MICROELECTRONICS TECHNOLOGY, INC. AND SUBSIDIARIES

CONSOLIDATED FINANCIAL STATEMENTS AND

INDEPENDENT AUDITORS’ REVIEW REPORT JUNE 30, 2021 AND 2020

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

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INDEPENDENT AUDITORS’ REVIEW REPORT TRANSLATED FROM CHINESE

To the Board of Directors and Shareholders of MICROELECTRONICS TECHNOLOGY, INC.

Introduction

We have reviewed the accompanying consolidated balance sheets of Microelectronics Technology, Inc. and subsidiaries (the “Group”) as at June 30, 2021 and 2020, and the related consolidated statements of comprehensive income for the three months and six months then ended, as well as the consolidated statements of changes in equity and of cash flows for the six months then ended, and notes to the consolidated financial statements, including a summary of significant accounting policies. Management is responsible for the preparation and fair presentation of these 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” as endorsed by the Financial Supervisory Commission. Our responsibility is to express a conclusion on these consolidated financial statements based on our reviews.

Scope of Review

We conducted our reviews in accordance with the Statement of Auditing Standards No. 65 “Review of Financial Information Performed by the Independent Auditor of the Entity” in the Republic of China. 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.

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Conclusion

Based on our reviews, nothing has come to our attention that causes us to believe that the accompanying consolidated financial statements do not present fairly, in all material respects, the consolidated financial position of the Group as at June 30, 2021 and 2020, and of its consolidated financial performance for the three months and six months then ended and its consolidated cash flows for the six 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” as endorsed by the Financial Supervisory Commission.

Li, Tien-Yi Lin, Yu-Kuan

For and on behalf of PricewaterhouseCoopers, Taiwan August 10, 2021

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

As the financial statements are the responsibility of the management, PricewaterhouseCoopers cannot accept any liability for the use of, or reliance on, the English translation or for any errors or misunderstandings that may derive from the translation.

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MICROELECTRONICS TECHNOLOGY, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS JUNE 30, 2021, DECEMBER 31, 2020 AND JUNE 30, 2020

(Expressed in thousands of New Taiwan dollars) (The balance sheets as of June 30, 2021 and 2020 are reviewed, not audited)

Assets	Notes	June 30, 2021 AMOUNT % `$` `1,100,464` `19` `474` `-` `26,714` `1` `-` `-` `1,085,161` `19` `37,651` `1` `46,280` `1` `283` `-` `1,404,662` `24` `83,081` `1` `3,784,770` `66` `118,504` `2` `553,330` `10` `487,274` `8` `301,184` `5` `500,248` `9` `13,550` `-` `1,974,090` `34` `$` `5,758,860` `100`	December 31, 2020 AMOUNT % `$` `1,324,793` `25` `5,275` `-` `27,260` `-` `4,081` `-` `939,742` `17` `29,008` `1` `37,818` `1` `340` `-` `1,008,191` `19` `74,798` `1` `3,451,306` `64` `114,443` `2` `522,570` `10` `520,624` `9` `304,576` `6` `481,756` `9` `4,508` `-` `1,948,477` `36` `$` `5,399,783` `100`	June 30, 2020	June 30, 2020
		AMOUNT `$` `1,100,464` `474` `26,714` `-` `1,085,161` `37,651` `46,280` `283` `1,404,662` `83,081` `3,784,770` `118,504` `553,330` `487,274` `301,184` `500,248` `13,550` `1,974,090` `$` `5,758,860`	AMOUNT `$` `1,324,793` `5,275` `27,260` `4,081` `939,742` `29,008` `37,818` `340` `1,008,191` `74,798` `3,451,306` `114,443` `522,570` `520,624` `304,576` `481,756` `4,508` `1,948,477` `$` `5,399,783`	AMOUNT `$` `986,763` `2,132` `28,192` `-` `1,115,111` `19,084` `43,237` `144` `944,077` `48,461` `3,187,201` `146,400` `488,255` `316,102` `305,287` `416,829` `5,575` `1,678,448` `$` `4,865,649`	%
Current assets 1100 Cash and cash equivalents 1110 Financial assets at fair value through profit or loss - current 1136 Current financial assets at amortised cost 1150 Notes receivable 1170 Accounts receivable, net 1180 Accounts receivable - related parties 1200 Other receivables 1210 Other receivables - related parties 130X Inventories 1410 Prepayments 11XX Total current assets Non-current assets 1517 Financial assets at fair value through other comprehensive income-non-current 1600 Property, plant and equipment 1755 Right-of-use assets 1780 Intangible assets 1840 Deferred income tax assets 1900 Other non-current assets 15XX Tatal non-current assets 1XXX Total Assets	6(1) 6(2) 6(4) 6(5) 6(5) 6(5) and 7 7 6(6) 6(3) 6(7) 6(8) and 7 6(9)(10) 7				`20` `-` `1` `-` `23` `-` `1` `-` `19` `1`
					`65`
					`3` `10` `7` `6` `9` `-`
					`35`
					`100`

(Continued)

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MICROELECTRONICS TECHNOLOGY, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS

JUNE 30, 2021, DECEMBER 31, 2020 AND JUNE 30, 2020

(Expressed in thousands of New Taiwan dollars) (The balance sheets as of June 30, 2021 and 2020 are reviewed, not audited)

					June 30, 2021				December 31, 2020	December 31, 2020			June 30, 2020
	Liabilities andEquity	Notes			AMOUNT	%			AMOUNT	%			AMOUNT	%
	Current Liabilities
2100	Short-term borrowings	6(11)		`$`	`386,362`		`7`	`$`	`368,098`		`7`	`$`	`306,016`	`6`
2120	Financial liabilities at fair value	6(12)
	through profit or loss - current				`2,378`		`-`		`876`		`-`		`380`	`-`
2130	Current contract liabilities	6(21)			`5,860`		`-`		`81,033`		`1`		`25,663`	`1`
2170	Accounts payable				`1,267,694`	`22`			`856,353`	`16`			`803,407`	`17`
2200	Other payables	6(13)			`280,493`		`5`		`363,447`		`7`		`294,699`	`6`
2250	Provisions for liabilities - current	6(16)			`74,236`		`2`		`75,744`		`1`		`13,042`	`-`
2280	Current lease liabilities	7			`57,888`		`1`		`81,730`		`2`		`31,607`	`1`
2320	Long-term liabilities, current	6(14)
	portion				`71,873`		`1`		`52,340`		`1`		`-`	`-`
2399	Other current liabilities	7			`7,895`		`-`		`8,896`		`-`		`10,715`	`-`
21XX	Total current liabilities				`2,154,679`	`38`			`1,888,517`	`35`			`1,485,529`	`31`
	Non-current liabilities
2540	Long-term loans	6(14)			`653,052`	`11`			`339,089`		`6`		`307,945`	`6`
2550	Provisions for liabilities - non-	6(16)
	current				`1,200`		`-`		`2,327`		`-`		`907`	`-`
2570	Deferred income tax liabilities	6(28)			`114,906`		`2`		`107,094`		`2`		`103,246`	`2`
2580	Non-current lease liabilities	7			`408,772`		`7`		`439,656`		`8`		`262,443`	`6`
2600	Other non-current liabilities				`211,877`		`4`		`203,570`		`4`		`156,138`	`3`
25XX	Total non-current liabilities				`1,389,807`	`24`			`1,091,736`	`20`			`830,679`	`17`
2XXX	Total Liabilities				`3,544,486`	`62`			`2,980,253`	`55`			`2,316,208`	`48`
	Equity
	Equity attributable to owners of
	parent
	Share capital	6(17)
3110	Share capital-common stock				`2,280,283`	`39`			`2,280,283`	`42`			`2,280,283`	`47`
	Capital Reserves	6(18)
3200	Capital surplus				`402,937`		`7`		`402,937`		`8`		`402,937`	`8`
	Retained Earnings	6(19)
3310	Legal reserve				`24,972`		`-`		`24,972`		`-`		`24,972`	`1`
3320	Special reserve				`193,426`		`3`		`193,426`		`4`		`193,426`	`4`
3350	Unappropriated retained earnings
	(accumulated deficit)		`(`		`308,426) (`		`5) (`		`117,336) (`		`2)`		`4,023`	`-`
	Other Equity Interest	6(20)
3400	Other equity interest		`(`		`378,818) (`		`6) (`		`364,752) (`		`7) (`		`356,200) (`	`8 )`
31XX	Equity attributable to owners
	of the parent				`2,214,374`	`38`			`2,419,530`	`45`			`2,549,441`	`52`
3XXX	Total equity				`2,214,374`	`38`			`2,419,530`	`45`			`2,549,441`	`52`
	Significant contingent liabilities and	9
	unrecognised contract commitments
	Significant events after the balance	11
	sheet date
3X2X	Total Liabilities and Equity			`$`	`5,758,860`	`100`		`$`	`5,399,783`	`100`		`$`	`4,865,649`	`100`

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

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MICROELECTRONICS TECHNOLOGY, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME THREE MONTHS AND SIX MONTHS ENDED JUNE 30, 2021 AND 2020

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

(UNAUDITED)

					Threemonths ended June 30	Threemonths ended June 30	Threemonths ended June 30	Threemonths ended June 30			Six months ended June 30	Six months ended June 30	Six months ended June 30	Six months ended June 30
					2021			2020			2021			2020
	Items	Notes			AMOUNT	%	AMOUNT		%		AMOUNT	%	AMOUNT		%
4000	Operating revenue	6(21)		`$`	`1,001,669`	`100`	`$`	`1,104,981`	`100`	`$`	`2,002,885`	`100`	`$`	`2,008,402`	`100`
5000	Operating costs	6(6)	`(`		`837,975) (`	`84) (`		`866,232) (`	`78) (`		`1,731,364) (`	`86) (`		`1,618,700) (`	`81 )`
5900	Gross profit				`163,694`	`16`		`238,749`	`22`		`271,521`	`14`		`389,702`	`19`
	Operating expenses	6(26)(27)
6100	Selling expenses		`(`		`37,065) (`	`4) (`		`37,514) (`	`3) (`		`66,380) (`	`3) (`		`75,955) (`		`4 )`
6200	General and administrative
	expenses		`(`		`33,774) (`	`3) (`		`33,752) (`	`3) (`		`66,654) (`	`4) (`		`66,228) (`		`3 )`
6300	Research and development
	expenses		`(`		`175,790) (`	`17) (`		`186,611) (`	`17) (`		`339,912) (`	`17) (`		`275,546) (`	`14 )`
6450	Gain on reversal of expected
	credit impairment				`-`	`- (`		`392)`	`-`		`4`	`- (`		`663)`		`-`
6000	Total operating expenses		`(`		`246,629) (`	`24) (`		`258,269) (`	`23) (`		`472,942) (`	`24) (`		`418,392) (`	`21 )`
6900	Operating loss		`(`		`82,935) (`	`8) (`		`19,520) (`	`1) (`		`201,421) (`	`10) (`		`28,690) (`		`2 )`
	Non-operating income and
	expenses
7100	Interest income	6(22)			`2,317`	`-`		`1,453`	`-`		`3,471`	`-`		`3,489`		`-`
7010	Other income	6(23)			`3,302`	`-`		`44,055`	`4`		`9,361`	`1`		`45,352`		`2`
7020	Other gains and losses	6(24)			`2,969`	`- (`		`1,010)`	`-`		`3,383`	`- (`		`6,767)`		`-`
7050	Finance costs	6(25)	`(`		`4,614)`	`- (`		`3,433)`	`- (`		`8,636)`	`- (`		`7,162)`		`-`
7000	Total non-operating income
	and expenses				`3,974`	`-`		`41,065`	`4`		`7,579`	`1`		`34,912`		`2`
7900	Profit (loss) before income tax		`(`		`78,961) (`	`8)`		`21,545`	`3 (`		`193,842) (`	`9)`		`6,222`		`-`
7950	Income tax benefit (expense)	6(28)	`(`		`435)`	`- (`		`2,887) (`	`1)`		`2,752`	`- (`		`4,612)`		`-`
8200	Profit (loss) for the period		`($`		`79,396) (`	`8)`	`$`	`18,658`	`2 ($`		`191,090) (`	`9)`	`$`	`1,610`		`-`
	Other comprehensive income
	(loss)
	Components of other
	comprehensive loss that will not
	be reclassified to profit or loss
8316	Unrealised loss from financial	6(3)(20)
	assets measured at fair value
	through other comprehensive
	income			`$`	`5,655`	`1 ($`		`45,259) (`	`4)`	`$`	`6,385`	`- ($`		`82,466) (`		`4 )`
	Components of other
	comprehensive income that will
	be reclassified to profit or loss
8361	Currency translation	6(20)
	differences of foreign
	operations		`(`		`18,994) (`	`2) (`		`29,053) (`	`3) (`		`25,564) (`	`1) (`		`31,447) (`		`1 )`
8399	Income tax relating to the	6(28)
	components of other
	comprehensive income that
	will be reclassified to profit or
	loss				`3,799`	`-`		`5,811`	`1`		`5,113`	`-`		`6,289`		`-`
8300	Total other comprehensive loss
	for the period		`($`		`9,540) (`	`1) ($`		`68,501) (`	`6) ($`		`14,066) (`	`1) ($`		`107,624) (`		`5 )`
8500	Total comprehensive loss for the
	period		`($`		`88,936) (`	`9) ($`		`49,843) (`	`4) ($`		`205,156) (`	`10) ($`		`106,014) (`		`5 )`
	Loss attributable to:
8610	Owners of the parent		`($`		`79,396) (`	`8)`	`$`	`18,658`	`2 ($`		`191,090) (`	`9)`	`$`	`1,610`		`-`
8620	Non-controlling interest				`-`	`-`		`-`	`-`		`-`	`-`		`-`		`-`
			`($`		`79,396) (`	`8)`	`$`	`18,658`	`2 ($`		`191,090) (`	`9)`	`$`	`1,610`		`-`
	Comprehensive loss attributable
	to:
8710	Owners of the parent		`($`		`88,936) (`	`9) ($`		`49,843) (`	`4) ($`		`205,156) (`	`10) ($`		`106,014) (`		`5 )`
8720	Non-controlling interest				`-`	`-`		`-`	`-`		`-`	`-`		`-`		`-`
			`($`		`88,936) (`	`9) ($`		`49,843) (`	`4) ($`		`205,156) (`	`10) ($`		`106,014) (`		`5 )`
	(Loss) earnings per share ( in	6(29)
	dollars )
9750	Basic		`($`			`0.35 )`	`$`		`0.08 ($`			`0.84)`	`$`		`0.01`
9850	Diluted		`($`			`0.35 )`	`$`		`0.08 ($`			`0.84)`	`$`		`0.01`

