MHC - Audit Report / Information 2020

MiTAC HOLDINGS CORPORATION

PARENT COMPANY ONLY FINANCIAL

STATEMENTS AND INDEPENDENT AUDITORS’

REPORT

DECEMBER 31, 2020 AND 2019

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

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INDEPENDENT AUDITORS’ REPORT

PWCR20000482

To the Board of Directors and Shareholders of MiTAC Holdings Corporation

Opinion

We have audited the accompanying parent company only balance sheets of MiTAC Holdings Corporation (the “Company”) as at December 31, 2020 and 2019, and the parent company only statements of comprehensive income, of changes in equity and of cash flows for the years then ended, and notes to the parent company only 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 parent company only financial statements present fairly, in all material respects, the parent company only financial position of MiTAC Holdings Corporation as at December 31, 2020 and 2019, and its parent company only financial performance and its parent company only cash flows for the years then ended in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers.

Basis for opinion

We conducted our audit of the parent company only 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-Auditing1090360805 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 parent company only 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 parent company only financial statements section of our report. We are independent of the Company in accordance with the Norm of Professional Ethics for Certified Public Accountants of the Republic of China, and we have fulfilled our other ethical 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

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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 Company’s 2020 parent company only financial statements. These matters were addressed in the context of our audit of the parent company only financial statements as a whole and, in forming our opinion thereon, we do not provide a separate opinion on these matters.

As of December 31, 2020, the Company recognised MiTAC International Corporation and its subsidiaries, MiTAC Computing Technology Corporation and its subsidiaries and MiTAC Digital Technology Corporation and its subsidiaries, as investments accounted for using the equity method, please refer to Note 6(3) for the details. The aforementioned investments accounted for using equity method constitute 95% of the Company’s total assets. Thus, we consider the following key audit matters of the Company’s investees also as key audit matters of the Company.

Sales revenue recognition

Description

Given that revenues are material to the financial statements of the subsidiaries that are accounted for using equity method, the various types of products and sales terms, 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 of investees 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.

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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 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 the reports of other independent auditors

We did not audit certain investments accounted for under the indirect equity method that were included in the parent company only financial statements, whose financial statements were prepared under a different financial reporting framework. The Company converted the financial statements in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers. Share of profit (loss) 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. Those financial statements before adjustments 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 reports of the other independent auditors.

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Responsibilities of management and those charged with governance for the parent company only financial statements

Management is responsible for the preparation and fair presentation of the parent company only financial statements in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and for such internal control as management determines is necessary to enable the preparation of parent company only financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the parent company only financial statements, management is responsible for assessing the Company’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 company or to cease operations, or has no realistic alternative but to do so.

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

Auditors’ responsibilities for the audit of the parent company only financial statements

Our objectives are to obtain reasonable assurance about whether the parent company only 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 is 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 parent company only 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:

Identify and assess the risks of material misstatement of the parent company only 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

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resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

2.

3.

4.

5.

6.

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 Company’s internal control.

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

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 Company’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditors’ report to the related disclosures in the parent company only 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 Company to cease to continue as a going concern.

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

Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the Company to express an opinion on the parent company only financial statements. We are responsible for the direction, supervision and performance of the audit. We remain solely responsible for our audit opinion.

We communicate with those charged with governance regarding, among other matters, 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 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

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were of most significance in the audit of the parent company only financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditors’ 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 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 parent company only 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 parent company only 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 PARENT COMPANY ONLY BALANCE SHEETS DECEMBER 31, 2020 AND 2019

(Expressed in thousands of New Taiwan dollars)

Assets	December31,2020 AMOUNT % `$` `28,341` `-` `1,127` `-` `1,632,875` `4` `7,907` `-` `956` `-` `1,671,206` `4` `392,838` `1` `44,219,743` `95` `2,388` `-` `106` `-` `44,615,075` `96` `$` `46,286,281` `100`	December31,2019	December31,2019
	AMOUNT `$` `28,341` `1,127` `1,632,875` `7,907` `956` `1,671,206` `392,838` `44,219,743` `2,388` `106` `44,615,075` `$` `46,286,281`	AMOUNT `$` `56,403` `4` `181,297` `7,907` `1,004` `246,615` `350,664` `40,119,449` `3,184` `106` `40,473,403` `$` `40,720,018`	%
Current assets 1100 Cash and cash equivalents 1200 Other receivables 1210 Other receivables - related parties 1220 Current income tax assets 1410 Prepayments 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 1920 Refundable deposits 15XX Total Non-current assets 1XXX Total assets			`-` `-` `1` `-` `-`
			`1`
			`1` `98` `-` `-`
			`99`
			`100`

(Continued)

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MiTAC HOLDINGS CORPORATION PARENT COMPANY ONLY 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(5)
$
100,000
-
$
1,000,000
2
10,487
-
9,538
-
7
3,198,829
7
13,826
-
263,957
1
206,726
1
14
-
104
-
3,573,287
8
1,230,194
3
3,573,287
8
1,230,194
3
6(6)
12,065,568
26
10,772,829
27
6(7)
23,582,411
51
23,400,002
58
6(8)
1,451,388
3
1,167,412
3
-
-
12,265
-
4,110,220
9
3,818,704
9
6(9)
1,743,283
3
671,699
1
6(6)
(
239,876)
- (
353,087) (
1 )
42,712,994
92
39,489,824
97
$
46,286,281
100
$
40,720,018
100

Current liabilities
2100
Current borrowings
2200
Other payables
2220
Other payables - related parties
2230
Current income tax liabilities
2300
Other current liabilities
21XX
Total Current Liabilities
2XXX
Total Liabilities
Equity
Share capital
3110
Common stock
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
3XXX
Total equity
3X2X
Total liabilities and equity

Liabilities and Equity	December31,2020 December31,2019 Notes AMOUNT % AMOUNT % 6(5) `$` `100,000` `-` `$` `1,000,000` `2` `10,487` `-` `9,538` `-` 7 `3,198,829` `7` `13,826` `-` `263,957` `1` `206,726` `1` `14` `-` `104` `-` `3,573,287` `8` `1,230,194` `3` `3,573,287` `8` `1,230,194` `3` 6(6) `12,065,568` `26` `10,772,829` `27` 6(7) `23,582,411` `51` `23,400,002` `58` 6(8) `1,451,388` `3` `1,167,412` `3` `-` `-` `12,265` `-` `4,110,220` `9` `3,818,704` `9` 6(9) `1,743,283` `3` `671,699` `1` 6(6) `(` `239,876)` `- (` `353,087) (` `1 )` `42,712,994` `92` `39,489,824` `97` `$` `46,286,281` `100` `$` `40,720,018` `100`
Current liabilities 2100 Current borrowings 2200 Other payables 2220 Other payables - related parties 2230 Current income tax liabilities 2300 Other current liabilities 21XX Total Current Liabilities 2XXX Total Liabilities Equity Share capital 3110 Common stock 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 3XXX Total equity 3X2X Total liabilities and equity

The accompanying notes are an integral part of these parent company only financial statements.

