LIEN CHANG ELECTRONIC ENTERPRISE CO., LTD. AND SUBSIDIARIES CONSOLIDATED FINANCIAL STATEMENTS AND INDEPENDENT AUDITORS' REPORT DECEMBER 31, 2020 AND 2019

For the convenience of readers and for information purpose only, the auditors' report and the accompanying financial statements have been translated into English from the original Chinese version prepared and used in the Republic of China. In the event of any discrepancy between the English version and the original Chinese version or any differences in the interpretation of the two versions, the Chinese-language auditors' report and financial statements shall prevail.

			December 31, 2020	December 31, 2019
	Assets	Notes	AMOUNT	%		AMOUNT	%
	Current assets
1100	Cash and cash equivalents	6(1)	\$ 677,466	30	\$	432,723	20
1110	Financial assets at fair value through	6(2)(18)
	profit or loss - current		11,224	-		38,936	2
1150	Notes receivable, net	6(4)	9,341	-		8,745	-
1170	Accounts receivable, net	6(4)	500,000	22		546,335	25
1180	Accounts receivable - related parties	7	9,062	-		14,675	1
1200	Other receivables		16,884	1		12,468	1
130X	Inventories	6(5)	460,984	20		517,360	23
1410	Prepayments		13,682	1		10,462	-
1460	Non-current assets or disposal groups	6(6)
	classified as held for sale, net		111,746	5		-	-
1470	Other current assets		1,877	-		2,263	-
11XX	Total current assets		1,812,266	79		1,583,967	72
	Non-current assets
1517	Financial assets at fair value through	6(3)
	other comprehensive income - non
	current		150,969	7		147,816	7
1600	Property, plant and equipment	6(7)	115,792	5		248,586	11
1755	Right-of-use assets	6(8)	26,388	1		33,028	2
1760	Investment property - net	6(9)	160,023	7		162,319	7
1780	Intangible assets		7,325	-		10,093	-
1840	Deferred income tax assets	6(21)	20,668	1		19,897	1
1900	Other non-current assets		4,046	-		4,003	-
15XX	Total non-current assets		485,211	21		625,742	28
1XXX	Total assets		\$ 2,297,477	100	\$	2,209,709	100

LIEN CHANG ELECTRONIC ENTERPRISE CO., LTD. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS DECEMBER 31, 2020 AND 2019

(Expressed in thousands of New Taiwan dollars)

(Continued)

				December 31, 2020		December 31, 2019
	Liabilities and Equity Current liabilities	Notes		AMOUNT	%	AMOUNT	%
2120	Financial liabilities at fair value	6(2)
	through profit or loss - current		\$	316	- \$	-	-
2150	Notes payable			1,755	-	1,849	-
2170	Accounts payable			741,662	32	687,119	31
2200	Other payables	6(10)		119,882	5	123,412	6
2230	Current income tax liabilities	6(21)		254	-	4,732	-
2280	Lease liabilities - current			7,597	-	7,427	-
2300	Other current liabilities			8,670	1	16,752	1
21XX	Total current liabilities			880,136	38	841,291	38
	Non-current liabilities
2570	Deferred income tax liabilities	6(21)		14,877	1	12,325	-
2580	Lease liabilities - non-current			13,089	1	19,683	1
2600	Other non-current liabilities	6(11)		12,627	-	20,095	1
25XX	Total non-current liabilities			40,593	2	52,103	2
2XXX	Total liabilities			920,729	40	893,394	40
	Equity
	Share capital	6(12)
3110	Common stock			1,109,270	48	1,109,270	50
	Capital surplus	6(13)
3200	Capital surplus			187,070	8	187,070	9
	Retained earnings	6(14)
3310	Legal reserve			191,368	8	191,368	9
3320	Special reserve			129,285	6	129,285	6
3350	Accumulated deficit		(	160,385) (	7) (	153,545) (	7)
	Other equity interest	6(15)
3400	Other equity interest		(	79,860) (	3) (	147,133) (	7)
3XXX	Total equity			1,376,748	60	1,316,315	60
	Significant event after the balance sheet	11
	date
3X2X	Total liabilities and equity		\$	2,297,477	100 \$	2,209,709	100

LIEN CHANG ELECTRONIC ENTERPRISE CO., LTD. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS DECEMBER 31, 2020 AND 2019

(Expressed in thousands of New Taiwan dollars)

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

LIEN CHANG ELECTRONIC ENTERPRISE CO., LTD. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME YEARS ENDED DECEMBER 31, 2020 AND 2019

(Expressed in thousands of New Taiwan dollars, except earnings per share amount)

				Year ended December 31
				2020			2019
	Items	Notes		AMOUNT	%		AMOUNT	%
4000	Operating revenue	6(16) and 7	\$	2,298,426	100	\$	2,967,216	100
5000	Operating costs	6(5)(19)(20)	(	2,007,667) (	88) (		2,656,543) (	90)
5900	Gross profit			290,759	12		310,673	10
6100	Operating expenses Selling expenses	6(19)(20)	(	131,942) (	6) (		197,893) (	7)
6200	General and administrative expenses		(	74,468) (	3) (		70,224) (	2)
6300	Research and development expenses		(	52,073) (	2) (		65,370) (	2)
6450	Reversal of impairment loss (impairment loss) determined in accordance with IFRS 9	12(2)		2,061	-	(	303)	-
6000	Total operating expenses		(	256,422) (	11) (		333,790) (	11)
6900	Operating profit (loss)			34,337	1	(	23,117) (	1)
	Non-operating income and expenses
7100	Interest income			699	-		2,013	-
7010	Other income	6(9)(17) and 7		27,645	1		34,684	1
7020	Other gains and losses	6(2)(18)	(	15,780)	-		16,670	1
7050	Finance costs	6(8)	(	379)	-	(	463)	-
7000	Total non-operating income and
	expenses			12,185	1		52,904	2
7900	Profit before income tax			46,522	2		29,787	1
7950	Income tax benefit (expense)	6(21)		253	-	(	20,915)	-
8200	Profit for the year		\$	46,775	2	\$	8,872	1
	Components of other comprehensive income that will not be reclassified to profit or loss
8311 8316	Remeasurement of defined benefit plan Unrealized gain on investments at fair value through other comprehensive	6(11) 6(3)(15)	\$	150	-	\$	707	-
8349	income Income tax related to components of other comprehensive income that will not	6(21)		3,168	-		35,142	1
8310	be reclassified to profit or loss Other comprehensive income that will		(	30)	-	(	141)	-
	not be reclassified to profit or loss			3,288	-		35,708	1
	Components of other comprehensive income that will be reclassified to profit or loss
8361 8399	Financial statements translation differences of foreign operations Income tax relating to the components of	6(15) 6(15)(21)		12,922	1	(	35,434) (	1)
8360	other comprehensive income that will be reclassified to profit or loss Other comprehensive income (loss)		(	2,552)	-		7,087	-
	that will be reclassified to profit or loss			10,370	1	(	28,347) (	1)
8300	Total other comprehensive income for the year		\$	13,658	1	\$	7,361	-
8500	Total comprehensive income for the year		\$	60,433	3	\$	16,233	1
	Profit attributable to:
8610	Owners of the parent Comprehensive income attributable to:		\$	46,775	2	\$	8,872	1
8710	Owners of the parent		\$	60,433	3	\$	16,233	1
9750	Basic earnings per share	6(22)	\$		0.42	\$		0.08
9850	Diluted earnings per share	6(22)	\$		0.42	\$		0.08

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

LIEN CHANG ELECTRONIC ENTERPRISE CO., LTD. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY YEARS ENDED DECEMBER 31, 2020 AND 2019 (Expressed in thousands of New Taiwan dollars)

			Equity attributable to owners of the parent
				Capital Reserves		Retained Earnings		Other Equity Interest
	Notes	Share capital - common stock	Share premium	Treasury stock transactions	Legal reserve	Special reserve	Accumulated deficit	Financial statements translation differences of foreign operations	Unrealised gains (losses) on financial assets at fair value through other comprehensive income	Total equity
2019
Balance at January 1, 2019		\$ 1,109,270	\$ 121,884	\$ 65,186	\$ 191,368	\$ 129,285	(\$ 162,983 )	(\$ 73,643 )	(\$ 80,285 )	\$ 1,300,082
Profit for 2019	6(22)	-	-	-	-	-	8,872	-	-	8,872
Other comprehensive income (loss) for 2019	6(15)	-	-	-	-	-	566	( 28,347 )	35,142	7,361
Total comprehensive income		-	-	-	-	-	9,438	( 28,347 )	35,142	16,233
Balance at December 31, 2019		\$ 1,109,270	\$ 121,884	\$ 65,186	\$ 191,368	\$ 129,285	(\$ 153,545 )	(\$ 101,990 )	(\$ 45,143 )	\$ 1,316,315
2020
Balance at January 1, 2020		\$ 1,109,270	\$ 121,884	\$ 65,186	\$ 191,368	\$ 129,285	(\$ 153,545 )	(\$ 101,990 )	(\$ 45,143 )	\$ 1,316,315
Profit for 2020	6(22)	-	-	-	-	-	46,775	-	-	46,775
Other comprehensive income for 2020	6(15)	-	-	-	-	-	120	10,370	3,168	13,658
Total comprehensive income		-	-	-	-	-	46,895	10,370	3,168	60,433
Disposals of financial assets at fair value through other comprehensive income	6(3)	-	-	-	-	-	( 53,735 )	-	53,735	-
Balance at December 31, 2020		\$ 1,109,270	\$ 121,884	\$ 65,186	\$ 191,368	\$ 129,285	(\$ 160,385 )	(\$ 91,620 )	\$ 11,760	\$ 1,376,748

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

LIEN CHANG ELECTRONIC ENTERPRISE CO., LTD. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS YEARS ENDED DECEMBER 31, 2020 AND 2019

(Expressed in thousands of New Taiwan dollars)

	Notes		2020		2019
CASH FLOWS FROM OPERATING ACTIVITIES
Profit before tax		\$	46,522	\$	29,787
Adjustments
Adjustments to reconcile profit (loss)
Depreciation	6(7)(8)(19)		37,774		40,211
Amortization	6(19)		4,348		4,642
Depreciation of investment property	6(9)		2,296		2,296
(Reversal of impairment loss) impairment loss	12(2)
determined in accordance with IFRS 9		(	2,061 )		303
Net (gain) loss on financial assets at fair value	6(18)
through profit or loss		(	38,799 )		4,719
Interest expense			379		463
Interest income		(	699 )	(	2,013 )
Dividend income	6(17)	(	5,254 )	(	6,484 )
Loss on disposal of property, plant and	6(18)
equipment			19		1,210
Loss on decline (gain from price recovery) in	6(5)
market value of inventory			11,453	(	23,329 )
Changes in operating assets and liabilities
Changes in operating assets
Financial assets at fair value through profit or
loss			66,827		48,420
Notes receivable		(	596 )	(	8,745 )
Accounts receivable			48,807	(	4,359 )
Accounts receivable - related parties			5,613	(	6,857 )
Other receivables Inventories		(	4,416 )		1,637
Prepayments		(	44,373 3,220 )	( (	5,257 ) 2,409 )
Other current assets			386	(	1,967 )
Changes in operating liabilities
Notes payable		(	94 )	(	216 )
Accounts payable			54,543	(	64,834 )
Other payables		(	3,003 )	(	29,148 )
Other current liabilities		(	8,082 )	(	6,086 )
Other non-current liabilities		(	7,318 )	(	4,885 )
Cash inflow (outflow) generated from operations			249,798	(	32,901 )
Interest received			699		1,469
Interest paid		(	379 )	(	463 )
Income taxes paid		(	4,579 )	(	24,234 )
Dividends received			5,254		6,484
Net cash flows from (used in) operating
activities			250,793	(	49,645 )

(Continued)

LIEN CHANG ELECTRONIC ENTERPRISE CO., LTD. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS YEARS ENDED DECEMBER 31, 2020 AND 2019 (Expressed in thousands of New Taiwan dollars)

Notes 2020 2019 CASH FLOWS FROM INVESTING ACTIVITIES Acquisition of property, plant and equipment 6(23) (\$ 6,189 ) (\$ 13,313 ) Proceeds from disposals of property, plant and equipment 77 446 Increase in intangible assets ( 880 ) ( 2,393 ) Increase in guarantee deposits paid - ( 1,520 ) Gain on disposal of financial assets at fair value through other comprehensive income 6(3) 15 - Net cash flows used in investing activities ( 6,977 ) ( 16,780 ) CASH FLOWS FROM FINANCING ACTIVITIES Payment of lease liabilities ( 8,021 ) ( 7,944 ) Net cash flows used in financing activities ( 8,021 ) ( 7,944 ) Effect of exchange rate changes 8,948 ( 25,769 ) Net increase (decrease) in cash and cash equivalents 244,743 ( 100,138 ) Cash and cash equivalents at beginning of year 432,723 532,861 Cash and cash equivalents at end of year \$ 677,466 \$ 432,723

LIEN CHANG ELECTRONIC ENTERPRISE CO., LTD. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEARS ENDED DECEMBER 31, 2020 AND 2019

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

1. HISTORY AND ORGANIZATION

Lien Chang Electronic Enterprise Co., Ltd. (the "Company") was established in the Republic of China (R.O.C.). The Company and its subsidiaries (collectively referred herein as the "Group") are primarily engaged in manufacture and trading of power supply units.