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

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MICROELECTRONICS TECHNOLOGY, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY SIX MONTHS ENDED JUNE 30, 2021 AND 2020

(Expressed in thousands of New Taiwan dollars)

(UNAUDITED)

Notes				Equity attributable to owners of the parent	Equity attributable to owners of the parent	Equity attributable to owners of the parent	Equity attributable to owners of the parent
	Share capital- commonstock	Capital surplus, additional paid- incapital			Retained earnings			Other equity interest
				Legal reserve		Special reserve	Unappropriated retained earnings (accumulated deficit)	Exchange differences on translation of foreign financial statements	Unrealised gains (losses) from financial assets measured at fair value through other comprehensive income
6(3) 6(3)	`$ 2,280,283` `-` `-` `-` `$ 2,280,283` `$ 2,280,283` `-` `-` `-` `$ 2,280,283`		`$` `402,937` `-` `-` `-` `$` `402,937` `$` `402,937` `-` `-` `-` `$` `402,937`	`$` `24,972` `-` `-` `-` `$` `24,972` `$` `24,972` `-` `-` `-` `$` `24,972`		`$` `193,426` `-` `-` `-` `$` `193,426` `$` `193,426` `-` `-` `-` `$` `193,426`	`$` `2,413` `1,610` `-` `1,610` `$` `4,023` `($` `117,336)` `(` `191,090)` `-` `(` `191,090)` `($` `308,426)`	`($` `104,070)` `-` `(` `25,158)` `(` `25,158)` `($` `129,228)` `($` `110,123)` `-` `(` `20,451)` `(` `20,451)` `($` `130,574)`	`($` `144,506)` `-` `(` `82,466)` `(` `82,466)` `($` `226,972)` `($` `254,629)` `-` `6,385` `6,385` `($` `248,244)`	`$ 2,655,455` `1,610` `(` `107,624` `)` `(` `106,014` `)` `$ 2,549,441` `$ 2,419,530` `(` `191,090` `)` `(` `14,066` `)` `(` `205,156` `)` `$ 2,214,374`

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

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MICROELECTRONICS TECHNOLOGY, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

SIX MONTHS ENDED JUNE 30, 2021 AND 2020

(Expressed in thousands of New Taiwan dollars)

(UNAUDITED)

CASH FLOWS FROM OPERATING ACTIVITIES
(Loss) profit before tax
Adjustments
Adjustments to reconcile profit (loss)
(Reversal of) loss on expected credit impairment
Depreciation

Amortization

Net loss on financial assets at fair value through profit or loss
Net loss on financial liabilities at fair value through profit or
loss

Interest income

Interest expense

Gain on disposal of property, plant and equipment

Changes in operating assets and liabilities
Changes in operating assets
Notes receivable
Accounts receivable
Other receivables
Inventories
Prepayments
Changes in operating liabilities
Accounts payable
Other payables
Provisions for liabilities
Contract liabilities-current
Other current liabilities
Accrued pension liabilities
Cash outflow generated from operations
Interest received
Interest paid
Income taxes paid
Net cash flows used in operating activities
CASH FLOWS FROM INVESTING ACTIVITIES
Acquisition of financial assets at amortized cost
Acquisition of property, plant and equipment

Proceeds from disposal of property, plant and equipment
Acquisition of intangible assets

Increase in guarantee deposits paid
Net cash flows used in investing activities
CASH FLOWS FROM FINANCING ACTIVITIES
Increase in short-term borrowings

Decrease in short-term borrowings

Increase in long-term borrowings

Decrease in long-term borrowings

Repayment of principal portion of lease liabilities

Net cash flows from financing activities
Effects due to changes in exchange rate
Net decrease in cash and cash equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period Six months ended June 30
Notes
2021
2020
( $
193,842 ) $
6,222
(
4 )
663
6(7)(8)(26)
75,658
59,109
6(9)(26)
16,802
14,979
6(2)(24)
4,774
539
6(12)(24)
1,503
107
6(22)
(
3,471 ) (
3,489 )
6(25)
8,636
7,162
6(24)
(
248 ) (
65 )
4,081
9,024
(
162,164 ) (
39,526 )
(
7,715 )
82,954
(
400,227 ) (
95,245 )
(
8,833 ) (
719 )
418,802 (
98,416 )
(
73,219 ) (
55,473 )
(
2,546 )
1,608
(
75,173 ) (
30,161 )
(
10,019 )
349
(
14,551 ) (
50,483 )
(
421,756 ) (
190,861 )
2,568
3,548
(
8,778 ) (
7,802 )
(
3,394 ) (
4,732 )
(
431,360 ) (
199,847 )
(
43 ) (
299 )
6(30)
(
92,113 ) (
48,063 )
5,744
2,395
6(9)
(
16,557 ) (
19,828 )
(
3,954 ) (
93 )
(
106,923 ) (
65,888 )
6(31)
1,141,918
2,936,081
6(31)
(
1,122,933 ) (
3,025,958 )
6(31)
365,080
307,820
6(31)
(
7,556 )
-
6(31)
(
53,093 ) (
16,007 )
323,416
201,936
(
9,462 ) (
7,171 )
(
224,329 ) (
70,970 )
1,324,793
1,057,733
$
1,100,464 $
986,763

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

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MICROELECTRONICS TECHNOLOGY, INC. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS SIX MONTHS ENDED JUNE 30, 2021 AND 2020

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

(Reviewed, not audited)

1. HISTORY AND ORGANISATION

Microelectronics Technology Inc. (the “Company”) was incorporated as a company limited by shares under the provisions of the Company Act of the Republic of China (R.O.C.). The Company and its subsidiaries (collectively referred herein as the “Group”) are primarily engaged in the design, manufacture and sales of terrestrial microwave, satellite communication system products, and related customised products.

On January 1, 2011, the Company merged with the subsidiary, Global PCS Inc.. Under the merger, the Company was the surviving company while Global PCS Inc. was the dissolved company.

2. THE DATE OF AUTHORISATION FOR ISSUANCE OF THE CONSOLIDATED FINANCIAL

STATEMENTS AND PROCEDURES FOR AUTHORISATION

These consolidated financial statements were authorised for issuance by the Board of Directors on August 10, 2021.

3. APPLICATION OF NEW STANDARDS, AMENDMENTS AND INTERPRETATIONS

(1) Effect of the adoption of new issuances of or amendments to International Financial Reporting Standards (“IFRS”) as endorsed by the Financial Supervisory Commission (“FSC”)

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

New Standards,Interpretations and Amendments	Effective date by International Accounting Standards Board
Amendments to IFRS 4, ‘Extension of the temporary exemption from applying IFRS 9’ Amendments to IFRS 9, IAS 39, IFRS 7, IFRS 4 and IFRS 16, ‘ Interest Rate Benchmark Reform— Phase 2’ Amendment to IFRS 16, ‘Covid-19-related rent concessions beyond 30 June 2021’ Note：Earlier application from January 1, 2021 is allowed by FSC.	January 1, 2021 January 1, 2021 April 1, 2021(Note)

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

~9~

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

the Group

New standards, interpretations and amendments endorsed by the FSC effective from 2022 are as follows:

	Effective date by
	International
	Accounting
New Standards,Interpretations and Amendments	Standards Board
Amendments to IFRS 3, ‘Reference to the conceptual framework’	January 1, 2022
Amendments to IAS 16, ‘Property, plant and equipment:proceeds before	January 1, 2022
intended use’
Amendments to IAS 37, ‘Onerous contracts—cost of fulfilling a contract’	January 1, 2022
Annual improvements to IFRS Standards 2018–2020	January 1, 2022

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

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

New standards, interpretations and amendments issued by IASB but not yet included in the IFRSs as endorsed by the FSC are as follows:

New Standards,Interpretations and Amendments	Effective date by International Accounting Standards Board
Amendments to IFRS 10 and IAS 28, ‘Sale or contribution of assets between an investor and its associate or joint venture’ IFRS 17, ‘Insurance contracts’ Amendments to IFRS 17, 'Insurance contracts' Amendments to IAS 1, ‘Classification of liabilities as current or non- current’ Amendments to IAS 1, ‘Disclosure of accounting policies’ Amendments to IAS 8, ‘Definition of accounting estimates’ Amendments to IAS 12, ‘Deferred tax related to assets and liabilities arising from a single transaction’	To be determined by International Accounting Standards Board January 1, 2023 January 1, 2023 January 1, 2023 January 1, 2023 January 1, 2023 January 1, 2023

New Standards,Interpretations and Amendments

Effective date by
International Accounting
Standards Board

Amendments to IFRS 10 and IAS 28, ‘Sale or contribution of assets
between an investor and its associate or joint venture’
IFRS 17, ‘Insurance contracts’
Amendments to IFRS 17, 'Insurance contracts'
Amendments to IAS 1, ‘Classification of liabilities as current or non-
current’
Amendments to IAS 1, ‘Disclosure of accounting policies’
Amendments to IAS 8, ‘Definition of accounting estimates’
Amendments to IAS 12, ‘Deferred tax related to assets and liabilities
arising from a single transaction’

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

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

4. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The principal accounting policies adopted are consistent with Note 4 in the consolidated financial statements for the year ended December 31, 2020, except for the compliance statement, basis of preparation and basis of consolidation as set out below. These policies have been consistently applied to all the periods presented, unless otherwise stated.

~10~

(1) Compliance statement

A. The consolidated financial statements of the Group have been prepared in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and the International Accounting Standard 34, ‘Interim financial reporting ’ as endorsed by the FSC.
B. These consolidated financial statements are to be read in conjunction with the consolidated financial statements for the year ended December 31, 2020.

(2) Basis of preparation

A. Except for the following items, the consolidated financial statements have been prepared under the historical cost convention:
(a) Financial assets and financial liabilities (including derivative instruments) at fair value through profit or loss.
(b) Financial assets and liabilities at fair value through other comprehensive income.
(c) Defined benefit liabilities recognised based on the net amount of pension fund assets less present value of defined benefit obligation.
B. The preparation of financial statements in conformity with International Financial Reporting Standards, International Accounting Standards, IFRIC Interpretations, and SIC Interpretations as endorsed by the FSC (collectively referred herein as the “IFRSs”) requires the use of certain critical accounting estimates. It also requires management to exercise its judgement in the process of applying the Group’s accounting policies. The areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates are significant to the consolidated financial statements are disclosed in Note 5.

(3) Basis of consolidation

A. Basis for preparation of consolidated financial statements:
The basis for preparation of consolidated financial statements is consistent with those of the year ended December 31, 2020.

B. Subsidiaries included in the consolidated financial statements:

Name of investor	Name of subsidiary	Main business activities	June30,2021	Ownership (%)
				December31,2020 100.00 100.00 100.00 100.00 100.00 100.00	June30,2020
Microelectronics Technology, Inc. Sasson International Holding, Inc. Sasson International Holding, Inc. Welltop Technology Co., Ltd. Welltop Technology Co., Ltd. Jupiter Network Corp. (Jupiter)	Sasson International Holding, Inc. Welltop Technology Co., Ltd. Jupiter Network Corp. (Jupiter) MTI Laboratory, Inc. RadioComp ApS Jupiter Technology (Wuxi) Inc.	Note 1 Note 1 Note 1 Note 2 Note 2 Note 3	100.00 100.00 100.00 100.00 100.00 100.00		100.00 100.00 100.00 100.00 100.00 100.00

~11~

Note 1: Main operating activity is investments in the manufacturing and trading business.
Note 2: Research, development, design, manufacture and sales of personal wireless communication device, components of subsystem and system and wireless microwave communication system and equipment of electronic system.
Note 3: Main operating activities are design of satellite and microwave communication system equipment and its components, sales of self-made products and providing related technical services.
C. Subsidiaries not included in the consolidated financial statements: None.
D. Adjustments for subsidiaries with different balance sheet dates: None.
E. Significant restrictions: None.
F. Subsidiaries that have non-controlling interests that are material to the Group: None.

(4) Employee benefits

Pension cost for the interim period is calculated on a year-to-date basis by using the pension cost rate derived from the actuarial valuation at the end of the prior financial year, adjusted for significant market fluctuations since that time and for significant curtailments, settlements, or other significant one-off events. Also, the related information is disclosed accordingly.

(5) Income tax

A. The interim period income tax expense is recognised based on the estimated average annual effective income tax rate expected for the full financial year applied to the pretax income of the interim period, and the related information is disclosed accordingly.
B. If a change in tax rate is enacted or substantively enacted in an interim period, the Group recognises the effect of the change immediately in the interim period in which the change occurs. The effect of the change on items recognised outside profit or loss is recognised in other comprehensive income or equity while the effect of the change on items recognised in profit or loss is recognised in profit or loss.

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

There have been no significant changes in the reporting period. Please refer to Note 5 in the consolidated financial statements for the year ended December 31, 2020.

6. DETAILS OF SIGNIFICANT ACCOUNTS

(1) Cash and cash equivalents

Cash and cash equivalents
Cash on hand and revolving funds Checking accounts and demand deposits Time deposits	June 30,2021 238 $ 746,184 354,042 1,100,464 $	December 31,2020 277 $ 839,380 485,136 1,324,793 $	June 30,2020
			280 $ 523,084 463,399
			986,763 $

~12~

A. The Group transacts with a variety of financial institutions all with high credit quality to disperse credit risk, so it expects that the probability of counterparty default is remote.
B. Information on restricted cash reclassified as ‘Financial assets at amortised cost’ is provided in Note 8.

