MHC — Audit Report / Information 2020

Nov 16, 2020

MiTAC HOLDINGS CORPORATION AND SUBSIDIARIES

CONSOLIDATED FINANCIAL STATEMENTS AND

INDEPENDENT AUDITORS’ REPORT

DECEMBER 31, 2020 AND 2019

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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.

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MiTAC HOLDINGS CORPORATION AND SUBSIDIARIES Declaration of Consolidated Financial Statements of Affiliated Enterprises

In connection with the Consolidated Financial Statements of Affiliated Enterprises of Mitac Holding Corporation (the “Consolidated FS of the Affiliates”), we represent to you that, the entities required to be included in the Consolidated FS of the Affiliates as of and for the year ended December 31, 2020 in accordance with the “Criteria Governing Preparation of Affiliation Reports, Consolidated Business Reports and Consolidated Financial Statements of Affiliated Enterprises” are the same as those required to be included in the Consolidated Financial Statements of Mitac Holding Corporation and its subsidiaries (the “Consolidated FS of the Group”) in accordance with International Financial Reporting Standard 10, as well as that, the information required to be disclosed in the Consolidated FS of Affiliates is disclosed in the Consolidated FS of the Group. Consequently, Mitac Holding Corporation does not prepare a separate set of Consolidated FS of Affiliates.

Very truly yours,

Matthew Feng-Chiang Miau Chairman of Mitac Holding Corporation March 8, 2021

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PWCR20000462

INDEPENDENT AUDITORS’ REPORT

To the Board of Directors and Shareholders of MiTAC Holdings Corporation

Opinion

We have audited the accompanying consolidated balance sheets of MiTAC Holdings Corporation and its subsidiaries (the “MiTAC Group”) as at December 31, 2020 and 2019, and the related consolidated statements of comprehensive income, of changes in equity and of cash flows for the years then ended, and notes to the consolidated financial statements, including a summary of significant accounting policies.

In our opinion, based on our audits and the audit reports of other independent auditors, as described in the Other matter section of our report, the accompanying consolidated financial statements present fairly, in all material respects, the consolidated financial position of the MiTAC Group as at December 31, 2020 and 2019, and its consolidated financial performance and its consolidated cash flows for the years then ended in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and the International Financial Reporting Standards, International Accounting Standards, IFRIC Interpretations, and SIC Interpretations as endorsed by the Financial Supervisory Commission.

Basis for opinion

We conducted our audit of the consolidated financial statements as of and for the year ended December 31, 2020 in accordance with the Regulations Governing Auditing and Attestation of Financial Statements by Certified Public Accountants and generally accepted auditing standards in the Republic of China; and in accordance with the Regulations Governing Auditing and Attestation of Financial Statements by Certified Public Accountants, “Rule No. Financial-Supervisory-Securities-Auditing-1090360805 issued by the Financial Supervisory Commission on February 25, 2020” and generally accepted auditing standards in the Republic of China for our audit of the consolidated financial statements as of and for the year ended December 31, 2019. Our responsibilities under those standards are further described in the Auditors’ responsibilities for the audit of the consolidated financial statements section of our report. We are independent of the MiTAC Group in accordance with the Norm of Professional Ethics for Certified Public Accountants of the Republic of China, and we have fulfilled our other ethical

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responsibilities in accordance with these requirements. Based on our audits and the audit reports of the other independent auditors, we believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Key audit matters

Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the Group’s 2020 consolidated financial statements. These matters were addressed in the context of our audit of the consolidated financial statements as a whole and, in forming our opinion thereon, we do not provide a separate opinion on these matters.

Key audit matters for the MiTAC Group’s 2020 consolidated financial statements are stated as follows:

Sales revenue recognition

Description

For accounting policies on sales revenue recognition, please refer to Note 4(32). Considering that the sales revenue are material to its financial statements, the types of MiTAC Group products and sales terms are various, the timing of revenue recognition can only be determined when the controls of ownership for products are transferred to the customers based on contract terms of each different customer. Thus, we identified the sales revenue recognition as a key audit matter.

How our audit addressed the matter

We conducted audit procedures, including: discussed with management and evaluated the policy of revenue recognition; assessed the effectiveness of design and implementation of internal controls over recognition of revenue; test sampled the sales transactions including their terms, performance obligations, and prices and verified the supporting documents for deliveries to ensure the proper timing and amounts of recognition; selected sales transactions for a specific period prior to and after the balance sheet date and verified transaction documents to ensure sales revenue are recorded in the proper period.

Valuation of inventory

Description

Subsidiaries accounted for using equity method were mainly engaged in manufacturing and selling computers and their peripherals and communications products. Since the industry involved rapidly changing technology and were affected by market demand, there was higher risk of incurring inventory

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valuation losses or having obsolete inventory. Inventories of investees were measured at the lower of cost and net realisable value. Considering that these inventories were significant, items were voluminous and the valuation is associated with subjective judgement, we identified valuation of inventory of the subsidiaries as a key audit matter.

How our audit addressed the matter

We performed audit procedures, including: discussed with management and evaluated the policy of inventory valuation, validated inventory aging report through checking the logic of calculating aged inventories and confirming the appropriateness of categorization of aged inventories; and validated the basis in determining net realizable values of obsolete or slow-moving inventories in order to evaluate the reasonableness of allowance for inventory valuation losses.

Other matter- reference to audits of other auditors

We did not audit a certain indirectly held investment accounted for using equity method that was included in the consolidated financial statements, whose financial statements were prepared under a different financial reporting framework. We have performed necessary audit procedures on the conversion of those financial statements into financial information in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and the International Financial Reporting Standards, International Accounting Standards, IFRIC Interpretations, and SIC Interpretations as endorsed by the Financial Supervisory Commission. Those financial statements prior to conversion were audited by other independent auditors whose reports thereon have been furnished to us, and our opinion expressed herein is based solely on the audit report of the other independent auditors. Share of profit of associates and joint ventures accounted for using equity method amounted to NT$1,604,767 thousand and NT$1,585,642 thousand for the years ended December 31, 2020 and 2019, respectively. Investments accounted for using equity method amounted to NT$12,693,073 thousand and NT$11,569,372 thousand as at December 31, 2020 and 2019, respectively.

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Other matter - Parent company only financial reports

We have audited and expressed an unqualified opinion on the parent company only financial statements of MiTAC Holdings Corporation as at and for the years ended December 31, 2020 and 2019.

Responsibilities of management and those charged with governance for the consolidated financial statements

Management is responsible for the preparation and fair presentation of the consolidated financial statements in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and the International Financial Reporting Standards, International Accounting Standards, IFRIC Interpretations, and SIC Interpretations as endorsed by the Financial Supervisory Commission, and for such internal control as management determines is necessary to enable the preparation of consolidated financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the consolidated financial statements, management is responsible for assessing the MiTAC Group’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the MiTAC Group or to cease operations, or has no realistic alternative but to do so.

Those charged with governance, including the audit committee, are responsible for overseeing the MiTAC Group’s financial reporting process.

Auditors’ responsibilities for the audit of the consolidated financial statements

Our objectives are to obtain reasonable assurance about whether the consolidated financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors’ report that includes our opinion. Reasonable assurance is a high level of assurance, but not a guarantee that an audit conducted in accordance with the generally accepted auditing standards in the Republic of China will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these consolidated financial statements. As part of an audit in accordance with the generally accepted auditing standards in the Republic of China, we exercise professional judgement and maintain professional skepticism throughout the audit. We also:

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1. Identify and assess the risks of material misstatement of the consolidated financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

2. Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the MiTAC Group’s internal control.

3. Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.

4. Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the MiTAC Group’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our report to the related disclosures in the consolidated financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditors’ report. However, future events or conditions may cause the MiTAC Group to cease to continue as a going concern.

5. Evaluate the overall presentation, structure and content of the consolidated financial statements, including the disclosures, and whether the consolidated financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

6. Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the MiTAC Group to express an opinion on the consolidated financial statements. We are responsible for the direction, supervision and performance of the group audit. We remain solely responsible for our audit opinion.

We communicate with those charged with governance regarding the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

We also provide those charged with governance with a statement that we have complied with relevant

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ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.

From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the consolidated financial statements of the current period and are therefore the key audit matters. We describe these matters in our report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our auditors’ report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.

Lin, Yu-Kuan Cheng, Ya-Huei

For and on behalf of PricewaterhouseCoopers, Taiwan March 8, 2021

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

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MiTAC HOLDINGS CORPORATION AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS DECEMBER 31, 2020 AND 2019

(Expressed in thousands of New Taiwan dollars)

Assets	Notes 6(1) 6(2) 6(3) 6(4) 6(5) and 12(2) 6(5), 7 and 12(2) 7 6(6) 6(10)(14) 6(7) and 8 6(3) 6(8) 6(9) 6(10) and 7 6(12) 6(13) 6(32) 6(7) and 8	December31,2020 AMOUNT % $ 5,805,297 10 6,107 - 1,232,843 2 - - 31,689 - 4,982,050 9 215,960 - 60,168 - 2,136 - 9,123,004 16 406,538 1 90,133 - 25,584 - 21,981,509 38 6,065,749 11 19,071,689 33 7,753,087 14 359,874 1 1,229,431 2 75,904 - 504,324 1 130,168 - 35,190,226 62 $ 57,171,735 100	December31,2019	December31,2019
		AMOUNT $ 5,805,297 6,107 1,232,843 - 31,689 4,982,050 215,960 60,168 2,136 9,123,004 406,538 90,133 25,584 21,981,509 6,065,749 19,071,689 7,753,087 359,874 1,229,431 75,904 504,324 130,168 35,190,226 $ 57,171,735	AMOUNT $ 6,664,566 99,948 892,050 490,770 92,751 6,183,075 289,650 131,562 26,588 7,761,668 484,459 33,531 38,709 23,189,327 4,675,838 17,455,704 7,810,995 381,487 1,242,821 89,448 481,086 83,676 32,221,055 $ 55,410,382	%
Current assets 1100 Cash and cash equivalents 1110 Financial assets at fair value through profit or loss - current 1120 Financial assets at fair value through other comprehensive income - current 1136 Financial assets at amortised cost - current 1150 Notes receivable - net 1170 Accounts receivable - net 1180 Accounts receivable - related parties - net 1200 Other receivables 1220 Current income tax assets 130X Inventories 1410 Prepayments 1460 Non-current assets held for sale - net 1470 Other current assets 11XX Total current assets Non-current assets 1517 Financial assets at fair value through other comprehensive income - non- current 1550 Investments accounted for using equity method 1600 Property, plant and equipment - net 1755 Right-of-use assets 1760 Investment property - net 1780 Intangible assets 1840 Deferred income tax assets 1900 Other non-current assets 15XX Total non-current assets 1XXX Total assets				12 - 2 1 - 11 1 - - 14 1 - -
				42
				8 32 14 1 2 - 1 -
				58
				100

(Continued)

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MiTAC HOLDINGS CORPORATION AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS

DECEMBER 31, 2020 AND 2019

(Expressed in thousands of New Taiwan dollars)

Liabilities and Equity

December31,2020 December31,2019 Notes AMOUNT % AMOUNT % 6(15) $ 1,443,851 3 $ 3,803,871 7 6(16) 11,691 - 8,637 - 6(25) 127,866 - 274,968 1 6,662,560 12 5,783,558 11 7 20,222 - 62,992 - 7 3,366,781 6 3,362,875 6 440,247 1 397,042 1 6(20) 132,169 - 142,592 - 7 36,760 - 41,204 - 6(17) 279,550 - 225,092 - 12,521,697 22 14,102,831 26 6(17) 863,366 2 791,561 1 6(20) 123,905 - 109,714 - 6(32) 378,872 1 382,573 1 7 194,448 - 148,024 - 6(8)(18) 327,952 1 320,933 1 1,888,543 4 1,752,805 3 14,410,240 26 15,855,636 29 6(21) 12,065,568 21 10,772,829 19 6(22) 23,582,411 41 23,400,002 43 6(23) 1,451,388 3 1,167,412 2 - - 12,265 - 4,110,220 7 3,818,704 7 6(24) 1,743,283 3 671,699 1 6(21) ( 239,876) ( 1) ( 353,087) ( 1 ) 42,712,994 74 39,489,824 71 48,501 - 64,922 - 42,761,495 74 39,554,746 71 9(1)(2) 11 $ 57,171,735 100 $ 55,410,382 100

Current liabilities 2100 Short-term borrowings 2120 Financial liabilities at fair value through profit or loss - current 2130 Contract liabilities - current 2170 Accounts payable 2180 Accounts payable - related parties 2200 Other payables 2230 Current income tax liabilities 2250 Provisions - current 2280 Lease liabilities - current 2300 Other current liabilities 21XX Total current Liabilities Non-current liabilities 2540 Long-term borrowings 2550 Provisions - non-current 2570 Deferred income tax liabilities 2580 Lease liabilities - non-current 2600 Other non-current liabilities 25XX Total non-current liabilities 2XXX Total liabilities Share capital 3110 Common shares Capital surplus 3200 Capital surplus Retained earnings 3310 Legal reserve 3320 Special reserve 3350 Unappropriated retained earnings Other equity interest 3400 Other equity interest 3500 Treasury stocks 31XX Equity attributable to owners of the parent 36XX Non-controlling interests 3XXX Total equity Significant Contingent Liabilities And Unrecognised Contract Commitments Significant Events After the Balance Sheet Date 3X2X Total liabilities and equity

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

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MiTAC HOLDINGS CORPORATION 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)

Items

Year ended December 31 2020 2019 Notes AMOUNT % AMOUNT % 6(25) and 7 $ 41,145,756 100 $ 35,831,960 100 6(6) and 7 ( 36,520,695 ) ( 89) ( 30,642,236) ( 85 ) 4,625,061 11 5,189,724 15 6(30)(31) and 7 ( 985,724 ) ( 2) ( 1,119,178) ( 3 ) ( 1,128,362 ) ( 3) ( 1,197,462) ( 3 ) ( 2,436,592 ) ( 6) ( 2,372,124) ( 7 ) ( 4,550,678 ) ( 11) ( 4,688,764) ( 13 ) 74,383 - 500,960 2 6(26) 44,482 - 89,404 - 6(27) and 7 481,886 1 406,824 1 6(28) 10,416 - ( 98,262) - 6(29) and 7 ( 46,479 ) - ( 55,905) - 6(8) 2,415,388 6 2,239,887 6 2,905,693 7 2,581,948 7 2,980,076 7 3,082,908 9 6(32) ( 129,291 ) - ( 309,119) ( 1 ) $ 2,850,785 7 $ 2,773,789 8

4000 Operating revenue 5000 Operating costs 5900 Gross profit Operating expenses 6100 Selling expenses 6200 General and administrative expenses 6300 Research and development expenses 6000 Total operating expenses 6900 Operating profit Non-operating income and expenses 7100 Interest income 7010 Other income 7020 Other gains and losses 7050 Finance costs 7060 Share of profit of associates and joint ventures accounted for using equity method 7000 Total non-operating income and expenses 7900 Profit before income tax 7950 Income tax expense 8200 Profit for the year

(Continued)

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MiTAC HOLDINGS CORPORATION 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)

Items

YearendedDecember31 2020 2019 Notes AMOUNT % AMOUNT % 6(18) $ 1,151 - ($ 24,960) - 6(3)(24) 1,644,487 4 1,263,333 3 6(8)(24) 162,399 - 19,993 - 6(32) ( 230 ) - 4,992 - 1,807,807 4 1,263,358 3 6(24) ( 763,323 ) ( 1) ( 637,983) ( 2 ) 6(8)(24) 40,785 - ( 381,175) ( 1 ) ( 722,538 ) ( 1) ( 1,019,158) ( 3 ) $ 1,085,269 3 $ 244,200 - $ 3,936,054 10 $ 3,017,989 8 $ 2,918,705 7 $ 2,817,880 8 ($ 67,920 ) - ($ 44,091) - $ 4,004,833 10 $ 3,063,366 8 ($ 68,779 ) - ($ 45,377) - 6(33) $ 2.45 $ 2.37 6(33) $ 2.42 $ 2.35

Other comprehensive income (loss) - net Components of other comprehensive income(loss) that will not be reclassified to profit or loss 8311 Gains (losses) on remeasurements of defined benefit plans 8316 Unrealised gains (losses) from investments in equity instruments measured at fair value through other comprehensive income 8320 Share of other comprehensive income of associates and joint ventures accounted for using equity method, components of other comprehensive income that will not be reclassified to profit or loss 8349 Income tax related to components of other comprehensive income that will not be reclassified to profit or loss 8310 Components of other comprehensive income that will not be reclassified to profit or loss Components of other comprehensive income(loss) that will be reclassified to profit or loss 8361 Exchange differences on translation of foreign financial statements 8370 Share of other comprehensive income of associates and joint ventures accounted for using equity method, components of other comprehensive income that will be reclassified to profit or loss 8360 Components of other comprehensive loss that will be reclassified to profit or loss 8300 Other comprehensive income for the year 8500 Total comprehensive income for the year Profit (loss), attributable to: 8610 Profit, attributable to owners of parent 8620 Loss, attributable to non-controlling interests Comprehensive income(loss) attributable to: 8710 Comprehensive income, attributable to owners of parent 8720 Comprehensive loss, attributable to non-controlling interests 9750 Basic earnings per share 9850 Diluted earnings per share

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

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MiTAC HOLDINGS CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY YEARS ENDED DECEMBER 31, 2019

(Expressed in thousands of New Taiwan dollars)

Year 2019 Balance at January 1, 2019 Effects on adoption of IFRS 16 Balance at January 1, 2019 after adjustments Profit (loss) for 2019 Other comprehensive income (loss) for 2019 Total comprehensive income (loss) Distribution of 2018 earnings Legal reserve Special reserve Cash dividends Stock dividends Subsidiaries received cash dividends paid by the parent company Change of associates accounted for using equity method Proceeds from disposal of investments accounted for using equity method Increase in non-controlling interests Compensation cost of subsidiaries’ employee stock options Proceeds from disposal of equity instruments measured at fair value through other comprehensive income Balance at December 31, 2019	Notes								Equityat	tri	butableto owners of t	he	parent	parent	parent						Non-controlling interests		Total equity
			Share capital- common shares		Capital surplus, additional paid-in capital				Retained earnings				Otherequityinterest				Treasurystocks		Total
							Legal reserve		Special reserve		Unappropriated retained earnings	d	Financial statements translation ifferences of foreign operations		Unrealised gains (losses) from financial assets measured at fair value through other comprehensive income
	6(24) 6(22)(24) 6(24) 6(34) 6(19) 6(3)(24)		$ 9,367,677 - 9,367,677 - - - - - - 1,405,152 - - - - - - $ 10,772,829		$ 23,370,899 - 23,370,899 - - - - - - - 20,740 7,754 - 609 - - $ 23,400,002		$ 837,787 - 837,787 - - - 329,625 - - - - - - - - - $ 1,167,412		$ - - - - - - - 12,265 - - - - - - - - $ 12,265		$ 4,131,139 ( 50 ) 4,131,089 2,817,880 ( 22,376 ) 2,795,504 ( 329,625 ) ( 12,265 ) ( 1,405,152 ) ( 1,405,152 ) - 4,624 ( 341 ) - - 40,022 $ 3,818,704		($ 62,976 ) - ( 62,976 ) - ( 1,017,982 ) ( 1,017,982 ) - - - - - - - ( 770 ) - - ($ 1,081,728 )		$ 511,888 - 511,888 - 1,285,844 1,285,844 - - - - - ( 4,624 ) 341 - - ( 40,022 ) $ 1,753,427		($ 353,087 ) - ( 353,087 ) - - - - - - - - - - - - - ($ 353,087 )		$ 37,803,327 ( 50 ) 37,803,277 2,817,880 245,486 3,063,366 - - ( 1,405,152 ) - 20,740 7,754 - ( 161 ) - - $ 39,489,824		$ - - - ( 44,091 ) ( 1,286 ) ( 45,377 ) - - - - - - - 109,581 718 - $ 64,922		$ 37,803,327 ( 50 ) 37,803,277 2,773,789 244,200 3,017,989 - - ( 1,405,152 ) - 20,740 7,754 - 109,420 718 - $ 39,554,746

(Continued)

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MiTAC HOLDINGS CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY YEARS ENDED DECEMBER 31, 2020

(Expressed in thousands of New Taiwan dollars)

Year 2020 Balance at January 1, 2020 Profit (loss) for 2020 Other comprehensive income (loss) for 2020 Total comprehensive income (loss) Distribution of 2019 earnings Legal reserve Reversal of special reserve Cash dividends Stock dividends Subsidiaries received cash dividends paid by the parent company Change of associates accounted for using equity method Increase in non-controlling interests Proceeds from disposal of equity instruments measured at fair value through other comprehensive income Proceeds from disposal of investments accounted for using equity method Disposal of company’s share by subsidiaries recognised as treasury share transactions Loss control over the subsidiaries recognised as disposal transactions Cash dividends paid by subsidiaries to non-controlling interests Capital surplus - dividends unclaimed by the subsidiaries’ shareholders Balance at December 31, 2020	Notes								Equityat	tri	butableto owners of t	h	e parent	e parent	e parent						Non-controlling interests		Total equity
			Share capital- common shares		Capital surplus, additional paid-in capital				Retained earnings				Otherequityinterest				Treasurystocks		Total
							Legal reserve		Special reserve		Unappropriated retained earnings	d	Financial statements translation ifferences of foreign operations		Unrealised gains (losses) from financial assets measured at fair value through other comprehensive income
	6(24) 6(22) 6(22)(24) 6(34) 6(3)(24) 6(24) 6(21)(22) 6(34) 6(34) 6(22)		$ 10,772,829 - - - - - - 1,292,739 - - - - - - - - - $ 12,065,568		$ 23,400,002 - - - - - - - 10,784 87,108 - - - 83,417 - - 1,100 $ 23,582,411		$ 1,167,412 - - - 283,976 - - - - - - - - - - - - $ 1,451,388		$ 12,265 - - - - ( 12,265 ) - - - - - - - - - - - $ -		$ 3,818,704 2,918,705 221 2,918,926 ( 283,976 ) 12,265 ( 1,077,283 ) ( 1,292,739 ) - 25,693 - ( 11,382 ) 12 - - - - $ 4,110,220		($ 1,081,728 ) - ( 721,722 ) ( 721,722 ) - - - - - - - - - - - - - ($ 1,803,450 )		$ 1,753,427 - 1,807,629 1,807,629 - - - - - ( 25,693 ) - 11,382 ( 12 ) - - - - $ 3,546,733		($ 353,087 ) - - - - - - - - - - - - 113,211 - - - ($ 239,876 )		$ 39,489,824 2,918,705 1,086,128 4,004,833 - - ( 1,077,283 ) - 10,784 87,108 - - - 196,628 - - 1,100 $ 42,712,994		$ 64,922 ( 67,920 ) ( 859 ) ( 68,779 ) - - - - - - 90,150 - - - ( 33,330 ) ( 4,462 ) - $ 48,501		$ 39,554,746 2,850,785 1,085,269 3,936,054 - - ( 1,077,283 ) - 10,784 87,108 90,150 - - 196,628 ( 33,330 ) ( 4,462 ) 1,100 $ 42,761,495

