Qisda — Audit Report / Information 2021

Dec 28, 2021

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Stock Code:2352

QISDA CORPORATION

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

Address: No. 157, Shan-Ying road, Gueishan, Taoyuan, Taiwan Telephone: 886-3-359-8800

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

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Table of contents

Contents 1. Cover Page 2. Table of Contents 3. Independent Auditors’ Report 4. Parent-Company-Only Balance Sheets 5. Parent-Company-Only Statements of Comprehensive Income 6. Parent-Company-Only Statements of Changes in Equity 7. Parent-Company-Only Statements of Cash Flows 8. Notes to the Parent-Company-Only Financial Statements (1) Organization and business (2) Authorization of the parent-company-only financial statements (3) Application of New and Revised Accounting Standards and Interpretations (4) Summary of significant accounting policies (5) Critical accounting judgments and key sources of estimation uncertainty (6) Significant account disclosures (7) Related-party transactions (8) Pledged assets (9) Significant commitments and contingencies (10) Significant loss from disaster (11) Significant subsequent events (12) Others (13) Additional disclosures (a) Information on significant transactions (b) Information on investees (c) Information on investment in Mainland China (d) Major shareholders (14) Segment information 9. List of major account titles

Page

1 2 3 4 5 6 7 8 8 8～9 9～25 25～26 26～66 66～75 75 75 75 75 76～77 77、79～96 77、97～101 78、102～116 78 78 117～130

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Independent Auditors’ Report

To the Board of Directors

Qisda Corporation:

Opinion

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

In our opinion, based on our audits and the reports of other auditors (please refer to Other Matter section of our report), the accompanying parent-company-only financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2021 and 2020, and its financial performance and its cash flows for the years then ended in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers.

Basis for Opinion

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

Key Audit Matters

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

Key audit matters for the Company’s parent-company-only financial statements for the year ended December 31, 2021 are stated as follows:

1. Revenue recognition

Please refer to note 4(p) for the accounting policy on revenue recognition, and note 6(u) for the related disclosures of revenue, respectively, of the notes to the parent-company-only financial statements.

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Description of key audit matter:

The Company recognizes revenue depending on the various trade terms in each individual sale transaction, which are considered to be complex in determining the timing of revenue recognition. Therefore, revenue recognition has been identified as one of the key audit matters.

How the matter was addressed in our audit:

In relation to the key audit matters above, our principal audit procedures included performing a sample test on the design and operating effectiveness of the Company’s internal controls over financial reporting in the sales and collection cycle; assessing whether revenue is recognized based on the trade terms with customers through reviewing the related sales contracts or other trade documents; performing a sample test on the sales transactions that took place before and after the balance sheet date to determine when the performance obligation has been satisfied by transferring control over the goods to a customer to assess the accuracy of the timing of revenue recognition; reviewing and analyzing the reason for significant sales returns and allowances that took place after the balance sheet date to access the reasonableness of the related accrued sales returns and allowances.

2. Valuation of inventories

Please refer to note 4(g) for the inventory accounting policy, note 5 for estimation uncertainty of inventory valuation, and note 6(f) for the related inventory write-down disclosures, respectively, of the notes to the parent-company-only financial statements.

Description of key audit matter:

Inventories are measured at the lower of cost and net realizable value. Due to the rapid technological innovations and highly competitive environments in the electronic industry, the life cycle of certain products of the Company are short and their market prices fluctuate rapidly, which could possibly result in a price decline and obsolescence of inventory, wherein the inventory cost may exceed its net realizable value. Therefore, the valuation of inventories has been identified as one of the key audit matters.

How the matter was addressed in our audit:

In relation to the key audit matter above, our principal audit procedures included reviewing the inventory of aging report and analyzing the fluctuation of inventory aging; selecting samples to verify the accuracy of the net realizable value of inventories and inventory aging report prepared by the Company; evaluating whether valuation of inventories was accounted for in accordance with the Company’ s accounting policies; and assessing the historical reasonableness of management’s estimates on inventory provisions.

3. Assessment of impairment of goodwill from investments in subsidiaries

Please refer to note 4(n) for the accounting policy on impairment of non-financial assets, note 5 for the estimation uncertainty of impairment of goodwill, and note 6(g) for the related disclosures of goodwill impairment test, respectively, of the notes to the parent-company-only financial statements.

3-2

Description of key audit matter:

Goodwill arising from acquisition of subsidiaries, which are included in the carrying amount of investments accounted for using the equity method. Goodwill is subject to impairment test annually or at the time there are indications that goodwill may have been impaired. The assessment of the recoverable amount of goodwill involves management’s judgment and estimation. Accordingly, the assessment of impairment of goodwill has been identified as one of the key audit matters.

How the matter was addressed in our audit:

In relation to the key audit matter above, our principal audit procedures included obtaining the assessment of goodwill impairment provided by the management; assessing the appropriateness of the valuation model and key assumptions, including the discount rate, expected sales growth rate and future cash flow projections, used by the management in measuring the recoverable amount; performing a sensitivity analysis of key assumptions and results; and assessing the adequacy of the Company’s disclosures with respect to the related information.

Other Matter

We did not audit the financial statements of certain investees accounted for using the equity method of the Company. Those financial statements were audited by other auditors, whose reports have been furnished to us, and our opinion, insofar as it relates to the amounts included for those investees, is based solely on the report of other auditors. Those investments accounted for using the equity method amounted to NT$1,992,489 thousand and NT$5,666,505 thousand, respectively, constituting 2.05% and 6.27%, respectively, of the total assets as of December 31, 2021 and 2020, and the related shares of profit of subsidiaries, associates and joint ventures amounted to NT$206,959 thousand and NT$260,766 thousand, respectively, constituting 2.45% and 4.97%, respectively, of the total income before income tax for the years ended December 31, 2021 and 2020.

Responsibilities of Management and Those Charged with Governance for the Parent-Company-Only Financial Statements

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

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

Those charged with governance (including members of the Audit Committee) are responsible for overseeing the Company’s financial reporting process.

Auditors’ Responsibilities for the Audit of the Parent-Company-Only Financial Statements

Our objectives are to obtain reasonable assurance about whether the parent-company-only financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors’ report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with auditing standards generally accepted in the Republic of China will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these parent-company-only financial statements.

3-3

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

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

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

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

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

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

6. Obtain sufficient appropriate audit evidence regarding the financial information of the investees accounted for using the equity method to express an opinion on the parent-company-only financial statements. We are responsible for the direction, supervision and performance of the audit. We remained solely responsible for our audit opinion.

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

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

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

The engagement partners on the audit resulting in this independent auditors’ report are Huei-Chen Chang and Wei-Ming Shih.

KPMG

Taipei, Taiwan (Republic of China) March 7, 2022

Notes to Readers

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

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

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(English Translation of Financial Statements Originally Issued in Chinese) QISDA CORPORATION

Parent-Company-Only Balance Sheets

December 31, 2021 and 2020

(Expressed in Thousands of New Taiwan Dollars)

Assets Current assets: 1100 Cash and cash equivalents (note 6(a)) 1110 Financial assets at fair value through profit or loss－current (note 6(b)) 1170 Notes and accounts receivable, net (notes 6(d) and (u)) 1181 Notes and accounts receivable from related parties (notes 6(d) and (u) and 7) 1200 Other receivables (notes 6(d) and (e)) 1210 Other receivables from related parties (notes 6(e) and 7) 130X Inventories (note 6(f)) 1470 Other current assets Total current assets Non-current assets: 1517 Financial assets at fair value through other comprehensive income－non- current (note 6(c)) 1550 Investments accounted for using the equity method (notes 6(g) and 8) 1600 Property, plant and equipment (notes 6(h), 7 and 8) 1755 Right-of-use assets (note 6(i)) 1760 Investment property (note 6(j)) 1780 Intangible assets (note 6(k)) 1840 Deferred income tax assets (note 6(r)) 1900 Other non-current assets 1980 Other financial assets－non-current (note 8) Total non-current assets Total assets	December 31, 2021 Amount % $ 794,594 1 7,618 - 7,335,535 8 12,802,517 13 89,702 - 4,179 - 5,872,381 6 156,757 - 27,063,283 28 15,253,712 16 51,223,148 53 1,949,691 2 473,693 - 221,622 - 225,918 - 494,584 1 27,333 - 276,900 - 70,146,601 72 $ 97,209,884 100	December 31, 2020 Amount % 865,308 1 56,157 - 9,073,131 10 14,017,651 16 1 - 2,531 - 4,433,192 5 109,930 - 28,557,901 32 37,438 - 58,752,284 65 1,513,839 2 550,191 1 262,739 - 12,327 - 436,876 - 101,771 - 122,110 - 61,789,575 68 90,347,476 100 Liabilities and Equity Current liabilities: 2100 Short-term borrowings (note 6(l)) 2120 Financial liabilities at fair value through profit or loss－current (note 6(b)) 2130 Contract liabilities－current (note 6(u)) 2170 Notes and accounts payable 2180 Accounts payable to related parties (note 7) 2200 Other payables (note 6(v)) 2220 Other payables to related parties (note 7) 2230 Current tax liabilities 2322 Current portion of long-term debt (notes 6(m) and 8) 2280 Lease liabilities－current (notes 6(n) and 7) 2250 Provisions－current (notes 6(o)) 2300 Other current liabilities (note 6(m)) 2365 Refund liabilities—current Total current liabilities Non-current liabilities: 2540 Long-term debt (notes 6(m) and 8) 2580 Lease liabilities－non-current (notes 6(n) and 7) 2550 Provisions－non-current (note 6(o)) 2570 Deferred income tax liabilities (note 6(r)) 2600 Other non-current liabilities (note 6(q)) Total non-current liabilities Total liabilities Equity (note 6(s)): 3110 Common stock 3200 Capital surplus 3300 Retained earnings 3400 Other equity Total equity Total liabilities and equity	December 31, 2021		December 31, 2020 Amount % 6,227,600 7 8,744 - 305,119 - 1,311,156 2 23,527,390 26 1,735,355 2 5,865 - 241,607 - 425,226 - 118,054 - 26,371 - 81,721 - 1,247,436 2 35,261,644 39 17,819,303 20 753,499 1 75,259 - 21,745 - 390,525 - 19,060,331 21 54,321,975 60 19,667,820 22 1,879,501 2 15,742,825 17 (1,264,645) (1) 36,025,501 40 90,347,476 100
			Amount %
			$ 3,417,200 4 20,375 - 556,308 1 1,508,326 2 23,589,792 24 2,147,452 2 725 - 217,329 - 495,733 - 125,831 - 24,329 - 79,548 - 1,800,075 2 33,983,023 35 20,556,869 21 637,277 1 82,479 - 50,727 - 443,086 - 21,770,438 22 55,753,461 57 19,667,820 20 1,844,310 2 20,777,515 22 (833,222) (1) 41,456,423 43 $ 97,209,884 100

See accompanying notes to parent-company-only financial statements.

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(English Translation of Financial Statements Originally Issued in Chinese) QISDA CORPORATION

Parent-Company-Only Statements of Comprehensive Income

For the years ended December 31, 2021 and 2020

(Expressed in Thousands of New Taiwan Dollars, Except for Earnings Per Share)

4000 Operating revenue (notes 6(u) and 7) 5000 Operating costs (notes 6(f), (h), (i), (j), (k), (n), (o), (q) and (v) and 7 and 12) Gross profit 5910 Unrealized profit or loss on sales to subsidiaries, associated and joint ventures Realized or loss gross profit Operating expenses (notes 6(d), (h), (i), (j), (k), (n), (p), (q) and (v) and 7 and 12): 6100 Selling expenses 6200 Administrative expenses 6300 Research and development expenses 6450 Gain on reversal of impairment loss (expected credit loss) Total operating expenses Operating income Non-operating income and loss: 7100 Interest income (note 6(w)) 7010 Other income (notes 6(m), (n), (p) and (w) and 7) 7020 Other gains and losses, net (notes 6(g) and (w)) 7050 Finance costs (notes 6(n) and (w) and 7) 7375 Share of profit of subsidiaries, associates and joint ventures (note 6(g)) Total non-operating income and loss Income before income tax 7950 Income tax expense (note 6(r)) Net income Other comprehensive income: 8310 Items that will not be reclassified subsequently to profit or loss 8311 Remeasurements of defined benefit plans (notes 6(q) and (s)) 8316 Unrealized gains (losses) from investments in equity instruments measured at fair value through other comprehensive income (note 6(s)) 8320 Share of other comprehensive income of subsidiaries, associates and joint ventures (notes 6(g) and (s)) 8349 Less: income tax related to items that will not be reclassified subsequently to profit or loss 8360 Items that may be reclassified subsequently to profit or loss 8361 Exchange differences on translation of foreign operations (note 6(s)) 8399 Less: income tax related to items that may be reclassified subsequently to profit or loss Other comprehensive income (loss) for the year, net of income tax Total comprehensive income for the year Earnings per share (in New Taiwan dollars) (note 6(t)): 9750 Basic earnings per share 9850 Diluted earnings per share	2021 Amount % $ 104,634,583 100 (100,446,928) (96) 4,187,655 4 303,439 - 4,491,094 4 (1,178,455) (1) (959,555) (1) (2,274,898) (2) (14,877) - (4,427,785) (4) 63,309 - 2,618 - 351,975 - 2,103,115 2 (371,194) - 6,293,736 6 8,380,250 8 8,443,559 8 (136,013) - 8,307,546 8 (44,539) - (842,812) (1) 1,941,048 2 - - 1,053,697 1 (309,370) - - - (309,370) - 744,327 1 $ 9,051,873 9 $ 4.22 $ 4.17	2020 Amount % 92,411,291 100 (87,422,698) (95) 4,988,593 5 100,943 - 5,089,536 5 (1,089,249) (1) (861,008) (1) (2,161,744) (2) 3,876 - (4,108,125) (4) 981,411 1 11,344 - 169,874 - 705,622 1 (362,091) - 3,744,772 4 4,269,521 5 5,250,932 6 (262,453) (1) 4,988,479 5 (84,860) - (11,000) - 494,198 - - - 398,338 - (756,355) - - - (756,355) - (358,017) - 4,630,462 5 2.54 2.51

See accompanying notes to parent-company-only financial statements.

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(English Translation of Financial Statements Originally Issued in Chinese) QISDA CORPORATION

Parent-Company-Only Statements of Changes in Equity

For the years ended December 31, 2021 and 2020

(Expressed in Thousands of New Taiwan Dollars)

Balance at January 1, 2020 Net income in 2020 Other comprehensive income (loss) in 2020 Total comprehensive income in 2020 Appropriation of earnings: Legal reserve Special reserve Cash dividends distributed to shareholders Share of changes in equity of subsidiaries, associates and joint ventures Difference between consideration and carrying amount arising from acquisition or disposal of shares of subsidiaries Disposal of financial assets measured at fair value through other comprehensive income by subsidiaries Balance at December 31, 2020 Net income in 2021 Other comprehensive income (loss) in 2021 Total comprehensive income in 2021 Appropriation of earnings: Legal reserve Special reserve Cash dividends distributed to shareholders Share of changes in equity of subsidiaries, associates and joint ventures Difference between consideration and carrying amount arising from acquisition or disposal of shares of subsidiaries Disposal of financial assets measured at fair value through other comprehensive income by associates and subsidiaries Balance at December 31, 2021	Common stock $ 19,667,820 - - - - - - - - - 19,667,820 - - - - - - - - - $ 19,667,820	Capital surplus				Retaine	d earnings					Total other	equity interest		Total equity
				Legal reserve		Special reserve 168,422 - - - - 440,086 - - - - 608,508 - - - - 656,137 - - - - 1,264,645	Unappropriated earnings		Total retained earnings		Foreign currency translation differences		Remeasurements of defined benefit plans (361,048) - (61,059) (61,059) - - - - - - (422,107) - (66,445) (66,445) - - - - - - (488,552)	Total other equity interest (608,508) - (358,017) (358,017) - - - - - (298,120) (1,264,645) - 744,327 744,327 - - - - - (312,904) (833,222)
		2,220,653		1,826,479			10,669,093		12,663,994		(657,512) - (756,355) (756,355) - - - - - - (1,413,867) - (309,370) (309,370) - - - - - - (1,723,237)				33,943,959
		- -		- -			4,988,479 -		4,988,479 -						4,988,479 (358,017)
		-		-			4,988,479		4,988,479						4,630,462
				357,505 - - - - -											- - (1,475,086) (172,241) (901,593) -
				2,183,984 - -											36,025,501 8,307,546 744,327
				-											9,051,873
				455,392 - - - - -											- - (2,950,173) (35,191) (635,587) -
				2,639,376											41,456,423

See accompanying notes to parent-company-only financial statements.

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(English Translation of Financial Statements Originally Issued in Chinese) QISDA CORPORATION

Parent-Company-Only Statements of Cash Flows

For the years ended December 31, 2021 and 2020 (Expressed in Thousands of New Taiwan Dollars)

Cash flows from operating activities: Income before income tax Adjustments for: Adjustments to reconcile profit or loss: Depreciation Amortization Expected credit loss (gain on reversal of impairment loss) Interest expense Interest income Dividend income Share of profits of subsidiaries, associates and joint ventures Loss on disposal of property, plant and equipment Gain on disposal of investments Unrealized profit or loss on sales to subsidiaries, associates and joint ventures Total adjustments for profit or loss Changes in operating assets and liabilities: Changes in operating assets: Decrease (increase) in financial assets at fair value through profit or loss Decrease in notes and accounts receivable Decrease in notes and accounts receivable from related parties Decrease (increase) in other receivable Increase in other receivable from related parties Decrease (increase) in inventories Decrease in other current assets Increase in other non-current assets Net changes in operating assets Changes in operating liabilities: Increase in financial liabilities at fair value through profit or loss Increase (decrease) in notes and accounts payable Increase (decrease) in accounts payable to related parties Decrease in other payable to related parties Increase (decrease) in provisions Increase in contract liabilities Increase in other payables and other current liabilities Increase (decrease) in other non-current liabilities Net changes in operating liabilities Total changes in operating assets and liabilities Total adjustments Cash provided by operations Interest received Dividends received Interest paid Income taxes paid Net cash provided by operating activities	2021 $ 8,443,559 235,420 32,838 14,877 371,194 (2,618) (200,467) (6,293,736) 2,786 (1,979,741) (303,439) (8,122,886) 48,539 1,722,719 1,215,134 (89,701) (1,648) (1,439,189) 21,706 (12,633) 1,464,927 11,631 197,170 62,402 (5,140) 5,178 251,189 943,925 8,024 1,474,379 2,939,306 (5,183,580) 3,259,979 2,618 2,907,725 (363,252) (256,599) 5,550,471	2020 5,250,932 221,622 19,553 (3,876) 362,091 (11,344) (1,750) (3,744,772) - (460,696) (100,943) (3,720,115) (18,716) 1,857,396 760,376 818 (1,083) 712,540 26,675 (85,538) 3,252,468 8,744 (3,771) (2,214,023) (4,066) (1,895) 52,216 247,495 (9,362) (1,924,662) 1,327,806 (2,392,309) 2,858,623 11,344 906,838 (359,873) (85,397) 3,331,535

See accompanying notes to parent-company-only financial statements.

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(English Translation of Financial Statements Originally Issued in Chinese) QISDA CORPORATION

Parent-Company-Only Statements of Cash Flows (Continued)

For the years ended December 31, 2021 and 2020

(Expressed in Thousands of New Taiwan Dollars)

Cash flows from investing activities: Purchase of investments accounted for using the equity method Additions to property, plant and equipment Proceeds from disposal of property, plant and equipment Additions to intangible assets Increase in other financial assets Net cash used in investing activities Cash flows from financing activities: Decrease in short-term borrowings Increase in long-term debt Repayments of long-term debt Payment of lease liabilities Cash dividends distributed to shareholders Net cash provided by (used in) financing activities Net decrease in cash and cash equivalents Cash and cash equivalents at beginning of year Cash and cash equivalents at end of year

See accompanying notes to parent-company-only financial statements.

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(English Translation of Financial Statements Originally Issued in Chinese) QISDA CORPORATION

Notes to the Parent-Company-Only Financial Statements

For the years ended December 31, 2021 and 2020

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

1. Organization and business

Qisda Corporation (the “Company”) was incorporated on April 21, 1984, as a company limited by shares under the laws of the Republic of China (“R.O.C.”) and registered under the Ministry of Economic Affairs, R.O.C. The address of the Company’s registered office is No. 157, Shan-Ying Road, Gueishan, Taoyuan, Taiwan. The Company is engaged in the manufacturing, sales and services of high-end monitors and optomechatronics products.

2. Authorization of the parent-company-only financial statements:

These parent-company-only financial statements were authorized for issue by the Board of Directors on March 7, 2022.

3. Application of New and Revised Accounting Standards and Interpretations:

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

The Company has initially adopted the following new amendments, which do not have a significant impact on its parent-company-only financial statements, from January 1, 2021:

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

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

• ●Amendments to IFRS 16 “Covid-19-Related Rent Concessions beyond June 30, 2021”

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

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

• －

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

• －

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

• ●Annual Improvements to IFRS Standards 2018–2020

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

(Continued)

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QISDA CORPORATION Notes to the Parent-Company-Only Financial Statements

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

The following new and amended standards, which may be relevant to the Company, have been issued by the International Accounting Standards Board (IASB), but have yet to be endorsed by the FSC:

Standards or Interpretations Amendments to IAS 1 “Classification of Liabilities as Current or Non-current”

Content of amendment Effective date per IASB The amendments aim to promote consistency in applying the standards by helping companies determine whether, in balance sheet, debt and other liabilities with an uncertain settlement date should be classified as current (due or potentially due to be settled within one year) or non- current. The amendments include clarifying the classification requirements for debt a company might settle by converting it into equity. January 1, 2023

The Company is evaluating the impact of its initial adoption of the abovementioned standards or interpretations on its parent-company-only financial position and parent-company-only financial performance. The results thereof will be disclosed when the Company completes its evaluation.