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MiTAC HOLDINGS CORPORATION

PARENT COMPANY ONLY STATEMENTS OF COMPREHENSIVE INCOME FOR THE YEARS ENDED DECEMBER 31, 2020 AND 2019

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

Items	YearendedDecember31	YearendedDecember31
	2020	2019
	AMOUNT `$` `2,968,036` `33,880 ) (` `2,934,156` `3,487` `268` `59` `8,702 )` `4,888 )` `2,929,268` `10,563 ) (` `$` `2,918,705` `$` `26,206` `1,781,644` `1,807,850` `721,722 ) (` `721,722 ) (` `$` `1,086,128` `$` `4,004,833` `$`
4000 Operating revenue Operating expenses 6200 General and administrative expenses 6900 Operating profit Non-operating income and expenses 7100 Interest income 7010 Other income 7020 Other gains and losses 7050 Finance costs 7000 Total non-operating income and expenses 7900 Profit before income tax 7950 Income tax expense 8200 Profit for the year Other comprehensive income (loss) - net Components of other comprehensive income (loss) that will not be reclassified to profit or loss 8316 Unrealized gains (losses) from investments in equity instruments measured at fair value through other comprehensive income (loss) 8330 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 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 8380 Share of other comprehensive income of subsidiaries, 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 9750 Basic earnings per share 9850 Diluted earnings per share
	`$`

The accompanying notes are an integral part of these parent company only financial statements.

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MiTAC HOLDINGS CORPORATION

PARENT COMPANY ONLY STATEMENTS OF CHANGES IN EQUITY FOR THE YEARS ENDED DECEMBER 31, 2020 AND 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 for 2019 Other comprehensive income(loss) for 2019 Total comprehensive income(loss) Distribution of 2018 earnings Legal reserve Special reserve appropriated Cash dividends Stock dividends Subsidiaries received cash dividends paid by the parent company Change of subsidiaries and associates accounted for using equity method Proceeds from subsidiaries' disposal of investments accounted for using equity method Proceeds from disposal of equity instruments measured at fair value through other comprehensive income Adjustments in equity due to non-subscription the new shares issued by subsidiaries proportionately to ownership Balance at December 31, 2019 Year 2020 Balance at January 1, 2020 Profit 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 Subsidiaries change of associates accounted for using equity method Proceeds from disposal of equity instruments measured at fair value through other comprehensive income Proceeds from disposal of equity instruments by subsidiaries measured at fair value through other comprehensive income Proceeds from disposal of investments by subsidiaries accounted for using equity method Disposal of company’s share by subsidiaries recognised as treasury share transactions Capital surplus - dividends unclaimed by the subsidiaries’ shareholders Balance at December 31, 2020	Notes		Share capital - commonstock		Capital surplus, additional paid-in capital				Retained earnings				Otherequityinterest	Otherequityinterest	Otherequityinterest		Treasury stocks		Totalequity
							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(8) 6(7) 6(7)(9) 6(9) 6(9) 6(7) 6(8) 6(7) 6(7)(9) 6(9) 6(9) 6(9) 6(7) 6(7)		`$` `9,367,677` `-` `9,367,677` `-` `-` `-` `-` `-` `-` `1,405,152` `-` `-` `-` `-` `-` `$` `10,772,829` `$` `10,772,829` `-` `-` `-` `-` `-` `-` `1,292,739` `-` `-` `-` `-` `-` `-` `-` `$` `12,065,568`		`$` `23,370,899` `-` `23,370,899` `-` `-` `-` `-` `-` `-` `-` `20,740` `7,754` `-` `-` `609` `$` `23,400,002` `$` `23,400,002` `-` `-` `-` `-` `-` `-` `-` `10,784` `87,108` `-` `-` `-` `83,417` `1,100` `$` `23,582,411`		`$` `837,787` `-` `837,787` `-` `-` `-` `329,625` `-` `-` `-` `-` `-` `-` `-` `-` `$` `1,167,412` `$` `1,167,412` `-` `-` `-` `283,976` `-` `-` `-` `-` `-` `-` `-` `-` `-` `-` `$` `1,451,388`		`$` `-` `-` `-` `-` `-` `-` `-` `12,265` `-` `-` `-` `-` `-` `-` `-` `$` `12,265` `$` `12,265` `-` `-` `-` `-` `(` `12,265 )` `-` `-` `-` `-` `-` `-` `-` `-` `-` `$` `-`		`$` `4,131,139` `(` `50 )` `4,131,089` `2,817,880` `(` `22,376 )` `2,795,504` `(` `329,625 )` `(` `12,265 )` `(` `1,405,152 )` `(` `1,405,152 )` `-` `4,624` `(` `341 )` `40,022` `-` `$` `3,818,704` `$` `3,818,704` `2,918,705` `221` `2,918,926` `(` `283,976 )` `12,265` `(` `1,077,283 )` `(` `1,292,739 )` `-` `25,693` `(` `3,397 )` `(` `7,985 )` `12` `-` `-` `$` `4,110,220`		`($` `62,976 )` `-` `(` `62,976 )` `-` `(` `1,017,982 )` `(` `1,017,982 )` `-` `-` `-` `-` `-` `-` `-` `-` `(` `770 )` `($` `1,081,728 )` `($` `1,081,728 )` `-` `(` `721,722 )` `(` `721,722 )` `-` `-` `-` `-` `-` `-` `-` `-` `-` `-` `-` `($` `1,803,450 )`		`$` `511,888` `-` `511,888` `-` `1,285,844` `1,285,844` `-` `-` `-` `-` `-` `(` `4,624 )` `341` `(` `40,022 )` `-` `$` `1,753,427` `$` `1,753,427` `-` `1,807,629` `1,807,629` `-` `-` `-` `-` `-` `(` `25,693 )` `3,397` `7,985` `(` `12 )` `-` `-` `$` `3,546,733`		`($` `353,087 )` `-` `(` `353,087 )` `-` `-` `-` `-` `-` `-` `-` `-` `-` `-` `-` `-` `($` `353,087 )` `($` `353,087 )` `-` `-` `-` `-` `-` `-` `-` `-` `-` `-` `-` `-` `113,211` `-` `($` `239,876 )`		`$` `37,803,327` `(` `50 )` `37,803,277` `2,817,880` `245,486` `3,063,366` `-` `-` `(` `1,405,152 )` `-` `20,740` `7,754` `-` `-` `(` `161 )` `$` `39,489,824` `$` `39,489,824` `2,918,705` `1,086,128` `4,004,833` `-` `-` `(` `1,077,283 )` `-` `10,784` `87,108` `-` `-` `-` `196,628` `1,100` `$` `42,712,994`

The accompanying notes are an integral part of these parent company only financial statements.