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

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MiTAC HOLDINGS CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS

YEARS ENDED DECEMBER 31, 2020 AND 2019

(Expressed in thousands of New Taiwan dollars)

CASH FLOWS FROM OPERATING ACTIVITIES Profit before tax Adjustments Adjustments to reconcile profit (loss) Expected credit loss (gain on reversal in expected credit loss) Loss on inventory market value decline Depreciation Amortization Compensation cost of employee share-based payment transactions Interest income Interest expense Dividend income Loss (gain) of financial assets/liabilities at fair value through profit or loss Share of profit of associates and joint ventures accounted for using equity method Loss on disposal of investments Gain on disposal of property, plant and equipment Changes in operating assets and liabilities Changes in operating assets Notes receivable Accounts receivable Other receivables Inventories Prepayments Other current assets Changes in operating liabilities Contract liabilities Accounts payable Other payables Other current liabilities Provisions for liabilities Accrued pension liabilities Other non-current liabilities Cash inflow (outflow) generated from operations Payment of interest Receipt of interest Cash dividend received Payment of income tax Net cash flows from operating activities

Year ended December 31 Notes 2020 2019 $ 2,980,076 $ 3,082,908 12(2) 17,494 ( 14,812 ) 6(6) 137,040 231,906 6(9)(10)(12)(30) 908,976 836,105 6(13)(30) 89,722 84,614 6(19) - 718 6(26) ( 44,482 ) ( 89,404 ) 6(29) 46,479 55,905 6(27) ( 214,428 ) ( 190,145 ) 6(28) 18,855 ( 9,828 ) 6(8) ( 2,415,388 ) ( 2,239,887 ) 6(28) 6,674 5,444 6(28) ( 564 ) ( 255 ) 61,062 ( 539 ) 1,069,041 ( 1,478,028 ) 64,646 ( 52,830 ) ( 1,694,988 ) ( 1,603,717 ) 34,425 39,542 13,223 2,321 ( 147,102 ) 109,526 854,435 559,771 165,626 30,338 9,055 ( 13,739 ) 3,523 ( 3,914 ) ( 14,827 ) ( 3,358 ) 603 - 1,949,176 ( 661,358 ) ( 51,786 ) ( 50,117 ) 48,487 87,293 813,467 1,007,530 ( 88,573 ) ( 150,589 ) 2,670,771 232,759

(Continued)

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MiTAC HOLDINGS CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS

YEARS ENDED DECEMBER 31, 2020 AND 2019

(Expressed in thousands of New Taiwan dollars)

CASH FLOWS FROM INVESTING ACTIVITIES Proceeds from disposal of financial assets at fair value through profit or loss Acquisition of financial assets at fair value through profit or loss Increase in other financial assets Acquisition of financial assets at fair value through other comprehensive income Proceeds from disposal of financial assets at fair value through other comprehensive income Proceeds from capital reduction of financial assets at fair value through other comprehensive income Decrease (increase) in financial assets at amortised cost Acquisition of investments accounted for using equity method Proceeds from capital reduction of investments accounted for using equity method Acquisition of property, plant and equipment Proceeds from disposal of property, plant and equipment Increase in investment property Increase in intangible assets (Increase) decrease in refundable deposits Increase in other non-current assets Decrease in net cash from disposal of subsidiaries Net cash flows used in investing activities CASH FLOWS FROM FINANCING ACTIVITIES (Decrease) increase in short-term borrowings Proceeds from long-term borrowings Decrease in guarantee deposits Repayment of principal portion of lease liabilities Cash dividends paid Investments increased by non-controlling interest Proceeds from disposal of treasury shares Capital surplus - expired unclaimed dividends Net cash flows (used in) from financing activities Effects of changes in exchange rates Net (decrease) increase in cash and cash equivalents Cash and cash equivalents at beginning of year Cash and cash equivalents at end of year

Year ended December 31 Notes 2020 2019 $ 89,242 $ 109,645 ( 11,148 ) ( 78,000 ) - ( 25,078 ) ( 102,528 ) ( 360,062 ) 6(3) 16,211 37,299 - 45,389 490,770 ( 490,770 ) 6(8) ( 131,207 ) - - 20,307 6(9) ( 780,003 ) ( 1,622,516 ) 8,959 17,521 6(12) - ( 125,783 ) 6(13) ( 76,994 ) ( 71,351 ) ( 6,117 ) 1,305 ( 12,961 ) - 6(35) ( 78,615 ) - ( 594,391 ) ( 2,542,094 ) 6(36) ( 2,349,843 ) 3,834,646 6(36) 119,073 791,561 6(36) ( 671 ) ( 3,250 ) 6(36) ( 51,255 ) ( 44,205 ) 6(35) ( 1,070,961 ) ( 1,384,412 ) 6(34) 90,150 109,420 6(21) 196,628 - 1,100 - ( 3,065,779 ) 3,303,760 130,130 ( 55,075 ) ( 859,269 ) 939,350 6(1) 6,664,566 5,725,216 6(1) $ 5,805,297 $ 6,664,566

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

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MiTAC HOLDINGS CORPORATION 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 ORGANISATION

• (1) MiTAC Holdings Corporation (the “Company”) was established by MiTAC International Corp. (“MiTAC International”) through a share conversion on September 12, 2013, and on the same date, the competent authority has approved for the Company’s shares to be listed on the Taiwan Stock Exchange (TWSE). MiTAC International became the Company’s wholly-owned subsidiary after conversion. The main business of the Company and its subsidiaries (collectively referred herein as the “Group”) is to design, manufacture and sell products related to investments, computers and its peripherals and communications.

• (2) In order to promote specialization of work for transforming and improving overall competitiveness of the Group, the Board of Directors of its subsidiary, MiTAC International, has resolved to divest its cloud computing products group to the newly established company, MiTAC Computing Technology Corporation (collectively referred herein as the “MiTAC Computing Technology”), as the consideration for the acquisition of 220,000 thousand newly issued ordinary shares of MiTAC Technology on the spin-off day, September 1, 2014. In addition, in 2017, the Board of Directors of MiTAC International has resolved to divest its mobile communication products group to the newly established company, MiTAC Digital Technology Corporation (collectively referred herein as the “MiTAC Digital Technology”), as the consideration for the acquisition of 100,000 thousand newly issued ordinary shares of MiTAC Digital Technology on the spin-off day, January 1, 2018. As a result, MiTAC International, MiTAC Computing Technology and MiTAC Digital Technology are the wholly-owned subsidiaries of the Company after the spin-off.

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

• These consolidated financial statements were authorised for issuance by the Board of Directors on March 8 , 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 FSC effective from 2020 are as follows:

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

New Standards, Interpretations and Amendments	Effective date by International Accounting Standards Board
Amendments to IAS 1 and IAS 8, ‘Disclosure initiative-definition of	January 1, 2020
material’
Amendments to IFRS 3, ‘Definition of a business’	January 1, 2020
Amendments to IFRS 9, IAS 39 and IFRS7 ,‘Interest rate benchmark	January 1, 2020
reform’
Amendment to IFRS 16, ‘Covid-19-related rent concessions’	June 1, 2020 (Note)
Note：Earlier application from January 1, 2020 is allowed by 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 issued by IASB but not yet included in the IFRSs as endorsed by the FSC are as follows:

endorsed by the FSC are as follows:
New Standards,Interpretations and Amendments	Effective date by International Accounting Standards Board
Amendments to IFRS 4, ‘Extension of the temporary exemption from applying IFRS 9’ Amendments to IFRS 9, IAS 39, IFRS 7, IFRS 4 and IFRS 16, ‘ Interest Rate Benchmark Reform— Phase 2’	January 1, 2021 January 1, 2021

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:

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New Standards,Interpretations and Amendments

Effective date by International Accounting Standards Board

Amendments to IFRS 3, ‘Reference to the conceptual framework’ Amendments to IFRS 10 and IAS 28, ‘Sale or contribution of assets between an investor and its associate or joint venture’ IFRS 17, ‘Insurance contracts’ Amendments to IFRS 17, 'Insurance contracts' Amendments to IAS 1, ‘Classification of liabilities as current or non- current’ Amendments to IAS 1, ‘Disclosure of accounting policies’ Amendments to IAS 8, ‘Definition of accounting estimates’ Amendments to IAS 16, ‘Property, plant and equipment:proceeds before intended use’ Amendments to IAS 37, ‘Onerous contracts—cost of fulfilling a contract Annual improvements to IFRS Standards 2018–2020

January 1, 2022 To be determined by International Accounting Standards Board January 1, 2023 January 1, 2023 January 1, 2023 January 1, 2023 January 1, 2023 January 1, 2022 January 1, 2022 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

These consolidated financial statements are prepared by the Group in accordance with the “Regulations Governing the Preparation of Financial Statements by Securities Issuers” and the 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, these consolidated financial statements have been prepared under the historical cost convention:

• (a) Financial assets and financial liabilities (including derivative instruments) at fair value through profit or loss.

• (b) Financial assets and liabilities at fair value through other comprehensive income.

• (c) Defined benefit liabilities recognised based on the net amount of pension fund assets and present value of defined benefit obligation.

• B. The preparation of financial statements in compliance 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

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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 unrealised 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.

  • (c) Profit or loss and each component of other comprehensive income are attributed to the owners of the parent and to the non-controlling interests. Total comprehensive income is attributed to the owners of the parent and to the non-controlling interests even if this results in the noncontrolling interests having a deficit balance.

  • (d) Changes in a parent’s ownership interest in a subsidiary that do not result in the parent losing control of the subsidiary (transactions with non-controlling interests) are accounted for as equity transactions, i.e. transactions with owners in their capacity as owners. Any difference between the amount by which the non-controlling interests are adjusted and the fair value of the consideration paid or received is recognised directly in equity.

  • (e) When the Group loses control of a subsidiary, the Group remeasures any investment retained in the former subsidiary at its fair value. Any difference between fair value and carrying amount is recognised in profit or loss. All amounts previously recognised in other comprehensive income in relation to the subsidiary are reclassified to profit or loss on the same basis as would be required if the related assets or liabilities were disposed of. That is, when the Group loses control of a subsidiary, all gains or losses previously recognised in other comprehensive income in relation to the subsidiary should be reclassified from equity to profit or loss, if such gains or losses would be reclassified to profit or loss when the related assets or liabilities are disposed of.

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B. Subsidiaries included in the consolidated financial statements:

Investor	Subsidiary Main activities MiTAC International Corp. Computer and its peripherals: design, manufacture and sell communications products MiTAC Computing Technology Corp. Computer and its peripherals: design, manufacture and sell communications products MiTAC Digital Technology Corp. Sales and service of electronic telecommunication, communication and software, etc Tsu Fung Investment Corp. General investments Silver Star Developments Ltd. General investments MiTAC Technology UK Ltd. General investments MiTAC Telematics Technology Corporation Sales of self-produced products and related after-sale services MiTAC Information Technology Czech s.r.o. Assemble and sales of computer and peripheral equipment Hyve Design Solutions Corporation Assemble and sales of computer and peripheral equipment Access Wisdom Holdings Ltd. General investments Mio International Ltd. Sale of communication and related products	Ownership (%)	Ownership (%)	Remarks
		December 31,2020	December 31,2019
MiTAC Holdings Corp. MiTAC Holdings Corp. MiTAC Holdings Corp. MiTAC International Corp. MiTAC International Corp. MiTAC Computing Technology Corp. MiTAC Computing Technology Corp. MiTAC Computing Technology Corp. MiTAC Computing Technology Corp. MiTAC Digital Technology Corp. MiTAC Digital Technology Corp.		100% 100% 97.17% 100% 100% 100% 100% - - 100% 100%	100% 100% 97.17% 100% 100% 100% 100% 100% 50% 100% 100%	Note 1 Note 3 Note 2

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Ownership (%)
December December
Investor Subsidiary Main activities 31, 2020 31, 2019 Remarks
----- End of picture text -----

Investor	Subsidiary	Main activities	December 31,2020 Owners	December 31, 2019 hip (%)	Remarks
Tsu Fung	MiTAC Digital	Sales and service of electronic	0.001%	0.001%	Note 1
Investment Corp.	Technology Corp.	telecommunication,
		communication and software, etc
Silver Star	Pacific China Corp.	General investments	100%	100%
Developments Ltd.
Pacific China Corp.	MiTAC Star Service	General investments	100%	100%
	Ltd.
Pacific China Corp.	Software Insights Ltd.	General investments	100%	100%
Pacific China Corp.	Start Well	General investments	100%	100%
	Technology Ltd.
Pacific China Corp.	Huge Extent Ltd.	General investments	100%	100%
Access Wisdom	MiTAC Europe Ltd.	Sale of communication products	100%	100%
Holdings Ltd.		and related after-sale services
MiTAC Technology	Tyan Computer	Sales of computer peripherals,	100%	100%
UK Ltd.	Corp. (USA)	hardware/ software and related
		products
MiTAC Technology	MiTAC Logistics	Sale of computer peripherals,	-	100%	Note 3
UK Ltd.	Corp.	hardware/software and related
		products
MiTAC Technology	MiTAC Information	Assembling and sale of	100%	100%
UK Ltd.	Systems Corp.	computer peripherals,
		hardware/software and related
		products
Hyve Design	Hype Design	Assemble and sales of computer	-	100%	Note 2
Solutions	Solutions(Taiwan)	and peripheral equipment
Corporation	Corporation
MiTAC Europe	MiTAC Digital	Sale of communication products	100%	100%
Ltd.	Corp.	and related after-sale services
MiTAC Europe	MiTAC Australia	Sale of communication products	100%	100%
Ltd.	Pty Ltd.	and related after-sale services
Silver Star	MiTAC Japan Corp.	Sale of communication	100%	100%
Developments Ltd.		products, computer peripherals,
		hardware/software and related
		products and related after-sale
		services
Silver Star	MiTAC Benelux	Sale of communication products	100%	100%
Developments Ltd.	N.V.	and related after-sale services

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Ownership (%)
December December
Investor Subsidiary Main activities 31, 2020 31, 2019 Remarks
----- End of picture text -----

Investor	Subsidiary	Main activities	December 31,2020 Owners	December 31, 2019 Remarks hip (%)
Silver Star	MiTAC Pacific	Sale of computer peripherals,	100%	100%
Developments Ltd.	(H.K.) Ltd.	hardware/software and related
		products
Start Well	MiTAC Investment	Investment holdings	100%	100%
Technology Ltd	Holding Ltd.
MiTAC Investment	MiTAC Computer	Manufacture of computers,	100%	100%
Holding Ltd.	(Kunshan) Ltd.	computer peripherals,
		hardware/software and related
		products and sale of own-
		produced products
MiTAC Investment	MiTAC Technology	Testing, maintenance and	100%	100%
Holding Ltd.	(Kunshan) Co., Ltd.	display of computer components
		and related technical advisory
		services and after-sale services
MiTAC Investment	MiTAC Logistic	Agency of freight transport,	100%	100%
Holding Ltd.	Service (Kunshan)	export and import trading and
	Ltd.	warehousing services.
MiTAC Investment	MiTAC Information	After-sale maintenance, testing	100%	100%
Holding Ltd.	Technology Ltd.	and technical advisory services
		of computers, communication
		products and consumer
		electronic products;
		establishment of customer
		service centers; customer data
		processing, analysis and
		integrated services and business
		administration services
MiTAC Star	MiTAC Computer	Manufacture of computer frame,	100%	100%
Service Ltd.	(Shunde) Corp.	motherboard, interface card,
		display, power supply, keyboard,
		related metal stamping parts and
		plastic parts and maintenance of
		motherboard
MiTAC Computer	MiTAC Information	Sales and manufacturing of	100%	100%
(Kunshan) Ltd	Systems (Kunshan)	computer accessories, hardware,
	Co., Ltd.	software and related services

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Ownership (%)
December December
Investor Subsidiary Main activities 31, 2020 31, 2019 Remarks
----- End of picture text -----

Investor	Subsidiary	Main activities	December 31,2020 Owners	December 31, 2019 Remarks hip (%)
Software Insights	MiTAC Research	Research, development and	100%	100%
Ltd.	(Shanghai) Ltd.	manufacture of computer
		software, sale of own-produced
		products and related technical
		advisory services
Software Insights	MiTAC Innovation	Research and development of	100%	100%
Ltd.	(Kunshan) Ltd.	calculator, server, mobile phone,
		PDA and GPS, and technical
		transfer, technical advisory and
		technical services of related
		R&D products
Mio International	Mio Technology	Sale of communication products	100%	100%
Ltd.	(Suzhou) Ltd.	and related after-sale services

  - Note 1:On May 23, 2019, MiTAC Digital Technology Corp. increased its capital by issuing new shares amounting to 6,000 thousand shares. MiTAC Holdings Corp. acquired 3,000 thousand shares, and Tsu Fung Investment Corp. acquired 1,000 thousand shares.

  - Note 2: Newly established subsidiary in the third quarter of 2019, the Group has substantial control over Hyve Design Solutions Corporation, thus was listed as a consolidated entity. However, on August 19, 2020, the group lost control over it as the Group has no current ability to direct its relevant activities, thus, it was removed as a consolidated entity.

  - Note 3: It completed the liquidation in 2020.

• C. Subsidiaries not included in the consolidated financial statements: None.

• D. Adjustments for subsidiaries with different balance sheet dates: None.

• E. Nature and extent of the restrictions on fund remittance from subsidiaries to the parent company: None.

• F. Subsidiaries that have non-controlling interests that are material to the Group: None.

• (4) 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 recognised 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

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arising upon re-translation at the balance sheet date are recognised 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 recognised 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 recognised 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.

• B. Translation of foreign operations

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

  • i. Assets and liabilities for each balance sheet presented are translated at the spot exchange rate at the date of that balance sheet;

  • ii. Income and expenses for each statement of comprehensive income are translated at average exchange rates of that period.

  • iii. All resulting exchange differences are recognised in other comprehensive income.

• (b) When the foreign operation partially disposed of or sold is an associate, exchange differences that were recorded in other comprehensive income are proportionately reclassified to profit or loss as part of the gain or loss on sale. In addition, even when the Group retains partial interest in the former foreign associate after losing significant influence over the former foreign associate, such transactions should be accounted for as disposal of all interest in these foreign operations.

• (c) When the foreign operation partially disposed of or sold is a subsidiary, cumulative exchange differences that were recorded in other comprehensive income are proportionately transferred to the non-controlling interest in this foreign operation. In addition, even when the Group retains partial interest in the former foreign subsidiary after losing control of the former foreign subsidiary, such transactions should be accounted for as disposal of all interest in the foreign operation.

(5) Classification of current and non-current items

• A. Assets that meet one of the following criteria are classified as current assets; otherwise they are classified as non-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

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be exchanged or used to settle liabilities more than twelve months after the balance sheet date.

• B. Liabilities that meet one of the following criteria are classified as current liabilities; otherwise they are classified as non-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.

• (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 and financial liabilities at fair value through profit or loss

• A. Financial assets at amortized cost or fair value through other comprehensive income are designated as at fair value through profit or loss at initial recognition when they eliminate or significantly reduce a measurement or recognition inconsistency.

• B. On a regular way purchase or sale basis, financial assets at fair value through profit or loss are recognised and derecognised using trade date accounting.

• C. At initial recognition, the Group measures the financial assets at fair value and recognises the transaction costs in profit or loss. The Group subsequently measures the financial assets at fair value, and recognises the gain or loss in profit or loss.

• D. The Group recognises 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 recognise 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 recognised and derecognised using trade date accounting.

• C. At initial recognition, the Group measures the financial assets at fair value plus transaction costs.

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The Group subsequently measures the financial assets at fair value:

The changes in fair value of equity investments that were recognised 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 recognised 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) Financial assets at amortised cost

• A. Financial assets at amortised cost are those that meet all of the following criteria:

• (a) The objective of the Group’s business model is achieved by collecting contractual cash flows.

• (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 amortised cost are recognised and derecognised using trade date accounting.

• C. At initial recognition, the Group measures the financial assets at fair value plus transaction costs. Interest income from these financial assets is included in finance income using the effective interest method. A gain or loss is recognised in profit or loss when the asset is derecognised or impaired.

• (10) 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.

• (11) Impairment of financial assets

• For debt instruments measured at fair value through other comprehensive income and financial assets at amortized cost (including accounts receivable or contract assets that have a significant financing component, lease receivables, loan commitments and financial guarantee contracts), at each reporting date, the Group recognises the impairment provision for 12 months expected credit losses if there has not been a significant increase in credit risk since initial recognition or recognises 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 recognises the impairment provision for lifetime ECLs.

(12) Derecognition of financial assets

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

The Group derecognises a financial asset when one of the following conditions is met:

• A. The contractual rights of the cash flows from the financial asset expire.

• B. The contractual rights to receive cash flows of the financial asset have been transferred and the

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Group has transferred substantially all risks and rewards of ownership of the financial asset.

• C. The contractual rights to receive cash flows of the financial asset have been transferred; however, the Group has not retained control of the financial asset.

• (13) Leasing arrangements(lessor) operating leases

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

• (14) Inventories

• A. The perpetual inventory system is adopted for inventory recognition. Inventories are stated at standard cost, and adjusted at the end of reporting period to approximate them to the cost calculated on a weighted average method.

• B. At the end of period, inventories are evaluated at the lower of cost or net realizable value, and the individual item approach is used in the comparison of cost and net realizable value. The calculation of net realizable value should be based on the estimated selling price in the normal course of business, net of estimated costs of completion and estimated selling expenses.

• (15) Non-current assets held for sale

• Non-current assets 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.

• (16) Investments accounted for using equity method / associates

• A. Associates are all entities over which the Group has significant influence but not control. In general, it is presumed that the investor has significant influence, if an investor holds, directly or indirectly 20 percent or more of the voting power of the investee. Investments in associates are accounted for using the equity method and are initially recognised at cost.

• B. The Group’s share of its associates’ post-acquisition profits or losses is recognised in profit or loss, and its share of post-acquisition movements in other comprehensive income is recognised in other comprehensive income. When the Group’s share of losses in an associate equals or exceeds its interest in the associate, including any other unsecured receivables, the Group does not recognise further losses, unless it has incurred legal or constructive obligations or made payments on behalf of the associate.

• C. When changes in an associate’s equity do not arise from profit or loss or other comprehensive income of the associate and such changes do not affect the Group’s ownership percentage of the associate, the Group recognises change in ownership interests in the associate in ‘capital surplus’ in proportion to its ownership.