The Company does not expect the following other new and amended standards, which have yet to be endorsed by the FSC, to have a significant impact on its parent-company-only financial statements:

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

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

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

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

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

4. Summary of significant accounting policies:

The significant accounting policies presented in the parent-company-only financial statements are summarized as follows and have applied consistently to all periods presented in these financial statements.

(a) Statement of compliance

The Company’ s accompanying parent-company-only financial statements have been prepared in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers (the “Regulations”).

(Continued)

10

QISDA CORPORATION Notes to the Parent-Company-Only Financial Statements

(b) Basis of preparation

• (i) Basis of measurement

The accompanying parent-company-only financial statements have been prepared on a historical cost basis except for the following items:

• 1) Financial instruments measured at fair value through profit or loss (including derivative financial instruments);

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

• 3) Net defined benefit liabilities (assets) measured at recognized as the present value of the defined benefit obligation less the fair value of the plan assets.

(ii) Functional and presentation currency

The functional currency of the Company is determined based on the primary economic environment in which the Company operates. The Company’s parent-company-only financial statements are presented in New Taiwan dollars, which is the Company’s functional currency. Except when otherwise indicated, all financial information presented in New Taiwan dollars has been rounded to the nearest thousand.

(c) Foreign currency

(i) Foreign currency transactions

Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the dates of the transactions. At the end of each reporting period (“ the reporting date” ), monetary items denominated in foreign currencies are translated into the functional currencies using the exchange rate at that date. Non-monetary items denominated in foreign currencies that are measured at fair value are translated into the functional currencies using the exchange rate at the date that the fair value was determined. Non-monetary items denominated in foreign currencies that are measured at historical cost are translated using the exchange rate at the date of the transaction.

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

(ii) Foreign operations

The assets and liabilities of foreign operations, including goodwill and fair value adjustments arising from acquisition, are translated into the presentation currency of the Company’s parentcompany-only financial statements at the exchange rates at the reporting date. The income and expenses of foreign operations are translated into the presentation currency of the Company’s parent-company-only financial statements at the average exchange rates for the period. All resulting exchange differences are recognized in other comprehensive income.

(Continued)

11

QISDA CORPORATION Notes to the Parent-Company-Only Financial Statements

When a foreign operation is disposed of such that control, joint control, or significant influence is lost, the accumulated exchange differences related to that foreign operation is reclassified to profit or loss. In the case of a partial disposal that does not result in the Company losing control over a subsidiary, the proportionate share of the accumulated exchange differences is reclassified to non-controlling interests. For a partial disposal of the Company’ s ownership interest in an associate or joint venture, the proportionate share of the accumulated exchange differences in equity is reclassified to profit or loss.

When the settlement of a monetary receivable from or payable to a foreign operation is neither planned nor likely to occur in the foreseeable future, the monetary item is, in substance, a part of net investment in that foreign operation, and the related foreign exchange gains and losses thereon are recognized as other comprehensive income.

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

An asset is classified as current when one of following criteria is met; all other assets are classified as non-current assets.

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

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

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

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

A liability is classified as current when one of following criteria is met; all other liabilities are classified as non-current liabilities:

• (i) It is expected to be settled in the normal operating cycle;

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

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

• (iv) The Company does not have an unconditional right to defer settlement of the liability for at least twelve months after the reporting period. Terms of a liability that could, at the option of the counterparty, result in its settlement by issuing equity instruments do not affect its classification.

(e) Cash and cash equivalents

Cash consists of cash on hand, checking deposits, and demand deposits. Cash equivalents consist of short-term and highly liquid investments that are readily convertible to known amounts of cash and are subject to an insignificant risk of changes in value. Time deposits that meet the aforesaid criteria and are not held for investing purposes are also classified as cash equivalents.

Bank overdrafts that are repayable on demand and form an integral part of the Company’ s cash management are included as a component of cash and cash equivalents for the purpose of the statement of cash flows.

(Continued)

12

QISDA CORPORATION Notes to the Parent-Company-Only Financial Statements

(f) Financial instruments

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

(i) Financial assets

On initial recognition, financial assets are classified as measured at: amortized cost, fair value through other comprehensive income (FVOCI) and fair value through profit or loss (FVTPL). A regular way purchases or sales of financial assets is recognized or derecognized on a tradedate basis.

Financial assets are not reclassified subsequent to their initial recognition unless the Company changes its business model for managing its financial assets, in which case all affected financial assets are reclassified on the first day of the first reporting period following the change in the business model.

• 1) Financial assets measured at amortized cost

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

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

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

Subsequent to initial recognition, these assets are measured at amortized cost, using the effective interest method less impairment loss. Interest income, foreign exchange gains and losses, and recognition (reversal) of impairment loss are recognized in profit or loss. Any gain or loss on derecognition is recognized in profit or loss.

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

A debt investment is measured at FVOCI if it meets both of the following conditions and is not designated as at FVTPL:

• it is held within a business model whose objective is achieved by both collecting contractual cash flows and selling financial assets; and

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

(Continued)

13

QISDA CORPORATION Notes to the Parent-Company-Only Financial Statements

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

Debt investments at FVOCI are subsequently measured at fair value. Interest income calculated using the effective interest method, foreign exchange gains and losses and impairment loss are recognized in profit or loss. Other net gains and losses are recognized in other comprehensive income. On derecognition, other comprehensive income accumulated in equity are reclassified to profit or loss.

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

Dividend income derived from equity investments is recognized on the date that the Company’s right to receive the dividends is established (usually the ex-dividend date).

• 3) Financial assets measured at fair value through profit or loss

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

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

• 4) Assessment whether contractual cash flows are solely payments of principal and interest

For the purposes of this assessment, “ principal” is defined as the fair value of the financial assets on initial recognition. “Interest” is defined as consideration for the time value of money and for the credit risk associated with the principal amount outstanding during a particular period of time and for other basic lending risks and costs, as well as a profit margin.

In assessing whether the contractual cash flows are solely payments of principal and interest, the Company considers the contractual terms of the instrument. This includes assessing whether the financial asset contains a contractual term that could change the timing or amount of contractual cash flows such that it would not meet this condition. In making this assessment, the Company considers:

• contingent events that would change the amount or timing of cash flows;

• terms that may adjust the contractual coupon rate, including variable rate features;

• prepayment and extension features; and

• terms that limit the Company’ s claim to cash flows from specified assets (e.g. nonrecourse features)

(Continued)

14

QISDA CORPORATION Notes to the Parent-Company-Only Financial Statements

• 5) Impairment of financial assets

The Company recognizes loss allowances for expected credit losses (“ECL”) on financial assets measured at amortized cost (including cash and cash equivalents, notes and accounts receivable, other receivables and other financial assets).

The Company measures loss allowances at an amount equal to lifetime ECL, except for the following financial assets which are measured using 12-month ECL:

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

The Company measures loss allowances for accounts receivable at an amount equal to lifetime ECL.

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

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

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

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

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

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

(Continued)

15

QISDA CORPORATION Notes to the Parent-Company-Only Financial Statements

6) Derecognition of financial assets

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

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

(ii) Financial liabilities and equity instruments

• 1) Classification of debt or equity

Debt and equity instruments issued by the Company are classified as financial liabilities or equity in accordance with the substance of the contractual arrangements and the definitions of a financial liability and an equity instrument. An equity instrument is any contract that evidences a residual interest in the assets of the Company after deducting all of its liabilities. Equity instruments are recognized at the amount of consideration received, less, the direct issuing cost.

2) Financial liabilities

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

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

3) Derecognition of financial liabilities

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

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

(Continued)

16

QISDA CORPORATION Notes to the Parent-Company-Only Financial Statements

• 4) Offsetting of financial assets and liabilities

Financial assets and liabilities are presented on a net basis only when the Company has the legally enforceable right to offset and intends to settle such financial assets and liabilities on a net basis or to realize the assets and settle the liabilities simultaneously.

(iii) Derivative financial instruments

The Company uses derivative financial instruments are held to hedge the Company’s foreign currency exposures. Derivatives are initially measured at fair value and attributable transaction costs are recognized in profit or loss as incurred. Subsequent to initial recognition, derivatives are measured at fair value, and changes therein are recognized in profit or loss, and are included in non-operating income and loss. If the valuation of a derivative instrument is in a positive fair value, it is classified as a financial asset, otherwise, it is classified as a financial liability.

(g) Inventories

Inventories are measured at the lower of cost and net realizable value. The cost of inventories is calculated based on the weighted-average method and includes expenditure incurred in acquiring the inventories, production or conversion costs, and other costs incurred in bringing them to the location and condition ready for sale. Fixed manufacturing overhead is allocated to finished products and work in process based on the higher of normal capacity or actual capacity; variable manufacturing overhead is allocated based on the actual capacity of machinery and equipment. Net realizable value represents the estimated selling price in the ordinary course of business, less, all estimated costs of completion and necessary selling expenses.

(h) Investment in associates

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

Investments in associates are accounted for using the equity method and are recognized initially at cost, plus, any transaction costs. The carrying amount of the investment in associates includes goodwill identified on acquisition, net of any accumulated impairment losses. When necessary, the entire carrying amount of the investment (including goodwill) will be tested for impairment as a single asset by comparing its recoverable amount with its carrying amount. Any impairment loss recognized forms part of the carrying amount of the investment. Any reversal of that impairment loss is recognized to the extent that the recoverable amount of the investment subsequently increases.

The Company’s share of its associates’ post-acquisition profits or losses is recognized in profit or loss, and its share of post-acquisition movements in other comprehensive income is recognized as other comprehensive income with a corresponding adjustment to the carrying amount of the investment. When changes in an associate’ s equity are not recognized in profit or loss or other comprehensive income of the associate, and such changes do not affect the Company’s ownership percentage of the associate, the Company recognizes the change in ownership interests of its associate as “capital surplus” in proportion to its ownership.

(Continued)

17

QISDA CORPORATION Notes to the Parent-Company-Only Financial Statements

Unrealized gains and losses resulting from transactions between the Company and an associate are recognized only to the extent of unrelated investors’ interests in the associate.

Adjustments are made to associates’ financial statements to conform to the accounting polices applied by the Company.

When the Company’s share of losses in an associate equals or exceeds its interest in the associate, the recognition of further losses is discontinued. Additional losses are provided for, and a liability is recognized, only to the extent that the Company has incurred legal or constructive obligations or made payments on behalf of the associate.

When an associate issues new shares and the Company does not subscribe to the new shares in proportion to its original ownership percentage, the Company’s interest in the associate’s net assets will be changed. The change in the equity interest is adjusted through the capital surplus and investment accounts. If the Company’ s capital surplus is insufficient to offset the adjustment to investment accounts, the difference is charged as a reduction of retained earnings. If the Company’s interest in an associate is reduced due to the additional subscription to the shares of associate by other investors, the proportionate amount of the gains or losses previously recognized in other comprehensive income in relation to that associate will be reclassified to profit or loss on the same basis as would be required if the associate had directly disposed of the related assets or liabilities.

(i)

Investment in subsidiaries

When preparing the parent-company-only financial statements, investment in subsidiaries which are controlled by the Company is accounted for using the equity method. Under equity method, profit or loss, and other comprehensive income recognized in parent-company-only financial statement is in line with total comprehensive income attributable to the shareholders of the Company in the consolidated financial statements. In addition, changes in equity recognized in the parent-companyonly financial statements is in line with the changes in equity attributable to shareholders of the Company in the consolidated financial statements.

Changes in a parent’s ownership interest in a subsidiary that do not result in the loss of control as accounted for within equity.

(j) Investment property

Investment property is property held either to earn rental income or for capital appreciation or for both. Investment property is measured at cost on initial recognition. Subsequent to initial recognition, investment property is measured at initial acquisition cost less accumulated depreciation and accumulated impairment losses. The methods for depreciating and determining the useful life and residual value of investment property are the same as those adopted for property, plant and equipment. Cost includes expenditure that is directly attributable to the acquisition of the investment property, bringing the investment property to the condition necessary for it to be available for use, and any borrowing cost that is eligible for capitalization.

Any gain or loss on disposal of an investment property (calculated as the difference between the net proceeds from disposal and the carrying amount) is recognized in profit or loss.

(Continued)

18

QISDA CORPORATION Notes to the Parent-Company-Only Financial Statements

Rental income from investment property is recognized on a straight-line basis over the term of the lease. Lease incentives granted are recognized as an integral part of the total rental income, over the term of the lease.

An investment property is reclassified to property, plant and equipment at its carrying amount when the purpose of the investment property has been changed from investment to owner-occupied.

• (k) Property, plant and equipment

• (i) Recognition and measurement

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

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

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

(ii) Subsequent expenditure

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

(iii) Depreciation

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

Land is not depreciated. The estimated useful lives for property, plant and equipment are as follows: buildings: 10 to 40 years; machinery and equipment: 2 to 10 years; furniture and fixtures: 3 years; and other equipment: 3 to 10 years.

Depreciation methods, useful lives, and residual values are reviewed at each reporting date, with the effect of any changes in estimate accounted for on a prospective basis.

(l) Leases

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

(i) As a lessee

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

(Continued)

19

QISDA CORPORATION Notes to the Parent-Company-Only Financial Statements

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

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

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

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

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

• －

• －

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

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

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

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

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

• － there is a change of the Company’s assessment on whether it will exercise a extension an option to purchase the underlying asset; or

• － there is a change in the lease term resulting from a change of the Company’s assessment on whether it will exercise an extension or termination option; or

• －

• there is any lease modification in lease subject, scope of the lease or other terms.

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

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

(Continued)

20

QISDA CORPORATION Notes to the Parent-Company-Only Financial Statements

The Company presents right-of-use assets that do not meet the definition of investment properties, and lease liabilities as a separate line item respectively in the balance sheets.

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

(ii) As a lessor

When the Company acts as a lessor, it determines at lease commencement whether each lease is a finance lease or an operating lease. To classify each lease, the Company makes an overall assessment of whether the lease transfers to the lessee substantially all of the risks and rewards incidental to ownership of the underlying asset. If this is the case, then the lease is a finance lease; if not, then the lease is an operating lease. As part of this assessment, the Company considers certain indicators such as whether the lease is for the major part of the economic life of the asset.

When the Company is an intermediate lessor, it accounts for its interests in the head lease and the sub-lease separately. It assesses the lease classification of a sub-lease with reference to the right-of-use asset arising from the head lease. If a head lease is a short-term lease to which the Company applies the exemption described above, then it classifies the sub-lease as an operating lease.

For operating lease, the Company recognizes rental income on a straight-line basis over the lease term.

(m) Intangible assets

Intangible assets including acquired software, and patents are carried at cost, less accumulated amortization and accumulated impairment losses. Amortization is recognized in profit or loss using the straight-line method over the estimated useful lives of 2 to 5 years.

The residual value, amortization period, and amortization method are reviewed at least at each reporting date, with the effect of any changes in estimate accounted for on a prospective basis.

(n) Impairment of non-financial assets

The Company assesses at the end of each reporting date whether there is any indication that the carrying amounts of non-financial assets (other than inventories and deferred tax assets) may be impaired. If any such indication exists, then the asset’ s recoverable amount is estimated. Goodwill is tested annually or when there are indications of impairment.

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

(Continued)

21

QISDA CORPORATION Notes to the Parent-Company-Only Financial Statements

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

An impairment loss is recognized if the carrying amount of an asset or CGU exceeds its recoverable amount. Impairment losses are recognized in profit or loss. They are allocated first to reduce the carrying amount of any goodwill allocated to the CGU, and then to reduce the carrying amounts of the other assets in the CGU on a pro rata basis.

An impairment loss in respect of goodwill is not reversed. For other non-financial assets, an impairment loss is reversed only to the extent that the asset’s carrying amount that would have been determined (net of depreciation or amortization) had no impairment loss been recognized for the assets in prior years.

(o) Provisions

Provisions are recognized when the Company has a present obligation (legal or constructive) as a result of a past event, it is probable that the Company will be required to settle the obligation, and a reliable estimate can be made of the amount of the obligation.

A provision for warranties is recognized when the underlying products or services are sold. This provision reflects the historical warranty claim rate and the weighting of all possible outcomes against their associated probabilities.

(p) Revenue recognition

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

(i) Sale of goods

The Company recognizes revenue when control of the goods has been transferred to the customer, being when the goods are delivered to the customer, and there is no unfulfilled obligation that could affect the customer’s acceptance of the goods. Delivery occurs when the goods have been shipped to the specific location, and either the customer has accepted the goods in accordance with the terms of sales, the risks of obsolescence and loss have been transferred to the customer, and the Company has objective evidence that all criteria for acceptance have been satisfied. Sales discount and rebates are recognized and estimated based on historical experience and each contractual term. Revenue is only recognized to the extent that it is highly probable that a significant reversal will not occur. A refund liability is recognized for expected sales discounts and rebate payables to customers in relation to sales made until the end of the reporting period. No element of financing is deemed present as the sales are made with a credit term ranging from 30 to 120 days, which is consistent with the market practice.

(Continued)

22

QISDA CORPORATION Notes to the Parent-Company-Only Financial Statements

The Company’ s obligation to provide a refund for faulty goods sold under the standard warranty terms is recognized as a provision for warranty; please refer to note 6(o).

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

(ii) Rendering of services

The Company’ s revenue from providing product design and development services is recognized in the accounting period in which services are rendered.

(iii) Financing components

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

(q) Government grants and government assistance

A government grant is recognized in profit or loss only when there is reasonable assurance that the Company will comply with the conditions associated with the grant and that the grant will be received.

A government grant is recognized in profit or loss in the period in which it becomes receivable as compensation for expenses or losses already incurred or for the purpose of giving immediate financial support to the Company without future related costs.

Loans from financial institutions with a guarantee from the government are recognized at fair value using the market interest rate. The difference between the fair value of the loan and the amount received is recorded as deferred income and recognized in non-operating income-other income on a systematic basis over the period of the loan.

(r) Employee benefits

• (i) Defined contribution plans

Obligations for contributions to defined contribution pension plans are expensed during the year in which employees render services.

(ii) Defined benefit plans

The liability recognized in respect of defined benefit pension plans is the present value of the defined benefit obligation at the reporting date, less, the fair value of plan assets. The discount rate for calculating the present value of the defined benefit obligation refers to the interest rate of high-quality government bonds that are denominated in the currency in which the benefits will be paid, and that have terms to maturity approximating the term of the related pension obligation. The defined benefit obligation is calculated annually by qualified actuaries using the projected unit credit method.

(Continued)

23

QISDA CORPORATION Notes to the Parent-Company-Only Financial Statements

When the benefits of a plan are improved, the expense related to the increased obligations resulting from the services rendered by employees in the past years are recognized in profit or loss immediately.

The remeasurements of the net defined benefit liability (asset) comprise (i) actuarial gains and losses; (ii) return on plan assets, excluding amounts included in net interest on the net defined benefit liability (asset); and (iii) any change in the effect of the asset ceiling, excluding amounts included in net interest on the net defined benefit liability (asset). The remeasurements of the net defined benefit liabilities (asset) are recognized in other comprehensive income and then transferred to other equity.

The Company recognizes gains or losses on the curtailment or settlement of a defined benefit plan when the curtailment or settlement occurs. The gain or loss on curtailment or settlement comprises any resulting change in the fair value of plan assets and any change in the present value of the defined benefit obligation.

(iii) Short-term employee benefits

Short-term employee benefit obligations are measured on an undiscounted basis and are expensed during the period in which employees render services. A liability is recognized for the amount expected to be paid under short-term cash bonus or profit-sharing plans if the Company has a present legal or constructive obligation to make such payments as a result of past service provided by the employees, and the obligation can be estimated reliably.

(s) Income taxes

Income taxes comprise current taxes and deferred taxes. Current and deferred taxes are recognized in profit or loss unless they relate to business combinations or items recognized directly in equity or other comprehensive income.

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

Deferred income taxes are recognized in respect of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for taxation purposes. Deferred taxes are not recognized for:

• (i) Temporary differences on the initial recognition of assets or liabilities in a transaction that is not a business combination and that affects neither accounting nor taxable profit or loss;

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

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

(Continued)

24

QISDA CORPORATION Notes to the Parent-Company-Only Financial Statements

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

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

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

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

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

• 1) the same taxable entity; or

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

(t)

Business combinations

The Company uses acquisition method for acquisitions of new subsidiaries. Goodwill is measured as the excess of the acquisition-date fair value of the consideration transferred (including any noncontrolling interest in the acquiree) over the net of the acquisition-date amounts of the identifiable assets acquired and liabilities assumed (generally at fair value). If the residual balance is negative, the Company shall re-assess whether it has correctly identified all of the assets acquired and liabilities assumed and record any additional assets or liabilities that are identified in that review, and shall recognize a gain on the bargain purchase thereafter.

Acquisition-related costs are expensed as incurred except for the costs related to issuance of debt or equity instruments.

In a business combination achieved in stages, the Company shall re-measure its previously held equity interest in the acquiree at its acquisition-date fair value and recognize the resulting gain or loss in profit or loss. The amount previously recognized in other comprehensive income in relation to the changes in the value of the Company’s equity interest should be reclassified to profit or loss on the same basis as would be required if the Company had disposed directly of the previously held equity interest.

(Continued)

25

QISDA CORPORATION Notes to the Parent-Company-Only Financial Statements

If the initial accounting for a business combination is incomplete by the end of the reporting period in which the combination occurs, the provisional amounts for the items for which the accounting is incomplete are reported in the financial statements. During the measurement period, the provisional amounts recognized at the acquisition date are retrospectively adjusted to reflect new information obtained about facts and circumstances that existed as of the acquisition date. The measurement period shall not exceed one year from the acquisition date.

