Mirle - Audit Report / Information 2021

Mirle Automation Corporation

Parent Company Only Financial Statements for the Years Ended December 31, 2021 and 2020 and Independent Auditors’ Report

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INDEPENDENT AUDITORS’ REPORT

The Board of Directors and Shareholders Mirle Automation Corporation

Opinion

We have audited the accompanying financial statements of Mirle Automation Corporation (the “Corporation”), which comprise the balance sheets as of December 31, 2021 and 2020, and the statements of comprehensive income, changes in equity and cash flows for the years then ended, and notes to the financial statements, including a summary of significant accounting policies.

In our opinion, the accompanying financial statements present fairly, in all material respects, the financial position of the Corporation as of December 31, 2021 and 2020, and its financial performance and its cash flows for the years then ended in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers.

Basis for Opinion

We conducted our audits in accordance with the Regulations Governing Auditing and Attestation of Financial Statements by Certified Public Accountants and 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 Financial Statements section of our report. We are independent of the Corporation in accordance with The Norm of Professional Ethics for Certified Public Accountant of the Republic of China, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Key Audit Matters

Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the financial statements for the year ended December 31, 2021. These matters were addressed in the context of our audit of the financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.

The key audit matter of the Corporation’s financial statements for the year ended December 31, 2021 is described as follows:

The Corporation is mainly engaged in the design, development, production and sale of medical equipment and its components, and provides after-sales services for these products. The Corporation also develops and sells software and databases used in automation equipment, and provides construction planning, installation, consulting and maintenance services for the above products.

Construction contract revenue is the Corporation’s major source of revenue (accounting for about 74% of total revenue). According to the International Financial Reporting Standards, construction contract revenue should be recognized based on the percentage of completion method. If the contract is expected to incur losses, the total loss should be recognized all at once.

Due to the fact that the contract or order may be started before the contract or order is confirmed, and the revenue will be recognized in advance according to the percentage of completion of the job, there is a risk that the amount of revenue recognized is incorrect; therefore, we considered the authenticity of the contract or order as a significant risk and deemed it as a key audit matter. Refer to Notes 4 and 21 to the financial statements for the relevant accounting policies on revenue.

The audit procedures performed in response to the aforementioned key audit matter were as follows:

We understood the internal controls of the contracts and orders, and tested the operating effectiveness of the controls.
We confirmed that the recognized construction contract revenue was based on actual contracts or orders.

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

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

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

Those charged with governance, including the supervisor, are responsible for overseeing the Corporation’s financial reporting process.

Auditors’ Responsibilities for the Audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors’ report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with the 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 financial statements.

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

Identify and assess the risks of material misstatement of the 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.
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 Corporation’s internal control.
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.
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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 Corporation’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditors’ report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditors’ report. However, future events or conditions may cause the Corporation to cease to continue as a going concern.
Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
Obtain sufficient and appropriate audit evidence regarding the financial information of entities or business activities within the Corporation to express an opinion on the financial statements. We are responsible for the direction, supervision, and performance of the audit. We remain solely responsible for our audit opinion.

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

We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.

From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the financial statements for the year ended December 31, 2021 and are therefore the key audit matters. We describe these matters in our auditors’ report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.

The engagement partners on the audits resulting in this independent auditors’ report are Mei-Chen Tsai and Ming Hui Chen.

Deloitte & Touche Taipei, Taiwan Republic of China

March 17, 2022

Notice to Readers

The accompanying financial statements are intended only to present the financial position, financial performance and cash flows in accordance with 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 financial statements are those generally applied in the Republic of China.

For the convenience of readers, the independent auditors’ report and the accompanying financial statements have been translated into English from the original Chinese version prepared and used in the Republic of China. If there is any conflict between the English version and the original Chinese version or any difference in the interpretation of the two versions, the Chinese-language independent auditors’ report and financial statements shall prevail.

MIRLE AUTOMATION CORPORATION

PARENT COMPANY ONLY BALANCE SHEETS DECEMBER 31, 2021 AND 2020 (In Thousands of New Taiwan Dollars)

ASSETS CURRENT ASSETS Cash and cash equivalents (Notes 4, 6 and 26) Financial assets at fair value through profit or loss - current (Notes 4, 7 and 26) Contract assets - current (Notes 4, 5, 21 and 27) Notes receivable (Notes 4, 9, 21 and 26) Accounts receivable (Notes 4, 9, 21 and 26) Receivables from related parties (Notes 4, 21, 26 and 27) Other receivables (Notes 4, 9 and 26) Other receivables from related parties (Notes 4, 26 and 27) Inventories (Notes 4, 5 and 10) Other current assets (Note 15) Total current assets NON-CURRENT ASSETS Financial assets at fair value through other comprehensive income - non-current (Notes 4, 8 and 26) Investments accounted for using the equity method (Notes 4 and 11) Property, plant and equipment (Notes 4, 12 and 27) Right-of-use assets (Notes 4 and 13) Intangible assets (Notes 4, 14, 27 and 28) Deferred income tax assets (Notes 4 and 23) Prepayments for equipment Refundable deposits (Note 26) Prepayments for investments (Note 15) Total non-current assets		2021 Amount % $ 2,110,140 19 100,078 1 2,692,054 25 11,813 - 210,664 2 27,730 - 97,994 1 10,730 - 1,164,415 11 71,297 1 6,496,915 60 48,697 1 1,970,543 18 1,930,797 18 250,296 2 40,348 - 7,779 - 25,046 - 88,832 1 - - 4,362,338 40		2020 Amount % $ 1,867,376 18 - - 2,495,667 24 10,982 - 180,723 2 57,292 1 47,800 - 84 - 1,276,743 13 98,726 1 6,035,393 59 39,098 1 1,951,474 19 1,742,367 17 275,610 3 35,564 - 7,779 - 2,999 - 114,772 1 10,000 - 4,179,663 41

TOTAL $ 10,859,253 100 $ 10,215,056 100

LIABILITIES AND EQUITY CURRENT LIABILITIES Short-term bank loans (Notes 16 and 26) Contract liabilities - current (Notes 4, 5, 21 and 27) Notes payable (Note 26) Accounts payable (Note 26) Accounts payable to related parties (Notes 26 and 27) Current income tax liabilities (Notes 4 and 23) Provisions - current (Notes 4 and 18) Lease liabilities - current (Notes 4, 13 and 26) Current portion of long-term debt (Notes 16 and 26) Accrued expenses and other current liabilities (Notes 17, 22, 26 and 27) Total current liabilities NON-CURRENT LIABILITIES Long-term debt (Notes 16 and 26) Lease liabilities - non-current (Notes 4, 13 and 26) Net defined benefit liabilities - non-current (Notes 4 and 19) Guarantee deposits received (Note 26) Total non-current liabilities Total liabilities EQUITY ATTRIBUTABLE TO SHAREHOLDERS OF THE CORPORATION (Notes 4 and 20) Share capital Ordinary shares Capital surplus Retained earnings Legal reserve Special reserve Unappropriated earnings Other equity Exchange differences on the translation of the financial statements of foreign operations Unrealized valuation gain (loss) on financial assets at fair value through other comprehensive income Total shareholders' equity TOTAL		2021 Amount % $ 300,000 3 1,257,822 12 51,963 - 2,352,798 22 26,676 - 156,769 1 10,688 - 25,500 - 42,724 - 708,104 7 4,933,044 45 1,188,643 11 233,936 2 302,945 3 298 - 1,725,822 16 6,658,866 61 1,955,312 18 254,964 2 902,775 8 152,050 2 1,103,145 10 (160,814) (1) (7,045) - 4,200,387 39 $ 10,859,253 100		2020
				Amount % $ 300,000 3 1,643,586 16 20,476 - 1,720,190 17 6,867 - 158,310 2 3,131 - 24,241 - 5,000 - 611,138 6 4,492,939 44 1,058,967 10 257,252 3 306,390 3 298 - 1,622,907 16 6,115,846 60 1,955,312 19 253,729 2 852,644 8 173,348 2 1,016,226 10 (144,404) (1) (7,645) - 4,099,210 40 $ 10,215,056 100

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

MIRLE AUTOMATION CORPORATION

PARENT COMPANY ONLY STATEMENTS OF COMPREHENSIVE INCOME FOR THE YEARS ENDED DECEMBER 31, 2021 AND 2020 (In Thousands of New Taiwan Dollars, Except Earnings Per Share)

NET SALES (Notes 21 and 27) OPERATING COSTS (Notes 10, 22 and 27) GROSS PROFIT (UNREALIZED) REALIZED GAIN ON TRANSACTIONS WITH SUBSIDIARIES AND ASSOCIATES REALIZED GROSS PROFIT OPERATING EXPENSES (Notes 13, 22 and 27) Selling and marketing expenses General and administrative expenses Research and development expenses Expected credit (gain) loss (Note 9) Total operating expenses OTHER OPERATING INCOME AND EXPENSES (Note 22) PROFIT FROM OPERATIONS NONOPERATING INCOME AND EXPENSES Interest income (Notes 22 and 27) Other income (Notes 14, 22 and 25) Other gains and losses (Notes 22 and 27) Finance costs (Note 22) Share of gain of subsidiaries and associates (Note 11) Foreign exchange loss, net Total non-operating income and expenses PROFIT BEFORE INCOME TAX INCOME TAX EXPENSE (Notes 4 and 23) NET PROFIT FOR THE YEAR		2021 Amount % $ 8,363,386 100 6,486,725 78 1,876,661 22 (93) - 1,876,568 22 408,372 5 425,101 5 373,714 4 (7,097) - 1,200,090 14 (148) - 676,330 8 4,818 - 16,370 - (6,226) - (11,646) - 11,852 - (81,687) (1) (66,519) (1) 609,811 7 81,915 1 527,896 6		2020
				Amount % $ 7,484,989 100 5,800,638 77 1,684,351 23 760 - 1,685,111 23 311,748 4 353,533 5 391,330 5 3,465 - 1,060,076 14 49 - 625,084 9 4,052 - 21,738 - (5,499) - (13,656) - 73,077 1 (133,141) (2) (53,429) (1) 571,655 8 58,288 1 513,367 7

(Continued)

MIRLE AUTOMATION CORPORATION

PARENT COMPANY ONLY STATEMENTS OF COMPREHENSIVE INCOME FOR THE YEARS ENDED DECEMBER 31, 2021 AND 2020 (In Thousands of New Taiwan Dollars, Except Earnings Per Share)

OTHER COMPREHENSIVE INCOME (LOSS) (Notes 19, 20 and 26) Items that will not be reclassified subsequently to profit or loss: Remeasurement of defined benefit plans Unrealized gain on investments in equity instruments at fair value through other comprehensive income Items that may be reclassified subsequently to profit or loss: Exchange differences on the translation of the financial statements of foreign operations Other comprehensive (loss) income for the year TOTAL COMPREHENSIVE INCOME FOR THE YEAR EARNINGS PER SHARE (Note 24) Basic Diluted		2021 Amount % $ (21,082) - 600 - (16,410) - (36,892) - $ 491,004 6 $ 2.70 $ 2.70		2020
				Amount % $ (11,169) - 754 - 20,544 - 10,129 - $ 523,496 7 $ 2.63 $ 2.62

The accompanying notes are an integral part of the parent company only financial statements. (Concluded)

MIRLE AUTOMATION CORPORATION

PARENT COMPANY ONLY STATEMENTS OF CHANGES IN EQUITY FOR THE YEARS ENDED DECEMBER 31, 2021 AND 2020 (In Thousands of New Taiwan Dollars)

Share Capital Number of Shares (In Thousands) Amount 195,531 $ 1,955,312 - - - - - - - - - - - - - - 195,531 1,955,312 - - - - - - - - - - - - - - - - 195,531 $ 1,955,312		Capital Surplus	Capital Surplus	Retained Earnings
	Equity Component of Convertible Bonds Issued by the Corporation $ 234,579 - - - - - - - 234,579 - - - - - - - - $ 234,579	Investments in Associates Accounted for Using the Equity Method $ 4,516 - - - (4,516 ) - - - - - - - 2 1,233 - - - $ 1,235	Treasury Shares Transactions $ 19,150 - - - - - - - 19,150 - - - - - - - - $ 19,150
Number of Shares (In Thousands) 195,531 - - - - - - - 195,531 - - - - - - - - 195,531
				Unappropriated Legal Reserve Special Reserve Earnings $ 785,624 $ 108,311 $ 1,135,806 67,020 - (67,020 ) - 65,037 (65,037 ) - - (488,828 ) - - (893 ) - - 513,367 - - (11,169) - - 502,198 852,644 173,348 1,016,226 50,131 - (50,131 ) - (21,298 ) 21,298 - - (391,062 ) - - - - - - - - 527,896 - - (21,082) - - 506,814 $ 902,775 $ 152,050 $ 1,103,145

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

MIRLE AUTOMATION CORPORATION

PARENT COMPANY ONLY STATEMENTS OF CASH FLOWS FOR THE YEARS ENDED DECEMBER 31, 2021 AND 2020 (In Thousands of New Taiwan Dollars)

CASH FLOWS FROM OPERATING ACTIVITIES Profit before income tax Adjustments for: Depreciation expenses Amortization expenses Expected credit (gain) loss Net gain on fair value change of financial assets at fair value through profit or loss Finance costs Interest income Share of gain of subsidiaries and associates Loss (gain) on disposal of property, plant and equipment Reversal of write-downs of inventories Unrealized gain on transactions with subsidiaries and associates Realized gain on transactions with subsidiaries and associates Net loss on foreign currency exchange Lease modification benefits Changes in operating assets and liabilities Contract assets Notes receivable Accounts receivable Receivable from related parties Other receivables Other receivables - related parties Inventories Other current assets Contract liabilities Notes payable Accounts payable Accounts payable to related parties Provisions Accrued expenses and other current liabilities Net defined benefit liabilities Cash generated from operations Income tax paid Net cash generated from operating activities CASH FLOWS FROM INVESTING ACTIVITIES Cash returns from capital reduction of investments in financial assets at fair value through other comprehensive income Acquisition of financial assets at fair value through profit or loss Disposal of financial assets at fair value through profit or loss Acquisition of long-term investments accounted for using the equity method	2021 $ 609,811 113,133 26,438 (7,097) (384) 11,646 (4,818) (11,852) 148 (7,820) 93 - 6,354 - (196,387) (908) (5,700) 29,562 (50,234) (380) 120,148 27,429 (385,764) 31,487 634,992 19,809 7,557 67,078 (24,527) 1,009,814 (83,456) 926,358 1,001 (420,000) 320,306 (27,550)	2020 $ 571,655 111,669 20,869 3,465 (204) 13,656 (4,052) (73,077) (49) (17,297) - (760) 65,944 (10) 132,887 28,610 (44,776) 23,305 6,700 - 424,586 11,103 181,374 (22,889) (404,595) (2,200) (3,956) (63,731) (13,226) 945,001 (36,687) 908,314 972 (530,000) 530,204 (39,280) (Continued)

MIRLE AUTOMATION CORPORATION

PARENT COMPANY ONLY STATEMENTS OF CASH FLOWS FOR THE YEARS ENDED DECEMBER 31, 2021 AND 2020 (In Thousands of New Taiwan Dollars)

Increase in prepayments for long-term investments Net cash outflow on acquisition of subsidiaries Acquisition of property, plant and equipment Disposal of property, plant and equipment Decrease in refundable deposits Increase in other receivables from related parties Decrease in other receivables from related parties Acquisition of intangible assets Increase in prepayments for equipment Interest received Dividends received from subsidiaries Net cash used in investing activities CASH FLOWS FROM FINANCING ACTIVITIES Increase in short-term bank loans Decrease in short-term bank loans Proceeds from long-term bank loans Repayments of long-term bank loans Repayment of the principal portion of lease liabilities Dividends paid Interest paid Net cash used in financing activities EFFECTS OF EXCHANGE RATE CHANGES ON THE BALANCE OF CASH HELD IN FOREIGN CURRENCIES NET INCREASE IN CASH AND CASH EQUIVALENTS CASH AND CASH EQUIVALENTS, BEGINNING OF THE YEAR CASH AND CASH EQUIVALENTS, END OF THE YEAR	2021 $ - - (245,692) 1,631 25,940 (10,266) - (31,222) (22,047) 4,858 5,065 (397,976) 320,000 (320,000) 172,400 (5,000) (24,540) (391,062) (11,611) (259,813) (25,805) 242,764 1,867,376 $ 2,110,140	2020 $ (10,000) (42,966) (320,277) 2,324 21,643 - 6,172 (17,379) (2,519) 4,028 - (397,078) 2,780,000 (3,380,000) 1,058,967 (5,000) (25,011) (488,828) (13,608) (73,480) (1,920) 435,836 1,431,540 $ 1,867,376

The accompanying notes are an integral part of the parent company only financial statements. (Concluded)

NOTES TO PARENT COMPANY ONLY FINANCIAL STATEMENTS FOR THE YEARS ENDED DECEMBER 31, 2021 AND 2020 (In Thousands of New Taiwan Dollars, Unless Stated Otherwise)

MIRLE AUTOMATION CORPORATION

1. GENERAL INFORMATION

Mirle Automation Corporation (the “Corporation”) was incorporated in Hsinchu Science Industrial Park, Republic of China (ROC) on February 2, 1989 and commenced business on March 16, 1989. The Corporation is mainly engaged in the business of automation equipment systems and its components, various parking facilities, medical equipment and the design, development, production and sale of the automation equipment used in these products, and also provides after-sales services for the products. The Corporation is also engaged in the leasing business, and develops and sells software and databases that are used in automation equipment. Moreover, the Corporation also provides construction planning, installation, consulting and maintenance services for the above products.

The Corporation’s shares were listed and have been trading on the Taiwan Stock Exchange (TWSE) since September 2001.

The financial statements are presented in the Corporation’s functional currency, the New Taiwan dollar.

2. APPROVAL OF FINANCIAL STATEMENTS

The financial statements were approved by the board of directors and authorized for issue on March 17, 2022.