• D. Unrealised gains on transactions between the Group and its associates are eliminated to the extent of the Group’s interest in the associates. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred. Accounting policies of associates have been adjusted where necessary to ensure consistency with the policies adopted by the Group.

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• E. In the case that an associate issues new shares and the Group does not subscribe or acquire new shares proportionately, which results in a change in the Group’s ownership percentage of the associate but maintains significant influence on the associate, then ‘capital surplus’ and ‘investments accounted for using the equity method’ shall be adjusted for the increase or decrease. If the above condition causes a decrease in the Group’s ownership percentage of the associate, in addition to the above adjustment, the amounts previously recognised in other comprehensive income in relation to the associate are reclassified to profit or loss proportionately on the same basis as would be required if the relevant assets or liabilities were disposed of.

• F. When the Group disposes its investment in an associate and loses significant influence over this associate, the amounts previously recognised in other comprehensive income in relation to the associate, are reclassified to profit or loss, on the same basis as would be required if the relevant assets or liabilities were disposed of. If it retains significant influence over this associate, the amounts previously recognised in other comprehensive income in relation to the associate are reclassified to profit or loss proportionately in accordance with the aforementioned approach.

• G. When the Group disposes its investment in an associate and loses significant influence over this associate, the amounts previously recognised as capital surplus in relation to the associate are transferred to profit or loss. If it retains significant influence over this associate, the amounts previously recognised as capital surplus in relation to the associate are transferred to profit or loss proportionately.

• (17) 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 recognised 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 discarded assets is derecognised when critical repairs are incurred, and other repair expenses are charged to profit or loss for the period when they incur.

• 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:

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Buildings and structures (included utility equipment)	5 ~ 55 years
Machinery and equipment	2 ~ 10 years
Transportation equipment	4 ~ 5 years
Leasehold improvements	2 ~ 5 years
Other equipment	2 ~ 7 years

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

• A. Leases are recognised 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 recognised 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 the following:

  • (a) Fixed payments, less any lease incentives receivable; and

  • (b) Variable lease payments that depend on an index or a rate.

  • The Group subsequently measures the lease liability at amortised cost using the interest method and recognises interest expense over the lease term. The lease liability is remeasured and the amount of remeasurement is recognised 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; and

  • (b) Any lease payments made at or before the commencement date.

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 recognised as an adjustment to the right-of-use asset.

(19) 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 20 ~ 55 years.

(20) Intangible assets

The use right of computer software was capitalised based on the acquisition cost and cost to prepare the specific software to become usable. Computer software was amortized based on the contract or on a straight-line basis over 5 years.

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(21) 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 recognised 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 recognising 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 recognised.

(22) Borrowings

Borrowings comprise long-term and short-term bank borrowings and other long-term and shortterm loans. Borrowings are recognised initially at fair value, net of transaction costs incurred. Borrowings are subsequently stated at amortized cost; any difference between the proceeds (net of transaction costs) and the redemption value is recognised in profit or loss over the period of the borrowings using the effective interest method.

(23) 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.

• 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.

(24) Derecognition of financial liabilities

A financial liability is derecognised when the obligation under the liability specified in the contract is discharged or cancelled or expires.

(25) Offsetting financial instruments

Financial assets and liabilities are offset and reported in the net amount in the balance sheet when there is a legally enforceable right to offset the recognised amounts and there is an intention to settle on a net basis or realize the asset and settle the liability simultaneously.

• (26) Provisions

Provisions are recognised when the Group has a present legal or constructive obligation as a result of past events, and it is probable that an outflow of economic resources will be required to settle the obligation and the amount of the obligation can be reliably estimated. Provisions are measured at the present value of the expenditures expected to be required to settle the obligation on the balance sheet date. Provisions are not recognised for future operating losses.

(27) 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 recognised as expense in that period when the employees render service.

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B. Pensions

(a) Defined contribution plans

For defined contribution plans, the contributions are recognised as pension expense when they are due on an accrual basis. Prepaid contributions are recognised 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 recognised 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 high-quality corporate bonds that are denominated in the currency in which the benefits will be paid, and that have terms to maturity approximating to the terms of the related pension liability; when there is no deep market in high-quality corporate bonds, the Group uses interest rates of government bonds (at the balance sheet date) instead.

     - ii. Remeasurements arising on defined benefit plans are recognised in other comprehensive income in the period in which they arise and are recorded as retained earnings.

• C. Employees’ compensation and directors’ and supervisors’ remuneration

  • Employees’ compensation and directors’ and supervisors’ remuneration are recognised as expenses and liabilities, 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. If employee compensation is distributed by shares, the Group calculates the numbers of shares based on the closing price at the previous day of the board meeting resolution.

• (28) Employee share based payment

• For the equity-settled share-based payment arrangements, the employee services received are measured at the fair value of the equity instruments granted at the grant date, and are recognised as compensation cost over the vesting period, with a corresponding adjustment to equity. The fair value of the equity instruments granted shall reflect the impact of market vesting conditions and vesting conditions. Compensation cost is subject to adjustment based on the service conditions that are expected to be satisfied and the estimates of the number of equity instruments that are expected to vest under the non-market vesting conditions at each balance sheet date. Ultimately, the amount of compensation cost recognised is based on the number of equity instruments that eventually vest.

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(29) Income tax

• A. The tax expense for the period comprises current and deferred tax. Tax is recognised in profit or loss, except to the extent that it relates to items recognised in other comprehensive income or items recognised directly in 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 recognised, 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 income tax asset is realized or the deferred income tax liability is settled.

• D. Deferred tax assets are recognised 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, unrecognised and recognised 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 recognised amounts and there is an intention to settle on a net basis or realize the asset and settle the liability simultaneously. Deferred income 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.

• F. A deferred tax asset shall be recognised for the carryforward of unused tax credits resulting from research and development expenditures to the extent that it is possible that future taxable profit will be available against which the unused tax credits can be utilized.

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(30) Share capital

• A. 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.

• B. Where the Company repurchases the Company’s equity share capital that has been issued, the consideration paid, including any directly attributable incremental costs (net of income taxes) is deducted from equity attributable to the Company’s equity holders. Where such shares are subsequently reissued, the difference between their book value and any consideration received, net of any directly attributable incremental transaction costs and the related income tax effects, is included in equity attributable to the Company’s equity holders.

• (31) 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.

• (32) Revenue recognition

• A. Sales of goods

  • (a) The Group manufactures and sells cloud computing products and mobile communication products. Sales are recognised when control of the products has transferred, being when the products are delivered to the customer, 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) Revenue from sales is recognised based on the price specified in the contract, net of the sales returns and sales discounts. The Group provides to customers the sales return right and sales discounts and recognises refund liability for expected sales discounts payable to customers in relation to sales by using the expected value method.

  • (c) The Group’s obligation to provide maintenance services for faulty products under the standard warranty terms is recognised as a provision.

  • (d) A receivable is recognised 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.

• B. Sales of services

  • (a) The Group provides technology services and installment repairs and maintenance services. Revenue from providing services is recognised in the accounting period in which the services are rendered. The customer pays at the time specified in the payment schedule. If the services rendered exceed the payment, a contract asset is recognised. If the payments exceed the

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services rendered, a contract liability is recognised.

  - (b) Some contracts include multiple deliverables. Such services are accounted for as a single performance obligation as they are highly interrelated and indistinguishable.

• C. Incremental costs of obtaining a contract

  • The Group recognises as an asset the incremental costs of obtaining a contract with a customer if the Group expects to recover those costs. The recognised asset is amortized on a systematic basis that is consistent with the transfers to the customer of the goods or services to which the asset relates.

• (33) Business combinations and organization restructuring

• A. The Group uses the acquisition method to account for business combinations. The consideration transferred for an acquisition is measured as the fair value of the assets transferred, liabilities incurred or assumed and equity instruments issued at the acquisition date, plus the fair value of any assets and liabilities resulting from a contingent consideration arrangement. All acquisitionrelated costs are expensed as incurred. Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are measured initially at their fair values at the acquisition date. There is a choice on an acquisition-by-acquisition basis to measure the noncontrolling interest in the acquiree either at fair value or at the non-controlling interest’s proportionate share of the acquiree’s identifiable net assets.

• B. If the total of the fair values of the consideration of acquisition and any non-controlling interest in the acquiree as well as the previous equity interest in the acquiree is higher than the fair value of the Group’s identifiable assets acquired and obligations borne, goodwill is recognised at the acquisition-date. If the fair value of the Group’s identifiable assets acquired and obligations borne is higher than the total of the fair values of the consideration of acquisition, non-controlling interest in the acquiree, as well as previous equity interest in the acquire, the difference is recognised in profit or loss for the period at the acquisition date.

• C. The newly established investment holding company through share swap is jointly controlled under business combination. Under regulations of competent authority, the investment holding company is recorded at the carrying value and is included in the consolidated financial statements at the date of establishment.

• (34) 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.

1. 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

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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

• 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. Therefore, there might be material changes to the evaluation.

As of December 31, 2020, the carrying amount of inventories is described in Note 6 (6).

6. DETAILS OF SIGNIFICANT ACCOUNTS

(1) Cash and cash equivalents

TAILS OF SIGNIFICANT ACCOUNTS Cash and cash equivalents
Cash: Cash on hand and petty cash Checking accounts and demand deposits Cash equivalents: Time deposits Repurchased bonds Total	December 31,2020 753 $ 4,145,332 1,659,212 - 5,805,297 $	December 31, 2019
		655 $ 4,173,574 2,045,199 445,138
		6,664,566 $

• 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.

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

Items December 31, 2020 December 31, 2019

Items	December 31,2020	December 31,2019
Current items: Financial assets mandatorily measured at fair value through profit or loss Beneficiary certificates Derivatives Subtotal Valuation adjustment - Beneficiary certificates Valuation adjustment - Derivatives Total	- $ - - - 6,107 6,107 $	78,000 $ -
		78,000 - 21,948
		99,948 $

• A. The Group recognised net loss of ($15,747) and net gain of $17,170 on financial assets at fair value through profit or loss for the years ended December 31, 2020 and 2019, respectively.

• B. The non-hedging derivative instrument transactions and contract information are as follows：

	December 31, 2020	December 31, 2020
		Notional Amount	Fair Market Value
Financial Instrument	Item	(in thousands)	(in thousands)
MiTAC Computing Technology Corp.
Forward foreign exchange - Sell	Advance booking USD to buy NTD	USD 20,500	NTD 4,014
Forward foreign exchange - Buy	Advance booking USD to sell NTD	USD 13,000	NTD 1,376
MiTAC Digital Technology Corp.
Forward foreign exchange - Sell	Advance booking USD to buy NTD	USD 2,500	NTD 567
Forward foreign exchange - Buy	Advance booking USD to sell NTD	USD 4,000	NTD 130
MiTAC Technology (KunShan) Co., Ltd.
Forward foreign exchange - Sell	Advance booking USD to buy CNY	USD 300	CNY 5

Financial Instrument MiTAC Computing Technology Corp. Forward foreign exchange - Sell Forward foreign exchange - Buy Swap - Sell MiTAC Digital Technology Corp. Forward foreign exchange - Sell Forward foreign exchange - Buy Swap - Sell	December 31,2019	December 31,2019
	Item Advance booking USD to buy NTD Advance booking USD to sell NTD Advance booking USD to buy NTD Advance booking USD to buy NTD Advance booking USD to sell NTD Advance booking USD to buy NTD	Notional Amount Fair Market Value (in thousands) (in thousands) USD 24,000 NTD 5,596 USD 10,000 NTD 786 USD 27,500 NTD 8,323 USD 9,000 NTD 2,254 USD 3,000 NTD 233 USD 17,000 NTD 4,756

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

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• D. Information relating to credit risk of financial assets at fair value through profit or loss is provided in Note 12(2).

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

==> picture [489 x 206] intentionally omitted <==

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

Items December 31, 2020 December 31, 2019
Current items:
Equity instruments
Listed stocks $ 800,614 $ 718,157
Valuation adjustment 432,229 173,893
Total $ 1,232,843 $ 892,050
Non-current items:
Equity instruments
Listed stocks $ 1,225,051 $ 1,225,051
Unlisted stocks 1,794,303 1,802,315
Subtotal 3,019,354 3,027,366
Valuation adjustment 3,046,395 1,648,472
Total $ 6,065,749 $ 4,675,838
----- End of picture text -----

• A. The Group recognised $1,644,487 and $1,263,333 in other comprehensive income (loss) for fair value change for the years ended December 31, 2020 and 2019, respectively.

• B. The Group has elected to designate the above investments, which were held mainly for medium to long-term trading purposes, as investments in equity instruments measured at fair value through other comprehensive income. As of December 31, 2020 and 2019, the fair value of investments was $7,298,592 and $5,567,888, respectively.

• C. The Group sold $16,211 and $37,299 of its investments at fair value and resulted in cumulative gains (losses) on disposal of ($11,382) and $10,671 during the years ended December 31, 2020 and 2019, respectively.

(4) Financial assets at amortised cost

==> picture [487 x 15] intentionally omitted <==

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

Items December 31, 2020 December 31, 2019
----- End of picture text -----

Current items: Structured deposits	- $	490,770 $

• A. As of 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 financial assets at amortised cost held by the Group was $0 and $490,770, respectively.

• B. Information relating to credit risk of financial assets at amortised cost is provided in Note 12(2).

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(5) Accounts receivable

Accounts receivable
		December	31,2020		December	31,2019
Third parties	$		5,073,532	$		6,260,109
Less: Allowance for bad debts	(		91,482)	(		77,034)
			4,982,050			6,183,075
Related parties			215,960			289,650
	$		5,198,010	$		6,472,725

• A. The ageing analysis of accounts receivable that were past due but not impaired is as follows:

Not past due Up to 90 days 91 to 180 days Over 181 days	5,011,648 $ 5,304,457 $ 248,007 1,190,641 1,680 9,085 28,157 45,576 5,289,492 $ 6,549,759 $ December 31,2020 December 31,2019

The above ageing analysis was based on past due date.

• B. As of December 31, 2020 and 2019, accounts receivable and notes receivable were all from contracts with customers. And as of January 1, 2019, the balance of accounts receivable from contracts with customers amounted to $5,179,203.

• C. As of 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 accounts receivable was $5,198,010 and $6,472,725, respectively.

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

(6) Inventories

Inventories
Expense and loss incurred on inventories: Raw materials Work in process Finished goods Total Cost of goods sold Loss on decline in market value	December 31,2020 Book value 6,699,085 $ 643,449 1,780,470 9,123,004 $ For the year ended December 31,2020 36,383,655 $ 137,040 36,520,695 $	December 31,2019
		Book value
		4,851,569 $ 1,030,705 1,879,394
		7,761,668 $
		For the year ended December 31,2019
		30,410,330 $ 231,906
		30,642,236 $

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(7) Other financial assets

Other financial assets
Current: Pledged deposits Non-current: Pledged deposits Total	December 31,2020 8,754 $ 35,253 44,007 $	December 31,2019 8,761 $
		35,185
		43,946 $

• A. Information relating to credit risk of other financial assets is provided in Note 12(2).

• B. Information about other financial assets that were pledged to others as collateral are described in Note 8.

(8) Investments accounted for using equity method

A.

Investee company Getac Technology Corp. 3 Probe Technology Co., Ltd. Lian Jie Investment Co., Ltd. Lian Jie II Investment Co., Ltd. Shen-Tong Construction & Development Co., Ltd. Mainpower International Ltd. Concentrix Corp. Synnex Corp. Suzhou MiTAC Preclusion Technology Co., Ltd. Loyal Fidelity Aerospace Corp. Harbinger Ruyi Venture Ltd. Harbinger Ruyi II Venture Ltd. Infopower Technologies Ltd.	December 31,2020 5,249,079 $ 13,962 168,258 42,467 86,012 240,230 6,677,974 5,977,703 354,254 123,406 18,970 49,096 70,278 19,071,689 $	December 31,2019
		4,891,103 $ 12,850 109,468 33,239 86,216 211,748 - 11,551,123 311,984 127,083 20,117 26,334 74,439
		17,455,704 $

B. The Group’s recognised share of profit from associates accounted for using equity method for the years ended December 31, 2020 and 2019 were $2,415,388 and $2,239,887, respectively, and recognised share of other comprehensive income (loss) from associates accounted for using equity method were $203,184 and ($361,182), respectively.

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C. The basic information of the associates that are material to the Group is as follows:

==> picture [474 x 31] intentionally omitted <==

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

Company Principal place Shareholding ratio Nature of Methods of
name of business December 31, 2020 December 31, 2019 relationship measurement
----- End of picture text -----

name	of business	December 31, 2020	December 31,20	19 relationship	measurement
Getac Technology Corp.	Taiwan	32.31%	32.66%	Owned over 20% ownership	Equity method
Synnex Corp.	USA	10.28%	10.19%	Significant influence	Equity method
Concentrix Corp.	USA	10.28%	-	Significant influence	Equity method

D. The summarized financial information of the associates that are material to the Group is as follows: Balance sheet

			Getac TechnologyCorp.	Getac TechnologyCorp.	Getac TechnologyCorp.
		December 31,2020		December 31, 2019
Current assets	$		19,825,742	$	18,561,740
Non-current assets			14,029,191		12,045,855
Current liabilities	(		11,735,921)	(	10,341,481)
Non-current liabilities	(		4,125,717)	(	3,593,374)
Non-controlling interest	(		1,748,248)	(	1,696,010)
Total net assets	$		16,245,047	$	14,976,730
Share in associate’s net assets	$		5,249,079	$	4,891,103
			Synnex	Corp.
		December 31,2020		December 31,2019
Current assets	$		209,922,862	$	223,440,700
Non-current assets			27,111,310		145,870,358
Current liabilities	(		132,336,507)	(	138,121,517)
Non-current liabilities	(		46,502,998)	(	117,790,970)
Total net assets	$		58,194,667	$	113,398,571
Share in associate’s net assets	$		5,977,703	$	11,551,123

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Statement of comprehensive income Current assets Non-current assets Current liabilities Non-current liabilities Total net assets Share in associate’s net assets Revenue Profit for the period from continuing operations Other comprehensive gain (loss) - net of tax Total comprehensive income Dividends received from associates Revenue Profit for the period from continuing operations Other comprehensive gain (loss) - net of tax Total comprehensive income Dividends received from associates

December 31,2020 December 31,2019 40,537,748 $ - $ 106,421,273 - 28,782,657) ( - 53,166,720) ( - 65,009,644 $ - $ 6,677,974 $ - $ Concentrix Corp. For the year ended For the year ended December 31, 2020 December 31, 2019 27,837,743 $ 26,952,910 $ 2,668,793 $ 2,369,928 $ 95,120 385,738) ( 2,763,913 $ 1,984,190 $ 532,345 $ 570,870 $ Getac Technology Corp. For the year ended For the year ended December 31, 2020 December 31,2019 729,177,445 $ 734,381,402 $ 15,514,505 $ 14,914,583 $ 415,068 2,498,726) ( 15,929,573 $ 12,415,857 $ 63,107 $ 242,966 $ Synnex Corp.

Note: Concentrix Corp. was established on December 1, 2020 and its fiscal year ends on November

1. Thus, the information related to its statement of comprehensive income was not available in 2020.

2. E. The carrying amount of the Group’s interests in all individually immaterial associates and the Group’s share of the operating results are summarized below:

As of December 31, 2020 and 2019, the carrying amount of the Group’s individually immaterial associates amounted to $1,166,933 and $1,013,478, respectively.

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		For the year ended		For the year ended
	December 31,2020		December 31,2019
Profit for the year from continuing	$	234,673	$	93,262
operations
Other comprehensive gain (loss) - net of tax		357,805	(	46,530)
Total comprehensive income	$	592,478	$	46,732
The fair value of the Group’s material associates	with quoted market prices		is	as follows:
	December 31,2020		December 31,2019
Getac Technology Corp.	$	9,310,410	$	8,891,537
Synnex Corp.		12,292,833		20,233,785
Concentrix Corp.		14,898,117		-
	$	36,501,360	$	29,125,322

• F. The fair value of the Group’s material associates with quoted market prices is as follows:

• G. The Group increased its investment in Synnex Corp. amounting to $131,207 for the year ended December 31, 2020.

• H. The Group holds 13.28% ownership in Mainpower International Ltd. but has significant influence over Mainpower International Ltd. as the Group serves as this company’s corporate director.

• I. The Group holds 10.28% ownership in Synnex Corp. but has significant influence over Synnex Corp. as the Group is the major shareholder of Synnex Corp. and the Company’s chairman Feng Chiang Miau serves as this company’s honorary chairman.

• J. On December 1, 2020, Synnex Corp. completed the spin-off and established Concentrix Corp. The numbers of shares of Concentrix Corp. acquired by the shareholders of Synnex Corp. is equivalent to the numbers of shares in Synnex Corp. they held. Given that the Group is the major shareholder and one of the directors of Concentrix Corp., these indicate that the Group has significant influence over it.

• K. Synnex Corp. and Concentrix Corp.’s fiscal year ends on November 30, thus, the Group uses the financial information from December 1, 2019 to November 30, 2020 as the basis for the preparation of annual consolidated financial statements; Infopower Technologies Ltd.’s fiscal year ends on March 31, thus, the Group uses the financial information from January 1 to December 31 as the basis for the preparation of annual consolidated financial statements; other associates’ fiscal year all end on December 31.

• L. On August 19, 2020, the Group has no current ability to direct the decisions of relevant activities on meetings of their Board of Directors of Hyve Design Solutions Corporation. Thus, the Group lost control, but has significant influence over the associate. As a result, the Group derecognised the assets, liabilities and non-controlling interest of Hyve Design Solutions Corporation in their carrying amount on the date that control ceased from the consolidated financial statements according to IAS 10. The Group recognised the retained 50% share of the investment as the investment accounted for using equity method – associate at fair value on August 19, 2020 and reclassified the other comprehensive income previously recognised into profit or loss, resulting in

~43~

• a total disposal loss of $2,044. As of December 31, 2020, the carrying amount of the associate was ($22,604), shown as other non-current liabilities.

• M. The Group is the single largest shareholder of certain associates. Given that the Group has no majority voting rights, which indicates that the Group has no current ability to direct the decisions of relevant activities on meetings of their Board of Directors and shareholders after the comprehensive assessment. Thus, the Group has no control, but only has significant influence, over the associates.