Contingent consideration as part of the consideration transferred is measured at the acquisition date fair value. Any fluctuation of the fair value during the measurement period after acquisition date is retrospectively adjusted to the acquisition cost and goodwill. The adjustments are to reflect new information obtained about facts and circumstances that existed as of the acquisition date. The measurement period shall not exceed one year from the acquisition date. For the fair value adjustments of the contingent consideration that occurred not during the measurement period, the accounting treatment will be based on the classification of contingent consideration. Contingent consideration classified as equity cannot be re-measured and has to be adjusted under owner’s equity. Other contingent consideration should be subsequently measured at fair value at the end of each reporting period, and recognized in profit or loss.

(u) Earnings per share (“EPS”)

The basic and diluted EPS attributable to stockholders of the Company are disclosed in the financial statements. Basic EPS is calculated by dividing net income attributable to stockholders of the Company by the weighted-average number of common shares outstanding during the year. In calculating diluted EPS, the net income attributable to stockholders of the Company and weightedaverage number of common shares outstanding during the year are adjusted for the effects of dilutive potential common shares. The Company’s dilutive potential common shares are profit sharing for employees to be settled in the form of common stock.

(v) Operating segments

The Company discloses the operating segment information in the consolidated financial statements. Therefore, the Company does not disclose the operating segment information in the parent-companyonly financial statements.

5. Critical accounting judgments and key sources of estimation uncertainty

The preparation of the parent-company-only financial statements in conformity with the Regulations Governing the Preparation of Financial Reports requires management to make judgments, estimates, and assumptions that affect the application of the accounting policies and the reported amount of assets, liabilities, income and expenses. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the period in which the estimates are revised and the future periods affected.

(Continued)

26

QISDA CORPORATION Notes to the Parent-Company-Only Financial Statements

Information about judgments made in applying the accounting policies that have significant effects on the amounts recognized in the parent-company-only financial statements is as follows:

• (a) Judgment regarding whether the Company has substantial control over the investee. Please refer to consolidated financial statements for the year ended December 31, 2021.

• (b) Judgment regarding significant influence of associates

The Company holds less than 20% of the voting rights in AU Optronics Corp. (“ AU” ) but has significant influence over AU as the chairman of the Company was elected as one of the directors and participates in the decision-making on the Board before May 11, 2021. However, the chairman of the Company resigned as the director of AU on May 11, 2021, which caused the Company to lose significant influence over AU’s financial and operating policy decisions. As a result, the investment － in AU has been reclassified to financial assets at fair value through other comprehensive income non-current since then.

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

(a) Valuation of inventory

Inventories are measured at the lower of cost and net realizable value. Due to the rapid technological innovations and highly competitive environments in the electronic industry, the life cycle of certain products of the Company are short and their market prices fluctuate rapidly, which could possibly result in a price decline and obsolescence of inventory, wherein the inventory cost may exceed its net realizable value. The net realizable value of the inventory is mainly determined based on assumption of future demand within a specific time horizon, which could result in significant adjustments.

• (b) Assessment of impairment of goodwill from investments in subsidiaries

The assessment of impairment of goodwill requires the Company to make subjective judgments to identify cash-generating units, allocate the goodwill to relevant cash-generating units, and estimate the recoverable amount of relevant cash-generating units. Any changes in these estimates based on changed economic conditions or business strategies could result in significant adjustments in future years.

6. Significant account disclosures

• (a) Cash and cash equivalents

Demand deposits and checking accounts Foreign currency deposits	December 31, 2021 $ 235,425 559,169 $ 794,594	December 31, 2020
		108,354 756,954
		865,308

(Continued)

27

QISDA CORPORATION Notes to the Parent-Company-Only Financial Statements

(b) Financial instruments measured at fair value through profit or loss

Financial assets measured at fair value through profit or loss－ current: Foreign currency forward contracts Foreign exchange swaps Financial liabilities at fair value through profit or loss－current: Foreign currency forward contracts Foreign exchange swaps	December 31, 2021 $ 5,647 1,971 $ 7,618 $ 646 19,729 $ 20,375	December 31, 2020
		55,999 158
		56,157
		- 8,744
		8,744

Refer to note 6(w) for the amounts of gain (loss) recognized related to financial assets measured at fair value.

The Company entered into derivative contracts to manage foreign currency exchange risk resulting from its operating and financing activities. As of December 31, 2021 and 2020, the outstanding derivative financial instruments did not conform to the criteria for hedge accounting consisted of the following:

• (i) Foreign currency forward contracts

MYR Buy/ USD Sell CNY Buy/ USD Sell MYR Buy/ USD Sell CNY Buy/ USD Sell	December 31, 2021
	Contract amount (in thousands) Maturity period MYR 34,000 2022/01~2022/02 USD 43,600 2022/02~2022/04 December 31, 2020
	Contract amount (in thousands) Maturity period MYR 14,000 2021/03 USD 73,600 2021/01~2021/03

(Continued)

28

QISDA CORPORATION Notes to the Parent-Company-Only Financial Statements

(ii) Foreign exchange swaps

Swap in USD/Swap out TWD Swap in USD/Swap out TWD	December 31, 2021
	Contract amount (in thousands) Maturity period USD 268,000 2022/01~2022/06 December 31, 2020
	Contract amount (in thousands) Maturity period USD 48,000 2021/01~2021/03

(c) Financial assets at fair value through other comprehensive income—non-current

Equity investments at fair value through other comprehensive income: Domestic listed stocks	December 31, 2021 $ 15,253,712	December 31, 2020
		37,438

The Company designated the equity investments shown above as financial assets at fair value through other comprehensive income because these investments are held for long-term for strategic purposes and not for trading.

On May 12, 2021, the Company lost significant influence over AU Optronics Corp. (“AU”). Hence, the investment in AU was reclassified from investment accounted for using the equity method to financial assets at fair value through other comprehensive income. Please refer to not 6(g).

No strategic investments were disposed for the years ended December 31, 2021 and 2020, and there were no transfers of any cumulative gain or loss within equity relating to these investments.

(d) Notes and accounts receivable

Notes and accounts receivable Notes and accounts receivable from related parties Less: loss allowance	December 31, 2021 $ 7,378,266 12,802,517 20,180,783 (42,731) $ 20,138,052	December 31, 2020
		9,100,985 14,017,651
		23,118,636 (27,854)
		23,090,782

(Continued)

29

QISDA CORPORATION Notes to the Parent-Company-Only Financial Statements

• (i) The Company applies the simplified approach to provide for its expected credit losses, i.e. the use of lifetime expected loss provision for all receivables (including receivables from related parties). Forward looking information is taken into consideration as well. Analysis of expected credit losses on notes and accounts receivable (including receivables from related parties) was as follows:

Current Past due 1-90 days Past due over 91 days Current Past due 1-90 days Past due over 91 days	December 31, 2021	December 31, 2021
	Gross carrying amount Weighted- average loss rate $ 19,279,745 0.05% 898,239 3.42% 2,799 100% $ 20,180,783 December 31, 2020		Loss allowance provision
			9,216 30,716 2,799
			42,731
		Weighted- average loss rate 0.09% 0.09% 100%	Loss allowance provision
			19,293 2,334 6,227
			27,854

• (ii) Movements of the loss allowance for notes and accounts receivable (including receivables from related parties) were as follows:

Balance at January 1 Impairment losses (gain on reversal of impairment loss) Write-off Balance at December 31	2021 $ 27,854 14,877 - $ 42,731	2020 33,141 (3,876) (1,411) 27,854

(Continued)

30

QISDA CORPORATION Notes to the Parent-Company-Only Financial Statements

• (iii) The Company entered into factoring contracts with financial institutions to sell its accounts receivable without recourse. According to these contracts, the Company is not responsible for any risk of uncollectible accounts receivable, but only the loss due to commercial disputes. The Company derecognized the above accounts receivable because it has transferred substantially all of the risks and rewards of their ownership, and it does not have any continuing involvement in them. The receivables from the financial institutions were recognized as “other receivables” upon the derecognition of those accounts receivables. Details of these contracts at each reporting date were as follows:

		December 31, 2021	December 31, 2021
Underwriting bank Factored amount Taishin International Bank $ 8,903,357 CTBC Bank 5,260,495 $ 14,163,852		Unpaid advance amount Advance amount - 8,903,357 - 5,198,490 - 14,101,847 December 31, 2020		Amount recognized in other receivables - 62,005 62,005	Range of interest rates 0.54%～0.82% 0.54%～0.72%	Collateral - - -
Underwriting bank Factored amount Taishin International Bank $ 3,638,461 CTBC Bank 2,688,933 $ 6,327,394		Unpaid advance amount - - -	Advance amount 3,638,461 2,688,933 6,327,394	Amount recognized in other receivables - - -	Range of interest rates 0.61%～0.72% 0.60%～0.68%	Collateral - - -

• (e) Other receivables

The factored accounts receivable, net of advance amount Other receivables－others Other receivables from related parties	December 31, 2021 $ 62,005 27,697 4,179 $ 93,881	December 31, 2020
		- 1 2,531
		2,532

As of December 31, 2021 and 2020, no loss allowance was provided for other receivables after management’s assessment.

(Continued)

31

QISDA CORPORATION Notes to the Parent-Company-Only Financial Statements

(f) Inventories

Raw materials Work in process Finished goods Inventories in transit	December 31, 2021 $ 293,553 62,979 5,108,205 407,644 $ 5,872,381	December 31, 2020
		295,596 49,046 3,930,798 157,752
		4,433,192

For the years ended December 31, 2021 and 2020, the cost of inventories sold amounted to $100,255,047 and $87,273,687, respectively, of which the write-downs of inventories to net realizable value amounted to $12,872, and $8,680, respectively.

(g) Investments accounted for using the equity method

A summary of the Company’s investments accounted for using the equity method at the reporting date is as follows:

Subsidiaries Associates	December 31, 2021 $ 49,123,621 2,099,527 $ 51,223,148	December 31, 2020
		44,089,838 14,662,446
		58,752,284

(i) Subsidiaries

Please refer to consolidated financial statements for the year ended December 31, 2021.

• －

• (ii) Acquisition of subsidiaries Golden Spirit Co., Ltd. and its subsidiaries

1) Consideration transferred

On June 19, 2020, the Company invested the amount of $254,000 and acquired the entire shareholdings of Golden Spirit Co., Ltd. (“ GSC” ), in which the Company obtained control over it. Thereafter, GSC and its subsidiaries to become the Company’ s subsidiaries. GSC and its subsidiaries are engaged in the trading and manufacturing of alcohol and medical disinfectant. The acquisition of GSC enables the Company to accelerate the product deployment in the dialysis business, and expand the business of medical and epidemic prevention products.

(Continued)

32

QISDA CORPORATION Notes to the Parent-Company-Only Financial Statements

• 2) Identifiable net assets acquired in a business combination

On June 19, 2020 (the acquisition date), the fair value of identifiable assets acquired and liabilities assumed from the acquisition was as follows:

Consideration transferred:

Consideration transferred:
Cash			$	254,000
Less: identifiable net assets acquired at fair value:
Cash and cash equivalents	$	42,989
Notes and accounts receivable, net		56,664
Inventories		54,988
Other current assets		36,610
Other financial assets－current		4,288
Financial assets at fair value through other
comprehensive income－non-current		2,960
Property, plant and equipment		545,568
Right-of-use assets		45,633
Intangible assets－trademarks		69,156
Intangible assets－computer software		1,921
Intangible assets－customer relationships		1,176
Intangible assets－agency		2,843
Intangible assets－others		1,235
Other non-current assets		27,873
Other financial assets－non-current		21,432
Short-term borrowings		(203,902)
Notes and accounts payable		(19,826)
Accounts payable to related parties		(3,805)
Other payable		(30,927)
Other current liabilities		(27,572)
Current portion of long-term debt		(37,148)
Long-term debt		(191,885)
Deferred income tax liabilities		(13,657)
Lease liabilities		(48,331)
Other non-current liabilities		(9,761)
Non-controlling interests		(87,034)		241,488
Goodwill			$	12,512

Goodwill arising from the acquisition are included in the carrying amount of investments accounted for using the equity method.

(Continued)

33

QISDA CORPORATION Notes to the Parent-Company-Only Financial Statements

－ (iii) Acquisition of subsidiaries Simula Technology Inc. and its subsidiaries

• 1) Consideration transferred

On April 1, 2020, the Company subscribed 30,000 thousand shares of Simula Technology Inc. (“Simula”) at a price of $600,000 through private offering and acquired 37.5% of its ownership. In addition, the Company’ s subsidiaries, Darly Venture Inc. and Darly2 Venture Co., Ltd. acquired 13.77% of its ownership in public market for $411,840. After these investments in Simula, the Company obtained 51.27% of Simula’s ownership and owned more the half of Simula’ s total number of directors. Therefore, the Company obtained control over Simula. Thereafter, Simula and its subsidiaries to become the Company’ s subsidiaries. Simula and its subsidiaries are engaged in electronic components manufacturing, electronic material wholesale, product design and international trade. The acquisition of Simula enables the Company to jointly develop vehicle networking, medical and health equipment, and AIoT solutions, and assist the Company to develop upstream and downstream key components of supply chain.

(Continued)

34

QISDA CORPORATION Notes to the Parent-Company-Only Financial Statements

• 2) Identifiable net assets acquired in a business combination

On April 1, 2020(the acquisition date), the fair value of identifiable assets acquired and liabilities assumed from the acquisition was as follows:

Consideration transferred: Cash

Consideration transferred:
Cash		$	1,011,840
Non-controlling interests (measured at non-controlling
interest’s proportionate share of fair value of
Simula’s identifiable net assets)			807,562
Less: identifiable net assets acquired at fair value:
Cash and cash equivalents	$	1,016,057
Financial assets at fair value through profit or loss－
current		18
Notes and accounts receivable, net		197,657
Other receivable		7,472
Inventories		111,483
Other current assets		14,264
Financial assets at fair value through other
comprehensive income－non-current		4,880
Investments accounted for using equity method		4,140
Property, plant and equipment		354,283
Right-of-use assets		36,011
Intangible assets－customer relationships		154,526
Intangible assets－expertise		124,792
Intangible assets－computer software		4,641
Deferred income tax assets		4,918
Other non-current assets		14,553
Financial liabilities at fair value through profit or loss
－current		(114)
Contract liabilities－current		(4,016)
Notes and accounts payable		(101,289)
Other payable		(167,133)
Other current liabilities		(1,603)
Lease liabilities		(36,515)
Deferred income tax liabilities		(63,502)
Other non-current liabilities		(477)
Non-controlling interests		(17,827)	1,657,219
Goodwill		$	162,183

Goodwill arising from the acquisition are included in the carrying amount of investments accounted for using the equity method.

(Continued)

35

QISDA CORPORATION Notes to the Parent-Company-Only Financial Statements

－ (iv) Acquisition of subsidiaries Alpha Networks Inc. and its subsidiaries

• 1) Consideration transferred

On July 23, 2020, the Company invested the amount of $3,092,150 and acquired 19.02% ownership of Alpha Networks Inc. (“Alpha”) through public tender offer, resulting in the Company and the subsidiaries’ ownership interest in Alpha to increase from 23.84% to 42.86%. Thereafter, the Company obtained control over Alpha. Hence, Alpha and its subsidiaries have become the Company’ s subsidiaries. Alpha and its subsidiaries are engaged in research, development, design, manufacture and sales of broadband products, wireless network products, as well as computer network system equipment, and their related components. The acquisition of Alpha enables the Company to seize the business opportunity of rapid 5G development by integrating and strengthening the Group’s strong technological and manufacturing skills, as well as Alpha’ s capability on network equipment industry in order to expand its market share and customers base to increase international competitiveness.

(Continued)

36

QISDA CORPORATION Notes to the Parent-Company-Only Financial Statements

• 2) Identifiable net assets acquired in a business combination

On July 23, 2020, (the acquisition date), the fair value of identifiable assets acquired and liabilities assumed from the acquisition was as follows:

liabilities assumed from the acquisition was as follows:
Consideration transferred:
Cash			$	3,092,150
Add: fair value of the pre-existing interest in the acquiree				3,200,885
Less: Dividends receivable from acquisitions				(45,461)
Add: non-controlling interest (measured at non-controlling				6,274,387
interest’s proportionate share of the fair value of
Alpha’s identifiable net assets)
Less: identifiable net assets acquired at fair value:
Cash and cash equivalents	$	5,179,564
Financial assets at fair value through profit or loss－		85,472
current
Notes and accounts receivable, net		5,839,060
Inventories		7,529,865
Other financial asset—current		10,874
Other current asset		887,344
Financial assets at fair value through other		206,469
comprehensive income－non-current
Property, plant and equipment		4,578,437
Right-of-use asset		1,217,679
Deferred income tax assets		208,561
Intangible assets－goodwill		578,901
Intangible assets－patent		782,741
Intangible assets－trademark		229,755
Intangible assets－customer relationships		392,233
Intangible assets－expertise		221,870
Intangible assets－computer software		55,412
Other financial asset—non-current		159,587
Short-term borrowings		(2,899,290)
Financial liabilities at fair value through profit or loss		(9,192)
－current
Notes and accounts payable		(6,658,208)
Accounts payable to related parties		(3,795)
Contract liabilities		(469,582)
Other payable		(2,382,643)
Provision		(204,261)
Bonds payable		(576,724)
Lease liabilities		(202,240)
Deferred income tax liabilities		(496,526)
Other non-current liabilities		(293,960)
Non-controlling interests		(2,986,676)		10,980,727
Goodwill			$	1,541,234

(Continued)

37

QISDA CORPORATION Notes to the Parent-Company-Only Financial Statements

Goodwill arising from the acquisition are included in the carrying amount of investments accounted for using the equity method.

The Company’s previously held 23.84% ownership of Alpha is remeasured to fair value at the acquisition date, and recognized a gain on disposal of $676,979 in other gains and losses, net.

(v) Impairment test on goodwill

The carrying amounts of goodwill arising from business combinations and the respective CGUs to which the goodwill was allocated for impairment test purpose as of December 31, 2021 and 2020 were as follows:

Alpha DFI PTT	December 31, 2021 $ 1,730,813 $ 1,427,555 $ 810,579	December 31, 2020
		1,730,813
		1,427,555
		924,757

Each CGU or group of CGUs to which the goodwill is allocated represents the lowest level within the group, at which the goodwill is monitored for internal management purpose. Based on the results of impairment tests conducted by the Company, the recoverable amount exceeded its carrying amount; as a result, no impairment loss was recognized. The recoverable amount of a CGU was determined based on the value in use, and the related key assumptions were as follows:

Alpha： Revenue growth rate Discount rates DFI： Revenue growth rate Discount rates PTT： Revenue growth rate Discount rates	December 31, 2021 December 31, 2020 4%~15% 4%~15% 17.46% 16.98% December 31, 2021 December 31, 2020 7%~20% 16%~24% 13.51% 17.17% December 31, 2021 December 31, 2020 7%~13% -5%~6% 13.24% 13.92%

(Continued)

38

QISDA CORPORATION Notes to the Parent-Company-Only Financial Statements

• 1) The cash flow projections were based on future financial budgets, covering a period of 5 years, approved by management. Cash flows beyond that 5-year period have been extrapolated using 1% to 3.58% growth rate.

• 2) The estimation of discount rate is based on the weighted average cost of capital.

(vi) Investments in associates

Name of Associates Main Business and Relationship AU Optronics Corp. (“AU”) R & D, manufacture and sale of TFT- LCD panels, the Company’s strategic partners Darfon Electronics Corp. (“DFN”) Manufacture and sale of power devices, peripheral equipment, and integrated communication devices, the Company’s strategic partners Q.S.Control Corp. Manufacture and sales of medical consumables and equipment, the Company’s strategic partners	Location Taiwan Taiwan Taiwan	December 31, 2021 Percentage of voting rights Carrying amount - - % 20.72 2,040,465 % 20.00 59,062 $ 2,099,527	December 31, 2021 Percentage of voting rights Carrying amount - - % 20.72 2,040,465 % 20.00 59,062 $ 2,099,527	December	31, 2020
		Percentage of voting rights		Percentage of voting rights % 6.99 % 20.72 % 20.00	Carrying amount
		- % 20.72 % 20.00			12,701,500 1,904,389 56,557
					14,662,446

The equity-method was used to account for the Company’s investments in AU, in which the Company holds less than 20% of the voting rights but has significant influence over AU as the chairman of the Company was elected as director and participates in the decision-making on the Board of AU before May 11, 2021. However, the chairman of the Company resigned as the director of AU on May 11, 2021, which caused the Company to lose significant influence over AU’ s financial and operating policy decisions. As a result, the investment in AU has been － reclassified to financial assets at fair value through other comprehensive income non-current. A gain on disposal of investments of $1,979,741 was recognized under other gains and losses, net accordingly.

For the years ended December 31, 2021 and 2020, the Company’s shares of profits (losses) of associates amounted to $1,495,904 and $440,368, respectively.