3. APPLICATION OF NEW, AMENDED AND REVISED STANDARDS AND INTERPRETATIONS

a. Initial application of the amendments to the International Financial Reporting Standards (IFRS), International Accounting Standards (IAS), IFRIC Interpretations (IFRIC), and SIC Interpretations (SIC) (collectively, the “IFRSs”) endorsed and issued into effect by the Financial Supervisory Commission (FSC)

The initial application of the IFRSs endorsed and issued into effect by the FSC did not have material impact on the Corporation’s accounting policies.

b. The IFRSs endorsed by the FSC for application starting from 2022

New IFRSs “Annual Improvements to IFRS Standards 2018-2020” Amendments to IFRS 3 “Reference to the Conceptual Framework” Amendments to IAS 16 “Property, Plant and Equipment - Proceeds before Intended Use” Amendments to IAS 37 “Onerous Contracts - Cost of Fulfilling a Contract”	Effective Date Announced by International Accounting Standards Board (IASB)
	January 1, 2022 (Note 1) January 1, 2022 (Note 2) January 1, 2022 (Note 3) January 1, 2022 (Note 4)

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Note 1: The amendments to IFRS 9 will be applied prospectively to modifications and exchanges of financial liabilities that occur on or after the annual reporting periods beginning on or after January 1, 2022. The amendments to IAS 41 “Agriculture” will be applied prospectively to the fair value measurements on or after the annual reporting periods beginning on or after January 1, 2022. The amendments to IFRS 1 “First-time Adoptions of IFRSs” will be applied retrospectively for annual reporting periods beginning on or after January 1, 2022.
Note 2: The amendments are applicable to business combinations for which the acquisition date is on or after the beginning of the annual reporting period beginning on or after January 1, 2022.
Note 3: The amendments are applicable to property, plant and equipment that are brought to the location and condition necessary for them to be capable of operating in the manner intended by management on or after January 1, 2021.
Note 4: The amendments are applicable to contracts for which the entity has not yet fulfilled all its obligations on January 1, 2022.

As of the date the financial statements were authorized for issue, the Corporation has assessed that the application of the above standards and interpretations will not have a material impact on the Corporation’s financial position and financial performance.

c. New IFRSs in issued but not yet endorsed and issued into effect by the FSC

New IFRSs Amendments to IFRS 10 and IAS 28 “Sale or Contribution of Assets between An Investor and Its Associate or Joint Venture” IFRS 17 “Insurance Contracts” Amendments to IFRS 17 Amendments to IFRS 17 “Initial Application of IFRS 9 and IFRS 17 - Comparative Information” 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”	Effective Date Announced by the IASB (Note 1)
	To be determined by IASB January 1, 2023 January 1, 2023 January 1, 2023 January 1, 2023 January 1, 2023 (Note 2) January 1, 2023 (Note 3) January 1, 2023 (Note 4)

New IFRSs
Amendments to IFRS 10 and IAS 28 “Sale or Contribution of Assets
between An Investor and Its Associate or Joint Venture”

IFRS 17 “Insurance Contracts”

Amendments to IFRS 17

Amendments to IFRS 17 “Initial Application of IFRS 9 and IFRS 17 -
Comparative Information”

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”

Effective Date Announced by
the IASB (Note 1)

To be determined by IASB
January 1, 2023
January 1, 2023
January 1, 2023
January 1, 2023
January 1, 2023 (Note 2)
January 1, 2023 (Note 3)
January 1, 2023 (Note 4)

Note 1: Unless stated otherwise, the above New IFRSs are effective for annual reporting periods beginning on or after their respective effective dates.
Note 2: The amendments will be applied prospectively for annual reporting periods beginning on or after January 1, 2023.
Note 3: The amendments are applicable to changes in accounting estimates and changes in accounting policies that occur on or after the beginning of the annual reporting period beginning on or after January 1, 2023.
Note 4: Except for deferred taxes that will be recognized on January 1, 2022 for temporary differences associated with leases and decommissioning obligations, the amendments will be applied prospectively to transactions that occur on or after January 1, 2022.
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As of the date the financial statements were authorized for issue, the Corporation is continuously assessing the possible impact that the application of the above standards and interpretations will have on the Corporation’s financial position and financial performance and will disclose the relevant impact when the assessment is completed.

4. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

a. Statement of compliance

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

b. Basis of preparation

The parent company only financial statements have been prepared on the historical cost basis except for financial instruments which are measured at fair value and net defined benefit liabilities which are measured at the present value of the defined benefit obligation less the fair value of plan assets.

The fair value measurements, which are grouped into Levels 1 to 3 based on the degree to which the fair value measurement inputs are observable and based on the significance of the inputs to the fair value measurement in its entirety, are described as follows:

1) Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities;
2) Level 2 inputs are inputs other than quoted prices included within Level 1 that are observable for an asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices); and
3) Level 3 inputs are unobservable inputs for an asset or liability.

When preparing these parent company only financial statements, the Corporation used the equity method to account for its investment in subsidiaries and associates. In order for the amounts of the net profit for the year, other comprehensive income for the year and total equity in the parent company only financial statements to be the same with the amounts attributable to the shareholders of the Corporation in its consolidated financial statements, adjustments arising from the differences in accounting treatments between the parent company only basis and the consolidated basis were made to investments accounted for using the equity method, the share of profit or loss of subsidiaries and associates, the share of other comprehensive income (loss) of subsidiaries and associates and the related equity items, as appropriate, in the parent company only financial statements.

c. Classification of current and non-current assets and liabilities

Current assets include:

Assets held primarily for the purpose of trading;
Assets expected to be realized within 12 months after the reporting period; and
Cash and cash equivalents unless the asset is restricted from being exchanged or used to settle a liability for at least 12 months after the reporting period.

Current liabilities include:

Liabilities held primarily for the purpose of trading;
Liabilities due to be settled within 12 months after the reporting period; and
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Liabilities for which the Corporation does not have an unconditional right to defer settlement for at least 12 months after the reporting period.

Assets and liabilities that are not classified as current are classified as non-current.

The Corporation is engaged in the construction business, which has an operating cycle of over 1 year. The normal operating cycle applies when considering the classification of the Corporation’s construction-related assets and liabilities.

d. Foreign currencies

In preparing the Corporation’s financial statements, transactions in currencies other than the Corporation’s functional currency (i.e., foreign currencies) are recognized at the rates of exchange prevailing at the dates of the transactions.

At the end of each reporting period, monetary items denominated in foreign currencies are retranslated at the rates prevailing at that date. Exchange differences on monetary items arising from settlement or translation are recognized in profit or loss in the period in which they arise.

Non-monetary items denominated in foreign currencies that are measured at fair value are retranslated at the rates prevailing at the date when the fair value is determined. Exchange differences arising from the retranslation of non-monetary items are included in profit or loss for the period.

Non-monetary item denominated in a foreign currency and measured at historical cost is stated at the reporting currency as originally translated from the foreign currency.

For the purpose of presenting parent company only financial statements, the financial statements of the Corporation’s foreign operations (including subsidiaries and associates in other countries) that are prepared using functional currencies which are different from the currency of the Corporation are translated into the presentation currency, the New Taiwan dollar, as follows: Assets and liabilities are translated at the exchange rates prevailing at the end of the reporting period; and income and expense items are translated at the average exchange rates for the period. The resulting currency translation differences are recognized in other comprehensive income.

e. Inventories

Inventories consist of raw materials, supplies, finished goods and work in progress and are stated at the lower of cost or net realizable value. Inventory write-downs are made by item, except where it may be appropriate to group similar or related items. The net realizable value is the estimated selling price of inventories less all estimated costs of completion and costs necessary to make the sale. Inventories are recorded at the weighted-average cost on the balance sheet date.

f. Investments in subsidiaries

The Corporation uses the equity method to account for its investments in subsidiaries.

A subsidiary is an entity that is controlled by the Corporation.

Under the equity method, an investment in subsidiary is initially recognized at cost and adjusted thereafter to recognize the Corporation’s share of the profit or loss and other comprehensive income of the subsidiary. The Corporation also recognizes the changes in the Corporation’s share of equity of subsidiaries.

Changes in the Corporation’s ownership interest in a subsidiary that do not result in the Corporation losing control of the subsidiary are accounted for as equity transactions. The Corporation recognizes

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directly in equity any difference between the carrying amount of the investment and the fair value of the consideration paid or received.

Any excess of the cost of acquisition over the Corporation’s share of the net fair value of the identifiable assets and liabilities of a subsidiary that constitutes a business at the date of acquisition is recognized as goodwill, which is included within the carrying amount of the investment and is not amortized. Any excess of the Corporation’s share of the net fair value of the identifiable assets and liabilities of a subsidiary that constitutes a business over the cost of acquisition is recognized immediately in profit or loss.

The Corporation assesses its investment for any impairment by comparing the carrying amount with the estimated recoverable amount as assessed based on the investee’s financial statements as a whole. Impairment loss is recognized when the carrying amount exceeds the recoverable amount. If the recoverable amount of the investment subsequently increases, the Corporation recognizes a reversal of the impairment loss; the adjusted post-reversal carrying amount should not exceed the carrying amount that would have been recognized (net of amortization or depreciation) had no impairment loss been recognized in prior years. An impairment loss recognized on goodwill cannot be reversed in a subsequent period.

Profit or loss resulting from downstream transactions is eliminated in full only in the parent company only financial statements. Profit or loss resulting from upstream transactions and transactions between subsidiaries is recognized only in the parent company only financial statements and only to the extent of interests in the subsidiaries that are not related to the Corporation.

g. Investments in associates

An associate is an entity over which the Corporation has significant influence and which is neither a subsidiary nor an interest in a joint venture.

The Corporation uses the equity method to account for its investments in associates.

Under the equity method, investments in associates are initially recognized at cost and adjusted thereafter to recognize the Corporation’s share of the profit or loss and other comprehensive income of the associate. The Corporation also recognizes the changes in the Corporation’s share of the equity of associates.

When the Corporation subscribes for additional new shares of an associate at a percentage different from its existing ownership percentage, the resulting carrying amount of the investment differs from the amount of the Corporation’s proportionate interest in the associate. The Corporation records such a difference as an adjustment to investments with the corresponding amount charged or credited to capital surplus - changes in capital surplus from investments in associates accounted for using the equity method. If the Corporation’s ownership interest is reduced due to its additional subscription of the new shares of the associate, the proportionate amount of the gains or losses previously recognized in other comprehensive income in relation to that associate is reclassified to profit or loss on the same basis as would be required had the investee directly disposed of the related assets or liabilities. When the adjustment should be debited to capital surplus, but the capital surplus recognized from investments accounted for using the equity method is insufficient, the shortage is debited to retained earnings.

The entire carrying amount of an investment (including goodwill) is tested for impairment as a single asset by comparing its recoverable amount with its carrying amount. Any impairment loss recognized is not allocated to any asset, including goodwill, that forms part of the carrying amount of the investment. Any reversal of that impairment loss is recognized to the extent that the recoverable amount of the investment subsequently increases.

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When the Corporation transacts with its associate, profits and losses resulting from the transactions with the associate are recognized in the Corporation’s parent company only financial statements only to the extent of interests in the associate that are not related to the Corporation.

h. Property, plant and equipment

Property, plant and equipment are initially measured at cost and subsequently measured at cost less accumulated depreciation and accumulated impairment loss.

Property, plant and equipment in the course of construction are measured at cost less any recognized impairment loss. Cost includes professional fees and borrowing costs eligible for capitalization. Such assets are depreciated and classified to the appropriate categories of property, plant and equipment when completed and ready for their intended use.

Except for freehold land which is not depreciated, the depreciation of property, plant and equipment is recognized using the straight-line method. Each significant part is depreciated separately. The estimated useful lives, residual values and depreciation methods are reviewed at the end of each reporting period, with the effects of any changes in the estimates accounted for on a prospective basis.

On derecognition of an item of property, plant and equipment, the difference between the net disposal proceeds and the carrying amount of the asset is recognized in profit or loss.

i. Intangible assets
1) Intangible assets acquired separately

Intangible assets with finite useful lives that are acquired separately are initially measured at cost and subsequently measured at cost less accumulated amortization and accumulated impairment loss. Amortization is recognized on a straight-line basis. The estimated useful lives, residual values, and amortization methods are reviewed at the end of each reporting period, with the effect of any changes in the estimates accounted for on a prospective basis.

When the Corporation has a right to charge for the usage of concession infrastructure (as a consideration for providing construction services in a service concession arrangement), it recognizes this as an intangible asset. The intangible asset is subsequently measured at cost less accumulated amortization and any accumulated impairment loss.

2) Internally-generated intangible assets - research and development expenditures

Expenditures on research activities are recognized as expenses in the period in which they are incurred.

3) Derecognition of intangible assets

On derecognition of an intangible asset, the difference between the net disposal proceeds and the carrying amount of the asset is recognized in profit or loss.

j. Impairment of property, plant and equipment, right-of-use assets, intangible assets and assets related to contract costs

At the end of each reporting period, the Corporation reviews the carrying amounts of its property, plant and equipment, right-of-use assets and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss. When it is not possible to estimate the recoverable amount of an individual asset, the Corporation estimates the recoverable

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amount of the cash-generating unit to which the asset belongs. Corporate assets are allocated to the individual cash-generating units on a reasonable and consistent basis of allocation.

The recoverable amount is the higher of fair value less costs to sell and value in use. If the recoverable amount of an asset or cash-generating unit is estimated to be less than its carrying amount, the carrying amount of the asset or cash-generating unit is reduced to its recoverable amount, with the resulting impairment loss recognized in profit or loss.

Before the Corporation recognizes an impairment loss from assets related to contract costs, any impairment loss on inventories and property, plant and equipment related to the contract applicable under IFRS 15 shall be recognized in accordance with applicable standards. Then, impairment loss from the assets related to the contract costs is recognized to the extent that the carrying amount of the assets exceeds the remaining amount of consideration that the Corporation expects to receive in exchange for related goods or services less the costs which relate directly to providing those goods or services and which have not been recognized as expenses. The assets related to the contract costs are then included in the carrying amount of the cash-generating unit to which they belong for the purpose of evaluating impairment of that cash-generating unit.

When an impairment loss is subsequently reversed, the carrying amount of the corresponding asset, cash-generating unit or assets related to contract costs is increased to the revised estimate of its recoverable amount, but only to the extent of the carrying amount that would have been determined had no impairment loss been recognized on the asset, cash-generating unit or assets related to contract costs in prior years. A reversal of an impairment loss is recognized in profit or loss.

k. Financial instruments

Financial assets and financial liabilities are recognized when the Corporation becomes a party to the contractual provisions of the instruments.

Financial assets and financial liabilities are initially measured at fair value. Transaction costs that are directly attributable to the acquisition or issuance of financial assets and financial liabilities (other than financial assets and financial liabilities at fair value through profit or loss (FVTPL)) are added to or deducted from the fair value of the financial assets or financial liabilities, as appropriate, on initial recognition. Transaction costs directly attributable to the acquisition of financial assets or financial liabilities at FVTPL are recognized immediately in profit or loss.

1) Financial assets

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

a) Measurement categories

Financial assets are classified into the following categories: Financial assets at FVTPL, financial assets at amortized cost and investments in equity instruments at fair value through other comprehensive income (FVTOCI).

i. Financial assets at FVTPL

Financial assets are classified as at FVTPL when such financial assets are mandatorily classified at FVTPL.

Financial assets at FVTPL are subsequently measured at fair value, and any dividends or interest earned on such financial assets are recognized in other income and interest income, respectively; any remeasurement gains or losses on such financial assets are recognized in

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other gains or losses. Fair value is determined in the manner described in Note 26: Financial Instruments.

ii. Financial assets at amortized cost

Financial assets that meet the following conditions are subsequently measured at amortized cost:

i) The financial asset is held within a business model whose objective is to hold financial assets in order to collect contractual cash flows; and
ii) The contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

Subsequent to initial recognition, financial assets at amortized cost, including cash and cash equivalents, notes receivable, accounts receivable, other receivables and refundable deposits are measured at amortized cost, which equals the gross carrying amount determined using the effective interest method less any impairment loss. Exchange differences are recognized in profit or loss.

Interest income is calculated by applying the effective interest rate to the gross carrying amount of such a financial asset, except for:

i) Purchased or originated credit-impaired financial asset, for which interest income is calculated by applying the credit-adjusted effective interest rate to the amortized cost of such financial assets; and
ii) Financial asset that is not credit impaired on purchase or origination but has subsequently become credit impaired, for which interest income is calculated by applying the effective interest rate to the amortized cost of such financial assets in subsequent reporting periods.
A financial asset is credit impaired when one or more of the following events have occurred:
i) Significant financial difficulty of the issuer or the borrower;
ii) Breach of contract, such as a default;
iii) It is becoming probable that the borrower will enter bankruptcy or undergo a financial reorganization; or
iv) The disappearance of an active market for that financial asset because of financial difficulties.

Cash equivalents include time deposits with original maturities within 1 year from the date of acquisition, which are highly liquid, readily convertible to a known amount of cash and are subject to an insignificant risk of changes in value. These cash equivalents are held for the purpose of meeting short-term cash commitments.

iii. Investments in equity instruments at FVTOCI

On initial recognition, the Corporation may make an irrevocable election to designate investments in equity instruments as at FVTOCI. Designation as at FVTOCI is not permitted if the equity investment is held for trading or if it is contingent consideration recognized by an acquirer in a business combination.

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Investments in equity instruments at FVTOCI are subsequently measured at fair value with gains and losses arising from changes in fair value recognized in other comprehensive income and accumulated in other equity. The cumulative gain or loss will not be reclassified to profit or loss on disposal of the equity investments; instead, it will be transferred to retained earnings.

Dividends on these investments in equity instruments are recognized in profit or loss when the Corporation’s right to receive the dividends is established, unless the dividends clearly represent a recovery of part of the cost of the investment.

b) Impairment of financial assets and contract assets

The Corporation recognizes a loss allowance for expected credit losses on financial assets at amortized cost (including accounts receivable), as well as contract assets.

The Corporation always recognizes lifetime expected credit losses (ECLs) for accounts receivable and contract assets. For all other financial instruments, the Corporation recognizes lifetime ECLs when there has been a significant increase in credit risk since initial recognition. If, on the other hand, the credit risk on a financial instrument has not increased significantly since initial recognition, the Corporation measures the loss allowance for that financial instrument at an amount equal to 12-month ECLs.

