INNOLUX CORPORATION AND SUBSIDIARIES

CONSOLIDATED FINANCIAL STATEMENTS AND

REVIEW REPORT OF INDEPENDENT

ACCOUNTANTS

MARCH 31, 2020 AND 2019

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REVIEW REPORT OF INDEPENDENT ACCOUNTANTS

To the Board of Directors and Shareholders of Innolux Corporation

Introduction

We have reviewed the accompanying consolidated balance sheets of Innolux Corporation and subsidiaries (the “Group”) as at March 31, 2020 and 2019, and the related consolidated statements of comprehensive income, of changes in equity and of cash flows for the three-month periods then ended, and notes to the consolidated financial statements, including a summary of significant accounting policies. Management is responsible for the preparation and fair presentation of these consolidated financial statements in accordance with “Regulations Governing the Preparation of Financial Reports by Securities Issuers” and International Accounting Standard 34, “Interim Financial Reporting” as endorsed by the Financial Supervisory Commission. Our responsibility is to express a conclusion on these consolidated financial statements based on our reviews.

Scope of Review

We conducted our reviews in accordance with the Statement of Auditing Standards No. 65 “Review of Financial Information Performed by the Independent Auditor of the Entity” in the Republic of China. A review of consolidated financial statements consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Conclusion

Based on our reviews, nothing has come to our attention that causes us to believe that the accompanying consolidated financial statements do not present fairly, in all material respects, the consolidated financial position of the Group as at March 31, 2020 and 2019, and of its consolidated financial performance and its consolidated cash flows for the three-month periods then ended in accordance with “Regulations

~2~

Governing the Preparation of Financial Reports by Securities Issuers” and International Accounting Standard 34, “Interim Financial Reporting” as endorsed by the Financial Supervisory Commission.

For and on behalf of PricewaterhouseCoopers, Taiwan

May 5, 2020

------------------------------------------------------------------------------------------------------------------------------------------------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

MARCH 31, 2020, DECEMBER 31, 2019 AND MARCH 31, 2019

(Expressed in thousands of New Taiwan dollars)

(The consolidated balance sheets as of March 31, 2020 and 2019 are reviewed, not audited)

Assets	Notes	March 31, 2019
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 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	6(1) 6(2) 6(4) 6(5) 7 7 6(6) 8 6(2) 6(3) 6(7) 6(8), 7 and 8 6(9) 6(10) 6(11) and 8 6(8) and 8	`$` `44,055,572` `184,177` `33,157,713` `37,725,139` `3,035,885` `1,178,209` `32,762,298` `2,657,438` `191,593`
		`154,948,024`
		`2,310,331` `4,533,675` `1,889,960` `206,117,747` `6,819,263` `547,887` `17,644,827` `7,338,152` `2,364,193`
		`249,566,035`
		`$` `404,514,059`

(Continued)

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INNOLUX CORPORATION AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS

MARCH 31, 2020, DECEMBER 31, 2019 AND MARCH 31, 2019

(Expressed in thousands of New Taiwan dollars)

(The consolidated balance sheets as of March 31, 2020 and 2019 are reviewed, not audited)

	Liabilities and Equity	Notes			March 31, 2020		December 31, 2019		March 31, 2019
	Current Liabilities
2100	Short-term borrowings	6(12)		`$`	`1,700,000`	`$`	`-`	`$`	`-`
2120	Financial liabilities at fair	6(2)
	value through profit or
	loss - current				`376,432`		`345,463`		`186,397`
2170	Accounts payable				`42,360,443`		`47,656,235`		`48,332,582`
2180	Accounts payable - related	7
	parties				`3,205,375`		`3,784,991`		`2,340,571`
2200	Other payables	6(13) and 7			`24,808,373`		`28,622,732`		`30,328,325`
2230	Current income tax
	liabilities				`1,572,954`		`2,311,481`		`5,069,561`
2250	Provisions - current	6(18) and 9			`7,141,669`		`6,775,927`		`7,129,633`
2280	Lease liabilities - current				`451,105`		`453,848`		`473,131`
2320	Long-term liabilities,	6(15)
	current portion				`10,545,141`		`16,022,013`		`16,195,816`
2399	Other current liabilities				`4,751,526`		`4,845,455`		`4,220,787`
21XX	Total current liabilities				`96,913,018`		`110,818,145`		`114,276,803`
	Non-current liabilities
2530	Corporate bonds payable	6(14)			`7,706,782`		`97,018`		`-`
2540	Long-term borrowings	6(15)			`19,603,194`		`19,604,768`		`29,669,625`
2570	Deferred income tax
	liabilities				`1,359,025`		`1,465,526`		`954,286`
2580	Lease liabilities - non-
	current				`4,891,561`		`4,977,024`		`5,591,017`
2600	Other non-current	6(16)
	liabilities				`665,434`		`691,836`		`619,363`
25XX	Total non-current
	liabilities				`34,225,996`		`26,836,172`		`36,834,291`
2XXX	Total liabilities				`131,139,014`		`137,654,317`		`151,111,094`
	Equity attributable to
	owners of the parent
3110	Share capital - common	6(19)
	stock				`97,110,720`		`97,110,720`		`99,520,720`
3200	Capital surplus	6(20)			`100,371,779`		`100,362,379`		`99,648,129`
	Retained earnings	6(21)
3310	Legal reserve				`7,870,713`		`7,870,713`		`7,648,437`
3320	Special reserve				`4,663,463`		`4,663,463`		`1,090,721`
3350	Unappropriated retained
	earnings				`24,595,677`		`29,864,446`		`48,021,380`
3400	Other equity interest	6(22)	`(`		`8,687,505) (`		`7,325,437) (`		`2,526,422)`
3500	Treasury shares	6(19)	`(`		`618,580) (`		`618,580)`		`-`
31XX	Equity attributable to
	owners of the parent				`225,306,267`		`231,927,704`		`253,402,965`
36XX	Non-controlling interests				`187,066`		`182,325`		`-`
3XXX	Total equity				`225,493,333`		`232,110,029`		`253,402,965`
3X2X	Total liabilities and
	equity			`$`	`356,632,347`	`$`	`369,764,346`	`$`	`404,514,059`

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

FOR THE THREE-MONTH PERIODS ENDED MARCH 31, 2020 AND 2019 (Expressed in thousands of New Taiwan dollars, except loss per share amounts) (Reviewed, not audited)

Items Notes
2020
2019
6(23) and 7
$
50,391,575
$
59,924,024
6(6)(27) and 7
(
51,285,828) (
59,048,720)
(
894,253)
875,304
6(27)
(
728,513) (
781,700)
(
1,570,158) (
1,686,706)
(
3,021,633) (
3,014,309)
(
5,320,304) (
5,482,715)
(
6,214,557) (
4,607,411)
6(24)
559,156
722,537
6(25)
923,840
391,625
6(26)
(
262,609) (
270,857)
6(7)
34,061
132,427
1,254,448
975,732
(
4,960,109) (
3,631,679)
6(29)
(
303,495) (
93,116)
($
5,263,604) ($
3,724,795)
6(22)
($
995,488)$
698,452
(
995,488)
698,452
6(22)
(
379,427)
1,484,019
6(22)
12,416
(
45,430)
(
367,011)
1,438,589
($
1,362,499)$
2,137,041
($
6,626,103) ($
1,587,754)
($
5,268,769) ($
3,724,795)
$
5,165
$
-
($
6,630,837) ($
1,587,754)
$
4,734
$
-
6(30)
( $
0.55) ( $
0.37)

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 (loss) profit
Non-operating income and expenses
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
Loss before income tax
7950
Income tax expense
8200
Loss for the period
Other comprehensive (loss) income (net)
Components of other comprehensive
(loss) income that will not be reclassified
to profit or loss
8316
Unrealized (losses) gains on financial
assets at fair value through other
comprehensive income
8310
Components of other comprehensive
(loss) 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 income
(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 (loss) income for
the period, net of tax
8500
Total comprehensive loss for the period
(Loss) profit attributable to:
8610
Owners of the parent
8620
Non-controlling interest
Other comprehensive (loss) income
attributable to:
8710
Owners of the parent
8720
Non-controlling interest
Loss per share (in dollars)
9750
Basic loss per share

Items	Notes 2020 2019 6(23) and 7 `$` `50,391,575` `$` `59,924,024` 6(6)(27) and 7 `(` `51,285,828) (` `59,048,720)` `(` `894,253)` `875,304` 6(27) `(` `728,513) (` `781,700)` `(` `1,570,158) (` `1,686,706)` `(` `3,021,633) (` `3,014,309)` `(` `5,320,304) (` `5,482,715)` `(` `6,214,557) (` `4,607,411)` 6(24) `559,156` `722,537` 6(25) `923,840` `391,625` 6(26) `(` `262,609) (` `270,857)` 6(7) `34,061` `132,427` `1,254,448` `975,732` `(` `4,960,109) (` `3,631,679)` 6(29) `(` `303,495) (` `93,116)` `($` `5,263,604) ($` `3,724,795)` 6(22) `($` `995,488)$` `698,452` `(` `995,488)` `698,452` 6(22) `(` `379,427)` `1,484,019` 6(22) `12,416` `(` `45,430)` `(` `367,011)` `1,438,589` `($` `1,362,499)$` `2,137,041` `($` `6,626,103) ($` `1,587,754)` `($` `5,268,769) ($` `3,724,795)` `$` `5,165` `$` `-` `($` `6,630,837) ($` `1,587,754)` `$` `4,734` `$` `-` 6(30) `( $` `0.55) ( $` `0.37)`
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 (loss) profit Non-operating income and expenses 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 Loss before income tax 7950 Income tax expense 8200 Loss for the period Other comprehensive (loss) income (net) Components of other comprehensive (loss) income that will not be reclassified to profit or loss 8316 Unrealized (losses) gains on financial assets at fair value through other comprehensive income 8310 Components of other comprehensive (loss) 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 income (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 (loss) income for the period, net of tax 8500 Total comprehensive loss for the period (Loss) profit attributable to: 8610 Owners of the parent 8620 Non-controlling interest Other comprehensive (loss) income attributable to: 8710 Owners of the parent 8720 Non-controlling interest Loss per share (in dollars) 9750 Basic loss 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

THREE MONTHS ENDED MARCH 31, 2020 AND 2019

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

(UNAUDITED)

Notes				Equityat	butable to owners of t	heparent	heparent	heparent			Non-controlling interests	Total
	Common stock	Capital surplus		Retained Earnings		Other EquityInterest			Treasuryshares	Total
			Legal reserve	Special reserve	Unappropriated earnings	Financial statements translation differences of foreign operations		Unrealized gains (losses) from financial assets measured at fair value through other comprehensive income
6(22) 6(20) 6(22) 6(20) 6(20) 6(20)	`$` `99,520,720` `-` `-` `-` `-` `$` `99,520,720` `$` `97,110,720` `-` `-` `-` `-` `-` `-` `$` `97,110,720`	`$` `99,648,115` `-` `-` `-` `14` `$` `99,648,129` `$ 100,362,379` `-` `-` `-` `9,274` `13` `113` `$ 100,371,779`	`$ 7,648,437` `-` `-` `-` `-` `$ 7,648,437` `$ 7,870,713` `-` `-` `-` `-` `-` `-` `$ 7,870,713`	`$` `1,090,721` `-` `-` `-` `-` `$` `1,090,721` `$` `4,663,463` `-` `-` `-` `-` `-` `-` `$` `4,663,463`	`$` `51,746,175` `(` `3,724,795` `)` `-` `(` `3,724,795` `)` `-` `$` `48,021,380` `$` `29,864,446` `(` `5,268,769` `)` `-` `(` `5,268,769` `)` `-` `-` `-` `$` `24,595,677`		`($ 6,461,149 )` `-` `1,438,589` `1,438,589` `-` `($ 5,022,560 )` `($ 9,497,686 )` `-` `(` `366,580 )` `(` `366,580 )` `-` `-` `-` `($ 9,864,266 )`	`$` `1,797,686` `-` `698,452` `698,452` `-` `$` `2,496,138` `$` `2,172,249` `-` `(` `995,488 )` `(` `995,488 )` `-` `-` `-` `$` `1,176,761`	`$` `-` `-` `-` `-` `-` `$` `-` `($` `618,580 )` `-` `-` `-` `-` `-` `-` `($` `618,580 )`	`$ 254,990,705` `(` `3,724,795 )` `2,137,041` `(` `1,587,754 )` `14` `$ 253,402,965` `$ 231,927,704` `(` `5,268,769 )` `(` `1,362,068 )` `(` `6,630,837 )` `9,274` `13` `113` `$ 225,306,267`	`$` `-` `-` `-` `-` `-` `$` `-` `$` `182,325` `5,165` `(` `431 )` `4,734` `-` `7` `-` `$` `187,066`	`$` `254,990,705` `(` `3,724,795` `)` `2,137,041` `(` `1,587,754` `)` `14` `$` `253,402,965` `$` `232,110,029` `(` `5,263,604` `)` `(` `1,362,499` `)` `(` `6,626,103` `)` `9,274` `20` `113` `$` `225,493,333`

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

~7~

INNOLUX CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

FOR THE THREE-MONTH PERIODS ENDED MARCH 31, 2020 AND 2019

(Expressed in thousands of New Taiwan dollars)

(Reviewed, not audited)

CASH FLOWS FROM OPERATING ACTIVITIES
Loss before tax
Adjustments
Adjustments to reconcile profit (loss)
Depreciation and amortization

Net gain on financial assets or liabilities at fair
value through profit or loss
Share of profit of associates and joint ventures
accounted for under equity method

Gain from disposal of investments

(Gain) loss on disposal of property, plant and
equipment

Interest expense

Interest income

Unrealized foreign exchange gain
Changes in operating assets and liabilities
Changes in operating assets
Financial assets /liabilities at fair value
through profit or loss - current
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 (outflow) inflow generated from operations
Cash paid for income tax
Net cash flows (used in) from operating
activities Notes
2020
2019
($
4,960,109 ) ($
3,631,679 )
6(27)
8,786,013
8,777,199
(
1,144,677 ) (
557,824 )
6(7)
(
34,061 ) (
132,427 )
6(25)
- (
10,153 )
6(25)
(
2,334 )
1,672
6(26)
262,609
270,857
6(24)
(
148,822 ) (
337,704 )
(
172,616 ) (
173,608 )
119,700
377,354
6,496,769
7,339,018
499,846
1,414,092
(
265,977 )
293,377
(
5,001,577 ) (
1,905,746 )
509,283 (
668,829 )
60,835
17,450
(
5,074,690 ) (
4,018,263 )
(
579,616 ) (
311,556 )
(
1,832,815 ) (
2,653,015 )
365,742
346,719
(
93,929 )
124,934
(
25,307 ) (
14,059 )
(
2,235,733 )
4,547,809
(
948,541 ) (
656,633 )
(
3,184,274 )
3,891,176

(Continued)

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INNOLUX CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS

FOR THE THREE-MONTH PERIODS ENDED MARCH 31, 2020 AND 2019

(Expressed in thousands of New Taiwan dollars)

(Reviewed, not audited)

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
Decrease in financial assets at amortized cost -
current
Increase in other financial assets
Acquisition of property, plant and equipment

Proceeds from disposal of property, plant and
equipment
Acquisition of intangible assets

Decrease (increase) in other non-current assets
Interest received
Net cash flows (used in) from investing
activities
CASH FLOWS FROM FINANCING ACTIVITIES
Increase in short-term borrowings
Payment of long-term borrowings
Payment of bonds payable
Interest paid
Payment of the principal portion of lease liabilities
Others

Net cash flows from (used in) financing
activities
Effect of changes in foreign currency exchange
Net increase in cash and cash equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period Notes
2020
2019
($
234,666 ) ($
149,008 )
15,912
-
6,718,190
18,442,645
(
468,440 ) (
319 )
6(32)
(
6,511,583 ) (
6,764,718 )
40,766
1,196
6(11)
(
5,568 ) (
20,413 )
148 (
461,491 )
137,335
354,964
(
307,906 )
11,402,856
1,700,000
-
(
5,496,500 ) (
5,480,000 )
8,900,934
-
(
197,027 ) (
267,837 )

(
112,472 ) (
117,079 )
6(20)
113
-
4,795,048 (
5,864,916 )
(
148,207 )
779,128
1,154,661
10,208,244
34,732,975
33,847,328
$
35,887,636 $
44,055,572

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

~9~

INNOLUX CORPORATION AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

FOR THE THREE-MONTH PERIODS ENDED MARCH 31, 2020 AND 2019

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

(Reviewed, not audited)

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 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 reported to the Board of Directors on May 5, 2020.