(Continued)

39

QISDA CORPORATION Notes to the Parent-Company-Only Financial Statements

The fair value of the investment in associates which are publicly traded were as follows:

AU DFN	December 31, 2021 December 31, 2020 $ - 9,290,386 2,940,854 2,514,517

The summarized financial information in respect of each of the Company’s material associates is set out below:

• 1) The summarized financial information of AU:

				December 31,
				2020
Current assets			$	168,317,673
Non-current assets				238,952,622
Current liabilities				(98,338,179)
Non-current liabilities				(115,141,751)
Equity			$	193,790,365
Equity attributable to non-controlling interests of AU			$	10,985,674
Equity attributable to shareholders of AU			$	182,804,691
				2020
Net sales			$	270,955,381
Net income			$	2,907,427
Other comprehensive income				2,862,980
Total comprehensive income			$	5,770,407
Total comprehensive income attributable to non-controlling interests of
AU			$	(319,234)
Total comprehensive income attributable to shareholders of AU			$	6,089,641
		2021		2020
The Company’s share of equity of associates at
January 1	$	12,804,784		12,348,373
Net income attributable to the Company		1,255,866		236,005
Other comprehensive income (loss) attributable to the
Company			(63,477)	189,661
Capital surplus attributable to the Company			(55,616)	3,020
Reclassified to financial assets at fair value through
other comprehensive income		(13,838,274)		-
Cumulative effect of net income recognized under
treasury stock method		(103,283)		(75,559)
The carrying amount of investments in the associates
at December 31	$		-	12,701,500

(Continued)

40

QISDA CORPORATION Notes to the Parent-Company-Only Financial Statements

• 2) The summarized financial information of DFN:

December 31, 2021 December 31, 2020 Current assets $ 21,078,564 14,983,083 Non-current assets 12,116,710 9,286,423 Current liabilities (16,153,908) (11,672,915) Non-current liabilities (4,320,029) (2,017,529) Equity $ 12,721,337 10,579,062 Equity attributable to non-controlling interests of DFN $ 2,879,152 1,387,996 Equity attributable to shareholders of DFN $ 9,842,185 9,191,066 2021 2020 Net sales $ 28,048,736 22,349,528 Net income $ 1,301,622 953,347 Other comprehensive income (loss) (174) 124,103 Total comprehensive income $ 1,301,448 1,077,450 Total comprehensive income attributable to non- controlling interests of DFN $ 161,642 42,255 Total comprehensive income attributable to shareholders of DFN $ 1,139,806 1,035,195 2021 2020 The Company’s share of equity of associates at January 1 $ 1,904,389 1,798,607 Net income attributable to the Company 237,533 187,238 Other comprehensive income (loss) attributable to the Company (1,393) 27,228 Capital surplus attributable to the Company 44,948 24,726 Dividend received from associates (145,012) (133,410) The carrying amount of investments in the associates at December 31 $ 2,040,465 1,904,389 3) Aggregate financial information of associates that were not individually material to the Company was summarized as follows. The financial information was included in the Company’s parent-company-only financial statements.	December 31, 2021 December 31, 2020 Current assets $ 21,078,564 14,983,083 Non-current assets 12,116,710 9,286,423 Current liabilities (16,153,908) (11,672,915) Non-current liabilities (4,320,029) (2,017,529) Equity $ 12,721,337 10,579,062 Equity attributable to non-controlling interests of DFN $ 2,879,152 1,387,996 Equity attributable to shareholders of DFN $ 9,842,185 9,191,066 2021 2020 Net sales $ 28,048,736 22,349,528 Net income $ 1,301,622 953,347 Other comprehensive income (loss) (174) 124,103 Total comprehensive income $ 1,301,448 1,077,450 Total comprehensive income attributable to non- controlling interests of DFN $ 161,642 42,255 Total comprehensive income attributable to shareholders of DFN $ 1,139,806 1,035,195 2021 2020 The Company’s share of equity of associates at January 1 $ 1,904,389 1,798,607 Net income attributable to the Company 237,533 187,238 Other comprehensive income (loss) attributable to the Company (1,393) 27,228 Capital surplus attributable to the Company 44,948 24,726 Dividend received from associates (145,012) (133,410) The carrying amount of investments in the associates at December 31 $ 2,040,465 1,904,389 3) Aggregate financial information of associates that were not individually material to the Company was summarized as follows. The financial information was included in the Company’s parent-company-only financial statements.	December 31, 2020 14,983,083 9,286,423 (11,672,915) (2,017,529)
		10,579,062
		1,387,996
		9,191,066
		2020 22,349,528
		953,347 124,103
		1,077,450
		42,255
		1,035,195
		2020 1,798,607 187,238 27,228 24,726 (133,410)
		1,904,389
	December 31, 2021 The aggregate carrying amount of associates that were not individually material to the Company $ 59,062	December 31, 2020 56,557

		December 31,	December 31,	December 31,
			2021	2020
The aggregate carrying amount of	associates that were
not individually material to the	Company	$	59,062	56,557

(Continued)

41

QISDA CORPORATION Notes to the Parent-Company-Only Financial Statements

Attributable to the Company: Net income Other comprehensive income Total comprehensive income	2021 $ 2,505 - $ 2,505	2020
		3,979 -
		3,979

Refer to note 8 for a description of the Company’s investments accounted for using the equity method pledged as collateral for long-term debt and credit facilities.

(h) Property, plant and equipment

Cost: Balance at January 1, 2021 Additions Disposals Reclassification Balance at December 31, 2021 Balance at January 1, 2020 Additions Disposals Reclassification Balance at December 31, 2020 Accumulated depreciation: Balance at January 1, 2021 Depreciation Disposals Balance at December 31, 2021 Balance at January 1, 2020 Depreciation Disposals Balance at December 31, 2020 Carrying amount: Balance at December 31, 2021 Balance at December 31, 2020	Land $ 805,484 - - - $ 805,484 $ 805,484 - - - $ 805,484 $ - - - $ - $ - - - $ - $ 805,484 $ 805,484	Buildings 1,667,399 79,176 (3,999) 19,904 1,762,480 1,660,803 6,596 - - 1,667,399 1,205,397 44,421 (329) 1,249,489 1,162,211 43,186 - 1,205,397 512,991 462,002	Machinery 806,287 219,004 (78,981) 17,053 963,363 849,007 36,876 (101,816) 22,220 806,287 643,670 48,001 (56,463) 635,208 707,235 38,251 (101,816) 643,670 328,155 162,617	Other equipment 176,941 42,028 (3,426) 7,608 223,151 163,336 10,535 (910) 3,980 176,941 142,408 15,362 (2,704) 155,066 130,752 12,566 (910) 142,408 68,085 34,533	Construction in progress 49,203 231,289 - (45,516) 234,976 40,985 34,418 - (26,200) 49,203 - - - - - - - - 234,976 49,203	Total 3,505,314 571,497 (86,406) (951) 3,989,454 3,519,615 88,425 (102,726) - 3,505,314 1,991,475 107,784 (59,496) 2,039,763 2,000,198 94,003 (102,726) 1,991,475 1,949,691 1,513,839

(i) The Company owned a parcel of land with a book value of $104,324. Because of certain legal restrictions, this land was registered under the name of individuals. In order to protect the Company’s rights to this land, the Company signed a deed of trust with these individuals, under which they are obliged to surrender their rights to the Company when required.

(ii) Pledge as collateral

Refer to note 8 for a description of the Company’s property, plant and equipment pledged as collateral for long-term debt.

(Continued)

42

QISDA CORPORATION Notes to the Parent-Company-Only Financial Statements

(i) Right-of-use assets

		Buildings
Cost:
Balance at January 1, 2021	$	844,214
Additions		10,021
Reclassification from investment property		6,212
Balance at December 31, 2021	$	860,447
Balance at January 1, 2020	$	1,247,361
Reclassification to investment property		(403,147)
Balance at December 31, 2020	$	844,214
Accumulated depreciation:
Balance at January 1, 2021	$	294,023
Reclassification from investment property		6,342
Depreciation		86,389
Balance at December 31, 2021	$	386,754
Balance at January 1, 2020	$	306,812
Depreciation		86,372
Reclassification to investment property		(99,161)
Balance at December 31, 2020	$	294,023
Carrying amount:
Balance at December 31, 2021	$	473,693
Balance at December 31, 2020	$	550,191

(Continued)

43

QISDA CORPORATION Notes to the Parent-Company-Only Financial Statements

(j) Investment property

Cost: Balance at January 1, 2021 Reclassification to right-of-use assets Balance at December 31, 2021 Balance at January 1, 2020 Reclassification from right-of-use assets Balance at December 31, 2020 Accumulated depreciation: Balance at January 1, 2021 Depreciation Reclassification to right-of-use assets Balance at December 31, 2021 Balance at January 1, 2020 Reclassification from right-of-use assets Depreciation Balance at December 31, 2020 Carrying amount: Balance at December 31, 2021 Balance at December 31, 2020 Fair value: Balance at December 31, 2021 Balance at December 31, 2020

Right-of-use assets— Buildings $ 403,147 (6,212) $ 396,935 $ - 403,147 $ 403,147 $ 140,408 41,247 (6,342) $ 175,313 $ - 99,161 41,247 $ 140,408 $ 221,622 $ 262,739 $ 224,507 $ 271,630

Investment property comprises a number of commercial properties that are sub-leased to third parties. The fair value of the investment property is determined by considering the discounted value of the cash flow that the Company expects to receive the sub-lease rent. The inputs, which are used in the fair value measurement, were classified to level 3.

As of December 31, 2021 and 2020, investment property was not pledged as collateral.

(Continued)

44

QISDA CORPORATION Notes to the Parent-Company-Only Financial Statements

(k) Intangible assets

(i) The movements of cost and accumulated amortization of intangible assets were as follows:

Computer software Cost: Balance at January 1, 2021 $ 51,027 Addition 159,408 Reclassification 77,916 Balance at December 31, 2021 $ 288,351 Balance at January 1, 2020 $ 29,998 Addition 21,029 Balance at December 31, 2020 $ 51,027 Accumulated amortization: Balance at January 1, 2021 $ 38,700 Amortization 32,587 Balance at December 31, 2021 $ 71,287 Balance at January 1, 2020 $ 19,147 Amortization 19,553 Balance at December 31, 2020 $ 38,700 Carrying amount: Balance at December 31, 2021 $ 217,064 Balance at December 31, 2020 $ 12,327	Others 10,239 9,105 - 19,344 10,239 - 10,239 10,239 251 10,490 10,239 - 10,239 8,854 -	Total
		61,266 168,513 77,916
		307,695
		40,237 21,029
		61,266
		48,939 32,838
		81,777
		29,386 19,553
		48,939
		225,918
		12,327

(ii) Amortization

The amortization of intangible assets is included in the following line items of the statement of comprehensive income:

Cost of sales Operating expenses Short-term borrowings Unsecured bank loans Unused credit facilities Interest rate	2021 2020 $ 11,471 379 $ 21,367 19,174 December 31, 2021 December 31, 2020 $ 3,417,200 6,227,600 $ 14,462,527 8,426,548 0.48%~0.8% 0.349%~0.877%	2021 2020 $ 11,471 379 $ 21,367 19,174 December 31, 2021 December 31, 2020 $ 3,417,200 6,227,600 $ 14,462,527 8,426,548 0.48%~0.8% 0.349%~0.877%	2020 379
			19,174
			December 31, 2020
			6,227,600
			8,426,548
		0.349%~0.877%

(l) Short-term borrowings

(Continued)

45

QISDA CORPORATION Notes to the Parent-Company-Only Financial Statements

(m) Long-term debt

Unsecured bank loans Secured bank loans Less: current portion of long-term debt Unused credit facilities Interest rate interval Maturity year	December 31, 2021 $ 19,552,602 1,500,000 21,052,602 (495,733) $ 20,556,869 $ 19,604,347 0.63%~1.797% 2022~ 2026	December 31, 2020 14,844,529 3,400,000 18,244,529 (425,226) 17,819,303 13,605,221 0.84%~1.797% 2021~ 2026

(i) Collateral for bank borrowings

Refer to note 8 for a description of the Company’s assets pledged as collateral to secure the bank loans.

• (ii) Low interest rate loan from government assistance

In early 2020, the Company has obtained the low interest rate loans from banks in accordance with “ Guidelines of Project Loans for Returning Overseas Taiwanese Businesses” . The preferential interest rate ranged from 0.63% to 0.812%. As of December 31, 2021, the related loan amount was $1,839,094. The estimated fair value of the loan was $1,811,095, using the prevailing market interest rate ranged from 1.05% to 1.30%. The difference of $28,809 was regarded as government grant and was recognized as deferred income. For the year ended December 31, 2021, the deferred income of $8,958 was transferred and recognized in other income.

• (iii) Compliance with loan agreement

According to the syndicated loan agreement signed between the Company and the banks, the Company has promised to maintain certain financial ratios based on the Company’ s semiannual reviewed consolidated financial statements and annual audited consolidated financial statements. If the Company violates any of the related financial ratios, the Company should mend it in a specific period, and the failure to maintain the required financial ratios during the amendment period would not be considered a default.

For the years ended December 31, 2021 and 2020, the Company’ s financial ratio was in compliance with the syndicated loan agreement.

(Continued)

46

QISDA CORPORATION Notes to the Parent-Company-Only Financial Statements

(n) Lease liabilities

The carrying amount of lease liabilities were as follows:

Current $ Non-current $	December 31, 2021 125,831 637,277	December 31, 2020 118,504 753,499

Please refer to note 6(y) for the maturity analysis.

The amounts recognized in profit or loss were as follows:

Expenses relating to short-term leases Income from sub-leasing right-of-use assets Interest on lease liabilities	2021 $ 5,924 $ 136,608 $ 14,672	2020
		5,441
		122,747
		16,771

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

Total cash outflow for leases	2021 $ 139,062	2020
		138,566

(i) Real estate leases

The Company leases buildings for its office and factory. These leases typically run for a period of 2 to 10 years. The Company has to negotiate the new leased term and recognize relevant right-of-use assets and lease liabilities when the lease expires. Some of the leases include an option to renew the lease for an additional period of the same duration after the end of the contract term.

(ii) Other leases

The Company leases some transportation equipment with contract terms within one year. These leases are short-term and the Company has elected to apply exemption and not to recognize right-of-use assets and lease liabilities.

(Continued)

47

QISDA CORPORATION Notes to the Parent-Company-Only Financial Statements

(o) Provisions

Balance at January 1, 2021 Provisions made Amount utilized Amount reversed Balance at December 31, 2021 Current Non-current Balance at January 1, 2020 Provisions made Amount utilized Amount reversed Balance at December 31, 2020 Current Non-current	Warranties $ 101,630 36,990 (24,330) (7,482) $ 106,808 $ 24,329 $ 82,479 $ 103,525 36,962 (26,085) (12,772) $ 101,630 $ 26,371 $ 75,259

Warranty provision is estimated based on historical warranty data associated with similar products and services. The Company expects to settle most of the warranty liability within three years from the date of the sale of the product.

(p) Operating lease —the Company acts as a lessor

The Company leased its land and buildings under operating leases. The future minimum lease payments under operating leases are as follows:

Not later than 1 year Later than 1 year but not later than 5 years Later than 5 years	December 31, 2021 $ 134,019 538,499 - $ 672,518	December 31, 2020
		103,457 358,567 69,615
		531,639

(Continued)

48

QISDA CORPORATION Notes to the Parent-Company-Only Financial Statements

In 2021 and 2020, the related rental income amounted to $136,608 and $122,747, respectively, and － was recognized under non-operating income and loss other income.

(q) Employee benefits

(i) Defined benefit plans

The reconciliation between the present value of defined benefit obligations and the net defined benefit liabilities for defined benefit plans was as follows:

Present value of defined benefit obligations Fair value of plan assets Net defined benefit liabilities	December 31, 2021 $ 875,154 (462,771) $ 412,383	December 31, 2020 842,820 (461,797) 381,023

The Company make defined benefit plan contributions to the pension fund account at Bank of Taiwan that provides pension benefits for employees upon retirement. The plans (covered by the Labor Standards Law) entitle a retired employee to receive a payment based on years of service and average salary for the six months prior to the employee’s retirement.

1) Composition of plan assets

The pension fund (the “Fund”) contributed by the Company is managed and administered by the Bureau of Labor Funds of the Ministry of Labor (the Bureau of Labor Funds). According to the Regulations for Revenues, Expenditures, Safeguard and Utilization of the Labor Retirement Fund, with regard to the utilization of the Fund, minimum earnings shall be no less than the earnings attainable from two-year time deposits with interest rates offered by local banks.

As of December 31, 2021 and 2020, the Company’s labor pension fund account balance at Bank of Taiwan amounted to $462,771 and $461,797, respectively. Refer to the website of the Bureau of Labor Funds for information on the labor pension fund assets including the asset portfolio and yield of the fund.

(Continued)

49

QISDA CORPORATION Notes to the Parent-Company-Only Financial Statements

• 2) Movements in present value of defined benefit obligations

2021 Defined benefit obligations at January 1 $ 842,820 Current service costs and interest expense 7,954 Remeasurement on the net defined benefit liabilities: －Actuarial losses (gains) arising from experience adjustments 12,292 －Actuarial losses (gains) arising from changes in financial assumptions 36,972 Benefits paid by the plan (21,338) Benefits paid by employer (3,546) Defined benefit obligations at December 31 $ 875,154 3) Movements of fair value of plan assets 2021 Fair value of plan assets at January 1 $ 461,797 Interest income 3,506 Remeasurement on the net defined benefit liabilities (assets) －Actuarial gains (losses) 4,725 Contributions by the employer 14,081 Benefits paid by the plan (21,338) Fair value of plan assets at December 31 $ 462,771 4) Changes in the effect of the asset ceiling In 2021 and 2020, there was no effect of the asset ceiling.	2020 747,266 10,034 14,929 82,960 (12,369) -
	842,820
	2020 441,843 5,053 13,029 14,241 (12,369)
	461,797

5) Expenses recognized in profit or loss

Current service costs Net interest expense on the net defined benefit liability Cost of sales Selling expenses Administrative expenses Research and development expenses	2021 $ 1,641 2,807 $ 4,448 $ 794 800 535 2,319 $ 4,448	2020 1,620 3,361
		4,981
		844 908 661 2,568
		4,981

(Continued)

50

QISDA CORPORATION Notes to the Parent-Company-Only Financial Statements

6) Actuarial assumptions

The principal assumptions of the actuarial valuation were as follows:

Discount rate Future salary increases rate	December 31, 2021 December 31, 2020 % 0.625 % 0.750 % 3.000 % 3.000

The Company expects to make contribution of $14,040 to the defined benefit plans in the year following December 31, 2021.

The weighted average duration of the defined benefit plans is 14.55 years.

7) Sensitivity analysis

The following table summarizes the impact of a change in the assumptions on the present value of the defined benefit obligation on December 31, 2021 and 2020.

December 31, 2021 Discount rate Future salary change December 31, 2020 Discount rate Future salary change	Increase (decrease) in present value of defined benefit obligations 0.25% Increase 0.25% Decrease (24,640) 25,562 24,492 (23,745) (25,258) 26,252 25,182 (24,397)

Each sensitivity analysis considers the change in one assumption at a time, leaving the other assumptions unchanged. This approach shows the isolated effect of changing one individual assumption but does not take into account that some assumptions are related. The method used to carry out the sensitivity analysis is the same as the calculation of the net defined benefit liabilities recognized in the balance sheets.

(ii) Defined contribution plans

The Company contributes monthly an amount equal to 6% of each employee’s monthly wages to the employee’ s individual pension fund account at the Bureau of Labor Insurance in accordance with the provisions of the Labor Pension Act. Under this defined contribution plan, the Company has no legal or constructive obligation to pay additional amounts after contributing a fixed amount to the Bureau of Labor Insurance.

For the years ended December 31, 2021 and 2020, the Company recognized pension expenses of $90,453 and $88,658, respectively, in relation to the defined contribution plans.

(Continued)

51

QISDA CORPORATION

Notes to the Parent-Company-Only Financial Statements

(r) Income taxes

(i) The components of income tax expense were as follows:

Current income tax expense Deferred income tax expense (benefit) Origination and reversal of temporary differences Changes in unrecognized deductible temporary differences and tax losses Deferred income tax expense (benefit) Income tax expense	2021 $ 164,739 246,601 (275,327) (28,726) $ 136,013	2020
		170,312 58,750 33,391 92,141 262,453

In 2021 and 2020, there was no income tax recognized directly in equity or other comprehensive income.

Reconciliation of income tax expense and income before income tax for 2021 and 2020 was as follows:

Income before income tax Income tax using the Company’s statutory tax rate Investment income recorded under equity method Gain on disposal of investments Surtax on undistributed earnings Tax-exempt dividend income Change in unrecognized temporary differences and tax losses Others Income tax expense	2021 $ 8,443,559 $ 1,688,712 (856,097) (395,948) 61,245 (40,093) (275,327) (46,479) $ 136,013	2020 5,250,932 1,050,186 (541,425) (92,140) 63,062 (350) (17,644) (199,236) 262,453

(ii) Deferred income tax assets and liabilities

• 1) Unrecognized deferred income tax assets and liabilities

Unrecognized deferred income tax assets:

Loss associated with investments in subsidiaries Deductible temporary differences Tax losses	December 31, 2021 $ 274,547 1,561,432 - $ 1,835,979	December 31, 2020
		261,408 1,562,001 -
		1,823,409

(Continued)

52

QISDA CORPORATION Notes to the Parent-Company-Only Financial Statements

Unrecognized deferred income tax liabilities:

Net profits associated with investments in subsidiaries	December 31, 2021 $ 2,246,022	December 31, 2020
		1,958,125

As the Company is able to control the timing of the reversal of the temporary differences associated with investments in subsidiaries as of December 31, 2021 and 2020, and management considers that it is probable that the temporary differences will not reverse in the foreseeable future, such temporary differences are not recognized as deferred income tax assets and liabilities. In addition, as the Company determined that it is not probable that future taxable profits will be available against which the temporary differences can be utilized, these items were not recognized as deferred income tax assets.