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(9) Property, plant and equipment

At January 1, 2020 Cost Accumulated depreciation and impairment 2020 At January 1 Additions Disposal Reclassifications Effects from disposal of subsidiaries Depreciation Effects of foreign exchange At December 31 At December 31, 2020 Cost Accumulated depreciation and impairment	Construction Computer and in progress Buildings communication Transportation Office Leasehold Molding Other and equipment Land and structures Machinery equipment equipment equipment improvements equipment equipment under inspection Total 1,094,943 $ 6,425,643 $ 2,547,343 $ 201,072 $ 72,293 $ 192,175 $ 132,544 $ 122,834 $ 1,083,777 $ 937,087 $ 12,809,711 $ - 2,546,673) ( 1,408,956) ( 138,320) ( 45,991) ( 148,115) ( 42,481) ( 32,358) ( 635,822) ( - 4,998,716) ( 1,094,943 $ 3,878,970 $ 1,138,387 $ 62,752 $ 26,302 $ 44,060 $ 90,063 $ 90,476 $ 447,955 $ 937,087 $ 7,810,995 $ 1,094,943 $ 3,878,970 $ 1,138,387 $ 62,752 $ 26,302 $ 44,060 $ 90,063 $ 90,476 $ 447,955 $ 937,087 $ 7,810,995 $ - 6,959 210,600 16,818 8,701 9,700 36,651 57,366 175,319 257,889 780,003 - 1,836) ( 1,297) ( 263) ( - 33) ( 60) ( - 4,906) ( - 8,395) ( - 9,825 63,288 378 - 295 6,242 - 18,213 85,827) ( 12,414 - - - - - 3,925) ( 10,706) ( - 16,295) ( - 30,926) ( - 223,466) ( 313,311) ( 34,016) ( 9,940) ( 19,595) ( 26,376) ( 48,156) ( 160,571) ( - 835,431) ( 9,561) ( 4,259) ( 14,028 228 115 46 123 - 5,051 18,656 24,427 1,085,382 $ 3,666,193 $ 1,111,695 $ 45,897 $ 25,178 $ 30,548 $ 95,937 $ 99,686 $ 464,766 $ 1,127,805 $ 7,753,087 $ 1,085,382 $ 6,450,874 $ 2,825,267 $ 179,594 $ 78,039 $ 187,613 $ 156,264 $ 160,589 $ 1,187,180 $ 1,127,805 $ 13,438,607 $ - 2,784,681) ( 1,713,572) ( 133,697) ( 52,861) ( 157,065) ( 60,327) ( 60,903) ( 722,414) ( - 5,685,520) ( 1,085,382 $ 3,666,193 $ 1,111,695 $ 45,897 $ 25,178 $ 30,548 $ 95,937 $ 99,686 $ 464,766 $ 1,127,805 $ 7,753,087 $	Total
		12,809,711 $ 4,998,716) (
		7,810,995 $
		7,753,087 $
		13,438,607 $ 5,685,520) (
		7,753,087 $

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At January 1, 2019 Cost Accumulated depreciation and impairment 2019 At January 1 Additions Disposal Reclassifications(Note) Depreciation Effects of foreign exchange At December 31 At December 31, 2019 Cost Accumulated depreciation and impairment	Construction Computer and in progress Buildings communication Transportation Office Leasehold Molding Other and equipment Land and structures Machinery equipment equipment equipment improvements equipment equipment under inspection Total 1,099,628 $ 6,617,508 $ 2,134,328 $ 214,103 $ 68,235 $ 195,983 $ 78,337 $ 100,873 $ 965,207 $ 453,616 $ 11,927,818 $ - 2,448,102) ( 1,345,283) ( 167,487) ( 42,882) ( 144,141) ( 25,180) ( 42,666) ( 557,466) ( - 4,773,207) ( 1,099,628 $ 4,169,406 $ 789,045 $ 46,616 $ 25,353 $ 51,842 $ 53,157 $ 58,207 $ 407,741 $ 453,616 $ 7,154,611 $ 1,099,628 $ 4,169,406 $ 789,045 $ 46,616 $ 25,353 $ 51,842 $ 53,157 $ 58,207 $ 407,741 $ 453,616 $ 7,154,611 $ - 9,940 560,147 44,012 13,176 11,686 22,178 63,287 203,692 694,398 1,622,516 - 3) ( 13,854) ( 1,450) ( 1,425) ( 189) ( - - 345) ( - 17,266) ( - 12,414) ( 101,381 6,405 - 836 34,242 - 1,321 175,934) ( 44,163) ( - 229,838) ( 259,726) ( 32,391) ( 10,563) ( 19,632) ( 19,223) ( 31,018) ( 153,464) ( - 755,855) ( 4,685) ( 58,121) ( 38,606) ( 440) ( 239) ( 483) ( 291) ( - 10,990) ( 34,993) ( 148,848) ( 1,094,943 $ 3,878,970 $ 1,138,387 $ 62,752 $ 26,302 $ 44,060 $ 90,063 $ 90,476 $ 447,955 $ 937,087 $ 7,810,995 $ 1,094,943 $ 6,425,643 $ 2,547,343 $ 201,072 $ 72,293 $ 192,175 $ 132,544 $ 122,834 $ 1,083,777 $ 937,087 $ 12,809,711 $ - 2,546,673) ( 1,408,956) ( 138,320) ( 45,991) ( 148,115) ( 42,481) ( 32,358) ( 635,822) ( - 4,998,716) ( 1,094,943 $ 3,878,970 $ 1,138,387 $ 62,752 $ 26,302 $ 44,060 $ 90,063 $ 90,476 $ 447,955 $ 937,087 $ 7,810,995 $	Total
		11,927,818 $ 4,773,207) (
		7,154,611 $

Note: For the year ended December 31, 2019, the Group reclassified property, plant and equipment to investment property in the amount of $40,965.

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－ (10) Leasing arrangements lessee

• A. The Group leases various assets including land, buildings and structures, machinery, office equipment and transportation equipment. Rental contracts are typically made for periods of 1 to 20 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.

• B. Certain leased buildings with lease terms under 12 months are short-term lease agreements. Additionally, the leased office equipment were low-value assets.

• C. The carrying amount of right-of-use assets and the depreciation charge are as follows:

December 31, 2020 Carrying amount Land $ 238,179 Buildings and structures 118,168 Machinery 389 Transportation equipment 3,138 359,874 $ Year ended December 31, 2020 Depreciation charge Land $ 14,160 Buildings and structures 38,803 Machinery 334 Transportation equipment 897 54,194 $		December 31, 2019 Carryingamount $ 303,651 77,120 716 - 381,487 $ Year ended December 31,2019
		Depreciation charge
		$ 17,362 41,965 322 - 59,649 $

• D. For the years ended December 31, 2020 and 2019, the additions to right-of-use assets were $95,650 and $1,031, respectively.

• E. The right-of-use assets reclassified to non-current assets held for sale amounted to $56,602 for the year ended December 31, 2020. Please refer to Note 6(14)B for details.

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

Items affecting profit or loss Interest expense on lease liabilities Expense on short-term lease contracts Expense on leases of low-value assets	Year ended December 31,2020	Year ended December 31,2019
	$ 4,143 20,528 4,910	$ 5,768 46,097 8,721

• G. For the years ended December 31, 2020 and 2019, the Group’s total cash outflow for leases was $80,836 and $104,791, respectively.

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－ (11) Leasing arrangements lessor

• A. The Group leases various assets including buildings and structures. Rental contracts are typically made for periods of 1 to 8 years. Lease terms are negotiated on an individual basis and contain a wide range of different terms and conditions.

• B. For the years ended December 31, 2020 and 2019, the Group recognised rent income in the amounts of $103,990 and $119,315, respectively, based on the operating lease agreement, which does not include variable lease payments.

• C. The maturity analysis of the lease payments under the operating leases is as follows:

Later than one year but not later than five years Over five years Not later than one year	December 31, 2020 December 31, 2019 108,941 $ 86,470 $ 141,206 184,601 6,211 9,502 256,358 $ 280,573 $

(12) Investment property

At January 1, 2020 Cost Accumulated depreciation and impairment 2020 At January 1 Depreciation Effects of foreign exchange At December 31 At December 31, 2020 Cost Accumulated depreciation and impairment	Buildings Land and structures Total 954,213 $ 598,434 $ 1,552,647 $ - 309,826) ( 309,826) ( 954,213 $ 288,608 $ 1,242,821 $ 954,213 $ 288,608 $ 1,242,821 $ - 19,351) ( 19,351) ( 622 5,339 5,961 954,835 $ 274,596 $ 1,229,431 $ 954,835 $ 609,265 $ 1,564,100 $ - 334,669) ( 334,669) ( 954,835 $ 274,596 $ 1,229,431 $

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				Buildings
		Land		and structures		Total
At January 1, 2019
Cost	$	829,131	$	613,313	$	1,442,444
Accumulated depreciation and
impairment		-	(	314,152)	(	314,152)
	$	829,131	$	299,161	$	1,128,292
2019
At January 1	$	829,131	$	299,161	$	1,128,292
Additions		125,783		-		125,783
Reclassified as non-current assets
held for sale		-	(	21,263)	(	21,263)
Reclassifications		-		40,965		40,965
Depreciation		-	(	20,601)	(	20,601)
Effects of foreign exchange	(	701)	(	9,654)	(	10,355)
At December 31	$	954,213	$	288,608	$	1,242,821
At December 31, 2019
Cost	$	954,213	$	598,434	$	1,552,647
Accumulated depreciation and
impairment		-	(	309,826)	(	309,826)
	$	954,213	$	288,608	$	1,242,821

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

property are shown below：
Rental income from the lease of the investment property Direct operating expenses arising from the investment property that generated rental income in the period Direct operating expenses arising from the investment property that did not generate rental income in the period	For the year ended December 31,2020 21,995 $ 16,722 $ 13,180 $	For the year ended December 31,2019
		30,490 $
		18,212 $
		10,698 $

B. The fair value of the investment property held by the Group on December 31, 2020 and 2019 were $3,502,285 and $3,482,639, respectively, which were revalued by independent appraisers and with reference to market transaction prices. Valuations were made using the market approach and cost approach which is categorised within Level 3 in the fair value hierarchy.

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(13) Intangible assets

Intangible assets
		December 31,2020			December 31,2019
At January 1
Cost	$		264,109	$		353,188
Accumulated amortization and impairment	(		174,661)	(		250,400)
	$		89,448	$		102,788
At January 1	$		89,448	$		102,788
Additions			76,994			71,351
Amortization	(		89,722)	(		84,614)
Effects of disposal of subsidiaries	(		835)			-
Effects of foreign exchange			19	(		77)
At December 31	$		75,904	$		89,448
At December 31
Cost	$		275,844	$		264,109
Accumulated amortization and impairment	(		199,940)	(		174,661)
	$		75,904	$		89,448
Details of amortization of intangible assets are as follows:
			For the year ended			For the year ended
		December 31,2020			December 31,2019
Operating costs		$	1,309		$	1,029
Selling expenses			16,544			18,130
Administrative expenses			13,982			12,228
Research and development expenses			57,887			53,227
		$	89,722		$	84,614

(14) Non-current assets held for sale

• A. To cooperate with the local government’s urban development plan through land-use-right expropriation, the Board of Directors adopted a resolution on November 7, 2019 to dispose of the land-use-right and related buildings located in the Shunde District, Foshan City, China through public auction by the Land Arrangement and Reserve Center of Shunde District, Foshan City ( "Foshan-Shunde Land Development Center" ) by way of land-use-right requisition on credit. The titles of land-use-right and related buildings have been transferred to and would be managed by Foshan-Shunde Land Development Center. The disposal of the land-use-right and buildings meets the criteria of sales to be highly probable, therefore the Group reclassified related assets as non-current assets held for sale in December 2019. The transaction will be completed in 2021.

• B. To cooperate with the local government’s need of upgrading and reconstructing rural-level industrial park through land-use-right expropriation, the Board of Directors adopted a resolution

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on December 25, 2020 to dispose of the land-use-right of certain land located in the Shunde District, Foshan City, China to Foshan-Shunde Land Development Center. The disposal of the land-use-right meets the criteria of sales to be highly probable, therefore the Group reclassified related assets from right-of-use assets as non-current assets held for sale.

Non-current assets held for the sale:

Non-current assets held for the sale:
Right-of-use assets Investment property		December 31,2020		December 31,2019
		68,515 $ 21,618 90,133 $		12,268 $ 21,263 33,531 $

(15) Short-term borrowings

Short-term borrowings
Unsecured bank borrowings Interest rates	December 31, 2020 1,443,851 $ 0.56~0.63%	December 31,2019
		3,803,871 $
		0.78%~2.60%

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

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Items December 31, 2020 December 31, 2019
Current items:
Financial liabilities held for trading
Valuation adjustment - Derivatives $ 11,691 $ 8,637
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• A.The Group recognised net loss of ($3,108) and ($7,342) for the years ended December 31, 2020 and 2019, respectively.

• B. The non-hedging derivative instrument transactions and contract information are as follows:

Financial Instrument MiTAC Computing Technology Corp. Forward foreign exchange - Sell Forward foreign exchange - Buy MiTAC Digital Technology Corp. Forward foreign exchange - Sell Forward foreign exchange - Buy Forward foreign exchange - Sell Forward foreign exchange - Sell Silver Star Developments Ltd. Forward foreign exchange - Sell Mitac Australia Pty Ltd. Forward foreign exchange - Buy	December	31,2020
	Item Advance booking USD to buy NTD Advance booking USD to sell NTD Advance booking USD to buy NTD Advance booking USD to sell NTD Advance booking EUR to buy USD Advance booking AUD to buy USD Advance booking EUR to buy USD Advance booking USD to sell AUD	Notional Amount (in thousands) USD 14,000 USD 12,500 USD 6,000 USD 3,500 EUR 800 AUD 3,250 EUR 2,200 USD 100	Fair Market Value (in thousands)
			(NTD 1,085) (NTD 1,562) (NTD 1,141) (NTD 319) (NTD 722) (NTD 4,471) (USD 79) (AUD 6)

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

December 31, 2019
Notional Amount Fair Market Value
Financial Instrument Item (in thousands) (in thousands)
----- End of picture text -----

	Notional Amount Fair Market Value Financial Instrument Item (in thousands) (in thousands) December 31,2019
(17)	Long-term borrowings MiTAC Computing Technology Corp. Forward foreign exchange - Sell Advance booking USD to buy JPY USD 554 (NTD 49) Forward foreign exchange - Buy Advance booking USD to sell NTD USD 17,000 (NTD 2,103) MiTAC Digital Technology Corp. Forward foreign exchange - Buy Advance booking USD to sell NTD USD 4,000 (NTD 453) Forward foreign exchange - Sell Advance booking EUR to buy USD EUR 5,091 (NTD 2,062) Forward foreign exchange - Sell Advance booking AUD to buy USD AUD 6,100 (NTD 2,919) Silver Star Developments Ltd. Forward foreign exchange - Sell Advance booking EUR to buy USD EUR 2,300 (USD 35) Type of borrowings Borrowing period and repayment term Interest rate range Collateral December 31,2020 Long-term bank borrowings Taipei Fubon Bank The borrowing period was from October 15, 2019 to October 15, 2024 and the interest was paid monthly. The grace period was 2 years, if the grace period was over, the borrowing should be repaid monthly in 37 installments. 0.49% None 500,000 $ Bank of Taiwan The borrowing period was from October 15, 2019 to October 15, 2026 and the interest was paid monthly. The grace period was 2 years, if the grace period was over, the borrowing should be repaid monthly in 60 installments. 0.50% None 201,813 Taishin Bank The borrowing period was from October 15, 2019 to October 15, 2024 and the interest was paid monthly. After 3 years from the date of first drawing, the borrowing should be repaid monthly in 24 installments. 0.50% None 50,248
	Type of borrowings Long-term bank borrowings Taipei Fubon Bank Bank of Taiwan Taishin Bank

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Note: Shown as ‘other current liabilities’ Type of borrowings Borrowing period and repayment term Interest rate range Collateral December31,2020 E.SUN Commercial Bank The borrowing period was from October 29, 2019 to October 15, 2026 and the interest was paid monthly. The grace period was 3 years, if the grace period was over, the borrowing should be repaid monthly in 48 installments. 0.50% None 39,500 Taipei Fubon Bank The borrowing period was from August 28, 2020 to October 15, 2026 and the interest was paid monthly. The grace period was 3 years, if the grace period was over, the borrowing should be repaid monthly in 39 installments. 0.49% None 72,000 HSBC Bank USA The borrowing period was from May 8, 2020 to May 7, 2022. After 6 months from the date of first drawing, the principal and interest should be repaid monthly in 18 installments. As the loan is during the moratorium period applied to the United States Government, the repayment of the principal and interest was not commenced as of December 31, 2020. 1.00% None 47,073 910,634 Less: Current portion (Note) 47,268) ( 863,366 $

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Type of borrowings Long-term bank borrowings Taipei Fubon Bank Bank of Taiwan Taishin International Bank E.SUN Commercial Bank Less: Current portion	Borrowing period and repayment term Interest rate range The borrowing period was from October 15, 2019 to October 15, 2024 and the interest was paid monthly. The grace period was 2 years, if the grace period was over, the borrowing should be repaid monthly in 37 installments. 0.70% The borrowing period was from October 15, 2019 to October 15, 2026 and the interest was paid monthly. The grace period was 2 years, if the grace period was over, the borrowing should be repaid monthly in 60 installments. 0.70% The borrowing period was from October 15, 2019 to October 15, 2024 and the interest was paid monthly. After 3 years from the date of first drawing, the borrowing should be repaid monthly in 24 installments. 0.75% The borrowing period was from October 29, 2019 to October 15, 2026 and the interest was paid monthly. The grace period was 3 years, if the grace period was over, the borrowing should be repaid monthly in 48 installments. 0.75%	Collateral None None None None	December 31,2019
			500,000 $ 201,813 50,248 39,500
			791,561 -
			791,561 $

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(18) Pensions

• A.(a) The Company and its domestic subsidiaries have a defined benefit pension plan in accordance with the Labor Standards Law, covering all regular employees’ service years prior to the enforcement of the Labor Pension Act on July 1, 2005 and service years thereafter of employees who chose to continue to be subject to the pension mechanism under the Law. 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 and its domestic subsidiaries contribute monthly an amount equal to 2% 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 and its domestic subsidiaries would assess the balance in the aforementioned labor pension reserve account by the end of December 31, every year. If the account balance is insufficient to pay the pension calculated by the aforementioned method, to the employees expected to be qualified for retirement next year, the Company and its domestic subsidiaries will make contributions to cover the deficit by next March.

(b) The amounts recognised in the balance s heet are determined as follows:

	December	31,2020	December 31, 2019
Present value of defined benefit	($	558,954)	570,152) ($
obligations
Fair value of plan assets		276,726	272,159
Net defined benefit liability	($	282,228)	297,993) ($

• (c) Movements in net defined benefit liabilities are as follows:

Present value of defined benefit obligations 2020 Balance at January 1 570,152) ($ Current service cost 3,220) ( Interest (expense) income 4,276) ( 577,648) (	Fair value of Net defined plan assets benefit liability 272,159 $ 297,993) ($ - 3,220) ( 2,074 2,202) ( 274,233 303,415) (

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		Present value of
		defined benefit		Fair value of		Net defined
		obligations		plan assets		benefit liability
Remeasurements:
Return on plan assets		-		9,009		9,009
(excluding amounts
included in interest
income or expense)
Change in demographic	(	124)		-	(	124)
assumptions
Change in financial	(	14,146)		-	(	14,146)
assumptions
Experience adjustments		6,410		-		6,410
	(	7,860)		9,009		1,149
Pension fund contribution		-		8,330		8,330
Paid pension		26,554	(	14,846)		11,708
Balance at December 31	($	558,954)	$	276,726	($	282,228)
		Present value of
		defined benefit		Fair value of		Net defined
		obligations		plan assets		benefit liability
2019
Balance at January 1	($	542,954)	$	266,521	($	276,433)
Current service cost	(	3,269)		-	(	3,269)
Interest (expense) income	(	5,896)		2,863	(	3,033)
	(	552,119)		269,384	(	282,735)
Remeasurements:
Return on plan assets		-		7,106		7,106
(excluding amounts
included in interest
income or expense)
Change in demographic	(	1,850)		-	(	1,850)
assumptions
Change in financial	(	19,631)		-	(	19,631)
assumptions
Experience adjustments	(	10,585)		-	(	10,585)
	(	32,066)		7,106	(	24,960)
Pension fund contribution		-		8,767		8,767
Paid pension		14,033	(	13,098)		935
Balance at December 31	($	570,152)	$	272,159	($	297,993)

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• (d) The Bank of Taiwan was commissioned to manage the Fund of the Company’s and domestic subsidiaries’ 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-the-counter, 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 and its domestic subsidiaries have no right to participate in managing and operating that fund and hence the Company and its domestic subsidiaries are unable to disclose the classification of plan asset 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:

• A. MiTAC International Corp. :

A. MiTAC International Corp. :
B. MiTAC Computing Technology Corp. : C. MiTAC Digital Technology Corp. : Discount rate Future salary increase Discount rate Future salary increase Discount rate Future salary increase	For the year ended December 31,2020 0.375% 2.000% For the year ended December 31,2020 0.500% 2.000% For the year ended December 31,2020 0.500% 2.000%	For the year ended December 31,2019
		0.750%
		2.000%
		For the year ended December 31,2019
		0.750%
		2.000%
		For the year ended December 31,2019
		0.750%
		2.000%

Assumptions regarding future mortality experience are set based on actuarial advice in accordance with published statistics and experience in each territory. Because the main actuarial assumption changed, the present value of defined benefit obligation is affected. The analysis was as follows:

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A. MiTAC International Corp. :

. MiTAC International	Corp. :
		Discount rate					Future salaryincreases
	Increase 0.25%			Decrease	0.25%	Increase 0.25%		Decrease	0.25%
December 31, 2020
Effect on present value of
defined benefit
obligation	$	2,353	($		2,426)	($	2,347)	$	2,289
December 31, 2019
Effect on present value of
defined benefit
obligation	$	2,737	($		2,828)	($	2,746)	$	2,671
MiTAC Computing Technology Corp.			:
		Discount rate					Future salaryincreases
	Increase 0.25%			Decrease	0.25%	Increase 0.25%		Decrease	0.25%
December 31, 2020
Effect on present value of
defined benefit
obligation	$	7,317	($		7,585)	($	7,344)	$	7,123
		Discount rate					Future salaryincreases
	Increase 0.25%			Decrease	0.25%	Increase 0.25%		Decrease	0.25%
December 31, 2019
Effect on present value of
defined benefit
obligation	$	7,927	($		8,225)	($	7,984)	$	7,736
MiTAC Digital Technology Corp. :
		Discount rate					Future salaryincreases
	Increase 0.25%			Decrease	0.25%	Increase 0.25%		Decrease	0.25%
December 31, 2020
Effect on present value of
defined benefit
obligation	$	3,325	($		3,451)	($	3,340)	$	3,236
	Increase 0.25%			Decrease	0.25%	Increase 0.25%		Decrease	0.25%
December 31, 2019
Effect on present value of
defined benefit
obligation	$	3,448	($		3,585)	($	3,480)	$	3,366

B. MiTAC Computing Technology Corp. :

C. MiTAC Digital Technology Corp. :

The sensitivity analysis above is based on other conditions that are unchanged but only one assumption is changed. 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.

