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

Ticker: 3189

Kinsus Interconnect Technology Corp. and Subsidiaries Consolidated Financial Statements With Review Report of Independent Auditors As of June 30, 2021 and 2020 And For The Six-month Periods Then Ended

Address: No. 1245, Chung Hua Rd., Hsinwu District, Taoyuan City, Taiwan 32747 Telephone: (03)487-1919

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.

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

	Index Item	Page
1.	Cover sheet	1
2.	Index	2
3.	Independent Auditors' Review Report	3-5
4.	Consolidated balance sheets	6-7
5.	Consolidated statements of comprehensive income	8
6.	Consolidated statements of changes in equity	9
7.	Consolidated statements of cash flows	10
8.	Footnotes to the consolidated financial statements
	(1) History and organization	11
	(2) Date and procedures of authorization of financial statements for issue	11
	(3) Newly issued or revised standards and interpretations	11-16
	(4) Summary of significant accounting policies	16-20
	(5) Significant accounting judgments, estimates and assumptions	20
	(6) Contents of significant accounts	20-64
	(7) Related party transactions	64-68
	(8) Assets pledged as collaterals	69
	(9) Significant contingencies and unrecognized contract commitments	69-70
	(10) Losses due to major disasters	70
	(11) Significant subsequent events	70
	(12) Others	70-80
	(13) Other disclosures
	1. Information on significant transactions	80-81
	2. Information on investees	81-82
	3. Information on investments in Mainland China	83-88
	4. Information on major shareholders	88
	(14) Operating segment	88-90

Consolidated Financial Statements

Kinsus Interconnect Technology Corp. and Subsidiaries

Consolidated Balance Sheets

As of June 30, 2021, December 31, 2020 and June 30, 2020 (June 30, 2021 and 2020 are reviewed but unaudited)

(Amounts Expressed In Thousands of New Taiwan Dollars)

	Assets	As of June 30, 2021		As of December 31, 2020		As of June 30, 2020
Code	Accounts	Notes	Amount	%	Amount	%	Amount	%
	Current assets
1100	Cash and cash equivalents	6(1)	\$12,018,634	23	\$11,664,932	27	\$11,126,385	27
1110	Financial assets at fair value through profit or loss	6(2)	863,560	2	1,594,063	4	1,317,663	3
1136	Financial assets carried at amortized cost	6(3), 8	466,623	1	467,167	1	623,057	2
1150	Notes receivable, net	6(5)	6,132	-	1,182	-	1,067	-
1170	Accounts receivable, net	6(6)	5,466,215	11	4,377,155	10	4,143,411	10
1180	Accounts receivable - related parties, net	6(6), 7	42,269	-	24,862	-	75,162	-
1200	Other receivables		280,222	-	141,161	-	64,906	-
1210	Other receivables - related parties	7	241	-	4,114	-	6,013	-
1310	Inventories, net	6(7)	2,975,114	6	2,889,017	7	2,695,841	7
1410	Prepayments		498,458	1	212,742	1	186,337	-
1470	Other current assets		373,220	1	287,596	1	217,587	1
11xx	Total current assets		22,990,688	45	21,663,991	51	20,457,429	50
	Non-current assets
1517	Financial assets at fair value through OCI	6(4)	51,000	-	51,000	-	50,000	-
1550	Investment accounted for under equity method	6(8)	355,447	1	298,789	1	453,516	1
1600	Property, plant and equipment, net	6(9), 8	23,190,992	45	18,080,810	42	18,550,255	45
1755	Right-of-use asset	6(23)	317,316	1	311,732	1	331,479	1
1780	Intangible assets	6(10)	37,390	-	32,105	-	18,629	-
1840	Deferred income tax assets	4	30,170	-	28,262	-	18,937	-
1900	Other non-current assets	6(11), 7, 8	91,107	-	120,921	-	94,987	-
1915	Prepayment for acquiring machinery	6(9), 9	3,856,805	8	2,196,342	5	1,310,833	3
15xx	Total non-current assets		27,930,227	55	21,119,961	49	20,828,636	50

1xxx	Total Assets		\$50,920,915	100	\$42,783,952	100	\$41,286,065	100

English Translation of Consolidated Financial Statements Originally Issued in Chinese Kinsus Interconnect Technology Corp. and Subsidiaries

Consolidated Balance Sheets-(Continued)

As of June 30, 2021, December 31, 2020 and June 30, 2020 (June 30, 2021 and 2020 are reviewed but unaudited)

(Amounts Expressed In Thousands of New Taiwan Dollars)

	Liabilities and Equity		As of June 30, 2021		As of December 31, 2020		As of June 30, 2020
Code	Accounts	Notes	Amount	%	Amount	%	Amount	%
	Current liabilities
2100	Short-term loans	6(12)	\$3,008,290	6	\$2,640,307	6	\$3,447,645	8
2130	Contract liability	6(21)	219,737	-	161,731	-	175,441	1
2150	Notes payable		49,537	-	46,420	-	39,474	-
2170	Accounts payable		2,690,267	5	2,358,805	6	2,210,689	5
2200	Other payables	6(13), 7	5,971,974	12	3,933,209	9	3,228,852	8
2230	Current income tax liabilities	4	400,142	1	265,246	1	240,592	1
2280	Lease liability	6(23)	43,279	-	41,846	-	66,810	-
2300	Other current liabilities	6(14)	921,527	2	1,076,669	3	1,196,092	3
2365	Refund liability	6(15)	140,947	-	206,517	-	99,152	-
21xx	Total current liabilities		13,445,700	26	10,730,750	25	10,704,747	26
	Non-current liabilities
2540	Long-term loans	6(16), 8	7,369,370	15	2,641,811	6	1,758,881	4
2570	Deferred income tax liabilities	4	30,619	-	27,763	-	16,624	-
2580	Lease liability	6(23)	75,620	-	64,400	-	57,100	-
2600	Other non-current liabilities	6(17)	160,715	-	129,669	-	112,066	1
25xx	Total non-current liabilities		7,636,324	15	2,863,643	6	1,944,671	5
2xxx	Total liabilities		21,082,024	41	13,594,393	31	12,649,418	31

31xx	Equity attributable to shareholders of the parent
3100	Capital	6(19)
3110	Common stock		4,508,441	9	4,508,625	11	4,509,152	11
3200	Capital surplus	6(19)	6,633,050	13	6,632,030	16	6,631,949	16
3300	Retained earnings	6(19)
3310	Legal reserve		3,700,821	7	3,647,505	9	3,647,505	9
3320	Special reserve		181,016	-	183,405	-	183,405	-
3350	Unappropriated earnings		11,491,401	23	10,882,082	25	10,661,767	26
3400	Other components of equity		(215,739)	-	(183,852)	-	(240,682)	(1)
3500	Treasury Stock	6(19)	-	-	(143)	-	(347)	-
36xx	Non-controlling interests	6(19)	3,539,901	7	3,519,907	8	3,243,898	8
3xxx	Total equity		29,838,891	59	29,189,559	69	28,636,647	69
	Total liabilities and equity		\$50,920,915	100	\$42,783,952	100	\$41,286,065	100

English Translation of Consolidated Financial Statements Originally Issued in Chinese Kinsus Interconnect Technology Corp. and Subsidiaries Consolidated Statements of Comprehensive Income For the three-month and six-month periods ended June 30, 2021 and 2020 (Reviewed but unaudited) (Amounts Expressed In Thousands of New Taiwan Dollars, Except Earnings Per Share)

For the three-month period For the three-month period For the six-month period ended June 30, 2021 ended June 30, 2020 ended June 30, 2021 Code Accounts Notes Amount % Amount % Amount %	For the six-month period ended June 30, 2020 Amount % \$12,678,518 100


4000 Operating revenues 6(21), 7 \$8,725,355 100 \$6,786,185 100 \$15,951,341 100
(6,360,730) (5,269,154) (75) 5000 Operating costs (73) (78) (11,988,511)	(80) (10,109,870)
5900 Gross profit 2,364,625 27 1,517,031 22 3,962,830 25	2,568,648 20
6000 Operating expenses 7
(238,025) (216,997) (3) 6100 Sales and marketing (3) (3) (464,758)	(3) (384,220)
6200 General and administrative (408,311) (5) (301,697) (4) (735,799) (4)	(595,005) (5)
6300 Research and development (632,221) (7) (574,870) (9) (1,227,269) (8)	(1,080,738) (8)
6450 Expected credit gains (losses) (308) - 1,749 - (11,730) - 6(22)	2,146 -
(2,439,556) (15) Total operating expenses (1,278,865) (15) (1,091,815) (16)	(2,057,817) (16)
6900 Operating income 1,085,760 12 425,216 6 1,523,274 10	510,831 4
7000 Non-operating incomes and expenses
- 7100 Interest income 6(25) 8,605 - 10,693 - 17,878	- 24,321
7010 Other incomes 6(25), 7 21,340 - 30,032 - 40,370 -	94,782 1
7020 Other gains and losses 6(25) (30,179) - (15,135) - (26,252) -	(2,661) -
7050 Finance costs 6(25), 7 (16,211) - (20,032) - (31,384) -	(48,432) -
61,689 (50,245) - 7060 Share of profit or loss of associates and joint ventures 6(8) 1 - 58,136	(83,353) (1)
Total non-operating incomes and expenses 45,244 1 (44,687) - 58,748 -	(15,343) -

7900 Income before income tax 1,131,004 13 380,529 6 1,582,022 10	495,488 4
(1) 7950 Income tax expense 4, 6(27) (118,258) (1) (45,550) (1) (196,668)	(1) (81,574)
8200 Net income 1,012,746 12 334,979 5 1,385,354 9	413,914 3

8300 Other comprehensive income (loss) 6(26) 8360 Items that may be reclassified subsequently to profit or loss
8361 Exchange differences on translation of foreign operations (29,531) (1) (48,158) (1) (43,744) (1)	(51,367) -
- -	-
8370 Share of the other comprehensive profit or loss of joint ventures (1,511) - (3,182) (1,478) Total other comprehensive income, net of tax (31,042) (1) (51,340) (1) (45,222) (1)	(1,390) (52,757) -
4 \$1,340,132 8 8500 Total comprehensive income \$981,704 11 \$283,639	\$361,157 3

8600 Net income attributable to:
\$852,908 10 \$233,938 3 \$1,111,031 7 8610 Shareholders of the parent	\$312,782 2
8620 Non-controlling interests 159,838 2 101,041 2 274,323 2	101,132 1
12 5 \$1,012,746 \$334,979 \$1,385,354 9	\$413,914 3
8700 Comprehensive income attributable to:
\$829,792 9 \$192,093 3 \$1,076,307 7 8710 Shareholders of the parent	\$266,022 2
8720 Non-controlling interests 151,912 2 91,546 1 263,825 1	95,135 1
4 \$1,340,132 \$981,704 11 \$283,639 8	\$361,157 3
\$1.89 \$2.47 9750 Earnings per share-basic (in NTD) 6(28) \$0.52	\$0.70
\$1.89 \$2.46 9850 Earnings per share-diluted (in NTD) 6(28) \$0.52	\$0.69

Kinsus Interconnect Technology Corp. and Subsidiaries

Consolidated Statements of Changes in Equity

For the six-month periods ended June 30, 2021 and 2020 (Reviewed but unaudited)

(Amounts Expressed In Thousands of New Taiwan Dollars)

			Equity Attributable to Shareholders of the Parent
					Retained Earnings		Others
		Common Stock	Capital Surplus	Legal Reserve	Special Reserve	Unappropriated Earnings	Exchange differences arising on translation of foreign operations	Unearned Employee Benefit	Treasury Stock	Total	Non-controlling Interests	Total Equity
Code	Items	3100	3200	3310	3320	3350	3410	3490	3500	31XX	36XX	3XXX
	A1 Balance as of January 1, 2020	\$4,510,738	\$6,637,742	\$3,647,505	\$100,384	\$10,882,980	\$(183,404)	\$(28,592)	\$(332)	\$25,567,021	\$3,270,679	\$28,837,700
	Appropriation and distribution of 2019 earnings
	B3 Special reserve				83,021	(83,021)				-		-
	B5 Cash dividends-common shares					(451,039)				(451,039)		(451,039)
	D1 Net income for the six-month period ended June 30, 2020					312,782				312,782	101,132	413,914
	D3 Other comprehensive income (loss), net of tax, for the						(46,760)			(46,760)	(5,997)	(52,757)
	six-month period ended June 30, 2020
	D5 Total comprehensive income (loss)	-	-	-	-	312,782	(46,760)	-	-	266,022	95,135	361,157

	O1 Non-controlling interests increase (decrease)										(121,916)	(121,916)
	T1 Employee restricted shares for cancellation and others	(1,586)	(5,793)			65		18,074	(15)	10,745		10,745

	Z1 Balance as of June 30, 2020	\$4,509,152	\$6,631,949	\$3,647,505	\$183,405	\$10,661,767	\$(230,164)	\$(10,518)	\$(347)	\$25,392,749	\$3,243,898	\$28,636,647

	A1 Balance as of January 1, 2021	\$4,508,625	\$6,632,030	\$3,647,505	\$183,405	\$10,882,082	\$(181,015)	\$(2,837)	\$(143)	\$25,669,652	\$3,519,907	\$29,189,559
	Appropriation and distribution of 2020 earnings
	B1 Legal reserve			53,316		(53,316)				-		-
	B3 Special reserve				(2,389)	2,389				-		-
	B5 Cash dividends-common shares					(450,847)				(450,847)		(450,847)
	D1 Net income for the six-month period ended June 30, 2021 D3 Other comprehensive income (loss), net of tax, for the					1,111,031	(34,724)			1,111,031 (34,724)	274,323 (10,498)	1,385,354 (45,222)
	six-month period ended June 30, 2021
	D5 Total comprehensive income (loss)	-	-	-	-	1,111,031	(34,724)	-	-	1,076,307	263,825	1,340,132

	O1 Non-controlling interests increase (decrease)										(243,831)	(243,831)
	T1 Employee restricted shares for cancellation and others	(184)	1,020			62		2,837	143	3,878		3,878

	Z1 Balance as of June 30, 2021	\$4,508,441	\$6,633,050	\$3,700,821	\$181,016	\$11,491,401	\$(215,739)	\$-	\$-	\$26,298,990	\$3,539,901	\$29,838,891

Kinsus Interconnect Technology Corp. and Subsidiaries

Consolidated Statements of Cash Flows

For the six-month periods ended June 30, 2021 and 2020 (Reviewed but unaudited)

(Amounts Expressed in Thousands of New Taiwan Dollars)

			For the six-month period ended June 30,			For the six-month period ended June 30,
Code	Items	2021	2020	Code	Items	2021	2020
AAAA	Cash flows from operating activities:			BBBB	Cash flows from investing activities:
A10000	Income before income tax	\$1,582,022	\$495,488	B00040	Decrease (increase) in financial assets measured at amortized cost	544	(200,000)
A20000	Adjustments:			B02700	Acquisition of property, plant and equipment	(7,841,173)	(892,383)
A20010	Income and expense adjustments:			B02800	Proceeds from disposal of property, plant and equipment	15,671	698
A20100	Depreciation(including right-of-use asset)	2,089,968	2,217,023	B03800	Decrease (increase) in refundable deposits	29,814	(6,918)
A20200	Amortization	22,044	22,059	B04500	Acquisition of intangible assets	(27,358)	(9,984)
A20300	Expected credit losses (gain on recovery)	11,730	(2,146)	BBBB	Net cash provided by (used in) investing activities	(7,822,502)	(1,108,587)
A20400	Net gain of financial assets at fair value through P/L	(1,317)	(3,129)
A20900	Interest expense	31,384	48,432
A21200	Interest income	(17,878)	(24,321)	CCCC	Cash flows from financing activities:
A21900	Cost of share based payment	3,836	12,250	C00100	Increase in (repayment of) short-term loans	367,983	(648,456)
A22300	Share of profit or loss of associates and joint ventures	(58,136)	83,353	C01600	Increase in long-term loans	5,168,820	505,000
A22500	Loss (gain) on disposal of property, plant and equipment	(8,510)	1,271	C01700	Repayments of long-term loans	(580,179)	(653,267)
A23700	Impairment loss on non-financial assets	6,107	-	C03000	Increase (decrease) in deposits received	17,774	26,253
A29900	Gain on lease modification	(684)	(55)	C04020	Cash payments for the principal portion of the lease liability	(24,253)	(76,395)
A29900	Gain on government grants	(3,746)	(1,393)	CCCC	Net cash provided by (used in) financing activities	4,950,145	(846,865)
A30000	Changes in operating assets and liabilities:
A31110	Financial assets at fair value through P/L	731,820	24,298	DDDD	Effect of exchange rate changes	(18,610)	(8,270)
A31130	Notes receivable	(4,950)	3,851
A31150	Accounts receivable	(1,100,782)	(531,690)	EEEE	Increase (decrease) in cash and cash equivalents	353,702	414,282
A31160	Accounts receivable - related parties	(17,407)	36,161	E00100	Cash and cash equivalents at beginning of period	11,664,932	10,712,103
A31180	Other receivables	(139,339)	266,909	E00200	Cash and cash equivalents at end of period	\$12,018,634	\$11,126,385
A31190	Other receivables - related parties	3,873	(112)
A31200	Inventories	(86,097)	(242,866)
A31220	Prepayments	(285,716)	(35,799)
A31240	Other current assets	(85,624)	(18,915)
A32125	Contract liabilities	58,006	102,815
A32130	Notes payable	3,117	2,298
A32150	Accounts payable	331,462	(13,882)
A32180	Other payables	304,110	(40,594)
A32230	Other current liabilities	9,226	(4,423)
A32240	Net defined benefit liability	(2,186)	(2,095)
A32990	Refund liability	(65,570)	24,287
A33000	營運產生之現金流入 Cash generated from (used in) operations (出)	3,310,763	2,419,075
A33100	Interest received	18,153	25,128
A33300	Interest paid	(24,526)	(48,506)
A33500	Income tax paid	(59,721)	(17,693)
AAAA	Net cash provided by (used in) operating activities	3,244,669	2,378,004

1. HISTORY AND ORGANIZATION

Kinsus Interconnect Technology Corp. (referred to "the Company") was established on September 11, 2000. Its main business activities include the manufacture of electronic products, the whole-sale and retail-sale of electronic materials, and the consultation services of business operation and management. The Company's stocks have been governmentally approved on May 20, 2004 to be listed and traded in Taiwan Stock Exchange starting November 1, 2004. The registered business premise and main operation address is at No. 1245, Chung Hua Rd., Hsinwu District, Taoyuan City, Taiwan 32747.

Pegatron Corporation is the ultimate controller of the Group to which the Company belongs.