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MiTAC HOLDINGS CORPORATION

PARENT COMPANY ONLY STATEMENTS OF CASH FLOWS

FOR THE 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)
Depreciation

Interest income

Interest expense
Dividend income

Share of profit of associates accounted for using
equity method

Changes in operating assets and liabilities
Changes in operating assets
Other receivables - related parties
Prepayments
Changes in operating liabilities
Other payables
Other payables - related parties
Other current liabilities
Cash outflow generated from operations
Payment of interest
Receipt of interest
Cash dividend received

Payment of income tax
Net cash flows from operating activities
CASH FLOWS FROM INVESTING ACTIVITIES
Loans lent to related parties

Loans repaid from related parties

Acquisition of financial assets at fair value through other
comprehensive income
Proceeds from disposal of financial assets at fair value
through other comprehensive income
Acquisition of investments accounted for using equity
method

Proceeds from disposal of investments accounted for
using equity method
Increase in refundable deposits
Net cash flows (used in) from investing activities
CASH FLOWS FROM FINANCING ACTIVITIES
(Decrease)increase in short-term borrowings

Increase in loans from related parties

Repayment of loans to related parties

Cash dividends paid

Net cash flows from (used in) financing activities
Net decrease 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
$
2,929,268 $
2,840,318
6(4)(11)
796
796
6(10)
(
3,487 ) (
14,812 )
8,702
2,084
6(2)
(
10,021 ) (
7,845 )
6(3)
(
2,958,015 ) (
2,853,652 )
3,918
54,381
48 (
63 )
1,082
406
- (
41,889 )
(
90 )
-
(
27,799 ) (
20,276 )
(
7,926 ) (
1,913 )
3,217
15,481
6(2)(3)
223,285
432,980
(
4,461 ) (
14,322 )
186,316
411,950
7
(
2,647,786 ) (
2,787,274 )
7
1,281,600
3,186,569
(
20,071 ) (
49,900 )
2,976
-
6(3)
- (
46,500 )
-
16
- (
6 )
(
1,383,281 )
302,905
6(15)
(
900,000 )
1,000,000
6(15) and 7
4,677,786
2,437,374
6(15) and 7
(
1,531,600 ) (
2,836,669 )
6(8)
(
1,077,283 ) (
1,405,152 )
1,168,903 (
804,447 )
(
28,062 ) (
89,592 )
6(1)
56,403
145,995
6(1)
$
28,341 $
56,403

The accompanying notes are an integral part of these parent company only financial statements.

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MiTAC HOLDINGS CORPORATION

NOTES TO THE PARENT COMPANY ONLY 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 is investment holding.
(2) The Company in order to promote specialization of work for transforming and improving overall competitiveness, 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 PARENT COMPANY ONLY

FINANCIAL STATEMENTS AND PROCEDURES FOR AUTHORISATION

These parent company only financial statements were authorised for issuance by the Board of Directors on March 8, 2021.
APPLICATION OF NEW STANDARDS, AMENDMENTS AND INTERPRETATION
(1) Effect of the adoption of new issuances of or amendments to International Financial Reporting
Standards (“IFRSs”) as endorsed by the Financial Supervisory Commission (“FSC”) New standards, interpretations and amendments endorsed by the FSC effective from 2020 are as follows:

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New Standards,Interpretations and Amendments	Effective date by International Accounting Standards Board
Amendments to IAS 1 and IAS 8, ‘Disclosure initiative-definition of material’ Amendments to IFRS 3, ‘Definition of a business’ Amendments to IFRS 9, IAS 39 and IFRS7 ,‘Interest rate benchmark reform’ Amendment to IFRS 16, ‘Covid-19-related rent concessions’ Note：Earlier application from January 1, 2020 is allowed by FSC.	January 1, 2020 January 1, 2020 January 1, 2020 June 1, 2020 (Note)

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

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

the Company

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

Effect of new issuances of or amendments to IFRSs as endorsed by the the Company New standards, interpretations and amendments endorsed by the FSC follows:	FSC but not yet adopted by effective from 2021 are as
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 Company’s financial condition and financial performance based on the Company’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:

The above standards and interpretations have no significant impact to condition and financial performance based on the Company’s assessment. IFRSs issued by IASB but not yet endorsed by the FSC New standards, interpretations and amendments issued by IASB but not as endorsed by the FSC are as follows:	the Company’s financial yet included in the IFRSs
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’	January 1, 2022 To be determined by International Accounting Standards Board

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

Effective date by
International Accounting
New Standards, Interpretations and Amendments Standards Board
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New Standards, Interpretations and Amendments In	ternational Accounting Standards Board
IFRS 17, ‘Insurance contracts’	January 1, 2023
Amendments to IFRS 17, 'Insurance contracts'	January 1, 2023
Amendments to IAS 1, ‘Classification of liabilities as current or non-	January 1, 2023
current’
Amendments to IAS 1, ‘Disclosure of accounting policies’	January 1, 2023
Amendments to IAS 8, ‘Definition of accounting estimates’	January 1, 2023
Amendments to IAS 16, ‘Property, plant and equipment:proceeds before	January 1, 2022
intended use’
Amendments to IAS 37, ‘Onerous contracts—cost of fulfilling a contract	January 1, 2022
Annual improvements to IFRS Standards 2018–2020	January 1, 2022

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

4. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

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

(1) Compliance statement

The parent company only financial statements have been prepared in accordance with the “Regulations Governing the Preparation of Financial Reports by Securities Issuers”.

(2) Basis of preparation

A. Except for the following items, this parent company only financial statements have been prepared under the historical cost convention:

Financial assets at fair value through other comprehensive income.

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 Company’s accounting policies. The areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates are significant to the parent company only financial statements are disclosed in Note 5.

(3) Foreign currency translation

Items included in the financial statements of each of the Company’s entities are measured using the currency of the primary economic environment in which the entity operates (the “functional currency”). The parent company only financial statements are presented in New Taiwan Dollars, which is the Company’s functional currency.

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

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exchange gains and losses resulting from the settlement of such transactions are recognized in profit or loss in the period in which they arise.

B. Monetary assets and liabilities denominated in foreign currencies at the period end are retranslated at the exchange rates prevailing at the balance sheet date. Exchange differences arising upon re-translation at the balance sheet date are recognized in profit or loss.
C. Non-monetary assets and liabilities denominated in foreign currencies held at fair value through profit or loss are re-translated at the exchange rates prevailing at the balance sheet date; their translation differences are recognized in profit or loss. Non-monetary assets and liabilities denominated in foreign currencies held at fair value through other comprehensive income are retranslated at the exchange rates prevailing at the balance sheet date; their translation differences are recognized in other comprehensive income. However, non-monetary 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.
(4) 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 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.

(5) 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.

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(6) 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 Company 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 Company’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 Company measures the financial assets at fair value plus transaction costs. The Company 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 Company and the amount of the dividend can be measured reliably.
(7) Impairment of financial assets
For debt instruments measured at fair value through other comprehensive income and financial assets at amortised 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 Company 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 Company recognises the impairment provision for lifetime ECLs.
(8) Derecognition of financial assets
The Company derecognizes a financial asset when the contractual rights to receive the cash flows from the financial asset expire.

The Company derecognizes 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 Company 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 Company has not retained control of the financial asset.