(f) Expected contributions to the defined benefit pension plans of the Group for the year ending December 31, 2021 amount to $8,467.

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  - (g)As of December 31, 2020, the weighted average duration of that retirement plan is 7.6~10.6 years.

• B.(a) Effective July 1, 2005, the Company and its domestic subsidiaries have established a defined contribution pension plan (the “New Plan”) under the Labor Pension Act (the “Act”), covering all regular employees with R.O.C. nationality. Under the New Plan, the Company and its domestic subsidiaries contribute 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.

  • (b)The Company’s Mainland China subsidiaries have 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 percentages of employees’ monthly salaries and wages. Other than the monthly contributions, the Group has no further obligations.

  • (c) The pension costs under the defined contribution pension plans of the Group for the years ended December 31, 2020 and 2019 were $109,786 and $109,467, respectively.

• (19) Share-based payment

• A. The share-based payment arrangement of the subsidiary, MiTAC Digital Technology Corp., was as follows:

Type of arrangement Grant date Quantity granted Contract period Vesting conditions Cash capital increase reserved for employee 2019.4.16 900 thousand shares Not applicable Vested immediately preemption of 2019

• B.The fair value of stock options granted by MiTAC Digital Technology Corp. on grant date is measured using the Black-Scholes option-pricing model. Relevant information is as follows:

Type of arrangement Cash capital increase reserved for employee preemption of 2019	Grant date 2019.4.16	Stock price (in dollars) 15.95	Exercise price (in dollars) 15.5	Expected price volatility (Note) 28.31%	Expected option life 0.08 years	Expected dividends 0%	Risk-free interest rate 0.4639%	Fair value per unit
								0.7976

Note: Expected price volatility rate was the forecast of future stock price measured by the

• historical stock price of similar companies which the industry that MiTAC Digital Technology Corp. belongs to. Referenced to the historical price volatility rate of prior year.

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C. Expenses incurred on share-based payment transactions are shown below:

(20) (21)

Provisions Analysis of total provisions: Share capital A. As of December 31, 2020, the Company’s authorized capital was $15,000,000, consisting of 1.5 billion shares, and the paid-in capital was $12,065,568 with a par value of $10 dollars per share. Movements in the number of the Company’s ordinary shares outstanding are as follows: Unit: in thousands of shares For the year ended For the year ended December 31,2020 December 31, 2019 Equity settlement - $ 718 $ Warranty For the year ended For the year ended December 31,2020 December 31, 2019 Beginning balance 252,306 $ 257,297 $ Additional provisions 102,389 145,115 Used during the period 98,866) ( 149,029) ( Effects of foreign exchange 245 1,077) ( Ending balance 256,074 $ 252,306 $ December 31,2020 December 31,2019 Current 132,169 $ 142,592 $ Non-current 123,905 $ 109,714 $ 2020 2019 Outstanding shares as of January 1 1,061,382 922,941 Disposal of the Company’s treasury share by subsidiaries 5,816 - Capital increase of earnings 129,274 140,515 Capital increase of treasury share acquired by the subsidiaries 1,294) ( 2,074) ( Outstanding shares as of December 31 1,195,178 1,061,382

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• B. Treasury shares

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

shares are as follows:
Name of company holdingthe shares Subsidiary - Tsu Fung Investment Corp. Subsidiary - SSDL Name of company holdingthe shares Subsidiary - Tsu Fung Investment Corp. Subsidiary - SSDL	Reason for reacquisition Stock conversion " Reason for reacquisition Stock conversion "	December	31,2020
		Number of shares (shares in thousands) 9,250 2,128 December	Carrying amount
			162,874 $ 77,002 31,2019
		Number of shares (shares in thousands) 14,000 1,900	Carrying amount
			276,085 $ 77,002

• (b) Pursuant to the R.O.C. Securities and Exchange Act, the number of shares bought back as treasury shares should not exceed 10% of the number of the Company’s issued and outstanding shares and the amount bought back should not exceed the sum of retained earnings, paid-in capital in excess of par value and realized capital surplus.

• (c) Pursuant to the R.O.C. Securities and Exchange Act, treasury stock should not be pledged as collateral and is not entitled to dividends before it is reissued to the employees.

• (d) Pursuant to the R.O.C. Securities and Exchange Act, treasury shares should be reissued to the employees within five years from the reacquisition date and shares not reissued within the three-year period are to be retired. Treasury shares to enhance the Company’s credit rating and the stockholders’ equity should be retired within six months of acquisition.

• (e) In accordance with the “Rule No. Financial-Supervisory-Commission, Securities and Futures Bureau, 1010047490,” the Company shall not appropriate special reserve proportionately to the shareholding ratio for the difference of ending market price below the carrying amount of the parent’s stock held by the subsidiaries. If the market price reverses subsequently, the reversal amount shall be appropriated as special reserve proportionately to the shareholding ratio.

• (f) In 2020, the subsidiary, Tsu Fung Investment Corp. disposed 5,816 thousand shares of the Company amounting to $196,628.

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(22) Capital surplus

At January 1, 2020 Disposal of company’s share by subsidiaries recognised as treasury share transactions Subsidiaries received cash dividends paid by the parent company Changes from associates and joint ventures accounted for using the equity method Capital surplus - dividends unclaimed by the subsidiaries’ shareholders At December 31 2020	Share premium 21,571,329 $ - - - - 21,571,329 $	Treasury stock trnsactions 362,997 $ 83,417 10,784 - - 457,198 $	Net equity of associates and joint ventures accounted for using equitymethod 1,118,253 $ - - 87,108 - 1,205,361 $	Changes in ownership interests in subsidiaries 609 $ - - - - 609 $	Employee stock options 346,814 $ - - - - 346,814 $	Others - $ - - - 1,100 1,100 $	Total 23,400,002 $ 83,417 10,784 87,108 1,100 23,582,411 $

At January 1, 2019 Changes in ownership interests in subsidiaries Subsidiaries received cash dividends paid by the parent company Changes from associates and joint ventures accounted for using the equity method At December 31, 2019	Share premium 21,571,329 $ - - - 21,571,329 $	Treasury stock trnsactions 342,257 $ - 20,740 - 362,997 $	Net equity of associates and joint ventures accounted for using equitymethod 1,110,499 $ - - 7,754 1,118,253 $	Changes in ownership interests in subsidiaries - $ 609 - - 609 $	Employee stock options 346,814 $ - - - 346,814 $	Others - $ - - - - $	Total
							23,370,899 $ 609 20,740 7,754
							23,400,002 $

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.

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(23) Retained earnings

• A. Under the Company’s Articles of Incorporation, the current year’s earnings, if any, shall first be used to pay all taxes and offset prior years’ accumulated deficit and then 10% of the remaining amount shall be set aside as legal reserve. Special reserve shall also be set aside or reversed pursuant to the regulations. Appropriation of the remainder along with prior year’s accumulated unappropriated retained earnings shall be proposed by the Board of Directors, and shall be resolved by the stockholders when they are appropriated by issuing new shares. If the appropriation of retained earnings was appropriated in the form of cash, the appropriation should be in line with Article 240-5 of the Company Act, as resolved by a majority vote at a meeting of Board of Directors attended by two-thirds of the total number of directors, and reported to the shareholders’ meeting.

• B. Earnings appropriation ratio and cash dividends ratio are decided by the Board of Directors, taking into account the Company’s financial structure, future capital requirements and profitability, and cash dividends shall account for at least 10% of the total dividends appropriated. Earnings appropriation ratio and cash dividends ratio are subject to adjustments once approved by the stockholders.

• C. 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.

• In line with Article 241 of the Company Act, all or part of the legal reserve and capital reserve could be appropriated as cash dividends as resolved by a majority vote at a meeting of Board of Directors attended by two-thirds of the total number of directors, and reported to the shareholders’ meeting.

• D. 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.

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• E. On May 28, 2020, the appropriation of earnings for the year ended December 31, 2019 resolved by the shareholders is as follows:

by the shareholders is as follows:
		For the year ended	December 31, 2019
			Dividend per share
		Amount		(in dollars)
Legal reserve	$	283,976	$	-
Reversal of special reserve	(	12,265)		-
Cash dividend		1,077,283		1.0
Stock dividend		1,292,739		1.2
Total	$	2,641,733	$	2.2

• F. On March 8, 2021, the appropriation of earnings for the year ended December 31, 2020 proposed by the Board of Directors and to be approved by the shareholders is as follows:

Legal reserve Cash dividend Total	For theyear ended December 31,2020	For theyear ended December 31,2020
	Amount 293,325 $ 1,206,557 1,499,882 $	Dividend per share (in dollars) - $ 1.0
		1.0 $

(24) Other equity items

Other equity items
Unrealised gains (losses) Currency on valuation translation Total At January 1 1,753,427 $ 1,081,728) ($ 671,699 $ Reclassified to profit or loss upon disposal - Group - 6,674 6,674 Reclassified to profit or loss upon disposal - Group 11,370 - 11,370 - Associates 25,693) ( - 25,693) ( Revaluation - Group 1,644,487 - 1,644,487 - Associates 163,142 - 163,142 Currency translation differences: - Group - 769,181) ( 769,181) ( - Associates - 40,785 40,785 At December 31 3,546,733 $ 1,803,450) ($ 1,743,283 $ 2020		2020
			Total
			1,743,283 $

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					2019
		Unrealised
		gains (losses)			Currency
		on valuation			translation			Total
At January 1	$	511,888		($	62,976)		$	448,912
Reclassified to profit or loss
upon disposal
- Group			-		5,444			5,444
Reclassified to retained earnings
upon disposal
- Group	(	39,681)				-	(	39,681)
- Associates	(	4,624)				-	(	4,624)
Reclassified as non-controlling
interest			-	(	770)		(	770)
Revaluation
- Group		1,263,333				-		1,263,333
- Associates		22,511				-		22,511
Currency translation differences:
- Group			-	(	642,251)		(	642,251)
- Associates			-	(	381,175)		(	381,175)
At December 31	$	1,753,427		($	1,081,728)		$	671,699
Operating revenue
			For the		year ended		For the year ended
			December 31, 2020				December 31,2019
Revenue from contracts with customers			$		41,145,756	$		35,831,960
A. Disaggregation of revenue from contracts with customers
			For the		year ended		For the year ended
			December 31,2020				December 31,2019
Cloud computing product			$		32,838,299		$	26,624,689
Automotive electronics and AIoT		product			4,747,921			5,602,184
Others					3,559,536			3,605,087
			$		41,145,756		$	35,831,960

(25) Operating revenue

B. Contract liabilities The Group has recognised the following revenue-related contract liabilities:

Contract liabilities – sales of goods Contract liabilities – others	December 31,2020 122,771 $ 5,095 127,866 $	December 31,2019
		271,321 $ 3,647
		274,968 $

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(26) Interest income

Interest income
			For the year ended			For the year ended
		December 31,2020			December 31,2019
Interest income from bank deposits		$	41,469		$	47,199
Interest income from financial assets measured
at amortised cost			3,013			42,205
Total		$	44,482		$	89,404
Other income
		For the year ended			For the year ended
		December 31, 2020			December 31, 2019
Rental revenue	$		103,990	$		119,315
Dividend income			214,428			190,145
Other income			163,468			97,364
Total	$		481,886	$		406,824
Other gains and losses
		For the year ended			For the year ended
		December 31,2020			December 31,2019
Gains on disposals of property, plant and	$		564	$		255
equipment
Losses on disposal of investments	(		6,674)	(		5,444)
Net currency exchange gains (losses)			99,944	(		34,712)
(Losses) gains on financial assets liabilities at
fair value through profit or loss	(		18,855)			9,828
Other losses	(		64,563)	(		68,189)
Total	$		10,416	($		98,262)
Financial costs
		For the year ended			For the year ended
		December 31,2020			December 31,2019
Interest expense on bank borrowings		$	42,336		$	50,137
Interest expense on lease liabilities			4,143			5,768
		$	46,479		$	55,905
Exprense by nature
		For the year ended			For the year ended
		December 31,2020			December 31,2019
Employee benefit expense	$		5,515,583	$		5,423,670
Depreciation on property, plant and equipment,
investment property and right-of-use assets			908,976			836,105
Amortization charges			89,722			84,614
Total	$		6,514,281	$		6,344,389

(27) Other income

(28) Other gains and losses

(29) Financial costs

(30) Exprense by nature

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(31) Employee benefit expenses

		For the year ended		For the year ended
	December 31, 2020		December 31, 2019
Wages and salaries	$	4,906,351	$	4,787,730
Shared-based payments		-		718
Labor and health insurance fees		326,282		341,538
Pension costs		115,208		115,769
Other personnel expenses		167,742		177,915
	$	5,515,583	$	5,423,670

• A. According to the amended Articles of Incorporation, the profit (pre-tax profit before deduction of employees’ compensation and directors’ remuneration) of the current year shall be distributed as employees’ compensation and directors’ remuneration, which will be resolved by the Board of Directors. The ratio shall not be lower than 0.1% for employees and not be higher than 1% for directors. If a company has an accumulated deficit, earnings should be reserved to cover losses. Employees’ compensation can be distributed by stock or dividends, and employees must be working for the Company. The Chairman of the Board is authorised to set the qualification requirements.

• B. For the years ended December 31, 2020 and 2019, employees’ compensation was accrued at 0.1% of gain on pre-tax profit before deduction of employees’ compensation and directors’ remuneration. Directors’ remuneration were accrued under 1% of gain on pre-tax profit before deduction of employees’ compensation and directors’ remuneration.

• C. For the years ended December 31, 2020 and 2019, employees’ compensation were accrued at $2,937 and $2,859, respectively; and directors’ remuneration were accrued at $5,000 and $4,800, respectively. The aforementioned amounts were recognised in salary expenses. Employees’ cash bonus and directors’ and supervisors’ remuneration of 2020 and 2019 as resolved at the Board of Directors of the Company were in agreement with those amounts recognised in the 2020 and 2019 consolidated financial statements.

• D. Information about employees’ compensation and directors’ remuneration of the Company as resolved by the Board of Directors and the shareholders at the shareholders’ meeting will be posted in the “Market Observation Post System” at the website of the Taiwan Stock Exchange.

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(32) Income tax

A. Income tax expense

(a) Components of income tax expense:

e tax ome tax expense Components of income tax expense:
			For the year ended			For the year ended
		December 31,2020			December 31,2019
Current tax:
Current tax on profits for the year	$		164,933	$		321,518
Tax on undistributed surplus earnings			9,901			19,858
Prior year income tax (over)
underestimation	(		12,573)			2,289
Total current tax			162,261			343,665
Deferred tax:
Origination and reversal of temporary
differences	(		32,970)	(		34,546)
Total deferred tax	(		32,970)	(		34,546)
Income tax expense	$		129,291	$		309,119

• (b) The income tax (charge)/credit relating to components of other comprehensive income is as follows:

follows:
			For the year ended		For the year ended
		December31,2020		December31,2019
Actuarial gain on defined benefit
obligations		$	230	($	4,992)
B. Reconciliation between income tax expense and	accounting profit
			For the year ended		For the year ended
		December 31,2020		December 31,2019
Tax calculated based on profit before
tax and statutory tax rate	$		687,274	$	690,495
Tax on undistributed earnings			9,901		19,858
Unrecognised deferred income tax liabilities	(		334,003)	(	367,439)
Tax exempt income by tax regulation	(		216,975)	(	184,827)
Change in assessment of realisation of
deferred tax assets	(		4,333)	(	29,996)
Effects from foreign income			-		75,141
Prior year income tax (over) underestimation	(		12,573)		2,289
Income tax effect from return of dividends
arising from overseas investments			-		103,598
Income tax expense	$		129,291	$	309,119

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• C. Amounts of deferred tax assets or liabilities as a result of temporary differences and tax losses are as follows ：

are as follows：
				For theyear	ended December 31,2020
						Recognised
				Recognised		in other		Effects of
		Beginning		in profit or	comprehensive			exchange		Ending
		balance		loss		income		rate changes		balance
Deferred tax assets:
Temporary differences:
Warranty provision	$	44,278	$	3,172	$	-	$	-	$	47,450
Loss from decline in
inventory price to
market value		108,611		4,221		-	(	1,997)		110,835
Unrealised estimate
payable		124,439		28,517		-	(	1,191)		151,765
Unused compensated
absences		15,107		8,430		-	(	174)		23,363
Accrued pension liability		82,133	(	2,920)	(	230)		-		78,983
Others		78,451	(	36,428)		-	(	542)		41,481
Loss carryforward		28,067		24,277		-	(	1,897)		50,447
Subtotal	$	481,086	$	29,269	($	230)	($	5,801)	$	504,324
Deferred tax liabilities:
Temporary differences:
Equity investments	(	377,028)		-		-		-	(	377,028)
Others	(	5,545)		3,701		-		-	(	1,844)
Subtotal	(	382,573)		3,701		-		-	(	378,872)
Total	$	98,513	$	32,970	($	230)	($	5,801)	$	125,452

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Beginning balance Deferred tax assets: Temporary differences: Warranty provision 43,608 $ Loss from decline in inventory price to market value 59,568 Unrealised estimate payable 154,203 Others 182,675 Subtotal 440,054 $ Deferred tax liabilities: Temporary differences: Equity investments 377,028) ( Others 1,236) ( Subtotal 378,264) ( Total 61,790 $	Recognised Recognised in other Effects of in profit or comprehensive exchange Ending loss income rate changes balance 670 $ - $ - $ 44,278 $ 50,305 - 1,262) ( 108,611 29,764) ( - - 124,439 17,644 4,992 1,553) ( 203,758 38,855 $ 4,992 $ 2,815) ($ 481,086 $ - - - 377,028) ( 4,309) ( - - 5,545) ( 4,309) ( - - 382,573) ( 34,546 $ 4,992 $ 2,815) ($ 98,513 $ For theyear ended December 31,2019	Recognised Recognised in other Effects of in profit or comprehensive exchange Ending loss income rate changes balance 670 $ - $ - $ 44,278 $ 50,305 - 1,262) ( 108,611 29,764) ( - - 124,439 17,644 4,992 1,553) ( 203,758 38,855 $ 4,992 $ 2,815) ($ 481,086 $ - - - 377,028) ( 4,309) ( - - 5,545) ( 4,309) ( - - 382,573) ( 34,546 $ 4,992 $ 2,815) ($ 98,513 $ For theyear ended December 31,2019	Ending balance
	670 $ 50,305 29,764) ( 17,644 38,855 $ - 4,309) ( 4,309) ( 34,546 $		44,278 $ 108,611 124,439 203,758
			98,513 $

• D. Expiration dates of unused net operating tax losses of the Company and its subsidiaries and amounts of unrecognised deferred tax assets are as follows ：

December 31, 2020

		December 31,2020	December 31,2020
Year incurred 2012 2014	Amount filed / assessed Assessed Assessed	Unrecognised deferred tax Unused amount assets 31,991 $ 31,991 $ 33,143 33,143 December 31,2019		Expiry year
				2022 2024
Year incurred 2011 2012 2014	Amount filed / assessed Assessed Assessed Assessed	Unused amount 15,425 $ 53,663 36,388	Unrecognised deferred tax assets 15,425 $ 53,663 36,388	Expiry year
				2021 2022 2024

• E. The amounts of deductible temporary differences that are not recognised as deferred tax assets are as follows ：

are as follows：
Deductible temporary differences	December31,2020 758,760 $	December31,2019
		995,072 $

• F. The Company has not recognised taxable temporary differences associated with investment in subsidiaries as deferred tax liabilities. As of December 31, 2020 and 2019, the amounts of

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temporary difference unrecognised as deferred tax liabilities were $15,306,892 and $13,606,211, respectively.

• G. The Company’s income tax returns through 2016 have been assessed and approved by the Tax Authority.

(33) Earnings per share

Authority. Earnings per share	Authority. Earnings per share	Authority. Earnings per share
Weighted average number of ordinary Amount shares outstanding Earnings per share Basic earnings per share after tax (shares in thousands) (in dollars) Profit attributable to ordinary shareholders of the parent 2,918,705 $ 1,193,649 2.45 $ Diluted earnings per share Profit attributable to ordinary shareholders of the parent 2,918,705 $ Less: Effect of dilutive potential common stocks issued by investee companies 26,233) ( Assumed conversion of all dilutive potential ordinary shares Employees’ compensation - 113 Net income attributable to common stockholders plus dilutive effect of common stock equivalents 2,892,472 $ 1,193,762 2.42 $ For theyear ended December 31,2020 Weighted average number of ordinary Amount shares outstanding Earnings per share Basic earnings per share after tax (shares in thousands) (in dollars) Profit attributable to ordinary shareholders of the parent 2,817,880 $ 1,188,748 2.37 $ Diluted earnings per share Profit attributable to ordinary shareholders of the parent 2,817,880 $ Less: Effect of dilutive potential common stocks issued by investee companies 22,531) ( Assumed conversion of all dilutive potential ordinary shares Employees’ compensation - 118 Net income attributable to common stockholders plus dilutive effect of common stock equivalents 2,795,349 $ 1,188,866 2.35 $ For theyear ended December 31,2019
	Weighted average number of ordinary shares outstanding (shares in thousands) 1,188,748 118 1,188,866	Earnings per share (in dollars)
		2.37 $
		2.35 $

A. Basic earnings per share is calculated with the gain or loss attributable to the shareholders of the ordinary shares issued by the Company, divided with outstanding weighted average ordinary shares during the period, and deducted with weighted average treasury shares.

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• B. For the year ended December 31, 2019, the outstanding weighted average shares was retrospectively adjusted based on retained earnings capitalization ratio in 2020.

• (34) Transactions with non-controlling interest

• A. Acquisition of subsidiary

  • The Group’s subsidiary, MiTAC Computing Technology Corporation newly established a subsidiary, Hyve Design Solutions Corporation, in July 2019 in order to expand the market in America and acquired 50% equity interests in Hyve Design Solutions Corporation. The transaction increased non-controlling interest and equity attributable to owners of parent both by $62,920.

• B. Cash capital increase raised by subsidiaries

  • The Group’s subsidiary, MiTAC Computing Technology Corp. and the non-controlling interest increased their investment in the subsidiary, Hyve Design Solutions Corporation, in January 2020 proportionally to their interests. The amount of $90,150 was invested by the non-controlling interest.

• C. On May 23, 2019, the Group’s subsidiary, MiTAC Digital Technology Corp., increased its capital by issuing new shares. However, the Group did not subscribe to those shares proportionately, and the Group’s shareholding ratio was decreased by 2.827%. This transaction increased noncontrolling interest by $46,661, equity attributable to owners of parent increased by $609. For the year ended December 31, 2019, the effect on equity attributable to owners of parent arising from changes in the equity of MiTAC Digital Technology Corp. are listed below:

	Year	ended December 31,
		2019
Cash	$	46,500
Increase in the carrying amount of non-controlling interest	(	46,661)
Currency translation differences		770
Capital surplus, changes in ownership interests in subsidiaries	$	609

D. Proceeds from disposal of subsidiaries

The Group’s subsidiary, MiTAC Computing Technology Corp. lost substantial control over Hyve Design Solutions Corporation (please refer to Note 4(3)B.), resulting in a decrease in noncontrolling interests amounting to $33,330.

