126) ( Currency translation differences 680,959 - 680,959 Share of other comprehensive loss of associates 62,442) ( - 62,442) ( Effect of income tax - 1,642 1,642 At December 31 8,879,169) ($ 2,819,498 $ 6,059,671) ($ 2020 2021 2020 TFT-LCD products 350,076,690 $ 269,911,051 $ Years ended December31,
				2021 350,076,690	2020
			$		269,911,051 $

The Group derives revenue from the transfer of goods at a point in time.

~52~

(23) Interest income

Interest income from bank deposits Interest income from financial assets at amortized cost

Years ended December31,	Years ended December31,
2021 156,762 $ 771,602 928,364 $	2020
	218,514 $ 164,623
	383,137 $

(24) Other income

Service revenue Dividend income Grant revenue Rental revenue Compensation income Other income

==> picture [228 x 147] intentionally omitted <==

----- Start of picture text -----

Years ended December 31,
2021 2020
$ 1,006,445 $ 642,930
812,648 198,526
424,375 585,730
158,953 161,629
139,745 406,492
899,195 718,983
$ 3,441,361 $ 2,714,290
----- End of picture text -----

(25) Other gains and losses

Net (loss) gain on financial assets and liabilities at fair value through profit or loss

Net currency exchange loss Loss on disposal of investments

(Loss) gain on disposal of property, plant and equipment Other losses

	Years ended	December	December	31,
	2021			2020
($	2,473,911)		$	2,987,483
(	50,011)	(		3,113,179)
(	109,342)			-
(	204,872)			7,709
(	921,666)	(		1,384,151)
($	3,759,802)	($		1,502,138)

(26) Finance costs

Interest expense: Bank borrowings Convertible bonds Others

Years endedDecember31,	Years endedDecember31,
2021 841,807 $ 46,586 88,642 977,035 $	2020
	668,137 $ 254,379 104,000
	1,026,516 $

~53~

(27) Expenses by nature

Employee benefit expense: Salaries and other short-term employee benefits Shared-based payments Post-employment benefits Depreciation Amortization	2021 2020 48,245,710 $ 36,063,713 $ 19,280 395,669 1,866,205 1,690,396 36,122,542 35,368,930 178,109 199,173 86,431,846 $ 73,717,881 $ Years endedDecember31,

(28) Employees’ compensation and directors’ remuneration

• A. According to the Articles of Incorporation of the Company, a ratio of profit of the current year distributable, after covering accumulated losses, shall be distributed as employees' compensation and directors’ remuneration. The ratio shall not be lower than 5% for employees’ compensation and shall not be higher than 0.1% for directors’ remuneration.

• B. For the years ended December 31, 2021 and 2020, employees’ compensation was accrued at $4,246,994 and $139,349, respectively; while directors’ remuneration was accrued at $65,338 and $2,144, respectively. The aforementioned amounts were recognized in expenses.

• The expenses recognized for 2021 were accrued based on the earnings of current year. The employees’ compensation and directors’ remuneration were $4,246,994 and $65,338, respectively, and will be distributed in the form of cash as resolved b y the Board of Directors on February 11, 2022. The accrued amounts were in agreement with the amount of recorded expense for the year ended December 31, 2021.

• The employees’ compensation and directors’ remuneration for the year ended December 31, 2020, were $139,349 and $2,144, respectively, and will be distributed in the form of cash as resolved by the Board of Directors during their meeting on February 4, 2021. The resolved amounts were in agreement with the amount of recorded expense for the year ended December 31, 2020.

Information about employees’ compensation and directors’ remuneration of the Company as resolved by the Board of Directors will be posted in the “Market Observation Post System” at the website of the Taiwan Stock Exchange.

~54~

(29) Income tax

A. Income tax expense

(a)Components of income tax expense:

e tax ome tax expense Components of income tax expense:
		Years ended	December31,
		2021		2020
Current tax:
Current tax on profit for the year	$	1,460,150	$	501,205
Prior year income tax under (over)
estimation	(	74,913)		54,676
Total current tax		1,385,237		555,881
Deferred tax:
Origination and reversal of temporary
differences	(	449,256)		484,243
Loss carryforward		3,929,993	(	122,817)
Income tax expense	$	4,865,974	$	917,307

(b)The income tax (charge)/credit relating to components of other comprehensive income is as follows:

follows:
			Years ended	December31,
			2021			2020
Changes in fair value of financial	$		706,404	($		1,642)
assets at fair value through other
comprehensive income
Remeasurements of defined benefit
obligations	(		82,903)			11,528
		$	623,501		$	9,886
Reconciliation between income tax expense and	accounting profit:
			Years ended	December31,
			2021			2020
Tax calculated based on profit before		$	13,658,322	$		920,239
tax and statutory tax rate
Effects from items disallowed by tax
regulation	(		305,180)			134,617
Prior year income tax (over) under estimation	(		74,913)			54,676
Separate taxation			134			6,193
Change in assessment of realization of
deferred tax assets	(		8,412,389)	(		198,418)
Tax expense		$	4,865,974	$		917,307

B. Reconciliation between income tax expense and accounting profit:

~55~

• C. Amounts of deferred tax assets or liabilities as a result of temporary differences and loss carryforward are as follows:

carryforward are as follows:
					2021
							Recognized
				Recognized				in other
					in profit	comprehensive
		January1			or loss			income		December31
Deferred tax assets:
-Temporary differences:
Sales returns and discount provisions	$	634,935	$		51,421		$	-	$		686,356
Accrued royalties and warranty provisions		1,309,803			269,693			-			1,579,496
Unrealized exchange loss		-			559			-			559
Unrealized loss on financial instruments		594,116			2,729	(		76,773)			520,072
Others		653,115	(		110,362)			82,902			625,655
Loss carryforward		3,929,993	(		3,929,993)			-			-
	$	7,121,962	($		3,715,953)		$	6,129	$		3,412,138
- Deferred tax liabilities:
Unrealized exchange gain	($	154,581)	$		137,361		$	-	($		17,220)
Unrealized gain on financial instruments		-	(		183,786)	(		629,630)	(		813,416)
Amortization charges on goodwill	(	1,045,769)	(		96,905)			-	(		1,142,674)
Others	(	408,640)			378,546			-	(		30,094)
	($	1,608,990)	$		235,216	($		629,630)	($		2,003,404)
	$	5,512,972	($		3,480,737)	($		623,501)	$		1,408,734
					2020
							Recognized
				Recognized				in other
					in profit	comprehensive
		January1			or loss			income		December31
Deferred tax assets:
-Temporary differences:
Sales returns and discount provisions	$	668,568	($		33,633)		$	-	$		634,935
Accrued royalties and warranty provisions		1,556,050	(		246,247)			-			1,309,803
Unrealized loss on financial instruments		659,943	(		67,469)			1,642			594,116
Others		658,073			6,570	(		11,528)			653,115
Loss carryforward		3,807,176			122,817			-			3,929,993
	$	7,349,810	($		217,962)	($		9,886)	$		7,121,962
- Deferred tax liabilities:
Unrealized exchange gain	($	227,983)	$		73,402		$	-	($		154,581)
Amortization charges on goodwill	(	948,863)	(		96,906)			-	(		1,045,769)
Others	(	288,680)	(		119,960)			-	(		408,640)
	($	1,465,526)	($		143,464)		$	-	($		1,608,990)
	$	5,884,284	($		361,426)	($		9,886)	$		5,512,972

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• D. Expiration dates of unused loss carryforward and amounts of unrecognized deferred tax assets are as follows:

December 31, 2021

			Unrecognized
Year	Amount filed /	Unused	deferred	Usable
incurred	assessed	amount	tax assets	until year
2012	Assessed	3,546,716 $	3,546,716 $	2022
2016	Assessed	1,051,680	1,051,680	2026
2019	Filed	21,206,403	21,206,403	2029
		25,804,799 $	25,804,799 $

December 31, 2020 Amount Year filed / incurred assessed 2011 Assessed 2012 Assessed 2016 Assessed 2019 Filed	Unused amount 23,790,717 $ 42,430,348 1,051,680 21,206,403 88,479,148 $	Unrecognized deferred taxassets 18,507,136 $ 33,007,169 818,117 16,496,761 68,829,183 $	Usable untilyear
Year incurred 2011 2012 2016 2019
			2021 2022 2026 2029

• E. The amounts of deductible temporary differences that were not recognized as deferred tax assets are as follows:

Deductible temporary differences	December31,2021 1,532,571 $	December31,2020
		1,446,656 $

• F. The Company has not recognized taxable temporary differences associated with investment in subsidiaries as deferred tax liabilities. As of December 31, 2021 and 2020, the amounts of temporary differences unrecognized as deferred tax liabilities were $34,176,731 and $33,493,308, respectively.

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

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(30) Earnings per share

Earnings per share
		Year	endedDecember31,2021
			Weighted average
			number of ordinary			Earnings
		Amount	shares outstanding		per share
		aftertax	(sharesinthousands)	(indollars)
Basic earnings per share
Profit attributable to ordinary shareholders
of the parent	$	57,534,461	10,395,532	$		5.53
Diluted earnings per share
Profit attributable to ordinary shareholders of the parent		57,534,461	10,395,532
Assumed conversion of all dilutive
potential ordinary shares:
-Convertible bonds		45,441	164,088
-Employees’ compensation		-	217,365
Profit attributable to ordinary shareholders
of the parent plus assumed conversion of
all dilutive potential ordinary shares	$	57,579,902	10,776,985	$		5.34
		Year	endedDecember31,2020
			Weighted average
			number of ordinary			Earnings
		Amount	shares outstanding		per share
		aftertax	(sharesinthousands)	(indollars)
Basic earnings per share
Profit attributable to ordinary shareholders
of the parent	$	1,636,144	9,664,728	$		0.17
Diluted earnings per share
Profit attributable to ordinary shareholders of the parent		1,636,144	9,664,728
Assumed conversion of all dilutive
potential ordinary shares:
-Employees’ compensation		-	9,883
Profit attributable to ordinary shareholders
of the parent plus assumed conversion of
all dilutive potential ordinary shares	$	1,636,144	9,674,611	$		0.17
For the year ended December 31, 2020, the Company’s convertible bonds were not				included in the
calculation of diluted earnings per share due to its anti-dilutive effect.

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(31) Supplemental cash flow information

A. Investing activities with partial cash payments:

		Years ended	December 31,	December 31,
		2021		2020
Purchase of property, plant and equipment	$	28,561,262	$	17,960,202
Add: Opening balance of payable on
equipment		3,749,913		6,463,079
Less: Ending balance of payable on
equipment	(	4,172,348)	(	3,749,913)
Cash paid during the year	$	28,138,827	$	20,673,368

(32) Changes in liabilities from financing activities

For the years ended December 31, 2021 and 2020, liabilities from financing activities include bonds payable, long-term borrowings and lease liabilities. Changes in those items result from cash flow from financing activities, discount, conversion and amortization of bonds payable as well as changes in exchange rate. The summarized significant changes are as follows and other information is provided in the consolidated statements of cash flows.

		2021		2020
		Bonds payable		Bonds payable
At January 1	$	5,473,004	$	97,018
Conversion of convertible bonds	(	5,481,350)	(	2,010,773)
Amortization of discounts on convertible bonds		46,586		254,379
Impact of changes in foreign exchange rate	(	38,240)	(	346,191)
Changes in cash flow from financing activities		-		8,900,934
Convertible bonds derivative instruments on the
issue date		-	(	1,422,363)
At December 31	$	-	$	5,473,004

7. RELATED PARTY TRANSACTIONS

(1) Names and relationship of related parties

LATED PARTY TRANSACTIONS Names and relationship of related parties Convertible bonds derivative instruments on the issue date At December 31 $	- 1,422,363) ( - 5,473,004 $
Names of related parties	Relationship withthe Group
Hon Hai Precision Industry Co., Ltd. and its subsidiaries CHENG MEI MATERIALS TECHNOLOGY CORPORATION and its subsidiaries (Note) FI Medical Device Manufacturing Co., Ltd.	Other related party Other related party Associate

(Note) In May 2020, the Company no longer serves as a director, so it is listed as a non-related party.

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(2) Significant related party transactions

A. Operating revenue

nificant related party transactions Operating revenue
		Years ended	December	31,
		2021		2020
Sales of goods:
Other related parties	$	6,095,130	$	8,158,298
Associates		106,871		20,974
	$	6,202,001	$	8,179,272

The collection period was mainly 30~90 days upon shipment or on a monthly-closing basis to related parties. The sales prices and the trading terms to related parties above were not significantly different from those of sales to third parties.

B. Purchases of goods

different from those of sales to third parties. Purchases of goods
Purchases of goods: Other related parties Associates	Years ended December 31,
	2021 4,803,317 $ 84,409 4,887,726 $	2020
		6,214,473 $ 1,047,303 7,261,776 $

The payment term was 30~120 days to related parties after transaction date, and 30~180 days to non-related parties after delivery or on a monthly-closing basis. The purchase prices and the payment terms from related parties above were not materially different from those of purchases from third parties.

