INNOLUX CORPORATION AND SUBSIDIARIES

CONSOLIDATED FINANCIAL STATEMENTS AND INDEPENDENT AUDITORS’ REVIEW REPORT SEPTEMBER 30, 2021 AND 2020

~1~

INDEPENDENT AUDITORS’ REVIEW REPORT

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 September 30, 2021 and 2020, and the related consolidated statements of comprehensive income for the three-month and nine-month periods then ended, as well as the consolidated statements of changes in equity and of cash flows for the nine-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 September 30, 2021 and 2020, and of its consolidated financial performance for the three-month and nine-month periods then ended and its consolidated cash flows for the ninemonth periods then ended in accordance with “Regulations Governing the Preparation of Financial

~2~

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

PricewaterhouseCoopers, Taiwan

October 28, 2021

------------------------------------------------------------------------------------------------------------------------------------------------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.

~3~

INNOLUX CORPORATION AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS SEPTEMBER 30, 2021, DECEMBER 31, 2020 AND SEPTEMBER 30, 2020

(Expressed in thousands of New Taiwan dollars)

(The consolidated balance sheets as of September 30, 2021 and 2020 are reviewed, not audited)

Assets	Notes	September 30, 2020
Current Assets 1100 Cash and cash equivalents 1110 Financial assets at fair value through profit or loss - current 1136 Financial assets at amortized cost - current 1170 Accounts receivable, net 1180 Accounts receivable, net - related parties 1200 Other receivables 130X Inventory 1410 Prepayments 1479 Other current assets 11XX Total current assets Non-current assets 1510 Financial assets at fair value through profit or loss - non-current 1517 Financial assets at fair value through other comprehensive income - non-current 1535 Financial assets at amortised cost - non - current 1550 Investments accounted for under equity method 1600 Property, plant and equipment 1755 Right-of-use assets 1760 Investment property, net 1780 Intangible assets 1840 Deferred income tax assets 1990 Other non-current assets 15XX Total non-current assets 1XXX Total assets	6(1) 6(2) 6(4) 6(5) 7 6(2) 6(6) 8 6(2) 6(3) 6(4) 6(7) 6(8), 7 and 8 6(9) 6(10) 6(11) 6(8) and 8	`$` `27,382,017` `447,304` `21,916,323` `51,970,929` `2,744,807` `1,985,677` `31,833,671` `3,152,498` `81,568`
		`141,514,794`
		`3,844,264` `4,328,906` `-` `1,451,052` `182,621,851` `5,649,629` `506,391` `17,518,828` `7,178,059` `1,211,334`
		`224,310,314`
		`$` `365,825,108`

(Continued)

~4~

INNOLUX CORPORATION AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS

SEPTEMBER 30, 2021, DECEMBER 31, 2020 AND SEPTEMBER 30, 2020

(Expressed in thousands of New Taiwan dollars)

(The consolidated balance sheets as of September 30, 2021 and 2020 are reviewed, not audited)

	Liabilities and Equity	Notes			September 30, 2021	December 31, 2020		September 30, 2020
	Current Liabilities
2120	Financial liabilities at fair	6(2)
	value through profit or
	loss - current			`$`	`401,899 $`	`3,222,134`	`$`	`1,716,389`
2170	Accounts payable				`54,242,516`	`45,839,540`		`54,021,178`
2180	Accounts payable - related	7
	parties				`2,081,986`	`1,720,931`		`2,212,919`
2200	Other payables	6(12) and 7			`35,356,994`	`25,677,541`		`24,026,948`
2230	Current income tax
	liabilities				`2,067,839`	`1,581,635`		`1,544,101`
2250	Provisions - current	6(17) and 9			`7,364,271`	`6,152,983`		`6,573,989`
2280	Lease liabilities - current				`639,180`	`201,073`		`58,522`
2320	Long-term liabilities,	6(13)(14)
	current portion				`4,404,190`	`19,367,206`		`10,548,270`
2399	Other current liabilities				`6,308,070`	`5,407,605`		`4,566,794`
21XX	Total current liabilities				`112,866,945`	`109,170,648`		`105,269,110`
	Non-current liabilities
2530	Corporate bonds payable	6(13)			`-`	`5,374,293`		`7,559,166`
2540	Long-term borrowings	6(14)			`39,359,379`	`20,384,502`		`22,853,173`
2570	Deferred income tax
	liabilities				`2,178,768`	`1,608,990`		`1,558,815`
2580	Lease liabilities - non-
	current				`4,553,879`	`4,894,091`		`5,015,380`
2600	Other non-current	6(15)
	liabilities				`4,378,979`	`560,267`		`613,047`
25XX	Total non-current
	liabilities				`50,471,005`	`32,822,143`		`37,599,581`
2XXX	Total liabilities				`163,337,950`	`141,992,791`		`142,868,691`
	Equity attributable to owners
	of the parent
	Share capital	6(18)
3110	Share capital - common
	stock				`105,014,079`	`97,110,720`		`97,110,720`
3130	Certificate of entitlement to
	new shares from convertible
	bond				`582,122`	`2,293,612`		`-`
3200	Capital surplus	6(19)			`103,277,533`	`99,707,996`		`99,463,402`
	Retained earnings	6(20)
3310	Legal reserve				`8,062,551`	`7,870,713`		`7,870,713`
3320	Special reserve				`6,059,671`	`7,325,437`		`7,325,437`
3350	Unappropriated retained
	earnings				`78,935,221`	`29,120,853`		`18,887,702`
3400	Other equity interest	6(21)	`(`		`4,381,487 ) (`	`6,059,671) (`		`7,893,378 )`
31XX	Equity attributable to
	owners of the parent				`297,549,690`	`237,369,660`		`222,764,596`
36XX	Non-controlling interests				`454,565`	`197,386`		`191,821`
3XXX	Total equity				`298,004,255`	`237,567,046`		`222,956,417`
3X2X	Total liabilities and
	equity			`$`	`461,342,205 $`	`379,559,837`	`$`	`365,825,108`

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

~5~

INNOLUX CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

FOR THE THREE-MONTH AND NINE-MONTH PERIODS ENDED SEPTEMBER 30, 2021 AND 2020

(Expressed in thousands of New Taiwan dollars, except for earnings (loss) per share amounts) (Reviewed, not audited)

					Threemonths ended	September30		Ninemonths ended	Ninemonths ended	September30
	Items	Notes			2021	2020		2021		2020
4000	Sales revenue	6(22) and 7		`$`	`93,085,886 $`	`74,568,417`	`$`	`270,160,114`	`$`	`191,843,194`
5000	Operating costs	6(6)(27) and 7	`(`		`66,216,833 )(`	`67,643,492) (`		`190,800,861) (`		`183,956,540)`
5900	Net operating margin				`26,869,053`	`6,924,925`		`79,359,253`		`7,886,654`
	Operating expenses	6(27)
6100	Selling expenses		`(`		`1,995,593 ) (`	`894,852) (`		`4,582,343) (`		`2,356,739 )`
6200	General and administrative expenses		`(`		`2,059,946 ) (`	`1,635,055) (`		`6,049,264) (`		`4,760,734 )`
6300	Research and development expenses		`(`		`3,801,401 )(`	`3,062,964) (`		`11,057,856) (`		`9,012,705)`
6000	Total operating expenses		`(`		`7,856,940 )(`	`5,592,871) (`		`21,689,463) (`		`16,130,178)`
6900	Operating profit (loss)				`19,012,113`	`1,332,054`		`57,669,790 (`		`8,243,524)`
	Non-operating income and expenses
7100	Interest income	6(23)			`283,329`	`52,488`		`576,839`		`324,510`
7010	Other income	6(24)			`879,461`	`816,168`		`1,886,877`		`1,774,930`
7020	Other gains and losses	6(25)			`27,831 (`	`427,523) (`		`3,537,282) (`		`864,032 )`
7050	Finance costs	6(26)	`(`		`230,342 ) (`	`244,667) (`		`747,910) (`		`761,481 )`
7060	Share of profit of associates and joint ventures	6(7)
	accounted for under equity method				`5,261`	`71,445`		`53,274`		`138,034`
7000	Total non-operating income and expenses				`965,540`	`267,911 (`		`1,768,202)`		`611,961`
7900	Profit (loss) before income tax				`19,977,653`	`1,599,965`		`55,901,588 (`		`7,631,563 )`
7950	Income tax expense	6(29)	`(`		`1,373,983 )(`	`60,423) (`		`4,311,448) (`		`869,320)`
8200	Profit (loss) for the period			`$`	`18,603,670 $`	`1,539,542`	`$`	`51,590,140 ($`		`8,500,883)`

(Continued)

~6~

INNOLUX CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

FOR THE THREE-MONTH AND NINE-MONTH PERIODS ENDED SEPTEMBER 30, 2021 AND 2020

(Expressed in thousands of New Taiwan dollars, except for earnings (loss) per share amounts) (Reviewed, not audited)

						Threemonths ended September30	Threemonths ended September30			Ninemonths ended September30	Ninemonths ended September30
	Items		Notes			2021	2020			2021	2020
	Other comprehensive income loss (net)
	Components of other comprehensive income (loss)
	that will not be reclassified to profit or loss
8316	Unrealized gains (losses) on financial assets at fair	6(21)
	value through other comprehensive income			`($`			`2,393,061 ) $`	`314,505`	`$`	`4,317,586`	`$`	`249,978`
8349	Income tax related to components of other
	comprehensive income that will not be reclassified
	to profit or loss						`155,977`	`- (`		`796,071)`		`8,377`
8310	Components of other comprehensive income
	(loss) that will not be reclassified to profit or loss			`(`			`2,237,084 )`	`314,505`		`3,521,515`		`258,355`
	Components of other comprehensive income (loss)
	that will be reclassified to profit or loss
8361	Financial statements translation differences of	6(21)
	foreign operations			`(`			`326,523 )`	`1,170,109 (`		`1,527,774) (`		`592,479 )`
8370	Share of other comprehensive loss of associates	6(8)(21)
	and joint ventures accounted for under equity
	method			`(`			`167 )(`	`39,533) (`		`27,220) (`		`41,798 )`
8360	Components of other comprehensive income
	(loss) that will be reclassified to profit or loss			`(`			`326,690 )`	`1,130,576 (`		`1,554,994) (`		`634,277 )`
8300	Other comprehensive income (loss) for the period,
	net of tax			`($`			`2,563,774 )$`	`1,445,081`	`$`	`1,966,521 ($`		`375,922 )`
8500	Total comprehensive income (loss) for the period				`$`	`16,039,896 $`		`2,984,623`	`$`	`53,556,661 ($`		`8,876,805 )`
	Profit (loss) attributable to:
8610	Owners of the parent				`$`	`18,602,129 $`		`1,542,175`	`$`	`51,592,448 ($`		`8,507,098 )`
8620	Non-controlling interest				`$`		`1,541 ($`	`2,633) ($`		`2,308)`	`$`	`6,215`
	Other comprehensive income (loss) attributable to:
8710	Owners of the parent				`$`	`16,038,714 $`		`2,986,585`	`$`	`53,559,895 ($`		`8,882,711 )`
8720	Non-controlling interest				`$`		`1,182 ($`	`1,962) ($`		`3,234)`	`$`	`5,906`
	Earnings (loss) per share (in dollars)	6(30)
9750	Basic earnings (loss) per share				`$`		`1.77 $`	`0.16`	`$`	`4.99 ($`		`0.88 )`
9850	Diluted earnings (loss) per share				`$`		`1.72 $`	`0.15`	`$`	`4.78 ($`		`0.88 )`

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

~7~

INNOLUX CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

FOR THE NINE-MONTH PERIODS ENDED SEPTEMBER 30, 2021 AND 2020 (Expressed in thousands of New Taiwan dollars)

(Reviewed, not audited)

Notes				Equityattributable to	Equityattributable to	owners of theparent				Non-controlling interests	Total
	Share Capital Commonstock Certificate of entitlement to new shares from convertible bond		Capitalsurplus		RetainedEarnings	Unappropriated earnings `$ 29,864,446` `(` `8,507,098)` `-` `(` `8,507,098)` `(` `2,661,974)` `-` `-` `-` `-` `192,328` `-` `-` `$ 18,887,702` `$ 29,120,853` `51,592,448` `-` `51,592,448` `(` `191,838)` `1,265,766` `(` `3,141,271)` `-` `-` `-` `-` `-` `-` `-` `289,263` `-` `$ 78,935,221`	Other EquityInterest Financial statements translation differences of foreign operations Unrealised gains (losses) from financial assets measured at fair value through other comprehensive income `($ 9,497,686)` `$ 2,172,249` `-` `-` `(` `633,968)` `258,355` `(` `633,968)` `258,355` `-` `-` `-` `-` `-` `-` `-` `-` `-` `-` `-` `(` `192,328)` `-` `-` `-` `-` `($ 10,131,654)` `$ 2,238,276` `($ 8,879,169)` `$ 2,819,498` `-` `-` `(` `1,554,068)` `3,521,515` `(` `1,554,068)` `3,521,515` `-` `-` `-` `-` `-` `-` `-` `-` `-` `-` `-` `-` `-` `-` `-` `-` `-` `-` `-` `-` `-` `(` `289,263)` `-` `-` `($ 10,433,237)` `$ 6,051,750`	Treasury shares	Total
	Commonstock			Legal reserve	Special reserve		Financial statements translation differences of foreign operations
6(21) 6(20) 6(19)(20) 6(19) 6(19) 6(3)(21) 6(19) 6(21) 6(20) 6(19)(20) 6(19) 6(18)(19) 6(19) 4(3) 6(3)(21) 6(19)	`$ 97,110,720` `-` `-` `-` `-` `-` `-` `-` `-` `-` `-` `-` `$ 97,110,720` `$ 97,110,720` `-` `-` `-` `-` `-` `-` `-` `-` `7,903,359` `-` `-` `-` `-` `-` `-` `$ 105,014,079`	`$` `-` `-` `-` `-` `-` `-` `-` `-` `-` `-` `-` `-` `$` `-` `$ 2,293,612` `-` `-` `-` `-` `-` `-` `-` `-` `(` `1,711,490)` `-` `-` `-` `-` `-` `-` `$` `582,122`	`$ 100,362,379` `-` `-` `-` `-` `(` `963,107)` `21,246` `38` `-` `-` `42,182` `664` `$ 99,463,402` `$ 99,707,996` `-` `-` `-` `-` `-` `-` `(` `1,047,090)` `1,602` `4,544,732` `11,411` `-` `(` `5,300)` `59,008` `-` `5,174` `$ 103,277,533`	`$ 7,870,713` `-` `-` `-` `-` `-` `-` `-` `-` `-` `-` `-` `$ 7,870,713` `$ 7,870,713` `-` `-` `-` `191,838` `-` `-` `-` `-` `-` `-` `-` `-` `-` `-` `-` `$ 8,062,551`	`$ 4,663,463` `-` `-` `-` `2,661,974` `-` `-` `-` `-` `-` `-` `-` `$ 7,325,437` `$ 7,325,437` `-` `-` `-` `-` `(` `1,265,766` `)` `-` `-` `-` `-` `-` `-` `-` `-` `-` `-` `$ 6,059,671`		`($ 9,497,686)` `-` `(` `633,968)` `(` `633,968)` `-` `-` `-` `-` `-` `-` `-` `-` `($ 10,131,654)` `($ 8,879,169)` `-` `(` `1,554,068)` `(` `1,554,068)` `-` `-` `-` `-` `-` `-` `-` `-` `-` `-` `-` `-` `($ 10,433,237)`	`($` `618,580)` `-` `-` `-` `-` `-` `-` `-` `-` `-` `618,580` `-` `$` `-` `$` `-` `-` `-` `-` `-` `-` `-` `-` `-` `-` `-` `-` `-` `-` `-` `-` `$` `-`	`$ 231,927,704` `(` `8,507,098)` `(` `375,613)` `(` `8,882,711)` `-` `(` `963,107)` `21,246` `38` `-` `-` `660,762` `664` `$ 222,764,596` `$ 237,369,660` `51,592,448` `1,967,447` `53,559,895` `-` `-` `(` `3,141,271)` `(` `1,047,090)` `1,602` `10,736,601` `11,411` `-` `(` `5,300)` `59,008` `-` `5,174` `$ 297,549,690`	`$` `182,325` `6,215` `(` `309` `)` `5,906` `-` `-` `-` `6,837` `(` `3,247` `)` `-` `-` `-` `$` `191,821` `$` `197,386` `(` `2,308` `)` `(` `926` `)` `(` `3,234` `)` `-` `-` `-` `-` `-` `-` `59,157` `(` `3,247` `)` `45,000` `159,503` `-` `-` `$` `454,565`	`$ 232,110,029` `(` `8,500,883)` `(` `375,922)` `(` `8,876,805)` `-` `(` `963,107)` `21,246` `6,875` `(` `3,247)` `-` `660,762` `664` `$ 222,956,417` `$ 237,567,046` `51,590,140` `1,966,521` `53,556,661` `-` `-` `(` `3,141,271)` `(` `1,047,090)` `1,602` `10,736,601` `70,568` `(` `3,247)` `39,700` `218,511` `-` `5,174` `$ 298,004,255`

The accompanying notes are an integral part of these consolidated financial statements. ~8~

INNOLUX CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS

FOR THE NINE-MONTH PERIODS ENDED SEPTEMBER 30, 2021 AND 2020

(Expressed in thousands of New Taiwan dollars)

(Reviewed, not audited)

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

Net loss (gain) on financial assets or liabilities at fair
value through profit or loss
Compensation cost of share-based payments

Share of profit of associates and joint ventures
accounted for under equity method

Loss on disposal of property, plant and equipment

Loss on disposal of Investmen

Gain on lease modification
Interest expense

Interest income

Dividend income

Foreign exchange gain
Others
Changes in operating assets and liabilities
Changes in operating assets
Financial assets /liabilities at fair value through
profit or loss
Accounts receivable
Accounts receivable - related parties
Other receivables
Inventories
Prepayments
Other current assets
Changes in operating liabilities
Accounts payable
Accounts payable - related parties
Other payables
Provisions - current
Other current liabilities
Other non-current liabilities
Cash inflow generated from operations
Cash paid for income tax
Net cash flows from operating activities Notes
2021
2020
$
55,901,588 ($
7,631,563 )
6(27)
27,375,341
26,583,696
1,479,201 (
286,027 )
6(27)
17,031
388,475
6(7)
(
53,274 ) (
138,034 )
6(25)
152,052
99,290
6(25)
109,538
-
(
966 )
-
6(26)
747,910
761,481
6(23)
(
576,839 ) (
324,510 )
6(24)
(
199,529 ) (
199,301 )
(
93,293 ) (
171,739 )
4,599
-
1,076,737 (
464,267 )
(
15,163,677 ) (
12,303,492 )
376,995 (
256,288 )
203,830 (
308,558 )
(
8,294,193 ) (
1,394,595 )
279,671
591,297
(
6,774 )
66,123
8,418,818
6,587,313
361,055 (
1,572,072 )
8,010,659 (
2,249,351 )
1,211,288 (
201,938 )
620,131 (
278,661 )
3,965,742 (
54,663 )
85,923,641
7,242,616
(
662,542 ) (
1,363,283 )
85,261,099
5,879,333

(Continued)

~9~

INNOLUX CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS

FOR THE NINE-MONTH PERIODS ENDED SEPTEMBER 30, 2021 AND 2020

(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
Acquisition of investments in equity instruments
measured at fair value through other comprehensive
income
Proceeds from disposal of financial assets measured at fair
value through other comprehensive income

Decrease (increase) in financial assets at amortized cost -
current
Acqusition of financial assets at amortized cost -non-
current
Proceeds from disposal of financial assets at amortized
cost
Proceeds from repayments of financial assets at amortised
cost
Increase in refundable deposits
Increase in investment accounted for under equity method
Joint venture to establish a subsidiary

Acquisition of property, plant and equipment

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

Interest received
Dividends received
Net cash flows used in investing activities
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from long-term borrowings
Repayments of long-term borrowings
Proceeds from issuance of bonds
Interest paid
Repayments of the principal portion of lease liabilities
Cash dividends paid to non-controlling interests
Treasury shares transferred to employees
Repurchase of bonds payable

Cash paid from capital surplus

Cash dividends paid

Proceeds from disposal of shares of subsidiaries

Employee share options exercised
Others

Net cash flows (used in) from financing activities
Effect of changes in foreign currency exchange
Net decrease in cash and cash equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period Notes
2021
2020
($
30,684,569 ) ($
339,520 )
14,987,402
33,688
(
506,942 ) (
7,332 )
6(3)
363,588
218,492
14,757,553 (
2,232,697 )
(
96,220,701 )
-
24,670,000
-
5,481,334
-
(
252,407 ) (
478,599 )
(
300,000 )
-
4(3)
39,700
-
6(31)
(
17,538,002 ) (
15,745,304 )
39,464
76,746
6(11)
(
15,905 ) (
20,388 )
283,997
349,106
199,529
199,301
(
84,695,959 ) (
17,946,507 )
23,250,000
8,500,000
(
19,299,500 ) (
10,779,500 )
-
8,900,934
(
588,935 ) (
517,935 )
(
82,013 ) (
302,735 )
- (
3,247 )
-
279,162
6(13)
(
104,455 )
-
6(20)
(
1,047,090 ) (
963,107 )
6(20)
(
3,141,271 )
-
4(3)
218,511
-
57,775
-
6(19)
5,174
664
(
731,804 )
5,114,236
(
706,978 ) (
398,020 )
(
873,642 ) (
7,350,958 )
26,532,083
34,732,975
$
25,658,441 $
27,382,017

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

~10~

INNOLUX CORPORATION AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

FOR THE NINE-MONTH PERIODS ENDED SEPTEMBER 30, 2021 AND 2020

(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 the Republic of China (R.O.C.). The Company was listed on the Taiwan Stock Exchange Corporation (the “TSEC”) in October 2006. The Company merged with TPO Displays Corporation and Chi Mei Optoelectronics Corporation on March 18, 2010, with the Company as the surviving entity.
(2) The Company and its subsidiaries (the “Group”) engage in the research, development, design, manufacture and sales of TFT-LCD panels, modules and monitors of LCD, color filter, and low temperature poly-silicon TFT-LCD.
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 October 28, 2021.

