Mirle - Interim / Quarterly Report 2021

Mirle Automation Corporation and Subsidiaries

Consolidated Financial Statements for the Nine Months Ended September 30, 2021 and 2020 and Independent Auditors’ Review Report

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INDEPENDENT AUDITORS’ REVIEW REPORT

The Board of Directors and Shareholders Mirle Automation Corporation

Introduction

We have reviewed the accompanying consolidated balance sheets of Mirle Automation Corporation (the “Corporation”) and its subsidiaries (collectively referred to as the “Group”) as of September 30, 2021 and 2020, the related consolidated statements of comprehensive income for the three months ended September 30, 2021 and 2020 and for the nine months ended September 30, 2021 and 2020, the consolidated statements of changes in equity and cash flows for the nine months then ended, and the related notes to the consolidated financial statements, including a summary of significant accounting policies (collectively referred to as the “consolidated financial statements”). Management is responsible for the preparation and fair presentation of the consolidated financial statements in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and International Accounting Standard 34 “Interim Financial Reporting” endorsed and issued into effect by the Financial Supervisory Commission of the Republic of China. Our responsibility is to express a conclusion on the consolidated financial statements based on our reviews.

Scope of Review

Except as explained in the following paragraph, we conducted our reviews in accordance with Statement of Auditing Standards No. 65 “Review of Financial Information Performed by the Independent Auditor of the Entity”. A review of consolidated financial statements consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Basis for Qualified Conclusion

As stated in Note 11 to the consolidated financial statements, we did not review the financial statements of some immaterial subsidiaries included in the consolidated financial statements. As of September 30, 2021 and 2020, total assets amounted to NT$958,909 thousand and NT$938,422 thousand, which represented 8.93% and 8.70% of the consolidated total assets, respectively, and total liabilities amounted to NT$231,369 thousand and NT$103,850 thousand, which represented 3.49% and 1.52% of the consolidated total liabilities, respectively. The amounts of total comprehensive (loss) income were NT$(2,192) thousand, NT$(3,328) thousand, NT$(64,842) thousand and NT$643 thousand, which represented (1.45)%, (2.09)%, (16.86)% and 0.16% of the consolidated total comprehensive income for the three months ended September 30, 2021 and 2020 and for the nine months ended September 30, 2021 and 2020, respectively.

As stated in Note 12 to the consolidated financial statements, the investments accounted for using the equity method amounted to NT$53,130 thousand and NT$42,956 thousand as of September 30, 2021 and 2020, respectively, and the share of loss of associates accounted for using the equity method was NT$7,754 thousand, NT$6,648 thousand, NT$20,848 thousand and NT$15,333 thousand for the three months ended September 30, 2021 and 2020 and for the nine months ended September 30, 2021 and 2020, respectively. Recognition and disclosure were based on the unreviewed financial statements of the investees for the same reporting periods. These investment amounts, as well as the related information disclosed in Note 33 to the consolidated financial statements were based on the unreviewed financial statements of the investees for the same reporting periods as those of the Group.

Qualified Conclusion

Based on our reviews, except for the financial statements of subsidiaries and investees as well as related information disclosed in the preceding paragraph which we have not reviewed and may require adjustments to the consolidated financial statements, nothing has come to our attention that caused us to believe that the accompanying consolidated financial statements do not give a true and fair view of the financial position of the Group as of September 30, 2021 and 2020, its consolidated financial performance for the three months ended September 30, 2021 and 2020, and its consolidated financial performance and its consolidated cash flows for the nine months then ended in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and International Accounting Standard 34 “Interim Financial Reporting” endorsed and issued into effect by the Financial Supervisory Commission of the Republic of China.

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

Deloitte & Touche Taipei, Taiwan Republic of China

November 10, 2021

Notice to Readers

The accompanying consolidated financial statements are intended only to present the consolidated 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 review such consolidated financial statements are those generally applied in the Republic of China.

For the convenience of readers, the independent auditors’ review report and the accompanying consolidated 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’ review report and consolidated financial statements shall prevail.

MIRLE AUTOMATION CORPORATION AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(In Thousands of New Taiwan Dollars)

ASSETS CURRENT ASSETS Cash and cash equivalents (Notes 6 and 28) Financial assets at fair value through profit or loss - current (Notes 7 and 28) Contract assets - current (Notes 23 and 29) Notes receivable (Notes 9, 23 and 28) Accounts receivable (Notes 9, 23 and 28) Receivables from related parties (Notes 23, 28 and 29) Other receivables (Notes 9 and 28) Other receivables - related parties (Notes 28 and 29) Inventories (Note 10) Other current assets (Note 17) Total current assets NON-CURRENT ASSETS Financial assets at fair value through other comprehensive income - non-current (Notes 8 and 28) Investments accounted for using the equity method (Note 12) Property, plant and equipment (Note 13) Right-of-use assets (Note 14) Intangible assets (Notes 16, 29 and 30) Goodwill (Note 15) Deferred income tax assets (Notes 4 and 25) Prepayment for equipment Refundable deposits (Note 28) Prepayment for investments (Note 17) Total non-current assets TOTAL		September 30, 2021 (Reviewed) Amount % $ 1,793,506 17 370,225 3 2,646,716 25 102,232 1 683,409 6 5,185 - 69,386 - 380 - 1,579,700 15 211,803 2 7,462,542 69 49,098 1 53,130 1 2,602,188 24 339,115 3 54,648 1 42,310 - 7,779 - 19,667 - 107,775 1 - - 3,275,710 31 $ 10,738,252 100		December 31, 2020 (Audited) Amount % $ 2,841,783 25 - - 2,615,024 23 234,469 2 625,506 6 1,993 - 59,001 1 - - 1,503,416 13 176,149 2 8,057,341 72 39,098 - 37,374 - 2,449,453 22 360,833 3 51,661 1 43,906 1 7,779 - 23,147 - 127,937 1 10,000 - 3,151,188 28 $ 11,208,529 100		September 30, 2020 (Reviewed)
						Amount % $ 1,722,931 16 - - 2,983,901 27 209,546 2 632,773 6 8,035 - 90,369 1 - - 1,865,173 17 186,253 2 7,698,981 71 38,344 - 42,956 1 2,432,328 23 362,975 3 47,309 1 11,589 - 7,779 - 20,875 - 124,976 1 - - 3,089,131 29 $ 10,788,112 100

LIABILITIES AND EQUITY CURRENT LIABILITIES Short-term bank loans (Notes 18 and 28) Contract liabilities - current (Notes 23 and 29) Notes payable (Note 28) Accounts payable (Note 28) Accounts payable to related parties (Notes 28 and 29) Current income tax liabilities (Notes 4 and 25) Provisions - current (Note 20) Lease liabilities - current (Notes 14 and 28) Current portion of long-term debts (Notes 18 and 28) Accrued expenses and other current liabilities (Notes 19, 28 and 29) Total current liabilities NON-CURRENT LIABILITIES Long-term bank loans (Notes 18 and 28) Lease liabilities - non-current (Notes 14 and 28) Net defined benefit liability - non-current (Notes 4, 21 and 24) Guarantee deposits received (Note 28) Other noncurrent liabilities Total non-current liabilities Total liabilities EQUITY ATTRIBUTABLE TO SHAREHOLDERS OF THE CORPORATION (Note 22) 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 loss on investments in financial assets at fair value through other comprehensive income Total equity attributable to shareholders of the Corporation NON-CONTROLLING INTERESTS (Note 22) Total shareholders’ equity TOTAL		September 30, 2021 (Reviewed) Amount % $ 300,000 3 882,009 8 71,343 1 3,003,680 28 7,882 - 149,825 1 13,154 - 25,223 - - - 581,900 6 5,035,016 47 1,076,367 10 239,822 2 282,788 3 318 - 76 - 1,599,371 15 6,634,387 62 1,955,312 18 254,962 3 902,775 8 152,050 1 1,017,037 10 (182,295 ) (2 ) (7,645) - 4,092,196 38 11,669 - 4,103,865 38 $ 10,738,252 100		December 31, 2020 (Audited) Amount % $ 300,000 3 1,676,671 15 63,447 1 2,641,198 24 5,278 - 160,823 1 4,356 - 24,241 - 5,000 - 595,338 5 5,476,352 49 1,058,967 9 257,252 2 306,390 3 318 - 88 - 1,623,015 14 7,099,367 63 1,955,312 18 253,729 2 852,644 8 173,348 1 1,016,226 9 (144,404 ) (1 ) (7,645) - 4,099,210 37 9,952 - 4,109,162 37 $ 11,208,529 100		September 30, 2020 (Reviewed)
						Amount % $ 800,000 7 1,156,321 11 81,899 1 2,544,595 24 688 - 136,468 1 6,165 - 23,152 - - - 448,321 4 5,197,609 48 1,065,217 10 260,902 2 296,177 3 318 - 424 - 1,623,038 15 6,820,647 63 1,955,312 18 253,729 3 852,644 8 173,348 2 923,093 8 (182,455 ) (2 ) (8,399) - 3,967,272 37 193 - 3,967,465 37 $ 10,788,112 100

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

MIRLE AUTOMATION CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (In Thousands of New Taiwan Dollars, Except Earnings Per Share) (Reviewed, Not Audited)

NET SALES (Notes 23 and 29) OPERATING COSTS (Notes 10, 24 and 29) GROSS PROFIT OPERATING EXPENSES (Notes 14, 24 and 29) Selling and marketing expense General and administrative expense Research and development expense Expected credit gain (Note 9) Total operating expenses OTHER OPERATING INCOME AND EXPENSES (Note 24) OPERATING INCOME NONOPERATING INCOME AND EXPENSES Interest income (Note 24) Other income (Notes 16, 24, 27 and 29) Other gains and losses (Notes 24 and 29) Finance costs (Note 24) Share of loss of associates (Note 12) Foreign exchange loss, net (Note 23) Total non-operating income and expenses INCOME BEFORE INCOME TAX INCOME TAX EXPENSE (BENEFIT) (Notes 4 and 25) NET INCOME		For the Three Months Ended September 30	For the Three Months Ended September 30	For the Three Months Ended September 30		For the Nine Months	Ended September 30	Ended September 30
		2021		2020		2021		2020
		Amount % $ 2,537,420 100 2,013,196 79 524,224 21 104,158 4 133,666 5 90,622 4 (6,468) - 321,978 13 35 - 202,281 8 7,376 - 4,252 - (2,166 ) - (2,748 ) - (7,754 ) - (4,282) - (5,322) - 196,959 8 34,146 2 162,813 6		Amount % $ 2,246,992 100 1,787,300 80 459,692 20 104,897 5 103,289 5 102,726 4 (9,207) (1) 301,705 13 (867) - 157,120 7 5,120 - 17,322 1 (2,437 ) - (3,525 ) - (6,648 ) (1 ) (47,417) (2) (37,585) (2) 119,535 5 (9,768) (1) 129,303 6		Amount % $ 7,150,670 100 5,585,145 78 1,565,525 22 330,317 5 378,994 5 301,981 4 (6,189) - 1,005,103 14 (423) - 559,999 8 15,853 - 19,459 - (4,813 ) - (8,624 ) - (20,848 ) - (61,909) (1) (60,882) (1) 499,117 7 76,601 1 422,516 6		Amount % $ 6,418,646 100 5,057,385 79 1,361,261 21 281,514 4 312,917 5 301,564 5 (8,997) - 886,998 14 1,710 - 475,973 7 18,096 - 50,872 1 (4,735 ) - (10,083 ) - (15,333 ) - (68,347) (1) (29,530) - 446,443 7 37,367 1 409,076 6 (Continued)

MIRLE AUTOMATION CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (In Thousands of New Taiwan Dollars, Except Earnings Per Share) (Reviewed, Not Audited)

OTHER COMPREHENSIVE (LOSS) INCOME (Note 22) Items that may be reclassified subsequently to profit or loss Exchange differences on the translation of the financial statements of foreign operations TOTAL COMPREHENSIVE INCOME NET INCOME ATTRIBUTABLE TO Shareholders of the Corporation Non-controlling interests TOTAL COMPREHENSIVE INCOME ATTRIBUTABLE TO Shareholders of the Corporation Non-controlling interests EARNINGS PER SHARE (Note 26) Basic Diluted		For the Three Months Ended September 30	For the Three Months Ended September 30	For the Three Months Ended September 30		For the Nine Months	Ended September 30	Ended September 30
		2021		2020		2021		2020
		Amount % $ (11,444) - $ 151,369 6 $ 160,539 6 2,274 - $ 162,813 6 $ 149,095 6 2,274 - $ 151,369 6 $ 0.82 $ 0.82		Amount % $ 29,889 1 $ 159,192 7 $ 129,298 6 5 - $ 129,303 6 $ 159,187 7 5 - $ 159,192 7 $ 0.66 $ 0.66		Amount % $ (37,984) (1) $ 384,532 5 $ 420,706 6 1,810 - $ 422,516 6 $ 382,815 5 1,717 - $ 384,532 5 $ 2.15 $ 2.15		Amount % $ (17,507) - $ 391,569 6 $ 409,065 6 11 - $ 409,076 6 $ 391,558 6 11 - $ 391,569 6 $ 2.09 $ 2.09