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(35) Supplemental cash flow information

A. Financing activities with partial cash payments ：

		For the year ended		For the year ended
		December 31,2020		December 31,2019
Cash dividends declared but	$	1,077,283	$	1,405,152
yet to be paid – the Company
Add: Cash dividends to minority		4,462		-
interests paid by subsidiaries
Less: subsidiaries received cash
dividends paid from parent
company	(	10,784)	(	20,740)
Cash paid during the year	$	1,070,961	$	1,384,412

B. The Group lost control over Hyve Design Solutions Corporation on August 19, 2020 (please refer to Note 4(3)B.). The details of assets and liabilities relating to the subsidiary are as follows:

Cash Accounts receivable Other receivables Prepayments Property, plant and equipment Intangible assets Accounts payable to related parties Other payables Other current liabilities Total net assets Fair value of the Group’s retained equity on the date of loss of control Book value of the non-controlling interest on the date of loss of control		August 19,2020
		78,615 $ 107,066 2,743 4,776 30,926 835 25) ( 156,412) ( 1,864) ( 66,660 $ 33,330 33,330 66,660 $

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(36) Changes in liabilities from financing activities

Changes in liabilities from financing activities
Short-term borrowings At January 1, 2020 3,803,871 $ Changes in cash flow 2,349,843) ( Impact of changes in foreign exchange rate 10,177) ( Changes in other non-cash items - At December 31, 2020 1,443,851 $	Guarantee deposit received Lease liabilities Long-term borrowings (including current portion) Liabilities from financing activities-gross 23,645 $ 189,228 $ 791,561 $ 4,808,305 $ 671) ( 55,398) ( 119,073 2,286,839) ( 231 2,415) ( - 12,361) ( - 99,793 - 99,793 23,205 $ 231,208 $ 910,634 $ 2,608,898 $
		791,561 $ 4,808,305 $ 119,073 2,286,839) ( - 12,361) ( - 99,793 910,634 $ 2,608,898 $

At January 1, 2019 Changes in cash flow Impact of changes in foreign exchange rate Changes in other non-cash items At December 31, 2019	Short-term borrowings	Guarantee deposit received	Lease liabilities	Long-term borrowings	Liabilities from financing activities-gross
	- $ 3,834,646 30,775) ( - 3,803,871 $	27,195 $ 3,250) ( 300) ( - 23,645 $	233,433 $ 49,973) ( - 5,768 189,228 $	- $ 791,561 - - 791,561 $	260,628 $ 4,572,984 31,075) ( 5,768 4,808,305 $

7. RELATED PARTY TRANSACTIONS

(1) Names of related parties and relationship

Names of related parties

Relationship with the Group

Getac Technology Corp. and subsidiaries Synnex Corp. and subsidiaries Infopower Technologies Ltd. Loyal Fidelity Aerospace Co., Ltd. Synnex Technology International Corp. and subsidiaries Harbinger Venture Management Company Ltd. Lien Hwa Industrial Corp. and subsidiaries UPC Technology Corp.

Associates Associates Associates Associates Common Chairman

Harbinger Venture Management Company Ltd. Common Chairman Lien Hwa Industrial Corp. and subsidiaries Common Chairman UPC Technology Corp. Common Chairman The Group’s Chairman was this company’s ShenTong Information Co., Ltd. and subsidiaries director Hyve Design Solutions Corporation and subsidiaries Associates (Note) Note: It became an associate of the Group since August 19, 2020.

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(2) Significant related party transactions and balances

A. Operating revenue:

(a)

Sales of goods: -Associates-Synnex Corp. and subsidiaries -Associates-Others -Other related parties -Associates-Synnex Corp. and subsidiaries -Associates-Others -Other related parties Total	For the year ended December 31,2020 1,536,462 $ 70,358 5,499 1,612,319 179,909 $ 4,220 52 184,181 1,796,500 $	For the year ended December 31,2019 1,796,232 $ 69,912 53
		1,866,197
		185,431 $ 3,251 10
		188,692
		2,054,889 $

• (b) The selling price to related parties is determined based on the economic environment and market competition in the region of the related party.

• (c) The Group’s term of credit for related parties is the same with third party clients. The payment is generally due around 3 months after delivery.

B. Purchases:

(a)

Purchases of goods: -Associates -Other related parties - Synnex Techonology International Corp. and subsidiaries Total	For the year ended December 31,2020 56,013 $ 352,402 408,415 $	For the year ended December 31,2019
		283,905 $ 674,819
		958,724 $

• (b) The purchase price from related parties cannot be compared with the prices to third parties due to differences in product specifications.

• (c) The Group’s term of payment for related parties is generally due around 3 months after counterparty’s delivery.

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C. Receivables from related parties:

Accounts receivable: -Associates-Synnex Corp. and subsidiaries -Associates-Others -Other related parties Subtotal Other receivables: -Associates-Getac Technology Corp. and subsidiaries -Associates-Synnex Corp. and subsidiaries -Associates-Others -Other related parties Subtotal Total	December 31,2020 215,717 $ 70 173 215,960 22,203 335 1,324 6,723 30,585 246,545 $	December 31,2019 288,577 $ 1,073 - $ 289,650 16,413 93,045 116 4,190
		113,764
		403,414 $

D. Payables to related parties:

Accounts payable: -Associates -Other related parties - Synnex Technology International Corp. and subsidiaries Subtotal Other payables: -Associates -Other related parties Subtotal Total	December 31,2020 6,483 $ 13,739 20,222 3,344 3,603 6,947 27,169 $	December 31,2019
		24,639 $ 38,353
		62,992
		66,153 3,543
		69,696
		132,688 $

E. Property transactions:

(a) Acquisition of property, plant and equipment:

cquisition of property, plant and equipment:
Associates Other related parties	For the year ended December 31,2020 2,441 $ 3,161 5,602 $	For the year ended December 31,2019
		- $ 8,825
		8,825 $

(b) Acquisition of financial assets:

For the year ended December 31, 2020:None.

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Acquisition amount Transaction share for the year ended Account (Shares in thousands) Item December 31, 2019 Associates Investments Shen-Tong accounted Construction & for using Developments equity method 4,562 Co., Ltd. $ 45,620

－ F. Lease transactions leasee

• (a) The Group leases buildings from Getac Technology Corp. and subsidiaries. Rental contracts are typically made for periods from years 2019 to 2023.

(b) Acquisition of right-of-use assets:

On January 1, 2019 (the date of initial application of IFRS 16), the Group increased right-ofuse assets by $51,551.

(c) Lease liabilities

• (i) Outstanding balance:

use assets by $51,551. (c) Lease liabilities (i) Outstanding balance:
(ii) Interest expense Lease transactions－lessor Expenses Associates Associates Rent income Associates Other related parties Total Associates Other related parties Total	December31,2020 32,101 $ For the year ended December 31, 2020 2,175 $ For the year ended December 31,2020 36,211 $ 1,424 37,635 $ For the year ended December 31,2020 83,451 $ 3,820 87,271 $	December31,2019
		40,875 $
		For the year ended December 31,2019
		2,844 $
		For the year ended December 31,2019
		31,182 $ 1,384
		32,566 $
		For the year ended December 31,2019
		78,211 $ 2,895
		81,106 $

• －

• G. Lease transactions lessor

H. Expenses

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(3) Key management compensation

Key management compensation
Salaries and other short-term employee benefits Post-employment benefits Total	For the year ended December 31,2020 45,940 $ 567 46,507 $	For the year ended December 31,2019 45,032 $ 563
		45,595 $

8. PLEDGED ASSETS

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

Pledged asset Time deposits (shown as "other non-current assets") Time deposits (shown as "other current assets") Time deposits (shown as "other non-current assets")	December 31,2020 December 31,2019 $ 10,253 $ 10,185 8,754 8,761 25,000 25,000 44,007 $ 43,946 $ Book Value	Purpose
		Guarantee deposit Customs guarantee Pledged margin for commodity tax guarantee

9. SIGNIFICANT CONTINGENT LIABILITIES AND UNRECOGNISED CONTRACT

COMMITMENTS

(1) Contingencies

None.

(2) Commitments

Capital expenditure contracted but not provided are as follows:

Property, plant and equipment	December31,2020 60,288 $	December31,2019
		150,828 $

10. SIGNIFICANT DISASTER LOSS

None.

11. SIGNIFICANT EVENTS AFTER THE BALANCE SHEET DATE

None.

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.

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(2) Financial instruments

A. Financial instruments by category

nancial instruments Financial instruments by category
Financial assets Financial assets at fair value through profit or loss Financial assets mandatorily measured at fair value through profit or loss Financial assets at fair value through other comprehensive income Designation of equity instrument Financial assets at amortised cost Cash and cash equivalents Financial assets at amortised cost Notes receivable Accounts receivable Accounts receivable - related parties Other receivables Refundable deposits Other financial assets Financial liabilities Financial liabilities at fair value through profit or loss Financial liabilities held for trading Financial liabilities at amortised cost Short-term borrowings Accounts payable Accounts payable - related parties Other accounts payable Refundable deposits Long-term borrowings (including current portion) Lease liabilities	December 31,2020 6,107 $ 7,298,592 $ 5,805,297 $ - 31,689 4,982,050 215,960 60,168 23,600 44,007 11,162,771 $ 11,691 $ 1,443,851 $ 6,662,560 20,222 3,366,781 23,205 910,634 12,427,253 $ 231,208 $	December 31,2019
		99,948 $
		5,567,888 $
		6,664,566 $ 490,770 92,751 6,183,075 289,650 131,562 17,483 43,946
		13,913,803 $
		8,637 $
		3,803,871 $ 5,783,558 62,992 3,362,875 23,645 791,561
		13,828,502 $
		189,228 $

B. Financial risk management policies

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. The Group’s overall risk management programme focuses on the unpredictability of financial markets and seeks to minimize potential adverse effects on the Group’s financial position and financial performance. The Group uses derivative financial instruments to hedge certain risk exposures (see Notes 6(2), 6(16)).

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• C. Significant financial risks and degrees of financial risks

• (a)Market risk

Foreign exchange risk

• i. The Group’s businesses involve some non-functional currency operations (the Company’s and certain subsidiaries’ functional currency: NTD; other certain subsidiaries’ functional currency: USD, EUR, AUD, JPY and CNY). The information on assets and liabilities denominated in foreign currencies whose values would be materially affected by the exchange rate fluctuations is as follows:

exchange rate fluctuations is as	follows:	follows:
(Foreign currency: functional currency) Financial assets Monetary items USD:NTD USD:CNY Non-monetary items CNY:USD Financial liabilities Monetary items USD:NTD USD:CNY	December 31,2020
	Foreign curency amount (In thousands) 420,414 $ 127,552 80,935 462,736 154,042	Exchange rate 28.480 6.507 0.154 28.480 6.507	Book value (NTD)
			11,973,379 $ 3,632,690 354,254 13,178,719 4,387,124

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(Foreign currency: functional currency) Financial assets Monetary items USD:NTD EUR:NTD AUD:NTD USD:CNY Non-monetary items CNY:USD Financial liabilities Monetary items USD:NTD EUR:NTD AUD:NTD USD:CNY	Foreign curency amount Exchange (In thousands) rate 494,255 $ 29.980 6,081 33.590 8,264 21.005 106,092 6.964 72,470 0.144 489,384 29.980 6,031 33.590 6,100 21.005 180,376 6.964 December 31,2019	Book value (NTD)
		14,817,755 $ 204,271 173,595 3,180,631 311,984 14,671,731 202,597 128,131 5,407,668

• ii. Total exchange gain (loss), including realized and unrealised arising from significant foreign exchange variation on the monetary items held by the Group for the years ended December 31, 2020 and 2019, amounted to $99,944 and ($34,712), respectively.

• iii. When the exchange rates for USD, AUD, EUR and CNY to NTD and USD to CNY increased or decreased by 1%, with all other factors the same at December 31, 2020 and 2019, net profit (loss) before tax would increase or decrease by ($19,598) and ($20,339) for the years ended December 31, 2020 and 2019, respectively.

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.

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• ii. The Group’s investments in equity securities comprise shares and open-end funds issued by the domestic or foreign 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 $780, 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 $72,986 and $55,679, respectively, as a result of other comprehensive income classified as equity investment at fair value through other comprehensive income.

Cash flow and fair value interest rate risk

• i. The Group’s main interest rate risk arises from long-term and short-term borrowings with variable rates, which expose the Group to cash flow interest rate risk. During 2020 and 2019, the Group’s borrowings at variable rate were mainly denominated in New Taiwan dollars and US Dollars.

• ii. If the borrowing interest rate had increased/decreased by 0.01% with all other variables held constant, profit, net of tax for the years ended December 31, 2020 and 2019 would have increased/decreased by $235 and $380, respectively. The main factor is that changes in interest expense result in floating-rate borrowings.

• (b)Credit risk

• i. Credit risk refers to the risk of financial loss to the Group arising from default by the clients or counterparties of financial instruments on the contract obligations. The main factor is that counterparties could not repay in full the accounts receivable based on the agreed terms, and the contract cash flows of financial instruments settled based on the agreement.

• ii. According to the Group’s credit policy, each local entity in the Group is responsible for managing and analysing the credit risk for each of their new clients before delivery terms and conditions are offered. Internal risk control assesses the credit quality of the customers, taking into account their financial position, past experience, the forecastability of the impact of global economic information to the future and other factors.

• iii. Individual risk limits are set based on internal or external factors in accordance with limits set by credit control manager. The utilisation of credit limits is regularly monitored.

• iv. For banks and financial institutions, only the institutions with good credit quality are accepted as counterparties.

• v. The default occurs when it expects that the contact payments cannot be recovered and are transferred to overdue receivables.

• vi. The following indicators are used to determine whether the credit impairment of debt instruments has occurred:

  • (i) It becomes probable that the issuer will enter bankruptcy or other financial

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reorganization due to their financial difficulties;

• (ii) The disappearance of an active market for that financial asset because of financial difficulties;

• (iii) Default or delinquency in interest or principal repayments;

• (iv) Adverse changes in national or regional economic conditions that are expected to cause a default.

• vii. The Group classifies customers’ repayment ability in accordance with the contract term and macroeconomic forecast included in the forecastability and related industry information. The Group applies the modified approach using group methodology to estimate expected credit loss.

• viii. 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.

• ix.The Group considered the forecastability to adjust historical and timely information to assess the default possibility of accounts receivable. As of December 31, 2020 and 2019, the loss rate methodology is as follows:

he loss rate methodology is	as follows:
At December 31,2020 Expected loss rate Value Allowance At December 31,2019 Expected loss rate Value Allowance	GroupA 10% - 100% 454,571 $ 85,151 Group A 10% - 100% 394,068 $ 76,174	GroupB 0.012% - 0.7% 4,834,921 $ 6,331 Group B 0.014% - 0.02% 6,155,691 $ 860	Total
			5,289,492 $ 91,482 Total
			6,549,759 $ 77,034

Group A- High-risk accounts: The evaluation module is based on payment records, financial indicators, contract fulfillment status, and related industry information. Group B- Low- and medium-risk accounts: Entities provide good payment records, strong prospects, transparent financials or collateral.

• x. Movements in relation to the Group applying the modified approach to provide loss allowance for accounts receivable is as follows:

		2020
At January 1	$		77,034
Provision for impairment			17,494
Write-offs	(		3,496)
Effect of foreign exchange			450
At December 31	$		91,482

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		2019
At January 1	$	97,765
Reversal of impairment loss	(	14,812)
Write-offs	(	4,932)
Effect of foreign exchange	(	987)
At December 31	$	77,034

(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.

• ii. The table below analyses the Group’s non-derivative financial liabilities and net-settled or gross-settled derivative financial liabilities into relevant maturity groupings based on the remaining period at the balance sheet date to the contractual maturity date for nonderivative financial liabilities and to the expected maturity date for derivative financial liabilities. The amounts disclosed in the table are the contractual undiscounted cash flows.

Non-derivative financial liabilities:

==> picture [436 x 30] intentionally omitted <==

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Less than Between 1 Between 2 Over
December 31, 2020 1 year and 2 years and 3 years 3 years
----- End of picture text -----

December 31,2020	Less than 1year	Between 1 and 2years	Between 2 and 3years	Over 3years
Short-term borrowings Accounts payable Other payables Lease liabilities Guarantee deposits Long-term borrowings December 31,2019 Short-term borrowings Accounts payable Other payables Lease liabilities Guarantee deposits Long-term borrowings	1,444,893 $ 6,682,782 3,366,781 38,661 8,257 52,075 Less than 1year 3,813,539 $ 5,846,550 3,362,875 47,435 7,076 5,586	- $ - - 37,419 2,911 261,139 Between 1 and 2years - $ - - 31,798 3,790 52,828	- $ - - 35,154 6,615 249,203 Between 2 and 3years - $ - - 23,295 1,716 215,052	- $ - - 132,940 5,422 361,425 Over 3years
				- $ - - 121,086 11,063 538,915

Derivative financial liabilities

As of December 31, 2020 and 2019, the Group’s derivative financial liabilities mature within one year.

• iii.The Group does not expect the timing of occurrence of the cash flows estimated through the maturity date analysis will be significantly earlier, nor expect the actual cash flow amount will be significantly different.

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(3) Fair value information

• A. The different levels that the inputs to valuation techniques are used to measure fair value of financial instruments have been defined as follows:

• Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities.

• Level 2: Inputs other than quoted prices included within level 1 that are observable for the asset or liability, either directly (that is, as prices) or indirectly (that is, derived from prices).

• Level 3: Inputs for the asset or liability that are not based on observable market data.

• B. Fair value information of investment property at cost is provided in Note 6(12).

• C. Financial instruments not measured at fair value Including the carrying amounts of cash and cash equivalents, financial assets at amortised cost, notes receivable, accounts receivable, other receivables, refundable deposits, short-term borrowings, notes payable, accounts payable, other payables, long-term borrowings and guarantee deposits received are approximate to their fair values.

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

• (a) The related information of natures of the assets and liabilities is as follows:

December 31, 2020 Level 1 Recurring fair value measurements Financial assets: Forward exchange contracts - $ Equity securities 3,892,858 Total 3,892,858 $ Recurring fair value measurements Financial liabilities: Forward exchange contracts - $ December 31, 2019 Level 1 Recurring fair value measurements Financial assets: Forward exchange contracts - $ Equity securities 2,884,002 Total 2,884,002 $ Recurring fair value measurements Financial liabilities: Forward exchange contracts - $	Level 2 6,107 $ 283,970 290,077 $ 11,691 $ Level 2 21,948 $ 276,589 298,537 $ 8,637 $	Level 3 - $ 3,121,764 3,121,764 $ - $ Level 3 - $ 2,485,297 2,485,297 $ - $	Total
			6,107 $ 7,298,592
			7,304,699 $
			11,691 $
			Total
			21,948 $ 5,645,888
			5,667,836 $
			8,637 $
Financial liabilities: Forward exchange contracts

~85~

• (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 Open-end fund

    • Market quoted price Closing price Net worth

  • 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.

  • iii. When assessing non-standard and low-complexity financial instruments, 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.

  • v. The output of valuation model is an estimated value and the valuation technique may not be able to capture all relevant factors of the Group’s financial and non-financial instruments. Therefore, the estimated value derived using valuation model is adjusted accordingly with additional inputs, for example, model risk or liquidity risk and etc. In accordance with the Group’s management policies and relevant control procedures relating to the valuation models used for fair value measurement, management believes adjustment to valuation is necessary in order to reasonably represent the fair value of financial and non-financial instruments at the consolidated balance sheet. The inputs and pricing information used during valuation are carefully assessed and adjusted based on current market conditions.

  • vi. The Group takes into account adjustments for credit risk to measure the fair value of financial and non-financial instruments to reflect credit risk of the counterparty and the Group’s credit quality.

• E. The private placement shares of COMPUCASE ENTERPRISE CO., LTD. have been listed in the Taiwan Stock Exchange from October 2019, therefore, the Group transferred the fair value from Level 2 to Level 1 at the end of the month when the event occurred.

• F. For the year ended December 31, 2020, there was no transfer between Level 1 and Level 2.

• G. The following table presents the changes in Level 3 instruments as at December 31, 2020 and 2019:

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		Equitysecurities	Equitysecurities
		2020		2019
January 1	$	2,485,297	$	458,025
Proceeds from capital reduction		-	(	45,389)
for the year
Decreased in the year	(	12,303)		-
Acquired in the year		17,095		50,274
Transfer into level 3		-		1,088,481
Gains recognised in other comprehensive income		632,564		934,181
Effects of foreign exchange	(	889)	(	275)
December 31	$	3,121,764	$	2,485,297

• H. For the year ended December 31, 2019, MITAC Incorporated Co., Ltd. terminated trading its stocks on TPEx starting from April 23, 2019, and there is insufficient observable market information. As a result, the Group has transferred the fair value from Level 1 into Level 3 at the end of the month when the event occurred.

• I. Investment department 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, and reviewing the information periodically.

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

Non-derivative equity instrument: Unlisted shares Non-derivative equity instrument: Unlisted shares	Fair value at December31,2020 $ 3,121,764 Fair value at December31,2019 $ 2,485,297	Valuation technique Net asset value Valuation technique Net asset value	Significant unobservable input Net asset value Significant unobservable input Net asset value	Range (weighted average)	Relationship of inputs to fairvalue
				- Range (weighted average)	The higher the net asset value, the higher the fair value. Relationship of inputs to fairvalue
				-	The higher the net asset value, the higher the fair value.

• K. 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 difference measurement. The following is the effect of profit or loss or of other comprehensive income from financial assets and liabilities categorized within Level 3 if the inputs used to valuation models have changed:

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December 31, 2020 Recognised in other Recognised in profit or loss comprehensive income Favourable Unfavourable Favourable Unfavourable Financial assets Input Change change change change change Equity instrument Net asset ±1% $ - $ - $ 31,218 $ 31,218 value December 31, 2019 Recognised in other Recognised in profit or loss comprehensive income Favourable Unfavourable Favourable Unfavourable Financial assets Input Change change change change change Equity instrument Net asset ±1% $ - $ - $ 24,853 $ 24,853 value

- ’ (4) Impact of COVID 19 pandemic on the Group s operations in 2020

• Since the outbreak of COVID-19 pandemic in early 2020, the subsidiaries, customers and suppliers in certain areas must comply with the policies such as quarantine enforcement and transportation limitation due to the widespread pandemic. However, it had no significant impact on the Group’s overall financial business, and there are no issues with the Group’s ability to continue as a going concern, impairment of assets and financing risks after the assessment.

