INNOLUX CORPORATION AND SUBSIDIARIES

CONSOLIDATED FINANCIAL STATEMENTS AND

INDEPENDENT AUDITORS’ REVIEW REPORT March 31, 2022 AND 2021

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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 March 31, 2022 and 2021, and the related consolidated statements of comprehensive income, of changes in equity and of cash flows for the three-month periods then ended, and notes to the consolidated financial statements, including a summary of significant accounting policies. Management is responsible for the preparation and fair presentation of these consolidated financial statements in accordance with the “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 and the reports of other auditors (please refer to the Other matter section), nothing has come to our attention that causes us to believe that the accompanying consolidated financial statements do not present fairly, in all material respects, the consolidated financial position of the Group as at March 31, 2022 and 2021, and of its consolidated financial performance and its consolidated cash flows for the three-month periods then ended in accordance with the “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.

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Other matter - Reference to the reviews of other auditors

We did not review the financial statements of certain subsidiaries of the Company for the three-month period ended March 31, 2022, which were reviewed by other auditors. Therefore, our report expressed herein, insofar as it relates to the amounts and Note 13 included in respect of these subsidiaries, is based solely on the reports of the other auditors. Total assets of these subsidiaries included in the Group's consolidated financial statements amounted to NT$1,626,180 thousand, constituting 0.3% of the consolidated total assets of the Group as at March 31, 2022, and sales revenue of these subsidiaries included in the Group's consolidated financial statements amounted to NT$465,156 thousand, constituting 0.7% of the consolidated total sales revenue of the Group for the three-month period ended March 31, 2022.

PricewaterhouseCoopers, Taiwan May 11, 2022

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

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INNOLUX CORPORATION AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

MARCH 31, 2022, DECEMBER 31, 2021 AND MARCH 31, 2021

(Expressed in thousands of New Taiwan dollars) (The consolidated balance sheets as of March 31, 2022 and 2021 are reviewed, not audited)

Assets	Notes	March 31, 2022	December 31, 2021 March 31, 2021
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
	6(1) 6(2) 6(4) 6(5) 7	$ 27,230,161 13,918,874 45,069,711 54,907,287 1,469,137	$ 28,667,746 $ 23,622,758 17,358,003 18,819,889 22,633,195 21,138,572 60,528,170 55,699,382 1,351,375 2,035,448 2,378,705 3,091,498 38,278,221 30,494,831 4,345,185 2,810,995 280,623 170,157 175,821,223 157,883,530 4,326,863 3,586,898
	6(2) 6(6) 9 8	1,933,497 41,541,332 4,113,021 409,591
		190,592,611

	6(2) 6(3)	3,795,071 6,639,927
1517 Financial assets at fair value through other comprehensive income - non-current			9,848,126 10,836,825
1535 Financial assets at amortized 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(4) 6(7)	58,244,849 1,546,887	74,224,423 25,749,822 1,442,684 1,525,211 162,607,908 173,072,628 5,146,768 5,447,113 471,655 492,497 17,520,594 17,516,564 3,412,138 6,077,572 12,697,208 1,647,837 291,698,367 245,952,967 $ 467,519,590 $ 403,836,497
	6(8), 7 and 8 6(9) 6(10) 6(11) 6(8)，8 and 9	160,700,466 5,205,844 464,708 17,523,477 3,416,448 18,594,484
		276,132,161
		$ 466,724,772

(Continued)

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INNOLUX CORPORATION AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

MARCH 31, 2022, DECEMBER 31, 2021 AND MARCH 31, 2021

(Expressed in thousands of New Taiwan dollars)

(The consolidated balance sheets as of March 31, 2022 and 2021 are reviewed, not audited)

Notes	March 31, 2022	December 31, 2021 March 31, 2021	December 31, 2021 March 31, 2021

6(12) 6(2) 7 6(13) and 7 6(18) and 9 6(14)(15)	$ 170,000 1,066,142	$ —	$ —
		198,896 52,321,478 2,190,308 36,514,228 2,196,227 7,541,182 639,969 8,770,385 6,180,834	3,706,585 43,629,437 1,874,716 26,871,590 1,674,409 6,246,277 361,752 19,361,499 5,874,436
	51,399,124 2,446,359
	34,320,030
	1,965,316
	7,153,586
	657,560
	8,770,723
	6,381,040
	114,329,880	116,553,507	109,600,701

6(14) 6(15) 6(16)	— 35,591,558 1,748,021 4,374,582 3,818,004	— 35,592,540 2,003,404 4,391,331 4,181,877	2,726,920 25,392,191 2,206,719 4,782,123 593,657
	45,532,165	46,169,152	35,701,610
	159,862,045	162,722,659	145,302,311

6(19)	105,596,201 —		99,404,332 3,078,864 101,372,977 7,870,713 7,325,437 40,763,133 (1,481,211)
		105,596,201 —
6(20) 6(21)	103,290,753	103,287,482

	8,062,551	8,062,551
	6,059,671 86,462,949	6,059,671 84,545,631
6(22)	(3,075,601)	(3,204,136)
	306,396,524 466,203	304,347,400	258,334,245 199,941
		449,531
	306,862,727	304,796,931	258,534,186
	$ 466,724,772	$ 467,519,590	$ 403,836,497

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

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INNOLUX CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME FOR THE THREE-MONTH PERIODS ENDED MARCH 31, 2022 AND 2021

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

Items	Notes 6(23) and 7 6(6)(28) and 7 6(28) 6(24) 6(25) 6(26) 6(27) 6(7) 6(30)	2022 2021 $ 69,886,018 $ 83,838,696 (61,314,211) (62,212,196) 8,571,807 21,626,500 (956,070) (1,237,400) (2,083,053) (1,983,273) (3,290,060) (3,525,088) (6,329,183) (6,745,761) 2,242,624 14,880,739 222,512 97,418 909,363 481,300 (815,446) (2,627,185) (224,817) (267,279) (4,897) 32,865 86,715 (2,282,881) 2,329,339 12,597,858 (426,907) (1,030,840) $ 1,902,432 $ 11,567,018
4000 Sales revenue 5000 Operating costs 5900 Net operating margin Operating expenses 6100 Selling expenses 6200 General and administrative expenses 6300 Research and development expenses 6000 Total operating expenses 6900 Operating profit Non-operating income and expenses 7100 Interest income 7010 Other income 7020 Other gains and losses 7050 Finance costs 7060 Share of profit of associates and joint ventures accounted for under equity method 7000 Total non-operating income and expenses 7900 Profit before income tax 7950 Income tax expense 8200 Profit for the period

(Continued)

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INNOLUX CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME FOR THE THREE-MONTH PERIODS ENDED MARCH 31, 2022 AND 2021

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

8311 8316	Items Other comprehensive income (net) Components of other comprehensive (loss) income that will not be reclassified to profit or loss Remeasurement of defined benefit plans Unrealized (losses) gains on financial assets at fair value through other comprehensive income	Notes 6(16) 6(22)	2022 2021 $ 34,162 $ — (3,244,592) 6,070,351
8320	Share of other comprehensive income of associates and joint ventures accounted for using equity method, components of other comprehensive income that will not be reclassified to profit or loss	6(7)(22)	22,356 —
8349 8310 8361 8370 8360 8300	Income tax related to components of other comprehensive income that will not be reclassified to profit or loss		466,189 (848,227) (2,721,885) 5,222,124 2,849,744 (567,637) 30,305 (5,443) 2,880,049 (573,080) $ 158,164 $ 4,649,044 $ 2,060,596 $ 16,216,062 $ 1,889,989 $ 11,571,419 $ 12,443 $ (4,401) $ 2,045,853 $ 16,220,740 $ 14,743 $ (4,678)
	Components of other comprehensive (loss) income that will not be reclassified to profit or loss Components of other comprehensive income (loss) that will be reclassified to profit or loss Financial statements translation differences of foreign operations Share of other comprehensive loss of associates and joint ventures accounted for under equity method Components of other comprehensive income (loss) that will be reclassified to profit or loss Other comprehensive income for the period, net of tax Total comprehensive income for the period Profit attributable to: Owners of the parent Non-controlling interest Other comprehensive income attributable to: Owners of the parent Non-controlling interest Earnings per share (in dollars) Basic earnings per share Diluted earnings per share	6(22) 6(7)(22) 6(31)
8500

8610 8620
8710
8720

9750			$ 0.18 $ 1.15 $ 0.18 $ 1.10
9850

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

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INNOLUX CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

FOR THE THREE-MONTH PERIODS ENDED MARCH 31, 2022 AND 2021

(Expressed in thousands of New Taiwan dollars)

(Reviewed, not audited)

2021	Notes					Equity attr	utable to owners of	the parent				Non-controlling interests Total
		Share	Capital		Capital surplus		Retained Earnings		Other EquityInterest		Total
		Common stock		Certificate of entitlement to new shares from convertible bond		Legal reserve	Special reserve	Unappropriated retained earnings	Financial statements translation differences of foreign operations	Unrealized gains (losses) from financial assets measured at fair value through other comprehensive income

Balance at January 1		$97,110,720		$ 2,293,612	$99,707,996	$7,870,713	$7,325,437	$29,120,853	$(8,879,169)	$ 2,819,498	$237,369,660	$ 197,386 $237,567,046
Profit for the period Other comprehensive income (loss) for the period Total comprehensive income (loss) Recognition of change in equity of associates in proportion to the Group's ownership	6(22) 6(20)	— —		— —	— —	— —	— —	11,571,419 —	— (572,803)	— 5,222,124	11,571,419 4,649,321	(4,401) 11,567,018 (277) 4,649,044 (4,678) 16,216,062 — 1,555
		—		—	—	—	—	11,571,419	(572,803)	5,222,124	16,220,740
		—		—	1,555	—	—	—	—	—	1,555
Conversion of convertible bonds	6(19)(20)	2,293,612		785,252	1,662,640	—	—	—	—	—	4,741,504	— 4,741,504
Recognition of changes in ownership interests in subsidiaries	6(20)	—		—	—	—	—	—	—	—	—	7,233 7,233
Disposal of investments in equity instruments measured at fair value through other comprehensive income	6(3)(22)	—		—	—	—	—	70,861	—	(70,861)	—	— —
Others Balance at March 31 2022 Balance at January 1 Profit for the period Other comprehensive income (loss) for the period Total comprehensive income (loss) Recognition of change in equity of associates in proportion to the Group's ownership Recognition of changes in ownership interests in subsidiaries	6(20) 6(22) 6(20) 6(20)	—		—	786	—	—	—	—	—	786	— 786 $ 199,941 $258,534,186 $ 449,531 $304,796,931 12,443 1,902,432 2,300 158,164 14,743 2,060,596 — 247 1,929 2,248
		$99,404,332		$ 3,078,864	$101,372,977	$7,870,713	$7,325,437	$40,763,133	$(9,451,972)	$ 7,970,761	$258,334,245
		$105,596,201		$ —	$103,287,482	$8,062,551	$6,059,671	$84,545,631	$(9,862,144)	$ 6,658,008	$304,347,400
		— —		— —	— —	— —	— —	1,889,989 27,329	— 2,877,749	— (2,749,214)	1,889,989 155,864
		—		—	—	—	—	1,917,318	2,877,749	(2,749,214)	2,045,853
		— —		— —	247 319	— —	— —	— —	— —	— —	247 319
Others	6(20)	—		—	2,705	—	—	—	—	—	2,705	— 2,705
Balance at March 31		$105,596,201		$ —	$103,290,753	$8,062,551	$6,059,671	$86,462,949	$(6,984,395)	$ 3,908,794	$306,396,524	$ 466,203 $306,862,727

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

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INNOLUX CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE THREE-MONTH PERIODS ENDED MARCH 31, 2022 AND 2021

(Expressed in thousands of New Taiwan dollars)

(Reviewed, not audited)

	Notes 6(28) 6(28) 6(7) 6(26) 6(27) 6(24) 6(25)	2022 2021
CASH FLOWS FROM OPERATING ACTIVITIES
Profit before tax Adjustments Adjustments to reconcile profit (loss) Depreciation and amortization Net loss on financial assets or liabilities at fair value through profit or loss Compensation cost of share-based payments Share of loss (profit) of associates and joint ventures accounted for under equity method Loss (gain) on disposal of property, plant and equipment Gain on lease modification Interest expense Interest income Dividend income Foreign exchange gain 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		$ 2,329,339 $ 12,597,858
		8,525,280 9,068,942 582,612 1,881,445 2,248 7,233 4,897 (32,865) 42,000 (3,793) — (9) 224,817 267,279 (222,512) (97,418) (201,810) (56,936) (492,953) (46,628) 1,045,343 1,130,585 5,620,881 (5,817,466) (117,762) 188,709 612,266 (65,935) (3,263,110) 370,439 (5,027,129) 308,866 (126,834) (7,029) (922,354) (2,194,261) 256,051 153,785 (2,534,639) 941,616 (387,596) 93,294 (154,957) 466,831 49,255 33,194 5,843,333 19,187,736 (544,539) (154,731) 5,298,794 19,033,005

(Continued)

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INNOLUX CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE THREE-MONTH PERIODS ENDED MARCH 31, 2022 AND 2021

(Expressed in thousands of New Taiwan dollars)

(Reviewed, not audited)

CASH FLOWS FROM INVESTING ACTIVITIES	Notes	2022 2021
	6(3) 6(32) 6(11)	(19,775) (18,847,885) 3,252,996 99,638 — 127,315 (12,463,452) 21,535,765 — (25,826,994) 6,908,915 — 661,351 — (467,589) (24,292) (80,000) (250,000) (5,197,045) (3,469,955) 22,568 8,499 (4,300) (1,765) 86,558 57,375 201,810 56,936 (7,097,963) (26,535,363) 170,000 — — 5,000,000 (9,833) (16,500) (215,964) (182,955) (161,552) (6,808) (2,068) — 2,705 786 (216,712) 4,794,523 578,296 (201,490) (1,437,585) (2,909,325) 28,667,746 26,532,083 $ 27,230,161 $ 23,622,758
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 Proceeds from disposal of financial assets measured at fair value through other comprehensive income Decrease (increase) in financial assets at amortized cost - current
Acquisitions of financial assets at amortized cost - non- current
Proceeds from disposal of financial assets at amortized cost
Proceeds from repayments of financial assets at amortized cost
Increase in refundable deposits
Increase in investment accounted for under equity method
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 short-term borrowings
Proceeds from long-term borrowings Repayments of long-term borrowings Interest paid Repayment of the principal portion of lease liabilities
Net change of non-controlling interests
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 year Cash and cash equivalents at end of year

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

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INNOLUX CORPORATION AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

FOR THE THREE-MONTH PERIODS ENDED MARCH 31, 2022 AND 2021

(Expressed in thousands of New Taiwan dollars, except as otherwise indicated) (Reviewed, not audited)

1. HISTORY AND ORGANIZATION

(1) Innolux Corporation (the “Company”) was organized on January 14, 2003 under the Act for Establishment and Administration of Science Parks in Republic of China (R.O.C.). The Company was listed on the Taiwan Stock Exchange Corporation (the “TSEC”) in October 2006. The Company merged with TPO Displays Corporation and Chi Mei Optoelectronics Corporation on March 18, 2010, with the Company as the surviving entity.
(2) The Company and its subsidiaries (the “Group”) engage in the research, development, design, manufacture and sales of TFT-LCD panels, modules and monitors of LCD, color filter, and low temperature poly-silicon TFT-LCD.