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

(Concluded)

MIRLE AUTOMATION CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

(In Thousands of New Taiwan Dollars) (Reviewed, Not Audited)

		Equity Attributable to Shareholders of the Corporation	Equity Attributable to Shareholders of the Corporation	Equity Attributable to Shareholders of the Corporation	Equity Attributable to Shareholders of the Corporation
Share Capital Issued and Outstanding		Capital Surplus			Retained Earnings		Other Equity Unrealized Loss on Investments Exchange in Equity Differences on Instruments Translation of Designated as the Financial at Fair Value Statements of Through Other Foreign Comprehensive Operations Income $ (164,948 ) $ (8,399 ) - - - - - - - - - - (17,507) - (17,507) - $ (182,455) $ (8,399) $ (144,404 ) $ (7,645 ) - - - - - - - - - - (37,891) - (37,891) - $ (182,295) $ (7,645)
		Equity Investments in Component of Associates and Convertible Joint Ventures Bonds Issued Accounted for by the Using the Corporation Equity Method $ 234,579 $ 4,516 - - - - - - - (4,516 ) - - - - - - $ 234,579 $ - $ 234,579 $ - - - - - - - - 1,233 - - - - - - $ 234,579 $ 1,233	Treasury Shares $ 19,150 - - - - - - - $ 19,150 $ 19,150 - - - - - - - $ 19,150	Total $ 258,245 - - - (4,516 ) - - - $ 253,729 $ 253,729 - - - 1,233 - - - $ 254,962
Number of Shares (In Thousands) 195,531 - - - - - - - 195,531 195,531 - - - - - - - 195,531	Amount $ 1,955,312 - - - - - - - $ 1,955,312 $ 1,955,312 - - - - - - - $ 1,955,312
					Unappropriated Legal Reserve Special Reserve Earnings $ 785,624 $ 108,311 $ 1,135,806 67,020 - (67,020 ) - 65,037 (65,037 ) - - (488,828 ) - - (893 ) - - 409,065 - - - - - 409,065 $ 852,644 $ 173,348 $ 923,093 $ 852,644 $ 173,348 $ 1,016,226 50,131 - (50,131 ) - (21,298 ) 21,298 - - (391,062 ) - - - - - 420,706 - - - - - 420,706 $ 902,775 $ 152,050 $ 1,017,037	Total $ 2,029,741 - - (488,828 ) (893 ) 409,065 - 409,065 $ 1,949,085 $ 2,042,218 - - (391,062 ) - 420,706 - 420,706 $ 2,071,862

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

MIRLE AUTOMATION CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS (In Thousands of New Taiwan Dollars) (Reviewed, Not Audited)

CASH FLOWS FROM OPERATING ACTIVITIES Profit before income tax Adjustments for: Depreciation expenses Amortization expenses Expected credit gain Finance costs Interest income Share of loss of associates Loss (gain) on disposal of property, plant and equipment Loss on disposal of other assets Reversal of inventory write-down Net loss on foreign currency exchange Net gain on fair value change of financial assets designated as at fair value through profit or loss Property, plant and equipment reclassified as operating expenses Gain on lease modification Changes in operating assets and liabilities Contract assets Notes receivable Accounts receivable Accounts receivable from related parties Other receivables Other receivables - related parties Inventories Other current assets Contract liabilities Notes payable Accounts payable Accounts payables to related parties Provisions Accrued expenses and other current liabilities Net defined benefit liabilities Cash generated from (used in) operations Income tax paid Net cash generated from (used in) operating activities		For the Nine Months Ended September 30	For the Nine Months Ended September 30
		2021 $ 499,117 112,416 21,205 (6,189) 8,624 (15,853) 20,848 423 - (1,746) 1,541 (255) - - (31,692) 132,289 (51,450) (3,192) (10,385) (380) (74,184) (40,317) (794,662) 7,896 362,694 2,604 8,798 (33,684) (23,602) 90,864 (87,599) 3,265	2020 $ 446,443 111,536 16,837 (8,997) 10,083 (18,096) 15,333 (1,719) 9 (5,154) 47,559 (204) 32 (9) (185,832) (111,162) 229,232 (4,035) (13,177) - 347,724 14,170 (364,373) 6,408 (790,313) 497 (1,870) (301,440) (12,270) (572,788) (42,387) (615,175) (Continued)

MIRLE AUTOMATION CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS (In Thousands of New Taiwan Dollars) (Reviewed, Not Audited)

CASH FLOWS FROM INVESTING ACTIVITIES Disposal of 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 under the equity method Acquisition of property, plant and equipment Disposal of property, plant and equipment Decrease in refundable deposits Increase in intangible assets Decrease (increase) in prepayments for equipment Interest received 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 borrowings Repayments of long-term borrowings Decrease in guarantee deposits Repayment of the principal portion of lease liabilities Dividends paid Interest paid Net cash (used in) generated from financing activities EFFECTS OF EXCHANGE RATE CHANGES ON THE BALANCE OF CASH HELD IN FOREIGN CURRENCIES DECREASE IN CASH AND CASH EQUIVALENTS CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD CASH AND CASH EQUIVALENTS, END OF PERIOD		For the Nine Months Ended September 30	For the Nine Months Ended September 30
		2021 $ - (420,001) 50,031 (35,371) (236,108) 1,641 20,162 (24,467) 3,480 20,516 (620,117) 300,000 (300,000) 17,400 (5,000) - (18,455) (391,062) (8,615) (405,732) (25,693) (1,048,277) 2,841,783 $ 1,793,506	2020 $ 972 (530,000) 530,204 (39,280) (312,174) 19,155 22,813 (12,872) (1,497) 18,173 (304,506) 2,630,000 (2,730,000) 1,058,967 (3,750) (3,212) (19,063) (488,828) (9,991) 434,123 (2,615) (488,173) 2,211,104 $ 1,722,931

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

(Concluded)

MIRLE AUTOMATION CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2021 AND 2020 (In Thousands of New Taiwan Dollars, Unless Stated Otherwise) (Reviewed, Not Audited)

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

2. APPROVAL OF CONSOLIDATED FINANCIAL STATEMENTS

The consolidated financial statements were reported to the board of directors and authorized for issue on November 10, 2021.

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

a. Initial application of 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 amendments to the IFRSs endorsed and issued into effect by the FSC did not have material impact on the accounting policies of the Corporation and the entities controlled by the Corporation (collectively referred to as the “Group”).

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

New, Amended or Revised Standards and Interpretations “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 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 consolidated financial statements were authorized for issue, the Group is continuously assessing the possible impact that the application of the above standards and interpretations will have on the Group’s financial position and financial performance and will disclose the relevant impact when the assessment is completed.

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

New, Amended or Revised Standards and Interpretations 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 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 IASB (Note 1)
	To be determined by IASB 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, Amended or Revised Standards and Interpretations
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 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 IASB (Note 1)

To be determined by IASB
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 that deferred taxes 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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4. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

a. Statement of compliance

These interim consolidated financial statements have been prepared in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and IAS 34 “Interim Financial Reporting” as endorsed and issued into effect by the FSC. Disclosure information included in these interim consolidated financial statements is less than the disclosure information required in a complete set of annual consolidated financial statements.

b. Basis of preparation

The consolidated 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.

c. Basis of consolidation

The consolidated financial statements incorporate the financial statements of the Corporation and the entities controlled by the Corporation (i.e., its subsidiaries).

When necessary, adjustments are made to the financial statements of subsidiaries to bring their accounting policies into line with those used by the Corporation.

All intra-group transactions, balances, income and expenses are eliminated in full upon consolidation. Total comprehensive income of subsidiaries is attributed to the owners of the Corporation and to the non-controlling interests even if this results in the non-controlling interests having a deficit balance.

See Note 11, Table 5 and Table 6 for detailed information on subsidiaries (including percentages of ownership and main businesses).

d. Other significant accounting policies

Except for the following, refer to the consolidated financial statements for the year ended December 31, 2020.

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1) Retirement benefits

Pension cost for an interim period is calculated on a year-to-date basis by using the actuarially determined pension cost rate at the end of the prior financial year, adjusted for significant market fluctuations since that time and for significant plan amendments, settlements, or other significant one-off events.

2) Taxation

Income tax expense represents the sum of the tax currently payable and deferred tax. Interim period income taxes are assessed on an annual basis and calculated by applying to an interim period’s pre-tax income the tax rate that would be applicable to expected total annual earnings.

5. CRITICAL ACCOUNTING JUDGMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY

The Group considers the recent development of the COVID-19 in Taiwan and its implications on economic environment when making its critical accounting estimates in 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. Refer to the consolidated financial statements for the year ended December 31, 2020.

6. CASH AND CASH EQUIVALENTS

	September 30,	September 30,	December 31,	December 31,	September 30,	September 30,
		2021		2020		2020
Cash on hand	$	9,733	$	9,885	$	9,815
Demand deposits		828,276		1,844,080		799,552
Checking accounts		360		737		560
Cash equivalents
Time deposits with original maturities of less
than 3 months		271,171		309,149		157,356
Time deposits with original maturities of more
than 3 months and less than 1 year		683,966		677,932		755,648
	$	1,793,506	$	2,841,783	$	1,722,931

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 subject to an insignificant risk of changes in value. The Group’s cash is held for the purpose of meeting short-term cash commitments.

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

	September 30,	December 31,	September 30,
	2021	2020	2020
Bank deposits	0.001%-2.70%	0.001%-2.55%	0.001%-2.80%

12 -

7. FINANCIAL INSTRUMENTS AT FAIR VALUE THROUGH PROFIT OR LOSS

	September 30,	December	December	31,	September	September	30,
	2021		2020			2020
Financial assets at fair value through
profit or loss (FVTPL)-current
Financial assets held for trading
Non-derivative financial assets
Mutual funds	$ 370,225	$		-	$		-
FINANCIAL ASSETS AT FAIR VALUE THROUGH OTHER COMPREHENSIVE					INCOME
	September 30,	December		31,	September		30,
	2021		2020			2020
Non-current
Investments in equity instruments at fair value
through other comprehensive income
(FVTOCI)	$ 49,098	$	39,098		$	38,344
Domestic investments
Unlisted shares	$ 10,000	$		-	$		-
Foreign investments
Unlisted shares	39,098		39,098			38,344
	$ 49,098	$	39,098		$	38,344

8. FINANCIAL ASSETS AT FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME

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 at FVTOCI as 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

	September 30,	December 31,	September 30,
	2021	2020	2020
Notes receivable
Operating	$ 102,302	$ 234,591	$ 209,740
Less: Allowance for impairment loss	(70)	(122)	(194)
	$ 102,232	$ 234,469	$ 209,546
			(Continued)

13 -

	September 30,	September 30,	December 31,	December 31,	September 30,	September 30,
		2021		2020		2020
Accounts receivable
At amortized cost
Gross carrying amount	$	702,595	$	655,119	$	653,199
Less: Allowance for impairment loss		(19,186)		(29,613)		(20,426)
	$	683,409	$	625,506	$	632,773
Other receivables
Business tax	$	26,813	$	43,733	$	63,605
Others		45,512		18,207		29,703
		72,325		61,940		93,308
Less: Allowance for impairment loss		(2,939)		(2,939)		(2,939)
	$	69,386	$	59,001	$	90,369

(Concluded)

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 group 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 debts. In addition, the Group 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 Group’s credit risk was significantly reduced.

The Group 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 by reference to the past default experience of the debtor and an analysis of the debtor’s current financial position, adjusted for general economic conditions of the industry in which the debtors operate and an assessment of both the current as well as the forecasted direction of economic conditions at the reporting date. As the Group’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 Group’s different customer base.

The Group writes off an accounts receivable when there is information 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 Group continues to engage in enforcement activity to attempt to recover the receivables due. Where recoveries are made, these are recognized in profit or loss.