13. SUPPLEMENTARY DISCLOSURES

(1) Significant transactions information

• A. Loans to others: Please refer to table 1.

• B. Provision of endorsements and guarantees to others: Please refer to table 2.

• C. Holding of marketable securities at the end of the period (not including subsidiaries, associates and joint ventures): Please refer to table 3.

• D. Acquisition or sale of the same security with the accumulated cost exceeding NT$300 million or 20% of the Company’s paid-in capital: None.

• E. Acquisition of real estate reaching NT$300 million or 20% of paid-in capital or more: None.

• F. Disposal of real estate reaching NT$300 million or 20% of paid-in capital or more: None.

• G. Purchases or sales of goods from or to related parties reaching NT$100 million or 20% of paidin capital or more: Please refer to table 4.

• H. Receivables from related parties reaching NT$100 million or 20% of paid-in capital or more: Please refer to table 5.

• I. Trading in derivative instruments undertaken during the reporting periods: Please refer to Notes 6(2) and (16).

• J. Significant inter-company transactions during the reporting periods: Please refer to table 6.

(2) Information on investees

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

(3) Information on investments in Mainland China

• A. Basic information: Please refer to table 8.

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• B. Significant transactions, either directly or indirectly through a third area, with investee companies in the Mainland Area: Please refer to table 4 and table 8.

(4) Major shareholders information

Major shareholders information: 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’s Chief Operating Decision-Maker manages business from the perspectives of cloud computing product business group and automotive electronics and AIoT business group.

The Group’s company organization, basis of department segmentation and principles for measuring segment information for the period were not significantly changed.

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

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

Item Revenue Segment gain (loss) Item Revenue Segment gain (loss)		For the year ended December 31, 2020
	Cloud computing business group 32,838,299 $ 122,664 Cloud computing businessgroup 26,624,689 $ 230,085	Automotive electronics and AIoT businessgroup Others 4,747,921 $ 3,559,536 $ 45,069 93,350) ( Automotive electronics and AIoT business group Others 5,602,184 $ 3,605,087 $ 289,076 18,201) ( For theyear ended December 31,2019	Total
			41,145,756 $ 74,383 Total
			35,831,960 $ 500,960

(3) Reconciliation for segment income (loss)

The revenue from external customers reported to the Chief Operating Decision-Maker is measured in a manner consistent with that in the statement of comprehensive income.

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A reconciliation of reportable segment income or loss to the income/(loss) before tax from continuing operations for the years ended December 31, 2020 and 2019 is provided as follows:

Information on products and services Item Profit for reportable segments Unallocated: Share of profits and losses from affiliates and joint ventures accounted for using the equity method Dividend revenue Interest revenue Net currency exchange gain (loss) Rent income Other income(loss) Income before tax from operations Sales Other revenue Total	For the year ended For the year ended December 31,2020 December 31,2019 74,383 $ 500,960 $ 2,415,388 2,239,887 214,428 190,145 44,482 89,404 99,944 34,712) ( 103,990 119,315 27,461 22,091) ( 2,980,076 $ 3,082,908 $ For the year ended For the year ended December 31,2020 December 31, 2019 40,649,210 $ 35,388,203 $ 496,546 443,757 41,145,756 $ 35,831,960 $	For the year ended For the year ended December 31,2020 December 31,2019 74,383 $ 500,960 $ 2,415,388 2,239,887 214,428 190,145 44,482 89,404 99,944 34,712) ( 103,990 119,315 27,461 22,091) ( 2,980,076 $ 3,082,908 $ For the year ended For the year ended December 31,2020 December 31, 2019 40,649,210 $ 35,388,203 $ 496,546 443,757 41,145,756 $ 35,831,960 $
		3,082,908 $
		For the year ended December 31, 2019
		35,388,203 $ 443,757
		35,831,960 $

(4) Information on products and services

(5) Geographical information

For the years ended December 31, 2020 and 2019, revenues and non-current assets from certain regions are listed below:

Taiwan USA Europe Others Total	For theyear ended	Assets - non-current 5,313,211 $ 688,111 110,276 3,436,866 9,548,464 $ December 31,2020	For theyear ended	December 31,2019
	Revenue 1,157,516 $ 23,009,897 4,403,958 12,574,385 41,145,756 $		Revenue 827,127 $ 17,333,518 4,565,210 13,106,105 35,831,960 $	Assets - non-current
				5,004,965 $ 688,236 116,902 3,798,324
				9,608,427 $

(6) Major customer information

For the years ended December 31, 2020 and 2019, the major customer information of the Group are listed below:

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	For theyear	ended December 31,	2020
		Percentage of
Customer	Revenue	total revenue	Segment
Customer A	4,618,786 $	11%	Cloud computing business group
Customer B	11,717,045	28%	Cloud computing business group
Customer C	4,656,177	11%	Cloud computing business group
Customer D	4,347,822	11%	Cloud computing business group
	For theyear	ended December 31,	2019
		Percentage of
Customer	Revenue	total revenue	Segment
Customer A	5,355,068 $	15%	Cloud computing business group
Customer B	5,321,094	15%	Cloud computing business group
Customer C	4,349,024	12%	Cloud computing business group
Customer D	3,781,545	11%	Cloud computing business group

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Table 1

Expressed in thousands of NTD (Except as otherwise indicated)

MITAC HOLDINGS CORPORATION AND SUBSIDIARIES

Loans to others

For the year ended December 31, 2020

No. （Note1）	Creditor	Borrower	General ledger account	Is a related party	Maximum outstanding balance during the year ended December 31, 2020	Balance at December 31, 2020	Actual amount drawn down	Interest rate	Nature of loan （Note 2）	Amount of transactions with the borrower	Reason for short- term financing	Allowance for doubtful accounts	Collateral	Collateral	Limit on loans granted to a single party （Note 3）	Ceiling on total loans granted （Note 3）	Footnote
													Item	Value
0	MiTAC Holdings Corp.	MiTAC International Corp.	Other receivables- related parties	Y	2,000,000 $	2,000,000 $	- $	0	2	- $	Operations	- $	None	- $	4,105,942 $	8,211,884 $
0	MiTAC Holdings Corp.	MiTAC Computing Technology Corp.	Other receivables- related parties	Y	3,000,000	3,000,000	1,355,648	0.22%-1.33%	2	-	Operations	-	None	-	4,105,942	8,211,884
0	MiTAC Holdings Corp.	MiTAC Digital Technology Corp.	Other receivables- related parties	Y	1,000,000	1,000,000	10,538	0.26%	2	-	Operations	-	None	-	4,105,942	8,211,884
1	MiTAC International Corp.	MiTAC Holdings Corp.	Other receivables- related parties	Y	1,000,000	1,000,000	60,000	0.5337%-0.6167%	2	-	Operations	-	None	-	3,741,341	7,482,682
1	MiTAC International Corp.	MiTAC Computing Technology Corp.	Other receivables- related parties	Y	2,900,000	2,900,000	279,104	0.27%-2.70%	2	-	Operations	-	None	-	3,741,341	7,482,682
1	MiTAC International Corp.	MiTAC Digital Technology Corp.	Other receivables- related parties	Y	2,000,000	1,000,000	421,504	0.30%-2.75%	2	-	Operations	-	None	-	3,741,341	7,482,682
1	MiTAC International Corp.	MiTAC Technology (KunShan) Co., Ltd.	Other receivables- related parties	Y	30,250	-	-	2.70%	2	-	Operations	-	None	-	3,741,341	7,482,682
2	MiTAC Computing Technology Corp.	MiTAC Holdings Corp.	Other receivables- related parties	Y	1,120,000	1,120,000	1,120,000	0.6293%	2	-	Operations	-	None	-	1,509,740	1,509,740
2	MiTAC Computing Technology Corp.	MiTAC International Corp.	Other receivables- related parties	Y	370,000	-	-	0.5%-0.75%	2	-	Operations	-	None	-	1,509,740	1,509,740
3	MiTAC Digital Technology Corp.	MiTAC Holdings Corp.	Other receivables- related parties	Y	600,000	600,000	600,000	0.5337%	2	-	Operations	-	None	-	686,277	686,277
3	MiTAC Digital Technology Corp.	MiTAC International Corp.	Other receivables- related parties	Y	500,000	-	-	0.7207%-0.980%	2	-	Operations	-	None	-	686,277	686,277
3	MiTAC Digital Technology Corp.	MiTAC Europe Ltd.	Other receivables- related parties	Y	27,310	-	-	1.9%	2	-	Operations	-	None	-	686,277	686,277
4	Silver Star Developments Ltd.	MiTAC International Corp.	Other receivables- related parties	Y	3,418,250	1,936,640	712,000	0	2	-	Operations	-	None	-	7,891,312	7,891,312
4	Silver Star Developments Ltd.	MiTAC Holdings Corp.	Other receivables- related parties	Y	1,512,500	1,424,000	1,366,186	0	2	-	Operations	-	None	-	39,456,562	39,456,562
4	Silver Star Developments Ltd.	Software Insights Ltd.	Other receivables- related parties	Y	30,250	28,480	28,480	0	2	-	Operations	-	None	-	39,456,562	39,456,562
4	Silver Star Developments Ltd.	Start Well Technology Ltd.	Other receivables- related parties	Y	925,650	871,488	871,488	0	2	-	Operations	-	None	-	39,456,562	39,456,562
4	Silver Star Developments Ltd.	MiTAC Benelux N.V.	Other receivables- related parties	Y	80,684	80,546	77,044	0	2	-	Operations	-	None	-	39,456,562	39,456,562
5	Tyan Computer Corp.(USA)	Mitac Information Systems Corp.	Other receivables- related parties	Y	226,875	213,600	213,600	2.83%	2	-	Operations	-	None	-	1,161,464	1,161,464
6	MiTAC Investment Holding Ltd.	MiTAC Technology (KunShan) Co., Ltd.	Other receivables- related parties	Y	63,496	63,467	63,467	4.35%	2	-	Operations	-	None	-	6,107,991	6,107,991

Table 1,Page 1

No. （Note1）	Creditor	Borrower	General ledger account	Is a related party	Maximum outstanding balance during the year ended December 31, 2020	Balance at December 31, 2020	Actual amount drawn down	Interest rate	Nature of loan （Note 2）	Amount of transactions with the borrower	Reason for short- term financing	Allowance for doubtful accounts	Collateral	Collateral	Limit on loans granted to a single party （Note 3）	Ceiling on total loans granted （Note 3）	Footnote
													Item	Value
6	MiTAC Investment Holding Ltd.	MiTAC Information Systems (Kunshan) Co., Ltd.	Other receivables- related parties	Y	341,562	341,406	341,406	0	2	-	Operations	-	None	-	6,107,991	6,107,991
7	MiTAC Research (ShangHai) Ltd.	MiTAC Investment Holding Ltd.	Other receivables- related parties	Y	275,877	275,751	275,751	0	2	-	Operations	-	None	-	925,407	925,407
8	Access Wisdom Holdings Ltd.	MiTAC Digital Technology Corp.	Other receivables- related parties	Y	32,439	31,328	31,328	0	2	-	Operations	-	None	-	38,318	38,318
9	Mio International Ltd.	MiTAC Digital Technology Corp.	Other receivables- related parties	Y	20,643	19,936	19,936	0	2	-	Operations	-	None	-	20,397	20,397
9	Mio International Ltd.	Access Wisdom Holdings Ltd.	Other receivables- related parties	Y	20,643	19,936	19,936	0	2	-	Operations	-	None	-	101,983	101,983

Note 1: The numbers filled in for the loans provided by the Company or subsidiaries are as follows:

(2) The subsidiaries are numbered in order starting from ‘1’. Note 2: The nature of loan are as follows:

Note 3: (1) MiTAC Holdings Corp. (the Company)'s total borrowing amount of short-term financing should not exceed 20% of the net worth on the latest financial statements audited or reviewed by independent auditors.

The borrowing amount for each borrowing company should not exceed 10% of the net worth of the Company.

(2) MiTAC International Corp. (the Company)'s total borrowing amount of short-term financing should not exceed 20% of the net worth on the latest financial statements audited or reviewed by independent auditors.

The borrowing amount for each borrowing company should not exceed 10% of the net worth of the Company.

MiTAC Computing Technology Corp.’s short-term financing limit should not exceed 40% of the net worth on the latest financial statements audited.

MiTAC Digital Technology Corp.’s short-term financing limit should not exceed 40% of the net worth on the latest financial statements audited.

(5) If Silver Star Developments Ltd. was lending to foreign subsidiaries owned 100% directly and indirectly by the ultimate parent company, the borrowing amount to each borrowing company and the total borrowing amount should not be higher than 200% of the net worth on the latest financial statements audited by independent auditors.

(6) If Silver Star Developments Ltd. was lending to domestic subsidiaries owned 100% directly and indirectly by the ultimate parent company, the borrowing amount to each borrowing company and the total borrowing amount should not be higher than 40% of the net worth on the latest financial statements audited by independent auditors.

(7) The borrowing amount and the total borrowing amount of Tyan Computer Corp. (USA) lending to the ultimate parent company's direct and indirect wholly-owned foreign subsidiaries should not exceed 200% of the net worth on the latest financial statements audited by independent auditors.

(8) If MiTAC Holdings Corp. was lending to domestic subsidiaries owned 100% directly and indirectly by the ultimate parent company, the borrowing amount to each borrowing company and the total borrowing amount should not be higher than 200% of the net worth on the latest financial statements audited by independent auditors. (9) If MiTAC Research (Shanghai) Ltd. was lending to domestic subsidiaries owned 100% directly and indirectly by the ultimate parent company, the borrowing amount to each borrowing company and the total borrowing amount should not be higher than 200% of the net worth on the latest financial statements audited by independent auditors.

(10) If Access Wisdom Holdings Ltd. was lending to domestic subsidiaries owned 100% directly and indirectly by the ultimate parent company, the borrowing amount to each borrowing company and the total borrowing amount should not be higher than 40% of the net worth on the latest financial statements audited by independent auditors.

(11) If Mio International Ltd. was lending to foreign subsidiaries owned 100% directly and indirectly by the ultimate parent company, the borrowing amount to each borrowing company and the total borrowing

amount should not be higher than 200% of the net worth on the latest financial statements audited by independent auditors.

(12) If Mio International Ltd. was lending to domestic subsidiaries owned 100% directly and indirectly by the ultimate parent company, the borrowing amount to each borrowing company and the total borrowing amount should not be higher than 40% of the net worth on the latest financial statements audited by independent auditors.

Table 1,Page 2

MITAC HOLDINGS CORPORATION AND SUBSIDIARIES

Provision of endorsements and guarantees to others For the year ended December 31, 2020

Table 2

Expressed in thousands of NTD (Except as otherwise indicated)

Number （Note 1）	Endorser/ guarantor	Party being endorsed/guaranteed	Party being endorsed/guaranteed	Limit on endorsements/ guarantees provided for a single party (Note 3)	Maximum outstanding endorsement/ guarantee amount as of December 31, 2020	Outstanding endorsement/ guarantee amount at December 31, 2020	Actual amount drawn down	Amount of endorsements/ guarantees secured with collateral	Ratio of accumulated endorsement/guaran tee amount to net asset value of the endorser/guarantor	Ceiling on total amount of endorsements/ guarantees provided （Note 3）	Provision of endorsements/ guarantees by parent company to subsidiary	Provision of endorsements/ guarantees by subsidiary to parent company	Provision of endorsements/ guarantees to the party in Mainland China	Footnote
		Companyname	Relationship with the endorser/ guarantor （Note 2）
0	MiTAC Holdings Corp.	Tyan Computer Corp.(USA)	2	20,529,709 $	281,205 $	199,360 $	199,360 $	- $	0.49	20,529,709 $	Y	N	N
0	MiTAC Holdings Corp.	MiTAC Computing Technology Corp.	2	20,529,709	671,273	663,584	663,584	-	1.62	20,529,709	Y	N	N
0	MiTAC Holdings Corp.	MiTAC International Corp.	2	20,529,709	230	230	230	-	0.00	20,529,709	Y	N	N
0	MiTAC Holdings Corp.	MiTAC Digital Technology Corp.	2	20,529,709	4,003	3,798	3,798	-	0.01	20,529,709	Y	N	N
0	MiTAC Holdings Corp.	MiTAC Information Systems Corp.	2	20,529,709	549,000	-	-	-	0.00	20,529,709	Y	N	N

Note 1: The numbers filled in for the endorsements/guarantees provided by the Company or subsidiaries are as follows: (1) The Company is ‘0’.

• (2) The subsidiaries are numbered in order starting from ‘1’.

Note 2: Relationship between the endorser/guarantor and the party being endorsed/guaranteed is classified into the following six categories; fill in the number of category each case belongs to: (1) Having business relationship

(2)The endorser/guarantor parent company owns directly and indirectly more than 50% voting shares of the endorsed/guaranteed subsidiary.

(3) The endorsed/guaranteed company owns directly and indirectly more than 50% voting shares of the endorser/guarantor parent company. (4)The endorser/guarantor parent company owns directly and indirectly more than 90% voting shares of the endorsed/guaranteed company. (5)Mutual guarantee of the trade made by the endorsed/guaranteed company or joint contractor as required under the construction contract. (6)Due to joint venture, all shareholders provide endorsements/guarantees to the endorsed/guaranteed company in proportion to its ownership. (7) Joint guarantee of the performance guarantee for pre-sold home sales contract as required under the Consumer Protection Act.

Note 3: (1) The endorsement and guarantees amount provided by MiTAC Holdings Corp. to each entity which is directly or indirectly held 50% or more of the voting power by the company should not exceed 50% of the net worth on the latest financial statements audited or reviewed by independent auditors. (2) MiTAC Holding Corp's total endorsements and guarantees should not exceed 50% of the net worth on the latest financial statements audited or reviewed by independent auditors.

Table 2,Page 1

Table 3

Expressed in thousands of NTD (Except as otherwise indicated)

MITAC HOLDINGS CORPORATION AND SUBSIDIARIES

Holding of marketable securities at the end of period (not including subsidiaries, associates and joint ventures) December 31, 2020

Securities held by	Marketable securities	Marketable securities	Relationship with the securities issuer	General ledger account	As of December 31, 2020	As of December 31, 2020	As of December 31, 2020	As of December 31, 2020	Footnote
					Numberofshares	Bookvalue	Ownership (%)	Fairvalue
MiTAC Holdings Corp.	stocks	Synnex Technology International Corp.	Same board chairman	Financial assets at fair value through other comprehensive income-non current	3,103,717	145,875 $	0.19	145,875 $
MiTAC Holdings Corp.	stocks	Healthera Corporation	None	Financial assets at fair value through other comprehensive income-non current	90,141	2,976	0.35	2,976
MiTAC Holdings Corp.	stocks	JVP VIII, L.P.	None	Financial assets at fair value through other comprehensive income-non current	1,400,000	41,956	1.17	41,956
MiTAC Holdings Corp.	stocks	WHETRON ELECTRONICS CO., LTD.	None	Financial assets at fair value through other comprehensive income-non current	6,550,000	128,197	9.05	128,197
MiTAC Holdings Corp.	stocks	Harbinger VIII Venture Capital Corp.	None	Financial assets at fair value through other comprehensive income-non current	7,500,000	73,834	11.57	73,834
MiTAC International Corp.	stocks	Lien Hwa Industrial Holdings Corporation	Same board chairman	Financial assets at fair value through other comprehensive income-non current	35,750,667	1,522,978	2.79	1,522,978
MiTAC International Corp.	stocks	UPC Technology Corp.	Same board chairman	Financial assets at fair value through other comprehensive income-non current	16,179,561	310,648	1.21	310,648
MiTAC International Corp.	stocks	COMPUCASE ENTERPRISE CO., LTD.	None	Financial assets at fair value through other comprehensive income-non current	10,000,000	434,000	8.83	434,000
MiTAC International Corp.	stocks	Synnex Technology International Corp.	Same board chairman	Financial assets at fair value through other comprehensive income-non current	5,245,000	246,515	0.31	246,515
MiTAC International Corp.	stocks	MiTAC INC.	The Company's chairman was this company's	Financial assets at fair value through other comprehensive income-non current	6,259,734	88,118	4.17	88,118
MiTAC International Corp.	stocks	MiTAC Information Technology Corp.	Same board chairman	Financial assets at fair value through other comprehensive income-non current	31,016,697	1,569,703	8.69	1,569,703
MiTAC International Corp.	stocks	Overseas Investment & Development Corp.	None	Financial assets at fair value through other comprehensive income-non current	1,000,000	10,630	1.11	10,630
MiTAC International Corp.	stocks	Harbinger Venture Capital Corp.	Same board chairman	Financial assets at fair value through other comprehensive income-non current	27,828	252	14.05	252
MiTAC International Corp.	stocks	Harbinger VI Venture Capital Corp.	None	Financial assets at fair value through other comprehensive income-non current	3,745,020	47,273	13.28	47,273
MiTAC International Corp.	stocks	Harbinger VII Venture Capital Corp.	Same board chairman	Financial assets at fair value through other comprehensive income-non current	10,000,000	136,396	9.39	136,396
Tsu Fung Investment Corp.	stocks	MiTAC Holdings Corp.	Ultimate parent company	Financial assets at fair value through other comprehensive income-current	9,250,594	272,893	0.77	272,893	Note 1
Tsu Fung Investment Corp.	stocks	Getac Technology Corp.	None	Financial assets at fair value through other comprehensive income-current	7,783,741	380,625	1.33	380,625
Tsu Fung Investment Corp.	stocks	UPC Technology Corp.	None	Financial assets at fair value through other comprehensive income-current	16,360,231	314,116	1.23	314,116
Tsu Fung Investment Corp.	stocks	Synnex Technology International Corp.	None	Financial assets at fair value through other comprehensive income-current	6,899,974	324,299	0.41	324,299
Tsu Fung Investment Corp.	stocks	Lien Hwa Industrial Holdings Corporation	None	Financial assets at fair value through other comprehensive income-current	4,302,166	183,272	0.34	183,272
Tsu Fung Investment Corp.	stocks	National Aerospace Fasteners Corporation	None	Financial assets at fair value through other comprehensive income-current	2,609,479	30,531	2.96	30,531
Tsu Fung Investment Corp.	stocks	PROMISE Technology Inc.	None	Financial assets at fair value through other comprehensive income-non current	4,594,672	64,679	3.06	64,679
Tsu Fung Investment Corp.	stocks	MiTAC INC.	None	Financial assets at fair value through other comprehensive income-non current	19,121,826	967,717	5.36	967,717
Tsu Fung Investment Corp.	stocks	MiTAC Information Technology Corp.	None	Financial assets at fair value through other comprehensive income-non current	4,848,125	137,647	19.99	137,647	Note 2
Tsu Fung Investment Corp.	stocks	Tung Da Investment Co., Ltd.	None	Financial assets at fair value through other comprehensive income-non current	862,922	15,472	19.99	15,472
Tsu Fung Investment Corp.	stocks	Lien Yung Investment Corp.	None	Financial assets at fair value through other comprehensive income-non current	9,217,196	120,838	19.99	120,838
Silver Star Developments Ltd. and its subsidiaries	stocks	MiTAC Holdings Corp.	Ultimate parent company	Financial assets at fair value through other comprehensive income-non current	2,127,954	62,775	0.18	62,775	Note 1
Silver Star Developments Ltd. and its subsidiaries	stocks	Budworth Investments Ltd.	None	Financial assets at fair value through other comprehensive income-non current	134,908	46	14.83	46
Silver Star Developments Ltd. and its subsidiaries	stocks	Panasas Inc.	None	Financial assets at fair value through profit or loss- non current	13,913	-	0.04	-

Note 1: The Company's shares held by Tsu Fung Investment Corp. and Silver Star Developments Ltd. are accounted for as treasury stocks.