2) Recognized deferred income tax assets and liabilities

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

Deferred income tax assets:

Unrealized inter-company profits Deferred revenue Allowance for sales discounts Unrealized accrued expenses Others Unrealized inter-company profits Deferred revenue Operating loss carryforwards Allowance for sales discounts Unrealized accrued expenses Others	Balance at January 1, 2021 $ 39,098 36,484 249,487 14,989 96,818 $ 436,876 Balance at January 1, 2020 $ 59,286 49,842 78,418 223,063 14,989 91,966 $ 517,564	Recognized in profit or loss (39,098) (8,984) 110,528 - (4,738) 57,708 Recognized in profit or loss (20,188) (13,358) (78,418) 26,424 - 4,852 (80,688)	Balance at December 31, 2021
			- 27,500 360,015 14,989 92,080
			494,584
			Balance at December 31, 2020
			39,098 36,484 - 249,487 14,989 96,818
			436,876

(Continued)

53

QISDA CORPORATION Notes to the Parent-Company-Only Financial Statements

Deferred income tax liabilities:

Unrealized foreign exchange gain Unrealized inter-company loss Unrealized foreign exchange gain	Balance at January 1, 2021 $ (21,745) - $ (21,745) Balance at January 1, 2020 $ (10,292)	Recognized in profit or loss (7,392) (21,590) (28,982) Recognized in profit or loss (11,453)	Balance at December 31, 2021 (29,137) (21,590) (50,727) Balance at December 31, 2020 (21,745)

(iii) The Company’ s income tax returns for the years through 2018 have been examined and approved by the R.O.C. income tax authorities.

• (s) Capital and other equity

• (i) Common stock

As of December 31, 2021 and 2020, the Company’ s authorized shares of common stock consisted of 5,000,000,000 shares, of which 1,966,781,958 shares were issued and outstanding. The par value of the Company’s common stock is $10 (dollars) per share.

As of December 31, 2021 and 2020, the Company had issued 285 thousand units of global depository receipts (GDRs). The GDRs were listed on the Luxemburg Stock Exchange, and each GDR represents five common shares.

(ii) Capital surplus

Changes in equity of associates accounted for using the equity method Changes in ownership interests in subsidiaries	December 31, 2021 $ 54,052 1,790,258 $ 1,844,310	December 31, 2020
		97,612 1,781,889
		1,879,501

Pursuant to the Company Act, any realized capital surplus is initially used to cover an accumulated deficit, and the balance, if any, could be transferred to common stock as stock dividends based on the original shareholding ratio or distributed as cash dividends based on a resolution approved by the stockholders. Realized capital surplus includes the premium derived from the issuance of shares of stock in excess of par value and donations from stockholders received by the Company. In accordance with the Regulations Governing the Offering and Issuance of Securities by Securities Issuers, distribution of stock dividends from capital surplus in any one year shall not exceed 10% of paid-in capital.

(Continued)

54

QISDA CORPORATION Notes to the Parent-Company-Only Financial Statements

(iii) Unappropriated earnings and dividend policy

The Company’s articles of incorporation stipulate that at least 10% of annual net income after deducting an accumulated deficit, if any, must be retained as a legal reserve until such retention equals the amount of paid-in capital. In addition, a special reserve should be set aside or reversed in accordance with applicable laws and regulations. The remaining balance of the annual net income, together with unappropriated earnings from previous years, if any, can be distributed as dividends after the earnings distribution plan proposed by the Board of Directors and approved during the stockholders’ meeting. The abovementioned distribution of earnings by way of cash dividends should be approved by the Company’s Board of Directors and then reported to the Company’s shareholders in its meeting.

The Company may distribute its legal reserve or capital surplus to shareholders by issuing new shares or by distributing cash according to article 241 of the Company Act. The abovementioned distribution of earnings by way of cash dividends could be approved by the Company’s Board of Directors and then reported to the Company’s shareholders in its meeting.

As the Company is a technology- and capital-intensive enterprise in its growing phase, the Company has adopted a remaining earnings appropriation method as its dividend policy in order to meet long-term capital needs and cash requirements of stockholders, and thereby maintain continuous development and steady growth.

The Company’s requirements for future expansion and cash flow are the primary factors that the Company considers when appropriating its earnings. The distribution ratio for cash dividends shall not be less than 10% of the total distribution.

1) Legal reserve

If a company has no accumulated deficit, it may, pursuant to a resolution approved by the stockholders, distribute its legal reserve to shareholders by issuing new shares or by distributing cash for the portion in excess of 25% of the paid-in capital. According to the Company Act and the Company’ s articles of incorporation, the abovementioned distribution of earnings by way of cash dividends could be approved by the Company’s Board of Directors and then reported to the Company’s shareholders in its meeting.

2) Special reserve

In accordance with Rule issued by the Financial Supervisory Commission, a special reserve equal to the total amount of items that were accounted for as deductions from stockholders’ equity shall be set aside from current and prior-year earnings. This special reserve shall revert to the retained earnings and be made available for distribution when the items that are accounted for as deductions from stockholders’ equity are reversed in subsequent periods.

(Continued)

55

QISDA CORPORATION Notes to the Parent-Company-Only Financial Statements

3) Earnings distribution

The appropriation of 2020 earnings, via cash dividends, has been approved by the Company’ s Board of Directors on May 11, 2021. The other appropriations of 2020 earnings have been approved by the shareholders during their meeting on August 27, 2021. The cash dividends of appropriation of 2019 earnings was approved by the Company’s Board of Directors on May 7, 2020. Other appropriations of 2019 earnings was approved by the shareholders during their meeting on June 19, 2020. The resolved appropriations were as follows:

Legal reserve Special reserve Dividends per share: Cash dividends	2020 earnings 2019 earnings Dividends per share (in dollars) Amount Dividends per share (in dollars) Amount $ 455,392 357,505 $ 656,137 440,086 $ 1.50 2,950,173 0.75 1,475,086	2020 earnings 2019 earnings Dividends per share (in dollars) Amount Dividends per share (in dollars) Amount $ 455,392 357,505 $ 656,137 440,086 $ 1.50 2,950,173 0.75 1,475,086
		Amount
		357,505
		440,086
		1,475,086

On March 7, 2022, the cash dividends of appropriated from 2021 earnings approved by the Company’s Board of Directors were as follows.

Dividends per share: Cash dividends	2021 earnings	2021 earnings
	Dividends per share (in dollars) $ 2.50	Amount
		4,916,955

(iv) Other equity items (net after tax)

1) Foreign currency translation differences:

Balance at January 1 Foreign exchange differences arising from translation of foreign operations Balance at December 31	2021 $ (1,413,867) (309,370) $ (1,723,237)	2020 (657,512) (756,355) (1,413,867)

(Continued)

56

QISDA CORPORATION Notes to the Parent-Company-Only Financial Statements

2) Unrealized gains (losses) on financial assets at fair value through other comprehensive income:

Balance at January 1 $ Unrealized gains (losses) from investments in equity instruments measured at fair value through other comprehensive income Disposal of financial assets measured at fair value through other comprehensive income Share of other comprehensive income of subsidiaries and associates Balance at December 31 $ 3) Remeasurement of defined benefit plans: Balance at January 1 Remeasurement of the defined benefit plans Shares of remeasurement of the defined benefit plans of subsidiaries and associates accounted for using the equity method Balance at December 31		2021 571,329 (842,812) (312,904) 1,962,954 1,378,567 2021		2020 410,052 (11,000) (298,120) 470,397 571,329 2020 (361,048) (84,860) 23,801 (422,107)

(t) Earnings per share (“EPS”)

(i) Basic earnings per share

The basic earnings per share were calculated as the profit attributable to shareholders of the Company divided by the weighted-average number of ordinary shares outstanding as follows:

Profit attributable to shareholders of the Company Weighted-average number of ordinary shares outstanding (in thousands) Basic earnings per share (in New Taiwan dollars) (ii) Diluted earnings per share Profit attributable to shareholders of the Company Weighted-average number of ordinary shares outstanding (in thousands) Effect of dilutive potential common stock: Remuneration to employee Weighted-average number of ordinary shares outstanding (including effect of dilutive potential common stock) Diluted earnings per share (in New Taiwan dollars)	2021 $ 8,307,546 1,966,782 $ 4.22 2021 $ 8,307,546 1,966,782 25,541 1,992,323 $ 4.17	2020
		4,988,479
		1,966,782
		2.54
		2020
		4,988,479
		1,966,782 19,965
		1,986,747
		2.51

(Continued)

57

QISDA CORPORATION Notes to the Parent-Company-Only Financial Statements

(u) Revenue from contracts with customers

(i) Disaggregation of revenue

Primary geographical markets: Asia Europe America Others Major products/services lines: Electronic products Other design and development service	2021 $ 66,048,794 8,915,730 29,453,979 216,080 $ 104,634,583 $ 103,468,249 1,166,334 $ 104,634,583	2020
		56,950,153 8,945,516 25,741,813 773,809
		92,411,291
		91,583,420 827,871
		92,411,291

• (ii) Contract balances

Notes and accounts receivable (including related parties) Less: loss allowance Contract liabilities	December 31, 2021 $ 20,180,783 (42,731) $ 20,138,052 $ 556,308	December 31, 2020 23,118,636 (27,854) 23,090,782 305,119	January 1, 2020 25,737,819 (33,141) 25,704,678 252,903

For details on notes and accounts receivable and related loss allowance, please refer to note 6(d).

The amounts of revenue recognized for the years ended December 31, 2021 and 2020 that was included in the contract liability balances January 1, 2021 and 2020 were $305,119 and $252,903, respectively.

(v) Remuneration to employees and directors

The Company’ s Article of incorporation requires that earnings shall first to be offset against any deficit, then, a range from 5% to 20% will be distributed as remuneration to its employees and no more than 1% to its directors. Employees who are entitled to receive the abovementioned employee remuneration, in shares or cash, include the employees of the subsidiaries of the Company who meet certain specific requirement.

(Continued)

58

QISDA CORPORATION Notes to the Parent-Company-Only Financial Statements

For the years ended December 31, 2021 and 2020, the Company estimated its remuneration to employees amounting to $682,594 and $429,669, respectively, and the remuneration to directors amounting to $68,964 and $42,925, respectively. The abovementioned estimated amounts are calculated based on the net profits before tax of each period (excluding the remuneration to employees and directors), multiplied by a certain percentage of the remuneration to employees and directors. The estimations are recognized as cost of sales or operating expenses. If the actual amounts differ from the estimated amounts, the differences shall be accounted as changes in accounting estimates and recognized as profit or loss in next year.

The estimated remuneration to employees and directors for 2021 and 2020 were the same as the amount approved by the Company’ s Board of Directors on March 7, 2022 and May 11, 2021, respectively, and paid in cash. Related information is available on the Market Observation Post System website of the Taiwan Stock Exchange.

• (w) Non-operating income and loss

• (i) Interest income

Interest income from bank deposits (ii) Other income Rental income Dividend income Government grants income (iii) Other gains and losses, net Loss on disposal of property, plant and equipment Gain on disposal of investments (note 6(g)) Foreign currency exchange gains Gains (losses) on financial assets and liabilities at fair value through profit or loss Others (iv) Finance costs Interest expense from bank loans Interest expense on lease liabilities	2021 $ 2,618 2021 $ 136,608 200,467 14,900 $ 351,975 2021 $ (2,786) 1,979,741 22,002 85,280 18,878 $ 2,103,115 2021 $ (356,522) (14,672) $ (371,194)	2020 11,344 2020 122,747 1,750 45,377 169,874 2020 - 460,696 280,921 (59,948) 23,953 705,622 2020 (345,320) (16,771) (362,091)

(Continued)

59

QISDA CORPORATION Notes to the Parent-Company-Only Financial Statements

(x) Financial instruments

• (i) Categories of financial instruments

• 1) Financial assets

Financial assets at fair value through profit or loss Financial assets at fair value through other comprehensive income Financial assets measured at amortized cost: Cash and cash equivalents Notes and accounts receivable and other receivables (including related parties) Other financial assets—non-current Subtotal Total 2) Financial liabilities Financial liabilities at fair value through profit or loss Financial liabilities measured at amortized cost: Short-term borrowings Notes and accounts payable and other payables (including related parties) Lease liabilities (including current portion and related parties) Long-term debt (including current portion) Other non-current liabilities－guarantee deposits Subtotal Total	December 31, 2021 $ 7,618 15,253,712 794,594 20,231,933 276,900 21,303,427 $ 36,564,757 December 31, 2021 $ 20,375 3,417,200 27,246,295 763,108 21,052,602 30,780 52,509,985 $ 52,530,360	December 31, 2020
		56,157
		37,438
		865,308 23,093,314 122,110
		24,080,732
		24,174,327
		December 31, 2020
		8,744
		6,227,600 26,579,766 871,553 18,244,529 9,225
		51,932,673
		51,941,417

(Continued)

60

QISDA CORPORATION Notes to the Parent-Company-Only Financial Statements

• (ii) Fair value information

• 1) Financial instruments not measured at fair value

The Company considers that the carrying amounts of financial assets and financial liabilities measured at amortized cost approximate their fair values.

• 2) Financial instruments measured at fair value

The financial department of the Company evaluates the fair value of financial instrument and utilizes the assistance from external experts or financial institutions for the evaluation of fair value when necessary, and regularly revises the inputs and makes essential adjustments on the fair value to confirm the evaluation results is reasonable.

The financial instruments at fair value through profit and loss and financial assets at fair value through other comprehensive income are measured at fair value on a recurring basis. The table below analyzes financial instruments that are measured at fair value subsequent to initial recognition, grouped into Levels 1 to 3 based on the degree to which the fair value is observable. The different levels have been defined as follows:

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

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

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

Financial assets at fair value through profit and loss: Foreign currency forward contracts Foreign exchange swaps Subtotal Financial assets measured at fair value through other comprehensive income: Domestic listed stocks Total Financial liabilities at fair value through profit and loss: Foreign currency forward contracts Foreign exchange swaps Total		December 31, 2021	December 31, 2021
		Fair Value
	Level 1 $ - - - 15,253,712 $ 15,253,712 $ - - $ -	Level 2 5,647 1,971 7,618 - 7,618 646 19,729 20,375	Level 3 - - - - - - - -	Total
				5,647 1,971
				7,618
				15,253,712
				15,261,330
				646 19,729
				20,375

(Continued)

61

QISDA CORPORATION Notes to the Parent-Company-Only Financial Statements

Financial assets at fair value through profit and loss: Foreign currency forward contracts Foreign exchange swaps Subtotal Financial assets measured at fair value through other comprehensive income: Domestic listed stocks Total Financial liabilities at fair value through profit and loss: Foreign exchange swaps Total		December 31, 2020	December 31, 2020
		Fair Value
	Level 1 $ - - - 37,438 $ 37,438 - $ -	Level 2 55,999 158 56,157 - 56,157 8,744 8,744	Level 3 - - - - - - -	Total
				55,999 158
				56,157
				37,438
				93,595
				8,744
				8,744

• 3) Valuation techniques and assumptions used in fair value measurement

• a) Non-derivative financial instruments

The fair value of financial instruments traded in active liquid markets is determined with reference to quoted market prices.

For listed stock with standard terms and conditions and traded in active markets. The fair value is based on quoted market prices.

• b) Derivative financial instruments

The fair value of derivative financial instruments is determined using a valuation technique generally accepted by market participants. The fair value of foreign currency forward contracts and foreign exchange swaps is usually determined by the forward exchange rate.

• 4) Transfers between levels of the fair value hierarchy

There were no transfers among fair value hierarchies for the years ended December 31, 2021 and 2020.

(y) Financial risk management

The Company is exposed to credit risk, liquidity risk, and market risk (including currency risk, interest rate risk, and other market price risk). The Company has disclosed the information on exposure to the aforementioned risks and the Company’s policies and procedures to measure and manage those risks as well as the quantitative information below.

(Continued)

62

QISDA CORPORATION Notes to the Parent-Company-Only Financial Statements

The Company’s Board of Directors is responsible for developing and monitoring the Company’s risk management policies. The Company’ s risk management policies are established to identify and analyze the risks faced by the Company, to set appropriate risk limits and controls, and to monitor adherence to the controls. Risk management policies and systems are reviewed regularly to reflect changes in market conditions and the Company’s operations.

The Company’s management monitors and reviews financial activities in accordance with procedures required by relevant regulations and internal controls. Internal auditors undertake both regular and ad hoc reviews of risk management controls and procedures, the results of which are reported to the Company’s Board of Directors.

(i) Credit risk

Credit risk is the risk of financial loss to the Company if a customer or counterparty of a financial instrument fails to meet its contractual obligations, and arises principally from the Company’s cash and cash equivalents, derivative instruments, receivables from customers, and other receivables. The maximum exposure to credit risk is equal to the carrying amount of the Company’s financial assets.

The Company maintains cash and enters into derivative transactions with various reputable financial institutions; therefore, the exposure related to potential default by those counterparties is not considered significant.

The majority of the Company’s customers are well-known international companies with high financial transparency in the electronics industry. As of December 31, 2021 and 2020, 61% and 77%, respectively, of the Company’s notes and accounts receivable were concentrated in the top five customers. In order to reduce credit risk of accounts receivable, the Company has established a credit policy under which each customer is analyzed individually for creditworthiness for the purpose of setting the credit limit. Additionally, the Company continuously evaluates the credit quality of customers and utilizes insurance to minimize the risk.

The Company’s policy provides financial guarantees only to wholly owned subsidiaries. As of December 31, 2021 and 2020, except for its subsidiaries, the Company did not provide any other guarantees and endorsements.

(ii) Liquidity risk

Liquidity risk is the risk that the Company will encounter difficulty in settling its financial liabilities by delivering cash or other financial assets. The Company manages liquidity risk by monitoring regularly the current and mid- to long-term cash demand, maintaining adequate cash and banking facilities, and ensuring compliance with the terms of the loan agreements. As of December 31, 2021 and 2020, the Company had unused credit facilities of $34,066,874 and $22,031,769, respectively.

The table below summarizes the maturity profile of the Company’s financial liabilities based on contractual undiscounted payments, including principal and interest.

(Continued)

63

QISDA CORPORATION Notes to the Parent-Company-Only Financial Statements

December 31, 2021 Non-derivative financial liabilities: Short-term borrowings Lease liabilities Long-term debt Notes and accounts payable Other payables Guarantee deposits Derivative financial instruments: Foreign currency forward contracts: Outflow Inflow Foreign exchange swaps: Outflow Inflow December 31, 2020 Non-derivative financial liabilities: Short-term borrowings Lease obligations payable Long-term debt Notes and accounts payable Other payables Guarantee deposits Derivative financial instruments: Foreign currency forward contracts: Outflow Inflow Foreign exchange swaps: Outflow Inflow	Contractual cash flows $ 3,419,074 802,769 21,238,642 25,098,118 2,148,177 30,780 $ 52,737,560 $ 1,427,213 (1,432,214) 7,435,998 (7,418,240) $ 12,757 $ 6,244,622 925,770 18,864,485 24,838,546 1,741,220 9,225 $ 52,623,868 $ 2,185,390 (2,241,389) 1,360,800 (1,352,214) $ (47,413)	Within 6 months 3,419,074 72,477 204,841 25,098,118 2,148,177 - 30,942,687 1,427,213 (1,432,214) 7,435,998 (7,418,240) 12,757 5,742,953 72,391 151,366 24,838,546 1,741,220 - 32,546,476 2,185,390 (2,241,389) 1,360,800 (1,352,214) (47,413)	6-12 months - 65,972 361,342 - - 24,099 451,413 - - - - - 501,669 60,326 371,366 - - - 933,361 - - - - -	1-2 years - 147,330 1,905,037 - - 125 2,052,492 - - - - - - 133,380 4,152,864 - - - 4,286,244 - - - - -	2-5 years - 432,093 18,767,422 - - 6,556 19,206,071 - - - - - - 429,239 14,107,492 - - 9,225 14,545,956 - - - - -	More than 5 years - 84,897 - - - -
						84,897
						- - - -
						-
						- 230,434 81,397 - - -
						311,831
						- - - -
						-

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

(iii) Market risk

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

The Company utilizes derivative financial instruments to manage market risk and the volatility of profit or loss. All such transactions are carried out within the guidelines set by the Company’s Board of Directors.

(Continued)

64

QISDA CORPORATION Notes to the Parent-Company-Only Financial Statements

1) Foreign currency risk

The Company utilizes foreign currency forward contracts and foreign exchange swaps to hedge its foreign currency exposure with respect to its sales and purchases. These financial instruments help to reduce, but do not eliminate, the impact of foreign currency exchange rate movements.

The maturity dates of derivative financial instruments the Company entered into were less than six months and did not conform to the criteria for hedge accounting.

The Company’s exposure to foreign currency risk arises from cash and cash equivalents, notes and accounts receivable (including related-party transactions), notes and accounts payable (including related-party transactions), other receivables (including related-party transactions), other payables (including related-party transactions), and loans and borrowings that are denominated in a currency other than the functional currency of Company. At the reporting date, the carrying amounts of the Company’ s significant monetary assets and liabilities denominated in a currency other than the functional currency of the Company and the sensitivity analysis were as follows:

Financial assets USD Financial liabilities		December 31, 2021	December 31, 2021
	Foreign currency (in thousands) $ 745,301 982,307	Exchange rate TWD (in thousands) 27.680 20,629,932 27.680 27,190,258 December 31, 2020		Change in magnitude Effect on profit or loss (in thousands) % 1 206,299 % 1 271,903
USD Financial assets USD Financial liabilities
	Foreign currency (in thousands) $ 839,687 887,324	Exchange rate 28.350 28.350	TWD (in thousands) 23,805,126 25,155,635	Change in magnitude Effect on profit or loss (in thousands) % 1 238,051 % 1 251,556
USD

As the Company deal in diverse foreign currencies, gains and losses on foreign exchange were summarized as a single amount. Please refers to note 6(w) for the aggregate of realized and unrealized foreign exchange gains for the years ended December 31, 2021 and 2020.