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

STATEMENTS AND PROCEDURES FOR AUTHORIZATION

These consolidated financial statements were reported to the Board of Directors on May 11, 2022.

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 2022 are as follows:

follows:
	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	January 1, 2022
contract’
Annual improvements to IFRS Standards 2018-2020	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.

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

the Group

None.

(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:

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	Effective date by
	International Accounting
New Standards,Interpretations and Amendments	Standards Board
Amendments to IFRS 10 and IAS 28, ‘Sale or contribution of assets	To be determined by
between an investor and its associate or joint venture’	International Accounting
	Standards Board
IFRS 17, ‘Insurance contracts’	January 1, 2023
Amendments to IFRS 17, 'Insurance contracts'	January 1, 2023
Amendments to IFRS 17, 'Initial application of IFRS 17 and IFRS 9 -	January 1, 2023
comparative information'
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.

(1) Compliance statement

A. The consolidated financial statements of the Group have been prepared in accordance with the “Regulations Governing the Preparation of Financial Reports by Securities Issuers” and 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, 2021.

(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.

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(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, 2021.
B. Subsidiaries included in the consolidated financial statements:

			Ownership (%)	Ownership (%)	Ownership (%)
Name of Investor	Name of Subsidiary	Main Business Activities	March 31, 2022	December 31,2021	March 31, 2021 Description
Innolux Corporation	Innolux Holding Limited Keyway Investment Management Limited Landmark International Ltd. Toppoly Optoelectronics (B.V.I.) Ltd. Innolux Hong Kong Holding Limited Leadtek Global Group Limited Yuan Chi Investment Co., Ltd. InnoJoy Investment Corporation Innolux Japan Co., Ltd. Innolux Singapore Holding Pte. Ltd. InnoCare Optoelectronics Corporation GIO Optoelectronics Corp.	Investment holdings Investment holdings Investment holdings Investment holdings Investment holdings Distribution company Investment company Investment company Investment, R&D and distribution company Investment holdings Investment, R&D, manufacturing and distribution company Investment, R&D, manufacturing and distribution company	100 100 100 100 100 — 100 100 54 100 59 76	100 100 100 100 100 — 100 100 54 100 59 76	100 — 100 — 100 — 100 — 100 — 100 (a) 100 — 100 — 54 — 100 — 100 (b) 63 (c)

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			Ownership (%)	Ownership (%)	Ownership (%)
Name of Investor	Name of Subsidiary	Main Business Activities	March 31, 2022	December 31,2021	March 31, 2021 Description
Innolux Corporation Innolux Holding Limited Keyway Investment Management Limited Landmark International Ltd. Toppoly Optoelectronics (B.V.I.) Ltd. Innolux Hong Kong Holding Limited InnoJoy Investment Corporation Innolux Japan Co., Ltd. Innolux Singapore Holding Pte. Ltd. Rockets Holding Limited	INStek Corporation Rockets Holding Limited Suns Holding Ltd Lakers Trading Limited Foshan Innolux Logistics Ltd. Ningbo Innolux Optoelectronics Ltd. Foshan Innolux Optoelectronics Ltd. Ningbo Innolux Display Ltd. Toppoly Optoelectronics (Cayman) Ltd. Innolux Hong Kong Limited Innolux Japan Co., Ltd. CarUX Holding Limited Inno Capital Corporation Innolux USA, Inc. INNOLUX OPTOELECTRONICS INDIA PRIVATE LIMITED INNOLUX OPTOELECTRONICS PHILIPPINES CORP. INNOLUX OPTOELECTRONICS MALAYSIA SDN. BHD. Stanford Developments Limited	R&D, manufacturing and distribution company Investment holdings Investment holdings Distribution company Warehousing company Processing company Processing company Processing company Investment holdings Distribution company Investment, R&D and distribution company Investment holdings Investment company Distribution company Distribution company Manufacturing and distribution company Manufacturing and distribution company Investment holdings	40 100 100 — 100 100 100 100 100 100 46 100 100 100 100 100 — 100	40 100 100 — 100 100 100 100 100 100 46 100 100 100 100 100 — 100	— (d) 100 — 100 — 100 (f) 100 — 100 — 100 — 100 — 100 — 100 — 46 — 100 — — (e) 100 — 100 — 100 — 100 (g) 100 —

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			Ownership (%)	Ownership (%)	Ownership (%)
Name of Investor	Name of Subsidiary	Main Business Activities	March 31, 2022	December 31,2021	March 31, 2021 Description
Rockets Holding Limited Suns Holding Ltd Toppoly Optoelectronics (Cayman) Ltd. CarUX Holding Limited CARUX TECHNOLOGY PTE. LTD. Innolux Optoelectronics Hong Kong Holding Limited Innolux Europe B.V. Stanford Developments Limited Ningbo Innolux Optoelectronics Ltd. Innocom Technology (Shenzhen) Co., Ltd. InnoCare Optoelectronics Corporation	Nets Trading Ltd. Warriors Technology Investments Ltd Nanjing Innolux Technology Ltd. Nanjing Innolux Optoelectronics Ltd. CARUX TECHNOLOGY PTE. LTD. Innolux Optoelectronics Hong Kong Holding Limited Innolux Europe B.V. CarUX Technology Inc Shanghai Innolux Optoelectronics Ltd. Innolux Technology Germany GmbH Innocom Technology (Shenzhen) Co., Ltd. Ningbo CarUX Technology Ltd. Shenzhen PixinLED Technology Co., LTD. InnoCare Optoelectronics Japan Co., Ltd. InnoCare Optoelectronics USA, INC. Ningbo Innolux Electronics Ltd.	Investment company Investment company Distribution company Processing company Investment and distribution company Investment holdings Investment, distribution, and R&D testing company R&D, manufacturing and distribution company Processing company Testing and maintenance company Processing company Processing company R&D and distribution company Distribution company Distribution company Manufacturing and distribution company	100 100 100 100 100 100 100 100 100 100 100 100 — 100 100 100	100 100 100 100 100 100 100 100 100 100 100 100 — 100 100 100	100 — 100 — 100 — 100 — 100 — 100 — 100 — 100 — 100 — 100 — 100 — 100 — 100 (h) 100 — 100 — 100 —

~15~

Ownership (%)

Name of Investor	Name of Subsidiary	Main Business Activities	March 31, 2022	December 31,2021	March 31, 2021 Description
InnoCare Optoelectronics Corporation GIO Optoelectronics Corp.	Innocare Optoelectronics Europe B.V. Double Star Inc. GIO (Maanshan) Optoelectronics Co., Ltd.	After-sales service company Investment holdings Processing company	100 100 100	100 100 100	100 — 100 — 100 —

(a) In the second quarter of 2021, Leadtek Global Group Limited had completed liquidation and dissolution.
(b) The Board of Directors of the Company resolved to implement InnoCare Optoelectronics Corporation’s (“InnoCare Company”) listing plan by releasing its equity interests in the subsidiary in the amount of 10,500 thousand shares in the third quarter of 2021. The Company had released 10,500 thousand shares of InnoCare Company and received proceeds amounting to $240,786.
(c) 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(14) for further information. The Company repurchased 3,575 thousand shares of outstanding common stock of GIO Company, in the fourth quarter of 2021, and paided fee amounting to $37,720.
(d) 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.
(e) Inno Capital Corporation was established in the third quarter of 2021 and was included in the consolidated financial statements since the date of establishment.
(f) In the fourth quarter of 2021, Lakers Trading Limited had completed liquidation and dissolution.
(g) In the fourth quarter of 2021, INNOLUX OPTOELECTRONICS MALAYSIA SDN. BHD. had completed liquidation and dissolution.
(h) The Company's subsidiary, Innocom Technology (Shenzhen) Co., LTD., sold 100% equity of Shenzhen PixinLED Technology Co., LTD., in the fourth quarter of 2021.
C. Subsidiaries not included in the consolidated financial statements: None.
D. Adjustments for subsidiaries with different balance sheet dates: None.
E. The restrictions on fund remittance from subsidiaries to the parent company: None.
F. Subsidiaries that have non-controlling interests that are material to the Group: None.

(4) 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 2021 consolidated financial statements.

~16~

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) Dividends

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

5. CRITICAL ACCOUNTING JUDGEMENTS, ESTIMATES AND KEY SOURCES OF

ASSUMPTION UNCERTAINTY

For more information, please refer to Note 5 of the consolidated financial statements for the year ended December 31, 2021.

6. DETAILS OF SIGNIFICANT ACCOUNTS

(1) Cash and cash equivalents

Cash and cash equivalents
Cash on hand, demand deposits and checking accounts	March 31,2022	December 31,2021	March 31,2021
	$ 22,286,486	$ 22,769,902 $ 17,616,863
Time deposits	4,943,675	5,897,844	6,005,895
	$ 27,230,161	$ 28,667,746 $ 23,622,758

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	March 31,2022	December 31,2021	March 31,2021
Current items
Financial assets mandatorily measured at fair value through profit or loss
Beneficiary certificates	$ 13,911,723	$ 13,903,225 $ 10,002,625
Structured products	—	3,269,530 8,813,900
Forward foreign exchange contracts	7,151	54,965 3,364
Foreign exchange swap contracts	—	130,283	—
	$ 13,918,874	$ 17,358,003	$ 18,819,889
Non-current items Financial assets mandatorily measured at fair value through profit or loss

Listed stocks Unlisted stocks	$ 1,082,849	$ 1,224,882 $ 1,248,434
	2,652,073	3,063,428	2,338,464
Financial products	60,149	38,553	—
	$ 3,795,071	$ 4,326,863	$ 3,586,898

~17~

Liabilities	March 31,2022	December 31,2021	March 31,2021
Current items
Financial liabilities held for trading
Convertible bonds derivative instruments Forward foreign exchange contracts Foreign exchange swap contracts	$ —	$ —	$ 3,265,361
	534,915 531,227	198,896 —	388,690 52,534
	$ 1,066,142	$ 198,896	$ 3,706,585

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 March 31, 2021 was $1,259,091, and all of receivables were received in the fourth quarter of 2021.
B. The Company entered into a ‘Share Issuance and Asset Purchase Agreement’ with Nanjing Huadong Electronic Information & Technology Co., Ltd (It was renamed as TPV Technology
Co.,ltd. in the second quarter of 2021) (“TPV Technology”) during the year ended December 31, 2021. Refer to Note 9(2) for relevant information.
C. The non-hedging derivative financial assets and liabilities transaction information are as follows:

	March 31,2022	March 31,2022	December 31,2021	December 31,2021
Derivative financial assets and liabilities	Contract Amount (Notional Principal) (in thousands)	Contract Period	Contract Amount (Notional Principal) (in thousands) Contract Period
Current items	RMB(sell) $ 575,000 TWD(buy) 2,562,966 USD(sell) 50,000 JPY(buy) 5,887,395 JPY(sell) 1,827,250 USD(buy) 15,000 TWD(sell) 5,641,520 JPY(buy) 23,500,000 EUR(sell) 12,000 USD(buy) 13,413 HKD(sell) 78,074 USD(buy) 9,990 USD(sell) 940,000 TWD(buy) 26,546,368
Forward foreign exchange contracts		2022/03-2022/04	RMB(sell) $ 1,020,844	2021/12-2022/01
		2022/03-2022/04 2022/03-2022/04 2022/03-2022/04 2022/03-2022/04 2022/03-2022/04 2022/01-2022/07 2022/01-2022/07	USD(buy) 160,000
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
		2022/02-2022/06
		2022/02-2022/06
		2022/02-2022/06
		2022/02-2022/06
		2022/02-2022/05
		2022/02-2022/05
	USD(sell) 795,000 TWD(buy) 22,194,893	2021/12-2022/07 2021/12-2022/07

~18~

	March 31, 2021	March 31, 2021
Derivative financial assets and liabilities	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	RMB(sell) $ 98,201 2021/03-2021/04 USD(buy) 15,000 2021/03-2021/04 TWD(sell) 4,723,485 2021/01-2021/06 JPY(buy) 18,000,000 2021/01-2021/06 TWD(sell) 854,925 2021/03-2021/04 USD(buy) 30,000 2021/03-2021/04 USD(sell) 7,254 2021/01-2021/05 EUR(buy) 6,000 2021/01-2021/05 USD(sell) 190,000 2021/01-2021/06 JPY(buy) 20,097,860 2021/01-2021/06 USD(sell) 102,500 2021/01-2021/04 RMB(buy) 665,297 2021/01-2021/04 USD(sell) 260,000 2021/03-2021/04
	TWD(buy) 7,403,379 2021/03-2021/04
Foreign exchange swap contracts	USD(sell) TWD(buy)	280,000 2021/03-2021/04 7,930,843 2021/03-2021/04

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

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

	March 31,2022	December 31,2021	March 31,2021
Non-current items
Equity instruments
Listed stocks Unlisted stocks	$ 6,609,203	$ 9,818,232	$ 10,800,739
	30,724	29,894	36,086
	$ 6,639,927	$ 9,848,126 $ 10,836,825

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 $0 and $121,939 of stocks at fair value and resulted in cumulative gains amounting to $0 and $70,861 on disposal which were recognized in unappropriated retained earnings during the three-month period ended March 31, 2022 and 2021.

~19~

C. For information on other comprehensive income for fair value change recognized by the Group for the three-month period ended March 31, 2022 and 2021, please refer to Note 6(22) “Other equity”.

(4) Financial assets at amortized cost

	March 31,2022	December 31,2021	March 31,2021
Current items
Principal guaranteed financial assets	$ 37,517,176	$ 20,637,496	$ 21,138,572
Corporate bonds	2,686,285 4,866,250	1,995,699 —	— —
Fixed income financial products
	$ 45,069,711	$ 22,633,195	$ 21,138,572
Non-current items
Principal guaranteed financial assets	$ 52,611,976	$ 63,343,505	$ 25,749,822
Corporate bonds	5,136,867 496,006	5,697,755 5,183,163	— —
Fixed income financial products
	$ 58,244,849	$ 74,224,423	$ 25,749,822

A. The Group recognized $180,518 and $64,531 of interest income arising from the financial assets at amortized cost for the three-month periods ended March 31, 2022 and 2021, 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

	March 31,2022	December 31,2021	March 31,2021
Notes receivable Accounts receivable	$ 99,059	$ 75,311	$ 131,615
	55,070,840	60,715,469	55,777,186
	55,169,899	60,790,780	55,908,801
Less: Allowance for uncollectible accounts	(262,612)	(262,610)	(209,419)
	$ 54,907,287	$ 60,528,170	$ 55,699,382
A. The aging analysis of accounts receivable and notes March 31,2022 Not past due $ 52,330,053 Up to 60 days 1,800,582 61 to 180 days 732,067 Over 180 days 307,197 $ 55,169,899		receivable is as follows:
	March 31,2022	December 31,2021	March 31,2021
	$ 52,330,053	$ 56,887,325 $ 54,749,639
	1,800,582 732,067 307,197	3,418,512 863,492 245,769 137,200 239,174 158,470
	$ 55,169,899	$ 60,790,780 $ 55,908,801

The above aging analysis was based on past due date.