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(9) Investments accounted for using equity method / subsidiary/ associates

A. A subsidiary is an entity where the Company has the right to dominate its finance and operating policies (including special purpose entities), normally the Company owns more than 50% of the voting rights directly or indirectly in that entity. Subsidiaries are accounted for under the equity method in the Company's parent company only financial statements.
B. Unrealized gains or losses resulting from inter-company transactions with subsidiaries are eliminated. Necessary adjustments are made to the accounting policies of subsidiaries, to be consistent with the accounting policies of the Company.
C. After acquisition of subsidiaries, the Company recognizes proportionately the share of profit and loss and other comprehensive income in the statement of comprehensive income as part of the Company's profit and loss and other comprehensive income, respectively. When the share of loss from a subsidiary exceeds the carrying amount of Company’s interest in that subsidiary, the Company continues to recognize its share in the subsidiary's loss proportionately.
D. According to “Regulations Governing the Preparation of Financial Statements by Securities Issuers”, “Profit for the year” and “Other comprehensive income for the year” reported in an entity's parent company only statement of comprehensive income, shall equal to “profit for the year” and “Other comprehensive income” attributable to owners of the parent reported in that entity's consolidated statement of comprehensive income. Total equity reported in an entity's parent company only financial statements, shall be equal to equity attributable to owners of parent reported in that entity's consolidated financial statements.
E. Associates are all entities over which the Company 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 recognized at cost.
F. The Company’s share of its associates’ post-acquisition profits or losses is recognized in profit or loss, and its share of post-acquisition movements in other comprehensive income is recognized in other comprehensive income. When the Company’s share of losses in an associate equals or exceeds its interest in the associate, including any other unsecured receivables, the Company does not recognize further losses, unless it has incurred legal or constructive obligations or made payments on behalf of the associate.
G. 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 Company’s ownership percentage of the associate, the Company recognizes change in ownership interests in the associate in ‘capital surplus’ in proportion to its ownership.
H. Unrealized gains on transactions between the Company and its associates are eliminated to the extent of the Company’s interest in the associates. Unrealized 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

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by the Company.

I. In the case that an associate issues new shares and the Company does not subscribe or acquire new shares proportionately, which results in a change in the Company’s ownership percentage of the associate but maintains significant influence on the associate, then ‘capital surplus’ and ‘investments accounted for under the equity method’ shall be adjusted for the increase or decrease. If the above condition causes a decrease in the Company’s ownership percentage of the associate, in addition to the above adjustment, the amounts previously recognized 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.
J. When the Company disposes its investment in an associate and loses significant influence over this associate, the amounts previously recognized 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 recognized in other comprehensive income in relation to the associate are reclassified to profit or loss proportionately in accordance with the aforementioned approach.
K. When the Company disposes its investment in an associate and loses significant influence over this associate, the amounts previously recognized 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 recognized as capital surplus in relation to the associate are transferred to profit or loss proportionately.
(10) Property, plant and equipment
A. Property, plant and equipment are initially recorded at cost. Borrowing costs incurred during the construction period are capitalized.
B. Subsequent costs are included in the asset’s carrying amount or recognized as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the Company and the cost of the item can be measured reliably. The carrying amount of discarded assets is derecognized when critical repairs are incurred, and other repair expenses are charged to profit or loss for the period when they incur.
C. 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 transportation equipment

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are 5 years.

(11) Impairment of non-financial assets

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

(12) Derecognition of financial liabilities

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

(13) 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 amortised 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.

(14) 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 recognized amounts and there is an intention to settle on a net basis or realize the asset and settle the liability simultaneously.

(15) Employee benefits

A. Short-term employee benefits
Short-term employee benefits are measured at the undiscounted amount of the benefits expected to be paid in respect of service rendered by employees in a period and should be recognized as expense in that period when the employees render service.
B. Employees’ compensation and directors’ and supervisors’ remuneration
Employees’ compensation and directors’ and supervisors’ remuneration are recognized 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 Company calculates the numbers of shares based on the closing price at the previous day of the board meeting resolution.

(16) Income tax

A. The tax expense for the period comprises current and deferred tax. Tax is recognized in profit or loss, except to the extent that it relates to items recognized in other comprehensive income

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or items recognized 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 recognized, using the balance sheet liability method, on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the parent company only 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 entity 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 Company 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 realised or the deferred income tax liability is settled.
D. Deferred tax assets are recognized only to the extent that it is probable that future taxable profit will be available against which the temporary differences can be utilized. At each balance sheet date, unrecognized and recognized deferred tax assets are reassessed.
E. Current income tax assets and liabilities are offset and the net amount reported in the balance sheet when there is a legally enforceable right to offset the recognized amounts and there is an intention to settle on a net basis or realize the asset and settle the liability simultaneously. Deferred 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.
(17) 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.

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(18) 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.

(19) Business combinations and organization restructuring

A. The Company 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 acquisition-related 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 non-controlling 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 Company’s identifiable assets acquired and obligations borne, goodwill is recognized at the acquisition-date. If the fair value of the Company’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 recognized 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.

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

The preparation of these financial statements requires management to make critical judgements in applying the Company’s accounting policies and make critical assumptions and estimates concerning future events. Assumptions and estimates may differ from the actual results and are continually evaluated and adjusted based on historical experience and other factors. The judgment and assumptions made by the Company in applying its accounting policies and concerning future events do not involve significant risk of causing material adjustment to the carrying amounts of assets and liabilities within the next financial year. The Company has no uncertainty on critical judgements, estimates and assumptions of accounting policies.

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6. DETAILS OF SIGNIFICANT ACCOUNTS

(1) Cash and cash equivalents

Cash and cash equivalents: Checking accounts and demand deposits Repurchased bonds Total	December 31,2020 28,341 $ - 28,341 $	December 31,2019
		11,403 $ 45,000
		56,403 $

A. The Company 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 Company has no cash and cash equivalents pledged to others.

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

Items		31,2020		31,2019
Non-current items:
Equity instruments
Listed stocks	$	134,657	$	134,657
Unlisted stocks		382,292		369,722
Subtotal		516,949		504,379
Valuation adjustment	(	124,111)	(	153,715)
Total	$	392,838	$	350,664

A. The Company recognized $26,206 and ($128,931) in other comprehensive income (loss) for fair value change for the years ended December 31, 2020 and 2019, respectively.
B. The Company 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 were $392,838 and $350,664, respectively.
C. The Company received dividend income of $10,021 and $7,845 for the years ended December 31, 2020 and 2019, respectively.
D. The Company sold $20,071 of its investments at fair value and resulted in cumulative losses on disposal of $3,397 during the year ended December 31, 2020.