C. Receivables from related parties

rom third parties. eceivables from related parties
Accounts receivable: Other related parties Associates	December31,2021 1,277,931 $ 73,444 1,351,375 $	December31,2020
		2,179,257 $ 44,900 2,224,157 $

The receivables from related parties arise mainly from sales transactions. The receivables are due 30~90 days after the date of sale. The receivables are unsecured in nature and bear no interest.

D. Payables to related parties

Payables to related parties
Accounts payable: Other related parties Associates	December31,2021 2,069,083 $ 121,225 2,190,308 $	December31,2020
		1,606,419 $ 114,512 1,720,931 $

The payables to related parties arise mainly from purchase transactions and are due 30~120 days after the date of purchase. The payables bear no interest.

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E. Property transactions

Purchase of property

(a) Acquisition of property, plant and equipment:

		Years ended	December	31,
		2021		2020
Other related parties	$	21,107	$	66,749
Associates		2,016		-
	$	23,123	$	66,749

• (b) Period-end balances arising from purchases of property (shown as ‘Other payables’):

Other related parties

	December 31, 2021	December 31, 2020
$	-	51,047 $

(3) Key management compensation

Key management compensation
Salaries and other short-term employee benefits Shared-based payments Post-employment benefits	Years endedDecember31,
	2021 425,511 $ 2,876 1,371 429,758 $	2020
		59,130 $ 22,096 855
		82,081 $

8. PLEDGED ASSETS

The Group’s assets pledged as collateral are as follows:

Book value

Pledged asset Property, plant and equipment Other assets - others -Demand deposits -Time deposits -Refundable deposits	December31,2021 63,366,908 $ 350 48,430 762,562 64,178,250 $	December31,2020 Purpose 93,284,863 $ Long-term borrowings 950 Long-term borrowings 4,430 Tariff guarantee and performance bond 784,601 Litigation guarantee 94,074,844 $

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9. SIGNIFICANT CONTINGENT LIABILITIES AND UNRECOGNIZED CONTRACT COMMITMENTS

• －

• (1) Contingencies Significant Litigations

• A. The Company’s subsidiary in U.S. received a civil complaint from the government of Puerto Rico in September 2018, claiming that the company, together with other defendants of Taiwan, Japan and South Korea TFT - LCD companies, had unjustified enrichment from the TFT-LCD pricing collaborations in 2006 and requested monetary compensation. The U.S. subsidiary of the company has appointed a lawyer to handle the lawsuit.

• B. Eidos Displays, LLC and Eidos III, LLC (“Eidos”) filed a lawsuit against the Company and American subsidiary with the United States District Court for the Eastern District of Texas on April 25, 2011, alleging infringement of its patent. In December 2013, the magistrate judge granted summary judgment that the Eidos patent is invalid. In January 2014, the presiding judge confirmed the summary judgment.

  • In February 2014, Eidos appealed to the United States Court of Appeals for the Federal Circuit (CAFC). In March 2015, the CAFC reversed the district court’s judgment and remanded the case back to the district court for further proceedings. In June 2017, the jury determined that some products of the Company and American subsidiary directly infringed the patent and awarded damages for Eidos. On March 5, 2018, the district court entered judgment. In January 2020, the Company reached an agreement on the main settlement terms with Eidos during the third mediation. In April 2020, the court granted the judgment that the case shall be closed by mutually performing the settlement terms and the lawsuits have no effect on the Company’s financial position and operations.

• C. On September 1, 2020, the Company received a civil complaint joint filed by Granville Technology Group Limited, VMT Limited and OT Computers Limited (all in liquidation) in the High Court of England and Wales, claiming that the Company, together with other defendants of Taiwan and South Korea TFT - LCD companies, shall be liable for damages incurred from the TFT-LCD pricing collaborations in 2006. The Company reached a settlement with the claimant in November 2021.

• D. On December 18, 2020 and March 19, 2021, the Company received civil complaints jointly filed by SAMSUNG ELECTRONICS CO. LIMITED, SAMSUNG ELECTRONICS TAIWAN CO. LIMITED, SAMSUNG ELECTRONICS (UK) LIMITED, SAMSUNG SEMICONDUCTOR EUROPE LIMITED and SAMSUNG DISPLAY CO. LMITED in the Business and Property Courts of England and Wales, claiming that the Company shall have the responsibility to pay equitable and fair share of compensation in terms of the settlement agreement that the first to fourth claimants entered into with the particular UK authorities and the first to fifth claimants entered into with Ingram Micro (UK) Limited for the TFT-LCD pricing collaborations in 2006. The Company reached a settlement with the claimant in May 2021.

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• E. The Company had assessed and recognized related losses and liabilities as shown in ‘provisionscurrent’ for the aforementioned investigation relating to anti-trust laws and patent litigation.

• (2) Commitments

• A. Capital expenditure contracted for at the balance sheet date but not yet incurred is as follows:

December 31, 2021 December 31, 2020 Property, plant and equipment $ 18,481,181 $ 12,627,041

• B. Outstanding letters of credit

The outstanding letters of credit for the purchase of property, plant and equipment are as follows: December 31, 2021 December 31, 2020 Outstanding letters of credit $ 59,655 $ 63,015

• C. The Company entered into a conditional ‘Share Issuance and Asset Purchase Agreement’ with TPV Technology. TPV Technology plans to issue shares to the shareholders of TPV Technology Limited, including the Company, in order to obtain 49% equity interest of TPV Technology Limited. However, the transaction will take effect when all preconditions are met.

• D. On August 3, 2021, the Board of Directors of the Company resolved to enter into a long-term strategic partnership supply contract with SDP Global (China) Co., LTD. The total price of the contract amounted to RMB 4 billion and will be paid periodically. As of December 31, 2021, the group not yet paid amount was RMB 3.5 billion. The supply term is from January 2022 to December 31, 2033, during this period, the Company and the subsidiary, Foshan Innolux Optoelectronics Ltd., obtained a multi-year commitment from SDP Global (China) Co., LTD for supplying certain products in specified quantities each year.

10. SIGNIFICANT DISASTER LOSS

None.

11. SIGNIFICANT EVENTS AFTER THE BALANCE SHEET DATE

None.

12. OTHERS

(1) Capital management

The Company’s objectives are to maintain an optimal capital structure, and constructively reduce the debt ratio and the cost of capital in order to maximize shareholders’ equity.

(2) Financial instruments

A. Financial instruments by category

For information of the Group’s financial assets (financial assets at fair value through profit or loss, financial assets at fair value through other comprehensive income, financial assets at amortized cost, cash and cash equivalents, accounts receivable (including related parties) and other receivables) and financial liabilities (financial liabilities at fair value through profit or loss, accounts payable (including related parties), other payables, lease liability, corporate bonds payable and long-term borrowings (including current portion)), please refer to Note 6 and consolidated balance sheets.

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• B. Financial risk management policies

• (a) The Group’s activities expose it to a variety of financial risks: market risk (including foreign exchange risk, interest rate risk and price risk), credit risk and liquidity risk. The Group’s overall risk management programme focuses on the unpredictability of financial markets and seeks to minimize potential adverse effects on the Group’s financial position and financial performance. The Group uses derivative financial instruments to hedge certain risk exposures (see Notes 6(2)).

• (b) Risk management is carried out by the treasury department under policies approved by the board of directors. The Group’s treasury identifies, evaluates and hedges financial risks in close cooperation with the Group’s operating units. The Board provides principles for overall risk management, as well as policies covering specific areas and matters, such as foreign exchange risk, interest rate risk, credit risk, use of derivative financial instruments and nonderivative financial instruments, and investment by excess liquidity.

• C. Significant financial risks and degrees of financial risks

• (a) Market risk

Foreign exchange risk

• i. The Group operates internationally and is exposed to foreign exchange risk arising from the transactions of the Group used in various functional currency, primarily with respect to the USD and RMB. Foreign exchange risk arises from future commercial transactions, recognized assets and liabilities and net investments in foreign operations.

• ii. Management has set up a policy to require group companies to manage their foreign exchange risk against their functional currency. The group companies are required to hedge their entire foreign exchange risk exposure via the Group’s treasury departments. To manage their foreign exchange risk arising from future commercial transactions and recognized assets and liabilities, entities in the Group use forward foreign exchange contracts and foreign exchange swap contracts. Foreign exchange risk arises when future commercial transactions or recognized assets or liabilities are denominated in a currency that is not the entity’s functional currency.

• iii. The Group’s businesses involve some non-functional currency operations (the Company’s and certain subsidiaries’ functional currency: NTD; other certain subsidiaries’ functional currency: RMB and USD). Based on the simulations performed, the impact on pre-tax profit of a 1% exchange rate fluctuation would be an increase of $410,217 and $259,928 for the years ended December 31, 2021 and 2020, respectively. The information on assets and liabilities denominated in foreign currencies whose values would be materially affected by the exchange rate fluctuations is as follows:

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Foreign Currency Exchange Amount Rate Book Value (In Thousands) (Note) (NTD) Financial assets Monetary items USD 4,962,088 $ 27.68 137,350,596 $ RMB 613,827 4.34 2,664,009 JPY 8,857,030 0.24 2,125,687 EUR 8,035 31.32 251,656 HKD 65,269 3.55 231,705 Non-monetary items USD 3,102,225 $ 27.68 85,869,588 $ JPY 8,192,139 0.24 1,966,113 RMB 289,659 4.34 1,257,120 HKD - 3.55 - USD 3,352,724 $ 27.68 92,803,400 $ JPY 35,625,094 0.24 8,550,023 EUR 7,930 31.32 248,368 HKD 33 3.55 117 December31,2021 Financial liabilities Monetary items	December31,2020
	Foreign Currency Exchange Amount Rate Book Value (In Thousands) (Note) (NTD) 5,686,943 $ 28.48 161,964,137 $ 314,777 4.36 1,372,428 1,732,338 0.28 485,055 3,430 35.02 120,119 13,321 3.67 48,888 2,852,662 $ 28.48 81,243,814 $ 7,560,763 0.28 2,117,014 - 4.36 - 351,054 3.67 1,288,368 4,498,554 $ 28.48 128,118,818 $ 33,061,001 0.28 9,257,080 8,703 35.02 304,779 73,107 3.67 268,303

• Note: Exchange rate represents the amount of NT dollars for which one foreign currency could be exchanged.

• iv.Total exchange loss, including realized and unrealized arising from significant foreign exchange variation on the monetary items held by the Group for the years ended December 31, 2021 and 2020 amounted to $50,011 and $3,113,179, respectively.

Price risk

• i. The Group is exposed to equity securities price risk because of investments held by the Group and classified on the consolidated balance sheet as financial assets at fair value through profit or loss and financial assets at fair value through other comprehensive income. To manage its price risk arising from investments in equity securities, the Group diversifies its portfolio. Diversification of the portfolio is done by the Group in respect of the targets and stages.

• ii. The Group’s investments in equity securities comprise domestic listed and unlisted stocks, beneficiary certificates and financial products. The prices of equity securities would change due to the change of the future value of investee companies. If the prices of these equity securities had increased/decreased by 20% with all other variables held constant, pre-tax profit for the years ended December 31, 2021 and 2020 would have increased/decreased by $3,646,018 and $696,036, respectively; other comprehensive gains and losses would have increased/decreased by $1,969,625 and $977,536, respectively.

~65~

Cash flow and fair value interest rate risk

• i. The Group’s main interest rate risk arises from long-term borrowings with variable rates, which expose the Group to cash flow interest rate risk. During the years ended December 31, 2021 and 2020, the Group’s borrowings at variable rate were denominated in the NTD.

• ii. The Group analysis its interest rate exposure on a dynamic basis. Various scenarios are simulated taking into consideration refinancing, renewal of existing positions, alternative financing and hedging. Based on these scenarios, the Group calculates the impact on profit and loss of a defined interest rate shift. For each simulation, the same interest rate shift is used for all currencies. The scenarios are run only for liabilities that represent the major interest-bearing positions.

• iii. If the borrowing interest rate of NTD had increased/decreased by 0.25% with all other variables held constant, pre-tax profit for the years ended December 31, 2021 and 2020 would have decreased/increased by $111,113 and $99,511, respectively. The main factor is that changes in interest expense result in floating-rate borrowings.

• (b) Credit risk

• i. Credit risk refers to the risk of financial loss to the Group arising from default by the clients or counterparties of financial instruments on the contract obligations. The main factor is that counterparties could not repay in full the accounts receivable based on the agreed terms, and the contract cash flows. As at December 31, 2021 and 2020, without taking into account any collateral held or other credit enhancements, the maximum exposure to credit risk in respect of the amount that best represents the financial assets at amortized cost and accounts receivable held by the Group was its carrying amount.

• ii. According to the Group’s credit policy, each local entity in the Group is responsible for managing and analysing the credit risk for each of their new clients before standard payment and delivery terms and conditions are offered. Internal risk control assesses the credit quality of the customers, taking into account their financial position, past experience and other factors. Individual risk limits are set based on internal or external ratings in accordance with limits set by the managements. The utilization of credit limits is regularly monitored.

