English Translation of a Report and Consolidated Financial Statements Originally Issued in Chinese

ITE TECH. INC. AND SUBSIDIARIES

CONSOLIDATED FINANCIAL STATEMENTS WITH REPORT OF INDEPENDENT AUDITORS FOR THE SIX-MONTH PERIODS ENDED JUNE 30, 2022 AND 2021

Notice to Readers

The reader is advised that these consolidated financial statements have been prepared originally in Chinese. In the event of a conflict between these financial statements and the original Chinese version or difference in interpretation between the two versions, the Chinese language financial statements shall prevail.

ITE TECH. INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS June 30, 2022, December 31, 2021 and June 30, 2021 (June 30, 2022 and 2021 are unaudited) (Expressed in Thousands of New Taiwan Dollars)

				As of
ASSETS	Notes	June	30, 2022		December 31, 2021	June 30, 2021
Current assets
Cash and cash equivalents	6(1)	\$1,911,902	22.98	\$1,975,925	22.87	\$2,370,825	29.89
Financial assets at fair value through profit or loss-current	6(2)	1,736,378	20.87	1,533,832	17.75	1,334,140	16.82
Notes receivables, net	6(5),6(16)	15,535	0.19	9,248	0.11	9,467	0.12
Trade receivables, net	6(6),6(16)	772,699	9.29	1,034,939	11.98	1,164,465	14.68
Trade receivables from related parties, net	6(6),6(16),7	-	-	3,011	0.04	-	-
Other receivables		966	0.01	6,117	0.07	1,283	0.01
Inventories, net	6(7)	1,343,684	16.15	1,076,888	12.46	661,995	8.34
Prepayments		57,229	0.69	71,506	0.83	43,641	0.55
Other current assets		122	-	120	-	71	-
Total current assets		5,838,515	70.18	5,711,586	66.11	5,585,887	70.41
Non-current assets
Financial assets at fair value through profit or loss-noncurrent	6(2)	70,200	0.84	31,397	0.36	32,725	0.41
Financial assets at fair value through other comprehensive income-noncurrent	6(3)	1,299,991	15.63	1,838,958	21.29	1,271,796	16.03
Financial assets measured at amortized cost-noncurrent	6(4),8	4,230	0.05	4,230	0.05	4,230	0.06
Investments accounted for using the equity method	6(8)	10,649	0.13	13,294	0.15	12,919	0.16
Property, plant and equipment	6(9)	639,441	7.69	636,065	7.36	651,289	8.21
Right-of-use assets	6(17)	88,491	1.06	91,439	1.06	84,929	1.07
Intangible assets	6(10)	224,015	2.69	221,707	2.57	218,552	2.76
Deferred tax assets	4,6(21)	87,387	1.05	72,676	0.84	70,010	0.88
Other non-current assets		56,124	0.68	18,057	0.21	767	0.01
Total non-current assets		2,480,528	29.82	2,927,823	33.89	2,347,217	29.59
Total assets		\$8,319,043	100.00	\$8,639,409	100.00	\$7,933,104	100.00

ITE TECH. INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS June 30, 2022, December 31, 2021 and June 30, 2021 (June 30, 2022 and 2021 are unaudited) (Expressed in Thousands of New Taiwan Dollars)

As of
LIABILITIES AND EQUITY	Notes	June 30, 2022		December 31, 2021		June 30, 2021
Current liabilities
Contract liabilities-current	6(15)	\$4,906	0.06	\$4,996	0.06	\$9,394	0.12
Trade payables		331,962	3.99	620,558	7.18	584,840	7.37
Trade payables to related parties	7	260,563	3.13	298,187	3.45	221,129	2.79
Other payables		2,091,863	25.15	699,135	8.09	664,012	8.37
Other payables to related parties	7	14,718	0.18	3,105	0.04	4,709	0.06
Current tax liabilities	4,6(21)	238,401	2.87	356,677	4.13	233,620	2.94
Lease liabilities-current	6(17)	7,005	0.08	7,046	0.08	4,463	0.06
Other current liabilities	6(11)	183,187	2.20	182,444	2.11	218,293	2.75
Total current liabilities		3,132,605	37.66	2,172,148	25.14	1,940,460	24.46
Non-current liabilities
Deferred tax liabilities	4,6(21)	49	-	3,043	0.04	783	0.01
Lease liabilities-noncurrent	6(17)	84,157	1.01	86,726	1.00	82,222	1.04
Net defined benefit liabilities-noncurrent	4,6(12)	86,862	1.04	87,858	1.02	83,287	1.05
Deposits received		28,483	0.34	28,483	0.33	25,705	0.32
Total non-current liabilities		199,551	2.39	206,110	2.39	191,997	2.42
Total liabilities		3,332,156	40.05	2,378,258	27.53	2,132,457	26.88
Equity attributable to owners of the parent
Share capital	6(13)
Common stock		1,610,801	19.36	1,610,801	18.64	1,610,801	20.30
Capital surplus	6(13)	1,297,073	15.59	1,458,153	16.88	1,538,693	19.40
Retained earnings	6(13)
Legal reserve		588,175	7.07	414,947	4.80	297,664	3.75
Special reserve		-	-	-	-	211,900	2.67
Undistributed earnings		1,209,845	14.55	1,965,937	22.76	1,864,678	23.51
Other equity		280,993	3.38	811,313	9.39	276,660	3.49
Equity attributable to owners of the parent		4,986,887	59.95	6,261,151	72.47	5,800,396	73.12
Non-controlling interests	6(13)	-	-	-	-	251	-
Total equity		4,986,887	59.95	6,261,151	72.47	5,800,647	73.12
Total liabilities and equity		\$8,319,043	100.00	\$8,639,409	100.00	\$7,933,104	100.00

English Translation of Consolidated Financial Statements Originally Issued in Chinese ITE TECH. INC. AND SUBSIDIARIES UNAUDITED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME For the three-month and six-month periods ended June 30, 2022 and 2021 (Expressed in Thousands of New Taiwan Dollars, Except for Earnings per Share)

				For the three-month periods ended June 30,				For the six-month periods ended June 30,
Description	Notes	2022		2021		2022		2021
Operating revenues	6(15),7	\$1,372,482	100.00	\$1,830,625	100.00	\$2,983,281	100.00	\$3,352,573	100.00
Operating costs	6(7),6(17),6(18),7	(637,719)	(46.46)	(838,823)	(45.82)	(1,396,222)	(46.80)	(1,587,462)	(47.35)
Gross profit		734,763	53.54	991,802	54.18	1,587,059	53.20	1,765,111	52.65
Operating expenses	6(17),6(18),7
Selling expenses		(87,502)	(6.38)	(107,793)	(5.89)	(181,442)	(6.08)	(204,698)	(6.11)
Administrative expenses		(56,081)	(4.09)	(79,473)	(4.34)	(125,171)	(4.20)	(154,254)	(4.60)
Research and development expenses		(212,212)	(15.46)	(248,045)	(13.55)	(443,235)	(14.86)	(452,098)	(13.48)
Expected credit gains	6(16)	-	-	165	0.01	-	-	1,600	0.05
Total operating expenses		(355,795)	(25.93)	(435,146)	(23.77)	(749,848)	(25.14)	(809,450)	(24.14)
Operating income		378,968	27.61	556,656	30.41	837,211	28.06	955,661	28.51
Non-operating income and expenses
Interest income		1,707	0.12	1,653	0.09	2,473	0.08	3,113	0.09
Other income	6(19)	4,240	0.31	16,621	0.91	29,229	0.98	36,109	1.08
Other gains and losses	6(19)	(2,389)	(0.17)	(2,830)	(0.16)	(8,876)	(0.29)	5,150	0.15
Finance costs	6(19)	(450)	(0.03)	(385)	(0.02)	(911)	(0.03)	(787)	(0.02)
Share of profit (loss) of associates and joint ventures accounted for using the equity method	6(8)	(655)	(0.05)	2,398	0.13	(2,645)	(0.09)	4,431	0.13
Total non-operating income and expenses		2,453	0.18	17,457	0.95	19,270	0.65	48,016	1.43
Net income before income tax		381,421	27.79	574,113	31.36	856,481	28.71	1,003,677	29.94
Income tax expense	4,6(21)	(86,311)	(6.29)	(109,140)	(5.96)	(156,817)	(5.26)	(163,937)	(4.89)
Net income		295,110	21.50	464,973	25.40	699,664	23.45	839,740	25.05
Other comprehensive income (loss)	6(20)
Items that may not be reclassified subsequently to profit or loss
Unrealized gains (losses) from equity instrument investments measured at fair value through other comprehensive income		(229,758)	(16.74)	24,822	1.35	(532,017)	(17.83)	152,188	4.54
Income tax relating to those items not to be reclassified to profit or loss		4,028	0.29	(1,496)	(0.08)	7,748	0.26	(672)	(0.02)
Items that may be reclassified subsequently to profit or loss Exchange differences resulting from translating the financial statements of foreign operations		(57)	-	(17)	-	62	-	(7)	-
Other comprehensive income (loss), net of tax		(225,787)	(16.45)	23,309	1.27	(524,207)	(17.57)	151,509	4.52
Total comprehensive income		\$69,323	5.05	\$488,282	26.67	\$175,457	5.88	\$991,249	29.57

Net income for the periods attributable to:
Owners of the parent		\$295,110		\$464,967		\$699,664		\$839,696
Non-controlling interests		-		6		-		44
		\$295,110		\$464,973		\$699,664		\$839,740
Total comprehensive income for the periods attributable to:
Owners of the parent		\$69,323		\$488,276		\$175,457		\$991,205
Non-controlling interests		-		6		-		44
		\$69,323		\$488,282		\$175,457		\$991,249
Earning per share (in New Taiwan Dollars)	6(22)
Basic earnings per share (in New Taiwan Dollars)		\$1.83		\$2.89		\$4.34		\$5.21
Diluted earnings per share (in New Taiwan Dollars)		\$1.81		\$2.86		\$4.26		\$5.14

ITE TECH. INC. AND SUBSIDIARIES

UNAUDITED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

For the six-month periods ended June 30, 2022 and 2021

(Expressed in Thousands of New Taiwan Dollars)

	Equity attributable to owners of the parent
				Retained Earnings			Other equity
Description	Share capital	Capital surplus	Legal reserve	Special reserve	Undistributed earnings	Exchange differences resulting from translating the financial statements of foreign operations	Unrealized gains (losses) from financial assets measured at fair value through other comprehensive income	O Equity attributable to owners of the parent	Non controlling interests	Total equity
Balance as of January 1, 2021	\$1,610,801	\$1,538,693	\$297,664	\$211,900	\$1,024,982	\$(253)	\$125,404	\$4,809,191	\$207	\$4,809,398
Profit for the six-month period ended June 30, 2021	-	-	-	-	839,696	-	-	839,696	44	839,740
Other comprehensive income (loss) for the six-month period ended June 30, 2021	-	-	-	-	-	(7)	151,516	151,509	-	151,509
Total comprehensive income (loss) for the six-month period ended June 30, 2021	-	-	-	-	839,696	(7)	151,516	991,205	44	991,249
Balance as of June 30, 2021	\$1,610,801	\$1,538,693	\$297,664	\$211,900	\$1,864,678	\$(260)	\$276,920	\$5,800,396	\$251	\$5,800,647
Balance as of January 1, 2022 Appropriation and distribution of 2021 earnings:	\$1,610,801	\$1,458,153	\$414,947	\$-	\$1,965,937	\$(245)	\$811,558	\$6,261,151	\$-	\$6,261,151
Legal reserve Cash dividends	- -	- -	173,228 -	- -	(173,228) (1,288,641)	- -	- -	- (1,288,641)	- -	- (1,288,641)
Changes in other capital surplus
Cash dividends distributed from capital surplus	-	(161,080)	-	-	-	-	-	(161,080)	-	(161,080)
Profit for the six-month period ended June 30, 2022	-	-	-	-	699,664	-	-	699,664	-	699,664
Other comprehensive income (loss) for the six-month period ended June 30, 2022	-	-	-	-	-	62	(524,269)	(524,207)	-	(524,207)
Total comprehensive income (loss) for the six-month period ended June 30, 2022	-	-	-	-	699,664	62	(524,269)	175,457	-	175,457
Proceeds from disposal of equity instruments measured at fair value through other comprehensive income	-	-	-	-	6,113	-	(6,113)	-	-	-
Balance as of June 30, 2022	\$1,610,801	\$1,297,073	\$588,175	\$-	\$1,209,845	\$(183)	\$281,176	\$4,986,887	\$-	\$4,986,887

(Expressed in Thousands of New Taiwan Dollars) English Translation of Consolidated Financial Statements Originally Issued in Chinese ITE TECH. INC. AND SUBSIDIARIES For the six-month periods ended June 30, 2022 and 2021 UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS

Description	For the six-month periods ended June 30			For the six-month periods ended June 30
	2022	2021	Description	2022	2021
Cash flows from operating activities:			Cash flows from investing activities:
Profit before tax	\$856,481	\$1,003,677	Acquisition of financial assets at fair value through other comprehensive income	-	(14,354)
Adjustments for:			Proceeds from disposal of financial assets at fair value through other comprehensive income	6,950	-
The profit or loss items which did not affect cash flows:			Acquisition of financial assets at fair value through profit or loss	(53,092)	(649)
Depreciation	22,713		23,723 Disposal of subsidiary	5,378	-
Amortization	2,780		11,465 Acquisition of property, plant and equipment	(11,837)	(53,762)
Expected credit gains	-		(1,600) Acquisition of intangible assets	(4,595)	(508)
Losses (gains) on financial assets and liabilities at fair value through profit or loss	11,298	(5,917)	Decrease in other non-current assets	384	16
Interest expenses	911	787	Increase in prepayments for equipment	(49,274)	-
Interest income	(2,473)	(3,113)	Decrease in prepayments for equipment	-	3,515
Dividend income	(26,658)	(34,000)	Dividends received	26,658	34,000
Share of loss (profit) of associates and joint ventures accounted for using the equity method Changes in operating assets and liabilities:	2,645	(4,431)	Net cash used in investing activities	(79,428)	(31,742)
Financial assets mandatorily measured at fair value through profit or loss	(200,000)	(400,000)
Notes receivables	(6,287)	(5,396)
Trade receivables	262,240	(348,926)
Trade receivables from related parties	3,011	-
Other receivables	(51)	(15)
Inventories	(266,796)		(166,164) Cash flows from financing activities:
Prepayments	14,277	21,460	Increase in deposits received	-	1,414
Other current assets	(2)	20	Cash payment for the principal portion of the lease liabilities	(3,356)	(3,660)
Contract liabilities	(90)	2,382	Net cash used in financing activities	(3,356)	(2,246)
Trade payables	(288,596)	166,085
Trade payables to related parties	(37,624)	17,396
Other payables	(56,993)	214,199
Other payables to related parties	11,613	(1,484)
Other current liabilities	743	20,981
Net defined benefit liabilities	(996)	(992)
Cash generated from operating activities:	302,146	510,137
Interest received	2,742		2,686 Effect of exchange rate changes on cash and cash equivalents	(166)	2
Interest paid	(911)		(787) Net (decrease) increase in cash and cash equivalents	(64,023)	343,512
Income tax paid	(285,050)		(134,538) Cash and cash equivalents at the beginning of period	1,975,925	2,027,313
Net cash provided by operating activities	18,927		377,498 Cash and cash equivalents at the end of period	\$1,911,902	\$2,370,825

English Translation of Consolidated Financial Statements and Footnotes Originally Issued in Chinese ITE TECH. INC. AND SUBSIDIARIES NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS For the Six-Month Periods Ended June 30, 2022 and 2021 (Amounts are expressed in thousands of New Taiwan Dollars unless otherwise stated)

1. Organization and Operation

ITE Tech. Inc. ("the Company") was incorporated in Hsinchu Science Park on May 29, 1996. The Company's main products are Super I/O control (SIO) ICs for desktop computers, embedded control (EC) ICs for notebook computers, high-speed audio-video interface related ICs, system on a chip (SoC), and other customized application chips. The Company's shares are traded in Taiwan Stock Exchange. The Company's registered office and the main business location is at 3F, No.13, Innovation Road I, Hsinchu Science Park, Hsinchu City.

2. Date and Procedures of Authorization of Financial Statements for Issue

The consolidated financial statements of the Company and its subsidiaries (the "Group") were authorized for issue by the Board of Directors on August 3, 2022.

3. Newly Issued or Revised Standards and Interpretations

(1) Changes in accounting policies resulting from applying for the first time certain standards and amendments

The Group applied for the first time International Financial Reporting Standards, International Accounting Standards, and Interpretations issued, revised or amended which are endorsed by Financial Supervisory Commission ("FSC") and become effective for annual periods beginning on or afterJanuary 1, 2022. The application of these new standards and amendments had no material effect on the Group.

(2) Standards or interpretations issued, revised or amended, by International Accounting Standards Board ("IASB") which are endorsed by FSC, but not yet adopted by the Group as at the end of the reporting period are listed below.

Items	New, Revised or Amended Standards and Interpretations	Effective Date
		issued by IASB
	Disclosure Initiative – Accounting Policies – Amendments to	January 1, 2023
a	IAS 1
b	Definition of Accounting Estimates – Amendments to IAS 8	January 1, 2023
	Deferred Tax related to Assets and Liabilities arising from a
c	Single Transaction – Amendments to IAS 12	January 1, 2023

(a) Disclosure Initiative – Accounting Policies – Amendments to IAS 1

The amendments improve accounting policy disclosures that to provide more useful information to investors and other primary users of the financial statements.

(b) Definition of Accounting Estimates – Amendments to IAS 8

The amendments introduce the definition of accounting estimates and include other amendments to IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors to help companies distinguish changes in accounting estimates from changes in accounting policies.

The amendments narrow the scope of the recognition exemption in paragraphs 15 and 24 of IAS 12 so that it no longer applies to transactions that, on initial recognition, give rise to equal taxable and deductible temporary differences.

The abovementioned standards and interpretations were issued by IASB and endorsed by FSC so that they are applicable for annual periods beginning on or after January 1, 2023. The aforementioned standards and interpretations have no material impact on the Group.

(3) Standards or interpretations issued, revised, or amended, by IASB which are not endorsed by FSC, and not yet adopted by the Group as at the end of the reporting period are listed below.

Items	New, Revised or Amended Standards and Interpretations	Effective Dates issued by IASB
a	IFRS 10 "Consolidated Financial Statements" and IAS 28 "Investments in Associates and Joint Ventures" – Sale or Contribution of Assets between an Investor and its Associate or Joint Ventures	To be determined by IASB
b	IFRS 17 "Insurance Contracts"	January 1, 2023
c	Classification of Liabilities as Current or Non-current – Amendments to IAS 1	January 1, 2023

(a) IFRS 10 "Consolidated Financial Statements" and IAS 28 "Investments in Associates and Joint Ventures" – Sale or Contribution of Assets between an Investor and its Associate or Joint Ventures

The amendments address the inconsistency between the requirements in IFRS 10 Consolidated Financial Statements and IAS 28 Investments in Associates and Joint Ventures, in dealing with the loss of control of a subsidiary that is contributed to an associate or a joint venture. IAS 28 restricts gains and losses arising from contributions of non-monetary assets to an associate or a joint venture to the extent of the interest attributable to the other equity holders in the associate or joint ventures. IFRS 10 requires full profit or loss recognition on the loss of control of the subsidiary. IAS 28 was amended so that the gain or loss resulting from the sale or contribution of assets that constitute a business as defined in IFRS 3 between an investor and its associate or joint venture is recognized in full.

IFRS 10 was also amended so that the gain or loss resulting from the sale or contribution of a subsidiary that does not constitute a business as defined in IFRS 3 between an investor and its associate or joint venture is recognized only to the extent of the unrelated investors' interests in the associate or joint venture.

(b) IFRS 17 "Insurance Contracts"

IFRS 17 provides a comprehensive model for insurance contracts, covering all relevant accounting aspects (including recognition, measurement, presentation and disclosure requirements). The core of IFRS 17 is the General (building block) Model, under this model, on initial recognition, an entity shall measure a group of insurance contracts at the total of the fulfilment cash flows and the contractual service margin. The carrying amount of a group of insurance contracts at the end of each reporting period shall be the sum of the liability for remaining coverage and the liability for incurred claims.

Other than the General Model, the standard also provides a specific adaptation for contracts with direct participation features (the Variable Fee Approach) and a simplified approach (Premium Allocation Approach) mainly for short-duration contracts.

IFRS 17 was issued in May 2017 and it was amended in 2020 and 2021. The amendments include deferral of the date of initial application of IFRS 17 by two years to annual beginning on or after January 1, 2023 (from the original effective date of January 1, 2021); provide additional transition reliefs; simplify some requirements to reduce the costs of applying IFRS 17 and revise some requirements to make the results easier to explain. IFRS 17 replaces an interim Standard – IFRS 4 Insurance Contracts – from annual reporting periods beginning on or after January 1, 2023.

These are the amendments to paragraphs 69-76 of IAS 1 Presentation of Financial statements and the amended paragraphs related to the classification of liabilities as current or non-current.

The abovementioned standards and interpretations issued by IASB have not yet been endorsed by FSC at the date when the Group's financial statements were authorized for issue, the local effective dates are to be determined by FSC. The aforementioned standards and interpretations have no material impact on the Group.

4. Summary of Significant Accounting Policies

(1) Statement of compliance

The consolidated financial statements of the Group for the six-month periods ended June 30, 2022 and 2021 have been prepared in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers (the "Regulations") and IAS 34 Interim Financial Reporting as endorsed and became effective by FSC.

(2) Basis of preparation

The consolidated financial statements have been prepared on a historical cost basis, except for financial instruments that have been measured at fair value. The consolidated financial statements are expressed in thousands of New Taiwan Dollars ("NT\$") unless otherwise stated.

(3) Basis of consolidation

Preparation principle of consolidated financial statements

Control is achieved when the Company is exposed, or has rights, to variable returns from its involvement with the investee and has the ability to affect those returns through its power over the investee. Specifically, the Company controls an investee if and only if the Company has:

(a) power over investee (i.e. existing rights that give it the current ability to direct the relevant activities of the investee)
(b) exposure, or rights, to variable returns from its involvement with the investee, and
(c) the ability to use its power over the investee to affect its returns

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

(Amounts are expressed in thousands of New Taiwan Dollars unless otherwise stated)

When the Company has less than a majority of the voting or similar rights of an investee, the Company considers all relevant facts and circumstances in assessing whether it has power over an investee, including:

(a) the contractual arrangement with the other vote holders of the investee
(b) rights arising from other contractual arrangements
(c) the Company's voting rights and potential voting rights

The Company re-assesses whether or not it controls an investee if facts and circumstances indicate that there are changes to one or more of the three elements of control.

Subsidiaries are fully consolidated from the acquisition date, being the date on which the Company obtains control, and continue to be consolidated until the date that such control ceases. The financial statements of the subsidiaries are prepared for the same reporting period as the parent company, using uniform accounting policies. All intra-group balances, income and expenses, unrealized gains and losses and dividends resulting from intra-group transactions are eliminated in full.

A change in the ownership interest of a subsidiary, without a change of control, is accounted for as an equity transaction.

Total comprehensive income of the subsidiaries is attributed to the owners of the parent and to the non-controlling interests even if this results in the non-controlling interests having a deficit balance.

If the Company loses control of a subsidiary, it:

(a) derecognizes the assets (including goodwill) and liabilities of the subsidiary;
(b) derecognizes the carrying amount of any non-controlling interest;
(c) recognizes the fair value of the consideration received;
(d) recognizes the fair value of any investment retained;
(e) recognizes any surplus or deficit in profit or loss; and
(f) reclassifies the parent's share of components previously recognized in other comprehensive income to profit or loss.

The consolidated entities are listed as follows:

ITE TECH. INC. AND SUBSIDIARIES NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

(Amounts are expressed in thousands of New Taiwan Dollars unless otherwise stated)

			Percentage of ownership
			June 30,	December 31,	June 30,
Investor	Subsidiaries	Main businesses	2022	2021	2021
ITE Tech. Inc.	ITE Tech. (Shenzhen) Inc.	Technological consultation services for ICs products	100.00%	100.00%	100.00%
ITE Tech. Inc.	Ubiquity Smart Technology Inc.	Wholesale of electronic materials	-	-	95.74%

Ubiquity Smart Technology Inc. was resolved for dissolution and liquidation by the provisional meeting of shareholders on September 30, 2021.

The financial statements of the consolidated subsidiaries listed above had not been reviewed by independent auditors. As of June 30, 2022 and 2021, the related assets of these subsidiaries are NT\$12,733 thousand and NT\$9,881 thousand, respectively, and the related liabilities are NT\$8,168 thousand and NT\$1,131 thousand, respectively. The comprehensive income (loss) of these subsidiaries are NT\$(411) thousand, NT\$(997) thousand, NT\$2,084 thousand and NT\$(44) thousand for the three-month and six-month periods ended June 30, 2022 and 2021, respectively.

(4) Except for the accounting polices listed in Note 4(5) to 4(6), the same accounting policies have been followed in the consolidated financial statements for the six-month period ended June 30, 2022 as were applied in the preparation of the Group's consolidated financial statements for the year ended December 31, 2021. For the summary of other significant accounting policies, please refer to the consolidated financial statements for the year ended December 31, 2021.
(5) Post-employment benefits

Pension cost for an interim period is calculated on a year-to-date basis by using the actuarially determined pension cost rate at the end of the prior financial year, adjusted and disclosed for significant market fluctuations since that time and for significant curtailments, settlements, or other significant one-off events.