3. 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 2020 are as follows:

New Standards,Interpretations andAmendments	Effective date by International Accounting StandardsBoard
Amendments to IAS 1 and IAS 8, ‘Disclosure Initiative-Definition of Material’ Amendments to IFRS 3, ‘Definition of a business’ Amendments to IFRS 9, IAS 39 and IFRS 7, ‘Interest rate benchmark reform’	January 1, 2020 January 1, 2020 January 1, 2020

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

None.

~10~

(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:

Effective date by International Accounting New Standards, Interpretations and Amendments Standards Board Amendments to IFRS 10 and IAS 28, ‘Sale or contribution of assets To be determined by between an investor and its associate or joint venture’ International Accounting Standards Board IFRS 17, ‘Insurance contracts’ January 1, 2021 Amendments to IAS 1, ‘Classification of liabilities as current or nonJanuary 1, 2022 current’

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.

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

A. The consolidated financial statements of the Group have been prepared in accordance with the “Regulations Governing the Preparation of Financial Reports by Securities Issuers” and the International Accounting Standard 34, “Interim financial reporting” as endorsed by the FSC.
B. These financial statements should be read with the consolidated financial statements for the year ended December 31, 2019.

(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.

~11~

B. The preparation of financial statements in conformity with International Financial Reporting Standards, International Accounting Standards, IFRIC Interpretations, and SIC Interpretations as endorsed by the FSC (collectively referred herein as the “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
The basis applied in these consolidated financial statements is consistent with that applied in the consolidated financial statements for the year ended December 31, 2019.
B. Subsidiaries included in the consolidated financial statements:

Main
Business
Name of Investor
Name ofSubsidiary
Activities
Innolux
Corporation
Bright Information
Holding Ltd.
Investment holdings
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
CarUX Technology Inc.
R&D, manufacturing
and distribution
company
InnoCare
Optoelectronics
Corporation
Investment, R&D,
manufacturing and
distribution company
GIO Optoelectronics
Corp.
Investment, R&D,
manufacturing and
distribution company

March
December
March
31,2020
31,2019
31,2019
Description
-
-
100
(e)
100
100
100
-
100
100
100
-
100
100
100
-
100
100
100
-
100
100
100
-
100
100
100
-
100
100
100
-
100
100
100
-
54
54
54
-
100
100
100
-
-
100
100
(h)
100
100
-
(a)
63
63
24
(d)
Ownership (%)

~12~

==> picture [467 x 46] intentionally omitted <==

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

Main Ownership (%)
Business March December March
Name of Investor Name of Subsidiary Activities 31, 2020 31, 2019 31, 2019 Description
----- End of picture text -----

Name of Investor	Name ofSubsidiary	Activities	31,2020	31,2019	31,2019	Description
Innolux Holding	Rockets Holding Ltd.	Investment holdings	100	100	100	-
Limited
	Suns Holding Ltd.	Investment holdings	100	100	100	-
	Lakers Trading Ltd.	Distribution company	100	100	100	-
Keyway	Foshan Innolux Logistics	Warehousing	100	100	100	-
Investment	Ltd.	company
Management
Limited
Landmark	Ningbo Innolux	Processing company	100	100	100	-
International Ltd.	Optoelectronics Ltd.
	Foshan Innolux	Processing company	100	100	100	-
	Optoelectronics Ltd.
	Ningbo Innolux Display	Processing company	100	100	100	-
	Ltd.
Toppoly	Toppoly Optoelectronics	Investment holdings	100	100	100	-
Optoelectronics	(Cayman) Ltd.
(B.V.I.) Ltd.
Innolux Hong	Innolux Optoelectronics	Investment holdings	-	100	100	(h)
Kong Holding	Hong Kong Holding
Limited	Limited
	Innolux Hong Kong	Distribution company	100	100	100	-
	Limited
	Innolux Europe B.V.	Investment,	-	100	100	(h)
		distribution, and
		R&D testing
		company
	Innolux Japan Co., Ltd.	Investment, R&D	46	46	46	-
		and distribution
		company
	CarUX Holding Limited	Investment holdings	100	100	-	(f)
Innolux Japan	Innolux USA, Inc.	Distribution company	100	100	100	-
Co., Ltd.
Innolux	Innolux Optoelectronics	Distribution company	100	100	100	-
Singapore	India Private Limited
Holding Pte. Ltd.
	Innolux Optoelectronics	Manufacturing and	100	100	100	-
	Philippines Corp.	distribution company
	Innolux Optoelectronics	Manufacturing and	100	100	100	-
	Malaysia SDN. BHD.	distribution company
Rockets Holding	Stanford Developments	Investment holdings	100	100	100	-
Ltd.	Ltd.
	Nets Trading Ltd.	Investment company	100	100	100	-
Suns Holding	Warriors Technology	Investment company	100	100	100	-
Ltd.	Investments Ltd.

~13~

==> picture [467 x 46] intentionally omitted <==

Name of Investor	Name ofSubsidiary	Activities	31,2020	31,2019	31,2019	Description
Toppoly	Nanjing Innolux	Distribution company	100	100	100	-
Optoelectronics	Technology Ltd.
(Cayman) Ltd.
	Nanjing Innolux	Processing company	100	100	100	-
	Optoelectronics Ltd.
CarUX Holding	CARUX	Investment holdings	100	100	-	(g)
Limited	TECHNOLOGY PTE.
	LTD.
CARUX	Innolux Optoelectronics	Investment holdings	100	-	-	(h)
TECHNOLOGY	Hong Kong Holding
PTE. LTD.	Limited
	Innolux Europe B.V.	Investment,	100	-	-	(h)
		distribution, and
		R&D testing
		company
	CarUX Technology Inc.	R&D, manufacturing	100	-	-	(h)
		and distribution
		company
Innolux	Shanghai Innolux	Processing company	100	100	100	-
Optoelectronics	Optoelectronics Ltd.
Hong Kong
Holding Limited
Innolux Europe	Innolux Technology	Testing and	100	100	100	-
B.V.	Germany GmbH	maintenance
		company
Stanford	Innocom Technology	Processing company	100	100	100	-
Developments	(Shenzhen) Co., Ltd.
Ltd.
Ningbo Innolux	Ningbo Innolux	Distribution company	100	100	100	-
Display Ltd.	Electornics Ltd.
Ningbo Innolux	Ningbo Innolux Flent	Distribution company	100	100	100	-
Optoelectronics	Electornics Ltd.
Ltd.
Foshan Innolux	Foshan Innolux Flent	Distribution company	100	100	100	-
Optoelectronics	Electornics Ltd.
Ltd.
Innocom	Shenzhen PixinLED	R&D and	100	100	100	-
Technology	Technology Co., LTD.	distribution company
(Shenzhen) Co.,
LTD.
	Innolux Automations	R&D and	100	100	100	-
	and Intelligence Systems	distribution company
	(ShenZhen) Co., Ltd.
InnoCare	InnoCare	Distribution company	100	100	-	(b)
Optoelectronics	Optoelectronics Japan
Corporation	Co., Ltd.

~14~

==> picture [467 x 46] intentionally omitted <==

Name of Investor	Name ofSubsidiary	Activities	31,2020	31,2019	31,2019	Description
InnoCare	InnoCare	Distribution company	100	100	-	(c)
Optoelectronics	Optoelectronics USA,
Corporation	INC.
GIO	Double Star Inc.	Investment holdings	100	100	-	(d)
Optoelectronics
Corp.
	GIO (Maanshan)	Processing company	100	100	-	(d)
	Optoelectronics Co., Ltd.

  - (a) InnoCare Optoelectronics Corporation was established in the second quarter of 2019 and was included in the consolidated financial statements since the date of establishment.

  - (b) InnoCare Optoelectronics Japan Co., Ltd. was established in the third quarter of 2019 and was included in the consolidated financial statements since the date of establishment.

  - (c) InnoCare Optoelectronics USA, INC. was established in the third quarter of 2019 and was included in the consolidated financial statements since the date of establishment.

  - (d) GIO Optoelectronics Corp. and its subsidiaries were formerly associates accounted for under the equity method; the Group obtained control over it in the third quarter of 2019. GIO Optoelectronics Corp. and its subsidiaries were included in the consolidated financial statements since the control commenced.

  - (e) In the third quarter of 2019, Bright Information Holding Ltd. had completed liquidation and dissolution.

  - (f) CarUX Holding Limited was established in the fourth quarter of 2019 and was included in the consolidated financial statements since the date of establishment.

  - (g) CARUX TECHNOLOGY PTE. LTD. was established in the fourth quarter of 2019 and was included in the consolidated financial statements since the date of establishment.

  - (h) In the first quarter of 2020, CarUX Technology Pte. Ltd. obtained 100% equity interest in Innolux Optoelectronics Hong Kong Holding Limited, Innolux Europe B.V. and CarUX Technology Inc. as the Company and its subsidiaries adjusted the investment structure.

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) Convertible bonds payable (convertible bonds which are hybrid financial instruments) 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 in accordance with the contract terms. They are accounted for as follows:

~15~

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.
(5) Employee benefits

Except for the following additional accounting policies, the accounting policies on employee benefits are the same as those described in Note 4 of the 2019 consolidated financial statements. Pension cost for the interim period is calculated on a year-to-date basis by using the pension cost rate derived from the actuarial valuation at the end of the prior financial year, adjusted for significant market fluctuations since that time and for significant curtailments, settlements, or other significant one-off events. And, the related information is disclosed accordingly.

(6) Income tax

Except for the following additional accounting policies, the accounting policies on income tax are the same as those described in Note 4 of the 2019 consolidated financial statements.

A. The interim period income tax expense is calculated according to pretax income times, effective income tax rate, and the related information is disclosed accordingly.
B. If a change in tax rate is enacted or substantively enacted in an interim period, the Group recognizes the effect of the change immediately in the interim period in which the change occurs. The effect of the change on items recognized outside profit or loss is recognized in other comprehensive income or equity while the effect of the change on items recognized in profit or loss is recognized in profit or loss.

5. CRITICAL ACCOUNTING JUDGEMENTS, ESTIMATES AND KEY SOURCES OF ASSUMPTION UNCERTAINTY

For more information, please refer to Note 5 of the consolidated financial statements for the year ended December 31, 2019.

~16~

6. DETAILS OF SIGNIFICANT ACCOUNTS

(1) Cash and cash equivalents

TAILS OF SIGNIFICANT ACCOUNTS Cash and cash equivalents
March 31, 2020 December31,2019 Cash on hand, checking accounts and demand deposits `21,044,936` `$` `21,959,679` `$` Time deposits `14,842,700` `12,773,296` `35,887,636` `$` `34,732,975` `$`	March31,2019
	`15,889,764` `$` `28,165,808`
	`44,055,572` `$`

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

Assets Current items Financial assets mandatorily measured at fair value through profit or loss Forward foreign exchange contracts Non-current items Financial assets mandatorily measured at fair value through profit or loss Listed stocks Unlisted stocks Convertible bonds Liabilities Current items Financial liabilities held for trading Forward foreign exchange contracts Convertible bonds derivative instruments Forward exchange swap contracts	March31,2020 `92,712` `$` `372,531` `$` `2,675,975` `33,795` `3,082,301` `$` March31,2020 `273,969` `$` `102,463` `-` `376,432` `$`	December31,2019 `283,906` `$` `548,180` `$` `2,463,055` `33,521` `3,044,756` `$` December31,2019 `345,463` `$` `-` `-` `345,463` `$`	March31,2019
			`184,177` `$`
			`1,872,602` `$` `402,049` `35,680`
			`2,310,331` `$`
			March31,2019
			`164,517` `$` `-` `21,880`
			`186,397` `$`

~17~

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

March 31, 2020 December 31, 2019

Derivative financial assets and liabilities	Contract Amount (Notional Principal) (in thousands)	Contract Period
Current items 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 Forward foreign exchange contracts Forward foreign exchange contracts
	(in thousands) (Notional Principal) Contract Amount	Contract Period
Current items Forward foreign exchange contracts Forward foreign exchange contracts Forward foreign exchange contracts Forward foreign exchange contracts Forward exchange swap contracts	USD (sell) `420,000` `$` JPY (buy) `45,920,673` EUR (sell) `35,000` HKD (buy) `313,022` EUR (sell) `10,000` JPY (buy) `1,248,835` USD (sell) `884,437` RMB (buy) `5,979,165` USD (sell) `225,000` TWD (buy) `6,903,495`	2019/1-2019/6 2019/1-2019/6 2019/2-2019/5 2019/2-2019/5 2019/2-2019/6 2019/2-2019/6 2019/1-2019/7 2019/1-2019/7 2019/2-2019/5 2019/2-2019/5

The Group entered into forward foreign exchange contracts to hedge exchange rate risk of import and export proceeds in foreign currency. In addition, forward exchange swap contracts are primarily for the requirement of capital management. However, these contracts are not accounted for using hedge accounting.