• iii. The Group adopts the following assumption under IFRS 9 to assess whether there has been a significant increase in credit risk on that instrument since initial recognition: If the contract payments are past due over 30 days based on the terms, there has been a significant increase in credit risk on that instrument since initial recognition.

• iv. The Group adopts the assumptions under IFRS 9, the default occurs when the contract payments are past due over 90 days.

• v. The Group classifies customer’s accounts receivable in accordance with credit rating of customer, credit risk on trade and customer types. The Group applies the simplified approach using provision matrix to estimate expected credit loss.

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• vi. The following indicators are used to determine whether the credit impairment of debt instruments has occurred:

• (i) It becomes probable that the issuer will enter bankruptcy or other financial reorganization due to their financial difficulties;

• (ii) Default or delinquency in interest or principal repayments;

• (iii) Adverse changes in national or regional economic conditions that are expected to cause a default.

• vii. The Group adjusted forward looking information based on historical and timely information to assess the default possibility of accounts receivables. According to abovementioned consideration and information, the Group does not expect any significant default possibility of accounts receivable.

• viii. Movements in relation to the Group applying the simplified approach to provide loss allowance for accounts receivable are as follows:

llowance for accounts receivable are as follows:
At January 1 Provision for impairment At December 31 At January 1 Provision for impairment At December 31	2021
	Accounts receivable
	209,419 $ 53,191
	262,610 $
	2020 Accounts receivable
	209,418 $ 1
	209,419 $

• ix. The Group’s financial assets at amortized cost have low credit risk, the Group did not recognize significant loss allowance in accordance with 12 months expected credit losses.

• (c) Liquidity risk

• i. Group treasury monitors rolling forecasts of the Group’s liquidity requirements to ensure it has sufficient cash to meet operational needs while maintaining sufficient headroom on its undrawn committed borrowing facilities at all times so that the Group does not breach borrowing limits or covenants (where applicable) on any of its borrowing facilities. Such forecasting takes into consideration the Group’s debt financing plans, covenant compliance, compliance with internal balance sheet ratio targets and external regulatory or legal requirements.

• ii. Surplus cash held by the operating entities over and above balance required for working capital management are transferred to the Group’s treasury. Group treasury invests surplus cash in interest bearing savings accounts, time deposits, money market deposits and marketable securities. The Group chooses instruments that are with appropriate maturities or sufficient liquidity to provide sufficient headroom as determined by the abovementioned

~67~

• forecasts. These are expected to readily generate cash inflows for managing liquidity risk.

• iii. The information below analysis the Group’s non-derivative financial liabilities and netsettled or gross-settled derivative financial liabilities into relevant maturity groupings based on the remaining period at the balance sheet date to the contractual maturity date for non-derivative financial liabilities and to the expected maturity date for derivative financial liabilities. The amounts disclosed in the table are the contractual undiscounted cash flows.

Non-derivative financial liabilities:

December31,2021 Lease liability (Note) Long-term borrowings (including current portion) December 31, 2020 Lease liability (Note) Bonds payable Long-term borrowings (including current portion)	Less than 1year 719,125 $ 8,786,833 Less than 1year 236,720 $ 100,000 19,301,000	Between 1 and3 years 1,349,526 $ 35,115,277 Between 1 and 3 years 1,376,565 $ 6,231,424 8,203,500	Between 3 and5 years 1,044,263 $ 543,056 Between 3 and5 years 1,136,525 $ - 12,300,000	Over 5 years 2,361,435 $ - Over 5 years 2,870,936 $ - -	Total
					5,474,349 $ 44,445,166 Total
					5,620,746 $ 6,331,424 39,804,500

• Note: The Company applied a 1-year grace period for land rental payment starting from September 2020. The payment is repayable in 36 equal monthly installments for 3 years.

Except for the above, the non-derivative and derivative financial liabilities of the Group are all due within one year.

(3) Fair value information

• A. The different levels that the inputs to valuation techniques are used to measure fair value of financial and non-financial instruments have been defined as follows:

• Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can access at the measurement date. A market is regarded as active where a market in which transactions for the asset or liability take place with sufficient frequency and volume to provide pricing information on an ongoing basis. The fair value of the Group’s investment in listed stocks and beneficiary certificates is included in Level 1.

• Level 2: Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. The fair value of the Group’s investment in derivative instruments and financial products is included in Level 2.

• Level 3: Unobservable inputs for the asset or liability. The fair value of the Group’s investment in equity investment without active market and bonds payable is included in Level 3.

• B. Fair value information of investment property at cost is provided in Note 6(10).

• C. Financial instruments not measured at fair value

• Except for those listed in the table below, the carrying amounts of cash and cash equivalents,

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accounts receivable (including related parties), other receivables, financial assets at amortized cost, accounts payable (including related parties), other payables, lease liability and long-term borrowings (including current portion) are approximate to their fair values.

Book value 7,693,454 $ Bookvalue 5,473,004 $	Level 1 - $ Level 1 - $ December December	Level 2 7,830,698 $ Level 2 5,869,958 $ 31,2021 Fairvalue 31,2020 Fairvalue	Level3
			- $ Level 3
			- $

• D. The related information of financial and non-financial instruments measured at fair value by level on the basis of the nature, characteristics and risks of the assets and liabilities is as follows: (a) The related information of natures of the assets and liabilities is as follows:

December 31,2021 Assets Recurring fair value measurements Financial assets at fair value through profit or loss Equity securities Forward foreign exchange contracts Forward exchange swap contracts Beneficiary certificates Structured products Financial instruments Financial assets at fair value through other comprehensive income Equity securities Liabilities Recurring fair value measurements Financial liabilities at fair value through profit or loss Forward foreign exchange contracts	Level 1 1,224,882 $ - - 13,903,225 - - 9,818,232 24,946,339 $ - $	Level 2 - $ 54,965 130,283 - 3,269,530 38,553 - 3,493,331 $ 198,896 $	Level 3 3,063,428 $ - - - - - 29,894 3,093,322 $ - $	Total
				4,288,310 $ 54,965 130,283 13,903,225 3,269,530 38,553 9,848,126
				31,532,992 $
				198,896 $

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==> picture [461 x 265] intentionally omitted <==

----- Start of picture text -----

December 31, 2020 Level 1 Level 2 Level 3 Total
Assets
Recurring fair value measurements
Financial assets at fair value
through profit or loss
Equity securities $ 1,037,782 $ - $ 2,442,400 $ 3,480,182
Forward foreign exchange contracts - 706,299 - 706,299
Financial assets at fair value
through other comprehensive income
-
Equity securities 3,853,042 1,034,639 4,887,681
$ 4,890,824 $ 706,299 $ 3,477,039 $ 9,074,162
Liabilities
Recurring fair value measurements
Financial liabilities at fair value
through profit or loss
- -
Forward foreign exchange contracts $ $ 13,574 $ $ 13,574
Convertible bonds derivative
- -
instruments 3,208,560 3,208,560
- -
$ $ $ 3,208,560 $ 3,222,134
----- End of picture text -----

• (b) The methods and assumptions the Group used to measure fair value are as follows:

• i. The instruments the Group used market quoted prices as their fair values (that is, Level 1) are listed below by characteristics:

Listed shares Emerging stocks Corporate bond Market quoted price Closing price Last transaction price Weighted average quoted price

• ii. Except for financial instruments with active markets, the fair value of other financial instruments is measured by using valuation techniques or by reference to counterparty quotes. The fair value of financial instruments measured by using valuation techniques can be referred to current fair value of instruments with similar terms and characteristics in substance, discounted cash flow method or other valuation methods, including calculated by applying model using market information available at the consolidated balance sheet date.

• iii. When assessing non-standard and low-complexity financial instruments, for example, foreign exchange swap contracts and financial products, the Group adopts valuation technique that is widely used by market participants. The inputs used in the valuation method to measure these financial instruments are normally observable in the market.

• iv. The valuation of derivative financial instruments is based on valuation model widely accepted by market participants, such as present value techniques and option pricing models. Forward foreign exchange contracts and foreign exchange swap contracts are usually valued based on the current forward exchange rate. Convertible bonds derivative instruments are measured by using appropriate option pricing models (binary tree model for convertible bond pricing).

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• v. The output of valuation model is an estimated value and the valuation technique may not be able to capture all relevant factors of the Group’s financial and non-financial instruments. Therefore, the estimated value derived using valuation model is adjusted accordingly with additional inputs, for example, model risk or liquidity risk and etc. In accordance with the Group’s management policies and relevant control procedures relating to the valuation models used for fair value measurement, management believes adjustment to valuation is necessary in order to reasonably represent the fair value of financial and non-financial instruments at the consolidated balance sheet. The inputs and pricing information used during valuation are carefully assessed and adjusted based on current market conditions.

• vi. The Group takes into account adjustments for credit risks to measure the fair value of financial and non-financial instruments to reflect credit risk of the counterparty and the Group’s credit quality.

• E. For the years ended December 31, 2021 and 2020, there was no transfer between Level 1 and Level 2.

• F. The following table presents the changes in Level 3 instruments for the years ended December 31, 2021 and 2020:

31, 2021 and 2020:
			2021
Financial assets at fair value through
profit or loss / Financial assets at
fair value through other
comprehensive income			Equitysecurities
At January 1		$	3,477,039
Gains and losses recognized
in profit or loss			672,096
Gains and losses recognized
in other comprehensive income			4,040,630
Acquired in the year			68,367
Disposed in the year	(		115,154)
Proceeds from capital reduction	(		99,638)
Transfers to Level 1	(		4,937,575)
Effect on exchange rate changes	(		12,443)
At December 31		$	3,093,322

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2020

2020
Financial assets at fair value through profit or loss / Financial assets at fair value through other comprehensive income Equitysecurities Hybrid instrument At January 1 3,517,289 $ 33,521 $ Gains and losses recognized in profit or loss 2,251,088 - Gains and losses recognized in other comprehensive income 44,404) ( - Acquired in the year 254,152 - Disposed in the year 2,532,664) ( - Conversion in the year 33,129 33,129) ( Effect on exchange rate changes 1,551) ( 392) ( At December 31 3,477,039 $ - $ 2021 Financial liabilities at fair value through profit or loss Derivative instruments At January 1 3,208,560 $ Gains and losses recognized in profit or loss 2,146,546 Conversion in the year 5,355,106) ( Issued in the year - At December 31 - $	Total 3,550,810 $ 2,251,088 44,404) ( 254,152 2,532,664) ( - 1,943) ( 3,477,039 $ 2020 Derivative instruments
		- $ 1,786,197 - 1,422,363 3,208,560 $

• G. Investment management segment is in charge of valuation procedures for fair value measurements being categorized within Level 3, which is to verify independent fair value of financial instruments. Such assessment is to ensure the valuation results are reasonable by applying independent information to make results close to current market conditions, confirming the resource of information is independent, reliable and in line with other resources and represented as the exercisable price, and frequently calibrating valuation model, performing back-testing, updating inputs used to the valuation model and making any other necessary adjustments to the fair value. Convertible bonds derivative instruments are evaluated through outsourced appraisal performed by the external valuer.

• Investment management segment set up valuation policies, valuation processes, and rules for measuring fair value of financial instruments and ensure compliance with the related requirements in IFRS.

• H. The following is the qualitative information of significant unobservable inputs and sensitivity analysis of changes in significant unobservable inputs to valuation model used in Level 3 fair value measurement:

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Non-derivative equity instrument: Unlisted shares Venture capital shares Private equity fund investment Non-derivative equity instrument: Unlisted shares	Fair value at December 31,2021	Valuation technique	Significant unobservable input	Range (weighted average)	Relationship of inputs to fairvalue
	392,225 $ 2,652,619 27,726 20,752 Fair value at December 31,2020	Market comparable companies Using the last transaction price in an inactive market Net asset value Net asset value Valuation technique	Price to sales ratio multiple, price to book ratio multiple Discount for lack of marketability Discount for lack of marketability Discount for lack of marketability Not applicable Significant unobservable input	1.36~5.19 (2.09) 30%~80% (35%) 25%~31% (28%) 12% (12%) Not applicable Range (weighted average)	The higher the multiple, the higher the fair value The higher the discount for lack of marketability, the lower the fair value The higher the discount for lack of marketability, the lower the fair value The higher the discount for lack of marketability, the lower the fair value Not applicable Relationship of inputs to fairvalue
	1,273,432 $ 1,988,800	Market comparable companies Using the last transaction price in an inactive market	Price to earnings ratio multiple, price to sales ratio multiple, price to book ratio multiple Discount for lack of marketability Discount for lack of marketability	0.62~4.50 (0.34) 30%~70% (11%) 23%~30% (14%)	The higher the multiple, the higher the fair value The higher the discount for lack of marketability, the lower the fair value The higher the discount for lack of marketability, the lower the fair value

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Non-derivative equity instrument: Unlisted shares Venture capital Private equity fund investment Derivative instrument liabilities: Convertible bond	Fair value at December 31,2020 Valuation technique Significant unobservable input 191,460 Net asset value Discount for lack of marketability 23,347 Net asset Not applicable 3,208,560 Binary tree model for convertible bond pricing Volatility rate	Range (weighted average) Relationship of inputs to fairvalue 5% (0%) The higher the discount for lack of marketability, the lower the fair value Not Not applicable applicable 48.60% The higher the volatility, the higher the fair value

• I. The Group has carefully assessed the valuation models and assumptions used to measure fair value. However, use of different valuation models or assumptions may result in different measurement. The following is the effect of profit or loss or of other comprehensive income from financial assets and liabilities categorized within Level 3 if the inputs used to valuation models have changed:

have changed:
Financial assets	Input	Change ± 1% Change ± 1% ± 1%		December	31,2021
			Recognized in		Recognized in other comprehensive income
					Favourable Unfavourable change change $ 427 ($ 427) 31,2020	Unfavourable change
Equity instrument Financial assets	Liquidity discount Input
					Recognized in other comprehensive income
					Favourable Unfavourable change change $ 14,882 ($ 14,882) $ - $ -	Unfavourable change
Equity instrument Financial liabilities	Liquidity discount Volatility rate
Derivative instruments

(4) Other matter

The Company and the subsidiaries implemented epidemic prevention measures in response to the Covid-19 outbreak and numbers of the government's epidemic prevention measures. The epidemic did not make a significant impact on the Group’s operation and business in the third quarter of 2021.