2. DATE AND PROCEDURE OF AUTHORIZATION FOR FINANCIAL STATEMENTS ISSUANCE

The consolidated financial statements of the Company and its subsidiaries ("the Group") were authorized to be issued in accordance with a resolution of the Board of Directors'meeting held on July 26, 2021.

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 recognized by Financial Supervisory Commission ("FSC") and become effective for annual periods beginning on or after January 1, 2021. The new standards and amendments had no material impact on the Group.

(2) 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.

		Effective Date
Items	New, Revised or Amended Standards and Interpretations	issued by IASB
a	IFRS 10 "Consolidated Financial Statements" and IAS 28	To be determined
	"Investments in Associates and Joint Ventures" – Sale or	by IASB
	Contribution of Assets between an Investor and its Associate
	or Joint Ventures
b	IFRS 17 "Insurance Contracts"	January 1, 2023
c	Classification of Liabilities as Current or Non-current –	January 1, 2023
	Amendments to IAS 1
d	Narrow-scope amendments of IFRS, including Amendments	January 1, 2022
	to IFRS 3, Amendments to IAS 16, Amendments to IAS 37
	and the Annual Improvements
e	Disclosure Initiative - Accounting Policies – Amendments to	January 1, 2023
	IAS 1
f	Definition of Accounting Estimates – Amendments to IAS 8	January 1, 2023
g	Deferred Tax related to Assets and Liabilities arising from a	January 1, 2023
	Single Transaction – Amendments to IAS 12

(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 gains 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 June 2020. 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.

(D) Narrow-scope amendments of IFRS, including Amendments to IFRS 3, Amendments to IAS 16, Amendments to IAS 37 and the Annual Improvements
(a) Updating a Reference to the Conceptual Framework (Amendments to IFRS 3)

The amendments updated IFRS 3 by replacing a reference to an old version of the Conceptual Framework for Financial Reporting with a reference to the latest version, which was issued in March 2018. The amendments also added an exception to the recognition principle of IFRS 3 to avoid the issue of potential "day 2" gains or losses arising for liabilities and contingent liabilities. Besides, the amendments clarify existing guidance in IFRS 3 for contingent assets that would not be affected by replacing the reference to the Conceptual Framework.

(b) Property, Plant and Equipment: Proceeds before Intended Use (Amendments to IAS 16)

The amendments prohibit a company from deducting from the cost of property, plant and equipment amounts received from selling items produced while the company is preparing the asset for its intended use. Instead, a company will recognise such sales proceeds and related cost in profit or loss.

The amendments clarify what costs a company should include as the cost of fulfilling a contract when assessing whether a contract is onerous.

(d) Annual Improvements to IFRS Standards 2018 - 2021

Amendment to IFRS 1

The amendment simplifies the application of IFRS 1 by a subsidiary that becomes a first-time adopter after its parent in relation to the measurement of cumulative translation differences.

Amendment to IFRS 9 Financial Instruments

The amendment clarifies the fees a company includes when assessing whether the terms of a new or modified financial liability are substantially different from the terms of the original financial liability.

Amendment to Illustrative Examples Accompanying IFRS 16 Leases

The amendment to Illustrative Example 13 accompanying IFRS 16 modifies the treatment of lease incentives relating to lessee's leasehold improvements.

Amendment to IAS 41

The amendment removes a requirement to exclude cash flows from taxation when measuring fair value thereby aligning the fair value measurement requirements in IAS 41 with those in other IFRS Standards.

(E) 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.

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

The amendments introduce the definition of accounting estimates and included 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.

(G) Deferred Tax related to Assets and Liabilities arising from a Single Transaction – Amendments to IAS 12

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 issued by IASB have not yet 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 Group assesses that there will be no significant impact on the Group's financial statements then.

4. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

(1) Statement of compliance

The consolidated financial statements for the six-month periods ended June 30, 2021 and 2020 have been prepared in conformity 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 the FSC.

Except for the following 4(4)~4(5), the accounting policies applied in these consolidated financial statements are consistent with those applied in the consolidated financial statements for the year ended December 31, 2020. For more details, please refer to Note 4 of the Company's consolidated financial statements for the year ended December 31, 2020.

(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 presented in thousands of New Taiwan Dollars ("NT\$") unless otherwise specified.

(3) Basis of consolidation

The same principles of consolidation have been applied in the Company's consolidated financial statements as those applied in the Company's consolidated financial statements for the year ended December 31, 2020. For the principles of consolidation, please refer to Note 4(3) of the Company's consolidated financial statements for the year ended December 31, 2020.

Percentage of Ownership (%), as of Investor Subsidiary Main business Jun. 30, 2021 Dec. 31, 2020 Jun. 30, 2020 The Company KINSUS CORP. (USA) Designing substrates, formulating marketing strategy analysis, developing new customers, researching and development new product technology 100.00% 100.00% 100.00% The Company KINSUS HOLDING (SAMOA) LIMITED Investing activities 100.00% 100.00% 100.00% The Company KINSUS INVESTMENT CO., LTD. Investing activities 100.00% 100.00% 100.00% KINSUS HOLDING (SAMOA) LIMITED KINSUS HOLDING (CAYMAN) LIMITED Investing activities 100.00% 100.00% 100.00% KINSUS HOLDING (SAMOA) LIMITED PIOTEK HOLDINGS LTD. (CAYMAN) Investing activities 51.00% 51.00% 51.00% KINSUS INVESTMENT CO., LTD. PEGAVISION CORPORATION Manufacture of medical equipment 30.33% (Note) 30.33% (Note) 30.33% (Note) KINSUS HOLDING (CAYMAN) LIMITED KINSUS INTERCONNECT TECHNOLOGY SUZHOU CORP. Manufacturing and selling printed circuit board (PCB) (not highdensity fine-line) 100.00% 100.00% 100.00%

The consolidated entities are listed as follows:

KINSUS HOLDING (CAYMAN) LIMITED	XIANG-SHOU (SUZHOU) TRADING LIMITED	Trading of PCB related products and materials (not high density fine-line)	100.00%	100.00%	100.00%
PIOTEK HOLDINGS LTD. (CAYMAN)	PIOTEK HOLDING LIMITED	Investing activities	100.00%	100.00%	100.00%
PIOTEK HOLDINGS LIMITED	PIOTEK COMPUTER (SUZHOU) CO., LTD.	Researching, developing, producing and selling electronic components, PCBs and related products and providing after sale services	100.00%	100.00%	100.00%
PIOTEK HOLDINGS LIMITED	PIOTEK (H.K.) TRADING LIMITED	Trading activities	100.00%	100.00%	100.00%
PEGAVISION CORPORATION	PEGAVISION HOLDINGS CORPORATION	Investing activities	Not applicable	-% (Note 1)	100.00%
PEGAVISION CORPORATION	PEGAVISION JAPAN INC.	Selling medical equipment	100.00%	100.00%	100.00%
PEGAVISION CORPORATION	Aquamax Corporation	Selling medical equipment	100.00%	100.00% (Note 2)	100.00% (Note 2)
PEGAVISION CORPORATION	PEGAVISION CONTACT LENSES (SHANGHAI) CORPORATION	Selling medical equipment	100.00%	100.00% (Note 3)	100.00% (Note 3)

PEGAVISION CORPORATION	Pegavision (Jiangsu) Limited	producing and Selling medical equipment	100.00% (Note 5)	Not applicable	Not applicable
PEGAVISION CONTACT LENSES (SHANGHAI) CORPORATION	GEMVISION TECHNOLOGY (ZHEJIANG) LIMITED	Selling medical equipment	100.00%	100.00%	100.00%
Aquamax Corporation	Aquamax Vision Corporation	Selling medical equipment	100.00%	100.00% (Note 4)	Not applicable

Note: The Group had 30.33% ownership of Pegavision Corporation as of June 30, 2021, December 31, 2020 and June 30, 2020. However the Group possesses control over the entity as it has been the single largest shareholder since the Group invested in Pegavision Corporation. The Group and the parent company hold more than 45% of voting right while the remaining equity is individually held by numerous shareholders without contractual rights. The Group therefore has control over the entity.
Note1: For the consideration of reorganization, the equity of Pegavision Holdings Corporation was struck off the register at September 2, 2020.
Note 2: The board of directors decided to set up Aquamax Corporation which is 100% held by Pegavision Corporation at February 10, 2020. The registration was completed at June 15, 2020.
Note 3: For the consideration of reorganization, the equity of Pegavision Contact Lenses (Shanghai) Corporation was transferred to Pegavision Corporation from Pegavision Holdings Corporation. The registration was completed at May 13, 2020.
Note 4: The board of directors decided to set up Aquamax Vision Corporation which is 100% held by the Aquamax Corporation at February 10, 2020. The registration was completed at July 29, 2020.
Note 5: The board of directors decided to set up Pegavision (Jiangsu) Limited which is 100% held by Pegavision Corporation at October 26, 2020. The registration was completed at March 15, 2021.
(4) 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.

(5) Income tax

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. Only current income tax expense is using the estimated average annual effective income tax rate while deferred income tax is recognized and measured in consistent with annual financial reporting in accordance with IAS 12, "Income Tax." The impact of tax rate change in interim period, if any, is recognized in earnings, other comprehensive income or directly equity.

5. SIGNIFICANT ACCOUNTING JUDGMENTS, ESTIMATES AND ASSUMPTIONS

The preparation of the Group's consolidated financial statements requires management to make judgments, estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities, and the accompanying disclosures, and the disclosure of contingent liabilities. However, uncertainty about these assumptions and estimates could result in outcomes that require a material adjustment to the carrying amount of assets or liabilities affected in future periods.

The same significant accounting judgments, estimates and assumptions have been applied in the Company's consolidated financial statements for the six-month period ended June 30, 2021 as those applied in the Company's consolidated financial statements for the year ended December 31, 2020. For significant accounting judgments, estimates and assumptions, please refer to Note 5 of the Company's consolidated financial statements for the year ended December 31, 2020.

6. CONTENTS OF SIGNIFICANT ACCOUNTS

(1)Cash and cash equivalents

		As of
	6/30/2021	12/31/2020	6/30/2020
	(NT\$'000)	(NT\$'000)	(NT\$'000)
Cash and petty cash	\$2,879	\$3,689	\$3,111
Checking and saving	4,056,399	3,259,153	2,746,869

Time deposit	7,959,356	8,402,090	8,376,405
Total	\$12,018,634	\$11,664,932	\$11,126,385

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

	As of
6/30/2021	12/31/2020	6/30/2020
(NT\$'000)	(NT\$'000)	(NT\$'000)


\$838,945	\$1,546,518	\$1,272,248
24,615	47,545	45,415
\$863,560	\$1,594,063	\$1,317,663

\$863,560	\$1,594,063	\$1,317,663
\$-	\$-	\$-

No financial assets at fair value through profit or loss was pledged as collateral.

(3)Financial assets measured at amortized cost

		As of
	6/30/2021	12/31/2020	6/30/2020
	(NT\$'000)	(NT\$'000)	(NT\$'000)
Time deposits	\$423,057	\$423,057	\$623,057
Restricted deposits	43,566	44,110	-
Total	\$466,623	\$467,167	\$623,057

Current	\$466,623	\$467,167	\$623,057
Non-current	\$-	\$-	\$-

The Group transacts with financial institutions with good credit rating. Consequently, there is no significant credit risk.

Please refer to Note 8 for more details on financial assets measured at amortized cost pledged as collateral.

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

	As of
	6/30/2021	12/31/2020	6/30/2020
	(NT\$'000)	(NT\$'000)	(NT\$'000)
Equity instruments investments measured
at fair value through other
comprehensive income – Non-current:
Unlisted company stocks	\$51,000	\$51,000	\$50,000

No financial assets at fair value through other comprehensive income was pledged as collateral.

(5)Notes receivable

		As of
	6/30/2021	12/31/2020	6/30/2020
	(NT\$'000)	(NT\$'000)	(NT\$'000)
Notes receivable arising from operating
activities	\$6,132	\$1,182	\$1,067
Less: loss allowance	-	-	-
Total	\$6,132	\$1,182	\$1,067

Notes receivables were not pledged.

The Group follows the requirement of IFRS 9 to assess the impairment. Please refer to Note 6(22) for more details on loss allowance and Note 12 for details on credit risk.

(6)Accounts receivable and accounts receivable - related parties, net

A.Accounts receivable, net

		As of
	6/30/2021	12/31/2020	6/30/2020
	(NT\$'000)	(NT\$'000)	(NT\$'000)
Accounts receivable, gross	\$5,497,952	\$4,397,170	\$4,167,399
Less: allowance against doubtful accounts	(31,737)	(20,015)	(23,988)

Net of allowances	5,466,215	4,377,155	4,143,411
Accounts receivable - related parties, gross	42,269	24,862	75,162
Less: allowance against doubtful accounts	-	-	-
Net of allowances	42,269	24,862	75,162
Total accounts receivable, net	\$5,508,484	\$4,402,017	\$4,218,573

B.Account receivables were not pledged.
C.The Group entered into factoring agreements with banks. Accounts receivable from selected customers are transferred to banks without recourse. Details of the agreed credit limits and accounts receivable transferred were as follows:

		Accounts
		receivable		Advance
	Financial	de-recognized		received		Credit
	Institution	(NT\$'000)	Interest Rate	(NT\$'000)	Collateral	Limit
6/30/2021	Mega	\$520,211	0.37%~0.38%	\$355,319	None	Note
	International
	Commercial
	Bank - LanYa
	Branch

12/31/2020	Mega	\$480,175	0.42%~0.51%	\$479,599	None	Note
	International
	Commercial
	Bank - LanYa
	Branch
6/30/2020
	Mega	\$343,577	0.46%~0.53%	\$340,712	None	Note
	International
	Commercial
	Bank - LanYa
	Branch

Note: The credit limits were US\$30,000 thousand as of June 30, 2021, December 31, 2020 and June 30, 2020.

D.Accounts receivable are generally on 30-90 day terms. The total carrying amount as of June 30, 2021, December 31, 2020 and June 30, 2020, are NT\$5,540,221 thousand, NT\$4,422,032 thousand and NT\$4,242,561 thousand, respectively. Please refer to Note 6 (22) for more details on loss allowance of accounts receivable for the periods ended June 30, 2021 and 2020. Please refer to Note 12 for more details on credit risk management.

(7)Inventories

A. Details of inventory:

	As of
	6/30/2021	12/31/2020	6/30/2020
	(NT\$'000)	(NT\$'000)	(NT\$'000)
Raw material	\$698,310	\$708,425	\$623,336
Supplies	76,593	67,033	52,333
Work in process	1,576,298	1,408,262	1,327,294
Finished goods	544,659	647,654	640,739
Merchandises	79,254	57,643	52,139
Total	\$2,975,114	\$2,889,017	\$2,695,841

B. For the three-month periods ended June 30, 2021 and 2020, the Group recognized NT\$6,360,730 thousand and NT\$5,269,154 thousand under the caption of costs of sale, respectively. For the six-month periods ended June 30, 2021 and 2020, the Group recognized NT\$11,988,511 thousand and NT\$10,109,870 thousand under the caption of costs of sale, respectively. The following items were also included in cost:

	For the three-month			For the six-month
	period ended June	30,	period ended June	30,
	2021	2020	2021	2020
Item	(NT\$'000)	(NT\$'000)	(NT\$'000)	(NT\$'000)
Loss (Gain) from inventory
market decline	\$325,413	\$(12,736)	\$471,291	\$544
Loss from physical	23,257	1,209	39,152	3,318
Loss from inventory write-off
obselencense	591,650	643,909	1,215,273	1,246,264
Total	\$940,320	\$632,382	\$1,725,716	\$1,250,126

The Group recoginzed gains on recovery of inventory market decline beceuse some of the inventories previously provided with market loss or obsolescence were disposed for the three-month period ended June 30, 2020.

C. The inventories were not pledged.
(8) Investments accounted for under the equity method

	As of
	6/30/2021			12/31/2020	6/30/2020
Investees	Carrying amount (NT\$'000)	Percentage of ownership (%)	Carrying amount (NT\$'000)	Percentage of ownership (%)	Carrying amount (NT\$'000)	Percentage of ownership (%)
Investments in associates:
FuYang Technology Corp.	\$355,447	35.65%	\$298,789	35.65%	\$453,516	35.65%

A. The Company invested cash in FuYang Technology Corp. during May 2016 for interest ownership of 36%. The investment is accounted for as an investment in associates due to the Company's ability to exercise its significant influence.

In May 2017, the Company participated in FuYang's cash offering by unproportionately investing NT\$479,422 thousand for 19,176,872 shares of FuYang and, therefore, recognized a capital surplus amounting to NT\$7,484 thousand. As a result of the offering, the Company's share interest on FuYang decreased to 35.65%.

B. Investments in associates

As of June 30, 2021, December 31, 2020 and June 30, 2020, the aggregate carrying amount of the Group's interests in FuYang Technology Corp. is NT\$355,447 thousand, NT\$298,789 thousand, NT\$453,516 thousand, respectively. The aggregate financial information based on Group's share of FuYang Technology Corp. is as follows:

	For the three-month		For the six-month
	period ended June 30,		period ended June 30,
	2021 2020		2021	2020
	(NT\$'000)	(NT\$'000)	(NT\$'000)	(NT\$'000)
Profit or loss from continuing
operations	\$61,689	\$(50,245)	\$58,136	\$(83,353)
Other comprehensive income
(post-tax)	(1,511)	(3,182)	(1,478)	(1,390)
Total comprehensive income	\$60,178	\$(53,427)	\$56,658	\$(84,743)

There were no contingent liabilities or capital commitments with respect to the investment in the associate as of June 30, 2021, December 31, 2020 and June 30, 2020. Nor any of the Group's share interest on FuYang was pledged as collateral.

C. The Group's investment accounted for under equity method as of June 30, 2021 and 2020 amounted to NT\$355,447 thousand and NT\$453,516 thousand while the related investment income/loss and joint venture income were NT\$61,689 thousand, NT\$(50,245) thousand, NT\$58,136 thousand and NT\$(83,353) thousand for the three-month and six-month period then ended June 30, 2021 and 2020, respectively. And other comprehensive income were NT\$(1,511) thousand, NT\$(3,182) thousand, NT\$(1,478) thousand and NT\$(1,390) thousand for the three-month and six-month period then ended June 30, 2021 and 2020, respectively. Please note that the financial statements of the investee for the same correspondent periods were not reviewed.
D. No investment accounted for under equity method was pledged as collateral as of June 30, 2021, December 31, 2020 and June 30, 2020.

