MIN AIK — Audit Report / Information 2021

Nov 11, 2021

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Stock Code:3060

MIN AIK TECHNOLOGY CO., LTD. AND SUBSIDIARIES

CONSOLIDATED FINANCIAL STATEMENTS

With Independent Auditors’ Report For the Years Ended December 31, 2021 and 2020

The independent auditors’ report and the accompanying consolidated financial statements are the English translation of the Chinese version prepared and used in the Republic of China. If there is any conflict between, or any difference in the interpretation of the English and Chinese language independent auditors’ report and consolidated financial statements, the Chinese version shall prevail.

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Table of contents

Contents 1. Cover Page 2. Table of Contents 3. Representation Letter 4. Independent Auditors’ Report 5. Consolidated Balance Sheets 6. Consolidated Statements of Comprehensive Income 7. Consolidated Statements of Changes in Equity 8. Consolidated Statements of Cash Flows 9. Notes to the Consolidated Financial Statements (1) Company history (2) Approval date and procedures of the consolidated financial statements (3) New standards, amendments and interpretations adopted (4) Summary of significant accounting policies (5) Significant accounting assumptions and judgments, and major sources of estimation uncertainty (6) Explanation of significant accounts (7) Related-party transactions (8) Pledged assets (9) Significant commitments and contingencies (10) Losses Due to Major Disasters (11) Subsequent Events (12) Other (13) Other disclosures (a) Information on significant transactions (b) Information on investees (c) Information on investment in mainland China (d) Major shareholders (14) Segment information

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1 2 3 4 5 6 7 8 9 9 9～10 10～24 24～25 25～53 53～56 56 56 57 57 57 57～60 61 62 62 63～65

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Representation Letter

The entities that are required to be included in the combined financial statements of MIN AIK TECHNOLOGY CO., LTD. as of and for the year ended December 31, 2021 under the Criteria Governing the Preparation of Affiliation Reports, Consolidated Business Reports, and Consolidated Financial Statements of Affiliated Enterprises are the same as those included in the consolidated financial statements prepared in conformity with International Financial Reporting Standards No. 10 by the Financial Supervisory Commission, "Consolidated Financial Statements." In addition, the information required to be disclosed in the combined financial statements is included in the consolidated financial statements. Consequently, MIN AIK TECHNOLOGY CO., LTD. and Subsidiaries do not prepare a separate set of combined financial statements.

Company name: MIN AIK TECHNOLOGY CO., LTD. Chairman: CHIA KIN HENG Date: March 17, 2022

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KPMG

台北市110615信義路5段7號68樓(台北101大樓) 電 話 Tel + 886 2 8101 6666 68F., TAIPEI 101 TOWER, No. 7, Sec. 5, 傳 真 Fax + 886 2 8101 6667 Xinyi Road, Taipei City 110615, Taiwan (R.O.C.) 網 址 Web home.kpmg/tw

Independent Auditors’ Report

To the Board of Directors of Min Aik Technology Co., Ltd.:

Opinion

We have audited the consolidated financial statements of Min Aik Technology Co., Ltd. and its subsidiaries (“ the Group” ), which comprise the consolidated balance sheets as of December 31, 2021 and 2020, the consolidated statements of comprehensive income, changes in equity and cash flows for the years ended December 31, 2021 and 2020, and notes to the consolidated financial statements, including a summary of significant accounting policies.

In our opinion, the accompanying consolidated financial statements present fairly, in all material respects, the consolidated financial position of the Group as at December 31, 2021 and 2020, and its consolidated financial performance and its consolidated cash flows for the years then ended in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and with the International Financial Reporting Standards (“IFRSs”), International Accounting Standards (“IASs”), interpretations as well as related guidance endorsed by the Financial Supervisory Commission of the Republic of China.

Basis for Opinion

We conducted our audit in accordance with the Regulations Governing Auditing and Certification of Financial Statements by Certified Public Accountants and the auditing standards generally accepted in the Republic of China. Our responsibilities under those standards are further described in the Auditors’ Responsibilities for the Audit of the Consolidated Financial Statements section of our report. We are independent of the Group in accordance with the Certified Public Accountants Code of Professional Ethics in Republic of China (“ the Code”), and we have fulfilled our other ethical responsibilities in accordance with the Code. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis of our opinion.

Key Audit Matters

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

1. Revenue recognition

Please refer to Note 4(n) “Revenue” of the consolidated financial statements, and note 6(q) “Revenue from contract with customers”.

Revenue recognition is one of the key judgmental areas for our audit, particularly in respect of the revenue are recognized based on the transaction terms with clients, also considering the large volume of transaction and comes from different operation sites.

KPMG, a Taiwan partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee.

4-1

How the matter was addressed in our audit

Our principal audit procedures included: assessing whether appropriate revenue recognition policies are applied; testing the Group’s controls surrounding revenue recognition, including corroborating the orders from clients, the proof of shipment, and receipt documents by clients; sampling the sales transaction between the reported date, exam the external document to evaluate whether the sales recognition is appropriate.

2. Evaluation of inventory

Please refer to Note 4(h) “Inventory” and Note 5(a) “Significant accounting assumptions and judgments, and major sources of estimation uncertainty” of the consolidated financial statements.

Evaluation of inventory is one of the key judgmental areas for our audit, the Group is primarily involved in the manufacture of hard disk drive components. As different series or models of electronic products are rapidly being replaced by trendy ones, it may affect the inventory of the outdated ones to be slow-moving, or worse yet, stagnation, thus, the fact may result the cost of inventory to be higher than the net realized value. The net realized value of evaluation of inventory is based on the judgement by management of the group. Therefore, this whole matter needed to be taken into serious consideration.

How the matter was addressed in our audit

Our principal audit procedures included: assessing whether appropriate inventory policies are applied through comparison with accounting standards; sampling the inventory item and comparing the aging of inventory, understanding the origin price for estimate the net realized value, evaluating either the calculation for lower of cost or net realized value is reasonable, and inspecting the inventory sales status subsequent to the reporting date.

Other Matter

The Group has additionally prepared its parent-company-only financial statement as of and for the years ended December 31, 2021 and 2020, on which we have issued an unmodified opinion.

Responsibilities of Management and Those Charged with Governance for the Consolidated Financial Statements

Management is responsible for the preparation and fair presentation of the consolidated financial statements in accordance with Regulations Governing the Preparation of Financial Reports by Securities Issuers and IFRSs, IASs, interpretation as well as related guidance endorsed by the Financial Supervisory Commission of the Republic of China, and for such internal control as management determines is necessary to enable the preparation of consolidated financial statements that are free from material misstatement, whether due to fraud or error.

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

Those charged with governance, including the Audit Committee, are responsible for overseeing the Group’s financial reporting process.

4-2

Auditor’s Responsibilities for the Audit of the Consolidated Financial Statements

Our objectives are to obtain reasonable assurance about whether the consolidated financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s 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 auditing standards generally accepted in the Republic of China will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these consolidated financial statements.

As part of an audit in accordance with auditing standards generally accepted in the Republic of China, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:

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

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

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

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

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

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

4-3

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 were of most significance in the audit of the consolidated financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditor’s 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.

The engagement partners on the audit resulting in this independent auditors’ report are Jhen-Chian Chen and Yung-Hua Huang.

KPMG

Taipei, Taiwan (Republic of China) March 17, 2022

Notes to Readers

The accompanying consolidated financial statements are intended only to present the consolidated financial position, financial performance and cash flows in accordance with the accounting principles and practices generally accepted in the Republic of China and not those of any other jurisdictions. The standards, procedures and practices to audit such consolidated financial statements are those generally accepted and applied in the Republic of China.

The independent auditors’ report and the accompanying consolidated financial statements are the English translation of the Chinese version prepared and used in the Republic of China. If there is any conflict between, or any difference in the interpretation of the English and Chinese language independent auditors’ report and consolidated financial statements, the Chinese version shall prevail.

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(English Translation of Consolidated Financial Statements Originally Issued in Chinese) MIN AIK TECHNOLOGY CO., LTD. AND SUBSIDIARIES

Consolidated Balance Sheets

December 31, 2021 and 2020

(Expressed in thousands of New Taiwan Dollars)

Assets Current assets: 1100 Cash and cash equivalents (note 6(a)) 1170 Notes and trade, net (note 6(c)) 1180 Notes and trade receivable due from related parties, net (notes 6(c) and 7) 1200 Other receivables, net (notes 7 and 8) 130X Inventories (note 6(d)) 1470 Other current assets (note 6(i)) Non-current assets: 1510 Non-current financial assets at fair value through profit or loss (note 6(b)) 1517 Non-current financial assets at fair value through other comprehensive income (note 6(e)) 1550 Investments accounted for using equity method (note 6(f)) 1600 Property, plant and equipment (note 6(g)) 1755 Right-of-use assets (note 6(h)) 1840 Deferred tax assets (note 6(n)) 1900 Other non-current assets (note 6(m)) Total assets	December 31, 2021 Amount % $ 701,961 14 1,077,514 21 7,569 - 240,015 5 1,122,881 22 84,355 1 3,234,295 63 317,938 6 40,669 1 671,075 13 676,993 13 116,413 2 39,113 1 24,453 1 1,886,654 37 $ 5,120,949 100	December 31, 2020 Amount % 910,502 19 815,942 18 19,034 - 146,556 3 674,827 15 95,934 2 2,662,795 57 345,373 7 93,775 2 642,760 14 788,710 17 75,443 2 35,063 1 27,740 - 2,008,864 43 4,671,659 100 Liabilities and Equity Current liabilities: 2100 Short-term borrowings (note 6(j)) 2170 Trade payable 2180 Trade payable to related parties (note 7) 2201 Wages and salaries payable 2280 Current lease liabilities (note 6(l)) 2322 Long-term borrowings, current portion (note 6(k)) 2399 Other current liabilities Non-Current liabilities: 2540 Long-term borrowings (note 6(k)) 2570 Deferred tax liabilities (note 6(n)) 2580 Non-current lease liabilities (note 6(l)) 2600 Other non-current liabilities Total liabilities Equity attributable to owners of parent (note 6(o)): 3100 Capital stock 3200 Capital surplus Retained earnings: 3310 Legal reserve 3320 Special reserve 3350 Unappropriated retained earnings (accumulated deficit) 3400 Other equity Equity attributable to owners of parent 36XX Non-controlling interests Total equity Total liabilities and equity	December 31, 2021		December 31, 2020 Amount % 543,900 12 442,067 9 131,435 3 91,555 2 10,257 - 15,025 - 226,373 5 1,460,612 31 90,153 2 192,912 4 26,260 1 14,915 - 324,240 7 1,784,852 38 1,375,632 29 1,689,415 36 163,718 4 570,199 12 (248,846) (5) 485,071 11 (710,107) (15) 2,840,011 61 46,796 1 2,886,807 62 4,671,659 100
			Amount %
			$ 609,984 12 736,027 15 160,309 3 113,943 2 37,521 1 15,025 - 209,484 4 1,882,293 37 75,127 1 196,113 4 43,017 1 15,921 - 330,178 6 2,212,471 43 1,375,632 27 1,604,287 31 - - 570,199 11 188,438 4 758,637 15 (868,968) (17) 2,869,588 56 38,890 1 2,908,478 57 $ 5,120,949 100

See accompanying notes to financial statements.

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(English Translation of Consolidated Financial Statements Originally Issued in Chinese) MIN AIK TECHNOLOGY CO., LTD. AND SUBSIDIARIES

Consolidated Statements of Comprehensive Income

For the years ended December 31, 2021 and 2020

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

2021 Amount % 4000 Operating revenues (notes 6(q) and 7) $ 4,158,812 100 5000 Operating costs (notes 6(d), 7 and 12) 3,473,472 84 Gross profit from operations 685,340 16 Operating expenses (notes 6(c), 7 and 12): 6100 Selling expenses 136,788 3 6200 Administrative expenses 221,301 6 6300 Research and development expenses 134,679 3 6450 Impairment loss determined in accordance with IFRS 9 9,920 - Total operating expenses 502,688 12 Net operating income (loss) 182,652 4 Non-operating income and expenses (notes 6(s) and 7): 7010 Other income 59,725 1 7020 Other gains and losses, net (29,082) (1) 7050 Finance costs (9,138) - 7060 Share of profit of associates accounted for using equity method, net 34,940 1 Total non-operating income and expenses 56,445 1 Profit (loss) before tax 239,097 5 7950 Less: Tax expenses (note 6(n)) 57,593 1 Profit (loss) 181,504 4 8300 Other comprehensive income (loss): 8310 Items that may not be reclassified subsequently to profit or loss: 8311 Gain on remeasurements of defined benefit plans 1,596 - 8316 Unrealized losses from investments in equity instruments measured at fair value through other comprehensive income (53,106) (1) 8320 Share of other comprehensive loss of associates accounted for using equity method, components of other comprehensive income that will not be reclassified (64) - Items that may not be reclassified subsequently to profit or loss (51,574) (1) 8360 Items that may be reclassified subsequently to profit or loss: 8361 Exchange differences on translation (128,332) (3) 8399 Income tax related to components of other comprehensive income that may be reclassified to profit or loss (note 6(n)) 20,073 1 Items that may be reclassified subsequently to profit or loss (108,259) (2) 8300 Other comprehensive loss (159,833) (3) Total comprehensive income (loss) $ 21,671 1 Profit (loss), attributable to: Profit (loss), attributable to owners of parent $ 186,906 4 Loss attributable to non-controlling interests (5,402) - $ 181,504 4 Comprehensive income (loss) attributable to: Comprehensive income (loss), attributable to owners of parent $ 29,577 1 Comprehensive lossㄇ, attributable to non-controlling interests (7,906) - $ 21,671 1 Basic earnings (loss) per share (NT dollars) (note 6(p)) $ 1.36 Diluted earnings per share (NT dollars) (note 6(p)) $ 1.35

2020 Amount % 3,889,506 100 3,630,248 93 259,258 7 142,005 4 237,696 6 157,319 4 1,060 - 538,080 14 (278,822) (7) 38,594 1 (23,641) (1) (10,127) - 12,010 - 16,836 - (261,986) (7) 19,645 - (281,631) (7) 5,464 - (8,338) - (97) - (2,971) - (75,057) (2) 12,273 - (62,784) (2) (65,755) (2) (347,386) (9) (254,213) (6) (27,418) (1) (281,631) (7) (317,225) (8) (30,161) (1) (347,386) (9) (1.85)

See accompanying notes to financial statements.

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(English Translation of Consolidated Financial Statements Originally Issued in Chinese) MIN AIK TECHNOLOGY CO., LTD. AND SUBSIDIARIES

Consolidated Statements of Changes in Equity

For the years ended December 31, 2021 and 2020

(Expressed in thousands of New Taiwan Dollars)

Balance at January 1, 2020 Loss Other comprehensive income (loss) Total comprehensive loss Appropriation and distribution of retained earnings: Legal reserve used to offset accumulated deficits Retirement of treasury share Balance at December 31, 2020 Profit (loss) Other comprehensive income (loss) Total comprehensive income (loss) Appropriation and distribution of retained earnings: Legal reserve used to offset accumulated deficits Capital surplus used to offset accumulated deficits Balance at December 31, 2021									Equity	Equity	attributable to ow	n	ers of parent										Non-controlling interests	Total equity
	Share capital	Capital surplus				Retain		e	d earnings						Other equity				Treasury shares		Total equity attributable to owners of parent
													Exchange differences on translation of foreign financial statements		Unrealized loss from investments in equity instruments measured at fair value through other comprehensive income		Total other equity interest
	Ordinary shares				Legal reserve	Special reserve			Unappropriated retained earnings (accumulated deficit)		Total retained earnings
	$ 1,393,616 - - - - (17,984) 1,375,632 - - - - - $ 1,375,632		1,748,231 - - - - (58,816) 1,689,415 - - - - (85,128) 1,604,287		821,041		570,199 - - - - - 570,199 - - - - - 570,199		(657,323) (254,213) 5,367 (248,846) 657,323 - (248,846) 186,906 1,532 188,438 163,718 85,128 188,438		733,917 (254,213) 5,367 (248,846) - - 485,071 186,906 1,532 188,438 - 85,128 758,637		(606,028) - (60,041) (60,041) - - (666,069) - (105,755) (105,755) - - (771,824)		(35,700) - (8,338) (8,338) - - (44,038) - (53,106) (53,106) - - (97,144)		(641,728) - (68,379) (68,379) - - (710,107) - (158,861) (158,861) - - (868,968)		(76,800) - - - - 76,800 - - - - - - -		3,157,236 (254,213) (63,012) (317,225) - - 2,840,011 186,906 (157,329) 29,577 - - 2,869,588		76,957 (27,418) (2,743) (30,161) - - 46,796 (5,402) (2,504) (7,906) - - 38,890	3,234,193
					- -																			(281,631) (65,755)
					-																			(347,386)
																								- -
																								2,886,807 181,504 (159,833)
																								21,671
																								- -
																								2,908,478

See accompanying notes to financial statements.