(6) Income taxes

Interim period income tax expense is accrued using the tax rate that would be applicable to expected total annual earnings, that is, the estimated average annual effective income tax rate applied to the pre-tax income of the interim period.

English Translation of Consolidated Financial Statements and Footnotes Originally Issued in Chinese ITE TECH. INC. AND SUBSIDIARIES NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) (Amounts are expressed in thousands of New Taiwan Dollars unless otherwise stated)

5. Significant Accounting Judgements, Estimates and Assumptions

The same significant accounting judgements, estimates and assumptions have been followed in the consolidated financial statements for the six-month periods ended June 30, 2022 and 2021 as were applied in the preparation of the Group's consolidated financial statements for the year ended December 31, 2021. Please refer to the consolidated financial statements for the year ended December 31 2021.

6. Contents of Significant Accounts

(1) Cash and cash equivalents

		As of
	June 30,	December 31,	June 30,
	2022	2021	2021
Cash on hand	\$265	\$255	\$248
Checking and saving accounts	731,637	1,035,670	578,735
Time deposits	1,180,000	940,000	1,791,842
Total	\$1,911,902	\$1,975,925	\$2,370,825

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

		As of
	June 30,	December 31,	June 30,
	2022	2021	2021
Mandatorily measured at fair value
through profit or loss:
Funds	\$1,762,147	\$1,565,229	\$1,366,865
Capital	44,431	-	-
Total	\$1,806,578	\$1,565,229	\$1,366,865

Current	\$1,736,378	\$1,533,832	\$1,334,140
Non-current	70,200	31,397	32,725
Total	\$1,806,578	\$1,565,229	\$1,366,865

Financial assets at fair value through profit or loss were not pledged.

(3) Financial assets at fair value through other comprehensive income, non-current

		As of
	June 30,	December 31,	June 30,
	2022	2021	2021
Equity instrument investments measured
at fair value through other
comprehensive income-Non-current:
Listed company stocks	\$298,913	\$43,351	\$32,892
Unlisted company stocks	1,001,078	1,795,607	1,238,904
Total	\$1,299,991	\$1,838,958	\$1,271,796

Financial assets at fair value through other comprehensive income were not pledged.

The Group's dividend income related to equity instrument investments measured at fair value through other comprehensive income are as follows:

	For the three-month periods ended June 30,		For the six-month periods ended June 30,
	2022	2021	2022	2021
Related to investments held at the end of the reporting period	\$3,350	\$15,697	\$26,658	\$34,000
Related to investments derecognized during the period	-	-	-	-
Dividends recognized during the period	\$3,350	\$15,697	\$26,658	\$34,000

In consideration of the Group's investment strategy, the Group disposed and derecognized certain equity instrument investments measured at fair value through other comprehensive income. Details on derecognition of such investments are as follows:

	For the six-month periods
	ended June 30,
	2022	2021
The fair value of the investments at the date of derecognition	\$6,950	\$-
The cumulative gain on disposal reclassified from other equity to retained earnings	\$6,113	\$-

ITE TECH. INC. AND SUBSIDIARIES NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

(Amounts are expressed in thousands of New Taiwan Dollars unless otherwise stated)

(4) Financial assets measured at amortized cost, non-current

		As of
	June 30,	December 31,	June 30,
	2022	2021	2021
Time deposits	\$4,230	\$4,230	\$4,230

The Group classified certain financial assets as financial assets measured at amortized cost. Since credit risk is low, expected credit losses during the duration are not significant. Please refer to Note 8 for more details on financial assets measured at amortized cost under pledge and Note 12 for more details on credit risk.

(5) Notes receivables

		As of
	June 30, 2022	December 31, 2021	June 30, 2021
Notes receivables arising from operating activities	\$15,535	\$9,248	\$9,467
Less: loss allowance	-	-	-
Total	\$15,535	\$9,248	\$9,467

Notes receivables were not pledged.

The Group follows the requirement of IFRS 9 to assess the impairment. Please refer to Note 6(16) for more details on loss allowance and Note 12 for more details on credit risk.

(6) Trade receivables and trade receivables from related parties

	As of
	June 30, 2022	December 31, 2021	June 30, 2021
Trade receivables	\$772,699	\$1,034,939	\$1,164,465
Less: loss allowance	-	-	-
Subtotal	772,699	1,034,939	1,164,465
Trade receivables from related parties	-	3,011	-
Less: loss allowance	-	-	-
Subtotal	-	3,011	-
Total	\$772,699	\$1,037,950	\$1,164,465

English Translation of Consolidated Financial Statements and Footnotes Originally Issued in Chinese ITE TECH. INC. AND SUBSIDIARIES NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) (Amounts are expressed in thousands of New Taiwan Dollars unless otherwise stated)

Trade receivables and trade receivables from related parties were not pledged.

Trade receivables are generally on 30-90 day terms. The total carrying amounts were NT\$772,699 thousand, NT\$1,037,950 thousand and NT\$1,164,465 thousand as of June 30, 2022, December 31, 2021 and June 30, 2021, respectively. Please refer to Note 6(16) for more details on impairment of trade receivables and Note 12 for more details on credit risk.

(7) Inventories

	As of
	June 30, December 31, June 30,
	2022	2021	2021
Raw materials	\$11,179	\$13,410	\$18,667
Work in progress	681,204	569,511	518,312
Finished goods	651,301	493,967	125,016
Total	\$1,343,684	\$1,076,888	\$661,995

The cost of inventories recognized in expenses amounted to NT\$637,719 thousand and NT\$838,823 thousand for the three-month periods ended June 30, 2022 and 2021, respectively, including the inventory valuation loss of NT\$42,304 thousand and NT\$8,254 thousand for the three-month periods ended June 30, 2022 and 2021, respectively.

The cost of inventories recognized in expenses amounted to NT\$1,396,222 thousand and NT\$1,587,462 thousand for the six-month periods ended June 30, 2022 and 2021, respectively, including the inventory valuation loss of NT\$51,461 thousand and NT\$17,673 thousand for the six-month periods ended June 30, 2022 and 2021, respectively.

Inventories were not pledged.

(8) Investments accounted for using the equity method

The detail of investments accounted for under the equity method is as follows:

ITE TECH. INC. AND SUBSIDIARIES

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

(Amounts are expressed in thousands of New Taiwan Dollars unless otherwise stated)

	As of
		June 30, 2022	December 31, 2021		June 30, 2021
	Carrying	Percentage of	Carrying	Percentage	Carrying	Percentage
Investee	amount	ownership	amount	of ownership	amount	of ownership
Investments in
an associate:
Emright
Technology
Co., Ltd.	\$10,649	36.32%	\$13,294	36.32%	\$12,919	36.32%

Although the Group is the largest shareholder of the aforementioned associate; after comprehensive assessment, the Group does not own the major voting rights as the remaining voting rights holders are able to align and prevent the Group from ruling the relevant operation. Therefore, the Group does not control but owns significant influence over the aforementioned associate.

The aggregate amount of the Group's share of all its individually immaterial associate that is accounted for using the equity method is as follows:

	For the	three-month periods	For the six-month periods
	ended June 30,		ended June 30,
	2022	2021	2022	2021
Income (loss) from continuing operations	\$(655)	\$2,398	\$(2,645)	\$4,431
Other comprehensive income (net of tax)	-	-	-	-
Total comprehensive income (loss)	\$(655)	\$2,398	\$(2,645)	\$4,431

The Group did not have contingent liabilities or capital commitments to the aforementioned associate and the investment was not pledged as of June 30, 2022, December 31, 2021 and June 30, 2021.

The carrying amount of the associate under equity method amounted to NT\$10,649 thousand and NT\$12,919 thousand as of June 30, 2022 and 2021, respectively. The related shares of profit or loss from the associate under the equity method amounted to NT\$(655) thousand, NT\$2,398 thousand, NT\$(2,645) thousand and NT\$4,431 thousand for the three-month and six-month periods ended June 30, 2022 and 2021, respectively. The information related to above associate accounted for under the equity method was not reviewed by independent auditors.

ITE TECH. INC. AND SUBSIDIARIES NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) (Amounts are expressed in thousands of New Taiwan Dollars unless otherwise stated)

(9) Property, plant and equipment

				Research and
			Machinery	development	Office	Other
	Land	Buildings	and equipment	equipment	equipment	equipment	Total
Cost:
As of January 1, 2022	\$311,450	\$397,969	\$29,584	\$58,838	\$6,626	\$24,230	\$828,697
Additions	-	3,582	11,500	2,074	203	4,828	22,187
Disposals	-	(24,710)	-	(14,992)	(300)	(1,597)	(41,599)
Exchange differences	-	-	-	-	121	-	121
As of June 30, 2022	\$311,450	\$376,841	\$41,084	\$45,920	\$6,650	\$27,461	\$809,406

As of January 1, 2021	\$311,450	\$398,842	\$902	\$35,872	\$6,961	\$22,766	\$776,793
Additions	-	-	28,682	20,816	15	4,249	53,762
Disposals	-	(1,074)	-	(2,734)	(429)	(2,975)	(7,212)
Exchange differences	-	-	-	-	(12)	-	(12)
As of June 30, 2021	\$311,450	\$397,768	\$29,584	\$53,954	\$6,535	\$24,040	\$823,331

Depreciation and impairment:
As of January 1, 2022	\$-	\$141,408	\$3,789	\$28,165	\$5,809	\$13,461	\$192,632
Depreciation	-	6,106	3,424	5,915	279	3,101	18,825
Disposals	-	(24,710)	-	(14,992)	(300)	(1,597)	(41,599)
Exchange differences	-	-	-	-	107	-	107
As of June 30, 2022	\$-	\$122,804	\$7,213	\$19,088	\$5,895	\$14,965	\$169,965

As of January 1, 2021	\$-	\$123,240	\$53	\$18,862	\$5,842	\$11,342	\$159,339
Depreciation	-	9,956	1,270	5,542	312	2,845	19,925
Disposals	-	(1,074)	-	(2,734)	(429)	(2,975)	(7,212)
Exchange differences	-	-	-	-	(10)	-	(10)
As of June 30, 2021	\$-	\$132,122	\$1,323	\$21,670	\$5,715	\$11,212	\$172,042

Net carrying amount as of:
June 30, 2022	\$311,450	\$254,037	\$33,871	\$26,832	\$755	\$12,496	\$639,441
December 31, 2021	\$311,450	\$256,561	\$25,795	\$30,673	\$817	\$10,769	\$636,065
June 30, 2021	\$311,450	\$265,646	\$28,261	\$32,284	\$820	\$12,828	\$651,289

(a) Components of buildings with different useful lives are main building structure and air conditioning units, which are depreciated over 41 years and 3 years, respectively.
(b) Property, plant and equipment were not pledged.

ITE TECH. INC. AND SUBSIDIARIES NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) (Amounts are expressed in thousands of New Taiwan Dollars unless otherwise stated)

(10) Intangible assets

	Patents	Software	Goodwill	Others	Total
Cost:
As of January 1, 2022	\$-	\$14,482	\$2,674,827	\$12,111	\$2,701,420
Additions-acquired separately	-	1,336	-	3,732	5,068
Disposals	-	(1,926)	-	-	(1,926)
Exchange differences	-	65	-	-	65
As of June 30, 2022	\$-	\$13,957	\$2,674,827	\$15,843	\$2,704,627

As of January 1, 2021	\$201,740	\$18,618	\$2,674,827	\$11,902	\$2,907,087
Additions-acquired separately	-	508	-	-	508
Disposals	-	(1,705)	-	(4,801)	(6,506)
Exchange differences	-	(6)	-	-	(6)
As of June 30, 2021	\$201,740	\$17,415	\$2,674,827	\$7,101	\$2,901,083

Amortization and impairment:
As of January 1, 2022	\$-	\$9,294	\$2,468,504	\$1,915	\$2,479,713
Amortization	-	2,003	-	777	2,780
Disposals	-	(1,926)	-	-	(1,926)
Exchange differences	-	45	-	-	45
As of June 30, 2022	\$-	\$9,416	\$2,468,504	\$2,692	\$2,480,612

As of January 1, 2021	\$193,334	\$9,901	\$2,468,504	\$5,836	\$2,677,575
Amortization	8,406	2,623	-	436	11,465
Disposals	-	(1,705)	-	(4,801)	(6,506)
Exchange differences	-	(3)	-	-	(3)
As of June 30, 2021	\$201,740	\$10,816	\$2,468,504	\$1,471	\$2,682,531

Net carrying amount as of:
June 30, 2022	\$-	\$4,541	\$206,323	\$13,151	\$224,015
December 31, 2021	\$-	\$5,188	\$206,323	\$10,196	\$221,707
June 30, 2021	\$-	\$6,599	\$206,323	\$5,630	\$218,552

English Translation of Consolidated Financial Statements and Footnotes Originally Issued in Chinese ITE TECH. INC. AND SUBSIDIARIES NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

(Amounts are expressed in thousands of New Taiwan Dollars unless otherwise stated)

Amortization expenses of intangible assets under the statement of comprehensive income are as follows:

	For the	three-month periods	For the six-month periods
	ended June 30,		ended June 30,
	2022	2021	2022	2021
Selling expenses	\$103	\$125	\$191	\$251
Administrative expenses	\$58	\$3,435	\$118	\$8,554
Research and development expenses	\$1,295	\$1,232	\$2,471	\$2,660

(11) Other current liabilities

	As of
	June 30,	December 31,	June 30,
	2022	2021	2021
Refund liabilities	\$172,200	\$173,450	\$210,727
Others	10,987	8,994	7,566
Total	\$183,187	\$182,444	\$218,293

(12) Post-employment benefits plans

Defined contribution plan

For the three-month periods ended June 30, 2022 and 2021, the pension expenses recognized under the defined contribution plan are NT\$7,951 thousand and NT\$7,439 thousand, respectively. For the six-month periods ended June 30, 2022 and 2021, the pension expenses recognized under the defined contribution plan are NT\$15,310 thousand and NT\$14,665 thousand, respectively.