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(3) Investments accounted for under the equity method

Investments accounted for under the equity method
A. Investee company Subsidiaries Mitac International Corporation Mitac Computing Technology Corporation Mitac Digital Technology Corporation Associates Infopower Technologies Ltd.	December 31,2020 38,764,957 $ 3,741,073 1,643,435 70,278 44,219,743 $	December 31,2019
		34,512,842 $ 3,758,629 1,773,539 74,439
		40,119,449 $

B. The Company’s recognized share of profit from associates accounted for under the equity method for the years ended December 31, 2020 and 2019 were $2,958,015 and $2,853,652, respectively, and recognized share of other comprehensive income(loss) from associates accounted for under the equity method were $1,059,922 and $374,417, respectively.
C. The Company received the stock dividends from MiTAC International Corp. for the years ended December 31, 2020 and 2019 amounting to $2,349,919 and $2,919,947, respectively.
D. The Company received the cash dividends from MiTAC Computing Technology Corp. for the years ended December 31, 2020 and 2019 amounting to $59,882 and $275,472, respectively.
E. The Company received the cash dividends from MiTAC Digital Technology Corp. for the years ended December 31, 2020 and 2019 amounting to $153,382 and $149,663, respectively.
F. For the year ended December 31, 2019, the Company increased its investment in MiTAC Digital Technology in the amount of $46,500, equivalent to 3,000 thousand shares. Additionally, the Company sold 1,000 shares to Tsu Fung Investment Corporation at the price of $16 in 2019.
G. For the information on subsidiaries of the Company, please refer to Note 4(3) in the consolidated financial statements for the year ended December 31, 2020.
H. The carrying amount of the Company’s interests in all individually immaterial associates and the Company’s share of the operating results are summarized below:
As of December 31, 2020 and 2019, the carrying amount of the Company’s individually immaterial associates amounted to $70,278 and $74,439, respectively.

		For the year ended		For the year ended
	December 31,2020		December 31,2019
Loss for the period from continuing
operations	($	3,792)	($	15,206)
Total comprehensive loss	($	3,792)	($	15,206)

I. The financial year-end date of Infopower Technologies Ltd. is March 31. However, the preparation of the Company’s parent company only financial statements is based the financial information of Infopower Technologies Ltd. during the period from January 1 to December 31.

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(4) Property, plant and equipment

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For the year ended For the year ended
Transportation equipment December 31, 2020 December 31, 2019
Opening net book amount as at January 1 $ 3,184 $ 3,980
Depreciation ( 796) ( 796)
Closing net book amount as at December 31 $ 2,388 $ 3,184
At December 31
Cost $ 3,980 $ 3,980
Accumulated depreciation ( 1,592) ( 796)
Total $ 2,388 $ 3,184
Short-term borrowings-term borrowingsterm borrowings
Type of borrowings December 31, 2020 December 31, 2019
Unsecured bank borrowings $ 100,000 $ 1,000,000
Borrowing interest rate 0.63% 0.78%
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(5) Short-term borrowings-term borrowingsterm borrowings

Interest expense recognised in profit or loss amounted to $3,922 and $2,084 for the years ended December 31, 2020 and 2019, respectively.

(6) 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 per share.

Movements in the number of the Company’s ordinary shares outstanding are as follows:

Unit: in thousands of shares

Unit: in thousands of shares
		2020		2019
Outstanding shares as of January 1		1,061,382		922,941
Disposal of the Company’s treasury share by		5,816		-
subsidiaries
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

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	Reason for reacquisition Stock conversion "	December	31,2020
		Number of shares (shares in thousands) 9,250 2,128	Carrying amount
			162,874 $ 77,002

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		December	31,	2019
Name of company	Reason for	Number of shares		Carrying
holdingthe shares	reacquisition	(shares in thousands)		amount
Subsidiary - Tsu Fung Investment Corp.	Stock conversion	14,000	$	276,085
Subsidiary - SSDL	"	1,900		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 Financial Supervisory Commission, Securities and Futures Bureau, No.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 of $196,628.

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(7) Capital surplus

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 transactions 362,997 $ 83,417 10,784 - - 457,198 $	Net equity of associates and joint ventures accounted for under the 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 Change 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 transactions 342,257 $ - 20,740 - 362,997 $	Net equity of associates and joint ventures accounted for under the 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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(8) 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.
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.
C. 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 was as follows:

by the shareholders was as follows:
		For theyear 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:

by the Board of Directors and to be approved by	the shareholders is as follows:	the shareholders is as follows:
Legal reserve Cash dividend Total	For the year ended December 31, 2020
	Amount 293,325 $ 1,206,557 1,499,882 $	Dividend per share (in dollars) 1.0 $
		1.0 $

(9) Other equity items

Other equity items
				2020
		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
- Subsidiaries and Associates		-		6,674		6,674
Reclassified to retained earnings
upon disposal
- The Company		3,397		-		3,397
- Subsidiaries and Associates	(	17,720)		-	(	17,720)
Revaluation- The Company		26,206		-		26,206
Revaluation-
Subsidiaries and Associates		1,781,423		-		1,781,423
Currency translation differences -
Subsidiaries and Associates		-	(	728,396)	(	728,396)
At December 31	$	3,546,733	($	1,803,450)	$	1,743,283

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2019

					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
- Subsidiaries and Associates			-		5,444						5,444
Reclassified to retained earnings
upon disposal
- Subsidiaries and Associates	(	44,305)					-		(	44,305)
Adjustment on the decrease of
shareholding ratio to
subsidiaries			-	(		770)			(		770)
Revaluation- The Company	(	128,931)					-		(	128,931)
Revaluation-
Subsidiaries and Associates		1,414,775					-			1,414,775
Currency translation differences -
Subsidiaries and Associates			-	(	1,023,426)				(	1,023,426)
At December 31	$	1,753,427		($	1,081,728)				$	671,699
(10)Interest income
			For the year ended					For the year ended
			December31,2020					December31,			2019
Interest income from bank deposits					75						765
Interest income from loan to related parties					3,412					14,047
Total			$		3,487		$			14,812
(11)Expenses by nature
			For	the year ended				For the year ended
			December 31,2020					December 31,			2019
Employee benefit expense			$		10,149		$				9,727
Depreciation					796						796
Total			$		10,945		$			10,523
(12)Employee benefit expense
			For	the year ended				For the year ended
			December 31,2020				December 31,2019
Wage and salaries			$		4,149		$				4,027
Directors’ remuneration					6,000						5,700
		$			10,149		$				9,727

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

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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 and supervisors. If a company has an accumulated deficit, earnings should be reserved to cover losses. Employees’ compensation can be distributed in cash or shares and shall be distributed to the employees of subsidiaries of the Company who meet certain specific requirements. The chairman of the Board is authorized 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’ and supervisors’ remuneration. Directors’ and supervisors’ remuneration were accrued under 1% of gain on pre-tax profit before deduction of employees’ compensation and directors’ and supervisors’ remuneration.
C. For the years ended December 31, 2020 and 2019, employees’ compensation was accrued at $2,937 and $2,859, respectively; and directors’ and supervisors’ remuneration was accrued at $5,000 and $4,800, respectively. The aforementioned amounts were recognized 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 recognized in the 2020 and 2019 parent company only financial statements.
D. Information about employees’ compensation and directors’ and supervisors’ 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.