(9) Property, plant and equipment

As of
6/30/2021	12/31/2020	6/30/2020
(NT\$'000)	(NT\$'000)	(NT\$'000)
\$23,190,992	\$18,080,810	\$18,550,255

A. Property, plant and equipment for own-use

							Construction in progress
							and equipment awaiting
				Office		Other	inspection (including
	Land	Buildings	Machinery	Equipment	Vehicle	Equipment	prepaid equipment)	Total
	(NT\$'000)	(NT\$'000)	(NT\$'000)	(NT\$'000)	(NT\$'000)	(NT\$'000)	(NT\$'000)	(NT\$'000)
Cost:
As of 1/1/2021	\$2,979,392	\$8,639,244	\$26,982,667	\$259,713	\$20,043	\$7,684,122	\$2,597,912	\$49,163,093
Addition	-	-	1,658	20	-	93,887	8,785,732	8,881,297
Disposals	-	-	(333,028)	-	-	(88,093)	-	(421,121)
Effect of EX rate	-	(46,569)	(115,077)	(984)	(142)	(20,827)	(840)	(184,439)
Reclassification	3,132,634	1,412,217	2,060,556	9,339	525	268,810	(6,884,081)	-
As of 6/30/2021	\$6,112,026	\$10,004,892	\$28,596,776	\$268,088	\$20,426	\$7,937,899	\$4,498,723	\$57,438,830

As of 1/1/2020	\$2,979,392	\$8,703,739	\$25,976,638	\$241,294	\$17,922	\$7,348,928	\$1,745,970	\$47,013,883
Addition	-	-	842	70	40	91,412	694,212	786,576
Disposals	-	-	(132,638)	(6,267)	-	(136,569)	-	(275,474)
Effect of EX rate	-	(39,461)	(100,493)	(1,303)	(249)	(27,730)	(2,530)	(171,766)
Reclassification	-	10,223	765,507	8,001	414	173,538	(957,683)	-
As of 6/30/2020	\$2,979,392	\$8,674,501	\$26,509,856	\$241,795	\$18,127	\$7,449,579	\$1,479,969	\$47,353,219

Depreciation and impairment:
As of 1/1/2021	\$-	\$3,085,988	\$20,478,512	\$211,312	\$15,629	\$5,094,500	\$-	\$28,885,941
Depreciation	-	185,039	1,391,807	13,768	904	470,668	-	2,062,186
Impairment loss	-	5,900	207	-	-	-	-	6,107
Disposal	-	-	(325,867)	-	-	(88,093)	-	(413,960)
Effect of EX rate	-	(24,676)	(105,148)	(890)	(119)	(18,408)	-	(149,241)
Reclassification	-	-	(1)	-	-	1	-	-
As of 6/30/2021	\$-	\$3,252,251	\$21,439,510	\$224,190	\$16,414	\$5,458,668	\$-	\$30,391,033

			English Translation of Consolidated Financial Statements and Footnotes Originally Issued in Chinese
		Kinsus Interconnect Technology Corp.
			Notes to Consolidated Financial Statements (Continued)

As of 1/1/2020	\$-	\$2,757,524	\$18,364,210	\$190,436	\$14,447	\$4,427,400	\$-	\$25,754,017
Depreciation	-	186,795	1,462,305	15,174	733	477,706	-	2,142,713
Impairment loss	-	-	-	-	-	-	-	-
Disposal	-	-	(130,712)	(6,267)	-	(136,526)	-	(273,505)
Effect of EX rate	-	(17,441)	(88,085)	(1,256)	(227)	(24,085)	-	(131,094)
Reclassification	-	-	(2)	-	-	2	-	-
As of 6/30/2020	\$-	\$2,926,878	\$19,607,716	\$198,087	\$14,953	\$4,744,497	\$-	\$27,492,131

Net carrying amount:
As of 6/30/2021	\$6,112,026	\$6,752,641	\$7,157,266	\$43,898	\$4,012	\$2,479,231	\$4,498,723	\$27,047,797
As of 12/31/2020	\$2,979,392	\$5,553,256	\$6,504,155	\$48,401	\$4,414	\$2,589,622	\$2,597,912	\$20,277,152
As of 6/30/2020	\$2,979,392	\$5,747,623	\$6,902,140	\$43,708	\$3,174	\$2,705,082	\$1,479,969	\$19,861,088

B."Significant components"of buildings primarily comprised the main buildings and the facilities, which are depreciated based on their respective useful economic life of 20 to 25 years and 3 to 20 years.

C. Details of property, plant & equipment and prepayment for machinery is as follows:

	As of
	6/30/2021 12/31/2020 6/30/2020
	(NT\$'000)	(NT\$'000)	(NT\$'000)
Property, plant and equipment	\$23,190,992	\$18,080,810	\$18,550,255
Prepayment for acquiring
machinery	3,856,805	2,196,342	1,310,833
Total	\$27,047,797	\$20,277,152	\$19,861,088

D. Please refer to Note 8 for details on property, plant and equipment pledged as collaterals.
E. The Company purchased 40 parcels of land with a total area of 36,115.24 square meters. Lands are located at the addresses of No. 1113, 1114, 1438 to 1443,1479,1486 to 1487 at ShiLeiZi Sub-section, ShiLeiZi Section, No. 1044, 1047 to 1049 at QingHua Section, and No. 0001, 697 to 700 and 712 to 726 at RongHua Section, XinFeng Village. Due to regulatory restrictions, the agricultural land cannot be registered under the Company's name while it has been temporarily registered under the general manager's name and, to secure the Company's right to the land, mortgage registration has been set aside with the Company being the obligee.

(10)Intangible assets

	Computer software
	(NT\$'000)
Cost:
As of 1/1/2021	\$64,197
Additions – acquired separately	27,358
Derecognized upon retirement	(15,601)
Reclassification	-
Effect of exchange rate changes	(127)
As of 6/30/2021	\$75,827
As of 1/1/2020	\$82,532
Additions – acquired separately	9,984
Derecognized upon retirement	(39,441)
Reclassification	-
Effect of exchange rate changes	(235)
As of 6/30/2020	\$52,840
Amortization and Impairment:
As of 1/1/2021	\$32,092
Amortization	22,044
Derecognized upon retirement	(15,601)
Reclassification	-
Effect of exchange rate changes	(98)
As of 6/30/2021	\$38,437
As of 1/1/2020	\$51,779
Amortization	22,059
Derecognized upon retirement	(39,441)
Reclassification	-
Effect of exchange rate changes	(186)
As of 6/30/2020	\$34,211

Carrying amount, net:
As of 6/30/2021	\$37,390
As of 12/31/2020	\$32,105
As of 6/30/2020	\$18,629

	For the three-month period		For the six-month period
	ended June	30,	ended June 30,
	2021 2020		2021	2020
	(NT\$'000)	(NT\$'000)	(NT\$'000)	(NT\$'000)
Cost of goods sold	\$62	\$6	\$123	\$13
Selling	130	11	271	22
General and administrative	11,308	9,216	21,224	21,792
Research and development	224	145	426	232
Total	\$11,724	\$9,378	\$22,044	\$22,059

Amounts of amortization recognized for intangible assets are as follows:

(11)Other non-current assets

		As of
	6/30/2021	12/31/2020	6/30/2020
	(NT\$'000)	(NT\$'000)	(NT\$'000)
Refundable deposits	\$91,107	\$120,921	\$94,987

(12)Short-term loans

			As of
	Interest interval	6/30/2021	12/31/2020	6/30/2020
	(%)	(NT\$'000)	(NT\$'000)	(NT\$'000)
Unsecured bank loans	0.36%~1.25%	\$3,008,290	\$2,640,307	\$3,447,645

The Group's unused short-term lines of credits amount to NT\$5,209,312 thousand, NT\$5,614,413 thousand and NT\$4,590,042 thousand, as ofJune 30, 2021, December 31, 2020 and June 30, 2020, respectively.

(13)Other payable

	As of
	6/30/2021 12/31/2020 6/30/2020
	(NT\$'000)	(NT\$'000)	(NT\$'000)
Accrued expense	\$3,280,931	\$2,733,032	\$2,329,989
Dividends payable	450,847	-	451,039

Equipment payable	2,237,629	1,197,505	444,521
Accrued interest	2,567	2,672	3,303
Total	\$5,971,974	\$3,933,209	\$3,228,852

(14)Other current liabilities

		As of
	6/30/2021	12/31/2020	6/30/2020
	(NT\$'000)	(NT\$'000)	(NT\$'000)
Other current liabilities	\$113,713	\$104,488	\$75,231
Current portion of long-term loans	800,068	967,737	1,117,500
Deferred revenue	7,746	4,444	3,361
Total	\$921,527	\$1,076,669	\$1,196,092

(15)Refund liability

		As of
	6/30/2021	12/31/2020	6/30/2020
	(NT\$'000)	(NT\$'000)	(NT\$'000)
Refund liability	\$140,947	\$206,517	\$99,152

(16)Long-term loans

Details of long-term loans were as follows:

			Loan Balance
			As of 6/30/2021
Debtor	Type of Loan	Maturity	(NT\$'000)	Repayment
The Shanghai	Credit loan	2025.12.18-	\$1,384,531	Note 3, 8 and 13
Commercial &		2027.09.15
Savings Bank –
ZhongLi Branch
The Shanghai	Secured loan	2030.10.15	48,957	Note 12
Commercial &
Savings Bank –
ZhongLi Branch

Mega International	Credit loan	2021.09.05-	4,504,476	Note 1, 5, 10 and 11
Commercial Bank –		2036.06.28
LanYa Branch
Chang Hwa	Credit loan	2025.03.15-	548,111	Note 5 amd 7
Commercial Bank –		2028.09.15
Beitou Branch
Standard Chartered	Credit loan	2021.09.28	150,000	Note 4
Bank –Xinwu Branch
The Bank of Taiwan –	Credit loan	2026.11.04-	1,533,363	Note 6 and 9
Beitou Branch		2027.09.30
Total			8,169,438
Less: current portion			(800,068)
Non-current portion			\$7,369,370

			Loan Balance

			As of 12/31/2020
Debtor	Type of Loan	Maturity	(NT\$'000)	Repayment
Mega International	Credit loan	2021.09.05-	\$584,975	Note 1 and 5
Commercial Bank –		2026.12.31
LanYa Branch
The Shanghai	Credit loan	2021.04.23-	1,617,293	Note 2, 3 and 8
Commercial &		2027.09.15
Savings Bank –
ZhongLi Branch
The Shanghai	Secured loan	2020.11.10-	9,786	Note 12
Commercial &		2030.10.15
Savings Bank –
ZhongLi Branch
Standard Chartered	Credit loan	2021.09.28	300,000	Note 4
Bank – Xinwu
Branch
Chang Hwa	Credit loan	2025.03.15-	152,815	Note 5 and 7
Commercial Bank –		2027.08.15
BeiTou Branch
The Bank of Taiwan –	Credit loan	2026.11.04-	944,679	Note 6
BeiTou Branch		2027.09.30
Total			3,609,548

English Translation of Consolidated Financial Statements and Footnotes Originally Issued in Chinese Kinsus Interconnect Technology Corp.

Notes to Consolidated Financial Statements (Continued)

Less: current portion			(967,737)
Non-current portion			\$2,641,811

			Loan Balance
			As of 6/30/2020
Debtor	Type of Loan	Maturity	(NT\$'000)	Repayment
Mega International	Credit loan	2021.09.05-	\$793,647	Note 1 and 5
Commercial Bank –		2026.12.31
LanYa Branch
The Shanghai	Credit loan	2021.04.23-	960,035	Note 2 and 3
Commercial &		2027.03.15
Savings Bank –
ZhongLi Branch
Standard Chartered	Credit loan	2021.09.28	450,000	Note 4
Bank – Xinwu
Branch
Chang Hwa	Credit loan	2025.03.15	4,907	Note 7
Commercial Bank –
Beitou Branch
The Bank of Taiwan –	Credit loan	2026.11.04-	667,792	Note 6
Peitou Branch		2026.12.31
Total			2,876,381
Less: current portion			(1,117,500)
Non-current portion			\$1,758,881

Note 1: A term is defined as every 3 months starting from the initial draw-down date. Loan period is 5 years. Grace period is 1 year (4 terms). Interest shall be paid monthly with principal repaid every 3 months. The rest is repayable in installments of equal amount for 16 terms.
Note 2: A term is defined as every 3 months starting from the initial draw-down date. Grace period is 1 years (4 terms). The rest is repayable in installments of equal amount for 8 terms.
Note 3: A term is defined as every month starting from the initial draw-down date. The principal and interest are repayable in installments of equal amount for 84 terms.
Note 4: Grace period is 18 months from the initial draw-down date. 18 months after the initial draw-down date is considered the 1st term and the following terms are defined as every 6 months since then. The principal and interest are repayable in installments of equal amount for 4 terms.
Note 5: Grace period is 3 years from the initial draw-down date. A term is defined as every month since the forth year. The principal and interest are repayable in installments of equal amount for 48 terms.
Note 6: Grace period is 2 years from the initial draw-down date. A term is defined as every month since the third year. The principal and interest are repayable in installments of equal amount for 60 terms.
Note 7: A term is defined as every month starting from the initial draw-down date. Grace period is 3 years (36 terms). The rest is repayable in installments of equal amount for 24 terms.
Note 8: A term is defined as every 3 months starting from the initial draw-down date. The principal and interest are repayable in installments of equal amount for 16 terms.
Note 9: A term is defined as every month starting from the initial draw-down date. Grace period is 11 months. Interest shall be paid monthly with principal repaid every month. The rest is repayable in installments of equal amount for 60 terms.
Note 10: A term is defined as every month starting from the initial draw-down date. Grace period is 21 months. Interest shall be paid monthly with principal repaid every month. The rest is repayable in installments of equal amount for 48 terms.
Note 11: A term is defined as every month starting from the initial draw-down date. Grace period is 22 months. Interest shall be paid monthly with principal repaid every month. The rest is repayable in installments of equal amount for 48 terms.
Note 12: A term is defined as every month starting from the initial draw-down date. Grace period is 2 years (24 terms). The rest is repayable in installments of equal amount for 96 terms.
Note 13: A term is defined as every month starting from the initial draw-down date. Grace period is 3 years. Interest shall be paid monthly with principal repaid every 3 months. The rest is repayable in installments of equal amount for 48 terms.
A. Please refer to Note 8 for details on assets pledged as collaterals.
B. As of June 30, 2021, December 31, 2020 and June 30, 2020, the interest rate intervals for long-term loans were 0.4%~1.135%, 0.4%~1.236% and 0.4%~0.983%, respectively.

The Group obtained from the Ministry of Economy a low-interest government loan amounting NT\$3,771,000 thousands with a term of 5~7 years and annual interest rates of 0.3~0.9% and monthly interest payment on the 15th of each month. The loan was recorded under the caption of other liabilities-deferred government grants income. The Group shall recognize the government grant income when it is reasonably assured that the Group satisfy all the terms of the government grant agreement.

(17)Other non-current liabilities
(a) Details of other non-current liabilities were as follows:

		As of
	6/30/2021	12/31/2020	6/30/2020
	(NT\$'000)	(NT\$'000)	(NT\$'000)
Net defined benefit liability	\$28,180	\$30,366	\$23,676
Deposits received	91,009	73,235	70,089
Deferred revenue	41,526	26,068	18,301
Total	\$160,715	\$129,669	\$112,066

(b) The details of the deferred government grants income for the six-month period ended June 30, 2021 and 2020 are as follows:

	For the six-month ended	For the six-month ended
	June 30,2021	June 30,2020
	(NT\$'000)	(NT\$'000)
Beginning balance	\$30,512	\$-
Received during the period	22,506	23,055
Released to the statement of
comprehensive income	(3,746)	(1,393)
Ending Balance	\$49,272	\$21,662

Current	\$7,746	\$3,361
Non-current	\$41,526	\$18,301

(18)Post-employment benefits

Defined contribution plan

Expenses under the defined contribution plan for the three-month periods ended June 30, 2021 and 2020 were NT\$43,647 thousand and NT\$36,402 thousand, respectively, while for the six-month periods ended June 30, 2021 and 2020 were NT\$87,618 thousand and NT\$72,511 thousand, respectively.

Defined benefits plan

Expenses under the defined benefits plan for the three-month periods ended June 30, 2021 and 2020 were NT\$36 thousand and NT\$58 thousand, respectively, while for the six-month periods ended June 30, 2021 and 2020 were NT\$71 thousand and NT\$123 thousand, respectively.

(19)Equity

A. Common shares

As of June 30, 2021, December 31, 2020 and June 30, 2020, the Company's authorized capital was NT\$6,000,000 thousand, each share at par value of NT\$10, divided into 600,000 thousand shares. As of June 30, 2021, December 31, 2020 and June 30, 2020, the Company's paid-in capital were NT\$ 4,508,441 thousand, NT4,508,625 thousand and NT\$4,509,152 thousand, respectively, divided into 450,844 thousand shares, 450,863 thousand shares and 450,915 thousand shares, respectively. Each share represents a voting right and a right to receive dividends.

On January 29, 2018 and May 29, 2018, the Company's board of directors and shareholders' meetings resolved to increase the capital through an issuance of new 5,500,000 shares of restricted stock for employees. The application has been governmentally approved by FSC in the Order No. Financial-Supervisory-Securities-Corporate-1070324628 issued on July 10, 2018. The measurement date was at August 28, 2018, and issued 4,841,000 shares of restricted stock for employees.

In addition, on February 18, 2019, the board of directors resolved to issue 659,000 shares of restricted stock. The measurement date was at March 18, 2019 and issued 598,500 shares of restricted stock.

On February 18, 2019, the board of directors resolved to cancel restricted stock, and the amount of the capital reduction is NT\$786 thousand. The measurement date was at March 17, 2019.

On April 29, 2019, the board of directors resolved to cancel restricted stock, and the amount of the capital reduction is NT\$600 thousand. The measurement date was at May 2, 2019.

On July 29, 2019, the board of directors resolved to cancel restricted stock, and the amount of the capital reduction is NT\$1,395 thousand. The measurement date was at August 1, 2019.

On October 28, 2019, the board of directors resolved to cancel restricted stock, and the amount of the capital reduction is NT\$876 thousand. The measurement date was at October 30, 2019.

On February 10, 2020, the board of directors resolved to cancel restricted stock, and the amount of the capital reduction is NT\$348 thousand. The measurement date was at February 12, 2020.

On April 27, 2020, the board of directors resolved to cancel restricted stock, and the amount of the capital reduction is NT\$1,238 thousand. The measurement date was at April 29, 2020.

On July 27, 2020, the board of directors resolved to cancel restricted stock, and the amount of the capital reduction is NT\$399 thousand. The measurement date was at July 29, 2020.

On October 26, 2020, the board of directors resolved to cancel restricted stock, and the amount of the capital reduction is NT\$128 thousand. The measurement date was at October 28, 2020.

On January 29, 2021, the board of directors resolved to cancel restricted stock, and the amount of the capital reduction is NT\$151 thousand. The measurement date was at February 1, 2021.

On April 26, 2021, the board of directors resolved to cancel restricted stock, and the amount of the capital reduction is NT\$33 thousand. The measurement date was at April 28, 2021.