2. THE DATE OF AUTHORIZATION FOR ISSUANCE OF THE CONSOLIDATED FINANCIAL STATEMENTS AND PROCEDURES FOR AUTHORIZATION

These consolidated financial statements were authorized for issuance by the Board of Directors on March 30, 2021.

3. APPLICATION OF NEW STANDARDS, AMENDMENTS AND INTERPRETATIONS

(1) Effect of the adoption of new issuances of or amendments to International Financial Reporting Standards ("IFRS") as endorsed by the Financial Supervisory Commission ("FSC")

New standards, interpretations and amendments endorsed by the FSC effective from 2020 are as follows:

	Effective date by
	International Accounting
New Standards, Interpretations and Amendments	Standards Board
Amendments to IAS 1 and IAS 8, 'Disclosure initiative-definition	January 1, 2020
of material'
Amendments to IFRS 3, 'Definition of a business'	January 1, 2020
Amendments to IFRS 9, IAS 39 and IFRS 7, 'Interest rate	January 1, 2020
benchmark reform'
Amendment to IFRS 16, 'Covid-19-related rent concessions'	June 1, 2020 (Note)

Note: Earlier application from January 1, 2020 is allowed by the FSC.

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

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

New standards, interpretations and amendments endorsed by the FSC effective from 2021 are as follows:

	Effective date by
	International Accounting
New Standards, Interpretations and Amendments	Standards Board
Amendments to IFRS 4, 'Extension of the temporary exemption	January 1, 2021
from applying IFRS 9'
Amendments to IFRS 9, IAS 39, IFRS 7, IFRS 4 and IFRS 16,	January 1, 2021
'Interest Rate Benchmark Reform - Phase 2'

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

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

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

	Effective date by
	International Accounting
New Standards, Interpretations and Amendments	Standards Board
Amendments to IFRS 3, 'Reference to the conceptual framework'	January 1, 2022
Amendments to IFRS 10 and IAS 28, 'Sale or contribution of assets	To be determined by
between an investor and its associate or joint venture'	International Accounting
	Standards Board
IFRS 17, 'Insurance contracts'	January 1, 2023
Amendments to IFRS 17, 'Insurance contracts'	January 1, 2023
Amendments to IAS 1, 'Classification of liabilities as current or non	January 1, 2023
current' Amendments to IAS 1, 'Disclosure of accounting policies'	January 1, 2023
Amendments to IAS 8, 'Definition of accounting estimates'	January 1, 2023
Amendments to IAS 16, 'Property, plant and equipment: proceeds	January 1, 2022
before intended use'
Amendments to IAS 37, 'Onerous contracts—cost of fulfilling a	January 1, 2022
contract' Annual improvements to IFRS Standards 2018–2020	January 1, 2022

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

4. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The principal accounting policies applied in the preparation of these consolidated financial statements are set out below. These policies have been consistently applied to all the periods presented, unless otherwise stated.

(1) Compliance statement

The consolidated financial statements of the Group have been prepared in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers, International Financial Reporting Standards, International Accounting Standards, IFRIC Interpretations, and SIC Interpretations as endorsed by the FSC (collectively referred herein as the "IFRSs").

(2) Basis of preparation

A. Except for the following items, the consolidated financial statements have been prepared under the historical cost convention:
(a) Financial assets and financial liabilities (including derivative instruments) at fair value through profit or loss.
(b) Financial assets and liabilities at fair value through other comprehensive income.
(c) Defined benefit liabilities recognized based on the net amount of pension fund assets less present value of defined benefit obligation.
B. The preparation of financial statements in conformity with IFRSs requires the use of certain critical accounting estimates. It also requires management to exercise its judgement in the process of applying the Group's accounting policies. The areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates are significant to the consolidated financial statements are disclosed in Note 5.

(3) Basis of consolidation

A. Basis for preparation of consolidated financial statements:
(a) All subsidiaries are included in the Group's consolidated financial statements. Subsidiaries are all entities (including structured entities) controlled by the Group. The Group controls an entity when the Group is exposed, or has rights, to variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity. Consolidation of subsidiaries begins from the date the Group obtains control of the subsidiaries and ceases when the Group loses control of the subsidiaries.
(b) Inter-company transactions, balances and unrealized gains or losses on transactions between companies within the Group are eliminated. Accounting policies of subsidiaries have been adjusted where necessary to ensure consistency with the policies adopted by the Group.
B. Subsidiaries included in the consolidated financial statements:

			Ownership (%)
Name of investor	Name of subsidiary	Main business activities	December 31, 2020	December 31, 2019
The Company	Kenmao Investment Corp.	Holding company	100%	100%
The Company	Kenmao International (Pte.) Ltd.	Holding company	84.97%	84.97%
Kenmao Investment Corp.	Kenmao International (Pte.) Ltd.	Holding company	15.03%	15.03%
Kenmao International (Pte.) Ltd.	Genmao Eletronics (Suzhao) Co., Ltd.	Manufacturing and sales of power supply	100%	100%

C. Subsidiaries not included in the consolidated financial statements: None.
D. Adjustments for subsidiaries with different balance sheet dates: None.
E. Significant restrictions: None.
F. Subsidiaries that have non-controlling interests that are material to the Group: None.

(4) Foreign currency translation

Items included in the financial statements of each of the Group's entities are measured using the currency of the primary economic environment in which the entity operates (the "functional currency"). The consolidated financial statements are presented in New Taiwan Dollars, which is the Company's functional and the Group's presentation currency.

A. Foreign currency transactions and balances
(a) Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the dates of the transactions or valuation where items are remeasured. Foreign exchange gains and losses resulting from the settlement of such transactions are recognized in profit or loss in the period in which they arise.
(b) Monetary assets and liabilities denominated in foreign currencies at the period end are retranslated at the exchange rates prevailing at the balance sheet date. Exchange differences arising upon re-translation at the balance sheet date are recognized in profit or loss.
(c) Non-monetary assets and liabilities denominated in foreign currencies held at fair value through profit or loss are re-translated at the exchange rates prevailing at the balance sheet date; their translation differences are recognized in profit or loss. Non-monetary assets and liabilities denominated in foreign currencies held at fair value through other comprehensive income are re-translated at the exchange rates prevailing at the balance sheet date; their translation differences are recognized in other comprehensive income. However, nonmonetary assets and liabilities denominated in foreign currencies that are not measured at fair value are translated using the historical exchange rates at the dates of the initial transactions.
(d) All foreign exchange gains and losses are presented in the statement of comprehensive income within 'other gains and losses'.
B. Translation of foreign operations

The operating results and financial position of all the group entities, associates and joint arrangements that have a functional currency different from the presentation currency are translated into the presentation currency as follows:

(a) Assets and liabilities for each balance sheet presented are translated at the closing exchange rate at the date of that balance sheet;

(b) Income and expenses for each statement of comprehensive income are translated at average exchange rates of that period; and
(c) All resulting exchange differences are recognized in other comprehensive income.

(5) Classification of current and non-current items

A. Assets that meet one of the following criteria are classified as current assets:
(a) Assets arising from operating activities that are expected to be realized, or are intended to be sold or consumed within the normal operating cycle;
(b) Assets held mainly for trading purposes;
(c) Assets that are expected to be realized within twelve months from the balance sheet date;
(d) Cash and cash equivalents, excluding restricted cash and cash equivalents and those that are to be exchanged or used to settle liabilities more than twelve months after the balance sheet date.

Otherwise they are classified as non-current assets.

B. Liabilities that meet one of the following criteria are classified as current liabilities:
(a) Liabilities that are expected to be settled within the normal operating cycle;
(b) Liabilities arising mainly from trading activities;
(c) Liabilities that are to be settled within twelve months from the balance sheet date;
(d) Liabilities for which the repayment date cannot be extended unconditionally to more than twelve months after the balance sheet date. Terms of a liability that could, at the option of the counterparty, result in its settlement by the issue of equity instruments do not affect its classification.

Otherwise they are classified as non-current liabilities.

(6) Cash equivalents

Cash equivalents refer to short-term, highly liquid investments that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value. Time deposits that meet the definition above and are held for the purpose of meeting short-term cash commitments in operations are classified as cash equivalents.

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

A. Financial assets at fair value through profit or loss are financial assets that are not measured at amortized cost or fair value through other comprehensive income.

B. On a regular way purchase or sale basis, financial assets at fair value through profit or loss are recognized and derecognized using trade date accounting.
C. At initial recognition, the Group measures the financial assets at fair value and recognizes the transaction costs in profit or loss. The Group subsequently measures the financial assets at fair value, and recognizes the gain or loss in profit or loss.
D. The Group recognizes the dividend income when the right to receive payment is established, future economic benefits associated with the dividend will flow to the Group and the amount of the dividend can be measured reliably.
(8) Financial assets at fair value through other comprehensive income
A. Financial assets at fair value through other comprehensive income comprise equity securities which are not held for trading, and for which the Group has made an irrevocable election at initial recognition to recognize changes in fair value in other comprehensive income and debt instruments which meet all of the following criteria:
- (a) The objective of the Group's business model is achieved both by collecting contractual cash flows and selling financial assets; and
- (b) The assets' contractual cash flows represent solely payments of principal and interest.
B. On a regular way purchase or sale basis, financial assets at fair value through other comprehensive income are recognized and derecognized using trade date accounting.
C. At initial recognition, the Group measures the financial assets at fair value plus transaction costs. The Group subsequently measures the financial assets at fair value:

The changes in fair value of equity investments that were recognized in other comprehensive income are reclassified to retained earnings and are not reclassified to profit or loss following the derecognition of the investment. Dividends are recognized as revenue when the right to receive payment is established, future economic benefits associated with the dividend will flow to the Group and the amount of the dividend can be measured reliably.

(9) Accounts and notes receivable
A. Accounts and notes receivable entitle the Group a legal right to receive consideration in exchange for transferred goods or rendered services.
B. The short-term accounts and notes receivable without bearing interest are subsequently measured at initial invoice amount as the effect of discounting is immaterial.

(10) Impairment of financial assets

For debt instruments measured at fair value through other comprehensive income and financial assets at amortized cost including accounts receivable that have a significant financing component, at each reporting date, the Group recognizes the impairment provision for 12 months expected credit losses if there has not been a significant increase in credit risk since initial recognition or recognizes the impairment provision for the lifetime expected credit losses (ECLs) if such credit risk has increased since initial recognition after taking into consideration all reasonable and verifiable information that includes forecasts. On the other hand, for accounts receivable or contract assets that do not contain a significant financing component, the Group recognizes the impairment provision for lifetime ECLs.

(11) Derecognition of financial assets

The Group derecognizes a financial asset when the contractual rights to receive the cash flows from the financial asset expire.

(12) Leasing arrangements (lessor) - operating leases

Lease income from an operating lease (net of any incentives given to the lessee) is recognized in profit or loss on a straight-line basis over the lease term.

(13) Inventories

Inventories are stated at the lower of cost and net realizable value. Cost is determined using the weighted-average method. The cost of finished goods and work in progress comprises raw materials, direct labour, other direct costs and related production overheads (allocated based on normal operating capacity). It excludes borrowing costs. The item by item approach is used in applying the lower of cost and net realizable value. Net realizable value is the estimated selling price in the ordinary course of business, less the estimated cost of completion and applicable variable selling expenses.

(14) Non-current assets (or disposal groups) held for sale

Non-current assets (or disposal groups) are classified as assets held for sale when their carrying amount is to be recovered principally through a sale transaction rather than through continuing use, and a sale is considered highly probable. They are stated at the lower of carrying amount and fair value less costs to sell.

(15) Property, plant and equipment

A. Property, plant and equipment are initially recorded at cost. Borrowing costs incurred during the construction period are capitalized.
B. Subsequent costs are included in the asset's carrying amount or recognized as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the Group and the cost of the item can be measured reliably. The carrying amount of

the replaced part is derecognized. All other repairs and maintenance are charged to profit or loss during the financial period in which they are incurred.

C. Land is not depreciated. Other property, plant and equipment apply cost model and are depreciated using the straight-line method to allocate their cost over their estimated useful lives. Each part of an item of property, plant, and equipment with a cost that is significant in relation to the total cost of the item must be depreciated separately.
D. The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted if appropriate, at each financial year-end. If expectations for the assets' residual values and useful lives differ from previous estimates or the patterns of consumption of the assets' future economic benefits embodied in the assets have changed significantly, any change is accounted for as a change in estimate under IAS 8, 'Accounting Policies, Changes in Accounting Estimates and Errors', from the date of the change. The estimated useful lives of property, plant and equipment are as follows:

Buildings and structures	5 ~ 20 years
Machinery and equipment	2 ~ 20 years
Transportation equipment	5 years
Office equipment	3 ~ 10 years
Leasehold improvements	3 ~ 5 years
Other equipment	2 ~ 8 years

(16) Leasing arrangements (lessee) - right-of-use assets/ lease liabilities

A. Leases are recognized as a right-of-use asset and a corresponding lease liability at the date at which the leased asset is available for use by the Group. For short-term leases or leases of lowvalue assets, lease payments are recognized as an expense on a straight-line basis over the lease term.
B. Lease liabilities include the net present value of the remaining lease payments at the commencement date, discounted using the incremental borrowing interest rate. Lease payments are comprised of fixed payments, less any lease incentives receivable. The Group subsequently measures the lease liability at amortized cost using the interest method and recognises interest expense over the lease term. The lease liability is remeasured and the amount of remeasurement is recognized as an adjustment to the right-of-use asset when there are changes in the lease term or lease payments and such changes do not arise from contract modifications.
C. At the commencement date, the right-of-use asset is stated at cost comprising the following:
(a) The amount of the initial measurement of lease liability;
(b) Any lease payments made at or before the commencement date; and
(c) Any initial direct costs incurred by the lessee.