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(English Translation of Consolidated Financial Statements Originally Issued in Chinese) MIN AIK TECHNOLOGY CO., LTD. AND SUBSIDIARIES

Consolidated Statements of Cash Flows

For the years ended December 31, 2021 and 2020

(Expressed in thousands of New Taiwan Dollars)

Cash flows from (used in) operating activities: Profit (loss) before tax Adjustments: Adjustments to reconcile (profit) loss: Depreciation expense Amortization expense Net gain on financial assets or liabilities at fair value through profit or loss Interest expense Interest income Dividend income Share of loss of associates accounted for using equity method Gain on disposal of property, plan and equipment Impairment on property, plan and equipment Impairment loss on non-financial assets Others Total adjustments to reconcile profit Changes in operating assets and liabilities: Changes in operating assets: Notes and trade receivable (including related parties), net Other receivable Inventories Other current assets Other non-current assets Total changes in operating assets Changes in operating liabilities: Notes and trade payable (including related parties) Other financial liabilities Other current liabilities Other non-current liabilities Total changes in operating liabilities Total changes in operating assets and liabilities Total adjustments Cash inflow generated from operations Interest received Dividends received Interest paid Income taxes received (paid) Net cash flows from operating activities Cash flows from (used in) investing activities: Acquisition of financial assets at fair value through profit or loss Proceeds from disposal of financial assets at fair value through profit or loss Acquisition of investments accounted for using equity method Acquisition of property, plant and equipment Proceeds from disposal of property, plant and equipment Increase in other receivables Other investing activities Net cash flows used in investing activities Cash flows from (used in) financing activities: Increase (decrease) in short-term loans Repayments of long-term debt Payment of lease liabilities Net cash flows used in financing activities Effect of exchange rate changes on cash and cash equivalents Net increase (decrease) in cash and cash equivalents Cash and cash equivalents at beginning of period Cash and cash equivalents at end of period	2021 $ 239,097 156,665 9,375 27,435 9,138 (2,159) (21,768) (34,940) (4,194) 30,877 - 6,484 176,913 (260,025) (19,708) (444,618) (27,061) (2,540) (753,952) 322,834 25,107 1,723 1,006 350,670 (403,282) (226,369) 12,728 2,159 67,247 (9,119) (29,019) 43,996 - - (23,138) (78,900) 25,791 (73,751) (3,547) (153,545) 66,084 (15,026) (68,328) (17,270) (81,722) (208,541) 910,502 $ 701,961	2020 (261,986) 209,290 5,683 (108,854) 10,127 (4,372) - (12,010) (39,617) 111,297 19,000 9,462
		200,006
		466,467 9,483 412,998 (3,578) (2,120)
		883,250
		(300,047) (27,875) 26,496 (36)
		(301,462)
		581,788
		781,794
		519,808 4,364 12,108 (10,328) 27,930
		553,882
		(1,000) 1,008 (25,689) (63,369) 90,360 (87,094) 11,238
		(74,546)
		(46,573) (15,026) (60,806)
		(122,405)
		(45,274)
		311,657 598,845
		910,502

See accompanying notes to financial statements.

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(English Translation of Consolidated Financial Statements Originally Issued in Chinese) MIN AIK TECHNOLOGY CO., LTD. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

For the years ended December 31, 2021 and 2020

(Expressed in thousands of New Taiwan Dollars, Unless Otherwise Specified)

(1) Company history

Min Aik Technology Co., Ltd. (the “Company”) was incorporated on October 3, 1979, as a company limited by shares and registered under the Ministry of Economic Affairs, ROC. The address of the Company’s registered office is 10F. 1, No. 492 1, Sec. 1, Wanshou Rd., Guishan District, Taoyuan City. The Company and subsidiaries (together referred to as the “Group” and individually as “Group entities”) primarily is involved in the design, manufacture, and sale of hard disk drive components, plastic camera components, CD ROM drive components, and mechanical components for optical devices.

(2) Approval date and procedures of the consolidated financial statements:

These consolidated financial statements were authorized for issue by the board of directors on March 17, 2022.

(3) New standards, amendments and interpretations adopted:

• (a) The impact of the International Financial Reporting Standards (“IFRSs”) endorsed by the Financial Supervisory Commission, R.O.C. which have already been adopted.

The Group has initially adopted the following new amendments, which do not have a significant impact on its consolidated financial statements, from January 1, 2021:

• ●Amendments to IFRS 4 “Extension of the Temporary Exemption from Applying IFRS 9”

• ●Amendments to IFRS 9, IAS39, IFRS7, IFRS 4 and IFRS 16 “Interest Rate Benchmark Reform— Phase 2”

• (b) The impact of IFRS issued by the FSC but not yet effective

The Group assesses that the adoption of the following new amendments, effective for annual period beginning on January 1, 2022, would not have a significant impact on its consolidated financial statements:

• －

• ●Amendments to IAS 16 “Property, Plant and Equipment Proceeds before Intended Use”

• －

• ●Amendments to IAS 37 “Onerous Contracts Cost of Fulfilling a Contract”

• ●Annual Improvements to IFRS Standards 2018–2020

• ●Amendments to IFRS 3 “Reference to the Conceptual Framework”

(Continued)

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MIN AIK TECHNOLOGY CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

• (c) The impact of IFRS issued by IASB but not yet endorsed by the FSC

The Group does not expect the following new and amended standards, which have yet to be endorsed by the FSC, to have a significant impact on its consolidated financial statements:

• ●Amendments to IFRS 10 and IAS 28 “Sale or Contribution of Assets Between an Investor and Its Associate or Joint Venture”

• ●IFRS 17 “ Insurance Contracts” and amendments to IFRS 17 “ Insurance Contracts”

• ●Amendments to IAS 1 “Classification of Liabilities as Current or Non-current”

• ●Amendments to IAS 1 “Disclosure of Accounting Policies”

• ●Amendments to IAS 8 “Definition of Accounting Estimates”

• ●Amendments to IAS 12 “Deferred Tax related to Assets and Liabilities arising from a Single Transaction”

(4) Summary of significant accounting policies:

The significant accounting policies presented in the consolidated financial statements are summarized as follows. The following accounting policies were applied consistently to the periods presented in the financial statements.

• (a) Statement of compliance

These consolidated financial statements have been prepared in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers (hereinafter, referred to as “the Regulations” ) and the International Financial Reporting Standards, International Accounting Standards, IFRIC Interpretations, and SIC Interpretations endorsed by the Financial Supervisory Commission, ROC.

• (b) Basis of preparation

• (i) Basis of measurement

Except for the following significant accounts, the consolidated financial statements have been prepared on a historical cost basis:

• 1) Financial instruments at fair value through profit or loss are measured at fair value;

• 2) Financial assets at fair value through other comprehensive income are measured at fair value;

• 3) The defined benefit liabilities (assets) are measured at fair value of the plan assets less the present value of the defined benefit obligation.

• (ii) Functional and presentation currency

The functional currency of each Group entity is determined based on the primary economic environment in which the entity operates. The consolidated financial statements are presented in New Taiwan dollars, which is the Company’s functional currency. All financial information presented in New Taiwan dollars has been rounded to the nearest thousand.

(Continued)

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MIN AIK TECHNOLOGY CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(c) Basis of consolidation

• (i) Principles of preparation of the consolidated financial statements

The consolidated financial statements comprise the Company and subsidiaries. Subsidiaries are entities controlled by the Group. The Group ‘controls’ an entity when it is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity.

The financial statements of subsidiaries are included in the consolidated financial statements from the date on which control commences until the date on which control ceases. Intra-group balances and transactions, and any unrealized income and expenses arising from intra-group transactions are eliminated in preparing the consolidated financial statements. The Group attributes the profit or loss and each component of other comprehensive income to the owners of the parent and to the non-controlling interests, even if this results in the non-controlling interests having a deficit balance.

The Group prepares consolidated financial statements using uniform accounting policies for like transactions and other events in similar circumstances. Changes in the Group’s ownership interest in a subsidiary that do not result in a loss of control are accounted for as equity transactions. Any difference between the amount by which the non-controlling interests are adjusted and the fair value of the consideration paid or received will be recognized directly in equity, and the Group will attribute it to the owners of the parent.

(ii) List of subsidiaries in the consolidated financial statements

Name of investor Name of subsidiary Principal activity The Company Min Aik Technology USA Inc. (MAUS) Researching hard disk drive components " Min Aik International Development Pte., Ltd. (MAS) Investment holding, researching hard disk drive components, and providing sales and marketing support " Synergy Technology Industrial Co., Ltd. (Synergy) (Note 1) Holding company " Min Aik Technology (Thailand) Co., Ltd. (MATH) Manufacture and sale of hard disk drive components " Good Master Holding Co., Ltd. (Good Master) Holding company " Green Far Company Ltd. (Green Far) Sale of electricity produced by curvature module " New Prestige Global Limited (NPG) (Note 1) Holding Company " Geminnovative Technology Co., LTD. (GIT) Sale and retail of electricity product

Shareholding December 31, 2021 December 31, 2020 % 100.00 % 100.00 % 100.00 % 100.00 % 100.00 % 100.00 % 100.00 % 100.00 % 100.00 % 100.00 % 100.00 % 100.00 % - (Note 1) % 100.00 % 100.00 % 100.00

(Continued)

12

MIN AIK TECHNOLOGY CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

Name of investor Name of subsidiary Principal activity MAS Min Aik Technology(M) Sdn. Bhd. (MAM) Manufacture and sale of hard disk drive components Synergy Min Aik Technology (Suzhou) Co., Ltd. (MAY) Manufacture and sale of hard disk drive components " MATC Technology (M) Sdn. Bhd. (MATC) Manufacture and sale of hard disk drive components " Min Aik-Automation (Suzhou) Co., Ltd (MAA) (Note 1) Manufacture and sale of automatic drive Good Master MU-Technology Ptd. Ltd. (MUS) Holding Company MUS MU Technology (M) Sdn.Bhd. (MUM) Manufacture and sale of hard disk drive components NPG Min Aik-Automation (Suzhou) Co., Ltd (MAA) (Note 1) Manufacture and sale of automatic drive

Shareholding December 31, 2021 December 31, 2020 % 100.00 % 100.00 % 100.00 % 100.00 % 80.00 % 80.00 % 100.00 (Note 1) % - % 69.41 % 69.41 % 100.00 % 100.00 % - (Note 1) % 100.00

• Note 1: NPG was merged into Synergy in September 2021. Synergy was the surviving company. After the merge, NPG’s subsidiary MAA was transferred to Synergy.

(iii) Subsidiaries excluded from the consolidated financial statement: None.

(d) Foreign currencies

(i) Foreign currency transaction

Transactions in foreign currencies are translated into the respective functional currencies of Group entities at the exchange rates at the dates of the transactions. At the end of each subsequent reporting period, monetary items denominated in foreign currencies are translated into the functional currencies using the exchange rate at that date. Non-monetary items denominated in foreign currencies that are measured at fair value are translated into the functional currencies using the exchange rate at the date that the fair value was determined. Non-monetary items denominated in a foreign currency that are measured based on historical cost are translated using the exchange rate at the date of the transaction.

Exchange differences are generally recognized in profit or loss, except for investments in equity securities designated as at fair value through other comprehensive income, which are recognized in other comprehensive income.

(ii) Foreign operations

The assets and liabilities of foreign operations, including goodwill and fair value adjustments arising on acquisition, are translated into the presentation currency at the exchange rates at the reporting date. The income and expenses of foreign operations are translated into the presentation currency at the average exchange rate. Exchange differences are recognized in other comprehensive income.

(Continued)

13

MIN AIK TECHNOLOGY CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

When a foreign operation is disposed of such that control, significant influence, or joint control is lost, the cumulative amount in the translation reserve related to that foreign operation is reclassified to profit or loss as part of the gain or loss on disposal. When the Group disposes of any part of its interest in a subsidiary that includes a foreign operation while retaining control, the relevant proportion of the cumulative amount is reattributed to non-controlling interest. When the Group disposes of only part of investment in an associate or joint venture that includes a foreign operation while retaining significant influence or joint control, the relevant proportion of the cumulative amount is reclassified to profit or loss.

• (e) Classification of current and non-current assets and liabilities

An asset is classified as current under one of the following criteria, and all other assets are classified as non current.

• (i) It is expected to be realized, or intended to be sold or consumed, in the normal operating cycle;

• (ii) It is held primarily for the purpose of trading;

• (iii) It is expected to be realized within twelve months after the reporting period; or

• (iv) The asset is cash or a cash equivalent unless the asset is restricted from being exchanged or used to settle a liability for at least twelve months after the reporting period.

An entity shall classify all other assets as non-current.

An entity shall classify a liability as current when:

• (i) It expects to settle the liability in its normal operating cycle;

• (ii) It is held primarily for the purpose of trading;

• (iii) The liability is due to be settled within twelve months after the reporting period; or

• (iv) The Group does not have an unconditional right to defer settlement of the liability for at least twelve months after the reporting period. 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.

• (f) Cash and cash equivalents

Cash comprises cash on hand and demand deposits. Cash equivalents are short term, highly liquid investments that are readily convertible to known amounts of cash and are subject to an insignificant risk of changes in value. Time deposits which meet the above definition and are held for the purpose of meeting short term cash commitments rather than for investment or other purposes should be recognized as cash equivalents.

(Continued)

14

MIN AIK TECHNOLOGY CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(g) Financial instruments

Trade receivables are initially recognized when they are originated. All other financial assets and financial liabilities are initially recognized when the Group becomes a party to the contractual provisions of the instrument. A financial asset (unless it is a trade receivable without a significant financing component) or financial liability is initially measured at fair value plus, for an item not at fair value through profit or loss (FVTPL), transaction costs that are directly attributable to its acquisition or issue. A trade receivable without a significant financing component is initially measured at the transaction price.

(i) Financial assets

All regular way purchases or sales of financial assets are recognized and derecognized on a trade date basis.

On initial recognition, a financial asset is classified as measured at: amortized cost; FVOCI – equity investment; or FVTPL. Financial assets are not reclassified subsequent to their initial recognition unless the Group changes its business model for managing financial assets, in which case all affected financial assets are reclassified on the first day of the first reporting period following the change in the business model.

• 1) Financial assets measured at amortized cost

A financial asset is measured at amortized cost if it meets both of the following conditions and is not designated as at FVTPL:

• ‧ it is held within a business model whose objective is to hold assets to collect contractual cash flows; and

• ‧ its contractual terms give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

These assets are subsequently measured at amortized cost, which is the amount at which the financial asset is measured at initial recognition, plus/minus, the cumulative amortization using the effective interest method, adjusted for any loss allowance. Interest income, foreign exchange gains and losses, as well as impairment, are recognized in profit or loss. Any gain or loss on derecognition is recognized in profit or loss.