(13) Income tax

A. Components of income tax expense:

Stock Exchange. me tax omponents of income tax expense:
Current tax: Current tax on profits for the year Tax on undistributed surplus earnings Prior year income tax underestimation Income tax expense	For the year ended December31,2020 441 $ 9,901 221 10,563 $	For the year ended December31,2019
		2,580 $ 19,858 -
		22,438 $

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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	$	585,854	$	568,064
Tax effects from expense disallowed by
tax regulation		59		59
Tax exempt income by tax regulation	(	585,472)	(	565,543)
Prior year income tax underestimation		221		-
Tax on undistributed earnings		9,901		19,858
Income tax expense	$	10,563	$	22,438

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

(14) Earnings per share

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For the year 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 $ 2,918,705 1,193,649 $ 2.45
Diluted earnings per share
Profit attributable to ordinary shareholders $ 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
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For the year ended December 31, 2019
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 $ 2,817,880 1,188,748 $ 2.37
Diluted earnings per share
Profit attributable to ordinary shareholders $ 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
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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.

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

(15) Changes in liabilities from financing activities

						Loan from	Liabilities from financing	Liabilities from financing
		Current	borrowings		relatedparties			activities-gross
At January 1, 2020	$		1,000,000	$		-	$	1,000,000
Changes in cash flow from
financing activities	(		900,000)			3,146,186		2,246,186
At December 31, 2020	$		100,000	$		3,146,186	$	3,246,186
						Loan from	Liabilities from financing
		Current	borrowings		relatedparties			activities-gross
At January 1, 2019	$		-	$		399,295	$	399,295
Changes in cash flow from
financing activities			1,000,000	(		399,295)		600,705
At December 31, 2019	$		1,000,000	$		-	$	1,000,000

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7. RELATED PARTY TRANSACTIONS

(1) Names of related parties and relationship

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Names of related parties Relationship with the Company
----- End of picture text -----

Names of relatedparties	Relationship with the Company
Mitac International Corporation	Subsidiary
Mitac Computing Technology Corporation	Subsidiary
Mitac Digital Technology Corporation	Subsidiary
Tsu Fung Investment Corporation	Subsidiary
Silver Star Development Ltd. and subsidiaries	Subsidiary
Mitac Technology UK, Ltd. and subsidiary	Subsidiary
Lien Hwa Industrial Corp. and subsidiaries	Common Chairman

(2) Significant related party transactions and balances

A. Receivables from related parties:

nificant related party transactions and balances Receivables from related parties:
Subsidiary - Mitac Computing Technology Corp. Other subsidiaries Total Other receivables (excluding loans to subsidiaries):	December31,2020 169,525 $ 97,164 266,689 $	December31,2019
		109,176 $ 72,121
		181,297 $

Other receivables are mainly about tax paid on behalf of subsidiaries under consolidated tax return.

B. Payables to related parties:

Payables to related parties:
	December 31,2020		December 31,2019
Other payables
(excluding loan from subsidiary):
Subsidiaries	$	52,643	$	13,826
Other payables are mainly about tax refund received on behalf of subsidiaries under consolidated
tax return.

C. Property transactions

Disposal of financial assets

For the year ended December 31, 2020: None.

tax return. Property transactions Disposal of financial assets For the year ended December 31, 2020: None.
Account No. of shares Target Subsidiary - Tsu Fung Investment Corp. Investments accounted for using equity method 1,000 shares MiTAC Digital Technology Corp.	December 31,2019 For the year ended
	Disposal proceeds `16` `$`	Gains (losses) on disposal
		`$-`

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－
D. Leasing arrangements lessee
(a) For the years ended December 31, 2020 and 2019, the Company leased offices from a subsidiary, Mitac International Corp. The lease terms are 5 years.
(b) Rent expense

Rent expense
	For the year ended		For the year ended
	December 31,2020		December 31, 2019
Subsidiaries	`$`	`23`	`22` `$`

E. Loans to /from related parties:
(c) Loans to related parties:
- i. Outstanding balance:

s to /from related parties: Loans to related parties: . Outstanding balance:
.As of December 31, 2019 : None i. Interest income Subsidiary - Mitac Computing Technology Corp. Other subsidiaries Total Subsidiary - Mitac Computing Technology Corp. Other subsidiaries Total	Balance Expiry Date 1,355,648 $ 2021/3/8 10,538 2021/8/5 1,366,186 $ December 31,2020 For the year ended For the year ended December 31, 2020 December 31,2019 3,401 $ 12,715 $ 11 1,332 3,412 $ 14,047 $

		12,715 $ 1,332
		14,047 $

i.As of December 31, 2019 : None
ii. Interest income

The loans to subsidiaries are with a credit term of 1 year and carry interest at 0.22%-1.33% and 0.9800%-2.720% per annum for the years ended December 31, 2020 and 2019, respectively. The amounts of loan to and repayment from related parties were $2,647,786 and $1,281,600, respectively, for the year ended December 31, 2020. The amounts of loan to and repayment from to related parties were $2,787,274 and $3,186,569, respectively, for the year ended December 31, 2019.

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(d)Loans from related parties:

A. Outstanding balance:

As of December 31, 2019: None. Subsidiary - Mitac Computing Technology Corp. Subsidiary - Mitac Digital Technology Corp. Subsidiary - Silver Star Development Ltd. And subsidiaries Other subsidiaries Total	Balance ExpiryDate 1,120,000 $ 2021/8/9 600,000 2021/6/23 1,366,186 2021/7/30 60,000 2021/6/23 3,146,186 $ December 31,2020

B. Interest expense

As of December 31, 2019: None. . Interest expense
As of December 31, 2019: None. Subsidiary - Mitac Computing Technology Corp. Subsidiary - Mitac Digital Technology Corp. Other subsidiaries Total	For the year ended December 31, 2020
	2,781 $ 1,676 323
	4,780 $

The loans from subsidiaries are with a credit term of 1 year and carry interest at 0% -0.6293% and 0% per annum for the years ended December 31, 2020 and 2019, respectively. The amounts of loan from and repayment to related parties were $4,677,786 and $1,531,600, respectively, for the year ended December 31, 2020. The amounts of loan from and repayment to related parties were $2,437,374 and $2,836,669, respectively, for the year ended December 31, 2019.

F. Endorsements and guarantees provided to related parties:

Subsidiary - Mitac Computing Technology Corp. Subsidiary - Mitac Technology UK, Ltd. Subsidiary - Others Total	December 31,2020 663,584 $ 199,360 4,028 866,972 $	December 31,2019
		516,495 $ 830,205 4,144
		1,350,844 $

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G. Expenses:

Expenses:
Subsidiary - Mitac International Corp. Other related parties Total	For the year ended December 31,2020 12,400 $ 2,176 14,576 $	For the year ended December 31,2019
		12,400 $ 1,736
		14,136 $

Expenses mainly pertain to services and other miscellaneous expenses.

(3) Key management compensation

Salaries and other short-term employee benefits	For the year ended For the year ended December 31,2020 December 31, 2019 8,784 $ 8,268 $

8. PLEDGED ASSETS

None.