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 2021 are as follows:

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

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

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

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

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

~11~

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

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

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

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

==> picture [483 x 48] intentionally omitted <==

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

Effective date by
International Accounting
New Standards, Interpretations and Amendments Standards Board
----- End of picture text -----

endorsed by the FSC are as follows: New Standards, Interpretations and Amendments	Effective date by International Accounting 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, 2023
Amendments to IFRS 17, ‘Insurance contracts’	January 1, 2023
Amendments to IAS 1, ‘Classification of liabilities as current or non-	January 1, 2023
current’
Amendments to IAS 1, ‘Disclosure of accounting policies’	January 1, 2023
Amendments to IAS 8, ‘Definition of accounting estimates’	January 1, 2023
Amendments to IAS 12, ‘Deferred tax related to assets and liabilities	January 1, 2023
arising from a single transaction’

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.

~12~

(1) Compliance statement

A. The consolidated financial statements of the Group have been prepared 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 FSC.
B. These financial statements should be read with the consolidated financial statements for the year ended December 31, 2020.

(2) Basis of preparation

A. Except for the following items, these consolidated financial statements have been prepared under the historical cost convention:
(a) Financial assets and financial liabilities (including derivative instruments) at fair value through profit or loss.
(b) Financial assets at fair value through other comprehensive income.
(c) Defined benefit liabilities recognized based on the net amount of pension fund assets less present value of defined benefit obligations.
B. The preparation of financial statements in conformity with 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, 2020.
B. Subsidiaries included in the consolidated financial statements:

Main Business Name of Investor Name of Subsidiary Activities	September December September 30,2021 31,2020 30,2020 Description Ownership (%)
Innolux Corporation Innolux Holding Limited Investment holdings Keyway Investment Management Limited Investment holdings Landmark International Ltd. Investment holdings Toppoly Optoelectronics (B.V.I.) Ltd. Investment holdings Innolux Hong Kong Holding Limited Investment holdings Leadtek Global Group Limited Distribution company	100 100 100 - 100 100 100 - 100 100 100 - 100 100 100 - 100 100 100 - - 100 100 (e)

~13~

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Main Ownership (%)
Business September December September
Name of Investor Name of Subsidiary Activities 30, 2021 31, 2020 30, 2020 Description
----- End of picture text -----

Name of Investor	Name of Subsidiary	Activities	30,2021	31, 2020	30, 2020	Description
Innolux	Yuan Chi Investment Co.,	Investment company	100	100	100	-
Corporation	Ltd.
	InnoJoy Investment	Investment company	100	100	100	-
	Corporation
	Innolux Japan Co., Ltd.	Investment, R&D	54	54	54	-
		and distribution
		company
	Innolux Singapore Holding	Investment holdings	100	100	100	-
	Pte. Ltd.
	InnoCare Optoelectronics	Investment, R&D,	61	100	100	(f)
	Corporation	manufacturing and
		distribution company
	GIO Optoelectronics Corp.	Investment, R&D,	70	63	63	(g)
		manufacturing and
		distribution company
	INStek Corporation	R&D, manufacturing	40	-	-	(h)
		and distribution
		company
Innolux Holding	Rockets Holding Limited	Investment holdings	100	100	100	-
Limited
	Suns Holding Ltd	Investment holdings	100	100	100	-
	Lakers Trading Limited	Distribution	100	100	100	-
		company
Keyway Investment	Foshan Innolux Logistics	Warehousing	100	100	100	-
Management	Ltd.	company
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 Kong	Innolux Hong Kong	Distribution	100	100	100	-
Holding Limited	Limited	company
	Innolux Japan Co., Ltd.	Investment, R&D	46	46	46	-
		and distribution
		company
	CarUX Holding Limited	Investment holdings	100	100	100	-
InnoJoy Investment	Inno Capital Corporation	Investment company	100	-	-	(i)
Corporation
Innolux Japan Co.,	Innolux USA Inc.	Distribution	100	100	100	-
Ltd.		company

~14~

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Name of Investor	Name of Subsidiary	Activities	30,2021	31, 2020	30, 2020	Description
Innolux Singapore	INNOLUX	Distribution	100	100	100	-
Holding Pte. Ltd.	OPTOELECTRONICS	company
	INDIA PRIVATE LIMITED
	INNOLUX	Manufacturing and	100	100	100	-
	OPTOELECTRONICS	distribution company
	PHILIPPINES CORP.
	INNOLUX	Manufacturing and	100	100	100	-
	OPTOELECTRONICS	distribution company
	MALAYSIA SDN. BHD.
Rockets Holding	Stanford Developments	Investment holdings	100	100	100	-
Limited	Limited
	Nets Trading Ltd.	Investment company	100	100	100	-
Suns Holding Ltd	Warriors Technology	Investment company	100	100	100	-
	Investments Ltd
Toppoly	Nanjing Innolux	Distribution	100	100	100	-
Optoelectronics	Technology Ltd.	company
(Cayman) Ltd.
	Nanjing Innolux	Processing company	100	100	100	-
	Optoelectronics Ltd.
CarUX Holding	CARUX TECHNOLOGY	Investment and	100	100	100	-
Limited	PTE. LTD.	distribution company
CARUX	Innolux Optoelectronics	Investment holdings	100	100	100	-
TECHNOLOGY	Hong Kong Holding
PTE. LTD.	Limited
	Innolux Europe B.V.	Investment,	100	100	100	-
		distribution, and
		R&D testing
		company
	CarUX Technology Inc.	R&D, manufacturing	100	100	100	-
		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.
Limited
Ningbo Innolux	Ningbo Innolux Electornics	Distribution	-	-	100	(b)
Display Ltd.	Ltd.	company
Ningbo Innolux	Ningbo CarUX Technology	Processing company	100	-	-	(c)
Optoelectronics	Ltd.
Ltd.

~15~

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Name of Investor	Name of Subsidiary	Activities	30,2021	31, 2020	30, 2020	Description
Innocom	Shenzhen PixinLED	R&D and	100	100	100	-
Technology	Technology Co., Ltd.	distribution company
(Shenzhen) Co.,
LTD.
	Innolux Automations and	R&D and	-	-	100	(a)
	Intelligence Systems	distribution company
	(ShenZhen) Co., Ltd.
InnoCare	InnoCare Optoelectronics	Distribution	100	100	100	-
Optoelectronics	Japan Co., Ltd.	company
Corporation
	InnoCare Optoelectronics	Distribution	100	100	100	-
	USA, INC.	company
	Ningbo Innolux Electornics	Distribution	100	100	-	(b)
	Ltd.	company
	Innocare Optoelectronics	After-sales service	100	-	-	(d)
	Europe B.V.	company
GIO	Double Star Inc.	Investment holdings	100	100	100	-
Optoelectronics
Corp.
	GIO (Maanshan)	Processing company	100	100	100	-
	Optoelectronics Co., Ltd.

(a) In the fourth quarter of 2020, Innolux Automations and Intelligence Systems (ShenZhen) Co., Ltd. had completed liquidation and dissolution.
(b) In the fourth quarter of 2020, InnoCare Optoelectronics Corporation obtained 100% equity interest in Ningbo Innolux Electornics Ltd. as the Group adjusted the investment structure.
(c) Ningbo CarUX Technology Ltd. was established in the first quarter of 2021 and was included in the consolidated financial statements since the date of establishment.
(d) Innocare Optoelectronics Europe B.V. was established in the first quarter of 2021 and was included in the consolidated financial statements since the date of establishment.
(e) In the second quarter of 2021, Leadtek Global Group Limited had completed liquidation and dissolution.
(f) The Board of Directors of the Company resolved to implement InnoCare Optoelectronics Corporation’s listing plan by releasing its equity interests in the subsidiary in the amount of 10,500 thousand shares in the third quarter of 2021. As of September 30, 2021, the Company had released 9,500 thousand shares of InnoCare Optoelectronics Corporation and received proceeds amounting to $218,511.
(g) The Company repurchased outstanding domestic convertible bonds of the subsidiary, GIO Optoelectronics Corp. (“GIO Company”), in the third quarter of 2021, and the Company converted those convertible bonds into common shares of GIO Company, please refer to Note 6(13) for further information.

~16~

(h) The Company injected capital and established a new subsidiary, INStek Corporation, and acquired 40% equity interests in the subsidiary in the third quarter of 2021. The Company had ability and had obtained half seats in the Board of Directors, which indicates that the Company has current ability to direct the relevant activities of the subsidiary. The subsidiary shall be included in the consolidated financial statements, and net cash inflow in the consolidated financial statements was $39,700.
(i) Inno Capital Corporation was established in the third quarter of 2021 and was included in the consolidated financial statements since the date of establishment.
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) 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 2020 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.

(5) 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 2020 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.

(6) Dividends

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

5. CRITICAL ACCOUNTING JUDGMENTS, 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, 2020.

~17~

6. DETAILS OF SIGNIFICANT ACCOUNTS

(1) Cash and cash equivalents

Cash on hand, checking accounts and demand deposits Time deposits	September 30, 2021 December 31, 2020 September 30, 2020 `18,977,134` `$` `21,461,990` `$` `22,061,966` `$` `6,681,307` `5,070,093` `5,320,051` `25,658,441` `$` `26,532,083` `$` `27,382,017` `$`

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 Beneficiary certificates Structured products Foreign exchange swap contracts Forward foreign exchange contracts Non-current items Financial assets mandatorily measured at fair value through profit or loss Listed stocks Unlisted stocks Financial products Liabilities Current items Financial liabilities held for trading Convertible bonds derivative instruments Foreign exchange swap contracts Forward foreign exchange contracts	September 30,2021 `12,606,409` `$` `3,207,476` `11,118` `6,768` `15,831,771` `$` `1,045,023` `$` `3,047,375` `19,117` `4,111,515` `$` September 30,2021 `-` `$` `56,207` `345,692` `401,899` `$`	December 31,2020 `-` `$` `-` `-` `706,299` `706,299` `$` `1,037,782` `$` `2,442,400` `-` `3,480,182` `$` December 31,2020 `3,208,560` `$` `-` `13,574` `3,222,134` `$`	September 30,2020
			`-` `$` `-` `-` `447,304`
			`447,304` `$`
			`729,003` `$` `3,115,261` `-`
			`3,844,264` `$`
			September 30,2020
			`1,671,795` `$` `-` `44,594`
			`1,716,389` `$`

~18~

A. The Group sold $2,566,352 of stocks at fair value during 2020 and the amount of receivables (shown as other receivables) outstanding as of September 30, 2021 was $1,259,091.
B. The Company entered into a ‘Share Issuance and Asset Purchase Agreement’ with Nanjing Huadong Electronic Information & Technology Co., Ltd (It was renamed as TPV Technology Co.,ltd. in the second quarter of 2021) (“TPV Technology”) during the nine-month period ended September 30, 2021. Refer to Note 9(2) for relevant information.
C. The non-hedging derivative financial assets and liabilities transaction information are as follows:

Derivative financial asset and liabilities	Contract Period USD (sell) `260` `$` 2021/09-2021/10 RMB (buy) `1,685` 2021/09-2021/10 TWD (sell) `852,082` 2021/09-2021/10 RMB (buy) `198,315` 2021/09-2021/10 USD (sell) `30,000` 2021/09-2021/10 JPY (buy) `3,308,025` 2021/09-2021/10 TWD (sell) `9,171,000` 2021/06-2022/01 JPY (buy) `36,500,000` 2021/06-2022/01 RMB (sell) `700,000` 2021/09-2021/10 TWD (buy) `2,989,107` 2021/09-2021/10 USD (sell) `1,105,000` 2021/08-2021/10 TWD (buy) `30,547,035` 2021/08-2021/10 HKD (sell) `81,689` 2021/09-2021/11 USD (buy) `10,500` 2021/09-2021/11 RMB (sell) `1,715,834` 2021/09-2021/10 USD (buy) `265,000` 2021/09-2021/10 EUR(sell) `5,000` 2021/09-2021/10 USD(buy) `5,910` 2021/09-2021/10 USD(sell) `535,000` 2021/08-2021/12 TWD(buy) `14,858,479` 2021/08-2021/12 September 30,2021 Contract Amount (Notional Principal) (in thousands)	December 31,	2020
		Contract Amount (Notional Principal) (in thousands)	Contract Period
Current items Forward foreign exchange contracts Forward foreign exchange contracts Forward foreign exchange contracts Forward foreign exchange contracts Forward foreign exchange contracts Forward foreign exchange contracts Forward foreign exchange contracts Forward foreign exchange contracts Forward foreign exchange contracts Foreign exchange swap contracts		TWD (sell) `4,034,150` `$` JPY (buy) `15,000,000` USD (sell) `170,000` JPY (buy) `17,711,370` USD (sell) `1,207,000` RMB (buy) `8,012,265` USD (sell) `140,000` TWD (buy) `3,924,200`	2020/11-2021/02 2020/11-2021/02 2020/11-2021/02 2020/11-2021/02 2020/10-2021/04 2020/10-2021/04 2020/12-2021/01 2020/12-2021/01

~19~

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

September 30, 2020
Derivative Contract Amount
financial asset (Notional Principal)
and liabilities (in thousands) Contract Period
----- End of picture text -----

and liabilities	(in th	ou	sands)	Contract Period
Current items
Forward foreign	TWD (sell)	`$`	`5,774,130`	2020/08-2020/12
exchange contracts	JPY (buy)		`21,000,000`	2020/08-2020/12
Forward foreign	USD (sell)		`85,000`	2020/08-2020/10
exchange contracts	JPY (buy)		`8,991,800`	2020/08-2020/10
Forward foreign	USD (sell)		`982,000`	2020/08-2020/12
exchange contracts	RMB (buy)		`6,813,494`	2020/08-2020/12
Forward foreign	HKD (sell)		`387,639`	2020/08-2020/11
exchange contracts	USD (buy)		`50,000`	2020/08-2020/11
Forward foreign	RMB (sell)		`259,449`	2020/09-2020/10
exchange contracts	USD (buy)		`38,000`	2020/09-2020/10

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.

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

Non-current items Equity instruments Listed stocks Unlisted stocks	September 30,2021 `9,310,387` `$` `35,220` `9,345,607` `$`	December 31,2020 `3,853,042` `$` `1,034,639` `4,887,681` `$`	September 30,2020
			`3,285,581` `$` `1,043,325` `4,328,906` `$`

A. The Group has elected to classify equity instruments that are considered to be strategic investments and steady dividend income as financial assets at fair value through other comprehensive income.
B. The Group sold $358,212 and $218,492 of stocks at fair value resulting in cumulative gains amounting to $289,263 and $192,328 on disposal which were recognized in unappropriated retained earnings during the nine-month period ended September 30, 2021 and 2020.
C. For information on other comprehensive income for fair value change recognized by the Group for the nine-month periods ended September 30, 2021 and 2020, please refer to Note 6(21) “Other equity”.

~20~

(4) Financial assets at amortized cost

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

September 30, 2021 December 31, 2020 September 30, 2020
Current items
Principal guaranteed financial
assets $ 22,464,063 $ 42,687,746 $ 21,916,323
- -
Corporate bonds 1,700,630
$ 24,164,693 $ 42,687,746 $ 21,916,323
Non-current items
Principal guaranteed financial
assets $ 58,198,476 $ - $ -
- -
Corporate bonds 6,062,566
Fixed income financial
- -
products 5,206,869
- -
$ 69,467,911 $ $
----- End of picture text -----

A. The Group recognized $243,192, $29,039, $461,967 and $140,089 of interest income arising from the financial assets at amortized cost for the three-month and the nine-month periods ended September 30, 2021 and 2020, respectively.
B. The Group associates with a variety of financial institutions and counterparties all with high credit quality to disperse credit risk, so it expects that the probability of financial institution and counterparty defaults is remote.

(5) Notes receivable and accounts receivable

Notes receivable Accounts receivable Less: Allowance for uncollectible accounts `(`	September 30, 2021 `62,187` `$` `65,192,825` `65,255,012` `209,419)` `(` `65,045,593` `$`	December 31, 2020 `239,644` `$` `49,867,533` `50,107,177` `209,419)` `49,897,758` `$`	September30,2020
			`120,149` `$` `52,060,198` `52,180,347` `209,418)` `(` `51,970,929` `$`

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	September 30,2021 `62,801,793` `$` `2,160,862` `42,499` `249,858` `65,255,012` `$`	December 31,2020 `49,489,308` `$` `401,369` `129,369` `87,131` `50,107,177` `$`	September 30,2020
			`51,614,604` `$` `404,720` `83,907` `77,116` `52,180,347` `$`

The above aging analysis was based on past due date.

B. As of September 30, 2021, December 31, 2020 and September 30, 2020, accounts receivable and notes receivable were all from contracts with customers. As of January 1, 2020, the balance of receivables from contracts with customers amounted to $40,099,225.
C. Information relating to credit risk of accounts receivable is provided in Note 12(2).