The right-of-use asset is measured subsequently using the cost model and is depreciated from the commencement date to the earlier of the end of the asset's useful life or the end of the lease term. When the lease liability is remeasured, the amount of remeasurement is recognized as an adjustment to the right-of-use asset.

(17) Investment property

An investment property is stated initially at its cost and measured subsequently using the cost model. Except for land, investment property is depreciated on a straight-line basis over its estimated useful life of 15 ~ 45 years.

(18) Intangible assets

Computer software is stated at cost and amortized on a straight-line basis over its estimated useful life of 3 to 10 years.

(19) Impairment of non-financial assets

The Group assesses at each balance sheet date the recoverable amounts of those assets where there is an indication that they are impaired. An impairment loss is recognized for the amount by which the asset's carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset's fair value less costs to sell or value in use. When the circumstances or reasons for recognizing impairment loss for an asset in prior years no longer exist or diminish, the impairment loss is reversed. The increased carrying amount due to reversal should not be more than what the depreciated or amortized historical cost would have been if the impairment had not been recognized.

(20) Notes and accounts payable

A. Accounts payable are liabilities for purchases of raw materials, goods or services and notes payable are those resulting from operating and non-operating activities.

The Group derecognises a financial asset when the contractual rights to receive the cash flows from the financial asset expire.

B. The short-term notes and accounts payable without bearing interest are subsequently measured at initial invoice amount as the effect of discounting is immaterial.

(21) Derecognition of financial liabilities

A financial liability is derecognized when the obligation specified in the contract is either discharged or cancelled or expires.

(22) Financial liabilities at fair value through profit or loss

A. Financial liabilities are classified in this category of held for trading if acquired principally for the purpose of repurchasing in the short-term. Derivatives are also categorized as financial liabilities held for trading unless they are designated as hedges.

B. At initial recognition, the Group measures the financial liabilities at fair value. All related transaction costs are recognized in profit or loss. The Group subsequently measures these financial liabilities at fair value with any gain or loss recognized in profit or loss.

(23) Non-hedging and embedded derivatives

Non-hedging derivatives are initially recognized at fair value on the date a derivative contract is entered into and recorded as financial assets or financial liabilities at fair value through profit or loss. They are subsequently remeasured at fair value and the gains or losses are recognized in profit or loss.

(24) Employee benefits

A. Short-term employee benefits

Short-term employee benefits are measured at the undiscounted amount of the benefits expected to be paid in respect of service rendered by employees in a period and should be recognized as expense in that period when the employees render service.

B. Pensions
(a) Defined contribution plans

For defined contribution plans, the contributions are recognized as pension expense when they are due on an accrual basis. Prepaid contributions are recognized as an asset to the extent of a cash refund or a reduction in the future payments.

(b) Defined benefit plans
i. Net obligation under a defined benefit plan is defined as the present value of an amount of pension benefits that employees will receive on retirement for their services with the Group in current period or prior periods. The liability recognized in the balance sheet in respect of defined benefit pension plans is the present value of the defined benefit obligation at the balance sheet date less the fair value of plan assets. The net defined benefit obligation is calculated annually by independent actuaries using the projected unit credit method. The rate used to discount is determined by using interest rates of government bonds at the balance sheet date.
ii. Remeasurements arising on defined benefit plans are recognized in other comprehensive income in the period in which they arise and are recorded as retained earnings.
iii. Past service costs are recognized immediately in profit or loss.
C. Employees' compensation and directors' and supervisors' remuneration

Employees' compensation and directors' and supervisors' remuneration are recognized as expense and liability, provided that such recognition is required under legal or constructive obligation and those amounts can be reliably estimated. Any difference between the resolved amounts and the subsequently actual distributed amounts is accounted for as changes in estimates.

(25) Income tax

A. The tax expense for the period comprises current and deferred tax. Tax is recognized in profit or loss, except to the extent that it relates to items recognized in other comprehensive income or items recognized directly in equity, in which cases the tax is recognized in other comprehensive income or equity.
B. The current income tax expense is calculated on the basis of the tax laws enacted or substantively enacted at the balance sheet date in the countries where the Company and its subsidiaries operate and generate taxable income. Management periodically evaluates positions taken in tax returns with respect to situations in accordance with applicable tax regulations. It establishes provisions where appropriate based on the amounts expected to be paid to the tax authorities. An additional tax is levied on the unappropriated retained earnings and is recorded as income tax expense in the year the stockholders resolve to retain the earnings.
C. Deferred tax is recognized, using the balance sheet liability method, on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the consolidated balance sheet. However, the deferred tax is not accounted for if it arises from initial recognition of goodwill or of an asset or liability in a transaction other than a business combination that at the time of the transaction affects neither accounting nor taxable profit or loss. Deferred tax is provided on temporary differences arising on investments in subsidiaries, except where the timing of the reversal of the temporary difference is controlled by the Group and it is probable that the temporary difference will not reverse in the foreseeable future. Deferred tax is determined using tax rates (and laws) that have been enacted or substantially enacted by the balance sheet date and are expected to apply when the related deferred tax asset is realized or the deferred tax liability is settled.
D. Deferred tax assets are recognized only to the extent that it is probable that future taxable profit will be available against which the temporary differences can be utilized. At each balance sheet date, unrecognized and recognized deferred tax assets are reassessed.
E. Current income tax assets and liabilities are offset and the net amount reported in the balance sheet when there is a legally enforceable right to offset the recognized amounts and there is an intention to settle on a net basis or realize the asset and settle the liability simultaneously. Deferred tax assets and liabilities are offset on the balance sheet when the entity has the legally enforceable right to offset current tax assets against current tax liabilities and they are levied by the same taxation authority on either the same entity or different entities that intend to settle on a net basis or realize the asset and settle the liability simultaneously.

(26) Share capital

Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of new shares or stock options are shown in equity as a deduction, net of tax, from the proceeds.

(27) Dividends

Dividends are recorded in the Company's financial statements in the period in which they are resolved by the Company's shareholders. Cash dividends are recorded as liabilities; stock dividends are recorded as stock dividends to be distributed and are reclassified to ordinary shares on the effective date of new shares issuance.

(28) Revenue recognition

Sales of goods

A. The Group manufactures and sells power supply unit products. Sales are recognized when control of the products has transferred, being when the products are delivered to the customer, the customer has full discretion over the channel and price to sell the products, and there is no unfulfilled obligation that could affect the customer's acceptance of the products. Delivery occurs when the products have been shipped to the specific location, the risks of obsolescence and loss have been transferred to the customer, and either the customer has accepted the products in accordance with the sales contract, or the Group has objective evidence that all criteria for acceptance have been satisfied.
B. The power supply unit product is often sold with volume discounts based on aggregate sales over a 12-month period. Revenue from these sales is recognized based on the price specified in the contract, net of the estimated volume discounts and allowances. Accumulated experience is used to estimate and provide for the volume discounts and allowances, using the expected value method, and revenue is only recognized to the extent that it is highly probable that a significant reversal will not occur. The estimation is subject to an assessment at each reporting date. A refund liability is recognized for expected volume discounts and allowances payable to customers in relation to sales made until the end of the reporting period. The sales are usually made with a credit term of 60-120 days after the goods are shipped. As the time interval between the transfer of committed goods or service and the payment of customer does not exceed one year, the Group does not adjust the transaction price to reflect the time value of money.
C. A receivable is recognized when the goods are delivered as this is the point in time that the consideration is unconditional because only the passage of time is required before the payment is due.

(29) Operating segments

Operating segments are reported in a manner consistent with the internal reporting provided to the Chief Operating Decision-Maker. The Group's Chief Operating Decision-Maker, who is responsible for allocating resources and assessing performance of the operating segments, has been identified as the Board of Directors that makes strategic decisions.

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

The preparation of these consolidated financial statements requires management to make critical judgements in applying the Group's accounting policies and make critical assumptions and estimates concerning future events. Assumptions and estimates may differ from the actual results and are continually evaluated and adjusted based on historical experience and other factors. Such assumptions and estimates have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year; and the related information is addressed below:

(1) Critical judgements in applying the Group's accounting policies

None.

(2) Critical accounting estimates and assumptions

Evaluation of inventories

A. As inventories are stated at the lower of cost and net realizable value, the Group must determine the net realizable value of inventories on balance sheet date using judgements and estimates. Due to the rapid technology innovation, the Group evaluates the amounts of normal inventory consumption, obsolete inventories or inventories without market selling value on balance sheet date, and writes down the cost of inventories to the net realizable value. Such an evaluation of inventories is principally based on the demand for the products within the specified period in the future. Therefore, there might be material changes to the evaluation.
B. As of December 31, 2020, the carrying amount of inventories was \$460,984.

6. DETAILS OF SIGNIFICANT ACCOUNTS

(1) Cash and cash equivalents

	December 31, 2020		December 31, 2019
Cash on hand	\$	65	\$	288
Checking accounts and demand deposits		625,023		432,435
Time deposits		52,378		-
	\$	677,466	\$	432,723

A. The Group transacts with a variety of financial institutions all with high credit quality to disperse credit risk, so it expects that the probability of counterparty default is remote.
B. The Group has no cash and cash equivalents pledged to others.

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

Item		December 31, 2020		December 31, 2019
Financial assets mandatorily measured at fair
value through profit or loss
Funds beneficiary certificates	\$	-	\$	33,607
Derivatives		11,224		5,108
		11,224		38,715
Valuation adjustment		-		221
	\$	11,224	\$	38,936
Financial liabilities mandatorily measured at fair
value through profit or loss
Derivatives	\$	316	\$	-

A. Amounts recognized in profit or loss in relation to financial assets/ liabilities at fair value through profit or loss are listed below:

	Years ended December 31,
		2020		2019
Financial assets mandatorily measured at
fair value through profit or loss
Funds beneficiary certificates	\$	28	\$	321
Derivatives		48,810	(	5,040)
		48,838	(	4,719)
Financial liabilities mandatorily measured at
fair value through profit or loss
Derivatives	(	10,039)		-
	\$	38,799	(\$	4,719)

B. The Group entered into contracts relating to derivative financial assets which were not accounted for under hedge accounting. The information is listed below:

	December 31, 2020
	Contract amount
Derivative financial assets/liabilities	(notional principal)	Contract period
Current items:
Forward exchange contracts- RMB/USD	USD 23,000	2020.10.12~2021.3.15
Forward exchange contracts- TWD/USD	USD 1,000	2020.12.10~2021.2.2

	December 31, 2020
	Contract amount
Derivative financial assets/liabilities	(notional principal)	Contract period
Current items:
Forward exchange contracts- RMB/USD	USD 17,000	2019.11.12~2020.4.24

The Group entered into forward foreign exchange contracts to hedge exchange rate risk of export proceeds. However, these forward foreign exchange contracts are not accounted for under hedge accounting.

C. The Group has no financial assets at fair value through profit or loss pledged to others.

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

Items	December 31, 2020	December 31, 2019
Non-current items:
Equity instruments
Listed and OTC stocks	\$ 125,870	\$ 125,870
Unlisted and non-OTC stocks	13,340	13,340
	139,210	139,210
Valuation adjustment	11,759	8,606
	\$ 150,969	\$ 147,816

A. The Group has elected to classify equity investments that are considered to be strategic investments as financial assets at fair value through other comprehensive income. The fair value of such investments amounted to \$150,969 and \$147,816 as at December 31, 2020 and 2019, respectively.
B. The investee, Teco Nanotech Co., Ltd., was liquidated on December 11, 2019. The Group received the residual assets of \$15 on April 30, 2020. As the Group made full provision for impairment of such investment in previous years, the Group reversed impairment loss at an amount of residual value distributed from the liquidation and transferred the impairment loss of \$53,735, which was recognised in other equity, to retained earnings.
C. Amounts recognized in profit or loss and other comprehensive income in relation to the financial assets at fair value through other comprehensive income are listed below:

	Years ended December 31,
	2020	2019
Equity instruments at fair value through other
comprehensive income
Fair value change recognized in other
comprehensive income	\$ 3,168	\$ 35,142

D. The Group has no financial assets at fair value through other comprehensive income pledged to others.

(4) Notes and accounts receivable

		December 31, 2020	December 31, 2019
Notes receivable	\$	9,341	\$	8,745
Accounts receivable		501,119		549,926
Less: Allowance for uncollectible accounts	(	1,119)	(	3,591)
		500,000		546,335
	\$	509,341	\$	555,080

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

	December 31, 2020	December 31, 2019
Not past due	\$	481,576	\$	547,508
Up to 30 days		18,528		7,141
31 to 60 days		-		758
61 to 90 days		18		128
Over 90 days		997		3,136
	\$	501,119	\$	558,671

The above ageing analysis was based on past due date.

B. As of December 31, 2020 and 2019, notes and accounts receivable were all from contracts with customers. As of January 1, 2019, the balance of receivables from contracts with customers amounted to \$545,567.
C. The Group does not hold any collateral.
D. As at December 31, 2020 and 2019, without taking into account any collateral held or other credit enhancements, the maximum exposure to credit risk in respect of the amount that best represents the Group's notes and accounts receivable was \$509,341 and \$555,080, respectively.
E. Information relating to credit risk of accounts receivable is provided in Note 12(2).