~20~

B. As of March 31, 2022, December 31, 2021 and March 31, 2021, accounts receivable and notes receivable were all from contracts with customers. As of January 1, 2021, the balance of receivables from contracts with customers amounted to $50,107,177.

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

(6) Inventories

Inventories
	March 31,2022	December 31,2021	March 31,2021
Raw materials and supplies Work in progress Finished goods	$ 9,001,293	$ 8,785,532	$ 6,542,402
	15,029,651	14,575,596	14,218,213
	17,510,388	14,917,093	9,734,216
	$ 41,541,332	$ 38,278,221	$ 30,494,831

For the three-month period ended March 31, 2022 and 2021, the Group recognized cost of goods sold for inventories that have been sold at $61,171,151 and $62,028,016 and recognized net inventory loss at $143,060 and $184,180 due to write down of cost of scrap inventories to net realizable value, respectively.

(7) Investments accounted for under the equity method

realizable value, respectively. Investments accounted for under	the equity method
	March 31,2022	December 31,2021	March 31,2021
Ampower Holding Ltd.	$ 827,670	$ 801,157	$ 829,638
FI Medical Device Manufacturing Co., Ltd.	340,122	318,640	420,863
PanelSemi Corporation	225,291	243,661	250,000
Others	153,804	79,226	24,710
	$ 1,546,887	$ 1,442,684	$ 1,525,211

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

below:
(Loss) profit for the period from continuing operations Other comprehensive income (loss) - net of tax Total comprehensive income	For the three-monthperiods ended March 31,
	2022 2021 $ (4,897) $ 32,865 52,661 (5,443) $ 47,764 $ 27,422

~21~

(8) Property, plant and equipment

Cost: Land Buildings Machinery and equipment Other equipment			2022
	At January1	Additions	Disposals	Transfer, net exchange differences and others At March 31

	$ 4,093,726	$ —	$ —	$ — $ 4,093,726
	205,568,161 537,561,904 50,862,400 798,086,191	141,460 866,765 2,861 1,011,086	(146) (354,573) (964,398)	1,515,009 207,224,484 3,363,099 541,437,195 1,213,191 51,114,054
Accumulated depreciation and impairment: Buildings Machinery and equipment Other equipment Unfinished construction and equipment under acceptance			(1,319,117)	6,091,299 803,869,459

	(147,599,956) (453,390,220) (44,323,458) (645,313,634) 9,835,351	(2,176,383) (5,095,448) (1,083,695) (8,355,526) 4,528,866	34 319,765 957,285	(644,037) $ (150,420,342) (1,349,626) (459,515,529) (189,697) (44,639,565) (2,183,360) (654,575,436)
			1,277,084
			—	(2,957,774) 11,406,443
	$ 162,607,908			$ 160,700,466

Unfinished construction and equipment under acceptance	(645,313,634) 9,835,351 $ 162,607,908	(8,355,526) 4,528,866	1,277,084 —	(2,183,360) (654,575,436) (2,957,774) 11,406,443 $ 160,700,466
Cost: Land Buildings Machinery and equipment Other equipment			2021
	At January1 $ 4,093,726 203,938,280 526,646,694 49,731,327 784,410,027 (139,325,425) (436,793,758) (42,804,109) (618,923,292) 13,414,940	Additions	Disposals $ — (2,599) (137,437) (232,613) (372,649) 2,599 136,662 228,682 367,943 —	Transfer, net exchange differences and others At March 31 $ — $ 4,093,726 187,698 204,179,836 2,653,904 529,608,342 845,468 50,344,524 3,687,070 788,226,428 83,235 (141,375,593) 140,651 (442,116,405) 76,805 (43,653,648) 300,691 (627,145,646) (4,637,569) 11,991,846
		$ — 56,457 445,181 342
Accumulated depreciation and impairment:		501,980
		(2,136,002) (5,599,960) (1,155,026)
Buildings Machinery and equipment Other equipment
Unfinished construction and equipment under acceptance		(8,890,988)
		3,214,475
	$ 178,901,675			$ 173,072,628

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

B. As of March 31, 2022, December 31, 2021 and March 31, 2021, the prepayments for business facilities which have not yet entered the factory (shown as ‘other non-current assets’) amounted to $8,698,476, $8,530,392 and $673,252, respectively.

~22~

(9) Leasing arrangements－lessee

A. The Group leases various assets including land, offices and business vehicles. Rental contracts are typically made for periods of 2 to 50 years. Lease terms are negotiated on an individual basis and contain a wide range of different terms and conditions. The lease agreements do not impose covenants, but leased assets may not be used as security for borrowing purposes.
B. Short-term leases with a lease term of 12 months or less comprise office, dormitory and equipment. Low-value assets comprise computer equipment.
C. The carrying amounts of right-of-use assets and the depreciation charge are as follows:

	March 31,2022	March 31,2022	December 31,2021	December 31,2021	March 31,2021
	Carryingamount		Carryingamount Carryingamount
Land Buildings (Office)	$ 5,107,792		$ 5,042,470		$ 5,398,312
	95,978		101,957		45,311
Transportation equipment (Business vehicles)	2,074		2,341 3,490
	$ 5,205,844		$ 5,146,768		$ 5,447,113

Land Buildings (Office) Transportation equipment (Business vehicles)		For the three-monthperiods ended March 31,
		2022 2021
		Depreciation Charge		Depreciation Charge
		$ 120,687		$ 119,318
		8,883		9,972
		309		336
		$ 129,879		$ 129,626

D. For the three-month periods ended March 31, 2022 and 2021, the additions to right-of-use assets were $2,513 and $34,067, respectively.
E. The information on income and expense accounts relating to lease contracts is as follows:

Items affecting profit or loss	For the three-monthperiods ended March 31,	For the three-monthperiods ended March 31,
	2022 2021

Interest expense on lease liabilities	$ 20,768 $ 22,318
Expense on variable lease payments Expense on short-term lease contracts	36,918 16,891 14,311	34,525 19,565 9,380
Expense on leases of low-value assets

F. For the three-month periods ended March 31, 2022 and 2021, the Group’s total cash outflow for leases were $203,870 and $70,542, respectively.

~23~

(10) Investment property

Investment property
		2022
	At January1	Additions At March 31
Cost: Land Buildings Accumulated depreciation:	$ 188,247 439,228	$ — $ 188,247 — 439,228
	627,475	— 627,475

Buildings	(155,820)	(6,947) (162,767)
	$ 471,655	$ (6,947) $ 464,708

		2021
	At January1	Additions At March 31
Cost:	$ 188,247 439,228	$ — $ 188,247 — 439,228
Land Buildings
Accumulated depreciation:	627,475	— 627,475

Buildings	(128,031)	(6,947) (134,978)
	$ 499,444	$ (6,947) $ 492,497

The fair value of the investment property held by the Group as at March 31, 2022, December 31, 2021 and March 31, 2021 was $1,770,664, $1,978,199 and $2,051,707, respectively. The amounts mentioned above represent valuation results of comparative method based on market trading information categorized within Level 3 in the fair value hierarchy.

(11) Intangible assets

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

			2022
	At January1	Additions	Disposals	Transfer, net exchange differences and others At March 31
Cost: Patents and royalty Goodwill Others	$ 8,232,454 17,117,339 4,862,691	$ — — 4,300	$ — — (132,106)	$ — $ 8,232,454 — 17,117,339 41,409 4,776,294
	30,212,484	4,300	(132,106)	41,409 30,126,087
Accumulated amortization and impairment:	(8,171,928) (4,519,962)	(4,911) (28,017)	— 132,106	— (8,176,839) (9,898) (4,425,771)
Patents and royalty
Others
	(12,691,890)	(32,928)	132,106	(9,898) (12,602,610)
	$ 17,520,594	$ (28,628)	$ —	$ 31,511 $ 17,523,477

~24~

2021

			2021
	At January1	Additions	Disposals	Transfer, net exchange differences and others At March 31
Cost: Patents and royalty Goodwill Others	$ 8,184,436 17,117,339 5,368,254	$ — — 1,765	$ — — (48,011)	$ — $ 8,184,436 — 17,117,339 46,071 5,368,079
	30,670,029	1,765	(48,011)	46,071 30,669,854
Accumulated amortization and impairment:	(8,156,715) (5,006,330)	(1,589) (39,792)	— 48,011	— (8,158,304) 3,125 (4,994,986)
Patents and royalty
Others
	(13,163,045)	(41,381)	48,011	3,125 (13,153,290)
	$ 17,506,984	$ (39,616)	$ —	$ 49,196 $ 17,516,564

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

Operating costs Operating expenses	For the three-monthperiods ended March 31,	For the three-monthperiods ended March 31,
	2022 2021
	$ 9,656	$ 15,019 26,362
	23,272
	$ 32,928	$ 41,381

C. The Group periodically performed impairment assessment on the recoverable amount of goodwill, and used the value in use as the basis for calculation of the recoverable amount.The value in use was calculated based on the estimated present value of future cash flows for five years. Based on the periodical assessment above, the Group did not recognize impairment loss on goodwill for the three-month periods ended March 31, 2022 and 2021, respectively.

(12) Short-term borrowings

Type of borrowings Bank borrowings Unsecured borrowings Range of interest rates	March 31,2022 Collateral $ 170,000 None 1.35%~1.52%

As of December 31, 2021 and March 31, 2021, the Group did not hold any short-term borrowings.

(13) Other payables

Other payables
	March 31,2022	December 31,2021	March 31,2021
Other personnel expenses Payable on machinery and equipment Repairs and maintenance expense payable Utilities expense payable	$ 13,905,322	$ 16,607,485	$ 8,907,697
	4,515,255	4,172,348 2,993,417	3,996,413 2,685,531
	3,057,564
	1,163,559	1,163,786 1,153,977
Other payables	11,678,330	11,577,192	10,127,972
	$ 34,320,030	$ 36,514,228	$ 26,871,590

~25~

(14) Bonds payable

Bonds payable
	March 31,2022	December 31,2021	March 31,2021
Bonds payable	$ —	$ —	$ 3,233,143
Less: Discount on bonds payable	—	—	(407,084)
Less: Current portion of bonds payable	—	—	(99,139)
	$ —	$ —	$ 2,726,920

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 March 31, 2021, the conversion price was $10.59 (in dollars) (using the exchange rate 1 USD: 29.913 NTD).
(d) The bondholders have the right to require the Company to redeem bonds at the price of the bonds’ face value in whole or partially on the date of three years after the bond issuance.
(e) Under the terms of the bonds, all bonds repurchased (including from secondary market), early redeemed and matured by the Company, or converted and sold back by the bondholder will be cancelled and not to be reissued.
(f) As of March 31, 2021, some convertible bonds were calculated at the conversion price at the time of conversion. Refer to Note 6(19) for relevant information.
(g) As of December 31, 2021, all unsecured overseas convertible bonds issued by the Company had been converted. All convertible bonds were calculated at the conversion price at the time of conversion. Refer to Note 6(18) of the consolidated financial statements for the year ended December 31, 2021.
B. Regarding the issuance of convertible bonds, the non-equity conversion options, redeem options and put options were separated from their host contracts and were recognized in ‘financial assets or liabilities at fair value through profit or loss’ in net amount in accordance with IFRS 9 because the economic characteristics and risks of the embedded derivatives were not closely related to those of the host contracts.
C. The issuance of domestic convertible bonds by the Group’s subsidiary—GIO Company The terms of the first domestic secured convertible bonds issued by GIO Company are as follows:

~26~

(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.

- (15) Long term borrowings

)Long-term borrowings
Type of borrowings	Period	March 31, 2022	December 31, 2021	March 31, 2021
Syndicated bank borrowings	2016/12/6 ~2024/4/15	$ 43,750,000	$ 43,750,000	$ 44,750,000
Unsecured borrowings Secured borrowings	2021/12/2 ~2026/11/15	600,000	600,000	—
	2017//7/28 ~2024/9/22	85,333	95,166 (82,241)	38,000 (133,449)
Less: Administrative expenses charged by syndicated banks Current portion (includes administrative expenses) Range of interest rates		(73,052)
		(8,770,723)	(8,770,385) (19,262,360)
		$ 35,591,558	$ 35,592,540	$ 25,392,191
		0.75%~1.90%	0.75%~1.79% 1.45%~1.79%

A. Please refer to Note 8 for the information on assets pledged as collateral for long-term borrowings.
B. The syndicated borrowing agreements specified that the Company shall meet covenants on current ratio, liability ratio, interest coverage, and tangible net equity, based on the Company’s annual consolidated financial statements audited by independent auditors. The Company’s financial ratios on the consolidated financial statements for the years ended December 31, 2021 are in compliance with the covenants on the syndicated borrowing agreement.