• 2) Fair value through other comprehensive income (FVOCI )

On initial recognition of an equity investment that is not held for trading, the Group may irrevocably elect to present subsequent changes in the investment’s fair value in other comprehensive income. This election is made on an instrument-by-instrument basis.

Equity investments at FVOCI are subsequently measured at fair value. Dividends are recognized as income in profit or loss unless the dividend clearly represents a recovery of part of the cost of the investment. Other net gains and losses are recognized in other comprehensive income and are never reclassified to profit or loss.

Dividend income is recognized in profit or loss on the date on which the Group’s right to receive payment is established.

(Continued)

15

MIN AIK TECHNOLOGY CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

• 3) Fair value through profit or loss (FVTPL)

All financial assets not classified as amortized cost or FVOCI described as above are measured at FVTPL, including derivative financial assets. On initial recognition, the Group may irrevocably designate a financial asset, which meets the requirements to be measured at amortized cost or at FVOCI, as at FVTPL if doing so eliminates or significantly reduces an accounting mismatch that would otherwise arise.

These assets are subsequently measured at fair value. Net gains and losses, including any interest or dividend income, are recognized in profit or loss.

• 4) Impairment of financial assets

The Group recognizes loss allowances for expected credit losses (ECL) on financial assets measured at amortized cost (including cash and cash equivalents, amortized costs, notes and trade receivables, other receivables, guarantee deposit paid and other financial assets).

The Group measures loss allowances at an amount equal to lifetime expected credit loss, except for the following which are measured as 12-month ECL：

• ‧ Debt securities that are determined to have low credit risk at the reporting date；and

• ‧ Other debt securities and bank balances for which credit risk (i.e. the risk of default occurring over the expected life of the financial instrument) has not increased significantly since initial recognition.

Loss allowance for trade receivables and contract assets are measured at an amount equal to lifetime ECL.

Lifetime of ECLs are the ECLs that result from all possible default events over the expected life of a financial instrument.

12-month ECLs are the portion of ECLs that result from default events that are possible within the 12 month after the reporting date (or a shorter period if the expected life of the instrument is less than 12 months).

The maximum period considered when estimating ECLs is the maximum contractual period over which the Group is exposed to credit risk.

When determining whether the credit risk of a financial asset has increased significantly since initial recognition and when estimating ECL, the Group considers reasonable and supportable information that is relevant and available without undue cost or effort. This includes both quantitative and qualitative information and analysis based on the Group’s historical experience and informed credit assessment as well as forward-looking information.

ECLs are a probability-weighted estimate of credit losses. Credit losses are measured as the present value of all cash shortfalls (i.e the difference between the cash flows due to the Group in accordance with the contract and the cash flows that the Group expects to receive). ECLs are discounted at the effective interest rate of the financial asset.

(Continued)

16

MIN AIK TECHNOLOGY CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

Loss allowances for financial assets measured at amortized cost are deducted from the gross carrying amount of the assets.

The gross carrying amount of a financial asset is written off when the Group has no reasonable expectations of recovering a financial asset in its entirety or a portion thereof. For corporate customers, the Group individually makes an assessment with respect to the timing and amount of write-off based on whether there is a reasonable expectation of recovery. The Group expects no significant recovery from the amount written off. However, financial assets that are written off could still be subject to enforcement activities in order to comply with the Group’s procedures for recovery of amounts due.

5) Derecognition of financial assets

The Group derecognizes a financial asset when the contractual rights to the cash flows from the financial asset expire, or it transfers the rights to receive the contractual cash flows in a transaction in which substantially all of the risks and rewards of ownership of the financial asset are transferred or in which the Group neither transfers nor retains substantially all of the risks and rewards of ownership and it does not retain control of the financial asset.

The Group enters into transactions whereby it transfers assets recognized in its statement of balance sheet, but retains either all or substantially all of the risks and rewards of the transferred assets. In these cases, the transferred assets are not derecognized.

• (ii) Financial liabilities and equity instruments

• 1) Classification of debt or equity

Debt and equity instruments issued by the Group are classified as financial liabilities or equity in accordance with the substance of the contractual arrangements and the definitions of a financial liability and an equity instrument.

2) Equity instrument

An equity instrument is any contract that evidences residual interest in the assets of an entity after deducting all of its liabilities. Equity instruments issued are recognized as the amount of consideration received, less the direct cost of issuing.

3) Treasury shares

When shares recognized as equity are repurchased, the amount of the consideration paid, which includes directly attributable costs, is recognized as a deduction from equity. Repurchased shares are classified as treasury shares. When treasury shares are sold or reissued subsequently, the amount received is recognized as an increase in equity, and the resulting surplus or deficit on the transaction is recognized in capital surplus or retained earnings (if the capital surplus is not sufficient to be written down).

(Continued)

17

MIN AIK TECHNOLOGY CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

4) Financial liabilities

Financial liabilities are classified as measured at FVTPL. A financial liability is classified as at FVTPL if it is classified as held-for-trading, it is a derivative or it is designated as such on initial recognition. Financial liabilities at FVTPL are measured at fair value and net gains and losses, including any interest expense, are recognized in profit or loss.

Other financial liabilities are subsequently measured at amortized cost using the effective interest method. Interest expense and foreign exchange gains and losses are recognized in profit or loss. Any gain or loss on derecognition is also recognized in profit or loss.

5) Derecognition of financial liabilities

The Group derecognizes a financial liability when its contractual obligations are discharged, cancelled, or expired. The Group also derecognizes a financial liability when its terms are modified and the cash flows of the modified liability are substantially different, in which case a new financial liability based on the modified terms is recognized at fair value.

On derecognition of a financial liability, the difference between the carrying amount of a financial liability extinguished and the consideration paid (including any non-cash assets transferred or liabilities assumed) is recognized in profit or loss.

6) Offsetting of financial assets and liabilities

Financial assets and financial liabilities are offset and the net amount presented in the statement of balance sheet when, and only when, the Group currently has a legally enforceable right to set off the amounts and it intends either to settle them on a net basis or to realize the asset and settle the liability simultaneously.

(h) Inventories

Inventories are measured at the lower of cost and net realizable value. The cost of inventories is based on weighted-average method and includes expenditure incurred in acquiring the inventories, production or conversion costs, and other costs incurred in bringing them to their present location and condition. In the case of manufactured inventories and work in progress, cost includes an appropriate share of production overheads based on normal operating capacity.

Net realizable value is the estimated selling price in the ordinary course of business, less, the estimated costs of completion and selling expenses.

(i) Investment in associates

Associates are those entities in which the Group has significant influence, but not control or joint control, over their financial and operating policies.

Investments in associates are accounted for using the equity method and are recognized initially at cost. The cost of the investment includes transaction costs. The carrying amount of the investment in associates includes goodwill arising from the acquisition, less any accumulated impairment losses.

(Continued)

18

MIN AIK TECHNOLOGY CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

The consolidated financial statements include the Group’ s share of the profit or loss and other comprehensive income of those associates, after adjustments to align their accounting policies with those of the Group, from the date on which significant influence commences until the date on which significant influence ceases. The Group recognizes any changes of its proportionate share in the investee within capital surplus, when an associate’s equity changes due to reasons other than profit and loss or comprehensive income, which did not result in changes in actual significant influence.

Gains and losses resulting from transactions between the Group and an associate are recognized only to the extent of unrelated Group’s interests in the associate.

When the Group’s share of losses of an associate equals or exceeds its interests in an associate, it discontinues recognizing its share of further losses. After the recognized interest is reduced to zero, additional losses are provided for, and a liability is recognized, only to the extent that the Group has incurred legal or constructive obligations or made payments on behalf of the associate.

The Group discontinues the use of the equity method and measures the retained interest at fair value from the date when its investment ceases to be an associate. The difference between the fair value of retained interest and proceeds from disposing, and the carrying amount of the investment at the date the equity method was discontinued is recognized in profit or loss. The Group accounts for all the amounts previously recognized in other comprehensive income in relation to that investment on the same basis as would have been required if the associates had directly disposed of the related assets or liabilities. If a gain or loss previously recognized in other comprehensive income would be reclassified to profit or loss on the disposal of the related assets or liabilities, the Group reclassifies the gain or loss from equity to profit or loss (as a reclassification adjustment) when the equity method is discontinued. If the Group’ s ownership interest in an associate is reduced while it continues to apply the equity method, the Group reclassifies the proportion of the gain or loss that had previously been recognized in other comprehensive income relating to that reduction in ownership interest to profit or loss.

When the Group subscribes to additional shares in an associate at a percentage different from its existing ownership percentage, the resulting carrying amount of the investment will differ from the amount of the Group’s proportionate interest in the net assets of the associate. The Group records such a difference as an adjustment to investments, with the corresponding amount charged or credited to capital surplus. The aforesaid adjustment should first be adjusted under capital surplus. If the capital surplus resulting from changes in ownership interest is not sufficient, the remaining difference is debited to retained earnings. If the Group’s ownership interest is reduced due to the additional subscription to the shares of the associate by other investors, the proportionate amount of the gains or losses previously recognized in other comprehensive income in relation to that associate will be reclassified to profit or loss on the same basis as would be required if the associate had directly disposed of the related assets or liabilities.

(j) Property, plant and equipment

(i) Recognition and measurement

Items of property, plant and equipment are measured at cost, which includes capitalized borrowing costs, less accumulated depreciation and any accumulated impairment losses.

If significant parts of an item of property, plant and equipment have different useful lives, they are accounted for as separate items (major components) of property, plant and equipment.

(Continued)

19

MIN AIK TECHNOLOGY CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

Any gain or loss on disposal of an item of property, plant and equipment is recognized in profit or loss.

• (ii) Subsequent cost

Subsequent expenditure is capitalized only if it is probable that the future economic benefits associated with the expenditure will flow to the Group.

• (iii) Depreciation

Depreciation is calculated on the cost of an asset less its residual value and is recognized in profit or loss on a straight-line basis over the estimated useful lives of each component of an item of property, plant and equipment.

Land is not depreciated.

The estimated useful lives for the current and comparative years of significant items of property, plant and equipment are as follows:

• 1) Building facilities: 8 ~50 years

• 2) Machinery: 2 ~20 years

• 3) Leasehold improvement: 3 ~15 years

• 4) Office and other equipment: 1 ~ 10 years

Depreciation methods, useful lives, and residual values are reviewed at each reporting date and adjusted if appropriate.

(k) Leases

• (i) Identifying a lease

At inception of a contract, the Group assesses whether a contract is, or contains, a lease. A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration.

• (ii) As a leasee

The Group recognizes a right-of-use asset and a lease liability at the lease commencement date. The right-of-use asset is initially measured at cost, which comprises the initial amount of the lease liability adjusted for any lease payments made at or before the commencement date, plus any initial direct costs incurred and an estimate of costs to dismantle and remove the underlying asset or to restore the underlying asset or the site on which it is located, less any lease incentives received.

(Continued)

20

MIN AIK TECHNOLOGY CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

The right-of-use asset is subsequently depreciated using the straight-line method from the commencement date to the earlier of the end of the useful life of the right-of-use asset or the end of the lease term. In addition, the right-of-use asset is periodically reduced by impairment losses, if any, and adjusted for certain remeasurements of the lease liability.

The lease liability is initially measured at the present value of the lease payments that are not paid at the commencement date, discounted using the interest rate implicit in the lease or, if that rate cannot be reliably determined, the Group’s incremental borrowing rate. Generally, the Group uses its incremental borrowing rate as the discount rate.

Lease payments included in the measurement of the lease liability comprise the following:

• － fixed payments, including in-substance fixed payments;

• － variable lease payments that depend on an index or a rate, initially measured using the index or rate as at the commencement date;

• － amounts expected to be payable under a residual value guarantee; and

• － payments for purchase or termination options that are reasonably certain to be exercised.

The lease liability is measured at amortized cost using the effective interest method. It is remeasured when:

• －

• there is a change in future lease payments arising from the change in an index or rate; or

• － there is a change in the Group’s estimate of the amount expected to be payable under a residual value guarantee; or

• － there is a change in the lease term resulting from a change of its assessment on whether it will exercise an option to purchase the underlying asset, or

• － there is a change of its assessment on whether it will exercise a extension or termination option; or

• －

• there is any lease modifications

When the lease liability is remeasured, other than lease modifications, a corresponding adjustment is made to the carrying amount of the right-of-use asset, or in profit and loss if the carrying amount of the right-of-use asset has been reduced to zero.

When the lease liability is remeasured to reflect the partial or full termination of the lease for lease modifications that decrease the scope of the lease, the Group accounts for the remeasurement of the lease liability by decreasing the carrying amount of the right-of-use asset to reflect the partial or full termination of the lease, and recognize in profit or loss any gain or loss relating to the partial or full termination of the lease.

The Group presents right-of-use assets that do not meet the definition of investment and lease liabilities as a separate line item respectively in the statement of financial position.

(Continued)

21

MIN AIK TECHNOLOGY CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

The Group has elected not to recognize right-of-use assets and lease liabilities for short-term leases of staff dormitory that have a lease term of 12 months or less. The Group recognizes the lease payments associated with these leases as an expense on a straight-line basis over the lease term.

(l) Research & development

Expenditure on research activities is recognized in profit or loss as incurred.

Development expenditure is capitalized only if the expenditure can be measured reliably, the product or process is technically and commercially feasible, future economic benefits are probable and the Group intends to, and has sufficient resources to, complete development and to use or sell the asset. Otherwise, it is recognized in profit or loss as incurred. Subsequent to initial recognition, development expenditure is measured at cost, less accumulated amortization and any accumulated impairment losses.

Subsequent expenditure is capitalized only when it increases the future economic benefits embodied in the specific asset to which it relates. All other expenditure, including expenditure on internally generated goodwill and brands, is recognized in profit or loss as incurred.

(m) Impairment – non-derivative financial assets

At each reporting date, the Group reviews the carrying amounts of its non-financial assets (other than inventories, and deferred tax assets) to determine whether there is any indication of impairment. If any such indication exists, then the asset’s recoverable amount is estimated. Goodwill is tested annually for impairment.

For impairment testing, assets are grouped together into the smallest group of assets that generates cash inflows from continuing use that are largely independent of the cash inflows of other assets or CGUs. Goodwill arising from a business combination is allocated to CGUs or groups of CGUs that are expected to benefit from the synergies of the combination.

The recoverable amount of an asset or CGU is the greater of its value in use and its fair value less costs to sell. Value in use is based on the estimated future cash flows, discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset or CGU.

An impairment loss is recognized if the carrying amount of an asset or CGU exceeds its recoverable amount.

Impairment losses are recognized in profit or loss. They are allocated first to reduce the carrying amount of any goodwill allocated to the CGU, and then to reduce the carrying amounts of the other assets in the CGU on a pro rata basis.

An impairment loss in respect of goodwill is not reversed. For other assets, an impairment loss is reversed only to the extent that the asset’s carrying amount does not exceed the carrying amount that would have been determined, net of depreciation or amortization, if no impairment loss had been recognized.

(Continued)

22

MIN AIK TECHNOLOGY CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(n) Revenue

• (i) Revenue from contracts with customers

Revenue is measured based on the consideration to which the Group expects to be entitled in exchange for transferring goods or services to a customer. The Group recognizes revenue when it satisfies a performance obligation by transferring control of a good or a service to a customer. The accounting policies for the Group’s main types of revenue are explained below.