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

Items		June 30, 2021	December	31, 2020	June	30,2020
Current items:
Financial assets mandatorily
measured at fair value
through profit or loss
Derivative instruments	$	474	$	5,275	$	2,132
Unlisted stocks		103,218		105,515		109,776
Valuation adjustments	(	103,218)	(	105,515)	(	109,776)
	$	474	$	5,275	$	2,132

A. Amounts recognised in profit or loss in relation to financial assets at fair value through profit or loss are listed below:

loss are listed below:
		Three months	ended June 30
		2021		2020
Financial assets mandatorily measured at fair
value through profit or loss
Derivative instruments	$	466	$	2,132
		Six months ended June 30
		2021		2020
Financial assets mandatorily measured at fair
value through profit or loss
Derivative instruments	($	4,774)	($	539)

B. The Group entered into contracts relating to derivative financial assets which were not accounted for under hedge accounting. The information is listed below:

Derivative instruments Current items: Foreign exchange swap transactions Forward foreign exchange contracts	Contract amount Contract (Notionalprincipal) period 3,000 USD 2021.05.12~ 2021.07.15 3,000 USD 2021.04.26~ 2021.08.16 June 30,2021	Contract amount Contract (Notionalprincipal) period 3,000 USD 2020.11.12~ 2021.01.15 7,900 USD 2020.11.03~ 2021.04.28 December 31,2020
	Contract amount (Notionalprincipal) 3,000 USD 3,000 USD	Contract amount (Notionalprincipal) 3,000 USD 7,900 USD

~13~

		June 30,2020	June 30,2020
	Contract	amount	Contract
Derivative instruments	(Notional	principal)	period
Current items:
Foreign exchange	USD	3,000	2020.05.13~
swap transactions			2020.07.15
Forward foreign	USD	5,000	2020.05.13~
exchange contracts			2020.08.17

The Group entered into foreign exchange swap transactions and forward foreign exchange contracts to sell forward contracts to hedge exchange rate risk of export proceeds. However, these forward contracts are not accounted for under hedge accounting.

C. Information on financial assets at fair value through profit or loss is provided in Note 12(2).

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

Items		June 30,2021	December	31, 2020	June	30,2020
Non-current items`：`
Equity instruments
Unlisted stocks	$	339,148	$	346,139	$	359,107
Valuation adjustments	(	248,244)	(	254,629)	(	226,972)
Net exchange differences		27,600		22,933		14,265
	$	118,504	$	114,443	$	146,400

A. The Group has elected to classify equity instrument investments that are considered to be strategic investments as financial assets at fair value through other comprehensive income. The fair value of such investments amounted to $118,504, $114,443 and $146,400 as at June 30, 2021, December 31, 2020 and June 30, 2020, respectively.
B. For the three months and six months ended June 30, 2020, the Group recognised impairment loss of $45,259 and $82,466, respectively, after the assessment, as the global pandemic impacted the operation of investees, causing operational difficulty and operating capital to be insufficient, that resulted in the impairment.
C. Amounts recognised in profit or loss and other comprehensive income in relation to the financial assets at fair value through other comprehensive income are listed below:

Equity instruments at fair value through other comprehensive income Fair value change recognised in other comprehensive income (loss)	2021 2020 5,655 $ 45,259) ($ Three months ended June 30

~14~

Six months ended June 30
2021 2020

Equity instruments at fair value through other comprehensive income Fair value change recognised in other comprehensive income (loss) $ 6,385 ($ 82,466)

(4) Financial assets at amortised cost

Items Current items: Time deposits	June30,2021 26,714 $	December31,2020 June30,2020 27,260 $ 28,192 $

A. Amounts recognised in profit or loss in relation to financial assets at amortised cost are listed below:

Interest income Interest income	2021 2020 17 $ 126 $ 2021 2020 38 $ 276 $ Three months ended June 30 Six months ended June 30

B. As of June 30, 2021, December 31, 2020 and June 30, 2020, without taking into account other credit enhancements, the maximum exposure to credit risk in respect of the amount that best represents the financial assets at amortised cost held by the Group was $26,714, $27,260 and $28,192, respectively.
C. Details of the Group’s financial assets at amortised cost pledged to others as collateral are provided in Note 8.
D. Information relating to credit risk of financial assets at amortised cost is provided in Note 12(2).
(5) Notes and accounts receivable

		June 30,2021		31,2020		June 30,2020
Notes receivable	$	-	$	4,081	$	-
Less: Allowance for
uncollectible accounts		-		-		-
	$	-	$	4,081	$	-
Accounts receivable	$	1,085,430	$	940,020	$	1,115,814
Accounts receivable -		37,651		29,008		19,084
related party
Less: Allowance for
uncollectible accounts	(	269)	(	278)	(	703)
	$	1,122,812	$	968,750	$	1,134,195

~15~

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

Not past due Up to 90 days 91 to 180 days Over 180 days	Accounts receivable Notes receivable Accounts receivable 730,238 $ - $ 635,677 $ 241,335 - 315,461 128,434 - 15,642 23,074 - 2,248 1,123,081 $ - $ 969,028 $ December June30,2021	Notes receivable Accounts receivable Notes receivable 4,081 $ 723,881 $ - $ - 404,879 - - 5,407 - - 731 - 4,081 $ 1,134,898 $ - $ 31,2020 June30,2020	Notes receivable Accounts receivable Notes receivable 4,081 $ 723,881 $ - $ - 404,879 - - 5,407 - - 731 - 4,081 $ 1,134,898 $ - $ 31,2020 June30,2020
			- $ - - -
			- $

The above ageing analysis was based on past due date. As of June 30, 2021, the subsequent collection of past-due accounts receivable amounted to $184,645.

B. As of June 30, 2021, December 31, 2020 and June 30, 2020, accounts receivable and notes receivable were all from contracts with customers. And as of January 1, 2020, the balance of receivables from contracts with customers amounted to $1,125,411.
C. As of June 30, 2021, December 31, 2020 and June 30, 2020, without taking into account other credit enhancements, the maximum exposure to credit risk in respect of the amount that best represents the Group’s notes receivable were $0, $4081 and $0, respectively. As of June 30, 2021, December 31, 2020 and June 30, 2020, the maximum exposure to credit risk in respect of the amount that best represents the Group’s accounts receivable were $1,122,812, $968,750 and $1,134,195, respectively.
D. Information relating to credit risk of accounts and notes receivable is provided in Note 12(2).
(6) Inventories

Raw materials Work in progress Finished goods Raw materials Work in progress Finished goods	Allowance for inventory valuation losses and loss for obsolete and slow- Cost movingintentories 1,118,346 $ 42,471) ($ 262,784 46,426) ( 121,458 9,029) ( 1,502,588 $ 97,926) ($ June 30,2021 December 31,2020	Book value
		1,075,875 $ 216,358 112,429
		1,404,662 $

	Allowance for inventory valuation losses and loss for obsolete and slow- Cost movingintentories 770,725 $ 62,913) ($ 187,431 45,645) ( 167,646 9,053) ( 1,125,802 $ 117,611) ($	Book value
		707,812 $ 141,786 158,593
		1,008,191 $

~16~

				June 30,2020
			Allowance for inventory
			valuation losses and loss
			for obsolete and slow-
		Cost		moving intentories		Book value
Raw materials	$	650,281	($	70,969)	$	579,312
Work in progress		261,356	(	45,852)		215,504
Finished goods		151,357	(	2,096)		149,261
	$	1,062,994	($	118,917)	$	944,077

The cost of inventories recognised expense for the period:

		Three months ended June 30	Three months ended June 30	Three months ended June 30
		2021		2020
Cost of goods sold	$	839,386	$	866,923
Gain on reversal of decline in market value	(	1,411)	(	691)
Recognised as selling and R&D expenses		2,842		6,341
	$	840,817	$	872,573
		Six months ended June 30
		2021		2020
Cost of goods sold	$	1,728,630	$	1,613,414
Loss on decline in market value		2,734		5,286
Recognised as selling and R&D expenses		10,803		8,619
	$	1,742,167	$	1,627,319

~17~

(7) Property, plant and equipment

Details of property, plant and equipment for its own use are as follows:

Buildings and Machinery and Transportation Leasehold structures equipment Office equipment equipment improvements At January 1 Cost 427,181 $ 986,153 $ 100,371 $ 2,150 $ 18,584 $ Accumulated depreciation and impairment 102,904) ( 812,584) ( 81,731) ( 2,150) ( 12,500) ( 324,277 $ 173,569 $ 18,640 $ - $ 6,084 $ At January 1 324,277 $ 173,569 $ 18,640 $ - $ 6,084 $ Additions - 45,967 5,001 - 5,681 Reclassifications - 7,216 - - - Disposals - 5,496) ( - - - Depreciation expense 9,616) ( 28,248) ( 4,735) ( - 1,628) ( Net exchange differences 3,857) ( 1,519) ( 239) ( - 3) ( At June 30 310,804 $ 191,489 $ 18,667 $ - $ 10,134 $ At June 30 Cost 422,073 $ 1,003,833 $ 103,636 $ 2,109 $ 24,155 $ Accumulated depreciation and impairment 111,269) ( 812,344) ( 84,969) ( 2,109) ( 14,021) ( 310,804 $ 191,489 $ 18,667 $ - $ 10,134 $ 2021				2021
						Unfinished construction and equipment under acceptance Total - $ 1,534,439 $ - 1,011,869) ( - $ 522,570 $ - $ 522,570 $ 22,236 78,885 - 7,216 - 5,496) ( - 44,227) ( - 5,618) ( 22,236 $ 553,330 $ 22,236 $ 1,578,042 $ - 1,024,712) ( 22,236 $ 553,330 $	Total

~18~

2020

									2020
														Unfinished
													construction and
		Buildings and		Machinery and					Transportation		Leasehold		equipment under
		structures		equipment		Office	equipment		equipment		improvements			acceptance		Total
At January 1
Cost	$	418,552	$	962,616	$		91,449	$	2,250	$	15,159	$		918	$	1,490,944
Accumulated depreciation
and impairment	(	82,421)	(	823,724)	(		78,100)	(	2,250)	(	9,223)			-	(	995,718)
	$	336,131	$	138,892	$		13,349	$	-	$	5,936	$		918	$	495,226
At January 1	$	336,131	$	138,892	$		13,349	$	-	$	5,936	$		918	$	495,226
Additions		-		36,927			6,022		-		-			-		42,949
Reclassifications		-		4,928			-		-		-	(		918)		4,010
Disposals		-	(	2,293)	(		37)		-		-			-	(	2,330)
Depreciation expense	(	9,433)	(	25,794)	(		3,892)		-	(	2,357)			-	(	41,476)
Net exchange differences	(	8,551)	(	1,449)	(		121)		-	(	3)			-	(	10,124)
At June 30	$	318,147	$	151,211	$		15,321	$	-	$	3,576	$		-	$	488,255
At June 30
Cost	$	407,630	$	982,679	$		93,290	$	2,226	$	15,097	$		-	$	1,500,922
Accumulated depreciation
and impairment	(	89,483)	(	831,468)	(		77,969)	(	2,226)	(	11,521)			-	(	1,012,667)
	$	318,147	$	151,211	$		15,321	$	-	$	3,576	$		-	$	488,255

~19~

`－` (8) Leasing arrangements lessee

A. The Group leases various assets including land, buildings and equipment. Rental contracts are typically made for periods of 1 to 10 years. Lease terms are negotiated on an individual basis and contain a wide range of different terms and conditions.
B. The carrying amount of right-of-use assets and the depreciation charge are as follows:

Land Buildings Land Buildings Land Buildings	June 30, 2021 Carrying amount $ 26,380 460,894 487,274 $	December31,2020 June30,2020 Carrying amount Carryingamount $ 27,057 $ 26,288 493,567 289,814 520,624 $ 316,102 $ 2021 2020 Depreciation charge Depreciation charge $ 177 $ 174 15,542 8,638 15,719 $ 8,812 $ 2021 2020 Depreciation charge Depreciation charge $ 354 $ 351 31,077 17,282 31,431 $ 17,633 $ Three months ended June 30 Six months ended June 30
		2021 Depreciation charge $ 354 31,077 31,431 $

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

Items affecting profit or loss Interest expense on lease liabilities Expense on short-term lease contracts Expense on leases of low-value assets Items affecting profit or loss Interest expense on lease liabilities Expense on short-term lease contracts Expense on leases of low-value assets	Three months ended June 30	Three months ended June 30
	2021 2020 2,469 $ 1,617 $ 10,671 1,998 378 294 Six months ended June 30	2020
	2021 4,997 $ 15,295 607	2020
		3,234 $ 3,386 996

D. For the six months ended June 30, 2021 and 2020, the Group’s total cash outflow for leases was
$73,992 and $23,623, respectively.