Expected credit losses reflect the weighted average of credit losses with the respective risks of default occurring as the weights. Lifetime ECLs represent the expected credit losses that will result from all possible default events over the expected life of a financial instrument. In contrast, 12-month ECLs represent the portion of lifetime ECLs that is expected to result from default events on a financial instrument that are possible within 12 months after the reporting date.

For internal credit risk management purposes, the Corporation considers the following situations as indications that a financial asset is in default (without taking into account any collateral held by the Corporation):

i. Internal or external information shows that the debtor is unlikely to pay its creditors.
ii. Financial asset is more than 90 days past due unless the Corporation has reasonable and corroborative information to support a more lagged default criterion.

The impairment loss of all financial assets is recognized in profit or loss by a reduction in their carrying amounts through a loss allowance account.

c) Derecognition of financial assets

The Corporation derecognizes a financial asset only when the contractual rights to the cash flows from the asset expire or when it transfers the financial asset and substantially all the risks and rewards of ownership of the asset to another party.

On derecognition of a financial asset at amortized cost in its entirety, the difference between the asset’s carrying amount and the sum of the consideration received and receivable is recognized in profit or loss. On derecognition of an investment in an equity instrument at FVTOCI, the difference between the asset’s carrying amount and the sum of the consideration received and receivable is recognized in profit or loss, and the cumulative gain or loss which had been recognized in other comprehensive income is transferred directly to retained earnings, without recycling through profit or loss.

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2) Equity instruments

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

Equity instruments issued by the Corporation are recognized at the proceeds received, net of direct issue costs.

3) Financial liabilities
a) Subsequent measurement

All financial liabilities are measured at amortized cost using the effective interest method.

b) Derecognition of financial liabilities

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

l. Provisions

Provisions are measured at the best estimate of the discounted cash flows of the consideration required to settle the present obligation at the end of the reporting period, taking into account the risks and uncertainties surrounding the obligation.

Warranties

Provisions for the expected cost of warranty obligations to assure that products comply with agreed-upon specifications are recognized on the date of sale of the relevant products at the best estimate by the management of the Corporation of the expenditures required to settle the Corporation’s obligations.

m. Revenue recognition

The Corporation identifies contracts with customers, allocates the transaction price to the performance obligations and recognizes revenue when performance obligations are satisfied.

For contracts where the period between the date on which the Corporation transfers a promised good or service to a customer and the date on which the customer pays for that good or service is one year or less, the Corporation does not adjust the promised amount of consideration for the effects of a significant financing component.

1) Revenue from the sale of goods

Revenue from the sale of goods comes from sales of information products. The Corporation recognizes income and accounts receivable in accordance with the terms stated in the contract.

The Corporation does not recognize revenue on materials delivered to subcontractors because this delivery does not involve a transfer of control.

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2) Revenue from the rendering of services

As the Corporation provides hardware and software installation services, customers simultaneously receive and consume the benefits provided by the Corporation’s performance. Consequently, the related revenue is recognized when services are rendered.

3) Construction contract revenue

Customers control properties while the construction is in progress; thus, the Corporation recognizes revenue over time. The Corporation measures the progress on the basis of costs incurred relative to the total expected costs as there is a direct relationship between the costs incurred and the progress of satisfying the performance obligations. Contract assets are recognized during the construction and are reclassified to accounts receivable at the point at which the customer is invoiced. If the milestone payments exceed the revenue recognized to date, then the Corporation recognizes contract liabilities for the difference. Certain payments, which are retained by the customer as specified in the contract, are intended to ensure that the Corporation adequately completes all of its contractual obligations. Such retention receivables are recognized as contract assets until the Corporation satisfies its performance obligations.

When the outcome of a performance obligation cannot be reasonably measured, contract revenue is recognized only to the extent of contract costs incurred in satisfying the performance obligation for which recovery is expected.

n. Leases

At the inception of a contract, the Corporation assesses whether the contract is, or contains, a lease.

1) The Corporation as lessor

Leases are classified as finance leases whenever the terms of a lease transfer substantially all the risks and rewards of ownership to the lessee. All other leases are classified as operating leases.

Lease payments (less any lease incentives payable) from operating leases are recognized as income on a straight-line basis over the terms of the relevant leases. Initial direct costs incurred in obtaining operating leases are added to the carrying amounts of the underlying assets and recognized as expenses on a straight-line basis over the lease terms.

2) The Corporation as lessee

The Corporation recognizes right-of-use assets and lease liabilities for all leases at the commencement date of a lease, except for short-term leases and low-value asset leases accounted for by applying a recognition exemption where lease payments are recognized as expenses on a straight-line basis over the lease terms.

Right-of-use assets are initially measured at cost, which comprises the initial measurement of lease liabilities adjusted for lease payments made at or before the commencement date, plus any initial direct costs incurred and an estimate of costs needed to restore the underlying assets, and less any lease incentives received. Right-of-use assets are subsequently measured at cost less accumulated depreciation and impairment losses and adjusted for any remeasurement of the lease liabilities. Right-of-use assets are presented on a separate line in the parent company only balance sheets.

Right-of-use assets are depreciated using the straight-line method from the commencement dates to the earlier of the end of the useful lives of the right-of-use assets or the end of the lease terms.

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Lease liabilities are initially measured at the present value of the lease payments. The lease payments are discounted using the interest rate implicit in a lease, if that rate can be readily determined. If that rate cannot be readily determined, the lessee’s incremental borrowing rate will be used.

Subsequently, lease liabilities are measured at amortized cost using the effective interest method, with interest expense recognized over the lease terms. When there is a change in future lease payments resulting from a change in a lease term, the Corporation remeasures the lease liabilities with a corresponding adjustment to the right-of-use-assets. However, if the carrying amount of the right-of-use assets is reduced to zero, any remaining amount of the remeasurement is recognized in profit or loss. For a lease modification that is not accounted for as a separate lease, the Corporation accounts for the remeasurement of the lease liability by (a) decreasing the carrying amount of the right-of-use asset of lease modifications that decreased the scope of the lease, and recognizing in profit or loss any gain or loss on the partial or full termination of the lease; (b) making a corresponding adjustment to the right-of-use asset of all other lease modifications. Lease liabilities are presented on a separate line in the parent company only balance sheets.

o. Borrowing costs

Borrowing costs are recognized in profit or loss in the period in which they are incurred.

p. Government grants

Government grants are not recognized until there is reasonable assurance that the Corporation will comply with the conditions attached to them and that the grants will be received.

Government grants related to income are recognized as a reduction of the related costs and expenses or in other income on a systematic basis over the periods in which the Corporation recognizes as expenses the related costs that the grants intend to compensate. Specifically, government grants whose primary condition is that the Corporation should purchase, construct or otherwise acquire non-current assets are recognized as deferred revenue and transferred to profit or loss on a systematic and rational basis over the useful lives of the related assets.

Government grants that are receivable as compensation for expenses or losses already incurred or for the purpose of giving immediate financial support to the Corporation with no future related costs are recognized in profit or loss in the period in which they are received.

q. Employee benefits
1) Short-term employee benefits

Liabilities recognized in respect of short-term employee benefits are measured at the undiscounted amount of the benefits expected to be paid in exchange for the related services.

2) Retirement benefits

Payments to defined contribution retirement benefit plans are recognized as expenses when employees have rendered services entitling them to the contributions.

Defined benefit costs (including service cost, net interest and remeasurement) under defined benefit retirement benefit plans are determined using the projected unit credit method. Service cost (including current service cost) and net interest on the net defined benefit liabilities (assets) are recognized as employee benefits expense in the period in which they occur. Remeasurement, comprising actuarial gains and losses and the return on plan assets (excluding interest), is recognized in other comprehensive income in the period in which it occurs. Remeasurement

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recognized in other comprehensive income is reflected immediately in retained earnings and will not be reclassified to profit or loss.

Net defined benefit liabilities (assets) represent the actual deficit (surplus) in the Corporation’s defined benefit plans. Any surplus resulting from this calculation is limited to the present value of any refunds from the plans or reductions in future contributions to the plans.

3) Termination benefits

A liability for a termination benefit is recognized at the earlier of when the Corporation can no longer withdraw the offer of the termination benefit and when the Corporation recognizes any related restructuring costs.

r. Taxation

Income tax expense represents the sum of the tax currently payable and deferred tax.

1) Current tax

Income tax payable (refundable) is based on taxable profit (loss) for the year determined according to the applicable tax laws of each tax jurisdiction.

According to the Income Tax Law in the ROC, an additional tax on unappropriated earnings is provided for in the year the shareholders approve to retain earnings.

Adjustments of prior years’ tax liabilities are added to or deducted from the current year’s tax provision.

2) Deferred tax

Deferred tax is recognized on temporary differences between the carrying amounts of assets and liabilities and the corresponding tax bases used in the computation of taxable profit.

Deferred tax liabilities are generally recognized for all taxable temporary differences. Deferred tax assets are generally recognized for all deductible temporary differences, and research and development expenditures to the extent that it is probable that taxable profits will be available against which those deductible temporary differences can be utilized.

Deferred tax liabilities are recognized for taxable temporary differences associated with investments in subsidiaries and associates, except where the Corporation is able to control the reversal of the temporary difference and it is probable that the temporary difference will not reverse in the foreseeable future. Deferred tax assets arising from deductible temporary differences associated with such investments and interests are recognized only to the extent that it is probable that there will be sufficient taxable profits against which to utilize the benefits of the temporary differences and such temporary differences are expected to reverse in the foreseeable future.

The carrying amount of deferred tax assets is reviewed at the end of each reporting period and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the assets to be recovered. A previously unrecognized deferred tax asset is also reviewed at the end of each reporting period and recognized to the extent that it has become probable that future taxable profit will allow the deferred tax asset to be recovered.

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Deferred tax liabilities and assets are measured at the tax rates that are expected to apply in the period in which the liabilities are settled or the assets are realized, based on tax rates and tax laws that have been enacted or substantively enacted by the end of the reporting period. The measurement of deferred tax liabilities and assets reflects the tax consequences that would follow from the manner in which the Corporation expects, at the end of the reporting period, to recover or settle the carrying amount of its assets and liabilities.

3) Current and deferred taxes

Current and deferred taxes are recognized in profit or loss.

5. CRITICAL ACCOUNTING JUDGMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY

In the application of the Corporation’s accounting policies, management is required to make judgments, estimations, and assumptions on the carrying amounts of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered relevant. Actual results may differ from these estimates.

The Corporation considers the possible impact of the recent development of the COVID-19 in Taiwan and its economic environment implications when making its critical accounting estimates on cash flow projections, growth rate, discount rate, profitability, etc. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the period in which the estimates are revised if the revisions affect only that period or in the period of the revisions and future periods if the revisions affect both current and future periods.

Key Sources of Estimation Uncertainty

a. Write-down of inventories

The net realizable value of inventories is the estimated selling price in the ordinary course of business less the estimated costs of completion and the estimated costs necessary to make the sale. The estimation of net realizable value is based on current market conditions and historical experience in the sale of products of a similar nature. Changes in market conditions may have a material impact on the estimation of the net realizable value.

b. Construction contracts

Contract revenue and costs are recognized by reference to the stage of completion of each contract. The stage of completion of a contract is measured based on the proportion of contract costs incurred for work performed to date to the estimated total contract costs. Incentives and penalties stipulated in the contract are considered as variable consideration and should be included in the contract revenue only when it is highly probable that a significant reversal in the amount of cumulative revenue recognized will not occur when the uncertainty associated with the variable consideration is subsequently resolved.

The estimated total contract costs and contractual items are assessed and determined by management, based on the nature of the work, expected sub-contracting charges, construction periods, processes, methods, etc., for each construction contract. Changes in these estimates might affect the calculation of the percentage of completion and related profit and loss from the construction contracts. See Note 21 for the details.

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6. CASH AND CASH EQUIVALENTS

Cash on hand Demand deposits Checking accounts Cash equivalent Time deposits with original maturities within 3 months Time deposits with original maturities of more than 3 months but less than 1 year		December 31	December 31
		2021 $ 8,868 1,535,192 1,080 564,000 1,000 $ 2,110,140	2020 $ 8,700 1,716,875 737 118,179 22,885 $ 1,867,376

The market rates intervals of cash in bank at the end of the reporting period were as follows:

Bank balance	December 31
	2021 2020 0.001%-2.65% 0.001%-2.55%

7. FINANCIAL INSTRUMENTS AT FAIR VALUE THROUGH PROFIT OR LOSS

Financial assets at fair value through profit or loss (FVTPL)-current Financial assets mandatorily classified as at FVTPL Non-derivative financial assets Mutual funds		December 31	December 31
		2021 $ 100,078	2020 $ -

8. FINANCIAL ASSETS AT FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME

Non-current Investments in equity instruments FVTOCI Domestic investments Unlisted shares Foreign investments Unlisted shares		December	31
		2021 $ 48,697 $ 12,125 36,572 $ 48,697	2020 $ 39,098 $ - 39,098 $ 39,098

The Corporation invested in TIEF Fund, L.P. and Phoenix II Innovation Venture Capital Co., Ltd. for medium to long-term strategic purposes, and expects to make profit through long-term investments. Accordingly, the management elected to designate these investments in equity instruments as at FVTOCI as

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they believe that recognizing short-term fluctuations in these investments’ fair value in profit or loss would not be consistent with the Corporation’s strategy of holding these investments for long-term purposes.

9. NOTES RECEIVABLE, ACCOUNTS RECEIVABLE AND OTHER RECEIVABLES

Notes receivable Operating Less: Allowance for impairment loss Accounts receivable At amortized cost Gross carrying amount Less: Allowance for impairment loss Other receivables Business tax Others Less: Allowance for impairment loss		December 31	December 31
		2021 $ 12,012 (199) $ 11,813 $ 222,180 (10,516) $ 210,664 $ 93,956 6,977 100,933 (2,939) $ 97,994	2020 $ 11,104 (122) $ 10,982 $ 202,404 (21,681) $ 180,723 $ 43,404 7,335 50,739 (2,939) $ 47,800

a. Notes receivable and accounts receivable

The average credit period of sales of goods was 30 to 180 days.

In order to minimize credit risk, the management of the Corporation has delegated a team responsible for determining credit limits, credit approvals and other monitoring procedures to ensure that follow-up action is taken to recover overdue debt. In addition, the Corporation reviews the recoverable amount of each individual trade debt at the end of the reporting period to ensure that adequate allowance is made for possible irrecoverable amounts. In this regard, the management believes the Corporation’s credit risk was significantly reduced.

The Corporation measures the loss allowance for accounts receivable at an amount equal to lifetime ECLs. The expected credit losses on accounts receivable are estimated using a provision matrix prepared by reference to the past default experience of the customer, the customer’s current financial position, economic condition of the industry in which the customer operates, as well as the GDP forecasts and industry outlook. As the Corporation’s historical credit loss experience does not show significantly different loss patterns for different customer segments, the provision for loss allowance based on past due status is not further distinguished according to the Corporation’s different customer base.

The Corporation writes off an accounts receivable when there is evidence indicating that the debtor is in severe financial difficulty and there is no realistic prospect of recovery, e.g. when the debtor has been placed under liquidation. For accounts receivable that have been written off, the Corporation continues

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to engage in enforcement activity to attempt to recover the receivables due. Where recoveries are made, these are recognized in profit or loss.

The following table details the loss allowance of notes receivable and accounts receivable based on the Corporation’s provision matrix:

December 31, 2021

Gross carrying amount Loss allowance (Lifetime ECLs) Amortized cost December 31, 2020 Gross carrying amount Loss allowance (Lifetime ECLs) Amortized cost	Up to 30 Days $ 28,031 (369) $ 27,662 Up to 30 Days $ 70,926 (1,057) $ 69,869	31 to 90 Days $ 101,527 (1,287) $ 100,240 31 to 90 Days $ 110,961 (1,544) $ 109,417	91 to 180 Days $ 93,553 (888) $ 92,665 91 to 180 Days $ 11,023 (151) $ 10,872	Over 180 Days $ 10,081 (8,171) $ 1,910 Over 180 Days $ 20,598 (19,051) $ 1,547	Total $ 233,192 (10,715) $ 222,477 Total $ 213,508 (21,803) $ 191,705

The movements of the loss allowance of notes receivable and accounts receivable were as follows:

Balance at January 1 Add: Net remeasurement of loss allowance Less: Amounts written off Less: Net remeasurement of loss allowance Balance at December 31	For the Year Ended	For the Year Ended	December 31
		2021 $ 21,803 - (3,991) (7,097) $ 10,715	2020 $ 18,338 3,465 - - $ 21,803

As of December 31, 2021 and 2020, the amounts of loss allowance which included individually impaired notes receivable and accounts receivable of debtors in significant financial difficulty were $8,151 thousand and $19,041 thousand, respectively. The expected credit losses recognized are the carrying amounts of notes receivable and accounts receivable. The Corporation does not hold any collateral over the balance of these notes receivable and accounts receivable.

10. INVENTORIES

Finished goods Work in progress Raw materials Inventory in transit		December 31	December 31
		2021 $ 24,406 778,749 349,083 12,177 $ 1,164,415	2020 $ 27,920 1,044,963 199,815 4,045 $ 1,276,743

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The components of operating costs related to inventories are as follows:

Cost of goods sold Inventory reversed Sale of scraps	For the Year Ended December 31	For the Year Ended December 31	For the Year Ended December 31
		2021 $ 6,486,725 $ (7,820) $ (8,686)	2020 $ 5,800,638 $ (17,297) $ (643)

11. INVESTMENTS ACCOUNTED FOR USING THE EQUITY METHOD

Investments in subsidiaries Investments in associates		December 31	December 31
		2021 $ 1,936,233 34,310 $ 1,970,543	2020 $ 1,914,100 37,374 $ 1,951,474

a. Investments in subsidiaries

Unlisted shares MIRTEK (BVI) CORP. LTD. MIRLE AUTOMATION INTER CO., LTD. David Investment Co., Ltd. Factory Automation International Co., Ltd. Name of Subsidiary MIRTEK (BVI) CORP. LTD. MIRLE AUTOMATION INTER CO., LTD. David Investment Co., Ltd. Factory Automation International Co., Ltd.		December 31
		2021 2020 $ 1,736,303 $ 1,703,233 74,853 90,594 79,355 78,198 45,722 42,075 $ 1,936,233 $ 1,914,100 Proportion of Ownership and Voting Rights
		December 31
		2021 2020 100% 100% 100% 100% 99% 99% 51% 51%

On August 10, 2020, the Corporation’s board of directors approved the capital increase of US$30 thousand in MIRTEK (BVI) CORP. LTD., remitted NT$891 thousand on August 20, 2020.