B. Capital surplus

		As of
	6/30/2021 (NT\$'000)	12/31/2020 (NT\$'000)	6/30/2020 (NT\$'000)
Additional paid-in capital	\$6,036,311	\$6,011,409	\$5,986,011
Differences between purchase price and carrying amount arising from
acquisition or disposal of subsidiaries	50,925	50,925	50,925
All changes in interests in subsidiaries	529,959	529,959	529,959
Change in joint ventures accounted for
using equity method	7,484	7,484	7,484
Shared-Based Payment	8,371	8,371	8,371
Restricted stocks for employees	-	23,882	49,199
Total	\$6,633,050	\$6,632,030	\$6,631,949

According to the Taiwan Company Act, the capital surplus shall not be used except for making good the deficit of the Company. When a company incurs no loss, it may distribute the capital surplus related to the income derived from the issuance of new shares at a premium or income from endowments received by the company up to a certain percentage of paid-in capital. The said capital surplus could be distributed in cash to its shareholders in proportion to the number of shares being held by each of them. Capital surplus related to long-term equity investments cannot be used for any purpose.

C. Treasury stock

Treasury stock amounted to NT\$0, NT\$143 thousand and NT\$347 thousand, respectively, divided into 0 share, 14 thousand shares and 35 thousand shares, respectively, as of June 30, 2021, December 31, 2020 and June 30, 2020.

	Beginning			Ending
Purpose of repurchase	balance	Addition	Decrease	balance
For the six-month period ended June 30, 2021
Recover failed restricted stocks	14	4	18	0

For the six-month period ended June 30, 2020
Recover failed restricted stocks	33	160	158	35

According to the Securities and Exchange Law of the R.O.C., total treasury stock shall not exceed 10% of the Company's issued stock, and the total purchase amount shall not exceed the sum of the retained earnings, additional paid-in capital-premiums and realized additional paid-in capital. As such, the ceiling number of shares of treasury stock that the Company could hold as of June 30, 2021 were 45,084 thousand shares, with the maximum payments of NT\$21,228,533 thousand.

In compliance with Securities and Exchange Law of the R.O.C., treasury stock should not be pledged, nor should it be entitled to voting rights or receiving dividends.

D. Appropriation of earnings and dividend policies

(a)Earning distribution

According to the Company's Articles of Incorporation revised by the shareholders' meetings on May 28, 2020, current year's earnings, if any, shall be distributed in the following order:

a. Payment of all taxes and dues;
b. Offset prior years' operation losses;
c. Set aside 10% of the remaining amount as legal reserve.
d. Set aside or reverse special reserve in accordance with law and regulations; and
e. The distribution of the remaining portion, if any, will be recommended by the Board of Directors and resolved in the shareholders' meeting.

If the above-mentioned dividends are distributed to shareholders in the form of cash, the Board of Directors have been authorized to approve 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, and report to the shareholder's meeting.

(b)Dividend policies

The Company is in an industry with versatile environment. For long-term finance planning requirements and to meet the shareholders' demand for cash, the Company's dividend policy aims for steadiness and balancing. Shareholder extra dividend each year cannot be less than 10% of distributed surplus earnings and cash dividends distributed each year cannot be less than 10% of the gross amount of dividends.

(c)Legal reserve

According to the Company Act, legal reserve shall be set aside until such amount equal total authorized capital. Legal reserve can be used to offset deficits. If the Company does not incur any loss, the portion of legal reserve exceeding 25% of the paid-in capital may be distributed to shareholders by issuing new shares or by cash in proportion to the number of shares held by each shareholder.

(d)Special reserve

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.

The FSC issued Order No. Financial-Supervisory-Securities-Corporate-1090150022 on March 31, 2021, 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 proportion and transfer to retained earnings.

The Company did not incur any special reserve upon the first-time adoption of T-IFRS.

(e)The shareholders' meeting of the Company in 2021 was postponed due to the impact of the Covid-19 pandemic. The distribution of earnings reached the statutory approval threshold through electronic voting by June 30, 2021. The appropriations of earnings for the Years 2020 and 2019 were approved through the shareholders' meetings held on July 12, 2021 and May 28, 2020, respectively. The details of the distributions are as follows:

		Appropriation of earnings	(in NT\$)	Dividend per share
	2020 (NT\$'000)	2019 (NT\$'000)	2020	2019
Legal reserve	\$53,316	\$-
Special reserve	(2,389)	83,021
Cash dividend (Note)	450,847	451,039	\$1.00	\$1.00
Total	\$501,774	\$534,060

Note: As stipulated in the Articles of Incorporation, a special resolution was passed at a Board of Directors meeting held on January 29, 2021 to distribute the 2020 common stock dividend in cash.

Please refer to Note 6(24) for details on employees' compensation and remuneration to directors and supervisors.

E. Non-controlling interests

	For the six-month period ended June 30,
	2021	2020
	(NT\$'000)	(NT\$'000)
Beginning balance	\$3,519,907	\$3,270,679
Net income attributable to NCIs	274,323	101,132
Other comprehensive income attributable to NCIs:
Exchange differences arising on translation of
foreign operations	(10,498)	(5,997)
Non-controlling interests increase/(decrease)	(243,831)	(121,916)
Ending balance	\$3,539,901	\$3,243,898

(20)Share-based payment plans

Restricted stocks plan for employees

A.On May 29, 2018, the shareholders' meetings resolved to issue of 5,500 thousand shares of restricted stocks for employees. The grantee is limited to employees who meet certain conditions. The restricted stocks have been approved by the Securities and Futures Bureau. On July 30, 2018, the board of directors resolved to issue 4,947 thousand shares. The measurement date was at August 28, 2018 and total shares issued were 4,841 thousand. The unit market price as of the granted date was NT\$49.1.

On February 18, 2019, the board of directors resolved to issue 659 thousand shares. The measurement date was at March 18, 2019, while total shares issued 599 thousand shares. The unit market price as of the granted date was NT\$43.45.

The employees who acquire the above shares can subscribe shares at the price of NT\$10 per shares while the vesting conditions are as below.

	Proportion of
Vesting conditions	vested shares
Within one month starting	20%
the granted date
April 25, 2019	20%
September 25, 2019	15%
April 25, 2020	15%
September 25, 2020	15%
April 25, 2021	15%

Restriction on employee's right after granted but before vested:

(a)The granted employee commit to the custodian institution, and shall not sell, pledge, transfer, donate, or dispose in any other ways, the right of restricted stocks before achieving the vesting conditions.
(b)After new shares of restricted stock are issued, the granted employee should immediately commit to the custodian institution, and not to ask the trustee to return

the restricted stock in any other reasons or ways before achieving the vesting conditions.

(c)The restricted stock for employees can participate in receiving dividends during the vesting period.
(d)The right to vote and elect in a shareholders' meeting shall be executed by custodian institution in accordance with related regulations.

On August 28, 2018, the issuance of 4,841 thousand restricted shares for employees resulted in the increase of capital reserve-employee stock option amounting to NT\$184,530 thousand. The restricted stocks plan was invalidated as of June 30, 2021 and 544 thousand shares were recalled. As a result, capital reserve increased by NT\$5,442 thousand and the unearned employee compensation was NT\$0.

On March 18, 2019, the issuance of 599 thousand restricted shares for employees resulted in the increase of capital reserve-employee stock option amounting to NT\$19,396 thousand. The restricted stocks plan was invalidated as of June 30, 2021 and 51 thousand shares were recalled. As a result, capital reserve increased by NT\$513 thousand and the unearned employee compensation was NT\$0.

B. The expense recognized for employee services received is shown in the following table.

	For the six-month period ended June 30,
	2021 2020
	(NT\$'000)	(NT\$'000)
Total expense arising from
equity-settled share-based
payment transactions	\$3,836	\$12,250

C. The Company did not modify the share-based payment plan for the six-month period ended June 30, 2021 and 2020.

(21)Sales

For the three-month		For the six-month
	30,	period	ended June 30,
		2021	2020
(NT\$'000)	(NT\$'000)	(NT\$'000)	(NT\$'000)

\$8,620,142	\$6,688,111	\$15,753,766	\$12,521,766
105,213	98,074	197,575	156,752
\$8,725,355	\$6,786,185	\$15,951,341	\$12,678,518
	2021	period ended June 2020

Analysis of revenue from contracts with customers during the six-month periods ended June 30, 2021 and 2020 are as follows:

A. Disaggregation of revenue

	For the three-month period ended June 30, 2021
	IC Substrate	PCB	Optics	Total
	(NT\$'000)	(NT\$'000)	(NT\$'000)	(NT\$'000)
Sales of goods	\$6,620,140	\$618,656	\$1,381,346	\$8,620,142
Other	105,213	-	-	105,213
Total	\$6,725,353	\$618,656	\$1,381,346	\$8,725,355

The timing for revenue recognition:
At a point in time	\$6,725,353	\$618,656	\$1,381,346	\$8,725,355

		For the six-month	period ended June 30,	2021
	IC Substrate	PCB	Optics	Total
	(NT\$'000)	(NT\$'000)	(NT\$'000)	(NT\$'000)
Sales of goods	\$12,047,231	\$1,179,393	\$2,527,142	\$15,753,766
Other	197,575	-	-	197,575
Total	\$12,244,806	\$1,179,393	\$2,527,142	\$15,951,341

The timing for revenue recognition:
At a point in time	\$12,244,806	\$1,179,393	\$2,527,142	\$15,951,341

			For the three-month	period ended June 30, 2020
	IC Substrate		PCB	Optics	Total
	(NT\$'000)		(NT\$'000)	(NT\$'000)	(NT\$'000)
Sales of goods	\$5,258,597		\$594,127	\$835,387	\$6,688,111
Other		98,074	-	-	98,074
Total	\$5,356,671		\$594,127	\$835,387	\$6,786,185
The timing for revenue recognition:
At a point in time	\$5,356,671		\$594,127	\$835,387	\$6,786,185
			For the six-month	period ended June 30,	2020
	IC Substrate		PCB	Optics	Total
	(NT\$'000)		(NT\$'000)	(NT\$'000)	(NT\$'000)
Sales of goods	\$10,046,557		\$918,376	\$1,556,833	\$12,521,766
Other	156,752		-	-	156,752
Total	\$10,203,309		\$918,376	\$1,556,833	\$12,678,518
The timing for revenue recognition:
At a point in time	\$10,203,309		\$918,376	\$1,556,833	\$12,678,518

B. Contract balances
(a)Contract liabilities
				As of
			6/30/2021	12/31/2020	6/30/2020
			(NT\$'000)	(NT\$'000)	(NT\$'000)
Sales of goods			\$207,442	\$146,450	\$160,504
Customer loyalty programs			12,295	15,281	14,937
Total			\$219,737	\$161,731	\$175,441

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

		Customer loyalty
	Sales of goods	programs
The opening balance transferred to revenue	\$(79,540)	\$(15,281)
Increase in receipts in advance during the	140,532	12,295
period (excluding the amount incurred and
transferred to revenue during the period)

The significant changes in the Group's balances of contract liabilities for the six-month periods ended June 30, 2020 are as follows:

		Customer loyalty
	Sales of goods	programs
The opening balance transferred to revenue	\$(56,759)	\$(14,848)
Increase in receipts in advance during the	159,484	14,937
period (excluding the amount incurred and
transferred to revenue during the period)

(22)Expected credit losses (gains)

	For the three-month		For the six-month
	period ended June 30,		period ended June 30,
	2021	2020	2021	2020
	(NT\$'000)	(NT\$'000)	(NT\$'000)	(NT\$'000)
Operating expenses – Expected
credit losses (gains)
Account receivables	\$308	\$(1,749)	\$11,730	\$(2,146)

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

The Group measures the loss allowance of its contract assets and trade receivables (including note receivables and trade receivables) at an amount equal to lifetime expected credit losses. The assessment of the Group's loss allowance are as follow:

A. The Group condsiders the grouping of trade receivables by counterparties' credit rating, by geographical region and by industry sector and its loss allowance is measured by using a provision matrix. Details are as follow.

As of June 30, 2021,

Group 1	Not past due			Past due
	(Note)	<=30 days	31-60 days	61-90 days	91-120 days	>=121 days	Total
	(NT\$'000)	(NT\$'000)	(NT\$'000)	(NT\$'000)	(NT\$'000)	(NT\$'000)	(NT\$'000)
Gross carrying amount	\$4,818,514	\$150,505	\$-	\$-	\$-	\$21,149	\$4,990,168
Loss ratio	0.07%	5%	15%	30%	50%	75%
Lifetime expected credit losses	(3,134)	(7,525)	-	-	-	(15,862)	(26,521)
Subtotal	4,815,380	142,980	-	-	-	5,287	4,963,647
Group 2	Not past due			Past due
	(Note)	<=30 days	31-60 days	61-90 days	91-120 days	>=121 days	Total
	(NT\$'000)	(NT\$'000)	(NT\$'000)	(NT\$'000)	(NT\$'000)	(NT\$'000)	(NT\$'000)
Gross carrying amount	\$551,769	\$4,416	\$-	\$-	\$-	\$-	\$556,185
Loss ratio	0.94%	1%	0%	0%	0%	0%
Lifetime expected credit losses	(5,172)	(44)	-	-	-	-	(5,216)
Subtotal	546,597	4,372	-	-	-	-	550,969
Carrying amount of trade
receivables	\$5,361,977	\$147,352	\$-	\$-	\$-	\$5,287	\$5,514,616
As of December 31, 2020,
Group 1	Not past due			Past due
	(Note)	<=30 days	31-60 days	61-90 days	91-120 days	>=121 days	Total
	(NT\$'000)	(NT\$'000)	(NT\$'000)	(NT\$'000)	(NT\$'000)	(NT\$'000)	(NT\$'000)
Gross carrying amount	\$3,656,542	\$162,200	\$7,759	\$16,081	\$-	\$-	\$3,842,582
Loss ratio	-%	5%	15%	30%	50%	75%

Not past due	Past due
(Note)	<=30 days	31-60 days	61-90 days	91-120 days	>=121 days	Total
(NT\$'000)	(NT\$'000)	(NT\$'000)	(NT\$'000)	(NT\$'000)	(NT\$'000)	(NT\$'000)
\$570,762	\$9,870	\$-	\$-	\$-	\$-	\$580,632
1.02%	1%	0%	0%	0%	0%
(5,818)	(99)	-	-	-	-	(5,917)
564,944	9,771	-	-	-	-	574,715

\$4,221,486	\$163,861	\$6,595	\$11,257	\$-	\$-	\$4,403,199

As of June 30, 2020,

Group 1	Not past due	Past due
	(Note)	<=30 days	31-60 days	61-90 days	91-120 days	>=121 days	Total
	(NT\$'000)	(NT\$'000)	(NT\$'000)	(NT\$'000)	(NT\$'000)	(NT\$'000)	(NT\$'000)
Gross carrying amount	\$3,598,936	\$380,231	\$12,318	\$-	\$-	\$-	\$3,991,485
Loss ratio	0.01%	5%	15%	30%	50%	75%
Lifetime expected credit losses	(619)	(19,012)	(1,847)	-	-	-	(21,478)
Subtotal	3,598,317	361,219	10,471	-	-	-	3,970,007

Group 2	Not past due	Past due
	(Note)	<=30 days	31-60 days	61-90 days	91-120 days	>=121 days	Total
	(NT\$'000)	(NT\$'000)	(NT\$'000)	(NT\$'000)	(NT\$'000)	(NT\$'000)	(NT\$'000)
Gross carrying amount	\$250,400	\$-	\$-	\$1,743	\$-	\$-	\$252,143
Loss ratio	0.65%	-%	-%	50%	-%	-%
Lifetime expected credit losses	(1,638)	-	-	(872)	-	-	(2,510)
Subtotal	248,762	-	-	871	-	-	249,633
Carrying amount of trade
receivables	\$3,847,079	\$361,219	\$10,471	\$871	\$-	\$-	\$4,219,640

Note: all the Group's note receivables were not past due.

B. The movement in the provision for impairment of note receivables and accounts receivable during the six-month periods ended June 30, 2021 and 2020 is as follows:

	Note receivables	Account receivables
	(NT\$'000)	(NT\$'000)
Beginning balance as of January 1, 2021	\$-	\$20,015
Addition/(reversal) for the current period	-	11,730
Effect of exchange rate	-	(8)
Ending balance as of June 30, 2021	\$-	\$31,737

	Note receivables	Account receivables
	(NT\$'000)	(NT\$'000)
Beginning balance as of January 1, 2020	\$-	\$26,144
Addition/(reversal) for the current period	-	(2,146)
Effect of exchange rate	-	(10)
Ending balance as of June 30, 2020	\$-	\$23,988

(23)Leases

A. Group as a lessee

The Group leases various property (land and buildings), machinery and equipment, transportation equipment. These leases have terms of between 1 and 50 years. The Group may not allow to privately lend, sublease, sell, use by others in other disguised form, or transfer the lease to another person.

The effect that leases have on the financial position, financial performance and cash flows of the Group are as follow:

(a) Amounts recognized in the balance sheet

a. Right-of-use asset

The carrying amount of right-of-use asset

			Machinery	Transportation
	Land	Buildings	and equipment	equipment	Total
	(NT\$'000)	(NT\$'000)	(NT\$'000)	(NT\$'000)	(NT\$'000)
Cost:
As of 1/1/2021	\$277,004	\$164,586	\$17,793	\$2,490	\$461,873
Addition	-	124,319	-	-	124,319
Disposals	-	(143,139)	-	(2,490)	(145,629)
Reclassification	-	-	-	-	-
Effect of EX rate	(4,987)	(406)	-	-	(5,393)
As of 6/30/2021	\$272,017	\$145,360	\$17,793	\$-	\$435,170

As of 1/1/2020	\$285,201	\$276,415	\$17,793	\$2,490	\$581,899
Addition	-	30,816	-	-	30,816
Disposals	-	(7,247)	-	-	(7,247)
Reclassification	-	-	-	-	-
Effect of EX rate	(4,792)	(417)	-	-	(5,209)
As of 6/30/2020	\$280,409	\$299,567	\$17,793	\$2,490	\$600,259

Depreciation and impairment:
As of 1/1/2021	\$72,006	\$62,519	\$13,776	\$1,840	\$150,141
Depreciation	2,793	21,492	3,444	53	27,782
Disposal	-	(56,578)	-	(1,893)	(58,471)
Reclassification	-	-	-	-	-
Effect of EX rate	(1,345)	(253)	-	-	(1,598)
As of 6/30/2021	\$73,454	\$27,180	\$17,220	\$-	\$117,854
As of 1/1/2020	\$68,656	\$123,449	\$6,888	\$815	\$199,808

Depreciation	3,460	66,893	3,444	513	74,310

Disposal	-	(4,083)	-	-	(4,083)
Reclassification	-	-	-	-	-
Effect of EX rate	(1,166)	(89)	-	-	(1,255)
As of 6/30/2020	\$70,950	\$186,170	\$10,332	\$1,328	\$268,780

Net carrying amount:
As of 6/30/2021	\$198,563	\$118,180	\$573	\$-	\$317,316
As of 12/31/2020	\$204,998	\$102,067	\$4,017	\$650	\$311,732
As of 6/30/2020	\$209,459	\$113,397	\$7,461	\$1,162	\$331,479

b. Lease liability

	As of
	6/30/2021	12/31/2020	6/30/2020
	(NT\$'000)	(NT\$'000)	(NT\$'000)
Lease liability	\$118,899	\$106,246	\$123,910

Current	\$43,279	\$41,846	\$66,810
Non-current	75,620	64,400	57,100
Total	\$118,899	\$106,246	\$123,910

Please refer to Note 6(25) (D) for the interest on lease liability recognized for the three-month and six-month period ended June 30, 2021 and 2020, and refer to Note 12(5) for the maturity analysis for lease liabilities as at June 30, 2021, December 31, 2020 and June 30, 2020.