(5) Inventories

	December 31, 2020
	Allowance for
	Cost	valuation loss			Book value
Raw materials	\$ 184,604	(\$	18,897)	\$	165,707
Work in progress	34,823	(	934)		33,889
Finished goods	279,231	(	17,843)		261,388
	\$ 498,658	(\$	37,674)	\$	460,984

			December 31, 2019
			Allowance for
	Cost	valuation loss			Book value
Raw materials	\$ 151,350	(\$	9,761)	\$	141,589
Work in progress	37,703	(	1,982)		35,721
Finished goods	353,978	(	13,928)		340,050
	\$ 543,031	\$	(25,671)	\$	517,360

The cost of inventories recognized as expense for the year:

	Years ended December 31,
	2020		2019
Cost of goods sold	\$ 1,996,214	\$	2,661,720
Loss on abandonment of inventory	-		18,152
Loss on decline (Gain from price recovery)
in market value of inventory	11,453	(	23,329)
	\$ 2,007,667	\$	2,656,543

A. The Group reversed a previous inventory write-down which was accounted for as reduction of cost of goods sold because of the adjustment on the selling prices in 2019.
B. The Group has no inventories pledged to others.
(6) Non-current assets held for sale

	December 31, 2020
Buildings and structures held for sale	\$ 108,043
Machinery and equipment held for sale	3,378
Other equipment held for sale	325
	\$ 111,746

A. Certain plants and related equipment (part of China segment; see Note 14) have been reclassified as disposal group held for sale following the approval of the Company's Board of Directors on November 5, 2020 for its disposal due to the land expropriation of the Company's Mainland China second-tier subsidiary, Genmao Electronics (Suzhao) Co. The assets of the disposal group held for sale as at December 31, 2020 amounted to \$111,746. Refer to Note 11 for related transactions.
B. The carrying amount of disposal group held for sale was lower than the fair value less costs to sell based on the assessment. Thus, no impairment has occurred.

(7) Property, plant and equipment

												Unfinished construction and
		Buildings and	Machinery and		Transportation		Office		Leasehold			equipment under
		structures	equipment		equipment		equipment		improvements	Others		acceptance		Total
At January 1, 2020
Cost	\$	244,107	\$ 369,849	\$	2,985	\$	15,875	\$	\$ 14,208	61,296	\$	3,425	\$	711,745
Accumulated depreciation	(	132,755)	( 251,144)	(	2,510)	(	9,138)	(	14,208) (	53,404)		- (		463,159)
	\$	111,352	\$ 118,705	\$	475	\$	6,737	\$	\$ -	7,892	\$	3,425	\$	248,586
2020
At January 1	\$	111,352	\$ 118,705	\$	475	\$	6,737	\$	\$ -	7,892	\$	3,425	\$	248,586
Additions		-	3,896		-		72		-	355		1,339		5,662
Disposals		- (	90)		- (		2)		- (	4)		- (		96)
Reclassfication		1,339	2,192		-		-		-		- (	4,152)	(	621)
Transfers to non-current assets held for sale	(	108,043)	( 325)		-		-		- (	3,378)		- (		111,746)
Depreciation charge	(	10,190)	( 15,739)	(	163)	(	2,050)		- (	1,303)		- (		29,445)
exchange differences Net		1,602	1,701		5		40		-	93		11		3,452
At December 31	(\$	3,940)	\$ 110,340	\$	317	\$	4,797	\$	\$ -	3,655	\$	623	\$	115,792
December At 31, 2020
Cost	\$	-	\$ 378,793	\$	3,032	\$	16,053	\$	\$ 14,208	29,414	\$	623	\$	442,123
Accumulated depreciation	(	3,940)	( 268,453)	(	2,715)	(	11,256)	(	14,208) (	25,759)		- (		326,331)
	(\$	3,940)	\$ 110,340	\$	317	\$	4,797	\$	\$ -	3,655	\$	623	\$	115,792

													Unfinished
													construction and
		Buildings and structures	Machinery equipment	and	Transportation equipment		Office equipment		Leasehold improvements		Others		equipment under acceptance		Total
At January 1, 2019
Cost	\$	254,206	\$ 380,612	\$	6,339	\$	16,267	\$	14,208	\$	66,949	\$	2,448	\$	741,029
Accumulated depreciation	(	126,752)	( 249,443)	(	5,674)	(	7,336)	(	14,208)	(	57,751)		- (		461,164)
	\$	127,454	\$ 131,169	\$	665	\$	8,931	\$	-	\$	9,198	\$	2,448	\$	279,865
2019
At January 1	\$	127,454	\$ 131,169	\$	665	\$	8,931	\$	-	\$	9,198	\$	2,448	\$	279,865
Additions		-	5,991		-		244		-		2,239		3,748		12,222
Disposals		- (		1,063)	- (		9)		- (		584)		- (		1,656)
Reclassfication		-	2,651		-		-		-		- (		2,651)		-
Depreciation charge	(	11,536)	( 15,159)	(	171)	(	2,294)		- (		2,724)		- (		31,884)
Net exchange differences	(	4,566)	( 4,884)	(	19)	(	135)		- (		237)	(	120)	(	9,961)
At December 31	\$	111,352	\$ 118,705	\$	475	\$	6,737	\$	-	\$	7,892	\$	3,425	\$	248,586
At December 31, 2019
Cost	\$	244,107	\$ 369,849	\$	2,985	\$	15,875	\$	14,208	\$	61,296	\$	3,425	\$	711,745
Accumulated depreciation	(	132,755)	( 251,144)	(	2,510)	(	9,138)	(	14,208)	(	53,404)		- (		463,159)
	\$	111,352	\$ 118,705	\$	475	\$	6,737	\$	-	\$	7,892	\$	3,425	\$	248,586

(8) Leasing arrangements - lessee

A. The Group leases various assets including land use right, buildings, business vehicles, and multifunction printers. Rental contracts are typically made for periods of 3 to 50 years. Lease terms are negotiated on an individual basis and contain a wide range of different terms and conditions. The lease agreements do not impose covenants, but leased assets may not be used as security for borrowing purposes.
B. The carrying amount of right-of-use assets and the depreciation charge are as follows:

	December 31, 2020	December 31, 2019
	Carrying amount	Carrying amount
Buildings	\$ 19,023	\$ 25,942
Transportation equipment (Business vehicles)	1,231	789
Office equipment (Photocopiers)	156	208
Land use right	5,978	6,089
	\$ 26,388	\$ 33,028

	Years ended December 31,
	2020	2019
	Depreciation charge	Depreciation charge
Buildings	6,919	\$ 6,919
Transportation equipment (Business vehicles)	1,155	1,144
Office equipment (Photocopiers)	52	52
Land use right	203	212
	8,329	\$ 8,327

C. For the years ended December 31, 2020 and 2019, the additions to right-of-use assets were \$1,846 and \$597, respectively.
D. The Group disposed transportation equipment (business vehicles) for a consideration of \$249 on December 31, 2020.
E. The information on profit and loss accounts relating to lease contracts is as follows:

	Years ended December 31,
	2020	2019
Items affecting profit or loss
Interest expense on lease liabilities	\$ 354	\$ 438
Expense on short-term lease contracts	913	820
	\$ 1,267	\$ 1,258

F. For the years ended December 31, 2020 and 2019, the Group's total cash outflow for leases was \$9,288 and \$8,605, respectively.
G. Variable lease payments

Some of the Group's lease contracts contain variable lease payment terms that are linked to the actual usage of parking spaces per month. Various lease payments that depend on the actual usage are recognized in profit or loss in the period in which the event or condition that triggers those payments occurs.

H. On November 5, 2020, the Board of Directors of the Company resolved the land expropriation of its mainland China second-tier subsidiary, Genmao Electronics (Suzhao) Co. On January 28, 2021, Genmao Electronics (Suzhao) Co. entered into a land repurchase agreement with the Management Committee of Wujiang Economic and Technological Development Zone. Refer to Note 11 for details.
(9) Investment property

			2020
			Buildings and
	Land		structures	Total
At January 1
Cost	\$ 103,511	\$	93,480	\$ 196,991
Accumulated depreciation	-	(	34,672) (	34,672)
	\$ 103,511	\$	58,808	\$ 162,319
At January 1	\$ 103,511	\$	58,808	\$ 162,319
Depreciation charge	-	(	2,296) (	2,296)
At December 31	\$ 103,511	\$	56,512	\$ 160,023
At December 31
Cost	\$ 103,511	\$	93,480	\$ 196,991
Accumulated depreciation	-	(	36,968) (	36,968)
	\$ 103,511	\$	56,512	\$ 160,023

			2019
			Buildings and
	Land		structures	Total
At January 1
Cost	\$ 103,511	\$	93,480	\$ 196,991
Accumulated depreciation	-	(	32,376) (	32,376)
	\$ 103,511	\$	61,104	\$ 164,615
At January 1	\$ 103,511	\$	61,104	\$ 164,615
Depreciation charge	-	(	2,296) (	2,296)
At December 31	\$ 103,511	\$	58,808	\$ 162,319
At December 31
Cost	\$ 103,511	\$	93,480	\$ 196,991
Accumulated depreciation	-	(	34,672) (	34,672)
	\$ 103,511	\$	58,808	\$ 162,319

A. Rental income from investment property and direct operating expenses arising from investment property are shown below:

	Years ended December 31,
	2020	2019
Rental income from investment property	\$ 14,420	\$	14,325
Direct operating expenses arising from
the investment property that generated
rental income during the year	\$ 3,643	\$	3,550

B. The fair values of the investment property held by the Group measured using the cost basis were \$676,632 and \$676,632 as at December 31, 2020 and 2019, respectively. The fair value was determined in reference to the market quoted value of properties in the nearby area.

(10) Other payables

	December 31, 2020			December 31, 2019
Salary and bonus payable	\$	60,959	\$	62,043
Commission payable		17,925		20,239
Freight payable		10,555		11,272
Equipment payable		-		527
Other payables		30,443		29,331
	\$	119,882	\$	123,412

(11) Pensions

A. (a) The Company has a defined benefit pension plan in accordance with the Labor Standards Act, covering all regular employees' service years prior to the enforcement of the Labor Pension Act on July 1, 2005 and service years thereafter of employees who chose to continue to be subject to the pension mechanism under the Act. Under the defined benefit pension plan, two units are accrued for each year of service for the first 15 years and one unit for each additional year thereafter, subject to a maximum of 45 units. Pension benefits are based on the number of units accrued and the average monthly salaries and wages of the last 6 months prior to retirement. The Company contributes monthly an amount equal to 6% of the employees' monthly salaries and wages to the retirement fund deposited with Bank of Taiwan, the trustee, under the name of the independent retirement fund committee. Also, the Company would assess the balance in the aforementioned labor pension reserve account by December 31, every year. If the account balance is insufficient to pay the pension calculated by the aforementioned method to the employees expected to qualify for retirement in the following year, the Company will make contributions for the deficit by next March.
(b) The amounts recognized in the balance sheet are as follows:

	December 31, 2020		December 31, 2019
Present value of defined benefit obligation	\$	15,266	\$	19,053
Fair value of plan assets	(	15,110) (		13,972)
Net defined benefit liability	\$	156	\$	5,081

	2020
		Present value of defined benefit obligations		Fair value of plan assets		Net defined benefit liability
At January 1	\$	19,053	(\$	13,972)	\$	5,081
Current service cost		135		-		135
Interest expense (income)		143	(	107)		36
		19,331	(	14,079)		5,252
Remeasurements:
Change in financial assumptions		453		-		453
Experience adjustments	(	100)		-	(	100)
Return on plan assets (Note)		-	(	503)	(	503)
		353	(	503)	(	150)
Pension fund contribution		-	(	528)	(	528)
Paid pension	(	4,418)		-	(	4,418)
	(	4,418) (		528)	(	4,946)
At December 31	\$	15,266	(\$	15,110) \$		156

	2019
		Present value of defined benefit obligations		Fair value of plan assets		Net defined benefit liability
At January 1	\$	22,569	(\$	15,749)	\$	6,820
Current service cost		228		-		228
Interest expense (income)		225	(	164)		61
		23,022	(	15,913)		7,109
Remeasurements:
Change in financial assumptions		481		-		481
Experience adjustments	(	669)		-	(	669)
Return on plan assets (Note)		-	(	519) (		519)
	(	188) (		519) (		707)
Pension fund contribution	(	3,781) (		1,321) (		5,102)
Paid pension		-		3,781		3,781
At December 31	(	3,781)		2,460	(	1,321)
	\$	19,053	(\$	13,972) \$		5,081

Note: Excluding interest income or expense.

(d) The Bank of Taiwan was commissioned to manage the Fund of the Company's defined benefit pension plan in accordance with the Fund's annual investment and utilization plan and the "Regulations for Revenues, Expenditures, Safeguard and Utilization of the Labor Retirement Fund" (Article 6: The scope of utilization for the Fund includes deposit in domestic or foreign financial institutions, investment in domestic or foreign listed, over-thecounter, or private placement equity securities, investment in domestic or foreign real estate securitization products, etc.). With regard to the utilization of the Fund, its minimum earnings in the annual distributions on the final financial statements shall be no less than the earnings attainable from the amounts accrued from two-year time deposits with the interest rates offered by local banks. If the earnings is less than aforementioned rates, government shall make payment for the deficit after being authorized by the Regulator. The Company has no right to participate in managing and operating that fund and hence the Company is unable to disclose the classification of plan assets fair value in accordance with IAS 19 paragraph 142. The composition of fair value of plan assets as of December 31, 2020 and 2019 is given in the Annual Labor Retirement Fund Utilization Report announced by the government.
(e) The principal actuarial assumptions used were as follows:

	Years ended December 31,
Discount rate	2020	2019
	0.500%	0.750%
Future salary increases	2.250%	2.250%

Future mortality rate was estimated based on the 5th Taiwan Standard Ordinary Experience Mortality Table.