14 -

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

September 30, 2021

Gross carrying amount Loss allowance (Lifetime ECLs) Amortized cost December 31, 2020 Gross carrying amount Loss allowance (Lifetime ECLs) Amortized cost September 30, 2020 Gross carrying amount Loss allowance (Lifetime ECLs) Amortized cost	Less than 30 Days $ 250,595 (2,552) $ 248,043 Less than 30 Days $ 229,231 (2,015) $ 227,216 Less than 30 Days $ 264,254 (2,766) $ 261,488	31 to 90 Days $ 207,133 (1,690) $ 205,443 31 to 90 Days $ 290,073 (2,492) $ 287,581 31 to 90 Days $ 236,057 (1,783) $ 234,274	91 to 180 Days $ 118,803 (1,014) $ 117,789 91 to 180 Days $ 176,316 (851) $ 175,465 91 to 180 Days $ 116,615 (618) $ 115,997	Over 180 Days $ 228,366 (14,000) $ 214,366 Over 180 Days $ 194,090 (24,377) $ 169,713 Over 180 Days $ 246,013 (15,453) $ 230,560	Total $ 804,897 (19,256) $ 785,641 Total $ 889,710 (29,735) $ 859,975 Total $ 862,939 (20,620) $ 842,319

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

Balance at January 1 Less: Amounts written off Less: Net remeasurement of loss allowance Foreign exchange gains and losses Balance at September 30	For the Nine Months Ended September 30	For the Nine Months Ended September 30	For the Nine Months Ended September 30
		2021 $ 29,735 (4,165) (6,189) (125) $ 19,256	2020 $ 29,689 - (8,997) (72) $ 20,620

As of September 30, 2021, December 31, 2020 and September 30, 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, $19,041 thousand and $19,041 thousand, respectively. The expected credit losses recognized are carrying amounts of notes receivable and accounts receivable. The Group does not hold any collateral over the balance of these notes receivable and accounts receivable.

15 -

10. INVENTORIES

	September 30,	September 30,	December 31,	December 31,	September 30,	September 30,
		2021		2020		2020
Finished goods	$	12,362	$	27,920	$	38,878
Work in progress		1,048,687		1,094,659		1,421,623
Raw materials		518,510		376,792		404,672
Inventory in transit		141		4,045		-
	$	1,579,700	$	1,503,416	$	1,865,173

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

Cost of goods sold Write downs of (reversal of) inventories Sale of scraps	For the Three Months Ended September 30 2021 2020 $ 2,013,196 $ 1,787,300 $ 11,292 $ (9,497) $ (8,229) $ (286)	For the Three Months Ended September 30 2021 2020 $ 2,013,196 $ 1,787,300 $ 11,292 $ (9,497) $ (8,229) $ (286)		For the Nine Months Ended September 30	For the Nine Months Ended September 30
		2021 $ 2,013,196 $ 11,292 $ (8,229)		2021 $ 5,585,145 $ (1,746) $ (8,578)	2020 $ 5,057,385 $ (5,154) $ (549)

The Group did not pledge inventories as collateral for bank borrowings.

11. SUBSIDIARIES

a. Subsidiaries included in the consolidated financial statements

Investor
Investee
Nature of Activities
MIRLE
AUTOMATION
CORPORATION
MIRTEK (BVI) CORP. LTD. Investment
MIRLE AUTOMATION
INTER CO., LTD
Machinery installation
construction, automatic
warehousing and logistics
equipment and cybernation
equipment construction
David Investment co., ltd.
Investment
FACTORY AUTOMATION
INTERNATIONAL CO.,
LTD.
Design of computer
application package
software and sale of
computer peripheral
equipment
MIRTEK (BVI)
CORP. LTD.
Mirle Automation Technology
(Shanghai) 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
MIRLE HOLDING CO., LTD. Investment

Proportion of Ownership (%)
September 30,
2021
December 31,
2020
September 30,
2020
Remark
100
100
100
1
100
100
100
1
99
99
99
1
51
51
-
1
100
100
100
2
100
100
100
1
(Continued)

16 -

Investor
Investee
Nature of Activities
MIRLE HOLDING
CO., LTD.
Mirle Automation (Kunshan)
Co., Ltd.
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
David Investment Co.,
Ltd.
IOT SERVICES
INFORMATION SYSTEM
CORPORATION
Machinery and equipment
manufacturing and
installation construction,
wholesale and retail sale of
computing and business
machinery equipment
IOT SERVICES
INFORMATION
SYSTEM
CORPORATION
VAN QUOC INFORMATION
TECHNOLOGY
CONSULTING SERVICES
CO., LTD.
Machinery and equipment
installation construction,
wholesale and retail sale of
computing and business
machinery equipment

Proportion of Ownership (%)
September 30,
2021
December 31,
2020
September 30,
2020
Remark
100
100
100
1
100
99
99
1
100
100
100
1

(Concluded)

Remarks:

1) Company is an immaterial subsidiary; its financial statements have not been reviewed. Management considers that even if these financial statements are to be reviewed, they would not have a significant impact on the Group.
2) Company is a material subsidiary; its financial statements have been reviewed.

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 more information, refer to Note 27 to the consolidated financial statements for the year ended December 31, 2020.

12. INVESTMENTS ACCOUNTED FOR USING THE EQUITY METHOD

	September 30,	December	31,	September	30,
	2021	2020		2020
Investments in associates
Material associates
MAIN DRIVE CORPORATION	$ 42,609	$ 37,374		$ 42,956
Mirle Automation Technology (Guangdong)
Co., Ltd.	10,521		-		-
	$ 53,130	$ 37,374		$ 42,956

Refer to Note 33(b) for the nature of activities, principal places of business and countries of incorporation of associates.

17 -

The Group adopts the equity method to account for the above associate.

a. Material associates

Name of Associate MAIN DRIVE CORPORATION Mirle Automation Technology (Guangdong) Co., Ltd.	Proportion of Ownership and Voting Rights
	September 30, 2021 December 31, 2020 September 30, 2020 26.85% 27.61% 27.61% 49% - -

The Corporation subscribed for 3,928 thousand ordinary 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 20.4% to 27.61%.

The Corporation subscribed for 2,485 thousand ordinary 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%.

The Corporation reinvested Mirle Automation Technology (Guangdong) Co., Ltd. with its own funds through Mirle Automation Technology (Shanghai) Co., Ltd. for RMB2,450 thousand in cash after approval was obtained from the board of directors on August 11, 2021. As of September 30, 2021, the shareholding ratio was 49%.

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

MAIN DRIVE CORPORATION

September 30, 2021 December 31, 2020 September 30, 2020 Current assets $ 118,094 $ 85,563 $ 102,990 Non-current assets 143,492 133,939 127,524 Current liabilities (59,983) (43,255) (49,408) Non-current liabilities (42,910) (40,880) (25,523) Equity $ 158,693 $ 135,367 $ 155,583 Proportion of the Group’s ownership 26.85% 27.61% 27.61% Equity attributable to the Group $ 42,609 $ 37,374 $ 42,956 Carrying amount $ 42,609 $ 37,374 $ 42,956 For the Three Months Ended September 30 For the Nine Months Ended September 30 2021 2020 2021 2020 Operating revenue $ 5,208 $ 508 $ 11,955 $ 1,822 Net loss for the period $ (28,880) $ (24,082) $ (76,674) $ (64,128)	September 30, 2021 December 31, 2020 September 30, 2020 Current assets $ 118,094 $ 85,563 $ 102,990 Non-current assets 143,492 133,939 127,524 Current liabilities (59,983) (43,255) (49,408) Non-current liabilities (42,910) (40,880) (25,523) Equity $ 158,693 $ 135,367 $ 155,583 Proportion of the Group’s ownership 26.85% 27.61% 27.61% Equity attributable to the Group $ 42,609 $ 37,374 $ 42,956 Carrying amount $ 42,609 $ 37,374 $ 42,956 For the Three Months Ended September 30 For the Nine Months Ended September 30 2021 2020 2021 2020 Operating revenue $ 5,208 $ 508 $ 11,955 $ 1,822 Net loss for the period $ (28,880) $ (24,082) $ (76,674) $ (64,128)	September 30, 2021 December 31, 2020 September 30, 2020 Current assets $ 118,094 $ 85,563 $ 102,990 Non-current assets 143,492 133,939 127,524 Current liabilities (59,983) (43,255) (49,408) Non-current liabilities (42,910) (40,880) (25,523) Equity $ 158,693 $ 135,367 $ 155,583 Proportion of the Group’s ownership 26.85% 27.61% 27.61% Equity attributable to the Group $ 42,609 $ 37,374 $ 42,956 Carrying amount $ 42,609 $ 37,374 $ 42,956 For the Three Months Ended September 30 For the Nine Months Ended September 30 2021 2020 2021 2020 Operating revenue $ 5,208 $ 508 $ 11,955 $ 1,822 Net loss for the period $ (28,880) $ (24,082) $ (76,674) $ (64,128)	September 30, 2021 December 31, 2020 September 30, 2020 Current assets $ 118,094 $ 85,563 $ 102,990 Non-current assets 143,492 133,939 127,524 Current liabilities (59,983) (43,255) (49,408) Non-current liabilities (42,910) (40,880) (25,523) Equity $ 158,693 $ 135,367 $ 155,583 Proportion of the Group’s ownership 26.85% 27.61% 27.61% Equity attributable to the Group $ 42,609 $ 37,374 $ 42,956 Carrying amount $ 42,609 $ 37,374 $ 42,956 For the Three Months Ended September 30 For the Nine Months Ended September 30 2021 2020 2021 2020 Operating revenue $ 5,208 $ 508 $ 11,955 $ 1,822 Net loss for the period $ (28,880) $ (24,082) $ (76,674) $ (64,128)	September 30, 2021 December 31, 2020 September 30, 2020 Current assets $ 118,094 $ 85,563 $ 102,990 Non-current assets 143,492 133,939 127,524 Current liabilities (59,983) (43,255) (49,408) Non-current liabilities (42,910) (40,880) (25,523) Equity $ 158,693 $ 135,367 $ 155,583 Proportion of the Group’s ownership 26.85% 27.61% 27.61% Equity attributable to the Group $ 42,609 $ 37,374 $ 42,956 Carrying amount $ 42,609 $ 37,374 $ 42,956 For the Three Months Ended September 30 For the Nine Months Ended September 30 2021 2020 2021 2020 Operating revenue $ 5,208 $ 508 $ 11,955 $ 1,822 Net loss for the period $ (28,880) $ (24,082) $ (76,674) $ (64,128)
			2021 $ 11,955 $ (76,674)	2020 $ 1,822 $ (64,128)

18 -

Mirle Automation Technology (Guangdong) Co., Ltd.

				September 30,	September 30,
					2020
Current assets				$	24,640
Non-current assets					-
Current liabilities					(3,305)
Non-current liabilities					-
Equity				$	21,335
Proportion of the Group’s ownership					49%
Equity attributable to the Group				$	10,454
Carrying amount				$	10,521
	For	the Three		For	the Nine
	Months Ended			Months Ended
	September		30,	September 30,
		2021			2021
Operating revenue	$		-	$	-
Net loss for the period	$	(138)		$	(138)

b. The investments in associates accounted for using the equity method, and the share of profit or loss and other comprehensive income (loss) of those investments for the nine months ended September 30, 2021 and 2020 were based on unreviewed financial statements of the investees for the same reporting periods as those of the Group. Management considers that even if these financial statements are to be reviewed, they would not have a significant impact on the Group.