(b) Income and costs relating to leasing activities

	For the three-month		For the six-month
	period ended June	30,	period ended June 30,
	2021	2020	2021	2020
	(NT\$'000)	(NT\$'000)	(NT\$'000)	(NT\$'000)
The expense relating to short
term leases (rent expenses)	\$(35,687)	\$(6,024)	\$(71,456)	\$(11,773)
The expense relating to leases
of low-value assets (Not
including the expense
relating to short-term leases
of low-value assets)	(599)	(3,748)	(1,328)	(9,694)
Income from subleasing right
of-use assets	-	135	212	442

As of June 30, 2021, December 31, 2020, and June 30, 2020, the portfolio of short-term leases of the Group to which it is committed at the end of the reporting period is dissimilar to the portfolio of short-term leases to which the short-term lease expense disclosed above and the amount of its lease commitments is NT\$0.

For the three-month periods ended June 30, 2021 and 2020, the Group recognized NT\$14 thousand and NT\$2,926 thousand as income to account the rent concession arising as a direct consequence of the covid-19 pandemic as a variable lease payment; For the six-month periods ended June 30, 2021 and 2020, the Group recognized NT\$14 thousand and NT\$3,334 thousand as income to account the rent concession arising as a direct consequence of the covid-19 pandemic as a variable lease payment.

During the six-month period ended June 30, 2021 and 2020, the Group's total cash outflow for leases amounting to NT\$97,037 thousand and NT\$97,862 thousand, respectively.

B. Group as a lessor

The Group has entered leases on plants. These leases have terms of between one and three years. These leases are classified as operating leases as they do not transfer substantially all the risks and rewards incidental to ownership of underlying assets.

		For the three-month	For the six-month
	period ended June	30,	period ended June 30,
	2021 2020		2021	2020
	(NT\$'000)	(NT\$'000)	(NT\$'000)	(NT\$'000)
Lease income for operating leases
Income relating to fixed lease
payments	\$421	\$11,968	\$6,518	\$24,525

For operating leases entered by the Group, the undiscounted lease payments to be received and a total of the amounts for the remaining years as of June 30, 2021, December 31, 2020 and June 30, 2020 are as follow:

	As of
6/30/2021	12/31/2020	6/30/2020
(NT\$'000)	(NT\$'000)	(NT\$'000)
\$1,136	\$42,602	\$42,824
-	35,316	56,505
\$1,136	\$77,918	\$99,329

(24)Summary statement of employee benefits, depreciation and amortization by function is as follows:

		For the three-month period			For the three-month period
Function		ended June 30, 2021			ended June 30, 2020
	(NT\$'000)				(NT\$'000)
Nature	Cost of	Operating		Cost of	Operating
	goods sold	expense	Total	goods sold	expense	Total
Employee benefit
Salaries & wages	\$1,288,233	\$380,821	\$1,669,054	\$1,033,051	\$269,277	\$1,302,328
Labor and health insurance	89,268	19,564	108,832	70,602	18,079	88,681
Pension	32,935	10,748	43,683	27,034	9,426	36,460

Other employee benefit	54,104	15,301	69,405	50,668	10,674	61,342
Depreciation	971,187	80,764	1,051,951	1,019,658	81,198	1,100,856
Amortization	62	11,662	11,724	6	9,372	9,378

	For the six-month period			For the six-month period
Function		ended June 30, 2021			ended June 30, 2020
		(NT\$'000)			(NT\$'000)
Nature	Cost of	Operating		Cost of	Operating
	goods sold	expenses	Total	goods sold	expenses	Total
Employee benefit
Salaries & wages	\$2,457,368	\$681,987	\$3,139,355	\$1,961,099	\$503,632	\$2,464,731
Labor and health insurance	179,541	39,244	218,785	139,646	36,178	175,824
Pension	66,143	21,546	87,689	53,453	19,181	72,634
Other employee benefit	108,309	30,282	138,591	96,670	22,472	119,142
Depreciation	1,929,643	160,325	2,089,968	2,053,949	163,074	2,217,023
Amortization	123	21,921	22,044	13	22,046	22,059

According to the resolution, not lower than 10% 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 and supervisors. However, the Company's accumulated losses shall have been covered.

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, 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 and supervisors can be obtained from the "Market Observation Post System" on the website of the TWSE.

Based on profit of the six-month period ended June 30, 2021, the Company estimated the amounts of the employees' compensation and remuneration to directors and supervisors for the six-month period ended June 30, 2021 to be not lower than 10% and not higher than 1% of profit of the current six-month period, respectively, recognized as employee benefits expense. As such, employees' compensation and remuneration to directors and supervisors for the three-month period ended June 30, 2021 amounted to NT\$124,014 thousand and NT\$7,549 thousand, respectively, and, for the six-month period ended June 30, 2021,

NT\$161,719 thousand and NT\$9,844 thousand, respectively. The employees' compensation and remuneration to directors and supervisors were recognized as salaries.

Based on profit of the six-month period ended June 30, 2020, the Company estimated the amounts of the employees' compensation and remuneration to directors and supervisors for the six-month period ended June 30, 2020 to be not lower than 10% and not higher than 1% of profit of the current six-month period, respectively, recognized as employee benefits expense. As such, employees' compensation and remuneration to directors and supervisors for the three-month period ended June 30, 2020 amounted to NT\$30,374 thousand and NT\$1,849 thousand, respectively, and, for the six-month period ended June 30, 2020, NT\$40,580 thousand and NT\$2,470 thousand, respectively. The employees' compensation and remuneration to directors and supervisors were recognized as salaries.

The Company's Board of Directors' meeting has determined the employees' compensation and directors' remuneration, all in cash, to be NT\$70,857 thousand and NT\$4,313 thousand, respectively, in a meeting held on January 29, 2021. No material differences exist between the estimated amount and the actual distribution of the employee compensation and remuneration to directors and supervisors for the year ended December 31, 2020.

For the year ended December 31, 2019, the Company incurred accumulated loss and therefore did not to accrue the employees' compensation and remuneration to directors and supervisors.

(25)Non-operating incomes and expenses

A. Interest incomes

	For the	three-month	For the six-month
	period ended June 30,		period ended June 30,
	2021 2020		2021	2020
	(NT\$'000)	(NT\$'000)	(NT\$'000)	(NT\$'000)
Interest income
Financial assets measured at
amortized cost	\$8,605	\$10,693	\$17,878	\$24,321

B. Other incomes

	For the	three-month	For the six-month
	period ended June 30,		period ended June 30,
	2021 2020		2021	2020
	(NT\$'000)	(NT\$'000)	(NT\$'000)	(NT\$'000)
Government grants	\$2,216	\$808	\$3,746	\$1,393
Other income others –	19,124	29,224	36,624	93,389
Total	\$21,340	\$30,032	\$40,370	\$94,782

C. Other gains and losses

	For the three-month		For the six-month
	period ended June 30,		period ended June 30,
	2021 2020		2021	2020
	(NT\$'000)	(NT\$'000)	(NT\$'000)	(NT\$'000)
Gain (losses) from disposal of
property, plant and equipment	\$6,888	\$640	\$8,510	\$(1,271)
Foreign exchange gain (loss), net	(28,398)	(16,598)	(23,873)	(1,493)
Gains on lease modification	276	-	684	55
Net gain of financial assets at fair
value through profit	396	1,519	1,317	3,129
Impairment losses – Property, plant
and equipment	(6,107)	-	(6,107)	-
Other losses	(3,234)	(696)	(6,783)	(3,081)
Total	\$(30,179)	\$(15,135)	\$(26,252)	\$(2,661)

D. Finance costs

		For the three-month	For the six-month
	period ended June 30,		period ended June 30,
	2021 2020		2021	2020
	(NT\$'000)	(NT\$'000)	(NT\$'000)	(NT\$'000)
Interest on bank loans	\$15,919	\$19,605	\$30,806	\$47,498
Interests on lease liabilities	292	427	578	934
Total	\$16,211	\$20,032	\$31,384	\$48,432

(26)Components of other comprehensive income (OCI)

For the three-month period ended June 30, 2021

				Income tax
	Arising during	Reclassification		benefit	OCI,
	the period	during the period	Subtotal	(expense)	Net of tax
	(NT\$'000)	(NT\$'000)	(NT\$'000)	(NT\$'000)	(NT\$'000)
To be reclassified to profit or loss
in subsequent period:
Exchange differences arising on
translation of foreign operations	\$(29,531)	\$-	\$(29,531)	\$-	\$(29,531)
Share of other comprehensive
income of associates and joint
ventures accounted for using the
equity method	(1,511)	-	(1,511)	-	(1,511)
Total OCI	\$(31,042)	\$-	\$(31,042)	\$-	\$(31,042)

For the three-month period ended June 30, 2020

				Income tax
	Arising during	Reclassification		benefit	OCI,
	the period	during the period	Subtotal	(expense)	Net of tax
	(NT\$'000)	(NT\$'000)	(NT\$'000)	(NT\$'000)	(NT\$'000)
To be reclassified to profit or loss
in subsequent period:
Exchange differences arising on
translation of foreign operations	\$(48,158)	\$-	\$(48,158)	\$-	\$(48,158)
Share of other comprehensive
income of associates and joint
ventures accounted for using the
equity method	(3,182)	-	(3,182)	-	(3,182)
Total OCI	\$(51,340)	\$-	\$(51,340)	\$-	\$(51,340)

For the six-month period ended June 30, 2021

				Income tax
	Arising during	Reclassification		benefit	OCI,
	the period	during the period	Subtotal	(expense)	Net of tax
	(NT\$'000)	(NT\$'000)	(NT\$'000)	(NT\$'000)	(NT\$'000)
To be reclassified to profit or loss
in subsequent period:
Exchange differences arising on
translation of foreign operations	\$(43,744)	\$-	\$(43,744)	\$-	\$(43,744)
Share of other comprehensive
income of associates and joint
ventures accounted for using the
equity method	(1,478)	-	(1,478)	-	(1,478)
Total OCI	\$(45,222)	\$-	\$(45,222)	\$-	\$(45,222)

For the six-month period ended June 30, 2020

				Income tax
	Arising during	Reclassification		benefit	OCI,
	the period	during the period	Subtotal	(expense)	Net of tax
	(NT\$'000)	(NT\$'000)	(NT\$'000)	(NT\$'000)	(NT\$'000)
To be reclassified to profit or loss
in subsequent period:
Exchange differences arising on
translation of foreign operations	\$(51,367)	\$-	\$(51,367)	\$-	\$(51,367)
Share of other comprehensive
income of associates and joint
ventures accounted for using the
equity method	(1,390)	-	(1,390)	-	(1,390)
Total OCI	\$(52,757)	\$-	\$(52,757)	\$-	\$(52,757)

(27)Income tax

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

Income tax expense (benefit) recognized in profit or loss

	For the three-month		For the six-month
	period ended June 30,		period ended June 30,
	2021 2020		2021	2020
	(NT\$'000)	(NT\$'000)	(NT\$'000)	(NT\$'000)
Current income tax expense (benefit):
Current income tax expense	\$123,945	\$53,243	\$205,467	\$88,092
Adjustments in respect of current
income tax of prior periods	(5,031)	(9,216)	(9,700)	(9,382)
Deferred tax expense (benefit):
Deferred tax expense (benefit)
relating to origination and reversal
of temporary differences	(656)	1,523	901	2,864
Total income tax expense	\$118,258	\$45,550	\$196,668	\$81,574

B. The assessment of income tax return

As of June 30, 2021, the assessment status of income tax returns of the Company and subsidiaries was as follows:

	The assessment of income tax returns
The Company	Assessed and approved up to 2018
Subsidiary - Pegavision Corporation	Assessed and approved up to 2018
Subsidiary - Kinsus Investment Co., Ltd.	Assessed and approved up to 2019
Subsidiary - Aquamax Corporation	The first-time assessment of 2020 has not yet
	been approved

(28)Earnings per share

Basic earnings per share is calculated by dividing net profit for the year attributable to the common shareholders of the parent entity by the weighted average number of common shares outstanding during the year.

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

A. Basic earnings per share

	For the three-month		For the six-month
	period ended June 30,			period ended June 30,
	2021 2020		2021	2020
Net income available to common
shareholders of the parent (in
NT\$'000)	\$852,908	\$233,938	\$1,111,031	\$312,782
Weighted average number of
common shares outstanding
(in thousand shares)	450,444	449,111	450,444	449,111
Basic earnings per share (in NT\$)	\$1.89	\$0.52	\$2.47	\$0.70

B. Diluted earnings per share

	For the three-month		For the six-month
	period ended June 30,		period ended June 30,
	2021	2020	2021	2020
Net income available to common
shareholders of the parent
(in NT\$'000)	\$852,908	\$233,938	\$1,111,031	\$312,782
Net income available to common
shareholders of the parent after
dilution (in NT\$'000)	\$852,908	\$233,938	\$1,111,031	\$312,782
Weighted average number of
common shares outstanding
(in thousand shares)	450,444	449,111	450,444	449,111
Effect of dilution:
Employee bonus – stock (in
thousand shares)	1,343	577	1,343	577

Restricted stocks (in thousand
shares)	-	1,491	-	1,491
Weighted average number of
common shares outstanding
after dilution	451,787	451,179	451,787	451,179
Diluted earnings per share
(in NT\$)	\$1.89	\$0.52	\$2.46	\$0.69

No other transactions that would significantly change the outstanding common shares or potential common shares incurred during the period after reporting date and up to the approval date of financial statements.

(29)Subsidiary that has material non-controlling interests

Proportion of equity interest held by non-controlling interests:

	As of
Name	Country	6/30/2021	12/31/2020	6/30/2020
PIOTEK HOLDINGS LTD.	China	49.00%	49.00%	49.00%
and its subsidiary
Pegavision Corporation	Taiwan	69.67%	69.67%	69.67%
and its subsidiary

Accumulated balances of material non-controlling interest:

		As of
	6/30/2021	12/31/2020	6/30/2020
	(NT\$'000)	(NT\$'000)	(NT\$'000)
PIOTEK HOLDINGS LTD.
and its subsidiary	\$224,506	\$318,252	\$382,661
Pegavision Corporation and
its subsidiary	\$3,315,395	\$3,201,655	\$2,861,237

Profit (loss) allocated to material non-controlling interest:

		For the six-month period ended June 30,
	2021	2020
	(NT\$'000)	(NT\$'000)
PIOTEK HOLDINGS LTD. and
its subsidiary	\$(87,809)	\$(59,961)
Pegavision Corporation and its
subsidiary	\$362,132	\$161,093

The summarized financial information of this subsidiary is provided below. This information is based on amounts before inter-company eliminations.

Summarized PIOTEK HOLDINGS LTD. and its subsidiary information of profit or loss is as follows:

	For the six-month period ended June 30,
	2021 2020
	(NT\$'000)	(NT\$'000)
Operating revenue	\$1,179,457	\$919,572
Profit/loss from continuing operation	(179,197)	(122,364)
Total comprehensive income for the period	(191,328)	(130,528)

Summarized Pegavision Corporation and its subsidiary information of profit or loss is as follows:

	For the six-month period ended June 30,
	2021 2020
	(NT\$'000)	(NT\$'000)
Operating revenue	\$2,527,142	\$1,556,833
Profit/loss from continuing operation	519,811	231,236
Total comprehensive income for the period	513,264	228,369

Summarized PIOTEK HOLDINGS LTD. and its subsidiary information of financial position is as follows:

	As of
	6/30/2021	12/31/2020	6/30/2020
	(NT\$'000)	(NT\$'000)	(NT\$'000)
Current assets	\$1,348,161	\$1,146,983	\$1,083,344
Non-current assets	1,026,314	1,115,410	1,249,558
Current liabilities	1,295,551	996,237	1,504,836
Non-current liabilities	620,760	616,664	47,112

Summarized Pegavision Corporation and its subsidiary information of financial position is as follows:

	As of
	6/30/2021	12/31/2020	6/30/2020
	(NT\$'000)	(NT\$'000)	(NT\$'000)
Current assets	\$3,160,649	\$2,890,778	\$2,366,377
Non-current assets	4,542,128	3,525,253	3,179,223
Current liabilities	2,788,849	1,716,966	1,360,148
Non-current liabilities	154,949	103,350	78,378

Summarized PIOTEK HOLDINGS LTD. and its subsidiary cash flows information is as follows:

	For the six-month
	period ended June 30,
	2021	2020
	(NT\$'000)	(NT\$'000)
Operating activities	\$(123,455)	\$(67,179)
Investing activities	(31,832)	(12,531)
Financing activities	78,227	(58,695)
Net increase/(decrease) in cash and cash equivalents	(65,831)	(133,273)

Summarized Pegavision Corporation and its subsidiary cash flows information is as follows:

	For the six-month
	period ended June 30,
	2021	2020
	(NT\$'000)	(NT\$'000)
Operating activities	\$1,199,843	\$588,090
Investing activities	(674,844)	(351,076)
Financing activities	(68,342)	(18,989)
Net increase/(decrease) in cash and cash equivalents	449,649	215,170

7. RELATED PARTY TRANSACTIONS

(1)Deal with related parties as of the end of the reporting period

Related parties and Relationship

Related parties	Relationship
Pegatron Corporation	Parent company
FuYang Technology Corp.	Associate
AzureWave Technologies (Shanghai) Inc.	Other related parties
PEGATRON JAPAN INC	Other related parties
Maintek Computer (Suzhou) Co., Ltd	Other related parties
GNDC Co., Ltd.	Other related parties
DIGITEK (CHONGQING) LIMITED	Other related parties
COTEK ELECTRONICS(SUZHOU) CO., LTD.	Other related parties
ASIAROCK TECHNOLOGY LIMITED	Other related parties
PEGATRON CZECH S.R.O	Other related parties

(2)Significant transactions with related parties

A. Sales to

	For the three-month		For the six-month
		period ended June 30,		period ended June 30,
	2021	2020	2021	2020
	(NT\$'000)	(NT\$'000)	(NT\$'000)	(NT\$'000)
Parent company	\$340	\$4,547	\$991	\$5,969
Other related parties	35,060	71,868	58,148	140,844
Total	\$35,400	\$76,415	\$59,139	\$146,813

Selling prices and collection terms to related parties are similar to those to third party customers for the six-month periods ended June 30, 2021 and 2020. The collection terms are 30 to 90 days from the end of delivery month by telegraphic transfer.