Defined benefit plan

For the three-month periods ended June 30, 2022 and 2021, the pension expenses recognized under the defined benefit plan are NT\$533 thousand and NT\$510 thousand, respectively. For the six-month periods ended June 30, 2022 and 2021, the pension expenses recognized under the defined benefit plan are NT\$1,067 thousand and NT\$1,019 thousand, respectively.

(13) Equity

(a) Common stock

The Company's authorized capital as of June 30, 2022, December 31, 2021 and June 30, 2021 was NT\$2,500,000 thousand divided into 250,000,000 shares (including 30,000,000 shares reserved for exercise of employee stock options at each period), each at a par value of NT\$10. The Company's issued capital was NT\$1,610,801 thousand divided into 161,080,124 shares as of June 30, 2022, December 31, 2021 and June 30, 2021. Each share has one voting right and a right to receive dividends.

(b) Capital surplus

		As of
	June 30,	December 31,	June 30,
	2022	2021	2021
Premium from merger	\$817,957	\$979,037	\$1,059,577
Restricted stocks for employees	191,764	191,764	191,764
Employee stock option	112,008	112,008	112,008
Treasury share transactions	19,238	19,238	19,238
Premium from issuance of common stock	16,424	16,424	16,424
Change in subsidiaries' ownership	1,977	1,977	1,977
Share of changes in net assets of
associates and joint ventures	1,008	1,008	1,008
accounted for using equity method
Others	136,697	136,697	136,697
Total	\$1,297,073	\$1,458,153	\$1,538,693

According to the Company Act, the capital surplus shall not be used except for offset a deficit of the company. When a company incurs no loss, it may distribute the capital surplus derived from the issuance of new shares at a premium or income from endowments received by the company. The distribution could be made in cash or in the form of dividend shares to its shareholders in proportion to the number of shares being held by each of them.

ITE TECH. INC. AND SUBSIDIARIES

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

(Amounts are expressed in thousands of New Taiwan Dollars unless otherwise stated)

According to the Company's Articles of Incorporation, current year's earnings, if any, shall be distributed in the following order:

I. Income tax obligation;
II. Offsetting accumulated deficits, if any;
III. Legal reserve at 10% of net income after tax;
IV. Allocation or reverse of special reserves as required by law;
V. After deducting the respective amount specified from item I to IV, at least 50% of the remaining earnings will be distributed, together with the undistributed earnings at the beginning of the period, and the capital surplus. However, if the total distribution divided by all the issued shares is less than NTD\$0.1 per share, all the remaining and surplus shall not be distributed.

According to Article 240, Paragraph 5, and Article 241, Paragraph 2 of the Company Act, the Company authorizes the distributable dividends, legal reserve, and capital surplus in whole or in part may be paid in cash after a resolution has been adopted by a majority vote at a meeting of the Board of Directors attended by two-thirds of the total number of directors, and in addition thereto a report of such distribution shall be submitted to the shareholders' meeting.

The distribution of dividends to shareholders of the company can be paid in cash or shares. The policy of dividend distribution should reflect factors such as the current and future investment environment, fund requirements, domestic and international competition and capital budgets. And the dividends in cash shouldn't less than 30% of the distributable, as well as the interest of the shareholders, share bonus equilibrium and long-term financial planning etc. The Board of Directors shall make the distribution proposal annually and present it at the shareholders' meeting.

According to the Company Act, the Company needs to set aside amount to legal reserve unless where such legal reserve amounts to the total paid-in capital. The legal reserve can be used to offset the deficit of the Company. When the Company incurs no loss, it may distribute the portion of legal reserve, which exceeds 25% of the paid-in capital by issuing new shares or by cash in proportion to the number of shares being held by each of the shareholders.

When the Company distributing distributable earnings, it shall set aside to special reserve, an amount equal to other net deductions from shareholders' equity for the current fiscal year, provided that if the company has already set aside special reserve according to the requirements for the adoption of IFRS, it shall set aside supplemental special reserve based on the difference between the amount already set aside and other net deductions from shareholders' equity. For any subsequent reversal of other net deductions from shareholders' equity, the amount reversed may be distributed from the special reserve.

On March 31, 2021, FSC issued Order No. Financial-Supervisory-Securities-Corporate-1090150022, which sets out the following provisions for compliance: On a public company's first-time adoption of the IFRS, for any unrealized revaluation gains and cumulative translation adjustments (gains) recorded to shareholders' equity that the company elects to transfer to retained earnings by application of the exemption under IFRS 1, the company shall set aside special reserve. For any subsequent use, disposal or reclassification of related assets, the Company can reverse the special reserve by the proportion of the special reserve first appropriated and distribute it.

The amount of special reserve provided by the Company for the first time in adopting IFRS is nil.

The appropriation of earnings for 2021 and 2020 was approved by the shareholders' meeting held on June 21, 2022 and August 10, 2021, respectively. The details of distribution are as follows:

		Appropriation of	Dividend per share (NT\$)
		earnings
	2021	2020	2021	2020
Legal reserve	\$173,228	\$117,283
Reversal of special reserve	-	(211,900)
Common stock – cash dividends	1,288,641	885,941	\$8.0	\$5.5

In addition, the shareholders' meeting on June 21, 2022 and August 10, 2021 resolved to distribute the capital surplus by cash in the amount of NT\$161,080 thousand and NT\$80,540 thousand, or NT\$1 per share and NT\$0.5 per share, respectively.

Please refer to Note 6(18) for more details on employees' compensations and the remunerations to directors.

(d) Non-controlling interests

	For	the six-month periods
		ended June 30,
	2022	2021
Beginning balance	\$-	\$207
Income attributable to non-controlling interests	-	44
Ending balance	\$-	\$251

(14) Share-based payment plans

Certain employees of the Group are entitled to share-based payment as part of their remunerations; services are provided by the employees in return for the equity instruments granted. These plans are accounted for as equity-settled share-based payment transactions.

Restricted stocks plans for employees

On August 10, 2021, a compensation plan was approved by the shareholders' meeting to issue 3,000,000 restricted stocks to qualified employees and the plan was approved by the competent authority on December 17, 2021. There were no shares issued as of June 30, 2022.

(15) Operating revenues

	For the three-month periods ended June 30,		For the six-month periods ended June 30,
	2022 2021		2022	2021
Revenue from contracts with customers
Sale of goods	\$1,371,171	\$1,830,170	\$2,981,433	\$3,351,389
Other operating revenues	1,311	455	1,848	1,184
Total	\$1,372,482	\$1,830,625	\$2,983,281	\$3,352,573

Revenue recognition point of the Group is at a point in time. Analysis of revenue from contracts with customers for the six-month periods ended June 30, 2022 and 2021 is as follows:

ITE TECH. INC. AND SUBSIDIARIES

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

(Amounts are expressed in thousands of New Taiwan Dollars unless otherwise stated)

(a) Contract balances

Contract liabilities – current

		As of
	June 30,	December 31,	June 30,	January 1,
	2022	2021	2021	2021
Sale of goods	\$4,906	\$4,996	\$9,394	\$7,012

The significant changes in the Group's balances of contract liabilities for the six-month periods ended June 30, 2022 and 2021 are as follows:

	For the six-month periods
	ended June 30,
	2022 2021
The opening balance transferred to revenue	\$(4,996)	\$(5,862)
Increase in receipts in advance during the period
(deducting the amount incurred and transferred to	4,906	8,244
revenue during the period)
Total	\$(90)	\$2,382

(b) Assets recognized from costs to fulfill a contract

None.

(16) Expected credit gains

	For the three-month periods		For the six-month periods
	ended June 30,			ended June 30,
	2022 2021		2022	2021
Operating expenses — Expected credit gains
Trade receivables	\$-	\$165	\$-	\$1,600

Please refer to Note 12 for more details on credit risk.

The Group measures the loss allowance of its trade receivables (including notes receivables, trade receivables and trade receivables from related parties) at an amount equal to lifetime expected credit losses. The assessments of the Group's loss allowance as of June 30, 2022, December 31, 2021 and June 30, 2021 are as follows:

ITE TECH. INC. AND SUBSIDIARIES NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

(Amounts are expressed in thousands of New Taiwan Dollars unless otherwise stated)

The trade receivables loss allowance is measured by using a provision matrix, details are as follows:

2022.06.30

				Past due
	Not past due
	(Note)	Within 30 days	31-120 days	After 121 days	Total
Gross carrying amount	\$777,340	\$10,894	\$-	\$-	\$788,234
Loss ratio	-	-	-	1%-100%
Lifetime expected credit losses	-	-	-	-	-
Carrying amount of trade receivables	\$777,340	\$10,894	\$-	\$-	\$788,234
2021.12.31
				Past due
	Not past due
	(Note)	Within 30 days	31-120 days	After 121 days	Total
Gross carrying amount	\$1,031,332	\$15,105	\$761	\$-	\$1,047,198
Loss ratio	-	-	-	1%-100%
Lifetime expected credit losses	-	-	-	-	-
Carrying amount of trade receivables	\$1,031,332	\$15,105	\$761	\$-	\$1,047,198
2021.06.30
				Past due
	Not past due
	(Note)	Within 30 days	31-120 days	After 121 days	Total
Gross carrying amount	\$1,168,256	\$5,327	\$349	\$-	\$1,173,932
Loss ratio	-	-	-	1%-100%
Lifetime expected credit losses	-	-	-	-	-
Carrying amount of trade receivables	\$1,168,256	\$5,327	\$349	\$-	\$1,173,932

Note: All of the Group's notes receivables are not yet due.

The movements in the provision for impairment of notes receivables and trade receivables (including related parties) for the six-month periods ended June 30, 2022 and 2021 are as follows:

ITE TECH. INC. AND SUBSIDIARIES NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

(Amounts are expressed in thousands of New Taiwan Dollars unless otherwise stated)

		Trade receivables
	Notes receivables	(including related parties)
As of January 1, 2022	\$-	\$-
Reversal for the current period	-	-
As of June 30, 2022	\$-	\$-
As of January 1, 2021	\$-	\$1,600
Reversal for the current period	-	(1,600)
As of June 30, 2021	\$-	\$-

(17) Leases

Group as a lessee

The Group leases various properties, including real estate such as land and buildings, and furniture and fixtures. The lease terms range from 3 to 33 years.

The Group's leases effect on the financial position, financial performance and cash flows are as follows:

(a) Amounts recognized in the balance sheet

I. Right-of-use assets

The carrying amount of right-of-use assets

		As of
	June 30,	December 31,	June 30,
	2022	2021	2021
Land	\$79,803	\$81,109	\$82,776
Buildings	7,785	9,686	1,813
Furniture and fixtures	903	644	340
Total	\$88,491	\$91,439	\$84,929

During the six-month periods ended June 30, 2022 and 2021, the additions to right-ofuse assets of the Group amounted to NT\$746 thousand and NT\$306 thousand, respectively.

ITE TECH. INC. AND SUBSIDIARIES

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

(Amounts are expressed in thousands of New Taiwan Dollars unless otherwise stated)

II. Lease liabilities

		As of
	June 30,	December 31,	June 30,
	2022	2021	2021
Current	\$7,005	\$7,046	\$4,463
Non-current	84,157	86,726	82,222
Total	\$91,162	\$93,772	\$86,685

Please refer to Note 6(19)(c) for the interest on lease liabilities recognized during the six-month periods ended June 30, 2022 and 2021, and refer to Note 12(5) Liquidity Risk Management for the maturity analysis for lease liabilities.