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13. SUPPLEMENTARY DISCLOSURES

(1) Significant transactions information

• A. Loans to others: Please refer to Table 1.

• B. Provision of endorsements and guarantees to others: None.

• C. Holding of marketable securities at the end of the period (not including subsidiaries, associates and joint ventures): Please refer to Table 2.

• D. Acquisition or sale of the same security with the accumulated cost exceeding $300 million or 20% of the Company’s paid-in capital: Please refer to Table 3.

• E. Acquisition of real estate reaching $300 million or 20% of paid-in capital or more: None.

• F. Disposal of real estate reaching $300 million or 20% of paid-in capital or more: None.

• G. Purchases or sales of goods from or to related parties reaching $100 million or 20% of paid-in capital or more: Please refer to Table 4.

• H. Receivables from related parties reaching $100 million or 20% of paid-in capital or more: Please refer to Table 5.

• I. Trading in derivative instruments undertaken during the reporting periods: Please refer to Note 6(2).

• J. Significant inter-company transactions during the reporting period: Please refer to Table 6.

(2) Information on investees

Names, locations and other information of investee companies (not including investees in Mainland China): Please refer to Table 7.

(3) Information on investments in Mainland China

• A. Basic information: Please refer to Table 8.

• B. Significant transactions, either directly or indirectly through a third area, with investee companies in the Mainland Area: Please refer to Table 1, 4, 5 and 6.

(4) Major shareholders information

• Names, number of shares and ownership of shareholders whose equity interest is greater than 5%: None.

14. SEGMENT INFORMATION

(1) General information

The Group is primarily engaged in the research, development, design, manufacture and sales of TFTLCD panels, modules and monitors of LCD, color filter, and low temperature poly-silicon TFT-LCD. The Group operates TFT-LCD business only in a single industry. The chief operating decision-maker who allocates resources and assesses performance of the Group as a whole, has identified that the Group has only one reportable operating segment.

The Group’s operating segment information was prepared in accordance with the Group’s accounting policies. The chief operating decision-maker allocated resources and assesses performance of the operating segments primarily based on the operating revenue and profit (loss) before tax and discontinued operations of individual operating segment.

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(2) Segment information

The segment information provided to the chief operating decision-maker for the reportable segments is as follows:

is as follows:
Segment revenue Segment income Depreciation and amortization Capital expenditure-property, plant and equipment Segment assets	2021 2020 TFT LCD TFT LCD 350,076,690 $ 269,911,051 $ 62,411,097 $ 2,557,131 $ 36,300,651 $ 35,568,103 $ 28,138,827 $ 20,673,368 $ 467,519,590 $ 379,559,837 $ Years endedDecember31,
		2,557,131 $
		35,568,103 $
		20,673,368 $
		379,559,837 $

(3) Reconciliation for segment income

In current year, the revenue and income or loss before tax of reportable operating segment are consistent with those of continuing operations.

(4) Information on products

Revenue from external customers is mainly from sale of TFT-LCD products, the sales amount is in agreement with operating revenue.

(5) Geographical information

Geographical information for the years ended December 31, 2021 and 2020 is as follows:

Years ended December 31,

Taiwan Hong Kong China US Singapore Europe Others Total	Revenue Non-current assets 84,022,636 $ 165,878,773 $ 117,554,017 - 40,760,938 30,187,997 40,031,179 6,765 17,186,664 1,215 11,276,151 114,837 39,245,105 75,057 350,076,690 $ 196,264,644 $ 2021	2020	2020
	Revenue 84,022,636 $ 117,554,017 40,760,938 40,031,179 17,186,664 11,276,151 39,245,105 350,076,690 $	Revenue 52,975,743 $ 88,286,363 44,620,274 31,387,034 17,385,575 9,939,661 25,316,401 269,911,051 $	Non-current assets
			172,239,947 $ - 30,464,485 553 - 52,675 115,940
			202,873,600 $

(6) Major customer information

There are no individual sales to the Group's customers that exceed 10% of the sales in the statements of comprehensive income for the years ended December 31, 2021 and 2020.

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Innolux Corporation and Subsidiaries

Table 1

Loans to others

Year ended December 31, 2021

Expressed in thousands of NTD (Except as otherwise indicated)

No.	Creditor	Borrower	General ledger account	Is a related party	Maximum outstanding balance during the year ended December 31, 2021	Balance as at December 31, 2021	Actual amount drawn down	Interest rate	Nature of loan	Amount of transactions with the borrower	Reason for short-term financing	Allowance for doubtful accounts	Collateral	Collateral	Limit on loans granted to a singleparty	Ceiling on total loansgranted	Footnote
													Item	Value
1 1 1 1 1 2 3 4	Innocom Technology (Shenzhen) Co., Ltd. Innocom Technology (Shenzhen) Co., Ltd. Innocom Technology (Shenzhen) Co., Ltd. Innocom Technology (Shenzhen) Co., Ltd. Innocom Technology (Shenzhen) Co., Ltd. Innolux Japan Co., Ltd. Innolux Holding Limited Warriors Technology Investments Ltd	Foshan Innolux Optoelectronics Ltd. Ningbo Innolux Optoelectronics Ltd. Ningbo Innolux Display Ltd. Shanghai Innolux Optoelectronics Ltd. Nanjing Innolux Optoelectronics Ltd. Innolux Corporation Innolux Corporation Innolux Corporation	Other receivables Other receivables Other receivables Other receivables Other receivables Other receivables Other receivables Other receivables	Yes Yes Yes Yes Yes Yes Yes Yes	4,340,224 $ 2,170,112 2,387,123 1,779,492 3,689,190 2,322,410 210,954 3,266,240	4,340,224 $ 2,170,112 2,170,112 1,302,067 3,038,157 2,322,410 210,954 3,266,240	4,340,224 $ 1,736,090 1,909,699 1,128,459 2,604,134 2,322,410 210,954 3,266,240	2.00% 2.00% 2.00% 2.00% 2.00% 1.00% 0.00% 0.00%	Short-term financing Short-term financing Short-term financing Short-term financing Short-term financing Long-term and short-term financing Long-term and short-term financing Long-term and short-term financing	$ - - - - - - - -	Operating support Operating support Operating support Operating support Operating support Operating support Operating support Operating support	$ - - - - - - - -	- - - - - - - -	$ - - - - - - - -	23,638,850 23,638,850 23,638,850 23,638,850 23,638,850 7,238,094 36,025,692 11,919,114	23,638,850 23,638,850 23,638,850 23,638,850 23,638,850 7,238,094 36,025,692 11,919,114	A A A A A A A A

Note A:

1.For loans obtained for short-term financing, financial limit on loans granted to a single party shall not exceed 10% of the Group’s net equity, based on the most recent audited financial statements of the creditor.

2.The financial limit on loans granted shall not exceed 40% of the creditor’s net equity. If it is for short-term capital needs, the limit shall not exceed 30% of the creditor’s net equity.

• 3.The policy for loans granted to direct or indirect wholly-owned ultimate parent company or overseas subsidiaries is as follows: for short-term capital needs, financial limit is not restricted to the abovementioned two rules, however,

• financial limit on total loans granted and limit on loans granted to a single party for the overseas subsidiaries should not exceed 200% of the creditor’s net equity.

Table 1, Page 1

Innolux Corporation and Subsidiaries

Holding of marketable securities at the end of the year (not including subsidiaries, associates and joint ventures)

December 31, 2021

Table 2

Expressed in thousands of NTD

(Except as otherwise indicated)

Securities held by	Marketable securities	Relationship with the securities issuer	General ledger account		As of December 31,2021	As of December 31,2021		Footnote
				Shares/Units	Book value	Ownership (%)	Fair value
Innolux Corporation Innolux Corporation Innolux Corporation Innolux Corporation Innolux Corporation Innolux Corporation Innolux Corporation Innolux Corporation Innolux Corporation Innolux Corporation Innolux Corporation Innolux Corporation Yuan Chi Investment Co., Ltd. Yuan Chi Investment Co., Ltd. Yuan Chi Investment Co., Ltd. Yuan Chi Investment Co., Ltd.	Common stock	None None Other related party None None None None None None None None None None None None None	Financial assets at fair value through profit or loss Financial assets at fair value through profit or loss Financial assets at fair value through profit or loss Financial assets at fair value through profit or loss Financial assets at fair value through profit or loss Financial assets at fair value through profit or loss Financial assets at fair value through profit or loss Financial assets at fair value through other comprehensive income Financial assets at fair value through other comprehensive income Financial assets at fair value through other comprehensive income Financial assets at fair value through other comprehensive income Financial assets at fair value through other comprehensive income Financial assets at fair value through profit or loss Financial assets at fair value through profit or loss Financial assets at fair value through other comprehensive income Financial assets at fair value through other comprehensive income	900,000 60,200,000 4,270,212 57,211,305 1,669,000 1,209 477,142 8,347,068 1,027,000 263,000 674,000 1,110,000 1,439,180 315,000 1,520,000 176,000	$ 15,929 1,257,556 27,726 798,097 170,238 - 24,164 4,489,240 64,599 13,965 68,411 70,041 - 4,394 75,316 8,615	1 3 19 8 - - 12 4 - - - - 3 - 1 -	$ 15,929 1,257,556 27,726 798,097 170,238 - 24,164 4,489,240 64,599 13,965 68,411 70,041 - 4,394 75,316 8,615
	AvanStrate Inc. TPV Technology Limited Chi Lin Optoelectronics Co., Ltd. Cheng Mei Materials Technology Corporation General Interface Solution (GIS) Holding Limited Allied Material Technology Corp. Obsidian Sensors, Inc. VIZIO Holding Corp. Cathay Financial Holding Co., Ltd. Preferred Stock A TAISHIN FINANCIAL HOLDING CO., LTD. Preferred Stock E Chailease Holding Company Limited Class A Preferred Shares Fubon Financial Holding Co., Ltd. Preferred Shares B Trillion Science, Inc. Cheng Mei Materials Technology Corporation WPG Holdings Limited Preferred Share A WT MICROELECTRONICS CO., LTD. Preferred Shares A