~20~

(9) Intangible assets

Intangible assets
				2021
				Acquired special
		Goodwill		technology		Computer sofware		Total
At January 1
Cost	$	383,503	$	404,895	$	518,101	$	1,306,499
Accumulated depreciation
and impairment	(	116,272)	(	404,895)	(	480,756)	(	1,001,923)
	$	267,231	$	-	$	37,345	$	304,576
At January 1	$	267,231	$	-	$	37,345	$	304,576
Additions		-		-		16,557		16,557
Amortisation charge		-		-	(	16,802)	(	16,802)
Net exchange differences	(	2,691)		-	(	456)	(	3,147)
At June 30	$	264,540	$	-	$	36,644	$	301,184
At June 30
Cost	$	383,503	$	404,895	$	531,251	$	1,319,649
Accumulated amortisation
and impairment	(	118,963)	(	404,895)	(	494,607)	(	1,018,465)
	$	264,540	$	-	$	36,644	$	301,184
				2020
				Acquired special
		Goodwill		technology		Computer sofware		Total
At January 1
Cost	$	383,503	$	404,895	$	489,740	$	1,278,138
Accumulated depreciation
and impairment	(	109,762)	(	404,895)	(	461,361)	(	976,018)
	$	273,741	$	-	$	28,379	$	302,120
At January 1	$	273,741	$	-	$	28,379	$	302,120
Additions		-		-		19,828		19,828
Amortisation charge		-		-	(	14,979)	(	14,979)
Net exchange differences	(	1,519)		-	(	163)	(	1,682)
At June 30	$	272,222	$	-	$	33,065	$	305,287
At June 30
Cost	$	383,503	$	404,895	$	501,837	$	1,290,235
Accumulated amortisation
and impairment	(	111,281)	(	404,895)	(	468,772)	(	984,948)
	$	272,222	$	-	$	33,065	$	305,287

~21~

A. Details of amortisation on intangible assets are as follows:

Operating costs General and administrative expenses Research and development expenses Operating costs General and administrative expenses Research and development expenses	2021 2020 1,507 $ 1,602 $ 664 231 6,338 5,903 8,509 $ 7,736 $ 2021 2020 3,026 $ 2,945 $ 935 398 12,841 11,636 16,802 $ 14,979 $ Three months ended June 30 Six months ended June 30	2021 2020 1,507 $ 1,602 $ 664 231 6,338 5,903 8,509 $ 7,736 $ 2021 2020 3,026 $ 2,945 $ 935 398 12,841 11,636 16,802 $ 14,979 $ Three months ended June 30 Six months ended June 30
		2,945 $ 398 11,636
		14,979 $

B. Impairment information about the intangible assets is provided in Note 6(10).

(10) Impairment of non-financial assets

There have been no significant changes in the reporting period. Please refer to Note 6(10) in the consolidated financial statements for the year ended December 31, 2020.

(11) Short-term borrowings

Short-term borrowings
Type of borrowings Bank borrowings Export financing Borrowings for material purchase Unsecured borrowings Type of borrowings Bank borrowings Export financing Borrowings for material purchase Type of borrowings Bank borrowings Export financing Borrowings for material purchase	June 30, 2021 69,650 $ 116,712 200,000 386,362 $ December 31,2020 87,718 $ 280,380 368,098 $ June 30,2020 208,892 $ 97,124 306,016 $	Interest rate range 0.69% 0.69%~1.20% 0.75%~0.98% Interest rate range 0.65%~0.87% 0.74%~1.23% Interest rate range 0.70%~1.35% 0.85%~1.48%	Collateral
			None None None Collateral
			None None Collateral
			None None

For the three months and six months ended June 30, 2021 and 2020, the Group recognised interest expense in profit or loss amounting to $870, $1,434, $1,518 and $3,546 respectively, due to the short-term borrowings.

~22~

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

Items June30,2021 Current items: Financial liabilities held for trading Non-hedging derivatives 2,378 $ Valuation adjustments - 2,378 $	December31,2020 876 $ - 876 $	June30,2020 380 $ - 380 $

A. For the three months and six months ended June 30, 2021 and 2020, the Group recognised net (loss) gain on financial liabilities held for trading amounting to ($899), $1,446, ($1,503) and ($107), respectively.
B. Explanations of the transactions and contract information in respect of derivative financial liabilities that the Group does not adopt hedge accounting are as follows:

Unit: In thousands

				Unit: In thousands	Unit: In thousands
		June 30,2021		December 31, 2020
Non-derivative financial	Contract amount			Contract amount
liabilities for hedging	(Notionalprincipal) Contractperiod			(Notionalprincipal)	Contractperiod
Current items:
Forward foreign	USD	7,950 2021.04.15~		9,560 USD	2020.10.12~
exchange contracts		2021.08.27			2021.03.26
Foreign exchange swap	USD	2,000 2021.05.26~		-	-
transactions		2021.07.15
				June 30,	2020
Non-derivative financial				Contract amount
liabilities for hedging				(Notional principal)	Contractperiod
Current items:
Forward foreign				2,100 USD	2020.06.23~
exchange contracts					2020.08.17
C. The Group entered into forward foreign exchange contracts				and foreign exchange swap
transactions to sell forward contracts to		hedge exchange	rate risk	of export proceeds. However,
these forward contracts are not accounted for under hedge accounting.
Other payables
		June 30,2021	December 31,2020 June 30,2020
Employee bonus payable	$	135,552	$	199,209 $	154,249
Payable on miscellaneous purchases		44,430		32,170	32,693
Payables for machinery and equipment		26,744		34,913	18,912
Accrued export expenses		13,983		17,218	19,325
Payables for consulting service fees		8,024		10,843	9,670
Insurance expense payable		7,829		7,735	6,910
Others		43,931		61,359	52,940
	$	280,493	$	363,447 $	294,699

(13) Other payables

~23~

- (14) Long term borrowings

Borrowing period
Type of borrowings
and repayment term
Long-term bank
borrowings
Land Bank of
Taiwan
Borrowing period is
from February 05,
2021 to February 05,
2026; interest is
repayable monthly.
The Shanghai
Commercial &
Savings Bank
Borrowing period is
from March 31,
2020 to March 15,
2025; interest is
repayable monthly.
Mega Bank
Borrowing period is
from December 23,
2019 to September 15,
2026; interest is
repayable monthly.
Less: Current portion
Borrowing period
Type of borrowings
and repayment term
Long-term bank
borrowings
The Shanghai
Commercial &
Savings Bank
Borrowing period is
from March 31,
2020 to March 14,
2025; interest is
repayable monthly.
Mega Bank
Borrowing period is
from December 23,
2019 to September 15,
2026; interest is
repayable monthly.
Less: Current portion

Interest rate range
Collateral
June 30,2021
0.800%
None
227,281
$ 0.750%
None
281,933

0.845%
None
215,711
724,925
71,873)
(
653,052
$ Interest rate range
Collateral
December 31,2020
0.750%
None
281,933
$ 0.845%
None
109,496
391,429
52,340)
(
339,089
$

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==> picture [484 x 261] intentionally omitted <==

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

Borrowing period
Type of borrowings and repayment term Interest rate range Collateral June 30, 2020
Long-term bank
borrowings
Mega Bank Borrowing period is 0.950% None $ 7,945
from December 23,
2019 to December 15,
2025; interest is
repayable monthly.
The Shanghai Borrowing period is 0.750% None
Commercial & from March 31,
Savings Bank 2020 to March 14,
2025; interest is
repayable monthly. 300,000
307,945
-
Less: Current portion
$ 307,945
----- End of picture text -----

A. For the three months and six months ended June 30, 2021 and 2020, the Group recognised interest expense in profit or loss amounting to $1,275, $382, $2,121 and $382, respectively, due to the long-term borrowings.
B. On January 1, 2019, Ministry of Economic Affairs, R.O.C. (“MOEA”) implemented the “Action Plan for Welcoming Overseas Taiwanese Businesses to Return to Invest in Taiwan” and companies are subsidised with preferential interest loans, 0.5% of loan interest is subsidised by the National Development Fund, Executive Yuan, for qualified investment projects. The Company has obtained the qualification from the MOEA, and signed loan agreements with financial institutions during December 2019 to August 2021 with the line of credit amounting to $1.09 billion and terms from five to six years. As of August 10, 2021, the Company has drawn down $0.784 billion. Funding from these borrowings were used to invest in machineries, equipment and broaden the Company’s working capital.

(15) Pensions

A. (a) The Company has a defined benefit pension plan in accordance with the Labor Standards Act, covering all regular employees’ service years prior to the enforcement of the Labor Pension Act on July 1, 2005 and service years thereafter of employees who chose to continue to be subject to the pension mechanism under the Law. Under the defined benefit pension plan, two units are accrued for each year of service for the first 15 years and one unit for each additional year thereafter, subject to a maximum of 45 units. Pension benefits are based on the number of units accrued and the average monthly salaries and wages of the last 6 months prior to retirement. The Company and its domestic subsidiaries contribute monthly an amount equal to 2% of the employees’ monthly salaries and wages to the retirement fund deposited with

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Bank of Taiwan, the trustee, under the name of the independent retirement fund committee. Also, the Company would assess the balance in the aforementioned labor pension reserve account by December 31, every year. If the account balance is insufficient to pay the pension calculated by the aforementioned method; to the employees expected to be qualify for retirement in the following year, the Company will make contributions for the deficit by next March.

(b) The pension costs under defined contribution pension plans of the Group for the three months and six months ended June 30, 2021 and 2020 were $373, $335, $741 and $824, respectively.
(c) Expected contributions to the defined benefit pension plans of the Group for the year ending December 31, 2021 amount to $3,433.
B. (a) Effective July 1, 2005, the Company has established a defined contribution pension plan (the “New Plan”) under the Labor Pension Act (the “Act”), covering all regular employees with R.O.C. nationality. Under the New Plan, the Company contributes monthly an amount based on 6% of the employees’ monthly salaries and wages to the employees’ individual pension accounts at the Bureau of Labor Insurance. The benefits accrued are paid monthly or in lump sum upon termination of employment.
(b) The Company’s mainland China subsidiary, Jupiter Technology (Wuxi) Inc, has a defined contribution plan. Monthly contributions to an independent fund administered by the government in accordance with the pension regulations in the People’s Republic of China (PRC) are based on certain percentage of employees’ monthly salaries and wages. The contribution percentage was 19%. Other than the monthly contributions, the Company has no further obligations.
(c) The Subsidiary, RadioComp ApS, accrued pension costs based on a certain appropriate rate of total salaries.
(d) The pension costs under defined contribution pension plans of the Group for the three months and six months ended June 30, 2021 and 2020 were $10,972, $5,259, $23,344 and $10,313, respectively.

(16) Provisions

A. Warranties on sales-related products

respectively. visions Warranties on sales-related products
		2021			2020
Balance at January 1	$		9,403	$		12,600
Additional provisions			1,202			3,018
Used during the period	(		3,749)	(		1,405)
Exchange difference	(		88)	(		264)
Balance at June 30	$		6,768	$		13,949

The Group gives warranties on sales-related products. Provision for warranty is estimated based on historical warranty data of uninterruptible power supply and solar energy products.

~26~

B. Provision for income tax in the United States

The Company recognised provision for contingent income tax liability in 2020 for the products sold under the incoterms DDP in the previous years. The US Internal Revenue Service preliminarily determined that it suspects that the Company traded within the US. Although the Company claimed that those were international trades, considering the case is at the tax negotiation stage, provision for income tax liability amounting to $68,668 was recognised in accordance with IAS 37.

C. Analysis of total provisions:

Current Non-current	June 30,2021 74,236 $ 1,200 $	December 31, 2020 75,744 $ 2,327 $	June 30, 2020 13,042 $ 907 $

(17) Share capital

As of June 30, 2021, the Company’s authorised capital was $7,000,000, consisting of 0.7 billion shares of ordinary stock (including 50 million shares reserved for employee stock options and convertible bonds issued by the Company), and the paid-in capital was $2,280,283 with a par value of $10 (in dollars) per share. All proceeds from shares issued have been collected.

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

At January 1 (At June 30)	2021 2020 228,028 228,028 (Unit: In thousand shares)

(18) Capital surplus

Pursuant to the R.O.C. Company Act, capital surplus arising from paid-in capital in excess of par value on issuance of common stocks and donations can be used to cover accumulated deficit or to issue new stocks or cash to shareholders in proportion to their share ownership, provided that the Company has no accumulated deficit. Further, the R.O.C. Securities and Exchange Act requires that the amount of capital surplus to be capitalised mentioned above should not exceed 10% of the paidin capital each year. However, capital surplus should not be used to cover accumulated deficit unless the legal reserve is insufficient.

(19) Retained earnings

A. Under the Company's Articles of Incorporation, the current year's earnings, if any, shall first be used to pay all taxes and offset prior year's operating losses, then 10% of the remaining amount shall be set aside as legal reserve until the legal reserve equals the total capital stock balance. After setting aside or reversal of a special reserve in accordance with related laws, the Company shall appropriate dividends to preferred stock. The Board of Directors should present the distribution of the remaining earnings along with accumulated unappropriated earnings for the approval of the shareholders to distribute dividends to shareholders.