(b) Amounts recognized in the statement of comprehensive income

Depreciation charge for right-of-use assets

	For the	three-month periods	For the six-month periods
	ended June 30,			ended June 30,
	2022	2021	2022	2021
Land	\$842	\$834	\$1,675	\$1,667
Buildings	1,045	1,044	2,096	2,086
Furniture and fixtures	64	22	117	45
Total	\$1,951	\$1,900	\$3,888	\$3,798

	For the ended June 30,	three-month periods	For the	six-month periods ended June 30,
	2022	2021	2022	2021
The expenses relating to short-term leases	\$422	\$461	\$830	\$824
The expenses relating to
leases of low-value assets (Not including the short term leases)	17	23	25	46
The expenses relating to variable lease payments not included in the measurement of lease liabilities	313	337	643	606
Total	\$752	\$821	\$1,498	\$1,476
Income from subleasing right-of-use assets	\$159	\$158	\$317	\$316

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

(Amounts are expressed in thousands of New Taiwan Dollars unless otherwise stated)

(d) Cash outflow relating to leasing activities

During the six-month periods ended June 30, 2022 and 2021, the Group's total cash outflows for leases amounted to NT\$5,772 thousand and NT\$5,846 thousand, respectively.

(e) Extension options

Some of the Group's property rental agreements contain extension option. In determining the lease terms, the non-cancellable period for which the Group has the right to use an underlying asset, together with both periods covered by an option to extend the lease if the Group is reasonably certain to exercise that option. The option is used to maximize operational flexibility in terms of managing contracts. The majority of extension option held is exercisable only by the Group. After the commencement date, the Group reassesses the lease term upon the occurrence of a significant event or a significant change in circumstances that is within the control of the lessee and affects whether the Group is reasonably certain to exercise an option not previously included in its determination of the lease term.

		For the	three-month periods ended June 30,
		2022			2021
	Operating costs	Operating expenses	Total	Operating costs	Operating expenses	Total
Employee benefits expense
Salaries	\$12,415	\$245,830	\$258,245	\$12,992	\$315,082	\$328,074
Labor and health insurance	866	13,544	14,410	785	11,831	12,616
Pension	483	8,001	8,484	463	7,486	7,949
Other employee benefits	194	2,609	2,803	177	2,394	2,571
Total	\$13,958	\$269,984	\$283,942	\$14,417	\$336,793	\$351,210
Depreciation	\$2,118	\$9,346	\$11,464	\$1,557	\$11,275	\$12,832
Amortization	\$-	\$1,456	\$1,456	\$-	\$4,792	\$4,792

(18) Summary statement of employee benefits, depreciation and amortization expenses by function:

ITE TECH. INC. AND SUBSIDIARIES NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

(Amounts are expressed in thousands of New Taiwan Dollars unless otherwise stated)

		For the six-month periods ended June 30,
		2022			2021
	Operating costs	Operating expenses	Total	Operating costs	Operating expenses	Total
Employee benefits expense
Salaries	\$25,318	\$527,398	\$552,716	\$24,540	\$599,772	\$624,312
Labor and health insurance	1,740	26,740	28,480	1,581	24,005	25,586
Pension	948	15,429	16,377	900	14,784	15,684
Other employee benefits	383	5,124	5,507	347	4,791	5,138
Total	\$28,389	\$574,691	\$603,080	\$27,368	\$643,352	\$670,720
Depreciation	\$4,138	\$18,575	\$22,713	\$1,906	\$21,817	\$23,723
Amortization	\$-	\$2,780	\$2,780	\$-	\$11,465	\$11,465

According to the Articles of Incorporation, between 8% to 20% of profit of the current year is distributable as employees' compensation and no higher than 1% of profit of the current year is distributable as remuneration to directors. However, the Company's accumulated losses shall have been covered (if any). The Company may, by a resolution adopted by a majority vote at a meeting of Board of Directors attended by two-thirds of the total number of directors, have the profit distributable as employees' compensation in the form of shares or in cash; and in addition thereto a report of such distribution is submitted to the shareholders' meeting. Information on the Board of Directors' resolution regarding the employees' compensation and remuneration to directors can be obtained from the "Market Observation Post System" on the website of the TWSE.

Based on profit of current year, the Company estimated the amounts of the employees' compensation and remuneration to directors for the three-month periods ended June 30, 2022 and June 30, 2021 to be NT\$68,100 thousand, NT\$4,540 thousand, NT\$102,520 thousand and NT\$6,835 thousand, respectively. The amounts of the employees' compensation and remuneration to directors for the six-month periods ended June 30, 2022 and June 30, 2021 to be NT\$152,932 thousand, NT\$10,195 thousand, NT\$179,221 thousand and NT\$11,948 thousand, respectively. The employees' compensation and remuneration to directors recognized as salary expense.

The distributions of the employees' compensation and remuneration to directors in cash for 2021 and 2020 were approved through the Board of Directors' meeting on February 24, 2022 and February 19, 2021, respectively. There is no differences between the estimated amount and the actual distribution of the employees' compensation and remuneration to directors.

ITE TECH. INC. AND SUBSIDIARIES NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

(Amounts are expressed in thousands of New Taiwan Dollars unless otherwise stated)

(19) Non-operating income and expenses

(a) Other income

	For the ended June 30,	three-month periods	For the six-month periods ended June 30,
	2022	2021	2022	2021
Rental income	\$772	\$772	\$1,544	\$1,543
Dividend income	3,350	15,697	26,658	34,000
Others	118	152	1,027	566
Total	\$4,240	\$16,621	\$29,229	\$36,109

(b) Other gains and losses

	For the	three-month periods	For the six-month periods
	ended June 30,			ended June 30,
	2022	2021	2022	2021
Foreign exchange gains (losses), net	\$608	\$(3,822)	\$2,524	\$(767)
Gains (losses) on financial assets at fair value through profit or loss (Note)	(2,990)	992	(11,298)	5,917
Others	(7)	-	(102)	-
Total	\$(2,389)	\$(2,830)	\$(8,876)	\$5,150

Note: Balances were arising from financial assets mandatorily measured at fair value through profit or loss, including valuation adjustment, interest income and exchange difference, etc.

ITE TECH. INC. AND SUBSIDIARIES

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

(Amounts are expressed in thousands of New Taiwan Dollars unless otherwise stated)

(c) Finance costs

	For the	three-month periods	For the six-month periods
	ended June 30,		ended June 30,
	2022	2021	2022	2021
Interest expenses on lease liabilities	\$449	\$384	\$910	\$786
Interest expenses on deposits received	1	1	1	1
Total	\$450	\$385	\$911	\$787

(20) Components of other comprehensive income (loss)

For the three-month period ended June 30, 2022

			Other	Income tax relating	Other
	Arising	Reclassification	comprehensive	to components of	comprehensive
	during the	adjustments	income (loss),	other comprehensive	income (loss),
	period	during the period	before tax	income	net of tax
Items that may not be reclassified
subsequently to profit or loss
Unrealized gains (losses) from equity
instruments investments measured at fair	\$(229,758)	\$-	\$(229,758)	\$4,028	\$(225,730)
value through other comprehensive income
Items that may be reclassified subsequently to
profit or loss
Exchange differences resulting from
translating the financial statements of	(57)	-	(57)	-	(57)
foreign operations
Total	\$(229,815)	\$-	\$(229,815)	\$4,028	\$(225,787)

English Translation of Consolidated Financial Statements and Footnotes Originally Issued in Chinese ITE TECH. INC. AND SUBSIDIARIES NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

(Amounts are expressed in thousands of New Taiwan Dollars unless otherwise stated)

For the three-month period ended June 30, 2021

			Other	Income tax relating	Other
	Arising	Reclassification	comprehensive	to components of	comprehensive
	during the	adjustments	income (loss),	other comprehensive	income (loss),
	period	during the period	before tax	income	net of tax
Items that may not be reclassified
subsequently to profit or loss
Unrealized gains (losses) from equity
instruments investments measured at fair	\$24,822	\$-	\$24,822	\$(1,496)	\$23,326
value through other comprehensive income
Items that may be reclassified subsequently to
profit or loss
Exchange differences resulting from
translating the financial statements of	(17)	-	(17)	-	(17)
foreign operations
Total	\$24,805	\$-	\$24,805	\$(1,496)	\$23,309

For the six-month period ended June 30, 2022

			Other	Income tax relating	Other
	Arising	Reclassification	comprehensive	to components of	comprehensive
	during the	adjustments	income (loss),	other comprehensive	income (loss),
	period	during the period	before tax	income	net of tax
Items that may not be reclassified
subsequently to profit or loss
Unrealized gains (losses) from equity
instruments investments measured at fair	\$(532,017)	\$-	\$(532,017)	\$7,748	\$(524,269)
value through other comprehensive income
Items that may be reclassified subsequently to
profit or loss
Exchange differences resulting from
translating the financial statements of	62	-	62	-	62
foreign operations
Total	\$(531,955)	\$-	\$(531,955)	\$7,748	\$(524,207)

ITE TECH. INC. AND SUBSIDIARIES

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

(Amounts are expressed in thousands of New Taiwan Dollars unless otherwise stated)

For the six-month period ended June 30, 2021

			Other	Income tax relating	Other
	Arising	Reclassification	comprehensive	to components of	comprehensive
	during the	adjustments	income (loss),	other comprehensive	income (loss),
	period	during the period	before tax	income	net of tax
Items that may not be reclassified
subsequently to profit or loss
Unrealized gains (losses) from equity
instruments investments measured at fair	\$152,188	\$-	\$152,188	\$(672)	\$151,516
value through other comprehensive income
Items that may be reclassified subsequently to
profit or loss
Exchange differences resulting from
translating the financial statements of	(7)	-	(7)	-	(7)
foreign operations
Total	\$152,181	\$-	\$152,181	\$(672)	\$151,509

(21) Income tax

(a) The major components of income tax expense are as follows:

Income tax expense (income) recognized in profit or loss

	For the three-month periods ended June 30,		For the six-month periods ended June 30,
	2022	2021	2022	2021
Current income tax expense (income):
Current income tax charge Adjustments in respect of	\$96,897	\$118,586	\$194,852	\$201,474
current income tax of prior periods	(3,720)	(2,088)	(28,079)	(30,044)
Deferred tax income:
Deferred tax income relating to origination and reversal of temporary differences	(6,866)	(7,358)	(9,956)	(7,493)
Total income tax expense	\$86,311	\$109,140	\$156,817	\$163,937

Income tax relating to components of other comprehensive income

	For the ended June 30,	three-month periods	For the six-month periods ended June 30,
	2022	2021	2022	2021
Deferred tax expense
(income):
Unrealized gains or losses
from equity instrument
investments measured at	\$(4,028)	\$1,496	\$(7,748)	\$672
fair value through other
comprehensive income

(b) The assessment of income tax returns

As of June 30, 2022, the assessment of the income tax returns of the Company and its subsidiaries is as follows:

	The assessment of income tax returns
ITE Tech. Inc.	Assessed and approved up to 2020
Subsidiary - ITE Tech. (ShenZhen) Inc.	Assessed to 2021

(22) Earnings per share

Basic earnings per share amounts are calculated by dividing net profit for the period attributable to ordinary equity holders of the parent entity by the weighted average number of ordinary shares outstanding during the period.

Diluted earnings per share amounts are calculated by dividing the net profit attributable to ordinary equity holders of the parent entity by the weighted average number of ordinary shares outstanding during the period plus the weighted average number of ordinary shares that would be issued on conversion of all the dilutive potential ordinary shares into ordinary shares.

ITE TECH. INC. AND SUBSIDIARIES NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) (Amounts are expressed in thousands of New Taiwan Dollars unless otherwise stated)

	For the	three-month periods	For the	six-month periods
		ended June 30,		ended June 30,
	2022	2021	2022	2021
(a) Basic earnings per share
Profit attributable to ordinary
equity holders of the parent
company (in thousand NT\$)	\$295,110	\$464,967	\$699,664	\$839,696
Weighted average number of
ordinary shares outstanding
for basic earnings per share
(share)	161,080,124	161,180,124	161,080,124	161,080,124
Basic earnings per share (NT\$)	\$1.83	\$2.89	\$4.34	\$5.21

(b) Diluted earnings per share
Profit attributable to ordinary
equity holders of the parent
company after dilution (in
thousand NT\$)	\$295,110	464,967	\$699,664	\$839,696
Weighted average number of
ordinary shares outstanding
for basic earnings per share
(share)	161,080,124	161,080,124	161,080,124	161,080,124
Effect of dilution:
Employees' compensation
stock (share)	2,163,110	1,475,069	3,150,843	2,158,002
Weighted average number of
ordinary shares outstanding
after dilution (share)	163,243,234	162,555,193	164,230,967	163,238,126
Diluted earnings per share
(NT\$)	\$1.81	\$2.86	\$4.26	\$5.14

There have been no other transactions involving ordinary shares or potential ordinary shares between the reporting date and the issuance date of the financial statements.