9. SIGNIFICANT CONTINGENT LIABILITIES AND UNRECOGNIZED CONTRACT

COMMITMENTS

(1) Contingencies

None.

(2) Commitments

None.

10. SIGNIFICANT DISASTER LOSS:

None.

11. SIGNIFICANT EVENTS AFTER THE BALANCE SHEET DATE:

None.

12. OTHERS

(1) Capital management

The Company’s objectives when managing capital are to safeguard the Company’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.

(2) Financial instruments

A. Financial instruments by category

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December 31, 2020 December 31, 2019

	December 31,2020	December 31,2019
Financial assets Financial assets at fair value through other comprehensive income Designation of equity instruments Financial assets at amortised cost/Loans and receivables Cash and cash equivalents Other receivables Other receivables - related parties Refundable deposits Financial liabilities Financial liabilities at amortised cost Current borrowings Other accounts payable Other accounts payable - related parties	392,838 $ 28,341 $ 1,127 1,632,875 106 1,662,449 $ 100,000 $ 10,487 3,198,829 3,309,316 $	350,664 $ 56,403 $ 4 181,297 106
		237,810 $
		1,000,000 $ 9,538 13,826
		1,023,364 $

B. Financial risk management policies

The Company’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 Company’s overall risk management programme focuses on the unpredictability of financial markets and seeks to minimize potential adverse effects on the Company’s financial position and financial performance.

C. Significant financial risks and degrees of financial risks
(a) Market risk

Price risk

i. The Company’s equity securities, which are exposed to price risk, are financial assets at fair value through other comprehensive income. To manage its price risk arising from investments in equity securities, the Company diversifies its portfolio and controls the risk.
ii. The Company’s investments in equity securities comprise domestic listed and unlisted stocks. 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, other components of equity would have increased/decreased by $3,928 and $3,507 for the years ended December 31, 2020 and 2019, respectively, as a result of gains/losses on equity securities classified as at fair value through other comprehensive income.

Cash flow and fair value interest rate risk

The Company’s main interest rate risk arises from borrowings. However, the Company’s

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borrowings were stated at fixed interest rate, thus the interest rate has no significant impact to the Company.

(b) Credit risk
i. Credit risk refers to the risk of financial loss to the Company 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. For banks and financial institutions, only the institutions with good credit quality are aaccepted as counterparties.
(c) Liquidity risk
i. Cash flow forecasting is performed in the operating entities of the Company and aggregated by Company treasury. Group treasury monitors rolling forecasts of the Company’s liquidity requirements to ensure it has sufficient cash to meet operational needs.
ii. The table below analyses the Company’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:

December 31,2020 Current borrowings Other payables December 31,2019 Current borrowings Other payables	Less than 1 year 100,115 $ 3,209,316 Less than 1year 1,000,470 $ 23,364	Between 1 and 2years - $ - Between 1 and 2years - $ -	Between 2 and 3years - $ - Between 2 and 3years - $ -	Over 3years
				- $ - Over 3years
				- $ -

(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. Financial instruments not measured at fair value

The carrying amounts of cash and cash equivalents, other receivables, guarantee deposits paid,

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short-term borrowings and other payables are approximate to their fair values.

C. 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 at December 31, 2020 and 2019 is as follows:
(a) The related information of natures of the assets and liabilities is as follows:

December 31, 2020 Recurring fair value measurements Equity securities December 31, 2019 Recurring fair value measurements Equity securities	Level 1 145,875 $ Level 1 116,389 $	Level 2 131,173 $ Level 2 137,317 $	Level 3 115,790 $ Level 3 96,958 $	Total
				392,838 $
				Total
				350,664 $

(b) The methods and assumptions the Company used to measure fair value are as follows:
i. The instruments the Company used market quoted prices as their fair values (that is, Level
- 1) are listed below by characteristics:

Listed shares

Market quoted price Closing price

ii. Except for financial instruments with active markets, the fair value of other financial instruments is measured by using valuation techniques or by reference to counterparty quotes.
iii. When assessing non-standard and low-complexity financial instruments, the Company 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 output of valuation model is an estimated value and the valuation technique may not be able to capture all relevant factors of the Company’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 Company’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 parent company only balance sheet. The inputs and pricing information used during valuation are carefully assessed and adjusted based on current market conditions.
v. The Company 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 Company’s credit quality.
D. For the years ended December 31, 2020 and 2019, there was no transfer between Level 1 and Level 2.

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E. The following table presents the changes in level 3 instruments as at December 31, 2020 and 2019:

		Equity	securities
		2020		2019
January 1	$	96,958	$	49,403
Current purchase		17,095		49,900
Gains (losses) recognized in other
comprehensive income		1,737	(	2,345)
December 31	$	115,790	$	96,958

F. 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.
G. 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 equityinstrument: Unlisted shares Non-derivative equityinstrument: Unlisted shares	Fair value at December31,2020 $ 115,790 Fair value at December31,2019 $ 96,958	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) - Range (weighted average)	Relationship of inputs to fairvalue
					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.

H. The Company 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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----- Start of picture text -----

December 31, 2020
Recognized in other
Recognized in profit or loss comprehensive income
Favourable Unfavourable Favourable Unfavourable
Financial assets Input Change change change change change
Equity instrument Net asset ±1% $ - $ - $ 1,158 $ 1,158
value
December 31, 2019
Recognized in other
Recognized in profit or loss comprehensive income
Favourable Unfavourable Favourable Unfavourable
Financial assets Input Change change change change change
Equity instrument Net asset ±1% $ - $ - $ 970 $ 970
value
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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.
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.

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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`）`
													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`）`
													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
		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

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

For the year ended December 31, 2020

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
						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	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

MiTAC HOLDINGS CORPORATION STATEMENT OF CASH AND CASH EQUIVALENTS DECEMBER 31, 2020

(Expressed in thousands of New Taiwan dollars)

Statement 1 Item Summary Amount Cash Bank seposits Checking accounts $ 91 Demand deposits 28,250 $ 28,341

Statement 1,Page1

MiTAC HOLDINGS CORPORATION

MOVEMENT SUMMARY OF INVESTMENTS ACCOUNTED FOR USING EQUITY METHOD FOR THE YEAR ENDED DECEMBER 31, 2020

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

Statement 2

Name	Number of shares Amounts 1,987,021 34,512,842 $ 232,757 3,758,629 103,099 1,773,539 6,774 74,439 40,119,449 $ Openingbalance	Number of shares (thousands) Amounts (Note) Additions(Reduction)	Number of shares (thousands) Amounts (Note) Additions(Reduction)	Gain (loss) on investments	Number of shares (thousands)	Ownership % Amounts 100% 38,764,957 $ 100% 3,741,073 97.17% 1,643,435 33.33% 70,278 44,219,743 $ Endingbalance	Price (dollars) Totalprice 17.45 38,764,957 $ 16.07 3,741,073 15.94 1,643,435 10.37 70,278 44,219,743 $ Marketprice or valueper share	Pledged to others as collateral
						Ownership % 100% 100% 97.17% 33.33%
MiTAC International Corporation MiTAC Computing Technology Corporation MiTAC Digital Technology Corporation Infopower Technologies Ltd.		234,992 - - -	1,449,538 $ 140,790) ( 163,799) ( 2,670) ( 1,142,279 $	2,802,577 $ 123,234 33,695 1,491) ( 2,958,015 $	2,222,013 232,757 103,099 6,774			None None None None

Note: The additions or reduction was mainly due to the investees’ adjustments of cash dividend distributed, unrealised gains (losses) from financial assets measured at fair value through other comprehensive income and financial statements translation differences of foreign operations.