1) Sale of goods–electronic components

The Group recognizes revenue when control of the products has transferred, being when the products are delivered to the customer, the customer has full discretion over the channel and price to sell the products, and there is no unfulfilled obligation that could affect the customer’s acceptance of the products. Delivery occurs when the products have been shipped to the specific location, the risks of obsolescence and loss have been transferred to the customer, and either the customer has accepted the products in accordance with the sales contract, the acceptance provisions have lapsed, or the Group has objective evidence that all criteria for acceptance have been satisfied.

A receivable is recognized when the goods are delivered as this is the point in time that the Group has a right to an amount of consideration that is unconditional.

2) Financing components

The Group does not expect to have any contracts when the period between the transfer of the promised goods or services to the customer and payment by the customer exceeds one year. As a consequence, the group does not adjust any of the transaction prices for the time value of money.

(o) Employee benefits

(i) Defined contribution plans

Obligations for contributions to defined contribution plans are expensed as the related service is provided.

(ii) Defined benefit plans

The Group’s net obligation in respect of defined benefit plans is calculated separately for each the plan by estimating the amount of future benefit that employees have earned in the current and prior periods, discounting that amount and deducting the fair value of any plan assets.

The calculation of defined benefit obligations is performed annually by a qualified actuary using the projected unit credit method. When the calculation results in a potential asset for the Group, the recognized asset is limited to the present value of economic benefits available in the form of any future refunds from the plan or reductions in future contributions to the plan. To calculate the present value of economic benefits, consideration is given to any applicable minimum funding requirements.

(Continued)

23

MIN AIK TECHNOLOGY CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

Remeasurements of the net defined benefit liability, which comprise actuarial gains and losses, the return on plan assets (excluding interest) and the effect of the asset ceiling (if any, excluding interest), are recognized immediately in other comprehensive income, and accumulated in retained earnings within equity. The Group determines the net interest expense (income) on the net defined benefit liability (asset) for the period by applying the discount rate used to measure the defined benefit obligation at the beginning of the annual period to the then-net defined benefit liability (asset). Net interest expense and other expenses related to defined benefit plans are recognized in profit or loss.

(p) Income taxes

Income taxes comprise current taxes and deferred taxes. Except for expenses related to business combinations or recognized directly in equity or other comprehensive income, all current and deferred taxes are recognized in profit or loss.

Current taxes comprise the expected tax payables or receivables on the taxable profits (losses) for the year and any adjustment to the tax payable or receivable in respect of previous years. The amount of current tax payables or receivables are the best estimate of the tax amount expected to be paid or received that reflects uncertainty related to income taxes, if any. It is measured using tax rates enacted or substantively enacted at the reporting date.

Deferred taxes arise due to temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and their respective tax bases. Deferred taxes are recognized except for the following:

• (i) temporary differences on the initial recognition of assets and liabilities in a transaction that is not a business combination and that affects neither accounting nor taxable profits (losses) at the time of the transaction;

• (ii) temporary differences related to investments in subsidiaries, associates and joint arrangements to the extent that the Group is able to control the timing of the reversal of the temporary differences and it is probable that they will not reverse in the foreseeable future; and

• (iii) taxable temporary differences arising on the initial recognition of goodwill.

Deferred taxes are measured at tax rates that are expected to be applied to temporary differences when they reserve, using tax rates enacted or substantively enacted at the reporting date, and reflect uncertainty related to income taxes, if any.

Deferred tax assets and liabilities are offset if the following criteria are met:

• (i) the Group has a legally enforceable right to set off current tax assets against current tax liabilities; and

• (ii) the deferred tax assets and the deferred tax liabilities relate to income taxes levied by the same taxation authority on either:

(Continued)

24

MIN AIK TECHNOLOGY CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

• 1) the same taxable entity; or

• 2) different taxable entities which intend to settle current tax assets and liabilities on a net basis, or to realize the assets and liabilities simultaneously, in each future period in which significant amounts of deferred tax liabilities or assets are expected to be settled or recovered.

Deferred tax assets are recognized for the carry forward of unused tax losses, unused tax credits, and deductible temporary differences to the extent that it is probable that future taxable profits will be available against which they can be utilized. Deferred tax assets are reviewed at each reporting date and are reduced to the extent that it is no longer probable that the related tax benefits will be realized; such reductions are reversed when the probability of future taxable profits improves.

(q) Earnings per share

The Group discloses the Company’s basic and diluted earnings per share attributable to ordinary shareholders of the Company. Basic earnings per share are calculated as the profit attributable to ordinary shareholders of the Company divided by the weighted-average number of ordinary shares outstanding. Diluted earnings per share are calculated as the profit attributable to ordinary shareholders of the Company divided by the weighted-average number of ordinary shares outstanding after adjustment for the effects of all potentially dilutive ordinary shares, including employee compensation.

(r) Operating segments

An operating segment is a component of the Group that engages in business activities from which it may earn revenues and incur expenses (including revenues and expenses relating to transactions with other components of the Group). Operating results of the operating segment are regularly reviewed by the Group’s chief operating decision maker to make decisions about resources to be allocated to the segment and to assess its performance. Each operating segment consists of standalone financial information.

(5) Significant accounting assumptions and judgments, and major sources of estimation uncertainty:

In preparation of these consolidated financial statements, management has made judgments, estimates, and assumptions that affect the application of the accounting policies and the reported amount of assets, liabilities, income, and expenses. Actual results may differ from these estimates.

The management continues to monitor the accounting estimates and assumptions. The management recognizes any changes in accounting estimates during the period and the impact of those changes in accounting estimates in the next period.

Information about judgments made in applying accounting policies that have the most significant effects on the amounts recognized in the consolidated financial statements is as follows:

Judgment regarding control of subsidiaries

Although the Group is the largest shareholder of Min Aik Precision Industrial Co., Ltd (MAP), the Group still cannot assign more than half of the total number of MAP's directors, and it also cannot obtain more than half of the voting rights at a shareholders' meeting. Therefore, it is determined that the Group has significant influence on MAP.

(Continued)

25

MIN AIK TECHNOLOGY CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

Information about assumptions and estimation uncertainties that have a significant risk of resulting in a material adjustment within the next financial year is as follows:

(a) Valuation of inventories

As inventories are stated at the lower of cost or net realizable value, the Group estimates the net realizable value of inventories for obsolescence and unmarketable items at the end of the reporting period and then writes down the cost of inventories to net realizable value. The net realizable value of the inventory is mainly determined based on assumptions as to future demand within a specific time horizon. Due to the rapid industrial transformation, there may be significant changes in the net realizable value of inventories.

The Group’s accounting policies include measuring financial and non-financial assets and liabilities at fair value through profit or loss. the Group’ s financial instrument valuation group conducts independent verification on fair value by using data sources that are independent, reliable, and representative of exercise prices. This financial instrument valuation group also periodically adjusts valuation models, conducts back-testing, renews input data for valuation models, and makes all other necessary fair value adjustments to assure the rationality of fair value. The Group strives to use market observable inputs when measuring assets and liabilities.

Different levels of the fair value hierarchy to be used in determining the fair value of financial instruments are as follows:

• (a) Level 1: quoted prices (unadjusted) in active markets for identifiable assets or liabilities.

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

• (c) Level 3: inputs for the assets or liability that are not based on observable market data.

For any transfer within the fair value hierarchy, the impact of the transfer is recognized on the reporting date. Please refer to note 6(t) for assumptions used in measuring fair value.

(6) Explanation of significant accounts:

• (a) Cash and cash equivalents

Cash and cash equivalents
Cash on hand and demand deposits Time deposits Cash and cash equivalents in consolidated statement of cash flows	December 31, 2021 $ 635,229 66,732 $ 701,961	December 31, 2020
		844,210 66,292
		910,502

Please refer to note 6(t) for the interest rate risk, and the fair value sensitivity analysis of the financial assets and liabilities of the Group.

(Continued)

26

MIN AIK TECHNOLOGY CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

• (b) Financial assets at fair value through profit or loss

Mandatorily measured at fair value through profit or loss: Funds investment Stocks listed on domestic markets	December 31, 2021 $ 5,745 312,193 $ 317,938	December 31, 2020
		6,762 338,611
		345,373

The discourse instruments were not pledged as collateral as of December 31, 2021 and 2020.

• (c) Notes and accounts receivable

Notes receivable Accounts receivable Accounts receivable due from related parties Less: allowance for impairment	December 31, 2021 $ 5,671 1,083,263 7,569 (11,420) $ 1,085,083	December 31, 2020
		261 817,183 19,034 (1,502)
		834,976

The Group applies the simplified approach to provide for its expected credit losses, i.e. the use of lifetime expected loss provision for all receivables on December 31, 2021. To measure the expected credit losses, trade receivables have been grouped based on shared credit risk characteristics and the days past due, as well as incorporated forward looking information, including macroeconomic and relevant industry information. The loss allowance provision was determined as follows:

Current 1 to 90 days past due 91 to 180 days past due 181 to 360 days past due More than 360 days past due	December 31, 2021	December 31, 2021
	Gross carrying amount $ 1,038,941 42,611 3,439 3,645 7,867 $ 1,096,503	Weighted- average loss rate 0%~1% 0%~4% 0%~20% 0%~100% 100%	Loss allowance provision
			1,146 973 120 1,314 7,867
			11,420

(Continued)

27

MIN AIK TECHNOLOGY CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

Current 1 to 90 days past due 91 to 180 days past due 181 to 360 days past due	December 31, 2020	December 31, 2020
	Gross carrying amount $ 765,749 46,943 21,722 2,064 $ 836,478	Weighted- average loss rate 0%~1% 0%~4% 1%~5% 3%~100%	Loss allowance provision
			1,035 31 358 78
			1,502

The movement in the allowance for notes and trade receivable were as follows:

Balance at January 1 Impairment losses recognized Amount written off Foreign exchange gains Balance at December 31	2021 $ 1,502 9,920 - (2) $ 11,420	2020
		6,370 1,060 (5,842) (86)
		1,502

The aforementioned notes and trade receivables of the Group were not pledged as collateral as of December 31, 2021 and 2020.

(d) Inventories

Raw materials Work in progress Finished goods and products	December 31, 2021 $ 689,832 137,677 295,372 $ 1,122,881	December 31, 2020
		284,928 113,103 276,796
		674,827

For the years ended December 31, 2021 and 2020, the Group recognized the following items as cost of goods sold:

Cost of goods sold Unallocated fixed manufacturing overhead resulting from the actual production being lower than the normal capacity Write-down (Reversal of write downs) and retirement of inventory Additional losses on inventory counts or others	2021 $ 3,429,853 46,405 (3,436) 650 $ 3,473,472	2020
		3,483,280 136,583 10,822 (437)
		3,630,248

(Continued)

28

MIN AIK TECHNOLOGY CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

As of December 31, 2021 and 2020, the Group didn't provide any inventories as collateral for its loans.

• (e) Financial assets at fair value through other comprehensive income

Overseas equity investment	December 31, 2021 $ 40,669	December 31, 2020
		93,775

The Group designated the investments shown above as equity securities as at fair value through other comprehensive income because these equity securities represent investments that the Group intends to hold for long-term for strategic purposes.

The Group did not disposal the investment in 2021 and 2020. Gain or loss changes during the holding period were not transfer to the equity section.

For credit risk and market risk, please refer to 6(t).

The discourse instrument was not pledged as collateral as of December 31, 2021 and 2020.

• (f) Investments accounted for using equity method

A summary of the Group’s financial information for equity-accounted investees at the reporting date is as follows:

Associates (i) The information on material associates Name of Associates Main business activities Country MAP Manufacturing of electronic parts and components Taiwan	December 31, 2021 December 31, 2020 $ 671,075 642,760 Ownership (%)	December 31, 2021 December 31, 2020 $ 671,075 642,760 Ownership (%)	December 31, 2020
			642,760
		December 31, 2021 December 31, 2020 % 37.31 % 36.20

Though the Group is the largest shareholder of affiliate MAP. However, consider that the Group can't obtain more than half of the board seats or shareholder's voting rights at a shareholders’ meeting, it is determined that the Group only has significant influence on MAP.

The fair value of affiliate listed on the Stock Exchange which are material to the Group is as follows:

MAP	December 31, 2021 $ 841,728	December 31, 2020
		839,095

(Continued)

29

MIN AIK TECHNOLOGY CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

The following consolidated financial information of significant affiliate has been adjusted according to individually prepared IFRS financial statements of these affiliates:

Current assets Non-current assets Current liabilities Non-current liabilities Net assets Net assets attributable to non-controlling interests Operating revenue Net income Other comprehensive loss Total comprehensive income Comprehensive income attributable to controlling interests Share of net assets of affiliate as of January 1 Equities acquired due to increase in ownership of associates Comprehensive income attributable to the Group Dividends received from affiliate Share of net assets of affiliate as of December 31 Add: The differences of equity attributable to owners Less: Unrealized profit in ending inventory The equity of associates that belongs to the Group	December 31, 2021 $ 1,811,294 1,265,801 (998,692) (365,104) $ 1,713,299 $ 1,705,452 2021 $ 2,167,903 $ 89,217 (34,755) $ 54,462 $ 54,462 2021 $ 619,253 18,734 23,138 (15,495) 645,630 28,632 (3,187) $ 671,075	December 31, 2020 1,818,796 1,312,153 (894,294) (535,468) 1,701,187 1,693,340 2020 1,921,700 29,987 (14,258) 15,729 15,729 2020 597,258 5,995 25,689 (9,689) 619,253 28,632 (5,125) 642,760

The Group acquired interest in an associate-Min Aik Precision Industrial Co., Ltd. (MAP) for $23,138, increasing its ownership from 36.20% to 37.31%.

(ii) Collateral

The Group’s investment accounted for using equity method were not pledged as collateral as of December 31, 2021 and 2020.

(Continued)

30

MIN AIK TECHNOLOGY CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(g) Property, plant and equipment

Land Cost or deemed cost: Balance on January 1, 2021 $ 25,629 Additions - Disposal - Reclassification - Transfer from inventory - Other transfer - Effect of movements in exchange rates (3,242) Balance on December 31, 2021 $ 22,387 Balance on January 1, 2020 $ 27,083 Additions - Disposal - Reclassification - Transfer from inventory - Other transfer - Effect of movements in exchange rates (1,454) Balance on December 31, 2020 $ 25,629 Depreciation and impairments loss: Balance on January 1, 2021 $ - Depreciation for the year - Impairment loss - Disposal - Reclassification - Effect of movements in exchange rates - Balance on December 31, 2021 $ - Balance on January 1, 2020 $ - Depreciation for the year - Impairment loss - Disposal - Reclassification - Effect of movements in exchange rates - Balance on December 31, 2020 $ - Carrying amounts: Balance on December 31, 2021 $ 22,387 Balance on December 31, 2020 $ 25,629 Balance on January 1, 2020 $ 27,083	Buildings and construction 230,844 - (1,545) - - - (16,276) 213,023 239,191 - - - - - (8,347) 230,844 85,428 6,980 - (1,545) - (6,201) 84,662 73,457 7,548 6,903 - - (2,480) 85,428 128,361 145,416 165,734	Machinery and equipment 1,917,281 46,278 (66,763) 15,965 1,974 - (71,422) 1,843,313 2,421,299 19,698 (481,849) 17,204 - - (59,071) 1,917,281 1,491,105 77,784 9,157 (50,523) 1,180 (60,115) 1,468,588 1,805,035 117,618 78,871 (464,157) 1,214 (47,476) 1,491,105 374,725 426,176 616,264	Other facilities 804,442 13,435 (57,659) 3,597 2,162 - (26,502) 739,475 910,719 17,785 (128,958) 21,695 835 - (17,634) 804,442 616,816 27,158 21,720 (52,302) 387 (18,870) 594,909 674,535 37,236 25,523 (110,202) 1,736 (12,012) 616,816 144,566 187,626 236,184	Prepayment for purchase of equipment 3,863 24,827 - (19,562) - (1,039) (1,135) 6,954 16,713 30,118 (14,294) (38,899) - 9,943 282 3,863 - - - - - - - - - - - - - - 6,954 3,863 16,713	Total 2,982,059 84,540 (125,967) - 4,136 (1,039) (118,577) 2,825,152 3,615,005 67,601 (625,101) - 835 9,943 (86,224) 2,982,059 2,193,349 111,922 30,877 (104,370) 1,567 (85,186) 2,148,159 2,553,027 162,402 111,297 (574,359) 2,950 (61,968) 2,193,349 676,993 788,710 1,061,978

(Continued)

31

MIN AIK TECHNOLOGY CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(i) Impairment loss

Due to the fact that the utilization rate of production line was lower than expected and the expected future cash flow might not be able to recover the carrying amount of the related equipment, the impairment loss amounting to $30,877 thousand was recognized under other gains and losses in 2021.