~21~

(6) Inventories

Raw materials and supplies Work in progress Finished goods	September 30,2021 `9,326,270` `$` `15,615,366` `14,217,827` `39,159,463` `$`	December 31,2020 `5,782,404` `$` `13,670,471` `11,412,395` `30,865,270` `$`	September 30,2020 `5,995,897` `$` `15,065,660` `10,772,114` `31,833,671` `$`

For the three-month and nine-month periods ended September 30, 2021 and 2020, the Group recognized cost of goods sold for inventories that have been sold at $66,147,239, $67,520,865, $190,537,665 and $183,833,748 and recognized net inventory loss at $69,594, $122,627, $263,196 and $122,792 due to write down of cost of scrap inventories to net realizable value, respectively.

(7) Investments accounted for under the equity method

Ampower Holding Ltd. FI Medical Device Manufacturing Co., Ltd. PanelSemi Corporation Others	September 30, 2021 `808,091` `$` `460,054` `243,377` `62,368` `1,573,890` `$`	December 31,2020 `834,982` `$` `377,751` `-` `33,501` `1,246,234` `$`	September 30,2020
			`855,549` `$` `553,619` `-` `41,884` `1,451,052` `$`

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 loss - net of tax Total comprehensive income		2021 2020 `5,261` `$` `71,445` `$` `167)` `39,533)` `(` `5,094` `$` `31,912` `$` For the three-month periods ended September 30,	2021 2020 `53,274` `$` `138,034` `$` `27,220)` `(` `41,798)` `(` `26,054` `$` `96,236` `$` For the nine-month periods ended September 30,
	`(`	2021 `5,261` `$` `167)` `(` `5,094` `$`

~22~

(8) Property, plant and equipment

2021

									2021
												Transfer, net
												exchange
												differences
			At January1			Additions			Disposals			and others	At	September 30
Cost:
Land		`$`	`4,093,726`		`$`	`-`		`$`	`-`		`$`	`-`	`$`	`4,093,726`
Buildings			`203,938,280`			`335,154`	`(`		`82,916)`			`863,178`		`205,053,696`
Machinery and equipment			`526,646,694`			`3,084,719`	`(`		`4,844,405)`			`10,317,399`		`535,204,407`
Other equipment			`49,731,327`			`8,290`	`(`		`2,100,460)`			`2,757,205`		`50,396,362`
			`784,410,027`			`3,428,163`	`(`		`7,027,781)`			`13,937,782`		`794,748,191`
Accumulated depreciation
and impairment:
Buildings	`(`		`139,325,425)`	`(`		`6,425,185)`			`79,610`			`259,683`	`(`	`145,411,317)`
Machinery and equipment	`(`		`436,793,758)`	`(`		`16,999,681)`			`4,323,848`			`520,966`	`(`	`448,948,625)`
Other equipment	`(`		`42,804,109)`	`(`		`3,409,962)`			`2,068,290`			`130,106`	`(`	`44,015,675)`
	`(`		`618,923,292)`	`(`		`26,834,828)`			`6,471,748`			`910,755`	`(`	`638,375,617)`
Unfinished construction
and equipment under
acceptance			`13,414,940`			`15,777,150`	`(`		`42)`	`(`		`21,159,375)`		`8,032,673`
		`$`	`178,901,675`										`$`	`164,405,247`
									2020
												Transfer, net
												exchange
												differences
			At January1			Additions			Disposals			and others	At	September 30
Cost:
Land		`4,093,726` `$`			`$`	`-`		`$`	`-`		`$`	`-`	`$`	`4,093,726`
Buildings			`202,292,552`			`246,223`	`(`		`1,410)`			`858,021`		`203,395,386`
Machinery and equipment			`519,719,206`			`1,731,967`	`(`		`4,912,819)`			`8,866,961`		`525,405,315`
Other equipment			`47,114,625`			`81,702`	`(`		`1,559,212)`			`3,536,262`		`49,173,377`
			`773,220,109`			`2,059,892`	`(`		`6,473,441)`			`13,261,244`		`782,067,804`
Accumulated depreciation
and impairment:
Buildings	`(`		`130,770,638)`	`(`		`6,374,874)`			`1,410`			`75,146`	`(`	`137,068,956)`
Machinery and equipment	`(`		`421,695,341)`	`(`		`16,135,802)`			`4,753,015`	`(`		`1,271,405)`	`(`	`434,349,533)`
Other equipment	`(`		`39,800,737)`	`(`		`3,515,305)`			`1,542,953`	`(`		`483,661)`	`(`	`42,256,750)`
	`(`		`592,266,716)`	`(`		`26,025,981)`			`6,297,378`	`(`		`1,679,920)`	`(`	`613,675,239)`
Unfinished construction
and equipment under
acceptance			`13,429,043`			`11,349,273`			`-`	`(`		`10,549,030)`		`14,229,286`
		`$`	`194,382,436`										`$`	`182,621,851`

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

~23~

B. As of September 30, 2021, December 31, 2020 and September 30, 2020, the prepayments for business facilities which have not yet entered the factory (shown as ‘other non-current assets’) amounted to $5,907,817, $242,041 and $230,783, respectively.
－
(9) Leasing arrangements lessee
A. The Group leases various assets including land, offices and business vehicles. Rental contracts are typically made for periods of 2 to 50 years. Lease terms are negotiated on an individual basis and contain a wide range of different terms and conditions. The lease agreements do not impose covenants, but leased assets may not be used as security for borrowing purposes.
B. Short-term leases with a lease term of 12 months or less comprise office, dormitory and equipment. Low-value assets comprise computer equipment.
C. The carrying amount of right-of-use assets and the depreciation charge are as follows:

September 30,2021 December 31, 2020 September 30,2020 Carrying amount Carrying amount Carryingamount `5,153,242` `$` `5,521,852` `$` `5,622,372` `$` `114,443` `22,904` `23,863` `2,734` `3,153` `3,394` `5,270,419` `$` `5,547,909` `$` `5,649,629` `$` 2021 2020 2021 2020 Depreciation Depreciation Depreciation Depreciation charge charge charge charge `119,226` `$` `119,873` `$` `357,804` `$` `364,402` `$` `9,716` `5,892` `30,176` `17,195` `322` `323` `989` `939` `129,264` `$` `126,088` `$` `388,969` `$` `382,536` `$` For the three-month periods For the nine-month periods ended September 30, ended September 30,	September 30,2021 December 31, 2020 September 30,2020 Carrying amount Carrying amount Carryingamount `5,153,242` `$` `5,521,852` `$` `5,622,372` `$` `114,443` `22,904` `23,863` `2,734` `3,153` `3,394` `5,270,419` `$` `5,547,909` `$` `5,649,629` `$` 2021 2020 2021 2020 Depreciation Depreciation Depreciation Depreciation charge charge charge charge `119,226` `$` `119,873` `$` `357,804` `$` `364,402` `$` `9,716` `5,892` `30,176` `17,195` `322` `323` `989` `939` `129,264` `$` `126,088` `$` `388,969` `$` `382,536` `$` For the three-month periods For the nine-month periods ended September 30, ended September 30,	September 30,2020	September 30,2020
		Carryingamount
2021 Depreciation charge `119,226` `$` `9,716` `322` `129,264` `$`	2021 Depreciation charge `357,804` `$` `30,176` `989` `388,969` `$`		2020
			Depreciation charge
			`364,402` `$` `17,195` `939` `382,536` `$`

D. For the three-month and nine-month periods ended September 30, 2021 and 2020, the additions to right-of-use assets were $0, $0, $135,603 and $0, respectively.

~24~

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

==> picture [481 x 530] intentionally omitted <==

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

For the three-month periods For the nine-month periods
ended September 30, ended September 30,
2021 2020 2021 2020
Items affecting profit or loss
Interest expense on $ 21,682 $ 23,283 $ 66,260 $ 71,910
lease liabilities
Expense on variable lease
payments 40,117 29,705 113,078 91,018
Expense on short-term
lease contracts 21,270 21,544 57,491 67,310
Expense on leases of
low-value assets 9,389 9,382 28,146 28,131
F. For the nine-month periods ended September 30, 2021 and 2020, the Group’s total cash outflow
for leases were $289,189 and $553,479, respectively.
Investment property
2021
At January 1 Additions At September 30
Cost:
Land $ 188,247 $ - $ 188,247
-
Buildings 439,228 439,228
-
627,475 627,475
Accumulated depreciation:
Buildings ( 128,031) ( 20,842) ( 148,873)
$ 499,444 ($ 20,842) $ 478,602
2020
At January 1 Additions At September 30
Cost:
Land $ 188,247 $ - $ 188,247
-
Buildings 439,228 439,228
-
627,475 627,475
Accumulated depreciation:
Buildings ( 100,243) ( 20,841) ( 121,084)
$ 527,232 ($ 20,841) $ 506,391
----- End of picture text -----

F. For the nine-month periods ended September 30, 2021 and 2020, the Group’s total cash outflow for leases were $289,189 and $553,479, respectively.

(10) Investment property

The fair value of the investment property held by the Group as at September 30, 2021, December 31, 2020 and September 30, 2020 was $2,049,330, $2,035,178 and $1,722,442, 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.

~25~

(11) Intangible assets

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

intangible assets are as follows:
At January1 Additions Cost: Patents and royalty `8,184,436` `$` `-` `$` Goodwill `17,117,339` `-` Others `5,368,254` `15,905` `(` `30,670,029` `15,905` `(` Accumulated amortization and impairment: Patents and royalty `8,156,715)` `(` `10,304)` `(` Others `5,006,330)` `(` `120,398)` `(` `13,163,045)` `(` `130,702)` `(` `17,506,984` `$` `114,797)` `($` At January1 Additions Cost: Patents and royalty `8,158,285` `$` `-` `$` Goodwill `17,117,339` `-` Others `5,309,115` `20,388` `(` `30,584,739` `20,388` `(` Accumulated amortization and impairment: Patents and royalty `8,151,571)` `(` `4,043)` `(` Others `4,855,524)` `(` `150,295)` `(` `13,007,095)` `(` `154,338)` `(` `17,577,644` `$` `133,950)` `($`	Disposals `-` `$` `-` `550,248)` `550,248)` `-` `550,248` `550,248` `-` `$` 2021 2020	Transfer, net exchange differences and others At September 30 `48,019` `$` `8,232,455` `$` `-` `17,117,339` `70,278` `4,904,189` `118,297` `30,253,983` `-` `8,167,019)` `(` `13,859` `4,562,621)` `(` `13,859` `12,729,640)` `(` `132,156` `$` `17,524,343` `$`
	Disposals `-` `$` `-` `21,369)` `21,369)` `-` `21,369` `21,369` `-` `$`	Transfer, net exchange differences and others At September 30 `11,150` `$` `8,169,435` `$` `-` `17,117,339` `49,104` `5,357,238` `60,254` `30,644,012` `-` `8,155,614)` `(` `14,880` `4,969,570)` `(` `14,880` `13,125,184)` `(` `75,134` `$` `17,518,828` `$`	At September 30

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

Operating costs Operating expenses	2021 2020 `14,647` `$` `17,269` `$` `31,298` `30,001` `45,945` `$` `47,270` `$` For the three-month periods ended September 30,	For the nine-month periods ended September 30,	For the nine-month periods ended September 30,
	2021 `14,647` `$` `31,298` `45,945` `$`	2021 `45,075` `$` `85,627` `130,702` `$`	2020
			`54,070` `$` `100,268` `154,338` `$`

~26~

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) Other payables

Other payables
	September 30,2021		December 31,2020		September 30,2020
Other personnel expenses	`$`	`14,332,310`	`$`	`8,460,510`	`$`	`7,182,929`
Payable on machinery and
equipment		`5,417,224`		`3,749,913`		`4,126,940`
Repairs and maintenance
expense payable		`2,890,738`		`2,808,420`		`2,471,792`
Utilities expense payable		`1,365,646`		`1,137,259`		`1,361,493`
Other payables		`11,351,076`		`9,521,439`		`8,883,794`
	`$`	`35,356,994`	`$`	`25,677,541`	`$`	`24,026,948`

(13) Bonds payable

Bonds payable Less: Discount on bonds payable Less: Current portion of bonds payable	September 30,2021 December 31,2020 September 30,2020 `-` `$` `6,331,424` `$` `8,830,000` `$` `-` `858,420)` `(` `1,270,834)` `(` `-` `98,711)` `(` `-` `-` `$` `5,374,293` `$` `7,559,166` `$`	September 30,2020

A. The issuance of unsecured overseas convertible bonds by the Company in 2019
The terms of the first unsecured overseas convertible bonds issued by the Company in 2019 are as follows
(a) The Company issued USD 300 million, 0% first unsecured overseas convertible bonds, as approved by the regulatory authority on January 15, 2020. The bonds mature 5 years from the issue date (January 22, 2020 ~ January 22, 2025) and will be redeemed in cash at face value at the maturity date.
(b) The bondholders have the right to ask for conversion of the bonds into common shares of the Company during the period from the date after three months of the bonds issue to 30 days before the maturity date, except for the stop transfer period as specified in the terms of the bonds or the laws/regulations. The rights and obligations of the new shares converted from the bonds are the same as the issued and outstanding common shares.
(c) The conversion price of the bonds is adjusted based on the pricing model in the terms of the bonds. As of September 30, 2021, the conversion price was $10.38 (in dollars) (using the exchange rate 1 USD: 29.913 NTD).

~27~

(d) The bondholders have the right to require the Company to redeem bonds at the price of the bonds’ face value in whole or partially on the date of three years after the bond issuance.
(e) Under the terms of the bonds, all bonds repurchased (including from secondary market), early redeemed and matured by the Company, or converted and sold back by the bondholder will be cancelled and not to be reissued.
(f) As of September 30, 2021, all unsecured overseas convertible bonds issued by the Company had been converted. All convertible bonds were calculated at the conversion price at the time of conversion. Refer to Note 6(18) for relevant information.
B. Regarding the issuance of convertible bonds, the non-equity conversion options, redeem options and put options were separated from their host contracts and were recognized in ‘financial assets or liabilities at fair value through profit or loss’ in net amount in accordance with IFRS 9 because the economic characteristics and risks of the embedded derivatives were not closely related to those of the host contracts.
C. The issuance of domestic convertible bonds by the Group’s subsidiary GIO 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. The Company repurchased all the outstanding domestic convertible bonds of GIO Company in the amount of $104,455 in the third quarter of 2021 and converted all those convertible bonds into ordinary shares of GIO Company amounting to 9,901 thousand shares.

~28~

- (14) Long term borrowings

==> picture [483 x 187] intentionally omitted <==

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

Type of loans Period September 30, 2021 December 31, 2020 September 30, 2020
Syndicated bank loans 2016/12/6 $ 43,750,000 $ 39,750,000 $ 33,500,000
~2024/4/15
Secured borrowings 2017/7/28
~2024/9/22 105,000 54,500 71,000
Less:
Administrative expenses
charged by syndicated
banks ( 91,431) ( 151,503) ( 169,557)
Current portion(includes
administrative expenses) ( 4,404,190) ( 19,268,495) ( 10,548,270)
$ 39,359,379 $ 20,384,502 $ 22,853,173
1.35%~1.79% 1.45%~2.07% 1.45%~2.07%
----- End of picture text -----

Range of interest rates

A. Please refer to Note 8 for the information on assets pledged as collateral for long-term borrowings.
B. The syndicated 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, 2020 are in compliance with the covenants on the syndicated loan agreement.
C. For repayment of borrowings from financial institutions and financing mid-term working capital fund, the Board of Directors approved the signing of a syndicated loan with financial institution in the amount of $37.5 billion on May 5, 2020. As of September 30, 2021, the loan has yet to be drawn down.

(15) Pensions

A. Defined benefit pension plan
(a) The Company and its domestic subsidiaries have a defined benefit pension plan in accordance with the Labor Standards Law, covering all regular employees’ service years prior to the enforcement of the Labor Pension Act on July 1, 2005 and service years thereafter of employees who choose to continue to be subject to the pension mechanism under the Law.
(b) In June 2021, the Science Park, Ministry of Science and Technology approved the Company to stop contributing to the retirement fund temporarily.
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.

~29~

  - (b) The Company’s foreign subsidiaries have provided the pension in accordance with statutory laws and regulations

C. The pension costs under the defined contribution pension plans of the Group for the three-month and nine-month periods ended September 30, 2021 and 2020 were $460,467, $425,506, $1,386,248 and $1,229,719, respectively.
(16) Share-based payment
A. Details of the share-based payment arrangements of the Group are provided in the 2020 consolidated financial statements.
B. Details of the share-based payment arrangements are as follows:
- －
- (a) Employee stock options GIO Company

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		Weighted-average exercise price (in dollars) 2021	Quantity Weighted-average (in thousand exercise price units) (in dollars) `6,232` `9.6` `$` `-` `-` `6,232` `9.6` `3,739` 2020
	Quantity (in thousand units)
	`6,122` `1,000)` `5,122` `5,122`	`9.4` `$` `9.4` `9.7`

`－` (b) Employee stock options InnoCare Company

Employee stock options`－`InnoCare Company
Quantity Weighted-average (in thousand exercise price units) (in dollars) Options outstanding at the beginning of the period `7,500` `22.5` `$` Options granted `-` `-` Options exercised `3,985)` `(` `14.5` Options expired `101)` `(` `14.5` Options outstanding at the end of the period `3,414` `14.5` Options exercisable at the end of the period `-` 2021	2021
	Quantity (in thousand units) `-` `7,500` `-` `-` `7,500` `-`	Weighted-average exercise price (in dollars)
		`-` `$` `22.5` `-` `-` `22.5`

~30~

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

==> picture [459 x 259] intentionally omitted <==

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

September 30, 2021
Quantity Exercise price
Issue date approved Expiry date (in thousand units) (in dollars)
2017.10.1 2022.9.30 5,122 $ 7.7
2020.7.7 2026.7.6 3,414 14.5
December 31, 2020
Quantity Exercise price
Issue date approved Expiry date (in thousand units) (in dollars)
2017.10.1 2022.9.30 6,122 $ 9.4
2020.7.7 2026.7.6 7,500 22.5
September 30, 2020
Quantity Exercise price
Issue date approved Expiry date (in thousand units) (in dollars)
2017.10.1 2022.9.30 6,232 $ 9.6
2020.7.7 2026.7.6 7,500 22.5
----- End of picture text -----

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

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

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

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

F. For the three-month and nine-month periods ended September 30, 2021 and 2020, the Group recognized expenses on share-based payment transaction (equity settlement) were $2,564, $388,435, $17,031 and $388,475, respectively.

~31~

(17) Provisions-current

Provisions-current
	Warranty	Litigation and others			Total
At January 1, 2021	`3,056,598` `$`	`$`	`3,096,385`	`$`	`6,152,983`
Additions during the period	`1,175,287`		`983,970`		`2,159,257`
Used (unused amounts reversed)
during the period	`884,309)` `(`	`(`	`63,660)`	`(`	`947,969)`
At September 30, 2021	`3,347,576` `$`	`$`	`4,016,695`	`$`	`7,364,271`

A. Warranty

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

B. Litigation and others

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

(18) Share capital

A. As of September 30, 2021, the Company’s authorized and outstanding capital were $120,000,000 and $105,014,079, with a par value of $10 (in dollars) per share, respectively. All proceeds from shares issued have been collected.