Table 2, Page 1

Securities held by	Marketable securities	Relationship with the securities issuer	General ledger account		As of December 31,2021	As of December 31,2021		Footnote
				Shares/Units	Book value	Ownership (%)	Fair value
Yuan Chi Investment Co., Ltd. InnoJoy Investment Corporation InnoJoy Investment Corporation InnoJoy Investment Corporation InnoJoy Investment Corporation Ningbo Innolux Optoelectronics Ltd. Ningbo Innolux Optoelectronics Ltd. Warriors Technology Investments Ltd Warriors Technology Investments Ltd Warriors Technology Investments Ltd Warriors Technology Investments Ltd Warriors Technology Investments Ltd Warriors Technology Investments Ltd Warriors Technology Investments Ltd Warriors Technology Investments Ltd Nets Trading Ltd. Innolux Corporation Innolux Corporation Innolux Corporation	Common stock	Other related party None None Other related party None None None None None None None None None Other related party Other related party None None None None	Financial assets at fair value through other comprehensive income Financial assets at fair value through profit or loss Financial assets at fair value through profit or loss Financial assets at fair value through other comprehensive income Financial assets at fair value through other comprehensive income Financial assets at fair value through profit or loss Financial assets at fair value through profit or loss Financial assets at fair value through profit or loss Financial assets at fair value through profit or loss Financial assets at fair value through profit or loss Financial assets at fair value through other comprehensive income Financial assets at fair value through other comprehensive income Financial assets at fair value through other comprehensive income Financial assets at fair value through other comprehensive income Financial assets at fair value through other comprehensive income Financial assets at fair value through profit or loss Financial assets at fair value through profit or loss Financial assets at fair value through profit or loss Financial assets at fair value through profit or loss	1,200,000 6,964,222 954,000 7,347,144 9,000,000 - 30,599,775 16,000,000 414,136 2,016,000 1,027,371 22,525,000 4,000 1,900 1,819,240 90 69,820,457 180,718,346 5,164,587	$ 5,571 178,981 73,172 192,495 2,538,000 1,381,176 227,843 37,869 20,973 49,440 13,887 2,297,550 1,441 - 8,995 20,752 1,001,952 2,471,974 930,746	12 5 - 7 5 - 8 6 11 3 - 7 14 19 11 - - - -	$ 5,571 178,981 73,172 192,495 2,538,000 1,381,176 227,843 37,869 20,973 49,440 13,887 2,297,550 1,441 - 8,995 20,752 1,001,952 2,471,974 930,746
	VISIONATICS INC. Advanced Optoelectronic Technology, Inc. ENNOSTAR Inc. EPILEDS Co., Ltd. Fitipower Integrated Technology Inc. 上海辰岱投資中心(有限合夥) Shenzhen Tiandeyu Electronics Co., Ltd. OED Holding Ltd. Obsidian Sensors, Inc. Reco Technology Holding Limited Kymeta Corporation General Interface Solution (GIS) Holding Limited CJK Associates Co., Ltd. Perinnova Limited KA Imaging Inc. PilotTech Global Fund Beneficiarycertificates
	Taishin Ta-Chong Money Market Fund Taishin 1699 Money Market Fund FSITC Money Market

Table 2, Page 2

Securities held by	Marketable securities	Relationship with the securities issuer	General ledger account		As of December 31,2021	As of December 31,2021		Footnote
				Shares/Units	Book value	Ownership (%)	Fair value
Innolux Corporation Innolux Corporation Innolux Corporation Innolux Corporation Innolux Corporation Innolux Corporation Innolux Corporation Innolux Corporation Innolux Corporation Innolux Corporation Ningbo Innolux Display Ltd. Foshan Innolux Optoelectronics Ltd. Ningbo Innolux Electronics Ltd. Ningbo Innolux Optoelectronics Ltd. Ningbo CarUX Technology Ltd. Nanjing Innolux Optoelectronics Ltd. Innocom Technology (Shenzhen) Co., Ltd. Shanghai Innolux Optoelectronics Ltd. Ningbo Innolux Optoelectronics Ltd.	Beneficiarycertificates	None None None None None None None None None None None None None None None None None None None	Financial assets at fair value through profit or loss Financial assets at fair value through profit or loss Financial assets at fair value through profit or loss Financial assets at fair value through profit or loss Financial assets at fair value through profit or loss Financial assets at fair value through profit or loss Financial assets at fair value through profit or loss Financial assets at fair value through profit or loss Financial assets at amortized cost Financial assets at amortized cost Financial assets at fair value through profit or loss Financial assets at fair value through profit or loss Financial assets at fair value through profit or loss Financial assets at fair value through profit or loss Financial assets at fair value through profit or loss Financial assets at fair value through profit or loss Financial assets at fair value through profit or loss Financial assets at fair value through profit or loss Financial assets at fair value through profit or loss	150,267,533 92,184,251 66,065,266 7,975,245 181,530,803 90,561,003 18,225,781 46,301,937 - - - - - - - - - - -	$ 2,252,075 1,502,336 881,066 100,160 2,301,375 1,401,096 300,186 760,259 477,563 4,705,600 2,926 10,715 84 13,950 417 6,014 2,512 1,935 1,315,317	- - - - - - - - Not applicable Not applicable Not applicable Not applicable Not applicable Not applicable Not applicable Not applicable Not applicable Not applicable Not applicable	$ 2,252,075 1,502,336 881,066 100,160 2,301,375 1,401,096 300,186 760,259 477,563 4,705,600 2,926 10,715 84 13,950 417 6,014 2,512 1,935 1,315,317
	Jih Sun Money Market Fund Capital Money Market Fund Union Money Market Fund Cathay Taiwan Money Market Fund Mega Diamond Money Market Fund FSITC Taiwan Money Market Yuanta De-Li Money Market Fund Hua Nan Phoenix Money Market Fund Financialproducts
	Fixed Income RMB-Structured Deposits Fixed Income Structured Linked Deposit Chang Jiang Sheng Shih Ru Yi Serials A congregate group pension plan Chang Jiang Sheng Shih Ru Yi Serials A congregate group pension plan Chang Jiang Sheng Shih Ru Yi Serials A congregate group pension plan Chang Jiang Sheng Shih Ru Yi Serials A congregate group pension plan Chang Jiang Sheng Shih Ru Yi Serials A congregate group pension plan Chang Jiang Sheng Shih Ru Yi Serials A congregate group pension plan Chang Jiang Sheng Shih Ru Yi Serials A congregate group pension plan Chang Jiang Sheng Shih Ru Yi Serials A congregate group pension plan Structuredproducts
	Floating Income RMB-Structured Deposits

Table 2, Page 3

Securities held by	Marketable securities	Relationship with the securities issuer	General ledger account		As of December 31,2021	As of December 31,2021		Footnote
				Shares/Units	Book value	Ownership (%)	Fair value
Ningbo Innolux Optoelectronics Ltd. Innolux Corporation Innolux Corporation Innolux Corporation Innolux Corporation Innolux Corporation Innolux Corporation Innolux Corporation Innolux Corporation Innolux Corporation Innolux Corporation Innolux Corporation Innolux Corporation Innolux Corporation Innolux Corporation Innolux Corporation Innolux Corporation Innolux Corporation Innolux Corporation Innolux Corporation Innolux Corporation Innolux Corporation	Structuredproducts	None None None None None None None None None None None None None None None None None None None None None None	Financial assets at fair value through profit or loss Financial assets at amortized cost Financial assets at amortized cost Financial assets at amortized cost Financial assets at amortized cost Financial assets at amortized cost Financial assets at amortized cost Financial assets at amortized cost Financial assets at amortized cost Financial assets at amortized cost Financial assets at amortized cost Financial assets at amortized cost Financial assets at amortized cost Financial assets at amortized cost Financial assets at amortized cost Financial assets at amortized cost Financial assets at amortized cost Financial assets at amortized cost Financial assets at amortized cost Financial assets at amortized cost Financial assets at amortized cost Financial assets at amortized cost	- - - - - - - - - - - - - - - - - - - - - -	$ 1,954,213 201,588 251,530 201,188 100,946 251,833 252,140 200,877 251,300 100,892 100,791 202,028 101,901 251,096 50,413 100,750 125,888 151,198 144,582 264,031 157,374 167,210	Not applicable Not applicable Not applicable Not applicable Not applicable Not applicable Not applicable Not applicable Not applicable Not applicable Not applicable Not applicable Not applicable Not applicable Not applicable Not applicable Not applicable Not applicable Not applicable Not applicable Not applicable Not applicable	$ 1,954,213 201,422 252,175 201,186 100,947 251,840 252,033 200,876 251,923 100,892 100,685 201,202 100,713 251,093 100,825 100,750 251,775 151,209 143,151 261,210 156,610 166,856
	Floating Income RMB-Structured Deposits Bonds
	Taiwan Mobile Co., Ltd. Nan Ya Plastics Corporation Hon Hai Precision Industry Co., Ltd., 2017, Third Taiwan Power Company,2012,Fourth Fubon Financial Holding Co., Ltd. Highwealth Construction corp. Hon Hai Precision Industry Co., Ltd., 2017, Second Far Eastern New Century Corporation Co., Ltd. Far Eastone Telecommunications,2017, Third Far Eastone Telecommunications,2018, First Taipei Financial Center Corporation Taiwan Semiconductor Manufacturing Co., Ltd. Chang Chun Petrochemical Co., Ltd. CPC Corporation, Taiwan Taiwan Power Company,2012,Third China Steel Corporation CTBC Financial Holding Co., Ltd. ADCB Finance Cayman LTD. Agricultural Bank of China (New York Branch) Arab Petroleum Investments Corporation Bank of Communications (Hong Kong Branch)

Table 2, Page 4

Securities held by	Marketable securities	Relationship with the securities issuer	General ledger account		As of December 31,2021	As of December 31,2021		Footnote
				Shares/Units	Book value	Ownership (%)	Fair value
Innolux Corporation Innolux Corporation Innolux Corporation Innolux Corporation Innolux Corporation Innolux Corporation Innolux Corporation Innolux Corporation Innolux Corporation Innolux Corporation Innolux Corporation Innolux Corporation Innolux Corporation Innolux Corporation Innolux Corporation Innolux Corporation Innolux Corporation Innolux Corporation Innolux Corporation Innolux Corporation	Bonds	None None None None None None None None None None None None None None None None None None None None	Financial assets at amortized cost Financial assets at amortized cost Financial assets at amortized cost Financial assets at amortized cost Financial assets at amortized cost Financial assets at amortized cost Financial assets at amortized cost Financial assets at amortized cost Financial assets at amortized cost Financial assets at amortized cost Financial assets at amortized cost Financial assets at amortized cost Financial assets at amortized cost Financial assets at amortized cost Financial assets at amortized cost Financial assets at amortized cost Financial assets at amortized cost Financial assets at amortized cost Financial assets at amortized cost Financial assets at amortized cost	- - - - - - - - - - - - - - - - - - - -	$ 144,459 223,010 276,800 229,679 145,117 34,852 253,295 250,544 276,420 288,891 173,638 262,143 267,107 264,742 195,482 32,600 145,923 264,830 56,167 278,199	Not applicable Not applicable Not applicable Not applicable Not applicable Not applicable Not applicable Not applicable Not applicable Not applicable Not applicable Not applicable Not applicable Not applicable Not applicable Not applicable Not applicable Not applicable Not applicable Not applicable	$ 143,386 221,061 276,100 229,411 143,785 34,512 252,155 248,587 274,565 287,339 171,915 259,906 264,009 261,935 193,728 32,326 144,483 261,756 56,041 274,325
	Daimler Finance North America LLC Doosan Infracore Co., Ltd. Emirates NBD Bank PJSC FAB Sukuk Co. Ltd. GS Caltex Corporation Hyundai Capital America Hyundai Capital Services, Inc. Industrial and Commercial Bank of China Limited (Hong Kong Branch) KIA Corporation Korea Resources Corporation NongHyup Bank POSCO Saudi Electricity Global SUKUK Company 4 Shinhan Bank Siam Commercial Bank Cayman Islands Sinopec Capital 2013 LTD. SK broadband CO.LTD. Societe Generale SA Sumitomo Corporation Sumitomo Mitsui Trust Bank

Table 2, Page 5

Innolux Corporation and Subsidiaries

Acquisition or sale of the same security with the accumulated cost exceeding $300 million or 20% of the Company's paid-in capital

Year ended December 31, 2021

Investor Table 3	Marketable securities (Note 1)	General ledger account	Counterparty (Note 2)	Relationship with the investor (Note 2)	Balance as at January1,2021	Balance as at January1,2021	Addition(Note 3)	Addition(Note 3)		Disposal(Note 3)	Disposal(Note 3)		Balance as at December 31,2021(Note 6) Expressed in thousands of NTD (Except as otherwise indicated)	Balance as at December 31,2021(Note 6) Expressed in thousands of NTD (Except as otherwise indicated)
					Shares/Units	Amount	Shares/Units	Amount	Shares/Units	Selling price	Book value	Gain (loss) on disposal	Shares/Units	Amount
Innolux Corporation Innolux Corporation Innolux Corporation Innolux Corporation Innolux Corporation Innolux Corporation Innolux Corporation Innolux Corporation Innolux Corporation Innolux Corporation Innolux Corporation Innolux Corporation Innolux Corporation	Taishin Ta-Chong Money Market Fund CTBC Hwa-win Money Market Fund Fubon Chi-Hsiang Money Market Fund Jih Sun Money Market Fund Capital Money Market Fund TCB Taiwan Money Market Fund Union Money Market Fund Taishin 1699 Money Market Fund FSITC Money Market Fund Mega Diamond Money Market Fund FSITC Taiwan Money Market Yuanta De-Li Money Market Fund Hua Nan Phoenix Money Market Fund	Note 4 Note 4 Note 4 Note 4 Note 4 Note 4 Note 4 Note 4 Note 4 Note 4 Note 4 Note 4 Note 4	- - - - - - - - - - - - -	- - - - - - - - - - - - -	- - - - - - - - - - - - -	$ - - - - - - - - - - - - -	69,820,457 234,022,269 82,245,047 150,267,533 92,184,251 185,531,904 66,065,266 180,718,346 5,164,587 181,530,803 90,561,003 18,225,781 46,301,937	$ 1,000,000 2,600,000 1,300,000 2,250,000 1,500,000 1,900,000 880,000 2,470,000 930,000 2,300,000 1,400,000 300,000 760,000	- 234,022,269 82,245,047 - - 185,531,904 - - - - - - -	$ - 2,602,655 1,301,010 - - 1,901,368 - - - - - - -	$ - 2,602,655 1,301,010 - - 1,901,368 - - - - - - -	$ - - - - - - - - - - - - -	69,820,457 - - 150,267,533 92,184,251 - 66,065,266 180,718,346 5,164,587 181,530,803 90,561,003 18,225,781 46,301,937	$ 1,001,951 - - 2,252,075 1,502,336 - 881,066 2,471,974 930,746 2,301,375 1,401,096 300,186 760,259