Because the main actuarial assumption changed, the present value of defined benefit obligation is affected. The analysis was as follows:

	Discount rate			Future salary increases
	Increase 0.25%		Decrease 0.25%		Increase 0.25%		Decrease 0.25%
December 31, 2020
Effect on present value of defined benefit obligation	\$ 14,814	\$	15,738	\$	15,721	\$	14,827
December 31, 2019
Effect on present value of defined benefit obligation	\$ 18,560	\$	19,566	\$	19,550	\$	18,574

The sensitivity analysis above is based on one assumption which changed while the other conditions remain unchanged. In practice, more than one assumption may change all at once. The method of analysing sensitivity and the method of calculating net pension liability in the balance sheet are the same.

The methods and types of assumptions used in preparing the sensitivity analysis did not change compared to the previous period.

(f) Expected contributions to the defined benefit pension plans of the Group for the year ending December 31, 2021 amount to \$535.
(g) As of December 31, 2020, the weighted average duration of the retirement plan is 12 years. The analysis of timing of the future pension payment was as follows:

Within 1 year	\$ 485
1-2 year(s)	306
2-5 years	1,282
Over 5 years	1,766
	\$ 3,839

B. (a) Effective July 1, 2005, the Company has established a defined contribution pension plan (the "New Plan") under the Labor Pension Act (the "Act"), covering all regular employees with R.O.C. nationality. Under the New Plan, the Company contributes monthly an amount based on 6% of the employees' monthly salaries and wages to the employees' individual pension accounts at the Bureau of Labor Insurance. The benefits accrued are paid monthly or in lump sum upon termination of employment. The pension costs under the defined contribution pension plan of the Company for the years ended December 31, 2020 and 2019 were \$3,153 and \$3,453, respectively.

(b) The Company's mainland China second-tier subsidiary, Genmao Electronics (Suzhao) Co., has a defined contribution plan. Monthly contributions to an independent fund administered by the government in accordance with the pension regulations in the People's Republic of China (PRC) are based on certain percentage of employees' monthly salaries and wages. The Group contributed to a fund based on the salary of local workers totaling \$1,370 and \$10,661 for the years ended December 31, 2020 and 2019, respectively. However, the local regulations do not mandatorily require any pension plan. Other than the periodic contribution, the mainland China subsidiaries have no further obligations.
(c) The Company's mainland China second-tier subsidiary, Genmao Electronics (Suzhao) Co., was eligible for the temporary reduction and exemption on contributions to employee basic pension insurance, unemployment insurance, and work-related injury insurance for the period from February 2020 to December 2020 in accordance with the 'Notice of Extending the Implementation Period of the Policies Regarding the Temporary Reduction and Exemption of Enterprises' Social insurance Contributions and Other Issues', No. 49 [2020] of the Ministry of Human Resources and Social Security of People's Republic of China,.
(d) The consolidated subsidiary and second-tier subsidiary, Kenmao International (Pte.) Ltd. and Kenmao Investment Corp., do not have any formal employee, thus there was no related pension liabilities and expenses.

(12) Share capital

A. As of December 31, 2020, the Company's authorized capital was \$1,290,000, consisting of 129,000 thousand shares of ordinary stock, and the paid-in capital was \$1,109,270 with a par value of \$10 (in dollars) per share. All proceeds from shares issued have been collected.
B. Movements in the number of the Company's ordinary shares outstanding are as follows:

2020	2019
January 1 (As of December 31)	$110,927$ thousand shares	$110,927$ thousand shares

(13) Capital surplus

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

(14) Retained earnings
A. In accordance with the amended Articles of Incorporation, the restrictions and order of retained earnings distribution are as follows:
- (a) pay all taxes;
- (b) offset prior years' accumulated deficit;
- (c) 10% of the remaining amount shall be set aside as legal reserve;
- (d) set aside or reverse special reserve upon request by competent authority.

The Company operates in a steady growth environment. Since the Company has plans for plant expansion and reinvestment, the current distributable earnings less abovementioned items plus unappropriated earnings in prior years, shall be appropriated as shareholders' bonus that account for 50% of the amount. Dividends to shareholders in the form of cash shall account for at least 5%. The distribution of retained earnings should be proposed by the Board of Directors and resolved by the shareholders.

B. Except for covering accumulated deficit or issuing new stocks or cash to shareholders in proportion to their share ownership, the legal reserve shall not be used for any other purpose. The use of legal reserve for the issuance of stocks or cash to shareholders in proportion to their share ownership is permitted, provided that the distribution of the reserve is limited to the portion in excess of 25% of the Company's paid-in capital.
C. (a) In accordance with the regulations, the Company shall set aside special reserve from the debit balance on other equity items at the balance sheet date before distributing earnings. When debit balance on other equity items is reversed subsequently, the reversed amount could be included in the distributable earnings.
(b) The amounts previously set aside by the Company as special reserve on initial application of IFRSs in accordance with Order No. Financial-Supervisory-Securities-Corporate-1010012865, dated April 6, 2012, shall be reversed proportionately when the relevant assets are used, disposed of or reclassified subsequently.
D. For the years ended December 31, 2020 and 2019, the Company incurred net loss and had an accumulated deficit as at December 31, 2020 and 2019. Thus, there was no appropriation.

(15) Other equity items

	2020
		Unrealized gains (losses) on valuation		Currency translation	Total
At January 1	(\$	45,143) (\$		101,990) (\$	147,133)
Revaluation - gross		3,168		-	3,168
Revaluation transferred to retained earnings - gross		53,735		-	53,735
Currency translation differences:
-Group		-		12,922	12,922
-Tax on Group		-	(	2,552) (	2,552)
At December 31	\$	11,760	(\$	91,620) (\$	79,860)
		2019
	Unrealized gains
		(losses) on		Currency
		valuation		translation	Total
At January 1	(\$	80,285) (\$		73,643) (\$	153,928)
Revaluation - gross		35,142		-	35,142
Currency translation differences:
-Group		-	(	35,434) (	35,434)
-Tax on Group		-		7,087	7,087
At December 31	(\$	45,143) (\$		101,990) (\$	147,133)

(16) Operating revenue

	Years ended December 31,
		2020		2019
Revenue from contracts with customers	\$	2,298,426	\$	2,967,216

Disaggregation of revenue from contracts with customers

The Group derives revenue from the transfer of goods and services at a point in time in the following major product lines and geographical regions:

2020	Taiwan	Asia	Europe	US	Total
Electronic components	\$ 74,329	\$1,138,315	\$ 603,425	\$ 482,357	\$2,298,426
2019	Taiwan	Asia	Europe	US	Total
Electronic components	\$ 88,478	\$1,510,498	\$ 797,211	\$ 571,029	\$2,967,216

(17) Other income

	Years ended Decmber 31,
		2020		2019
Rent income	\$	15,894	\$	16,224
Dividend income		5,254		6,484
Directors' and supervisors' remuneration		-		3,295
Gains on write-off of past due payable		154		81
Other income		6,343		8,600
	\$	27,645	\$	34,684

(18) Other gains and losses

	Years ended Decmber 31,
		2020	2019
Losses on disposals of property, plant and equipment	(\$	(\$ 19)	1,210)
Net currency exchange (losses) gains	(	50,994)	26,203
Gains (losses) on financial assets and liabilities at fair value through profit or loss		38,799 (	4,719)
Other losses	(	3,566) (	3,604)
	(\$	\$ 15,780)	16,670

(19) Expenses by nature

	Years ended Decmber 31,
		2019
Employee benefit expense	\$	307,897	\$	381,845
Depreciation charges		37,774		40,211
Amortisation charges		4,348		4,642

(20) Employee benefit expense

	Years ended Decmber 31,
		2020		2019
Wages and salaries	\$	276,648	\$	337,789
Labour and health insurance fees		5,457		6,129
Pension costs		4,694		14,403
Directors' remuneration		2,511		1,340
Other personnel expenses		18,587		22,184
	\$	307,897	\$	381,845

A. In accordance with the Articles of Incorporation of the Company, a ratio of distributable profit of the current year, after covering accumulated losses, shall be distributed as employees' compensation and directors' and supervisors' remuneration. The ratio shall be between 5%-15%

for employees' compensation and shall not be higher than 5% for directors' and supervisors' remuneration.

B. For the years ended December 31, 2020 and 2019, employees' compensation and directors' and supervisors' remunerations were not accrued.

For the year ended December 31, 2020, the Company had incurred losses and an accumulated deficit as at December 31, 2020, thus, there is no employees' compensation and directors' and supervisors' remuneration. Information about employees' compensation and directors' and supervisors' remuneration of the Company as resolved by the Board of Directors will be posted in the "Market Observation Post System" at the website of the Taiwan Stock Exchange.

(21) Income tax

A. Income tax (benefit) expense
(a) Components of income tax (benefit) expense:

		Years ended Decmber 31,
		2020	2019
Current tax:
Current tax on profits for the year	\$	-	\$ 6,321
Tax on undistributed surplus earnings		254	-
Prior year income tax under estimation		122	4,599
Total current tax		376	10,920
Deferred tax:
Origination and reversal of temporary
differences	(	629)	9,995
Income tax (benefit) expense	(\$	253)	\$ 20,915

(b) Reconciliation between income tax (benefit) expense and accounting profit:

	Years ended Decmber 31,
		2020		2019
Tax calculated based on profit (loss) before tax and statutory tax rate (Note)		989	\$	15,612
Effects from items disallowed by tax regulation	(	8,771) (		9,858)
Prior year income tax under estimation		122		4,599
Tax on undistributed surplus earnings Change in assessment of deferred tax		254		-
assets		7,153		10,562
Income tax (benefit) expense	(\$	253)	\$	20,915

Note: The basis for computing the applicable tax rate are the rates applicable in the respective countries where the Group entities operate.

		2019

\$ 2,552	(\$	7,087)

30		141
\$ 2,582	(\$	6,946)
	2020	Years ended Decmber 31,

B. Amounts of deferred tax assets or liabilities as a result of temporary differences are as follows:

						2020
						Recognized
						in other
				Recognized in		comprehensive	Translation
		January 1		profit or loss		income	differences		December 31
Deferred tax assets:
-Temporary differences
Allowance for inventory
valuation loss	\$	6,350	\$	2,824	\$	-	\$ 138	\$	9,312
Unused compensated absences		304	(	50)		-	-		254
Pension costs		2,099		-	(	30)	-		2,069
Difference of depreciation
changes on fixed assets		4,049	(	1,819)		-	34		2,264
Others		7,095	(	326)		-	-		6,769
		19,897		629	(	30)	172		20,668
Deferred tax liabilities:
-Temporary differences
Unrealized exchange gain (		5,850)		-		-	-	(	5,850)
Cumulative translation adjustment of foreign
operations	(	5,453)		-	(	2,552)	-	(	8,005)
Others	(	1,022)		-		-	-	(	1,022)
	(	12,325)		-	(	2,552)	-	(	14,877)
	\$	7,572	\$	629	(\$	2,582)	\$ 172	\$	5,791

						2019
						Recognized
						in other
				Recognized in		comprehensive	Translation
		January 1		profit or loss		income	differences		December 31
Deferred tax assets:
-Temporary differences
Allowance for inventory valuation loss	\$	11,485	(\$	4,889)	\$	-	(\$ 246)	\$	6,350
Unused compensated
absences		375	(	71)		-	-		304
Pension costs		2,240		-	(	141)	-		2,099
Difference of depreciation
changes on fixed assets		6,585	(	2,375)		-	( 161)		4,049
Others		3,745		3,350		-	-		7,095
		24,430	(	3,985) (		141) (	407)		19,897
Deferred tax liabilities:
-Temporary differences
Unrealized exchange gain (		862) (		4,988)		-	-	(	5,850)
Cumulative translation
adjustment of foreign
operations	(	12,540)		-		7,087	-	(	5,453)
Others		-	(	1,022)		-	-	(	1,022)
	(	13,402) (		6,010)		7,087	-	(	12,325)
	\$	11,028	(\$	9,995)	\$	6,946	(\$ 407)	\$	7,572

C. The amounts of deductible temporary differences that were not recognized as deferred tax assets are as follows:

	December 31, 2020	December 31, 2019
Deductible temporary differences	\$	84,166	\$	88,802

D. The Company's income tax returns through 2018 have been assessed and approved by the Tax Authority; Kenmao Investment Corp., the subsidiary's income tax returns through 2018 have been assessed and approved by the Tax Authority; the second-tier company, Genmao Electronics (Suzhao) Co., Ltd.'s income tax returns through 2019 have been assessed and approved by the Tax Authority.