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

(Amounts are expressed in thousands of New Taiwan Dollars unless otherwise stated)

7. Related Party Transactions

Information of the related parties that had transactions with the Group during the financial reporting period is as follows:

Name and nature of relationship of the related parties

Names of related parties	Nature of relationship of the related parties
United Microelectronics Corp.	Director of the Group
HeJian Technology (Suzhou) Co., Ltd.	Other related party
United Semiconductor (Xiamen) Co., Ltd.	Other related party
Wavetek Microelectronics Corporation	Other related party
Emright Technology Co., Ltd.	Associate

Significant transactions with the related parties

(1) Sales

	For the	three-month periods	For the six-month periods
	ended June 30, ended June 30,
	2022	2021	2022	2021
Associate	\$-	\$4,448	\$2,263	\$8,913

The sales price to the above related party was determined through mutual agreement in reference to market conditions. The payment term for the related party was 30 days after month-end.

(2) Purchases

	For the	three-month periods	For the	six-month periods
		ended June 30,		ended June 30,
	2022	2021	2022	2021
United Microelectronics Corp.	\$270,292	\$212,543	\$529,476	\$390,595
HeJian Technology (Suzhou) Co., Ltd.	134,244	127,657	238,715	240,216
Other related parties	556	-	1,048	-
Total	\$405,092	\$340,200	\$769,239	\$630,811

The purchase prices to the above related parties were not comparable to the market due to differentiation of manufacturing process and product specification. Payment terms to related parties were 45 days after month-end.

ITE TECH. INC. AND SUBSIDIARIES

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

(Amounts are expressed in thousands of New Taiwan Dollars unless otherwise stated)

(3) Trade receivables from related parties

	As of
	June 30, December 31, June 30,
	2022	2021	2021
Associate	\$-	\$3,011	\$-

(4) Trade payables to related parties

	As of
	June 30,	June 30,
	2022	2021	2021
United Microelectronics Corp.	\$174,825	\$193,646	\$137,654
HeJian Technology (Suzhou) Co., Ltd.	85,451	104,002	83,475
Other related party	287	539	-
Total	\$260,563	\$298,187	\$221,129

(5) Other payables to related parties

	As of
	June 30,	June 30,
	2022	2021	2021
United Microelectronics Corp.	\$14,718	\$2,828	\$4,151
Other related party	-	277	558
Total	\$14,718	\$3,105	\$4,709

(6) The Group purchased masks and other from the director of the Group and recognized NT\$21,656 thousand, NT\$5,818 thousand, NT\$42,838 thousand and NT\$10,723 thousand as manufacturing expenses and operating expenses for the three-month and six-month periods ended June 30, 2022 and 2021, respectively. Payment term for the related party was 45 days after month-end.
(7) The Group had transactions with other related parties and recognized NT\$0, NT\$1,790 thousand, NT\$277 thousand and NT\$2,637 thousand of manufacturing expenses and operating expenses for the three-month and six-month periods ended June 30, 2022 and 2021, respectively. Payment terms for related parties were 45 days after month-end and on demand.

(8) Key management personnel compensation

	For the three-month periods		For the six-month periods
	ended June 30,		ended June 30,
	2022	2021	2022	2021
Short-term employee benefits	\$20,523	\$33,916	\$53,940	\$66,379
Post-employment benefits	444	406	880	930
Total	\$20,967	\$34,322	\$54,820	\$67,309

8. Assets Pledged as Security

The following table lists assets of the Group pledged as security:

	June 30,	December 31,	June 30,	Secured
Assets pledged for security	2022	2021	2021	liabilities
Financial assets measured at				Guarantee for
amortized cost – non-current	\$4,230	\$4,230	\$4,230	land

9. Significant Contingencies and Unrecognized Contractual Commitments

The Group uses patents of other companies for certain products, and has paid royalty fees based on sales amounts or quantities of these products in accordance with the agreements.

10.Losses Due to Major Disasters

None.

11.Significant Subsequent Events

None.

ITE TECH. INC. AND SUBSIDIARIES

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

(Amounts are expressed in thousands of New Taiwan Dollars unless otherwise stated)

12.Others

(1) Categories of financial instruments

Financial assets

	As of
	June 30,	December 31,	June 30,
	2022	2021	2021
Financial assets at fair value through profit
or loss:
Mandatorily measured at fair value through profit or loss	\$1,806,578	\$1,565,229	\$1,366,865
Financial assets at fair value through other comprehensive income	1,299,991	1,838,958	1,271,796
Financial assets measured at amortized cost (Note)	2,706,044	3,034,173	3,550,789
Total	\$5,812,613	\$6,438,360	\$6,189,450
Financial liabilities
		As of
	June 30,	December 31,	June 30,
	2022	2021	2021
Financial liabilities at amortized cost:
Trade and other payables (including related parties)	\$2,699,106	\$1,620,985	\$1,474,690
Lease liabilities	91,162	93,772	86,685

Note: Including cash and cash equivalents (excluding cash on hand), financial assets measured at amortized cost, notes receivables, trade receivables (including related parties), other receivables and other non-current assets (refundable deposits).

Deposits received 28,483 28,483 25,705

Total \$2,818,751 \$1,743,240 \$1,587,080

(2) Financial risk management objectives and policies

The Group's principal financial risk management objective is to manage the market risk, credit risk and liquidity risk related to its operating activities. The Group identifies, measures and manages the aforementioned risks based on the Group's policy and risk appetite.

The Group has established appropriate policies, procedures and internal controls for financial risk management. Before entering into significant transactions, due approval process by the Board of Directors and Audit Committee must be carried out based on related protocols and internal control procedures. The Group complies with its financial risk management policies at all times.

(3) Market risk

Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of the changes in market prices. Market risks comprise currency risk, interest rate risk and other price risk (such as equity instruments).

In practice, it is rarely the case that a single risk variable will change independently from other risk variables, there are usually interdependencies between risk variables. However, the sensitivity analysis disclosed below does not take into account the interdependencies between risk variables.

Foreign currency risk

The Group's exposure to the risk of changes in foreign exchange rates relates primarily to the Group's operating activities (when revenues or expenses are denominated in a different currency from the Group's functional currency) and the Group's net investments in foreign subsidiaries.

The Group has certain foreign currency receivables to be denominated in the same foreign currency with certain foreign currency payables, therefore natural hedge is received. Furthermore, as net investments in foreign subsidiaries are for strategic purposes, they are not hedged by the Group.

The foreign currency sensitivity analysis of the possible change in foreign exchange rates on the Group's profit is performed on significant monetary items denominated in foreign currencies as of the end of the reporting period. The Group's foreign currency risk is mainly related to the volatility in the exchange rates for USD. The information of the sensitivity analysis is as follows:

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

(Amounts are expressed in thousands of New Taiwan Dollars unless otherwise stated)

When NTD strengthens/weakens against USD by 5%, the profit for the six-month periods ended June 30, 2022 and 2021 decrease/increase by NT\$1,873 thousand and NT\$9,009 thousand, respectively.

Interest rate risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Group doesn't have any liabilities risk of changes in market interest rates. Therefore, the Group expects no fair value and cash flow risks due to significant interest rate fluctuations.

All of the Group's financial assets and financial liabilities that are exposed to cash flow risk due to fluctuating interest rate are under short term contracts, thus the cash flow risk of fluctuate interest is considerably low.

The interest rate sensitivity analysis is performed on items exposed to interest rate risk as of the end of the reporting period, including investments with variable interest rate. At the reporting date, an increase/decrease of 10 basis points (0.1%) of interest rate in a reporting period could cause the profit for the six-month periods ended June 30, 2022 and 2021 to increase/decrease both by NT\$1 thousand.

Equity price risk

The Group's listed and unlisted equity securities are susceptible to market price risk arising from uncertainties about future values of the investment objectives. The Group's listed and unlisted equity securities are classified as financial assets at fair value through profit or loss and financial assets at fair value through other comprehensive income. The Group manages the equity price risk through diversification and placing limits on individual and total equity instruments. Reports on the equity portfolio are submitted to the Group's senior management on a regular basis. The Board of Directors reviews and approves certain equity investments according to level of authority.

For the six-month periods ended June 30, 2022 and 2021, a change of 10% in the price of the listed equity instrument investments measured at fair value through other comprehensive income could increase/decrease by NT\$29,891 thousand and NT\$3,289 thousand, respectively.

Please refer to Note 12(8) for sensitivity analysis information of other equity instruments that are linked to such equity instruments whose fair value measurement is categorized under Level 3 of the fair value hierarchy.

(4) Credit risk management

Credit risk is the risk that counterparty will not meet its obligations under a contract, leading to a financial loss. The Group is exposed to credit risk from operating activities (primarily for trade receivables and notes receivables) and from its financing activities, including bank deposits and other financial instruments.

Credit risk is managed by each business unit subject to the Group's established policy, procedures and control relating to credit risk management. Credit limits are established for all counter parties based on their financial position, rating from credit rating agencies, historical experience, prevailing economic condition and the Group's internal rating criteria, etc. Certain counter parties' credit risk will also be managed by taking credit enhancing procedures, such as requesting for prepayment.

As of June 30, 2022, December 31, 2021 and June 30, 2021, trade receivables from top ten customers represented 92.45%, 94.08% and 94.25% of the total trade receivables of the Group, respectively. The credit concentration risk of other trade receivables is insignificant.

Credit risk from balances with banks and other financial instruments is managed by the Group's treasury in accordance with the Group's policy. The Group only transacts with counterparties approved by the internal control procedures, which are banks and financial institutions and companies with good credit rating. Consequently, there is no significant credit risk for these counter parties.

The Group adopted IFRS 9 to assess the expected credit losses. Except for trade receivables, for debt instrument investments which are not measured at fair value through profit or loss and are at low credit risk upon acquisition, an assessment is made at each reporting date as to whether the credit risk has substantially increased in order to determine the method of measuring the loss allowance and the loss ratio. The measurement indicators of the Group are described as follows:

			Total carrying amount as of
Level of		Measurement method	June 30,	December 31,	June 30,
credit risk	Indicator	for expected credit losses	2022	2021	2021
Credit - impaired	(a) The counterparty has experienced financial difficulties (b) Others	Lifetime expected credit losses	\$-	\$-	\$15,000
Simplified approach (Note)	(Note)	Lifetime expected credit losses	\$788,234	\$1,047,198	\$1,173,932

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

(Amounts are expressed in thousands of New Taiwan Dollars unless otherwise stated)

Note: By using simplified approach (loss allowance is measured at lifetime expected credit losses), including notes receivables, trade receivables and trade receivables from related parties.

Financial assets are written off when there is no realistic prospect of future recovery.

(5) Liquidity risk management

The Group's objective is to maintain a balance between continuity of funding and flexibility through the use of cash and cash equivalents and financial assets and liabilities at fair value through profit or loss. The table below summarizes the maturity profile of the Group's financial liabilities based on the contractual undiscounted payments and contractual maturity. The payment amount includes the contractual interest.

	Less than			5 to 15	15 to 20
	1 year	2 to 3 years	4 to 5 years	years	years	> 20 years	Total
June 30, 2022
Payables (including related parties)	\$2,699,106	\$-	\$-	\$-	\$-	\$-	\$2,699,106
Lease liabilities	\$8,661	\$13,252	\$8,566	\$41,856	\$16,738	\$21,383	\$110,456
Deposits received	\$-	\$28,483	\$-	\$-	\$-	\$-	\$28,483

December 31, 2021
Payables (including related parties)	\$1,620,985	\$-	\$-	\$-	\$-	\$-	\$1,620,985
Lease liabilities	\$8,795	\$14,916	\$8,445	\$41,672	\$17,666	\$22,371	\$113,865
Deposits received	\$-	\$28,483	\$-	\$-	\$-	\$-	\$28,483

June 30, 2021
Payables (including related parties)	\$1,474,690	\$-	\$-	\$-	\$-	\$-	\$1,474,690
Lease liabilities	\$5,889	\$8,837	\$8,406	\$41,671	\$18,667	\$23,454	\$106,924
Deposits received	\$-	\$25,705	\$-	\$-	\$-	\$-	\$25,705

Non-derivative financial liabilities

English Translation of Consolidated Financial Statements and Footnotes Originally Issued in Chinese ITE TECH. INC. AND SUBSIDIARIES NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) (Amounts are expressed in thousands of New Taiwan Dollars unless otherwise stated)

(6) Reconciliation of liabilities arising from financing activities

Reconciliation of liabilities for the six-month periods ended June 30, 2022 and 2021:

			Total liabilities
	Deposits		from financing
	received	Lease liabilities	activities
As of January 1, 2022	\$28,483	\$93,772	\$122,255
Cash flows	-	(3,356)	(3,356)
Non-cash changes	-	746	746
As of June 30, 2022	\$28,483	\$91,162	\$119,645
As of January 1, 2021	\$24,291	\$90,039	\$114,330
Cash flows	1,414	(3,660)	(2,246)
Non-cash changes	-	306	306
As of June 30, 2021	\$25,705	\$86,685	\$112,390

(7) Fair values of financial instruments
(a) The methods and assumptions applied in determining the fair value of financial instruments:

Fair value isthe price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The following methods and assumptions were used by the Group to measure or disclose the fair values of financial assets and financial liabilities:

I. The carrying amount of cash and cash equivalents, trade receivables (including related parties), other receivables, other non-current assets, payables (including related parties) and deposits received approximate their fair value due to their short maturities.
II. For financial assets and liabilities traded in an active market with standard terms and conditions, their fair value is determined based on market quotation price (including listed equity securities and funds) at the reporting date.
III.Fair value of equity instruments without market quotations (including private company equity securities) are estimated using the market approach valuation techniques based on parameters such as prices based on market transactions of equity instruments of identical or comparable entities and other relevant information (for example, inputs such as discount for lack of marketability, P/E ratio of similar entities and Price-Book ratio of similar entities).