Due to the fact that the utilization rate of production line was lower than expected and the stop of APFA production, expected future cash flow might not be able to recover the carrying amount of the related equipment. Thus, the impairment loss had been recognized in 2020 based on the following:

Based on the financial forecasts for the future periods, the carrying amount of the Group’s PPE for the year ended of 2020 could not be recovered by the present value of future cash flow, therefore, an impairment loss amounting to $111,297 thousand was recognized and reported as other gains and losses.

The recoverable amounts were determined based on the expected cash flow approved by the Group management, at a PV rate of 8.88% in 2020. The ratio was based on the pretax tenyear government bonds yield using the same currency. Accelerating risk and specific systematic risk in CGU were also disclosed as adjusted for risk premium.

The Group recognized the impairment loss of the difference between carrying amount and recoverable value. However, any negative changes in the key factors of assumption could lead to an increase of impairment.

(ii) Collateral

As of December 31, 2021 and 2020, the property, plant and equipment of the Group had not been pledged as collateral.

(h) Right-of-use assets

Cost: Balance at January 1, 2021 Additions Disposal Effect of change in foreign exchange rates Balance at December 31, 2021 Balance at January 1, 2020 Additions Disposal Effect of change in foreign exchange rates Balance at December 31, 2020	Land $ 41,049 - - (3,813) $ 37,236 $ 41,049 - - - $ 41,049	Buildings 116,170 111,827 (106,370) (188) 121,439 126,593 17,135 (27,347) (211) 116,170	Machinery and equipment 4,035 521 (2,818) (44) 1,694 7,199 - (3,151) (13) 4,035	Total 161,254 112,348 (109,188) (4,045) 160,369 174,841 17,135 (30,498) (224) 161,254

(Continued)

32

MIN AIK TECHNOLOGY CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

Accumulated depreciation: Balance at January 1, 2021 Depreciation for the year Disposal Other Effect of movements in exchange rates Balance at December 31, 2021 Balance at January 1, 2020 Depreciation for the year Disposal Other Effect of movements in exchange rates Balance at December 31, 2020 Carrying amount: Balance at December 31, 2021 Balance at December 31, 2020 Balance at January 1, 2020	Land $ 2,246 439 - - (1,389) $ 1,296 $ 485 457 - - 1,304 $ 2,246 $ 35,940 $ 38,803 $ 40,564	Buildings 80,661 43,647 (84,551) 2,220 (369) 41,608 50,088 44,738 (9,180) 3,226 (8,211) 80,661 79,831 35,509 76,505	Machinery and equipment 2,904 657 (2,592) 120 (37) 1,052 3,958 1,693 (3,151) 405 (1) 2,904 642 1,131 3,241	Total 85,811 44,743 (87,143) 2,340 (1,795) 43,956 54,531 46,888 (12,331) 3,631 (6,908) 85,811 116,413 75,443 120,310

(i) Other current assets and other non-current assets

The following are other current assets and other non-current assets of the Group:

Tax refundable and offset against business tax payable Prepayment for purchases Refundable deposits Others	December 31, 2021 $ 23,090 16,409 12,219 57,090 $ 108,808	December 31, 2020
		42,631 17,218 13,674 50,151
		123,674

(Continued)

33

MIN AIK TECHNOLOGY CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(j) Short-term borrowings

Unsecured bank loans Secured bank loans Payable forward letter of credit Unused short-term credit lines Range of interest rates	December 31, 2021 $ 233,900 359,890 16,194 $ 609,984 $ 431,386 0.9%~1.25%	December 31, 2020
		263,900 280,000 -
		543,900
		311,920
		0.93%~1.35%

Please refer to note 6(t) for the interest rate risk, and the liquidity risk of the financial assets and liabilities of the Group. For the collateral for short-term borrowings, please refer to note 8.

(k) Long-term borrowings

The details were as follows:

Unsecured bank loans Less: current portion Total Unused long-term credit lines		December 31, 2021	December 31, 2021
	Currency NTD	Interest rate 1.7%	Maturity year Amount 2027 $ 90,152 (15,025) $ 75,127 $ -

Unsecured bank loans Less: current portion Total Unused long-term credit lines		December 31, 2020	December 31, 2020
	Currency NTD	Interest rate 1.7%	Maturity year Amount 2027 $ 105,178 (15,025 $ 90,153 $ -

(l) Lease liabilities

Current Non-current	December 31, 2021 $ 37,521 $ 43,017	December 31, 2020 10,257 26,260

For the maturity analysis, please refer to note 6(t).

(Continued)

34

MIN AIK TECHNOLOGY CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

The amounts recognized in profit or loss was as follows:

Interest expenses on lease liabilities Expenses relating to short-term leases	2021 $ 1,305 $ 6,676	2020
		738
		5,045

The amounts recognized in the statement of cash flows for the Group was as follows:

Total cash outflow for leases	2021 $ 76,309	2020
		66,589

(m) Employee benefits

(i) Defined benefit plans

The present value of the defined benefit obligations and the fair value of the plan assets of the Company were as follows:

Present value of defined benefit obligations Fair value of plan assets Net defined benefit assets	December 31, 2021 $ 39,498 (44,393) $ (4,895)	December 31, 2020 40,803 (43,067) (2,264)

The Group makes defined benefit plan contributions to the pension fund account with Bank of Taiwan that provides pensions for employees upon retirement. Plans (covered by the Labor Standards Law) entitle a retired employee to receive retirement benefits calculated based on years of service and average monthly salary for the six months prior to retirement.

1) Composition of plan assets

The Group allocates pension funds in accordance with the Regulations for Revenues, Expenditures, Safeguard and Utilization of the Labor Retirement Fund, and such funds are managed by the Bureau of Labor Funds, Ministry of Labor. With regard to the utilization of the funds, minimum earnings shall be no less than the earnings attainable from two-year time deposits with interest rates offered by local banks.

The Group’ s Bank of Taiwan labor pension reserve account balance amounted to $44,393 thousand as of December 31, 2021. For information on the utilization of the labor pension fund assets, including the asset allocation and yield of the fund, please refer to the website of the Bureau of Labor Funds, Ministry of Labor.

(Continued)

35

MIN AIK TECHNOLOGY CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

• 2) Movements in the present value of the defined benefit obligations

The movement in the present value of the defined benefit obligations of the Group were as follows:

2021 Defined benefit obligation at January 1 $ 40,803 Current service costs and interest 326 Re-measurement loss (gain): - Return on plan assets excluding interest income (63) - Actuarial loss (gain) arising from -demographic assumptions 1,641 -financial assumptions (2,544) Benefit paid (665) Defined benefit obligation at December 31 $ 39,498	2020 47,695 601 (7,447) 592 2,962 (3,600) 40,803

• 3) Movements of the defined benefit plan assets

The movements in the present value of the defined benefit plan assets for the Group were as follows:

Fair value of plan assets at January 1 Interest income Re-measurement loss (gain) - Return on plan assets excluding interest income Contribution paid by employer Benefits paid Fair value of plan assets at December 31	2021 $ 43,067 144 630 1,217 (665) $ 44,393	2020 43,573 328 1,571 1,195 (3,600) 43,067

(Continued)

36

MIN AIK TECHNOLOGY CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

4) Expenses recognized in profit or loss

The expenses recognized in profit or loss for the Group were as follows:

Current service cost Net interest of net liabilities (assets) for defined benefit obligations Operating cost Selling expenses Administrative expenses Research and development expenses	2021 $ 192 (10) $ 182 $ 71 13 72 26 $ 182	2020
		246 27
		273
		70 30 114 59
		273

• 5) Actuarial assumptions

The principal actuarial assumptions at the reporting date were as follows:

Discount rate Future salary increase rate	2021 2020 % 0.750 % 0.350 % 1.500 % 1.500

The expected allocation payment to be made by the Group to the defined benefit plans for the one-year period after the reporting date is $1,196 thousand.

The weighted-average lifetime of the defined benefits plans is 10 years.

• 6) Sensitivity analysis

If the actuarial assumptions had changed, the impact on the present value of the defined benefit obligation shall be as follows:

Actuarial assumptions 2021.12.31 Discount rate 0.75％ Future salary increase rate 1.5％ Actuarial assumptions 2020.12.31 Discount rate 0.35％ Future salary increase rate 1.5％	Influences of defined obligations
	Increase of 0.5% Decrease of 0.5% (1,568) 1,674 1,608 (1,522) Influences of defined obligations
	Increase of 0.5% Decrease of 0.5% (1,619) 1,732 1,650 (1,559)

(Continued)

37

MIN AIK TECHNOLOGY CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

Reasonably possible changes at the reporting date to one of the relevant actuarial assumptions, holding other assumptions constant, would have affected the defined benefit obligations by the amounts shown above. The method used in the sensitivity analysis is consistent with the calculation of pension liabilities in the balance sheets.

There was no change in the method and assumptions used in the preparation of the sensitivity analysis for 2021 and 2020.

(ii) Defined contribution plans

The Group allocates 6% of each employee’ s monthly wages to the labor pension personal account at the Bureau of Labor Insurance in accordance with the provisions of the Labor Pension Act. Under this defined contribution plan, the Group allocates a fixed amount to the Bureau of Labor Insurance without additional legal or constructive obligations.

The Group recognized pension costs under the defined contribution method amounting to $33,390 and $29,979 thousand for the years ended December 31, 2021 and 2020, respectively.

(n) Income taxes

• (i) The components of income tax for the years 2021 and 2020 were as follows:

Current tax Deferred tax Income tax expense	2021 $ 38,369 19,224 $ 57,593	2020 17,447 2,198 19,645

• (ii) The amount of income tax recognized in other comprehensive income for 2021 and 2020 was as follows:

Foreign currency translation differences from foreign operations	2021 $ (20,073)	2020 (12,273)

(iii) Reconciliation of income tax and profit or loss before tax for 2021 and 2020 was as follows:

Profit (loss) excluding income tax Income tax using the Company’s domestic tax rate Effect of tax rates in foreign jurisdiction Change in permanent differences Changes in unrecognized deferred tax asset and deferred tax liability Change in provision in prior periods	2021 $ 239,097 81,437 6,447 315 17,288 (47,894) $ 57,593	2020 (261,986) (112,751) (14,202) 1,504 154,880 (9,786) 19,645

(Continued)

38

MIN AIK TECHNOLOGY CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(iv) Deferred tax assets and liabilities

• 1) Unrecognized deferred tax liabilities

Based on Group planning, overseas subsidiaries would continue to use its surplus on sites’ expansions and working capital. Therefore, the subsidiaries would not distributed their earnings back to the Company in the foreseeable future. Previous decisions would also affect unrecognized deferred tax liabilities, which stands at $23,646 thousand for both reporting fiscal years.

• 2) Unrecognized deferred tax assets

Deferred tax assets have not been recognized for 2021 and 2020 was as follows:

The carry forward of unused tax losses Tax effect of deductible temporary differences	December 31, 2021 $ 130,064 106,823 $ 236,887	December 31, 2020
		376,251 141,566
		517,817

Deferred tax assets have not been recognized in respect of these items because it is not probable that future taxable profit will be sufficient to utilize deferred tax asset.

The Group’ s unrecognized deduction of tax loss amounts in $130,064 thousand. Deduction may be higher under condition of using the tax rate in foreign jurisdiction as $558,926 thousand.

• 3) Recognized deferred tax assets and liabilities

Changes in the amount of deferred tax assets and liabilities for 2021 and 2020 were as follows:

Deferred tax liabilities: Balance on January 1, 2021 Recognized in profit or loss Recognized in other comprehensive income Balance on December 31, 2021 Balance on January 1, 2020 Recognized in profit or loss Recognized in other comprehensive income Balance on December 31, 2020	Investment income recognized under the equity method $ 183,892 26,564 (20,073) $ 190,383 $ 197,516 (1,351) (12,273) $ 183,892	Others 9,020 (3,290) - 5,730 6,759 2,261 - 9,020	Total 192,912 23,274 (20,073) 196,113 204,275 910 (12,273) 192,912

(Continued)

39

MIN AIK TECHNOLOGY CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

Additional loss on inventory valuation Deferred tax assets: Balance on January 1, 2021 $ (3,753) Recognized in profit or loss (1,059) Balance on December 31, 2021 $ (4,812) Balance on January 1, 2020 (4,495) Recognized in profit or loss 742 Balance on December 31, 2020 $ (3,753)	Unused tax losses carry forwards (25,070) - (25,070) (25,070) - (25,070)	Investment income recognized under the equity method - - - - - -	Others (6,240) (2,991) (9,231) (6,786) 546 (6,240)	Total (35,063) (4,050) (39,113) (36,351) 1,288 (35,063)

(v) Examination and approval

The Company’s, Green Far's and GIT’s tax returns for the years through 2019 were examined and approved by the Taipei National Tax Administration.

(o) Capital and other equity

As of December 31, 2021 and 2020, the authorized common stock was $4,000,000 (including employee stock options for 7.5 million shares). The total common stock outstanding amounted to $1,375,632 thousand as of both December 31, 2021 and 2020. The par value of the Company’ s common stock is $10 (NT dollars) per share. All of the payments of outstanding shares were received.

(i) Capital surplus

The balances of capital surplus as of December 31, 2021 and 2020, were as follows:

Additional paid-in capital Treasury share transactions Gain on disposal of assets Change of equity of associates accounted for using equity method	December 31, 2021 $ 1,298,993 39,954 7 265,333 $ 1,604,287	December 31, 2020
		1,384,121 39,954 7 265,333
		1,689,415

(Continued)

40

MIN AIK TECHNOLOGY CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

According to the ROC Company Act, capital surplus can only be used to offset a deficit, and only the realized capital surplus can be used to increase the common stock or be distributed as cash dividends. The aforementioned realized capital surplus includes capital surplus resulting from premium on issuance of capital stock and earnings from donated assets received. According to the Regulations Governing the Offering and Issuance of Securities by Securities Issuers, capital increases by transferring paid-in capital in excess of par value should not exceed 10% of the total common stock outstanding.

A resolution was passed during the general meeting of shareholders held on 31 August 2021 to offset a $85,128 thousand deficit in 2020’s earning distribution with capital surplus.

(ii) Retained earnings

The Company's article of incorporation stipulates that Company's net earnings should first be used to offset the prior years' deficits, if any, before paying any income taxes. Of the remaining balance, 10% is to be appropriated as legal reserve, and then any remaining profit together with any undistributed retained earnings shall be distributed according to the distribution plan proposed by the Board of Directors and submitted to the stockholders’ meeting for approval.

Before the distribution of dividends, the Company shall first take into consideration its operating environment, industry developments, and the long-term interests of stockholders, as well as its programs to maintain operating efficiency and meet its capital expenditure budget and financial goals in determining the stock or cash dividends to be paid. After the above appropriations, current and prior-period earnings that remain undistributed will be proposed for distribution by the Board of Directors, and a meeting of shareholders will be held to decide on this matter. The cash dividends shall not be more than 10% of total dividends. Distribution of earnings may be exempted if surplus of earnings is less than $0.5 per share.