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C. For repayment of borrowings from financial institutions and financing mid-term working capital fund, the Board of Directors approved the signing of a syndicated borrowing with financial institution in the amount of $37.5 billion on May 5, 2020. As of March 31, 2022, the borrowing has yet to be drawn down.
(16) Pensions
A. Defined benefit pension plans
(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 chose to continue to be subject to the pension mechanism under the Law.
(b) In February 2022, the Science Park, Ministry of Science and Technology approved the Company to stop contributing to the retirement fund temporarily.
(c) In the first quarter of 2022, the Company reached an agreement with part of its employees for terminating their defined benefit pension plans and settled its defined benefit obligation, and re-assessed the actuarial assumptions and recognized gains on the settlement amounted to $3,969 and the gain on remeasurements of net defined benefit liability amounted to $34,162, respectively.
B. Defined contribution pension plans
(a) Effective July 1, 2005, the Company and its domestic subsidiaries have established a defined contribution pension plan (the “New Plan”) under the Labor Pension Act (the “Act”), covering all regular employees with R.O.C. nationality.
(b) The Company’s foreign subsidiaries have provided the pension in accordance with statutory laws and regulations.
C. The pension costs under the abovementioned pension plans of the Group for the three-month periods ended March 31, 2022 and 2021 were $504,546 and $470,625, respectively.
(17) Share-based payment
A. Details of the share-based payment arrangements of the Group are provided in the 2021 consolidated financial statements.
B. Details of the share-based payment arrangements are as follows:
－
(a) Employee stock options GIO Company

mployee stock options－	GIO Company
		2022	2021
	Quantity (in thousand units)	Weighted-average exercise price (in dollars)	Quantity (in thousand units)	Weighted-average exercise price (in dollars)
Options outstanding at the beginning of the period	5,122 —	$ 7.5 — 7.5	6,122 $ 9.4 — — 6,122 9.4
Options forfeited
Options outstanding at the end of the period	5,122
Options exercisable at the end of the period	5,122		6,122

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－ (b) Employee stock options InnoCare Company

		2022	2021	2021
	Quantity (in thousand units)	Weighted-average exercise price (in dollars)	Quantity (in thousand units)	Weighted-average exercise price (in dollars)
Options outstanding at the beginning of the period	3,414	$ 14.5	7,500	$ 22.5
Options granted	—	—	—	— 22.5
Options outstanding at the end of the period	3,414	14.5	7,500
Options exercisable at the end of the period	—		—

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

follows:
Issue date approved 2017.10.1 2020.7.7	Expirydate 2022.9.30 2026.7.6	March 31,2022
		Quantity (in thousand units) Exercise price (in dollars) 5,122 $ 7.5 3,414 14.5

		December 31,2021
Issue date approved	Expirydate	Quantity (in thousand units) Exercise price (in dollars)
2017.10.1 2020.7.7	2022.9.30 2026.7.6	5,122 $ 7.5
		3,414 14.5

		March 31,2021
Issue date approved	Expirydate	Quantity (in thousand units) Exercise price (in dollars)
2017.10.1 2020.7.7	2022.9.30 2026.7.6	6,122 $ 9.4
		7,500 22.5

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

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

E. For the three-month periods ended March 31, 2022 and 2021, the Group recognized expenses on share-based payment transaction (equity settlement) were $2,248 and $7,233, respectively.

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(18) Provisions-current

Provisions-current
At January 1, 2022 Additions during the period Used (unused amounts reversed) during the period Effect of change in exchange rate At March 31, 2022	Warranty	Litigation and others	Total
	$ 3,299,156	$ 4,242,026	$ 7,541,182
	267,787 (833,495) 512	177,600 445,387 — (833,495) — 512
	$ 2,733,960	$ 4,419,626	$ 7,153,586

A. Warranty

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

B. Litigation and others

Litigation and other provisions for the Group are related to patents of TFT-LCD panel products

and anti-trust litigations. For information on estimation of provisions, please refer to Note 9(1).

(19) Share capital

A. As of March 31, 2022, the Company’s authorized and outstanding capital were $120,000,000 and $105,596,201, with a par value of $10 (in dollars) per share, respectively. All proceeds from shares issued have been collected.

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

	2022 2021
At January 1 Stocks converted from bonds	Number of ordinary shares(in thousand units) Number of ordinary shares(in thousand units) 10,559,620 9,940,433 — 307,886
At March 31	10,559,620 10,248,319

B.The Company’s bonds totalling USD 109,000 thousand (face value) had been converted into $3,078,864 of ordinary shares (307,886 thousand shares) with a par value of $10 (in dollars) per share during the three-month period ended March 31, 2021, which resulted in ‘capital surplus, additional paid-in capital arising from bond conversion’ of $1,662,640. As of March 31, 2021, the registration has not yet been completed and therefore the shares were shown as ‘certificate of entitlement to new shares from convertible bonds’. The registration has been completed in the second quarter of 2021.

(20) Capital surplus

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

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				2022
	Share premium	Treasury share transactions	Changes in ownership interests in subsidiaries	Share of profit (loss) of associates accounted for under equity method	Difference between proceeds on acquisition or disposal of equity interest in a subsidiary and its carryingamount Total
At January 1	$ 99,992,177	$ 3,183,414	$ 6,484	$ 41,277	$ 64,130 $ 103,287,482
Recognition of changes in ownership interests in subsidiaries Recognition of change in equity of associates in proportion to the Group's ownership Others At March 31	— — 2,705	— — —	319 — —	— 247 —	— 319 — 247 — 2,705
	$ 99,994,882	$ 3,183,414	$ 6,803	$ 41,524	$ 64,130 $ 103,290,753

Others At March 31	2,705 $ 99,994,882	— $ 3,183,414	— $ 6,803	— — $ 41,524 $ 64,130
At January 1 Conversion of convertible bonds Recognition of change in equity of associates in proportion to the Group's ownership Others At March 31			2021
	Share premium	Treasury share transactions	Changes in ownership interests in subsidiaries	Share of profit (loss) of associates accounted for under equity method Total
	$ 96,484,845 1,662,640 — 786	$ 3,183,414 — — —	$ 62 — — —	$ 39,675 $ 99,707,996 — 1,662,640 1,555 1,555 — 786
	$ 98,148,271	$ 3,183,414	$ 62	$ 41,230 $ 101,372,977

(21) Retained earnings

A. Under the Company’s Articles of Incorporation, the current year’s earnings, if any, shall first be offset against prior years’ operating losses, then set aside 10% of the remaining amount as legal reserve (until the legal reserve equals the paid-in capital). Preferred dividend shall be distributed after setting aside or reversing a special reserve according to related regulations. The appropriation of the remaining amount along with the unappropriated earnings from previous years shall be proposed by the Board of Directors and resolved by the shareholders. The net decrease in other equity accumulated in prior periods should be appropriated from prior period's undistributed earnings to a special reserve of the same amount, and if there is a deficiency, the same amount should be appropriated from the post-tax profit for the year plus the amount of items other than post-tax profit for the year, and the amount was included in the unappropriated earnings for the year.

Depending on the Company's future long-term financial planning, investment environment, industry competition, capital expenditure budget, capital requirements and protection of shareholders' rights, dividends should account for at less 20% of the distributable earnings for the year. However, as the distributable earnings is lower than 2% of the paid-in capital, the Company may choose not to distribute dividends and transferred dividends to the retained

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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 2021 net income which was resolved at the Board of Directors’ meeting in May 2022 and the appropriation of 2020 net income which was approved at the stockholders’ meeting in July 2021 are as follows:

	Years ended December 31,	Years ended December 31,	Years ended December 31,	Years ended December 31,
	2021		2020
	Amount	Dividends per share(in dollars)	Amount Dividends per share(in dollars)
Legal reserve	$ 5,749,212		$ 191,838 (1,265,766)
Reversal of special reserve	(2,855,535)
Cash dividends	11,087,601	$ 1.05	3,141,271	$ 0.3
	$ 13,981,278		$ 2,067,343

The stockholders’ meeting in July 2021 approved a resolution to distribute cash dividends amounting to $1,047,090 at $0.1 (in dollars) per share from capital surplus.

(22) Other equity items

Other equity items
		2022
	Currency translation $ (9,862,144) — 2,847,444 30,305 — $ (6,984,395)	Financial assets at fair value through other comprehensive income Total $ 6,658,008 $ (3,204,136) (3,244,592) (3,244,592) — 2,847,444 22,356 52,661 473,022 473,022 $ 3,908,794 $ (3,075,601)
At January 1 Revaluation - gross
Currency translation differences
Share of other comprehensive gain of associates Effect of income tax
At March 31

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At January 1 Revaluation - gross Disposal of investments in equity instruments measured at fair value through other comprehensive income Currency translation differences Share of other comprehensive loss of associates Effect of income tax At March 31 (23)Operating income TFT-LCD products			2021	2021
	Currency translation $ (8,879,169) — — (567,360) (5,443) — $ (9,451,972)		Financial assets at fair value through other comprehensive income Total $ 2,819,498 $ (6,059,671) 6,070,351 6,070,351 (70,861) (70,861) — (567,360) — (5,443) (848,227) (848,227) $ 7,970,761 $ (1,481,211)
Operating income
		For	the three-monthperiods ended March 31,
			2022 2021
TFT-LCD products		$	69,886,018	$ 83,838,696

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

(24) Interest income

Interest income
	For the three-monthperiods ended March 31,
	2022 2021
Interest income from bank deposits Interest income from financial assets at amortized cost	$ 41,994 $ 32,887
	180,518	64,531
	$ 222,512 $ 97,418
Other income
	For the three-monthperiods ended March 31,
	2022 2021
Service revenue	$ 379,209	$ 109,764
Dividend income	201,810	56,936
Grant revenue	70,667	38,740
Rental revenue	44,205	56,526
Other income	213,472	219,334
	$ 909,363 $ 481,300

(25) Other income

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(26) Other gains and losses

Other gains and losses
		For the three-monthperiods ended March 31, 2022 2021 (2,715,004) $ (2,819,173) 1,941,927 395,192 (42,000) 3,793 (369) (206,997) (815,446) $ (2,627,185) For the three-monthperiods ended March 31, 2022 2021 204,041 $ 206,709 — 38,243 20,776 22,327 224,817 $ 267,279

Net loss on financial assets and liabilities at fair value through profit or loss Net currency exchange gain (Loss) gain on disposal of property, plant and equipment Other losses	$
		1,941,927 (42,000) (369)	395,192 3,793 (206,997)
	$
Finance costs


Interest expense: Bank borrowings Convertible bonds Others
	$	204,041 $ 206,709
		— 20,776	38,243 22,327
	$	224,817 $ 267,279
Expenses by nature
		For the three-monthperiods ended March 31,
		2022 2021
Employee benefit expense: Salaries and other short-term employee benefits Shared-based payments Post-employment benefits Depreciation Amortization
		$ 10,688,632 $ 12,013,190
		2,248 504,546 8,492,352 32,928		7,233 470,625 9,027,561 41,381
		$ 19,720,706		$ 21,559,990

(27) Finance costs

(28) Expenses by nature

(29) Employees’ compensation and directors’ remuneration

A. According to the Articles of Incorporation of the Company, a ratio of profit of the current year distributable, after covering accumulated losses, shall be distributed as employees' compensation and directors’ remuneration. The ratio shall not be lower than 5% for employees’ compensation and shall not be higher than 0.1% for directors’ remuneration.
B. For the three-month periods ended March 31, 2022 and 2021, employees’ compensation was accrued at $145,827 and $852,592, respectively; while the Company did not accrue directors’ remuneration. The aforementioned amounts were recognized in expenses.
The employees’ compensation and directors’ remuneration for the year ended December 31, 2021 were $4,246,994 and $65,338, respectively, and will be distributed in the form of cash as resolved by the Board of Directors on February 11, 2022. The resolved amounts were in agreement with the amount of recorded expense for the year ended December 31, 2021.

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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.

(30) Income tax

A. Income tax expense

Components of income tax expense:

website of the Taiwan Stock Exchange. e tax ome tax expense mponents of income tax expense:
	For the three-monthperiods ended March 31,
	2022 2021
Current tax:	$ 220,116 $ 235,073
Current tax on profit for the period
Prior year income tax under estimation	294 1,875
Total current tax Deferred tax: Origination and reversal of temporary differences	220,410 236,948
	206,497 (326,505) — 1,120,397
Loss carryforward
Income tax expense	$ 426,907 $ 1,030,840

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

(31) Earnings per share

Authority. Earnings per share
Basic earnings per share	For the three-month period ended March 31, 2022
	Amount after tax	Weighted average number of ordinary shares outstanding (shares in thousands) Earnings per share (in dollars)

Profit attributable to ordinary shareholders of the parent	$ 1,889,989	10,559,620	$ 0.18
Diluted earnings per share Profit attributable to ordinary shareholders of the parent Assumed conversion of all dilutive potential ordinary shares： -Employees’compensation	1,889,989 —	10,559,620 126,652
Profit attributable to ordinary shareholders of the parent plus assumed conversion of all dilutive potential ordinary shares	$ 1,889,989	10,686,272 $ 0.18

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Basic earnings per share	For the three-month periods ended March 31, 2021	For the three-month periods ended March 31, 2021	For the three-month periods ended March 31, 2021
	Amount after tax	Weighted average number of ordinary shares outstanding (shares in thousands) Earnings per share (in dollars)

Profit attributable to ordinary shareholders of the parent	$ 11,571,419	10,041,744	$ 1.15
Diluted earnings per share Profit attributable to ordinary shareholders of the parent Assumed conversion of all dilutive potential ordinary shares： -Convertible bonds -Employees’compensation	11,571,419 37,815 —	10,041,744 516,722 42,975
Profit attributable to ordinary shareholders of the parent plus assumed conversion of all dilutive potential ordinary shares	$ 11,609,234	10,601,441	$ 1.10

(32) Supplemental cash flow information

Investing activities with partial cash payments:

Supplemental cash flow information Investing activities with partial cash payments:
	For the three-monthperiods ended March 31,
	2022 2021
Purchase of property, plant and equipment Add: Opening balance of payable on equipment Less: Ending balance of payable on equipment Cash paid during the year	$ 5,539,952 $ 3,716,455
	4,172,348 3,749,913 (4,515,255) (3,996,413)
	$ 5,197,045 $ 3,469,955

(33) Changes in liabilities from financing activities

For the three-month periods ended March 31, 2022 and 2021, liabilities from financing activities include short-term borrowings, 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.

flows.	flows.
		2021
At January 1		Bondspayable
		$ 5,473,004
Conversion of convertible bonds Amortization of discounts on convertible bonds Impact of changes in foreign exchange rate At March 31		(2,670,594) 38,243 (14,594)
		$ 2,826,059

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7. RELATED PARTY TRANSACTIONS

(1) Names and relationship of related parties

Names of related parties Relationship with the Group Hon Hai Precision Industry Co., Ltd. and its subsidiaries Other related party FI Medical Device Manufacturing Co., Ltd. Associate PanelSemi Corporation Associate

(2) Significant related party transactions

A. Operating revenue

Medical Device Manufacturing Co., Ltd. nelSemi Corporation nificant related party transactions Operating revenue	Associate Associate	Associate Associate
	For the three-monthperiods ended March 31,
	2022 2021
Sales of goods: Other related parties Associates
	$ 1,092,938	$ 1,746,117
	111,826	1,183
	$ 1,204,764 $ 1,747,300

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
	For the three-monthperiods ended March 31,
	2022 2021
Purchases of goods: Other related parties Associates
	$ 1,486,811 $ 997,050
	109,136 339,167
	$ 1,595,947 $ 1,336,217

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

from third parties. Receivables from related parties
	March 31,2022	December 31,2021	March 31,2021
Accounts receivable: Other related parties Associates
	$ 1,366,289	$ 1,277,931	$ 1,999,546
	102,848	73,444	35,902
	$ 1,469,137	$ 1,351,375	$ 2,035,448

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.