(b) Fair value of financial instruments measured at amortized cost

The carrying amounts of the Group's financial assets and liabilities measured at amortized cost approximate their fair value.

Please refer to Note 12(8) for fair value measurement hierarchy for financial instruments of the Group.

(8) Fair values measurement hierarchy
(a) Fair value measurement hierarchy

All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorized within the fair value hierarchy, based on the lowest level input that is significant to the fair value measurement as a whole. Level 1, 2 and 3 inputs are described as follows:

Level 1 Quoted (unadjusted) market prices in active markets for identical assets or liabilities that the entity can access at the measurement date.
Level 2 Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly.
Level 3 Unobservable inputs for the assets or liabilities.

For assets and liabilities that are recognized in the financial statements on a recurring basis, the Group determines whether transfers have occurred between Levels in the hierarchy by re-assessing categorization at the end of each reporting period.

(b) Fair value measurement hierarchy of the Group's assets and liabilities

The Group does not have assets that are measured at fair value on a non-recurring basis. Fair value measurement hierarchy of the Group's assets and liabilities measured at fair value on a recurring basis is as follows:

ITE TECH. INC. AND SUBSIDIARIES

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

(Amounts are expressed in thousands of New Taiwan Dollars unless otherwise stated)

As of June 30, 2022:

	Level 1	Level 2	Level 3	Total
Financial assets at fair value: Financial assets at fair value through profit or loss Funds Capital Financial assets at fair value through other comprehensive income	\$1,762,147 -	\$- -	\$- 44,431	\$1,762,147 44,431
Equity instruments measured at fair value through other comprehensive income	298,913	-	1,001,078	1,299,991
Total	\$2,061,060	\$-	\$1,045,509	\$3,106,569
As of December 31, 2021:
	Level 1	Level 2	Level 3	Total
Financial assets at fair value: Financial assets at fair value through profit or loss Funds Financial assets at fair value through other comprehensive income	\$1,565,229	\$-	\$-	\$1,565,229
Equity instruments measured at fair value through other comprehensive income	43,351	-	1,795,607	1,838,958
Total	\$1,608,580	\$-	\$1,795,607	\$3,404,187
As of June 30, 2021:
	Level 1	Level 2	Level 3	Total
Financial assets at fair value: Financial assets at fair value through profit or loss Funds	\$1,366,865	\$-	\$-	\$1,366,865
Financial assets at fair value through other comprehensive income Equity instruments measured at fair value through other comprehensive	32,892	-	1,238,904	1,271,796
income
Total	\$1,399,757	\$-	\$1,238,904	\$2,638,661

ITE TECH. INC. AND SUBSIDIARIES NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) (Amounts are expressed in thousands of New Taiwan Dollars unless otherwise stated)

Transfers between Level l and Level 2 during the period

During the six-month preiods ended June 30, 2022 and 2021, there were no transfers between Level 1 and Level 2 fair value measurements.

Movements of fair value measurement in level 3 on recurring basis

Reconciliation for fair value measurements in Level 3 of the fair value hierarchy for movements during the period is as follows:

		Assets
	At fair value through profit or	At fair value through other comprehensive
	loss	income
	Capital	Stocks	Total
As of January 1, 2022	\$-	\$1,795,607	\$1,795,607
Total gains and losses recognized:
Amount recognized in profit or loss
("other gains and losses")	(8,661)	-	(8,661)
Amount recognized in other
comprehensive income ("Unrealized
gains (losses) from equity instruments	-	(516,112)	(516,112)
investments measured at fair value
through other comprehensive income")
Additions	53,092	-	53,092
Disposals	-	(6,950)	(6,950)
Transfer out of level 3	-	(271,467)	(271,467)
As of June 30, 2022	\$44,431	\$1,001,078	\$1,045,509

		Assets
	At fair value	At fair value through
	through	other comprehensive
	profit or loss	income
	Capital	Stocks	Total
As of January 1, 2021	\$-	\$1,091,514	\$1,091,514
Total gains and losses recognized:
Amount recognized in other
comprehensive income ("Unrealized
gains (losses) from equity instruments	-	147,390	147,390
investments measured at fair value
through other comprehensive income")
As of June 30, 2021	\$-	\$1,238,904	\$1,238,904

Recognized as gain (loss) above, the (loss) gain from financial assets still held by the Group as of June 30, 2022 and 2021 was NT\$(8,661) thousand and NT\$0, respectively.

Information on significant unobservable inputs to valuation

Description of significant unobservable inputs to valuation of recurring fair value measurements categorized within Level 3 of the fair value hierarchy is as follows:

As of June 30, 2022

	Valuation technique	Significant unobservable inputs	Quantitative information	Relationship between inputs and fair value	Sensitivity analysis of the input to fair value
Financial assets: Financial assets at fair value
through profit or loss Capital	Asset approach	Discount for lack of marketability	10%	The higher the discount for lack of marketability, the lower the fair value estimated	10% increase (decrease) in the discount for lack of marketability would result in (decrease) increase in the Group's profit (loss) by NT\$4,443 thousand
Financial assets at fair value through other comprehensive income
Stocks	Market approach	Discount for lack of marketability	30%	The higher the discount for lack of marketability, the lower the fair value estimated	10% increase (decrease) in the discount for lack of marketability would result in (decrease) increase in the Group's equity by NT\$8,363 thousand
Stocks	Asset approach	Discount for lack of marketability	10%	The higher the discount for lack of marketability, the lower the fair value estimated	10% increase (decrease) in the discount for lack of marketability would result in (decrease) increase in the Group's equity by NT\$91,745 thousand

As of December 31, 2021

	Valuation	Significant	Quantitative	Relationship between	Sensitivity analysis of the input
	technique	unobservable inputs	information	inputs and fair value	to fair value
Financial assets:
Financial assets at fair value
through other
comprehensive income
Stocks	Market	Discount for lack of	30%	The higher the discount for	10% increase (decrease) in the
	approach	marketability		lack of marketability,	discount for lack of
				the lower the fair value	marketability would result in
				estimated	(decrease) increase in the
					Group's equity by NT\$55,594
					thousand
Stocks	Asset	Discount for lack of	10%	The higher the discount for	10% increase (decrease) in the
	approach	marketability		lack of marketability,	discount for lack of
				the lower the fair value	marketability would result in
				estimated	(decrease) increase in the
					Group's equity by
					NT\$123,967 thousand

As of June 30, 2021

	Valuation technique	Significant unobservable inputs	Quantitative information	Relationship between inputs and fair value	Sensitivity analysis of the input to fair value
Financial assets: Financial assets at fair value through other
comprehensive income
Stocks	Market approach	Discount for lack of marketability	30%	The higher the discount for lack of marketability, the lower the fair value estimated	10% increase (decrease) in the discount for lack of marketability would result in (decrease) increase in the Group's equity by NT\$29,864 thousand
Stocks	Asset approach	Discount for lack of marketability	10%	The higher the discount for lack of marketability, the lower the fair value estimated	10% increase (decrease) in the discount for lack of marketability would result in (decrease) increase in the Group's equity by NT\$94,026 thousand

Valuation process used for fair value measurements categorized within Level 3 of the fair value hierarchy

The Group validatesthe fair valuemeasurements and ensuresthat the results ofthe valuation are in line with market conditions, based on independent and reliable inputs which are consistent with other information, and represent exercisable prices. The Group also analyses the movements in the values of assets and liabilities which are required to be re-measured or re-assessed based on the Group's accounting policies at each reporting date.

(9) Significant assets and liabilities denominated in foreign currencies

Information regarding the significant financial assets and liabilities denominated in foreign currencies is listed below:

	As of
		June 30, 2022			December 31, 2021
	Foreign currencies (In thousands)	Foreign exchange rate	NTD (In thousands)	Foreign currencies (In thousands)	Foreign exchange rate	NTD (In thousands)
Financial assets
Monetary items:
USD	\$11,288	29.735	\$335,639	\$11,439	27.655	\$316,348
Financial liabilities Monetary items:
USD	\$10,028	29.735	\$298,174	\$16,455	27.655	\$455,070

		As of
		June 30, 2021
	Foreign currencies (In thousands)	Foreign exchange rate	NTD (In thousands)
Financial assets
Monetary items:
USD	\$18,614	27.895	\$519,248
Financial liabilities Monetary items:
USD	\$12,155	27.895	\$339,072

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

(Amounts are expressed in thousands of New Taiwan Dollars unless otherwise stated)

The Group does not disclose all of information regarding the assets and liabilities denominated in foreign currencies due to the varieties of foreign currency transactions. During the three-month and six-month periods ended June 30, 2022 and 2021, the foreign exchange gains (losses) were NT\$608 thousand, NT\$(3,822) thousand, NT\$2,524 thousand and NT\$(767) thousand, respectively.

The above information is disclosed based on the carrying amount of foreign currency (after conversion to functional currency).

(10) Capital management

The primary objective of the Group's capital management is to ensure that it maintains a strong credit rating and healthy capital ratios in order to support its business and maximize shareholder value. The Group manages its capital structure and makes adjustments to it, in light of changes in economic conditions. To maintain or adjust the capital structure, the Group may adjust dividend payment to shareholders, return capital to shareholders or issue new shares.

ITE TECH. INC. AND SUBSIDIARIES

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

(Amounts are expressed in thousands of New Taiwan Dollars unless otherwise stated)

13.Additional Disclosure

(1) Information at significant transactions

Additional disclosures for information of the Company for the six-month period ended June 30, 2022:

(a) Financing provided to others: None.

(b) Endorsement/Guarantee provided to others: None.

			Relationship	June 30, 2022
Held Company Name		Marketable Securities Type and Name		with the Financial Statement Account Company		Carrying Value	Percentage of Ownership (%)	Fair Value	Note
	Common Stock	Unitech Capital, Inc.	-	Financial assets at fair value through other comprehensive income, non-current	2,000,000	45,060	4.00%	45,060
	Common Stock	Shieh Yong Investment Co., Ltd.	-	Financial assets at fair value through other comprehensive income, non-current	33,408,979	220,165	1.52%	220,165
	Common Stock	Darjun Venture Corporation		Financial assets at fair value through other comprehensive income, non-current	9,280,000	88,160	19.61%	88,160
ITE Tech.	Common Stock	TriKnight Capital Corporation	-	Financial assets at fair value through other comprehensive income, non-current	29,285,000	288,164	5.00%	288,164
Inc.	Common Stock Darhe II Venture Corporation		-	Financial assets at fair value through other comprehensive income, non-current	10,000,000	95,700	14.29%	95,700
	Common Stock	Darchan Venture Corporation		Financial assets at fair value through other comprehensive income, non-current	20,000,000	180,200	18.18%	180,200
	Common Stock	Generiton Co., Ltd.	-	Financial assets at fair value through other comprehensive income, non-current	508,047	22,639	12.70%	22,639
	Common Stock	Embestor Technology Inc.	-	Financial assets at fair value through other comprehensive income, non-current	4,400,000	45,980	16.92%	45,980

ITE TECH. INC. AND SUBSIDIARIES NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

(Amounts are expressed in thousands of New Taiwan Dollars unless otherwise stated)

					June 30, 2022
Held Company Marketable Name		Securities Type and Name	Relationship with the Company	Financial Statement Account	Shares/Units	Carrying Value	Percentage of Ownership (%)	Fair Value	Note
	Common Stock	Isentek Inc.	-	Financial assets at fair value through other comprehensive income, non-current	1,000,000	15,010	3.96%	15,010
	Common Stock	A-Tec Subsystem Inc.	-	Financial assets at fair value through other comprehensive income, non-current	500,000	-	12.50%	-
	Common Stock	Gigastone Corporation	-	Financial assets at fair value through other comprehensive income, non-current	1,734,841	17,053	3.42%	17,053
	Common Stock	Orient Semiconductor Electronics Limited		Financial assets at fair value through other comprehensive income, non-current	830,000	13,322	0.10%	13,322
	Common Stock	M3 Technology Inc.		Financial assets at fair value through other comprehensive income, non-current	1,953,000	268,538	4.84%	268,538
ITE Tech. Inc.	Fund	Taishin 1699 Money Market Fund	-	Financial assets at fair value through profit or loss, current	56,391,654.40	772,639	-	772,639
	Fund	Taishin Ta Chong Money Market Fund	-	Financial assets at fair value through profit or loss, current	24,405,639.20	350,702	-	350,702
	Fund	Jih Sun Money Market Fund	-	Financial assets at fair value through profit or loss, current	30,115,964.21	452,059	-	452,059
	Fund	Nomura Taiwan Money Market Fund	-	Financial assets at fair value through profit or loss, current	9,756,813.62	160,978	-	160,978
	Fund	Yuanta/P-shares Taiwan Dividend Plus ETF	-	Financial assets at fair value through profit or loss, non-current	935,000	25,769	-	25,769
	Capital	TGVest Asia Partners II (Taiwan), L.P.	-	Financial assets at fair value through profit or loss, non-current	-	44,431	-	44,431

(d) Individual securities acquired or disposed of with accumulated amount exceeding the lower of NT\$300 million or 20 percent of the capital stock: None.