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B. As the Company is in the growth stage, considered entire environment and nature of industry as well as future capital needs and long-term financial plans in order to subsequent operation and stable development. Based on the Company’s future budget of capital expenditure and demand of capital, the Company appropriated no less than 30% of distributable earnings to shareholders’ dividends, but if the distributable earnings is lower than 5% of paid-in capital, no dividends will be distributed. Cash dividend has a first priority when distributing shareholders’ dividends, and the ratio is 30~100% of current total dividends. Remaining dividend can be distributed in the form of stocks. The appropriation of retained earnings will be proposed by the Board of Directors every year, and will be approved by the shareholders.
C. Except for covering accumulated deficit or issuing new stocks or cash to shareholders in proportion to their share ownership, the legal reserve shall not be used for any other purpose. The use of legal reserve for the issuance of stocks or cash to shareholders in proportion to their share ownership is permitted, provided that the distribution of the reserve is limited to the portion in excess of 25% of the Company’s paid-in capital.
D. In accordance with the regulations, the Company shall set aside special reserve from the debit balance on other equity items at the balance sheet date before distributing earnings. When debit balance on other equity items is reversed subsequently, the reversed amount could be included in the distributable earnings.
E. The Company incurred operating losses for the year ended December 31, 2020, and thus had no earnings for distribution.
F. The appropriations of earnings of year 2019 as resolved by the shareholders at their meetings on June 18, 2020 are as follows:

(20) Other equity items

June 18, 2020 are as follows: Other equity items
At January 1 Revaluation Revaluation from subsidiaries Tax effects of subsidiaries At June 30			2021
		Unrealised gains (losses) from financial assets measured at fair value through other comprehensive income
	254,629) ($ 2,517 3,868 - 248,244) ($

~28~

2020

At January 1 Revaluation Revaluation from subsidiaries Tax effects of subsidiaries At June 30	Unrealised gains (losses) from financial assets measured at fair value through other comprehensive income Financial statements translation differences of foreign operations Total 144,506) ($ 104,070) ($ 248,576) ($ 1,381) ( - 1,381) ( 81,085) ( 31,447) ( 112,532) ( - 6,289 6,289 226,972) ($ 129,228) ($ 356,200) ($

(21) Operating revenue

Operating revenue
Revenue from contracts with customers Revenue from contracts with customers	Three months ended June 30
	2021 2020 1,001,669 $ 1,104,981 $ Six months ended June 30	2020
		1,104,981 $
	2021 2,002,885 $	2020
		2,008,402 $

A. Disaggregation of revenue from contracts with customers

The Group derives revenue in the following major geographical regions:

	Three months ended June 30, 2021	Three months ended June 30, 2021
USA MainlandChina Other areas Total 502,260 $ 305,757 $ 576,670 $ 1,384,687 $ - 57,047) ( 325,971) ( 383,018) ( 502,260 $ 248,710 $ 250,699 $ 1,001,669 $ Three months ended June 30,2020
		1,001,669 $

	Mainland China Other areas Total 304,474 $ 649,811 $ 1,546,145 $ - 382,999) ( 441,164) ( 304,474 $ 266,812 $ 1,104,981 $ Six months endedJune30,2021	Total
		1,104,981 $

USA MainlandChina Other areas Total 897,535 $ 618,013 $ 1,148,921 $ 2,664,469 $ - 119,984) ( 541,600) ( 661,584) ( 897,535 $ 498,029 $ 607,321 $ 2,002,885 $		Total
		2,002,885 $

~29~

				Six months ended June 30,2020	Six months ended June 30,2020	Six months ended June 30,2020
		USA	Mainland China			Other areas		Total
Total segment revenue	$	1,022,062	$	482,589	$	1,296,224	$	2,800,875
Inter-segment revenue	(	58,285)		-	(	734,188)	(	792,473)
Revenue from external customer	$	963,777	$	482,589	$	562,036	$	2,008,402
contracts

B. Contract liabilities from customers
(a) The Group has recognised the following revenue-related contract liabilities:

June 30, 2021 December 31, 2020 June 30, 2020 January 1, 2020

Contract liabilities: Contract liabilities- Products sales contracts	5,860 $ 81,033 $	25,663 $	55,824 $

(b) Revenue recognised that was included in the contract liability balance at the beginning of the period:

period:
Revenue recognised that was included in the contract liability balance at the beginning of the period Revenue recognised that was included in the contract liability balance at the beginning of the period	Three months ended June 30
	2021 2020 30,991 $ 2,271 $ Six months ended June 30	2020 2,271 $
	2021 51,880 $	2020
		40,560 $

Changes in contract liabilities are mainly from the timing difference between performance obligations satisfied and customers’ payment.

(22) Interest income

obligations satisfied and customers’ payment. Interest income
Interest income from bank deposits Interest income from bank deposits	Three months ended June 30
	2021 2020 2,317 $ 1,453 $ Six months ended June 30	2020
		1,453 $
	2021 3,471 $	2020
		3,489 $

~30~

(23) Other income

Other income, others Other income, others	2021 2020 3,302 $ 44,055 $ 2021 2020 9,361 $ 45,352 $ Three months ended June 30 Six months ended June 30

A. For the six months ended June 30, 2021 and 2020, the Group recognised government grant income of $0 and $26,921, respectively, for salary and working capital subsidies from the Ministry of Economic Affairs under the ‘Salary and Working Capital Subsidies for Businesses Suffered by the COVID-19 Handled by the Ministry of Economic Affairs’.
B. For the three months and six months ended June 30, 2021 and 2020, the Group recognised government grant income of $2,701 $0, $6,419 and $13,300, respectively, for the subsidiaries from the Ministry of Economic Affairs under the ‘Low Earth Orbit (LEO) Radio Frequency Front End (RFFE) Solution Development Plan’.

(24) Other gains and losses

End (RFFE) Solution Development Plan’. Other gains and losses
		Three months	ended June 30
		2021	2020
Gains (losses) on disposals of property, plant and	$	193	($	36)
equipment
Currency exchange gains (losses)		4,557	(	4,262)
(Losses) gain on financial assets (liabilities) at fair	(	433)		3,578
value through profit or loss
Miscellaneous disbursements	(	1,348)	(	290)
	$	2,969	($	1,010)
		Six months ended June 30
		2021	2020
Gains on disposals of property, plant and	$	248	$	65
equipment
Currency exchange gains (losses)		10,995	(	5,066)
Losses on financial assets (liabilities) at fair value	(	6,277)	(	646)
through loss
Miscellaneous disbursements	(	1,583)	(	1,120)
	$	3,383	($	6,767)

~31~

(25) Finance costs

Interest expense Interest expense of lease liability Interest expense Interest expense of lease liability	2021 2020 2,145 $ 1,816 $ 2,469 1,617 4,614 $ 3,433 $ 2021 2020 3,639 $ 3,928 $ 4,997 3,234 8,636 $ 7,162 $ Three months ended June 30 Six months ended June 30

(26) Expenses by nature

Expenses by nature
Employee benefit expense Depreciation charges on property, plant and equipment Amortisation Employee benefit expense Depreciation charges on property, plant and equipment Amortisation	Three months ended June 30
	2021 2020 250,288 $ 232,834 $ 38,077 29,637 8,509 7,736 296,874 $ 270,207 $ Six months ended June 30
	2021 481,901 $ 75,658 16,802 574,361 $	2020
		455,611 $ 59,109 14,979
		529,699 $

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(27) Employee benefit expense

Employee benefit expense
Salary expenses Labour and health insurance fees Pension costs Other personnel expenses Salary expenses Labour and health insurance fees Pension costs Other personnel expenses	2021 2020 214,717 $ 206,107 $ 18,340 14,265 11,345 5,594 5,886 6,868 250,288 $ 232,834 $ 2021 2020 408,806 $ 402,003 $ 37,071 29,137 24,085 11,137 11,939 13,334 481,901 $ 455,611 $ Three months ended June 30 Six months ended June 30
		402,003 $ 29,137 11,137 13,334 455,611 $

A. According to the Articles of Incorporation of the Company, the ratio of distributable profit of the current year shall not be lower than 7% for employees’ compensation in the form of stocks/cash, and employees must be working for the Company. The current year's earnings, if any, shall not be higher than 1% for directors’ remuneration. Appropriation of employees’ compensation and directors’ remuneration shall be submitted to the shareholders’ meeting. If the Company has accumulated deficit, earnings should be reserved to cover losses and then be appropriated to employees’ compensation and directors’ remuneration based on the abovementioned ratios.
B. For the three months and six months ended June 30, 2021 and 2020, employees’ remuneration was accrued at $0, $123, $0 and $123, respectively; while directors’ remuneration was accrued at $0, $18, $0 and $18, respectively. The aforementioned amounts were recognized in salary expenses.
The employees’ compensation and directors’ and supervisors’ remuneration were estimated and accrued based on 7% and 1% of distributable profit for the six months ended June 30, 2020.
For 2020, the employees’ compensation and directors’ remuneration resolved by the Board of Directors both amounted to $0, which were in agreement with those amounts recognised in the 2020 financial statements.
The employees’ compensation and directors’ and supervisors’ remuneration were estimated and accrued based on 7% and 1% of distributable profit for the six months ended June 30, 2021. However, there were no amounts accrued for both periods as the Company incurred losses before tax.
C. Information about employees’ compensation and directors’ remuneration of the Company as resolved at the meeting of Board of Directors will be posted in the “Market Observation Post System” at the website of the Taiwan Stock Exchange.

~33~

(28) Income tax

A. Income tax (benefit) expense

(a) Components of income tax (benefit) expense:

e tax ome tax (benefit) expense Components of income tax (benefit) expense:
		Three months	ended June 30
		2021	2020
Current tax:
Current tax on profits for the period	$	155	$	1,841
Tax of foreign source income withheld
at source		1,265		1,217
Prior year income tax overestimation		-	(	171)
Total current tax		1,420		2,887
Deferred tax:
Origination and reversal of deferred tax assets		17,201		7,579
Impact of tax losses	(	18,186)	(	7,579)
Total deferred tax	(	985)		-
Income tax expense	$	435	$	2,887
		Six months ended June 30
		2021	2020
Current tax:
Current tax on profits for the period	$	1,393	$	3,566
Tax of foreign source income withheld
at source		1,840		1,217
Prior year income tax overestimation		-	(	171)
Total current tax		3,233		4,612
Deferred tax:
Origination and reversal of deferred tax assets		12,089		16,842
Impact of tax losses	(	18,074)	(	16,842)
Total deferred tax	(	5,985)		-
Income tax (benefit) expense	($	2,752)	$	4,612

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

is as follows:
		Three months	ended June 30
		2021	2020
Currency translation differences	($	3,799)	($	5,811)
		Six months ended June 30
		2021	2020
Currency translation differences	($	5,113)	($	6,289)

(c)The income tax charged/(credited) to equity during the period: None.
B. The Company’s income tax returns through 2017 have been assessed and approved by the Tax

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Authority.

(29) (Losses) earnings per share

==> picture [493 x 449] intentionally omitted <==

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

Three months ended June 30, 2021
Weighted average
number of ordinary
shares outstanding Losses per share
Amount after tax (share in thousands) (in dollars)
Basic losses per share
Loss attributable to the parent ($ 79,396) 228,028 ($ 0.35)
Diluted losses per share
Loss attributable to the parent ( 79,396) 228,028
Assumed conversion of all dilutive
potential ordinary shares
- -
Employees’ compensation
($ 79,396) 228,028 ($ 0.35)
Three months ended June 30, 2020
Weighted average
number of ordinary
shares outstanding Earnings per share
Amount after tax (share in thousands) (in dollars)
Basic earnings per share
Profit attributable to the parent $ 18,658 228,028 $ 0.08
Diluted earnings per share
Profit attributable to the parent 18,658 228,028
Assumed conversion of all dilutive
potential ordinary shares
Employees’ compensation - 5
$ 18,658 228,033 $ 0.08
----- End of picture text -----

~35~

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

Six months ended June 30, 2021
Weighted average
number of ordinary
shares outstanding Losses per share
Amount after tax (share in thousands) (in dollars)
Basic losses per share
Loss attributable to the parent ($ 191,090) 228,028 ($ 0.84)
Diluted losses per share
Loss attributable to the parent ( 191,090) 228,028
Assumed conversion of all dilutive
potential ordinary shares
- -
Employees’ compensation
($ 191,090) 228,028 ($ 0.84)
Six months ended June 30, 2020
Weighted average
number of ordinary
shares outstanding Earnings per share
Amount after tax (share in thousands) (in dollars)
Basic earnings per share
Profit attributable to the parent $ 1,610 228,028 $ 0.01
Diluted earnings per share
Profit attributable to the parent 1,610 228,028
Assumed conversion of all dilutive
potential ordinary shares
Employees’ compensation - 12
$ 1,610 228,040 $ 0.01
----- End of picture text -----

~36~

(30) Supplemental cash flow information

Investing activities with partial cash payments:

Supplemental cash flow information Investing activities with partial cash payments:
		Six months ended		June 30
		2021		2020
Purchase of property, plant and equipment	$	78,885	$	42,949
Add: Opening balance of payable on equipment		34,913		24,037
Ending balance of prepayment for equipment		5,156		1,080
Less: Ending balance of payable on equipment	(	26,744)	(	18,912)
Opening balance of prepayment for equipment		-	(	1,123)
Effect of exchange rate changes	(	97)		32
Cash paid during the period	$	92,113	$	48,063

(31) Changes in liabilities from financing activities

January 1, 2021 Changes in cash flow from financing activities Impact of changes in foreign exchange rate Changes in other non-cash items June 30, 2021 January 1, 2020 Changes in cash flow from financing activities Impact of changes in foreign exchange rate June 30, 2020	Lease liabilities	Short-term borrowings	Long-term borrowings
	521,386 $ 53,093) ( 1,633) ( - 466,660 $ Lease liabilities	368,098 $ 18,985 721) ( - 386,362 $ Short-term borrowings
	311,032 $ 16,007) ( 975) ( 294,050 $	396,748 $ 89,877) ( 855) ( 306,016 $

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7. RELATED PARTY TRANSACTIONS

(1) Names of related parties and relationship

Names of related partiespartiesarties

Names of related partiespartiesarties Relationship with the Company Cybertan Technology Inc. Entities with significant influence to the Group

(2) Significant related party transactions

A. Operating revenue

Three months ended June 30 2021 2020 Sales of goods: Cybertan Technology Inc. $ 50,269 $ 18,644 Six months ended June 30 2021 2020 Sales of goods: Cybertan Technology Inc. $ 86,576 $ 94,563

The sales prices are based on mutual agreement, and no similar transactions can be compared with. The credit terms are 30 days from invoice date for the related parties. For third parties, credit terms are 30~90 days from invoice date or after monthly billings.

B Receivables from related parties

Accounts receivable: Entities with significant influence to the Group Other receivables: Entities with significant influence to the Group	June 30, 2021 37,651 $ 283 37,934 $	December 31, 2020 29,008 $ 340 29,348 $	June 30,2020
			19,084 $ 144
			19,228 $

－
C. Lease transactions lessee
(a) The Group leases buildings from Cybertan Technology Inc.. Rental contracts are typically made for periods of 10 years. Rents are paid at the end of year.
(b) Acquisition of right-of-use assets:

June 30, 2021 December 31, 2020 June 30, 2020 Cybertan Technology Inc. $ 392,845 $ 419,034 $ 207,204

~38~

(c) Lease liabilities

(i) Outstanding balance:

se liabilities Outstanding balance:
		June30,2021	December 31, 2020		June 30, 2020
Cybertan Technology
Inc.	$	396,684	445,225 $	$	210,153
Interest expense
			Three months ended June 30
			2021		2020
Cybertan Technology	Inc.		2,024 $	$	1,107
			Six months ended June 30
			2021		2020
Cybertan Technology	Inc.		4,109 $	$	2,215

(ii) Interest expense

(d) As of June 30, 2021, December 31, 2020 and June 30, 2020, guarantee deposits paid (shown as ‘Other non-current assets’) to entities with significant influence to the Group all amounted to $5,765, $1,972 and $1,972, respectively.