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D. Payables to related parties

Payables to related parties
	March 31,2022	December 31,2021	March 31,2021
Accounts payable: Other related parties Associates
	$ 2,264,088	$ 2,069,083	$ 1,738,599
	182,271	121,225	136,117
	$ 2,446,359	$ 2,190,308	$ 1,874,716

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-monthperiods ended March 31, 2022 2021	For the three-monthperiods ended March 31, 2022 2021	For the three-monthperiods ended March 31, 2022 2021	For the three-monthperiods ended March 31, 2022 2021
Other related parties		$ 2,558 $ 7,668
Associates		720		—
		$ 3,278		$ 7,668
Period-end balances arising from purchases of property (shown as ‘Other payables’): March 31,2022 December 31,2021 March 31,2021
			December 31,2021		March 31,2021
Other related parties	$ —		$ —		$ 194

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

(3) Key management compensation

March 31, Other related parties $ Key management compensation	2022 December 31,2021 March 31,2021 — $ — $ 194
	For the three-monthperiods ended March 31,
	2022 2021
Salaries and other short-term employee benefits Shared-based payments Post-employment benefits	$ 25,197 $ 20,383
	322 584 355 277
	$ 25,874 $ 21,244

8. PLEDGED ASSETS

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

		Book value
Pledged asset	March 31,2022	December 31,2021	March 31,2021 Purpose
Property, plant and equipment	$ 60,352,152	$ 63,366,908 350 48,430 762,562	$ 89,073,665 Long-term borrowings 950 Long-term borrowings 19,180 Tariff guarantee and performance bond 786,116 Litigation guarantee
Other assets - others	350 50,430 788,596
-Demand deposits
-Time deposits
-Refundable deposits
	$ 61,191,528	$ 64,178,250	$ 89,879,911

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9. SIGNIFICANT CONTINGENT LIABILITIES AND UNRECOGNIZED CONTRACT COMMITMENTS

－
(1) Contingencies Significant Litigations
A. The Company’s subsidiary in U.S. received a civil complaint from the government of Puerto Rico in September 2018, claiming that the company, together with other defendants of Taiwan, Japan and South Korea TFT - LCD companies, had unjustified enrichment from the TFT-LCD pricing collaborations in 2006 and requested monetary compensation. The U.S. subsidiary of the company has appointed a lawyer to handle the lawsuit.
B. Eidos Displays, LLC and Eidos III, LLC (“Eidos”) filed a lawsuit against the Company and American subsidiary with the United States District Court for the Eastern District of Texas on April 25, 2011, alleging infringement of its patent. In December 2013, the magistrate judge granted summary judgment that the Eidos patent is invalid. In January 2014, the presiding judge confirmed the summary judgment.
In February 2014, Eidos appealed to the United States Court of Appeals for the Federal Circuit (CAFC). In March 2015, the CAFC reversed the district court’s judgment and remanded the case back to the district court for further proceedings. In June 2017, the jury determined that some products of the Company and American subsidiary directly infringed the patent and awarded damages for Eidos. On March 5, 2018, the district court entered judgment. In January 2020, the Company reached an agreement on the main settlement terms with Eidos during the third mediation. In April 2020, the court granted the judgment that the case shall be closed by mutually performing the settlement terms. The tax liability to be borne by Eidos has not yet been determined and both parties will conclude the case in accordance with the ruling of the relevant authorities and the law, and the lawsuits have no effect on the Company’s financial position and operations.
C. On September 1, 2020, the Company received a civil complaint joint filed by Granville Technology Group Limited, VMT Limited, and OT Computers Limited (all in liquidation) in the High Court of England and Wales, claiming that the Company, together with other defendants of Taiwan and South Korea TFT - LCD companies, shall be liable for damages incurred from the TFT-LCD pricing collaborations in 2006. The Company reached a settlement with the claimant in November 2021.
D. On December 18, 2020 and March 19, 2021, the Company received civil complaints jointly filed by SAMSUNG ELECTRONICS CO. LIMITED, SAMSUNG ELECTRONICS TAIWAN CO. LIMITED, SAMSUNG ELECTRONICS (UK) LIMITED, SAMSUNG SEMICONDUCTOR EUROPE LIMITED and SAMSUNG DISPLAY CO. LMITED in the Business and Property Courts of England and Wales, claiming that the Company shall have the responsibility to pay equitable and fair share of compensation in terms of the settlement agreement that the first to fourth claimants entered into with the particular UK authorities and the first to fifth claimants entered into with Ingram Micro (UK) Limited for the TFT-LCD pricing collaborations in 2006. The Company reached a settlement with the claimant in May 2021.
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.

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(2) Commitments

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

March 31, 2022 December 31, 2021 March 31, 2021 Property, plant and equipment $ 20,862,661 $ 18,481,181 $ 14,254,598

B. Outstanding letters of credit

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

March 31, 2022 December 31, 2021 March 31, 2021 Outstanding letters of credit $ 314,341 $ 59,655 $ 197,431

C. The Company entered into a conditional ‘Share Issuance and Asset Purchase Agreement’ with TPV Technology. TPV Technology plans to issue shares to the shareholders of TPV Technology Limited, including the Company, in order to obtain 49% equity interest of TPV Technology Limited. However, the transaction will take effect when all preconditions are met.
D. On August 3, 2021, the Board of Directors of the Company resolved to enter into a long-term strategic partnership supply contract with SDP Global (China) Co., LTD. The total price of the contract amounted to RMB 4 billion and will be prepaid based on agreed payment terms. As of March 31, 2022 , the remaining amount the Group hasn't paid was RMB 2.4 billion. SDP Global (China) Co., LTD. committed to supply certain products in specified quantities each year from January 1, 2022 to December 31, 2033 to the Company and its subsidiary, Foshan Innolux Optoelectronics Ltd. As of March 31, 2022, the abovementioned prepayments of the Group shown as ‘prepayments’ and ‘other non-current assets’ based on liquidity amounted to $91,601 and $6,996,732, respectively.

10. SIGNIFICANT DISASTER LOSS

None.

SUBSEQUENT EVENTS AFTER THE BALANCE SHEET DATE
(1) On May 11, 2022, the Board of Directors of the Company resolved to reduce capital and refund cash to shareholders.Amount of capital reduction is $10,031,639 and 1,003,164 thousand shares will be cancelled and the capital reduction percentage is approximately of 9.50%.After the resolution of shareholders’ meeting, this proposal shall be reported to the competent authorities for obtaining approval. It is proposed that the Chairman be authorized to determine the record date for capital reduction and replacement of shares, and other related matters as well.
(2) On May 11, 2022, the Board of Directors of the Company resolved to repurchase 50,000 thousand common stocks of the Company from centralized securities exchange market from May 12, 2022 to July 11, 2022 for the transfer of shares to employees. It will be handled in accordance with the competent authorities and relevant laws and regulations.
(3) The company plans to reach an agreement with part of its employees for terminating their defined benefit pension plans and to settle its defined benefit obligation by relevant regulations in the second quarter of 2022. The settlement amount will be withdrawn from the retirement fund deposited with Bank of Taiwan.

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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, 2021.

(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 (short-term borrowings, financial liabilities at fair value through profit or loss, accounts payable (including related parties), other payables, lease liability, corporate bonds payable and long-term borrowings (including current portion)), please refer to Note 6 and consolidated balance sheets.
B. 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, 2021.
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, 2021.

(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 $506,583 and $341,587 for the three-month periods ended March 31, 2022 and 2021, 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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		March 31,2022			December31,2021	December31,2021
	Foreign Currency Amount (In Thousands)	Exchange Rate (Note)	Book Value (NTD)	Foreign Currency Amount (In Thousands)	Exchange Rate (Note)	Book Value (NTD)
Financial assets
Monetary items
USD	$ 4,995,949	28.63	$ 143,034,020	$ 4,962,088	27.68 4.34	$ 137,350,596
RMB JPY EUR HKD	581,983 7,687,269 16,376 102,816	4.51 0.24 31.92 3.66	2,624,743	613,827 8,857,030 8,035 65,269		2,664,009 2,125,687 251,656 231,705
			1,844,945 522,722 376,307		0.24 31.32
					3.55
Non-monetary items
USD	$ 2,999,726	28.63	$ 85,882,155	$ 3,102,225	27.68	$ 85,869,588
JPY	7,850,822	0.24	1,884,197	8,192,139	0.24	1,966,113
RMB	278,887	4.51	1,257,780	289,659	4.34	1,257,120
Financial liabilities Monetary items
USD	$ 3,133,472	28.63	$ 89,711,303	$ 3,352,724	27.68	$ 92,803,400
JPY EUR	32,365,434 8,314	0.24 31.92	7,767,704 265,383	35,625,094 7,930	0.24 31.32	8,550,023 248,368
Financial assets Monetary items USD RMB HKD JPY EUR Non-monetary items				Foreign Currency Amount (In Thousands) $ 4,780,232 497,835 165,247 1,780,542 4,977 $ 3,010,716 8,310,118 351,341 $ 3,371,879 33,460,573 104,310 10,447
					Exchange Rate (Note) Book Value (NTD)
					28.54 $ 136,427,821 4.34 2,160,604 3.67 606,456 0.26 462,941 33.48 166,630 28.54 $ 85,925,835 0.26 2,160,631 3.67 1,289,421 28.54 $ 96,233,427 0.26 8,699,749 3.67 382,818 33.48 349,766
USD JPY HKD Financial liabilities Monetary items USD JPY HKD EUR

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

iii. Total exchange gain , including realized and unrealized arising from significant foreign

exchange variation on the monetary items held by the Group for the three-month periods ended March 31, 2022 and 2021 amounted to $1,941,927 and $395,192, 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

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income. To manage its price risk arising from investments in equity securities, the Group diversifies its portfolio. Diversification of the portfolio is done by the Group in respect of the targets and stages.

ii. The Group’s investments in equity securities comprise domestic listed and unlisted stocks, beneficiary certificates and financial products. The prices of equity securities would change due to the change of the future value of investee companies. If the prices of these equity securities had increased/decreased by 20% with all other variables held constant, pre-tax profit for the three-month periods ended March 31, 2022 and 2021 would have increased/decreased by $3,541,359 and $2,717,905, respectively; other comprehensive gains and losses would have increased/decreased by $1,327,985 and $2,167,365, respectively.

Cash flow and fair value interest rate risk

i. The Group’s main interest rate risk arises from long-term borrowings and short-term borrowings with variable rates, which expose the Group to cash flow interest rate risk. During the three-month periods ended March 31, 2022 and 2021, 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 three-month periods ended March 31, 2022 and 2021 would have decreased/increased by $27,878 and $27,993, respectively. The main factor is that changes in interest expense result in floating-rate borrowings.
(b) Credit risk
i. Credit risk refers to the risk of financial loss to the Group arising from default by the clients or counterparties of financial instruments on the contract obligations. The main factor is that counterparties could not repay in full the accounts receivable based on the agreed terms, and the contract cash flows. As at March 31, 2022, December 31, 2021 and March 31, 2021, without taking into account any collateral held or other credit enhancements, the maximum exposure to credit risk in respect of the amount that best represents the financial assets at amortized cost and accounts receivable held by the Group was its carrying amount.
ii. According to the Group’s credit policy, each local entity in the Group is responsible for managing and analysing the credit risk for each of their new clients before standard payment and delivery terms and conditions are offered. Internal risk control assesses the credit quality of the customers, taking into account their financial position, past experience and other factors. Individual risk limits are set based on internal or external ratings in accordance with limits set by the managements. The utilization of credit limits is regularly monitored.
iii. The Group adopts the following assumption under IFRS 9 to assess whether there has been a significant increase in credit risk on that instrument since initial recognition: If the contract payments are past due over 30 days based on the terms, there has been a significant increase in credit risk on that instrument since initial recognition.

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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 uses the forecastability to adjust historical and timely information to assess the default possibility of accounts receivable.
According to abovementioned consideration and information, the Group does not expect any significant default possibility of accounts receivable.
viii. Movements in relation to the Group applying the simplified approach to provide loss allowance for accounts receivable are as follows:

allowance for accounts receivable are as follows:
At January 1 Provision for impairment At March 31 At March 31 (January 1)	2022
	Accounts receivable
	$ 262,610 2
	$ 262,612

	2021
	Accounts receivable
	$ 209,419

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

(c) Liquidity risk

The information below analyses 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 nonderivative 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：

Non-derivative financial l	iabilities：
March 31,2022	Less than 1year	Between 1 and 3years	Between 3 and 5years	Over 5years Total
Lease liability (Note) Long-term borrowings (including current portion)	$ 737,318 8,785,333	$ 1,341,670 35,177,778	$ 1,064,090 472,222	$ 2,327,322 $ 5,470,400 — 44,435,333

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December 31,2021	Less than 1year	Between 1 and 3years	Between 3 and 5years	Over 5years Total
Lease liability (Note) Long-term borrowings (including current portion) March 31,2021	$ 719,125 8,786,833	$ 1,349,526 35,115,277	$ 1,044,263 543,056	$ 2,361,435 $ 5,474,349 — 44,445,166
	Less than 1year	Between 1 and 3years	Between 3 and 5years	Over 5years Total
Lease liability (Note) Bonds payable Long-term borrowings (including current portion)	$ 421,212 100,000 19,286,000	$ 1,389,240 3,133,143 10,202,000	$ 1,093,923 — 15,300,000	$ 2,743,095 $ 5,647,470 — 3,233,143 — 44,788,000

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.
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, short-term borrowings and long-term borrowings (including current portion) are approximate to their fair values.