ITE TECH. INC. AND SUBSIDIARIES NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

(Amounts are expressed in thousands of New Taiwan Dollars unless otherwise stated)

(e) Acquisition of individual real estate with amount exceeding the lower of NT\$300 million or 20 percent of the capital stock: None.

(f) Disposal of individual real estate with amount exceeding the lower of NT\$300 million or 20 percent of the capital stock: None.

(g) Related party transactions for purchases and sales amounts exceeding the lower of NT\$100 million or 20 percent of the capital stock:

Company Name Related Party Nature of Relationship Transaction Details Abnormal Transaction Notes/Trade Payable or Receivable Note Purchases/ Sales Amount % to Total Payment Terms Unit Price Payment Terms Ending Balance % to Total ITE Tech. Inc. United Microelectronics Corp. Directors of the Company Purchases \$529,476 60.21% 45 days after month-end Not comparable to the market due to differentiation of manufacturing process and product specification Same as general trading conditions \$(174,825) (29.51)% HeJian Technology (Suzhou) Co., Ltd. Other related party Purchases \$238,715 27.14% 45 days after month-end Not comparable to the market due to differentiation of manufacturing process and product specification Same as general trading conditions \$(85,451) (14.42)%

Amount: Thousands of NTD

ITE TECH. INC. AND SUBSIDIARIES

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

(Amounts are expressed in thousands of New Taiwan Dollars unless otherwise stated)

(h) Receivables from related parties with amounts exceeding the lower of NT\$100 million or 20 percent of capital stock as of June 30, 2022: None.
(i) Trading in derivative instruments: None.
(j) Intercompany relationship and significant intercompany transactions:

				Intercompany Transactions
No. (Note 1)	Company Name	Counter Party	Nature of Relationship (Note 2)	Financial Statement Item	Amount	Term	Percentage of Consolidated Net Revenue or Total Assets (Note 3)
0	ITE Tech. Inc.	ITE Tech. (Shenzhen) Inc.	1	Administrative expenses	\$19,494	On demand	0.65%

Note 1: Number should be input in the remark column for intercompany transactions. Here illustrate how to assign numbers to transactions.

1. 0 for parent company.
1. Subsidiaries are given a number in sequence starting with No. 1.
Note 2: There are three types of transactions. Please remark the type of transaction by giving a number to it.
1. Parent to Subsidiary.
1. Subsidiary to Parent.
1. Subsidiaries to Subsidiaries.
Note 3: Asset/liability items are calculated by using the ending balances of the item divided by ending balance of total consolidated assets; Profit/loss items are calculated by using the amount of the transaction divided by total consolidated revenue.

English Translation of Consolidated Financial Statements and Footnotes Originally Issued in Chinese ITE TECH. INC. AND SUBSIDIARIES NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) (Amounts are expressed in thousands of New Taiwan Dollars unless otherwise stated)

(2) Information on investees

Names, locations and related information of investees as of June 30, 2022 (excluding investment in Mainland China):

									Amount:	Thousands of NTD
				Original Investment Amount		Balances as of June 30, 2022			Net Income (losses)	Share of
	Investor Investee Company Location		Main Businesses and		December 31,	Shares	Percentage of	Carrying	of the Investee	Profits	Note
Company			Products	June 30, 2022	2021		Ownership	Value	Company	/Losses
ITE Tech. Inc.	Emright Technology Co., Ltd.	Taiwan	Communication machinery equipment, electronic components manufacturing	\$41,768	\$41,768	4,176,800	36.32%	\$10,649	\$(7,281)	\$(2,645)

(3) Investment in Mainland China

(a) Investment situation:

Amount: US Dollars/Thousands of NTD

	Main Amount of Investee Businesses	Total		Accumulated outflow of	Investment Flows		Accumulated outflow of	Percentage	Net Income	Share of	Carrying	Accumulated Inward
		Paid-in	Method of	Investment from			Investment from	of	(Losses) of	Profits	Amount as of	Remittance
Company	and Products		Investment	Taiwan as of			of June Taiwan as	Ownership	the Investee	/Losses	June 30, 2022	of Earnings
	Capital		January 1, 2022	Outflow Inflow		30, 2022		Company	(Note 3)	(Note 3)	as of June
	(Note	4)		(Note 4)			(Note 4)					30, 2022
ITE Tech. (Shenzhen) Inc.	Technological consultation services for ICs products	\$17,841 USD 600,000	Direct investment in Mainland China (Note 1)	\$17,841 USD 600,000	\$-	\$-	\$17,841 USD 600,000	100%	\$2,084	\$2,084	\$4,565	\$-

ITE TECH. INC. AND SUBSIDIARIES NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

(Amounts are expressed in thousands of New Taiwan Dollars unless otherwise stated)

Accumulated Investment in Mainland China as of June 30, 2022	Investment Amounts Authorized by Investment Commission, MOEA	Upper Limit on Investment
\$17,841 (Note 4) (USD600,000)	\$17,841 (Note 4) (USD600,000)	\$2,992,132 (Note 2)

Note 1: The Company has been approved the investment which that changed the investment structure and directly invested in ITE Tech. (Shenzhen) Inc. by the Investment Commission, MOEA.
Note 2: lBased on Regulations Governing the Approval of Investment or Technical Cooperation in the Mainland China promulgated by Investment Commission, MOEA.
Note 3: According to regulations, it may be evaluated based on the financial statements of the investee company un-reviewed by the accountant during the same period.
Note 4: Converted to NTD at the exchange rate on the financial reporting date (1 USD=29.735NTD).
(b) Significant direct or indirect transactions with the investees in Mainland China:
I. The amount and percentage of purchases and the balance and percentage of the related payables at the end of the period: None.
II. The amount and percentage of sales and the balance and percentage of the related receivables at the end of the period: None.

III.The amount of property transactions and the amount of the resultant gains or losses: None.

IV.The balance of negotiable instrument endorsements or guarantees or pledges of collateral at the end of the period and the purposes: None.
V. The highest balance, the end of period balance, the interest rate range, and total current period interest with respect to financing of funds: None.
VI.Other transactions that have a material effect on the profit or loss for the period or on the financial position, such as the rendering or receiving of services: Please refer to Note 13(1) (j).

English Translation of Consolidated Financial Statements and Footnotes Originally Issued in Chinese ITE TECH. INC. AND SUBSIDIARIES NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) (Amounts are expressed in thousands of New Taiwan Dollars unless otherwise stated)

(4) Information of major shareholders

Name of major shareholders	Number of shares held (shares)	Percentage of ownership
United Microelectronics Corp.	13,959,978	8.66%

14.Segment information

General Information

The products of the Group are all related to integrated circuit design products and the chief operating decision maker reviews the Group's operating results as a whole to make decisions about resources to be allocated and assess its performance; therefore, the Group is considered a single segment. The preparation basis of the segment is the same with the preparation of this financial statements, and the policies are the same with those mentioned in Note 4, Summary of Significant Accounting Policies.

AI assistant

ITE — Interim / Quarterly Report 2022

52248_rns_2022-11-30_9a19b70e-0954-4cf1-b997-f644bf06270f.pdf

ITE TECH. INC. AND SUBSIDIARIES

CONSOLIDATED FINANCIAL STATEMENTS WITH REPORT OF INDEPENDENT AUDITORS FOR THE SIX-MONTH PERIODS ENDED JUNE 30, 2022 AND 2021

Notice to Readers

ITE TECH. INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS June 30, 2022, December 31, 2021 and June 30, 2021 (June 30, 2022 and 2021 are unaudited) (Expressed in Thousands of New Taiwan Dollars)

ITE TECH. INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS June 30, 2022, December 31, 2021 and June 30, 2021 (June 30, 2022 and 2021 are unaudited) (Expressed in Thousands of New Taiwan Dollars)

(Expressed in Thousands of New Taiwan Dollars) English Translation of Consolidated Financial Statements Originally Issued in Chinese ITE TECH. INC. AND SUBSIDIARIES For the six-month periods ended June 30, 2022 and 2021 UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS

1. Organization and Operation

2. Date and Procedures of Authorization of Financial Statements for Issue

3. Newly Issued or Revised Standards and Interpretations

4. Summary of Significant Accounting Policies

Preparation principle of consolidated financial statements

ITE TECH. INC. AND SUBSIDIARIES NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

5. Significant Accounting Judgements, Estimates and Assumptions

6. Contents of Significant Accounts

(1) Cash and cash equivalents

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

(3) Financial assets at fair value through other comprehensive income, non-current

ITE TECH. INC. AND SUBSIDIARIES NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

(4) Financial assets measured at amortized cost, non-current

(5) Notes receivables

(6) Trade receivables and trade receivables from related parties

English Translation of Consolidated Financial Statements and Footnotes Originally Issued in Chinese ITE TECH. INC. AND SUBSIDIARIES NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) (Amounts are expressed in thousands of New Taiwan Dollars unless otherwise stated)

(7) Inventories

(8) Investments accounted for using the equity method

ITE TECH. INC. AND SUBSIDIARIES

ITE TECH. INC. AND SUBSIDIARIES NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) (Amounts are expressed in thousands of New Taiwan Dollars unless otherwise stated)

(9) Property, plant and equipment

ITE TECH. INC. AND SUBSIDIARIES NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) (Amounts are expressed in thousands of New Taiwan Dollars unless otherwise stated)

(10) Intangible assets

(11) Other current liabilities

(12) Post-employment benefits plans

Defined contribution plan

Defined benefit plan

(13) Equity

(b) Capital surplus

ITE TECH. INC. AND SUBSIDIARIES

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

(14) Share-based payment plans

Restricted stocks plans for employees

(15) Operating revenues

ITE TECH. INC. AND SUBSIDIARIES

(b) Assets recognized from costs to fulfill a contract

(16) Expected credit gains

ITE TECH. INC. AND SUBSIDIARIES NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

2022.06.30

ITE TECH. INC. AND SUBSIDIARIES NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

(17) Leases

Group as a lessee

(a) Amounts recognized in the balance sheet

I. Right-of-use assets

ITE TECH. INC. AND SUBSIDIARIES

(b) Amounts recognized in the statement of comprehensive income

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

ITE TECH. INC. AND SUBSIDIARIES NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

ITE TECH. INC. AND SUBSIDIARIES NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

(19) Non-operating income and expenses

(a) Other income

(b) Other gains and losses

ITE TECH. INC. AND SUBSIDIARIES

(c) Finance costs

(20) Components of other comprehensive income (loss)

For the three-month period ended June 30, 2022

English Translation of Consolidated Financial Statements and Footnotes Originally Issued in Chinese ITE TECH. INC. AND SUBSIDIARIES NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

For the three-month period ended June 30, 2021

For the six-month period ended June 30, 2022

ITE TECH. INC. AND SUBSIDIARIES

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

For the six-month period ended June 30, 2021

(a) The major components of income tax expense are as follows:

Income tax expense (income) recognized in profit or loss

(b) The assessment of income tax returns

(22) Earnings per share

ITE TECH. INC. AND SUBSIDIARIES NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) (Amounts are expressed in thousands of New Taiwan Dollars unless otherwise stated)

7. Related Party Transactions

Name and nature of relationship of the related parties

Significant transactions with the related parties

(1) Sales

ITE Interim / Quarterly Report 2022