~18~

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

Non-current items Equity instruments Listed stocks Unlisted stocks	March31,2020 `2,221,454` `$` `1,054,668` `3,276,122` `$`	December31,2019 `3,214,251` `$` `1,054,234` `4,268,485` `$`	March31,2019 `3,360,375` `$` `1,173,300` `4,533,675` `$`

A. The Group has elected to classify equity instruments that are considered to be strategic investments as financial assets at fair value through other comprehensive income.
B. For information on other comprehensive income for fair value change recognized by the Group for the three-month periods ended March 31, 2020 and 2019, please refer to Note 6(22) “Other equity”.

(4) Financial assets at amortized cost

==> picture [480 x 61] intentionally omitted <==

The Group recognized $71,853 and $186,600 of interest income arising from the financial assets at amortized cost for the three-month periods ended March 31, 2020 and 2019, respectively.

(5) Notes receivable and accounts receivable

Notes receivable Accounts receivable Less: Allowance for uncollectible accounts `(`	March31,2020 `52,437` `$` `33,328,917` `33,381,354` `209,418)` `(` `33,171,936` `$`	December 31, 2019 March 31, 2019 `45,906` `$` `34,256` `$` `40,053,319` `37,900,255` `40,099,225` `37,934,511` `209,418)` `209,372)` `(` `39,889,807` `$` `37,725,139` `$`	March 31, 2019

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

Not past due Up to 60 days 61 to 180 days Over 180 days	March31,2020 `32,771,113` `$` `406,663` `155,612` `47,966` `33,381,354` `$`	December31,2019 `39,390,359` `$` `566,949` `117,563` `24,354` `40,099,225` `$`	March31,2019
			`36,935,990` `$` `947,716` `35,548` `15,257` `37,934,511` `$`

The above aging analysis was based on past due date.

B. As of March 31, 2020, December 31, 2019 and March 31, 2019, accounts receivable and notes receivable were all from contracts with customers. As of January 1, 2019, the balance of receivables from contracts with customers amounted to $45,273,886.

~19~

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

(6) Inventories

nventories
Raw materials and supplies Work in progress Finished goods	March31,2020 `5,303,976` `$` `19,088,125` `11,048,552` `35,440,653` `$`	December31,2019 `4,192,118` `$` `14,704,830` `11,542,128` `30,439,076` `$`	March31,2019
			`4,682,289` `$` `14,227,838` `13,852,171` `32,762,298` `$`

For the three-month periods ended March 31, 2020 and 2019, the Group recognized cost of goods sold for inventories that have been sold at $51,285,617 and $59,010,616 and recognized net inventory loss at $211 and $38,104 due to write down (reversal) of cost of scrap inventories to net realizable value, respectively.

(7) Investments accounted for under the equity method

value, respectively. nvestments accounted for under the	equity method
Ampower Holding Ltd. FI Medical Device Manufacturing Co., Ltd. Others	March31,2020 `877,762` `$` `467,878` `43,682` `1,389,322` `$`	December 31, 2019 `865,362` `$` `427,338` `40,870` `1,333,570` `$`	March31,2019
			`919,650` `$` `785,396` `184,914` `1,889,960` `$`

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

below:
Profit for the period from continuing operations Other comprehensive income (loss) - net of tax Total comprehensive income	For the three-month periods ended March 31,
	2020 `34,061` `$` `12,416` `(` `46,477` `$`	2019
		`132,427` `$` `45,430)` `86,997` `$`

~20~

(8) Property, plant and equipment

2020

							2020
										Transfer, net
										exchange
										differences
			AtJanuary1		Additions		Disposals			and others		At March31
Cost:
Land		`4,093,726` `$`		`$`	`-`	`$`		`-`		`-` `$`	`$`		`4,093,726`
Buildings			`202,292,552`		`64,734`			`-`		`141,470`			`202,498,756`
Machinery and equipment			`519,719,206`		`510,875`	`(`	`1,284,512)`			`2,821,483`			`521,767,052`
Other equipment			`47,114,625`		`28,731`	`(`	`87,735)`			`1,156,737`			`48,212,358`
			`773,220,109`		`604,340`	`(`	`1,372,247)`			`4,119,690`			`776,571,892`
Accumulated depreciation
and impairment:
Buildings	`(`		`130,770,638)`	`(`	`2,127,095)`			`-`		`103,637`	`(`		`132,794,096)`
Machinery and equipment	`(`		`421,695,341)`	`(`	`5,305,136)`		`1,250,289`			`20,505`	`(`		`425,729,683)`
Other equipment	`(`		`39,800,737)`	`(`	`1,164,479)`		`83,525`			`27,484`	`(`		`40,854,207)`
	`(`		`592,266,716)`	`(`	`8,596,710)`		`1,333,814`			`151,626`	`(`		`599,377,986)`
Unfinished construction
and equipment under
acceptance			`13,429,043`		`3,931,228`			`-`	`(`	`3,349,828)`			`14,010,443`
		`194,382,436` `$`									`$`		`191,204,349`
							2019
										Transfer, net
										exchange
										differences
		AtJanuary1			Additions		Disposals			and others	At March31
Cost:
Land	`3,852,792` `$`			`$`	`-`	`$`		`-`	`-` `$`		`$`		`3,852,792`
Buildings			`199,521,281`		`110,820`	`(`	`860)`			`895,669`		`200,526,910`
Machinery and equipment			`510,649,778`		`722,800`	`(`	`980,587)`			`3,887,683`		`514,279,674`
Other equipment			`43,298,695`		`848`	`(`	`881,664)`			`2,021,350`			`44,439,229`
			`757,322,546`		`834,468`	`(`	`1,863,111)`			`6,804,702`		`763,098,605`
Accumulated depreciation
and impairment:
Buildings	`(`		`122,903,947)`	`(`	`2,073,929)`			`-`	`(`	`295,510)`	`(`	`125,273,386)`
Machinery and equipment	`(`		`403,140,224)`	`(`	`5,382,009)`		`979,741`		`(`	`1,317,187)`	`(`	`408,859,679)`
Other equipment	`(`		`36,348,744)`	`(`	`1,114,814)`		`880,502`		`(`	`777,153)`	`(`		`37,360,209)`
	`(`		`562,392,915)`	`(`	`8,570,752)`		`1,860,243`		`(`	`2,389,850)`	`(`	`571,493,274)`
Unfinished construction
and equipment under
acceptance			`11,688,329`		`6,335,826`			`-`	`(`	`3,511,739)`			`14,512,416`
	`$`		`206,617,960`								`$`	`206,117,747`

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

B. As of March 31, 2020, December 31, 2019 and March 31, 2019, the prepayments for business facilities which have not yet entered the factory (shown as ‘other non-current assets’) amounted to $319,169, $1,503,720 and $1,335,635, respectively.

~21~

`－` (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 amounts of right-of-use assets and the depreciation charge are as follows:

March31,2020 December31,2019 Carrying amount Carrying amount `5,946,482` `$` `6,049,963` `$` `35,224` `41,171` `3,927` `4,217` `5,985,633` `$` `6,095,351` `$` For the three-month periods ended	March31,2020 December31,2019 Carrying amount Carrying amount `5,946,482` `$` `6,049,963` `$` `35,224` `41,171` `3,927` `4,217` `5,985,633` `$` `6,095,351` `$` For the three-month periods ended	March31,2019 Carrying amount
		`6,778,848` `$` `35,201` `5,214` `6,819,263` `$` March 31,
2020 Depreciation charge `122,271` `$` `5,641` `308` `128,220` `$`		2019
	Depreciationcharge
	`130,497` `$` `4,413` `320` `135,230` `$`

D. The information on income and expense accounts relating to lease contracts is as follows:

The information on income and expense	accounts relating to lease contracts is as follows:	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	Forthe three-monthperiods endedMarch31,
	2020 `24,518` `$` `26,471` `25,538` `9,377`	2019
		`27,878` `$` `27,372` `26,431` `9,239`

E. For the three-month periods ended March 31, 2020 and 2019, the Group’s total cash outflow for leases were $198,376 and $207,999, respectively.

~22~

(10) Investment property

Investment property
					2020
		At January1			Additions		AtMarch31
Cost:
Land	`$`	`188,247`		`$`	`-`	`$`	`188,247`
Buildings		`439,228`			`-`		`439,228`
		`627,475`			`-`		`627,475`
Accumulated depreciation:
Buildings	`(`	`100,243)`	`(`		`6,947)`	`(`	`107,190)`
	`$`	`527,232`	`($`		`6,947)`	`$`	`520,285`
					2019
		At January1			Additions		AtMarch31
Cost:
Land	`$`	`188,247`		`$`	`-`	`$`	`188,247`
Buildings		`439,228`			`-`		`439,228`
		`627,475`			`-`		`627,475`
Accumulated depreciation:
Buildings	`(`	`75,505)`	`(`		`4,083)`	`(`	`79,588)`
	`$`	`551,970`	`($`		`4,083)`	`$`	`547,887`

The fair value of the investment property held by the Group as at March 31, 2020, December 31, 2019 and March 31, 2019 was $1,574,016, $1,906,827 and $1,782,991, 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.

2020

AtJanuary1 Additions Cost: Patents and royalty `8,158,285` `$` `-` `$` Goodwill `17,117,339` `-` Others `5,309,115` `5,568` `(` `30,584,739` `5,568` `(` Accumulated amortization and impairment: Patents and royalty `8,151,571)` `(` `1,112)` `(` Others `4,855,524)` `(` `53,024)` `(` `13,007,095)` `(` `54,136)` `(` `17,577,644` `$` `48,568)` `($`	Disposals `-` `$` `-` `1,058)` `1,058)` `-` `1,058` `(` `1,058` `(` `-` `$`	Transfer, net exchange differences and others At March31 `1,750` `$` `8,160,035` `$` `-` `17,117,339` `42,943` `5,356,568` `44,693` `30,633,942` `-` `8,152,683)` `(` `1,532)` `4,909,022)` `(` `1,532)` `13,061,705)` `(` `43,161` `$` `17,572,237` `$`	At March31

~23~

2019

AtJanuary1
Additions
Disposals
Cost:
Patents and royalty
8,154,685
$
-
$
-
$
Goodwill
17,096,628
-
-
Others
5,247,197

20,413
4,604)
(
30,498,510
20,413
4,604)
(
Accumulated amortization
and impairment:
Patents and royalty
8,147,367)
(
1,050)
(
-
Others
4,669,658)
(
66,084)
(
4,604
(
12,817,025)
(
67,134)
(
4,604
(
17,681,485
$
46,721)
($
-
$ Transfer, net
exchange
differences
and others
At March31
-
$
8,154,685
$
-
17,096,628
16,496
5,279,502
16,496
30,530,815
-
8,148,417)
(
6,433)

4,737,571)
(
6,433)

12,885,988)
(
10,063
$
17,644,827
$

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

For the three-month periods ended March 31,

Operating costs Operating expenses	2020 `18,652` `$` `35,484` `54,136` `$`	2019
		`27,289` `$` `39,845`
		`67,134` `$`

C. The Group performed impairment assessment on the recoverable amount of goodwill on the financial period-end, and calculated based on the value in use. The computation of value in use was based on the cash flow of financial forecast in the next 5 years. The periodical assessment did not include the impairment loss of goodwill.

(12) Short-term borrowings

was based on the cash flow of financial forecast did not include the impairment loss of goodwill. Short-term borrowings	in the next 5 years. The	periodical assessment
Type of loans Bank borrowings Unsecured borrowings Range of interest rates	March31,2020 `1,700,000` `$` `1.2%~1.25%`	Collateral
		None

As of December 31, 2019 and March 31, 2019, the Group did not hold any short-term borrowings.

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(13) Other payables

Other personnel expenses Payable on machinery and equipment Repairs and maintenance expense payable Utilities expense payable Other payables	March31,2020 December31,2019 March31,2019 `7,534,691` `$` `8,695,902` `$` `8,576,436` `$` `4,487,064` `6,463,079` `8,388,554` `2,508,494` `2,617,884` `2,646,246` `1,124,563` `1,125,275` `1,102,628` `9,153,561` `9,720,592` `9,614,461` `24,808,373` `$` `28,622,732` `$` `30,328,325` `$`

(14)	Bonds payable March31,2020 December 31, 2019 Bonds payable `9,167,500` `$` `100,000` `$` Less: Discount on bonds payable `1,460,718)` `(` `2,982)` `(` `7,706,782` `$` `97,018` `$`

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. 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 March 31, 2020, the convertible bonds have not yet to be transferred to common shares and with a conversion price of $ 10.72 (in dollars) (using the exchange rate 1 USD: 29.9130 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.
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

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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 Optoelectronics Corp. (referred herein as “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 ~ 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. Regarding the issuance of convertible bonds, the equity conversion options of GIO company amounting to $4,778 were separated from the liability component and were recognized in ‘capital surplus—share options’ in accordance with IAS 32.
(15) Long term borrowings

Type of loans	Period		March31,2020	December31,2019	December31,2019		March31,2019
Syndicated bank	`2016/12/6`	`$`	`30,250,000`	`$`	`35,730,000`	`$`	`45,960,000`
loans	`~2024/4/15`
Secured borrowings	`2014/3/19`
	`~2022/7/28`		`104,000`		`120,500`		`-`
Less:
Administrative
expenses charged
by syndicated
banks		`(`	`205,665)`	`(`	`223,719)`	`(`	`94,559)`
Current portion
(includes
administrative
expenses)		`(`	`10,545,141)`	`(`	`16,022,013)`	`(`	`16,195,816)`
		`$`	`19,603,194`	`$`	`19,604,768`	`$`	`29,669,625`
Range of interest rates			`1.81%~2.07%`		`1.79%~2.07%`		`1.86%~1.96%`

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A. Please refer to Note 8 for the information on assets pledged as collateral for long-term borrowings.
B. The syndicated loan 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 year ended December 31, 2019 are in compliance with the covenants on the syndicated loan agreement.
(16) Pensions
A. Defined benefit pension plan
- 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 chose to continue to be subject to the pension mechanism under the Law.
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.
- (b) The subsidiaries in Mainland China have defined contribution plans. Monthly contributions to an independent fund administered by the government in accordance with the pension regulations in the People’s Republic of China (PRC) are based on certain percentages of employees’ monthly salaries and wages.
C. The pension costs under the defined contribution pension plans of the Group for the three-month periods ended March 31, 2020 and 2019 were $420,922 and $484,600, respectively.
(17) Share-based payment
A. Details of the share-based payment arrangements of the Group are provided in the 2019 consolidated financial statements.
B. Details of the share-based payment arrangements are as follows:

consolidated financial statements. Details of the share-based payment arrangements are	as follows:	as follows:
Options outstanding at the beginning of the period Options forfeited Options outstanding at the end of the period Options exercisable at the end of the period	2020
	Quantity (inthousand units) `6,232` `-` `6,232` `3,739`	Weighted-average exercise price (indollars)
		`9.6` `$` `-`
		`9.6` `$`

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

ollows:
	March 31, 2020
	Quantity Exercise price
Issue date approved	Expiry date (in thousand units) (in dollars)
2017.10.1	2022.9.30 `6,232 $ 9.6`
	December 31, 2019
	Quantity Exercise price
Issue date approved	Expiry date (inthousand units) (in dollars)
2017.10.1	2022.9.30 `6,232 $ 9.6`

D. For the three-month period ended March 31, 2020, the Group recognized expense on share-based payment transaction (equity settlement) in the amount of $20.
(18) Provisions-current

Warranty Litigation and others At January 1, 2020 `3,965,902` `$` `2,810,025` `$` Additions during the period `391,887` `148,890` Used during the period `175,035)` `(` `-` `(` At March 31, 2020 `4,182,754` `$` `2,958,915` `$`	Total `6,775,927` `$` `540,777` `175,035)` `7,141,669` `$`

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).