13. PROPERTY, PLANT AND EQUIPMENT

	September 30,	December 31,	September 30,
	2021	2020	2020
Assets used by the Group	$ 2,601,286	$ 2,448,940	$ 2,431,827
Assets leased under operating leases	902	513	501
	$ 2,602,188	$ 2,449,453	$ 2,432,328

Cost Balance at January 1, 2021 Additions Disposals Transfers to assets leased under operating leases Reclassified Effects of foreign currency exchange differences Balance at September 30, 2021				Assets Used by	the Group				Assets Leased und Lease	er Operating s Machinery Equipment Total $ - $ 3,241,678 - 256,345 - (26,203 ) 1,142 - - - - (15,599) $ 1,142 $ 3,456,221 (Continued)
		Freehold Land $ 179,901 - - - - - $ 179,901	Buildings and Accessory Equipment $ 2,316,942 20,656 (3,165 ) - 3,913 (13,003) $ 2,325,343	Machinery Equipment $ 305,432 27,288 (18,067 ) (1,142 ) 15,236 (1,070) $ 327,677	Transportation Equipment $ 48,849 5,307 (3,469 ) - - (666) $ 50,021	Office Equipment $ 90,879 9,647 (1,502 ) - - (851) $ 98,173	Work In Progress $ 299,139 193,447 - - (19,149 ) - $ 473,437		Buildings and Accessory Equipment $ 536 - - - - (9) $ 527

19 -

Accumulated depreciation Balance at January 1, 2021 Depreciation expenses Disposals Transfers to assets leased under operating leases Effects of foreign currency exchange differences Balance at September 30, 2021 Accumulated impairment Balance at January 1, 2021 Disposals Balance at September 30, 2021 Carrying amounts at December 31, 2020 and January 1, 2021 Carrying amounts at September 30, 2021 Cost Balance at January 1, 2020 Additions Transfers from assets leased under operating leases Disposals Transfers to assets used by the Group Reclassified Effects of foreign currency exchange differences Balance at September 30, 2020 Accumulated depreciation Balance at January 1, 2020 Depreciation expenses Transfers from assets leased under operating leases Disposals Transfers to assets used by the Group Effects of foreign currency exchange differences Balance at September 30, 2020 Accumulated impairment Balance at January 1, 2020 and September 30, 2020 Carrying amounts at September 30, 2020				Assets Used by	the Group				Assets Leased und Lease	er Operating s Machinery Equipment Total $ - $ 787,567 91 90,054 - (24,125 ) 641 - - (4,107) $ 732 $ 849,389 $ - $ 4,658 - (14) $ - $ 4,644 $ - $ 2,449,453 $ 410 $ 2,602,188 $ 18,018 $ 2,991,390 - 263,975 - 41,502 - (40,804 ) (17,142 ) (41,502 ) - (32 ) (876) (5,673) $ - $ 3,208,856 $ 1,756 $ 708,376 - 88,203 - 2,381 - (23,368 ) (1,670 ) (2,381 ) (86) (1,341) $ - $ 771,870 $ - $ 4,658 $ - $ 2,432,328 (Concluded)
		Freehold Land $ - - - - - $ - $ - - $ - $ 179,901 $ 179,901 $ 179,901 - - - - - - $ 179,901 $ - - - - - - $ - $ - $ 179,901	Buildings and Accessory Equipment $ 533,479 48,390 (2,969 ) - (2,425) $ 576,475 $ - - $ - $ 1,783,463 $ 1,748,868 $ 2,281,541 934 24,360 (6,390 ) - - (3,215) $ 2,297,230 $ 473,180 48,451 711 (6,390 ) - (583) $ 515,369 $ - $ 1,781,861	Machinery Equipment $ 166,453 28,572 (16,454 ) (641 ) (554) $ 177,376 $ 4,658 (14) $ 4,644 $ 134,321 $ 145,657 $ 296,809 18,362 17,142 (31,576 ) - 3,675 379 $ 304,791 $ 158,477 27,231 1,670 (14,930 ) - (169) $ 172,279 $ 4,658 $ 127,854	Transportation Equipment $ 32,636 3,842 (3,280 ) - (556) $ 32,642 $ - - $ - $ 16,213 $ 17,379 $ 47,966 647 - (870 ) - - (338) $ 47,405 $ 29,476 3,740 - (555 ) - (272) $ 32,389 $ - $ 15,016	Office Equipment $ 54,976 9,150 (1,422 ) - (575) $ 62,129 $ - - $ - $ 35,903 $ 36,044 $ 84,470 6,462 - (1,968 ) - - (352) $ 88,612 $ 44,773 8,726 - (1,493 ) - (196) $ 51,810 $ - $ 36,802	Work In Progress $ - - - - - $ - $ - - $ - $ 299,139 $ 473,437 $ 56,530 237,570 - - - (3,707 ) - $ 290,393 $ - - - - - - $ - $ - $ 290,393		Buildings and Accessory Equipment $ 23 9 - - 3 $ 35 $ - - $ - $ 513 $ 492 $ 26,155 - - - (24,360 ) - (1,271) $ 524 $ 714 55 - - (711 ) (35) $ 23 $ - $ 501

Operating leases are related to leases of buildings and ancillary equipment and machinery equipment with lease terms between 2 to 10 years. 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:

		September 30,	September 30,	December 31,	December 31,	September 30,	September 30,
			2021		2020		2020
Year	1	$	3,744	$	119	$	119
Year	2		121		119		119
Year	3		-		89		119
		$	3,865	$	327	$	357

There was no indication of impairment for the nine months ended September 30, 2021 and 2020.

The Group’s 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

20 -

Electromechanical power equipment are depreciated on a straight-line basis over their estimated useful lives of 40-50 years and 3-15 years.

14. LEASE ARRANGEMENTS

a. Right-of-use assets

Carrying amounts Land Transportation equipment Additions to right-of-use assets Depreciation charge for right-of-use assets Land Buildings Transportation equipment	September 30, 2021 December 31, 2020 September 30, 2020 $ 334,556 $ 356,843 $ 362,046 4,559 3,990 929 $ 339,115 $ 360,833 $ 362,975 For the Three Months Ended September 30 For the Nine Months Ended September 30 2021 2020 2021 2020 $ 2,007 $ 11,409 $ 6,914 $ 7,290 $ 20,924 $ 21,991 - 101 - 453 677 196 1,438 889 $ 7,591 $ 7,587 $ 22,362 $ 23,333	September 30, 2021 December 31, 2020 September 30, 2020 $ 334,556 $ 356,843 $ 362,046 4,559 3,990 929 $ 339,115 $ 360,833 $ 362,975 For the Three Months Ended September 30 For the Nine Months Ended September 30 2021 2020 2021 2020 $ 2,007 $ 11,409 $ 6,914 $ 7,290 $ 20,924 $ 21,991 - 101 - 453 677 196 1,438 889 $ 7,591 $ 7,587 $ 22,362 $ 23,333	September 30, 2021 December 31, 2020 September 30, 2020 $ 334,556 $ 356,843 $ 362,046 4,559 3,990 929 $ 339,115 $ 360,833 $ 362,975 For the Three Months Ended September 30 For the Nine Months Ended September 30 2021 2020 2021 2020 $ 2,007 $ 11,409 $ 6,914 $ 7,290 $ 20,924 $ 21,991 - 101 - 453 677 196 1,438 889 $ 7,591 $ 7,587 $ 22,362 $ 23,333	September 30, 2021 December 31, 2020 September 30, 2020 $ 334,556 $ 356,843 $ 362,046 4,559 3,990 929 $ 339,115 $ 360,833 $ 362,975 For the Three Months Ended September 30 For the Nine Months Ended September 30 2021 2020 2021 2020 $ 2,007 $ 11,409 $ 6,914 $ 7,290 $ 20,924 $ 21,991 - 101 - 453 677 196 1,438 889 $ 7,591 $ 7,587 $ 22,362 $ 23,333	September 30, 2021 December 31, 2020 September 30, 2020 $ 334,556 $ 356,843 $ 362,046 4,559 3,990 929 $ 339,115 $ 360,833 $ 362,975 For the Three Months Ended September 30 For the Nine Months Ended September 30 2021 2020 2021 2020 $ 2,007 $ 11,409 $ 6,914 $ 7,290 $ 20,924 $ 21,991 - 101 - 453 677 196 1,438 889 $ 7,591 $ 7,587 $ 22,362 $ 23,333	September 30, 2021 December 31, 2020 September 30, 2020 $ 334,556 $ 356,843 $ 362,046 4,559 3,990 929 $ 339,115 $ 360,833 $ 362,975 For the Three Months Ended September 30 For the Nine Months Ended September 30 2021 2020 2021 2020 $ 2,007 $ 11,409 $ 6,914 $ 7,290 $ 20,924 $ 21,991 - 101 - 453 677 196 1,438 889 $ 7,591 $ 7,587 $ 22,362 $ 23,333
		2021 $ 6,914 - 677 $ 7,591			2021 $ 2,007 $ 20,924 - 1,438 $ 22,362	2020 $ 11,409 $ 21,991 453 889 $ 23,333

Except for recognized depreciation, the Group did not have significant sublease or impairment of right-of-use assets during the nine months ended September 30, 2021 and 2020.

b. Lease liabilities

	September 30,	December 31,	December 31,	September 30,	September 30,
	2021		2020		2020
Carrying amounts
Current	$ 25,223	$	24,241	$	23,152
Non-current	$ 239,822	$	257,252	$	260,902
Range of discount rate for lease liabilities was as follows:
	September 30,	December 31,		September 30,
	2021		2020		2020
Land	1.90%-2.10%	1.90%-2.10%		1.40%-2.10%
Transportation equipment	1.40%-1.44%		1.40%		1.40%

c. Material lease-in activities and terms

The Group leases land, buildings and transportation equipment for office space and operational uses with lease terms of 2-50 years, 2 years and 2-3 years, respectively. The Group does not have bargain

21 -

purchase options to acquire the land, buildings and transportation equipment at the end of the lease terms.

d. Other lease information

Lease arrangements under operating leases for the leasing out of freehold property, plant and equipment are set out in Note 13.

Expenses relating to short-term leases Expenses relating to low-value asset leases Total cash outflow for leases	For the Three Months Ended September 30 2021 2020 $ 1,397 $ 2,382 $ 276 $ 406	For the Three Months Ended September 30 2021 2020 $ 1,397 $ 2,382 $ 276 $ 406	For the Nine Months Ended September 30	For the Nine Months Ended September 30	For the Nine Months Ended September 30
		2021 $ 1,397 $ 276		2021 $ 5,066 $ 639 $ (24,160)	2020 $ 8,664 $ 1,277 $ (29,004)

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

15. GOODWILL

September 30, 2021 Goodwill $ 42,310 Balance at January 1 Effect of foreign currency exchange differences Balance at September 30 OTHER INTANGIBLE ASSETS Franchises Computer Software Cost Balance at January 1, 2021 $ 9,389 $ 56,043 Additions - 2,658 Decrease - (3,363) Effect of foreign currency exchange differences - (219) Balance at September 30, 2021 $ 9,389 $ 55,119	December 31, 2020 September 30, 2020 $ 43,906 $ 11,589 For the Nine Months Ended September 30	December 31, 2020 September 30, 2020 $ 43,906 $ 11,589 For the Nine Months Ended September 30	December 31, 2020 September 30, 2020 $ 43,906 $ 11,589 For the Nine Months Ended September 30
		2021 $ 43,906 (1,596) $ 42,310 Others $ 49,436 21,809 - (329) $ 70,916	2020 $ 12,663 (1,074) $ 11,589 Total $ 114,868 24,467 (3,363) (548) $ 135,424 (Continued)

16. OTHER INTANGIBLE ASSETS

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Accumulated amortization Balance at January 1, 2021 Amortization expense Decrease Effect of foreign currency exchange differences Balance at September 30, 2021 Carrying amounts at December 31, 2020 and January 1, 2021 Carrying amounts at September 30, 2021 Cost Balance at January 1, 2020 Additions Decrease Effect of foreign currency exchange differences Balance at September 30, 2020 Accumulated amortization Balance at January 1, 2020 Amortization expense Decrease Effect of foreign currency exchange differences Balance at September 30, 2020 Carrying amounts at September 30, 2020	Franchises $ 3,755 352 - - $ 4,107 $ 5,634 $ 5,282 $ 9,389 - - - $ 9,389 $ 3,286 352 - - $ 3,638 $ 5,751	Computer Software $ 29,024 10,835 (3,363) (150) $ 36,346 $ 27,019 $ 18,773 $ 58,319 6,237 (8,673) (62) $ 55,821 $ 29,031 11,353 (8,664) (47) $ 31,673 $ 24,148	Others $ 30,428 10,018 - (123) $ 40,323 $ 19,008 $ 30,593 $ 39,103 6,635 - (107) $ 45,631 $ 23,118 5,132 - (29) $ 28,221 $ 17,410	Total $ 63,207 21,205 (3,363) (273) $ 80,776 $ 51,661 $ 54,648 $ 106,811 12,872 (8,673) (169) $ 110,841 $ 55,435 16,837 (8,664) (76) $ 63,532 $ 47,309 (Concluded)

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 nine months ended September 30, 2021 and 2020, which were recognized as other income, amounted to $1,851 thousand and $1,928 thousand, respectively.

Other intangible assets pledged as collateral for bank borrowings are set out in Note 30.

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17. OTHER CURRENT ASSETS

	September 30,	September 30,	December 31,	December 31,	September 30,	September 30,
		2021		2020		2020
Current
Payments in advance	$	100,743	$	11,465	$	11,875
Overpaid VAT		29,963		59,448		56,520
Temporary payments		14,458		22,074		22,052
Prepayments for construction		13,724		37,386		47,068
Others		52,915		45,776		48,738
	$	211,803	$	176,149	$	186,253
Non-current
Prepayments for investments	$	-	$	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.

18. BORROWINGS

a. Short-term bank loans

	September 30,	December 31,	September 30,
	2021	2020	2020
Unsecured borrowings
Working capital loan	$ 300,000	$ 300,000	$ 800,000

The effective interest rates on the working capital loan were 0.51%, 0.51% and 0.51%-0.69% as of September 30, 2021, December 31, 2020 and September 30, 2020, respectively.

b. Long-term bank loans

	September	30,	December 31,	September	30,
	2021		2020	2020
Unsecured borrowings
Bank loans (expiring before April 15, 2025)	$ 1,076,367		$ 1,063,967	$ 1,065,217
Less: Current portion		-	(5,000)		-
	$ 1,076,367		$ 1,058,967	$ 1,065,217

The effective interest rates of the bank loans were 0.41%-0.50%, 0.41%-0.85% and 0.41%-0.85% as of September 30, 2021, December 31, 2020 and September 30, 2020, respectively.