Movements in the number of the Company’s ordinary shares outstanding (including certificate

of entitlement to new shares from convertible bonds) are as follows:

At January 1 Stocks converted from bonds Treasury stock transferred to employees At September 30	2021 Number of ordinary shares (in thousand units) `9,940,433` `619,187` `-` `10,559,620`	2020
		Number of ordinary shares (in thousand units)
		`9,631,072` `-` `80,000`
		`9,711,072`

B. The Company’s bonds totalling USD 218,800 thousand (face value) had been converted into $6,191,869 of ordinary shares (619,187 thousand shares) with a par value of $10 (in dollars) per share during the nine-month period ended September 30, 2021, which resulted in ‘capital surplus, additional paid-in capital arising from bond conversion’ of $4,544,732. As of September 30, 2021, the registration of $582,122 (58,212 thousand shares) has not yet been completed and therefore the shares were shown as ‘certificate of entitlement to new shares from convertible bonds’.

~32~

C. Treasury shares

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

shares are as follows:
	2020
	Quantity
	(in thousand units)	Book value
At January 1	`80,000`	`618,580`
Treasury stock transferred to employees	`80,000)` `(`	`618,580)` `(`
At September 30	`-`	`-`

(b) For the nine-month period ended September 30, 2020, treasury stocks transferred to employees of the Company and subsidiaries were 80,000 thousand shares, and cost of employees’ compensation and transferred amount were $381,600 and $279,162, respectively. The aforementioned amount is higher than the carrying amount of treasury stock. Thus, the differences were recognized as share capital generated from treasury stock transactions.

(19) Capital surplus

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

~33~

2021

											Difference	Difference	Difference
												between
											proceeds on
								Share of			disposal of
								profit (loss)				eauity
								of associates			interest in		a
						Changes in		accounted			subsidiary
				Treasury		ownership		for	under			and its
		Share		share		interests in		equity				carrying
		premium	transactions			subsidiaries		method				amount			Total
At January 1	`$`	`96,484,845`	`$`	`3,183,414`		`$`	`62`	`$`	`39,675`		`$`		`-`	`$`	`99,707,996`
Cash dividends from capital
surplus	`(`	`1,047,090)`			`-`		`-`			`-`			`-`	`(`	`1,047,090)`
Conversion of convertible
bonds		`4,544,732`			`-`		`-`			`-`			`-`		`4,544,732`
Recognition of change in
ownership intersets in
subsidiaries		`-`			`-`		`11,411`			`-`			`-`		`11,411`
Recognition of change in
equity of associates in
proportion to the Group's
ownership		`-`			`-`		`-`		`1,602`				`-`		`1,602`
Difference between proceeds
on disposal of equity
interest in a subsidiary
and its carrying amount		`-`			`-`		`-`			`-`		`59,008`			`59,008`
Establishment of Subsidiary		`-`			`-`	`(`	`5,300)`			`-`			`-`	`(`	`5,300)`
Others		`5,174`			`-`		`-`			`-`			`-`		`5,174`
At September 30	`$`	`99,987,661`	`$`	`3,183,414`		`$`	`6,173`	`$`	`41,277`		`$`	`59,008`		`$`	`103,277,533`
							2020
										Share of
										profit (loss)
							Changes			of associates
					Treasury		in ownership			accounted
		Share			share		interests in			for	under
		premium		transactions			subsidiaries		equitymethod						Total
At January 1	`$`	`97,202,453`		`$`	`3,141,232`		`$`	`24`	`$`		`18,670`		`$`	`100,362,379`
Cash dividends from capital
surplus	`(`	`963,107)`				`-`		`-`				`-`	`(`		`963,107)`
Recognition of changes in
ownership interests in
subsidiaries			`-`			`-`		`38`				`-`			`38`
Recognition of change in
equity of associates in
proportion to the Group's
ownership			`-`			`-`		`-`			`21,246`				`21,246`
Treasury stock transferred to
employees			`-`		`42,182`			`-`				`-`			`42,182`
Others		`664`				`-`		`-`				`-`			`664`
At September 30	`$`	`96,240,010`		`$`	`3,183,414`		`$`	`62`	`$`		`39,916`		`$`	`99,463,402`

~34~

(20) Retained earnings

A. Under the Company’s Articles of Incorporation, the current year’s earnings, if any, shall first be offset against prior years’ operating losses, then set aside 10% of the remaining amount as legal reserve (until the legal reserve equals the paid-in capital). Preferred dividend shall be distributed after setting aside or reversing a special reserve according to related regulations. The appropriation of the remaining amount along with the unappropriated earnings from previous years shall be proposed by the Board of Directors and resolved by the shareholders. The net decrease in other equity accumulated in prior periods should be appropriated from prior period's undistributed earnings to a special reserve of the same amount, and if there is a deficiency, the same amount should be appropriated from the post-tax profit for the period plus the amount of items other than post-tax profit for the period, and the amount was included in the unappropriated earnings for the period.
Depending on the Company's future long-term financial planning, investment environment, industry competition, capital expenditure budget, capital requirements and protection of shareholders' rights, dividends should account for at less 20% of the distributable earnings for the year. However, as the distributable earnings is lower than 2% of the paid-in capital, the Company may choose not to distribute dividends and transferred dividends to the retained earnings. Earnings shall be preferably distributed using cash dividends and may also be distributed using stock dividends. The ratio for cash dividends shall not be less than 50% of the total amount of dividends distributed. The aforementioned dividend distribution rate may be adjusted based on financial, business and operational factors.
B. Except for covering accumulated deficit or issuing new stocks or cash to shareholders in proportion to their share ownership, the legal reserve shall not be used for any other purpose. The use of legal reserve for the issuance of stocks or cash to shareholders in proportion to their share ownership is permitted, provided that the balance of the reserve exceeds 25% of the Company’s paid-in capital.
C. The details of the 2020 net income which was approved by the stockholders during their meeting in July 2021 and the appropriation of 2019 deficit compensation which was approved at the stockholders’ meeting in June 2020 are as follows:

share ownership is permitted, provided that the balance of the reserve exceeds 25% of the Company’s paid-in capital. The details of the 2020 net income which was approved by the stockholders during their meeting n July 2021 and the appropriation of 2019 deficit compensation which was approved at the stockholders’ meeting in June 2020 are as follows:	permitted, provided that the balance of the reserve exceeds 25% of the capital. 20 net income which was approved by the stockholders during their meeting e appropriation of 2019 deficit compensation which was approved at the ng in June 2020 are as follows:	permitted, provided that the balance of the reserve exceeds 25% of the capital. 20 net income which was approved by the stockholders during their meeting e appropriation of 2019 deficit compensation which was approved at the ng in June 2020 are as follows:	permitted, provided that the balance of the reserve exceeds 25% of the capital. 20 net income which was approved by the stockholders during their meeting e appropriation of 2019 deficit compensation which was approved at the ng in June 2020 are as follows:
Dividends per Dividends per Amount share(in dollars) Amount share(in dollars) Legal reserve `191,838` `$` `-` `$` (Reversal of) provision for special reserve `1,265,766)` `(` `2,661,974` Cash dividends `3,141,271` `0.3` `$` `-` `-` `$` `2,067,343` `$` `2,661,974` `$` Year ended December 31, 2020 2019	Year ended December 31,
		2019
		Amount `-` `$` `2,661,974` `-` `2,661,974` `$`	Dividends per share(in dollars)
			`-` `$`

~35~

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

(21) Other equity items

(21)	In July 2021, the shareholders at their meeting resolved to distribute cash dividends amounting to $1,047,000 at $0.1 (in dollars) per share from capital surplus, and the stockholders’ meeting in June 2020 approved a resolution to distribute cash dividends amounting to $963,107 at $0.1 (in dollars) per share from capital surplus. Other equity items	In July 2021, the shareholders at their meeting resolved to distribute cash dividends amounting to $1,047,000 at $0.1 (in dollars) per share from capital surplus, and the stockholders’ meeting in June 2020 approved a resolution to distribute cash dividends amounting to $963,107 at $0.1 (in dollars) per share from capital surplus. Other equity items	In July 2021, the shareholders at their meeting resolved to distribute cash dividends amounting to $1,047,000 at $0.1 (in dollars) per share from capital surplus, and the stockholders’ meeting in June 2020 approved a resolution to distribute cash dividends amounting to $963,107 at $0.1 (in dollars) per share from capital surplus. Other equity items
(22)	Operating income Financial assets at fair Currency value through other translation comprehensive income Total At January 1 `8,879,169)` `($` `2,819,498` `$` `6,059,671)` `($` Revaluation - gross `-` `4,317,586` `4,317,586` Disposal of financial assets measured at fair value through other comprehensive income `-` `289,263)` `(` `289,263)` `(` Currency translation differences `1,526,848)` `(` `-` `1,526,848)` `(` Share of other comprehensive loss of associates `27,220)` `(` `-` `27,220)` `(` Effect of income tax `-` `796,071)` `(` `796,071)` `(` At September 30 `10,433,237)` `($` `6,051,750` `$` `4,381,487)` `($` 2021 Financial assets at fair Currency value through other translation comprehensive income Total At January 1 `9,497,686)` `($` `2,172,249` `$` `7,325,437)` `($` Revaluation - gross `-` `249,978` `249,978` Disposal of financial assets measured at fair value through other comprehensive income `-` `192,328)` `(` `192,328)` `(` Currency translation differences `592,170)` `(` `-` `592,170)` `(` Share of other comprehensive loss of associates `41,798)` `(` `-` `41,798)` `(` Effect of tax income `-` `8,377` `8,377` At September 30 `10,131,654)` `($` `2,238,276` `$` `7,893,378)` `($` 2020 2021 2020 2021 2020 TFT-LCD products `93,085,886` `$` `74,568,417` `$` `270,160,114` `$` `191,843,194` `$` For the three-month periods For the nine-month periods ended September 30, ended September 30,
		2021 `270,160,114` `$`	2020
			`191,843,194` `$`

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

~36~

(23) Interest income

Interest income
			For the three-month periods				For the nine-month periods
			ended September 30,				ended September 30,
			2021		2020		2021		2020
Interest income from		`$`	`40,137`	`$`	`23,449`	`$`	`114,872`	`$`	`184,421`
bank deposits
Interest income from
financial assets
at amortized cost			`243,192`		`29,039`		`461,967`		`140,089`
		`$`	`283,329`	`$`	`52,488`	`$`	`576,839`	`$`	`324,510`
Other income
			For the three-month periods				For the nine-month periods
			ended September 30,				ended September 30,
			2021		2020		2021		2020
Service revenue		`$`	`422,924`	`$`	`101,270`	`$`	`615,919`	`$`	`353,757`
Grant revenue			`77,682`		`114,261`		`207,315`		`332,229`
Dividend revenue			`21,764`		`96,222`		`199,529`		`199,301`
Rental revenue			`34,329`		`36,585`		`124,693`		`127,216`
Other income			`322,762`		`467,830`		`739,421`		`762,427`
		`$`	`879,461`	`$`	`816,168`	`$`	`1,886,877`	`$`	`1,774,930`
Other gains and losses
			For the three-month periods				For the nine-month periods
			ended September 30,				ended September 30,
			2021		2020		2021		2020
Net gain (loss) on		`$`	`18,205`	`$`	`944,664`	`($`	`2,398,949)`	`$`	`1,229,001`
financial assets and
liabilities at fair
value through profit
or loss
Net currency exchange
gain (loss)			`111,858`	`(`	`1,287,442)`	`(`	`2,120)`	`(`	`1,224,929)`
Loss on disposals of
investments	`(`		`8,148)`		`-`	`(`	`109,538)`		`-`
Loss on disposal of
property, plant and
equipment	`(`		`80,021)`	`(`	`91,783)`	`(`	`152,052)`	`(`	`99,290)`
Other (losses) gains	`(`		`14,063)`		`7,038`	`(`	`874,623)`	`(`	`768,814)`
		`$`	`27,831`	`($`	`427,523)`	`($`	`3,537,282)`	`($`	`864,032)`

(24) Other income

(25) Other gains and losses

~37~

(26) Finance costs

Finance costs
Expenses by nature Interest expense: Bank borrowings Convertible bonds Others Employee benefit expense: Salaries and other short-term employee benefits Employee stock options Post-employment benefits Depreciation Amortization	2021 2020 `206,595` `$` `147,231` `$` `1,793` `69,137` `21,954` `28,299` `230,342` `$` `244,667` `$` For the three-month periods ended September 30, 2021 2020 `13,252,590` `$` `8,719,547` `$` `2,564` `388,435` `460,467` `425,506` `9,145,032` `8,898,611` `45,945` `47,270` `22,906,598` `$` `18,479,369` `$` For the three-month periods ended September 30,	2021 2020 `634,512` `$` `488,568` `$` `46,586` `192,053` `66,812` `80,860` `747,910` `$` `761,481` `$` For the nine-month periods ended September 30, For the nine-month periods ended September30,
	2021 `13,252,590` `$` `2,564` `460,467` `9,145,032` `45,945` `22,906,598` `$`	2021 `37,231,642` `$` `17,031` `1,386,248` `27,244,639` `130,702` `66,010,262` `$`	2020
			`26,469,641` `$` `388,475` `1,229,719` `26,429,358` `154,338`
			`54,671,531` `$`

(27) Expenses by nature

(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 and nine-month periods ended September 30, 2021 and 2020, employees’ compensation was accrued at $1,408,154, $0, $3,933,573 and $0, respectively; while the Company did not accrue directors’ remuneration for the nine-month periods ended September 30, 2021 and 2020. The aforementioned amounts were recognized in expenses.
The employees’ compensation and directors’ remuneration for the year ended December 31, 2020, were $139,349 and $2,144, respectively, and will be distributed in the form of cash as resolved by the Board of Directors during their meeting on February 4, 2021. The resolved amounts were in agreement with the amount of recorded expense for the year ended December 31, 2020. Information about employees’ compensation and directors’ remuneration of the Company as resolved by the Board of Directors will be posted in the “Market Observation Post System” at the website of the Taiwan Stock Exchange.

~38~

(29) Income tax

A. Income tax expense

Components of income tax expense:

			For the three-month	For the three-month	For the three-month	periods				For the nine-month periods	For the nine-month periods	For the nine-month periods	For the nine-month periods
			ended September 30,							ended September			30,
			2021			2020				2021		2020
Current tax:
Current tax on profit		`$`	`418,394`	`($`		`35,255)`			`$`	`1,102,393`	`$`		`544,771`
for the period
Prior year income tax
under (over) estimation			`16,776`			`3,938`		`(`		`65,982)`			`51,131`
Total current tax			`435,170`	`(`		`31,317)`				`1,036,411`			`595,902`
Deferred tax:
Origination and reversal
of temporary
differences	`(`		`125,289)`			`357,959`		`(`		`654,956)`			`417,966`
Loss carryforward			`1,064,102`	`(`		`266,219)`				`3,929,993` `(`			`144,548)`
Income tax expense		`$`	`1,373,983`		`$`	`60,423`			`$`	`4,311,448`	`$`		`869,320`
B. The Company’s income tax		returns through			2018	have been		assessed and approved				by the Tax
Authority.
Earnings (loss) per share
			For the			three-monthperiod ended September 30,2021
								Weighted average
								number of ordinary				Earnings
					Amount			shares outstanding				per share
					after tax		(shares in thousands)					(in dollars)
Basic earnings per share
Profit attributable to ordinary	shareholders
of the parent				`$`	`18,602,129`		`$`			`10,530,495`		`$`	`1.77`
Diluted earnings per share
Profit attributable to ordinary	shareholders
of the parent					`18,602,129`					`10,530,495`
Assumed conversion of all dilutive
potential ordinary shares:
- Convertible bonds						`1,506`				`28,492`
- Employees’ compensation						`-`				`231,387`
Profit attributable to ordinary	shareholders
of the parent plus assumed conversion of
all dilutive potential ordinary shares				`$`	`18,603,635`		`$`			`10,790,374`		`$`	`1.72`

(30) Earnings (loss) per share

~39~

For the three-month period ended Setpember 30, 2020

Basic earnings per share Profit attributable to ordinary shareholders of the parent Diluted earnings per share Profit attributable to ordinary shareholders of the parent Assumed conversion of all dilutive potential ordinary shares: -Convertible bonds Profit attributable to ordinary shareholders of the parent plus assumed conversion of all dilutive potential ordinary shares Basic earnings per share Profit attributable to ordinary shareholders of the parent Diluted earnings per share Profit attributable to ordinary shareholders of the parent Assumed conversion of all dilutive potential ordinary shares: - Convertible bonds - Employees’ compensation Profit attributable to ordinary shareholders of the parent plus assumed conversion of all dilutive potential ordinary shares	Weighted average number of ordinary Earnings Amount shares outstanding per share after tax (shares in thousands) (in dollars) `1,542,175` `$` `9,659,731` `$` `0.16` `$` `1,542,175` `9,659,731` `68,712` `847,394` `1,610,887` `$` `10,507,125` `$` `0.15` `$` For the nine-monthperiod ended September 30,2021	Weighted average number of ordinary Earnings Amount shares outstanding per share after tax (shares in thousands) (in dollars) `1,542,175` `$` `9,659,731` `$` `0.16` `$` `1,542,175` `9,659,731` `68,712` `847,394` `1,610,887` `$` `10,507,125` `$` `0.15` `$` For the nine-monthperiod ended September 30,2021	Weighted average number of ordinary Earnings Amount shares outstanding per share after tax (shares in thousands) (in dollars) `1,542,175` `$` `9,659,731` `$` `0.16` `$` `1,542,175` `9,659,731` `68,712` `847,394` `1,610,887` `$` `10,507,125` `$` `0.15` `$` For the nine-monthperiod ended September 30,2021
	Amount after tax `51,592,448` `$` `51,592,448` `45,441` `-` `51,637,889` `$`	Weighted average number of ordinary shares outstanding (shares in thousands) `10,340,235` `$` `10,340,235` `219,385` `232,438` `10,792,058`	Earnings per share (in dollars)
			`4.99` `$` `4.78` `$`

~40~

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

For the nine-month period ended September 30, 2020
Weighted average
number of ordinary Loss
Amount shares outstanding per share
after tax (shares in thousands) (in dollars)
Basic loss per share
Loss attributable to ordinary shareholders
of the parent ($ 8,507,098) $ 9,640,695 ($ 0.88)
----- End of picture text -----

For the nine-month period ended September 30, 2020, the Group’s convertible bonds were not included in the calculation of diluted earnings (loss) per share due to its anti-dilutive effect.

(31) Supplemental cash flow information

Investing activities with partial cash payments:

	For the nine-month periods ended September 30,	For the nine-month periods ended September 30,	For the nine-month periods ended September 30,	For the nine-month periods ended September 30,
		2021		2020
Purchase of property, plant and equipment	`$`	`19,205,313`	`$`	`13,409,165`
Add: Opening balance of payable on
equipment		`3,749,913`		`6,463,079`
Less: Ending balance of payable on
equipment	`(`	`5,417,224)`	`(`	`4,126,940)`
Cash paid during the period	`$`	`17,538,002`	`$`	`15,745,304`

(32) Changes in liabilities from financing activities

For the nine-month periods ended September 30, 2021 and 2020, liabilities from financing activities include bonds payable, long-term borrowings and lease liabilities. Changes in those items result from cash flow from financing activities, conversion, discount and amortization of bonds payable as well as changes in exchange rate. The summarized significant changes are as follows and other information is provided in the consolidated statements of cash flows.

		2021			2020
		Bondspayable			Bondspayable
At January 1	`$`	`5,473,004`		`$`	`97,018`
Conversion of convertible bonds	`(`	`5,481,350)`			`-`
Amortization of discounts on convertible bonds		`46,586`			`192,053`
Impact of changes in foreign exchange rate	`(`	`38,240)`	`(`		`208,476)`
Changes in cash flow from financing activities		`-`			`8,900,934`
Convertible bonds derivative instruments on the
issue date		`-`	`(`		`1,422,363)`
At September 30	`$`	`-`		`$`	`7,559,166`

~41~

7. RELATED PARTY TRANSACTIONS

(1) Names and relationship of related parties

Names of related parties

Hon Hai Precision Industry Co., Ltd. and its subsidiaries CHENG MEI MATERIALS TECHNOLOGY CORPORATION and its subsidiaries (Note) FI Medical Device Manufacturing Co., Ltd.