(19) Share capital
A. As of March 31, 2020, the Company’s authorized and outstanding capital were $105,000,000 and $97,110,720, with a par value of $10 (in dollars) per share, respectively. All proceeds from shares issued have been collected.
B. 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:
At March 31 (January 1)	2020
	Quantity (inthousand units) `80,000`	Bookvalue
		`618,580` `$`

The Company repurchased shares in order to transfer to employees and maintain the Company’s credit rating and shareholders’ equity. In November 2019, the Company cancelled the treasury shares which used to maintain the Company’s credit rating and shareholders’ equity in accordance with Securities and Exchange Act.

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(b) Pursuant to the R.O.C. Securities and Exchange Act, the number of shares bought back as treasury share should not exceed 10% of the number of the Company’s issued and outstanding shares and the amount bought back should not exceed the sum of retained earnings, paid-in capital in excess of par value and realized capital surplus.
(c) Pursuant to the R.O.C. Securities and Exchange Act, treasury shares should not be pledged as collateral and the shareholder's rights should not be enjoyed before it is reissued.
(d) Pursuant to the R.O.C. Securities and Exchange Act, treasury shares should be reissued to the employees within five years from the reacquisition date and shares not reissued within the five-year period are to be cancelled.

(20) 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.

			2020
Share premium `97,202,453` `$` `-` `-` `113` `97,202,566` `$`	Treasury share transactions `3,141,232` `$` `-` `-` `-` `3,141,232` `$`		Changes in ownership interests in subsidiaries `24` `$` `13` `-` `-` `37` `$` 2019	Share of profit of associates accounted for under equitymethod `18,670` `$` `-` `9,274` `-` `27,944` `$`		Total
				`$`		`100,362,379` `$` `13` `9,274` `113`
				`$`		`100,371,779` `$`

Sharepremium `99,614,690` `$` `-` `99,614,690` `$`		Share of profit of associates accounted for under equitymethod `33,425` `$` `14` `33,439` `$`				Total
					`$`	`99,648,115` `14` `99,648,129`
					`$`

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(21) 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 Company is in an emerging industry which is growing rapidly, and has a capital intensive business. The Company is at the stage of stable growth. In line with the Company’s long-term financial plan in the future, investment environment and business competition situation, the appropriation of dividends shall be proposed by the Board of Directors and resolved by the shareholders, taking into account the future capital expenditure budget and capital requirement of the Company. However, the stock dividends distributed to shareholders shall not exceed twothirds of distributable dividends in current period.
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 2019 statement of deficit compensated was resolved at the Board of Directors’ meeting in May 2020. The details of the 2019 deficit compensated which was resolved at the Board of Directors’ meeting in May 2020 and the appropriation of 2018 net income which was approved at the stockholders’ meeting in June 2019 are as follows:

Years ended December 31,

Legal reserve Provision of special reserve Cash dividends	Dividends per Amount share(in dollars) `-` `$` `2,661,974` `-` `-` `$` `2,661,974` `$` 2019	2018	2018
	Amount `-` `$` `2,661,974` `-` `2,661,974` `$`	Amount `222,276` `$` `3,572,742` `597,124` `4,392,142` `$`	Dividends per share(in dollars)
			`0.06` `$`

Further, the Board of Directors’ meeting in May 2020 adopted a resolution to distribute cash dividends amounting to $963,107 at $0.1 (in dollars) per share from capital surplus.

~30~

(22) Other equity items

(22)Other equity items
					2020
				Financial assets at
				fair value through
		Currency	other comprehensive
		translation			income			Total
At January 1	`($`	`9,497,686)`	`$`		`2,172,249`		`($`	`7,325,437)`
Revaluation - gross		`-`	`(`		`995,488)`		`(`	`995,488)`
Currency translation differences	`(`	`378,996)`			`-`		`(`	`378,996)`
Share of other comprehensive
income of associates		`12,416`			`-`			`12,416`
At March 31	`($`	`9,864,266)`	`$`		`1,176,761`		`($`	`8,687,505)`
					2019
				Financial assets at
				fair value through
		Currency	other comprehensive
		translation			income			Total
At January 1	`($`	`6,461,149)`	`$`		`1,797,686`		`($`	`4,663,463)`
Revaluation - gross		`-`			`698,452`			`698,452`
Currency translation differences		`1,484,019`			`-`			`1,484,019`
Share of other comprehensive
loss of associates	`(`	`45,430)`			`-`		`(`	`45,430)`
At March 31	`($`	`5,022,560)`	`$`		`2,496,138`		`($`	`2,526,422)`
(23)Operating income
		For the three-month periods						ended March 31,
					2020			2019
TFT-LCD products		`$`			`50,391,575`	`$`		`59,924,024`
The Group derives revenue from the transfer of goods			at	a point in time.
(24)Other income
		Forthe three-monthperiods						endedMarch31,
					2020			2019
Interest income
Interest income from bank deposits		`$`			`76,969`	`$`		`151,104`
Interest income from financial assets at
amortized cost					`71,853`			`186,600`
					`148,822`			`337,704`
Service revenue					`158,190`			`103,347`
Grant revenue					`110,013`			`42,291`
Rental revenue					`55,761`			`56,097`
Other income					`86,370`			`183,098`
		`$`			`559,156`	`$`		`722,537`

~31~

(25) Other gains and losses

	Forthe three-monthperiods	Forthe three-monthperiods	Forthe three-monthperiods	endedMarch31,
		2020		2019
Net gain on financial assets and liabilities at fair	`$`	`943,265`	`$`	`1,004,624`
value through profit or loss
Net currency exchange gain (loss)		`197,525`	`(`	`554,905)`
Gain on disposal of investments		`-`		`10,153`
Gain (loss) on disposal of property, plant and
equipment		`2,334`	`(`	`1,672)`
Other losses	`(`	`219,284)`	`(`	`66,575)`
	`$`	`923,840`	`$`	`391,625`

(26) Finance costs

Finance costs
Interest expense: Bank borrowings Convertible bonds Others	2020 2019 `185,034` `$` `242,979` `$` `53,057` `-` `24,518` `27,878` `262,609` `$` `270,857` `$` Forthe three-monthperiods endedMarch31,
		`242,979` `$` `-` `27,878` `270,857` `$`

(27) Expenses by nature

Expenses by nature
Employee benefit expense: Salaries and other short-term employee benefits Employee stock options Post-employment benefits Depreciation Amortization	Forthe three-monthperiods endedMarch31,
	2020 `8,688,490` `$` `20` `420,922` `8,731,877` `54,136` `17,895,445` `$`	2019
		`9,195,941` `$` `-` `484,600` `8,710,065` `67,134`
		`18,457,740` `$`

(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 three-month periods ended March 31, 2020 and 2019, the Company incurred a net loss, and thus did not accrue employees’ compensation and directors’ remuneration.

For the year ended December 31, 2019, the Company incurred a net loss. Thus, there was no distribution of employees' compensation and directors’ remuneration as resolved by the Board of Directors on February 13, 2020.

~32~

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.

(29) Income tax

A. Income tax expense

Components of income tax expense:

ome tax Income tax expense Components of income tax expense:
	Forthe three-monthperiods			endedMarch31,
		2020		2019
Current tax:
Current tax on profit for the period	`$`	`210,383`	`$`	`133,130`
Prior year income tax (over) under
estimation	`(`	`369)`		`-`
Total current tax		`210,014`		`133,130`
Deferred tax:
Origination and reversal of temporary
differences	`(`	`151)`		`153,361`
Loss carryforward		`93,632`	`(`	`193,375)`
Income tax expense	`$`	`303,495`	`$`	`93,116`

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

(30) Loss per share

Basic loss per share Loss attributable to ordinary shareholders of the parent `(` Weighted average number of ordinary shares outstanding (shares in thousands) Basic loss per share (in dollars) `(`	2020 2019 `5,268,769)` `$` `3,724,795)` `($` `9,631,072` `9,952,072` `0.55)` `$` `0.37)` `($` Forthe three-monthperiods endedMarch31,

For the three-month periods ended March 31, 2020 and 2019, the Group’s convertible bonds and employees’ compensation were not included in the calculation of basic losses per share due to its anti-dilutive effect.

(31) Business combinations

A. On September 18, 2019, the Group acquired 39 % of the share capital of GIO Optoelectronics Corp. for $192,405, which the ownership change from 24% to 63%, and obtained control over GIO Optoelectronics Corp.. The main business of GIO Optoelectronics Corp. is LCD glass substrate processing, LED lighting and its control power supply. As a result of the acquisition, the Group is expected to increase economic scale and strategic synergy.

~33~

B. The reference date of the consolidation was set on September 18, 2019. Under the principles of IFRS 3, ‘Business Combinations’, details of the acquisition are as follows:

GIO Optoelectronics Corp.

Purchase consideration - cash paid		`$`	`192,405`
Fair value of equity interest in GIO Optoelectronics Corp.
held before the business combination			`117,446`
Fair value of the non-controlling interest			`180,351`
			`490,202`
Fair value of the identifiable assets acquired and liabilities
assumed
Cash			`522,951`
Notes and accounts receivable and other current assets			`62,231`
Property, plant and equipment			`333,713`
Other non-current assets			`9,766`
Notes and accounts payable and other current liabilities	`(`		`290,131)`
Other non-current liabilities	`(`		`169,039)`
Total identifiable net assets			`469,491`
Goodwill		`$`	`20,711`

C. The Group recognized a gain of $10,915 as a result of measuring at fair value its 24% equity interest in GIO Optoelectronics Corp. held before the business combination.
D. GIO Optoelectronics Corp. and its subsidiaries were consolidated since September 18, 2019. Had GIO Optoelectronics Corp. and its subsidiaries been consolidated from January 1, 2019, the consolidated statement of comprehensive income would show operating revenue of $59,978,624 and loss before income tax of $3,626,043 for the three-month period ended March 31, 2019.
E. As of March 31, 2020, the allocation of the purchase price of the acquisition is still in process, and the Company has assessed the fair value of the identifiable assets.
(32) Supplemental cash flow information

Investing activities with partial cash payments:

Supplemental cash flow information Investing activities with partial cash payments:
Purchase of property, plant and equipment Add: Opening balance of payable on equipment Less: Ending balance of payable on equipment `(` Cash paid during the period	2020 2019 `4,535,568` `$` `7,170,294` `$` `6,463,079` `7,982,978` `4,487,064)` `8,388,554)` `(` `6,511,583` `$` `6,764,718` `$` For the three-monthperiods ended March31,
	2020 `4,535,568` `$` `6,463,079` `4,487,064)` `(` `6,511,583` `$`

(33) Changes in liabilities from financing activities

For the three-month period ended March 31, 2020, liabilities from financing activities include shortterm borrowings, bonds payable, long-term borrowings and lease liabilities. Changes in those items result from cash flow from financing activities, discount and amortization of bonds payable as well

~34~

as changes in exchange rate. The summarized significant changes are as follows and other information is provided in the consolidated statements of cash flows.

At January 1 Changes in cash flow from financing activities Impact of changes in foreign exchange rate Changes in other non-cash items `(` At March 31	2020 Bonds payable `97,018` `$` `8,900,934` `78,136` `1,369,306)` `7,706,782` `$`

For the three-month period ended March 31, 2019, changes in liabilities from financing activities pertain to changes in cash flow from financing activities. Please refer to the consolidated statements of cash flows.

7. RELATED PARTY TRANSACTIONS

(1) Names and relationship of related parties

==> picture [484 x 14] intentionally omitted <==

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

Names of related parties Relationship with the Group
----- End of picture text -----

Names of related parties	Relationship withthe Group
Hon Hai Precision Industry Co., Ltd. and its subsidiaries	Other related party
CHENG MEI MATERIALS TECHNOLOGY	Other related party
CORPORATION and its subsidiaries
Pan Zhou Fu Gui Kang Precision Electronic Co. Ltd.	Other related party
Chongqing Fuyusheng Electronics Technology Co., Ltd.	Other related party
FI Medical Device Manufacturing Co., Ltd.	Associate
GIO Optoelectronics Corp. (Note)	Associate

(Note) GIO Optoelectronics Corp. was included in the consolidated financial statements in the third quarter of 2019. Please refer to Note 4(3).

(2) Significant related party transactions

A. Operating revenue

te) GIO Optoelectronics Corp. was included in quarter of 2019. Please refer to Note 4(3). nificant related party transactions Operating revenue	the consolidated financial statements in the third	the consolidated financial statements in the third
Sales of goods: Other related parties Associates	For the three-monthperiods ended March31,
	2020 `1,645,238` `$` `8,670` `1,653,908` `$`	2019
		`2,301,756` `$` `3,642` `2,305,398` `$`

The collection period was mainly 30~90 days upon delivery 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

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Purchases of goods: Other related parties Associates	2020 2019 `2,293,708` `$` `1,522,086` `$` `237,448` `467,018` `2,531,156` `$` `1,989,104` `$` For the three-monthperiods ended March31,

The payment term was 30~120 days to related parties after delivery, and 30~180 days to nonrelated 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

Accounts receivable: Other related parties Associates Less: Transferred other receivables	March31,2020 `1,950,544` `$` `38,129` `1,988,673` `-` `1,988,673` `$`	December31,2019 March31,2019 `2,453,195` `$` `3,266,420` `$` `35,324` `46,583` `2,488,519` `3,313,003` `-` `277,118)` `(` `2,488,519` `$` `3,035,885` `$`

(a) 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.
(b) The abovementioned receivables from related parties that exceed normal granting periods were transferred under ‘Other receivables – related parties’.