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19. ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES

September 30, 2021 Bonus $ 234,307 Salaries 93,451 Payables for equipment 35,776 Compensation of employees and remuneration of directors and supervisors 12,764 Others 205,602 $ 581,900 PROVISIONS - CURRENT September 30, 2021 Warranties $ 13,154 Balance at January 1 Additional provisions recognized Amount used Effect of foreign currency exchange differences Balance at September 30	December 31, 2020 September 30, 2020 $ 264,388 $ 222,382 111,281 98,164 15,539 8,588 14,672 11,346 189,458 107,841 $ 595,338 $ 448,321 December 31, 2020 September 30, 2020 $ 4,356 $ 6,165 For the Nine Months Ended September 30	December 31, 2020 September 30, 2020 $ 264,388 $ 222,382 111,281 98,164 15,539 8,588 14,672 11,346 189,458 107,841 $ 595,338 $ 448,321 December 31, 2020 September 30, 2020 $ 4,356 $ 6,165 For the Nine Months Ended September 30	December 31, 2020 September 30, 2020 $ 264,388 $ 222,382 111,281 98,164 15,539 8,588 14,672 11,346 189,458 107,841 $ 595,338 $ 448,321 December 31, 2020 September 30, 2020 $ 4,356 $ 6,165 For the Nine Months Ended September 30
		2021 $ 4,356 26,078 (17,264) (16) $ 13,154	2020 $ 8,035 20,181 (22,046) (5) $ 6,165

20. PROVISIONS - CURRENT

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 Group’s obligations for warranties under contracts for the sale of goods. The estimate had 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.

21. RETIREMENT BENEFIT PLANS

Employee benefit expenses in respect of the Corporation’s defined benefit retirement plans amounted to $1,006 thousand and $1,524 thousand for the three months ended September 30, 2020 and 2019, respectively, and $3,018 thousand and $4,574 thousand for the nine months ended September 30, 2021 and 2020, respectively. The employee benefit expenses were calculated using the actuarially determined pension cost discount rates as of December 31, 2020 and 2019.

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22. EQUITY

a. Share capital

1) Ordinary shares

	September 30,	December 31,	September 30,
	2021	2020	2020
Share authorized (in thousands of shares)	226,000	226,000	226,000
Share authorized	$ 2,260,000	$ 2,260,000	$ 2,260,000
Share issued and fully paid (in thousands
of shares)	195,531	195,531	195,531
Share issued	$ 1,955,312	$ 1,955,312	$ 1,955,312

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

A total of 20,000 thousand shares of the share capital were reserved for the issuance of employee share options, preference shares with warrants or bonds with attached share options.

b. Capital surplus

	September 30,	December	31,	September	30,
	2021	2020		2020
May be used to offset a deficit, distributed
as cash dividends, or transferred to share
capital (1)
Conversion of bonds	$ 234,579	$ 234,579		$ 234,579
Treasury share transactions	19,150	19,150		19,150
	253,729	253,729		253,729
May be used to offset a deficit only
Share of changes in capital surplus of joint
ventures (2)	1,233		-		-
	$ 254,962	$ 253,729		$ 253,729

1) The premium from shares issued in excess of par 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 capital (limited to a certain percentage of the Corporation’s capital surplus and once a year).
2) According to IAS 28, if the Corporation did not acquire the equity of its associates from their seasoned equity offering in accordance with the proportion of ownership, which caused the proportion of ownership to change but still had significant impact, its adjusted capital surplus may only be used to offset a deficit.
c. Retained earnings and dividends policy

Under the dividends policy as set forth in the Corporation’s articles of incorporation (the “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

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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. For the policies on the distribution of compensation of employees and remuneration of directors after the amendment, refer to “Compensation of employees and remuneration of directors” in Note 24(h).

In accordance with the Corporation’s Articles, the dividends policy is to enable the shareholders to have a share in the Group’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.

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 Group has no deficit and the legal reserve has exceeded 25% of the Group’s paid-in capital, the excess may be transferred to capital or distributed in cash.

The appropriations of earnings for 2020 and 2019 were approved in the shareholders’ meetings on July 29, 2021 and June 12, 2020, respectively. The appropriations and dividends per share 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

d. Special reserve

Balance at January 1 (Reversal of) appropriations in respect of Debits to other equity items Balance at September 30		For the Nine Months Ended September 30
		2021 2020 $ 173,348 $ 108,311 (21,298) 65,037 $ 152,050 $ 173,348

e. Non-controlling interests

Balance at January 1 Share of profit for the period Other comprehensive (loss) income for the period Exchange differences on the translation of the financial statements of foreign operations Balance at September 30	For the Nine Months Ended September 30	For the Nine Months Ended September 30
		2021 2020 $ 9,952 $ 182 1,810 11 (93) - $ 11,669 $ 193

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23. REVENUE

a. Revenue from contracts with customers

b. c.	For the Three Months Ended September 30 For the Nine Months Ended September 30 2021 2020 2021 2020 Revenue from contracts with customers Construction contract revenue $ 1,916,983 $ 1,322,272 $ 4,957,365 $ 3,903,383 Revenue from the sale of goods 487,728 825,312 1,778,261 2,172,608 Revenue from the rendering of services 132,709 99,408 415,044 342,655 $ 2,537,420 $ 2,246,992 $ 7,150,670 $ 6,418,646 Contract balances September 30, 2021 December 31, 2020 September 30, 2020 January 1, 2020 Notes receivable (Note 9) $ 102,232 $ 234,469 $ 209,546 $ 98,022 Accounts receivable (Note 9) $ 683,409 $ 625,506 $ 632,773 $ 1,099,350 Receivables from related parties (Note 29) $ 5,185 $ 1,993 $ 2,983,901 $ 4,000 Contract assets - current Construction of properties $ 2,646,716 $ 2,615,024 $ 3,221,524 $ 2,607,856 Contract liabilities - current Construction of properties $ 882,009 $ 1,676,671 $ 1,156,321 $ 1,520,694 Disaggregation of revenue Reportable Segments Automatic Production Line and Equipment Segment Information and Controller Segment Total For the nine months ended September 30, 2021 Type of goods or services Construction contract revenue $ 4,640,239 $ 317,126 $ 4,957,365 Revenue from the sale of goods 236,034 1,542,227 1,778,261 Revenue from the rendering of services 67,478 347,566 415,044 $ 4,943,751 $ 2,206,919 $ 7,150,670	For the Three Months Ended September 30 For the Nine Months Ended September 30 2021 2020 2021 2020 Revenue from contracts with customers Construction contract revenue $ 1,916,983 $ 1,322,272 $ 4,957,365 $ 3,903,383 Revenue from the sale of goods 487,728 825,312 1,778,261 2,172,608 Revenue from the rendering of services 132,709 99,408 415,044 342,655 $ 2,537,420 $ 2,246,992 $ 7,150,670 $ 6,418,646 Contract balances September 30, 2021 December 31, 2020 September 30, 2020 January 1, 2020 Notes receivable (Note 9) $ 102,232 $ 234,469 $ 209,546 $ 98,022 Accounts receivable (Note 9) $ 683,409 $ 625,506 $ 632,773 $ 1,099,350 Receivables from related parties (Note 29) $ 5,185 $ 1,993 $ 2,983,901 $ 4,000 Contract assets - current Construction of properties $ 2,646,716 $ 2,615,024 $ 3,221,524 $ 2,607,856 Contract liabilities - current Construction of properties $ 882,009 $ 1,676,671 $ 1,156,321 $ 1,520,694 Disaggregation of revenue Reportable Segments Automatic Production Line and Equipment Segment Information and Controller Segment Total For the nine months ended September 30, 2021 Type of goods or services Construction contract revenue $ 4,640,239 $ 317,126 $ 4,957,365 Revenue from the sale of goods 236,034 1,542,227 1,778,261 Revenue from the rendering of services 67,478 347,566 415,044 $ 4,943,751 $ 2,206,919 $ 7,150,670	For the Three Months Ended September 30 For the Nine Months Ended September 30 2021 2020 2021 2020 Revenue from contracts with customers Construction contract revenue $ 1,916,983 $ 1,322,272 $ 4,957,365 $ 3,903,383 Revenue from the sale of goods 487,728 825,312 1,778,261 2,172,608 Revenue from the rendering of services 132,709 99,408 415,044 342,655 $ 2,537,420 $ 2,246,992 $ 7,150,670 $ 6,418,646 Contract balances September 30, 2021 December 31, 2020 September 30, 2020 January 1, 2020 Notes receivable (Note 9) $ 102,232 $ 234,469 $ 209,546 $ 98,022 Accounts receivable (Note 9) $ 683,409 $ 625,506 $ 632,773 $ 1,099,350 Receivables from related parties (Note 29) $ 5,185 $ 1,993 $ 2,983,901 $ 4,000 Contract assets - current Construction of properties $ 2,646,716 $ 2,615,024 $ 3,221,524 $ 2,607,856 Contract liabilities - current Construction of properties $ 882,009 $ 1,676,671 $ 1,156,321 $ 1,520,694 Disaggregation of revenue Reportable Segments Automatic Production Line and Equipment Segment Information and Controller Segment Total For the nine months ended September 30, 2021 Type of goods or services Construction contract revenue $ 4,640,239 $ 317,126 $ 4,957,365 Revenue from the sale of goods 236,034 1,542,227 1,778,261 Revenue from the rendering of services 67,478 347,566 415,044 $ 4,943,751 $ 2,206,919 $ 7,150,670	For the Nine Months Ended September 30	For the Nine Months Ended September 30
					2020 $ 3,903,383 2,172,608 342,655 $ 6,418,646 January 1, 2020 $ 98,022 $ 1,099,350 $ 4,000 $ 2,607,856 $ 1,520,694
			Automatic Production Line and Equipment Segment Information and Controller Segment $ 4,640,239 $ 317,126 236,034 1,542,227 67,478 347,566 $ 4,943,751 $ 2,206,919		Total $ 4,957,365 1,778,261 415,044 $ 7,150,670

(Continued)

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For the nine months ended September 30, 2020 Type of goods or services Construction contract revenue Revenue from the sale of goods Revenue from the rendering of services		Reportable Segments
		Automatic Production Line and Equipment Segment Information and Controller Segment $ 3,338,568 $ 564,815 242,379 1,930,229 70,831 271,824 $ 3,651,778 $ 2,766,868	Total $ 3,903,383 2,172,608 342,655 $ 6,418,646 (Concluded)

24. NET PROFIT (LOSS) FROM CONTINUING OPERATIONS

a. Other operating income and expenses

For the Three Months Ended September 30 2021 2020 $ 35 $ (867) - - $ 35 $ (867) For the Three Months Ended September 30 2021 2020 $ 4,975 $ 5,120 2,401 - $ 7,376 $ 5,120 For the Three Months Ended September 30 2021 2020 $ (474) $ - 467 608 867 48 3,392 16,666 $ 4,252 $ 17,322	For the Nine Months Ended September 30	For the Nine Months Ended September 30
	2021 2020 $ (423) $ 1,719 - (9) $ (423) $ 1,710 For the Nine Months Ended September 30
	2021 2020 $ 13,449 $ 18,096 2,404 - $ 15,853 $ 18,096 For the Nine Months Ended September 30
2021 $ (474) 467 867 3,392 $ 4,252	2021 $ 10,236 1,851 966 6,406 $ 19,459	2020 $ 10,350 1,928 492 38,102 $ 50,872

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d. Other gains and losses

For the Three Months Ended September 30 2021 2020 $ 132 $ 42 (2,298) (2,479) $ (2,166) $ (2,437) For the Three Months Ended September 30 2021 2020 $ 1,391 $ 2,076 1,357 1,449 $ 2,748 $ 3,525 For the Three Months Ended September 30 2021 2020 $ 30,199 $ 28,595 7,591 7,587 7,294 5,673 $ 45,084 $ 41,855 $ 11,227 $ 10,200 26,563 25,982 $ 37,790 $ 36,182 $ 1,760 $ 1,361 468 414 3,923 2,612 1,026 1,169 117 117 $ 7,294 $ 5,673	For the Nine Months Ended September 30	For the Nine Months Ended September 30
	2021 2020 $ 255 $ 204 (5,068) (4,939) $ (4,813) $ (4,735) For the Nine Months Ended September 30
	2021 2020 $ 4,492 $ 5,642 4,132 4,441 $ 8,624 $ 10,083 For the Nine Months Ended September 30
2021 $ 30,199 7,591 7,294 $ 45,084 $ 11,227 26,563 $ 37,790 $ 1,760 468 3,923 1,026 117 $ 7,294	2021 $ 90,054 22,362 21,205 $ 133,621 $ 32,631 79,785 $ 112,416 $ 5,496 1,306 10,971 3,080 352 $ 21,205	2020 $ 88,203 23,333 16,837 $ 128,373 $ 33,261 78,275 $ 111,536 $ 3,876 1,127 7,595 3,887 352 $ 16,837

e. Finance costs
f. Depreciation and amortization
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g. Employee benefits expense