Note 2: MiTAC International Corp. sold its shares of Tung Da Investment Co., Ltd. to Tsu Fung Investment Corp.,and such disposal gain has not yet been realised.

Table 3,Page 1

For the year ended December 31, 2020

Table 4

Expressed in thousands of NTD (Except as otherwise indicated)

MITAC HOLDINGS CORPORATION AND SUBSIDIARIES

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

Purchaser/seller	Counterparty	Relationship with the counterparty	Transaction	Transaction	Transaction	Transaction	Differences in transaction terms	Differences in transaction terms	Notes/accounts receivable(payable)	Notes/accounts receivable(payable)	Footnote
			Purchases /sales	Amount	Percentage of total purchases/sales	Credit term	Unitprice	Credit term	Balance	Percentage of total notes/accounts receivable(payable)
MiTAC Computing Technology Corp.	MiTAC Information Systems Corp.	Subsidary	Sales	12,647,856 $	47.41%	Note 1	Note 3	Note 1	4,435,284 $	69.94%
MiTAC Computing Technology Corp.	MiTAC Computer (Shunde) Ltd.	Affiliate	Purchases	434,309	1.73%	Note 2	Note 3	Note 2	1,419,180) (	25.00%
MiTAC Computing Technology Corp.	Tyan Computer Corp.(USA)	Subsidary	Sales	407,741	1.53%	Note 1	Note 3	Note 1	-	0.00%
MiTAC Computing Technology Corp.	MiTAC Telematics Technology Corporation	Subsidary	Sales	715,740	2.68%	Note 1	Note 3	Note 1	6,941	0.11%
MiTAC Computing Technology Corp.	Synnex Corp. and its subsidiaries	Associate of affiliate	Sales	747,472	2.80%	Note 1	Note 3	Note 1	171,719	2.71%
MiTAC Computing Technology Corp.	Synnex Technology International Corp. and its subsidiaries	Others	Purchases	342,301	1.36%	Note 2	Note 3	Note 2	9,544) (	0.17%
MiTAC Computing Technology Corp.	MiTAC Japan Corp.	Affiliate	Sales	168,562	0.63%	Note 1	Note 3	Note 1	37,062	0.58%
MiTAC Digital Technology Corp.	MiTAC Australia Pty Ltd.	Subsidary	Sales	154,309	3.51%	Note 1	Note 3	Note 1	83,108	12.39%
MiTAC Digital Technology Corp.	MiTAC Computer (Kunshan) Ltd.	Affiliate	Purchases	858,779	29.04%	Note 2	Note 3	Note 2	835,634) (	68.35%
Silver Star Developments Ltd.(SSDL) and its subsidiaries	MiTAC Computing Technology Corp.	Affiliate	Sales	521,779	3.59%	Note 1	Note 3	Note 1	1,462,804	36.57%
Silver Star Developments Ltd.(SSDL) and its subsidiaries	MiTAC Computing Technology Corp.	Affiliate	Purchases	168,597	1.22%	Note 2	Note 3	Note 2	37,062) (	3.16%
Silver Star Developments Ltd.(SSDL) and its subsidiaries	MiTAC Digital Technology Corp.	Affiliate	Sales	868,965	5.98%	Note 1	Note 3	Note 1	847,161	21.18%
MiTAC Technology UK Ltd. and its subsidiaries	MiTAC Computing Technology Corp.	Parent Company	Purchases	13,055,596	69.59%	Note 2	Note 3	Note 2	4,435,284) (	79.57%
MiTAC Technology UK Ltd. and its subsidiaries	Synnex Corp. and its subsidiaries	Associate of affiliate	Sales	782,857	4.11%	Note 1	Note 3	Note 1	43,997	2.49%
Access Wisdom Holdings Ltd and its subsidiaries	MiTAC Digital Technology Corp.	Parent Company	Purchases	201,293	100.25%	Note 2	Note 3	Note 2	100,115) (	77.16%
Hyve Design Solutions Corporation and its subsidiaries	Synnex Corp. and its subsidiaries	Associate of affiliate	Sales	185,871	100.00%	Note 1	Note 3	Note 1	-	-	Note 4
Note 1: The Group’s credit term for subsidiaries is to collect within 5 months based on the net amount of receivables after offseting against payables. The Group’s credit term for related parties is within 3 months based on the net amount of receivables after offsetting against payables; the credit term for third parties is an average of 3 months after the date of shipment. Note 2: The Group’s payment term for subsidiaries is within 5 months based on the net amount of receivables after offsetting against payables. The Group's payment term related parties within 3 months based on the net amount of receivables after offsetting against payables; the payment term for third parties is an average of 3 months after the date of shipment from the counterparty. Note 3: The selling price to related parties is based on market value. Note 4：Hyve Design Solutions Corporation and its subsidiaries became the associates of the Group since August 19, 2020.

Table 4,Page 1

Table 5

Expressed in thousands of NTD (Except as otherwise indicated)

MITAC HOLDINGS CORPORATION AND SUBSIDIARIES

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

December 31, 2020

Creditor	Counterparty	Relationship with the counterparty	Amount receivables	Other receivables	Turnover rate	Overdue receivables	Overdue receivables	Amount collected subsequent to the balance sheet date	Allowance for doubtful accounts	Footnote
						Amount	Action taken
MiTAC Holdings Corp.	MiTAC Computing Technology Corp.	Subsidiary	- $	169,525 $	-	- $	Not Applicable	- $	- $
MiTAC Computing Technology Corp.	MiTAC Information Systems Corp.	Subsidiary	4,435,284	1,368	2.93	-	Not Applicable	872,025	-
MiTAC Computing Technology Corp.	Synnex Corp. and its subsidiaries	Associate of affiliate	171,719	-	5.59	-	Not Applicable	107,028	-
Silver Star Develpoments Ltd. and its subsidiaries	MiTAC Computing Technology Corp.	Affiliate	1,462,804	24,476	0.46	-	Not Applicable	1,368,464	-
Silver Star Develpoments Ltd. and its subsidiaries	MiTAC Digital Technology Corp.	Affiliate	847,161	1,291	0.88	-	Not Applicable	393,024	-

Table 5,Page 1

Table 6

Expressed in thousands of NTD

MITAC HOLDINGS CORPORATION AND SUBSIDIARIES Significant inter-company transactions during the reporting periods For the year ended December 31, 2020

(Except as otherwise indicated)

Number (Note 1)	Companyname	Counterparty	Relationship (Note 2)	Transaction	Transaction	Transaction	Transaction
				General ledger account	Amount	Transaction terms	Percentage of consolidated total operating revenues or total assets(Note 3)
0	MiTAC Holdings Corp.	MiTAC Computing Technology Corp.	1	Other receivables	1,525,173		2.67%
0	MiTAC Holdings Corp.	MiTAC Digital Technology Corp.	1	Other receivables	100,206		0.18%
1	MiTAC International Corp.	MiTAC Holdings Corp.	2	Other receivables	104,278		0.18%
1	MiTAC International Corp.	MiTAC Computing Technology Corp.	3	Other operating revenue	123,355		0.22%
1	MiTAC International Corp.	MiTAC Computing Technology Corp.	3	Other receivables	326,534		0.57%
1	MiTAC International Corp.	MiTAC Digital Technology Corp.	3	Other receivables	431,574		0.75%
2	MiTAC Computing Technology Corp.	MiTAC Technology UK Ltd. and its subsidiaries	3	Sales	13,055,596	Note 4	31.73%
2	MiTAC Computing Technology Corp.	MiTAC Technology UK Ltd. and its subsidiaries	3	Accounts receivable	4,435,284	Note 4	7.76%
2	MiTAC Computing Technology Corp.	Silver Star Develpoments Ltd. and its subsidiaries	3	Sales	168,597	Note 4	0.41%
2	MiTAC Computing Technology Corp.	Silver Star Develpoments Ltd. and its subsidiaries	3	Purchases	521,779	Note 5	1.27%
2	MiTAC Computing Technology Corp.	Silver Star Develpoments Ltd. and its subsidiaries	3	Accountspayable	1,462,804	Note 5	2.56%
2	MiTAC Computing Technology Corp.	MiTAC Telematics Technology Corporation	3	Sales	715,740	Note 4	1.74%
3	Silver Star Develpoments Ltd. and its subsidiaries	MiTAC Holdings Corp.	2	Other receivables	1,366,186		2.39%
3	Silver Star Develpoments Ltd. and its subsidiaries	MiTAC International Corp.	3	Other receivables	715,389		1.25%
4	MiTAC Digital Technology Corp.	Access Wisdom Holdings Ltd and its subsidiaries	3	Sales	201,293	Note 4	0.49%
4	MiTAC Digital Technology Corp.	Access Wisdom Holdings Ltd and its subsidiaries	3	Accounts receivable	100,115	Note 4	0.18%
4	MiTAC Digital Technology Corp.	Silver Star Develpoments Ltd. and its subsidiaries	3	Purchases	868,965	Note 5	2.11%
4	MiTAC Digital Technology Corp.	Silver Star Develpoments Ltd. and its subsidiaries	3	Accountspayable	847,161	Note 5	1.48%
4	MiTAC Digital Technology Corp.	MiTAC Holdings Corp.	2	Other receivables	600,000		1.05%

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:

• (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.

Note 4: The Group's credit term for foreign related parties is 5 months for the collection of the net amount of receivables after offsetting against payables, which takes into consideration the reasonable amount of time for the Company to ship the products to each company and for the collection of the accounts. The company's sales price with related parties is based on the intermational market trends and the region the sales were made. Note 5: The Group's payment term for foreign related parties is 5 months for the collection of the net amount of receivables after offsetting against payables after checking and the transaction price is based on the international market trends and the region the sales were made.

Note 6: The Company may decide to disclose or not to disclose transaction details in this table based on the Materiality Principle.

Table 6,Page 1

MITAC HOLDINGS CORPORATION AND SUBSIDIARIES

Information on investees (Does not include Mainland China invested companies)

For the year ended December 31, 2020

Table 7

Expressed in thousands of NTD (Except as otherwise indicated)

Investor	Investee	Location	Main business activities	Initial investment amount	Initial investment amount	Shares held as at December 31,2020	Shares held as at December 31,2020	Shares held as at December 31,2020	Net profit (loss) of the investee For the year ended December 31, 2020	Investment income (loss) recognised by the Company For the year ended December 31,	Footnote
				Balance as at December 31,2020	Balance as at December 31, 2019	Number of shares （Note）	Ownership (%)	Book value
MiTAC Holdings Corp.	MiTAC International Corp.	Taiwan	Development, design and manufacturing and sale of computers and its peripherals, telecommunication related products	24,739,187 $	24,739,187 $	2,222,013,187	100.00	38,764,957 $	2,813,362 $	2,802,577 $	Subsidiary
MiTAC Holdings Corp.	MiTAC Computing Technology Corp.	Taiwan	Development, design and manufacturing and sale of computers and its peripherals, telecommunication related products	3,419,621	3,419,621	232,757,102	100.00	3,741,073	121,447	123,234	Subsidiary
MiTAC Holdings Corp.	MiTAC Digital Technology Corp.	Taiwan	Sales and service of electronic telecommunication, communication and software, etc.	1,547,485	1,547,485	103,099,000	97.17	1,643,435	34,190	33,695	Subsidiary
MiTAC Holdings Corp.	Infopower Technologies Ltd.	India	Manufacture and sale of electronic product.	75,084	75,084	6,774,199	33.33	70,278	3,792) (	1,491) (	Associate
MiTAC International Corp.	Getac Technology Corp.	Taiwan	Manufacturing and sale of notebook computers, military and industrial computer systems,etc.	1,391,549	1,391,549	190,396,939	32.31	5,249,079	2,577,039		Associate
MiTAC International Corp.	Tsu Fung Investment Corp.	Taiwan	Investment	625,000	625,000	142,884,651	100.00	3,035,807	86,534		Subsidiary
MiTAC International Corp.	3Probe Technologies Corp.	Taiwan	Information process service, sales of software and international trading.	16,839	16,839	1,086,000	23.25	13,962	7,541		Associate
MiTAC International Corp.	Lian Jie Investment Co., Ltd.	Taiwan	Investment	113,057	113,057	11,305,650	49.98	168,258	5,584		Associate
MiTAC International Corp.	Lian Jie II Investment Co., Ltd.	Taiwan	Investment	32,500	32,500	3,250,000	32.50	42,467	10,463) (		Associate
MiTAC International Corp.	Silver Star Developments Ltd.and its subsidiary	British Virgin Islands	Investment	5,021,004	5,021,004	176,299,302	100.00	22,086,728	1,824,157		Subsidiary
MiTAC International Corp.	Shen-Tong Construction & Development Co., ltd.	Taiwan	Building and factory construction, leasing and sales	90,349	90,349	9,034,922	47.55	86,012	430) (		Associate
MiTAC International Corp.	LFE AEROSPACE INDUSTRY CORP.	Taiwan	Electronic components manufacturing, aircraft and its parts manufacturing and wholesale industry.	121,475	121,475	11,233,750	15.40	110,302	21,165) (		Associate
MiTAC Computing Technology Corp.	MiTAC Technology UK Ltd. and its subsidiaries	UK	Investment	1,453,931	1,675,038	55,146,138	100.00	1,391,382	34,273) (		Subsidiary
MiTAC Computing Technology Corp.	Mitac Information Technology Czech s.r.o.	Czech Republic	Assemble and sales of computer and peripheral equipment.	-	9,815	-	0.00	-	12) (		Subsidiary (Note 1)

Table 7,Page 1

Investor	Investee	Location	Main business activities	Initial investment amount	Initial investment amount	Shares held as at December 31,2020	Shares held as at December 31,2020	Shares held as at December 31,2020	Net profit (loss) of the investee For the year ended December 31, 2020	Investment income (loss) recognised by the Company For the year ended December 31,	Footnote
				Balance as at December 31,2020	Balance as at December 31, 2019	Number of shares （Note）	Ownership (%)	Book value
MiTAC Computing Technology Corp.	Hyve Design Solutions Corporation	USA	Assemble and sales of computer and peripheral equipment.	142,400	56,960	1,000,000	50.00	22,604) (	251,162) (		Associate
MiTAC Digital Technology Corp.	Mio International Ltd. and its subsidiaries	British Virgin Islands	Sale of communication products	64,868	64,868	1,275,001	100.00	78,171	1,694		Subsidiary
MiTAC Digital Technology Corp.	Access Wisdom Holdings Limited. and its subsidiaries	British Virgin Islands	Investment	-	-	48,500,000	100.00	90,406	5,728) (		Subsidiary
Silver Star Developments Ltd. and its subsidiaries	Mainpower International Ltd.	British Virgin Islands	Investment	156,640	156,640	5,500,001	13.28	240,230	169,184		Associate
Silver Star Developments Ltd. and its subsidiaries	Synnex Corp.	USA	Information process services, sales of computer peripheral, system and network products	1,092,561	966,108	5,299,980	10.28	5,977,703	15,379,326		Associate
Silver Star Developments Ltd. and its subsidiaries	Concentrix Corp.	USA	Information process services, sales of computer peripheral, system and network products	6,677,974	-	5,299,980	10.28	6,677,974	-		Associate
Silver Star Developments Ltd. and its subsidiaries	Harbinger Ruyi Venture Ltd.	British Virgin Islands	Investment	28,480	28,480	1,000,000	28.57	18,970	1,343) (		Associate
Silver Star Developments Ltd. and its subsidiaries	Harbinger Ruyi II Venture Ltd.	British Virgin Islands	Investment	28,480	28,480	10,000	32.26	49,096	380		Associate
Tsu Fung Investment Corp.	LFE AEROSPACE INDUSTRY CORP.	Taiwan	Electronic components manufacturing, aircraft and its parts manufacturing and wholesale industry.	15,504	15,504	1,433,740	1.97	13,104	21,165) (		Associate
Tsu Fung Investment Corp.	MiTAC Digital Technology Corp.	Taiwan	Sales and service of electronic telecommunication, communication and software, etc.	16	16	1,000	0.001	16	34,190		Subsidiary

Note 1: This Company was liquidated in 2020.

Table 7,Page 2

Expressed in thousands of NTD (Except as otherwise indicated)

MITAC HOLDINGS CORPORATION AND SUBSIDIARIES

Information on investments in Mainland China

For the year ended December 31, 2020

Table 8

A. Invested information in Mainland China

A. Invested information in Mainland China
Investee in Mainland China	Main business activities	Paid-in capital	Investment method (Note 1)	Accumulated amount of remittance from Taiwan to Mainland China as of January 1,2020	~~Amount remitted from~~ Taiwan to Mainland China/ Amount remitted back to Taiwan For the year ended December 31,2020		Accumulated amount of remittance from Taiwan to Mainland China as of December 31,2020	Net income of investee as of December 31, 2020	Ownership held by the Company (direct or indirect)	Investment income (loss) recognised by the Company For the year ended December 31, 2020(Note 2)	Book value of investments in Mainland China as of December 31,2020	Accumulated amount of investment income remitted back to Taiwan as of December 31,2020	Footnote
					Remitted to Mainland China	Remitted back to Taiwan
MiTAC Computer (Shunde) Corp.	Manufacturing of computer cases and monitors. Etc.	1,823,920 $	2	1,136,373 $	- $	- $	1,136,373 $	126,546 $	100.00	126,546 $	2,864,290 $	- $
MiTAC Computer (Kunshan) Co., Ltd.	Sales and manufacturing of computer accessories, hardware, software and related services	2,234,480	2	1,668,928	-	-	1,668,928	33,090	100.00	33,090	2,843,230	-
MiTAC Technology (Kunshan) Co., Ltd.	Testing, repair and display of computer components and related products, and related technical advisory services and after-sale services	36,228	2	28,480	-	-	28,480	3,312) (	100.00	3,312) (	27,537	-
MiTAC Research (ShangHai) Ltd.	Research, development and production of computer software, sales of own-produced products and related technical advisory services	188,386	2	148,096	-	-	148,096	11,898	100.00	11,898	474,867	-
Shzhou MiTAC Precision Technology Co., Ltd.	Design and manufacturing of computer chassis and its components, percision plastic injection mould, molding parts and molding equipment processing and maintenance and repair services.	1,544,983	2	384,480	-	-	384,480	221,999	27.44	60,914	595,374	-
Mio Technology (Suzhou) Ltd.	Sales of communication products and related after- sale services	8,219	2	28,338	-	-	28,338	1,694	100.00	1,694	33,710	-
MiTAC Logistic Service (Kunshan) Ltd.	Agency of freight transport, export and import trading and warehousing services	29,854	2	28,480	-	-	28,480	1,405	100.00	1,405	39,464	-
MiTAC Information Technology Ltd.	After-sales maintenance, testing, consulting services and related support technology services	8,966	2	8,544	-	-	8,544	3,637	100.00	3,637	48,106	-
MiTAC Innovation (Kunshan) Ltd.	Research and development of computer, server, mobile phone, PDA, GNSS and GPS, and related technology transfer, technical services	28,760	2	28,480	-	-	28,480	3,858	100.00	3,858	75,740	-
MiTAC Telematics Technology Corporation	Sales of self-produced products and related after-sale services	8,754	1	2,078	-	-	2,078	7,767	100.00	7,767	16,811	-
MiTAC Investment Holding Ltd.	Investment Holdings	2,054,091	2	854,400	-	-	854,400	50,733	100.00	50,733	3,105,859	-
MiTAC Information Systems (Kunshan) Co., Ltd.	Sales and manufacturing of computer accessories, hardware, software and related services	1,050,480	3	-	-	-	-	2,053) (	100.00	2,053) (	1,043,902	-
Note 1: Investment methods are classified into the following three categories: (1) Directly invest in a company in Mainland China. (2) Invest in the investees in Mainland China through the company which are located in the third area. (3) Others:Invest in Mainland China through investees in Mainland Chian. (1) It should be indicated if the investee was still in the incorporation arrangements and had not yet generated any profit during this period. (2) Indicate the basis for investment income (loss) recognition in the number of one of the following three categories: A. The financial statements were audited and attested by international accounting firm which has cooperative relationship with accounting firm in R.O.C.. B. The financial statements were audited and attested by R.O.C. parent company's CPA. C. The financial statements were not audited and attested by independent accountants. Note 2: In the 'Investment income (loss)recognised by the Company For the year ended December 31, 2020 column:

• (3) The basis for investment income (loss) recognition for MiTAC computer (Shunde) Corp., MiTAC Computer (Kunshan) Co., Ltd., MiTAC Research (ShangHai) Ltd., and Shzhou MiTAC Precision Technology Co., Ltd. is category B, the others are category C.

Note 3:Among the accumulated amount of remittance from Taiwan to Mainland China as of December 31, 2020 of MiTAC Computer (Kunshan) Co., Ltd., MiTAC Investment Holding Ltd remitted out USD 29,900 thousand.

Table 8,Page 1

Companyname	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
MiTAC International Corp.	3,824,929 $	4,643,729 $	23,460,375 $
MiTAC Computing Technology Corp.	2,078	2,078	(Note 4)
MiTAC Digital Technology Corp.	21,218	21,218	1,014,392

Note 4: In accordance with the "Regulations Governing the Permission of Investment or Techical Cooperation in Mainland Area", MiTAC Computing Technology Corp. has acquired the Business Operation Headquarter Certificate B. Significant transactions conducted with investees in Mainland China:

MiTAC Digital Technology Corp. and MiTAC Computing Technology Corp's delivery service expenses with investees in Mainland China for the year ended December 31, 2020 amounted to $17,399, for details of other significant transactions, please refer to table 1 and table 4.

Table 8,Page 2

MITAC HOLDINGS CORPORATION AND SUBSIDIARIES

Major shareholders information

December 31, 2020

Table 9

Name of major shareholders	Shares	Shares
	Number of shares held	Ownership (%)
MiTAC INCORPORATED	104,431,091	8.65%
UPC Technology Corporation	99,802,598	8.27%
Lien Hwa Industrial Holdings Corporation	85,941,944	7.12%

Table 9,Page 1