D. Other receivables from related parties

Other receivables: Other receivables - Other related parties - Associates Accounts receivable transferred to other receivables - Other related parties - Pan Zhou Fu Gui Kang Precision Electronic Co. Ltd. - Chongqing Fuyusheng Electronics Technology Co., Ltd. - Others	March31,2020 `6,828` `$` `7,596` `-` `-` `-` `14,424` `$`	December31,2019 `31,987` `$` `7,977` `-` `-` `-` `39,964` `$`	March31,2019
			`8,656` `$` `13,227` `137,303` `139,791` `24`
			`299,001` `$`

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E. Payables to related parties

Payables to related parties
March31,2020 Accounts payable: Other related parties `3,090,376` `$` Associates `114,999` `3,205,375` `$`	December31,2019 `3,647,625` `$` `137,366` `3,784,991` `$`	March31,2019 `2,110,398` `$` `230,173`
		`2,340,571` `$`

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.

F. Property transactions

Purchase of property

(a) Acquisition of property, plant and equipment:

			For	the	three-month periods ended March 31,	three-month periods ended March 31,	three-month periods ended March 31,
					2020		2019
Other related parties		`$`			`5,209` `$`		`28,224`
Associates					`-`		`2,462`
		`$`			`5,209` `$`		`30,686`
(b) Period-end balances arising	from purchases of		property (shown as ‘Other			payables’):
		March31,2020		December31,2019			March31,2019
Other related parties	`$`	`1,115`		`$`	`1,127,146`	`$`	`2,255,221`
Associates			`-`		`-`		`883`
	`$`	`1,115`		`$`	`1,127,146`	`$`	`2,256,104`

Sale of property

(a) Proceeds from sale of property and gain on disposal:

For the three-monthperiod ended March31,2019
Disposalproceeds Gain on disposal
Other related parties `266` `$` `36` `$`
For the three-month period ended March 31, 2020, there was no such transaction.
(b) Period-end balances arising from sale of property (shown as ‘other receivables’)

(3) Key management compensation March31,2020 Other related parties `-` `$` Salaries and other short-term employee benefits `$` Post-employment benefits `$` For	December31,2019 March31,2019 `25,524` `$` `275` `$` the three-monthperiods ended March31,	December31,2019 March31,2019 `25,524` `$` `275` `$` the three-monthperiods ended March31,
	2020 `9,924` `166` `10,090`	2019
`$`		`12,644` `$` `204` `12,848` `$`
`$`

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8. PLEDGED ASSETS

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

==> picture [496 x 241] intentionally omitted <==

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

Book value
Pledged asset March 31, 2020 December 31, 2019 March 31, 2019 Purpose
Other current assets
-
-Demand deposits $ 1,550 $ 1,550 $ Long-term loans
-Time deposits - - 78,169 Tariff and credit
card guarantee
Property, plant and 92,504,470 96,026,644 107,127,626 Long-term loans
equipment
Intangible assets - 27 720 Long-term loans
Other non-current
assets
-
-Time deposits 3,270 3,270 Tariff guarantee
-Refundable Guarantee for
deposits 832,674 359,383 369,452 litigation
$ 93,341,964 $ 96,390,874 $ 107,575,967
----- End of picture text -----

9. SIGNIFICANT CONTINGENT LIABILITIES AND UNRECOGNIZED CONTRACT

COMMITMENTS

－
(1) Contingencies Significant Litigations
A. In March 2019, the Company received a sanction to the Company and the related employees and managers for the 2006 TFT-LCD pricing collaborations involving Chi Mei Optoelectronics Corporation from Brazil Administrative Council for Economic Defense - CADE. The fine was paid off on May 8, 2019 and it was confirmed by the representative lawyer of CADE that the Company obeyed the sanction. 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 panel factories, 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

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Company reached an agreement on the main settlement terms with Eidos during the third mediation. On February 20, 2020, the Company proposed the district court to approve the settlement agreement and dismiss the case and the lawsuits have no effect on the Company’s financial position and operations.

C. On July 10, 2018, Vista Peak Ventures, LLC (VPV) filed four complaints against the Company in the United States District Court for the Eastern District of Texas, alleging the infringement of several of its patents. The Company reached settlements with VPV for the aforementioned lawsuits and acquired relevant patent portfolio licensing in the first quarter of 2019. VPV also dismissed the action and the lawsuits have no effect on the Company’s financial position and operations.
D. On March 23, 2018, Chongqing HKC Optoelectronics Technology Co., Ltd. (HFC) filed five complaints against the subsidiaries of the Company, Ningbo Innolux Optoelectronics Ltd., Foshan Innolux Optoelectronics Ltd. as well as their customers and terminal distributors of TV products with the Fifth Intermediate People’s Court in Chongqing, alleging the infringement of its patents. Ningbo Innolux Optoelectronics Ltd. submitted a request of patent invalidity to the National Intellectual Property Administration, PRC upon the patents asserted in the complaints. As of May 21, 2019, all five patents asserted by HKC were declared invalid by the National Intellectual Property Administration, PRC. The five lawsuits that were previously disclosed were allegedly withdrawn by the Chongqing court on June 18, 2019. Thus, the lawsuits have no effect on the Company’s financial position and results of operations.
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:

March 31, 2020 December 31, 2019 March 31, 2019 Property, plant and equipment $ 15,148,189 $ 16,725,390 $ 19,943,471

B. Outstanding letters of credit

The outstanding letters of credit for the purchase of property, plant and equipment are as follows:

March 31, 2020 December 31, 2019 March 31, 2019 Outstanding letters of credit $ 265,648 $ 266,384 $ 807,854

10. SIGNIFICANT DISASTER LOSS

None.

11. SUBSEQUENT EVENTS AFTER THE BALANCE SHEET DATE

None.

12. OTHERS

(1) Capital management

No significant changes during the period. Please refer to Note 12 in the consolidated financial statements for the year ended December 31, 2019.

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(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 liability (short-term borrowings, 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.
B. Risk management policies
No significant changes during the period. Please refer to Note 12 in the consolidated financial statements for the year ended December 31, 2019.
C. Significant financial risks and degrees of financial risks
Except for the following, there was no significant change in the period. Please refer to Note 12 in the consolidated financial statements for the year ended December 31, 2019.
(a) Market risk

Foreign exchange risk

i. The Group operates internationally and is exposed to foreign exchange risk arising from the transactions of the Company and its subsidiaries 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. 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). Based on the simulations performed, the impact on post-tax profit of a 1% exchange rate fluctuation would be an increase of $192,883 and $380,229 for the three-month periods ended March 31, 2020 and 2019, 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 `4,836,661` `$` `30.23` `146,212,262` `$` JPY `8,702,365` `0.28` `2,436,662` HKD `324,657` `3.90` `1,266,162` EUR Non-monetary items USD `2,576,032` `$` `30.23` `77,873,447` `$` HKD `542,321` `3.90` `2,115,052` JPY `7,408,138` `0.28` `2,074,279` USD `3,997,625` `$` `30.23` `120,848,204` `$` JPY `33,918,882` `0.28` `9,497,287` EUR `8,464` `33.24` `281,343` March31,2020 Financial liabilities Monetary items Financial assets Monetary items USD JPY EUR Non-monetary items USD HKD JPY USD JPY EUR Financial liabilities Monetary items	Foreign Currency Exchange Amount Rate Book Value (In Thousands) (Note) (NTD) `5,308,934` `$` `29.98` `159,161,841` `$` `8,363,083` `0.28` `2,341,663` `658,804` `3.85` `2,536,395` `39,422` `33.59` `1,324,185` `2,621,279` `$` `29.98` `78,585,944` `$` `549,225` `3.85` `2,114,516` `7,456,590` `0.28` `2,087,845` `4,371,165` `$` `29.98` `131,047,527` `$` `35,516,290` `0.28` `9,944,561` `5,585` `33.59` `187,600` December31,2019 March31,2019	Foreign Currency Exchange Amount Rate Book Value (In Thousands) (Note) (NTD) `5,308,934` `$` `29.98` `159,161,841` `$` `8,363,083` `0.28` `2,341,663` `658,804` `3.85` `2,536,395` `39,422` `33.59` `1,324,185` `2,621,279` `$` `29.98` `78,585,944` `$` `549,225` `3.85` `2,114,516` `7,456,590` `0.28` `2,087,845` `4,371,165` `$` `29.98` `131,047,527` `$` `35,516,290` `0.28` `9,944,561` `5,585` `33.59` `187,600` December31,2019 March31,2019
	Foreign Currency Exchange Amount Rate (In Thousands) (Note) `5,355,760` `$` `30.82` `8,246,607` `0.28` `45,925` `34.61` `2,628,637` `$` `30.82` `273,910` `3.93` `13,297,684` `0.28` `3,833,424` `$` `30.82` `45,091,668` `0.28` `4,863` `34.61`	Book Value (NTD)
		`165,064,523` `$` `2,309,050` `1,589,464` `81,014,592` `$` `1,076,466` `3,723,352` `118,146,128` `$` `12,625,667` `168,308`

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

iii.Total exchange gain (loss), including realized and unrealized arising from significant foreign exchange variation on the monetary items held by the Group for the three-month periods ended March 31, 2020 and 2019 amounted to $197,525 and ($554,905), respectively.

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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 in accordance with the limits set by the Group.
ii. The Group’s investments in equity securities comprise domestic listed and unlisted stocks. 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, post-tax profit for the three-month periods ended March 31, 2020 and 2019 would have increased/decreased by $609,701 and $454,930, respectively; other comprehensive gains and losses would have increased/decreased by $655,224 and $906,735, respectively.

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 three-month periods ended December 31, 2020 and 2019, the Group’s borrowings at variable rate were denominated in the NTD.
ii. If the borrowing interest rate of NTD had increased/decreased by 0.25% with all other variables held constant, profit, net of tax for the three-month periods ended March 31, 2020 and 2019 would have decreased/increased by $18,971 and $28,725, 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 March 31, 2020, December 31, 2019 and March 31, 2019, 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 fair value through other comprehensive income, 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

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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 under the provision matrix basis.
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 uses the forecastability to adjust historical and timely information to assess the default possibility of accounts receivable.
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:

At March 31 (January 1) At January 1 Provision Reversal `(` At March 31	2020 Accountsreceivable `209,418` `$` 2019 Accounts receivable `209,729` `$` `-` `357)` `209,372` `$`

ix. The Group did not recognize significant impairment provision in accordance with 12 months expected credit losses, because the Group’s financial assets/loans to others and receivables at amortized cost all with low credit risk.

(c) Liquidity risk

The table below analyses the Group’s non-derivative financial liabilities and net-settled or

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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

March31,2020 Lease liability Bonds payable Long-term borrowings (including current portion) December31,2019 Lease liability Bonds payable Long-term borrowings (including current portion) March31,2019 Lease liability Long-term borrowings (including current portion)	Less than 1year `544,328` `$` `-` `10,566,000` Less than 1year `548,688` `$` `-` `16,046,000` Less than 1year `579,315` `$` `16,210,000`	Between 1 and3 years `1,062,086` `$` `9,167,500` `19,388,000` Between 1 and3 years `1,062,615` `$` `100,000` `19,404,500` Between 1 and3 years `1,136,039` `$` `29,750,000`	Between 3 and5 years `1,051,113` `$` `-` `400,000` Between 3 and5 years `1,052,983` `$` `-` `400,000` Between 3 and5 years `1,121,672` `$` `-`	Over 5 years `3,286,490` `$` `-` `-` Over 5 years `3,386,241` `$` `-` `-` Over 5 years `3,953,097` `$` `-`	Total
					`5,944,017` `$` `9,167,500` `30,354,000` Total
					`6,050,527` `$` `100,000` `35,850,500` Total
					`6,790,123` `$` `45,960,000`

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

(3) Fair value estimation

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 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 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 is included in Level 3.

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B. Fair value information of investment property at cost is provided in Note 6(10).
C. Financial instruments not measured at fair value
The carrying amounts of cash and cash equivalents, accounts receivable, other receivables, financial assets at amortized cost, accounts payable, other payables, lease liability, corporate bonds payable and long-term borrowings (including current portion) are approximate to their fair values.
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:

March31,2020 Assets Recurring fair value measurements Financial assets at fair value through profit or loss Equity securities Forward exchange contracts Convertible bonds 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 exchange contracts Convertible bonds derivative instruments December31,2019 Assets Recurring fair value measurements Financial assets at fair value through profit or loss Equity securities Forward exchange contracts Convertible bonds Financial assets at fair value through other comprehensive income Equity securities	Level 1 `372,531` `$` `-` `-` `2,221,454` `2,593,985` `$` `-` `$` `-` `-` `$` Level 1 `548,180` `$` `-` `-` `3,214,251` `3,762,431` `$`	Level 2 `-` `$` `92,712` `-` `-` `92,712` `$` `273,969` `$` `-` `273,969` `$` Level 2 `-` `$` `283,906` `-` `-` `283,906` `$`	Level3 `2,675,975` `$` `-` `33,795` `1,054,668` `3,764,438` `$` `-` `$` `102,463` `102,463` `$` Level3 `2,463,055` `$` `-` `33,521` `1,054,234` `3,550,810` `$`	Total
				`3,048,506` `$` `92,712` `33,795` `3,276,122`
				`6,451,135` `$`
				`273,969` `$` `102,463`
				`376,432` `$`
				Total
				`3,011,235` `$` `283,906` `33,521` `4,268,485`
				`7,597,147` `$`

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==> picture [463 x 390] intentionally omitted <==

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

December 31, 2019 Level 1 Level 2 Level 3 Total
Liabilities
Recurring fair value measurements
Financial liabilities at fair value
through profit or loss
- -
Forward exchange contracts $ $ 345,463 $ $ 345,463
March 31, 2019 Level 1 Level 2 Level 3 Total
Assets
Recurring fair value measurements
Financial assets at fair value
through profit or loss
-
Equity securities $ 1,872,602 $ $ 402,049 $ 2,274,651
Forward exchange contracts - 184,177 - 184,177
Convertible bonds - - 35,680 35,680
Financial assets at fair value
through other comprehensive
income
-
Equity securities 3,360,375 1,173,300 4,533,675
$ 5,232,977 $ 184,177 $ 1,611,029 $ 7,028,183
Liabilities
Recurring fair value measurements
Financial liabilities at fair value
through profit or loss
- -
Forward exchange contracts $ $ 164,517 $ $ 164,517
- -
Forward exchange swap contracts 21,880 21,880
- -
$ $ 186,397 $ $ 186,397
----- 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, 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.