Statement 2,Page1

MiTAC HOLDINGS CORPORATION

SUMMARY STATEMENT OF CURRENT PERIOD EMPLOYEE BENEFITS, DEPRECIATION, AND AMORTIZATION EXPENSES BY FUNCTION FOR THE YEAR ENDED DECEMBER 31, 2020

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

Statement 3

Statement 3
Nature Function	Year ended December 31,2020			Year ended December 31,2019
	Operating Costs	Operating Expenses	Total	Operating Costs	Operating Expenses	Total
Employee Benefit Expense
Wages and salaries	-	4,149	4,149	-	4,027	4,027
Labour and health insurance fees	-	-	-	-	-	-
Pension costs	-	-	-	-	-	-
Directors' remuneration	-	6,000	6,000	-	5,700	5,700
Other employee benefit expense	-	-	-	-	-	-
Depreciation Expense	-	796	796	-	796	796
Depletion expense	-	-	-	-	-	-
Amortisation Expense	-	-	-	-	-	-

Note:

As at December 31, 2020 and 2019, the Company had 13 and 13 employees, including 8 and 8 non-employee directors, respectively.
2.A company whose stock is listed for trading on the stock exchange or over-the-counter securities exchange shall additionally disclose the following information ：
(1) Average employee benefit expense in current year $830 (in thousands)
Average employee benefit expense in previous year $805 (in thousands)
(2) Average employees salaries in current year $830 (in thousands)
Average employees salaries in previous year $805 (in thousands)

Statement 3,Page1

MiTAC HOLDINGS CORPORATION

SUMMARY STATEMENT OF CURRENT PERIOD EMPLOYEE BENEFITS, DEPRECIATION, AND AMORTIZATION EXPENSES BY FUNCTION (Cont.) FOR THE YEAR ENDED DECEMBER 31, 2020

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

Statement 3

(3) Adjustments of average employees salaries 3.11%
(4) Supervisors’ remuneration for the years ended December 31, 2020 and 2019 was $0 thousand and $48 thousand, respectively.
(5) The compensation policy of the Company (including directors, supervisors, managers and employees) is as follows:
A. Directors
According to the Article 23 in the Company’s Articles of Incorporation, the profit (pre-tax profit before deduction of employees’ compensation and directors’ remuneration) of the current year shall be distributed as directors’ remuneration, which will be resolved by the Board of Directors, in the ratio no higher than 1%. If a company has an accumulated deficit, earnings should be reserved to cover losses.

B. Managers and employees

Fixed salary (monthly): It is determined by reference to the general pay levels of the industry and the position and
responsibility of the internal managers and employees to achieve appropriate external competitiveness and internal balance.
Short-term incentive (bonus): It includes performance bonus and profit sharing, and is determined by the company and its
team’s operating performance and individual performance to make a strong connection between short-term incentive and performance.
Long-term incentive (employee stock options and treasury shares): It is determined by considering segment operating
performance and individual performance. In addition to retain key talents, it is also linked to future risks to promote the longterm development of the Company.
Benefits: It provides convenience and security for managers and employees.

Statement 3,Page2

AI assistant

MHC — Audit Report / Information 2020

52372_rns_2020-11-16_d576c827-7727-4a5e-96b2-bc4240d5b181.pdf

MiTAC HOLDINGS CORPORATION

PARENT COMPANY ONLY FINANCIAL

STATEMENTS AND INDEPENDENT AUDITORS’

INDEPENDENT AUDITORS’ REPORT

Opinion

Basis for opinion

sufficient and appropriate to provide a basis for our opinion.

Key audit matters

Sales revenue recognition

Description

How our audit addressed the matter

Valuation of inventory

Description

How our audit addressed the matter

Other matter- Reference to the reports of other independent auditors

Responsibilities of management and those charged with governance for the parent company only financial statements

Auditors’ responsibilities for the audit of the parent company only financial statements

2.

3.

4.

5.

6.

For and on behalf of PricewaterhouseCoopers, Taiwan

March 8, 2021

MiTAC HOLDINGS CORPORATION PARENT COMPANY ONLY BALANCE SHEETS DECEMBER 31, 2020 AND 2019

MiTAC HOLDINGS CORPORATION PARENT COMPANY ONLY BALANCE SHEETS DECEMBER 31, 2020 AND 2019

MiTAC HOLDINGS CORPORATION

PARENT COMPANY ONLY STATEMENTS OF COMPREHENSIVE INCOME FOR THE YEARS ENDED DECEMBER 31, 2020 AND 2019

MiTAC HOLDINGS CORPORATION

PARENT COMPANY ONLY STATEMENTS OF CHANGES IN EQUITY FOR THE YEARS ENDED DECEMBER 31, 2020 AND 2019

MiTAC HOLDINGS CORPORATION

PARENT COMPANY ONLY STATEMENTS OF CASH FLOWS

FOR THE YEARS ENDED DECEMBER 31, 2020 AND 2019

MiTAC HOLDINGS CORPORATION

NOTES TO THE PARENT COMPANY ONLY FINANCIAL STATEMENTS FOR THE YEARS ENDED DECEMBER 31, 2020 AND 2019

1. HISTORY AND ORGANISATION

2. THE DATE OF AUTHORISATION FOR ISSUANCE OF THE PARENT COMPANY ONLY

FINANCIAL STATEMENTS AND PROCEDURES FOR AUTHORISATION

the Company

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

4. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

(1) Compliance statement

(2) Basis of preparation

(3) Foreign currency translation

(5) Cash equivalents

are 5 years.

(11) Impairment of non-financial assets

(12) Derecognition of financial liabilities

(13) Borrowings

(14) Offsetting financial instruments

(15) Employee benefits

(16) Income tax

(18) Dividends

(19) Business combinations and organization restructuring

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

6. DETAILS OF SIGNIFICANT ACCOUNTS

(1) Cash and cash equivalents

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

(3) Investments accounted for under the equity method

(4) Property, plant and equipment

(5) Short-term borrowings-term borrowingsterm borrowings

(6) Share capital

B. Treasury shares

(7) Capital surplus

(8) Retained earnings

(9) Other equity items

(13) Income tax

B. Reconciliation between income tax expense and accounting profit

(14) Earnings per share

(15) Changes in liabilities from financing activities

7. RELATED PARTY TRANSACTIONS

(1) Names of related parties and relationship

(2) Significant related party transactions and balances

(d)Loans from related parties:

A. Outstanding balance:

B. Interest expense

G. Expenses:

MHC Audit Report / Information 2020