1) Legal reserve

When a company incurs no loss, it may, pursuant to a resolution by a shareholders’ meeting, distribute its legal reserve by issuing new shares or by distributing cash, and only the portion of legal reserve which exceeds 25% of the capital may be distributed.

2) Special reserve

A portion of current-period earnings and undistributed prior-period earnings shall be reclassified as a special earnings reserve during earnings distribution. The amount to be reclassified should equal the current-period total net reduction of other shareholders’ equity. Similarly, a portion of undistributed prior-period earnings shall be reclassified as a special earnings reserve (and is not qualified for earnings distribution) to account for cumulative changes to other shareholders’ equity pertaining to prior periods. Amounts of subsequent reversals pertaining to the net reduction of other shareholders’ equity shall qualify for additional distributions. As of December 31, 2021 and 2020, the amount of reversal of special reserve are both $570,199 thousand.

(Continued)

41

MIN AIK TECHNOLOGY CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

3) Earnings distribution

Earnings distribution for 2020 and 2019 was decided via the general meeting of the stockholders held on August 31, 2021 and June 10, 2020, respectively. The Company decided to use legal reserve to offset accumulated deficits amounting to $163,718 and $657,323 thousand, respectively.

• (iii) Treasury shares

In 2017, the Company repurchased treasury shares at $76,800 (or 1,798 thousand shares) in order to protect the Company’ s integrity and shareholders’ equity in accordance with the requirements under section 28(2) of the Securities and Exchange Act. A total of 1,798 thousand shares were to be cancelled via the Board of Directors held on March 25, 2020. March 26, 2020 is the date of cancellation.

(p) Earnings (loss) per share

• (i) Basic earnings (loss) per share

The calculation of basic earnings (loss) per share at December 31, 2021 and 2020, was based on the profit (loss) attributable to ordinary shareholders of the Company and the weightedaverage number of ordinary shares outstanding, calculated as follows:

Profit (loss) attributable to ordinary shareholders of the Company Weighted-average number of ordinary shares at December 31 (thousand shares) Basic earnings (loss) per share (dollar) (ii) Diluted earnings per share Profit attributable to ordinary shareholders of the Company Weighted-average number of ordinary shares shares at December 31 (thousand shares) Impact on employee compensation Weight-average number of ordinary shares (diluted) at December 31 (thousand shares) Diluted earnings per share (dollar)	2021 $ 186,906 137,564 $ 1.36 2021 $ 186,906 137,564 702 138,266 $ 1.35	2020 (254,213) 137,564 (1.85)

The results of operating of fiscal year 2020 were net loss totally. The adjusted factor of the common stock was ineffective of EPS. Thus, diluted EPS was not be disclosure for the years.

(Continued)

42

MIN AIK TECHNOLOGY CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(q) Revenue from contracts with customers

(i) The details of the revenue were as follows:

Primary geographical markets Thailand Singapore China Taiwan United States Other Major products/services lines VCM EHD COVER OPTICS HDD APFA Other	2021 $ 2,487,436 753,254 432,843 225,461 127,682 132,136 $ 4,158,812 1,567,576 643,273 403,455 330,262 301,891 - 912,355 $ 4,158,812	2020
		2,514,361 216,702 526,097 110,033 418,673 103,640
		3,889,506
		1,366,123 431,631 328,873 244,810 255,518 460,405 802,146
		3,889,506

• (ii) Contract balance

Trade receibables and impairment, please refer to note 6(c).

(r) Employee compensation and directors' and supervisors' remuneration

In accordance with the articles of incorporation the Company should contribute no less than 1% of the profit as employee compensation and less than 3% as directors' and supervisors' remuneration when there is profit for the year. However, when there are still accumulated loss, the compensation should be reserved. The recipients of shares and cash may include the employees of the Company's affiliated companies who meet certain conditions.

(Continued)

43

MIN AIK TECHNOLOGY CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

For the year ended December 31, 2021, the Company estimated its employee remuneration amounting to $18,227 thousand, and directors' and supervisors' remuneration amounting to $4,565 thousand. The estimated amounts mentioned above are calculated based on the net profit before tax, excluding the remuneration to employees, directors, and supervisors of each period, multiplied by the percentage of remuneration to employees, directors and supervisors as specified in the Company's articles. These remunerations were expensed under operating costs or operating expenses during 2021. For the year ended December 31, 2020 the Company was in a loss condition, therefore there is no estimation of employee compensation and supervisors' remuneration.

(s) Non-operating income and expenses

(i) Other income

The other income for the years ended December 31, 2021 and 2020, was as follows:

Interest income Dividend income Others	2021 $ 2,159 21,768 35,798 $ 59,725	2020
		4,372 2,419 31,803
		38,594

(ii) Other gains and losses

The other gains and losses for the years ended December 31, 2021 and 2020, were as follows:

Foreign exchange gains (losses) Gain on disposal property, plant and equipment Impairment losses on property, plant and equipment and financial assets Gains (Losses) on valuation of financial assets Other	2021 $ 31,864 4,194 (30,877) (27,435) (6,828) $ (29,082)	2020 (40,854) 39,617 (130,297) 108,854 (961)
		(23,641)

(t) Financial instruments

(i) Credit risk

1) Credit risk

Credit risk is the risk of financial loss to the Group if a customer or counterparty to a financial instrument fails to meet its contractual obligations, which arises from the Group’s accounts receivable and security investments.

(Continued)

44

MIN AIK TECHNOLOGY CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

• a) Accounts receivable and other receivables

The Group has established a credit policy under which each new customer is analyzed individually for creditworthiness before the Group’ s standard payment and delivery terms and conditions are offered. The Group’ s review includes external ratings, when available, and in some cases bank references. These limits are reviewed periodically. Customers that fail to meet the Group’ s benchmark creditworthiness may transact with the Group only on a prepayment basis.

b) Investment

The credit risk exposure in bank deposits, fixed-income investment, and other financial instruments is measured and monitored by the Group’ s finance department. As the Group deals with banks and other external parties with good credit standing and with financial institutions, corporate organizations, and government agencies which are graded above investment level, the management believes that the Group does not have any compliance issues, and therefore, there is no significant credit risk.

• 2) Other information about credit risk was as follows:

• a) Exposure to credit risk

Credit risk is the risk of financial loss to the Group if a customer or counterparty to a financial instrument fails to meet its contractual obligations and arises principally from the Group’s receivables from customers and investments in debt securities. As of December 31, 2021 and 2020, the carrying amount of financial assets, which represents the maximum amount exposed to credit risk, was $2,027,059 thousand and $1,892,034 thousand, respectively. Furthermore, the bank deposits of the Company are made with various banks, all of which are with good credits, therefore, there is no significant credit risks.

• b) The Group’ s credit risk is mainly affected by the credit characteristics of each creditor. This is also an impact on credit risk from the business of the customer. As of December 31, 2021 and 2020, 85% and 72%, respectively, of the ending balance of accounts receivable arose from sales to individual customers constituting the top three customers.

(ii) Liquidity risk

Liquidity risk is a risk that the Group is unable to meet the obligations associated with its financial liabilities that are settled by delivering cash or another financial asset. The Group’s approach to managing liquidity is to ensure, as much as possible, that it always has sufficient liquidity to meet its liabilities when due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the Group’s reputation.

(Continued)

45

MIN AIK TECHNOLOGY CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

The following are the contractual maturities of financial liabilities:

• 1) Based on the date on which the Group may be required to make an early repayment and on the preparation of the financial liabilities’ undiscounted cash flows, including interest.

• 2) Other non-derivative financial liabilities’ maturity analysis prepared in accordance with the agreed repayment date.

The following table shows the contractual maturities of financial liabilities, including estimated interest payments and excluding the impact of netting agreements.

Carrying amount December 31, 2021 Non-derivative financial liabilities: Short-term and long-term borrowings $ 700,136 Accounts payable 736,027 Accounts payable–related parties 160,309 Lease liabilities 80,538 Other financial liabilities 108,556 $ 1,785,566 December 31, 2020 Non-derivative financial liabilities: Short-term and long-term borrowings $ 649,078 Accounts payable 442,067 Accounts payable–related parties 131,435 Lease liabilities 36,517 Other financial liabilities 120,287 $ 1,379,384	Contractual cash flows 706,131 736,027 160,309 82,454 108,556 1,793,477 656,959 442,067 131,435 39,393 120,287 1,390,141	Within 1 year 627,757 736,027 160,309 38,240 108,556 1,670,889 562,145 442,067 131,435 10,763 120,287 1,266,697	1~ 2 years 16,186 - - 34,250 - 50,436 16,441 - - 6,276 - 22,717	2~5 years 47,024 - - 3,330 - 50,354 47,790 - - 8,367 - 56,157	Over 5 years
					15,164 - - 6,634 -
					21,798
					30,583 - - 13,987 -
					44,570

The Group does not expect that the cash flows included in the maturity analysis could occur significantly earlier or at significantly different amounts.

(iii) Market risk

Market risk is the risk that changes in market prices, such as foreign exchange rates, interest rates, and equity prices, will affect the Group’s income or the value of its holdings of financial instruments. The objective of market risk management is to manage and control market risk exposures within acceptable parameters, while optimizing the return.

(Continued)

46

MIN AIK TECHNOLOGY CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

1) Exposure to foreign currency risk

The Group’s significant exposure to foreign currency risk was as follows:

		December 31,	December 31,	2021	December 31,	December 31,	2020
		Foreign	Exchange		Foreign	Exchange
	currency		rate	TWD	currency	rate	TWD
Financial assets
Monetary items
USD	$	67,017	27.68	1,856,476	71,252	28.48	2,029,257
SGD		5,893	20.46	121,449	5,673	21.56		122,310
Financial liabilities
Monetary items
USD		58,356	27.68	1,615,284	35,171	28.48	1,001,670
SGD		79	20.46	1,616	34	21.56		733

The Group’s exposure to foreign currency risk arises from the translation of the foreign currency exchange gains and losses on cash and cash equivalents, trade and other receivables, loans and borrowings, and trade and other payables that are denominated in foreign currency. A weakening (strengthening) of 1% of the TWD against the foreign currency as of December 31, 2021 and 2020, would have increased or decreased the net profit before tax by $3,610 thousand and $11,492 thousand, respectively. The analysis is performed on the same basis for both periods.

As the Group deals in diverse foreign currencies, gains or losses on foreign exchange were summarized as a single amount. In 2021 and 2020, the foreign exchange gain (loss), including both realized and unrealized, amounted to $31,864 thousand and $(40,854) thousand, respectively.

2) Interest rate analysis

The details of financial assets and liabilities exposed to interest rate risk were as follows:

Fixed-rate instruments: Financial assets Financial liabilities Variable-rate instruments: Financial assets Financial liabilities		Carrying	amount December 31, 2020 140,624 (243,900) (103,276) 725,889 (405,178) 320,711

(Continued)

47

MIN AIK TECHNOLOGY CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

The following sensitivity analysis is based on the exposure to interest rate risk of the derivative and non-derivative financial instruments on the reporting date. If the interest rate had increased or decreased by 0.25%, the net profit before tax would have decreased or increased by $664 thousand and $802 thousand for the years ended December 31, 2021 and 2020, respectively, assuming all other variable factors were constant. This mainly resulted from borrowings at variable interest rates.

The Group’s financial liabilities at fixed interest rates are measured using the amortized cost method. Since the change in market interest rate at the end of each reporting period had no impact on profit and loss, disclosure of the sensitivity to changes in fair value is not necessary.

3) Other market price risk

For the years ended December 31, 2021 and 2020, the sensitivity analyses for the changes in the securities price at the reporting date were performed using the same basis for the profit and loss as illustrated below:

Prices of securities at the reporting date	For the years ended December 31, 2021 2020 Other comprehensive income after tax Net income Other comprehensive income after tax Net income $ 2,033 15,610 4,689 17,269 $ (2,033) (15,610) (4,689) (17,269)	For the years ended December 31, 2021 2020 Other comprehensive income after tax Net income Other comprehensive income after tax Net income $ 2,033 15,610 4,689 17,269 $ (2,033) (15,610) (4,689) (17,269)
	2021 Other comprehensive income after tax Net income $ 2,033 15,610 $ (2,033) (15,610)
	Other comprehensive income after tax $ 2,033 $ (2,033)	Other comprehensive income after tax 4,689 (4,689)
Increasing 5% Decreasing 5%

• (iv) Fair value of financial instrument

• 1) Fair value and carrying amount

The carrying amount and fair value of the Group’ s financial assets and liabilities, including the information on fair value hierarchy were as follows; however, except as described in the following paragraphs, for financial instruments not measured at fair value whose carrying amount is reasonably close to the fair value, and lease liabilities, disclosure of fair value information is not required:

Fair value through profit or loss Fair value through other comprehensive income Financial assets carried at amortized cost Cash and cash equivalents Accounts receivable, net Accounts receivable－related parties, net Other receivables			December 31, 2021	December 31, 2021	December 31, 2021
	Book value			Fair value
			Level 1 5,745 -	Level 2 - -	Level 3 312,193 40,669	Total 317,938 40,669
	$ 317,938 $ 40,669 $ 701,961 1,077,514 7,569 240,015 $ 2,027,059

(Continued)

48

MIN AIK TECHNOLOGY CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

Financial liabilities carried at amortized cost Borrowings Accounts payable Accounts payable-related parties Lease liabilities Other financial liabilities Fair value through profit or loss Fair value through other comprehensive income Financial assets carried at amortized cost Cash and cash equivalents Accounts receivable, net Accounts receivable－related parties, net Other receivables Financial liabilities carried at amortized cost Borrowings Accounts payable Accounts payable－related parties Lease liabilities Other financial liabilities				December 31, 2021	December 31, 2021	December 31, 2021
		Book value			Fair value
				Level 1 Level 2 Level 3 December 31, 2020			Total
	700,136 736,027 160,309 80,538 230,863 $ 1,907,873	700,136 736,027 160,309 80,538 230,863
		Book value			Fair value
				Level 1 6,762 -	Level 2 - -	Level 3 338,611 93,775	Total 345,373 93,775
	$ 345,373 $ 93,775 $ 910,502 815,942 19,034 146,556 $ 1,892,034 $ 649,078 442,067 131,435 36,517 217,410 $ 1,476,507

• 2) Valuation techniques for financial instruments not measured at fair value

• a) Non-derivative financial instruments

If the quoted prices in active markets are available, the market price is established as the fair value.

A financial instrument is regarded as being quoted in an active market if quoted prices are readily and regularly available from an exchange, dealer, broker, industry group, pricing service, or regulatory agency and those prices represent actual and regularly occurring market transactions on an arm's-length basis.

(Continued)

49

MIN AIK TECHNOLOGY CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

Quoted market prices may not be indicative of the fair value of an instrument if the activity in the market is infrequent, the market is not well-established, only small volumes are traded, or bid-ask spreads are very wide. Determining whether a market is active involves judgment.

Measurements of fair value of financial instruments held by the Company are based on a valuation technique or quoted price from a competitor. Fair value measured by a valuation technique can be extrapolated from similar financial instruments, the discounted cash flow method, or other valuation technique including a model using observable market data at the reporting date.

Financial instruments without an active market are classified according to their fair value categories and attributes: equity instruments without public quoted prices, which uses the market comparable company method, estimation basis being the earnings before tax, depreciation, amortization and interest, comparable to other listed company’s multiplier. The estimation has been adjusted for the discounting effect due to the lack of market liquidity of the security.

b) Derivative financial instruments

Measurement of the fair value of derivative instruments is based on the valuation techniques generally accepted by market participants such as the discounted cash flow or option pricing models. Fair value of forward currency is usually determined by the forward currency exchange rate.