On November 9, 2020, the Corporation’s board of directors approved the reinvestment in Factory Automation International Co., Ltd. for an amount not more than NT$50,000 thousand. On December 25, 2020, the Corporation remitted NT$42,075 thousand to acquire 51% interest and obtained control of the aforementioned company. For the details, please refer to Note 28 to the consolidated financial statements for the year ended December 31, 2020.

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On November 10, 2021, the Corporation’s board of directors approved the capital increase of NT$2,700 thousand in cash for 300 thousand ordinary shares of MIRLE AUTOMATION INTER CO., LTD.

Except for Factory Automation International Co., Ltd., the share of profit or loss and other comprehensive income (loss) of the investments in the associate accounted for using the equity method for the years ended December 31, 2021 and 2020 were based on the associate’s audited financial statements for the same years. Management considers that even if these financial statements are to be reviewed, they would not have a significant impact on the Corporation.

b. Investments in associates

Material associate MAIN DRIVE CORPORATION 1) Material associates		December	31
		2021 $ 34,310	2020 $ 37,374

Name of Associate MAIN DRIVE CORPORATION	Proportion of Ownership and Voting Rights
	December 31
	2021 2020 26.85% 27.61%

Refer to Table 4 “Information on Investees” for the nature of activities, principal place of business and country of incorporation of the associate.

The Corporation subscribed for 3,928 thousand common shares of MAIN DRIVE CORPORATION for NT$39,280 thousand in cash after approval was obtained from the board of directors on May 11, 2020, which increased the proportion of ownership from 20.40% to 27.61%.

The Corporation subscribed for 2,485 thousand common shares of MAIN DRIVE CORPORATION for NT$24,850 thousand in cash after approval was obtained from the board of directors on May 12, 2021, which decreased the proportion of ownership from 27.61% to 26.85%.

All the associates were accounted for using the equity method.

The summarized financial information below represents amounts shown in the associate’s financial statements prepared in accordance with IFRSs adjusted by the Corporation for equity accounting purposes.

MAIN DRIVE CORPORATION

Current assets Non-current assets Current liabilities Non-current liabilities Equity		December 31	December 31
		2021 $ 110,941 140,606 (90,001) (33,761) $ 127,785	2020 $ 85,563 133,939 (43,255) (40,880) $ 135,367 (Continued)

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Proportion of the Corporation’s ownership Equity attributable to the Corporation Carrying amount Operating revenue Net loss for the year		December 31	December 31
	2021 26.85% $ 34,310 $ 34,310 For the Year Ended		2020 27.61% $ 37,374 $ 37,374 (Concluded) December 31
		2021 $ 24,824 $ (107,582)	2020 $ 7,759 $ (84,344)

2) The share of profit or loss and other comprehensive income (loss) of the investments in the associate accounted for using the equity method for the years ended December 31, 2021 and 2020 were based on the associate’s audited financial statements for the same years.

12. PROPERTY, PLANT AND EQUIPMENT

Assets used by the Corporation Assets leased under operating leases		December 31	December 31
		2021 $ 1,930,524 273 $ 1,930,797	2020 $ 1,742,367 - $ 1,742,367

Cost Balance at January 1, 2021 Additions Disposals Transfers to assets leased under operating leases Reclassified Balance at December 31, 2021 Accumulated depreciation Balance at January 1, 2021 Depreciation expenses Disposals Transfers to assets leased under operating leases Balance at December 31, 2021 Accumulated impairment Balance at January 1, 2021 Disposals Balance at December 31, 2021 Carrying amounts at December 31, 2021				Assets U	sed by the Corporat	ion			u	Assets Leased nder Operating Leases Machinery Equipment Total $ - $ 2,331,317 - 275,545 - (41,341 ) 1,142 - - - $ 1,142 $ 2,565,521 $ - $ 584,292 228 85,336 - (39,332 ) 641 - $ 869 $ 630,296 $ - $ 4,658 - (230) $ - $ 4,428 $ 273 $ 1,930,797 (Continued)
		Freehold Land $ 179,901 - - - - $ 179,901 $ - - - - $ - $ - - $ - $ 179,901	Buildings and Ancillary Equipment $ 1,545,749 2,624 (3,514 ) - 3,602 $ 1,548,461 $ 415,416 40,034 (3,103 ) - $ 452,347 $ - - $ - $ 1,096,114	Machinery Equipment $ 234,237 30,383 (28,050 ) (1,142 ) 16,801 $ 252,229 $ 126,625 34,347 (26,455 ) (641) $ 133,876 $ 4,658 (230) $ 4,428 $ 113,925	Transportation Equipment $ 25,123 3,395 (1,958 ) - - $ 26,560 $ 13,795 3,620 (1,955 ) - $ 15,460 $ - - $ - $ 11,100	Office Equipment $ 47,168 10,898 (7,819 ) - - $ 50,247 $ 28,465 7,107 (7,819 ) - $ 27,744 $ - - $ - $ 22,503	Leased Improvements $ - 1,060 - - - $ 1,060 $ - - - - $ - $ - - $ - $ 1,060	Work In Progress $ 299,139 227,185 - - (20,403) $ 505,921 $ $ $ - - $ - $ 505,921

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Cost Balance at January 1, 2020 Additions Disposals Reclassified Balance at December 31, 2020 Accumulated depreciation Balance at January 1, 2020 Depreciation expenses Disposals Balance at December 31, 2020 Accumulated impairment Balance at January 1, 2020 and December 31, 2020 Carrying amount at December 31, 2020				Assets U	sed by the Corporat	ion			u	Assets Leased nder Operating Leases Machinery Equipment Total $ - $ 2,092,066 - 279,029 - (39,778 ) - - $ - $ 2,331,317 $ - $ 538,717 - 83,078 - (37,503) $ - $ 584,292 $ - $ 4,658 $ - $ 1,742,367 (Concluded)
		Freehold Land $ 179,901 - - - $ 179,901 $ - - - $ - $ - $ 179,901	Buildings and Ancillary Equipment $ 1,548,344 4,375 (6,970 ) - $ 1,545,749 $ 381,652 40,734 (6,970) $ 415,416 $ - $ 1,130,333	Machinery Equipment $ 238,089 21,410 (28,685 ) 3,423 $ 234,237 $ 121,501 32,345 (27,221) $ 126,625 $ 4,658 $ 102,954	Transportation Equipment $ 24,411 3,075 (2,363 ) - $ 25,123 $ 12,455 3,234 (1,894) $ 13,795 $ - $ 11,328	Office Equipment $ 44,791 4,137 (1,760 ) - $ 47,168 $ 23,109 6,765 (1,418) $ 28,456 $ - $ 18,712	Leased Improvements $ - - - - $ - $ - - - $ - $ - $ -	Work In Progress $ 56,530 246,032 - (3,423) $ 299,139 $ - - - $ - $ - $ 299,139

Operating leases are related to leases of machinery equipment with lease terms 1 year. The lessees do not have bargain purchase options to acquire the assets at the expiry of the lease periods.

The maturity analysis of lease payments receivable under operating lease payments was as follows:

Year 1		December	31
		2021 $ 2,536	2020 $ -

There was no indication of impairment on the Corporation’s property, plant and equipment for the years ended December 31, 2021 and 2020.

The above items of property, plant and equipment are depreciated on a straight-line basis over their estimated useful lives as follows:

Buildings and ancillary equipment 3-50 years Machinery equipment 2-20 years Transportation equipment 4-9 years Office equipment 2-10 years

The major component of the Corporation’s buildings comprises the main building of the plant and electromechanical power equipment, which are depreciated on a straight-line basis over their estimated useful lives of 40-50 years and 3-15 years, respectively.

13. LEASE ARRANGEMENTS

a. Right-of-use assets

Carrying amount Land Transportation equipment		December 31	December 31
		2021 $ 245,709 4,587 $ 250,296	2020 $ 271,620 3,990 $ 275,610

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Additions to right-of-use assets Depreciation charge for right-of-use assets Land Buildings Transportation equipment	For the Year Ended	For the Year Ended	December 31
		2021 $ 2,483 $ 25,911 - 1,886 $ 27,797	2020 $ 14,825 $ 27,006 453 1,132 $ 28,591

b. Lease liabilities

Carrying amount Current Non-current		December 31	December 31
		2021 $ 25,500 $ 233,936	2020 $ 24,241 $ 257,252

Range of discount rate for lease liabilities was as follows:

Land Transportation equipment	December 31
	2021 2020 1.92%-2.16% 1.92%-2.16% 1.44% 1.44%

c. Material leasing activities and terms

The Corporation leases land and transportation equipment for office space and operational uses with lease terms of 9-19 years and 2-3 years, respectively. The Corporation does not have bargain purchase options to acquire the leasehold land and transportation equipment at the end of the lease terms.

d. Other lease information

Expenses relating to short-term leases Expenses relating to low-value asset leases Total cash outflow for leases	For the Year Ended December 31	For the Year Ended December 31	For the Year Ended December 31
		2021 $ 4,811 $ 141 $ (34,942)	2020 $ 8,764 $ 2,408 $ (42,047)

The Corporation’s leases of certain buildings and office equipment qualify as short-term leases and leases of certain office equipment qualify as low-value asset leases. The Corporation has elected to apply the recognition exemption and thus, did not recognize right-of-use assets and lease liabilities for these leases.

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14. OTHER INTANGIBLE ASSETS

Licenses and Franchises Cost Balance at January 1, 2021 $ 9,389 Additions - Decrease - Balance at December 31, 2021 $ 9,389 Accumulated amortization Balance at January 1, 2021 $ 3,755 Amortization expense 470 Decrease - Balance at December 31, 2021 $ 4,225 Carrying amount at December 31, 2021 $ 5,164 Cost Balance at January 1, 2020 $ 9,389 Additions - Decrease - Balance at December 31, 2020 $ 9,389 Accumulated amortization Balance at January 1, 2020 $ 3,286 Amortization expense 469 Decrease - Balance at December 31, 2020 $ 3,755 Carrying amount at December 31, 2020 $ 5,634	Computer Software $ 42,762 4,399 (9,479) $ 37,682 $ 20,213 13,225 (9,479) $ 23,959 $ 13,723 $ 47,599 10,034 (14,871) $ 42,762 $ 20,622 14,462 (14,871) $ 20,213 $ 22,549	Others $ 31,449 26,823 - $ 58,272 $ 24,068 12,743 - $ 36,811 $ 21,461 $ 24,104 7,345 - $ 31,449 $ 18,130 5,938 - $ 24,068 $ 7,381	Total $ 83,600 31,222 (9,479) $ 105,343 $ 48,036 26,438 (9,479) $ 64,995 $ 40,348 $ 81,092 17,379 (14,871) $ 83,600 $ 42,038 20,869 (14,871) $ 48,036 $ 35,564

The Corporation signed several power purchase agreements with Taiwan Power Company that would expire in 20 years starting from the date of interconnection of the electric generators. The gains for the years ended December 31, 2021 and 2020, which were recognized as other income amounted to $2,452 thousand and $2,501 thousand, respectively.

Other intangible assets are amortized on a straight-line basis over their estimated useful lives as follows:

Licenses and Franchises 20 years Computer software 3 years Others 10 years

Other intangible assets pledged as collateral for bank borrowings are set out in Note 28.

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15. OTHER CURRENT ASSETS

Current Prepayments for construction Temporary payments Prepayments foreign travel Prepayments for rent Prepayments for software maintenance Others Non-current Prepayments for investments		December 31	December 31
		2021 $ 13,724 13,707 11,545 5,960 3,663 22,698 $ 71,297 $ -	2020 $ 37,386 22,074 8,882 5,522 5,111 19,751 $ 98,726 $ 10,000

The Corporation plans to invest in Phoenix II innovation Venture Capital Co., Ltd. and has injected capital of NT$10,000 thousand in 2020. As of December 31, 2020, the aforementioned company was approved for establishment on January 14, 2021.

16. BORROWINGS

a. Short-term bank loans

Unsecured borrowings Working capital loan		December 31	December 31
		2021 $ 300,000	2020 $ 300,000

The effective interest rate of the working capital loan was 0.51% as of December 31, 2021 and 2020.

b. Long-term bank loans

Unsecured borrowings Bank loans - expiring before February 15, 2027 Less: Current portion		December 31	December 31
		2021 $ 1,231,367 (42,724) $ 1,188,643	2020 $ 1,063,967 (5,000) $ 1,058,967

The effective interest rates of the long-term bank loans were 0.41%-0.50% and 0.41%-0.85% as of December 31, 2021 and 2020, respectively.

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17. ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES

Bonuses Outsourcing fee Salaries Purchases of equipment Compensation of employees and remuneration of directors and supervisors Others		December 31	December 31
		2021 $ 270,889 112,777 91,027 45,392 15,636 172,383 $ 708,104	2020 $ 241,837 60,950 97,611 15,539 14,658 180,543 $ 611,138

18. PROVISIONS - CURRENT

Warranties Balance at January 1 Additional provisions recognized Amount used Balance at December 31		December	31
	2021 2020 $ 10,688 $ 3,131 For the Year Ended December 31
		2021 $ 3,131 27,967 (20,410) $ 10,688	2020 $ 7,087 24,269 (28,225) $ 3,131

The provision for warranty claims represents the present value of management’s best estimate of the future outflow of economic benefits that will be required under the Corporation’s obligations for warranties under contracts for the sale of goods. The estimate has been made on the basis of historical warranty trends and may vary as a result of new materials, altered manufacturing processes or other events affecting product quality.

19. RETIREMENT BENEFIT PLANS

a. Defined contribution plan

The Corporation adopted a pension plan under the Labor Pension Act (LPA), which is a state-managed defined contribution plan. Under the LPA, the Corporation makes monthly contributions to employees’ individual pension accounts at 6% of monthly salaries and wages.

b. Defined benefit plan

The defined benefit plan adopted by the Corporation in accordance with the Labor Standards Act is operated by the government of the ROC. Pension benefits are calculated on the basis of the length of service and average monthly salaries of the 6 months before retirement. The Corporation contributes amounts equal to 11% of total monthly salaries and wages to a pension fund administered by the pension fund monitoring committee. Pension contributions are deposited in the Bank of Taiwan in the committee’s name. Before the end of each year, the Corporation assesses the balance in the pension fund. If the amount of the balance in the pension fund is inadequate to pay retirement benefits for

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employees who conform to retirement requirements in the next year, the Corporation is required to fund the difference in one appropriation that should be made before the end of March of the next year. The pension fund is managed by the Bureau of Labor Funds, Ministry of Labor (the “Bureau”); the Corporation has no right to influence the investment policy and strategy.

The amounts included in the parent company only balance sheets in respect of the Corporation’s defined benefit plans are as follows:

defined benefit plans are as follows:
Present value of defined benefit obligation Fair value of plan assets Net defined benefit liabilities		December 31
		2021 $ 559,090 (256,145) $ 302,945	2020 $ 637,231 (330,841) $ 306,390

Movements in net defined benefit liabilities were as follows:

	Present Value
	of the Defined		Net Defined
	Benefit	Fair Value of	Benefit
	Obligation	the Plan Assets	Liabilities
Balance at January 1, 2020	$ 683,329	$ (374,882)	$ 308,447
Service cost
Current service cost	3,830	-	3,830
Net interest expense (income)	5,125	(2,857)	2,268
Recognized in profit or loss	8,955	(2,857)	6,098
Remeasurement
Return on plan assets (excluding amounts
included in net interest)	-	(12,623)	(12,623)
Actuarial loss
Changes in demographic assumptions	627	-	627
Changes in financial assumptions	14,141	-	14,141
Experience adjustments	9,024	-	9,024
Recognized in other comprehensive loss
(income)	23,792	(12,623)	11,169
Contributions from the employer	-	(19,324)	(19,324)
Benefits paid	(78,845)	78,845	-
Balance at December 31, 2020	637,231	(330,841)	306,390
Service cost
Current service cost	2,518	-	2,518
Net interest expense (income)	3,186	(1,680)	1,506
Recognized in profit or loss	5,704	(1,680)	4,024
Remeasurement
Return on plan assets (excluding amounts
included in net interest)	-	(4,608)	(4,608)
Actuarial loss
Changes in demographic assumptions	14,423	-	14,423
Changes in financial assumptions	(6,267)	-	(6,267)
Experience adjustments	17,534	-	17,534
Recognized in other comprehensive loss
(income)	25,690	(4,608)	21,082
Contributions from the employer	-	(28,551)	(28,551)
Benefits paid	(109,535)	109,535	-
Balance at December 31, 2021	$ 559,090	$ (256,145)	$ 302,945

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Through the defined benefit plans under the Labor Standards Act, the Corporation is exposed to the following risks:

1) Investment risk: The plan assets are invested in domestic and foreign equity and debt securities, bank deposits, etc. The investment is conducted at the discretion of the Bureau or under the mandated management. However, in accordance with relevant regulations, the return generated by plan assets shall not be below the interest rate for a 2-year time deposit with local banks.
2) Interest risk: A decrease in the government or corporate bond interest rate will increase the present value of the defined benefit obligation; however, this will be partially offset by an increase in the return on the plans’ debt investments.
3) Salary risk: The present value of the defined benefit obligation is calculated using the future salaries of plan participants. As such, an increase in the salaries of the plan participants will increase the present value of the defined benefit obligation.