B. Lease-related parties

(a) Right-of-use asset

			As of
		6/30/2021	12/31/2020	6/30/2020
Related parties	Nature	(NT\$'000)	(NT\$'000)	(NT\$'000)
Parent company	Buildings	\$-	\$-	\$14,889
Other related parties	Buildings	193	635	1,054
Total		\$193	\$635	\$15,943

(b) Lease liability

	As of
	6/30/2021	12/31/2020	6/30/2020
Related parties	(NT\$'000)	(NT\$'000)	(NT\$'000)
Parent company	\$-	\$-	\$16,405
Other related parties	196	643	1,064
Total	\$196	\$643	\$17,469

(c) Lease payment (Rental expense)

		For the three-month		For the six-month
		period ended June 30,		period ended June 30,
		2021	2020	2021	2020
Related parties	Nature of lease	(NT\$'000)	(NT\$'000)	(NT\$'000)	(NT\$'000)
Parent company	Various acilities	\$-	\$235	\$-	\$469
Parent company	Buildings	25,211	-	50,423	-
Total		\$25,211	\$235	\$50,423	\$469

(d) Interest expense

	For the three-month		For the six-month
	period ended June 30,		period ended June 30,
	2021	2020	2021	2020
Related parties	(NT\$'000)	(NT\$'000)	(NT\$'000)	(NT\$'000)
Parent company	\$-	\$80	\$-	\$239
Other related parties	1	4	3	9
Total	\$1	\$84	\$3	\$248

C. For the six-month periods ended June 30, 2021 and 2020, the Group recognized operating expenses of NT\$94 thousand and NT\$1,427 thousand, respectively, for services provided by other related parties.

Moreover, for the six-month periods ended June 30, 2021 and 2020, the Group recognized operating expenses of NT\$166 thousand and NT\$196 thousand (tax included), respectively, for services provided by the Parent.

In addition, for the six-month periods ended June 30, 2021 and 2020, the Group incurred operating expenses of NT\$47,316 thousand and NT\$37,622 thousand (tax included), respectively, for utility bills paid by the Parent on behalf of the Group.

For the six-month periods ended June 30, 2021 and 2020, the Group recognized operating expense of NT\$224 thousand and NT\$1,305 thousand, respectively, due to subcontracting maintenance and repair on factories to its associate.

D. For the six-month periods ended June 30, 2021 and 2020, the Group recognized rent income of NT\$543 thousand and NT\$454 thousand, respectively, for plants leased to other related parties.

For the six-month periods ended June 30, 2021 and 2020, the Group recognized rent income of NT\$3,538 thousand and NT\$21,728 thousand, respectively, for plants leased to the associate.

E. For the six-month periods ended June 30, 2021 and 2020, the Group recognized expense of NT\$361 thousand and NT\$10,095 thousand, respectively, due to paying utilities on behalf of associate.

For the six-month periods ended June 30, 2021, the Group recognized expense of NT\$2,376 thousand for providing services to other related parties.

F. Accounts receivable - related parties

	As of
	6/30/2021	12/31/2020	6/30/2020
	(NT\$'000)	(NT\$'000)	(NT\$'000)
Parent company	\$974	\$1,240	\$4,579
Other related parties	41,295	23,622	70,583
Total	42,269	24,862	75,162
Less: loss allowance	-	-	-
Net	\$42,269	\$24,862	\$75,162

G. Other receivables

		As of
	6/30/2021	12/31/2020	6/30/2020
	(NT\$'000)	(NT\$'000)	(NT\$'000)
Associate	\$21	\$3,859	\$5,691
Other related parties	220	255	322
Total	\$241	\$4,114	\$6,013

H. Refundable deposits

	As of
	6/30/2021	12/31/2020	6/30/2020
	(NT\$'000)	(NT\$'000)	(NT\$'000)
Parent company	\$10,000	\$10,000	\$10,000
Other related parties	349	-	-
Total	\$10,349	\$10,000	\$10,000

I. Accrued expenses

		As of
	6/30/2021	12/31/2020	6/30/2020
	(NT\$'000)	(NT\$'000)	(NT\$'000)
Parent company	\$19,872	\$19,705	\$20,706
Associate	-	467	464
Other related parties	8	499	528
Total	\$19,880	\$20,671	\$21,698

L. Salaries and rewards to key management of the Group

		For the three-month		For the six-month
	period ended June 30,		period ended June 30,
	2021	2020	2021	2020
	(NT\$'000)	(NT\$'000)	(NT\$'000)	(NT\$'000)
Short-term employee benefits	\$9,295	\$11,714	\$25,120	\$26,939
Post-employee benefits	243	216	477	432
Total	\$9,538	\$11,930	\$25,597	\$27,371

8. PLEDGED ASSETS

The following assets of the Group are pledged as collaterals:

		Carrying Amount	As of
	6/30/2021	12/31/2020	6/30/2020
Item	(NT\$'000)	(NT\$'000)	(NT\$'000)	Purpose
Property, plant and equipment –	\$-	\$-	\$1,317,564	Long-term secured
land				loans
Property, plant and equipment –	53,238	61,249	63,361	Long-term secured
buildings (carrying amount)				loans
Financial assets measured at	43,566	44,110	-	Guarantee of
amortized cost				provisional attachment
Refundable deposits	2,000	2,000	2,000	Security deposit to
				custom authority
Total	\$98,804	\$107,359	\$1,382,925

9. SIGNIFICANT CONTINGENCIES AND UNRECOGNIZED CONTRACT COMMITMENTS

(1) The Group's unused letters of credit (LC) as of June 30, 2021 were as follows:

Currency		LC Amount (in thousand)	Security (in thousand)
JPY	JPY	7,297,273	\$-
USD	USD	12,706	-
EUR	EUR	6,655	-

(2) Details of significant constructions in progress and outstanding contracts of property, plant and equipment as of June 30, 2021 were as follows:

	Contract		Outstanding
	Amount	Amount Paid	Balance
Nature of Contract	(NT\$'000)	(NT\$'000)	(NT\$'000)
Machinery and
construction contracts	\$5,458,200	\$1,872,904	\$3,585,296

The above paid amount was recognized as construction in progress and equipment awaiting inspection.

(3) The Group has disputes with Wuxi Land Environmental Technology Co.,LTD. ("Wuxi Land Company" hereinafter) regarding the hazardous waste clean up and recycle contract. In June 2020, Wuxi Land Company filed a lawsuit and requested returning security deposit of RMB 1,000 thousand and prepayment of RMB 9,081 thousand. As of June 30, 2021, the Group received RMB 14,392 thousand from Wuxi Land Company, and the payment was listed under receipts in advance. Wuxi Land Company filed to freeze the advance receipt in August 2020. The People's Court of Huqiu District, Suzhou City ruled to freeze RMB 10,100 thousand, which the Group accounted for under restricted assets. As of July 26, 2021, the Group filed an appeal. The case is still pending in court. It is assessed that the aforementioned lawsuits have no significant impact on the Group.

10. SIGNIFICANT DISASTER LOSS

None

11. SIGNIFICANT SUBSEQUENT EVENT

None

12. OTHERS

(1) Categories of financial instruments

Financial assets

		As of
	6/30/2021	12/31/2020	6/30/2020
	(NT\$'000)	(NT\$'000)	(NT\$'000)
Financial assets at fair value through profit or loss:
Mandatorily measured at fair value through P/L	\$863,560	\$1,594,063	\$1,317,663
Financial assets at fair value through OCI	51,000	51,000	50,000
Financial assets measured at amortized cost:
Cash and petty cash	12,018,634	11,664,932	11,126,385
Time deposit	423,057	423,057	623,057
Restricted deposits	43,566	44,110	-
Accounts receivable	5,514,616	4,403,199	4,219,640
Other receivables	280,463	145,275	70,919
Total	\$19,194,896	\$18,325,636	\$17,407,664

Financial liabilities

		As of
	6/30/2021	12/31/2020	6/30/2020
	(NT\$'000)	(NT\$'000)	(NT\$'000)
Financial liabilities at amortized cost:
Short-term borrowings	\$3,008,290	\$2,640,307	\$3,447,645
Trade and other payables	8,711,778	6,338,434	5,479,015
Long-term borrowings (including current portion with
maturity less than 1 year)	8,169,438	3,609,548	2,876,381
Lease liabilities (including current portion with
maturity less than 1 year)	118,899	106,246	123,910
Total	\$20,008,405	\$12,694,535	\$11,926,951

(2) Objectives and policies of financial risk management

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

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 always.

(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 risk comprises currency risk, interest rate risk and other price risk (e.g. 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 foreign currency risk relates primarily to the Group's operating activities (when revenue or expense are denominated in a different currency from the Group's functional currency) and the Group's net investments in foreign operations. The Group has certain foreign currency receivables denominated in the same foreign currency as certain foreign currency payables, therefore natural hedge is achieved. Thus, hedge accounting is not adopted.

Foreign currency sensitivity analysis of possible change in foreign exchange rates on the Group's profit/loss and equity is performed on significant monetary items denominated in foreign currencies as of the reporting period-end. The Group's foreign currency risk is mainly related to volatility in the exchange rates of US dollars. It is stated as follows:

If NT dollars appreciates/depreciates against US dollars by 1%, net income (loss) for the sixmonth periods ended June 30, 2021 and 2020 would increase/decrease by NT\$12,121 thousand and NT\$4,393 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's exposure to interest rate risk relates primarily to the Group's investments with variable interest rates and loans with fixed and variable interest rates, which are all categorized as loans and receivables.

The interest rate sensitivity analysis is performed on items exposed to interest rate risk as of the end of the reporting period and presumed to be held for one accounting year, including investments and loans with variable interest rates. If interest rate increases/decreases by 0.1%, the net income (loss) for the six-month periods ended June 30, 2021 and 2020 would decrease/increase by NT\$7,135 thousand and decrease/increase by NT\$3,620 thousand, respectively.

(4) Credit risk management

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

Customer credit risk is managed by each business unit subject to the Group's established policy, procedures and control relating to customer credit risk management. Credit risk of all customers are assessed based on a comprehensive review of the customers' financial status, credit ratings from credit institutions, past transactions, current economic conditions and the Group's internal credit ratings. The Group also employs some credit enhancement instruments (e.g. prepayment or insurance) to reduce certain customers' credit risk.

As of June 30, 2021, December 31, 2020 and June 30, 2020, receivables from the top ten customers were accounted for 49.09%, 44.04% and 49.30% of the Group's total accounts receivable, respectively. The concentration of credit risk is relatively insignificant for the remaining receivables.

Credit risk from balances with banks and other financial instruments is managed by the Group's finance division in accordance with the Group's policy. The counterparties that the Group transacts with are determined by internal control procedures. They are banks with fine credit ratings and financial institutions, corporate and government agencies with investmentgrade credit ratings. Thus, there is no significant default risk. Conclusively, no significant credit risk is expected by the Group.

The Group adopted IFRS 9 to assess the expected credit losses. Except for trade receivables, the remaining debt instrument investments which are not measured at fair value through profit or loss, low credit risk for these investments is a prerequisite upon acquisition and by using their credit risk as a basis for the distinction of categories. The Group makes an assessment at each reporting date as to whether the credit risk still meets the conditions of low credit risk and then further determines the method of measuring the loss allowance and the loss ratio.

Financial assets are written off when there is no realistic prospect of future recovery (the issuer or the debtor is in financial difficulties or bankruptcy).

(5) Liquidity risk management

The Group maintains financial flexibility using cash and cash equivalents, highly-liquid marketable securities, bank loans, etc. 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. The undiscounted interest payment relating to borrowings with variable interest rates is extrapolated based on the estimated yield curve as of the end of the reporting period.

Less than 1 year (NT\$'000) 1 to 2 years (NT\$'000) 2 to 3 years (NT\$'000) 3 to 4 years (NT\$'000) 4 to 5 years (NT\$'000) More than 5 years (NT\$'000) Total (NT\$'000) As of June 30, 2021 Loans \$3,887,222 \$781,827 \$900,165 \$1,671,909 \$1,740,795 \$2,479,482 \$ 11,461,400 Payables 8,711,778 - - - - - 8,711,778 Lease liabilities 44,199 31,225 18,827 7,135 4,796 15,149 121,331 As of December 31, 2020 Loans \$3,654,003 \$652,545 \$511,944 \$539,216 \$535,089 \$453,533 \$6,346,330 Payables 6,338,434 - - - - - 6,338,434 Lease liabilities 42,787 26,382 11,655 5,684 4,763 17,553 108,824 As of June 30, 2020 Loans \$4,613,489 \$602,939 \$302,287 \$253,763 \$251,816 \$379,130 \$6,403,424 Payables 5,479,015 - - - - - 5,479,015 Lease liabilities 67,819 31,744 14,256 5,223 2,008 4,829 125,879

Non-derivative financial instruments

(6) Movement schedule of liabilities arising from financing activities

Movement schedule of liabilities for the six-month period ended June 30, 2021:

					Total liabilities
	Short-term	Long-term	Refundable	Leases	from financing
	borrowings	borrowings	deposits	liabilities	activities
	(NT\$'000)	(NT\$'000)	(NT\$'000)	(NT\$'000)	(NT\$'000)
As of January 1, 2021	\$2,640,307	\$3,609,548	\$73,235	\$106,246	\$6,429,336
Cash flows	367,983	4,588,641	17,774	(24,253)	4,950,145
Non-cash changes
Lease range changes	-	-	-	36,477	36,477
Interests on lease	-	-	-	578	578
liabilities
Others	-	(16,131)	-	-	(16,131)
Currency rate change	-	(12,620)	-	(149)	(12,769)
As of June 30, 2021	\$3,008,290	\$8,169,438	\$91,009	\$118,899	\$11,387,636

					Total liabilities
	Short-term	Long-term	Refundable	Leases	from financing
	borrowings	borrowings	deposits	liabilities	activities
	(NT\$'000)	(NT\$'000)	(NT\$'000)	(NT\$'000)	(NT\$'000)
As of January 1, 2020	\$4,096,101	\$3,046,550	\$43,836	\$172,080	\$7,358,567
Cash flows	(648,456)	(148,267)	26,253	(76,395)	(846,865)
Non-cash changes
Lease range changes	-	-	-	27,597	27,597
Interests on lease	-	-	-	934	934
liabilities
Others	-	(20,660)	-	-	(20,660)
Currency rate change	-	(1,242)	-	(306)	(1,548)
As of June 30, 2020	\$3,447,645	\$2,876,381	\$70,089	\$123,910	\$6,518,025

Movement schedule of liabilities for the six-month period ended June 30, 2020:

(7) Fair values of financial instruments
A. The evaluation methods and assumptions applied in determining the fair value

Fair value is the price that would be received to sell a financial asset or paid to transfer a financial liability in an orderly transaction between willing market participants (not under coercion or liquidation). The following methods and assumptions are used by the Group in estimating the fair values of financial assets and liabilities:

(a) The carrying amount of cash and cash equivalents, receivables, payables and other current liabilities approximate their fair value due to their short maturity terms.
(b) 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 (e.g. listed equity securities, beneficiary certificates, bonds and futures etc.) at the report date.
(c) Fair value of equity instruments without market quotations (including private placement of listed equity securities, unquoted public company and private company equity securities) are estimated using the market method 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).

(d) Fair value of debt instruments without market quotations, bank loans, bonds payable and other non-current liabilities are determined based on the counterparty prices or valuation method. The valuation method uses DCF method as a basis, and the assumptions such as the interest rate and discount rate are primarily based on relevant information of similar instrument (such as yield curves published by the GreTai Securities Market, average prices for Fixed Rate Commercial Paper published by Reuters and credit risk, etc.)
B. Fair value of financial instruments measured at amortized cost

The carrying amount of the Group's financial assets and liabilities measure at amortized cost approximates their fair value.

C. Fair value measurement hierarchy for financial instruments

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

(8) Fair value measurement hierarchy
A. Fair value measurement hierarchy

All asset 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 asset or liability

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:

As of June 30, 2021

	Level 1	Level 2	Level 3	Total
	(NT\$'000)	(NT\$'000)	(NT\$'000)	(NT\$'000)
Financial assets:
Financial assets at fair value through
profit or loss
Funds	\$863,560	\$-	\$-	\$863,560
Financial assets at fair value through
other comprehensive income
Equity instrument measured at	-	-	51,000	51,000
fair value through other
comprehensive income
Financial liabilities:
None
As of December 31, 2020
	Level 1	Level 2	Level 3	Total
	(NT\$'000)	(NT\$'000)	(NT\$'000)	(NT\$'000)
Financial assets:
Financial assets at fair value through
profit or loss
Funds	\$1,594,063	\$-	\$-	\$1,594,063

Financial assets at fair value through other comprehensive income Equity instrument measured at fair value through other comprehensive income	-	-	51,000	51,000
Financial liabilities: None
As of June 30, 2020
	Level 1 (NT\$'000)	Level 2 (NT\$'000)	Level 3 (NT\$'000)	Total (NT\$'000)
Financial assets:
Financial assets at fair value through
profit or loss
Funds	\$1,317,663	\$-	\$-	\$1,317,663
Financial assets at fair value through
other comprehensive income
Equity instrument measured at	-	-	50,000	50,000
fair value through other
comprehensive income
Financial liabilities:
None

Transfers between Level 1 and Level 2 during the period

For the six-month period ended June 30, 2021 and 2020, there were no transfers between Level 1 and Level 2 fair value hierarchy.

Reconciliations for fair value measurement on a recurring basis in Level 3 hierarchy

For the six-month period ended June 30, 2021 and 2020, there were not movement of fair value measurements.