(22) Earnings per share

		Year ended December 31, 2020
		Weighted average
		numbers of ordinary
		shares outstanding	Earnings per share
	Amount after tax	(shares in thousands)	(in dollars)
Basic (diluted) earnings per share
Profit attributable to ordinary
shareholders of the parent	\$ 46,775	110,927	\$ 0.42

	Year ended December 31, 2019
		Weighted average numbers of ordinary
		shares outstanding	Earnings per share
	Amount after tax	(shares in thousands)	(in dollars)
Basic (diluted) earnings per share Profit attributable to ordinary
shareholders of the parent	\$ 8,872	110,927	\$ 0.08

(23) Supplemental cash flow information

Investing activities with partial cash payments:

	Years ended Decmber 31,
		2020	2019
Purchase of property, plant and equipment	\$	5,662	\$	12,222
Add: Opening balance of payable on equipment		527		1,618
Less: Ending balance of payable on equipment		-	(	527)
Cash paid during the year	\$	6,189	\$	13,313

7. RELATED PARTY TRANSACTIONS.

(1) Names of related parties and relationship

Names of related parties	Relationship with the Company
TECO Electric & Machinery Co., Ltd.	An investor which accounts for its investment in
	the Company under the equity method
TECO Image System Co., Ltd.	Same chairman with the Company
Creative Sensor Inc.	Same chairman with the Company

(2) Significant related party transactions

A. Operating revenue:

	Years ended December 31,
		2020	2019
Sales of goods:
- TECO Electric & Machinery Co., Ltd.	\$	64,030	\$	74,056
- Other related party		-		4,752
	\$	64,030	\$	78,808

Goods are sold based on the price lists in force and terms that would be available to third parties (market prices).

B. Other income:

	Years ended December 31,
		2020		2019
-TECO Electric & Machinery Co., Ltd.	\$	48	\$	3,312

The above mainly arose from directors' and supervisors' remuneration and other miscellaneous income.

C. Receivables from related parties:

	Years ended December 31,
Accounts receivable:		2020		2019

-TECO Electric &Machinery Co., Ltd.	\$	9,062	\$	12,012
-TECO Image System Co., Ltd.		-		2,663
	\$	9,062	\$	14,675

The receivables from related parties arise mainly from sale transactions. The receivables are due two to three months after the date of sales. The receivables are unsecured in nature and bear no interest. There are no provisions held against receivables from related parties.

D. Lease:

The Group leases an office in Nangang Dist., Taipei City to TECO Image System Co, Ltd. and Creative Sensor Inc. under non-cancellable operating lease agreements. The amount of rental is subject to certain conditions and terms, and collected quarterly. For the years ended December 31, 2020 and 2019, the rent revenue was \$1,812 for both years.

(3) Key management compensation

	Years ended December 31,
		2020	2019
Salaries and other short-term employee
benefits	\$	16,374	\$	11,667
Post-employment benefits		382		394
	\$	16,756	\$	12,061

8. PLEDGED ASSETS

None.

9. SIGNIFICANT CONTINGENT LIABILITIES AND UNRECOGNIZED CONTRACT COMMITMENTS

None.

10. SIGNIFICANT DISASTER LOSS

None.

11. SIGNIFICANT EVENTS AFTER THE BALANCE SHEET DATE

(1) To cooperate with the government on transportation infrastructure, the Group's second-tier subsidiary, Genmao Electronics (Suzhao) Co. (Genmao), entered into a repurchase agreement on January 28, 2021 for a consideration of RMB 111,910 thousand in relation to plants and equipment (\$111,746, shown as non-current asset held for sale) and land use right (\$5,978, shown as right-ofuse assets) located in Wujiang District, Jiangsu Province. Under the agreement, Genmao will complete the transfer of living area on the south side of the construction area before January 31, 2021, lease back the plant area and plants at a price of RMB 3,600 thousand per annum, and complete the repurchase of all the land before December 31, 2025. The repurchase has no significant impact to Genmao's plant operations so far.
(2) On March 3, 2021, the Board of Directors of the Group resolved the investment plan to participate in the capital increase of Tien Da Investment Co., Ltd for cash amounting to \$70,000 thousand. The shareholding ratio would be 19.63% after the investment.
(3) On March 19, 2021, the chairman of the Group resigned due to his personal career planning.

12. OTHERS

(1) Capital management

The Group's objectives when managing capital are to safeguard the Group's ability to continue as a going concern in order to provide returns for shareholders and to maintain an optimal capital structure to reduce the cost of capital. In order to maintain or adjust the capital structure, the Group may adjust the amount of dividends paid to shareholders, return capital to shareholders, issue new shares or sell assets to reduce debt.

The Group monitors capital on the basis of the gearing ratio. This ratio is calculated as net debt divided by total capital. Net debt is calculated as total borrowings (including 'current and noncurrent borrowings' as shown in the consolidated balance sheet) less cash and cash equivalents. Total capital is calculated as 'equity' as shown in the consolidated balance sheet plus net debt.

During the year ended December 31, 2020, the Group's strategy, which was unchanged from 2019, was to maintain the gearing ratio within 0% to 30%. As the Group had no borrowings as of December 31, 2020 and 2019, the gearing ratio was 0%.

		December 31, 2020	December 31, 2019
Total borrowings	\$	\$ -	-
Less: Cash and cash equivalents	(	677,466) (	432,723)
Net debt	(\$	677,466) (\$	432,723)

(2) Financial instruments

A. Financial instruments by category

	December 31, 2020	December 31, 2019
Financial assets
Financial assets at fair value through profit or loss
Financial assets mandatorily measured at
fair value through profit or loss	\$ 11,224	\$ 38,936
Financial assets at fair value through other comprehensive income
Designation of equity instrument	\$ 150,969	\$ 147,816
Financial assets at amortised cost
Cash and cash equivalents	\$ 677,466	\$ 432,723
Notes receivable	9,341	8,745
Accounts receivable (including related party)	509,062	561,010
Other receivables	16,884	12,468
Guarantee deposits paid	-	4,003
	\$ 1,212,753	\$ 1,018,949
Financial liabilities
Financial liabilities at fair value through
profit or loss
Financial liabilities mandatorily measured
at fair value through profit or loss	\$ 316	\$ -
Financial liabilities at amortised cost
Notes payable	\$ 1,755	\$ 1,849
Accounts payable	741,662	687,119
Other accounts payable	119,882	123,412
Guarantee deposits received	2,395	2,395
	\$ 865,694	\$ 814,775
Lease liability	\$ 20,686	\$ 27,110

B. Financial risk management policies
(a) The Group's activities expose it to a variety of financial risks: market risk (including foreign exchange risk, interest rate risk and price risk), credit risk and liquidity risk. To minimize any adverse effects on the financial performance of the Group, forward exchange contracts are used to hedge certain foreign exchange risk. Derivatives are used exclusively for hedging purposes and not as trading or speculative instruments.
(b) Risk management is carried out by a central treasury department (Group treasury) under approved policies. Group treasury identifies, evaluates and hedges financial risks in close cooperation with the Group's operating units. The Group provides written principles for overall risk management, as well as written policies covering specific areas and matters, such as

foreign exchange risk, interest rate risk, credit risk, use of derivative financial instruments and non-derivative financial instruments, and investment of excess liquidity.

(c) Information about derivative financial instruments that are used to hedge certain exchange rate risk are provided in Note 6(2).
C. Significant financial risks and degrees of financial risks
(a) Market risk

Foreign exchange risk

i. The Group operates internationally and is exposed to foreign exchange risk arising from the transactions of the Company and its subsidiaries used in various functional currency, primarily with respect to the USD and RMB. Foreign exchange risk arises from future commercial transactions and recognized assets and liabilities.
ii. Management has set up a policy to require group companies to manage their foreign exchange risk against their functional currency. The companies are required to hedge their entire foreign exchange risk exposure with the Group treasury. Exchange rate risk is measured through a forecast of highly probable USD and RMB expenditures. Forward foreign exchange contracts are adopted to minimize the volatility of the exchange rate affecting cost of forecast inventory purchases.
iii. The Group hedges foreign exchange rate by using forward exchange contracts. However, the Group does not adopt hedging accounting. Details of financial assets or liabilities at fair value through profit or loss are provided in Note 6(2).
iv. The Group's businesses involve some non-functional currency operations (the Company's and certain subsidiaries' functional currency: NTD; other certain subsidiaries' functional currency: RMB and SGD). The information on assets and liabilities denominated in foreign currencies whose values would be materially affected by the exchange rate fluctuations is as follows:

	December 31, 2020
	Foreign currency
	amount				Book value
(Foreign currency: functional	(In thousands)		Exchange rate		(NTD)
currency)
Financial assets-monetary items
USD:NTD	\$	36,568	28.480	\$	1,041,447
USD:RMB		34,489	6.525		982,240
Financial liabilities-monetary items
USD:NTD		35,150	28.480		1,001,072
USD:RMB		10,957	6.525		312,051

	December 31, 2019
	Foreign currency
	amount				Book value
	(In thousands)		Exchange rate	(NTD)
(Foreign currency:functional currency)
Financial assets-monetary items
USD:NTD	\$	29,380	29.980	\$	880,819
USD:RMB		33,343	6.976		999,641
Financial liabilities-monetary items
USD:NTD		34,066	29.980		1,021,305
USD:RMB		10,491	6.976		314,532

v. Please refer to the following table for the details of unrealized exchange gain (loss) arising from significant foreign exchange variation on the monetary items held by the Group.

	Year ended December 31, 2020
			Exchange gain (loss)
		Foreign currency
		amount		Book value
		(In thousands)	Exchange rate		(NTD)
Financial assets-monetary items
USD:NTD	\$	-	28.480	\$	13,947
USD:RMB		8,324	6.525		54,312
Financial liabilities-monetary items
USD:NTD	\$	-	28.480	(\$	23,810)
USD:RMB	(	1,857)	6.525	(	12,118)
			Year ended December 31, 2019
			Exchange gain (loss)
		Foreign currency
		amount			Book value
		(In thousands)	Exchange rate		(NTD)
Financial assets-monetary items
USD:NTD	\$	-	29.980	(\$	12,371)
USD:RMB		1,264	6.976		5,432
Financial liabilities-monetary items
USD:NTD	\$	-	29.980	\$	29,253
USD:RMB	(	493)	6.976	(	2,120)

vi. Analysis of foreign currency market risk arising from significant foreign exchange variation:

	Year ended December 31, 2020
			Sensitivity analysis
	Degree of variation		Effect on profit or loss	Effect on other comprehensive income
Financial assets-monetary items
USD:NTD	1%	\$	10,414	\$ -
USD:RMB	1%		9,822	-
Financial liabilities-monetary items
USD:NTD	1%		10,011	-
USD:RMB	1%		3,121	-
			Year ended December 31, 2019 Sensitivity analysis
	Degree of variation		Effect on profit or loss	Effect on other comprehensive income
Financial assets-monetary items
USD:NTD	1%	\$	8,808	\$ -
USD:RMB	1%		9,996	-
Financial liabilities-monetary items
USD:NTD	1%		10,213	-
USD:RMB	1%		3,145	-

Price risk

i. The Group's equity securities, which are exposed to price risk, are the held financial assets at fair value through profit or loss and financial assets at fair value through other comprehensive income. To manage its price risk arising from investments in equity securities, the Group diversifies its portfolio. Diversification of the portfolio is done in accordance with the limits set by the Group.
ii. The Group's investments in equity securities comprise shares and open-end funds issued by the domestic companies. The prices of equity securities would change due to the change of the future value of investee companies. If the prices of these equity securities had increased/decreased by 1% with all other variables held constant, post-tax profit for the years ended December 31, 2020 and 2019 would have increased/decreased by \$0 and \$338, respectively, as a result of gains/losses on equity securities classified as at fair value through profit or loss. Other components of equity would have increased/decreased by \$1,510 and \$1,478, respectively, as a result of other comprehensive income classified as equity investment at fair value through other comprehensive income.

(b) Credit risk

i. Credit risk refers to the risk of financial loss to the Group arising from default by the clients or counterparties of financial instruments on the contract obligations. The main factor is that counterparties could not repay in full the accounts receivable based on the agreed terms.
ii. The Group manages its credit risk taking into consideration the entire group's concern. According to the Group's credit policy, each local entity in the Group is responsible for managing and analyzing the credit risk for each of their new clients before standard payment and delivery terms and conditions are offered. Internal risk control assesses the credit quality of the customers, taking into account their financial position, past experience and other factors. Individual risk limits are set based on internal or external ratings in accordance with limits set by the Board of Directors. The utilization of credit limits is regularly monitored.
iii. The Group adopts the assumption under IFRS 9, that is, the default occurs when the contract payments are past due over 90 days.
iv. The Group adopts the following assumption under IFRS 9 to assess whether there has been a significant increase in credit risk on that instrument since initial recognition:

If the contract payments were past due over 30 days based on the terms, there has been a significant increase in credit risk on that instrument since initial recognition.

v. The Group classifies customer's accounts receivable in accordance with credit risk on trade and customer types. The Group applies the modified approach using the provision matrix, loss rate methodology to estimate expected credit loss.
vi. The Group wrote-off the financial assets, which cannot be reasonably expected to be recovered, after initiating recourse procedures. However, the Group will continue executing the recourse procedures to secure their rights. On December 31, 2020 and 2019, the Group has no written-off financial assets that are still under recourse procedures.
vii. The Group used the forecastability to adjust historical and timely information to assess the default possibility of notes and accounts receivable. As of December 31, 2020 and 2019, the provision matrix is as follows:

	Not past due	Up to 30 days past due	31~60 days 61~90 days past due	past due	Over 90 days past due	Total
At December 31, 2020
Expected loss rate	0.03%	0.03%	8.36%-	26.82%-	100%
Total book value	\$ 490,917	\$ 18,528	\$ -	\$ 18	\$ 997	\$ 510,460
Loss allowance	\$ 160	\$ 6	\$ -	\$ -	\$ 953	\$ 1,119

	Not past	Up to 30 days	31~60 days 61~90 days		Over 90 days
	due	past due	past due	past due	past due	Total
At December 31, 2019
Expected loss rate	0.03%-	0.03%-11.74%	0.03%-	0.03%-	100.00%
Total book value	\$ 547,508	\$ 7,141	\$ 758	\$ 128	\$ 3,136	\$ 558,671
Loss allowance	\$ 273	\$ 2	\$ 127	\$ 53	\$ 3,136	\$ 3,591

viii. Movements in relation to the Group applying the modified approach to provide loss allowance for accounts receivable are as follows:

		2020		2019
At January 1	\$	3,591	\$	3,431
(Reversal of) provision for impairment	(	2,061)		303
Write-offs	(	425)		-
Effect of foreign exchange		14	(	143)
At December 31	\$	1,119	\$	3,591

For provisioned (gain) loss in 2020 and 2019, the impairment losses arising from customers' contracts are (\$2,061) and \$303, respectively.