Table 3, Page 1

Investor	Marketable securities (Note 1)	General ledger account	Counterparty (Note 2)	Relationship with the investor (Note 2)	Balance as at January1,2021	Balance as at January1,2021	Addition(Note 3)	Addition(Note 3)		Disposal(Note 3)	Disposal(Note 3)		Balance as at December 31,2021(Note 6)	Balance as at December 31,2021(Note 6)
					Shares/Units	Amount	Shares/Units	Amount	Shares/Units	Selling price	Book value	Gain (loss) on disposal	Shares/Units	Amount
Innolux Corporation Innolux Corporation Ningbo Innolux Display Ltd. Foshan Innolux Optoelectronics Ltd. Ningbo Innolux Optoelectronics Ltd. Ningbo Innolux Optoelectronics Ltd. Ningbo Innolux Optoelectronics Ltd. Ningbo Innolux Optoelectronics Ltd. Nanjing Innolux Optoelectronics Ltd.	Fixed Income RMB-Structured Deposits Fixed Income Structured Linked Deposit Floating Income RMB-Structured Deposits Floating Income RMB-Structured Deposits Floating Income RMB-Structured Deposits Floating Income RMB-Structured Deposits Floating Income RMB-Structured Deposits Floating Income RMB-Structured Deposits Floating Income RMB-Structured Deposits	Note 5 Note 5 Note 4 Note 4 Note 4 Note 4 Note 4 Note 4 Note 4	- - - - - - - - -	- - - - - - - - -	- - - - - - - - -	$ - - - - - - - - -	- - - - - - - - -	$ 475,530 4,699,650 436,480 875,743 1,969,461 3,583,083 1,287,909 1,910,123 1,983,118	- - - - - - - - -	$ - - 443,212 889,175 1,998,283 3,639,591 - - 2,012,359	$ - - 443,212 889,175 1,998,283 3,639,591 - - 2,012,359	$ - - - - - - - - -	- - - - - - - - -	$ 477,563 4,705,600 - - - - 1,315,317 1,954,213 -

Note 1: Marketable securities in the table refer to stocks, bonds, beneficiary certificates and other related derivative securities.

Note 2: Fill in the columns the counterparty and relationship if securities are accounted for using the equity method; otherwise leave the columns blank. Note 3: Aggregate purchases and sales amounts should be calculated separately at their market values to verify whether they individually reach NT$300 million or 20% of paid-in capital or more. Note 4: Code of general ledger account is "financial assets at fair value through profit or loss". Due to adoption of IFRS, it would be valued at fair value rather than recognized disposal gain or loss. Note 5: Code of general ledger account is "financial assets at amortized cost". The gain or loss due to disposal is interest income. Note 6: The carrying amount as at December 31, 2021 included gains or losses on valuation.

Table 3, Page 2

Innolux Corporation and Subsidiaries

Table 4

Purchases or sales of goods from or to related parties reaching $100 million or 20% of paid-in capital or more

Year ended December 31, 2021

Expressed in thousands of NTD (Except as otherwise indicated)

Purchaser/seller	Counterparty	Relationship with the counterparty		Transaction	Transaction		Differences in transaction terms compared to third party transactions	Differences in transaction terms compared to third party transactions	Notes/accounts receivable(payable)	Notes/accounts receivable(payable)	Footnote
			Purchases (sales)	Amount	Percentage of total purchases (sales)	Credit term	Unitprice	Credit term	Balance	Percentage of total notes/accounts receivable(payable)
Innolux Corporation Innolux Corporation Innolux Corporation Innolux Corporation Innolux Corporation Innolux Corporation Innolux Corporation Innolux Corporation Innolux Corporation Innolux Corporation Innolux Corporation Innolux Corporation Innolux Corporation	Innolux USA Inc. CARUX TECHNOLOGY PTE. LTD. Innolux Hong Kong Limited HONGFUJIN PRECISION ELECTRONICS (YANTAI) CO., LTD. Hon Hai Precision Industry Co., Ltd. Foshan Innolux Optoelectronics Ltd. Honfujin Precision Electronics (Chongqing) Co., Ltd. InnoCare Optoelectronics Corporation COMPETITION TEAM IRELAND LIMITED Innolux Japan Co., Ltd. Foshan Innolux Optoelectronics Ltd. Ningbo Innolux Display Ltd. Ningbo Innolux Optoelectronics Ltd.	An indirect wholly-owned subsidiary An indirect wholly-owned subsidiary An indirect wholly-owned subsidiary An indirect wholly-owned subsidiary of Hon Hai Precision Industry Co., Ltd. Same major stockholder An indirect wholly-owned subsidiary An indirect wholly-owned subsidiary of Hon Hai Precision Industry Co., Ltd. A subsidiary of the Company An indirect wholly-owned subsidiary of Hon Hai Precision Industry Co., Ltd. A subsidiary of the Company An indirect wholly-owned subsidiary An indirect wholly-owned subsidiary An indirect wholly-owned subsidiary	Sales Sales Sales Sales Sales Sales Sales Sales Sales Sales Processing expense Processing expense Processing expense	16,314,528 $ 11,843,010 5,784,107 2,397,790 1,900,182 1,584,421 1,176,963 490,580 174,399 119,443 30,985,143 25,322,932 22,975,073	5 4 2 1 1 - - - - - 12 10 9	90~120 days 60 days 60 days 60 days 90 days 60 days 45 days 90 days 45 days 60 days 60 days 60 days 60 days	Similar with general sales Similar with general sales Similar with general sales Similar with general sales Similar with general sales Similar with general sales Similar with general sales Similar with general sales Similar with general sales Similar with general sales Cost plus Cost plus Cost plus	No material difference No material difference No material difference No material difference No material difference No material difference No material difference No material difference No material difference No material difference No material difference No material difference No material difference	3,550,091 $ 4,068,272 - 112,170 896,570 118,073 214,075 482,752 4,979 33,330 4,459,942) ( 6,339,613) ( 6,502,696) (	6 7 - - 1 - - 1 - - 10 14 14

Table 4, Page 1

Differences in transaction

							Differences in transaction	Differences in transaction
Purchaser/seller	Counterparty	Relationship with the counterparty		Transaction			terms compared to third party transactions		Notes/accounts receivable(payable)		Footnote
			Purchases (sales)	Amount	Percentage of total purchases (sales)	Credit term	Unitprice	Credit term	Balance	Percentage of total notes/accounts receivable(payable)
Innolux Corporation Innolux Corporation Innolux Corporation Nanjing Innolux Optoelectronics Ltd. Shanghai Innolux Optoelectronics Ltd. CarUX Technology Inc. Shanghai Innolux Optoelectronics Ltd. CarUX Technology Inc. Innolux Japan Co., Ltd. Innolux Europe B.V. Ningbo Innolux Optoelectronics Ltd. Innolux Hong Kong Limited Ningbo Innolux Display Ltd. InnoCare Optoelectronics Corporation	Innolux Hong Kong Limited Innocom Technology (Shenzhen) Co., Ltd. Ningbo CarUX Technology Ltd. Innolux Hong Kong Limited CARUX TECHNOLOGY PTE. LTD. CARUX TECHNOLOGY PTE. LTD. Innolux Hong Kong Limited Innolux Corporation Innolux Corporation Innolux Corporation Ningbo Innolux Display Ltd. Nanjing Innolux Technology Ltd. Ningbo Innolux Optoelectronics Ltd. InnoCare Optoelectronics Japan Co., Ltd.	An indirect wholly-owned subsidiary An indirect wholly-owned subsidiary An indirect wholly-owned subsidiary An indirect wholly-owned subsidiary An indirect wholly-owned subsidiary An indirect wholly-owned subsidiary An indirect wholly-owned subsidiary Ultimate parent company Ultimate parent company Ultimate parent company An indirect wholly-owned subsidiary An indirect wholly-owned subsidiary An indirect wholly-owned subsidiary An indirect wholly-owned subsidiary	Processing expense Processing expense Processing expense Processing revenue Processing revenue Processing revenue Processing revenue Processing revenue Service revenue Service revenue Sales Sales Sales Sales	17,233,139 $ 322,283 203,034 15,253,655 5,698,685 4,714,830 1,618,206 508,031 294,548 253,499 7,382,709 5,392,767 1,668,187 651,531	7 - - 100 54 90 13 10 66 27 15 16 4 37	60 days 60 days 60 days 60 days 60 days 60 days 60 days 60 days 60 days 60 days 60 days 60 days 60 days 60 days	Cost plus Cost plus Cost plus Similar with general transactions Similar with general transactions Similar with general transactions Similar with general transactions Similar with general transactions Similar with general transactions Similar with general transactions Similar with general transactions Similar with general transactions Similar with general transactions Similar with general transactions	No material difference No material difference No material difference No material difference No material difference No material difference No material difference No material difference No material difference No material difference No material difference No material difference No material difference No material difference	4,597,097) ($ 318,529) ( 75,293) ( 2,949,684 1,329,482 1,842,178 - - 54,907 - 1,461,181 135,428 324,867 250,550	10 1 - 100 64 98 - - 80 - 16 3 4 50

Table 4, Page 2

Differences in transaction

terms compared to third party

							Differences in transaction terms compared to third party	Differences in transaction terms compared to third party
Purchaser/seller	Counterparty	Relationship with the counterparty		Transaction			transactions		Notes/accounts receivable(payable)		Footnote
			Purchases (sales)	Amount	Percentage of total purchases (sales)	Credit term	Unitprice	Credit term	Balance	Percentage of total notes/accounts receivable(payable)
InnoCare Optoelectronics Corporation InnoCare Optoelectronics Corporation Ningbo Innolux Optoelectronics Ltd. Ningbo Innolux Display Ltd. Foshan Innolux Optoelectronics Ltd. Nanjing Innolux Optoelectronics Ltd. Innolux Europe B.V.	InnoCare Optoelectronics USA, INC. Ningbo Innolux Electronics Ltd. Hon Hai Precision Industry Co., Ltd. Hon Hai Precision Industry Co., Ltd. Hon Hai Precision Industry Co., Ltd. Hon Hai Precision Industry Co., Ltd. CARUX TECHNOLOGY PTE. LTD.	An indirect wholly-owned subsidiary An indirect wholly-owned subsidiary Same major stockholder Same major stockholder Same major stockholder Same major stockholder An indirect wholly-owned subsidiary	Sales Sales Purchases Purchases Purchases Purchases Service revenue	451,166 $ 258,284 2,192,021 2,185,769 144,442 105,979 672,777	25 14 4 5 - 1 73	60 days 60 days 90 days after acceptance 90 days after acceptance 90 days after acceptance 90 days after acceptance 60 days	Similar with general transactions Similar with general transactions Similar with general transactions Similar with general transactions Similar with general transactions Similar with general transactions Similar with general transactions	No material difference No material difference No material difference No material difference No material difference No material difference No material difference	151,578 $ 34,120 656,912) ( 710,978) ( 30,889) ( 14,282) ( 143,660	30 7 6 7 - - 100

Table 4, Page 3

Innolux Corporation and Subsidiaries

Receivables from related parties reaching $100 million or 20% of paid-in capital or more