Post-employment benefits Defined contribution plans Defined benefit plans (Note 21) Termination benefits Other employee benefits Total employee benefits expense An analysis of employee benefits expense by function Operating costs Operating expenses	For the Three Months Ended September 30 2021 2020 $ 12,668 $ 11,359 1,006 1,524 13,674 12,883 1,095 1,192 420,175 351,553 $ 434,944 $ 365,628 $ 251,577 $ 179,097 183,367 186,531 $ 434,944 $ 365,628	For the Three Months Ended September 30 2021 2020 $ 12,668 $ 11,359 1,006 1,524 13,674 12,883 1,095 1,192 420,175 351,553 $ 434,944 $ 365,628 $ 251,577 $ 179,097 183,367 186,531 $ 434,944 $ 365,628		For the Nine Months Ended September 30	For the Nine Months Ended September 30
		2021 $ 12,668 1,006 13,674 1,095 420,175 $ 434,944 $ 251,577 183,367 $ 434,944		2021 $ 36,606 3,018 39,624 3,154 1,242,796 $ 1,285,574 $ 722,221 563,353 $ 1,285,574	2020 $ 33,783 4,574 38,357 2,333 1,054,572 $ 1,095,262 $ 544,998 550,264 $ 1,095,262

h. Compensation of employees and remuneration of directors

According to the Corporation’s Articles, the Corporation accrues compensation of employees and remuneration of directors 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.

For the three months and the nine months ended September 30, 2021 and 2020, the compensation of employees and the remuneration of directors were as follows:

Accrual rate

Compensation of employees Remuneration of directors	For the Nine Months Ended September 30
	2021 2020 1% 1% 1.5% 1.5%

Amount

Compensation of employees Remuneration of directors	For the Three Months Ended September 30 2021 2020 $ 1,966 $ 1,121 2,949 1,682	For the Nine Months Ended September 30
		2021 2020 $ 5,098 $ 4,533 7,647 6,799

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

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The appropriations of compensation of employees and remuneration of directors for 2020 and 2019 that were resolved by the board of directors on March 18, 2021 and March 19, 2020, respectively, are as shown below:

Compensation of employees Remuneration of directors	For the Year Ended December 31, 2020 Cash Shares $ 5,863 $ - 8,795 -	For the Year Ended December 31, 2019
		Cash Shares $ 8,602 $ - 12,903 -

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 consolidated 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.

25. INCOME TAXES

a. Income tax recognized in profit or loss

Major components of income tax expense are as follows:

Current tax In respect of the current period Adjustments for prior year Deferred tax In respect of the current period Income tax expense recognized in profit or loss	For the Three Months Ended September 30 2021 2020 $ 24,128 $ 10,396 10,018 (20,164) - - $ 34,146 $ (9,768)	For the Three Months Ended September 30 2021 2020 $ 24,128 $ 10,396 10,018 (20,164) - - $ 34,146 $ (9,768)	For the Nine Months Ended September 30	For the Nine Months Ended September 30	For the Nine Months Ended September 30
		2021 $ 24,128 10,018 - $ 34,146		2021 $ 62,356 14,245 - $ 76,601	2020 $ 57,457 (20,090) - $ 37,367

b. Income tax assessments

Income tax returns of the Corporation through 2018 have been assessed by the tax authorities.

26. EARNINGS PER SHARE

Basic earnings per share Diluted earnings per share	For the Three Months Ended September 30 2021 2020 $ 0.82 $ 0.66 $ 0.82 $ 0.66	For the Three Months Ended September 30 2021 2020 $ 0.82 $ 0.66 $ 0.82 $ 0.66	Unit: NT$ Per Share For the Nine Months Ended September 30	Unit: NT$ Per Share For the Nine Months Ended September 30	Unit: NT$ Per Share For the Nine Months Ended September 30
		2021 $ 0.82 $ 0.82		2021 $ 2.15 $ 2.15	2020 $ 2.09 $ 2.09

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

Net Profit for the Periods

Net profit attributable to owner of the Corporation Earnings used in the computation of basic earnings per share Earnings used in the computation of diluted earnings per share	For the Three Months Ended September 30 2021 2020 $ 160,539 $ 129,298 160,539 129,298 $ 160,539 $ 129,298	For the Three Months Ended September 30 2021 2020 $ 160,539 $ 129,298 160,539 129,298 $ 160,539 $ 129,298	For the Nine Months Ended September 30
		2021 $ 160,539 160,539 $ 160,539	2021 2020 $ 420,706 $ 409,065 420,706 409,065 $ 420,706 $ 409,065

Weighted average number of ordinary shares outstanding (in thousands of shares):

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 dilutive earnings per share	For the Three Months Ended September 30 2021 2020 195,531 195,531 121 110 195,652 195,641	For the Three Months Ended September 30 2021 2020 195,531 195,531 121 110 195,652 195,641	For the Nine Months Ended September 30
		2021 195,531 121 195,652	2021 2020 195,531 195,531 155 198 195,686 195,729

If the Corporation offered to settle compensation paid to employees in cash or shares, the Corporation assumed the entire amount of the compensation will be settled in shares, and the resulting potential shares were 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.

27. GOVERNMENT GRANTS

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.

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28. 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 that are measured at fair value on a recurring basis
1) Fair value hierarchy

September 30, 2021 Financial assets at FVTPL Beneficiary certificate of 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 September 30, 2020 Financial assets at FVTOCI Investments in equity instruments Foreign unlisted shares	Level 1 $ 370,225 $ - - $ - Level 1 $ - Level 1 $ -	Level 2 $ - $ - - $ - Level 2 $ - Level 2 $ -	Level 3 $ - $ 10,000 39,098 $ 49,098 Level 3 $ 39,098 Level 3 $ 38,344	Total $ 370,225
				$ 10,000 39,098
				$ 49,098
				Total $ 39,098
				Total $ 38,344

There were no transfers between Level 1 and 2 in the current and prior periods.

2) 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 shares 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.

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c. Categories of financial instruments

	September 30,	September 30,	December 31,	December 31,	September 30,	September 30,
		2021		2020		2020
Financial assets
FVTPL
Mandatorily classified as at FVTPL	$	370,225	$	-	$	-
Financial assets at amortized cost
Cash and cash equivalents		1,793,506		2,841,783		1,722,931
Notes receivable, net (including related
parties)		102,232		234,554		209,546
Accounts receivable, net (including related
parties)		688,594		627,414		640,808
Other receivables (including related
parties)		69,766		59,001		90,369
Refundable deposits		107,775		127,937		124,976
Financial assets at FVTOCI
Equity instruments		49,098		39,098		38,344
Financial liabilities
Amortized cost
Short-term bank loans		300,000		300,000		800,000
Notes payable		71,343		63,447		81,899
Accounts payable (including related
parties)		3,011,562		2,646,476		2,545,283
Accrued expenses and other current
liabilities		581,900		595,338		448,321
Long-term bank loans (including current
portion)		1,076,367		1,063,967		1,065,217
Lease liabilities		265,045		281,493		284,054
Guarantee deposits received		318		318		318

d. Financial risk management objectives and policies

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

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

1) Market risk

The Group’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 Group’s exposure to market risks or the manner in which these risks were managed and measured.

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a) Foreign currency risk

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

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

The carrying amounts of the Group’s foreign currency denominated monetary assets and monetary liabilities are set out in Note 32.

Sensitivity analysis

The Group is mainly exposed to the exchange rate fluctuation of the USD, RMB and JPY.

The following table details the Group’s sensitivity to a 5% increase and decrease in 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 positive (negative) number below indicates the increase (decrease) in pre-tax profit associated with the functional currency weakening (strengthening) 5% against the relevant foreign currency.

Profit or loss	USD Impact For the Nine Months Ended September 30 2021 2020 $ (90,313) $ (111,563)	RMB Impact For the Nine Months Ended September 30 2021 2020 $ (1,898) $ (9,656)	JPY Impact
			For the Nine Months Ended September 30
			2021 2020 $ (1,566) $ (775)

The Group’s sensitivity to foreign currency decreased during the current year mainly due to the decrease in USD denominated net assets.

b) Interest rate risk

The Group is exposed to interest rate risk because entities in the Group borrow funds at both fixed and floating interest rates. The risk is managed by the Group 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 rate views and defined risk appetites ensuring the most cost-effective hedging strategies are applied.

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

	September 30,	September 30,	December 31,	December 31,	September 30,	September 30,
		2021		2020		2020
Fair value interest rate risk
Financial assets	$	965,230	$	997,703	$	923,379
Financial liabilities		-		-		800,000
Cash flow interest rate risk
Financial assets		828,276		1,844,080		799,552
Financial liabilities		1,376,367		1,363,967		1,065,217

36 -

Sensitivity analysis

The sensitivity analysis below was determined based on the Group’s exposure to interest rate risk for derivative and non-derivative instruments at the end of the reporting period. For floating rate liabilities, the analysis was prepared assuming the amount of the liabilities outstanding at the end of the reporting period was outstanding for the whole year.

If interest rates had been 1% higher and all other variables were held constant, the Group’s pre-tax profit for the nine months ended September 30, 2021 and 2020 would have decreased by $10,323 thousand and $7,989 thousand, respectively, which was mainly attributable to the Group’s exposure to cash flow interest rate risk on its variable-rate borrowings.

The Group’s sensitivity to interest rate changed during the current year mainly due to the 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 Group. As at the end of the reporting period, the Group’s maximum exposure to credit risk which will cause a financial loss to the Group due to failure of counterparties to discharge an obligation and financial guarantee provided by the Group arises from the carrying amount of the respective recognized financial assets as stated in the consolidated balance sheets.

The Group’s concentration of credit risk was 74.81%, 45.77% and 48.55% of total accounts receivable as of September 30, 2021, December 31, 2020 and September 30, 2020, respectively, which was attributable to the Group’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 Group manages liquidity risk by monitoring and maintaining a level of cash deemed adequate to finance the Group’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.

a) Liquidity and interest rate risk tables

The following table details the Group’s remaining contractual maturities for its non-derivative financial liabilities with agreed upon repayment periods. The table has been drawn up based on the undiscounted cash flows of financial liabilities from the earliest date on which the Group can be required to pay. The table includes 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 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 year.

37 -

September 30, 2021

On Demand or Less than 1 Month Non-interest bearing liabilities (Note) $ 394,924 Lease liabilities 2,450 Variable interest rate liabilities - $ 397,374	1-3 Months 3 Months to 1 Year $ 687,197 $ 235,457 4,899 21,864 - 300,000 $ 692,096 $ 557,321	1+ Years $ 32,417 266,740 1,076,367
		$ 1,375,524

Additional information about the maturity analysis for lease liabilities:

Less than 1 Year 1-5 Years Lease liabilities $ 29,213 $ 141,534 December 31, 2020 On Demand or Less than 1 Month Non-interest bearing liabilities (Note) $ 296,636 Lease liabilities 2,383 Variable interest rate liabilities - $ 299,019	5-10 Years $ 79,119 1-3 Months $ 1,021,433 4,693 - $ 1,026,126	10-15 Years 15-20 Years $ 46,087 $ - 3 Months to 1 Year $ 205,625 21,117 305,000 $ 531,742	20+ Years $ - 1+ Years $ 43,485 287,104 1,058,967 $ 1,389,556	20+ Years $ -

Additional information about the maturity analysis for lease liabilities:

Less than 1 Year 1-5 Years Lease liabilities $ 28,193 $ 112,625 September 30, 2020 On Demand or Less than 1 Month Non-interest bearing liabilities (Note) $ 255,497 Lease liabilities 2,413 Variable interest rate liabilities - Fixed interest rate liabilities 200,000 $ 457,910	5-10 Years $ 112,935 1-3 Months $ 769,429 4,826 - 300,000 $ 1,074,255	10-15 Years 15-20 Years $ 61,544 $ - 3 Months to 1 Year $ 118,782 21,421 - 300,000 $ 440,203	20+ Years $ - 1+ Years $ 38,293 294,588 1,065,217 - $ 1,398,098	20+ Years $ -

Additional information about the maturity analysis for lease liabilities:

Lease liabilities	Less than 1 Year $ 28,660	1-5 Years $ 141,226	5-10 Years $ 99,902	10-15 Years $ 53,460	15-20 Years $ -	20+ Years $ -

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

b) Financing facilities

September 30, 2021 Long-term bank loan facilities: Amount used $ 1,076,367 Amount unused 1,629,983 $ 2,706,350	December 31, 2020 September 30, 2020 $ 1,063,967 $ 1,088,354 1,649,313 1,631,746 $ 2,713,280 $ 2,720,100 (Continued)

38 -

September 30, 2021 Short-term bank loan facilities: Amount used $ 1,177,516 Amount unused 3,938,434 $ 5,115,950	December 31, 2020 September 30, 2020 $ 988,825 $ 950,122 4,520,666 4,674,078 $ 5,509,491 $ 5,624,200 (Concluded)

29. TRANSACTIONS WITH RELATED PARTIES

Balances and transactions between the Corporation and its subsidiaries, which are related parties of the Corporation, have been eliminated on consolidation and are not disclosed in this note. Details of transactions between the Group and other related parties are disclosed below.

a. Related Party Name and Relationship

Related Party Name Related Party Category Associate Associate

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. I-MEI STORE COMPANY LTD. I-ME-I INFORMATION TECHNOLOGY CO., LTD. OPENFIND INFORMATION TECHNOLOGY INC. SHINE MEI FOODS MARKETING & DISTRIBUTION CO., LTD. GOLDEN SADDLE MACHINERY CO., LTD.