The actuarial valuations of the present value of the defined benefit obligation were carried out by qualified actuaries. The significant assumptions used for the purposes of the actuarial valuations are as follows:

Discount rate Expected rate of salary increase	December 31
	2021 2020 0.625% 0.500% 4.00% 4.00%

If possible reasonable changes in each of the significant actuarial assumptions will occur and all other assumptions will remain constant, the present value of the defined benefit obligation would increase (decrease) as follows:

Discount rate 0.25% increase 0.25% decrease Expected rate of salary increase 0.25% increase 0.25% decrease		December	31
		2021 $ (12,496) $ 12,943 $ 12,323 $ (11,968)	2020 $ (14,143) $ 14,670 $ 13,952 $ (13,533)

The sensitivity analysis presented above may not be representative of the actual changes in the present value of the defined benefit obligation as it is unlikely that changes in assumptions would occur in isolation of one another as some of the assumptions may be correlated.

Expected contributions to the plans for the next year Average duration of the defined benefit obligation		December 31	December 31
		2021 $ 8,030 9.0 years	2020 $ 10,152 9.3 years

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20. EQUITY

a. Share capital
1) Ordinary shares

Shares authorized (in thousands of shares) Shares authorized Shares issued and fully paid (in thousands of shares) Shares issued		December 31	December 31
		2021 250,000 $ 2,500,000 195,531 $ 1,955,312	2020 226,000 $ 2,260,000 195,531 $ 1,955,312

Fully paid ordinary shares, which have a par value of $10, carry one vote per share and a right to dividends.

A total of 20,000 thousand ordinary shares are reserved for the exercise of employee share options, preferred shares with share options or bonds with attached share options.

b. Capital surplus

May be used to offset a deficit, distributed as cash dividends, or transferred to share capital (1) Conversion of bonds Treasury share transactions May only be used to offset a deficit Changes in percentage of ownership interests in subsidiaries (2) Share of changes in capital surplus of associates (3)		December 31	December 31
		2021 $ 234,579 19,150 2 1,233 $ 254,964	2020 $ 234,579 19,150 - - $ 253,729

1) Such capital surplus may be used to offset a deficit; in addition, when the Corporation has no deficit, such capital surplus may be distributed as cash dividends or transferred to share capital (limited to a certain percentage of the Corporation’s capital surplus and to once a year).
2) Such capital surplus arises from the effects of changes in ownership interests in subsidiaries resulting from equity transactions other than actual disposals or acquisitions or from changes in capital surplus of subsidiaries accounted for using the equity method.
3) Pursuant to IAS 28, if the Corporation subscribes for the shares of its associates at a percentage different from its existing ownership percentage, causing the proportion of ownership to change but still having significant influence on the associate, its adjusted capital surplus may only be used to offset deficit.
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c. Retained earnings and dividends policy

The shareholders of the Corporation held their regular meeting on July 29, 2021 and in that meeting, resolved the amendments to the Corporation’s Articles of Incorporation (the “Articles”). The board of directors is authorized to adopt a special resolution to distribute dividends and bonuses in cash and a report of such distribution should be submitted in the shareholders’ meeting.

Under the dividends policy as set forth in the amended Articles, where the Corporation made a profit in a fiscal year, the profit shall be first utilized for paying taxes, offsetting losses of previous years, setting aside as legal reserve 10% of the remaining profit, setting aside or reversing a special reserve in accordance with the laws and regulations, and then any remaining profit together with any undistributed retained earnings shall be used by the Corporation’s board of directors as the basis for proposing a distribution plan, which should be resolved in the shareholders’ meeting for the distribution of dividends and bonuses to shareholders. If the surplus distribution is issued as cash dividends, the board of directors shall be authorized to distribute by special resolution and shall be reported to the shareholders' meeting.

In accordance with the Corporation’s Articles, the dividends policy is to enable the shareholders to have a share in the Corporation's profit, for continuous expansion of its business and stabilization of profitability. At least 30% of the dividends to be distributed to shareholders shall be allocated, and the total cash dividends paid in any given year should be at least 40% of total dividends distributed

Under the dividends policy as set forth in the Articles before the amendments, where the Corporation made a profit in a fiscal year, the profit shall be first utilized for paying taxes, offsetting losses of previous years, setting aside as legal reserve 10% of the remaining profit, setting aside or reversing a special reserve in accordance with the laws and regulations, and then any remaining profit together with any undistributed retained earnings shall be used by the Corporation’s board of directors as the basis for proposing a distribution plan, which should be resolved in the shareholders’ meeting for the distribution of dividends and bonuses to shareholders.

In accordance with the Corporation’s Articles, the dividends policy is to enable the shareholders to have a share in the Corporation's profit, for continuous expansion of its business and stabilization of profitability. The total cash dividends paid in any given year should be at least 40% of total dividends distributed.

For the policies on the distribution of compensation of employees and remuneration of directors and supervisors after the amendment, refer to compensation of employees and remuneration of directors and supervisors in Note 22(h).

An appropriation of earnings to a legal reserve shall be made until the legal reserve equals the Corporation’s paid-in capital. The legal reserve may be used to offset deficits. If the Corporation has no deficit and the legal reserve has exceeded 25% of the Corporation’s paid-in capital, the excess may be transferred to capital or distributed in cash.

The appropriations of earnings for 2020 and 2019, which were approved in the shareholders’ meetings on July 29, 2021 and June 12, 2020, respectively, were as follows:

Legal reserve Special reserve Cash dividends Cash dividends per share (NT$)	Appropriation of Earnings	Appropriation of Earnings	Appropriation of Earnings
	For the Year Ended		December 31
		2020 $ 50,131 $ (21,298) $ 391,062 $ 2.0	2019 $ 67,020 $ 65,037 $ 488,828 $ 2.5

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The appropriation of earnings for 2021, which were proposed by the Corporation’s board of directors on March 17, 2022, were as follows:

	For the Year	For the Year
		Ended
	December 31,
		2021
Legal reserve	$	50,681
Special reserve	$	15,809
Cash dividends	$	430,169
Cash dividends per share (NT$)	$	2.2

The above appropriation for cash dividends has been resolved by the Corporation’s board of directors; the other proposed appropriations will be resolved by the shareholders in their meeting to be held on June 9, 2022.

d. Special reserve

Balance at January 1 (Reversals) appropriations in respect of (Reversal of) debits to other equity items Balance at December 31	For the Year Ended December 31	For the Year Ended December 31
		2021 2020 $ 173,348 $ 108,311 (21,298) 65,037 $ 152,050 $ 173,348

e. Other equity items
1) Exchange differences on the translation of the financial statements of foreign operations

Balance at January 1 Recognized for the year Exchange differences on the translation of the financial statements of foreign operations Other comprehensive (loss) income recognized for the year Balance at December 31	For the Year Ended	For the Year Ended	December 31
		2021 $ (144,404) (16,410) (16,410) $ (160,814)	2020 $ (164,948) 20,544 20,544 $ (144,404)

2) Unrealized valuation gain (loss) on financial assets at FVTOCI

Balance at January 1 Recognized for the year Unrealized gain (loss) - equity instruments Other comprehensive income (loss) recognized for the year Balance at December 31	For the Year Ended December 31	For the Year Ended December 31	For the Year Ended December 31
		2021 $ (7,645) 600 600 $ (7,045)	2020 $ (8,399) 754 754 $ (7,645)

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21. REVENUE

a. b.	Revenue from contracts with customers Construction contract revenue Revenue from the sale of goods Revenue from the rendering of services Contract balances Notes receivable (Note 9) Accounts receivable (Note 9) Receivables from related parties (Note 27) Contract assets - current Construction contracts Contract liabilities - current Construction contracts Disaggregation of customer contract revenue For the year ended December 31, 2021 Type of goods or services Construction contract revenue Revenue from the sale of goods Revenue from the rendering of services For the year ended December 31, 2020 Type of goods or services Construction contract revenue Revenue from the sale of goods Revenue from the rendering of services	For the Year Ended December 31 2021 2020 $ 6,168,055 $ 4,387,475 1,721,657 2,719,496 473,674 378,018 $ 8,363,386 $ 7,484,989 December 31, 2021 December 31, 2020 January 1, 2020 $ 11,813 $ 10,982 $ 39,158 $ 210,664 $ 180,723 $ 220,231 $ 27,730 $ 57,292 $ 53,086 $ 2,692,054 $ 2,495,667 $ 2,637,698 $ 1,257,822 $ 1,643,586 $ 1,462,212 Reportable Segments	For the Year Ended December 31 2021 2020 $ 6,168,055 $ 4,387,475 1,721,657 2,719,496 473,674 378,018 $ 8,363,386 $ 7,484,989 December 31, 2021 December 31, 2020 January 1, 2020 $ 11,813 $ 10,982 $ 39,158 $ 210,664 $ 180,723 $ 220,231 $ 27,730 $ 57,292 $ 53,086 $ 2,692,054 $ 2,495,667 $ 2,637,698 $ 1,257,822 $ 1,643,586 $ 1,462,212 Reportable Segments	For the Year Ended December 31	For the Year Ended December 31
					2020 $ 4,387,475 2,719,496 378,018 $ 7,484,989 January 1, 2020 $ 39,158 $ 220,231 $ 53,086 $ 2,637,698 $ 1,462,212
			Logistics System Segment Information and Controller Segment $ 5,809,587 $ 358,468 85,646 1,636,011 65,035 408,639 $ 5,960,268 $ 2,403,118 $ 3,699,544 $ 687,931 84,715 2,634,781 65,582 312,436 $ 3,849,841 $ 3,635,148		Total $ 6,168,055 1,721,657 473,674 $ 8,363,386 $ 4,387,475 2,719,496 378,018 $ 7,484,989

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22. NET PROFIT (LOSS) FROM CONTINUING OPERATIONS

a. Other operating income and expenses

For the Year Ended December 31	For the Year Ended December 31	For the Year Ended December 31
2021 2020 $ (148) $ 49 For the Year Ended December 31
2021 2020 $ 2,411 $ 3,267 2,407 785 $ 4,818 $ 4,052 For the Year Ended December 31
2021 2020 $ 10,367 $ 12,533 2,452 2,501 2,050 76 1,501 6,628 $ 16,370 $ 21,738 For the Year Ended December 31
2021 2020 $ 384 $ 204 (6,610) (5,703) $ (6,226) $ (5,499) For the Year Ended December 31
	2021 $ 6,196 5,450 $ 11,646	2020 $ 7,792 5,864 $ 13,656

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f. Depreciation and amortization

Property, plant and equipment Right-of-use assets Other intangible assets An analysis of depreciation by function Operating costs Operating expense An analysis of amortization by function Operating costs Selling and marketing expense General and administrative expense Research and development expense Other expense Employee benefits expense Post-employment benefits (Note 19) Defined contribution plans Defined benefit plans Termination benefits Other employee benefits Total employee benefits expense An analysis of employee benefits expense by function Operating costs Operating expenses	For the Year Ended	For the Year Ended	For the Year Ended	December 31
	2021 $ 85,336 27,797 26,438 $ 139,571 $ 34,436 78,697 $ 113,133 $ 7,224 1,711 13,000 4,033 470 $ 26,438 For the Year Ended			2020 $ 83,078 28,591 20,869 $ 132,538 $ 32,978 78,691 $ 111,669 $ 5,233 1,521 8,615 5,031 469 $ 20,869 December 31
		2021 $ 47,434 4,024 51,458 3,704 1,390,837 $ 1,445,999 $ 795,387 650,612 $ 1,445,999	2020 $ 43,486 6,098 49,584 4,347 1,206,550 $ 1,260,481 $ 611,127 649,354 $ 1,260,481

g. Employee benefits expense

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h. Employees’ compensation and remuneration of directors and supervisors

According to the Corporation’s Articles, the Corporation accrues compensation of employees and remuneration of directors and supervisors at rates of no less than 1% and no higher than 2%, respectively, of net profit before income tax, compensation of employees, and remuneration of directors and supervisors. The compensation of employees and the remuneration of directors and supervisors for the years ended December 31, 2021 and 2020, which were approved by the Corporation’s board of directors on March 17, 2022 and March 18, 2021, respectively, are as follows:

Accrual rate

Compensation of employees Remuneration of directors and supervisors Amount Compensation of employees Remuneration of directors and supervisors	For the Year Ended December 31	For the Year Ended December 31	For the Year Ended December 31
	2021 2020 1% 1% 1.5% 1.5% For the Year Ended December 31
		2021 $ 6,254 $ 9,382	2020 $ 5,863 $ 8,795

If there is a change in the amounts after the annual parent company only financial statements are authorized for issue, the differences are recorded as a change in the accounting estimate.

There is no difference between the actual amounts of compensation of employees and remuneration of directors and supervisors paid and the amounts recognized in the parent company only financial statements for the years ended December 31, 2020 and 2019.

Information on the compensation of employees and remuneration of directors and supervisors resolved by the Corporation’s board of directors is available at the Market Observation Post System website of the Taiwan Stock Exchange.

23. INCOME TAXES RELATING TO CONTINUING OPERATIONS

a. Income tax recognized in profit or loss

Major components of income tax expense are as follows:

Current tax In respect of the current year Adjustments for prior year Deferred tax In respect of the current year Income tax expense recognized in profit or loss	For the Year Ended December 31	For the Year Ended December 31	For the Year Ended December 31
		2021 $ 117,952 (36,037) - $ 81,915	2020 $ 78,304 (20,016) - $ 58,288

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A reconciliation of accounting profit and income tax expense is as follows:

b. c.	Profit before tax from continuing operations Income tax expense calculated at the statutory rate Nondeductible expenses in determining taxable income Item that should be reduce Unrecognized temporary differences Adjustments for prior years’ tax Income tax expense recognized in profit or loss Current tax liabilities Current tax liabilities Income tax payable Deferred tax assets The movements of deferred tax assets were as follows: For the year ended December 31, 2021 Opening Balance Deferred tax assets Temporary differences Associate $ 7,779 For the year ended December 31, 2020 Opening Balance Deferred tax assets Temporary differences Associate $ 7,779	For the Year Ended	For the Year Ended	December 31
			2021 2020 $ 609,811 $ 571,655 121,962 114,331 4,471 5,858 (2,386) (28,183) (6,095) (13,702) (36,037) (20,016) $ 81,915 $ 58,288 December 31
		2021 $ 156,769 Recognized in Profit or Loss $ - Recognized in Profit or Loss $ -		2020 $ 158,310 Closing Balance $ 7,779 Closing Balance $ 7,779

d. Deductible temporary differences, unused loss carryforwards and unused investment credits for which no deferred tax assets have been recognized in the parent company only balance sheets

Deductible temporary differences Deferred revenue		December	31
		2021 $ 382	2020 $ 364

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e. The aggregate amount of temporary differences associated with investments for which deferred tax liabilities have not been recognized

As of December 31, 2021 and 2020, the taxable temporary differences associated with investments in subsidiaries and branches for which no deferred tax liabilities have been recognized were $141,387 thousand and $139,017 thousand, respectively.

f. Income tax assessments

The income tax returns through 2019 have been assessed by the tax authorities.

24. EARNINGS PER SHARE

EARNINGS PER SHARE
Basic earnings per share Diluted earnings per share	Unit: NT$ Per Share For the Year Ended December 31
		2021 $ 2.70 $ 2.70	2020 $ 2.63 $ 2.62

The earnings and weighted average number of ordinary shares outstanding used in the computation of earnings per share were as follows:

Net Profit for the Year

Profit for the year attributable to shareholders of the Corporation Earnings used in the computation of basic earnings per share Effect of potentially dilutive ordinary shares Compensation of employees Earnings used in the computation of diluted earnings per share	For the Year Ended	For the Year Ended	December 31
		2021 $ 527,896 527,896 - $ 527,896	2020 $ 513,367 513,367 - $ 513,367

The weighted average number of ordinary shares outstanding (in thousands of shares) was as follows:

Weighted average number of ordinary shares used in the computation of basic earnings per share Effect of potentially dilutive ordinary shares Compensation of employees Weighted average number of ordinary shares used in the computation of diluted earnings per share	For the Year Ended	For the Year Ended	December 31
		2021 195,531 169 195,700	2020 195,531 199 195,730

The Corporation may settle the compensation of employees in cash or shares; therefore, the Corporation assumes that the entire amount of the compensation will be settled in shares, and the resulting potential shares are included in the weighted average number of shares outstanding used in the computation of diluted earnings per share, as the effect is dilutive. Such dilutive effect of the potential shares is included in the computation of diluted earnings per share until the number of shares to be distributed to employees is resolved in the following year.

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25. GOVERNMENT GRANTS

The Corporation applied for subsidies from the Ministry of Economic Affairs under “Salary and Working Capital of Businesses with Financial Difficulties in the Manufacturing and Technical Service Industries Affected by Severe Pneumonia with Novel Pathogens” in 2020, which was available for application from April 2020 to June 2020. The amount of subsidies allocated to the Corporation, recognized as government grant income, was NT$67,635 thousand, and as of December 31, 2020, the decrease in the accumulated salary expenses decreased recognized was NT$57,285 thousand and other income recognized was NT$10,350 thousand.

The Corporation participated in a project proposed by the Ministry of Economic Affairs called “Smart Measuring Technology Applied to 3D Curved Glass Manufacturing Process”, with the Institute for Information Industry in June 2020. The amount of subsidy provided by the Ministry of Economic Affairs was NT$12,893 thousand. As of June 30, 2021, the case has been closed, and the accumulated government grant income recognized was NT$12,419 thousand.

26. FINANCIAL INSTRUMENTS

a. Fair value of financial instruments not measured at fair value

The management believes that except for the financial assets at amortized cost whose fair values cannot be reliably measured, the carrying amounts of the other financial assets and financial liabilities approximate their fair values.

b. Fair value of financial instruments measured at fair value on a recurring basis
1) Fair value hierarchy

December 31, 2021

Financial assets at FVTPL Mutual funds Financial assets at FVTOCI Investments in equity instruments Domestic unlisted shares Foreign unlisted shares December 31, 2020 Financial assets at FVTOCI Investments in equity instruments Foreign unlisted shares	Level 1 $ 100,078 $ - - $ - Level 1 $ -	Level 2 $ - $ - - $ - Level 2 $ -	Level 3 $ - $ 12,125 35,572 $ 48,697 Level 3 $ 39,098	Total $ 100,078
				$ 12,125 35,572
				$ 48,697
				Total $ 39,098

There were no transfers between Levels 1 and 2 in the current and prior years.