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March 31, 2022

Book value		Fair value
	Level 1	Level 2 Level 3

$ 7,823,152	$ —	$ 7,678,832 $ —
	December	31,2021
		Fair value
Book value	Level 1	Level 2 Level 3
$ 7,693,454	$ —	$ 7,830,698 $ —
	March 31,2021
		Fair value
Book value	Level 1	Level 2 Level 3
$ 2,826,059	$ —	$ 3,023,912 $ —

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:

March 31,2022	Level 1	Level 2	Level 3 Total
Assets Recurring fair value measurements Financial assets at fair value through profit or loss Equity securities Forward foreign exchange contracts Beneficiary certificates Financial instruments Financial assets at fair value through other comprehensive income Equity securities Liabilities Recurring fair value measurements Financial liabilities at fair value through profit or loss Forward foreign exchange contracts Foreign exchange swap contracts	$ 1,082,849 — 13,911,723 — 6,609,203	$ — 7,151 — 60,149 —	$ 2,652,073 $ 3,734,922 — 7,151 — 13,911,723 — 60,149 30,724 6,639,927
	$ 21,603,775	$ 67,300	$ 2,682,797 $ 24,353,872
	$ — —	$ 534,915 531,227	$ — $ 534,915 — 531,227
	$ —	$ 1,066,142	$ — $ 1,066,142

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December 31,2021	Level 1	Level 2	Level 3 Total
Assets Recurring fair value measurements Financial assets at fair value through profit or loss Equity securities Forward foreign exchange contracts Foreign exchange swap contracts Beneficiary certificates Structured products Financial instruments Financial assets at fair value through other comprehensive income Equity securities Liabilities Recurring fair value measurements Financial liabilities at fair value through profit or loss Forward foreign exchange contracts

	$ 1,224,882 — — 13,903,225 — — 9,818,232	$ — 54,965 130,283 — 3,269,530 38,553 —	$ 3,063,428 $ 4,288,310 — 54,965 — 130,283 — 13,903,225 — 3,269,530 — 38,553 29,894 9,848,126
	$ 24,946,339	$ 3,493,331	$ 3,093,322 $ 31,532,992
	$ —	$ 198,896	$ — $ 198,896

March 31,2021	Level 1	Level 2	Level 3 Total
Assets Recurring fair value measurements Financial assets at fair value through profit or loss Equity securities Forward foreign exchange contracts Beneficiary certificates Structured products Financial assets at fair value through other comprehensive income Equity securities Liabilities Recurring fair value measurements Financial liabilities at fair value through profit or loss Forward foreign exchange contracts Foreign exchange swap contracts Convertible bonds derivative instruments	$ 1,248,434 — 10,002,625 — 5,602,382	$ — 3,364 — 8,813,900 —	$ 2,338,464 $ 3,586,898 — 3,364 — 10,002,625 — 8,813,900 5,234,443 10,836,825
	$ 16,853,441	$ 8,817,264	$ 7,572,907 $ 33,243,612
	$ — — —	$ 388,690 52,534 —	$ — $ 388,690 — 52,534 3,265,361 3,265,361
	$ —	$ 441,224	$ 3,265,361 $ 3,706,585

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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 Last transaction Weighted average
  - Closing price
  - Market quoted price price quoted price
- ii. Except for financial instruments with active markets, the fair value of other financial instruments is measured by using valuation techniques or by reference to counterparty quotes. The fair value of financial instruments measured by using valuation techniques can be referred to current fair value of instruments with similar terms and characteristics in substance, discounted cash flow method or other valuation methods, including calculated by applying model using market information available at the consolidated balance sheet date.
- iii. When assessing non-standard and low-complexity financial instruments, for example, foreign exchange swap contracts and financial products, the Group adopts valuation technique that is widely used by market participants. The inputs used in the valuation method to measure these financial instruments are normally observable in the market.
- iv. The valuation of derivative financial instruments is based on valuation model widely accepted by market participants, such as present value techniques and option pricing models. Forward foreign exchange contracts and foreign exchange swap contracts are usually valued based on the current forward exchange rate. Convertible bonds derivative instruments are measured by using appropriate option pricing models (binary tree model for convertible bond pricing).
- v. The output of valuation model is an estimated value and the valuation technique may not be able to capture all relevant factors of the Group’s financial and non-financial instruments. Therefore, the estimated value derived using valuation model is adjusted accordingly with additional inputs, for example, model risk or liquidity risk and etc. In accordance with the Group’s management policies and relevant control procedures relating to the valuation models used for fair value measurement, management believes adjustment to valuation is necessary in order to reasonably represent the fair value of financial and non-financial instruments at the consolidated balance sheet. The inputs and pricing information used during valuation are carefully assessed and adjusted based on current market conditions.
- vi. The Group takes into account adjustments for credit risks to measure the fair value of financial and non-financial instruments to reflect credit risk of the counterparty and the Group’s credit quality.
E. For the three-month periods ended March 31, 2022 and 2021, there was no transfer between Level 1 and Level 2.
F. The following table presents the changes in Level 3 instruments for the three-month periods ended March 31, 2022 and 2021:

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	2022	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 Disposed in the period Proceeds from capital reduction Effect on exchange rate changes At March 31 Financial liabilities at fair value through profit or loss At January 1 Gains and losses recognized in profit or loss	Equitysecurities	Equitysecurities
	$ 3,093,322 (467,576) (4,658) — — 61,709	$ 3,477,039 — 4,314,638 (115,154) (99,638) (3,978)
	$ 2,682,797	$ 7,572,907
		2021 Derivative instruments $ 3,208,560 2,127,711 (2,070,910) $ 3,265,361
Conversion in the period
At March 31

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

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

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

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Non-derivative equity instrument: Unlisted shares Venture capital shares Private equity fund investment	Fair value at March 31, 2022	Valuation technique	Significant unobservable input	Range (weighted average) Relationship of inputs to fair value
	$ 405,107 2,228,503 27,726 21,461
		Market comparable companies	Price to sales ratio multiple, price to book ratio multiple	1.36~5.19 (2.08) The higher the multiple, the higher the fair value
		Using the last transaction price in an inactive market Net asset value Net asset value	Discount for lack of marketability Discount for lack of marketability Discount for lack of marketability Not applicable	30%~80% (35%) The higher the discount for lack of marketability, the lower the fair value 25%~30% (27%) The higher the discount for lack of marketability, the lower the fair value 12% (12%) The higher the discount for lack of marketability, the lower the fair value Not applicable Not applicable

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

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Non-derivative equity instrument: Listed/Unlisted shares Venture capital shares Private equity fund investment Derivative instrument liabilities: Convertible bond	Fair value at March 31, 2021	Valuation technique	Significant unobservable input	Range (weighted average) Relationship of inputs to fair value

	$ 274,111 7,183,582 91,822 23,392 3,265,361	Market comparable companies Using the last transaction price in an inactive market Net asset value Net asset value Binary tree model for convertible bond pricing	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 Volatility rate	1.19~4.50 (1.85) The higher the multiple, the higher the fair value 30%~70% (32%) The higher the discount for lack of marketability, the lower the fair value 10%~30% (14%) The higher the discount for lack of marketability, the lower the fair value 5% (5%) The higher the discount for lack of marketability, the lower the fair value Not applicable Not applicable 44.34% The higher the volatility, the higher the fair value

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

Financial assets	Input	Change	March 31,2022	March 31,2022	March 31,2022
			Recognized inprofit or loss		Recognized in other comprehensive income
			Favourable change	Unfavourable change	Favourable change Unfavourable change
Equity instrument	Liquidity discount	± 1%	$ 37,745	$ (37,745)	$ 439 $ (439)

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Financial assets	Input	Change	December 31,2021	December 31,2021	December 31,2021
			Recognized inprofit or loss		Recognized in other comprehensive income
			Favourable change	Unfavourable change	Favourable change Unfavourable change
Equity instrument	Liquidity discount	± 1%	$ 43,912	$ (43,912)	$ 427 $ (427)

Financial assets	Input	Change		March 31,2021
			Recognized inprofit or loss		Recognized in other comprehensive income
			Favourable change	Unfavourable change	Favourable change Unfavourable change
Equity instrument	Liquidity discount	± 1%	$ 23,385	$ (23,385)	$ 52,344 $ (52,344)
Financial liabilities
Derivative instrument	Volatility rate	± 1%	$ 8,773	$ (14,726)	$ — $ —

(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 first quarter of 2022.

13. SUPPLEMENTARY DISCLOSURES

(1) Significant transactions information

A. Loans to others: Please refer to Table 1.
B. Provision of endorsements and guarantees to others: None.
C. Holding of marketable securities at the end of the period (not including subsidiaries, associates and joint ventures): Please refer to Table 2.
D. Acquisition or sale of the same security with the accumulated cost exceeding $300 million or 20% of the Company’s paid-in capital: Please refer to Table 3.
E. Acquisition of real estate reaching $300 million or 20% of paid-in capital or more: None.
F. Disposal of real estate reaching $300 million or 20% of paid-in capital or more: None.
G. Purchases or sales of goods from or to related parties reaching $100 million or 20% of paid-in capital or more: Please refer to Table 4.
H. Receivables from related parties reaching $100 million or 20% of paid-in capital or more: Please refer to Table 5.
I. Trading in derivative instruments undertaken during the reporting periods: Please refer to Note 6(2).
J. Significant inter-company transactions during the reporting period: Please refer to Table 6.

(2) Information on investees

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

(3) Information on investments in Mainland China

A. Basic information: Please refer to Table 8.

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

(4) Major shareholders information

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

14. SEGMENT INFORMATION

(1) General information

The Group is primarily engaged in the research, development, design, manufacture and sales of TFT-LCD 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:

segments is as follows:
	For the three-monthperiods ended March 31,
	2022 2021
Segment revenue Segment income Depreciation and amortization Capital expenditure-property, plant and equipment	TFT LCD	TFT LCD
	$ 69,886,018	$ 83,838,696
	$ 2,329,339	$ 12,597,858
	$ 8,525,280	$ 9,068,942
	$ 5,197,045 $ 3,469,955
Segment assets	$ 466,724,772 $ 403,836,497

(3) Reconciliation for segment income

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

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Table 1

Innolux Corporation and Subsidiaries Loans to others For the three-month period ended March 31, 2022

Expressed in thousands of NTD (Except as otherwise indicated)

No.	Creditor	Borrower	General ledger account	Is a related party	Maximum outstanding balance during the three-month period ended March 31, 2022	Balance as at March 31, 2022	Actual amount drawn down	Interest rate	Nature of loan	Amount of transactions with the borrower	Reason for short-term financing	Allowance for doubtful accounts	Coll	ateral	Limit on loans granted to a singleparty	Ceiling on total loansgranted	Footnote
													Item	Value
1 1 1 1 1 2 3 4	Innocom Technology (Shenzhen) Co., Ltd. Innocom Technology (Shenzhen) Co., Ltd. Innocom Technology (Shenzhen) Co., Ltd. Innocom Technology (Shenzhen) Co., Ltd. Innocom Technology (Shenzhen) Co., Ltd. Innolux Japan Co., Ltd. Innolux Holding Limited Warriors Technology Investments Ltd	Foshan Innolux Optoelectronics Ltd. Ningbo Innolux Optoelectronics Ltd. Ningbo Innolux Display Ltd. Shanghai Innolux Optoelectronics Ltd. Nanjing Innolux Optoelectronics Ltd. Innolux Corporation Innolux Corporation Innolux Corporation	Other receivables Other receivables Other receivables Other receivables Other receivables Other receivables Other receivables Other receivables	Yes Yes Yes Yes Yes Yes Yes Yes	$ 4,508,438 2,254,219 2,254,219 1,352,531 3,155,906 2,298,435 218,156 3,377,750	$ 4,508,438 2,254,219 2,254,219 1,352,531 3,155,906 2,298,435 218,156 3,377,750	$ 4,508,438 1,172,194 2,254,219 1,172,194 3,065,739 2,298,435 218,156 3,377,750	2.00% 2.00% 2.00% 2.00% 2.00% 1.00% 0.00% 0.00%	Short-term financing Short-term financing Short-term financing Short-term financing Short-term financing Long-term and short- term financing Long-term and short- term financing Long-term and short- term financing	$ — — — — — — — —	Operating support Operating support Operating support Operating support Operating support Operating support Operating support Operating support	$ — — — — — — — —	— — — — — — — —	$ — — — — — — — —	24,644,706 24,644,706 24,644,706 24,644,706 24,644,706 6,786,548 37,008,450 11,880,048	24,644,706 A 24,644,706 A 24,644,706 A 24,644,706 A 24,644,706 A 6,786,548 A 37,008,450 A 11,880,048 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 or reviewed 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, based on the most recent audited or reviewed financial statements of the creditor.

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

Table 2

Innolux Corporation and Subsidiaries

Holding of marketable securities at the end of the year (not including subsidiaries, associates and joint ventures) March 31, 2022

Expressed in thousands of NTD (Except as otherwise indicated)

		Relationship with the securities issuer			As of March 31, 2022	As of March 31, 2022
Securities held by	Marketable securities		General ledger account	Shares/Units	Book value	Ownership (%)	Fair value Footnote
	Common stock
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. Yuan Chi Investment Co., Ltd. InnoJoy Investment Corporation	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 VISIONATICS INC. Advanced Optoelectronic Technology, Inc.	None None Other related party None None None None None None None None None None None None None Other related party None	Financial assets at fair value through profit or loss Financial assets at fair value through profit or loss Financial assets at fair value through profit or loss Financial assets at fair value through 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 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 1,200,000 6,964,222	$ 15,929 1,257,556 27,726 683,675 160,057 — 24,164 2,124,131 64,496 14,071 68,411 69,708 — 3,764 76,608 8,738 5,571 167,142	1 3 19 8 — — 12 4 — — — — 3 — 1 — 12 5	$ 15,929 1,257,556 27,726 683,675 160,057 — 24,164 2,124,131 64,496 14,071 68,411 69,708 — 3,764 76,608 8,738 5,571 167,142

Table�2�,�Page�1

		Relationship with the securities issuer			As of March 31, 2022	As of March 31, 2022
Securities held by	Marketable securities		General ledger account	Shares/Units	Book value	Ownership (%)	Fair value Footnote
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 Innolux Corporation Innolux Corporation Innolux Corporation	Common stock 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 Capital Money Market Fund Union Money Market Fund Cathay Taiwan Money Market Fund	None Other related party None None None None None None None None None Other related party Other related party None None None 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 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 5,164,587 150,267,533 92,184,251 66,065,266 7,975,245	$ 68,211 173,393 1,849,500 956,586 236,673 39,161 21,689 51,128 14,361 2,160,147 1,490 — 9,302 21,461 1,002,510 2,473,655 931,248 2,253,472 1,503,258 881,568 100,213	— 7 5 — 8 6 11 3 — 7 14 19 11 — — — — — — — —	$ 68,211 173,393 1,849,500 956,586 236,673 39,161 21,689 51,128 14,361 2,160,147 1,490 — 9,302 21,461 1,002,510 2,473,655 931,248 2,253,472 1,503,258 881,568 100,213

Table�2�,�Page�2

		Relationship with the securities issuer			As of March 31, 2022	As of March 31, 2022
Securities held by	Marketable securities		General ledger account	Shares/Units	Book value	Ownership (%)	Fair value Footnote
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. Innolux Corporation Innolux Corporation Innolux Corporation Innolux Corporation Innolux Corporation Innolux Corporation Innolux Corporation Innolux Corporation Innolux Corporation	Beneficiarycertificates Mega Diamond Money Market Fund FSITC Taiwan Money Market Yuanta De-Li Money Market Fund Hua Nan Phoenix Money Market Fund Financialproducts Fixed Income RMB-Structured Deposits Fixed Income Structured Linked Deposit Chang Jiang Sheng Shih Ru Yi Serials A congregate group pension plan Chang Jiang Sheng Shih Ru Yi Serials A congregate group pension plan Chang Jiang Sheng Shih Ru Yi Serials A congregate group pension plan Chang Jiang Sheng Shih Ru Yi Serials A congregate group pension plan Chang Jiang Sheng Shih Ru Yi Serials A congregate group pension plan Chang Jiang Sheng Shih Ru Yi Serials A congregate group pension plan Chang Jiang Sheng Shih Ru Yi Serials A congregate group pension plan Chang Jiang Sheng Shih Ru Yi Serials A congregate group pension plan Bonds Taiwan Mobile Co., Ltd. Nan Ya Plastics Corporation Hon Hai Precision Industry Co., Ltd. ,2017,Third Taiwan Power Company,2012,Fourth Fubon Financial Holding Co., Ltd. Highwealth Construction corp. Hon Hai Precision Industry Co., Ltd. ,2017,Second Far Eastern New Century Corporation Co.,Ltd. Far Eastone Telecommunications, 2017,Third	None None None None None None None None None None None None None None None None None None None None None None None	Financial assets at fair value through profit or loss Financial assets at 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 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	181,530,803 90,561,003 18,225,781 46,301,937 — — — — — — — — — — — — — — — — — — —	$ 2,302,682 1,402,029 300,366 760,722 496,006 4,866,250 4,568 16,713 131 21,601 656 9,463 3,991 3,026 201,319 251,211 200,853 100,666 250,991 251,785 200,518 250,993 100,742	— — — — 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	$ 2,302,682 1,402,029 300,366 760,722 496,006 4,866,250 4,568 16,713 131 21,601 656 9,463 3,991 3,026 199,994 249,750 200,246 100,422 250,750 249,998 200,236 249,675 99,990