Relationship with the Group

Other related party Other related party

Associate

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

(2) Significant related party transactions

A. Operating revenue

Operating revenue
Sales of goods: Other related parties Associates	2021 2020 `1,704,652` `$` `2,306,765` `$` `189` `2,659` `1,704,841` `$` `2,309,424` `$` For the three-month periods ended September 30,	2021 2020 `4,926,907` `$` `5,931,325` `$` `2,925` `19,422` `4,929,832` `$` `5,950,747` `$` For the nine-month periods ended September 30,
	2021 `1,704,652` `$` `189` `1,704,841` `$`
			`5,931,325` `$` `19,422`
			`5,950,747` `$`

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

B. Purchases of goods

Purchases of goods
Purchases of goods: Other related parties Associates	2021 2020 `1,323,665` `$` `1,119,043` `$` `175,297` `278,447` `1,498,962` `$` `1,397,490` `$` For the three-month periods ended September 30,	2021 2020 `3,446,277` `$` `5,245,071` `$` `762,721` `824,920` `4,208,998` `$` `6,069,991` `$` For the nine-month periods ended September 30,
	2021 `1,323,665` `$` `175,297` `1,498,962` `$`
			`5,245,071` `$` `824,920`
			`6,069,991` `$`

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

C. Receivables from related parties

Accounts receivable: Other related parties Associates	September 30,2021 `1,809,291` `$` `37,871` `1,847,162` `$`	December 31,2020 `2,179,257` `$` `44,900` `2,224,157` `$`	September 30,2020
			`2,701,431` `$` `43,376` `2,744,807` `$`

~42~

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

D. Payables to related parties

	September 30,2021	September 30,2021	December 31, 2020	December 31, 2020	September 30, 2020	September 30, 2020
Accounts payable:
Other related parties	`$`	`1,984,552`	`$`	`1,606,419`	`$`	`2,082,141`
Associates		`97,434`		`114,512`		`130,778`
	`$`	`2,081,986`	`$`	`1,720,931`	`$`	`2,212,919`

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.

E. Property transactions

Purchase of property

(a) Acquisition of property, plant and equipment:

		For the three-month	periods			For the nine-month	periods
		ended September 30,				ended September 30,
		2021	2020			2021	2020
Other related parties	`$`	`3,015` `$`	`11,833`		`$`	`13,371` `$`	`18,163`
Associates		`258`		`-`		`520`	`-`
	`$`	`3,273` `$`	`11,833`		`$`	`13,891` `$`	`18,163`
Period-end balances arising from purchases of			property	(shown as ‘Other payables’):
	September 30, 2021		December		31, 2020 September30,2020
Other related parties	`$`	`3,170`	`$`			`51,047` `$`	`3,641`

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

(3) Key management compensation

Salaries and other short-term employee benefits (Note) Shared-based payments Post-employment benefits	2021 2020 `14,235` `$` `8,829)` `($` `134` `20,964` `162` `244` `14,531` `$` `12,379` `$` For the three-month periods ended September 30,	For the nine-month periods ended September 30,	For the nine-month periods ended September 30,
		2021 `50,315` `$` `1,239` `669` `52,223` `$`	2020
			`10,814` `$` `20,964` `576` `32,354` `$`

Note: For the three-month period ended September 30, 2020, it included estimated effects.

~43~

8. PLEDGED ASSETS

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

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Book value
Pledged asset September 30, 2021 December 31, 2020 September 30, 2020 Purpose
Property, plant and $ 66,501,867 $ 93,284,863 $ 55,295,587 Long-term loans
equipment
Other assets - others
- Demand deposits 650 950 1,250 Long-term loans
- Time deposits 32,680 4,430 4,430 Tariff and credit
card guarantee
- Refundable Litigation guarantee
deposits 767,245 784,601 801,681
$ 67,302,442 $ 94,074,844 $ 56,102,948
----- End of picture text -----

9. SIGNIFICANT CONTINGENT LIABILITIES AND UNRECOGNIZED CONTRACT

COMMITMENTS

－
(1) Contingencies Significant Litigations
A. The Company’s subsidiary in U.S. received a civil complaint from the government of Puerto Rico in September 2018, claiming that the company, together with other defendants of Taiwan, Japan and South Korea TFT - LCD companies, had unjustified enrichment from the TFT-LCD pricing collaborations in 2006 and requested monetary compensation. The U.S. subsidiary of the company has appointed a lawyer to handle the lawsuit.
B. Eidos Displays, LLC and Eidos III, LLC (“Eidos”) filed a lawsuit against the Company and American subsidiary with the United States District Court for the Eastern District of Texas on April 25, 2011, alleging infringement of its patent. In December 2013, the magistrate judge granted summary judgment that the Eidos patent is invalid. In January 2014, the presiding judge confirmed the summary judgment.
- In February 2014, Eidos appealed to the United States Court of Appeals for the Federal Circuit (CAFC). In March 2015, the CAFC reversed the district court’s judgment and remanded the case back to the district court for further proceedings. In June 2017, the jury determined that some products of the Company and American subsidiary directly infringed the patent and awarded damages for Eidos. On March 5, 2018, the district court entered judgment. In January 2020, the Company reached an agreement on the main settlement terms with Eidos during the third mediation. In April 2020, the court granted the judgment that the case shall be closed by mutually performing the settlement terms and the lawsuits have no effect on the Company’s financial position and operations.
C. On September 1, 2020, Granville Technology Group Limited, VMT Limited and OT Computers Limited (all under liquidation) jointly filed a civil complaint against the Company with the Senior Courts of England and Wales, claiming that the Company, together with other defendants of Taiwan and South Korea TFT - LCD companies, shall be liable for damages incurred from the

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TFT-LCD pricing collaborations in 2006. The Company has appointed a lawyer to handle the lawsuit.

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

September 30, 2021 December 31, 2020 September 30, 2020 Property, plant and equipment $ 19,835,960 $ 12,627,041 $ 13,001,836

B. Outstanding letters of credit

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

September 30, 2021 December 31, 2020 September 30, 2020 Outstanding letters of credit $ 37,426 $ 63,015 $ 129,435

C. The Company entered into a conditional ‘Share Issuance and Asset Purchase Agreement’ with TPV Technology. TPV Technology plans to issue shares to the shareholders of TPV Technology Limited, including the Company, in order to obtain 49% equity interest of TPV Technology Limited. However, the transaction will take effect when all preconditions are met.
D. On August 3, 2021, the Board of Directors of the Company resolved to enter into a long-term strategic partnership supply contract with SAKAI SIO Display Technology Co., LTD. The total price of the contract amounted to RMB 4 billion and will be paid periodically. The supply term is from January 2022 to December 31, 2033, during this period, the Company and the subsidiary, Foshan Innolux Optoelectronics Ltd., obtained a multi-year commitment from SAKAI SIO Display Technology Co., LTD for supplying certain products in specified quantities each year.

10. SIGNIFICANT DISASTER LOSS

None.

11. SIGNIFICANT EVENTS AFTER THE BALANCE SHEET DATE

None.

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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, 2020.

(2) Financial instruments

A. Financial instruments by category
For information of the Group’s financial assets (financial assets at fair value through profit or loss, financial assets at fair value through other comprehensive income, financial assets at amortized cost, cash and cash equivalents, accounts receivable (including related parties) and other receivables) and financial liabilities (financial liabilities at fair value through profit or loss, accounts payable (including related parties), other payables, lease liability, corporate bonds payable and long-term borrowings (including current portion)), please refer to Note 6 and consolidated balance sheets.
B. Financial 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, 2020.

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, 2020.
(a) Market risk

Foreign exchange risk

i. The Group operates internationally and is exposed to foreign exchange risk arising from the transactions of the Group used in various functional currency, primarily with respect to the USD and RMB. Foreign exchange risk arises from future commercial transactions, recognized assets and liabilities and net investments in foreign operations.
ii. The Group’s businesses involve some non-functional currency operations (the Company’s and certain subsidiaries’ functional currency: NTD; other certain subsidiaries’ functional currency: RMB and USD). Based on the simulations performed, the impact on pre-tax profit of a 1% exchange rate fluctuation would be an increase of $344,120 and $259,322 for the nine-month periods ended September 30, 2021 and 2020, respectively. The information on assets and liabilities denominated in foreign currencies whose values would be materially affected by the exchange rate fluctuations is as follows:

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December 31,2020	December 31,2020	December 31,2020
Foreign Currency Exchange Amount Rate Book Value (In Thousands) (Note) (NTD) `5,686,943` `$` `28.48` `161,964,137` `$` `314,777` `4.36` `1,372,428` `13,321` `3.67` `48,888` `1,732,338` `0.28` `485,055` `3,430` `35.02` `120,119` `2,852,662` `$` `28.48` `81,243,814` `$` `7,560,763` `0.28` `2,117,014` `351,054` `3.67` `1,288,368` `4,498,554` `$` `28.48` `128,118,818` `$` `33,061,001` `0.28` `9,257,080` `73,107` `3.67` `268,303` `8,703` `35.02` `304,779` September 30,2020
Foreign Currency Amount (In Thousands) `5,947,491` `$` `9,407,984` `628,436` `3,400` `2,764,359` `$` `563,124` `7,579,153` `4,902,412` `$` `33,215,674` `8,380`	Exchange Rate (Note) `29.10` `0.28` `3.75` `34.15` `29.10` `3.75` `0.28` `29.10` `0.28` `34.15`	Book Value (NTD)
		`173,071,988` `$` `2,634,236` `2,356,635` `116,110` `80,442,847` `$` `2,111,715` `2,122,163` `142,660,189` `$` `9,300,389` `286,177`

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

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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 and nine-month periods ended September 30, 2021 and 2020 amounted to $111,858, ($1,287,442), ($2,120) and ($1,224,929), respectively.
Price risk
i. The Group is exposed to equity securities price risk because of investments held by the Group and classified on the consolidated balance sheet as financial assets at fair value through profit or loss and financial assets at fair value through other comprehensive income. To manage its price risk arising from investments in equity securities, the Group diversifies its portfolio. Diversification of the portfolio is done by the Group in respect of the targets and stages.
ii. The Group’s investments in equity securities comprise domestic listed, unlisted stocks, open-end fund and financial products. The prices of equity securities would change due to the change of the future value of investee companies. If the prices of these equity securities had increased/decreased by 20% with all other variables held constant, pre-tax profit for the nine-month periods ended September 30, 2021 and 2020 would have increased/decreased by $3,343,585 and $768,853, respectively; other comprehensive gains and losses would have increased/decreased by $1,869,121 and $865,781, 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 nine-month periods ended September 30, 2021 and 2020, 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, pre-tax profit for the nine-month periods ended September 30, 2021 and 2020 would have decreased/increased by $82,228 and $62,946, 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 September 30, 2021, December 31, 2020 and September 30, 2020, without taking into account any collateral held or other credit enhancements, the maximum exposure to credit risk in respect of the amount that best represents the financial assets at amortized cost and accounts receivable held by the Group was its carrying amount.
ii. According to the Group’s credit policy, each local entity in the Group is responsible for managing and analyzing the credit risk for each of their new clients before standard payment and delivery terms and conditions are offered. Internal risk control assesses the

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credit quality of the customers, taking into account their financial position, past experience and other factors. Individual risk limits are set based on internal or external ratings in accordance with limits set by the managements. The utilization of credit limits is regularly monitored.

iii. The Group adopts the following assumption under IFRS 9 to assess whether there has been a significant increase in credit risk on that instrument since initial recognition: If the contract payments are past due over 30 days based on the terms, there has been a significant increase in credit risk on that instrument since initial recognition.
iv. The Group adopts the assumptions under IFRS 9, the default occurs when the contract payments are past due over 90 days.
v. The Group classifies customer’s accounts receivable in accordance with credit rating of customer, credit risk on trade and customer types. The Group applies the simplified approach using provision matrix to estimate expected credit loss.
vi. The following indicators are used to determine whether the credit impairment of debt instruments has occurred:
(i) It becomes probable that the issuer will enter bankruptcy or other financial reorganization due to their financial difficulties;
(ii) Default or delinquency in interest or principal repayments;
(iii) Adverse changes in national or regional economic conditions that are expected to cause a default.
vii. The Group adjusted forward looking information based on historical and timely information to assess the default possibility of accounts receivables. According to abovementioned consideration and information, the Group does not expect any significant default possibility of accounts receivable.
viii. Movements in relation to the Group applying the simplified approach to provide loss allowance for accounts receivable are as follows:

llowance for accounts receivable are as follows:
At September 30 (January 1) At September 30 (January 1)	2021
	Accounts receivable
	`209,419` `$` 2020
	Accounts receivable
	`209,418` `$`

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

The information below analyzes the Group’s non-derivative financial liabilities and netsettled or gross-settled derivative financial liabilities into relevant maturity groupings based on the remaining period at the balance sheet date to the contractual maturity date for non-

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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

September 30,2021 Lease liability (Note) Long-term borrowings (including current portion) December 31,2020 Lease liability (Note) Bonds payable Long-term borrowings (including current portion) September 30,2020 Lease liability (Note) Bonds payable Long-term borrowings (including current portion)	Less than 1year `720,500` `$` `4,413,333` Less than 1year `236,720` `$` `100,000` `19,301,000` Less than 1year `68,081` `$` `-` `10,566,000`	Between 1 and 3years `1,397,679` `$` `39,441,667` Between 1 and 3years `1,376,565` `$` `6,231,424` `8,203,500` Between 1 and 3years `1,375,757` `$` `8,830,000` `16,705,000`	Between 3 and 5years `1,051,741` `$` `-` Between 3 and 5years `1,136,525` `$` `-` `12,300,000` Between 3 and 5years `1,179,447` `$` `-` `6,300,000`	Over 5years `2,487,413` `$` `-` Over 5years `2,870,936` `$` `-` `-` Over 5years `2,998,777` `$` `-` `-`	Total
					`5,657,333` `$` `43,855,000` Total
					`5,620,746` `$` `6,331,424` `39,804,500` Total
					`5,622,062` `$` `8,830,000` `33,571,000`

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

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

(3) Fair value information

A. The different levels that the inputs to valuation techniques are used to measure fair value of financial and non-financial instruments have been defined as follows:
Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can access at the measurement date. A market is regarded as active where a market in which transactions for the asset or liability take place with sufficient frequency and volume to provide pricing information on an ongoing basis. The fair value of the Group’s investment in listed stocks and beneficiary certificates is included in Level 1.
Level 2: Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. The fair value of the Group’s investment in derivative instruments and financial products is included in Level 2.

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Level 3: Unobservable inputs for the asset or liability. The fair value of the Group’s investment in equity investment without active market and bonds payable is included in Level 3.
B. Fair value information of investment property at cost is provided in Note 6(10).
C. Financial instruments not measured at fair value
Except for those listed in the table below, the carrying amounts of cash and cash equivalents, accounts receivable (including related parties), other receivables, financial assets at amortized cost, accounts payable (including related parties), other payables, lease liability and long-term borrowings (including current portion) are approximate to their fair values.

	September	30,2021
Book value `7,763,196` `$`		Fair value
	Level 1 `-` `$` December	Level 2 `7,916,950` `$` 31,2020	Level 3
			`-` `$`
Book value `5,473,004` `$`		Fair value
	Level 1 `-` `$` September	Level 2 `5,869,958` `$` 30,2020	Level 3
			`-` `$`
Book value `7,559,166` `$`		Fair value
	Level 1 `-` `$`	Level 2 `8,145,219` `$`	Level 3
			`-` `$`

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

September 30,2021 Assets Recurring fair value measurements Financial assets at fair value through profit or loss Equity securities Forward exchange swap contracts Forward exchange contracts Beneficiary certificates Structured products Financial instruments Financial assets at fair value through other comprehensive income Equity securities	Level 1 `1,045,023` `$` `-` `-` `12,606,409` `-` `-` `9,310,387` `22,961,819` `$`	Level 2 `-` `$` `11,118` `6,768` `-` `3,207,476` `19,117` `-` `3,244,479` `$`	Level 3 `3,047,375` `$` `-` `-` `-` `-` `-` `35,220` `3,082,595` `$`	Total
				`4,092,398` `$` `11,118` `6,768` `12,606,409` `3,207,476` `19,117` `9,345,607`
				`29,288,893` `$`

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`$`	`$`	Level 2	`$`	`$` `$`
		`345,692` `56,207` `401,899` Level 2 `-` `706,299` `-` `706,299` `13,574` `-` `13,574` Level 2 `-` `447,304` `-` `447,304` `44,594` `-` `44,594`
`$`	`$`		`$`
	`$`
`$`			`$`	`$`
`$`	`$`		`$`	`$`
`$`	`$`		`$`	`$`
`$`	`$`		`$`	`$`

`$`	`$`		`$`	`$`
`$`	`$`		`$`	`$`
`$`	`$`		`$`	`$`
`$`	`$`		`$`	`$`

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(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 products, for example, foreign exchange swap contracts and financial products, the Group adopts valuation technique that is widely used by market participants. The inputs used in the valuation method to measure these financial instruments are normally observable in the market.
- iv. The valuation of derivative financial instruments is based on valuation model widely accepted by market participants, such as present value techniques and option pricing models. Forward 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 nine-month periods ended September 30, 2021 and 2020, there was no transfer between Level 1 and Level 2.

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F. The following table presents the changes in Level 3 instruments for the nine-month periods ended September 30, 2021 and 2020:

2021

			2021
Financial assets at fair value through profit or loss / Financial assets at fair value through other comprehensive income At January 1 Gains and losses recognized in profit or loss Gains and losses recognized in other comprehensive income Sold in the period Proceeds from capital reduction Transfer to Level 1 Effect on exchange rate changes At September 30 Financial assets at fair value through profit or loss Equitysecurities At January 1 `3,517,289` `$` Gains and losses recognized in profit or loss `406,315` Gains and losses recognized in other comprehensive income `41,887)` `(` Acquired in the period `254,152` Conversion in the period `33,129` Effect on exchange rate changes `10,412)` `(` At September 30 `4,158,586` `$` Financial liabilities at fair value through profit or loss At January 1 Gains and losses recognized in profit or loss Conversion in the period Issued in the period At September 30		2020	Equitysecurities `3,477,039` `$` `670,342` `4,056,968` `115,154)` `(` `99,638)` `(` `4,937,575)` `(` `30,613` `3,082,595` `$` Total
	Equitysecurities	Hybrid instrument
		`33,521` `$` `-` `-` `-` `33,129)` `(` `392)` `(` `-` `$` 2021 Derivative instruments `3,208,560` `$` `2,146,546` `5,355,106)` `(` `-` `-` `$`	`3,550,810` `$` `406,315` `41,887)` `(` `254,152` `-` `10,804)` `(` `4,158,586` `$` 2020 Derivative instruments `-` `$` `249,432` `-` `1,422,363` `1,671,795` `$`

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

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adjustments to the fair value. Convertible bonds derivative instruments are evaluated through outsourced appraisal performed by the external valuer.