(3) Key management compensation

(d) As of June 30, 2021, December 31, 2020 and June 30, 2020, guarantee deposits paid (shown as ‘Other non-current assets’) to entities with significant influence to the Group all amounted to $5,765, $1,972 and $1,972, respectively. (3) Key management compensation	30, 2020, guarantee deposits paid (shown icant influence to the Group all amounted	30, 2020, guarantee deposits paid (shown icant influence to the Group all amounted	30, 2020, guarantee deposits paid (shown icant influence to the Group all amounted
PLEDGED ASSETS The Group’s assets pledged as collateral are as follows: 2021 2020 Salaries and other short-term employee benefits 9,419 $ 10,222 $ Post-employment benefits 706 423 10,125 $ 10,645 $ 2021 2020 Salaries and other short-term employee benefits 23,259 $ 23,159 $ Post-employment benefits 951 773 24,210 $ 23,932 $ Three months ended June 30 Six months ended June 30 Pledged asset June 30,2021 December 31,2020 June 30,2020 Purpose Time deposits (shown as ‘Financial assets at amortised cost-current’) 539 $ 546 $ 523 $ Guarantee for business card Book value	Three months ended June 30
	2021 2020 9,419 $ 10,222 $ 706 423 10,125 $ 10,645 $ Six months ended June 30	2020 10,222 $ 423
		10,645 $
			2020
		$	23,159 773
		$	23,932
			Purpose Guarantee for business card

8. PLEDGED ASSETS

9. SIGNIFICANT CONTINGENT LIABILITIES AND UNRECOGNISED CONTRACT

COMMITMENTS

None.

~39~

10. SIGNIFICANT DISASTER LOSS

None.

11. SIGNIFICANT EVENTS AFTER THE BALANCE SHEET DATE

None.

12. OTHERS

(1) Capital management

The Group’s objectives when managing capital are to safeguard the Group’s ability to continue as a going concern in order to provide returns for shareholders and to maintain an optimal capital structure to reduce the cost of capital. In order to maintain or adjust the capital structure, the Group may adjust the amount of dividends paid to shareholders, issue new shares or sell assets to reduce debt.

(2) Financial instruments

A. Financial instruments by category

t. ancial instruments Financial instruments by category
Financial assets Financial assets at fair value through profit or loss Financial assets mandatorily measured at fair value through profit or loss Financial assets at fair value through other comprehensive income Designation of equity instruments Financial assets at amortised cost Cash and cash equivalents Financial assets at amortised cost Notes receivable Accounts receivable (including related party transactions) Other receivables (including related party transactions) Guarantee deposits paid	June 30,2021 474 $ 118,504 1,100,464 26,714 - 1,122,812 46,563 8,394 2,423,925 $	December 31,2020 5,275 $ 114,443 1,324,793 27,260 4,081 968,750 38,158 4,508 2,487,268 $	June 30,2020
			2,132 $ 146,400 986,763 28,192 - 1,134,195 43,381 4,521
			2,345,584 $

~40~

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

June 30, 2021 December 31, 2020 June 30, 2020
Financial liabilities
Financial liabilities at fair value through
profit or loss
Financial liabilities held for trading $ 2,378 $ 876 $ 380
Financial liabilities at amortised cost
Short-term borrowings 386,362 368,098 306,016
Accounts payable (including related party 1,267,694 856,353 803,407
transactions)
Other payables 280,493 363,447 294,699
Long-term borrowings 724,925 391,429 307,945
$ 2,661,852 $ 1,980,203 $ 1,712,447
Lease liability $ 466,660 $ 521,386 $ 294,050
----- End of picture text -----

B. Financial risk management policies

There was no significant change in the reporting period. Please refer to Note 12 in the consolidated financial statements for the year ended December 31, 2020.

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

Foreign exchange risk

i. The Group operates internationally and is exposed to exchange rate risk arising from the transactions of the Company and its subsidiaries used in various functional currency, primarily with respect to the USD, EUR and RMB. Exchange rate risk arises from future commercial transactions and recognised assets and liabilities.
ii. Management has set up a policy to require group companies to manage their foreign exchange risk against their functional currency. The group companies are required to hedge their entire foreign exchange risk exposure with the Company treasury. To manage their foreign exchange risk arising from future commercial transactions and recognised assets and liabilities, entities in the Group uses forward foreign exchange contracts, transacted with Company treasury.
iii.The Group hedges foreign exchange rate by using forward exchange and cross currency swap contracts. However, the Group does not adopt hedging accounting. Details of financial assets or liabilities at fair value through profit or loss are provided in Notes 6(2) and (12).
iv. The Group’s businesses involve some non-functional currency operations (the Company’s and certain subsidiaries’ functional currency: NTD; other certain subsidiaries’ functional currency: RMB, USD, and EUR). The information on assets and liabilities denominated in foreign currencies whose values would be materially affected by the exchange rate fluctuations is as follows:

~41~

Foreign currency amount Exchange (In thousands) rate 51,786 $ 27.86 4,164 4.31 1,049 33.15 9,934 6.46 49,733 $ 27.86 1,978 4.31 492 33.15 8,338 6.46 June 30,2021 December 31,2020	Foreign currency amount Exchange (In thousands) rate 51,786 $ 27.86 4,164 4.31 1,049 33.15 9,934 6.46 49,733 $ 27.86 1,978 4.31 492 33.15 8,338 6.46 June 30,2021 December 31,2020	Book value (NTD) 1,442,758 $ 17,947 34,774 276,761 1,385,561 $ 8,525 16,310 232,297
Foreign currency amount (In thousands) 40,781 $ 5,540 1,152 13,965 41,198 $ 803 765 10,609	Exchange rate 28.48 4.36 35.02 6.52 28.48 4.36 35.02 6.52	Book value (NTD)
		1,161,443 $ 24,154 40,343 397,723 1,173,319 $ 3,501 26,790 302,144

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			June 30,2020
	Foreign currency
		amount	Exchange		Book value
		(In thousands)	rate		(NTD)
(Foreign currency`：`
functional currency)
Financial assets
Monetary items
USD:NTD	$	37,218	29.63	$	1,102,769
RMB:NTD		5,422	4.19		22,718
EUR:NTD		487	33.27		16,202
USD:RMB		8,750	7.08		259,263
Financial liabilities
Monetary items
USD:NTD	$	27,960	29.63	$	828,455
RMB:NTD		31,048	4.19		130,091
EUR:NTD		559	33.27		18,598
USD:RMB		9,722	7.08		288,063

v. The total exchange gain (loss), including realised and unrealized, arising from significant foreign exchange variation on the monetary items held by the Group for the three months and six months ended June 30, 2021 and 2020 amounted to $4,557, ($4,262), $10,995 and ($5,066), respectively.

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vi. Analysis of foreign currency market risk arising from significant foreign exchange variation:

(Foreign currency`：` functional currency) Financial assets Monetary items USD:NTD RMB:NTD EUR:NTD USD:RMB Financial liabilities Monetary items USD:NTD RMB:NTD EUR:NTD USD:RMB (Foreign currency`：` functional currency) Financial assets Monetary items USD:NTD RMB:NTD EUR:NTD USD:RMB Financial liabilities Monetary items USD:NTD RMB:NTD EUR:NTD USD:RMB	Effect on Effect on other comprehensive Degree of variation profit or loss income 1% 14,428 $ - $ 1% 179 - 1% 348 - 1% 2,768 - 1% 13,856) ($ - $ 1% 85) ( - 1% 163) ( - 1% 2,323) ( - Six months ended June 30,2021 Sensitivityanalysis Six months ended June 30,2020	Effect on Effect on other comprehensive Degree of variation profit or loss income 1% 14,428 $ - $ 1% 179 - 1% 348 - 1% 2,768 - 1% 13,856) ($ - $ 1% 85) ( - 1% 163) ( - 1% 2,323) ( - Six months ended June 30,2021 Sensitivityanalysis Six months ended June 30,2020
	Sensitivityanalysis
	Effect on Degree of variation profit or loss `1%` 11,028 $ `1%` 227 `1%` 162 `1%` 2,593 `1%` 8,285) ($ `1%` 1,301) ( `1%` 186) ( `1%` 2,881) (	Effect on other comprehensive income
		`-` `$` `-` `-` `-` `-` `$` `-` `-` `-`

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Price risk

i. The Group’s equity securities, which are exposed to price risk, are the held financial assets at fair value through profit or loss, financial assets at fair value through other comprehensive income and available-for-sale financial assets. To manage its price risk arising from investments in equity securities, the Group diversifies its portfolio. Diversification of the portfolio is done in accordance with the limits set by the Group.
ii. The Group’s investments in equity securities comprise shares issued by the overseas and domestic companies. The prices of equity securities would change due to the change of the future value of investee companies. If the prices of these equity securities had increased/decreased by 1% with all other variables held constant, post-tax profit for the six months ended June 30, 2021 and 2020 would have increased/decreased by $5 and $21, respectively, as a result of gains/losses on equity securities classified as at fair value through profit or loss. Other components of equity would have increased/decreased by $1,185 and $1,464, respectively, as a result of other comprehensive income classified as available-for-sale equity investment and equity investment at fair value through other comprehensive income.
(b) Credit risk
i. Credit risk refers to the risk of financial loss to the Group arising from default by the clients or counterparties of financial instruments on the contract obligations. The main factor is that counterparties could not repay in full the accounts receivable based on the agreed terms, and the contract cash flows of debt instruments stated at amortised cost and at fair value through profit or loss.
ii. The Group manages their credit risk taking into consideration the entire group’s concern. For banks and financial institutions, only independently rated parties with a optimised credit rating are accepted. According to the Group’s credit policy, each local entity in the Group is responsible for managing and analysing the credit risk for each of their new clients before standard payment and delivery terms and conditions are offered. Internal risk control assesses the credit quality of the customers, taking into account their financial position, past experience and other factors. Individual risk limits are set based on internal or external ratings in accordance with limits set by management. The utilisation of credit limits is regularly monitored.
iii.Impairment assessment of credit risk on financial assets at amortised cost is as follows:
- (i) The Group adopts following assumptions under IFRS 9, if the contract payments were past due over 30 days based on the terms, there has been a significant increase in credit risk on that instrument since initial recognition.
- (ii) In line with credit risk management procedure, when the counterparty is unable to pay the past-due payables, the default has occurred.

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(iii) The Group used the forecastability to adjust historical and timely information and considered credit rating of issue banks to assess the default possibility of accounts and notes receivable.
(iv) The Group’s financial assets at amortised cost are including time deposits deposited in banks and restricted time deposits. Such banks all have optimised credit rating, no past due has occurred, and no significant changes in the entire economic environment, therefore no credit loss is expected and the impact to the financial statement is remote.
iv. Impairment assessment of credit risk on accounts and notes receivable is as follows:
(i) The Group classifies customers’ accounts and notes receivable in accordance with credit rating of customer. The Group applies the simplified approach using provision matrix to estimate expected credit loss under the provision matrix basis.
(ii) The Group used the forecastability to adjust historical and timely information to assess the default possibility of accounts and notes receivable. As of June 30, 2021, December 31, 2020 and June 30, 2020, the provision matrix is as follows:

				90 days		91-180 days	91-180 days	Over 181 days	Over 181 days
	Notpast due			past due			past due	past due				Total
June 30, 2021
Expected loss rate		0%-1%		0%-1%			0%-1%		0%-1%
Total book value	$	730,238	$	241,335		$	128,434	$	23,074	$	1,123,081
Loss allowance	$	-	$		1	$	12	$	256	$		269
				90 days		91-180 days		Over 181 days
	Not past due			past due			past due	past due				Total
December 31, 2020
Expected loss rate		0%-1%		0%-1%			0%-1%		0%-1%
Total book value	$	639,758	$	315,461		$	15,642	$	2,248	$		973,109
Loss allowance	$	-	$		3	$	2	$	273	$		278
				90 days		91-180 days		Over 181 days
	Not past due			past due			past due	past due				Total
June 30, 2020
Expected loss rate		0%-1%		0%-1%			0%-1%		0%-1%
Total book value	$	723,881	$	404,879		$	5,407	$	731	$	1,134,898
Loss allowance	$	-	$		2	$	3	$	698	$		703
Movements in relation to the Group			applying		the	simplified approach to provide loss
allowance for accounts and notes receivable are as						follows:
							2021			2020
At January 1				$				278	$			1,253
Write-offs of uncollectible		receivables						-	(			1,212)
(Reversal of) provision for		impairment		loss (				4)				663
Effect of exchange rate changes				(				5)	(			1)
At June 30				$				269	$			703

(iii)Movements in relation to the Group applying the simplified approach to provide loss allowance for accounts and notes receivable are as follows:

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v. The following indicators are used to determine whether the credit impairment of debt instruments has occurred:
(i) It becomes probable that the issuer will enter bankruptcy or other financial reorganization due to their financial difficulties;
(ii) The disappearance of an active market for that financial asset because of financial difficulties;
(iii) Default or delinquency in interest or principal repayments;
(iv) Adverse changes in national or regional economic conditions that are expected to cause a default.
vi. The Group used the forecastability to adjust historical and timely information to assess the default possibility of other receivables. As of June 30, 2021, December 31, 2020 and June
30, 2020, the provision matrix is as follows:

June 30, 2021 Expected loss rate Total book value Loss allowance December 31, 2020 Expected loss rate Total book value Loss allowance June 30, 2020 Expected loss rate Total book value Loss allowance	Notpast due 0% 30,793 $ - $ Notpast due 0% 32,151 $ - $ Notpast due 0% 42,949 $ - $	90 days past due 0% 15,603 $ - $ 90 days past due 0% 5,285 $ - $ 90 days past due 0% 432 $ - $	91-180 days Over 181 days past due past due Total 0% 0% 6 $ 161 $ 46,563 $ - $ - $ - $ 91-180 days Over 181 days past due past due Total 0% 0% 722 $ - $ 38,158 $ - $ - $ - $ 91-180 days Over 181 days past due past due Total 0% 0% - $ - $ 43,381 $ - $ - $ - $

(c) Liquidity risk
i. Cash flow forecasting is performed in the operating entities of the Group and aggregated by Company treasury. Company treasury monitors rolling forecasts of the Group’s liquidity requirements to ensure it has sufficient cash to meet operational needs.
ii. Company treasury invests surplus cash in interest bearing current accounts, time deposits, money market deposits and marketable securities, choosing instruments with appropriate maturities or sufficient liquidity to provide sufficient head-room as determined by the above-mentioned forecasts.
iii.The table below analyses the Group’s non-derivative financial liabilities and net-settled or gross-settled derivative financial liabilities into relevant maturity groupings based on the remaining period at the balance sheet date to the contractual maturity date for non-

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derivative financial liabilities and to the expected maturity date for derivative financial liabilities. The amounts disclosed in the table are the contractual undiscounted cash flows.