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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 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).
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 three-month periods ended March 31, 2020 and 2019, there was no transfer between Level 1 and Level 2.
F. The following table presents the changes in Level 3 instruments for the three-month periods ended March 31, 2020 and 2019:

2020

Financial assets at fair value through profit or loss At January 1 Acquired in the period Effect on exchange rate changes `(` At March 31 Financial liabilities at fair value through profit or loss At January 1 Gains and losses recognized in profit or loss Issued in the period At March 31	Equity securities `3,517,289` `$` `219,179` `5,825)` `3,730,643` `$`	Hybridinstrument Total `33,521` `$` `3,550,810` `$` `-` `219,179` `274` `5,551)` `(` `33,795` `$` `3,764,438` `$` 2020 Derivative instruments `-` `$` `1,319,900)` `(` `1,422,363` `102,463` `$`

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2019

		2019
Financial assets at fair value through profit or loss At January 1 Gains and losses recognized in profit or loss Acquired in the period Effect on exchange rate changes At March 31	Equity securities `1,516,476` `$` `5,461` `49,904` `3,508` `1,575,349` `$`	Hybridinstrument `35,559` `$` `-` `-` `121` `35,680` `$`	Total
			`1,552,035` `$` `5,461` `49,904` `3,629`
			`1,611,029` `$`

G. Because TPV Technology Limited was delisted since November 2019 due to its privatization and there is insufficient observable market information, therefore, the Company transferred the fair value from Level 1 to Level 3 at the end of the month when the event occurred.
H. 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.
I. 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:

Non-derivative equity instrument: Unlisted shares Venture capital shares Private equity fund investment	Fair value at March 31,2020	Valuation technique	Significant unobservable input	Range (weighted average)	Relationship of inputs to fairvalue
	`3,705,347` `$` `25,296`	Market comparable companies Net asset value	Price to earnings ratio multiple, price to sales ratio multiple, price to book ratio multiple Discount for lack of marketability Not applicable	`0.61` `~42.08` `(2.84)` `30%~70%` `(31%)` Not applicable	The higher the multiple, the higher the fair value The higher the discount for lack of marketability, the lower the fair value Not applicable

~48~

Hybrid instrument: Convertible bond Derivative instrument liabilities: Convertible bond Non-derivative equity instrument: Unlisted shares Venture capital shares Private equity fund investment Hybrid instrument: Convertible bond	Hybrid instrument: Convertible bond Derivative instrument liabilities: Convertible bond Non-derivative equity instrument: Unlisted shares Venture capital shares Private equity fund investment Hybrid instrument: Convertible bond	Fair value at March 31,2020	Valuation technique Discounted cash flow method and Option pricing model Binary tree model for convertible bond pricing Valuation technique	Significant unobservable input Range (weighted average) Discount and Volatility rate `1.6%` `、31.1%` Volatility rate `43.2%` Significant unobservable input Range (weighted average) Price to earnings ratio multiple, price to sales ratio multiple, price to book ratio multiple `0.61~` `42.08` `(2.84)` Discount for lack of marketability `30%~70%` `(31%)` Not applicable Not applicable Discount and Volatility rate `1.6%` `、31.1%`	Significant unobservable input Range (weighted average) Discount and Volatility rate `1.6%` `、31.1%` Volatility rate `43.2%` Significant unobservable input Range (weighted average) Price to earnings ratio multiple, price to sales ratio multiple, price to book ratio multiple `0.61~` `42.08` `(2.84)` Discount for lack of marketability `30%~70%` `(31%)` Not applicable Not applicable Discount and Volatility rate `1.6%` `、31.1%`	Relationship of inputs to fair value The higher the volatility, the higher the fair value; the higher the discount rate, the lower the fair value The higher the volatility, the higher the fair value Relationship of inputs to fairvalue The higher the multiple, the higher the fair value The higher the discount for lack of marketability, the lower the fair value Not applicable The higher the volatility, the higher the fair value; the higher the discount rate, the lower the fair value
		`33,795` `102,463` Fair value at December 31,2019
		`3,492,198` `$` `25,091` `33,521`	Market comparable companies Net asset value Discounted cash flow method and Option pricing model	Price to earnings ratio multiple, price to sales ratio multiple, price to book ratio multiple Discount for lack of marketability Not applicable Discount and Volatility rate	`0.61~` `42.08` `(2.84)` `30%~70%` `(31%)` Not applicable `1.6%` `、31.1%`

~49~

Non-derivative equity instrument: Unlisted shares Venture capital shares Private equity fund investment Hybrid instrument: Convertible bond	Fair value at March 31,2019	Valuation technique	Significant unobservable input	Range (weighted average)	Relationship of inputs to fairvalue
	`1,549,174` `$` `26,175` `35,680`	Market comparable companies Net asset value Discounted cash flow method and Option pricing model	Price to earnings ratio multiple, price to sales ratio multiple, price to book ratio multiple Discount for lack of marketability Not applicable Discount and Volatility rate	`0.58` `~41.52` `(5.1)` `30%~70%` `(32%)` Not applicable `2.5%` `、46.7%`	The higher the multiple, the higher the fair value The higher the discount for lack of marketability, the lower the fair value Not applicable The higher the volatility, the higher the fair value; the higher the discount rate, the lower the fair value

J. 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:

March 31, 2020

Financial assets	Input	Recognized in other comprehensive income	Recognized in other comprehensive income
		Favourable Unfavourable change change `$ 10,547` `($ 10,547)` `- -` `$ -` `$ -`	Unfavourable change
Equity instrument Hybrid instrument Financial liabilities	`$3,730,643` `33,795` `$ 102,463`
Derivative instruments

~50~

December 31, 2019

			December31,2019
Financial assets Equity instrument Hybrid instrument Financial assets	Input	Change `± 1%` `± 1%` Change `± 1%` `± 1%`	Favourable Unfavourable Favourable Unfavourable change change change change `$ 24,631` `($ 24,631) $ 10,542` `($ 10,542)` `335` `( 335) -` `-` Favourable Unfavourable Favourable Unfavourable change change change change `$ 4,020` `($ 4,020) $ 11,733` `($ 11,733)` `357` `( 357) -` `-` Recognized in other Recognized inprofit or loss comprehensive income March31,2019 Recognized in other Recognized inprofit or loss comprehensive income
	`$3,517,289` `33,521` Input
Equity instrument Hybrid instrument	`$1,575,349` `35,680`

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.

~51~

(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 chief operating decision-maker considered the business from a perspective of product size of TFT LCD. TFT LCD products are currently classified into big size and small-medium size. Because the Group met the criteria for combining the segment information of big size and small-medium size TFT LCD departments, the Group disclosed only one reportable operating segment for all TFT LCD products.

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.

(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 loss `(` Depreciation and amortization Capital expenditure-property, plant and equipment Segment assets	2020 2019 TFT LCD TFT LCD `50,391,575` `$` `59,924,024` `$` `4,960,109)` `$` `3,631,679)` `($` `8,786,013` `$` `8,777,199` `$` `6,511,583` `$` `6,764,718` `$` `356,632,347` `$` `404,514,059` `$` Forthe three-monthperiods endedMarch31,
	2020 TFT LCD `50,391,575` `$` `4,960,109)` `$` `(` `8,786,013` `$` `6,511,583` `$` `356,632,347` `$`

(3) Reconciliation for segment income

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

~52~

Innolux Corporation and Subsidiaries

Table 1

Expressed in thousands of NTD (Except as otherwise indicated)

Loans to others

For the three-month period ended March 31, 2020

No.	Creditor	Borrower	General ledger account	Is a related party	Maximum outstanding balance during the three-month period ended March 31,2020	Balance as at March 31, 2020	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. Nanjing Innolux Technology Ltd. Innolux Japan Co., Ltd. Warriors Technology Investments Ltd.	Foshan Innolux Optoelectronics Ltd. Ningbo Innolux Optoelectronics Ltd. Ningbo Innolux Display Ltd. Shanghai Innolux Optoelectronics Ltd. Nanjing Innolux Optoelectronics Ltd. Nanjing Innolux Optoelectronics Ltd. Lakers Trading Ltd. Lakers Trading Ltd.	Other receivables Other receivables Other receivables Other receivables Other receivables Other receivables Other receivables Other receivables	Related parties Related parties Related parties Related parties Related parties Related parties Related parties Related parties	$ 4,266,000 1,493,100 1,663,740 1,151,820 2,644,920 213,300 2,146,760 3,255,250	$ 4,266,000 1,493,100 1,663,740 1,151,820 2,559,600 213,300 2,146,760 3,255,250	$ 4,266,000 1,493,100 1,663,740 1,151,820 2,559,600 213,300 2,146,760 3,255,250	2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 1.00% 0.00%	Short-term financing Short-term financing Short-term financing Short-term financing Short-term financing Short-term financing Short-term financing Short-term financing	$ - - - - - - - -	Operating support Operating support Operating support Operating support Operating support Operating support Operating support Operating support	$ - - - - - - - -	- - - - - - - -	$ - - - - - - - -	225,306,267 $ 225,306,267 225,306,267 225,306,267 225,306,267 225,306,267 225,306,267 225,306,267	225,306,267 $ 225,306,267 225,306,267 225,306,267 225,306,267 225,306,267 225,306,267 225,306,267	A A A A A A A A

Note A: The Company - Innolux Corporation

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

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

3.The policy for loans granted to direct or indirect wholly-owned overseas subsidiaries is as follows: for short-term capital needs, financial limit shall not be below the 40% requirement, but should not exceed 100% of the company’s net equity.

Table 1, Page 1

Expressed in thousands of NTD

Innolux Corporation and Subsidiaries

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

March 31, 2020

Table 2

(Except as otherwise indicated)

Securities held by	Marketable securities	Relationship with the securities issuer	General ledger account		As of March31,2020	As of March31,2020		Footnote
				Number of shares	Bookvalue	Ownership (%)	Fairvalue
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. InnoJoy Investment Corporation InnoJoy Investment Corporation InnoJoy Investment Corporation InnoJoy Investment Corporation Ningbo Innolux Optoelectronics Ltd. Ningbo Innolux Optoelectronics Ltd.	Common stock (Note) AvanStrate Inc. TPV Technology Limited Chi Lin Optoelectronics Co., Ltd. Epistar Corporation Cheng Mei Materials Technology Corporation Allied Material Technology Corp. Obsidian Sensors, Inc. VIZIO. Inc. Trillion Science, Inc. Cheng Mei Materials Technology Corporation Advanced Optoelectronic Technology, Inc. eChem solutions Corp. EPILEDS Co., Ltd. Fitipower Integrated Technology Inc. `上海辰岱投資中心`(`有限合夥`) Fitipower Integrated Technology (Shenzhen) Inc.	None None Other related party None Other related party None None None None Other related party 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 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 profit or loss Financial assets at fair value through profit or loss	900,000 150,500,000 14,234,041 89,072 57,211,305 1,209 238,571 927,452 1,439,180 315,000 6,964,222 2,887,500 7,347,144 10,000,000 - -	$ 15,521 2,113,965 66,426 2,298 290,634 - 34,972 965,431 - 1,600 77,999 35,699 62,451 238,000 142,063 213,237	1 6 19 - 9 - 6 4 2 - 5 4 7 6 - -	$ 15,521 2,113,965 66,426 2,298 290,634 - 34,972 965,431 - 1,600 77,999 35,699 62,451 238,000 142,063 213,237

Table 2, Page 1

Securities held by	Marketable securities	Relationship with the securities issuer	General ledger account		As of March31,2020	As of March31,2020		Footnote
				Number of shares	Bookvalue	Ownership (%)	Fairvalue
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.	OED Holding Ltd. Obsidian Sensors, Inc. Kymeta Corporation’s convertible bonds General Interface Solution (GIS) Holding Limited CJK Associates Co., Ltd. Perinnova Limited KA Imaging Inc. PilotTech Global Fund	None None None None None Other related party Other related party 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 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	16,000,000 414,136 - 24,194,000 4,000 1,900 1,819,240 90	$ 3,290 61,205 33,795 1,921,003 13,841 4,505 35,192 25,296	6 11 - 7 14 19 11 -	3,290 61,205 33,795 1,921,003 13,841 4,505 35,192 25,296

Note: Except as otherwise indicated, marketable securities in the table are all stocks.

Table 2, Page 2

Table 3

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

For the three-month period ended March 31, 2020

Expressed in thousands of NTD (Except as otherwise indicated)

Investor	Marketable securities (Note 1)	General ledger account	Counterparty (Note 2)	Relationship with the investor (Note 2)	Balance as at January1,2020 (Note 4)	Balance as at January1,2020 (Note 4)	Addition(Note3)	Addition(Note3)		Disposal	(Note3)		Balance as at March31,2020 (Note5)	Balance as at March31,2020 (Note5)
					Number of shares	Amount	Number of shares	Amount	Number of shares	Selling price	Bookvalue	Gain (loss) on disposal	Number of shares	Amount
Innolux Hong Kong Holding Limited Innolux Hong Kong Holding Limited CarUX Holding Limited CarUX Holding Limited CARUX TECHNOLOGY PTE. LTD. CARUX TECHNOLOGY PTE. LTD. Innolux Hong Kong Holding Limited CarUX Holding Limited	Innolux Europe B.V. Innolux Optoelectronics Hong Kong Holding Limited Innolux Europe B.V. Innolux Optoelectronics Hong Kong Holding Limited Innolux Europe B.V. Innolux Optoelectronics Hong Kong Holding Limited CarUX Holding Limited CARUX TECHNOLOGY PTE. LTD.	Investments accounted for using equity method Investments accounted for using equity method Investments accounted for using equity method Investments accounted for using equity method Investments accounted for using equity method Investments accounted for using equity method Investments accounted for using equity method Investments accounted for using equity method	- - - - - - - -	- - - - - - - -	375,810 162,897,802 - - - - 9,500,000 9,400,000	$ 377,076 1,598,956 - - - - 285,546 282,539	- - 375,810 162,897,802 375,810 162,897,802 39,875,280 39,875,280	$ - - 464,341 1,818,180 464,341 1,818,180 1,195,262 1,195,262	375,810 162,897,802 375,810 162,897,802 - - - -	$ 464,341 1,818,180 464,341 1,818,180 - - - -	$ 377,076 1,598,956 464,341 1,818,180 - - - -	(Note 6) (Note 6) (Note 6) (Note 6) - - - -	- - - - 375,810 162,897,802 125,231,749 125,131,749	$ - - - - 387,507 1,632,769 3,507,246 3,504,309

Table 3, Page 1

Investor	Marketable securities (Note 1)	General ledger account	Counterparty (Note 2)	Relationship with the investor (Note 2)	Balance as at January1,2020 (Note 4)	Balance as at January1,2020 (Note 4)	Addition(Note3)	Addition(Note3)		Disposal	(Note3)		Balance as at March31,2020 (Note5)	Balance as at March31,2020 (Note5)
					Number of shares	Amount	Number of shares	Amount	Number of shares	Selling price	Bookvalue	Gain (loss) on disposal	Number of shares	Amount
CARUX TECHNOLOGY PTE. LTD.	CarUX Technology Inc.	Investments accounted for using equity method	-	-	-	$ -	140,000,000	$ 1,400,000	-	$ -	$ -	-	140,000,000	$ 1,402,736

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 under 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: The balance at January 1, 2020 includes the investment income (loss) and cumulative translation adjustments.