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

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

Non-derivative equity instrument: Listed/Unlisted shares Venture capital shares Private equity fund investment	Fair value at September 30,2021	Valuation technique	Significant unobservable input	Range (weighted average)	Relationship of inputs to fair value
	`326,818` `$` `2,641,125` `91,822` `22,830`	Market comparable companies Using the last transaction price in an inactive market Net asset value Net asset value	Price to earnings ratio multiple, price to sales ratio multiple, price to book ratio multiple Discount for lack of marketability Discount for lack of marketability Discount for lack of marketability Not applicable	`1.19~4.50` `(1.85)` `30%~70%` `(32%)` `23%~41%` `(25%)` `5%` `(5%)` Not applicable	The higher the multiple, the higher the fair value The higher the discount for lack of marketability, the lower the fair value The higher the discount for lack of marketability, the lower the fair value The higher the discount for lack of marketability, the lower the fair value Not applicable

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Non-derivative equity instrument: Unlisted shares Venture capital shares Private equity fund investment Derivative instrument Convertible bond	Fair value at December 31,2020	Valuation technique Significant unobservable input Market comparable companies Price to earnings ratio multiple, price to sales ratio multiple, price to book ratio multiple Discount for lack of marketability Using the last transaction price in an inactive market Discount for lack of marketability Net asset value Discount for lack of marketability Net asset value Not applicable Binary tree model for convertible bond pricing Volatility rate	Range (weighted average)	Relationship of inputs to fair value
	`1,273,432` `$` `1,988,800` `191,460` `23,347` `3,208,560`		`0.62~4.50` `(0.34)` `30%~70%` `(11%)` `23%~30%` `(14%)` `5%` `(0%)` Not applicable `48.60%`	The higher the multiple, the higher the fair value The higher the discount for lack of marketability, the lower the fair value The higher the discount for lack of marketability, the lower the fair value The higher the discount for lack of marketability, the lower the fair value Not applicable The higher the volatility, the higher the fair value

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Fair value at Range September Valuation Significant (weighted Relationship of 30, 2020 technique unobservable input average) inputs to fair value Non-derivative equity instrument: Unlisted shares $ 4,101,695 Market Price to earnings ratio 0.57~ The higher the comparable multiple, price to sales 17.49 multiple, the higher companies ratio multiple, price to (1.00) the fair value book ratio multiple Discount for lack of 30%~70% The higher the marketability (31%) discount for lack of marketability, the lower the fair value 32,537 Using the last Not applicable Not Not applicable transaction applicable price in an inactive market Venture capital shares Private equity 24,354 Net asset Not applicable Not Not applicable fund investment value applicable Derivative instrument liabilities: Convertible bond 1,671,765 Binary tree Volatility rate 45.7% The higher the model for volatility, the higher convertible the fair value bond pricing

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

September 30, 2021

					Recognized in other	Recognized in other
			Recognized	inprofit or loss	comprehensive income
			Favourable	Unfavourable	Favourable	Unfavourable
Financial assets	Input	Change	change	change	change	change
Equity instrument	Liquidity	`± 1%`	`$ 30,474`	`($ 30,474)`	`$ 352`	`($ 352)`
	discount

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December 31, 2020

==> picture [478 x 266] intentionally omitted <==

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Recognized in other
Recognized in profit or loss comprehensive income
Favourable Unfavourable Favourable Unfavourable
Financial assets Input Change change change change change
Equity instrument Liquidity ± 1% $ 24,424 ($ 24,424) $ 10,346 ($ 10,346)
discount
Financial liabilities
Derivative instruments Volatility rate ± 1% $ 32,403 ($ 31,780) $ - $ -
September 30, 2020
Recognized in other
Recognized in profit or loss comprehensive income
Favourable Unfavourable Favourable Unfavourable
Financial assets Input Change change change change change
Equity instrument Liquidity ± 1% $ 31,153 ($ 31,153) $ 10,433 ($ 10,433)
discount
Financial liabilities
Derivative instruments Volatility rate ± 1% $ 52,380 ($ 29,682) $ - $ -
----- End of picture text -----

(4) Other matter

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

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.

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(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.

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

(4) Major shareholders information

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

14. SEGMENT INFORMATION

(1) General information

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

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

(2) Segment information

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

is as follows:
Segment revenue Segment income (loss) Depreciation and amortization Capital expenditure- property, plant and equipment Segment assets	2021 2020 TFT LCD TFT LCD `93,085,886` `$` `74,568,417` `$` `19,977,653` `$` `1,599,965` `$` `9,190,977` `$` `8,945,881` `$` `6,849,474` `$` `4,733,205` `$` For the three-month periods ended September 30,	2021 2020 TFT LCD TFT LCD `270,160,114` `$` `191,843,194` `$` `55,901,588` `$` `7,631,563)` `($` `27,375,341` `$` `26,583,696` `$` `17,538,002` `$` `15,745,304` `$` `461,342,205` `$` `365,825,108` `$` For the nine-month periods ended September 30,
	2021 TFT LCD `93,085,886` `$` `19,977,653` `$` `9,190,977` `$` `6,849,474` `$`

(3) Reconciliation for segment income

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

~59~

Table 1

Innolux Corporation and Subsidiaries

Loans to others

For the nine-month period ended September 30, 2021

Expressed in thousands of NTD (Except as otherwise indicated)

No.	Creditor	Borrower	General ledger account	Is a related party	Maximum outstanding balance during the nine-month period ended September 30, 2021	Balance as at September 30, 2021	Actual amount drawn down	Interest rate	Nature of loan	Amount of transactions with the borrower	Reason for short-term financing	Allowance for doubtful accounts	Collateral	Collateral	Limit on loans granted to a singleparty	Ceiling on total loansgranted	Footnote
													Item	Value
1 1 1 1 1 2 3	Innocom Technology (Shenzhen) Co., Ltd. Innocom Technology (Shenzhen) Co., Ltd. Innocom Technology (Shenzhen) Co., Ltd. Innocom Technology (Shenzhen) Co., Ltd. Innocom Technology (Shenzhen) Co., Ltd. Innolux Japan Co.,Ltd. Warriors Technology Investments Ltd	Foshan Innolux Optoelectronics Ltd. Ningbo Innolux Optoelectronics Ltd. Ningbo Innolux Display Ltd. Shanghai Innolux Optoelectronics Ltd. Nanjing Innolux Optoelectronics Ltd. Innolux Corporation Innolux Corporation	Other receivables Other receivables Other receivables Other receivables Other receivables Other receivables Other receivables	Yes Yes Yes Yes Yes Yes Yes	$ 4,294,470 2,147,235 2,361,959 1,760,733 3,650,300 2,390,750 3,286,300	$ 4,294,470 2,147,235 2,147,235 1,288,341 3,006,129 2,390,750 3,286,300	$ 4,294,470 1,717,789 1,889,567 1,116,563 2,576,683 2,390,750 3,286,300	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	$ - - - - - - -	Operating support Operating support Operating support Operating support Operating support Operating support Operating support	$ - - - - - - -	- - - - - - -	$ - - - - - - -	23,308,302 $ 23,308,302 23,308,302 23,308,302 23,308,302 8,372,108 11,669,160	23,308,302 $ 23,308,302 23,308,302 23,308,302 23,308,302 8,372,108 11,669,160	A A A A A A A

Note A:

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

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

3.The policy for loans granted to direct or indirect wholly-owned ultimate parent company or overseas subsidiaries is as follows: for short-term capital needs, financial limit is not restricted to the abovementioned two rules, however, financial limit on total loans granted and limit on loans granted to a single party for the overseas subsidiaries should not exceed 200% of the creditor’s net equity.

Table 1, Page 1

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

September 30, 2021

Expressed in thousands of NTD (Except as otherwise indicated)

Innolux Corporation and Subsidiaries

Table 2

Securities held by	Marketable securities	Relationship with the securities issuer	General ledger account		As of September 30,2021	As of September 30,2021
				Shares/Units	Book value	Ownership (%)	Fair value
Innolux Corporation Innolux Corporation Innolux Corporation Innolux Corporation Innolux Corporation Innolux Corporation Innolux Corporation Innolux Corporation Innolux Corporation Innolux Corporation Innolux Corporation Innolux Corporation Yuan Chi Investment Co., Ltd. Yuan Chi Investment Co., Ltd. Yuan Chi Investment Co., Ltd. Yuan Chi Investment Co., Ltd. InnoJoy Investment Corporation	Common stock	None None Other related party None None None None None None None None None None None None None None	Financial assets at fair value through profit or loss Financial assets at fair value through profit or loss Financial assets at fair value through profit or loss Financial assets at fair value through profit or loss Financial assets at fair value through profit or loss Financial assets at fair value through profit or loss Financial assets at fair value through profit or loss Financial assets at fair value through other comprehensive income Financial assets at fair value through other comprehensive income Financial assets at fair value through other comprehensive income Financial assets at fair value through other comprehensive income Financial assets at fair value through other comprehensive income Financial assets at fair value through profit or loss Financial assets at fair value through profit or loss Financial assets at fair value through other comprehensive income Financial assets at fair value through other comprehensive income Financial assets at fair value through profit or loss	900,000 60,200,000 4,270,212 57,211,305 1,669,000 1,209 477,142 8,347,068 1,027,000 263,000 674,000 1,110,000 1,439,180 315,000 1,520,000 176,000 6,964,222	$ 6,075 1,289,423 91,822 646,488 159,055 - 40,589 4,937,574 63,777 13,702 67,333 69,264 - 3,560 75,164 8,457 168,186	1 3 19 9 - - 12 4 - - - - 3 - 1 - 5	$ 6,075 1,289,423 91,822 646,488 159,055 - 40,589 4,937,574 63,777 13,702 67,333 69,264 - 3,560 75,164 8,457 168,186
	AvanStrate Inc. TPV Technology Limited Chi Lin Optoelectronics Co., Ltd. Cheng Mei Materials Technology Corporation General Interface Solution (GIS) Holding Limited Allied Material Technology Corp. Obsidian Sensors, Inc. VIZIO Holding Corp. Cathay Financial Holding Co., Ltd. Preferred Stock A TAISHIN FINANCIAL HOLDING CO., LTD. Preferred Stock E Chailease Holding Company Limited Class A Preferred Shares Fubon Financial Holding Co., Ltd. Preferred Shares B Trillion Science, Inc. Cheng Mei Materials Technology Corporation WPG Holdings Limited Preferred Share A WT MICROELECTRONICS CO., LTD. Preferred Shares A Advanced Optoelectronic Technology, Inc.

Table 2, Page 1

Securities held by	Marketable securities	Relationship with the securities issuer	General ledger account		As of September 30,2021	As of September 30,2021
				Shares/Units	Book value	Ownership (%)	Fair value
InnoJoy Investment Corporation InnoJoy Investment Corporation InnoJoy Investment Corporation Ningbo Innolux Optoelectronics Ltd. Ningbo Innolux Optoelectronics Ltd. Warriors Technology Investments Ltd Warriors Technology Investments Ltd Warriors Technology Investments Ltd Warriors Technology Investments Ltd Warriors Technology Investments Ltd Warriors Technology Investments Ltd Warriors Technology Investments Ltd Warriors Technology Investments Ltd Nets Trading Ltd. Innolux Corporation Innolux Corporation Innolux Corporation Innolux Corporation	Common stock	None None None None None None None None None None None Other related party Other related party None None None None None	Financial assets at fair value through profit or loss Financial assets at fair value through other comprehensive income Financial assets at fair value through other comprehensive income Financial assets at fair value through profit or loss Financial assets at fair value through profit or loss Financial assets at fair value through profit or loss Financial assets at fair value through profit or loss Financial assets at fair value through profit or loss Financial assets at fair value through other comprehensive income Financial assets at fair value through other comprehensive income Financial assets at fair value through other comprehensive income Financial assets at fair value through other comprehensive income Financial assets at fair value through other comprehensive income Financial assets at fair value through profit or loss Financial assets at fair value through profit or loss Financial assets at fair value through profit or loss Financial assets at fair value through profit or loss Financial assets at fair value through profit or loss	954,000 7,347,144 9,000,000 - 30,599,775 16,000,000 414,136 2,016,000 1,027,371 22,525,000 4,000 1,900 1,819,240 90 69,820,457 180,718,346 5,164,587 133,580,731	$ 67,734 168,984 1,759,500 1,337,731 155,848 12,462 34,450 56,145 13,972 2,146,632 4,765 508 15,975 22,830 1,001,449 2,470,582 930,328 2,000,959	- 7 5 - 8 6 11 3 - 7 14 19 11 - - - - -	$ 67,734 168,984 1,759,500 1,337,731 155,848 12,462 34,450 56,145 13,972 2,146,632 4,765 508 15,975 22,830 1,001,449 2,470,582 930,328 2,000,959
	ENNOSTAR Inc. EPILEDS Co., Ltd. Fitipower Integrated Technology Inc. `上海辰岱投資中心`(`有限合夥`) Shenzhen Tiandeyu Electronics Co., Ltd. OED Holding Ltd. Obsidian Sensors, Inc. Reco Technology Holding Limited Kymeta Corporation General Interface Solution (GIS) Holding Limited CJK Associates Co., Ltd. Perinnova Limited KA Imaging Inc. PilotTech Global Fund Beneficiarycertificates
	Taishin Ta-Chong Money Market Fund Taishin 1699 Money Market Fund FSITC Money Market Jih Sun Money Market Fund

Table 2, Page 2

Securities held by	Marketable securities	Relationship with the securities issuer	General ledger account		As of September 30,2021	As of September 30,2021
				Shares/Units	Book value	Ownership (%)	Fair value
Innolux Corporation Innolux Corporation Innolux Corporation Innolux Corporation Innolux Corporation Innolux Corporation Innolux Corporation Innolux Corporation Ningbo Innolux Display Ltd. Foshan Innolux Optoelectronics Ltd. Ningbo Innolux Electronics Ltd. Ningbo Innolux Optoelectronics Ltd. Ningbo CarUX Technology Ltd. Nanjing Innolux Optoelectronics Ltd. Innocom Technology (Shenzhen) Co., Ltd. Shanghai Innolux Optoelectronics Ltd. Ningbo Innolux Optoelectronics Ltd. Ningbo Innolux Optoelectronics Ltd.	Beneficiarycertificates	None None None None None None None None None None None None None None None None None None	Financial assets at fair value through profit or loss Financial assets at fair value through profit or loss Financial assets at fair value through profit or loss Financial assets at fair value through profit or loss Financial assets at fair value through profit or loss Financial assets at fair value through profit or loss Financial assets at amortized cost Financial assets at amortized cost Financial assets at fair value through profit or loss Financial assets at fair value through profit or loss Financial assets at fair value through profit or loss Financial assets at fair value through profit or loss Financial assets at fair value through profit or loss Financial assets at fair value through profit or loss Financial assets at fair value through profit or loss Financial assets at fair value through profit or loss Financial assets at fair value through profit or loss Financial assets at fair value through profit or loss	92,184,251 45,062,693 7,975,245 181,530,803 90,561,003 18,225,781 - - - - - - - - - - - -	$ 1,501,626 600,677 100,115 2,300,322 1,400,309 300,042 472,369 4,734,500 1,454 5,298 41 6,961 205 2,955 1,246 957 1,291,113 1,916,363	- - - - - - Not applicable Not applicable Not applicable Not applicable Not applicable Not applicable Not applicable Not applicable Not applicable Not applicable Not applicable Not applicable	$ 1,501,626 600,677 100,115 2,300,322 1,400,309 300,042 472,369 4,734,500 1,454 5,298 41 6,961 205 2,955 1,246 957 1,291,113 1,916,363
	Capital Money Market Fund Union Money Market Fund Cathay Taiwan Money Market Fund Mega Diamond Money Market Fund FSITC Taiwan Money Market Yuanta De-Li Money Market Fund Financialproducts
	Fixed Income RMB-Structured Deposits Fixed Income Structured Linked Deposit Chang Jiang Sheng Shih Ru Yi Serials A congregate group pension plan Chang Jiang Sheng Shih Ru Yi Serials A congregate group pension plan Chang Jiang Sheng Shih Ru Yi Serials A congregate group pension plan Chang Jiang Sheng Shih Ru Yi Serials A congregate group pension plan Chang Jiang Sheng Shih Ru Yi Serials A congregate group pension plan Chang Jiang Sheng Shih Ru Yi Serials A congregate group pension plan Chang Jiang Sheng Shih Ru Yi Serials A congregate group pension plan Chang Jiang Sheng Shih Ru Yi Serials A congregate group pension plan Structuredproducts
	Floating Income RMB-Structured Deposits Floating Income RMB-Structured Deposits

Table 2, Page 3

Securities held by	Marketable securities	Relationship with the securities issuer	General ledger account		As of September 30,2021	As of September 30,2021		Footnote
				Shares/Units	Book value	Ownership (%)	Fair value
Innolux Corporation Innolux Corporation Innolux Corporation Innolux Corporation Innolux Corporation Innolux Corporation Innolux Corporation Innolux Corporation Innolux Corporation Innolux Corporation Innolux Corporation Innolux Corporation Innolux Corporation Innolux Corporation Innolux Corporation Innolux Corporation Innolux Corporation Innolux Corporation Innolux Corporation Innolux Corporation Innolux Corporation Innolux Corporation	Bonds		Financial assets at amortized cost Financial assets at amortized cost Financial assets at amortized cost Financial assets at amortized cost Financial assets at amortized cost Financial assets at amortized cost Financial assets at amortized cost Financial assets at amortized cost Financial assets at amortized cost Financial assets at amortized cost Financial assets at amortized cost Financial assets at amortized cost Financial assets at amortized cost Financial assets at amortized cost Financial assets at amortized cost Financial assets at amortized cost Financial assets at amortized cost Financial assets at amortized cost Financial assets at amortized cost Financial assets at amortized cost Financial assets at amortized cost Financial assets at amortized cost	- - - - - - - - - - - - - - - - - - - - - -	$ 201,863 251,856 202,685 102,094 252,694 252,504 201,244 251,613 101,523 100,919 202,324 102,199 251,498 50,557 101,054 126,268 151,710 146,714 265,782 159,696 168,405 147,277	Not applicable Not applicable Not applicable Not applicable Not applicable Not applicable Not applicable Not applicable Not applicable Not applicable Not applicable Not applicable Not applicable Not applicable Not applicable Not applicable Not applicable Not applicable Not applicable Not applicable Not applicable Not applicable	$ 201,695 252,498 201,524 101,228 252,694 252,394 201,241 252,233 101,044 100,812 201,495 101,492 251,493 101,112 101,052 252,530 151,718 145,898 264,963 159,115 168,150 146,263

Table 2, Page 4

Securities held by	Marketable securities	Relationship with the securities issuer	General ledger account		As of September 30,2021	As of September 30,2021
				Shares/Units	Book value	Ownership (%)	Fair value
Innolux Corporation Innolux Corporation Innolux Corporation Innolux Corporation Innolux Corporation Innolux Corporation Innolux Corporation Innolux Corporation Innolux Corporation Innolux Corporation Innolux Corporation Innolux Corporation Innolux Corporation Innolux Corporation Innolux Corporation Innolux Corporation Innolux Corporation Innolux Corporation Innolux Corporation	Bonds	None None None None None None None None None None None None None None None None None None None	Financial assets at amortized cost Financial assets at amortized cost Financial assets at amortized cost Financial assets at amortized cost Financial assets at amortized cost Financial assets at amortized cost Financial assets at amortized cost Financial assets at amortized cost Financial assets at amortized cost Financial assets at amortized cost Financial assets at amortized cost Financial assets at amortized cost Financial assets at amortized cost Financial assets at amortized cost Financial assets at amortized cost Financial assets at amortized cost Financial assets at amortized cost Financial assets at amortized cost Financial assets at amortized cost	- - - - - - - - - - - - - - - - - - -	$ 224,631 278,500 232,840 147,135 35,398 256,436 252,311 281,062 295,068 176,118 265,805 270,908 269,564 198,207 33,126 147,982 268,763 56,800 280,063	Not applicable Not applicable Not applicable Not applicable Not applicable Not applicable Not applicable Not applicable Not applicable Not applicable Not applicable Not applicable Not applicable Not applicable Not applicable Not applicable Not applicable Not applicable Not applicable	$ 223,836 278,407 232,590 146,485 35,191 256,157 251,857 279,244 292,565 175,355 265,155 269,345 267,413 196,839 32,859 147,356 267,773 56,728 279,151
	Doosan Infracore Co., Ltd. Emirates NBD Bank PJSC FAB Sukuk Co. Ltd. GS Caltex Corporation Hyundai Capital America Hyundai Capital Services, Inc. Industrial and Commercial Bank of China Limited (Hong Kong Branch) KIA Corporation Korea Resources Corporation NongHyup Bank POSCO Saudi Electricity Global SUKUK Company 4 Shinhan Bank Siam Commercial Bank Cayman Islands Sinopec Capital 2013 LTD. SK broadband CO.LTD. Societe Generale SA Sumitomo Corporation Sumitomo Mitsui Trust Bank