June 30, 2021 Non-derivative financial liabilities Short-term borrowings Accounts payable Other payables Long-term borrowings Lease liability Derivative financial liabilities Forward foreign exchange transactions and forward exchange swap transaction December 31, 2020 Non-derivative financial liabilities Short-term borrowings Accounts payable Other payables Long-term borrowings Lease liability Derivative financial liabilities Forward foreign exchange transactions June 30, 2020 Non-derivative financial liabilities Short-term borrowings Accounts payable Other payables Long-term borrowings Lease liability Derivative financial liabilities Forward foreign exchange transactions	Less than 3 months 331,110 $ 1,107,937 280,493 14,519 16,956 Less than 3 months 2,378 $ Less than 3 months 319,824 $ 768,871 363,447 800 16,935 Less than 3 months 876 $ Less than 3 months 174,369 $ 754,775 294,699 586 9,578 Less than 3 months 380 $	Between 3 months and 1year 55,794 $ 159,757 - 68,377 50,867 Between 3 months and 1year - $ Between 3 months and 1year 48,488 $ 87,482 - 58,541 50,806 Between 3 months and 1year - $ Between 3 months and 1year 132,282 $ 48,632 - 20,472 28,734 Between 3 months and 1year - $	Between 1 and 2years - $ - - 163,326 67,823 Between 1 and 2years - $ Between 1 and 2years - $ - - 78,339 67,741 Between 1 and 2years - $ Between 1 and 2years - $ - - 76,904 38,312 Between 1 and 2years - $	Between 2 and 5years - $ - - 530,561 203,468 Between 2 and 5years - $ Between 2 and 5years - $ - - 264,760 203,224 Between 2 and 5years - $ Between 2 and 5years - $ - - 215,183 114,935 Between 2 and 5years - $	Over 5years - $ - - 16,228 161,141 Over 5years - $ Over 5years - $ - - 25,377 195,169 Over 5 years - $ Over 5years - $ - - 1,291 150,056 Over 5years - $	Total 386,904 $ 1,267,694 280,493 793,011 500,255 Total 2,378 $ Total 368,312 $ 856,353 363,447 427,817 533,875 Total 876 $ Total 306,651 $ 803,407 294,699 314,436 341,615 Total 380 $

~48~

(3) Fair value information

A. The different levels that the inputs to valuation techniques are used to measure fair value of financial and non-financial instruments have been defined as follows:
Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can access at the measurement date. A market is regarded as active where a market in which transactions for the asset or liability take place with sufficient frequency and volume to provide pricing information on an ongoing basis.
Level 2: Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. The fair value of the Group’s derivative instruments and emerging stocks are included in Level 2.
Level 3: Unobservable inputs for the asset or liability. The fair value of the Group’s investment in equity investment without active market is included in Level 3.
B. Financial instruments not measured at fair value

The carrying amounts of cash and cash equivalents, notes receivable, accounts receivable, other receivables, financial assets at amortised cost, other financial assets, short-term borrowings, accounts payable and other payables are approximate to their fair values.

C. The related information of financial and non-financial instruments measured at fair value by level on the basis of the nature, characteristics and risks of the assets and liabilities are as follows:
(a) The related information of natures of the assets and liabilities is as follows:

June 30, 2021 Assets Recurring fair value measurements Financial assets at fair value through profit or loss Foreign exchange swap contracts Forward foreign exchange contracts Financial assets at fair value through other comprehensive income Equity securities Liabilities Recurring fair value measurements Financial liabilities at fair value through profit or loss Forward exchange swap transactions Forward foreign exchange contracts	Level 1 - $ - - - $ - $ - - $	Level 2 248 $ 226 - 474 $ 35 $ 2,343 2,378 $	Level 3 - $ - 118,504 118,504 $ - $ - - $	Total
				248 $ 226 118,504
				118,978 $
				35 $ 2,343
				2,378 $

~49~

==> picture [454 x 470] intentionally omitted <==

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

December 31, 2020 Level 1 Level 2 Level 3 Total
Assets
Recurring fair value measurements
Financial assets at fair value through
profit or loss
Forward exchange swap transactions $ - $ 5,275 $ - $ 5,275
and forward foreign exchange
contracts
Financial assets at fair value through
other comprehensive income
Equity securities - - 114,443 114,443
$ - $ 5,275 $ 114,443 $ 119,718
Liabilities
Recurring fair value measurements
Financial liabilities at fair value through
profit or loss
$ - $ 876 $ - $ 876
Forward foreign exchange contracts
Level 1 Level 2 Level 3 Total
June 30, 2020
Assets
Recurring fair value measurements
Financial assets at fair value through
profit or loss
Forward exchange swap transactions $ - $ 2,132 $ - $ 2,132
and forward foreign exchange
contracts
Financial assets at fair value through
other comprehensive income
Equity securities - - 146,400 146,400
$ - $ 2,132 $ 146,400 $ 148,532
Liabilities
Recurring fair value measurements
Financial liabilities at fair value through
profit or loss
Forward foreign exchange contracts $ - $ 380 $ - $ 380
----- End of picture text -----

(b) The methods and assumptions the Group used to measure fair value are as follows:
i. When assessing non-standard and low-complexity financial instruments, for example, interest rate swap contracts and foreign exchange swap contracts, the Group adopts valuation technique that is widely used by market participants. The inputs used in the valuation method to measure these financial instruments are normally observable in the market.
ii. The output of valuation model is an estimated value and the valuation technique may not be able to capture all relevant factors of the Group’s financial instruments. Therefore, the estimated value derived using valuation model is adjusted accordingly with additional inputs, for example, model risk or liquidity risk and etc. In accordance with the Group’s management policies and relevant control procedures relating to the valuation models

~50~

used for fair value measurement, management believes adjustment to valuation is necessary in order to reasonably represent the fair value of financial and non-financial instruments at the consolidated balance sheet. The inputs and pricing information used during valuation are carefully assessed and adjusted based on current market conditions.

D. For the six months ended June 30, 2021 and 2020, there was no transfer between Level 1 and Level 2.
E. As of June 30, 2020, convertible bonds amounting to $5,996 were converted into 205,432 preferred shares. The following chart is the movement of Level 3 for the six months ended June 30, 2021 and 2020:

30, 2021 and 2020:
					2021
					Derivative
		Equity	securities		instruments		Total
At January 1	$		114,443	$	-	$	114,443
Gain recognised in other comprehensive			6,385		-		6,385
income
Net exchange differences	(		2,324)		-	(	2,324)
At June 30	$		118,504	$	-	$	118,504
					2020
					Derivative
		Equity	securities		instruments		Total
At January 1	$		224,207	$	5,996	$	230,203
Transfers for the period			5,926	(	5,926)		-
Loss recognised in other comprehensive	(		82,466)		-	(	82,466)
income
Net exchange differences	(		1,267)	(	70)	(	1,337)
At June 30	$		146,400	$	-	$	146,400

F. Treasury department is in charge of valuation procedures for fair value measurements being categorised within Level 3, which is to verify independent fair value of financial instruments. Such assessment is to ensure the valuation results are reasonable by applying independent information to make results close to current market conditions, confirming the resource of information is independent, reliable and in line with other resources and represented as the exercisable price.

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

Unlisted shares Unlisted shares Venture capital shares Non-derivative equity instrument: Unlisted shares Unlisted shares Venture capital shares Non-derivative equity instrument: Unlisted shares Unlisted shares Venture capital shares Non-derivative equity instrument:	Fair value at Valuation Significant unobservable June 30,2021 technique input $ 11,177 Market comparable companies Discount for lack of marketability P/B ratio - Discounted cash flow Long-term pre-tax operating margin 107,327 Net asset value Not applicable Fair value at Valuation Significant unobservable December 31,2020 technique input $ 8,660 Market comparable companies Discount for lack of marketability P/B ratio 12,457 Discounted cash flow Long-term pre-tax operating margin 93,326 Net asset value Not applicable Fair value at Valuation Significant unobservable June 30,2020 technique input $ 11,292 Market comparable companies Discount for lack of marketability P/B ratio 12,960 Discounted cash flow Long-term pre-tax operating margin 122,148 Net asset value Not applicable	Range Relationship of (weighted average) inputs to fair value 30% 100% The higher the discount for lack of marketability, the lower the fair value Not applicable The higher the long-term pre-tax operating margin, the higher the fair value Not applicable The higher the net assets value, the higher the fair value Range Relationship of (weighted average) inputs to fair value 30% 100% The higher the discount for lack of marketability, the lower the fair value Not applicable The higher the long-term pre-tax operating margin, the higher the fair value Not applicable The higher the net assets value, the higher the fair value Range Relationship of (weighted average) inputs to fair value 30% 100% The higher the discount for lack of marketability, the lower the fair value Not applicable The higher the long-term pre-tax operating margin, the higher the fair value Not applicable The higher the net assets value, the higher the fair value

~52~

H. The Group has carefully assessed the valuation models and assumptions used to measure fair value. However, use of different valuation models or assumptions may result in different measurement. The following is the effect of profit or loss or of other comprehensive income from financial assets categorised within Level 3 if the inputs used to valuation models have changed:

changed:
Input Financial assets Equity instruments Discount for lack of marketability P/B ratio Long-term pre-tax operating margin Input Financial assets Equity instruments Discount for lack of marketability P/B ratio Long-term pre-tax operating margin	Change ±10% ±10% ±1% Change ±10% ±10% ±1%	Recognised in	Unfavourable Favourable Unfavourable change change change - $ 479 $ 479 $ - 1,118 1,118) ( - - - - $ 1,597 $ 639) ($ June 30,2021 Recognised in other profit or loss comprehensive income Unfavourable Favourable Unfavourable change change change - $ 371 $ 371) ($ - 866 866) ( - 133 133) ( - $ 1,370 $ 1,370) ($ December 31,2020 Recognised in other profit or loss comprehensive income
		Favourable change - $ - - - $ Favourable change - $ - - - $ Recognised in
			Unfavourable change - $ - - - $ profit or loss

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June 30, 2020

Input Financial assets Equity instruments Discount for lack of marketability P/B ratio Long-term pre-tax operating margin	Change ±10% ±10% ±1%	Favourable change - $ - - - $ Recognised in	Unfavourable change - $ - - - $ profit or loss	Favourable Unfavourable change change 338 $ 338) ($ 1,129 1,129) ( 130 130) ( 1,597 $ 1,597) ($ comprehensive income Recognised in other

(4) Other

Due to the impact of the COVID-19 pandemic in 2021, there were supply problems in raw materials and shortage of workers in the production line of the suppliers in Mainland China and the operating revenue of the Group was therefore affected. However, the Group expects that the impact will be gradually reduced as the pandemic has been stabilised, the suppliers have gradually resumed their production and the Company has rearranged the Group’s resources for the operational adjustments and countermeasures.

13. SUPPLEMENTARY DISCLOSURES

(1) Significant transactions information

A. Loans to others: None.
B. Provision of endorsements and guarantees to others: None.
C. Holding of marketable securities at the end of the period: Please refer to table 1.
D. Acquisition or sale of the same security with the accumulated cost exceeding $300 million or 20% of the Company’s paid-in capital: None.
E. Acquisition of real estate reaching $300 million or 20% of paid-in capital or more: None.
F. Disposal of real estate reaching $300 million or 20% of paid-in capital or more: None.
G. Purchases or sales of goods from or to related parties reaching $100 million or 20% of paid-in capital or more: Please refer to table 2.
H. Receivables from related parties reaching $100 million or 20% of paid-in capital or more: Please refer to table 3.
I. Trading in derivative financial instruments undertaken during the reporting periods: Please refer to Note 6(2) (12).
J. Significant inter-company transactions during the reporting periods: Please refer to table 4.

(2) Information on investees

Names, locations and other information of investee companies (not including investees in Mainland China): Please refer to table 5.

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(3) Information on investments in Mainland China

A. Basic information: Please refer to table 6.
B. Significant transactions, either directly or indirectly through a third areas, with investee companies in the Mainland China: Please refer to table 7.

(4) Major shareholders information

Major shareholders information: Please refer to table 8.

14. SEGMENT INFORMATION

(1) General information

Management has determined the reportable operating segments based on the reports reviewed by the chief operating decision-maker, which is the General Manager, that are used to make strategic decisions and the Group was identified as a single reportable segment.

(2) Measurement of segment information

The Group’s General Manager assesses the performance of the operating segments based on the pretax net income (loss).

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

		Six months ended June 30	Six months ended June 30
		2021	2020
Revenue from external customers	$	2,002,885	2,008,402 $
Inter-segment revenue Total segment revenue Segment (loss) income	$ $ ($	661,584 2,664,469 193,842)	792,473 $ 2,800,875 $ 6,222 $
Segment assets	$	5,758,860	4,865,649 $
Segment liabilities	$	3,544,486	2,316,208 $

(4) Reconciliation for segment income (loss)

Total measurement of segment income is consistent with the operating income shown in the Group’s financial statements. Therefore, no reconciliation was needed.