3) Reconciliation of Level 3 fair values

Opening balance, January 1, 2021 Recognized in profit or loss Recognized in other comprehensive income Ending Balance, December 31, 2021 Opening balance, January 1, 2020 Disposal Recognized in other comprehensive income Ending Balance, December 31, 2020	Fair value through profit or loss $ 338,611 (26,418) - $ 312,193 $ 229,969 108,642 - $ 338,611	Fair value through other comprehensive income 93,775 - (53,106) 40,669 102,113 - (8,338) 93,775

The above total gains and losses for the years ended December 31, 2021 and 2020 were listed under “other gains and losses” and “unrealized gains and losses from financial assets at fair value through other comprehensive income”.

(Continued)

50

MIN AIK TECHNOLOGY CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

• 4) Quantified information on significant unobservable inputs (Level 3) used in fair value measurement.

The Group’ s financial instruments that use Level 3 inputs to measure fair value including “ fair value through profit or loss-equity investments and fair value through other comprehensive income – equity investments”.

Quantified information of significant unobservable inputs was as follows:

Inter-relationship between significant Valuation Significant unobservable inputs and Item technique unobservable inputs fair value measurement Comparable Listed ‧ Enterprise Value to Revenue ‧ The higher the Company Method ( 2020:1.85~2.37) discount on market ‧ liquidity, the lower the Enterprise Value to EBITDA fair value margin(2021:21.91; 2020:16.63~21.47) ‧ The higher the ‧ multiplier, the higher Enterprise Value to EBIT the fair value. margin(2021:23.77; 2020:20.66~25.62) ‧ Price-to-Earning Ratio(2021:38.9;2020:24.99~30.46) ‧ Price-Book Ratio(2021:2.9; 2020:1.74~1.9) ‧ Lack of discount on market liquidity (2021 and 2020: 21%) Comparable ‧ Enterprise Value to Revenue ‧ The higher the Transaction Method ( 2020:1.56~1.9) discount on market ‧ liquidity, the lower the Enterprise Value to EBITDA fair value margin(2021:19.03; 2020:14.63~19.3) ‧ The higher the ‧ multiplier, the higher Enterprise Value to EBIT the fair value. margin(2021:36.26; 2020:15.13~18.45) ‧ Price-to-Earning Ratio(2021:36.26;2020:18.38~23.78) ‧ Price-Book Ratio(2021:2.47;2020:1.88~2.48) ‧ Lack of discount on market liquidity (2021 and 2020: 21%)

Financial assets measured at fair value through profit or loss – equity investments without an active market

(Continued)

51

MIN AIK TECHNOLOGY CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

• Valuation Significant

• Item technique unobservable inputs

• Financial assets at fair Comparable ‧ Enterprise Value to value through other Company Method Revenue(2021:3.58; 2020:4.75) comprehensive ‧ Price-Book(2021:0.98;2020:1.07)

• income – equity investments without ‧ Lack of discount on market liquidity an active market (2021:32%; 2020: 29%) Comparable ‧ Enterprise Value to Revenue Transaction Method (2021: 2.62; 2020:2.49) ‧ Price-Book(2021:3.44;2020:2.38) ‧ Lack of discount on market liquidity (2021:32%; 2020: 29%)

• Inter-relationship

• between significant

• unobservable inputs and fair value measurement

• ‧ The higher the discount on market liquidity, the lower the fair value

• ‧ The higher the multiplier, the higher the fair value.

• ‧ The higher the discount on market liquidity, the lower the fair value

• ‧ The higher the multiplier, the higher the fair value.

• 5) Fair value measurements in Level 3 – sensitivity analysis of reasonably possible alternative assumptions

The method to derive at the fair value of financial instruments is reasonable but could yield different outcomes when using different multipliers. For fair value measurements in Level 3, changing one or more of the assumptions to reflect reasonably possibilities of alternative assumptions would have the following effects:

December 31, 2021 Financial assets at fair value through other comprehensive income Equity investments without an active market December 31, 2020 Financial assets at fair value through other comprehensive income Equity investments without an active market	Data multiplier multiplier multiplier multiplier	Change upper or lower lower 0.5 upper 0.5 lower 0.5 upper 0.5	Other comprehensive income Favour- able Unfavour- able - (2,205) 3,438 - - (1,602) 2,589 -

The favorable and unfavorable effects represent the changes in fair value, and fair value is based on a variety of unobservable inputs calculated using a valuation technique. The analysis above only reflects the effects of changes in a single input, and it does not include the interrelationships with another input.

(Continued)

52

MIN AIK TECHNOLOGY CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(u) Financial risk management

• (i) Structure of risk management

The Group’s risk management policies are established to identify and analyze the risks faced by the Group, to set appropriate risk limits and controls, and to monitor risks and adherence to limits. Risk management policies and systems are reviewed regularly to reflect changes in market conditions and the Group’s activities. The Group, through its training and management standards and procedures, aims to develop a disciplined and constructive control environment in which all employees understand their roles and obligations.

The Group’ s Board of Directors oversees how management monitors compliance with the Group’ s risk management policies and procedures and reviews the adequacy of the risk management framework in relation to the risks faced by the Group. The Group’s Board of Directors is assisted in its oversight role by Internal Audit. Internal Audit undertakes both regular and ad hoc reviews of risk management controls and procedures, the results of which are reported to The Group’s Board of Directors.

• (ii) The Group is exposed to the following risks arising from financial instruments:

• 1) Credit risk

• 2) Liquidity risk

• 3) Market risk

This note presents information on exposure to each of the above risks and on the objectives, policies, and processes as for measuring and managing risk. For detailed information, please refer to 6(t).

(v) Capital management

The Group manages capital to safeguard the capacity to continue to operate. The management uses the asset-liability ratio to manage capital. This ratio is debt divided by assets. Debt is derived from the loans, accounts payable, expense payable and other liabilities.

As of December 31, 2021 and 2020, the Group’ s asset-liability ratios were 43% and 38%, respectively. As of December 31, 2021 and 2020, there were no changes in the Group’s approach to capital management.

(Continued)

53

MIN AIK TECHNOLOGY CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

• (w) Investing and financing activities affecting non-current cash flow

The Group’s investing and financing activities which did not affect the current cash flow in the years ended December 31, 2021 and 2020 as each, were as follows:

• (i) For acquisition of right-of-use assets, please refer to notes 6(h).

• (ii) Reconciliation of liabilities arising from financing activities were as follows:

Long-term borrowings Short-term borrowings (including current portion of long-term borrowings) Lease liabilities Total liabilities from financing activities Long-term borrowings Short-term borrowings (including current portion of long-term borrowings) Lease liabilities Total liabilities from financing activities	Non-cash changes January 1, 2021 Cash flows Changes in lease payments Others $ 90,153 (15,026) - - 558,925 66,084 - - 36,516 (68,328) 112,348 $ 685,594 (17,270) 112,348 January 1, 2020 Cash flows Foreign exchange movement and others $ 105,179 (15,026) - 605,498 (46,573) - 80,187 (60,806) 17,135 $ 790,864 (122,405) 17,135	Non-cash	changes	December 31, 2021 75,127 625,009 2 80,538 2 780,674 December 31, 2020 90,153 558,925 36,516	December 31, 2021 75,127 625,009 80,538
			Others
			- -
					780,674
				685,594

(7) Related-party transactions:

(a) Parent company and ultimate controlling company

The Company is the ultimate controlling party of the Group and its subsidiaries.

• (b) Name of related parties and relationships

The related parties who have transactions with the Group during the period covered by the the Consolidated Financial Statements are as follows:

Consolidated Financial Statements are as follows:
Name of related parties	Relationship with the Group
Min Aik Precision Industrial Co., Ltd (MAP)	An associate
MAP Plastics Ptd Ltd. (MAPP)	An associate
Ablytek Co., Ltd (Ablytek)	An associate
Amould Plastic Technologies (Suzhou) Co., Ltd (AMO)	An associate
Key management personnel	Key management personnel of the Group

(Continued)

54

MIN AIK TECHNOLOGY CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(c) Significant related-party transactions

(i) Sales

The amounts of significant sales by the Group to related parties and the resulting accounts receivable were as follows:

Associates MAPP Others related parties	Sales	Sales	Accounts receivable – related party December 31, 2021 December 31, 2020 7,376 18,749 193 285 7,569 19,034	Accounts receivable – related party December 31, 2021 December 31, 2020 7,376 18,749 193 285 7,569 19,034
	2021 $ 40,132 2,316 $ 42,448	2020
		68,676 655		18,749 285
		69,331		19,034

The credit terms were 30 to 120 days for related parties, but may be adjusted depending on the demand for funds of the related party. The general credit terms for counterparties other than related parties are about 2 to 3 months after delivery. The sales prices were not significantly different from those for third-party customers.

(ii) Purchases

The amounts of purchases by the Group from related parties were as follows:

Associates MAP Other related parties	Purchase	Purchase	Accounts payable – related party December 31, 2021 December 31, 2020 160,309 131,435 - - 160,309 131,435	Accounts payable – related party December 31, 2021 December 31, 2020 160,309 131,435 - - 160,309 131,435
	2021 $ 454,735 267 $ 455,002	2020
		463,303 324		131,435 -
		463,627		131,435

The credit terms were 90 to 120 days for related parties, but they may be adjusted depending on the demand for funds of the related party. The general credit terms for counterparties other than related parties are L/C, T/T, or 60~120 days after goods are received. The purchase price is negotiated by the parties.

(Continued)

55

MIN AIK TECHNOLOGY CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

• (iii) Service revenue

• 1) Inspection revenue

				Other accounts receivable –	Other accounts receivable –
		Amounts		related	party
				December 31,	December 31,
		2021	2020	2021	2020
Associates
MAP	$	5,363	3,852	2,571	2,374

• 2) Management service revenue

Associates MAP MAPP	Amounts 2021 2020 $ 3,325 2,752 1,622 543 $ 4,947 3,295	Accounts receivable – related party	Accounts receivable – related party
	2021 $ 3,325 1,622 $ 4,947	December 31, 2021 December 31, 2020 874 627 1,580 - 2,454 627
			627 -
			627

Service revenue, as operating revenue or other revenue, shown amounts in deduction of related expense.

(iv) Property transactions

As of December 31, 2021, the property transaction amount between the Group and associates was $1,331 thousand and the relevnat amount has been paid. There were no transactions in 2020.

(v) Loans to related parties

The loans to related parties were as follows:

Associates Less: impairment loss	December 31, 2021 $ 19,000 (19,000) $ -	December 31, 2020 19,000 (19,000) -

The Group continually to evaluates the financial and operational conditions of its investees, and decided to recognize impairment losses $19,000 thousand. The Group will continuously pay close attention to the operation of associates.

(Continued)

56

MIN AIK TECHNOLOGY CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

As of December 31, 2021 and 2020, other receivables (excluding withholding tax and impairment loss) from related parties were $1,207 thousand and $717 thousand, respectively.

The interest rate of the aforementioned loans was 3% with pledged commercial checks and plant of the associates, which totalled $60,000, as collaterals.

(d) Key management personnel compensation

2021 Short-term employee benefits $ 31,000 Post-employment benefits 294 $ 31,294	2020
	31,740 1,700
	33,440

(8) Pledged assets:

The carrying values of pledged assets were as follows:

Pledged assets	Object Bank loans and guarantee for credit line	December 31, 2021 $ 216,116	December 31, 2020
Time deposit (classified under other receivable)			142,365

(9) Significant commitments and contingencies:

(a) Unrecognized commitments of the Group were as follows:

Acquisition of property, plant and equipment	December 31, 2021 $ 17,319	December 31, 2020 763

(b) Guarantee notes issued as collateral for applying for a credit line were as follows:

Guarantee notes issued Endorsement guarantee	December 31, 2021 $ 1,061,080 $ 153,294	December 31, 2020
		995,880
		153,294

(c) Green Far has entered into a contract with Taiwan Power Company since 2012 for the purchase and sale of electricity generated by solar power. The duration of the agreement is 20 years and shall commence on the agreed date. In addition, the contract stipulates that the electricity can only be used by power plants with equipment registered under the Energy Bureau of the Ministry of Economic Affairs in a single region, violation of this term would release Taiwan Power Company of its liability of the purchase fees of the period and grant Taiwan Power Company of the right to terminate the contract immediately.

(Continued)

57

MIN AIK TECHNOLOGY CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(10) Losses Due to Major Disasters:None

(11) Subsequent Events:None

(12) Other:

A summary of current-period employee benefits, depreciation, and amortization, by function, is as follows:

By function By item	2021	2021		2020	2020	2020
	Cost of sales	Operating expenses	Total	Cost of sales	Operating expenses	Total
Employee benefits Salary Labor and health insurance Pension Remuneration of directors Others Depreciation Amortization	426,771 21,448 23,454 - 78,606 117,159 7,174	188,783 13,331 10,118 10,325 10,438 39,506 2,201	615,554 34,779 33,572 10,325 89,044 156,665 9,375	453,967 17,058 20,603 - 66,407 160,776 3,321	219,812 12,987 9,649 - 9,855 48,514 2,362	673,779 30,045 30,252 - 76,262 209,290 5,683

(13) Other disclosures:

• (a) Information on significant transactions:

The following is the information on significant transactions required by the “Regulations Governing the Preparation of Financial Reports by Securities Issuers” for the Group:

(i) Loans to other parties:

Number	Name of lender	Name of borrower	Account name	Related party	Highest balanceof financing to other parties during the period	Ending balance	Actual usage amount during the period	Range of interest rates during the period	Purposes of fund financing for the borrower	Transaction amount for business between two parties	Reasons for short- term financing	Allowance for bad debt	Collateral	Collateral	Individual funding loan limits	Maximum limit of fund financing
													Item	Value
0 0 1	The Company The Company MUS	MAA Ablytek MUM	Other receivable due from related parties Other receivable due from related parties Other receivables due from related parties	Yes Yes Yes	55,360 19,000 14,947	- 19,000 13,563	- 19,000 13,563	3% 3% 1%	Short-term financing Short-term financing Short-term financing	- - -	Working turnover Working turnover Working turnover	- 19,000 -	- Note 4 -	- 60,000 -	573,918 573,918 573,918	1,147,835 1,147,835 1,147,835

(Continued)

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MIN AIK TECHNOLOGY CO., LTD. AND ITS SUBSIDIARIES Notes to Consolidated Financial Statements

Note 1: The highest amounts were approved by the Board of Directors.

Note 2: The short term financing available for purposes shall not exceed 20% of the lending company’s net worth in the latest financial statements.

Note 3: The total amount available for lending purposes shall not exceed 40% of the lending company’s net worth in the latest financial statements.

Note 4: Ablytek used its commercial checks and plant as collaterals for the loans.

• (ii) Guarantees and endorsements for other parties:

No.	Name of guarantor	Counter-party of guarantee and endorsement	Counter-party of guarantee and endorsement	Limitation on amount of guarantees and endorsements for a specific enterprise	Highest balance for guarantees and endorsements during the period	Balance of guarantees and endorsements as of reporting date	Actual usage amount during the period	Property pledged for guarantees and endorsements (Amount)	Ratio of accumulated amounts of guarantees and/ endorsements to net worth of the latest financial statements	Maximum amount for guarantees and endorsements	Parent company endorsements/ guarantees to third parties on behalf of subsidiary	Subsidiary endorsements/ guarantees to third parties on behalf of parent company	Endorsements/ guarantees to third parties on behalf of companies in Mainland China
		Name	Relationshi p with the Company
0	The Company	Green Far	Subsidiary of the Company	Note 1	153,294	153,294	90,153	-	% 5.34	5,739,176	Y	N	N

Note 1: Except for the Company’s subsidiaries, in which the Company directly or indirectly holds 100% of their shares, the guarantee amounts given to them shall not exceed 10% of the Company’s net worth in the latest financial statements.