Table 2, Page 5

Innolux Corporation and Subsidiaries

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

September 30, 2021

Investor Table 3	Marketable securities (Note 1)	General ledger account	Counterparty (Note 2)	Relationship with the investor (Note 2)	Balance as at January1,2021	Balance as at January1,2021	Addition(Note 3)	Addition(Note 3)		Disposal(Note 3)	Disposal(Note 3)		Balance as at September 30,2021(Note 6) Expressed in thousands of NTD (Except as otherwise indicated)	Balance as at September 30,2021(Note 6) Expressed in thousands of NTD (Except as otherwise indicated)
					Shares/Units	Amount	Shares/Units	Amount	Shares/Units	Selling price	Book value	Gain (loss) on disposal	Shares/Units	Amount
Innolux Corporation Innolux Corporation Innolux Corporation Innolux Corporation Innolux Corporation Innolux Corporation Innolux Corporation Innolux Corporation Innolux Corporation Innolux Corporation Innolux Corporation Innolux Corporation Innolux Corporation	Taishin Ta-Chong Money Market Fund CTBC Hwa-win Money Market Fund Fubon Chi-Hsiang Money Market Fund Jih Sun Money Market Fund Capital Money Market Fund TCB Taiwan Money Market Fund Union Money Market Fund Taishin 1699 Money Market Fund FSITC Money Market Fund Mega Diamond Money Market Fund FSITC Taiwan Money Market Yuanta De-Li Money Market Fund Fixed Income RMB-Structured Deposits	Note 4 Note 4 Note 4 Note 4 Note 4 Note 4 Note 4 Note 4 Note 4 Note 4 Note 4 Note 4 Note 5	- - - - - - - - - - - - -	- - - - - - - - - - - - -	- - - - - - - - - - - - -	$ - - - - - - - - - - - - -	69,820,457 234,022,269 82,245,047 133,580,731 92,184,251 185,531,904 45,062,693 180,718,346 5,164,587 181,530,803 90,561,003 18,225,781 -	$ 1,000,000 2,600,000 1,300,000 2,000,000 1,500,000 1,900,000 600,000 2,470,000 930,000 2,300,000 1,400,000 300,000 472,369	- 234,022,269 82,245,047 - - 185,531,904 - - - - - - -	$ - 2,602,655 1,301,010 - - 1,901,368 - - - - - - -	$ - 2,602,655 1,301,010 - - 1,901,368 - - - - - - -	$ - - - - - - - - - - - - -	69,820,457 - - 133,580,731 92,184,251 - 45,062,693 180,718,346 5,164,587 181,530,803 90,561,003 18,225,781 -	$ 1,001,449 - - 2,000,959 1,501,626 - 600,677 2,470,582 930,328 2,300,322 1,400,309 300,042 472,369

Table 3, Page 1

Investor	Marketable securities (Note 1)	General ledger account	Counterparty (Note 2)	Relationship with the investor (Note 2)	Balance as at January1,2021	Balance as at January1,2021	Addition(Note 3)	Addition(Note 3)		Disposal(Note 3)	Disposal(Note 3)		Balance as at September 30,2021(Note 6)	Balance as at September 30,2021(Note 6)
					Shares/Units	Amount	Shares/Units	Amount	Shares/Units	Selling price	Book value	Gain (loss) on disposal	Shares/Units	Amount
Innolux Corporation Ningbo Innolux Display Ltd. Foshan Innolux Optoelectronics Ltd. Ningbo Innolux Optoelectronics Ltd. Ningbo Innolux Optoelectronics Ltd. Ningbo Innolux Optoelectronics Ltd. Ningbo Innolux Optoelectronics Ltd. Nanjing Innolux Optoelectronics Ltd.	Fixed Income Structured Linked Deposit Floating Income RMB-Structured Deposits Floating Income RMB-Structured Deposits Floating Income RMB-Structured Deposits Floating Income RMB-Structured Deposits Floating Income RMB-Structured Deposits Floating Income RMB-Structured Deposits Floating Income RMB-Structured Deposits	Note 5 Note 4 Note 4 Note 4 Note 4 Note 4 Note 4 Note 4	- - - - - - - -	- - - - - - - -	- - - - - - - -	$ - - - - - - - -	- - - - - - - -	$ 4,734,500 436,480 875,743 1,969,461 3,583,083 1,287,909 1,910,123 1,983,118	- - - - - - - -	$ - 443,212 889,175 1,998,283 3,639,591 - - 2,012,359	$ - 443,212 889,175 1,998,283 3,639,591 - - 2,012,359	$ - - - - - - - -	- - - - - - - -	$ 4,734,500 - - - - 1,291,113 1,916,363 -

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

Note 2: Fill in the columns the counterparty and relationship if securities are accounted for using the equity method; otherwise leave the columns blank. Note 3: Aggregate purchases and sales amounts should be calculated separately at their market values to verify whether they individually reach NT$300 million or 20% of paid-in capital or more. Note 4: Code of general ledger account is "financial assets at fair value through profit or loss". Due to adoption of IFRS, it would be valued at fair value rather than recognized disposal gain or loss. Note 5: Code of general ledger account is "financial assets at amortized cost". The gain or loss due to disposal is interest income. Note 6: The carrying amount as at September 30, 2021 included gains or losses on valuation.

Table 3, Page 2

Table 4

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 nine-month period ended September 30, 2021

Expressed in thousands of NTD (Except as otherwise indicated)

Purchaser/seller	Counterparty	Relationship with the counterparty		Transaction	Transaction		Differences in transaction terms compared to third party transactions	Differences in transaction terms compared to third party transactions	Notes/accounts receivable(payable)	Notes/accounts receivable(payable)	Footnote
			Purchases (sales)	Amount	Percentage of total purchases (sales)	Credit term	Unitprice	Credit term	Balance	Percentage of total notes/accounts receivable(payable)
Innolux Corporation Innolux Corporation Innolux Corporation Innolux Corporation Innolux Corporation Innolux Corporation Innolux Corporation Innolux Corporation Innolux Corporation Innolux Corporation Innolux Corporation Innolux Corporation Innolux Corporation Innolux Corporation Innolux Corporation	CARUX TECHNOLOGY PTE. LTD. Innolux USA Inc. Innolux Hong Kong Limited Hon Hai Precision Industry Co., Ltd. Hongfujin Precision Electronics (Yantai) Co., Ltd. Honfujin Precision Electronics (Chongqing) Co., Ltd. Foshan Innolux Optoelectronics Ltd. InnoCare Optoelectronics Corporation COMPETITION TEAM IRELAND LIMITED Foshan Innolux Optoelectronics Ltd. Ningbo Innolux Display Ltd. Ningbo Innolux Optoelectronics Ltd. Innolux Hong Kong Limited Innocom Technology (Shenzhen) Co., Ltd. Ningbo CarUX Technology Ltd.	An indirect wholly-owned subsidiary 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. An indirect wholly-owned subsidiary of Hon Hai Precision Industry Co., Ltd. An indirect wholly-owned subsidiary A subsidiary of the Company An indirect wholly-owned subsidiary of Hon Hai Precision Industry Co., Ltd. An indirect wholly-owned subsidiary An indirect wholly-owned subsidiary An indirect wholly-owned subsidiary An indirect wholly-owned subsidiary An indirect wholly-owned subsidiary An indirect wholly-owned subsidiary	Sales Sales Sales Sales Sales Sales Sales Sales Sales Processing expense Processing expense Processing expense Processing expense Processing expense Processing expense	9,631,763 $ 11,250,849 5,390,722 1,466,755 1,972,345 961,610 838,474 393,231 169,396 21,957,923 17,870,951 17,059,197 13,456,981 238,902 113,559	4 4 2 1 1 - - - - 12 10 9 7 - -	60 days 90 days 60 days 90 days 60 days 45 days 60 days 90 days 45 days 60 days 60 days 60 days 60 days 60 days 60 days	Similar with general sales Similar with general sales Similar with general sales Similar with general sales Similar with general sales Similar with general sales Similar with general sales Similar with general sales Similar with general sales Cost plus Cost plus 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 No material difference	3,721,191 $ 2,616,141 - 791,079 646,489 285,353 69,527 607,278 22,568 4,677,680) ( 6,260,518) ( 7,008,306) ( 3,388,214) ( 237,154) ( 90,967) (	6 4 - 1 1 - - 1 - 10 14 15 7 1 -

Table 4, Page 1

Differences in transaction

							Differences in transaction	Differences in transaction
Purchaser/seller	Counterparty	Relationship with the counterparty		Transaction			terms compared to third party transactions		Notes/accounts receivable(payable)		Footnote
			Purchases (sales)	Amount	Percentage of total purchases (sales)	Credit term	Unitprice	Credit term	Balance	Percentage of total notes/accounts receivable(payable)
Nanjing Innolux Optoelectronics Ltd. Shanghai Innolux Optoelectronics Ltd. Shanghai Innolux Optoelectronics Ltd. CarUX Technology Inc. CarUX Technology Inc. Innolux Europe B.V. Innolux Europe B.V. Innolux Japan Co., Ltd. Innolux Hong Kong Limited Ningbo Innolux Optoelectronics Ltd. InnoCare Optoelectronics Corporation Ningbo Innolux Display Ltd. InnoCare Optoelectronics Corporation	Innolux Hong Kong Limited Innolux Hong Kong Limited CARUX TECHNOLOGY PTE. LTD. CARUX TECHNOLOGY PTE. LTD. Innolux Corporation Innolux Corporation CARUX TECHNOLOGY PTE. LTD. Innolux Corporation Nanjing Innolux Technology Ltd. Ningbo Innolux Display Ltd. InnoCare Optoelectronics Japan Co., Ltd. Ningbo Innolux Optoelectronics Ltd. InnoCare Optoelectronics USA, INC.	An indirect wholly-owned subsidiary An indirect wholly-owned subsidiary An indirect wholly-owned subsidiary An indirect wholly-owned subsidiary Ultimate parent company Ultimate parent company An indirect wholly-owned subsidiary Ultimate parent company An indirect wholly-owned subsidiary An indirect wholly-owned subsidiary An indirect wholly-owned subsidiary An indirect wholly-owned subsidiary An indirect wholly-owned subsidiary	Processing revenue Processing revenue Processing revenue Processing revenue Processing revenue Service revenue Service revenue Service revenue Sales Sales Sales Sales Sales	11,524,980 $ 1,616,343 3,633,970 2,755,301 508,031 258,331 454,812 209,586 5,013,120 5,198,058 649,848 1,177,257 358,986	100 19 46 84 10 36 64 68 19 14 46 4 25	60 days 60 days 60 days 60 days 60 days 60 days 60 days 60 days 60 days 60 days 60 days 60 days 60 days	Similar with general transactions Similar with general transactions Similar with general transactions Similar with general transactions Similar with general transactions Similar with general transactions Similar with general transactions Similar with general transactions Similar with general transactions Similar with general transactions Similar with general transactions Similar with general transactions Similar with general transactions	No material difference No material difference No material difference No material difference No material difference No material difference No material difference No material difference No material difference No material difference No material difference No material difference No material difference	2,681,343 $ - 1,205,748 1,132,630 - 1,190 141,269 56,233 984,673 1,222,322 224,486 275,726 143,010	100 - 72 97 - 1 89 78 20 13 44 3 28

Table 4, Page 2

Differences in transaction

							Differences in transaction	Differences in transaction
Purchaser/seller	Counterparty	Relationship with the counterparty		Transaction			terms compared to third party transactions		Notes/accounts receivable(payable)		Footnote
			Purchases (sales)	Amount	Percentage of total purchases (sales)	Credit term	Unitprice	Credit term	Balance	Percentage of total notes/accounts receivable(payable)
InnoCare Optoelectronics Corporation Ningbo Innolux Optoelectronics Ltd. Ningbo Innolux Display Ltd. Foshan Innolux Optoelectronics Ltd. InnoCare Optoelectronics Corporation	Ningbo Innolux Electronics Ltd. Hon Hai Precision Industry Co., Ltd. Hon Hai Precision Industry Co., Ltd. Hon Hai Precision Industry Co., Ltd. FI Medical Device Manufacturing Co., Ltd.	An indirect wholly-owned subsidiary Same major stockholder Same major stockholder Same major stockholder Other related party	Sales Purchases Purchases Purchases Purchases	201,817 $ 1,623,185 1,572,103 117,251 761,143	14 4 5 - 71	60 days 90 days after acceptance 90 days after acceptance 90 days after acceptance 30 days	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	39,556 $ 694,739) ( 700,720) ( 52,329) ( 95,039) (	8 6 7 - 11

Table 4, Page 3

Innolux Corporation and Subsidiaries

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

September 30, 2021

Table 5

Expressed in thousands of NTD (Except as otherwise indicated)

Creditor	Counterparty	Relationship with the counterparty	Balance as at September 30, 2021 (Note A)	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 Innolux Corporation Foshan Innolux Optoelectronics Ltd. Ningbo Innolux Optoelectronics Ltd. Ningbo Innolux Display Ltd. Innolux Hong Kong Limited Innocom Technology (Shenzhen) Co., Ltd. Nanjing Innolux Optoelectronics Ltd. Shanghai Innolux Optoelectronics Ltd. Innolux Hong Kong Limited Innolux Corporation	CARUX TECHNOLOGY PTE. LTD. Innolux USA Inc. Hon Hai Precision Industry Co., Ltd. InnoCare Optoelectronics Corporation CarUX Technology Inc. Honfujin Precision Electronics (Chongqing) Co., Ltd. Hongfujin Precision Electronics (Yantai) Co., Ltd. Innolux Corporation Innolux Corporation Innolux Corporation Innolux Corporation Innolux Corporation Innolux Hong Kong Limited CARUX TECHNOLOGY PTE. LTD. Nanjing Innolux Technology Ltd. CARUX TECHNOLOGY PTE. LTD.	An indirect wholly-owned subsidiary An indirect wholly-owned subsidiary Same major stockholder A subsidiary of the Company An indirect wholly-owned subsidiary An indirect wholly-owned subsidiary of Hon Hai Precision Industry Co., Ltd. An indirect wholly-owned subsidiary of Hon Hai Precision Industry Co., Ltd. Ultimate parent company Ultimate parent company Ultimate parent company Ultimate parent company Ultimate parent company An indirect wholly-owned subsidiary An indirect wholly-owned subsidiary An indirect wholly-owned subsidiary An indirect wholly-owned subsidiary	3,721,191 $ 819,347 (Shown as other receivables) 2,616,141 791,079 607,278 530,954 285,353 646,489 4,677,680 7,008,306 6,260,518 3,388,214 237,154 2,681,343 1,205,748 984,673	4.81 - 4.30 1.97 0.69 0.42 7.64 4.22 2.37 2.15 3.94 2.89 2.69 2.95 8.04 4.69	2,006,757 $ - - 16,507 456,968 528,539 105,589 - - 2,516,564 2,597,125 - 184,682 - - -	Subsequent collection - Subsequent collection Subsequent collection Subsequent collection Subsequent collection - - Subsequent collection Subsequent collection - Subsequent collection - - - -	642,385 $ - 1,293,431 56,361 - 2,594 37,631 3,864 4,677,680 4,100,357 3,676,733 - - 1,559,104 1,016,110 404,012	- $ - - - - - - - - - - - - - - -

Table 5, Page 1

Creditor	Counterparty	Relationship with the counterparty	Balance as at September 30, 2021 (Note A)	Turnover rate	Overdue receivables	Overdue receivables	Amount collected subsequent to the balance sheet date	Allowance for doubtful accounts
					Amount	Action taken
CarUX Technology Inc. Ningbo Innolux Optoelectronics Ltd. InnoCare Optoelectronics Corporation Ningbo Innolux Display Ltd. InnoCare Optoelectronics Corporation Innolux Europe B.V.	CARUX TECHNOLOGY PTE. LTD. Ningbo Innolux Display Ltd. InnoCare Optoelectronics Japan Co., Ltd. Ningbo Innolux Optoelectronics Ltd. InnoCare Optoelectronics USA, INC. CARUX TECHNOLOGY PTE. LTD.	An indirect wholly-owned subsidiary An indirect wholly-owned subsidiary An indirect wholly-owned subsidiary An indirect wholly-owned subsidiary An indirect wholly-owned subsidiary An indirect wholly-owned subsidiary	1,132,630 $ 1,222,322 224,486 275,726 143,010 141,269	6.49 4.70 6.21 5.94 2.68 8.59	$ - - 11,235 - 74,124 -	- - Subsequent collection - Subsequent collection -	950,046 $ 604,291 - 114,607 38,223 68,869	- $ - - - - -

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

Table 5, Page 2

Innolux Corporation and Subsidiaries

Table 6

Expressed in thousands of NTD (Except as otherwise indicated)

Significant inter-company transactions during the reporting period

For the nine-month period ended September 30, 2021

Number (Note A)	Companyname	Counterparty	Relationship (Note B)		Transaction(Note D and E)	Transaction(Note D and E)
				General ledger account	Amount	Transaction terms (Note C)	Percentage of consolidated total operatingrevenues or total assets
0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 1 1 2 2	Innolux Corporation Innolux Corporation Innolux Corporation Innolux Corporation Innolux Corporation Innolux Corporation Innolux Corporation Innolux Corporation Innolux Corporation Innolux Corporation Innolux Corporation Innolux Corporation Innolux Corporation Innolux Corporation Innolux Corporation Innolux Corporation Innolux Corporation Innolux Corporation Innolux Corporation Innolux Corporation Innolux Corporation Innolux Europe B.V. Innolux Europe B.V. Innolux Europe B.V. Innolux Hong Kong Limited Innolux Hong Kong Limited	CARUX TECHNOLOGY PTE. LTD. CARUX TECHNOLOGY PTE. LTD. CARUX TECHNOLOGY PTE. LTD. Innolux Hong Kong Limited Innolux Hong Kong Limited Innolux Hong Kong Limited Innolux USA Inc. Innolux USA Inc. Foshan Innolux Optoelectronics Ltd. Foshan Innolux Optoelectronics Ltd. Foshan Innolux Optoelectronics Ltd. Innocom Technology (Shenzhen) Co., Ltd. Innocom Technology (Shenzhen) Co., Ltd. CarUX Technology Inc. Ningbo Innolux Optoelectronics Ltd. Ningbo Innolux Optoelectronics Ltd. Ningbo Innolux Display Ltd. Ningbo Innolux Display Ltd. Ningbo CarUX Technology Ltd. InnoCare Optoelectronics Corporation InnoCare Optoelectronics Corporation Innolux Corporation CARUX TECHNOLOGY PTE. LTD. CARUX TECHNOLOGY PTE. LTD. Nanjing Innolux Technology Ltd. Nanjing Innolux Technology Ltd.	1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 3 3 3 3 3	Sales Accounts receivable Other receivables Sales Processing expense Accrued expenses Sales Accounts receivable Sales Processing expense Accrued expenses Processing expense Accrued expenses Accounts receivable Processing expense Accrued expenses Processing expense Accrued expenses Processing expense Sales Accounts receivable Service revenue Service revenue Accounts receivable Sales Accounts receivable	9,631,763 $ 3,721,191 819,347 5,390,722 13,456,981 3,388,214) ( 11,250,849 2,616,141 838,474 21,957,923 4,677,680) ( 238,902 237,154) ( 530,954 17,059,197 7,008,306) ( 17,870,951 6,260,518) ( 113,559 393,231 607,278 258,331 454,812 141,269 5,013,120 984,673	- - - - - - - - - - - - - - - - - - - - - - - - - -	4 1 - 2 5 1 4 1 - 8 1 - - - 6 2 7 1 - - - - - - 2 -