Table�2�,�Page�3

		Relationship with the securities issuer			As of March 31, 2022	As of March 31, 2022
Securities held by	Marketable securities		General ledger account	Shares/Units	Book value	Ownership (%)	Fair value Footnote
Innolux Corporation Innolux Corporation Innolux Corporation Innolux Corporation Innolux Corporation Innolux Corporation Innolux Corporation Innolux Corporation Innolux Corporation Innolux Corporation Innolux Corporation Innolux Corporation Innolux Corporation Innolux Corporation Innolux Corporation Innolux Corporation Innolux Corporation Innolux Corporation Innolux Corporation Innolux Corporation Innolux Corporation Innolux Corporation Innolux Corporation Innolux Corporation Innolux Corporation Innolux Corporation Innolux Corporation Innolux Corporation Innolux Corporation Innolux Corporation Innolux Corporation Innolux Corporation	Bonds Far Eastone Telecommunications, 2018,First Taipei Financial Center Corporation Taiwan Semiconductor Manufacturing Co.,Ltd. Chang Chun Petrochemical Co., Ltd. CPC Corporation, Taiwan Taiwan Power Company,2012,Third China Steel Corporation CTBC Financial Holding Co., Ltd. ADCB Finance Cayman LTD. Agricultural Bank of China (New York Branch) Arab Petroleum Investments Corporation Bank of Communications (Hong Kong Branch) Daimler Finance North America LLC Doosan Infracore Co., Ltd. Emirates NBD Bank PJSC FAB Sukuk Co. Ltd. GS Caltex Corporation Hyundai Capital America Hyundai Capital Services, Inc. Industrial and Commercial Bank of China Limited (Hong Kong Branch) KIA Corporation Korea Resources Corporation NongHyup Bank POSCO Saudi Electricity Global SUKUK Company 4 Shinhan Bank Siam Commercial Bank Cayman Islands Sinopec Capital 2013 LTD. SK broadband CO.LTD. Societe Generale SA Sumitomo Corporation Sumitomo Mitsui Trust Bank	None None None None None None None None None None None None None None None None None None None None None None None None None None None None None None None None	Financial assets at 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 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	— — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — —	$ 100,667 200,915 100,906 250,703 50,271 100,453 125,516 150,696 148,240 272,912 161,353 172,746 148,228 230,365 286,250 235,721 148,912 35,739 260,312 258,863 284,147 296,358 178,110 268,980 273,999 271,602 201,068 33,508 149,708 271,501 57,788 287,537	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 Not applicable Not applicable Not applicable Not applicable Not applicable Not applicable Not applicable Not applicable Not applicable Not applicable	$ 99,945 200,074 100,518 250,255 50,191 100,328 125,378 150,539 145,245 262,437 156,769 172,251 145,014 224,159 280,014 231,484 144,945 34,745 257,955 251,897 277,741 290,382 172,792 261,339 262,561 261,940 195,956 32,761 145,005 261,500 57,482 274,169

Table�2�,�Page�4

Innolux Corporation and Subsidiaries

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

For the three-month period ended March 31, 2022

					For the three-month period	For the three-month period	ended March 31, 2022	ended March 31, 2022
Table 3												Expressed in thousands of NTD (Except as otherwise indicated)



	Marketable			Relationship with the	Balance as at January1,2022		Addition(Note 3)			Disposal(Note 3)			Balance as at March 31,2022
Investor	securities (Note 1)	General ledger account	Counterparty (Note 2)	investor (Note 2)	Shares/Units	Amount	Shares/Units	Amount	Shares/ Units	Selling price	Book value	Gain (loss) on disposal	Shares/Units Amount
Ningbo Innolux Optoelectronics Ltd. Ningbo Innolux Optoelectronics Ltd.	Floating Income RMB-Structured Deposits Floating Income RMB-Structured Deposits	Note 4 Note 4	— —	— —	— —	$ 1,315,317 1,954,213	— —	$ — —	— —	$ 1,308,119 1,944,648	$ 1,308,119 1,944,648	$ — —	— $ — — —

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.

Table�3�,�Page�1

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 three-month period ended March 31, 2022

Expressed in thousands of NTD (Except as otherwise indicated)

				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)
Purchaser/seller	Counterparty	Relationship with the counterparty	Purchases (sales)	Amount	Percentage of total purchases (sales)	Credit term	Unitprice	Credit term	Balance	Percentage of total notes/accounts receivable(payable) Footnote
Innolux Corporation Innolux Corporation Innolux Corporation Innolux Corporation Innolux Corporation Innolux Corporation Innolux Corporation Innolux Corporation Innolux Corporation Innolux Corporation Innolux Corporation	Innolux USA Inc. CARUX TECHNOLOGY PTE. LTD. Hon Hai Precision Industry Co., Ltd. Foshan Innolux Optoelectronics Ltd. HONGFUJIN PRECISION ELECTRONICS (YANTAI) CO., LTD. Honfujin Precision Electronics (Chongqing) Co., Ltd. InnoCare Optoelectronics Corporation PanelSemi Corporation Hon Hai Precision Industry Co., Ltd. Foshan Innolux Optoelectronics Ltd. Ningbo Innolux Display Ltd.	An indirect wholly- owned subsidiary An indirect wholly- owned subsidiary Same major stockholder 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. A subsidiary of the Company Associates Same major stockholder An indirect wholly- owned subsidiary An indirect wholly- owned subsidiary	Sales Sales Sales Sales Sales Sales Sales Sales Purchases Processing expense Processing expense	$ 3,677,239 2,114,708 512,514 485,453 371,412 159,787 130,761 105,791 100,755 7,646,542 7,404,438	6 3 1 1 1 — — — — 13 13	120 days 60 days 90 days 60-90 days 60 days 45 days 90 days 60 days 90 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 Single purchases target, no basis 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	$ 3,125,553 4,701,883 1,069,654 66,364 106,162 163,706 188,789 94,882 (620,247) (4,747,405) (7,815,109)	6 8 2 — — — — — 1 9 16

Table�4�,�Page�1

				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)
Purchaser/seller	Counterparty	Relationship with the counterparty	Purchases (sales)	Amount	Percentage of total purchases (sales)	Credit term	Unitprice	Credit term	Balance	Percentage of total notes/accounts receivable(payable) Footnote
Innolux Corporation Innolux Corporation CarUX Technology Inc. Shanghai Innolux Optoelectronics Ltd. Ningbo Innolux Optoelectronics Ltd. Ningbo Innolux Display Ltd. InnoCare Optoelectronics Corporation InnoCare Optoelectronics Corporation Ningbo Innolux Display Ltd. Ningbo Innolux Optoelectronics Ltd. Innolux Europe B.V.	Ningbo Innolux Optoelectronics Ltd. Nanjing Innolux Optoelectronics Ltd. CARUX TECHNOLOGY PTE. LTD. CARUX TECHNOLOGY PTE. LTD. Ningbo Innolux Display Ltd. Ningbo Innolux Optoelectronics Ltd. InnoCare Optoelectronics Japan Co., Ltd. InnoCare Optoelectronics USA, INC. Hon Hai Precision Industry Co., Ltd. Hon Hai Precision Industry Co., Ltd. CARUX TECHNOLOGY PTE. LTD.	An indirect wholly- owned subsidiary An indirect wholly- owned subsidiary 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 Same major stockholder Same major stockholder An indirect wholly- owned subsidiary	Processing expense Processing expense Processing revenue Processing revenue Sales Sales Sales Sales Purchases Purchases Service revenue	$ 5,837,209 3,036,213 1,820,487 1,672,399 2,335,994 557,326 150,593 147,779 737,189 542,358 214,671	10 5 100 73 19 5 35 35 7 4 99	60 days 60 days 60 days 60 days 60 days 60 days 60 days 60 days 90 days 90 days 60 days	Cost plus Cost plus Similar with general transactions Similar with general transactions Similar with general transactions Similar with general transactions Similar with general transactions Similar with general transactions Similar with general transactions Similar with general transactions Similar with general transactions	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	$ (8,861,510) (3,256,149) 1,926,020 786,543 1,684,261 400,255 154,074 161,478 (871,518) (655,200) 149,312	18 6 98 51 14 4 39 40 8 6 100

Table�4�,�Page�2

Innolux Corporation and Subsidiaries

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

March 31, 2022

Table 5

Expressed in thousands of NTD (Except as otherwise indicated)

Creditor	Counterparty	Relationship with the counterparty	Balance as at March 31, 2022 (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 Innolux Corporation Innolux Corporation Ningbo Innolux Optoelectronics Ltd. Ningbo Innolux Display Ltd. Foshan Innolux Optoelectronics Ltd. Nanjing Innolux Optoelectronics Ltd.	CARUX TECHNOLOGY PTE. LTD. Innolux USA Inc. CARUX TECHNOLOGY PTE. LTD. Hon Hai Precision Industry Co., Ltd. CarUX Technology Inc. Innolux USA Inc. InnoCare Optoelectronics Corporation Honfujin Precision Electronics (Chongqing) Co., Ltd. HONGFUJIN PRECISION ELECTRONICS (YANTAI) CO., LTD. Innolux Corporation Innolux Corporation Innolux Corporation Innolux Corporation	An indirect wholly-owned subsidiary An indirect wholly-owned subsidiary An indirect wholly-owned subsidiary Same major stockholder An indirect wholly-owned subsidiary 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 of Hon Hai Precision Industry Co., Ltd. Ultimate parent company Ultimate parent company Ultimate parent company Ultimate parent company	$ 4,701,883 1.93 3,125,553 4.41 1,156,753 — (Shownasother receivables) 1,069,654 2.09 455,908 — 344,949 — (Shown as other receivables) 188,789 1.56 163,706 3.38 106,162 13.61 8,861,510 3.04 7,815,109 4.18 4,747,405 6.64 3,256,149 7.46		$ 3,218,340 — 434,884 — 454,740 — 15,454 44,697 — 224,823 — — 326,270	Subsequent collection — Subsequent collection — Subsequent collection — Subsequent collection Subsequent collection — Subsequent collection — — Subsequent collection	$ 415,868 $ — 1,279,740 — — — 166,277 — 100,000 — — — — — 52,616 — — — 3,264,595 — 3,744,503 — 4,747,405 — 1,612,503 —

Table�5�,�Page�1

Creditor	Counterparty	Relationship with the counterparty	Balance as at March 31, 2022 (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. Shanghai Innolux Optoelectronics Ltd. Ningbo Innolux Display Ltd. InnoCare Optoelectronics Corporation Innocom Technology (Shenzhen) Co., Ltd. InnoCare Optoelectronics Corporation Innolux Europe B.V.	CARUX TECHNOLOGY PTE. LTD. Ningbo Innolux Display Ltd. CARUX TECHNOLOGY PTE. LTD. Ningbo Innolux Optoelectronics Ltd. InnoCare Optoelectronics USA, INC. Innolux Corporation InnoCare Optoelectronics Japan Co., Ltd. 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 Ultimate parent company An indirect wholly-owned subsidiary An indirect wholly-owned subsidiary	$ 1,926,020 1,684,261 786,543 400,255 161,478 155,456 154,074 149,312	3.86 5.94 6.32 6.15 3.78 0.40 5.91 5.86	$ 20,759 — — — 50,660 58,340 — —	Subsequent collection — — — Subsequent collection Subsequent collection — —	$ 858,771 $ — 778,258 — 786,543 — 184,094 — 50,660 — — — 57,386 — 82,921 —

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

Table 6

Innolux Corporation and Subsidiaries

Significant inter-company transactions during the reporting period

For the three-month period ended March 31, 2022

Expressed in thousands of NTD (Except as otherwise indicated)

Number (Note A)	Companyname	Counterparty	Relationship (Note B)		Transaction(Note D and E)	Transaction(Note D and E)
				General ledger account	Amount	Transaction terms(Note C) Percentage of consolidated total operatingrevenues or total assets
0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 1 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 Shanghai Innolux Optoelectronics Ltd. Shanghai Innolux Optoelectronics Ltd. Innolux Europe B.V.	Innocom Technology (Shenzhen) Co., Ltd. Nanjing Innolux Optoelectronics Ltd. Nanjing Innolux Optoelectronics Ltd. Ningbo Innolux Optoelectronics Ltd. Ningbo Innolux Optoelectronics Ltd. Foshan Innolux Optoelectronics Ltd. Foshan Innolux Optoelectronics Ltd. Foshan Innolux Optoelectronics Ltd. Ningbo Innolux Display Ltd. Ningbo Innolux Display Ltd. Innolux USA Inc. Innolux USA Inc. Innolux USA Inc. CarUX Technology Inc. InnoCare Optoelectronics Corporation InnoCare Optoelectronics Corporation CARUX TECHNOLOGY PTE. LTD. CARUX TECHNOLOGY PTE. LTD. CARUX TECHNOLOGY PTE. LTD. CARUX TECHNOLOGY PTE. LTD. CARUX TECHNOLOGY PTE. LTD. CARUX TECHNOLOGY PTE. LTD. CARUX TECHNOLOGY PTE. LTD.	1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 3 3 3	Accrued expenses Processing expense Accrued expenses Processing expense Accrued expenses Sales Processing expense Accrued expenses Processing expense Accrued expenses Sales Accounts receivable Other receivables Accounts receivable Sales Accounts receivable Sales Service revenue Accounts receivable Other receivables Processing revenue Accounts receivable Service revenue	$ (155,456) 3,036,213 (3,256,149) 5,837,209 (8,861,510) 485,453 7,646,542 (4,747,405) 7,404,438 (7,815,109) 3,677,239 3,125,553 344,949 455,908 130,761 188,789 2,114,708 155,687 4,701,883 1,156,753 1,672,399 786,543 214,671	— — — 4 — 1 — 8 — 2 — 1 — 11 — 1 — 11 — 2 — 5 — 1 — — — — — — — — — 3 — — — 1 — — — 2 — — — —

Table�6�,�Page�1

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
2 3 3 4 4 5 5 6 6 6 6	Innolux Europe B.V. Ningbo Innolux Optoelectronics Ltd. Ningbo Innolux Optoelectronics Ltd. Ningbo Innolux Display Ltd. Ningbo Innolux Display Ltd. CarUX Technology Inc. CarUX Technology Inc. InnoCare Optoelectronics Corporation InnoCare Optoelectronics Corporation InnoCare Optoelectronics Corporation InnoCare Optoelectronics Corporation	CARUX TECHNOLOGY PTE. LTD. Ningbo Innolux Display Ltd. Ningbo Innolux Display Ltd. Ningbo Innolux Optoelectronics Ltd. Ningbo Innolux Optoelectronics Ltd. CARUX TECHNOLOGY PTE. LTD. CARUX TECHNOLOGY PTE. LTD. InnoCare Optoelectronics Japan Co., Ltd. InnoCare Optoelectronics Japan Co., Ltd. InnoCare Optoelectronics USA, INC. InnoCare Optoelectronics USA, INC.	3 3 3 3 3 3 3 3 3 3 3	Accounts receivable Sales Accounts receivable Sales Accounts receivable Processing revenue Accounts receivable Sales Accounts receivable Sales Accounts receivable	$ 149,312 2,335,994 1,684,261 557,326 400,255 1,820,487 1,926,020 150,593 154,074 147,779 161,478	— — — 3 — — — 1 — — — 3 — — — — — — — — — —

Note A: The information of transactions between the Company and the consolidated subsidiaries should be noted in “Number” column.