(9) Significant financial assets and liabilities denominated in foreign currencies

Information regarding the Group's significant financial assets and liabilities denominated in foreign currencies was listed below: (In Thousands)

			As of
		6/30/2021			12/31/2020
	Foreign			Foreign
	Currencies	Exchange	NTD	Currencies	Exchange	NTD
	(\$'000)	Rate	(NT\$'000)	(\$'000)	Rate	(NT\$'000)
Financial assets
Monetary items:
USD	\$207,872	27.8575	\$5,790,795	\$159,309	28.4965	\$4,539,756
CNY	\$161,789	4.3135	\$697,873	\$185,771	4.3674	\$811,327
Financial liabilities
Monetary items:
USD	\$164,314	27.8655	\$4,578,698	\$121,365	28.4965	\$3,458,474
CNY	\$236,836	4.3135	\$1,021,585	\$189,148	4.3674	\$826,074
		As of
		6/30/2020
	Foreign
	Currencies	Exchange	NTD
	(\$'000)	Rate	(NT\$'000)
Financial assets
Monetary items:
USD	\$152,746	29.64	\$4,527,115
CNY	\$90,715	4.188	\$379,915
Financial liabilities
Monetary items:
USD	\$137,873	29.65	\$4,087,808
CNY	\$151,678	4.188	\$635,228

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

Foreign exchange gain/loss on monetary financial assets and liabilities is shown as below.

	For the six-month
	period	ended June 30,
Foreign currency resulting	2021	2020
in exchange gain or loss	(NT\$'000)	(NT\$'000)
USD	\$(26,088)	\$4,974
Other	2,215	(6,467)

(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 to support its business and maximize shareholder value. The Group manages and adjusts its capital structure considering 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.

13. ADDITIONAL DISCLOSURES

(1) Information on significant transactions
A. Financing provided to others: None.
B. Endorsement/Guarantee provided to others: Please refer to attachment 1.
C. Marketable securities held as of June 30, 2021 (excluding investments in subsidiaries, associates and joint ventures): Please refer to attachment 2.
D. Individual securities acquired or disposed of with accumulated amount of at least NT\$ 300 million or 20 percent of the paid-in capital for the six-month period ended June 30, 2021: None.
E. Acquisition of individual real estate with amount of at least NT\$300 million or 20 percent of the paid-in capital for the six-month period ended June 30, 2021: Please refer to attachment 3.
F. Disposal of individual real estate with amount of at least NT\$100 million or 20 percent of the paid-in capital for the six-month period ended June 30, 2021: None.
G. Related party transactions with purchase or sales amount of at least NT\$100 million or 20 percent of the paid-in capital for the six-month period ended June 30, 2021: Please refer to attachment 4.
H. Receivables from related parties of at least NT\$100 million or 20 percent of the paid-in capital as of June 30, 2021: None.
I. Derivative instrument transactions: None.
J. Intercompany relationships and significant intercompany transactions for the six-month period ended June 30, 2021: Please refer to attachment 10.
(2) Information on investees
A. Investees over whom the Company exercises significant influence or control (excluding investees in Mainland China): Please refer to attachment 5.
B. Investees over which the Company exercises control shall be disclosed of information under Note 13(1):
- (a) Financing provided to others: None.
- (b) Endorsement/Guarantee provided to others: None.
- (c) Marketable securities held as of June 30, 2021 (excluding investments in subsidiaries, associates and joint ventures): Please refer to attachment 6.
- (d)Individual securities acquired or disposed of with accumulated amount of at least NT\$300 million or 20 percent of the paid-in capital for the six-month period ended June 30, 2021: Please refer to attachment 7.
- (e) Acquisition of individual real estate with amount of at least NT\$300 million or 20 percent of the paid-in capital for the six-month period ended June 30, 2021: None.
(f) Disposal of individual real estate with amount of at least NT\$300 million or 20 percent of the paid-in capital for the six-month period ended June 30, 2021: None.
(g)Related party transactions with purchase or sales amount of at least NT\$100 million or 20 percent of the paid-in capital for the six-month period ended June 30, 2021: Please refer to attachment 8.
(h)Receivables from related parties of at least NT\$100 million or 20 percent of the paidin capital as of June 30, 2021: Please refer to attachment 9.
(i) Derivative instrument transactions: None.

(3) Information on investments in Mainland China:

A. Name of investee in China, main business, paid-in capital, method of investment, investment flows, percentage of ownership, investment gain or loss, carrying amount at the end of reporting period, inward remittance of earning or loss and the upper limit on investment in China:

(In Thousands of New Taiwan Dollars)

Name of Investee in China	Main Business	Paid-in Capital (NT\$'000)	Method of Investment (Note 1)	Accumulated Outflow of Investment from Taiwan as of Jan. 1, 2021 (NT\$'000)	Investment Flows Outflow (NT\$'000)	Inflow (NT\$'000)	Accumulated Outflow of Investment from Taiwan as of June 30, 2021 (NT\$'000)	Profit/Loss of Investee (NT\$'000)	Percentage of Ownership (Direct or Indirect Investment)	Share of Profit/Loss (NT\$'000)	Carrying Amount as of June 30, 2021 (NT\$'000)	Accumulated Inward Remittance of Earnings as of June 30, 2021 (NT\$'000)	Accumulated Outflow of Investment from Taiwan to Mainland China as of June 30, 2021	Investment Amounts Authorized by Investment Commission, MOEA (NT\$'000)	Upper Limit on Investment in China by Investment Commission, MOEA (NT\$'000)
Kinsus Interconnect Technology Suzhou Corp.	Manufacturing and selling PCB (not high density fine line)	\$1,950,585 (Note 2)	(2)	\$1,950,585 (Note 2)	\$-	\$-	\$1,950,585 (Note 2)	\$237,926 (Note 2 and Note 4)	100%	\$237,926 (Note 2, Note 4 and Note 7)	\$1,909,235 (Note 2, Note 4 and Note 7)	\$-	(NT\$'000) \$1,950,585 (Note 2)	\$1,950,585 (Note 2)	No upper limit (Note 5)

Piotek Computer (Suzhou) Co., Ltd.	Researching, developing, producing and selling electronic components, PCBs and related products and providing after sale services	\$4,645,179 (Note 2)	(2)	\$2,626,435 (Note 2)	\$-	\$-	\$2,626,435 (Note 2)	\$(174,647) (Note 2 and Note 4)	51%	\$(89,070) (Note 2, Note 4 and Note 7)	\$199,007 (Note 2, Note 4 and Note 7)	\$-	\$2,626,435 (Note 2)	\$2,626,435 (Note 2)
Xiang-Shuo (Suzhou) Trading Limited	Trading of PCB (not high density fine line) and material for related products	\$55,731 (Note 2)	(2)	\$55,731 (Note 2)	\$-	\$-	\$55,731 (Note 2)	\$(478) (Note 2 and Note 4)	100%	\$(478) (Note 2, Note 4 and Note 7)	\$58,548 (Note 2, Note 4 and Note 7)	\$-	\$55,731 (Note 2)	\$55,731 (Note 2)
Pegavision Contact Lenses (Shanghai) Corporation	Selling medical equipment	\$112,559 (USD3,600)	(1)	\$112,559	\$-	\$-	\$112,559	\$(2,297) (Note 2 and Note 4)	30.33%	\$(697) (Note 2, Note 4 and Note 7)	\$31,119 (Note 2, Note 4 and Note 7)	\$-	\$112,559	\$112,559	\$2,855,387 (Note 6)

Gemvision Technology (Zhejiang)	Selling medical equipment	\$43,420 (RMB10,000)	(3) (Note 3)	\$-	\$-	\$-	\$-	\$(2,438) (Note 2 and	30.33%	\$(739) (Note 2, Note	\$27,211 (Note 2, Note	\$-	\$-	\$-
Limited		(Note 2)						Note 4)		4 and Note 7)	4 and Note 7)
Pegavision (Jiangsu) Limited	producing and Selling medical equipment	\$85,620 (USD3,000) (Note 2)	(1)	\$-	\$85,620	\$-	\$85,620	\$(478) (Note 2 and Note 4)	30.33%	\$(145) (Note 2, Note 4 and Note 7)	\$25,648 (Note 2, Note 4 and Note 7)	\$-	\$85,620	\$85,620

Note 1: The investment methods are divided into the following three types, just indicate the types:

(1) Go directly to the mainland for investment.
(2) Reinvest in mainland China through a third-region company.
(3) Other methods.
Note 2: Amounts in foreign currencies are translated into New Taiwan dollars using the exchange rates on the balance sheet date.
Note 3: Pegavision Contact Lenses (Shanghai) Corporation recognized the profit/loss and carrying amount of Gemvisoon Technology (Zhejiang) Limited.
Note 4: Gain/loss on investment is recognized based on the financial statements which were reviewed by the independent auditors of the parent company in Taiwan.
Note 5:The Company meets the conditions of corporate operation headquarter in the Principle of Evaluation for Investment and Technical Cooperation in Mainland China. Thus, there is no upper limit on investment amount.

Note 6: The upper limit on investment for Pegavision Contact Lenses (Shanghai) Corporation, Gemvisoon Technology (Zhejiang) Limited and Pegavision (Jiangsu) Limited is calculated as 60% of the net value of the recent financial statements reviewed by independent auditors of Pagavision Corporation.

Note 7: Transactions are eliminated upon preparation of consolidated financial statements.

B. Significant transactions with investees in China:
(a) Purchase and balances of related accounts payable as of June 30, 2021: Please refer to attachment 10 for details.
(b) Sale and balance of related accounts receivable as of June 30, 2021: Please refer to attachment 10 for details.
(c) Property transaction amounts and resulting gain or loss:

basis for price

decision
Negotiated
price

Negotiated
price

Note: For the year ended December 31, 2019, the Company wrote off NT\$38,556 thousand due to the unrealized gain on disposal of property, plant and equipment. As of June 30, 2021, unrealized gain on disposal of property, plant and equipment is NT\$19,367 thousand, and recongnized as the credit balance of investments accounted for using the equity method.
Note1: For the three-month ended March 31, 2021, the Company wrote off NT\$11,129 thousand due to the unrealized gain on disposal of property, plant and equipment. As of June 30, 2021, unrealized gain on disposal of property, plant and equipment is NT\$11,129 thousand, and recongnized as the credit balance of investments accounted for using the equity method.
(d) Ending balance of endorsements/guarantees or collateral provided and the purposes: None.
(e) Maximum balance, ending balance, interest rate range and total interest for current period from financing provided to others: None.
(f) Transactions that have significant impact on profit or loss of current period or the financial position, such as services provided or rendered: Please refer to attachment 10 for details.
(g) Above transactions are eliminated upon preparation of consolidated financial statements. Please refer to attachment 10 for details.
(4) Information on major shareholders:

Ownership of
shares	Number of shares held
Name	(shares)	Ownership ratio
Asus Investment Co., Ltd.	60,128,417	13.33%
Asustek Investment Co., Ltd.	58,233,091	12.91%
Asuspower Investment	55,556,221	12.32%

14. OPERATING SEGMENT

For management purposes, the Group is organized into operating segments based on different products and services and has three reportable operating segments as follows:

IC Substrate: This segment produces and manufactures BGA substrates and sells the products to manufacturers of electronic products.

Printed Circuit Board (PCB): This segment produces and manufactures PCBs and sells the products to manufacturers of electronic products.

Optics: This segment produces, manufactures and sells contact lens.

No operating segments have been aggregated to form the above reportable operating segments.

The Group's operating segments adopts the same accounting policies as the ones in Note 4. Management monitors the operating results of its business units separately for decision-making on resource allocation and performance assessment. Segment performance is evaluated based on operating profit or loss and measured consistently with methods applied to operating profit or loss in the consolidated financial statements.

(1)Segment income (loss), assets and liabilities

For the three-month period ended June 30, 2021

	IC Substrate	PCB	Optics	Elimination	Consolidated
	(NT\$'000)	(NT\$'000)	(NT\$'000)	(NT\$'000)	(NT\$'000)

External customer	\$6,725,353	\$618,656	\$1,381,346	\$-	\$8,725,355
Inter-segment	-	-	-	-	-
Total revenue	\$6,725,353	\$618,656	\$1,381,346	\$-	\$8,725,355
Segment income (loss)	\$811,156	\$(93,627)	\$295,217	\$-	\$1,012,746

For the six-month period ended June 30, 2021

	IC Substrate	PCB	Optics	Elimination	Consolidated
	(NT\$'000)	(NT\$'000)	(NT\$'000)	(NT\$'000)	(NT\$'000)

External customer	\$12,244,806	\$1,179,393	\$2,527,142	\$-	\$15,951,341
Inter-segment	-	-	-	-	-
Total revenue	\$12,244,806	\$1,179,393	\$2,527,142	\$-	\$15,951,341
Segment income (loss)	\$1,044,839	\$(179,296)	\$519,811	\$-	\$1,385,354

For the three-month period ended June 30, 2020

	IC Substrate	PCB	Optics	Elimination	Consolidated
	(NT\$'000)	(NT\$'000)	(NT\$'000)	(NT\$'000)	(NT\$'000)
External customer	\$5,356,671	\$594,127	\$835,387	\$-	\$6,786,185
Inter-segment	-	-	-	-	-
Total revenue	\$5,356,671	\$594,127	\$835,387	\$-	\$6,786,185
Segment income (loss)	\$189,048	\$5,905	\$140,026	\$-	\$334,979

	IC Substrate (NT\$'000)	PCB (NT\$'000)	Optics (NT\$'000)	Elimination (NT\$'000)	Consolidated (NT\$'000)
External customer	\$10,203,309	\$918,376	\$1,556,833	\$-	\$12,678,518
Inter-segment	-	-	-	-	-
Total revenue	\$10,203,309	\$918,376	\$1,556,833	\$-	\$12,678,518
Segment income (loss)	\$306,156	\$(123,478)	\$231,236	\$-	\$413,914

For the six-month period ended June 30, 2020

Details of assets and liabilities under the Group's operating segments are as follows:

Segment assets	IC Substrate	PCB	Optics	Elimination	Consolidated
	(NT\$'000)	(NT\$'000)	(NT\$'000)	(NT\$'000)	(NT\$'000)
As of 06/30/2021	\$40,784,884	\$2,433,254	\$7,702,777	\$-	\$50,920,915
As of 12/31/2020	\$34,046,545	\$2,321,376	\$6,416,031	\$-	\$42,783,952
As of 06/30/2020	\$33,350,625	\$2,389,840	\$5,545,600	\$-	\$41,286,065

Segment liabilities	IC Substrate	PCB	Optics	Elimination	Consolidated
	(NT\$'000)	(NT\$'000)	(NT\$'000)	(NT\$'000)	(NT\$'000)
As of 06/30/2021	\$16,327,857	\$1,916,538	\$2,837,629	\$-	\$21,082,024
As of 12/31/2020	\$10,160,915	\$1,613,162	\$1,820,316	\$-	\$13,594,393
As of 06/30/2020	\$9,711,741	\$1,552,235	\$1,385,442	\$-	\$12,649,418

Kinsus Interconnect Technology Corp. and Subsidiaries

Endorsement/Guarantee Provided to Others

For the six-month period ended June 30, 2021

Attachment 1

(In Thousands of Foreign Currency / New Taiwan Dollars)

	Endorsement/ Guarantee Provider		Guaranteed Party					Amount of	Ratio of Accumulated
No.								Endorsement/G uarantee	Endorsement/ Guarantee to Net	Maximum Endorsement/	Endorsement provided by parent	Endorsement provided by	Endorsement
(Note 1)	Name	Name	Nature of Relationship	Limits on Endorsement/ Guarantee Amount Provided to Each Guaranteed Party	Maximum Balance for the Period	Ending Balance	Amount Actually Drawn	secured by Properties	Worth per Latest Financial Statements	Guarantee Amount Allowed	company to subsidiaries	subsidiaries to parent company	provided to entities in China
-	-	-	-	-	\$-	\$-	\$-	\$-	-%	-	-	-	-

Note 1: Kinsus Interconnect Technology Corp. is coded "0".

Note 2: The endorsement and guaranteed amount of the Company and the consolidated subsidiary is NT\$110,724 thousand.

Kinsus Interconnect Technology Corp. and Subsidiaries

Marketable Securities Held as of June 30, 2021

Attachment 2

(In Thousands of New Taiwan Dollars)

					June 30, 2021
Name of Held Company	Type and Name of Marketable Securities	Relationship with the Issuer	Financial Statement Account	Shares / Units	Carrying Amount	Shareholding %	Fair Value	Note
	Kinsus Interconnect Money market funds:
Technology Corp.	Mega Diamond Money Market Fund	-	Financial assets at fair value through profit or loss	21,355,432	257,508	-%	270,486
	Jih Sun Money Market	-	Financial assets at fair value through profit or loss	17,776,549	255,443	-%	266,136
	Subtotal				512,951		\$536,622
	Add: Valuation adjustments of financial assets at fair value through profit or loss				23,671
	Total				\$536,622

Kinsus Interconnect Technology Corp. and Subsidiaries

Acquisition of Individual Real Estate with Amount of at Least NT\$ 300 million or 20% of the Paid-in Capital as of June 30, 2021

Attachment 3

(In Thousands of New Taiwan Dollars)

			Transaction	Payment				Prior Transaction of Related Counter-party Relationship with the	Transfer
Acquiring Company	Name of Property	Transaction Date	Amount	Status	Counter-party	Relationship	Owner	Company	Date	Amount	Price Reference	Purpose and Use of Acquisition	Other Terms
	Kinsus Interconnect Land, houses and buildings	2021.02.05	\$4,409,385	By Contract	WINTEK	None	None	None	None	None	By Bidding	For production capacity expansion	None
Technology Corp.					CORPORATION							and company operation plan.

Kinsus Interconnect Technology Corp. and Subsidiaries

Related Party Transactions with Purchase or Sales Amount of At least NT\$ 100 Million or 20% of the Paid-in Capital

For the six-month period ended June 30, 2021

Attachment 4

(In Thousands of New Taiwan Dollars)

					Transaction Details		Abnormal Transaction		Notes/ Accounts Payable or Receivable
		Nature of	Purchase/			Payment/ Collection		Payment/
Company Name	Related Party	Relationship	Sale	Amount	% to Total	Term	Unit Price	Collection Term	Ending Balance	% to Total	Note
Kinsus Interconnect	Kinsus Interconnect	Investee accounted	Purchase	\$1,436,089	25.24%	Payment within 60	Specs of goods	Other vendors	Accounts payable	(23.91)%	Note
Technology Corp.	Technology Suzhou	for using equity				days from the end of	purchased are different	also enjoy
	Corp.	method indirectly				delivery month	from others. Cannot be	payment within	\$(517,800)
							reasonablely	30~90 days from
							compared.	the end of
								delivery month

Note: Transactions are eliminated when preparing the consolidated financial statements.