Note 5: The balance at March 31, 2020 includes the investment income (loss), cumulative translation adjustments and shares transferred. Note 6: There was no income or loss as it was accounted as reorganization.

Table 3, Page 2

Innolux Corporation and Subsidiaries Purchases or sales of goods from or to related parties reaching $100 million or 20% of paid-in capital or more For the three-month period ended March 31, 2020

Table 4

Expressed in thousands of NTD (Except as otherwise indicated)

Purchaser/seller	Counterparty	Relationshipwith 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 Corporation	Innolux USA Inc. Innolux Hong Kong Limited Hon Hai Precision Industry Co., Ltd. Hongfujin Precision Electronics (Yantai) Co., Ltd. InnoCare Optoelectronics Corporation Lakers Trading Ltd. Hongfujin Precision Electronics (Chongqing) Co., Ltd. Cheng Mei Materials Technology Corporation Hon Hai Precision Industry Co., Ltd. FI Medical Device Manufacturing Co., Ltd. Lakers Trading Ltd. Innolux Hong Kong Limited Leadtek Global Group Limited CarUX Technology Inc.	An indirect wholly-owned subsidiary An indirect wholly-owned subsidiary Same major stockholder 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 of Hon Hai Precision Industry Co., Ltd. Other related party Same major stockholder Investee accounted for under the equity method An indirect wholly-owned subsidiary An indirect wholly-owned subsidiary A subsidiary of the Company An indirect wholly-owned subsidiary	Sales Sales Sales Sales Sales Sales Sales Purchases Purchases Purchases Processing expense Processing expense Processing expense Processing expense	$ 3,014,900 692,860 644,472 490,333 468,860 348,391 271,177 651,412 304,180 197,889 8,330,246 3,420,796 2,843,995 126,324	6 1 1 1 1 1 1 1 1 - 16 7 5 -	60-90 days 60 days 90 days 60 days 60-90 days 60 days 45 days 90 days after acceptance 60-90 days after acceptance 30-60 days after acceptance 60-90 days 60-90 days 60-90 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 Single purchases target, no basis for comparison Single purchases target, no basis for comparison Single purchases target, no basis for comparison Cost plus 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 No material difference	$ 2,573,508 - 1,177,579 257,730 967,777 - 316,841 711,289) ( 622,826) ( 80,384) ( 27,001,017) ( 7,510,669) ( 18,974,026) ( 126,398) (	8 - 3 1 3 - 1 1 1 - 34 9 24 -

Table 4, Page 1

Purchaser/seller	Counterparty	Relationshipwith 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)
Foshan Innolux Optoelectronics Ltd. Ningbo Innolux Optoelectronics Ltd. Ningbo Innolux Display Ltd. Nanjing Innolux Optoelectronics Ltd. Shanghai Innolux Optoelectronics Ltd. Ningbo Innolux Optoelectronics Ltd. Innolux Hong Kong Limited InnoCare Optoelectronics Corporation Ningbo Innolux Display Ltd. InnoCare Optoelectronics Corporation	Lakers Trading Ltd. Leadtek Global Group Limited Lakers Trading Ltd. Innolux Hong Kong Limited Innolux Hong Kong Limited Ningbo Innolux Display Ltd. Nanjing Innolux Technology Ltd. InnoCare Optoelectronics Japan Co., Ltd. Ningbo Innolux Optoelectronics Ltd. InnoCare Optoelectronics USA, INC.	An indirect wholly-owned subsidiary A subsidiary of the 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 An indirect wholly-owned subsidiary An indirect wholly-owned subsidiary An indirect wholly-owned subsidiary	Processing revenue Processing revenue Processing revenue Processing revenue Processing revenue Sales Sales Sales Sales Sales	4,883,087 $ 2,832,649 3,015,415 2,288,411 1,019,332 1,042,702 587,356 407,947 253,809 133,905	93 73 92 100 89 12 8 55 5 18	60 days 60 days 60 days 60 days 60 days 60 days 60 days 60 days 60 days 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 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	14,593,938 $ 15,475,516 3,051,459 6,052,791 799,575 681,299 852,538 527,620 165,632 124,033	97 96 95 100 81 3 9 62 4 15

Table 4, Page 2

Purchaser/seller	Counterparty	Relationshipwith 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 Europe B.V. Ningbo Innolux Optoelectronics Ltd. Foshan Innolux Optoelectronics Ltd. Ningbo Innolux Optoelectronics Ltd. Ningbo Innolux Display Ltd.	Innolux Corporation Ningbo Cheng Mei Materials Technology Co., Ltd. Cheng Mei Materials Technology Corporation Hon Hai Precision Industry Co., Ltd. Hon Hai Precision Industry Co., Ltd.	An indirect wholly-owned subsidiary Other related party Other related party Same major stockholder Same major stockholder	Service revenue Purchases Purchases Purchases Purchases	203,977 $ 333,556 261,478 260,920 234,957	92 4 2 3 5	60 days 90 days after goods are shipped 90 days after goods are shipped 90 days after goods are shipped 90 days after goods are shipped	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	182,116 $ 429,861) ( 355,551) ( 330,188) ( 310,180) (	75 5 2 4 6

Table 4, Page 3

Innolux Corporation and Subsidiaries

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

March 31, 2020

Table 5

Expressed in thousands of NTD (Except as otherwise indicated)

Creditor	Counterparty	Relationship with the counterparty	Balance as at March31,2020	Turnover rate	Overdue receivables	Overdue receivables	Amount collected subsequent to the balance sheet date	Allowance for doubtful accounts
					Amount	Action taken
Innolux Corporation Innolux Corporation Innolux Corporation Innolux Corporation Innolux Corporation Innolux Corporation Foshan Innolux Optoelectronics Ltd. Ningbo Innolux Optoelectronics Ltd. Nanjing Innolux Optoelectronics Ltd. Ningbo Innolux Display Ltd. Shanghai Innolux Optoelectronics Ltd. Innolux Hong Kong Limited Ningbo Innolux Optoelectronics Ltd. InnoCare Optoelectronics Corporation Innocom Technology (Shenzhen) Co., Ltd. Innolux Corporation Innolux Corporation Innolux Corporation	Innolux USA Inc. Hon Hai Precision Industry Co., Ltd. InnoCare Optoelectronics Corporation Hongfujin Precision Electronics (Chongqing) Co., Ltd. Hongfujin Precision Electronics (Yantai) Co., Ltd. Foshan Innolux Optoelectronics Ltd. Lakers Trading Ltd. Leadtek Global Group Limited Innolux Hong Kong Limited Lakers Trading Ltd. Innolux Hong Kong Limited Nanjing Innolux Technology Ltd. Ningbo Innolux Display Ltd. InnoCare Optoelectronics Japan Co., Ltd. Lakers Trading Ltd. InnoCare Optoelectronics Corporation CarUX Technology Inc. INNOLUX OPTOELECTRONICS INDIA PRIVATE LIMITED	An indirect wholly-owned subsidiary Same major stockholder A subsidiary of the Company An indirect wholly-owned subsidiary of Hon Hai Precision Industry Co., Ltd. An indirect wholly-owned subsidiary of Hon Hai Precision Industry Co., Ltd. An indirect wholly-owned subsidiary An indirect wholly-owned subsidiary A subsidiary of the 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 An indirect wholly-owned subsidiary An indirect wholly-owned subsidiary A subsidiary of the Company An indirect wholly-owned subsidiary An indirect wholly-owned subsidiary	$ 2,573,508 1,177,579 967,777 212,830 (Shown as other receivables) 316,841 257,730 107,508 664,412 (Shown as other receivables) 411,716 (Note 2) 14,593,938 15,475,516 6,052,791 3,051,459 799,575 852,538 681,299 527,620 378,529	3.22 2.13 2.32 - 3.24 6.44 0.03 - 0.05 1.26 0.66 1.29 3.11 4.16 2.19 5.19 3.72 0.64	$ - 46,230 534,050 73,191 153,645 - - - 6,383,472 8,539,695 4,278,423 - - - - 186,632 318,984 406,224	- Subsequent collection Subsequent collection Subsequent collection Subsequent collection - - Subsequent collection Subsequent collection Subsequent collection Subsequent collection - - - - Subsequent collection Subsequent collection -	$ 1,238,269 259,242 - - 135,680 166,667 - - - 4,533,756 3,501,606 1,256,457 1,862,938 452,977 220,755 273,383 261,299 -	$ - - - - - - - - - - - - - - - - - -

Table 5, Page 1

Creditor	Counterparty	Relationship with the counterparty	Balance as at March31,2020	Turnover rate	Overdue receivables	Overdue receivables	Amount collected subsequent to the balance sheet date	Allowance for doubtful accounts
					Amount	Action taken
Ningbo Innolux Display Ltd. InnoCare Optoelectronics Corporation InnoCare Optoelectronics Corporation Innolux Europe B.V.	Ningbo Innolux Optoelectronics Ltd. InnoCare Optoelectronics USA, INC. Ningbo Innolux Electronics Ltd. Innolux Corporation	An indirect wholly-owned subsidiary An indirect wholly-owned subsidiary An indirect wholly-owned subsidiary An indirect wholly-owned subsidiary	$ 165,632 124,033 101,084 182,116	4.83 6.02 3.99 6.07	$ - 9,626 18,898 -	- Subsequent collection Subsequent collection -	$ 55,517 - 42,610 89,936	$ - - - -

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. Note B ： Overdue receivables transferred to other receivables.

Table 5, Page 2

Innolux Corporation and Subsidiaries Significant inter-company transactions during the reporting period For the three-month period ended March 31, 2020

Expressed in thousands of NTD (Except as otherwise indicated)

Table 6

Transaction (Note D)

Number (Note A)	Companyname	Counterparty	Relationship (Note B)	General ledger account	Amount	Transaction terms (NoteC)	Percentage of consolidated total operating revenues or total assets
0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 1 2 2 3 3	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 Foshan Innolux Optoelectronics Ltd. Foshan Innolux Optoelectronics Ltd. Ningbo Innolux Optoelectronics Ltd. Ningbo Innolux Optoelectronics Ltd. Ningbo Innolux Display Ltd. Ningbo Innolux Display Ltd.	Lakers Trading Ltd. Lakers Trading Ltd. Lakers Trading Ltd. Innolux Hong Kong Limited Innolux Hong Kong Limited Innolux Hong Kong Limited Leadtek Global Group Limited Leadtek Global Group Limited Foshan Innolux Optoelectronics Ltd. Innolux USA Inc. Innolux USA Inc. InnoCare Optoelectronics Corporation InnoCare Optoelectronics Corporation InnoCare Optoelectronics Corporation CarUX Technology Inc. CarUX Technology Inc. CarUX Technology Inc. INNOLUX OPTOELECTRONICS INDIA PRIVATE LIMITED Lakers Trading Ltd. Lakers Trading Ltd. Leadtek Global Group Limited Leadtek Global Group Limited Lakers Trading Ltd. Lakers Trading Ltd.	`1` 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 3 3 3 3 3 3	Sales Processing expense Accrued expenses Sales Processing expense Accrued expenses Processing expense Accrued expenses Accounts receivable Sales Accounts receivable Sales Accounts receivable Other receivables Processing expense Accrued expenses Other receivables Accounts receivable and other receivables Processing revenue Accounts receivable Processing revenue Accounts receivable Processing revenue Accounts receivable	348,391 $ 8,330,246 27,001,017) ( 692,860 3,420,796 7,510,669) ( 2,843,995 18,974,026) ( 107,508 3,014,900 2,573,508 468,860 967,777 212,830 126,324 126,398) ( 664,412 411,716 4,883,087 14,593,938 2,832,649 15,475,516 3,015,415 3,051,459	`-` - - - - - - - - - - - - - - - - - - - - - - -	1 17 8 1 7 2 6 5 - 6 1 1 - - - - - - 10 4 6 4 6 1

Table 6, Page 1

Transaction (Note D)

Number (Note A)	Companyname	Counterparty	Relationship (Note B)	General ledger account	Amount	Transaction terms (NoteC)	Percentage of consolidated total operating revenues or total assets
4 4 5 5 6 6 7 7 8 8 9 10 10 11 11 12 12 13	Nanjing Innolux Optoelectronics Ltd. Nanjing Innolux Optoelectronics Ltd. Shanghai Innolux Optoelectronics Ltd. Shanghai Innolux Optoelectronics Ltd. Ningbo Innolux Optoelectronics Ltd. Ningbo Innolux Optoelectronics Ltd. Ningbo Innolux Display Ltd. Ningbo Innolux Display Ltd. Innolux Hong Kong Limited Innolux Hong Kong Limited Innocom Technology (Shenzhen) Co., Ltd. InnoCare Optoelectronics Corporation InnoCare Optoelectronics Corporation InnoCare Optoelectronics Corporation InnoCare Optoelectronics Corporation Innolux Europe B.V. Innolux Europe B.V. InnoCare Optoelectronics Corporation	Innolux Hong Kong Limited Innolux Hong Kong Limited Innolux Hong Kong Limited Innolux Hong Kong Limited Ningbo Innolux Display Ltd. Ningbo Innolux Display Ltd. Ningbo Innolux Optoelectronics Ltd. Ningbo Innolux Optoelectronics Ltd. Nanjing Innolux Technology Ltd. Nanjing Innolux Technology Ltd. Lakers Trading Ltd. InnoCare Optoelectronics Japan Co., Ltd. InnoCare Optoelectronics Japan Co., Ltd. InnoCare Optoelectronics USA, INC. InnoCare Optoelectronics USA, INC. Innolux Corporation Innolux Corporation Ningbo Innolux Electronics Ltd.	3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3	Processing revenue Accounts receivable Processing revenue Accounts receivable Sales Accounts receivable Sales Accounts receivable Sales Accounts receivable Accounts receivable Sales Accounts receivable Sales Accounts receivable Service revenue Accounts receivable Accounts receivable	2,288,411 $ 6,052,791 1,019,332 799,575 1,042,702 681,299 253,809 165,632 587,356 852,538 378,529 407,947 527,620 133,905 124,033 203,977 182,116 101,084	- - - - - - - - - - - - - - - - - -	5 2 2 - 2 - 1 - 1 - - 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 30~90 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

Information on investees

Expressed in thousands of NTD (Except as otherwise indicated)