(Continued)

65

QISDA CORPORATION Notes to the Parent-Company-Only Financial Statements

2) Interest rate risk

The Company’s short-term borrowings and long-term debt carried floating interest rates. To manage the interest rate risk, the Company periodically assesses the interest rates of bank loans and maintains good relationships with financial institutions to obtain lower financing costs. The Company also strengthens the management of working capital to reduce the dependence on bank loans as well as the risk arising from fluctuation of interest rates.

The following sensitivity analysis is based on the risk exposure to floating-interest-rate liabilities on the reporting date. The sensitivity analysis assumes the liabilities recorded at the reporting date had been outstanding for the entire period.

If interest rates had been 100 basis points (1%) higher/lower, with all other variables held constant, pre-tax income for the years ended December 31, 2021 and 2020 would have been $244,698 and $244,721, respectively, lower/higher, which mainly resulted from the borrowings with floating interest rates.

3) Other market price risk

The Company is exposed to the risk of price fluctuation in the securities market due to the investment in domestic listed stock. The Company supervises the equity price risk actively and manages the risk based on fair value.

Assuming a hypothetical increase or decrease of 5% in equity prices of the equity investments at each reporting date, the other comprehensive income for the years ended December 31, 2021 and 2020, would have increased or decreased by $762,686 and $1,872, respectively.

(z) Capital management

In consideration of the industry dynamics and future developments, as well as external environment factors, the Company maintains an optimal capital structure to enhance long-term shareholder value by managing its capital in a manner to ensure that it has sufficient and necessary financial resources to fund its working capital needs, capital expenditures, repayment of debts, dividend payments, and other business requirements for continuing operations and to reward shareholders and take into consideration the interests of other stakeholders. The Company monitors its capital through reviewing the liability-to-equity ratio periodically.

The Company’s liability-to-equity ratio at the end of each reporting period was as follows:

Total liabilities Total equity Liability-to-equity ratio	December 31, 2021 $ 55,753,461 $ 41,456,423 % 134.49	December 31, 2020
		54,321,975
		36,025,501
		% 150.79

(Continued)

66

QISDA CORPORATION Notes to the Parent-Company-Only Financial Statements

• (aa) Investing and financing activities not affecting current cash flow

• (i) Please refer to note 6(i) for a description of acquisition of right-of-use assets under lease in 2021.

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

					Non-cash changes	Non-cash changes
	January 1,						December 31,
	2021		Cash	flows	Additions	Others	2021
Short-term borrowing	$ 6,227,600		(2,810,400)		-	-	3,417,200
Long-term debts	18,244,529		2,827,924		-	(19,851)	21,052,602
Lease liabilities		871,553	(118,466)		10,021 -		763,108
Total liabilities from financing activities $ 25,343,682			(100,942)		10,021 (19,851)		25,232,910
					Non-cash
					changes
		January	1,			December 31,
		2020		Cash	flows	Others	2020
Short-term borrowing	$	7,190,000		(962,400)		-	6,227,600
Long-term debts		11,447,582		6,817,274		(20,327)	18,244,529
Lease liabilities		987,907		(116,354)		-	871,553
Total liabilities from financing activities $		19,625,489		5,738,520		(20,327)	25,343,682

7. Related-party transactions:

• (a) Related party name and categories

The followings are subsidiaries and other related parties that have had transactions with the Company during the reporting periods.

Name of related party	Relationship with the Company
Qisda Sdn. Bhd. (“QLPG”)	The Company’s subsidiary
Qisda America Corp. (“QALA”)	The Company’s subsidiary
Qisda Japan Co., Ltd. (“QJTO”)	The Company’s subsidiary
BenQ Corp. (“BenQ”)	The Company’s subsidiary
BenQ Material Corp. (“BMC”)	The Company’s subsidiary
BenQ Dialysis Technology Corp. (“BDT”)	The Company’s subsidiary
Qisda Optronics Corp. (“QTOS”)	The Company’s subsidiary
Qisda (L) Corp. (“QLLB”)	The Company’s subsidiary
Darly Venture (L) Ltd. (“Darly”)	The Company’s subsidiary
Darly Venture Inc. (“APV”)	The Company’s subsidiary
BenQ BM Holding Cayman Corp. (“BBHC”)	The Company’s subsidiary
BenQ Biotech (Shanghai) Co., Ltd (“BBC”)	The Company’s subsidiary
Guangxi Youshan Medical Technology Co., Ltd. (“Youshan”)	The Company’s subsidiary
Wangcheng Medical Technology(Chengdu) Co., Ltd. (“Wangcheng”)	The Company’s subsidiary
Shanghai Filter Technology Co., Ltd (“ Filter”)	The Company’s subsidiary
	(Continued)

67

QISDA CORPORATION Notes to the Parent-Company-Only Financial Statements

Name of related party Relationship with the Company Shanghai Zhenglang Medical Equipment Co., Ltd. (“Zhenglang”) The Company’s subsidiary Qisda Vietnam Co., Ltd. (“QVH”) The Company’s subsidiary Qisda (Suzhou) Co., Ltd. (“QCSZ”) The Company’s subsidiary Qisda (Hong Kong) Limited (“QCHK”) The Company’s subsidiary BenQ Medical (Shanghai) Co., LTD (“BMSH”) The Company’s subsidiary Qisda (Shanghai) Co., Ltd. (“QCSH”) The Company’s subsidiary Qisda Electronics (Suzhou) Co., Ltd. (“QCES”) The Company’s subsidiary Qisda Optronics (Suzhou) Co., Ltd. (“QCOS”) The Company’s subsidiary Qisda Precision Industry (Suzhou) Co., Ltd. (“QCPS”) The Company’s subsidiary BenQ ESCO Corp. (“BES”) The Company’s subsidiary BenQ (Hong Kong) Limited (“BQHK”) The Company’s subsidiary BenQ Europe B.V. (“BQE”) The Company’s subsidiary BenQ Asia Pacific Corp. (“BQP”) The Company’s subsidiary BenQ America Corporation (“BQA”) The Company’s subsidiary BenQ Latin America Corp. (“BQL”) The Company’s subsidiary Mainteq Europe B.V. (“MQE”) The Company’s subsidiary Darly2 Venture Co., Ltd. (“Darly 2”) The Company’s subsidiary BenQ Intelligent Technology (Hong Kong) Co., Ltd. (“BQHK_HLD”) The Company’s subsidiary BenQ INFTY Lab Ltd. (“INF”) The Company’s subsidiary BenQ Guru Holding Limited (“GSH”) The Company’s subsidiary BenQ Medical Technology Corp. (“BMTC”) The Company’s subsidiary PT BenQ Teknologi Indonesia (“BQid”) The Company’s subsidiary BenQ Korea Co., Ltd. (“BQkr”) The Company’s subsidiary BenQ Japan Co., Ltd. (“BQjp”) The Company’s subsidiary BenQ Australia Pty Ltd. (“BQau”) The Company’s subsidiary BenQ (M.E.) FZE (“BQme”) The Company’s subsidiary BenQ India Private Ltd. (“BQin”) The Company’s subsidiary BenQ Singapore Pte Ltd. (“BQsg”) The Company’s subsidiary BenQ Service & Marketing (M) Sdn. Bhd (“BQmy”) The Company’s subsidiary BenQ (Thailand) Co., Ltd. (“BQth”) The Company’s subsidiary BenQ Vietnam Co., Ltd. (BQvn) The Company’s subsidiary BenQ Co., Ltd. (“BQC”) The Company’s subsidiary BenQ Technology (Shanghai) Co., Ltd. (“BQls”) The Company’s subsidiary ShengCheng Trading (Shanghai) Co., Ltd (“BQsha_EC2”) The Company’s subsidiary BenQ Intelligent Technology (Shanghai) Co., Ltd (“BQC_RO”) The Company’s subsidiary Guru Systems (Suzhou) Co., Ltd. (“GSS”) The Company’s subsidiary BenQ GURU Corp. (“GST”) The Company’s subsidiary BenQ Canada Corp. “(BQca”) The Company’s subsidiary BenQ Mexico S. de R.L. de C.V. (“BQmx”) The Company’s subsidiary Joytech LLC. (“Joytech”) The Company’s subsidiary Vividtech LLC. (“Vividtech”) The Company’s subsidiary MaxGen Comercio Industrial Imp E Exp Ltda. (“MaxGen”) The Company’s subsidiary

(Continued)

68

QISDA CORPORATION Notes to the Parent-Company-Only Financial Statements

Name of related party

BenQ Service de Mexico S. de R.L. de C.V. (“BQsm”) BenQ UK Limited (“BQuk”) BenQ Deutschland GmbH (“BQde”) BenQ Iberica S.L. Unipersonal (“BQib”) BenQ Austria GmbH “(BQat”) BenQ Benelux B.V. (“BQnl”) BenQ Italy S.R.L. (“BQit”) BenQ France SAS (“BQfr”) BenQ Nordic A.B. (“BQse”) BenQ LLC. (“BQru”) BenQ BM Holding Corp. (“BBM”) Darly Consulting Corporation (“Darly C”) Highview Investments Limited (“Highview”) Asiaconnect International Company (“Asiaconnect”) LILY Medical Corporation (“LILY”) BenQ AB Dentcare Corporation (“BABD”) BenQ HealthCare Corporation (“BHS”) (Formerly BenQ Hearing Solution Corporation) EASTECH CO., LTD. (“EASTECH“) BenQ Medical Technology (Shanghai) Ltd. (“BMTS”) LILY Medical (Suzhou) Co., Ltd. (“ALS”) BenQ Materials (L) Co. (“BMLB”) Sigma Medical Supplies Corp (“SGM”) Suzhou Sigma Medical Supplies Co., Ltd. (“SGS”) Genejet Biotech Co., Ltd. (“GJB”) Cenefom Corp. BenQ Material (Suzhou) Co., Ltd. (“BMS”) Daxon Biomedical (Suzhou) Co., Ltd. (“DTB”) BenQ Materials Medical Supplies (Suzhou) Co., Ltd (“BMM”) BenQ Materials (Wuhu) Co., Ltd. (“BMW”) Nanjing BenQ Hospital Co., Ltd. (“NMH”) Suzhou BenQ Hospital Co., Ltd. (“SMH”) BenQ Hospital Management Consulting (Nanjing) Co., Ltd. (“NMHC”) BenQ Healthcare Consulting Corporation (“BHCC”) Suzhou BenQ Investment Co., Ltd. (“BIC”) Partner Tech Corp. (“PTT”) Partner-Tech Europe GmbH (“PTE”) Partner Tech Middle East FZCO (“PTME”) Partner Tech North Africa (“PTNA”) Partner Tech UK Corp., Ltd. (“PTUK”) P&J Investment Holding Co., Ltd. (B.V.I.) (“P&J”)

Relationship with the Company The Company’s subsidiary The Company’s subsidiary The Company’s subsidiary The Company’s subsidiary The Company’s subsidiary The Company’s subsidiary The Company’s subsidiary The Company’s subsidiary The Company’s subsidiary The Company’s subsidiary The Company’s subsidiary The Company’s subsidiary The Company’s subsidiary The Company’s subsidiary The Company’s subsidiary The Company’s subsidiary The Company’s subsidiary

The Company’s subsidiary The Company’s subsidiary The Company’s subsidiary The Company’s subsidiary The Company’s subsidiary The Company’s subsidiary The Company’s subsidiary The Company’s subsidiary (note 1) The Company’s subsidiary The Company’s subsidiary The Company’s subsidiary The Company’s subsidiary The Company’s subsidiary The Company’s subsidiary The Company’s subsidiary

The Company’s subsidiary The Company’s subsidiary The Company’s subsidiary The Company’s subsidiary The Company’s subsidiary The Company’s subsidiary The Company’s subsidiary The Company’s subsidiary

(Continued)

69

QISDA CORPORATION Notes to the Parent-Company-Only Financial Statements

Name of related party

P&S Investment Holding Co., Ltd. (B.V.I.) (“P&S”) Partner Tech (Shanghai) Co., Ltd. (“PTCM”) Partner Tech USA Inc. (“PTU”) Webest Solution Corporation (“WEBEST”) Mace Digital Corporation(“PTMG”) Sloga Team D.o.o. (“Sloga”) Retail Solution & System S.L. (“RSS”) E-POS International LLC (“E-POS”) Epoint Systems Pte. Ltd. (“PTSE”) La Fresh information Co., Ltd (“PTTN”) Corex (Pty) Ltd. (“Corex”) Ace Pillar Co., Ltd. (“ACE”) Cyber South Management Ltd. Tianjin Ace Pillar Co., Ltd. Hong Kong Ace Pillar Enterprise Company Limited Proton Inc. Ace Tek (HK) Holding Co., Ltd. Suzhou Super Pillar Automation Equipment Co., Ltd. Grace Transmission (Tianjin) Co., Ltd. Xuchang Ace AI Equipment Co., Ltd. Advancedtek Ace (TJ) Inc. DFI Inc.(“DFI”) DFI AMERICA, LLC DFI Co., Ltd. Yan Tong Technology Ltd. (“Yan Tong”) Diamond Flower Information (NL) B.V. Brainstorm Corporation Yan-Tong Infotech (Dongguan) Co., Ltd. Yan Ying Hao Trading (ShenZhen) Co., Ltd Aewin Technologies Co., Ltd (“AEWIN”) WISE WAY AEWIN TECH INC. BRIGHT PROFIT Aewin Beijing Technologies Co., Ltd Aewin (Shenzhen) Technologies Co., Ltd K2 International Medical Inc. (“K2”) K2 Medical (Thailand) Co., Ltd. K2 (Shanghai) International Medical Inc. (“K2SH”) PT. Frismed Hoslab Indonesia (“K2ID”) Data Image Corporation (“DIC”) Data Image (Mauritius) Corporation Data Image (Suzhou) Corporation

Relationship with the Company

The Company’s subsidiary The Company’s subsidiary The Company’s subsidiary The Company’s subsidiary The Company’s subsidiary The Company’s subsidiary The Company’s subsidiary The Company’s subsidiary The Company’s subsidiary The Company’s subsidiary The Company’s subsidiary The Company’s subsidiary The Company’s subsidiary The Company’s subsidiary The Company’s subsidiary The Company’s subsidiary The Company’s subsidiary The Company’s subsidiary The Company’s subsidiary The Company’s subsidiary The Company’s subsidiary The Company’s subsidiary The Company’s subsidiary The Company’s subsidiary The Company’s subsidiary The Company’s subsidiary The Company’s subsidiary The Company’s subsidiary The Company’s subsidiary The Company’s subsidiary The Company’s subsidiary The Company’s subsidiary The Company’s subsidiary The Company’s subsidiary The Company’s subsidiary The Company’s subsidiary The Company’s subsidiary The Company’s subsidiary The Company’s subsidiary The Company’s subsidiary The Company’s subsidiary The Company’s subsidiary

(Continued)

70

QISDA CORPORATION Notes to the Parent-Company-Only Financial Statements

Name of related party Relationship with the Company DIVA Laboratories. Ltd. (“DIVA”) The Company’s subsidiary DIVA Laboratories GmbH The Company’s subsidiary DIVA Laboratories U.S.,LLC The Company’s subsidiary Panoramic Imaging Solutions Inc. The Company’s subsidiary Diva Capital Inc. The Company’s subsidiary Diva Holding Inc. The Company’s subsidiary Suzhou Diva Lab. Inc. The Company’s subsidiary Expert Alliance Systems & Consultancy (HK) Co., Ltd. (“EASC”) The Company’s subsidiary Expert Alliance Smart Technology Co., Ltd. The Company’s subsidiary Topview Optronics Corporation (“Topview”) The Company’s subsidiary Messoa Technologies Inc. The Company’s subsidiary Messoa Technologies Inc. (USA) The Company’s subsidiary Sysage Technology Co., Ltd. (“Sysage”) The Company’s subsidiary Global Intelligence Network Co., Ltd. (“Ginnet”) The Company’s subsidiary Epic Cloud Information Integration Corporation. (“Epic Cloud”) The Company’s subsidiary AdvancedTEK International Corp. (“AdvancedTEK”) The Company’s subsidiary (note 1) Statinc Company (“Statinc”) The Company’s subsidiary APEO Human Capital Services Corp. The Company’s subsidiary DKABio Co., Ltd. (“Dataa”) The Company’s subsidiary Golden Spirit Co., Ltd. (“GSC”) The Company’s subsidiary Bigmin Bio-Tech Company Ltd. The Company’s subsidiary E-Strong Medical Technology Co., Ltd. (“ESM”) The Company’s subsidiary Simula Technology Inc. (“Simula”) The Company’s subsidiary Aspire Asia Inc. The Company’s subsidiary Simula Technology Corp. The Company’s subsidiary Action Star Technology Co., Ltd. (“AST”) The Company’s subsidiary Simula Company Limited The Company’s subsidiary Aspire Electronics Corp. The Company’s subsidiary Opti Cloud Technologies, Inc. The Company’s subsidiary Simula Technology (ShenZhen) Co., Ltd. The Company’s subsidiary Alpha Networks Inc.(“Alpha”) The Company’s subsidiary Alpha Holdings Inc. (“Alpha Holdings”) The Company’s subsidiary Alpha Solutions Co., Ltd. (“Alpha Solutions”) The Company’s subsidiary Alpha Networks Inc. (“Alpha USA”) The Company’s subsidiary Alpha Technical Services Inc. (“ATS”) The Company’s subsidiary Alpha Networks (Hong Kong) Limited (“Alpha HK”) The Company’s subsidiary Enrich Investment Corporation(“Enrich Investment”) The Company’s subsidiary Hitron Technologies Inc. (“Hitron Technologies”) The Company’s subsidiary D-Link Asia Investment Pte, Ltd. (“D-Link Asia”) The Company’s subsidiary Alpha Networks (Dongguan) Co., Ltd. (“Alpha Dongguan“) The Company’s subsidiary Alpha Networks (Chengdu) Co., Ltd. (“Alpha Chengdu”) The Company’s subsidiary Mirac Networks (Dongguan) Co., Ltd. The Company’s subsidiary

(Continued)

71

QISDA CORPORATION Notes to the Parent-Company-Only Financial Statements

Relationship with the Company

Name of related party Alpha Networks (Changshu) Co., Ltd. (“Alpha Changshu”) Hitron Technologies (Samoa) Inc. (“Hitron Samoa”) Interactive Digital Technologies Inc.(“Interactive Digital”) Hitron Technologies Europe Holding B.V. (“Hitron Europe”) Hitron Technologies (Americas)Inc. (“Hitron Americas”) Innoauto Technologies Inc. (“Innoauto Technologies”) Hitron Technologies (Vietnam) Inc. (“Hitron Vietnam”) Hitron Technologies (SIP) Inc. (“Hitron Suzhou”) Jietech Trading (Suzhou) Inc. (“Jietech Suzhou”) Hwa Chi Technologies(Shanghai) Inc. (“Hwa Chi Technologies”) Transnet Corporation (“Transnet”) Aespula Technologies Inc. (“Aespula”) AU Optronics Corp. (“AU”)

Alpha Networks (Changshu) Co., Ltd. (“Alpha Changshu”) The Company’s subsidiary Hitron Technologies (Samoa) Inc. (“Hitron Samoa”) The Company’s subsidiary Interactive Digital Technologies Inc.(“Interactive Digital”) The Company’s subsidiary Hitron Technologies Europe Holding B.V. (“Hitron Europe”) The Company’s subsidiary Hitron Technologies (Americas)Inc. (“Hitron Americas”) The Company’s subsidiary Innoauto Technologies Inc. (“Innoauto Technologies”) The Company’s subsidiary Hitron Technologies (Vietnam) Inc. (“Hitron Vietnam”) The Company’s subsidiary Hitron Technologies (SIP) Inc. (“Hitron Suzhou”) The Company’s subsidiary Jietech Trading (Suzhou) Inc. (“Jietech Suzhou”) The Company’s subsidiary Hwa Chi Technologies(Shanghai) Inc. (“Hwa Chi Technologies”) The Company’s subsidiary Transnet Corporation (“Transnet”) The Company’s subsidiary Aespula Technologies Inc. (“Aespula”) The Company’s subsidiary AU Optronics Corp. (“AU”) Prior to May 12, 2021, AU was an associate of the Company. However, starting May 12, 2021, AU was no longer an associate of the Company. Since January 2021, AU accounted the investments in the Company using the equity method. Darfon Electronics Corp. (“DFN”) The Company’s associate Visco Vision Inc. (“Visco Vision”) The Company’s associate Q.S.Control Corp.(“Q.S.C”) The Company’s associate Nanjing Silvertown Health & Development Co., Ltd. (“NSHD”) The Company’s associate Darwin Precisions Corporation (“Darwin”) AU’s subsidiary AU Optronics (Kunshan) Co., Ltd. (“AUKS”) AU’s subsidiary a.u. Vista Inc. (“AUVI”) AU’s subsidiary AU Optronics (Suzhou) Corp. (“AUSZ”) AU’s subsidiary AU Optronics (Slovakia) s.r.o. (“AUSK”) AU’s subsidiary BenQ Foundation Substantive related party

(Note 1) Starting from 2021, the Company’s former associate has become a subsidiary.

(Continued)

72

QISDA CORPORATION Notes to the Parent-Company-Only Financial Statements

• (b) Significant related-party transactions

• (i) Revenue

Subsidiaries: QALA BenQ Other subsidiaries Associates The entity who has significant influence over the Company: AU AUSZ Others	2021 $ 24,548,118 6,258,208 3,984,675 34,791,001 2,305,741 4,372,337 1,247,244 221,539 5,841,120 $ 42,937,862	2020
		21,292,914 5,073,679 3,421,153
		29,787,746
		7,470,527
		- - -
		-
		37,258,273

There were no significant differences between the sales prices for related parties and those for third-party customers. The payment terms of 30~120 days showed no significant difference between related parties and third-party customers.