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

b. Operating transaction

Sales Substantive related parties Key management personnel Associates Subsidiaries of key management personnel	For the Three Months Ended September 30	For the Three Months Ended September 30	For the Three Months Ended September 30	For the Nine Months Ended September 30 2021 2020 $ 4,449 $ 4,240 1,957 7,238 2,395 2,453 100 259 $ 8,901 $ 14,190 (Continued)	For the Nine Months Ended September 30 2021 2020 $ 4,449 $ 4,240 1,957 7,238 2,395 2,453 100 259 $ 8,901 $ 14,190 (Continued)	For the Nine Months Ended September 30 2021 2020 $ 4,449 $ 4,240 1,957 7,238 2,395 2,453 100 259 $ 8,901 $ 14,190 (Continued)
		2021 $ 3,276 1,148 895 26 $ 5,345	2020 $ 2,209 4,897 522 22 $ 7,650		2021 $ 4,449 1,957 2,395 100 $ 8,901	2020 $ 4,240 7,238 2,453 259 $ 14,190 (Continued)

39 -

Purchases Associates Other expenses Substantive related parties Associates Other loss Associates	For the Three Months Ended September 30 2021 2020 $ 3,918 $ 681 $ 450 $ 383 5 - $ 455 $ 383 $ - $ -	For the Three Months Ended September 30 2021 2020 $ 3,918 $ 681 $ 450 $ 383 5 - $ 455 $ 383 $ - $ -	For the Nine Months Ended September 30	For the Nine Months Ended September 30	For the Nine Months Ended September 30
		2021 $ 3,918 $ 450 5 $ 455 $ -		2021 $ 7,964 $ 645 165 $ 810 $ -	2020 $ 745 $ 846 - $ 846 $ 16 (Concluded)

Lease arrangements

The Group is lessor under operating leases.

The Group leases out plant, parking spaces and dormitories to its associate MAIN DRIVE CORPORATION under operating leases with lease terms of 1 year. As of September 30, 2021 the balance of the operating lease receivable was $3,623 thousand. Lease income recognized for the three months and for the nine months ended September 30, 2021 was as follows:

Related Party Category For the Three Months Ended September 30, 2021 Associate MAIN DRIVE CORPORATION $ 725 Acquisition of other assets Related Party Category/Name Line Items Substantive related parties Other intangible assets	For the Nine Months Ended September 30, 2021 $ 725 Purchase Price
	For the Nine Months Ended September 30, 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. Other expenses of the Group and related parties are management and support expenses, which are based on the prices decided by both parties and payment terms.

40 -

c. Balances on balance sheet date

	September 30,	September 30,	September 30,	December 31,	December 31,	September	September	30,
		2021			2020		2020
Contract assets
Substantive related party	$		-	$	1,000	$		-
Contract liabilities
Associates	$	7,156		$	-	$		-
Receivables from related parties
Substantive related parties
I-ME-I INFORMATION TECHNOLOGY
CO., LTD.	$	1,884		$	880	$	480
I-MEI STORE COMPANY LTD.		1,432			784		1,787
Others			-		29		75
Key management personnel
I-MEI FOODS CO., LTD.		943			172		5,127
Associates
MAIN DRIVE CORPORATION		926			-		548
Subsidiaries of key management personnel			-		43		18
	$	5,185		$	1,908	$	8,035
Notes receivable from related parties
Subsidiaries of key management personnel
I-MEI FOODS CO., LTD.	$		-	$	85	$		-
Other receivables from related parties
Associates
MAIN DRIVE CORPORATION	$	380		$	-	$		-
Payables to related parties
Associates
MAIN DRIVE CORPORATION	$	7,882		$	5,278	$	688
Accrued expenses and other current liabilities
Associates	$		5	$	83	$		-
Substantive related parties			-		25		72
	$		5	$	108	$	72

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 nine months ended September 30, 2021 and 2020, no impairment losses were recognized for the accounts receivable from related parties.

41 -

d. Remuneration of key management personnel

The remuneration of directors and key management personnel for the three months and the nine months ended September 30, 2021 and 2020 was as follows:

Short-term benefits Post-employment benefits	For the Three Months Ended September 30 2021 2020 $ 15,137 $ 7,665 434 262 $ 15,571 $ 7,927	For the Three Months Ended September 30 2021 2020 $ 15,137 $ 7,665 434 262 $ 15,571 $ 7,927	For the Nine Months Ended September 30	For the Nine Months Ended September 30	For the Nine Months Ended September 30
		2021 $ 15,137 434 $ 15,571		2021 $ 49,041 1,260 $ 50,301	2020 $ 40,372 1,395 $ 41,767

The remuneration of directors and key management personnel, as determined by the remuneration committee, was based on the performance of individuals and market trends.

30. ASSETS PLEDGED AS COLLATERAL OR FOR SECURITY

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

	September 30,	September 30,	December 31,	December 31,	September 30,	September 30,
		2021		2020		2020
Other intangible assets	$	5,282	$	5,634	$	5,751

31. SIGNIFICANT COMMITMENTS AND CONTINGENCIES

The Group’s significant commitments and contingencies as of September 30, 2021 were as follows:

The amounts 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 $473,450 thousand, $111,400 thousand and $83,550 thousand, respectively.

32. SIGNIFICANT ASSETS AND LIABILITIES DENOMINATED IN FOREIGN CURRENCIES

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

(In Thousands of Foreign Currencies)

Financial assets Monetary items USD USD	September 30, 2021 Foreign Currency Exchange Rate $ 68,680 27.85 (USD:NTD) 76 6.4854 (USD:RMB) (Continued)

42 -

JPY

RMB

EUR

Financial liabilities

Monetary items

USD

USD

JPY

RMB

EUR

CAD

Financial assets

Monetary items

USD

USD

JPY

RMB

EUR

Financial liabilities

Monetary items

USD

USD

JPY

RMB

EUR

CAD

Financial assets

Monetary items

USD

USD

JPY

RMB

EUR

September 30, 2021
Foreign
Currency
Exchange Rate

$ 175,490 0.2490 (JPY:NTD)

13,713 4.305 (RMB:NTD)

266 32.32 (EUR:NTD)

3,229 27.85 (USD:NTD)

670 6.4854 (USD:RMB)

49,688 0.2490 (JPY:NTD)

4,896 4.305 (RMB:NTD)

162 32.32 (EUR:NTD)

1 21.91 (CAD:NTD)
(Concluded)
December 31, 2020
Foreign
Currency
Exchange Rate

$ 78,427
28.48 (USD:NTD)

84
6.5249 (USD:RMB)

199,920
0.2763 (JPY:NTD)

43,954
4.377 (RMB:NTD)

582
35.02 (EUR:NTD)

1,580 28.48 (USD:NTD)

959 6.5249 (USD:RMB)

170,073 0.2763 (JPY:NTD)

4,264 4.377 (RMB:NTD)

81 35.02 (EUR:NTD)

9 22.35 (CAD:NTD)
September 30, 2020
Foreign
Currency
Exchange Rate

$ 79,618 29.10 (USD:NTD)

142 6.8101 (USD:RMB)

224,318 0.2756 (JPY:NTD)

51,777 4.269 (RMB:NTD)

544 34.15 (EUR:NTD)
(Continued)

43 -

Financial liabilities Monetary items USD USD JPY RMB EUR CAD	September 30, 2020
	Foreign Currency Exchange Rate $ 1,902 29.10 (USD:NTD) 1,183 6.8101 (USD:RMB) 168,092 0.2756 (JPY:NTD) 6,539 4.269 (RMB:NTD) 91 34.15 (EUR:NTD) 1 21.72 (CAD:NTD) (Concluded)

For the nine months ended September 30, 2021 and 2020, realized and unrealized net foreign exchange losses were $61,909 thousand and $68,347 thousand, respectively. It is impractical to disclose net foreign exchange (losses) gains by each significant foreign currency due to the variety of the foreign currency transactions and currencies of the entities in the Group.

33. SEPARATELY DISCLOSED ITEMS

Except for the following, the Group has no other significant transactions. In the preparation of the consolidated financial statements, major transactions between the parent and its subsidiaries and their balances have been completely eliminated upon consolidation.

a. Information about significant transactions and investees:
1) Financing provided to others (Table 1)
2) Endorsements/guarantees provided (Table 2)
3) Marketable securities held (excluding investment in subsidiaries, associates and jointly controlled entities) (Table 3)
4) Others: Intercompany relationships and significant intercompany transactions (Table 4)
b. Information on investees (excluding investees in mainland China) (Table 5)
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 6)
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 7)
d. Information about main shareholders whose ownership percentage are more than 5%, showing the name, ownership amount and percentage (Table 8)
44 -

34. SEGMENT INFORMATION

Information reported to the chief operating decision maker for the purpose of resource allocation and assessment of segment performance focuses on the types of goods sold, which is measured on the same basis as the Group’s consolidated financial statements. The reported segments of the consolidated financial statements are automatic production line and equipment segment and information and controller segment.

a. Segment revenue and operating results

Automatic production line and equipment segment Information and controller segment Total amounts from continuing operations Unallocated amount: Operating expenses Other gains and losses Non-operating income and expenses Income before income tax		Segment Revenue For the Nine Months Ended September 30 2021 2020 $ 4,943,751 $ 3,651,778 2,206,919 2,766,868 $ 7,150,670 $ 6,418,646		Segment Profit	Segment Profit
				For the Nine Months Ended September 30
		2021 $ 4,943,751 2,206,919 $ 7,150,670		2021 $ 1,126,579 438,946 1,565,525 (1,005,103) (423) (60,882) $ 499,117	2020 $ 1,077,064 284,197 1,361,261 (886,998) 1,710 (29,530) $ 446,443

The revenue reported above is generated from transactions with external customers. There were no sales between segments for the nine months ended September 30, 2021 and 2020.

Segment profit means the profits earned by various segments, which exclude allocated operating expenses, other gains and losses and non-operating income and expenses. These measured amounts will be reported to the chief operating decision maker for the purpose of resource allocation and assessment of segment performance.

b. Segment assets

The measured amounts of the Group’s assets were not reported to the chief operating decision maker, so the measured amount of segment assets was zero.

45 -

TABLE 1

MIRLE AUTOMATION CORPORATION AND SUBSIDIARIES

FINANCING PROVIDED TO OTHERS FOR THE NINE MONTHS ENDED SEPTEMBER 30, 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 Borrowing Amount	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	$ 284,130 344,400	$ 284,130 344,400	$ - 116,855	3 -	2 2	$ - -	Working capital Working capital	$ - -	- -	$ - -	$ 1,636,878 493,527	$ 1,636,878 493,527	- -

Note 1: The total amount of financing provided to others shall not exceed 40% of the net value of the Group’s audited or reviewed financial statements. However, foreign companies that the Group directly and indirectly held 100% of the ownership are not subject to the restrictions in the preceding requirement, but their total amount of financing provided to others shall not exceed 40% of the net value of the Group’s equity.

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 net value of the Group’s audited or reviewed financial statements. The total amount of financing of Mirle Automation Technology (Shanghai) Co., Ltd. provided to others shall not exceed 40% of the net value of its audited or reviewed financial statements.