(c) Liquidity risk

i. Cash flow forecasting is performed in the operating entities of the Group and aggregated by Group treasury. Group treasury monitors rolling forecasts of the Group's liquidity requirements to ensure it has sufficient cash to meet operational needs. Such forecasting takes into consideration the financial ratio targets and, if applicable external regulatory or legal requirements, for example, currency restrictions.
ii. The table below analyses the Group's non-derivative financial liabilities into relevant maturity groupings based on the remaining period at the balance sheet date to the contractual maturity date.

	Less than	Between 1	Between 2	Over 5
December 31, 2020	1 year	and 2 years	and 5 years	years
Non-derivative financial liabilities
Accounts payable	\$ 741,662	\$ -	\$ -	\$ -
Other payables	119,882	-	-	-
Lease liabilities	7,838	7,838	5,416	-
Non-current financial liabilities	-	2,395	-	-

	Less than	Between 1	Between 2	Over 5
December 31, 2019 Non-derivative financial liabilities	1 year	and 2 years	and 5 years	years
Notes payable	\$ 1,849	\$ -	\$ -	\$ -
Accounts payable	687,119	-	-	-
Other payables	123,412	-	-	-
Lease liabilities	7,759	7,413	12,660	-

(3)Fair value information

A. The different levels that the inputs to valuation techniques are used to measure fair value of financial and non-financial instruments have been defined as follows:
Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can access at the measurement date. A market is regarded as active where a market in which transactions for the asset or liability take place with sufficient frequency and volume to provide pricing information on an ongoing basis. The fair value of the Group's investment in listed stocks and beneficiary certificate is included in Level 1.
Level 2: Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. The fair value of the Group's investment in forward exchange contract is included in Level 2.
Level 3: Unobservable inputs for the asset or liability. The fair value of the Group's investment in equity investment without active market and investment property is included in Level 3.
B. Fair value information of investment property at cost is provided in Note 6(8).
C. Financial instruments not measured at fair value

The carrying amounts of cash and cash equivalents, notes receivable, accounts receivable (including related party), other receivables, refundable deposits, notes payable, accounts payable, other payables, lease liabilities and guarantee deposit received are approximate to their fair values.

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

December 31, 2020	Level 1		Level 2		Level 3		Total
Assets
Recurring fair value measurements
Financial assets at fair value through
profit or loss
Forward exchange contracts	\$	-	\$	11,224	\$	-	\$ 11,224
Financial assets at fair value through
other comprehensive income
Equity securities		147,197		-		3,772	150,969
	\$	147,197	\$	11,224	\$	3,772	\$ 162,193
Liabilities
Recurring fair value measurements
Financial liabilities at fair value
through profit or loss
Forward exchange contracts	\$	-	\$	316	\$	-	\$ 316

December 31, 2019		Level 1		Level 2		Level 3		Total
Assets
Recurring fair value measurements
Financial assets at fair value through
profit or loss
Funds beneficiary certificates	\$	33,828	\$	-	\$	-	\$	33,828
Forward exchange contracts		-		5,108		-		5,108
Financial assets at fair value through
other comprehensive income
Equity securities		143,343		-		4,473		147,816
	\$	177,171	\$	5,108	\$	4,473	\$	186,752

(b) The methods and assumptions the Group used to measure fair value are as follows:

i. The instruments the Group used market quoted prices as their fair values (that is, Level 1) are listed below by characteristics:

	Listed shares	Closed-end fund	Open-end fund
Market quoted price	Closing price	Closing price	Net asset value

ii. Except for financial instruments with active markets, the fair value of other financial instruments is measured by using valuation techniques or by reference to counterparty quotes. The fair value of financial instruments measured by using valuation techniques can be referred to current fair value of instruments with similar terms and characteristics in substance, discounted cash flow method or other valuation methods, including calculated by applying model using market information available at the consolidated balance sheet date (i.e. yield curves on the Taipei Exchange, average commercial paper interest rates quoted from Reuters).
iii.When assessing non-standard and low-complexity financial instruments, for example, debt instruments without active market, interest rate swap contracts, foreign exchange swap contracts and options, the Group adopts valuation technique that is widely used by market participants. The inputs used in the valuation method to measure these financial instruments are normally observable in the market.
iv. The valuation of derivative financial instruments is based on valuation model widely accepted by market participants, such as present value techniques and option pricing models. Forward exchange contracts are usually valued based on the current forward exchange rate.

E. The following chart is the movement of Level 3 for the years ended December 31, 2020 and 2019:

	Years ended December 31,
		2020		2019
		Equity instrument		Equity instrument
At January 1 (Losses) Gains recognised in other	\$	4,473	\$	4,473
comprehensive income	(	701)		-
At December 31	\$	3,772	\$	4,473

F. For the years ended December 31, 2020 and 2019, there was no transfer into or out from Level 3.
G. Financial segment is in charge of valuation procedures for fair value measurements being categorized within Level 3, which is to verify independent fair value of financial instruments. Such assessment is to ensure the valuation results are reasonable by applying independent information to make results close to current market conditions, confirming the resource of information is independent, reliable and in line with other resources and represented as the exercisable price, and frequently calibrating valuation model, performing back-testing, updating inputs used to the valuation model and making any other necessary adjustments to the fair value.
H. The following is the qualitative information of significant unobservable inputs and sensitivity analysis of changes in significant unobservable inputs to valuation model used in Level 3 fair value measurement:

	Fair value at		Significant	Range	Relationship of
	December 31, 2020	Valuation technique	unobservable input	(weighted average)	inputs to fair value
Non-derivative equity instrument:
Unlisted shares	\$ 3,772	Market comparable companies	Discount for lack of marketability	20.1%	The higher the discount for lack of marketability, the lower the fair value
	Fair value at		Significant	Range	Relationship of
	December 31, 2019	Valuation technique	unobservable input	(weighted average)	inputs to fair value
Non-derivative equity instrument:
Unlisted shares	\$ 4,473	Market comparable companies	Discount for lack of marketability	20.1%	The higher the discount for lack of marketability, the lower the fair value

I. The Group has carefully assessed the valuation models and assumptions used to measure fair value; therefore, the fair value measurement is reasonable. However, use of different valuation models or assumptions may result in different measurement.

13. SUPPLEMENTARY DISCLOSURES

(1) Significant transactions information
A. Loans to others: None.
B. Provision of endorsements and guarantees to others: None.
C. Holding of marketable securities at the end of the period (not including subsidiaries, associates and joint ventures): Please refer to table 1.
D. Acquisition or sale of the same security with the accumulated cost exceeding \$300 million or 20% of the Company's paid-in capital: None.
E. Acquisition of real estate reaching \$300 million or 20% of paid-in capital or more: Please refer to table 2.
F. Disposal of real estate reaching \$300 million or 20% of paid-in capital or more: None.
G. Purchases or sales of goods from or to related parties reaching \$100 million or 20% of paid-in capital or more: Please refer to table 3.
H. Receivables from related parties reaching \$100 million or 20% of paid-in capital or more: Please refer to table 4.
I. Trading in derivative instruments undertaken during the reporting periods: Please refer to Notes 6(2) and 12(2)(3).
J. Significant inter-company transactions during the reporting periods: Please refer to table 5.
(2) Information on investees

Names, locations and other information of investee companies (not including investees in Mainland China):Please refer to table 6.

(3) Information on investments in Mainland China

A. Basic information: Please refer to table 7.
B. Significant transactions, either directly or indirectly through a third area, with investee companies in the Mainland Area: Please refer to table 8.
(4) Major shareholders information

Name and number of shares held by major shareholders: Please refer to table 9.

14. SEGMENT INFORMATION

(1) General information

Management has determined the reportable operating segments based on the reports reviewed by the Chief Operating Decision-Maker that are used to make strategic decisions. The Group considers the business from a geographic perspective, with the sale of power supply units as the main source of revenue. The Group engages in sales business in Taiwan while engaged in manufacturing in mainland China. The operating result of entities in the consolidated report is reviewed by the Chief Operating Decision-Maker, and are used to assess the performance of the segment.

(2) Measurement of segment information

The Chief Operating Decision-Maker evaluates each operating segment by their profit after tax. The profit after tax reported to the Chief Operating Decision-Maker is measured in a manner consistent with revenue and expenses in the statement of comprehensive income. The Group does not provide the total assets and total liabilities amounts to Chief Operating Decision-Maker as basis for making operating decisions. As the amounts in the statement provided to the Chief Operating Decision-Maker for managing the segment are in agreement with the amounts in the statements of segment income, reconciliation is not needed.

(3) Information about segment profit or loss, assets and liabilities

The segment information provided to the Chief Operating Decision-Maker for the reportable segments is as follows:

							Adjustment
Year ended December 31, 2020		Taiwan		China	Others		write-off		Consolidation
Revenue from external customers		\$ 2,162,741	\$	135,685	\$ -	\$	-		\$ 2,298,426
Inter-segment revenue		-		1,836,838	-	(	1,836,838)		-
Total segment revenue		\$ 2,162,741	\$	1,972,523	\$ -	(\$	1,836,838)		\$ 2,298,426
Segment loss, including:
Depreciation and amortisation	(	11,625) (		30,497)	-		-	(	42,122)
Income tax benefit	(	473)		726	-		-		253
Profit or loss of investments accounted for using equity
method	(	15,887)		-	-		15,887		-
Segment income (loss)	\$	46,775	(\$	31,111) (\$	2,684)	\$	33,795	\$	46,775

						Adjustment
Year ended December 31, 2019		Taiwan	China	Others		write-off		Consolidation
Revenue from external customers		\$ 2,809,301	\$ 157,915	\$ -	\$	-		\$ 2,967,216
Inter-segment revenue		-	2,629,435	-	(	2,629,435)		-
Total segment revenue		\$ 2,809,301	\$ 2,787,350	\$ -		(\$ 2,629,435)		\$ 2,967,216
Segment loss, including:
Depreciation and amortisation	(	13,188) (	31,665)	-		-	(	44,853)
Income tax expense	(	10,752) (	10,163)	-		-	(	20,915)
Profit or loss of investments accounted for using equity
method		37,000	-	-	(	37,000)		-
Segment income (loss)	\$	8,872	\$ 32,075	\$ 5,465	(\$	37,540)	\$	8,872

(4) Reconciliation for segment income (loss)

As the amounts in the statement provided to the Chief Operating Decision-Maker for managing the segment are in agreement with the amounts in the statements of segment income, reconciliation is not needed.

(5) Information on products and services

Revenue from external customers mainly arose from sale of power supply units and other products. The details of revenue are as follows:

	Years ended December 31,
	2020	2019
Power supply units	\$ 2,254,488	\$ 2,852,796
Others	43,938	114,420
	\$ 2,298,426	\$ 2,967,216

(6) Geographical information

Geographical information for the years ended December 31, 2020 and 2019 is as follows:

	Year ended December 31, 2020		Year ended December 31, 2019
	Revenue	Non-current assets	Revenue	Non-current assets
Taiwan	\$ 74,329	\$ 185,952	\$ 88,478	\$	198,077
Asia	1,138,315	123,576	1,510,498		255,949
Europe	603,425	-	797,211		-
America	482,357	-	571,029		-
	\$ 2,298,426	\$ 309,528	\$ 2,967,216	\$	454,026

Note 1: Revenue is categorized based on the customer's country; Taiwan was not included in Asia. Note 2: Non-current assets do not include financial instruments and deferred tax assets.

(7) Major customer information

Major customer information of the Group for the years ended December 31, 2020 and 2019 is as follows:

		Year ended December 31, 2020		Year ended December 31, 2019
Revenue			Segment	Revenue	Segment
Customer A	\$	2,126,994	Taiwan and China	\$ 2,729,942	Taiwan and China

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

December 31, 2020

Table 1

Expressed in thousands of NTD

(Except as otherwise indicated)

Securities held by	Marketable securities	Relationship with the securities issuer	General ledger account	Number of shares	Book value	Ownership (%)	Fair value	Footnote
Lien Chang Electronic Enterprise Co., Ltd.	TECO Electric & Machinery Co., Ltd.	Investments accounted for under equity method	Financial assets at fair value through other comprehensive income	4,173,000 \$	115,384	0.21 \$	115,384
"	TECO Image Systems Co., Ltd.	Associate	"	2,239,477	27,993	1.99	27,993
"	Tecom Co., Ltd.	"	"	29,250	782	0.03	782
"	KROM Electronics Co., Ltd.	None	"	305,276	3,772	0.91	3,772
"	XinNano Materials, Inc.	"	"	402,090	-	4.51	-	Note
Kenmao Investment Corp.	TECO Image Systems Co., Ltd.	Associate	"	243,000	3,038	0.22	3,038

Note : The amounts were all provisioned as impairment losses.