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2) Reconciliation of Level 3 fair value measurements of financial instruments

Financial Assets Balance at January 1 Recognized in other comprehensive income Purchases Cash returns Balance at December 31		Financial Assets at FVTOCI	Financial Assets at FVTOCI
		Equity Instruments
		2021 $ 39,098 600 10,000 (1,001) $ 48,697	2020 $ 39,316 754 - (972) 39,098

3) Valuation techniques and inputs applied for Level 3 fair value measurement

The fair value of unlisted shares is estimated based on the financial statements of the issuer of such shares or based on the observable price of stock of comparable companies at the end of the period. The estimated fair value is further evaluated by comparing the financial position and financial performance of the issuer with the comparable companies and by applying the implied value multiplier to the estimated price at the balance sheet date.

c. Categories of financial instruments

Financial assets
FVTPL
Mandatorily classified as at FVTPL

Amortized cost
Cash and cash equivalents
Notes receivable (including related parties)
Accounts receivable (including related parties)
Other receivables (including related parties)
Refundable deposits
Financial assets at FVTOCI
Equity instruments
Financial liabilities
Amortized cost
Short-term bank loans
Notes payable
Accounts payable (including related parties)
Accrued expenses and other current liabilities
Long-term bank loans (including current portion)
Lease liabilities
Guarantee deposits received

December 31

2021
2020
$ 100,078
$ -
2,110,140
1,867,376
12,288
11,067
237,919
237,930
108,724
47,884
88,832
114,772
48,697
39,098
300,000
300,000
51,963
20,476
2,379,474
1,727,057
708,104
611,138
1,231,367
1,063,967
259,436
281,493
298
298

d. Financial risk management objectives and policies

The Corporation’s financial risk management objectives are to manage market risk, credit risk and liquidity risk relating to the operations of the Corporation. To reduce the related financial risks, the Corporation is committed to identify, evaluate and avoid the uncertainty of the market to reduce the potentially negative effects of market volatility on the Corporation’s financial performance.

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The Corporation’s important financial activities were reviewed by the management in accordance with relevant regulations and the internal control system. During the execution of the financial plans, the Corporation strictly complied with the relevant financial operating procedures.

1) Market risk

The Corporation’s activities exposed it primarily to the financial risks of changes in foreign currency exchange rates (see (a) below) and interest rates (see (b) below).

There had been no change to the Corporation’s exposure to market risks or the manner in which these risks were managed and measured.

a) Foreign currency risk

Several subsidiaries of the Corporation have foreign currency denominated sales and purchases, which expose the Corporation to foreign currency risk.

The Corporation’s main operating activities are foreign currency denominated sales and purchases, which expose the Corporation to the risk of exchange rate changes.

The carrying amounts of the Corporation’s foreign currency denominated monetary assets and monetary liabilities are set out in Note 30.

Sensitivity analysis

The Corporation is mainly exposed to the USD, RMB and the JPY.

The following table details the Corporation’s sensitivity to a 5% increase and decrease in the New Taiwan dollar (i.e., the functional currency) against the relevant foreign currencies. The sensitivity analysis included outstanding foreign currency denominated monetary items and adjusted their translation at the end of the reporting period for a 5% change in foreign currency rates. The sensitivity analysis included cash and cash equivalents, accounts receivable, accounts payable, and short-term bank loans. A negative number below indicates a decrease in pre-tax profit associated with the New Taiwan dollar strengthening 5% against the relevant currency. For a 5% weakening of the New Taiwan dollar against the relevant currency, there would be an equal and opposite impact on pre-tax profit and the balances below would be positive.

Profit or loss	USD Impact For the Year Ended December 31 2021 2020 $ (106,726) $ (109,335)	CNY Impact For the Year Ended December 31 2021 2020 $ (3,689) $ (8,686)	JPY Impact
			For the Year Ended December 31
			2021 2020 $ 362 $ (412)

The Corporation’s sensitivity to exchange rates decreased during the year, mainly due to the decrease in the exchange rate of the USD and the decrease in time deposits denominated in RMB.

b) Interest rate risk

The Corporation is exposed to interest rate risk because the Corporation borrow funds at both fixed and floating interest rates. The risk is managed by the Corporation by maintaining an appropriate mix of fixed and floating rate borrowings and using interest rate swap contracts and forward interest rate contracts. Hedging activities are evaluated regularly to align with interest

48 -

rate views and defined risk appetites ensuring the most cost-effective hedging strategies are applied.

The carrying amounts of the Corporation’s financial assets and financial liabilities with exposure to interest rates at the end of the year were as follows:

Fair value interest rate risk Financial assets Financial liabilities Cash flow interest rate risk Financial assets Financial liabilities	December 31
	2021 2020 $ 565,000 $ 141,064 - - 1,535,192 1,716,875 1,790,803 1,645,460

Sensitivity analysis

The sensitivity analysis below was determined based on the Corporation’s exposure to interest rates for both derivative and non-derivative instruments at the end of the reporting period. For floating rate liabilities, the analysis was prepared assuming the amount of each liability outstanding at the end of the reporting period was outstanding for the whole year. A 5% increase or decrease is used when reporting interest rate risk internally to key management personnel and represents management’s assessment of the reasonably possible change in interest rates.

If interest rates had been 1% higher and all other variables were held constant, the Corporation’s pre-tax profit for the years ended December 31, 2021 and 2020 would have decreased by $17,908 thousand and $16,455 thousand, respectively, which was mainly attributable to the Corporation’s exposure to cash flow interest rate risk on its variable-rate borrowings.

The Corporation’s sensitivity to interest rate changed during the current year mainly due to the increase in variable-rate debt instruments.

2) Credit risk

Credit risk refers to the risk that a counterparty will default on its contractual obligations, resulting in a financial loss to the Corporation. As at the end of the reporting period, the Corporation’s maximum exposure to credit risk, which will cause a financial loss to the Corporation due to failure of counterparties to discharge an obligation and financial guarantees provided by the Corporation arises from the carrying amount of the respective recognized financial assets as stated in the parent company only balance sheets.

The Corporation’s concentration of credit risk was 51.87% and 53.43% of total accounts receivable as of December 31, 2021 and 2020, respectively, which was attributable to the Corporation’s ten largest customers in the property construction business segment. The concentration of credit risk of the remaining accounts receivable was not significant.

3) Liquidity risk

The Corporation manages liquidity risk by monitoring and maintaining a level of cash and cash equivalents deemed adequate to finance the Corporation’s operations and mitigate the effects of fluctuations in cash flows. In addition, management monitors the utilization of bank borrowings and ensures compliance with loan covenants.

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a) Liquidity and interest rate risk tables for non-derivative financial liabilities

The following tables detail the Corporation’s remaining contractual maturities for its non-derivative financial liabilities with agreed upon repayment periods. The tables have been drawn up based on the undiscounted cash flows of financial liabilities from the earliest date on which the Corporation can be required to pay. The tables include both interest and principal cash flows.

Specifically, bank loans with a repayment on demand clause were included in the earliest time band regardless of the probability of the banks choosing to exercise their rights. The maturity dates for other non-derivative financial liabilities were based on the agreed upon repayment dates.

To the extent that interest flows are at floating rates, the undiscounted amount was derived from the interest rate curve at the end of the reporting period.

December 31, 2021

On Demand or Less than 1 Month Non-interest bearing (Note) $ 449,151 Lease liabilities 2,491 Variable interest rate liabilities - $ 451,642	1-3 Months 3 Months to 1 Year $ 809,464 $ 296,919 4,982 22,420 6,705 336,019 $ 821,151 $ 655,358	1+ Years $ 55,606 277,285 1,188,643
		$ 1,521,534

Further information on the maturity analysis of the above financial liabilities was as follows:

Lease liabilities Variable interest rate liabilities December 31, 2020	Less than 1 Year $ 29,893 342,724 $ 372,617	1-5 Years $ 127,066 1,172,619 $ 1,299,685	5-10 Years $ 96,859 16,024 $ 112,883	10-15 Years $ 53,360 - $ 53,360	15-20 Years $ - - $ -	20+ Years $ - -
						$ -

On Demand or Less than 1 Month Non-interest bearing (Note) $ 264,096 Lease liabilities 2,383 Variable interest rate liabilities - $ 266,479	1-3 Months 3 Months to 1 Year $ 547,847 $ 205,625 4,693 21,117 - 305,000 $ 552,540 $ 531,742	1+ Years $ 43,485 287,104 1,058,967
		$ 1,389,556

Further information on the maturity analysis of the above financial liabilities was as follows:

Lease liabilities Variable interest rate liabilities	Less than 1 Year $ 28,193 305,000 $ 333,193	1-5 Years $ 112,625 992,004 $ 1,104,629	5-10 Years $ 112,935 66,963 $ 179,898	10-15 Years $ 61,544 - $ 61,544	15-20 Years $ - - $ -	20+ Years $ - -
						$ -

Note: Non-interest bearing liabilities do not include estimated accounts payable.

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b) Financing facilities

Long-term bank loan facilities: Amount used Amount unused Short-term bank loan facilities: Amount used Amount unused		December 31	December 31
		2021 $ 1,231,367 1,473,113 $ 2,704,480 $ 1,166,812 3,787,748 $ 4,954,560	2020 $ 1,063,967 1,649,313 $ 2,713,280 $ 988,825 4,520,666 $ 5,509,491

27. TRANSACTIONS WITH RELATED PARTIES

The Corporation and related parties are disclosed below:

a. Related party name and relationship

Related Party Name

Relationship with the Corporation

MIRLE AUTOMATION TECHNOLOGY (SHANGHAI) CO., LTD. MIRLE AUTOMATION (KUNSHAN) CO., LTD. IOT SERVICES INFORMATION SYSTEM CORPORATION

VAN QUOC INFORMATION TECHNOLOGY CONSULTING SERVICES CO., LTD. MIRLE AUTOMATION INTER CORP. LTD. FACTORY AUTOMATION INTERNATIONAL CO., LTD. MAIN DRIVE CORPORATION MIRLE AUTOMATION TECHNOLOGY (GUANGDONG) CO., LTD. I-MEI FOODS CO., LTD. I-MEI JISHENG CO., LTD. I-MEI BIOMEDICINE CO., LTD. I-MEI MACROBIOTICS CO., LTD. JIANXUE RESTAURANT CO., LTD. I-MEI STORE COMPANY LTD. I-ME-I INFORMATION TECHNOLOGY CO., LTD.

OPENFIND INFORMATION TECHNOLOGY INC. SHINE MEI FOODS MARKETING & DISTRIBUTION CO., LTD. SOUTH POLE FOODS CO., LTD. GOLDEN SADDLE MACHINERY CO., LTD.

Subsidiary

Subsidiary Subsidiary

Subsidiary

Subsidiary Subsidiary

Associate Associate

Key management personnel Subsidiary of key management personnel Subsidiary of key management personnel Subsidiary of key management personnel Subsidiary of key management personnel Substantive related party Substantive related party

Substantive related party

Substantive related party Substantive related party

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b. Operating transactions

For the Year Ended	For the Year Ended	December 31
	2021 2020 $ 92,776 $ 120,665 21,455 2,453 6,006 6,689 1,998 7,547 123 463 $ 122,358 $ 137,817 $ 46,568 $ 5,909 16,555 5,181 $ 63,123 $ 11,090 $ 12,992 $ 18,780 60 - $ 13,052 $ 18,780 $ 40,192 $ 28,573 645 871 165 79 $ 41,002 $ 29,523 $ - $ 117 $ - $ 16 Purchase Price
For the Year Ended December 31
	2021 $ -	2020 $ 90

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Disposal of property, plant and equipment

Related Party Category/Name Subsidiaries		Proceeds For the Year Ended December 31 2021 2020 $ 1,519 $ 2,677		Gain on Disposal	Gain on Disposal
				For the Year Ended December 31
		2021 $ 1,519		2021 $ 110	2020 $ 898

Lease arrangements the Corporation is lessor
Lease arrangements the Corporation is lessor under operating leases

The Corporation leases out plant, parking spaces and dormitories to its associate, MAIN DRIVE CORPORATION, under operating leases with lease terms of 1 year. As of December 31, 2021, the balance of the operating lease receivable was $2,536 thousand. The amounts of lease income recognized for the year ended December 31, 2021 was as follows:

Related Party Category Associates MAIN DRIVE CORPORATION Acquisition of other assets Related Party Category/Name Line Items Substantive related parties Other intangible assets	For the Year Ended December 31, 2021 $ 1,811 Purchase Price
	For the Year Ended December 31, 2021 $ 79

The products sold to related parties and purchases from related parties have no other suitable counterparties to compare with, so the collection and payment term are the same as general customers. Manufacturing expenses and operating expenses of the Corporation and related parties are outsourcing fee, management and support expenses, which are based on the prices decided by both parties and payment terms.

The transaction price and payment terms of the equipment and the other intangible assets acquired and disposed of by the Corporation and its related parties are determined based on negotiation between the parties of the transaction. The related gain on disposal is recognized as unrealized gain.

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c. Balances on the balance sheet date

Contract assets Subsidiaries Substantive related parties Contract liabilities Subsidiaries Accounts receivable from related parties Subsidiaries Mirle Automation Technology (Shanghai) Co., Ltd. Other Substantive related parties Key management personnel Associate Subsidiaries of key management personnel Notes receivable from related parties Substantive related parties Key management personnel Other receivables from related parties Subsidiaries Mirle Automation Technology (Shanghai) Co., Ltd. Mirle Automation (Kunshan) Co., Ltd. Associates Accounts payable to related parties Subsidiaries Mirle Automation Technology (Shanghai) Co., Ltd. IOT Services Information System Corporation Factory Automation International Co., Ltd. Associates MAIN DRIVE CORPORATION		December	31
		2021 $ 32,631 - $ 32,631 $ 2,184 $ 23,293 2,354 1,551 50 7 - $ 27,255 $ 255 220 $ 475 $ 10,342 8 380 $ 10,730 $ 5,974 4,734 2,835 13,133 $ 26,676	2020 $ 17,206 1,000 $ 18,206 $ 51 $ 49,231 6,068 1,693 172 - 43 $ 57,207 $ - 85 $ 85 $ 53 31 - $ 84 $ - 1,589 - 5,278 $ 6,867 (Continued)

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Accrued expenses and other current liabilities Subsidiaries Associates Substantive related parties		December	31
		2021 $ 45,922 63 - $ 45,985	2020 $ 43,771 83 25 $ 43,879 (Concluded)

No collateral is provided for the outstanding payables to related parties, which will be paid off by cash. The outstanding accounts receivable from related parties are unsecured. For the years ended December 31, 2021 and 2020, no impairment losses were recognized for the accounts receivable from related parties.

d. Remuneration of key management personnel

The remuneration of directors and the key management personnel for the years ended December 31, 2021 and 2020 was as follows:

Short-term employee benefits Post-employment benefits	For the Year Ended December 31	For the Year Ended December 31	For the Year Ended December 31
		2021 $ 63,567 1,708 $ 65,275	2020 $ 54,992 1,983 $ 56,975

The remuneration of directors and key executives, as determined by the remuneration committee, is based on the performance of individuals and market trends.

28. ASSETS PLEDGED AS COLLATERAL OR FOR SECURITY

The following assets had been pledged or mortgaged as collateral mainly for bank borrowings:

Other intangible assets		December	31
		2021 $ 5,164	2020 $ 5,634

29. SIGNIFICANT CONTINGENT LIABILITIES AND UNRECOGNIZED COMMITMENTS

The Corporation’s significant commitments and contingencies as of December 31, 2021 were as follows:

The balance of endorsements/guarantees provided by the Corporation for Mirle Automation Technology (Shanghai) Co., Ltd., Mirle Automation (Kunshan) Co., Ltd. and Mirle Automation Inter Corp. Ltd. were $470,560 thousand, $110,720 thousand and $83,040 thousand, respectively.

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30. SIGNIFICANT ASSETS AND LIABILITIES DENOMINATED IN FOREIGN CURRENCIES

The Corporation’s significant financial assets and liabilities denominated in foreign currencies aggregated by the foreign currencies other than the functional currencies of the Corporation and the related exchange rates between the foreign currencies and the respective functional currencies were as follows:

(In thousands of foreign currencies)

Financial assets Monetary items USD JPY RMB EUR Non-monetary items Investments accounted for using the equity method USD THB Financial liabilities Monetary items USD JPY RMB EUR CAD Financial assets Monetary items USD JPY RMB EUR Non-monetary items Investments accounted for using the equity method USD THB Financial liabilities Monetary items USD JPY RMB EUR CAD	December 31, 2021
	Foreign Currency Exchange Rate $ 83,563 27.68 (USD:NTD) 155,405 0.2405 (JPY:NTD) 22,853 4.344 (RMB:NTD) 325 31.32 (EUR:NTD) 62,828 27.68 (USD:NTD) 89,677 0.8347 (THB:NTD) 6,449 27.68 (USD:NTD) 185,531 0.2405 (JPY:NTD) 5,870 4.344 (RMB:NTD) 376 31.32 (EUR:NTD) 1 21.62 (CAD:NTD) December 31, 2020
	Foreign Currency Exchange Rate $ 78,360 28.480 (USD:NTD) 199,920 0.2763 (JPY:NTD) 43,954 4.377 (RMB:NTD) 582 35.02 (EUR:NTD) 59,891 28.480 (USD:NTD) 94,803 0.9556 (THB:NTD) 1,580 28.480 (USD:NTD) 170,073 0.2763 (JPY:NTD) 4,264 4.377 (RMB:NTD) 81 35.02 (EUR:NTD) 9 22.35 (CAD:NTD)

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For the years ended December 31, 2021 and 2020, realized and unrealized net foreign exchange losses were $81,687 thousand and $133,141 thousand, respectively. It is impractical to disclose net foreign exchange gains (losses) by each significant foreign currency due to the variety of the foreign currency transactions and functional currencies of the Corporation.