Note 4: Facilities of financing provided to others approved by the board of directors.

46 -

TABLE 2

MIRLE AUTOMATION CORPORATION AND SUBSIDIARIES

ENDORSEMENTS/GUARANTEES PROVIDED FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2021 (In Thousands of New Taiwan Dollars, Unless Stated Otherwise)

No.	Endorser/Guarantor	Endorsee/Guarantee	Endorsee/Guarantee	Limit on Endorsement/ Guarantee Given on Behalf of Each Party (Note 2)	Maximum Amount Endorsed/ Guaranteed During the Period	Outstanding Endorsement/ Guarantee at the End of the Period	Actual Borrowing Amount	Amount Endorsed/ Guaranteed by Collateral	Ratio of Accumulated Endorsement/ Guarantee to Net Equity in Latest Financial Statements (%)	Aggregate Endorsement/ Guarantee Limit (Note 2)	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
0	MIRLE AUTOMATION CORPORATION	Mirle Automation Technology (Shanghai) Co., Ltd. Mirle Automation (Kunshan) Co., Ltd. Mirle Automation Inter Corp. Ltd.	Note 1 Note 1 Note 2	$ 1,227,659 1,227,659 1,227,659	$ 473,450 111,400 83,550	$ 473,450 111,400 83,550	$ - - -	$ - - -	12 3 2	$ 2,046,098 2,046,098 2,046,098	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 Group to any individual entity shall not exceed ten percent of the Group’s net worth. The aggregate amount of guarantees available shall not exceed fifty percent of the Group’s net worth. The aggregate amount of guarantees given by parent on behalf of subsidiaries or subsidiaries on behalf of parent shall not exceed thirty percent of the Group’s net worth.

47 -

TABLE 3

MIRLE AUTOMATION CORPORATION AND SUBSIDIARIES

MARKETABLE SECURITIES HELD SEPTEMBER 30, 2021

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

Holding Company Name	Marketable Securities Type and Issue	Relationship with the Holding Company	Financial Statement Account		September 30, 2021	September 30, 2021		Note
				Shares (In Thousands)	Carrying Value	% of Ownership	Fair Value
MIRLE AUTOMATION CORPORATION MIRTEK (BVI) CORP. LTD.	TIEF FUND, L.P. TSUKUBASEIKO CO., LTD. PHOENIX II INNOVATION VENTURE CAPITAL CO., LTD. UNION MONEY MARKET FUND YUANTA DE- BAO MONEY MARKET FUND YUANTA DE-LI MONEY MARKET FUND JIH SUN MONEY MARKET FUND TCB MONEY MARKET FUND AMERICAN MERCHANTS HEAT CO., LTD.	- - - - - - - - -	Financial assets at fair value through other comprehensive income - non-current Financial assets at fair value through profit or loss - non-current Financial assets at fair value through other comprehensive income - non-current Financial assets at fair value through profit or loss - current Financial assets at fair value through profit or loss - current Financial assets at fair value through profit or loss - current Financial assets at fair vale through profit or loss - current Financial assets at fair vale through profit or loss - current Financial assets at fair value through other comprehensive income - non-current	1,500 143 1,000 9,009 4,127 3,040 6,678 4,879 1,654	$ 39,098 - 10,000 120,090 50,040 50,046 100,037 50,012 -	7 5 2 - - - - - 6	$ 39,098 - 10,000 120,090 50,040 50,046 100,037 50,012 -	Note 1 Note 1 Note 1 Note 2 Note 2 Note 2 Note 2 Note 2 Note 1

Note 1: The market value was based on the fair value as of September 30, 2021.

Note 2: The fair value was based on the net assets value of the fund as of September 30, 2021.

Note 3: As of September 30, 2021, the above marketable securities had not been pledged or mortgaged.

Note 4: See Table 5 and Table 6 for detailed information on subsidiaries and associates.

48 -

TABLE 4

MIRLE AUTOMATION CORPORATION AND SUBSIDIARIES

INTERCOMPANY RELATIONSHIPS AND SIGNIFICANT INTERCOMPANY TRANSACTIONS FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2021 (In Thousands of New Taiwan Dollars, Unless Stated Otherwise)

No.	Investee Company	Counterparty	Relationship		Transaction Details	Transaction Details
				Financial Statement Accounts	Amount	Payment Terms (Note 2)	% of Total Sales or Assets
0	MIRLE AUTOMATION CORPORATION	Mirle Automation Technology (Shanghai) Co., Ltd.	1 1 1 1 1 1 1 1	Sales Purchase Manufacturing expenses Contract assets Accounts receivable from related parties Other receivables from related parties Accounts payable to related parties Contract liabilities	$ 41,852 15,537 811 1 29,267 17 11,240 649	- - - - - - - -	- - - - - - - -
		IOT SERVICES INFORMATION SYSTEM CORPORATION	1 1 1 1 1 1 1 1	Sales Purchase Manufacturing expenses Other expenses Contract assets Accounts receivable from related parties Accounts payable to related parties Accrued expenses and other current liabilities	3,526 3,660 8,411 30,441 782 76 4,566 34,661	- - - - - - - -	- - - - - - - -
		Mirle Automation (Kunshan) Co., Ltd.	1 1 1 1	Sales Disposal of property, plant and equipment Contract assets Other receivables from relatedparties	5,788 1,519 2,416 8	- - - -	- - - -
		VAN QUOC INFORMATION TECHNOLOGY CONSULTING SERVICES CO.,LTD.	1 1	Sales Accounts receivable from related parties	1,090 -	- -	- -
		MIRLE AUTOMATION INTER CO., LTD.	1 1	Sales Accounts receivable from related parties	3 1,193	- -	- -
		FACTORY AUTOMATION INTERNATIONAL CO., LTD.	1 1	Purchase Accounts payable to related parties	1,350 -	- -	- -
1	Mirle Automation Technology (Shanghai) Co., Ltd.	Mirle Automation (Kunshan) Co., Ltd.	3 3 3 3	Sales Purchase Accounts payable to related parties Other receivables from relatedparties	10,449 77,332 7 116,561	- - - -	- 1 - 1
2	Mirle Automation(Kunshan)Co.,Ltd.	MIRLE AUTOMATION INTER CORP. LTD.	3	Accounts receivable from relatedparties	11,160	-	-
3	MIRLE AUTOMATION INTER CO., LTD.	VAN QUOC INFORMATION TECHNOLOGY CONSULTING SERVICES CO., LTD.	3	Accounts payable to related parties	167	-	-

Note 1: 1 represents transactions between the parent company and its subsidiaries, 3 represents transactions between subsidiaries.

Note 2: Sales and purchases between the parent company and its subsidiaries are handled in accordance with general sales and payment terms.

49 -

TABLE 5

MIRLE AUTOMATION CORPORATION AND SUBSIDIARIES

INFORMATION ON INVESTEES FOR THE NINE MONTHS ENDED SEPTEMBER 30, 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 September 30, 2021	As of September 30, 2021	As of September 30, 2021	Net Income (Loss) of the Investee	Share of Profit (Loss)	Note
				September 30, 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 76,000 101,221 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 - 10,000 1,275 2,523 9,713 17,000 7,610 -	100 99 100 51 21 26.85 100 100 100	$ 1,712,218 76,640 76,153 43,960 - 42,609 477,730 76,740 24,769	$ 37,388 1,580 (5,268) 3,693 - (76,674) (32,240) 1,580 532	$ 37,388 1,578 (5,268) 1,885 - (20,848) (34,240) 1,580 532	Subsidiary Subsidiary Subsidiary Subsidiary Note 2 Associate Sub-subsidiary Sub-subsidiary Third-tier subsidiary

Note 1: Refer to Table 6 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.

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TABLE 6

MIRLE AUTOMATION CORPORATION AND SUBSIDIARIES

INFORMATION ON INVESTMENTS IN MAINLAND CHINA FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2021 (In Thousands of New Taiwan Dollars, Unless Stated Otherwise)

Investee Company	Main Businesses and Products	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 September 30, 2021	Net Income (Loss) of the Investee	% Ownership of Direct or Indirect Investment	Investment Gain (Loss)	Carrying Amount as of September 30, 2021	Accumulated Repatriation of Investment Income as of September 30, 2021
					Outward	Inward
Mirle Automation Technology (Shanghai) Co., Ltd. Mirle Automation (Kunshan) 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	US$ 1,323 ten thousand (Note 2) US$ 1,700 ten thousand (Note 4)	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	$ 71,714 (34,240)	100 100	$ 71,714 (Note 5) (34,240) (Note 6)	$ 1,233,818 477,730	$ - -

(Continued)

51 -

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 September 30, 2021	Net Income (Loss) of the Investee	% Ownership of Direct or Indirect Investment	Investment Gain (Loss)	Carrying Amount as of September 30, 2021	Accumulated Repatriation of Investment Income as of September 30, 2021
							Outward	Inward
Mirle Automation (Guangdong) Co., Ltd.	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$ 38 ten thousand (Note 2)		Note 1	$ -	$ -	$ -	$ -	$ (138)	49	$ - (Note 6)	$ 10,521	$ -

Accumulated Outward Remittance for Investments in Mainland China as of September 30, 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		$ 2,455,318

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.

(Continued)

52 -

(Concluded)

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 Group.

Note 6: Calculated by unreviewed financial statements of the investees for the same reporting periods as those of the Group.

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TABLE 7

MIRLE AUTOMATION CORPORATION AND SUBSIDIARIES

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 NINE MONTHS ENDED SEPTEMBER 30, 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.	Sales Purchase	$ 41,852 15,537	1 -	Calculated according to the contract Calculated according to the contract	Based on mutual agreement Based on mutual agreement	No other equivalent transactions to compare No other equivalent transactions to compare	$ 29,267 (11,240)	4 -	$ - -	None None

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TABLE 8

MIRLE AUTOMATION CORPORATION

INFORMATION ABOUT MAIN SHAREHOLDERS SEPTEMBER 30, 2021

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

55 -

AI assistant

Mirle — Interim / Quarterly Report 2021

52102_rns_2021-12-02_aa5be39d-1986-4c8d-9e12-eb57f1b0e0e8.pdf

Mirle Automation Corporation and Subsidiaries

INDEPENDENT AUDITORS’ REVIEW REPORT

Introduction

Scope of Review

Basis for Qualified Conclusion

Qualified Conclusion

Notice to Readers

MIRLE AUTOMATION CORPORATION AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(In Thousands of New Taiwan Dollars)

MIRLE AUTOMATION CORPORATION AND SUBSIDIARIES

MIRLE AUTOMATION CORPORATION AND SUBSIDIARIES

MIRLE AUTOMATION CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

MIRLE AUTOMATION CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS (In Thousands of New Taiwan Dollars) (Reviewed, Not Audited)

MIRLE AUTOMATION CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS (In Thousands of New Taiwan Dollars) (Reviewed, Not Audited)

MIRLE AUTOMATION CORPORATION AND SUBSIDIARIES

1. GENERAL INFORMATION

2. APPROVAL OF CONSOLIDATED FINANCIAL STATEMENTS

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

4. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

c. Basis of consolidation

1) Retirement benefits

5. CRITICAL ACCOUNTING JUDGMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY

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

September 30, 2021

10. INVENTORIES

11. SUBSIDIARIES

12. INVESTMENTS ACCOUNTED FOR USING THE EQUITY METHOD

MAIN DRIVE CORPORATION

Mirle Automation Technology (Guangdong) Co., Ltd.

13. PROPERTY, PLANT AND EQUIPMENT

14. LEASE ARRANGEMENTS

15. GOODWILL

16. OTHER INTANGIBLE ASSETS

17. OTHER CURRENT ASSETS

18. BORROWINGS

a. Short-term bank loans

19. ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES

20. PROVISIONS - CURRENT

21. RETIREMENT BENEFIT PLANS

22. EQUITY

1) Ordinary shares

b. Capital surplus

e. Non-controlling interests

23. REVENUE

24. NET PROFIT (LOSS) FROM CONTINUING OPERATIONS

d. Other gains and losses

g. Employee benefits expense

Accrual rate

Amount

25. INCOME TAXES

b. Income tax assessments

26. EARNINGS PER SHARE

Net Profit for the Periods

27. GOVERNMENT GRANTS

28. FINANCIAL INSTRUMENTS

c. Categories of financial instruments

1) Market risk

a) Foreign currency risk

Sensitivity analysis

b) Interest rate risk

Sensitivity analysis

2) Credit risk

3) Liquidity risk

a) Liquidity and interest rate risk tables

September 30, 2021

29. TRANSACTIONS WITH RELATED PARTIES

a. Related Party Name and Relationship

b. Operating transaction

Lease arrangements

c. Balances on balance sheet date

Mirle Interim / Quarterly Report 2021