The Company sold raw materials and work in process to its subsidiaries for reprocessing, and the related finished goods were resold back to the Company. For this reason, the Company offset the recognized revenues and costs from these transactions, which amounted to $20,616,259 and $24,215,200, for the years ended December 31, 2021 and 2020, respectively.

(ii) Purchases

Subsidiaries: QCSZ QCOS Other subsidiaries Associates	2021 $ 78,724,562 14,536,303 1,635,823 94,896,688 7,126 $ 94,903,814	2020
		67,384,007 11,852,965 122,425
		79,359,397 20,456
		79,379,853

There were no significant differences between the purchase prices for related parties and those for third-party vendors. The payment terms of 30~120 days showed no significant difference between related parties and third-party vendors.

(Continued)

73

QISDA CORPORATION Notes to the Parent-Company-Only Financial Statements

(iii) Lease

The Company leased its office and plant to its related parties. In 2021 and 2020, the related rental income from subsidiaries amounted to $90,316 and $76,668, respectively, and from associates amounted to $4,665 and $3,162, respectively, recognized as the non-operating － income and loss other income. The related receivables were classified as other receivables from related parties.

The Company leased factory from AU, and the rent is paid monthly with reference to the nearby office rental rates. The Company entered into a new factory lease contract with AU and recognized the right-of-use assets and the lease liabilities amounting to $10,021, respectively, in 2021. For the years ended December 31, 2021 and 2020, the related interest expense on lease liabilities amounted to $49 and $126, respectively. As of December 31, 2021 and 2020, the balance of the lease liability amounted to $9,608 and $4,448, respectively.

(iv) Repair service

The Company’ s subsidiaries provided repair service to the Company. These subsidiaries charged the Company for their repair service based on the actual costs of services rendered. For the years ended December 31, 2021 and 2020, the repair service fees amounted to $739 and $1,058, respectively, recognized as operating costs. The related payables were classified as “other payables to related parties”.

(v) Donation

For the years ended December 31, 2021 and 2020, the Company made a donation to a substantive related party (BenQ Foundation) $6,000 and $5,000, respectively.

(vi) Property transactions

In 2021, the Company sold machinery to subsidiaries at a price of $22,600. In 2020, the Company purchased machinery from subsidiaries at a price of $2,682.

(vii) Guarantees

For the years ended December 31, 2021 and 2020, the Company provided guarantees in order to apply for foreign exchange credit line for its subsidiaries amounting to $2,934,080 and $3,005,100, respectively.

(Continued)

74

QISDA CORPORATION Notes to the Parent-Company-Only Financial Statements

(viii) Receivables

(ix)	Account		Related-party categories	December 31, 2021 $ 5,538,535 2,524,742 991,853 879,741 735,919 10,670,790 1,252 1,281,698 707,652 141,125 2,130,475 4,179 $ 12,806,696 December 31, 2021 $ 18,224,092 1,376,443 3,567,730 411,887 9,200 23,589,352 440 725 $ 23,590,517	December 31, 2020
	Accounts receivable Other receivables Payables Account Accounts payable Other payables				6,269,938 3,033,274 794,613 923,692 745,490
					11,767,007
					2,250,644 - - -
					-
					2,531
					14,020,182
					December 31, 2020
					17,993,269 1,704,966 3,574,987 249,395 4,773
					23,527,390
					-
					5,865
					23,533,255

(Continued)

75

QISDA CORPORATION Notes to the Parent-Company-Only Financial Statements

(c) Compensation for key management personnel

Short-term employee benefits Post-employment benefits	2021 $ 164,433 1,071 $ 165,504	2020
		152,285 864
		153,149

8. Pledged assets:

The carrying amounts of the assets pledged as collateral are detailed below:

Pledged assets	Pledged to secure Credit lines of bank loans Credit lines of bank loans Restrictions on utilization of repatriated offshore funds	December 31, 2021 $ - 1,214,152 236,906 $ 1,451,058	December 31, 2020
Common stock of investments accounted for using the equity method Land and buildings Other financial assets (special deposit account)			5,933,504 1,163,163 81,832
			7,178,499

9. Significant commitments and contingencies:

In addition to those in note 7, the Company had the following commitments and contingencies:

(a) Significant unrecognized commitments

Unused letters of credit	December 31, 2021 $ 138,400	December 31, 2020 113,711

(b) Significant contingent liabilities

In January 2012, some direct and indirect Canadian purchasers of optical disk drive products filed class actions against the Company and BQA, among other co-defendants. In the complaints, the plaintiffs claimed monetary damages from an alleged antitrust conspiracy. The Company has reached a settlement agreement with the plaintiff. However, the final outcome is still pending approval of the court.

10. Significant loss from disaster: None.

11. Significant subsequent events: None.

(Continued)

76

QISDA CORPORATION Notes to the Parent-Company-Only Financial Statements

12. Others:

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

		2021	2021		2020	2020	2020	2020
	Cost of sales	Operating expenses	Total		Cost of sales	Operating expenses		Total
Employee benefits: Salaries Insurance Pension Remuneration to directors Others Depreciation Amortization	559,173 34,519 14,791 - 50,486 50,263 11,471	2,636,210 145,855 80,110 79,584 158,877 185,157 21,367	3,195,383 180,374 94,901 79,584 209,363 235,420 32,838		472,868 30,614 14,464 - 48,673 47,295 379	2,328,207 128,373 79,175 48,668 139,174 174,327 19,174		2,801,075 158,987 93,639 48,668 187,847 221,622 19,553
The number of employees The number of non-employee directors Average employee benefits Average employee salaries Average employee salaries adjustment rate Supervisors’ remuneration							2020
							1,745
							6
							1,864
							1,611
							% 6.06
							-

The Company’ s salary and remuneration policies (including directors, managers and employees) were as follows:

• (a) Directors:

• (i) The remuneration to directors is stipulated and distributed according to the Company’s Articles of Incorporation, authorizing the Board of Directors to determine the remuneration based on the participation and contribution of each director, as well as “ Remuneration Policy to the Directors and Functional Committee Members” which is in reference to domestic and overseas industry norms. If there is earnings, the remunerations to directors is approved by the Board of Directors according to the Company's Articles of Incorporation.

• (ii) The remunerations to directors is in accordance with the Company’s Articles of Incorporation and Remuneration Policy, and is reviewed by the Remuneration Committee and approved by the Board of Directors.

(b) Managers:

The remuneration to managers is in accordance with the Company’s personnel rules with reference to the industry norms, individual performance and the Company’s overall operating performance, and is reviewed by the Salary and Remuneration Committee and approved by the Board of Directors.

(Continued)

77

QISDA CORPORATION Notes to the Parent-Company-Only Financial Statements

• (c) Employees:

• (i) The Company provides diversified and competitive overall remuneration and career development opportunities. Apart from basic salary (including principal salary, meal allowance, etc.), various allowances and rewards, such as work allowances, duty allowances, performance bonuses, incentive bonuses and remuneration to employees based on the Company’s annual profit, are designed for difference job nature and reward purpose.

• (ii) The Company annually participates in the international market salary surveys, wherein it adjust the salary based on the salary benchmark of each job and individual performance to sustain its market competitiveness. Under the premise of enhancing the Company's overall operations and performance through teamwork and individual effort, the Company designs various short term or long term reward plans and profit sharing with employees to achieve the purpose of talent attraction, retention, motivation and programmatic cultivation of high quality talents.

• (iii) The salary and bonus for employees is in accordance with the Company’s personnel rules. The remuneration to employees is in accordance with Company’s Articles of Incorporation, and is approved by the Board of Directors and reported to shareholders meeting.

13. Additional disclosures:

• (a) Information on significant transactions:

• (i) Financing provided to other parties: Table 1 (attached)

• (ii) Guarantees and endorsements provided to other parties: Table 2 (attached)

• (iii) Marketable securities held at the reporting date (excluding investments in subsidiaries, associates, and joint ventures): Table 3 (attached)

• (iv) Marketable securities for which the accumulated purchase or sale amounts for the year exceed $300 million or 20% of the paid-in capital: Table 4 (attached)

• (v) Acquisition of real estate which exceeds $300 million or 20% of the paid-in capital: Table 5 (attached)

• (vi) Disposal of real estate which exceeds $300 million or 20% of the paid-in capital: Table 6 (attached)

• (vii) Total purchases from and sales to related parties which exceed $100 million or 20% of the paid-in capital: Table 7 (attached)

• (viii) Receivables from related parties which exceed $100 million or 20% of the paid-in capital: Table 8 (attached)

• (ix) Transactions about derivative instruments: Refer to note 6(b)

• (b) Information on investees : Table 9 (attached)

(Continued)

78

QISDA CORPORATION

Notes to the Parent-Company-Only Financial Statements

• (c) Information on investment in Mainland China: Table 10 (attached)

• (d) Major shareholders:

Major shareholders:
Shareholding Shareholder’s Name	Shares	Percentage
AU Optronics Corp.	335,230,510	% 17.04

14. Segment information:

Please refer to the consolidated financial statements for the year ended December 31, 2021.

Table 1

QISDA CORPORATION

Financing provided to other parties For the year ended December 31, 2021

(Amounts in thousands of New Taiwan dollars and other currencies)

No.	Name of Lender	Name of Borrower	Financial Statement Account	Is a Related Party	Highest Balance of Financing to Other Parties During the Period	Ending Balance	Actual Usage Amount During the Period	Range of Interest Rates During the Period	Purpose of Fund Financing for the Borrower	Transaction Amounts	Reasons for Short-term Financing	Allowance for Bad Debt	Collateral	Collateral	Finanacing Limits for Each Borrowing Company	Financing Company's Total Financing Amounts Limits
													Item	Value
10 8 9 8 7 8 7 5 6 4 3 4 2 1 1 1 1 0	Ace Pillar Co., Ltd. BMS PTT BMS QCOS BMS QCOS BIC NMHC BBM QLPG BBM QLLB BenQ BenQ BenQ BenQ The Company	Tianjin Ace Pillar Co., Ltd. BenQ Materials Medical Supplies (Suzhou) Co., Ltd (“BMM”)(Note 26) Corex (Pty) Ltd. Suzhou Sigma Medical Supplies Co., Ltd. (“SMSZ”)(Note 26) Qisda (Shanghai) Co., Ltd. (“QCSH”) (Note 26) BenQ Meterials (Wuhu) Co., Ltd.(Note 26) Suzhou BenQ Hospital Co., Ltd. (“SMH”) (Note 26) Suzhou BenQ Hospital Co., Ltd. (“SMH”) (Note 26) Nanjing BenQ Hospital Co., Ltd.(“NMH”) (Note 26) Nanjing BenQ Hospital Co., Ltd.(“NMH”) QLLB Suzhou BenQ Hospital Co., Ltd. (“SMH”) Qisda (Shanghai) Co., Ltd. (“QCSH”) Darly 2 Darly C Darly Venture (L) Ltd BQL APV	Other receivables from related parties Other receivables from related parties Other receivables from related parties Other receivables from related parties Other receivables from related parties Other receivables from related parties Other receivables from related parties Other receivables from related parties Other receivables from related parties Other receivables from related parties Other receivables from related parties Other receivables from related parties Other receivables from related parties Other receivables from related parties Other receivables from related parties Other receivables from related parties Other receivables from related parties Other receivables from related parties	yes yes yes yes yes yes yes yes yes yes yes yes yes yes yes yes yes yes	200,000 500,400 278,000 200,000 300,000 3,219,000 558,502 128,385 855,900 21,787 22,658 740,758 87,148 1,154,711 86,718 259,560 113,400 250,560	- 249,120 138,400 - - 1,605,440 543,529 110,720 692,000 21,727 22,596 738,718 86,908 1,151,531 - 130,362 - 249,120	- 249,120 138,400 - - 1,605,440 231,994 - - 553,600 21,727 22,596 738,718 86,908 818,239 - 23,900 - 166,080	0.00%~4.35% USD 3.50% ZAR 8.85% 1.30% 1.30% 1.30% 2.00%~2.30% 3.60% 1.00% 1.00% - - 3.20% - - - 0.75% - 1.20%	2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2	- - - - - - - - - - - - - - - - - -	Operating requirements Operating requirements Operating requirements Operating requirements Operating requirements Operating requirements Operating requirements Operating requirements Operating requirements Operating requirements Operating requirements Operating requirements Operating requirements Operating requirements Operating requirements Operating requirements Operating requirements Operating requirements	- - - - - - - - - - - - - - - - - -	- - - - - - - - - - - - - - - - - -	- - - - - - - - - - - - - - - - - -	402,770 410,619 1,938,681 1,938,681 1,938,681 4,145,642 23,639 1,635,411 335,850 2,037,689 2,037,689 8,291,285 2,085,224 6,053,140 2,085,224 2,085,224 2,085,224 8,291,285	821,237 1,938,681 402,770 1,938,681 41,456,423 1,938,681 1,635,411 335,850 23,639 2,037,689 16,582,569 2,037,689 6,053,140 4,170,448 4,170,448 4,170,448 4,170,448 16,582,569

~79~

No.	Name of Lender	Name of Borrower	Financial Statement Account	Is a Related Party	Highest Balance of Financing to Other Parties During the Period	Ending Balance	Actual Usage Amount During the Period	Range of Interest Rates During the Period	Purpose of Fund Financing for the Borrower	Transaction Amounts	Reasons for Short-term Financing	Allowance for Bad Debt	Collateral	Collateral	Finanacing Limits for Each Borrowing Company	Financing Company's Total Financing Amounts Limits
													Item	Value
24 22 23 21 19 20 18 17 18 16 14 15 14 12 13 12 10 11	Darly C Darly Darly 2 D-Link Asia Jietech Trading (Suzhou) Inc. Alpha Dongguan Hitron Technologies Alpha Networks (Chengdu) Co., Ltd. Hitron Technologies Mirac Networks (Dongguan) Co., Ltd. Aewin Alpha HK Aewin Grace Transmission (Tianjin) Co., Ltd. Proton Inc. Grace Transmission (Tianjin) Co., Ltd. Ace Pillar Co., Ltd. Cyber South	BenQ BenQ BenQ Alpha Changshu Suzhou Alpha Changshu Suzhou Alpha Changshu Hitron Vietnam Alpha Changshu Aewin Beijing Technologies Co., Ltd Alpha Changshu Aewin Beijing Technologies Co., Ltd Tianjin Ace Pillar Co., Ltd. Tianjin Ace Pillar Co., Ltd. Advancedtek Ace (TJ) Inc. Suzhou Super Pillar Automation Equipment Co., Ltd. Suzhou Super Pillar Automation Equipment Co., Ltd.	Other receivables from related parties Other receivables from related parties Other receivables from related parties Other receivables from related parties Other receivables from related parties Other receivables from related parties Other receivables from related parties Other receivables from related parties Other receivables from related parties Other receivables from related parties Other receivables from related parties Other receivables from related parties Other receivables from related parties Other receivables from related parties Other receivables from related parties Other receivables from related parties Other receivables from related parties Other receivables from related parties	yes yes yes yes yes yes yes yes yes yes yes yes yes yes yes yes yes yes	28,530 15,692 2,614 13,044 17,344 85,590 208,489 1,425,960 129,231 174,296 922,680 427,950 21,680 306,761 139,000 200,000 400,000 100,000	27,680 - - - - - 102,949 966,032 - 173,816 830,400 - - 305,916 138,400 200,000 400,000 100,000	27,680 - - - - - 102,949 966,032 - 173,816 608,960 - - 305,916 138,400 200,000 200,000 100,000	0.50% 0.50% 0.50% - 2.00% 2.00% 1.00% 1.00% 2.00%~2.50% 2.50% - - - 1.80% 1.80% 1.80% 1.15% -	2 2 2 2 2 2 2 2 2 2 2 1 2 2 2 2 2 2	- - - - - - - - - - 445,822 - - - - - - -	Operating requirements Operating requirements Operating requirements Operating requirements Operating requirements Operating requirements Operating requirements Operating requirements Operating requirements Operating requirements Business transaction Operating requirements Operating requirements Operating requirements Operating requirements Operating requirements Operating requirements Operating requirements	- - - - - - - - - - - - - - - - - -	- - - - - - - - - - - - - - - - - -	- - - - - - - - - - - - - - - - - -	181,642 1,675,750 1,563,426 1,034,891 1,745,594 3,716 939,324 939,324 574,686 2,263,055 303,307 231,859 39,722 231,859 7,018 626,514 7,018 410,619	181,642 1,675,750 1,563,426 1,745,594 3,716 1,034,891 1,878,649 574,686 1,878,649 303,307 463,718 2,263,055 463,718 7,018 39,722 7,018 821,237 626,514

(Note 1) The aggregate financing amount and the individual financing amount of the Company to subsidiaries shall not exceed 40% and 20%, respectively, of the most recent audited or reviewed net worth of the Company.

(Note 2) The aggregate financing amount and the individual financing amount of QLLB to subsidiaries shall not exceed 40% of the most recent net worth of QLLB. (Note 3) The aggregate financing amount and the individual financing amount of BenQ to subsidiaries shall not exceed 40% and 20%, respectively, of the most recent net worth of BenQ. (Note 4) The aggregate financing amount and the individual financing amount of BBM to subsidiaries shall not exceed 40% of the most recent net worth of BBM.

~80~

• (Note 5) The aggregate financing amount to subsidiaries wholly owned by the Company and the individual financing amount of QCOS shall not exceed 100% and 10%, respectively, of the most recent audited or reviewed net worth of the Company. The financing amount to the subsidiaries not wholly owned by the Company and the individual financing amount of QCOS shall not exceed 40% of the most recent net worth of QCOS.

• (Note 6) The aggregate financing amount and the individual financing amount of QLPG to subsidiaries shall not exceed 40% and 20%, respectively, of the most recent audited or reviewed net worth of the Company.

• (Note 7) The aggregate financing amount and the individual financing amount of BIC to subsidiaries shall not exceed 40% of the most recent net worth of BIC.

• (Note 8) The aggregate financing amount to subsidiaries wholly owned by BMC and the individual financing amount of BMS shall not exceed 100% , respectively, of the most recent audited or reviewed net worth of BMS.

• (Note 9) The aggregate financing amount and the individual financing amount of NMHC to subsidiaries shall not exceed 100% of the most recent net worth of NMHC.

• (Note 10) The aggregate financing amount and the individual financing amount of PTT to subsidiaries shall not exceed 40% of the most recent net worth of PTT.

• (Note 11) The aggregate financing amount and the individual financing amount of ACE to subsidiaries shall not exceed 40% and 20%, respectively, of the most recent net worth of ACE.

• (Note 12) The aggregate financing amount to foreign subsidiaries wholly owned by ACE and the individual financing amount of Cyber South shall not exceed 100% of the most recent net worth of Cyber South. The aggregate financing amount to the subsidiaries not wholly owned by ACE and the individual financing amount of Cyber South shall not exceed 10% and 5%, respectively, of the most recent net worth of Cyber South.

• (Note 13) The aggregate financing amount to foreign subsidiaries wholly owned by ACE and the individual financing amount of Grace Transmission (Tianjin) Co., Ltd. shall not exceed 100% of the most recent net worth of Grace Transmission (Tianjin) Co., Ltd.. The aggregate financing amount to the subsidiaries not wholly owned by ACE and the individual financing amount of Grace Transmission (Tianjin) Co., Ltd. shall not exceed 10% and 5%, respectively, of the most recent net worth of Grace Transmission (Tianjin) Co., Ltd..

• (Note 14) The aggregate financing amount to foreign subsidiaries wholly owned by ACE and the individual financing amount of Hong Kong Ace Pillar Enterprise Company Limited shall not exceed 100% of the most recent net worth of Hong Kong Ace Pillar Enterprise Company Limited. The aggregate financing amount to the subsidiaries not wholly owned by ACE and the individual financing amount of Hong Kong Ace Pillar Enterprise Company Limited shall not exceed 10% and 5%, respectively, of the most recent net worth of Hong Kong Ace Pillar Enterprise Company Limited.

• (Note 15) The aggregate financing amount and the individual financing amount of AEWIN to subsidiaries shall not exceed 40% and 20%, respectively, of the most recent audited or reviewed net worth of AEWIN.

• (Note 16) The aggregate financing amount to foreign subsidiaries wholly owned by Alpha and the individual financing amount of Alpha HK shall not exceed 100% of the most recent net worth of Alpha HK.

• (Note 17) The aggregate financing amount to foreign subsidiaries wholly owned by Alpha and the individual financing amount of Mirac Networks (Dongguan) Co., Ltd. shall not exceed 100% of the most recent net worth of Mirac Networks (Dongguan) Co., Ltd.

• (Note 18) The aggregate financing amount to foreign subsidiaries wholly owned by Alpha and the individual financing amount of Alpha Networks (Chengdu) Co., Ltd. shall not exceed 100% of the most recent net worth of Alpha Networks (Chengdu) Co., Ltd.

• (Note 19) The aggregate financing amount to foreign subsidiaries wholly owned by Alpha and the individual financing amount of Alpha Networks (Dongguan) Co., Ltd. shall not exceed 100% of the most recent net worth of Alpha Networks (Dongguan) Co., Ltd.

• (Note 20) The aggregate financing amount to foreign subsidiaries wholly owned by Alpha and the individual financing amount of D-Link Asia shall not exceed 100% of the most recent net worth of D-Link Asia.

• (Note 21) The aggregate financing amount of Hitron Technologies and its subsidiaries(Jietech Trading (Suzhou) Inc.) to subsidiaries shall not exceed 40% of the the most recent audited or reviewed net worth of both parties. The financing reason and limit for each type of party is stated as below:

• a

• For entities who have business transactions with Hitron Technologies, the individual financing amount shall not exceed the total transaction amount in the nearest 12 months. The transaction referring to the higher of sales or purchase amount.

• b For entities who have a need in short term financing, the individual financing amount shall not exceed 10% of the most recent audited or reviewed net worth of Hitron Technologies. c For foreign subsidiaries which Hitron Technologies has 100% of direct or indirect voting rights, the aggregate financing amount and the individual financing amount shall not exceed 100% of the net worth of the lender.