December 31, 2021

Table 5 Creditor	Counterparty	Relationship with the counterparty	Balance as at December 31, 2021 (Note A)	Turnover rate	Overdue receivables	Overdue receivables	Allowance for doubtful accounts Amount collected subsequent to the balance sheet date Expressed in thousands of NTD (Except as otherwise indicated)	Allowance for doubtful accounts Amount collected subsequent to the balance sheet date Expressed in thousands of NTD (Except as otherwise indicated)
					Amount	Action taken
Innolux Corporation Innolux Corporation Innolux Corporation Innolux Corporation Innolux Corporation Innolux Corporation Innolux Corporation Innolux Corporation Ningbo Innolux Optoelectronics Ltd. Ningbo Innolux Display Ltd. Innolux Hong Kong Limited Foshan Innolux Optoelectronics Ltd. Nanjing Innolux Optoelectronics Ltd. CarUX Technology Inc. Innolux Corporation Innolux Corporation	CARUX TECHNOLOGY PTE. LTD. Innolux USA Inc. Hon Hai Precision Industry Co., Ltd. CarUX Technology Inc. InnoCare Optoelectronics Corporation Honfujin Precision Electronics (Chongqing) Co., Ltd. Foshan Innolux Optoelectronics Ltd. HONGFUJIN PRECISION ELECTRONICS (YANTAI) CO., LTD. Innolux Corporation Innolux Corporation Innolux Corporation Innolux Corporation Innolux Hong Kong Limited CARUX TECHNOLOGY PTE. LTD. Innolux USA Inc. CARUX TECHNOLOGY PTE. LTD.	An indirect wholly-owned subsidiary An indirect wholly-owned subsidiary Same major stockholder An indirect wholly-owned subsidiary A subsidiary of the Company An indirect wholly-owned subsidiary of Hon Hai Precision Industry Co., Ltd. An indirect wholly-owned subsidiary An indirect wholly-owned subsidiary of Hon Hai Precision Industry Co., Ltd. Ultimate parent company Ultimate parent company Ultimate parent company Ultimate parent company An indirect wholly-owned subsidiary An indirect wholly-owned subsidiary An indirect wholly-owned subsidiary An indirect wholly-owned subsidiary	4,068,272 $ 3,550,091 1,335,185 (Shown as other receivables) 896,570 534,716 482,752 332,658 (Shown as other receivables) 214,075 118,073 112,170 6,502,696 6,339,613 4,597,097 4,459,942 2,949,684 1,842,178	4.16 4.13 - 1.82 0.34 0.70 - 8.91 17.94 6.75 2.22 4.16 2.53 2.53 2.85 5.12	2,560,260 $ - - 134,769 527,846 342,022 - 62,407 - - - - - - - -	Subsequent collection - - Subsequent collection Subsequent collection Subsequent collection - Subsequent collection - - - - - - - -	279,519 $ 1,182,303 199,783 691 145,316 - 46,342 118,073 - 3,836,063 3,349,598 - 4,459,942 1,479,383 955,002 -	- $ - - - - - - - - - - - - - - -

Table 5, Page 1

Creditor	Counterparty	Relationship with the counterparty	Balance as at December 31, 2021 (Note A)	Turnover rate	Overdue receivables	Overdue receivables	Amount collected subsequent to the balance sheet date	Allowance for doubtful accounts
					Amount	Action taken
Ningbo Innolux Optoelectronics Ltd. Shanghai Innolux Optoelectronics Ltd. Ningbo Innolux Display Ltd. Innocom Technology (Shenzhen) Co., Ltd. InnoCare Optoelectronics Corporation InnoCare Optoelectronics Corporation Innolux Europe B.V. Innolux Hong Kong Limited Foshan Innolux Optoelectronics Ltd.	Ningbo Innolux Display Ltd. CARUX TECHNOLOGY PTE. LTD. Ningbo Innolux Optoelectronics Ltd. Innolux Corporation InnoCare Optoelectronics Japan Co., Ltd. InnoCare Optoelectronics USA, INC. CARUX TECHNOLOGY PTE. LTD. Nanjing Innolux Technology Ltd. Hongfujin Precision Industry (Wuhan) Co.,Ltd.	An indirect wholly-owned subsidiary An indirect wholly-owned subsidiary An indirect wholly-owned subsidiary Ultimate parent company An indirect wholly-owned subsidiary An indirect wholly-owned subsidiary An indirect wholly-owned subsidiary An indirect wholly-owned subsidiary An indirect wholly-owned subsidiary of Hon Hai Precision Industry Co., Ltd.	1,461,181 $ 1,329,482 324,867 318,529 250,550 151,578 143,660 135,428 104,277 (Shown as other receivables)	4.63 8.57 5.78 2.02 5.65 2.40 9.37 5.38 -	- $ - - 262,115 - 67,041 - - 12,923	- - - Subsequent collection - Subsequent collection - - Subsequent collection	696,265 $ 1,051,045 152,493 262,115 111,697 41,563 73,136 125,586 47,120	- $ - - - - - - - -

Note A ： For the information on receivables of loans to related parties reaching NT$100 million or 20% of paid-in capital or more, please refer to Table 1.

Table 5, Page 2

Innolux Corporation and Subsidiaries

Table 6

Expressed in thousands of NTD

Significant inter-company transactions during the reporting period

Year ended December 31, 2021

(Except as otherwise indicated)

Number (Note A)	Companyname	Counterparty	Relationship (Note B)		Transaction(Note D and E)	Transaction(Note D and E)
				General ledger account	Amount	Transaction terms (Note C)	Percentage of consolidated total operatingrevenues or total assets
0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0	Innolux Corporation Innolux Corporation Innolux Corporation Innolux Corporation Innolux Corporation Innolux Corporation Innolux Corporation Innolux Corporation Innolux Corporation Innolux Corporation Innolux Corporation Innolux Corporation Innolux Corporation Innolux Corporation Innolux Corporation Innolux Corporation Innolux Corporation Innolux Corporation Innolux Corporation Innolux Corporation Innolux Corporation Innolux Corporation Innolux Corporation Innolux Corporation	Innocom Technology (Shenzhen) Co., Ltd. Innocom Technology (Shenzhen) Co., Ltd. Innolux Hong Kong Limited Innolux Hong Kong Limited Innolux Hong Kong Limited Ningbo Innolux Optoelectronics Ltd. Ningbo Innolux Optoelectronics Ltd. Foshan Innolux Optoelectronics Ltd. Foshan Innolux Optoelectronics Ltd. Foshan Innolux Optoelectronics Ltd. Foshan Innolux Optoelectronics Ltd. Ningbo Innolux Display Ltd. Ningbo Innolux Display Ltd. Innolux Japan Co., Ltd. Innolux USA Inc. Innolux USA Inc. Innolux USA Inc. CarUX Technology Inc. InnoCare Optoelectronics Corporation InnoCare Optoelectronics Corporation CARUX TECHNOLOGY PTE. LTD. CARUX TECHNOLOGY PTE. LTD. CARUX TECHNOLOGY PTE. LTD. CARUX TECHNOLOGY PTE. LTD.	1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1	Processing expense Accrued expenses Sales Processing expense Accrued expenses Processing expense Accrued expenses Sales Processing expense Accounts receivable Accrued expenses Processing expense Accrued expenses Sales Sales Accounts receivable Other receivables Accounts receivable Sales Accounts receivable Sales Service revenue Accounts receivable Other receivables	322,283 $ 318,529) ( 5,784,107 17,233,139 4,597,097) ( 22,975,073 6,502,696) ( 1,584,421 30,985,143 118,073 4,459,942) ( 25,322,932 6,339,613) ( 119,443 16,314,528 3,550,091 332,658 534,716 490,580 482,752 11,843,010 914,202 4,068,272 1,335,185	- - - - - - - - - - - - - - - - - - - - - - - -	- - 2 5 1 7 1 - 9 - 1 7 1 - 5 1 - - - - 3 - 1 -

Table 6, Page 1

Transaction (Note D and E)

Number (Note A)	Companyname	Counterparty	Relationship (Note B)	General ledger account	Amount	Transaction terms (Note C)	Percentage of consolidated total operatingrevenues or total assets
0 1 1 2 2 3 3 3 4 4 4 5 5 6 6 7 8 8 8 9 9 9 9 9	Innolux Corporation Nanjing Innolux Optoelectronics Ltd. Nanjing Innolux Optoelectronics Ltd. Innolux Hong Kong Limited Innolux Hong Kong Limited Shanghai Innolux Optoelectronics Ltd. Shanghai Innolux Optoelectronics Ltd. Shanghai Innolux Optoelectronics Ltd. Innolux Europe B.V. Innolux Europe B.V. Innolux Europe B.V. Ningbo Innolux Optoelectronics Ltd. Ningbo Innolux Optoelectronics Ltd. Ningbo Innolux Display Ltd. Ningbo Innolux Display Ltd. Innolux Japan Co., Ltd. CarUX Technology Inc. CarUX Technology Inc. CarUX Technology Inc. InnoCare Optoelectronics Corporation InnoCare Optoelectronics Corporation InnoCare Optoelectronics Corporation InnoCare Optoelectronics Corporation InnoCare Optoelectronics Corporation	Ningbo CarUX Technology Ltd. Innolux Hong Kong Limited Innolux Hong Kong Limited Nanjing Innolux Technology Ltd. Nanjing Innolux Technology Ltd. Innolux Hong Kong Limited CARUX TECHNOLOGY PTE. LTD. CARUX TECHNOLOGY PTE. LTD. Innolux Corporation CARUX TECHNOLOGY PTE. LTD. CARUX TECHNOLOGY PTE. LTD. Ningbo Innolux Display Ltd. Ningbo Innolux Display Ltd. Ningbo Innolux Optoelectronics Ltd. Ningbo Innolux Optoelectronics Ltd. Innolux Corporation Innolux Corporation CARUX TECHNOLOGY PTE. LTD. CARUX TECHNOLOGY PTE. LTD. Ningbo Innolux Electronics Ltd. InnoCare Optoelectronics Japan Co., Ltd. InnoCare Optoelectronics Japan Co., Ltd. InnoCare Optoelectronics USA, INC. InnoCare Optoelectronics USA, INC.	1 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3	Processing expense Processing revenue Accounts receivable Sales Accounts receivable Processing revenue Processing revenue Accounts receivable Service revenue Service revenue Accounts receivable Sales Accounts receivable Sales Accounts receivable Service revenue Processing revenue Processing revenue Accounts receivable Sales Sales Accounts receivable Sales Accounts receivable	203,034 $ 15,253,655 2,949,684 5,392,767 135,428 1,618,206 5,698,685 1,329,482 253,499 672,777 143,660 7,382,709 1,461,181 1,668,187 324,867 294,548 508,031 4,714,830 1,842,178 258,284 651,531 250,550 451,166 151,578	- - - - - - - - - - - - - - - - - - - - - - - -	- 4 1 2 - - 2 - - - - 2 - - - - - 1 - - - - - -

Note A: The information of transactions between the Company and the consolidated subsidiaries should be noted in “Number” column. (1) Number 0 represents the parent company.

(2) The subsidiaries are numbered in order from number 1.

Note B: 1 refers to the parent company to the subsidiary. 3 refers to the subsidiary to the subsidiary.

Note C: Except for no comparable transactions from related parties, sales prices were similar to non-related parties transactions and the collection period was mainly 30~120 days; the purchases from related parties were at market prices and payment term was 30~120 days upon receipt of goods.

Note D: Amount disclosure standard: purchases, sales and receivables from related parties in excess of $100 million or 20% of capital. Note E: For the information on transactions between the Company and the consolidated subsidiaries relating to nature of loan, please refer to Table 1.

Table 6, Page 2

Innolux Corporation and Subsidiaries

Table 7

Information on investees

Year ended December 31, 2021

Expressed in thousands of NTD (Except as otherwise indicated)

Investor	Investee	Location	Main business activities	Initial investment amount	Initial investment amount	Shares held	as at December 31,2021	as at December 31,2021	Net profit (loss) of the investee for the year ended December 31, 2021	Investment income (loss) recognized by the Company for the year ended December 31,2021	Footnote
				Balance as at December 31, 2021	Balance as at December 31, 2020	Number of shares	Ownership (%)	Book value
Innolux Corporation Innolux Corporation Innolux Corporation Innolux Corporation Innolux Corporation Innolux Corporation Innolux Corporation Innolux Corporation Innolux Corporation Innolux Corporation Innolux Corporation Innolux Corporation Innolux Corporation Innolux Corporation Innolux Corporation	Innolux Holding Limited Keyway Investment Management Limited Landmark International Ltd. Toppoly Optoelectronics (B.V.I.) Ltd. Innolux Hong Kong Holding Limited Innolux Singapore Holding Pte. Ltd. Yuan Chi Investment Co., Ltd. InnoJoy Investment Corporation InnoCare Optoelectronics Corporation Innolux Japan Co., Ltd. iZ3D, Inc. GIO Optoelectronics Corp. INStek Corporation Ampower Holding Ltd. FI Medical Device Manufacturing Co., Ltd.	Samoa Samoa Samoa BVI Hong Kong Singapore Taiwan Taiwan Taiwan Japan USA Taiwan Taiwan Cayman Taiwan	Investment holdings Investment holdings Investment holdings Investment holdings Investment holdings Investment holdings Investment company Investment company Holdings, R&D, manufacturing and distribution company Holdings, R&D and distribution company Research and development and sale of 3D flat monitor Holdings, R&D, manufacturing and distribution company R&D, manufacturing and distribution company Investment holdings Production and selling of the absorption for medical element	$ 6,192,509 62,197 33,438,542 3,674,115 3,231,780 754,943 1,217,235 1,674,054 205,000 1,682,751 - 451,167 35,300 1,717,714 73,500	$ 6,192,509 62,197 33,438,542 3,674,115 3,231,780 754,943 1,217,235 1,674,054 200,000 1,682,751 - 308,993 - 1,717,714 73,500	180,568,185 1,656,410 709,450,000 146,847,000 1,158,844,000 25,400,000 - 167,405,392 20,500,000 98 4,333 41,288,528 2,647,507 14,062,500 7,350,000	100 100 100 100 100 100 100 100 59 54 35 76 40 50 49	$ 18,012,846 98,524 49,835,425 6,186,203 6,355,418 223,127 877,887 3,844,694 365,463 1,970,209 - 424,120 29,643 801,157 318,640	$ 271,650 5,815 3,602,032 170,034 ( 280,423) ( 19,791) 5,779 ( 8,570) 198,600 158,977 - ( 30,145) ( 891) 397 205,597	$ 271,650 5,815 3,602,032 170,034 ( 278,939) ( 19,791) 5,779 ( 8,570) 180,426 86,547 - ( 20,650) ( 357) 199 100,742