Table 6, Page 1

Transaction (Note D and E)

Number (Note A)	Companyname	Counterparty	Relationship (Note B)	General ledger account	Amount	Transaction terms (Note C)	Percentage of consolidated total operatingrevenues or total assets
3 4 4 4 5 5 6 6 6 7 7 8 8 9 9 9 9 9	Innolux Japan Co., Ltd. Shanghai Innolux Optoelectronics Ltd. Shanghai Innolux Optoelectronics Ltd. Shanghai Innolux Optoelectronics Ltd. Nanjing Innolux Optoelectronics Ltd. Nanjing Innolux Optoelectronics Ltd. CarUX Technology Inc. CarUX Technology Inc. CarUX Technology Inc. Ningbo Innolux Optoelectronics Ltd. Ningbo Innolux Optoelectronics Ltd. Ningbo Innolux Display Ltd. Ningbo Innolux Display Ltd. InnoCare Optoelectronics Corporation InnoCare Optoelectronics Corporation InnoCare Optoelectronics Corporation InnoCare Optoelectronics Corporation InnoCare Optoelectronics Corporation	Innolux Corporation CARUX TECHNOLOGY PTE. LTD. CARUX TECHNOLOGY PTE. LTD. Innolux Hong Kong Limited Innolux Hong Kong Limited Innolux Hong Kong Limited CARUX TECHNOLOGY PTE. LTD. CARUX TECHNOLOGY PTE. LTD. Innolux Corporation Ningbo Innolux Display Ltd. Ningbo Innolux Display Ltd. Ningbo Innolux Optoelectronics Ltd. Ningbo Innolux Optoelectronics Ltd. InnoCare Optoelectronics Japan Co., Ltd. InnoCare Optoelectronics Japan Co., Ltd. InnoCare Optoelectronics USA, INC. InnoCare Optoelectronics USA, INC. Ningbo Innolux Electronics Ltd.	3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3	Service revenue Processing revenue Accounts receivable Processing revenue Processing revenue Accounts receivable Processing revenue Accounts receivable Processing revenue Sales Accounts receivable Sales Accounts receivable Sales Accounts receivable Sales Accounts receivable Sales	209,586 $ 3,633,970 1,205,748 1,616,343 11,524,980 2,681,343 2,755,301 1,132,630 508,031 5,198,058 1,222,322 1,177,257 275,726 649,848 224,486 358,986 143,010 201,817	- - - - - - - - - - - - - - - - - -	- 1 - 1 4 1 1 - - 2 - - - - - - - -

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 reaching NT$100 million or 20% of paid-in capital or more.

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

For the nine-month period ended September 30, 2021

Investor Table 7	Investee	Location	Main business activities	Initial investment amount	Initial investment amount	Shares held a	s at September 30,2021	s at September 30,2021	Net profit (loss) of the investee for the nine-month period ended September 30, 2021	Investment income (loss) recognized by the Company for the nine-month period ended September 30, 2021 Footnote Expressed in thousands of NTD (Except as otherwise indicated)	Investment income (loss) recognized by the Company for the nine-month period ended September 30, 2021 Footnote Expressed in thousands of NTD (Except as otherwise indicated)
				Balance as at September 30, 2021	Balance as at December 31, 2020	Number of shares	Ownership (%)	Book value
Innolux Corporation Innolux Corporation Innolux Corporation Innolux Corporation Innolux Corporation Innolux Corporation Innolux Corporation Innolux Corporation Innolux Corporation Innolux Corporation Innolux Corporation Innolux Corporation Innolux Corporation Innolux Corporation Innolux Corporation	Innolux Holding Limited Keyway Investment Management Limited Landmark International Ltd. Toppoly Optoelectronics (B.V.I.) Ltd. Innolux Hong Kong Holding Limited Innolux Singapore Holding Pte. Ltd. Yuan Chi Investment Co., Ltd. InnoJoy Investment Corporation InnoCare Optoelectronics Corporation Innolux Japan Co., Ltd. iZ3D, Inc. GIO Optoelectronics Corp. INStek Corporation Ampower Holding Ltd. FI Medical Device Manufacturing Co., Ltd.	Samoa Samoa Samoa BVI Hong Kong Singapore Taiwan Taiwan Taiwan Japan USA Taiwan Taiwan Cayman Taiwan	Investment holdings Investment holdings Investment holdings Investment holdings Investment holdings Investment holdings Investment company Investment company Holdings, R&D, manufacturing and distribution company Holdings, R&D and distribution company Research and development and sale of 3D flat monitor Holdings, R&D, manufacturing and distribution company R&D, manufacturing and distribution company Investment holdings Production and selling of the absorption for medical element	$ 6,192,509 62,197 33,438,542 3,674,115 3,231,780 754,943 1,217,235 1,674,054 215,000 1,682,751 - 413,448 35,300 1,717,714 73,500	$ 6,192,509 62,197 33,438,542 3,674,115 3,231,780 754,943 1,217,235 1,674,054 200,000 1,682,751 - 308,993 - 1,717,714 73,500	180,568,185 1,656,410 709,450,000 146,847,000 1,158,844,000 25,400,000 - 167,405,392 21,500,000 98 4,333 37,713,178 2,647,507 14,062,500 7,350,000	100 100 100 100 100 100 100 100 61 54 35 70 40 50 49	$ 17,725,956 95,842 48,056,519 6,030,262 6,585,532 219,090 882,809 3,002,897 361,165 2,278,888 - 395,282 29,946 808,091 460,054	$ 225,178 4,072 2,333,421 78,221 79,055 ( 26,814) 4,582 ( 24,549) 160,032 628,263 - ( 19,578) ( 135) 191 167,966	$ 225,178 4,072 2,333,421 78,221 79,691 ( 26,814) 4,582 ( 24,549) 157,440 342,026 - ( 12,642) ( 54) 95 82,303

Table 7, Page 1

Investor	Investee	Location	Main business activities	Initial investment amount	Initial investment amount	Shares held a	s at September 30,2021	s at September 30,2021	Net profit (loss) of the investee for the nine-month period ended September 30, 2021	Investment income (loss) recognized by the Company for the nine-month period ended September 30, 2021	Footnote
				Balance as at September 30, 2021	Balance as at December 31, 2020	Number of shares	Ownership (%)	Book value
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 Limited Rockets Holding Limited Suns Holding Ltd Innolux Europe B.V.	eLux Inc. PanelSemi Corporation Rockets Holding Limited Suns Holding Ltd Lakers Trading Limited Toppoly Optoelectronics (Cayman) Ltd. Innolux Hong Kong Limited Innolux Japan Co., Ltd. CarUX Holding Limited CARUX TECHNOLOGY PTE. LTD. Innolux Optoelectronics Hong Kong Holding Limited Innolux Europe B.V. CarUX Technology Inc. Innolux USA Inc. Stanford Developments Limited Nets Trading Ltd. Warriors Technology Investments Ltd Innolux Technology Germany GmbH	USA Taiwan Samoa Samoa Samoa Cayman Hong Kong Japan Cayman Singapore Hong Kong Netherlands Taiwan USA Samoa Samoa Samoa Germany	R&D of MicroLED technology Manufacturing of electronic parts Investment holdings Investment holdings Distribution company Investment holdings Distribution company Holdings, R&D and distribution company Investment holdings Holdings and distribution company Investment holdings Holding, distribution and R&D testing company R&D, manufacturing and distribution company Distribution company Investment holdings Investment company Investment company Testing and maintenance company	$ 91,155 250,000 5,222,180 555,422 - 3,650,192 - 1,815,603 3,772,473 3,769,371 1,818,180 464,341 1,400,000 369,092 5,391,125 27,477 555,422 33,735	$ 91,155 - 5,222,180 555,422 - 3,650,192 - 1,815,603 3,772,473 3,769,371 1,818,180 464,341 1,400,000 369,092 5,391,125 27,477 555,422 33,735	300,000 25,000,000 160,504,550 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 18,177,052 100,000	28 45 100 100 100 100 100 46 100 100 100 100 100 100 100 100 100 100	$ 12,781 243,377 11,679,125 5,834,582 - 6,029,937 1,497,375 1,907,166 3,196,110 3,193,594 1,957,847 434,114 1,467,879 1,399,669 11,654,198 24,802 5,834,580 16,928	($ 47,359) ( 14,570) 128,835 96,343 - 78,221 313,440 628,263 ( 520,623) ( 520,428) 117,206 32,381 37,815 587,934 128,835 - 96,343 883	($ 22,089) ( 6,623) 128,835 96,343 - 78,221 313,440 286,237 ( 520,623) ( 520,428) 117,206 32,381 37,815 587,934 128,835 - 96,343 883

Table 7, Page 2

Investor	Investee	Location	Main business activities	Initial investment amount	Initial investment amount	Shares held a	s at September 30,2021	s at September 30,2021	Net profit (loss) of the investee for the nine-month period ended September 30, 2021	Investment income (loss) recognized by the Company for the nine-month period ended September 30, 2021	Footnote
				Balance as at September 30, 2021	Balance as at December 31, 2020	Number of shares	Ownership (%)	Book value
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. InnoJoy Investment Corporation InnoJoy Investment Corporation Inno Capital Corporation InnoCare Optoelectronics Corporation InnoCare Optoelectronics Corporation InnoCare Optoelectronics Corporation GIO Optoelectronics Corp.	INNOLUX OPTOELECTRONICS INDIA PRIVATE LIMITED INNOLUX OPTOELECTRONICS PHILIPPINES CORP. INNOLUX OPTOELECTRONICS MALAYSIA SDN. BHD. GIO Optoelectronics Corp. INNOLUX OPTOELECTRONICS INDIA PRIVATE LIMITED Inno Capital Corporation CDIB-Innolux Limited Partnership CDIB-Innolux Limited Partnership InnoCare Optoelectronics Japan Co., Ltd. InnoCare Optoelectronics USA, INC. Innocare Optoelectronics Europe B.V. Double Star Inc.	India Philippines Malaysia Taiwan India Taiwan Taiwan Taiwan Japan USA Netherlands Mauritius	Distribution company Manufacturer and distribution company Manufacturer and distribution company Holdings, R&D, manufacturing and distribution company Distribution company Investment company Investment company Investment company Distribution company Distribution company After-sales service company Investment holdings	$ 607,284 28,733 121,179 858 - 15,000 47,139 2,861 87,149 27,963 1,661 298,113	$ 607,284 28,733 121,179 858 - - - - 87,149 27,963 - 298,113	144,095,499 5,000,000 16,000,000 77,235 1 1,500,000 - - 30,010 900,000 500 10,000,000	100 100 100 - - 100 16 1 100 100 100 100	$ 79,738 25,769 - 819 - 14,951 46,750 2,837 72,359 10,219 1,823 97,830	($ 18,246) ( 106) ( 94) ( 19,578) ( 18,246) ( 49) ( 2,364) ( 2,364) ( 154) ( 8,039) 215 115	($ 18,246) ( 106) ( 94) ( 33) - ( 49) ( 389) ( 23) ( 2,043) ( 8,039) 215 115

Table 7, Page 3

Innolux Corporation and Subsidiaries

Information on investments in Mainland China

For the nine-month period ended September 30, 2021

Investee in Mainland China Table 8	Main business activities	Paid-in capital (Note A)	Investment method (Note C)	Accumulated amount of remittance from Taiwan to Mainland China as of January 1, 2021	Amount remitted from Taiwan to Mainland China/Amount remitted back to Taiwan for the nine-month period ended September 30,2021	Amount remitted from Taiwan to Mainland China/Amount remitted back to Taiwan for the nine-month period ended September 30,2021	Accumulated amount of remittance from Taiwan to Mainland China as of September 30,2021	Net income of investee for the nine-month period ended September 30, 2021	Ownership held by the Company (direct or indirect)	Investment income (loss) recognized by the Company for the nine- month period ended September 30, 2021(Note B)	Expressed in thousands of NTD (Except as otherwise indicated) Book value of investments in Mainland China as of September 30,2021 Accumulated amount of investment income remitted back to Taiwan as of September 30,2021 Footnote	Expressed in thousands of NTD (Except as otherwise indicated) Book value of investments in Mainland China as of September 30,2021 Accumulated amount of investment income remitted back to Taiwan as of September 30,2021 Footnote	Expressed in thousands of NTD (Except as otherwise indicated) Book value of investments in Mainland China as of September 30,2021 Accumulated amount of investment income remitted back to Taiwan as of September 30,2021 Footnote
					Remitted to Mainland China	Remitted back to Taiwan
Innocom Technology (Shenzhen) Co., Ltd. Guangzhou OED Technologies Co., Ltd. Ningbo Innolux Optoelectronics Ltd. Foshan Innolux Optoelectronics Ltd. Ningbo Innolux Display Ltd. Nanjing Innolux Technology Ltd. Nanjing Innolux Optoelectronics Ltd. Shanghai Innolux Optoelectronics Ltd. Foshan Innolux Logistics Ltd. GIO (Maanshan) Optoelectronics Co., Ltd. Shenzhen PixinLED Technology Co.,Ltd. Ningbo CarUX Technology Ltd.	Manufacturing and selling of LCD backend module and related components Manufacturing and selling of electronic paper Manufacturing and selling of LCD backend module and related components Manufacturing and selling of LCD backend module and related components Manufacturing and selling of LCD backend module and related components Purchases and sales of monitor-related components Manufacturing and selling of LCD backend module and related components Manufacturing and selling of LCD backend module and related components Warehousing services Manufacturing Development and selling of MINI LED Manufacturing and selling of LCD backend module and related components	$ 4,567,400 308,838 8,633,500 10,666,550 4,456,000 58,485 4,344,600 584,850 41,775 278,500 42,943 1,202,404	2 2 2 2 2 2 2 2 2 2 3 3	$ 3,534,492 55,720 205,117 10,666,550 4,456,000 58,485 4,011,391 - 41,775 278,500 - -	- $ - - - - - - - - - - -	- $ - - - - - - - - - - -	$ 3,534,492 55,700 205,117 10,666,550 4,456,000 58,485 4,011,391 - 41,775 278,500 - -	$ 128,835 ( 102,203) 1,027,129 976,742 327,910 ( 2,438) 80,659 117,205 4,065 116 ( 400) ( 165,804)	100 3 100 100 100 100 100 100 100 70 100 100	$ 128,835 - 1,027,129 978,382 327,910 ( 2,438) 80,659 117,205 4,065 85 ( 400) ( 165,275)	$ 11,654,151 18,455 21,187,465 21,366,354 5,501,646 597,737 5,432,180 1,957,847 91,299 68,255 38,910 1,038,774	$ 1,032,908 - 4,807,883 - - - - - - - - -	2.1 2.2 2.3 2.3 2.3 2.4 2.4 2.5 2.6 2.7

Table 8, Page 1

Investee in Mainland China	Main business activities	Paid-in capital (Note A)	Amount remitted from Taiwan to Mainland China/Amount remitted back to Taiwan for the nine-month period ended September 30,2021	Amount remitted from Taiwan to Mainland China/Amount remitted back to Taiwan for the nine-month period ended September 30,2021	Net income of investee for the nine-month period ended September 30, 2021	Ownership held by the Company (direct or indirect)	Investment income (loss) recognized by the Company for the nine- month period ended September 30, 2021(Note B)	Book value of investments in Mainland China as of September 30,2021	Accumulated amount of investment income remitted back to Taiwan as of September 30,2021
			Remitted to Mainland China	Remitted back to Taiwan
Ningbo Innolux Electronics Ltd. R&D, manufacturing and selling of LCD backend module and related components Ceiling on investments in Mainland China: Companyname Accumulated amount of remittance from Taiwan to Mainland China as of September 30,2021		$ 66,003 1 $ - Investment amount approved by the Investment Commission of the Ministry of Economic Affairs (MOEA)	88,370 $ - $ $ 88,338 Ceiling on investments in Mainland China imposed by the Investment Commission of MOEA		($ 1,299)	61	($ 1,332)	$ 102,073	$ -
Innolux Corporation	23,860,235 $	30,168,001 $	(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 nine-month period ended September 30, 2021 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 Limited 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 Shenzhen PixinLED Technology Co.,Ltd. and Ningbo CarUX Technology Ltd. Except for the investment via the holding companies in Mainland China, other investments shall not be approved by Investment Commission of the Ministry of Economic Affairs.

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

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

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

Table 8, Page 2

AI assistant

INX — Interim / Quarterly Report 2021

52330_rns_2021-11-15_e6d5aab0-8b3b-4194-a842-80eb93e86e2e.pdf

INNOLUX CORPORATION AND SUBSIDIARIES

INDEPENDENT AUDITORS’ REVIEW REPORT

Introduction

Scope of Review

Conclusion

PricewaterhouseCoopers, Taiwan

INNOLUX CORPORATION AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS SEPTEMBER 30, 2021, DECEMBER 31, 2020 AND SEPTEMBER 30, 2020

INNOLUX CORPORATION AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS

SEPTEMBER 30, 2021, DECEMBER 31, 2020 AND SEPTEMBER 30, 2020

INNOLUX CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

FOR THE THREE-MONTH AND NINE-MONTH PERIODS ENDED SEPTEMBER 30, 2021 AND 2020

INNOLUX CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

FOR THE THREE-MONTH AND NINE-MONTH PERIODS ENDED SEPTEMBER 30, 2021 AND 2020

INNOLUX CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

INNOLUX CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS

FOR THE NINE-MONTH PERIODS ENDED SEPTEMBER 30, 2021 AND 2020

INNOLUX CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS

FOR THE NINE-MONTH PERIODS ENDED SEPTEMBER 30, 2021 AND 2020

INNOLUX CORPORATION AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

FOR THE NINE-MONTH PERIODS ENDED SEPTEMBER 30, 2021 AND 2020

1. HISTORY AND ORGANIZATION

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

(4) Employee benefits

(5) Income tax

(6) Dividends

5. CRITICAL ACCOUNTING JUDGMENTS, 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

(6) Inventories

(7) Investments accounted for under the equity method

(8) Property, plant and equipment

(10) Investment property

(11) Intangible assets

(12) Other payables

(13) Bonds payable

- (14) Long term borrowings

(15) Pensions

－ (b) Employee stock options InnoCare Company

(17) Provisions-current

A. Warranty

B. Litigation and others

(18) Share capital

C. Treasury shares

(19) Capital surplus

2021

(20) Retained earnings

(21) Other equity items

(23) Interest income

(25) Other gains and losses

(26) Finance costs

(28) Employees’ compensation and directors’ remuneration

(29) Income tax

A. Income tax expense

(30) Earnings (loss) per share

(31) Supplemental cash flow information

(32) 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. Payables to related parties

INX Interim / Quarterly Report 2021

`－` (b) Employee stock options InnoCare Company