Note 2: The highest balance for guarantees can not exceed 2 time the Compnay's net worth in the latest financial statement.

• (iii) Securities held as of December 31, 2021 (excluding investment in subsidiaries, associates and joint ventures):

Name of holder	Category and name of security	Relationship with company	Account title		Ending balance	Ending balance		Highest	Note
				Shares/Units (thousands)	Carrying value	Percentage of ownership (%)	Fair value	Percentage of ownership (%)
The Company 〃 〃 〃 〃 〃	United 3 to 5 years trigger EMD term fund trust Archers Inc. LBO HDDisk DAS Tascent, Inc.	NO 〃 〃 〃 〃 〃	Non-current financial assets at fair value through profit and loss 〃 〃 〃 〃 Non-current financial assets at fair value through other comprehensive income	20 4,500 165 833 5,079 4,500	5,745 - - - 312,193	% - % 13.89 % 0.72 % 12.50 % 16.13 % 5.15	5,745 - - 312,193 40,669	% - % 13.89 % 0.72 % 12.50 % 18.13 % 5.15
					$ 317,938 $ 40,669

• (iv) Individual securities acquired or disposed of with accumulated amount exceeding the lower of NT$300 million or 20% of the capital stock: None

• (v) Acquisition of individual real estate with amount exceeding the lower of NT$300 million or 20% of the capital stock: None

• (vi) Disposal of individual real estate with amount exceeding the lower of NT$300 million or 20% of the capital stock: None

(Continued)

59

MIN AIK TECHNOLOGY CO., LTD. AND ITS SUBSIDIARIES Notes to Consolidated Financial Statements

(vii) Related-party transactions for purchases and sales with amounts exceeding the lower of NT$100 million or 20% of the capital stock:

Name of company	Related party	Nature of relationship		Transaction details	Transaction details	Transaction details	Transact differe	ions with terms nt from others	Notes/Accounts receivable (payable)	Notes/Accounts receivable (payable)	Note
			Purchase/Sale	Amount	Percentage of total purchases/sales	Payment terms	Unit price	Payment terms	Ending balance	Percentage of total notes/accounts receivable (payable)
The Company MAM The Company MATC The Company MAY The Company MAM GIT MAY	MAM The Company MATC The Company MAY The Company MAP MAP MAY GIT	The subsidiary held 100 percentage shares by MAS The subsidiary held 100 percentage shares by MAS The subsidiary held 80 percentage shares by Synergy The subsidiary held 80 percentage shares by Synergy The subsidiary held 100 percentage shares by Synergy The subsidiary held 100 percentage shares by Synergy The Company held 37.31 percentage shares of the invested company The Company held 37.31 percentage shares of the invested company The subsidiary held 100 percentage shares by Synergy The subsidiary held 100 percentage shares by MAT	Purchase (Sale) Purchase (Sale) Purchase (Sale) Purchase Purchase Purchase (Sale)	1,494,682 (1,494,682) 381,995 (381,995) 523,218 (523,218) 187,134 267,601 211,385 (211,385)	% 47 % (97) % 12 % (95) % 17 % (74) % 6 % 24 % 85 % (25)	Note 1 〃 〃 〃 〃 〃 〃 〃 〃 〃	- - - - - - - - - -	The general credit terms are about 2 to 4 months 〃 〃 〃 〃 〃 - 〃 〃 〃	(1,092,301) 1,092,301 (12,193) 12,193 (139,302) 139,302 (80,164) (79,704) (94,993) 94,993	(73)% 100% (1)% 73% (9)% 56% (5)% (25)% (98)% 42%	Note 2 〃 〃 〃 〃 〃 - - Note 2 〃

Note 1: Payment term given to related parties is 120 days; any further adjustment on the term will have to be agreed by both parties.

Note 2: Transactions within the Group were eliminated in the consolidated financial statements.

(Continued)

60

MIN AIK TECHNOLOGY CO., LTD. AND ITS SUBSIDIARIES Notes to Consolidated Financial Statements

(viii) Receivables from related parties with amounts exceeding the lower of NT$100 million or 20% of the capital stock:

Name of company	Counter-party	Nature of relationship	Ending balance	Turnover rate	Overdue	Overdue	Amounts received in subsequent period (Note 1)	Allowance for bad debts
					Amount	Action taken
MAM MAY	The Company The Company	The subsidiary held 100 percentage shares by MAS The subsidiary held 100 percentage shares of Synergy	1,092,301 139,302	1.54 3.66	352,310 -	Receipt according to fund status -	248,653 157,196	- -

Note 1: Until Feburary 28, 2022.

Note 2: Transactions within the Group were eliminated in the consolidated financial statements.

• (ix) Trading in derivative instruments:None

• (x) Business relationships and significant intercompany transactions:

Disclosure of the amounts exceeding the $10,000.

No.	Name of company	Name of counter-party	Nature of relationship	Intercompany transactions	Intercompany transactions	Intercompany transactions	Intercompany transactions
				Account name	Amount	Trading terms	Percentage of the consolidated net revenue or total assets
0 0 0 0 1 2 2 3 4 5	The Company 〃 〃 〃 MUS GIT GIT MAS MATC MAY	MAM GIT MAY MATC MUM MAY MAA MAM MAM MAA	1 1 1 3 3 3 3 3 3 3	Purchase Accounts payable Service revenue Purchase Accounts payable Purchase Accounts payable Other Receivables Purchase Accounts payable Prepaid expense Service revenue Processing revenue Prepaid expense	1,494,682 1,092,301 22,621 523,218 139,302 381,995 12,193 13,563 211,385 94,993 57,520 20,151 12,827 42,068	Note 3 〃 〃 〃 〃 〃 〃 Loans Note 3 〃 〃 〃 〃 〃	35.72% 21.33% 0.54% 12.50% 2.72% 9.13% 0.24% 0.26% 5.05% 1.85% 1.12% 0.48% 0.31% 0.82%

Note 1: “0” represents the parent company, and the others represent the subsidiaries.

Note 2: “1” represents the transactions from parent company to subsidiary.

• “2” represents the transactions from subsidiary to parent company.

• “3” represents the transactions between subsidiaries.

• Note 3: The purchase price paid to related parties is negotiated after considering the cost incurred. In addition, capital allocation of these related parties is decided by the Company. The netting off on accounts receivable and accounts payables concerning purchase transactions, advance payment on behalf of the associated company, and the provision of labor income is agreed upon by both parties. Payment term given to related parties is 120 days; any further adjustment on the term will have to be agreed upon by both parties.

• Note 4: Payment term given to related parties is INV 60 days; any further adjustment on the term will have to be agreed by both parties.

(Continued)

61

MIN AIK TECHNOLOGY CO., LTD. AND ITS SUBSIDIARIES Notes to Consolidated Financial Statements

(b) Information on investees:

The following is the information on investees for the year ended December 31, 2021 (excluding information on investees in Mainland China):

Name of investor	Name of investee	Location	Main businesses and products	Original investment amount	Original investment amount	Balance as of December	Balance as of December	31, 2021 Highest Carrying value Percentage of ownership	31, 2021 Highest Carrying value Percentage of ownership	Net income (losses) of investee	Share of profits/losses of investee	Note
				December 31, 2021	December 31, 2020	Shares (thousands)	Percentage of wnership	Carrying value
The Company The Company The Company The Company The Company The Company The Company The Company The Company The Company The Company MAS Synergy Good Master MUS	MAS Synergy (Note 2) MATH MAUS Good Master Green far MAP Tech. MAP Ablytek NPG (Note 2) GIT MAM MATC MUS MUM	Singapore Samoa Thailand USA Caymen Taiwan Singapore Taiwan Taiwan Samoa Taiwan Malaysia Malaysia Singapore Malaysia	Market development and customer service Holding company Manufacturing and sale of machinery components Information collection on hardware Holding company Energy Holding company Manufacturing of electronic parts and components Manufacturing and sales solar mold Holding company Sale and retail of electronic materials Sale and retail of electronic materials Manufacture and sale of hard disk drive components Holding company Manufacture and sale of hard disk drive components	353,522 883,384 433,606 968 239,894 12,000 260,791 535,942 209,885 - 5,000 333,937 406,648 239,201 347,134	353,522 791,816 433,606 968 239,894 12,000 260,791 512,804 209,885 91,568 5,000 333,937 406,648 239,201 347,134	18,564 27,322 262 30 7,490 1,200 66,913 28,728 16,229 - 500 60,000 42,107 11,800 35,996	% 100.00 % 100.00 % 100.00 % 100.00 % 100.00 % 100.00 % 46.60 % 37.31 % 27.05 % - % 100.00 % 100.00 % 80.00 % 69.41 % 100.00	1,503,238 464,626 58,338 3,482 21,707 19,066 - 671,075 - - 46,116 1,470,925 117,291 21,705 (6,824)	% 100.00 % 100.00 % 100.00 % 100.00 % 100.00 % 100.00 % 46.60 % 37.31 % 27.05 % 100.00 % 100.00 % 100.00 % 80.00 % 69.41 % 100.00	136,708 44,994 (3,191) (697) (52) 3,568 (784) 89,217 - (52,578) 37,706 136,285 (26,895) (74) (348)	136,708 49,190 (3,191) (697) 2,474 3,568 - 34,940 - (54,943) 37,706 136,285 (21,516) 2,474 (241)	Note 1 〃 〃 〃 〃 〃 - - - Note 1 〃 〃 〃 〃 〃

Note 1: Transactions within the Group were eliminated in the consolidated financial statements.

Note 2: NPG was merged into Synergy in September 2021. Synergy was the surviving company.

(Continued)

62

MIN AIK TECHNOLOGY CO., LTD. AND ITS SUBSIDIARIES Notes to Consolidated Financial Statements

(c) Information on investment in mainland China:

(i) The names of investees in Mainland China, the main businesses and products, and other information:

Name of investee	Main businesses and products	Total amount of paid-in capital	Method of investment	Accumulated outflow of investment from Taiwan as of January 1, 2020	Investm	ent flows	Accumulated outflow of investment from Taiwan as of December 31, 2021	Net income (losses) of the investee	Percentage of ownership	Investment income (losses) (Note 1)	Book value (Note 1)	Highest Percentage of ownership	Accumu- lated remittance of earnings in current period
					Outflow	Inflow
MAY MAA MAA	Manufacturing sale of machinery components and customer service Manufacture and sale of automatic devices 〃	400,857 (USD12,000 thousands) 91,270 (USD3,000 thousands) 〃	Remittance from third-region company Synergy to invest in Mainland China Remittance from third-region company Synergy to invest in Mainland China Remittance from third-region company NPG to invest in Mainland China (Note 3)	385,168 (USD11,512 thousands) 91,270 (USD3,000 thousands) -	- - -	- - -	385,168 (USD11,512 thousands) 91,270 (USD3,000 thousands) -	80,762 (14,110) (52,423)	100% 100% -%	80,762 (14,110) (52,423)	442,027 (92,685) -	100% 100% 100%	- - -

Note 1: The investment income (loss) were based on financial statements audited by the auditor of the Company.

Note 2: Transactions within the Group were eliminated in the consolidated financial statements.

Note 3: NPG was merged into Synergy in September 2021. Synergy was the surviving company. After the merge, NPG’s subsidiary MAA was transferred to Synergy.

• (ii) Limitation on investment in Mainland China:

Accumulated Investment in Mainland China as of December 31, 2021	Investment Amounts Authorized by Investment Commission, MOEA	Upper Limit on Investment
479,610	520,548	1,721,753

(iii) Significant transactions:

The significant inter-company transactions with the subsidiary in Mainland China, which were eliminated in the preparation of consolidated financial statements, are disclosed in “ Information on significant transactions” and “Business relationships and significant intercompany transactions”.

(d) Major shareholders:

The major shareholders information is based on the last business day of the end of each quarter by TDCC (Taiwan Depository & Clearing Corporation), which calculated that the total number of ordinary shares and special shares registration of non-physical securities (including treasury shares) that have been reached more than 5%. The Consolidated Company does not disclose the information of major shareholders, because there are no shareholders holding more than 5% of the shares.

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MIN AIK TECHNOLOGY CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(14) Segment information:

• (a) General information

The Group identifies its operating segments based on the decision of the chief operating decision maker (CODM). The Group’s operating segments are EMS (Electronics Manufacturing Service), Automatic Equipment Service, and Commerce Service. Except for EMS, the operating segments did not meet the quantitative threshold for individually reportable segments nor are they aggregated with other operating segments.

EMS’ s main operating activities are designing and manufacturing consumer electronics end products. Those of Automatic Equipment Service are designing and manufacturing automatic machinery for industrial use. The main operating activity of Commerce Service is trading business. Since the strategy of each segment is different, it is necessary to separate them for management.

• (b) Information about reportable segments and their measurement and reconciliations

The Group uses the internal management report that the chief operating decision maker reviews as the basis to determine resource allocation and make a performance evaluation. The internal management report includes profit before taxation, but not including any extraordinary activity and foreign exchange gain or losses because taxation, extraordinary activity, and foreign exchange gain or losses are managed on a group basis, and hence they are not able to be allocated to each reportable segment. In addition, not all reportable segments include depreciation and amortization of significant non-cash items. The reportable amount is similar to that in the report used by the chief operating decision maker.

The operating segment accounting policies are similar to those described in note 4 “ significant accounting policies” except for the recognition and measurement of pension cost, which is on a cash basis.

The Group treated intersegment sales and transfers as third-party transactions. They are measured at market price.

The Group’s segment financial information was as follows:

Revenue External revenue Intra-group revenue Total segment revenue Segment profit (loss) Segment total assets	For the years ended December 31, 2021	For the years ended December 31, 2021	For the years ended December 31, 2021	For the years ended December 31, 2021
	EMS $ 3,669,612 - $ 3,669,612 $ 185,041	Others 489,200 - 489,200 (2,389)	Adjustments and eliminations Total - 4,158,812 - - - 4,158,812 - 182,652 $ 5,120,949	Total
				4,158,812 -
				4,158,812
				182,652

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64

MIN AIK TECHNOLOGY CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

For the years ended December 31, 2020

EMS Revenue External revenue $ 3,509,661 Intra-group revenue - Total segment revenue $ 3,509,661 Segmentloss $ (200,414) Segment total assets	Others 379,845 - 379,845 (78,408)	Adjustments and eliminations Total - 3,889,506 - - - 3,889,506 - (278,822) $ 4,671,659	Total
			3,889,506 -
			3,889,506
			(278,822)

(c) Product and service information

The Group’s product revenues from exterior clients were as follows:

Product VCM EHD COVER OPTICS HDD APFA Others	2021 $ 1,567,576 643,273 403,455 330,262 301,891 - 912,355 $ 4,158,812	2020
		1,366,123 431,631 328,873 244,810 255,518 460,405 802,146
		3,889,506

(d) Geographic information

The Group's non-current assets are located in Asia, and its revenue from external clients by geographical location was as follows:

Geographic area Thiland Singapore Mainland China Taiwan USA Others	2021 $ 2,487,436 753,254 432,843 225,461 127,682 132,136 $ 4,158,812	2020
		2,514,361 216,702 526,097 110,033 418,673 103,640
		3,889,506

(Continued)

65

MIN AIK TECHNOLOGY CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(e) Major customers

Sales to individual clients constituting over 10% of total revenue in 2021 and 2020 are summarized as follows:

Western Digital Storage Western Digital (Singapore)	2021 Revenue Percentage of net sales $ 2,419,960 58 637,793 15 $ 3,057,753 73	2020	2020
	Revenue $ 2,419,960 637,793 $ 3,057,753	Revenue 2,385,764 401,342 2,787,106	Percentage of net sales
			61 10
			71