31. SEPARATELY DISCLOSED ITEMS

a. Information on significant transactions:
1) Financing provided to others (Table 1)
2) Endorsements/guarantees provided (Table 2)
3) Marketable securities held (excluding investments in subsidiaries, associates and joint ventures) (Table 3)
4) Marketable securities acquired or disposed of at costs or prices of at least NT$300 million or 20% of the paid-in capital (None)
5) Acquisition of individual real estate at costs of at least NT$300 million or 20% of the paid-in capital (None)
6) Disposal of individual real estate at prices of at least NT$300 million or 20% of the paid-in capital (None)
7) Total purchases from or sales to related parties amounting to at least NT$100 million or 20% of the paid-in capital (None)
8) Receivables from related parties amounting to at least NT$100 million or 20% of the paid-in capital (None)
9) Trading in derivative instruments (None)
b. Information on investees (Table 4)
c. Information on investments in mainland China
1) Information on any investee company in mainland China, showing the name, principal business activities, paid-in capital, method of investment, inward and outward remittance of funds, ownership percentage, net income of investees, investment income or loss, carrying amount of the investment at the end of the year, repatriations of investment income, and limit on the amount of investment in the mainland China area (Table 5)
2) Any of the following significant transactions with investee companies in mainland China, either directly or indirectly through a third party, and their prices, payment terms, and unrealized gains or losses (Table 6)
d. Information of major shareholders: list all shareholders with ownership of 5% or greater showing the name of the shareholder, the number of shares owned, and percentage of ownership of each shareholder (Table 7)
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TABLE 1

MIRLE AUTOMATION CORPORATION

FINANCING PROVIDED TO OTHERS FOR THE YEAR ENDED DECEMBER 31, 2021 (In Thousands of New Taiwan Dollars, Unless Stated Otherwise)

No.	Lender	Borrower	Financial Statement Account	Related Party	Highest Balance for the Period (Note 4)	Ending Balance (Note 4)	Actual Amount Borrowed	Interest Rate (%)	Nature of Financing (Note 2)	Business Transaction Amount	Reasons for Short-term Financing	Allowance for Impairment Loss	Collateral	Collateral	Financing Limit for Each Borrower (Note 1)	Aggregate Financing Limit (Note 3)	Note
													Item	Value
0 1	MIRLE AUTOMATION CORPORATION Mirle Automation Technology (Shanghai) Co., Ltd.	Mirle Automation (Kunshan) Co., Ltd. Mirle Automation (Kunshan) Co., Ltd.	Other receivables from related parties Other receivables from related parties	Yes Yes	$ 286,704 347,520	$ 286,704 347,520	$ - 76,841	3 -	2 2	$ - -	Working capital Working capital	$ - -	- -	$ - -	$ 1,680,154 506,710	$ 1,680,154 506,710	- -

Note 1: The total amount of financing provided to others shall not exceed 40% of the net value of the Corporation’s net value based on its most recent audited or reviewed financial statements. However, foreign companies in which the Corporation directly and indirectly held 100% of the voting shares are not subject to the preceding restrictions in the preceding requirement, but their total amount of financing provided to others shall not exceed 40% of the Corporation’s net value.

Note 2: Nature of financing:

For business
For short-term financing

Note 3: The total amount of financing provided to others shall not exceed 40% of the Corporation’s net value in its most recent audited or reviewed financial statements. The total amount of financing provided by Mirle Automation Technology (Shanghai) Co., Ltd. to others shall not exceed 40% of its net value in its most recent audited or reviewed financial statements.

Note 4: Financing limit approved by the board of directors.

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TABLE 2

MIRLE AUTOMATION CORPORATION

ENDORSEMENTS/GUARANTEES PROVIDED FOR THE YEAR ENDED DECEMBER 31, 2021 (In Thousands of New Taiwan Dollars, Unless Stated Otherwise)

Endorser/Guarantor	Endorsee/Guarantee	Endorsee/Guarantee	Limit on Endorsement/ Guarantee Given on Behalf of Each Party (Note 3)	Maximum Amount Endorsed/ Guaranteed During the Period	Outstanding Endorsement/ Guarantee at the End of the Period	Actual Amount Borrowed	Amount Endorsed/ Guaranteed by Collateral	Ratio of Accumulated Endorsement/ Guarantee to Net Equity in Latest Financial Statements (%)	Aggregate Endorsement/ Guarantee Limit (Note 3)	Endorsement/ Guarantee Given by Parent on Behalf of Subsidiaries	Endorsement/ Guarantee Given by Subsidiaries on Behalf of Parent	Endorsement/ Guarantee Given on Behalf of Companies in Mainland China
	Name	Relationship
MIRLE AUTOMATION CORPORATION	Mirle Automation Technology (Shanghai) Co., Ltd. Mirle Automation Technology (Kunshan) Co., Ltd. MIRLE AUTOMATION INTER CORP. LTD.	Note 1 Note 1 Note 2	$ 1,260,116 1,260,116 1,260,116	$ 470,560 110,720 83,040	$ 470,560 110,720 83,040	$ - - 23,666	$ - - -	11 3 2	$ 2,100,193 2,100,193 2,100,193	Yes Yes Yes	No No No	Yes Yes No

Note 1: The Corporation’s indirect wholly-owned subsidiaries.

Note 2: The Corporation’s direct wholly-owned subsidiaries.

Note 3: The amount of guarantees provided by the Corporation to any individual entity shall not exceed 10% of the Corporation’s net worth. The aggregate amount of guarantees available shall not exceed 50% of the Corporation’s net worth. The aggregate amount of guarantees given by the parent company on behalf of subsidiaries or subsidiaries on behalf of the parent company shall not exceed 30% of the Corporation’s net worth.

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TABLE 3

MIRLE AUTOMATION CORPORATION

MARKETABLE SECURITIES HELD DECEMBER 31, 2021 (In Thousands of New Taiwan Dollars, Unless Stated Otherwise)

Holding Company Name	Type and Name of Marketable Securities	Relationship with the Holding Company	Financial Statement Account		December 31, 2021	December 31, 2021		Note
				Number of Shares (In Thousands)	Carrying Amount	Percentage of Ownership (%)	Fair Value
Mirle Automation Corporation	TIEF FUND, L.P.	-	Financial assets at fair value through other comprehensive income - non-current	1,500	$ 36,572	7	$ 36,572	Note 1
	TSUKUBASEIKO CO., LTD.	-	Financial assets at fair value through profit or loss- non-current	143	-	4	-	Note 1
	PHOENIX II INNOVATION VENTURE CAPITAL CO., LTD.	-	Financial assets at fair value through other comprehensive income - non-current	1,000	12,125	2	12,151	Note 1
	UNION MONEY MARKET FUND	-	Financial assets as fair value through profit or loss-current	3,752	50,035	-	50,035	Note 2
	JIH SUN MONEY MARKET FUND	-	Financial assets as fair value through profit or loss-current	3,339	50,043	-	50,043	Note 2
MIRTEK (BVI) CORP. LTD.	AMERICAN MERCHANTS HEAT CO., LTD.	-	Financial assets at fair value through other comprehensive income - non-current	1,654	-	6	-	Note 1

Note 1: The market value was based on the fair value as of December 31, 2021.

Note 2: The fair value was based on the net assets value of the fund as of December 31, 2021.

Note 3: As of December 31, 2021, the above marketable securities had not been pledged or mortgaged.

Note 4: See Tables 4 and 5 for detailed information on subsidiaries and associates.

60 -

TABLE 4

MIRLE AUTOMATION CORPORATION

INFORMATION ON INVESTEES FOR THE YEAR ENDED DECEMBER 31, 2021 (In Thousands of New Taiwan Dollars, Unless Stated Otherwise)

Investor Company	Investee Company	Location	Main Businesses and Products	Original Investment Amount	Original Investment Amount	As of December 31,	As of December 31,	2021	Net Income (Loss) of the Investee	Share of Profit (Loss)	Note
				December 31, 2021	December 31, 2020	Number of Shares	%	Carrying Amount
MIRLE AUTOMATION CORPORATION MIRTEK (BVI) CORP. LTD. DAVID INVESTMENT CO., LTD IOT SERVICES INFORMATION SYSTEM CORPORATION	MIRTEK (BVI) CORP. LTD. DAVID INVESTMENT CO., LTD MIRLE AUTOMATION INTER CO., LTD. FACTORY AUTOMATION INTERNATIONAL CO., LTD. FORMOSA MEDICAL DEVICES INC. MAIN DRIVE CORPORATION MIRLE HOLDING CO., LTD. IOT SERVICES INFORMATION SYSTEM CORPORATION VAN QUOC INFORMATION TECHNOLOGY CONSULTING SERVICES CO., LTD.	British Virgin Islands Taipei City Thailand Taipei City Taipei City Hsinchu County Seychelles Taipei City Vietnam	Investment Investment Machinery installation construction, automatic warehousing and logistics equipment and cybernation equipment construction Computer application package software design, computer and peripheral equipment sales Medical equipment wholesale and retail Machinery and equipment manufacturing and installation construction, wholesale and retail sale of computing and business machinery equipment Investment Machinery and equipment manufacturing and installation construction, wholesale and retail sale of computing and business machinery equipment Machinery and equipment manufacturing and installation construction, wholesale and retail sale of computing and business machinery equipment	$ 951,348 76,000 103,921 42,075 21,911 97,130 544,745 76,100 15,520	$ 951,348 76,000 101,221 42,075 21,911 72,280 544,745 76,000 15,520	29,641 - 10,300 1,275 2,523 9,713 17,000 7,610 -	100 99 100 51 21 26.85 100 100 100	$ 1,736,303 79,335 74,853 45,722 - 34,310 470,775 79,452 25,016	$ 40,256 4,492 (7,170) 7,147 - (107,582) (47,128) 4,492 979	$ 40,036 4,486 (7,170) 3,647 - (29,147) (47,128) 4,492 979	Subsidiary Subsidiary Subsidiary Subsidiary Note 2 Associate Second-tier subsidiary Second-tier subsidiary Third-tier subsidiary

Note 1: Refer to Table 5 for information on investments in mainland China.

Note 2: FORMOSA MEDICAL DEVICES INC. was dissolved on May 27, 2020, but the liquidation procedures have not yet been completed.

61 -

TABLE 5

MIRLE AUTOMATION CORPORATION

INFORMATION ON INVESTMENTS IN MAINLAND CHINA FOR THE YEAR ENDED DECEMBER 31, 2021 (In Thousands of New Taiwan Dollars, Unless Stated Otherwise)

Investee Company	Main Businesses and Products	Main Businesses and Products	Paid-in Capital	Paid-in Capital	Method of Investment	Accumulated Outward Remittance for Investment from Taiwan as of January 1, 2021	Remittance of Funds	Remittance of Funds	Accumulated Outward Remittance for Investment from Taiwan as of December 31, 2021	Net Income (Loss) of the Investee	% Ownership of Direct or Indirect Investment	Investment Gain (Loss)	Carrying Amount as of December 31, 2021	Accumulated Repatriation of Investment Income as of December 31, 2021
							Outward	Inward
Mirle Automation Technology (Shanghai) Co., Ltd. Mirle Automation (Kunshan) Co., Ltd. Mirle Automation (Guangdong) Co., Ltd.	Developing, producing and selling of various packing machines, labeling machines, other food machinery, components of thermoforming models and automatic storage management equipment, logistics, other automated product systems and services and computer and network system integration and services Researching, developing and producing of welding robots and their welding equipment, automatic storage and management equipment, logistics and other automated product systems, industrial controller products and systems and providing industrial robot system, visual inspection system and computer and network system integrated application services Selling and manufacturing of industrial automatic control system devices; technical services, development, consulting, communication, transfer and promotion; electronic components and electromechanical component equipment manufacturing and selling; hardware research development, manufacturing and wholesale; electronic product sales; distribution switcher control equipment manufacturing, power transmission and distribution and control equipment manufacturing; motor and its control system research and development; servo control mechanism manufacturing and sales; electromechanical coupling system research and development; electrical equipment manufacturing; intelligent control system integration.		US$ 1,323 ten thousand (Note 2) US$ 1,700 ten thousand (Note 4) US$ 38 ten thousand (Note 2)		Note 1 Note 1 Note 1	US$ 1,161 ten thousand (Note 3) US$ 1,700 ten thousand $ -	$ - - -	$ - - -	US$ 1,161 ten thousand US$ 1,700 ten thousand $ -	$ 87,471 (47,128) 62	100 100 49	$ 87,471 (Note 5) (47,128) (Note 5) 31 (Note 5)	$ 1,264,863 470,775 10,681	$ - - -

Accumulated Outward Remittance for Investments in Mainland China as of December 31, 2021		Investment Amount Authorized by the Investment Commission, MOEA		Upper Limit on the Amount of Investments Stipulated by the Investment Commission, MOEA
US$2,861 ten thousand		US$3,156 ten thousand		$ 2,520,232

(Continued)

62 -
Note 1: By establishing MIRTEK (BVI) CORP. LTD. through investment in the third region and then invested in companies in mainland china.
Note 2: Accumulated outward remittance for investment from Taiwan is US$790 ten thousand, the amount of retained earnings transferred to ordinary shares is US$295 ten thousand and the investment amount of Xinji Photoelectric Co., Ltd. is US$238 ten thousand. After that, the Corporation acquired full ownership of Mirle Automation Technology (Shanghai) Co., Ltd. through MIRTEK (BVI) CORP. LTD.
Note 3: Accumulated outward remittance for investment from Taiwan is US$790 ten thousand. The Corporation obtained the shares of Mirle Automation Technology (Shanghai) Co., Ltd. by paying US$371 ten thousand to Xinji Photoelectric Co., Ltd.
Note 4: Accumulated outward remittance for investment from Taiwan is US$1,700 ten thousand. The Corporation invested and established MIRLE HOLDING CO., LTD. through MIRTEK (BVI) CORP. LTD.; meanwhile, the Corporation acquired full ownership of Mirle Automation (Kunshan) Co., Ltd. through MIRLE HOLDING CO., LTD.
Note 5: Calculated by reviewed financial statements of the investees for the same reporting periods as those of the Corporation.

(Concluded)

63 -

TABLE 6

MIRLE AUTOMATION CORPORATION

SIGNIFICANT TRANSACTIONS WITH INVESTEE COMPANIES IN MAINLAND CHINA, EITHER DIRECTLY OR INDIRECTLY THROUGH A THIRD PARTY, AND THEIR PRICES, PAYMENT TERMS, AND UNREALIZED GAINS OR LOSSES

FOR THE YEAR ENDED DECEMBER 31, 2021

(In Thousands of New Taiwan Dollars, Unless Stated Otherwise)

Investee Company	Transaction Type	Purchase/Sale	Purchase/Sale	Price	Transaction Details	Transaction Details	Notes/Accounts Receivable (Payable)	Notes/Accounts Receivable (Payable)	Unrealized (Gain) Loss	Note
		Amount	%		Payment Terms	Comparison with Normal Transactions	Ending Balance	%
Mirle Automation Technology (Shanghai) Co., Ltd. Mirle Automation (Kunshan) Co., Ltd. Mirle Automation Technology (Guangdong) Co., Ltd.	Sales Purchase Sales Property transaction Sales	$ 81,250 38,841 5,788 1,519 19,053	1 1 0.1 - 0.2	Calculated according to the contract Calculated according to the contract Calculated according to the contract Calculated according to the contract Calculated according to the contract	Based on mutual agreement Based on mutual agreement Based on mutual agreement Based on mutual agreement Based on mutual agreement	No other equivalent transactions for comparison No other equivalent transactions for comparison No other equivalent transactions for comparison No other equivalent transactions for comparison No other equivalent transactions for comparison	$ 23,292 (5,974) - - -	9 0.2 - - -	$ - - - 106 -	None None None None None

64 -

TABLE 7

MIRLE AUTOMATION CORPORATION

INFORMATION ABOUT MAIN SHAREHOLDERS DECEMBER 31, 2021

No.	Name	Shares
		Number of Shares Held	Ownership Percentage
1	I-MEI FOODS CO., LTD.	11,496,066	5.87%

Note: The information of major shareholders presented in this table is provided by the Taiwan Depository & Clearing Corporation based on the number of ordinary shares and preferred shares held by shareholders with ownership of 5% or greater, that have been issued without physical registration (including treasury shares) by the Corporation as of the last business day for the current quarter. The share capital in the parent company only financial statements may differ from the actual number of shares that have been issued without physical registration because of different preparation basis.

65 -

THE CONTENTS OF STATEMENTS OF MAJOR ACCOUNTING ITEMS

ITEM STATEMENT INDEX

MAJOR ACCOUNTING ITEMS IN ASSETS, LIABILITIES AND EQUITY
STATEMENT OF CASH AND CASH EQUIVALENTS	1
STATEMENT OF CONTRACT ASSETS - CURRENT	Note 21
STATEMENT OF NOTES RECEIVABLE	2
STATEMENT OF ACCOUNTS RECEIVABLE	3
STATEMENT OF INVENTORIES	4
STATEMENT OF OTHER CURRENT ASSETS	Note 15
STATEMENT OF CHANGES IN FINANCIAL ASSETS AT FAIR VALUE	Note 7
THROUGH PROFIT OR LOSS - CURRENT
STATEMENT OF CHANGES IN FINANCIAL ASSETS AT FAIR VALUE	Note 8
THROUGH OTHER COMPREHENSIVE INCOME - NONCURRENT
STATEMENT OF CHANGES IN INVESTMENTS ACCOUNTED FOR	5
USING THE EQUITY METHOD
STATEMENT OF CHANGES IN PROPERTY, PLANT AND EQUIPMENT	Note 12
STATEMENT OF CHANGES IN ACCUMULATED DEPRECIATION OF	Note 12
PROPERTY, PLANT AND EQUIPMENT
STATEMENT OF CHANGES IN ACCUMULATED IMPAIRMENT OF	Note 12
PROPERTY, PLANT AND EQUIPMENT
STATEMENT OF CHANGES IN RIGHT-OF-USE ASSETS	6
STATEMENT OF CHANGES IN ACCUMULATED DEPRECIATION OF	6
RIGHT-OF-USE ASSETS
STATEMENT OF CHANGES IN INTANGIBLE ASSETS	Note 14
STATEMENT OF SHORT-TERM BANK LOANS	Note 16
STATEMENT OF CONTRACT LIABILITIES - CURRENT	Note 21
STATEMENT OF NOTES PAYABLE	7
STATEMENT OF ACCOUNTS PAYABLE	8
STATEMENT OF PROVISIONS - CURRENT	Note 18
STATEMENT OF ACCRUED EXPENSES AND OTHER CURRENT	Note 17
LIABILITIES
STATEMENT OF LEASE LIABILITIES	9
MAJOR ACCOUNTING ITEMS IN PROFIT OR LOSS
STATEMENT OF NET SALES	10
STATEMENT OF OPERATING COSTS	11
STATEMENT OF MANUFACTURING EXPENSES	12
STATEMENT OF OPERATING EXPENSES	13
STATEMENT OF OTHER GAINS AND LOSSES	Note 22
SUMMARY OF EMPLOYEE BENEFITS, DEPRECIATION AND	14
AMORTIZATION EXPENSES BY FUNCTION

66 -

STATEMENT 1

MIRLE AUTOMATION CORPORATION

STATEMENT OF CASH AND CASH EQUIVALENTS DECEMBER 31, 2021 (In Thousands of New Taiwan Dollars, Unless Stated Otherwise)

Item Cash in banks Current accounts Foreign currency accounts (Note 1) Time deposits (Note 2) Checking accounts Cash on hand	Amount $ 911,385 623,807 565,000 1,080 2,101,272 8,868 $ 2,110,140

Note 1: Including US$20,462 thousand @27.68, ￥ $148,248 thousand @0.2405, CNY4,154 thousand @4.344, €119 thousand @31.32 and others.