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Table 1

Expressed in thousands of NTD

Microelectronics Technology, Inc. and Subsidiaries

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

Six months ended June 30, 2021

(Except as otherwise indicated)

Securities held by Marketable securities Relationship with the securities issuer General ledger account		As of June 30, 2021	As of June 30, 2021	Note
	Number of shares	Bookvalue	Ownership (%) Fairvalue
Microelectronics Technology, Inc. Stocks - Taiwan Aerospace Corporation None Financial assets at fair value through other comprehensive income Sasson International Holding, Inc. Stocks - Optical Scientific, Inc. None Financial assets at fair value through profit or loss Sasson International Holding, Inc. Stocks - Firetide, Inc. None Financial assets at fair value through profit or loss Sasson International Holding, Inc. Stocks - Taicom Capital Ltd. None Financial assets at fair value through other comprehensive income Sasson International Holding, Inc. Stocks - New Edge Signal Solutions LCC None Financial assets at fair value through other comprehensive income Sasson International Holding, Inc. Stocks - Kymeta Corporation None Financial assets at fair value through other comprehensive income	648,576 16,023 1,333,360 20,000 1,355,663 205,432	11,177 $ - - 107,327 - -	0.48 11,177 $ 5.02 - 2.24 - Note 107,327 12.5 - 0.05 -

Note: Holding of 10,000 ordinary shares and 10,000 preference shares for 11.43% and 16.67% ownership, respectively.

Table 1, Page1

Microelectronics Technology, Inc. and Subsidiaries

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

Six months ended June 30, 2021

Table 2

Expressed in thousands of NTD (Except as otherwise indicated)

Purchaser/seller	Counterparty	Relationship with the counterparty		Transaction	Transaction		Differences in transaction terms compared to third party transactions	Differences in transaction terms compared to third party transactions	Notes/accounts receivable(payable)	Notes/accounts receivable(payable)	Note
			Purchases (sales)	Amount	Percentage of total purchases (sales)	Credit term	Unitprice	Credit term	Balance	Percentage of total notes/accounts receivable (payable)
Microelectronics Technology, Inc. Jupiter Technology (wuxi), Inc.	Jupiter Technology (wuxi), Inc. Microelectronics Technology, Inc.	Indirect subsidiary of the Company Parent Company	Purchases Sales	269,103 $ 269,103) (	13% (42%)	60 days 60 days	Not applicable Not applicable	Not applicable Not applicable	206,564) ($ 206,564	(17%) 97%

Table 2, Page1

Microelectronics Technology, Inc. and Subsidiaries

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

Six months ended June 30, 2021

Table 3 Creditor	Counterparty	Relationship with the counterparty	Balance as at June 30,2021	Turnover rate	Overdue receivables	Overdue receivables	Expressed in thousands of NTD (Except as otherwise indicated) Amount collected subsequent to the balance sheet date Allowance for doubtful accounts	Expressed in thousands of NTD (Except as otherwise indicated) Amount collected subsequent to the balance sheet date Allowance for doubtful accounts
					Amount	Action taken
Jupiter Technology (wuxi), Inc.	Microelectronics Technology, Inc.	Parent company	206,564 $	2.40	- $	- $	- $	- $

Table 3, Page1

Microelectronics Technology, Inc. and Subsidiaries

Table 4

Significant inter-company transactions during the reporting periods

Six months ended June 30, 2021

Expressed in thousands of NTD (Except as otherwise indicated)

Number (Note 1)	Companyname	Counterparty	Relationship (Note 2)			Transaction
				General ledger account	Amount	Transaction terms	Percentage of consolidated total operating revenues or total assets (Note 3)
0 0 0 0 0 0 0	Microelectronics Technology, Inc. Microelectronics Technology, Inc. Microelectronics Technology, Inc. Microelectronics Technology, Inc. Microelectronics Technology, Inc. Microelectronics Technology, Inc. Microelectronics Technology, Inc.	Jupiter Technology (wuxi), Inc. Jupiter Technology (wuxi), Inc. Jupiter Technology (wuxi), Inc. MTI Laboratory, Inc. MTI Laboratory, Inc. Radiocomp ApS Radiocomp ApS	1 1 1 1 1 1 1	Purchases and processing overhead Accounts payable Other current liabilities Research and development expenses Accrued expense Research and development expenses Accrued expense	269,103 $ 206,564 11,913 61,350 61,013 76,403 13,923	Same as those to the third parties Payment term is 60 days from invoice date Based on the mutual agreement Same as those to the third parties Based on the mutual agreement Same as those to the third parties Based on the mutual agreement	13.44% 3.59% 0.21% 3.06% 1.06% 3.81% 0.24%

Note 1: The information of transactions between the Company and the subsidiaries should be noted in “Number” column.

(1) Number 0 represents the Company.
(2) The consolidated subsidiaries are numbered in order from number 1.
Note 2: The transaction relationship with counterparties are as follows:
(1) The Company to the consolidated subsidiary.
(2) The consolidated subsidiaries to the Company.
(3) The consolidated subsidiaries to other consolidated subsidiaries.

Note 3: In calculating the ratio, the transaction amount is divided by consolidated total assets for balance sheet accounts and is divided by consolidated total revenues for income statement accounts. Note 4: Only transaction amounts over $10 million were disclosed and if transactions between parent company and subsidiaries or between subsidiaries refer to the same transaction, it was not required to be disclosed separately.

Table 4, Page1

Microelectronics Technology, Inc. and Subsidiaries

Table 5

Information on investees

Six months ended June 30, 2021

Expressed in thousands of NTD (Except as otherwise indicated)

Investor	Investee	Location	Main business activities	Initial investment amount	Shares held as at June 30,2021	Net profit (loss) of the investee for the six months ended June 30,2021	Investment income (loss) recognised by the Company for the six months ended June 30,2021 Note
				Balance as at June 30,2021 Balance as at December 31, 2020	Number of shares Ownership (%) Book value
Microelectronics Technology, Inc. Sasson International Holding, Inc. Sasson International Holding, Inc. Welltop Technology Co., Ltd. Welltop Technology Co., Ltd.	Sasson International Holding, Inc. Welltop Technology Co., Ltd. Jupiter Network Corp. MTI Laboratory, Inc. Radiocomp ApS	British Virgin Is. British Virgin Is. British Virgin Is. U.S.A Denmark	Investment management Investment management Investment management Communications Communications	908,778 $ 908,778 $ 218,255 234,863 865,660 931,533 41,790 44,970 130,998 140,966	3,920 100 1,529,191 $ 7,834,000 100 324,721 31,071,800 100 1,000,347 1,500,000 100 132,400 1,527,944 100 172,837	8,721 $ 7,488 44 3,339 4,149	22,832 $ Note 1 7,488 Note 2 44 Note 2 3,339 Note 2 4,149 Note 2

Note 1: Subsidiary of the Company. Note 2: Indirect subsidiary of the Company.

Table 5, Page1

Microelectronics Technology, Inc. and Subsidiaries

Information on investees in Mainland China

Six months ended June 30, 2021

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Table 6
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Expressed in thousands of NTD (Except as otherwise indicated)

Investee in Mainland China	Main business activities	Paid-in capital	Investment method	Accumulated amount of remittance from Taiwan to Mainland China as of January1,2021	Amount remitted from Taiwan to Mainland China / Amount remitted back to Taiwan for the six months ended June 30,2021	Accumulated amount of remittance from Taiwan to Mainland China as of June 30,2021	Net income of investee for the six months ended June 30,2021	Ownership held by the Company (direct or indirect)	Investment income (loss) recognised by the Company for the six months ended June 30, 2021 (Note 2)	Book value of investments in Mainland China as of June 30,2021	Note Accumulated amount of investment income remitted back to Taiwan as of June 30 2021
					Remitted to Mainland China Remitted back to Taiwan
Jupiter Technology (wuxi), Inc. (Note 1)	The manufactures and sales of satellite and microwave communication system and related technical and consultation services	863,660 $	Through investing in an existing company in the third area, which then invested in the investee in Mainland China.	863,660 $	- $ - $	863,660 $	44 $	100	44 $	1,000,308 $	- $ -

Companyname	Accumulated amount of remittance from Taiwan to Mainland China as of June 30,2021	Investment amount approved by the Investment Commission of the Ministry of Economic Affairs (MOEA)	Ceiling on investments in Mainland China imposed by the Investment Commission of MOEA
Microelectronics Technology, Inc.	$ 974,264	$ 1,086,763	$ 1,328,624

Note 1: It was indirectly invested through Jupiter Network Corp. Note 2: Investment profit or loss was recognised based on the financial statements that were reviewed by R.O.C. parent company’s CPA.

Table 6, Page1

Table 7

Microelectronics Technology, Inc. and Subsidiaries

Significant transactions conducted with investees in Mainland China directly or indirectly through other companies in the third areas

Six months ended June 30, 2021

Expressed in thousands of NTD (Except as otherwise indicated)

Provision of

							Provision of	Provision of
Investee in Mainland China	Sale(purchase)		Propertytransaction		Accounts receivable(payable)		endorsements/guarantees or collaterals			Financing			Others(Note)
	Amount	%	Amount	%	Balance	%	Balance at June 30,2021	Purpose	Maximum balance during the six months ended June 30,2021	Balance at June 30,2021	Interestrate	Interest during the six months ended June 30,2021
Jupiter Technology (wuxi), Inc. Note: It consisted of current	$ 269,103 12 liabilities amounting to $11,913.		$ -	-	($ 206,564)	16	$ -	-	$ -	- $	-	- $	$ 11,913

Table 7, Page1

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Microelectronics Technology, Inc. and Subsidiaries
Major shareholders information
June 30, 2021
T able 8 Expressed in thousands of NTD
(Except as otherwise indicated)
Shares
Name of major shareholders No. of shares held Ownership (%)
Cybertan Technology Inc. 58,046,995 25.45%
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Note 1: The major shareholders information was from the data that the Company issued common shares (including treasury shares) and preference shares in dematerialised form which were registered and held by the shareholders above 5% on the last operating date of each quarter and was calculated by Taiwan Depository & Clearing Corporation.
The share capital which was recorded in the financial statements may differ from the actual number of shares issued in dematerialised form because of a different calculation basis.
Note 2: If the aforementioned data contains shares which were kept at the trust by the shareholders, the data disclosed was the settlor’s separate account for the fund set by the trustee. As for the shareholder who reports share equity as an insider whose shareholding ratio is greater than 10% in accordance with Securities and Exchange Act, the shareholding ratio includes the self-owned shares and trusted shares, at the same time, persons who have power to decide how to allocate the trust assets. For the information of reported share equity of insider, please refer to Market Observation Post System.

Table 8, Page1

AI assistant

MTI — Interim / Quarterly Report 2021

52003_rns_2021-11-12_c720a201-c3f7-4573-b6b8-84e914859af7.pdf

MICROELECTRONICS TECHNOLOGY, INC. AND SUBSIDIARIES

CONSOLIDATED FINANCIAL STATEMENTS AND

Introduction

Scope of Review

Conclusion

MICROELECTRONICS TECHNOLOGY, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS JUNE 30, 2021, DECEMBER 31, 2020 AND JUNE 30, 2020

MICROELECTRONICS TECHNOLOGY, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS

JUNE 30, 2021, DECEMBER 31, 2020 AND JUNE 30, 2020

MICROELECTRONICS TECHNOLOGY, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME THREE MONTHS AND SIX MONTHS ENDED JUNE 30, 2021 AND 2020

MICROELECTRONICS TECHNOLOGY, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY SIX MONTHS ENDED JUNE 30, 2021 AND 2020

MICROELECTRONICS TECHNOLOGY, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

SIX MONTHS ENDED JUNE 30, 2021 AND 2020

MICROELECTRONICS TECHNOLOGY, INC. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS SIX MONTHS ENDED JUNE 30, 2021 AND 2020

1. HISTORY AND ORGANISATION

2. THE DATE OF AUTHORISATION FOR ISSUANCE OF THE CONSOLIDATED FINANCIAL

STATEMENTS AND PROCEDURES FOR AUTHORISATION

3. APPLICATION OF NEW STANDARDS, AMENDMENTS AND INTERPRETATIONS

the Group

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

4. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

(1) Compliance statement

(2) Basis of preparation

(3) Basis of consolidation

B. Subsidiaries included in the consolidated financial statements:

(4) Employee benefits

(5) Income tax

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

6. DETAILS OF SIGNIFICANT ACCOUNTS

(1) Cash and cash equivalents

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

(4) Financial assets at amortised cost

(7) Property, plant and equipment

Details of property, plant and equipment for its own use are as follows:

－ (8) Leasing arrangements lessee

(9) Intangible assets

B. Impairment information about the intangible assets is provided in Note 6(10).

(10) Impairment of non-financial assets

(11) Short-term borrowings

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

(13) Other payables

- (14) Long term borrowings

(15) Pensions

(16) Provisions

(17) Share capital

(18) Capital surplus

(19) Retained earnings

(20) Other equity items

(21) Operating revenue

(22) Interest income

(23) Other income

(24) Other gains and losses

(25) Finance costs

(26) Expenses by nature

(27) Employee benefit expense

(28) Income tax

A. Income tax (benefit) expense

(a) Components of income tax (benefit) expense:

Authority.

(29) (Losses) earnings per share

(30) Supplemental cash flow information

(31) Changes in liabilities from financing activities

7. RELATED PARTY TRANSACTIONS

(1) Names of related parties and relationship

(2) Significant related party transactions

(c) Lease liabilities

(i) Outstanding balance:

(ii) Interest expense

(3) Key management compensation

8. PLEDGED ASSETS

9. SIGNIFICANT CONTINGENT LIABILITIES AND UNRECOGNISED CONTRACT

COMMITMENTS

10. SIGNIFICANT DISASTER LOSS

11. SIGNIFICANT EVENTS AFTER THE BALANCE SHEET DATE

12. OTHERS

(1) Capital management

(2) Financial instruments

MTI Interim / Quarterly Report 2021

`－` (8) Leasing arrangements lessee