(1) Number 0 represents the parent company.

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

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

3 refers to the subsidiary to the subsidiary.

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

prices and payment term was 30~120 days upon receipt of goods.

Note D: Amount disclosure standard: purchases, sales and receivables from related parties in excess of $100 million or 20% of capital.

Note E: For the information on transactions between the Company and the consolidated subsidiaries relating to nature of loan, please refer to Table 1.

Table�6�,�Page�2

Table 7

Innolux Corporation and Subsidiaries

Information on investees

For the three-month period ended March 31, 2022

Expressed in thousands of NTD (Except as otherwise indicated)

Investor	Investee	Location	Main business activities	Initial investment amount	Initial investment amount	Shares held as at March	Shares held as at March	31,2022	Net profit (loss) of the investee for the three- month period ended March 31, 2022	Investment income (loss) recognized by the Company for the three- month period ended March 31, 2022 Footnote
				Balance as at March 31, 2022	Balance as at December 31, 2021	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 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. eLux Inc.	Samoa Samoa Samoa BVI Hong Kong Singapore Taiwan Taiwan Taiwan Japan USA Taiwan Taiwan Cayman Taiwan USA	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 R&D of MicroLED technology	$ 6,192,509 62,197 33,438,542 3,674,115 3,231,780 754,943 1,217,235 1,674,054 205,000 1,682,751 — 451,168 35,300 1,717,714 73,500 91,155	$ 6,192,509 62,197 33,438,542 3,674,115 3,231,780 754,943 1,217,235 1,674,054 205,000 1,682,751 — 451,168 35,300 1,717,714 73,500 91,155	180,568,185 1,656,410 709,450,000 146,847,000 1,158,844,000 25,400,000 — 167,405,392 20,500,000 98 4,333 41,288,528 2,647,507 14,062,500 7,350,000 300,000	100 100 100 100 100 100 100 100 59 54 35 76 40 50 49 28	$ 18,504,225 103,306 51,640,469 6,303,361 6,209,171 148,451 879,031 3,119,867 388,453 1,847,298 — 420,569 29,181 827,670 340,122 3,975	$ 36,861 962 (123,984) (119,894) (89,173) (79,453) (276) (15,772) 36,450 (191,716) — (8,301) (1,171) (7,949) 43,841 (12,535)	$ 36,861 962 (123,984) (119,894) (88,696) (79,453) (276) (15,772) 21,393 (104,370) — (6,344) (469) (3,975) 21,482 (3,045)

Table�7�,�Page�1

Investor	Investee	Location	Main business activities	Initial investment amount	Initial investment amount	Shares held as at March	Shares held as at March	31,2022	Net profit (loss) of the investee for the three- month period ended March 31, 2022	Investment income (loss) recognized by the Company for the three- month period ended March 31, 2022 Footnote
				Balance as at March 31, 2022	Balance as at December 31, 2021	Number of shares	Ownership (%)	Book value
Innolux Corporation Innolux Holding Limited Innolux Holding Limited Toppoly Optoelectronics (B.V.I.) Ltd. Innolux Hong Kong Holding Limited Innolux Hong Kong Holding Limited Innolux Hong Kong Holding Limited CarUX Holding Limited CARUX TECHNOLOGY PTE. LTD. CARUX TECHNOLOGY PTE. LTD. CARUX TECHNOLOGY PTE. LTD. Innolux Japan Co., Ltd. Rockets Holding Limited Rockets Holding Limited Suns Holding Ltd Innolux Europe B.V. Innolux Singapore Holding Pte. Ltd. Innolux Singapore Holding Pte. Ltd.	PanelSemi Corporation Rockets Holding Limited Suns Holding Ltd Toppoly Optoelectronics (Cayman) Ltd. Innolux Hong Kong Limited Innolux Japan Co., Ltd. CarUX Holding Limited CARUX TECHNOLOGY PTE. LTD. Innolux Optoelectronics Hong Kong Holding Limited Innolux Europe B.V. CarUX Technology Inc. Innolux USA Inc. Stanford Developments Limited Nets Trading Ltd. Warriors Technology Investments Ltd Innolux Technology Germany GmbH INNOLUX OPTOELECTRONICS INDIA PRIVATE LIMITED INNOLUX OPTOELECTRONICS PHILIPPINES CORP.	Taiwan Samoa Samoa Cayman Hong Kong Japan Cayman Singapore Hong Kong Netherlands Taiwan USA Samoa Samoa Samoa Germany India Philippines	Manufacturing of electronic parts Investment holdings Investment holdings Investment holdings Distribution company Holdings, R&D and distribution company Investment holdings Holdings and distribution company Investment holdings Holding, distribution and R&D testing company R&D, manufacturing and distribution company Distribution company Investment holdings Investment company Investment company Testing and maintenance company Distribution company Manufacturer and distribution company	$ 250,000 5,222,180 555,422 3,650,192 — 1,815,603 3,772,473 3,769,371 1,818,180 464,341 1,400,000 369,092 5,391,125 27,477 555,422 33,735 607,284 28,733	$ 250,000 5,222,180 555,422 3,650,192 — 1,815,603 3,772,473 3,769,371 1,818,180 464,341 1,400,000 369,092 5,391,125 27,477 555,422 33,735 607,284 28,733	25,000,000 160,504,550 18,177,052 146,817,000 35,000,000 82 125,231,749 125,131,749 162,897,802 375,810 140,000,000 12,842 164,000,000 900,001 18,177,052 100,000 144,095,499 5,000,000	45 100 100 100 100 46 100 100 100 100 100 100 100 100 100 100 100 100	$ 225,291 12,346,017 5,940,025 6,303,027 1,597,105 1,545,976 3,053,264 3,050,900 2,161,679 452,066 1,571,150 697,695 12,322,401 23,488 5,940,024 20,673 6,704 25,959	$ (40,416) 43,855 (6,994) (119,894) (553) (191,716) (1,274) (1,176) 22,092 10,789 93,461 (226,535) 43,855 — (6,994) 299 (78,616) 6	$ (18,371) 43,855 (6,994) (119,894) (553) (87,346) (1,274) (1,176) 69,148 10,789 140,855 (226,535) 43,855 — (6,994) 299 (78,616) 6

Table�7�,�Page�2

Investor	Investee	Location	Main business activities	Initial investment amount	Initial investment amount	Shares held as at March	Shares held as at March	31,2022	Net profit (loss) of the investee for the three- month period ended March 31, 2022	Investment income (loss) recognized by the Company for the three- month period ended March 31, 2022 Footnote
				Balance as at March 31, 2022	Balance as at December 31, 2021	Number of shares	Ownership (%)	Book value
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 GIO Optoelectronics Corp. 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 Taiwan Taiwan Taiwan Taiwan Japan USA Netherlands Mauritius	Distribution company Holdings, R&D, manufacturing and distribution company Investment company Investment company Investment company Distribution company Distribution company After-sales service company Investment holdings	$ — 858 15,000 122,561 7,439 87,149 27,963 1,661 298,113	$ — 858 15,000 47,139 2,861 87,149 27,963 1,661 298,113	1 77,235 1,500,000 — — 30,010 900,000 500 10,000,000	— — 100 16 1 100 100 100 100	$ — 799 18,401 141,255 8,574 77,345 27,535 2,185 101,677	$ (78,616) (8,301) 1,707 (5,656) (5,656) 2,935 5,009 182 5	$ — (12) 1,707 (932) (56) 2,935 5,009 182 5

Table�7�,�Page�3

Innolux Corporation and Subsidiaries Information on investments in Mainland China For the three-month period ended March 31, 2022

Table 8

Expressed in thousands of NTD (Except as otherwise indicated)

Investee in Mainland China	Main business activities	Paid-in capital (Note A)	Investment method (Note C)	Accumulated amount of remittance from Taiwan to Mainland China as of January 1, 2022	Amount rem Taiwan to Mai Amount remi Taiwan for the period ended 202	itted from nland China/ tted back to three-month March 31, 2	Accumulated amount of remittance from Taiwan to Mainland China as of March 31, 2022	Net income of investee for the three-month period ended March 31, 2022	Ownership held by the Company (direct or indirect)	Investment income (loss) recognized by the Company for the three- month period ended March 31, 2022 (Note B)	Book value of investments in Mainland China as of March 31, 2022	Accumulated amount of investment income remitted back to Taiwan as of March 31, 2022	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.	Manufacturing and selling of LCD backend module and related components Manufacturing and selling of electronic paper	$ 4,694,500	2 2 2 2 2 2 2 2 2 2	$ 3,632,848	$ —	$ —	$ 3,632,848	$ 43,855	100	$ 43,855	$ 12,322,353	$ 1,061,652	2.1 2.2 2.3 2.3 2.3 2.4 2.4 2.5 2.6 2.7
		344,954		57,250 210,825 10,963,375 4,580,000 60,113 4,123,019 — 42,938 286,250	— — — — — — — — —	— — — — — — — — —	57,250 210,825 10,963,375 4,580,000 60,113 4,123,019 — 42,938 286,250	(22,584) (346,126) 143,231 78,372 2,040 (121,934) 22,092 960 5	3 100 100 100 100 100 100 100 77	— (346,126) 143,770 78,372 2,040 (121,934) 22,092 960 4	26,325 22,698,549 22,959,156 5,981,680 656,649 5,646,357 2,204,618 98,632 77,900	— 4,941,675 — — — — — — —
	Manufacturing and selling of LCD backend module and related components	8,873,750 10,963,375 4,580,000 60,113 4,465,500 601,125 42,938 286,250
	Manufacturing and selling of LCD backend module and related components
	Manufacturing and selling of LCD backend module and related components Purchases and sales of monitor-related components company Manufacturing and selling of LCD backend module and related components Manufacturing and selling of LCD backend module and related components Warehousing services Manufacturing
Ningbo CarUX Technology Ltd.	Manufacturing and selling of LCD backend module and related components	1,262,576	3	—	—	—	—	(77,103)	100	(76,874)	982,848	—
Ningbo Innolux Electronics Ltd.	Manufacturing and selling of medical equipment	69,306	1	90,799	—	—	90,799	(2,393)	59	(2,393)	105,527	—

Table�8�,�Page�1

Ceiling on investments in Mai	nland China:
Companyname	Accumulated amount of remittance from Taiwan to Mainland China as of March 31, 2022	Investment amount approved by the Investment Commission of the Ministry of Economic Affairs (MOEA)	Ceiling on investments in Mainland China imposed by the Investment Commission of MOEA
Innolux Corporation	$ 23,200,843	$ 31,007,506	(Note D)

==> picture [218 x 113] intentionally omitted <==

Note A: The relevant figures were listed in NT$. Where foreign currencies were involved, the figures were converted to NT$ using exchange rate.

Note B: Profit or loss recognized for the three-month period ended March 31, 2022 was reviewed by independent auditors.

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 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 2022

52330_rns_2022-12-30_3f60f5db-8359-4d51-a45c-b8d7e162b64d.pdf

INNOLUX CORPORATION AND SUBSIDIARIES

INDEPENDENT AUDITORS’ REVIEW REPORT

Introduction

Scope of review

Conclusion

Other matter - Reference to the reviews of other auditors

INNOLUX CORPORATION AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

MARCH 31, 2022, DECEMBER 31, 2021 AND MARCH 31, 2021

INNOLUX CORPORATION AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

MARCH 31, 2022, DECEMBER 31, 2021 AND MARCH 31, 2021

INNOLUX CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME FOR THE THREE-MONTH PERIODS ENDED MARCH 31, 2022 AND 2021

INNOLUX CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME FOR THE THREE-MONTH PERIODS ENDED MARCH 31, 2022 AND 2021

INNOLUX CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

FOR THE THREE-MONTH PERIODS ENDED MARCH 31, 2022 AND 2021

INNOLUX CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE THREE-MONTH PERIODS ENDED MARCH 31, 2022 AND 2021

INNOLUX CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE THREE-MONTH PERIODS ENDED MARCH 31, 2022 AND 2021

INNOLUX CORPORATION AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

FOR THE THREE-MONTH PERIODS ENDED MARCH 31, 2022 AND 2021

1. HISTORY AND ORGANIZATION

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

STATEMENTS AND PROCEDURES FOR AUTHORIZATION

3. APPLICATION OF NEW STANDARDS, AMENDMENTS AND INTERPRETATIONS

the Group

(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) Dividends

5. CRITICAL ACCOUNTING JUDGEMENTS, ESTIMATES AND KEY SOURCES OF

ASSUMPTION UNCERTAINTY

6. DETAILS OF SIGNIFICANT ACCOUNTS

(1) Cash and cash equivalents

(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

(9) Leasing arrangements－lessee

(10) Investment property

(11) Intangible assets

(12) Short-term borrowings

(13) Other payables

(14) Bonds payable

- (15) Long term borrowings

－ (b) Employee stock options InnoCare Company

(18) Provisions-current

A. Warranty

B. Litigation and others

(19) Share capital

(20) Capital surplus

(21) Retained earnings

(26) Other gains and losses

(27) Finance costs

(28) Expenses by nature

(29) Employees’ compensation and directors’ remuneration

(30) Income tax

A. Income tax expense

(31) Earnings per share

(32) Supplemental cash flow information

(33) Changes in liabilities from financing activities

7. RELATED PARTY TRANSACTIONS

(1) Names and relationship of related parties

(2) Significant related party transactions

C. Receivables from related parties

D. Payables to related parties

E. Property transactions

Purchase of property

(a) Acquisition of property, plant and equipment:

8. PLEDGED ASSETS

9. SIGNIFICANT CONTINGENT LIABILITIES AND UNRECOGNIZED CONTRACT COMMITMENTS

(2) Commitments

10. SIGNIFICANT DISASTER LOSS

12. OTHERS

INX Interim / Quarterly Report 2022