Note 2: Expired by the end of July 2022, annual interest rate of 0.30%-2.65%.

67 -

STATEMENT 2

MIRLE AUTOMATION CORPORATION

STATEMENT OF NOTES RECEIVABLE DECEMBER 31, 2021 (In Thousands of New Taiwan Dollars)

Client Name Client A Client B Others (Note) Less: Allowance for impairment loss	Amount $ 9,127 1,321 1,564 12,012 (199) $ 11,813

Note: The amount of individual client in others does not exceed 5% of the account balance.

68 -

STATEMENT 3

MIRLE AUTOMATION CORPORATION

STATEMENT OF ACCOUNTS RECEIVABLE DECEMBER 31, 2021 (In Thousands of New Taiwan Dollars)

Client Name Client C Client D Client E Client F Client G Others (Note) Less: Allowance for impairment loss	Amount $ 38,271 33,630 22,113 16,282 14,956 95,928 221,180 (10,516) $ 210,664

Note: The amount of individual client in others does not exceed 5% of the account balance.

69 -

STATEMENT 4

MIRLE AUTOMATION CORPORATION

STATEMENT OF INVENTORIES DECEMBER 31, 2021 (In Thousands of New Taiwan Dollars)

Item Finished goods Work in process Raw materials Inventory in transit		Amount
		Cost Market Value (Note 1) $ 24,406 $ 57,329 778,749 1,001,311 349,083 390,117 12,177 12,177 $ 1,164,415 $ 1,460,934

Note 1: Based on the net realizable value.

Note 2: The amount of inventory insured is NT$433,500 thousand.

70 -

STATEMENT 5

MIRLE AUTOMATION CORPORATION

STATEMENT OF CHANGES IN INVESTMENTS ACCOUNTED FOR USING THE EQUITY METHOD FOR THE YEAR ENDED DECEMBER 31, 2021

(In Thousands of New Taiwan Dollars, Unless Stated Otherwise)

MIRTEK (BVI) CORP. LTD. DAVID INVESTMENT CO., LTD. MIRLE AUTOMATION INTER CORP. LTD. FACTORY AUTOMATION INTERNATIONAL CO., LTD. MAIN DRIVE CORPORATION FORMOSA MEDICAL DEVICES INC.	Balance, January 1, 2021 Number of Shares (In Thousands) Amount 29,641 $ 1,703,233 - 78,198 10,000 90,594 1,275 42,075 7,228 37,374 2,523 - $ 1,951,474	Share of Exchange Differences on Additions Profit or Translation Number of Shares Loss of Subsidiaries to the Presentation Cash Dividends Paid (In Thousands) Amount and Associates Currency by Subsidiaries - $ - $ 40,036 $ (6,873) $ - - - 4,486 1,734 (5,065) 300 2,700 (7,170) (11,271) - - - 3,647 - - 2,485 24,850 (29,147) - - - - - - - $ 27,550 $ 11,852 $ (16,410) $ (5,065)	Equity Adjustment $ - 2 - - 1,233 - $ 1,235	Deferred Credits Adjustment $ (93) - - - - - $ (93)	Balance, December 31, 2021 Number of Shares (In Thousands) % Amount 29,641 100 $ 1,736,303 - 99 79,355 10,300 100 74,853 1,275 51 45,722 9,713 26.85 34,310 2,523 21 - $ 1,970,543	Net Asset Value Remarks $ 1,739,090 Note 1 79,355 Note 1 64,386 Note 1 13,800 Note 2 34,310 Note 1 - Note 1 $ 1,930,941
	Number of Shares (In Thousands) 29,641 - 10,000 1,275 7,228 2,523	Number of Shares (In Thousands) - - 300 - 2,485 -			Number of Shares (In Thousands) % 29,641 100 - 99 10,300 100 1,275 51 9,713 26.85 2,523 21

Note 1: The net value was based on audited financial statements for the same period.

Note 2: Recognition is based on unaudited financial statements. However, the management of the Corporation believes that the unaudited financial statements of these investee companies will not have a significant impact.

Note 3: The above investments accounted for using the equity method were not pledged as security.

71 -

STATEMENT 6

MIRLE AUTOMATION CORPORATION

STATEMENT OF CHANGES IN RIGHT-OF-USE ASSETS AND ACCUMULATED DEPRECIATION OF RIGHT-OF-USE ASSETS FOR THE YEAR ENDED DECEMBER 31, 2021 (In Thousands of New Taiwan Dollars)

Cost Land Transportation equipment Total Accumulated depreciation Land Transportation equipment Total Total	January 1, 2021 $ 318,910 5,258 324,168 47,290 1,268 48,558 $ 275,610	Additions $ - 2,483 2,483 25,911 1,886 27,797 $ (25,314)	Disposals December 31, 2021 $ - $ 318,910 (911) 6,830 (911) 325,740 - 73,201 (911) 2,243 (911) 75,444 $ - $ 250,296

72 -

STATEMENT 7

MIRLE AUTOMATION CORPORATION

STATEMENT OF NOTES PAYABLE DECEMBER 31, 2021 (In Thousands of New Taiwan Dollars)

Client Name Client A Client B Client C Others (Note)	Amount $ 25,412 13,732 10,584 2,235 $ 51,963

Note: The amount of individual client in others does not exceed 5% of the account balance.

73 -

STATEMENT 8

MIRLE AUTOMATION CORPORATION

STATEMENT OF ACCOUNTS PAYABLE DECEMBER 31, 2021 (In Thousands of New Taiwan Dollars)

Client Name Client D Others (Note)	Amount $ 131,712 2,221,086 $ 2,352,798

Note: The amount of individual client in others does not exceed 5% of the account balance.

74 -

STATEMENT 9

MIRLE AUTOMATION CORPORATION

STATEMENT OF LEASE LIABILITIES DECEMBER 31, 2021 (In Thousands of New Taiwan Dollars, Unless Stated Otherwise)

Item Rental Period Discount Rate Land From January 2019 to December 2038 1.90%-2.16% Transportation equipment From January 2019 to August 2024 1.40% Total Less: Lease liabilities - current Lease liabilities -noncurrent	Amount $ 254,727 4,709 259,436 (25,500) $ 233,936

75 -

STATEMENT 10

MIRLE AUTOMATION CORPORATION

STATEMENT OF NET SALES FOR THE YEAR ENDED DECEMBER 31, 2021 (In Thousands of New Taiwan Dollars)

Item Sale Quantity Information product systems Note LCD devices Note Industrial controllers 4,167 sets Semiconductor equipment Note Automatic storage systems Note Robot operating systems Note Less: Sales returns and discounts	Amount $ 1,937,297 3,127,871 472,638 1,197,922 1,474,010 164,237 8,373,975 (10,589) $ 8,363,386

Note: Designed in response to customer needs. Each system requires different accessories and equipment, so the quantity cannot be calculated based on it.

76 -

STATEMENT 11

MIRLE AUTOMATION CORPORATION

STATEMENT OF OPERATING COSTS FOR THE YEAR ENDED DECEMBER 31, 2021 (In Thousands of New Taiwan Dollars)

Item
Raw materials
Balance, beginning of year

Raw material purchased
Raw materials, end of year
Transferred to property, plant and equipment
Others

Raw materials used this year
Direct labor
Manufacturing expenses

Manufacturing cost
Work in process, beginning of year
Others
Work in process, end of year

Cost of finished goods
Finished goods, beginning of year
Finished goods, end of year

Cost of goods sold
Other operating costs

Total

Amount
$ 199,815
5,058,158
(349,083)
(16,957)

(85,218)
4,806,715
698,877

720,245
6,225,837
1,044,963
(148)

(778,749)
6,491,903
27,920

(24,406)
6,495,417

(8,692)
$ 6,486,725

77 -

STATEMENT 12

MIRLE AUTOMATION CORPORATION

STATEMENT OF MANUFACTURING EXPENSES FOR THE YEAR ENDED DECEMBER 31, 2021 (In Thousands of New Taiwan Dollars)

Item Outsourcing project Travel expenses Salary Others (Note)	Amount $ 242,037 103,671 103,557 270,980 $ 720,245

Note: The amount of individual client in others does not exceed 5% of the account balance.

78 -

STATEMENT 13

MIRLE AUTOMATION CORPORATION

STATEMENT OF OPERATING EXPENSES FOR THE YEAR ENDED DECEMBER 31, 2021 (In Thousands of New Taiwan Dollars)

	Selling and	General and	Research and
	Marketing	Administrative	Development
Item	Expense	Expense	Expense
Personnel expenses	$ 198,950	$ 163,267	$ 197,779
Professional service fee	41,411	6,135	1,193
After sales service fee	27,968	-	-
Travel expenses	25,770	4,676	4,216
Export declaration fee	23,392	386	1,179
Depreciation	3,272	69,872	5,553
Repair and maintenance costs	334	24,412	3,073
Electricity bill	25	35,028	-
Material requisition	-	-	66,931
Outsourcing project	-	-	41,615
Others (Note)	87,250	121,325	52,175
	$ 408,372	$ 425,101	$ 373,714

Note: The amount of each item in others does not exceed 5% of the account balance.

79 -

STATEMENT 14

MIRLE AUTOMATION CORPORATION

SUMMARY OF EMPLOYEE BENEFITS, DEPRECIATION AND AMORTIZATION EXPENSES BY FUNCTION FOR THE YEARS ENDED DECEMBER 31, 2021 AND 2020 (In Thousands of New Taiwan Dollars)

Employee benefits expenses Salary expense Employee insurance premium Pension Meal expenses Welfare Remuneration of directors Depreciation Amortization		For the Year Ended December 31, 2021 Classified as Classified as Cost of Revenue Operating Expenses Total $ 677,805 $ 559,996 $ 1,237,801 56,515 47,013 103,528 28,473 22,985 51,458 19,153 13,435 32,588 13,441 - 13,441 - 7,183 7,183 $ 795,387 $ 650,612 $ 1,445,999 $ 34,436 $ 78,697 $ 113,133 $ 7,224 $ 19,214 $ 26,438		For the Year Ended December 31, 2020	For the Year Ended December 31, 2020
		Classified as Classified as Cost of Revenue Operating Expenses $ 677,805 $ 559,996 56,515 47,013 28,473 22,985 19,153 13,435 13,441 - - 7,183 $ 795,387 $ 650,612 $ 34,436 $ 78,697 $ 7,224 $ 19,214		Classified as Classified as Cost of Revenue Operating Expenses $ 514,758 $ 555,051 45,058 47,419 24,162 25,422 16,609 14,706 10,540 - - 6,756 $ 611,127 $ 649,354 $ 32,978 $ 78,691 $ 5,233 $ 15,636	Total $ 1,069,809 92,477 49,584 31,315 10,540 6,756 $ 1,260,481 $ 111,669 $ 20,869

Note 1: As of December 31, 2021 and 2020, the number of employees was 1,144 and 1,085, respectively, including 4 directors who did not serve concurrently as employees for both years.

Note 2: Companies whose stocks are listed on the Taiwan Stock Exchange or on the Taipei Exchange should disclose the following information:
1) The average employee benefits expense for the current year is $1,262 thousand (“Total employee benefits expenses for the current year-Total directors’ remuneration”/“Number of employees for the current year-Number of directors who have not served concurrently as employees”).

The average employee benefits expense for the previous year is $1,160 thousand (“Total employee benefits expenses for the previous year-Total directors’ remuneration”/“Number of employees for the previous year-Number of directors who have not served concurrently as employees”).

2) The average employee payroll and related expense for the current year is $1,086 thousand (Total payroll and related expense for the current year/“Number of employees for the current year-Number of directors who have not served concurrently as employees”).

The average employee payroll and related expense for the previous year is $990 thousand (Total payroll and related expense of the previous year/“Number of employees for the previous year-Number of directors who have not served concurrently as employees”).

3) Changes in the average employee payroll and related expense adjustment 9.70% (“Average employee payroll and related expense for the current year-Average employee payroll and related expense for the previous year”/Average employee payroll and related expense for the previous year).

4) The remuneration of supervisors for the current year is $2,739 thousand, and that for the previous year is $2,578 thousand.
5) The Corporation’s compensation policy (include directors, managers and employees).

Article 43 of the Corporation’s charter stipulates that if the corporation makes a profit each year, at least 1% shall be allocated for employee compensation, and no more than 2% shall be paid for directors and supervisors. The procedures for determining the remuneration, in addition to considering the corporation’s operational results, and taking into account its contribution to the corporation’s performance, as well as the corporation’s “Board of Directors Performance Evaluation Method” as the evaluation method, provide reasonable remuneration. The relevant performance appraisal and salary reasonableness have been reviewed by the Salary and Compensation Committee and the Board of Directors.

80 -

AI assistant

Mirle — Audit Report / Information 2021

52102_rns_2021-12-02_be4f35a4-6fc3-446c-9e4a-7c133210a679.pdf

Mirle Automation Corporation

INDEPENDENT AUDITORS’ REPORT

Opinion

Basis for Opinion

Key Audit Matters

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

Auditors’ Responsibilities for the Audit of the Financial Statements

Notice to Readers

MIRLE AUTOMATION CORPORATION

PARENT COMPANY ONLY BALANCE SHEETS DECEMBER 31, 2021 AND 2020 (In Thousands of New Taiwan Dollars)

MIRLE AUTOMATION CORPORATION

PARENT COMPANY ONLY STATEMENTS OF COMPREHENSIVE INCOME FOR THE YEARS ENDED DECEMBER 31, 2021 AND 2020 (In Thousands of New Taiwan Dollars, Except Earnings Per Share)

MIRLE AUTOMATION CORPORATION

PARENT COMPANY ONLY STATEMENTS OF COMPREHENSIVE INCOME FOR THE YEARS ENDED DECEMBER 31, 2021 AND 2020 (In Thousands of New Taiwan Dollars, Except Earnings Per Share)

MIRLE AUTOMATION CORPORATION

PARENT COMPANY ONLY STATEMENTS OF CHANGES IN EQUITY FOR THE YEARS ENDED DECEMBER 31, 2021 AND 2020 (In Thousands of New Taiwan Dollars)

MIRLE AUTOMATION CORPORATION

PARENT COMPANY ONLY STATEMENTS OF CASH FLOWS FOR THE YEARS ENDED DECEMBER 31, 2021 AND 2020 (In Thousands of New Taiwan Dollars)

MIRLE AUTOMATION CORPORATION

PARENT COMPANY ONLY STATEMENTS OF CASH FLOWS FOR THE YEARS ENDED DECEMBER 31, 2021 AND 2020 (In Thousands of New Taiwan Dollars)

MIRLE AUTOMATION CORPORATION

1. GENERAL INFORMATION

2. APPROVAL OF FINANCIAL STATEMENTS

3. APPLICATION OF NEW, AMENDED AND REVISED STANDARDS AND INTERPRETATIONS

4. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

d. Foreign currencies

1) Financial assets

2) Equity instruments

Warranties

2) Revenue from the rendering of services

3) Construction contract revenue

1) The Corporation as lessor

o. Borrowing costs

2) Retirement benefits

5. CRITICAL ACCOUNTING JUDGMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY

Key Sources of Estimation Uncertainty

a. Write-down of inventories

b. Construction contracts

6. CASH AND CASH EQUIVALENTS

7. FINANCIAL INSTRUMENTS AT FAIR VALUE THROUGH PROFIT OR LOSS

8. FINANCIAL ASSETS AT FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME

9. NOTES RECEIVABLE, ACCOUNTS RECEIVABLE AND OTHER RECEIVABLES

December 31, 2021

10. INVENTORIES

11. INVESTMENTS ACCOUNTED FOR USING THE EQUITY METHOD

MAIN DRIVE CORPORATION

12. PROPERTY, PLANT AND EQUIPMENT

13. LEASE ARRANGEMENTS

b. Lease liabilities

14. OTHER INTANGIBLE ASSETS

15. OTHER CURRENT ASSETS

16. BORROWINGS

17. ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES

18. PROVISIONS - CURRENT

19. RETIREMENT BENEFIT PLANS

a. Defined contribution plan

b. Defined benefit plan

20. EQUITY

21. REVENUE

22. NET PROFIT (LOSS) FROM CONTINUING OPERATIONS

f. Depreciation and amortization

Accrual rate

23. INCOME TAXES RELATING TO CONTINUING OPERATIONS

24. EARNINGS PER SHARE

Net Profit for the Year

25. GOVERNMENT GRANTS

26. FINANCIAL INSTRUMENTS

1) Market risk

a) Foreign currency risk

Sensitivity analysis

b) Interest rate risk

Sensitivity analysis

2) Credit risk

3) Liquidity risk

December 31, 2021

b) Financing facilities

27. TRANSACTIONS WITH RELATED PARTIES

Mirle Audit Report / Information 2021