Table 7

For the three-month period ended March 31, 2020

Investor	Investee	Location	Main business activities	Initial investment amount	Initial investment amount	Shares held as at March	Shares held as at March	31,2020	Net profit (loss) of the investee for the three-month period ended March31,2020	Investment income (loss) recognized by the Company for the three-month period ended March 31, 2020	Footnote
				Balance as at March31,2020	Balance as at December 31, 2019	Number of shares	Ownership (%)	Bookvalue
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. Leadtek Global Group Limited Yuan Chi Investment Co., Ltd. InnoJoy Investment Corporation InnoCare Optoelectronics Corporation Innolux Japan Co., Ltd. iZ3D, Inc. Chi Mei Lighting Technology Corporation GIO Optoelectronics Corp. Ampower Holding Ltd.	Samoa Samoa Samoa BVI Hong Kong Singapore BVI Taiwan Taiwan Taiwan Japan USA Taiwan Taiwan Cayman	Investment holdings Investment holdings Investment holdings Investment holdings Investment holdings Investment holdings Distributor company Investment company Investment company Holdings, R&D, manufacturing and Distributor company Holdings, R&D and Distributor company Research and development and sale of 3D flat monitor Manufacturing of electronic equipment and lighting equipment Holdings, R&D, manufacturing and Distributor company Investment holdings	$ 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 - 819,312 308,993 1,717,714	$ 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 - 819,312 308,993 1,717,714	180,568,185 1,656,410 709,450,000 146,847,000 1,158,844,000 25,400,000 50,000,000 - 167,405,392 20,000,000 98 4,333 78,195,856 27,812,188 14,062,500	100 100 100 100 100 100 100 100 100 100 54 35 33 63 50	17,180,969 $ 89,293 44,881,224 5,875,518 6,178,904 258,201 1,511,250 876,102 1,072,543 317,433 2,065,389 - - 320,498 877,762	46,972 $ 739 418,126 52,773 139,032 209,824) ( - 179 46,503) ( 66,326 23,166) ( - - 14,038 173	46,972 $ 739 418,126 52,773 139,032 209,824) ( - 179 46,503) ( 66,326 12,612) ( - - 8,849 86

Table 7, Page 1

Investor	Investee	Location	Main business activities	Initial investment amount	Initial investment amount	Shares held as at March	Shares held as at March	31,2020	Net profit (loss) of the investee for the three-month period ended March31,2020	Investment income (loss) recognized by the Company for the three-month period ended March 31, 2020	Footnote
				Balance as at March31,2020	Balance as at December 31, 2019	Number of shares	Ownership (%)	Bookvalue
Innolux Corporation Innolux Corporation Innolux Holding Limited 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 Ltd. Rockets Holding Ltd. Suns Holding Ltd.	FI Medical Device Manufacturing Co., Ltd. eLux, Inc. Rockets Holding Ltd. Suns Holding Ltd. Lakers Trading 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 Ltd. Nets Trading Ltd. Warriors Technology Investments Ltd.	Taiwan USA Samoa Samoa Samoa Cayman Hong Kong Japan Cayman Singapore Hong Kong Netherlands Taiwan USA Samoa Samoa Samoa	Production and selling of the absorption for medical element R&D of MicroLED technology Investment holdings Investment holdings Distributor company Investment holdings Distributor company Holdings, R&D and Distributor company Investment holdings Investment holdings Investment holdings Holding, R&D testing and Distributor company R&D, manufacturing and Distributor company Distributor company Investment holdings Investment company Investment company	$ 73,500 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	$ 73,500 91,155 5,222,180 555,422 - 3,650,192 - 1,815,603 294,690 291,588 - - - 369,092 5,391,125 27,477 555,422	7,350,000 300,000 160,504,550 18,177,052 1 146,817,000 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	49 34 100 100 100 100 100 46 100 100 100 100 100 100 100 100 100	467,878 $ 43,682 11,379,450 5,571,170 230,271 5,875,165 942,382 1,728,492 3,507,246 3,504,309 1,632,769 387,507 1,402,736 761,765 11,351,879 27,436 5,571,168	82,733 $ 12,658) ( 45,820 1,152 - 52,773 98,778 23,166) ( 63,935 64,030 46,056 14,328 2,912 16,029) ( 45,820 - 1,152	40,539 $ 6,564) ( 45,820 1,152 - 52,773 98,778 10,554) ( 63,935 64,030 46,056 14,328 2,912 16,029) ( 45,820 - 1,152

Table 7, Page 2

Investor	Investee	Location	Main business activities	Initial investment amount	Initial investment amount	Shares held as at March	Shares held as at March	31,2020	Net profit (loss) of the investee for the three-month period ended March31,2020	Investment income (loss) recognized by the Company for the three-month period ended March 31, 2020	Footnote
				Balance as at March31,2020	Balance as at December 31, 2019	Number of shares	Ownership (%)	Bookvalue
Innolux Europe B.V. Innolux Singapore Holding Pte. Ltd. Innolux Singapore Holding Pte. Ltd. Innolux Singapore Holding Pte. Ltd. Yuan Chi Investment Co., Ltd. Yuan Chi Investment Co., Ltd. InnoCare Optoelectronics Corporation InnoCare Optoelectronics Corporation GIO Optoelectronics Corp.	Innolux Technology Germany GmbH Innolux Optoelectronics India Private Limited Innolux Optoelectronics Philippines Corp. Innolux Optoelectronics Malaysia SDN. BHD. Chi Mei Lighting Technology Corporation GIO Optoelectronics Corp. InnoCare Optoelectronics Japan Co., Ltd. InnoCare Optoelectronics USA, INC. Double Star Inc.	Germany India Philippines Malaysia Taiwan Taiwan Japan USA Mauritius	Testing and maintenance company Distributor company Manufacturer and distributor Manufacturer and distributor Manufacturing of electronic equipment and lighting equipment Holdings, R&D, manufacturing and Distributor company Distributor company Distributor company Investment holdings	$ 33,735 302,198 28,733 121,179 263,812 858 87,149 27,963 298,113	$ 33,735 302,198 28,733 121,179 263,812 858 87,149 27,963 298,113	100,000 67,000,000 5,000,000 16,000,000 19,673,402 77,235 30,010 900,000 10,000,000	100 100 100 100 8 - 100 100 100	14,140 $ 200,466) ( 28,331 114,147 - 890 89,387 33,213 99,722	312 $ 209,846) ( 16) ( 222 - 14,038 4,422 4,957 798	312 $ 209,846) ( 16) ( 222 - 25 4,422 4,957 798

Table 7, Page 3

Innolux Corporation and Subsidiaries Information on investments in Mainland China For the three-month period ended March 31, 2020

Table 8

Expressed in thousands of NTD (Except as otherwise indicated)

Investee in Mainland China	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, 2020	Amount remitted from Taiwan to Mainland China/Amount remitted back to Taiwan for the three-month period ended March 31,2020	Amount remitted from Taiwan to Mainland China/Amount remitted back to Taiwan for the three-month period ended March 31,2020	Accumulated amount of remittance from Taiwan to Mainland China as of March 31, 2020	Net income of investee for the three-month period ended March 31, 2020	Ownership held by the Company (direct or indirect)	Investment income (loss) recognized by the Company for three-month period ended March 31, 2020(Note B)	Book value of investments in Mainland China as of March 31, 2020	Accumulated amount of investment income remitted back to Taiwan as of March 31, 2020	Footnote
					Remitted to Mainland China	Remitted back to Taiwan
Innocom Technology (Shenzhen) Co., Ltd. OED Company 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. Interface Technology (ChengDu) Co., Ltd. GIO (Maanshan) Optoelectronics Co., 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 company Manufacturing and selling of LCD backend module and related components Manufacturing and selling of LCD backend module and related components Warehousing services Manufacturing and selling of flat panel display and display materials of TFT-LCD Manufacturing R&D, Manufacturing and selling of LCD backend module and related components	$ 4,956,900 274,343 9,369,750 11,576,175 4,836,000 63,473 4,715,100 634,725 45,338 9,633,593 302,250 127,980	2 2 2 2 2 2 2 2 2 2 2 3	$ 3,835,907 60,450 222,609 11,576,175 4,836,000 63,473 4,353,476 - 45,338 408,038 302,250 -	$ - - - - - - - - - - - -	$ - - - - - - - - - - - -	$ 3,835,907 60,450 222,609 11,576,175 4,836,000 63,473 4,353,476 - 45,338 408,038 302,250 -	$ 45,820 ( 30,876) 106,690 300,547 10,303 ( 16,566) 69,339 46,056 716 5,432 799 3,106	100 4 100 100 100 100 100 100 100 7 63 100	$ 45,820 - 106,690 301,133 10,303 ( 16,566) 69,339 46,056 716 - 505 3,106	$ 11,351,828 4,722 19,720,456 20,351,990 4,807,635 509,309 5,365,834 1,632,769 84,390 1,921,003 63,210 185,393	$ 1,120,993 - 5,217,891 - - - - - - - - -	2.1 2.2 2.3 2.3 2.3 2.4 2.4 2.5 2.6 2.2 2.7

Table 8, Page 1

Investee in Mainland China	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, 2020	Amount remitted from Taiwan to Mainland China/Amount remitted back to Taiwan for the three-month period ended March 31,2020	Amount remitted from Taiwan to Mainland China/Amount remitted back to Taiwan for the three-month period ended March 31,2020	Accumulated amount of remittance from Taiwan to Mainland China as of March 31, 2020	Net income of investee for the three-month period ended March 31, 2020	Ownership held by the Company (direct or indirect)	Investment income (loss) recognized by the Company for three-month period ended March 31, 2020(Note B)	Book value of investments in Mainland China as of March 31, 2020	Accumulated amount of investment income remitted back to Taiwan as of March 31, 2020	Footnote
					Remitted to Mainland China	Remitted back to Taiwan
Foshan Innolux Flnet Electronics Ltd. Ningbo Innolux Flnet Electronics Ltd. Shenzhen PixinLED Technology Co., Ltd. Innolux Automations and Intelligence Systems (ShenZhen) Co., Ltd.	Commodity agency Commodity agency Development and selling of MINI LED Development and selling of software	$ 4,266 4,266 42,660 4,266	3 3 3 3	$ - - - -	$ - - - -	$ - - - -	$ - - - -	($ 40) ( 213) ( 958) 271	100 100 100 100	($ 40) ( 213) ( 958) 271	$ 6,323 10,236 40,696 3,377	$ - - - -

Ceiling on investments in Mainland China:

Companyname	Accumulated amount of remittance from Taiwan to Mainland China as of March 31,2020	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	27,153,642 $	36,211,355 $	(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 three-month period ended March 31, 2020 was reviewed by independent accountants.

Note C: The investment methods are as follows:

Directly investing in Mainland China.
Through investing in companies in the third area, which then invested in the investee in Mainland China.
2.1. Through investing in Stanford Developments Ltd. in the third area, which then invested in the investee in Mainland China.
2.2. Through investing in Warriors Technology Investments Ltd. in the third area, which then invested in the investee in Mainland China.
2.3. Through investing in Landmark International Ltd. in the third area, which then invested in the investee in Mainland China.
2.4. Through investing in Toppoly Optoelectronics (Cayman) Ltd. in the third area, which then invested in the investee in Mainland China.
2.5. Through investing in Innolux Optoelectronics Hong Kong Holding Limited in the third area, which then invested in the investee in Mainland China.
2.6. Through investing in Keyway Investment Management Limited in the third area, which then invested in the investee in Mainland China.
2.7. Through investing in Double Star Inc. in the third area, which then invested in the investee in Mainland China.
Others.

The company invested via the company investment entities in Mainland China to invest in Ningbo Innolux Electronics Ltd., Foshan Innolux Flent Electronics Ltd., Ningbo Innolux Flent Electronics Ltd.,

Shenzhen PixinLED Technology Co.,Ltd., Innolux Automations and Intelligence Systems (ShenZhen) Co., 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 not apply the cancellation of investment with Investment Commission of MOEA yet.

Table 8, Page 2

AI assistant

INX — Interim / Quarterly Report 2020

52330_rns_2020-12-29_cef5f0a3-69a2-4549-87c1-798c0d690a6e.pdf

INNOLUX CORPORATION AND SUBSIDIARIES

CONSOLIDATED FINANCIAL STATEMENTS AND

REVIEW REPORT OF INDEPENDENT ACCOUNTANTS

Introduction

Scope of Review

Conclusion

INNOLUX CORPORATION AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS

MARCH 31, 2020, DECEMBER 31, 2019 AND MARCH 31, 2019

INNOLUX CORPORATION AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS

MARCH 31, 2020, DECEMBER 31, 2019 AND MARCH 31, 2019

INNOLUX CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

INNOLUX CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

THREE MONTHS ENDED MARCH 31, 2020 AND 2019

INNOLUX CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

FOR THE THREE-MONTH PERIODS ENDED MARCH 31, 2020 AND 2019

INNOLUX CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS

FOR THE THREE-MONTH PERIODS ENDED MARCH 31, 2020 AND 2019

INNOLUX CORPORATION AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

FOR THE THREE-MONTH PERIODS ENDED MARCH 31, 2020 AND 2019

1. HISTORY AND ORGANIZATION

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

STATEMENTS AND PROCEDURES FOR AUTHORIZATION

3. APPLICATION OF NEW STANDARDS, AMENDMENTS AND INTERPRETATIONS

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

4. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

(1) Compliance statement

(2) Basis of preparation

(3) Basis of consolidation

5. CRITICAL ACCOUNTING JUDGEMENTS, ESTIMATES AND KEY SOURCES OF ASSUMPTION UNCERTAINTY

6. DETAILS OF SIGNIFICANT ACCOUNTS

(1) Cash and cash equivalents

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

(4) Financial assets at amortized cost

(5) Notes receivable and accounts receivable

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

(6) Inventories

(7) Investments accounted for under the equity method

(8) Property, plant and equipment

－ (9) Leasing arrangements lessee

(10) Investment property

(11) Intangible assets

A. Intangible assets are goodwill, payments for TFT-LCD related technology and royalty.

(12) Short-term borrowings

(13) Other payables

(20) Capital surplus

(21) Retained earnings

(22) Other equity items

(25) Other gains and losses

(26) Finance costs

(27) Expenses by nature

(28) Employees’ compensation and directors’ remuneration

(29) Income tax

(30) Loss per share

(31) Business combinations

(33) Changes in liabilities from financing activities

7. RELATED PARTY TRANSACTIONS

(1) Names and relationship of related parties

(2) Significant related party transactions

A. Operating revenue

B. Purchases of goods

C. Receivables from related parties

D. Other receivables from related parties

E. Payables to related parties

Purchase of property

Sale of property

8. PLEDGED ASSETS

9. SIGNIFICANT CONTINGENT LIABILITIES AND UNRECOGNIZED CONTRACT

COMMITMENTS

(2) Commitments

10. SIGNIFICANT DISASTER LOSS

11. SUBSEQUENT EVENTS AFTER THE BALANCE SHEET DATE

12. OTHERS

(1) Capital management

(2) Financial instruments

INX Interim / Quarterly Report 2020

`－` (9) Leasing arrangements lessee