Disposal of real estate reaching NT\$300 million or 20% of paid-in capital or more

Year ended December 31, 2020

Table 2 Expressed in thousands of NTD

(Except as otherwise indicated)

		Transaction date					Status of
Real estate disposed by	Real estate	or date of the event	Date of acquisition	Book value		Disposal amount	collection of proceeds	Gain (loss) on disposal	Counterparty	Relationship with the seller	Reason for disposal	Basis or reference used in setting the price	Other commitments
Genmao Electronics (Suzhao) Co.	Land use right, buildings and structures, equipment and others	2020/11/25	February 2000 to September 2016	\$	117,724	\$ 488,465	(Note 2)	(Note 2)	The Management Committee of Wujiang Economic and Technological Development	-	Cooperate with the government on its planning	Based on the relocation policy and relocation compensation agreement of Wujiang Economic and Technological Development Zone of People's Republic of China	Lease back the plant area and plants at a price of RMB 3,600 thousand per annum. Complete the transfer of all the land before December 31, 2025.

Note 1: Transaction date or date of the event refers to the resolution date by the Board of Directors.

associated with costs of disposal and taxes. Note 2: The repurchase agreement was signed on January 28, 2021, and therefore proceeds from disposal have not yet been collected as of December 31, 2020. In addition, the final gain or loss on disposal is yet to be confirmed as there are expenses

Purchases or sales of goods from or to related parties reaching NT\$100 million or 20% of paid-in capital or more

Year ended December 31, 2020

Expressed in thousands of NTD

(Except as otherwise indicated)

			Differences in transaction terms

						Transaction		transactions				Notes/accounts receivable (payable)
			Percentage of									Percentage of
		Relationship with the	Purchases			total purchases						total notes/accounts
Purchaser/seller	Counterparty	counterparty	(sales)		Amount	(sales)	Credit term	Unit price	Credit term		Balance	receivable (payable)	Footnote
Lien Chang Electronic Enterprise	Genmao Electronics (Suzhao) Co.,	Second-tier company	Purchases	\$	1,836,838	99%	Note 1	Note 1	Note 1	(\$	960,670)	100%
Co., Ltd.	Ltd.

Note 1: Above purchases were the same with third parties, the payment term was 2-3 months.

Table 3

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

December 31, 2020

Table 4

Expressed in thousands of NTD

(Except as otherwise indicated)

							Amount collected
		Relationship	Balance as at		Overdue receivables		subsequent to the	Allowance for
Creditor	Counterparty	with the counterparty	December 31, 2020	Turnover rate	Amount	Action taken	balance sheet date	doubtful accounts
Genmao Electronics (Suzhao) Co.,	Lien Chang Electronic Enterprise	Ultimate parent	\$ 960,670	1.90	\$ -	-	\$ 218,835	\$ -
Ltd.	Co., Ltd.

Significant inter-company transactions during the reporting period

Year ended December 31, 2020

Table 5

Expressed in thousands of NTD

(Except as otherwise indicated)

Number			Relationship					Percentage of consolidated total operating
(Note 1)	Company name	Counterparty	(Note 2)	General ledger account		Amount	Transaction terms	revenues or total assets (Note 3)
0	Lien Chang Electronic Enterprise Co., Ltd. Genmao Electronics (Suzhao) Co., Ltd.		1	Cost of sales	\$		1,836,838 Based on the terms agreed	80%
							mutually
0	"	"	1	Accounts payable		960,670	"	42%

Note 1: The numbers filled in for the transaction company in respect of inter-company transactions are as follows:

(1) Parent company is '0'.

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

Note 2: Relationship between transaction company and counterparty is classified into the following three categories; fill in the number of category each case belongs to (If transactions between parent company and subsidiaries or between subsidiaries refer to the same transaction, it is not required to disclose twice. For example, if the parent company has already disclosed its transaction with a subsidiary, then the subsidiary is not required to disclose the transaction; for transactions between two subsidiaries, if one of the subsidiaries has disclosed the transaction, then the other is not required to disclose the transaction.):

(1) Parent company to subsidiary.

(2) Subsidiary to parent company.

(3) Subsidiary to subsidiary.

Note 3: Regarding percentage of transaction amount to consolidated total operating revenues or total assets, it is computed based on period-end balance of transaction to consolidated total assets for balance sheet accounts and based on accumulated transaction amount for the period to consolidated total operating revenues for income statement accounts.

Information on investees

Year ended December 31, 2020

Expressed in thousands of NTD

(Except as otherwise indicated)

				Initial investment amount			Shares held as at December 31, 2020		Net profit (loss) of the investee for the year	Investment income (loss) recognized by the Company
Investor	Investee	Location	Main business activities	Balance as at December 31, 2020 December 31, 2019	Balance as at	Number of shares	Ownership (%)	Book value	ended December 31, 2020	for the year ended December 31, 2020	Footnote
Lien Chang Electronic Enterprise Co., Ltd.	Kenmao Investment Corp.	Taiwan	Investment business	\$ 92,000	\$ 92,000	12,553,526	100.00	\$ 133,361	(\$ 2,667)	(\$ 2,667)
Lien Chang Electronic Enterprise Co., Ltd.	Kenmao International (Pte.) Ltd.	Singapore	Investment business	582,246	582,246	27,502,354	84.97	713,849	( 31,213)	( 13,220)	Note
Kenmao Investment Corp.	Kenmao International (Pte.) Ltd.	Singapore	Investment business	91,079	91,079	4,866,045	15.03	126,250	( 31,213)	( 2,338)	Note

Note: Investment income recognized by the Group for the year ended December 31, 2020, including write-off, and subsidiaries' realized investment income and unrealized investment loss totaled \$13,185 and \$2,470, respectively.

Information on investments in Mainland China

Year ended December 31, 2020

Table 7

Total

Expressed in thousands of NTD

(Except as otherwise indicated)
---------------------------------	--	--

						Amount remitted from Taiwan
				Accumulated		to Mainland China/	Accumulated
				amount of		Amount remitted back	amount of			Investment income		Accumulated
				remittance from		to Taiwan for the year	remittance from	Net income of		Ownership held (loss) recognized by	Book value of	amount of
				Taiwan to		ended December 31, 2020	Taiwan to	investee for the	by the	the Company for	investments in	investment income
				Mainland China	Remitted to	Remitted	Mainland China	year ended	Company	the year ended	Mainland China as	remitted back to
Investee in	Main business	Paid-in	Investment	as of January 1,	Mainland	back	as of December	December 31,	(direct or		December 31, 2020 of December 31,	Taiwan as of
Mainland China	activities	capital	method	2020	China	to Taiwan	31, 2020	2020	indirect)	(Note 2)	2020	December 31, 2020	Footnote
Genmao Electronics (Suzhao) Co., Ltd.	Manufacture and sale of power supply unit of LCD monitor, LCD television and portable computer	\$714,435 (RMB 163,681)	Note 1	\$404,854 (USD 13,625)	\$	- \$ -	\$404,854 (USD 13,625)	(\$ 31,111)	100% (\$	31,111) \$	834,400 \$	-
	Company name	Accumulated amount of remittance from Taiwan to Mainland China as of December 31, 2020		Investment amount approved by the Investment Commission of the Ministry of Economic Affairs (MOEA)			Ceiling on investments in Mainland China imposed by the Investment Commission of MOEA
	Lien Chang Electronic Enterprise Co., Ltd.	\$	525,826 (USD \$18,463)	\$	759,533 (USD \$26,669)		826,049
Kenmao Investment Corp.		91,193	(USD \$3,202)		141,175 (USD \$ 4,957)		80,011

Note 1: Through investing in Kenmao International (Pte.) in the third area, which then invested in the investee in Mainland China.

Note 2: Investment income recognized by the Group for the year ended December 31, 2020 was based on the financial statements audited and attested by R.O.C. parent company's CPA. Note 3: The numbers in this table are expressed in New Taiwan Dollars. Foreign currency will be translated into NTD at the exchange rate at the balance sheet date (USD 1: TWD 28.48)

\$ 617,019 (USD \$21,665) \$ 900,708 (USD \$31,626)

Significant transactions conducted with investees in Mainland China directly or indirectly through other companies in the third areas

Year ended December 31, 2020

Table 8

Expressed in thousands of NTD

(Except as otherwise indicated)

Provision of

	Sale (purchase)			Property transaction			Accounts receivable (payable)		endorsements/guarantees or collaterals			Financing
Investee in Mainland China	Amount	%	Amount		%		Balance at December 31, 2020	%	Balance at December 31, 2020	Purpose	Maximum balance during the year ended December 31, 2020	Balance at December 31, 2020	Interest rate	Interest during the year ended December 31, 2020	Others receivable (payable)
Genmao Electronics (Suzhao) Co., Ltd.	(\$ 1,836,838)	99%	\$	-	0%	(\$	960,670)	100%	\$ -		- \$	- \$ -		- \$ -	-

Major shareholders information

December 31, 2020

Table 9

	Shares
Name of major shareholders	Number of shares held	Ownership (%)
TECO Electric & Machinery Co., Ltd.	37,542,159	33.84%

AI assistant

LIEN CHANG — Audit Report / Information 2020

52079_rns_2020-11-12_7921eec1-8c92-421c-aee7-4198bf9c63cd.pdf

LIEN CHANG ELECTRONIC ENTERPRISE CO., LTD. AND SUBSIDIARIES CONSOLIDATED FINANCIAL STATEMENTS AND INDEPENDENT AUDITORS' REPORT DECEMBER 31, 2020 AND 2019

LIEN CHANG ELECTRONIC ENTERPRISE CO., LTD. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS DECEMBER 31, 2020 AND 2019

LIEN CHANG ELECTRONIC ENTERPRISE CO., LTD. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS DECEMBER 31, 2020 AND 2019

LIEN CHANG ELECTRONIC ENTERPRISE CO., LTD. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME YEARS ENDED DECEMBER 31, 2020 AND 2019

LIEN CHANG ELECTRONIC ENTERPRISE CO., LTD. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY YEARS ENDED DECEMBER 31, 2020 AND 2019 (Expressed in thousands of New Taiwan dollars)

LIEN CHANG ELECTRONIC ENTERPRISE CO., LTD. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS YEARS ENDED DECEMBER 31, 2020 AND 2019

LIEN CHANG ELECTRONIC ENTERPRISE CO., LTD. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS YEARS ENDED DECEMBER 31, 2020 AND 2019 (Expressed in thousands of New Taiwan dollars)

LIEN CHANG ELECTRONIC ENTERPRISE CO., LTD. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEARS ENDED DECEMBER 31, 2020 AND 2019

1. HISTORY AND ORGANIZATION

2. THE DATE OF AUTHORIZATION FOR ISSUANCE OF THE CONSOLIDATED FINANCIAL STATEMENTS AND PROCEDURES FOR AUTHORIZATION

3. APPLICATION OF NEW STANDARDS, AMENDMENTS AND INTERPRETATIONS

4. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

(1) Compliance statement

(2) Basis of preparation

(3) Basis of consolidation

(4) Foreign currency translation

(5) Classification of current and non-current items

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

(10) Impairment of financial assets

(11) Derecognition of financial assets

(12) Leasing arrangements (lessor) - operating leases

(13) Inventories

(14) Non-current assets (or disposal groups) held for sale

(15) Property, plant and equipment

(17) Investment property

(18) Intangible assets

(19) Impairment of non-financial assets

(20) Notes and accounts payable

(21) Derecognition of financial liabilities

(22) Financial liabilities at fair value through profit or loss

(23) Non-hedging and embedded derivatives

(24) Employee benefits

(25) Income tax

(26) Share capital

(27) Dividends

(28) Revenue recognition

(29) Operating segments

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

(1) Critical judgements in applying the Group's accounting policies

(2) Critical accounting estimates and assumptions

6. DETAILS OF SIGNIFICANT ACCOUNTS

(4) Notes and accounts receivable

(5) Inventories

(7) Property, plant and equipment

(8) Leasing arrangements - lessee

(10) Other payables

(11) Pensions

(12) Share capital

(13) Capital surplus

(15) Other equity items

(16) Operating revenue

(17) Other income

(18) Other gains and losses

(19) Expenses by nature

(20) Employee benefit expense

(21) Income tax

(22) Earnings per share

(23) Supplemental cash flow information

7. RELATED PARTY TRANSACTIONS.

(1) Names of related parties and relationship

(2) Significant related party transactions

A. Operating revenue:

B. Other income:

C. Receivables from related parties:

D. Lease:

(3) Key management compensation

8. PLEDGED ASSETS

9. SIGNIFICANT CONTINGENT LIABILITIES AND UNRECOGNIZED CONTRACT COMMITMENTS

10. SIGNIFICANT DISASTER LOSS

11. SIGNIFICANT EVENTS AFTER THE BALANCE SHEET DATE

12. OTHERS

(2) Financial instruments

Price risk

(b) Credit risk

(c) Liquidity risk

13. SUPPLEMENTARY DISCLOSURES

(3) Information on investments in Mainland China

LIEN CHANG Audit Report / Information 2020