Kinsus Interconnect Technology Corp. and Subsidiaries

Investees over Which the Company Exercise Significant Influence or Control Directly or Indirectly (Excluding Investees in Mainland China)

As of June 30, 2021

	Attachment 5
(In Thousands of Foreign Currency / New Taiwan Dollars)

				Original Investment Amount			Ending balance		Net Income	Share of Income
				As of Dec. 31,	As of Jun. 30,				(Loss) of the	(Loss) of the
Investor	Investee	Business Location	Main Business and Product	2020	2021	Shares	%	Carrying Value	Investee	Investee	Note
Kinsus Interconnect	KINSUS CORP. (USA)	CA U.S.A.	Designing substrates,	USD 500	USD 500	500,000	100.00%	\$65,517	\$6,520	\$6,520	Note
Technology Corp.			formulating marketing strategy analysis,developing
			new customers, researching
			and development new product technology
Kinsus Interconnect	KINSUS HOLDING	Samoa	Investing activities	USD 166,309	USD 166,309	166,308,720	100.00%	\$2,180,954	\$148,622	\$128,124	Note
Technology Corp.	(SAMOA) LIMITED									(Note 3)
Kinsus Interconnect	Kinsus Investment Co., Ltd.	Taoyuan City	Investing activities	\$1,600,000	\$1,600,000	160,000,000	100.00%	\$2,487,676	\$216,051	\$216,051	Note
Technology Corp.				(Note 1)	(Note 1)
Kinsus Investment	Pegavision Corporation	Taoyuan City	Manufacturing medical	\$252,455	\$252,455	21,233,736	30.33%	\$1,443,584	\$519,811	\$157,679	Note
Co., Ltd.			equipment	(Note 2)	(Note 2)
Kinsus Investment Co., Ltd.	FuYang Technology Corp.	Hsinchu County	Electronic Parts and Components Manufacturing	\$929,422	\$929,422	64,176,872	35.65%	\$355,447	\$163,058	\$58,136
KINSUS HOLDING	KINSUS HOLDING	Cayman Islands	Investing activities	USD 72,000	USD 72,000	72,000,000	100.00%	USD 70,617	USD 8,521	USD 8,521	Note
(SAMOA) LIMITED	(CAYMAN) LIMITED
KINSUS HOLDING (SAMOA) LIMITED	PIOTEK HOLDINGS LTD. (CAYMAN)	Cayman Islands	Investing activities	USD 94,309	USD 94,309	95,755,000	51.00%	USD 8,386	USD (6,362)	USD (3,245)	Note
PIOTEK HOLDINGS	PIOTEK HOLDING	British Virgin	Investing activities	USD 139,841	USD 139,841	139,840,790	100.00%	USD 16,442	USD (6,362)	USD (6,362)	Note
LTD. (CAYMAN)	LIMITED	Islands
PIOTEK HOLDING LIMITED	PIOTEK (H.K.) TRADING LIMITED	Hong Kong	Trading activities	USD 26	USD 26	200,000	100.00%	USD 2,439	USD (95)	USD (95)	Note

Pegavision Corporation	Aquamax Corporation	Taoyuan City	Selling Medical facility	\$40,000	\$40,000	4,000,000	100.00%	\$18,718	\$(18,684)	\$(18,684)	Note
Pegavision Corporation	PEGAVISION JAPAN INC. JAPAN		Selling Medical facility	JPY 9,900	JPY 9,900	198	100.00%	\$51,791	\$10,354	\$10,354	Note
Aquamax Corporation	Aquamax Vision Corporation U.S.A.		Selling Medical facility	USD 600	USD 600	6,000,000	100.00%	\$9,027	\$(5,777)	\$(5,777)	Note

Note: Transactions are eliminated when preparing the consolidated financial statements.

Note 1: The Company's original investment in Kinsus Investment Co., Ltd. was NT\$500,000 thousand. Kinsus Investment Co., Ltd. reduced capital by NT\$102,000 thousand to offset deficits in 2013,

And increased capital by NT\$602,000 thousand and NT\$600,000 thousand in 2016 and 2017, respectively. After the increases, the Company's investment amount increased to NT\$1,600,000 thousand.

Note 2:Kinsus Investment Co., Ltd. invested Pegavision Corporation in cost of NT\$286,418 thousand.

As Pegevision Corporation has become a listed company since October, 2019, Kinsus Investment Co., Ltd decreased its investment by NT\$33,963 thousand in selling 855 thousand shares.

Note 3: It includes the investment income accounted for using equity method of 148,622 thousand and the unrealized benefits on upstream transactions of 20,498 thousand.

Kinsus Interconnect Technology Corp. and Subsidiaries

Marketable Securities Held (Excluding Investments in Subsidiaries, Associates and Jointly Ventures)

As of June 30, 2021

Attachment 6

Guarantee, Pledge or Other Restricted Conditions Carrying (In Thousands of New Taiwan Dollars)

					As of June 30, 2021				Conditions
					Carrying				Carrying
Name of Held Company	Type and Name of Marketable Securities	Relationship with the Issuer	Financial Statement Account	Shares (Unit)	Amount	%	Fair Value	Shares	Amount	Note
Kinsus Investment Co., Ltd.	Money market funds:
	Taishin Ta Chong Money Market Fund Valuation adjustments of financial assets held for trading	-	Financial assets at fair value through profit or loss	829,070	\$11,315 571	-%	\$11,886	-	\$-
	Total				\$11,886
Pegavision Corporation	Money market funds:
	Yuanta Wan Tai Money Market Fund	-	Financial assets at fair value through profit or loss	16,871,168	\$257,494	-%	\$257,559	-	\$-
	Yuanta De-Li Money Market Fund	-	Financial assets at fair value through profit or loss	3,493,908	57,185	-%	57,493	-	-
	Valuation adjustments of financial assets held for trading				373
	Total				\$315,052		\$315,052		\$-
Kinsus Investment Co., Ltd.	Stocks:
	Yi-Shuo Creative Co., Ltd.	-	Measured at fair value through other comprehensive income	5,000,000	\$50,000	7.49%	\$50,000	-	\$-
	Li Chang Finery Inc	-	Measured at fair value through other comprehensive income	20,408	1,000	0.70%	1,000	-	-
	Total				\$51,000		\$51,000		\$-

Kinsus Interconnect Technology Corp. and Subsidiaries

Individual Securities acquired and disposed of with accumulated amount of least NT\$300 Million or 20% of The Paid-In Capital

For the six-month period ended June 30, 2021

Attachment 7

(In Thousands of New Taiwan Dollars)

		Financial Statement		Nature of		Beginning Balance		Acquisition			Disposal		Ending Balance
	Type and Name of Marketable											Gain/Loss on
Company Name	Securities	Account	Counter-party	Relationship	Shares/Units	Amount	Shares/Units	Amount	Shares/Units	Amount	Carrying Value	Disposal	Shares/Units	Amount
Pegavision Corporation Money Market Funds:	Yuanta Wan Tai Money Market Fund Financial assets at fair	value through profit or loss	-	-	33,387,514	\$509,270	22,213,531	\$339,000	38,729,877	\$591,000	\$590,776	\$224	16,871,168	\$257,494

Kinsus Interconnect Technology Corp. and Subsidiaries

Related Party Transactions with Purchase or Sales Amount of At least NT\$ 100 Million or 20% of the Paid-in Capital

For the six-month period ended June 30, 2021

Attachment 8

(In Thousands of US/NTD Dollars)

					Transaction Details		Abnormal Transaction		Notes/Accounts Payable or Receivable
		Nature of	Purchase/					Payment/ Collection			Note
Company Name Kinsus Interconnect	Related Party Kinsus Interconnect	Relationship Parent company	Sale Sales	Amount USD 51,180	% to Total 84.62%	Payment/ Collection Term Payment within 60 days from the end of delivery	Unit Price Specs of goods sold are different from others.	Term No non-related parties to be	Ending Balance Accounts receivable USD 19,564	% to Total 89.02%	Note
Technology Suzhou Corp.	Technology Corp.					month	Cannot be reasonably compared.	compared with.

Pegavision Corporation	Pegavision Japan Inc.	Subsidiary	Sales	\$873,930	36.62%	Payment within 90 days from the end of delivery month	Similar to those to third party customers.	Payment within 90 days from telegraphic transfer.	Accounts receivable \$227,399	24.14%	Note
									Contract liabilities \$(4,543)	(12.81)%	Note
Pegavision Corporation	Aquamax Corporation	Subsidiary	Sales	\$315,428	13.22%	Payment within 180 days from the end of delivery month	Similar to those to third party customers.	Payment within 90 days from telegraphic transfer.	Accounts receivable \$347,858	36.92%	Note

Note: Transactions are eliminated when preparing the consolidated financial statements.

Kinsus Interconnect Technology Corp. and Subsidiaries

Receivables from Related Parties of at Least NT\$ 100 Million or 20% of the Paid-in Capital

As of June 30, 2021

Attachment 9

(In Thousands of US/NTD Dollars)

					Overdue		Amount Received in
		Nature of		Turnover		Action
Company Name	Related Party	Relationship	Ending Balance	Ratio	Amount	Taken	Subsequent Periods	Loss Allowance
Kinsus Interconnect	Kinsus Interconnect	Parent company	USD 19,564	7.11	\$-	-	\$-	\$-
Technology Suzhou	Technology Corp.		(Note and Note 1 )
Corp.
Pegavision Corporation	Pegavision Japan Inc.	Subsidiary	\$227,399 (Note and Note 1 )	6.00	\$-	-	\$-	\$-
Pegavision Corporation	Aquamax Corporation	Subsidiary	\$347,858 (Note and Note 1 )	3.61	\$-	-	\$-	\$-

Note: Accounts receivable.

Note 1: Transactions are eliminated when preparing the consolidated financial statements.

English Translation of Consolidated Financial Statements Originally Issued in Chinese Kinsus Interconnect Technology Corp. and Subsidiaries

Intercompany Relationships and Significant Intercompany Transactions for the Six-month Period Ended June 30, 2021

				Attachment 10 (In Thousands of Foreign Currency / New Taiwan Dollars)
No.						Intercompany Transaction	Percentage to
			Nature of Relationship				Consolidated Net Revenue or Total
(Note 1)	Company Name 2021.01.01~2021.06.30	Counter-Party	(Note 2)	Financial Statement Account	Amount	Terms	Assets (Note 3)
0	Kinsus Interconnect Technology Corp.	KINSUS CORP. (USA)	1	Accrued expense	\$3,405	Payment within 30 days from the end of delivery month by TT	0.01%
0	Kinsus Interconnect Technology Corp.	Kinsus Interconnect Technology Suzhou Corp.	1	Accounts payable	\$517,800	Payment within 60 days from the end of delivery month	1.02%
0	Kinsus Interconnect Technology Corp.	Kinsus Interconnect Technology Suzhou Corp.	1	Other receivables	\$29,205	-	0.06%
0	Kinsus Interconnect Technology Corp.	Kinsus Interconnect Technology Suzhou Corp.	1	Purchase	\$1,436,089	Payment within 60 days from the end of delivery month	9.00%
0	Kinsus Interconnect Technology Corp.	KINSUS CORP. (USA)	1	Commission expense	\$20,397	Payment within 30 days from the end of delivery month by TT	0.13%
0	Kinsus Interconnect Technology Corp.	Kinsus Interconnect Technology Suzhou Corp.	1	Sales revenue	\$8,090	Payment within 30 days from the end of delivery month	0.05%
0	Kinsus Interconnect Technology Corp.	Kinsus Interconnect Technology Suzhou Corp.	1	Other income	\$361	-	-%
0	Kinsus Interconnect Technology Corp.	Piotek Computer (Suzhou) Co., Ltd.	1	Other income	\$119	-	-%
0	Kinsus Interconnect Technology Corp.	PIOTEK (H.K.) TRADING LIMITED	1	Other income	\$284	-	-%
1	Piotek Computer (Suzhou) Co., Ltd.	PIOTEK (H.K.) TRADING LIMITED	3	Sales revenue	USD 2,475	Payment within 60~90 days from the end of delivery month	0.43%
1	Piotek Computer (Suzhou) Co., Ltd.	PIOTEK (H.K.) TRADING LIMITED	3	Accounts receivable	USD 411	Payment within 60~90 days from the end of delivery month	0.02%
1	Piotek Computer (Suzhou) Co., Ltd.	Xiang-Shuo (Suzhou) Trading Limited	3	Payable to equipment suppliers	USD 2	-	-%
1	Piotek Computer (Suzhou) Co., Ltd.	Kinsus Interconnect Technology Suzhou Corp.	3	Other receivables	RMB 64	Payment within 60~90 days from the end of delivery month	-%
1	Piotek Computer (Suzhou) Co., Ltd.	Kinsus Interconnect Technology Suzhou Corp.	3	Accounts payable	RMB 3	Payment within 60~90 days from the end of delivery month	-%
1	Piotek Computer (Suzhou) Co., Ltd.	Kinsus Interconnect Technology Suzhou Corp.	3	Sales revenue	RMB 14	Payment within 60~90 days from the end of delivery month	-%
1	Piotek Computer (Suzhou) Co., Ltd.	Kinsus Interconnect Technology Suzhou Corp.	3	Purchase	RMB 11	Payment within 60~90 days from the end of delivery month	-%
2	Pegavision Corporation	Pegavision Japan Inc.	3	Sales revenue	\$873,930	Payment within 90 days from the end of delivery month	5.48%
2	Pegavision Corporation	Pegavision Japan Inc.	3	Accounts receivable	\$227,399	Payment within 90 days from the end of delivery month	0.45%
2	Pegavision Corporation	Pegavision Japan Inc.	3	Contract liabilities	\$4,543	-	0.01%
2	Pegavision Corporation	PEGAVISION CONTACT LENSES (SHANGHAI) CORPORATION	3	Sales revenue	\$6,964	Payment within 180 days from the end of delivery month	0.04%
2	Pegavision Corporation	PEGAVISION CONTACT LENSES (SHANGHAI) CORPORATION	3	Accounts receivable	\$2,537	Payment within 180 days from the end of delivery month	-%
2	Pegavision Corporation	Gemvision Technology (Zhejiang) Limited	3	Sales revenue	\$30,561	Payment within 180 days from the end of delivery month	0.19%
2	Pegavision Corporation	Gemvision Technology (Zhejiang) Limited	3	Accounts receivable	\$62,706	Payment within 180 days from the end of delivery month	0.12%
2	Pegavision Corporation	Aquamax Corporation	3	Sales revenue	\$315,428	Payment within 180 days from the end of delivery month	1.98%
2	Pegavision Corporation	Aquamax Corporation	3	Other operating income	\$83,527	Payment within 180 days from the end of delivery month	0.52%
2	Pegavision Corporation	Aquamax Corporation	3	Accounts receivable	\$347,858	Payment within 180 days from the end of delivery month	0.68%
2	Pegavision Corporation	Aquamax Corporation	3	Other receivables	\$619	Payment within 180 days from the end of delivery month	-%
2	Pegavision Corporation	Aquamax Corporation	3	Deposits received	\$4	-	-%
2	Pegavision Corporation	Aquamax Corporation	3	Rent revenue	\$8,715	10th of the month	0.05%
2	Pegavision Corporation	Aquamax Corporation	3	Other income	\$3	-	-%
3	PEGAVISION CONTACT LENSES (SHANGHAI) CORPORATION	Gemvision Technology (Zhejiang) Limited	3	Other operating income	\$13,053	-	0.08%
3	PEGAVISION CONTACT LENSES (SHANGHAI) CORPORATION	Gemvision Technology (Zhejiang) Limited	3	Accounts receivable	\$2,286	Payment within 180 days from the end of delivery month	-%

Note 1: Transaction information between Parent company and its subsidiaries should be disclosed by codes below:

(1) Parent company is coded "0".

(2) The subsidiaries are coded from "1" in the order presented in the table above.

Note 2: Relationship are divided into the following three types and the types are required to be indicated:

and based on interim accumulated amount to consolidated net revenue for income statement items.

(1) From the parent company to a subsidiary.

(2) From a subsidiary to the parent company.

(3) Between subsidiaries.

Note 3: Regarding the percentage of transaction amount to consolidated operating revenues or total assets, it is computed based on the ending balance to consolidated total assets for balance sheet items;

AI assistant

KINSUS — Interim / Quarterly Report 2021

52304_rns_2021-11-11_27cb7aad-bd07-4616-a1e5-3c2531425b4f.pdf

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

Consolidated Financial Statements

English Translation of Consolidated Financial Statements Originally Issued in Chinese Kinsus Interconnect Technology Corp. and Subsidiaries

For the six-month periods ended June 30, 2021 and 2020 (Reviewed but unaudited)

For the six-month periods ended June 30, 2021 and 2020 (Reviewed but unaudited)

1. HISTORY AND ORGANIZATION

2. DATE AND PROCEDURE OF AUTHORIZATION FOR FINANCIAL STATEMENTS ISSUANCE

3. NEWLY ISSUED OR REVISED STANDARDS AND INTERPRETATIONS

4. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

5. SIGNIFICANT ACCOUNTING JUDGMENTS, ESTIMATES AND ASSUMPTIONS

6. CONTENTS OF SIGNIFICANT ACCOUNTS

(5)Notes receivable

A.Accounts receivable, net

(7)Inventories

A. Details of inventory:

B. Investments in associates

(9) Property, plant and equipment

A. Property, plant and equipment for own-use

C. Details of property, plant & equipment and prepayment for machinery is as follows:

(10)Intangible assets

(11)Other non-current assets

(12)Short-term loans

(13)Other payable

(15)Refund liability

(16)Long-term loans

English Translation of Consolidated Financial Statements and Footnotes Originally Issued in Chinese Kinsus Interconnect Technology Corp.

(18)Post-employment benefits

Defined contribution plan

Defined benefits plan

(19)Equity

A. Common shares

B. Capital surplus

C. Treasury stock

(a)Earning distribution

(b)Dividend policies

(c)Legal reserve

(d)Special reserve

E. Non-controlling interests

(20)Share-based payment plans

(21)Sales

A. Disaggregation of revenue

(22)Expected credit losses (gains)

A. Group as a lessee

(a) Amounts recognized in the balance sheet

The carrying amount of right-of-use asset

(b) Income and costs relating to leasing activities

B. Group as a lessor

(25)Non-operating incomes and expenses

A. Interest incomes

B. Other incomes

C. Other gains and losses

D. Finance costs

(26)Components of other comprehensive income (OCI)

For the three-month period ended June 30, 2021

For the six-month period ended June 30, 2021

(27)Income tax

Income tax expense (benefit) recognized in profit or loss

B. The assessment of income tax return

(28)Earnings per share

B. Diluted earnings per share

Summarized Pegavision Corporation and its subsidiary cash flows information is as follows:

7. RELATED PARTY TRANSACTIONS

(1)Deal with related parties as of the end of the reporting period

(2)Significant transactions with related parties

A. Sales to

B. Lease-related parties

(a) Right-of-use asset

(b) Lease liability

(c) Lease payment (Rental expense)

(d) Interest expense

G. Other receivables

H. Refundable deposits

I. Accrued expenses

8. PLEDGED ASSETS

9. SIGNIFICANT CONTINGENCIES AND UNRECOGNIZED CONTRACT COMMITMENTS

10. SIGNIFICANT DISASTER LOSS

11. SIGNIFICANT SUBSEQUENT EVENT

KINSUS Interim / Quarterly Report 2021