Table 7, Page 1

Investor	Investee	Location	Main business activities	Initial investment amount	Initial investment amount	Shares held	as at December 31,2021	as at December 31,2021	Net profit (loss) of the investee for the year ended December 31, 2021	Investment income (loss) recognized by the Company for the year ended December 31,2021	Footnote
				Balance as at December 31, 2021	Balance as at December 31, 2020	Number of shares	Ownership (%)	Book value
Innolux Corporation Innolux Corporation Innolux Holding Limited Innolux Holding Limited Toppoly Optoelectronics (B.V.I.) Ltd. Innolux Hong Kong Holding Limited Innolux Hong Kong Holding Limited Innolux Hong Kong Holding Limited CarUX Holding Limited CARUX TECHNOLOGY PTE. LTD. CARUX TECHNOLOGY PTE. LTD. CARUX TECHNOLOGY PTE. LTD. Innolux Japan Co., Ltd. Rockets Holding Limited Rockets Holding Limited Suns Holding Ltd Innolux Europe B.V. Innolux Singapore Holding Pte. Ltd.	eLux Inc. PanelSemi Corporation Rockets Holding Limited Suns Holding Ltd Toppoly Optoelectronics (Cayman) Ltd. Innolux Hong Kong Limited Innolux Japan Co., Ltd. CarUX Holding Limited CARUX TECHNOLOGY PTE. LTD. Innolux Optoelectronics Hong Kong Holding Limited Innolux Europe B.V. CarUX Technology Inc. Innolux USA Inc. Stanford Developments Limited Nets Trading Ltd. Warriors Technology Investments Ltd Innolux Technology Germany GmbH INNOLUX OPTOELECTRONICS INDIA PRIVATE LIMITED	USA Taiwan Samoa Samoa Cayman Hong Kong Japan Cayman Singapore Hong Kong Netherlands Taiwan USA Samoa Samoa Samoa Germany India	R&D of MicroLED technology Manufacturing of electronic parts Investment holdings Investment holdings Investment holdings Distribution company Holdings, R&D and distribution company Investment holdings Holdings and distribution company Investment holdings Holding, distribution and R&D testing company R&D, manufacturing and distribution company Distribution company Investment holdings Investment company Investment company Testing and maintenance company Distribution company	$ 91,155 250,000 5,222,180 555,422 3,650,192 - 1,815,603 3,772,473 3,769,371 1,818,180 464,341 1,400,000 369,092 5,391,125 27,477 555,422 33,735 607,284	$ 91,155 - 5,222,180 555,422 3,650,192 - 1,815,603 3,772,473 3,769,371 1,818,180 464,341 1,400,000 369,092 5,391,125 27,477 555,422 33,735 607,284	300,000 25,000,000 160,504,550 18,177,052 146,817,000 35,000,000 82 125,231,749 125,131,749 162,897,802 375,810 140,000,000 12,842 164,000,000 900,001 18,177,052 100,000 144,095,499	28 45 100 100 100 100 46 100 100 100 100 100 100 100 100 100 100 100	$ 6,957 243,661 11,842,308 5,959,558 6,185,879 1,544,927 1,648,838 3,008,984 3,006,600 2,012,564 432,825 1,435,384 898,659 11,819,471 22,713 5,959,557 19,987 84,317	($ 62,015) ( 13,945) 168,142 103,482 170,034 370,155 158,977 ( 723,008) ( 722,695) 239,280 44,816 185,695 88,395 170,103 ( 1,961) 103,482 4,664 ( 11,158)	($ 27,929) ( 6,339) 168,142 103,482 170,034 370,155 72,430 ( 723,008) ( 722,695) 150,184 44,816 3,177 88,395 170,103 ( 1,961) 103,482 4,664 ( 11,158)

Table 7, Page 2

Investor	Investee	Location	Main business activities	Initial investment amount	Initial investment amount	Shares held	as at December 31,2021	as at December 31,2021	Net profit (loss) of the investee for the year ended December 31, 2021	Investment income (loss) recognized by the Company for the year ended December 31,2021	Footnote
				Balance as at December 31, 2021	Balance as at December 31, 2020	Number of shares	Ownership (%)	Book value
Innolux Singapore Holding Pte. Ltd. Innolux Singapore Holding Pte. Ltd. Yuan Chi Investment Co., Ltd. Yuan Chi Investment Co., Ltd. InnoJoy Investment Corporation InnoJoy Investment Corporation Inno Capital Corporation InnoCare Optoelectronics Corporation InnoCare Optoelectronics Corporation InnoCare Optoelectronics Corporation GIO Optoelectronics Corp.	INNOLUX OPTOELECTRONICS PHILIPPINES CORP. INNOLUX OPTOELECTRONICS MALAYSIA SDN. BHD. GIO Optoelectronics Corp. INNOLUX OPTOELECTRONICS INDIA PRIVATE LIMITED Inno Capital Corporation CDIB-Innolux Limited Partnership CDIB-Innolux Limited Partnership InnoCare Optoelectronics Japan Co., Ltd. InnoCare Optoelectronics USA, INC. Innocare Optoelectronics Europe B.V. Double Star Inc.	Philippines Malaysia Taiwan India Taiwan Taiwan Taiwan Japan USA Netherlands Mauritius	Manufacturer and distribution company Manufacturer and distribution company Holdings, R&D, manufacturing and distribution company Distribution company Investment company Investment company Investment company Distribution company Distribution company After-sales service company Investment holdings	$ 28,733 - 858 - 15,000 47,139 2,861 87,149 27,963 1,661 298,113	$ 28,733 121,179 858 - - - - 87,149 27,963 - 298,113	5,000,000 - 77,235 1 1,500,000 - - 30,010 900,000 500 10,000,000	100 - - - 100 16 1 100 100 100 100	$ 26,010 - 805 - 16,777 68,134 4,135 76,223 23,788 1,963 98,017	($ 98) ( 93) ( 30,145) ( 11,158) 415 ( 8,809) ( 8,809) 6,233 3,473 419 ( 583)	($ 98) ( 93) ( 48) - 415 ( 1,451) ( 88) 3,975 3,473 419 ( 583)

Table 7, Page 3

Innolux Corporation and Subsidiaries

Information on investments in Mainland China

Year ended December 31, 2021

Investee in Mainland China Table 8	Main business activities	Paid-in capital (Note A)	Investment method (Note C)	Accumulated amount of remittance from Taiwan to Mainland China as of January 1, 2021	Amount remitted from Taiwan to Mainland China/Amount remitted back to Taiwan for the year ended December 31,2021	Amount remitted from Taiwan to Mainland China/Amount remitted back to Taiwan for the year ended December 31,2021	Accumulated amount of remittance from Taiwan to Mainland China as of December 31,2021	Net income of investee for the year ended December 31, 2021	Ownership held by the Company (direct or indirect)	Investment income (loss) recognized by the Company for year ended December 31, 2021(Note B)	Expressed in thousands of NTD (Except as otherwise indicated) Book value of investments in Mainland China as of December 31,2021 Accumulated amount of investment income remitted back to Taiwan as of December 31,2021 Footnote	Expressed in thousands of NTD (Except as otherwise indicated) Book value of investments in Mainland China as of December 31,2021 Accumulated amount of investment income remitted back to Taiwan as of December 31,2021 Footnote	Expressed in thousands of NTD (Except as otherwise indicated) Book value of investments in Mainland China as of December 31,2021 Accumulated amount of investment income remitted back to Taiwan as of December 31,2021 Footnote
					Remitted to Mainland China	Remitted back to Taiwan
Innocom Technology (Shenzhen) Co., Ltd. Guangzhou OED Technologies Co., Ltd. Ningbo Innolux Optoelectronics Ltd. Foshan Innolux Optoelectronics Ltd. Ningbo Innolux Display Ltd. Nanjing Innolux Technology Ltd. Nanjing Innolux Optoelectronics Ltd. Shanghai Innolux Optoelectronics Ltd. Foshan Innolux Logistics Ltd. GIO (Maanshan) Optoelectronics Co., Ltd. Ningbo CarUX Technology Ltd. Ningbo Innolux Electronics Ltd.	Manufacturing and selling of LCD backend module and related components Manufacturing and selling of electronic paper Manufacturing and selling of LCD backend module and related components Manufacturing and selling of LCD backend module and related components Manufacturing and selling of LCD backend module and related components Purchases and sales of monitor-related components Manufacturing and selling of LCD backend module and related components Manufacturing and selling of LCD backend module and related components Warehousing services Manufacturing Manufacturing and selling of LCD backend module and related components Manufacturing and selling of medical equipment	$ 4,539,520 332,125 8,580,800 10,601,440 4,428,800 58,128 4,318,080 581,280 41,520 276,800 1,215,620 66,729	2 2 2 2 2 2 2 2 2 2 3 1	$ 3,512,917 55,360 203,865 10,601,440 4,428,800 58,128 3,986,905 - 41,520 276,800 - -	$ - - - - - - - - - - - 87,799	$ - - - - - - - - - - - -	$ 3,512,917 55,360 203,865 10,601,440 4,428,800 58,128 3,986,905 - 41,520 276,800 - 87,799	$ 170,103 ( 92,889) 1,807,694 1,342,743 449,408 23,602 146,432 239,280 5,806 ( 583) ( 194,220) ( 524)	100 3 100 100 100 100 100 100 100 77 100 59	$ 170,103 - 1,807,694 1,344,930 449,408 23,602 146,432 239,280 5,806 ( 445) ( 193,461) ( 555)	$ 11,819,425 25,717 22,192,373 21,960,654 5,681,349 630,141 5,555,719 2,100,614 94,007 74,859 1,021,853 103,970	$ 1,026,603 - 4,778,535 - - - - - - - - -	2.1 2.2 2.3 2.3 2.3 2.4 2.4 2.5 2.6 2.7

Table 8, Page 1

Ceiling on investments in Mainland China:

Companyname	Accumulated amount of remittance from Taiwan to Mainland China as of December 31,2021	Investment amount approved by the Investment Commission of the Ministry of Economic Affairs (MOEA)	Ceiling on investments in Mainland China imposed by the Investment Commission of MOEA
Innolux Corporation	22,445,799 $	29,983,852 $	(Note D)

Note A: The relevant figures were listed in NT$. Where foreign currencies were involved, the figures were converted to NT$ using exchange rate. Note B: Profit or loss recognized for the year ended December 31, 2021 was audited by independent auditors.

Note C: The investment methods are as follows:

1. Directly investing in Mainland China.

2. Through investing in companies in the third area, which then invested in the investee in Mainland China.

3. 2.1. Through investing in Stanford Developments Limited in the third area, which then invested in the investee in Mainland China.

4. 2.2. Through investing in Warriors Technology Investments Ltd in the third area, which then invested in the investee in Mainland China.

5. 2.3. Through investing in Landmark International Ltd. in the third area, which then invested in the investee in Mainland China.

6. 2.4. Through investing in Toppoly Optoelectronics (Cayman) Ltd. in the third area, which then invested in the investee in Mainland China.

7. 2.5. Through investing in Innolux Optoelectronics Hong Kong Holding Limited in the third area, which then invested in the investee in Mainland China.

8. 2.6. Through investing in Keyway Investment Management Limited in the third area, which then invested in the investee in Mainland China.

9. 2.7. Through investing in Double Star Inc. in the third area, which then invested in the investee in Mainland China.

10. Others.

The company invested via the company investment entities in Mainland China to invest in Ningbo CarUX Technology Ltd. Except for the investment via the holding companies in Mainland China,

other investments shall not be approved by Investment Commission of the Ministry of Economic Affairs.

Note D: In accordance with “Rules Governing Applications for Investment or Technical Cooperation in Mainland China”, the Company has obtained the certificate of being qualified for operating headquarters, issued by the Industrial Development Bureau of the Ministry of Economic Affairs, the ceiling amount of the investment in Mainland China is not applicable to the Company.

• Ⅰ. The amount approved by the Investment Commission of Ministry of Economic Affairs (MOEA) is USD 10,000 thousand, Amlink (Shanghai) Ltd. has finished liquidation in December 2019 but has not yet applied for the cancellation of investment with the Investment Commission of MOEA.

II. The amount approved by the Investment Commission of Ministry of Economic Affairs (MOEA) is USD 34,676 thousand, Interface Technology (ChengDu) Co., Ltd. disposed the equity interest held in its parent company, General Interface Solution (GIS) Holding Limited, on the open market but has not yet applied for the cancellation of investment with the Investment Commission of MOEA.

Table 8, Page 2