• d For foreign subsidiaries which Hitron Technologies has 100% of direct or indirect voting rights, the aggregate financing amount and the individual financing amount shall not exceed 100% of the net worth of the lender.

• (Note 22) The aggregate financing amount and the individual financing amount of Darly Venture Inc. to subsidiaries shall not exceed 40% of the most recent net worth of Darly Venture Inc.

• (Note 23) The aggregate financing amount and the individual financing amount of Darly 2 Venture, Corp. to subsidiaries shall not exceed 40% of the most recent net worth of Darly 2 Venture, Corp.

• (Note 24) The aggregate financing amount and the individual financing amount of Darly Consulting Corp. to subsidiaries shall not exceed 40% of the most recent net worth of Darly Consulting Corp.

• (Note 25) Purpose of Fund Financing: 1.Business transaction purpose. 2. Short-term financing purpose.

• (Note 26) To decrease the interest expense of the Group, certain subsidiaries using special purpose trust account through financial intermediaries offer idle fund to other subsidiaries in need.

~81~

QISDA CORPORATION

Guarantees and endorsements provided to other parties For the year ended December 31, 2021

(Amounts in thousands of New Taiwan dollars and other currencies)

Table 2

Table 2
No.	Endorsements / Guarantee Provider	Counter-party of Guarantee and Endorsement		Limits on Amount of Guarantees and Endorsements Provided to Each Guaranteed Party	Highest Balance of Guarantees and Endorsements During the Period	Balance of Guarantees and Endorsements as of Reporting Date	Actual Usage Amount During the Period	Property Pledged for Guarantees and Endorsements	Ratio of Accumulated Amounts of Guarantees and Endorsements to Net Worth of the Latest Financial Statements	Maximum Amounts for Guarantees and Endorsements	Gaurantee Provided by Parent Company	Gaurantee Provided by A Subsidiary	Endorsements / Guarantees Provided to Subsidiaries in Mainland China
		Name	Relationship with the Company
8 8 7 7 7 7 7 6 6 5 4 3 2 2 2 1 0	Sysage Sysage Hitron Technologies Hitron Technologies Hitron Technologies Hitron Technologies Hitron Technologies Alpha Alpha AEWIN ACE DIC PTT PTT PTT BenQ The Company	Global Intelligence Network Co., Ltd. Corex (Pty) Ltd. Hitron Technologies (SIP) Inc. Hitron Technologies (Vietnam) Inc. Hitron Technologies (Americas) Inc. Hitron Technologies Europe Holding B.V. Innoauto Technologies Inc. Alpha Networks (Changshu) Co., Ltd. Alpha Networks ( Dongguan) Co., Ltd. Aewin Beijing Technologies Co., LTD Tianjin Ace Pillar Co., Ltd. Data Image (Suzhou) Corporation Partner-Tech Europe GmbH Partner Tech Middle East FZCO Partner Tech USA Inc. MaxGen QLLB	Parent/Subsidiary Parent/Subsidiary Parent/Subsidiary Parent/Subsidiary Parent/Subsidiary Parent/Subsidiary Parent/Subsidiary Parent/Subsidiary Parent/Subsidiary Parent/Subsidiary Parent/Subsidiary Parent/Subsidiary Parent/Subsidiary Parent/Subsidiary Parent/Subsidiary Parent/Subsidiary Parent/Subsidiary	858,113 858,113 4,696,622 4,696,622 4,696,622 4,696,622 4,696,622 4,801,210 4,801,210 226,889 821,237 267,622 201,385 201,385 201,385 2,085,224 8,291,285	4,581,600 98,157 57,060 57,060 28,530 55,600 327,500 129,780 57,060 199,710 75,000 645,036 836,100 2,168,280 514,446 222,400 100,000	3,376,960 85,006 55,360 55,360 27,680 27,680 188,400 65,181 55,360 193,760 - 601,096 553,600 1,771,520 - 221,440 100,000	2,934,080 85,006 55,360 55,360 27,680 12,159 56,490 65,181 14,138 13,812 - 77,352 - - - 94,737 100,000	- - - - - - - - - - - - - - - - -	2.33% 5.16% - 37.72% 11.79% 12.80% - 2.06% 0.58% 5.63% 9.18% 2.07% 5.50% 5.50% 2.75% 0.82% 8.15%	2,145,282 2,145,282 7,044,933 7,044,933 7,044,933 7,044,933 7,044,933 9,602,419 9,602,419 579,064 1,026,547 669,056 503,463 503,463 503,463 10,426,119 20,728,211	N N N N N N N N N N N N N N N N Y	- - - - - - - - - - - - - - - - -	- - Y - - - - Y Y Y Y Y - - - - -

(Note 1) The aggregate endorsement/guarantee amount provided by the Company to QLLB and the endorsement/guarantee amount provided to individual party shall not exceed 50% and 20%, respectively, of the most recent audited or reviewed net worth of the Company. (Note 2) The aggregate endorsement/guarantee amount provided by BenQ to MaxGen and the endorsement/guarantee amount provided to individual party shall not exceed 100% and 20%, respectively, of the net worth of BenQ. (Note 3) The aggregate endorsement/guarantee amount provided by PTT to PTT 's subsidiaries and the endorsement/guarantee amount provided to individual party shall not exceed 50% and 20%, respectively, of the net worth of PTT.

(Note 4) The aggregate endorsement/guarantee amount provided by DIC to Data Image (Suzhou) Corporation and the endorsement/guarantee amount provided to individual party shall not exceed 50% and 20%, respectively, of the net worth of DIC. (Note 5) The aggregate endorsement/guarantee amount provided by ACE to ACE's subsidiaries and the endorsement/guarantee amount provided to individual party shall not exceed 50% and 40%, respectively, of the net worth of ACE.

(Note 6) The aggregate endorsement/guarantee amount provided by Alpha to Alpha's subsidiaries and the endorsement/guarantee amount provided to individual party shall not exceed 100% and 50%, respectively, of the net worth of Alpha.

(Note 7) The aggregate endorsement/guarantee amount provided by Hitron Technologies to Hitron Technologies’subsidiaries and the endorsement/guarantee amount provided to individual party shall not exceed 150% and 20%, respectively, of the net worth of Hitron Technologie. However, there is no restriction for those directly or indirectly held subsidiaries with more than 50% of the voting shares and for those directly and indirectly hold 100% of the voting shares are indirectly endorsed and guaranteed, but it shall not exceed Hitron Technologies 100% of the net worth of the most recent financial statements.

(Note 8) The aggregate endorsement/guarantee amount provided by AEWIN to Aewin Beijing Technologies Co., Ltd. and the endorsement/guarantee amount provided to individual party shall not exceed 50% and 20%, respectively, of the recent audited or reviewed net worth of AEWIN. (Note 9) The aggregate endorsement/guarantee amount provided by Sysage to subsidiaries and the endorsement/guarantee amount provided to individual party shall not exceed 50% and 20%, respectively, of the most recent audited or reviewed net worth of Sysage.

~82~

QISDA CORPORATION Marketable securities held (excluding investments in subsidiaries, associates, and joint ventures)

For the year ended December 31, 2021

(Amounts in thousands of New Taiwan dollars, unless specified otherwise)

Table 3

Investing Company	Marketable Securities Type and Name	Relationship with the Securities Issuer	Financial Statement Account	December 31, 2021	December 31, 2021	December 31, 2021	December 31, 2021
				Shares/Units	Carrying Value	Percentage of Ownership	Fair Value	Note
The Company The Company QLLB BMC BMC BMC BMC APV APV APV APV APV APV APV APV APV Darly 2	Stock: APLEX Technology, Inc. Stock: AU CPEC Huachuang Private Equity Fund (Fujian) Co., Ltd. Fund Stock: Lagis Enterprise Co., Ltd. Stock: Biodenta Corporation Stock: YiLeLaFa Corporation Stock: CUUMed Catheter Medical Co., Ltd. Stock: Hi-Clearance Inc. Stock: Joymaster Inc. Stock: Crystalvue Medical Corp. Stock: Gigastone Corporation Stock: Athena Capital Management Stock: CDIB Capital Innovation Advisors Corporation Preferred Stock: D8AI Holdings Coporation Stock: APLEX Technology, Inc. Stock: Raydium Semiconductor Corporation Stock: Crystalvue Medical Corp.	- - - - - - - - - - - - - - - - -	Financial assets at fair value through other comprehensive income-non-current Financial assets at fair value through other comprehensive income-non-current Financial assets at fair value through other comprehensive income-non-current Financial assets at fair value through other comprehensive income-current Financial assets at fair value through profit or loss-non-current Financial assets at fair value through other comprehensive income-non-current Financial assets at fair value through other comprehensive income-non-current Financial assets at fair value through other comprehensive income-current Financial assets at fair value through other comprehensive income-non-current Financial assets at fair value through other comprehensive income-non-current Financial assets at fair value through other comprehensive income-non-current Financial assets at fair value through other comprehensive income-non-current Financial assets at fair value through other comprehensive income-non-current Financial assets at fair value through other comprehensive income-non-current Financial assets at fair value through other comprehensive income-non-current Financial assets at fair value through other comprehensive income-non-current Financial assets at fair value through other comprehensive income-non-current	1,388 663,599 - 1,680 225 300 323 317 619 672 31 2,000 3,667 10,000 2,144 2,309 470	57,304 15,196,408 42,788 55,490 (Note 1) 3,000 6,187 46,547 (Note 1) 32,222 377 10,680 21,665 3,296 88,566 1,306,644 22,536	4.61% 6.93% 2.50% 5.25% 2.50% 2.73% 2.12% 0.83% 6.19% 2.77% 0.06% 6.17% 3.33% 6.56% 7.13% 3.45% 1.94%	57,304 15,196,408 42,788 55,490 - 3,000 6,187 46,547 - 32,222 377 10,680 21,665 3,296 88,566 1,306,644 22,536	- - - - - - - - - - - - - - - - -

~83~

Investing Company	Marketable Securities Type and Name	Relationship with the Securities Issuer	Financial Statement Account	December 31, 2021	December 31, 2021	December 31, 2021	December 31, 2021
				Shares/Units	Carrying Value	Percentage of Ownership	Fair Value	Note
Darly 2 Darly 2 Darly 2 Darly 2 Darly C Darly C Darly C Darly C BenQ PTT DFI DFI DFI DFI AEWIN AEWIN Sysage Sysage Sysage Sysage	Stock: Raydium Semiconductor Corporation Stock: Fong Huang Innovation Corporation Stock: Fong Huang 2 Innovation Corporation Stock: Fong Huang 3 Innovation Corporation Stock: Crystalvue Medical Corp. Stock: Athena Capital Management Stock: Anqing Innovation Stock: Visco Vision Inc. Stock: Crystalvue Medical Corp. Preferred Stock: D8AI Holdings Coporation Stock: APLEX Technology, Inc. Fund: Cathay No 1 REIT Asia Tech Venture Fund Bond: WM 7.25% Perpetual Stock: Aewin Korea Co., Ltd. Stock: AuthenTrend Technology Inc. CDS Holdings Limited Stock: Yobon Technologies, Inc. Stock: Dynasafe Technologies, Inc. Stock: Touch Cloud, Inc.	- - - - - - - - - - - - - - - - - - - -	Financial assets at fair value through other comprehensive income-non-current Financial assets at fair value through other comprehensive income-non-current Financial assets at fair value through other comprehensive income-non-current Financial assets at fair value through other comprehensive income-non-current Financial assets at fair value through other comprehensive income-non-current Financial assets at fair value through other comprehensive income-non-current Financial assets at fair value through other comprehensive income-non-current Financial assets at fair value through other comprehensive income-non-current Financial assets at fair value through other comprehensive income-non-current Financial assets at fair value through other comprehensive income-non-current Financial assets at fair value through other comprehensive income-non-current Financial assets at fair value through profit or loss-current Financial assets at fair value through other comprehensive income-non-current Financial assets at fair value through other comprehensive income-non-current Financial assets at fair value through other comprehensive income-non-current Financial assets at fair value through profit or loss-non-current Financial assets at fair value through profit or loss-non-current Financial assets at fair value through profit or loss-non-current Financial assets at fair value through profit or loss-non-current Financial assets at fair value through profit or loss-non-current	1,552 6,000 3,000 3,000 34 1,000 1,033 285 1,487 3,500 999 1,442 USD 225 USD 200 10 300 600 3 3,906 200	878,099 83,693 36,374 32,465 1,630 5,340 5,409 61,860 71,302 5,196 41,259 26,144 (Note 1) (Note 1) 1,288 (Note 1) (Note 1) (Note 1) 227,410 856	2.32% 18.75% 7.01% 13.04% 0.14% 3.09% 2.24% 0.52% 6.13% 2.30% 3.32% - - - 16.67% 1.42% 1.11% 0.42% 19.53% 1.50%	878,099 83,693 36,374 32,465 1,630 5,340 5,409 61,860 71,302 5,196 41,259 26,144 - - 1,288 - - - 227,410 856	- - - - - - - - - - - - - - - - - - - -

~84~

Investing Company	Marketable Securities Type and Name	Relationship with the Securities Issuer	Financial Statement Account	December 31, 2021	December 31, 2021	December 31, 2021	December 31, 2021
				Shares/Units	Carrying Value	Percentage of Ownership	Fair Value	Note
Sysage Sysage Sysage Simula Simula GSC Alpha Hitron Technologies Hitron Technologies Hitron Technologies Hitron Technologies Hitron Technologies Hitron Technologies Hitron Technologies Hitron Technologies Hitron Technologies Interactive Digital DIVA DIVA	Gemini Data, Inc. Stock: Kingtel Corporation Limited Partnership Equity: Taiwania Capital Buffalo Fund �,LP. Stock: Optomedia Technology Inc. Stock: Taiwan Competition Co., Ltd. Stock: New Image Medical Co.,Ltd. Stock: TGC, Inc. Stock: Senao International Co., Ltd. Stock: Transcend Information Inc. Stock: Chao Long Motor Parts Corp. Stock: Imagetech Co., Ltd. Stock: Tsunami Visual Technologies, Inc. Stock: Pivot Technology Corp. Stock: Cardtek Co., Ltd. Stock: Yesmobile Holding Company Ltd. Preferred Stock: Codent Networks (Cayman) Ltd. Stock: Transcend Information Inc. Stock: Insight Genomics Inc. Stock: Renown Information Technology Corp.	- - - - - - - - - - - - - - - - - - -	Financial assets at fair value through profit or loss-non-current Financial assets at fair value through profit or loss-non-current Financial assets at fair value through profit or loss-non-current Financial assets at fair value through other comprehensive income-non-current Financial assets at fair value through other comprehensive income-non-current Financial assets at fair value through other comprehensive income-non-current Financial assets at fair value through profit or loss-non-current Financial assets at fair value through profit or loss-current Financial assets at fair value through profit or loss-current Financial assets at fair value through other comprehensive income-non-current Financial assets at fair value through other comprehensive income-non-current Financial assets at fair value through other comprehensive income-non-current Financial assets at fair value through other comprehensive income-non-current Financial assets at fair value through other comprehensive income-non-current Financial assets at fair value through other comprehensive income-non-current Financial assets at fair value through other comprehensive income-non-current Financial assets at fair value through profit or loss-current Financial assets at fair value through other comprehensive income-non-current Financial assets at fair value through other comprehensive income-non-current	2,706 443 (Note 2) 817 500 200 500 152 441 668 120 1,220 198 1,000 294 1,570 362 600 600	10,930 1,498 97,602 2,411 2,469 2,960 (Note 1) 5,077 32,237 19,335 (Note 1) (Note 1) (Note 1) (Note 1) (Note 1) (Note 1) 26,462 3,534 762	1.70% 18.09% 12.78% 3.26% 16.67% 0.74% 1.83% - - 1.79% 1.20% 9.34% 10.94% 6.45% 0.75% - - 10.00% 12.00%	10,930 1,498 97,602 2,411 2,469 2,960 - 5,077 32,237 19,335 - - - - - - 26,462 3,534 762	- - - - - - - - - - - - - - - - - - -

~85~

Investing Company	Marketable Securities Type and Name	Relationship with the Securities Issuer	Financial Statement Account	December 31, 2021	December 31, 2021	December 31, 2021	December 31, 2021
				Shares/Units	Carrying Value	Percentage of Ownership	Fair Value	Note
DIVA	Stock: Pharmally International Holding Co. Ltd.	-	Financial assets at fair value through profit or loss-non-current	150	(Note 1)	-	-	-

(Note 1) The impairment loss was fully recognized. (Note 2) There was no shares as the compan is a limited partnership.

~86~

QISDA CORPORATION

Marketable securities for which the accumulated purchase or sale amount for the year exceed NT$300 million or 20% of the paid-in capital For the year ended December 31, 2021

(Amounts in thousands of New Taiwan dollars, unless specified otherwise)

Table 4

Table 4
Company Name	Marketable Securities Type and Name	Financial Statement Account	Counter-Party	Name of Relationship	Beginning Balance		Purchase		Disposal				Ending Balance
					Shares	Amount	Shares	Amount	Shares	Amount	Carrying Value	Gain (Loss) on Disposal	Shares	Amount(Note 1)
The Company BBM DFI DFI Hitron Technologies Simula DIC	Sysage NSHD Brainstorm ACE Hitron Vietnam AST DIVA	Investment accounted for using equity method Investment accounted for using equity method Investment accounted for using equity method Investment accounted for using equity method Investment accounted for using equity method Investment accounted for using equity method Investment accounted for using equity method	- Hangzhou Lan Cheng Hong Chuang Investment Ltd. - - - - -	Parent/Subsidiary - Parent/Subsidiary Parent/Subsidiary Parent/Subsidiary Parent/Subsidiary -	66,000 - - 37,676 - - -	1,856,785 384,857 - 793,722 434,914 - -	30,841 - 233 16,282 - 32,001 20,856	1,387,856 - 501,582 507,636 1,036,992 983,858 625,680	- - - - - - -	- 1,231,460 - - - - -	- 180,476 - - - - -	- 1,042,365 - - - - -	96,841 - 233 53,958 - 32,001 20,856	2,662,719 183,100 501,582 1,301,359 1,471,906 1,008,924 617,569

(Note 1) The ending balance includes shares of profits/losses of investees and other related adjustment.

~87~

QISDA CORPORATION Acqusition of real estate which exceeds NT$300 million or 20% of the paid-in capital

For the year ended December 31, 2021

(Amounts in thousands of New Taiwan dollars, unless specified otherwise)

Table 5

Table 5
Company Name	Property Name	Transaction Date	Transactio n Amount	Status of Payment	Counter Party	Relationship with the Counter Party	If the Counter Party is a Related Party, Disclose the Previous Transfer Information				Price Reference	Purpose of Acqusition and Current Condition	Notes
							Owner	Relationshi p with the Company	Date of Transfer	Amount
AEWIN	Land and Buildings	Qctober 4, 2021	470,880	Payment in full	Avanti Commerce Centre Limited	-	-	-	-	-	Negotiate according to appraisal report	Operating purpose	None

~88~

QISDA CORPORATION

Disposal of real estate which exceeds NT$300 million or 20% of the paid-in capital For the year ended December 31, 2021

(Amounts in thousands of New Taiwan dollars, unless specified otherwise)

Table 6

Table 6
Company Name	Property Name	Transaction Date	Acquisitio n date	Book Value	Transaction Amount	Status of Payment	Gain or Loss on Disposal of real estate	Relation with the Counter Party	Counter Party	Purpose of Disposal	Price Reference	Notes
Qisda Sdn. Bhd. (QLPG)	Two land and buildings in Malaysia	Board resolution date June 11, 2020 ; Transaction date: June, 2021	1990	115,802	618,957(MYR 92,000 thousand) Net selling price after tax is 561,173	517,907 which is 93% of the contract price has been received.	365,338	Associates	Visco Technology Sdn.Bhd.	To activate asset and increase working capital	Refer to appraisal report	Payment term� 10% will be charged within 1 month after signing the contact� 20% will be charged within 1 month after the government approval is received� 70% will be charged within 4 month after the government approval is received
DFI	Land and Buildings	November 30, 2021	April 1, 1987	456,344	550,000	Received all payments	85,901 (Note 1)	Not applicable	Axiomtek Co., Ltd.	To activate asset and increase working capital	Negotiate according to appraisal report	None

(Note 1) The amount after deducting transaction-related fees.

~89~

QISDA CORPORATION

Total purchases from and sales to related parties which exceed NT$100 million or 20% of the paid-in capital For the year ended December 31, 2021

(Amounts in thousands of New Taiwan dollars, unless specified otherwise)

			QISDA CORPORATION Total purchases from and sales to related parties which exceed NT$100 million or 20% of the paid-in capital For the year ended December 31, 2021 (Amounts in thousands of New Taiwan dollars, unless specified otherwise)	QISDA CORPORATION Total purchases from and sales to related parties which exceed NT$100 million or 20% of the paid-in capital For the year ended December 31, 2021 (Amounts in thousands of New Taiwan dollars, unless specified otherwise)	QISDA CORPORATION Total purchases from and sales to related parties which exceed NT$100 million or 20% of the paid-in capital For the year ended December 31, 2021 (Amounts in thousands of New Taiwan dollars, unless specified otherwise)	QISDA CORPORATION Total purchases from and sales to related parties which exceed NT$100 million or 20% of the paid-in capital For the year ended December 31, 2021 (Amounts in thousands of New Taiwan dollars, unless specified otherwise)	QISDA CORPORATION Total purchases from and sales to related parties which exceed NT$100 million or 20% of the paid-in capital For the year ended December 31, 2021 (Amounts in thousands of New Taiwan dollars, unless specified otherwise)	QISDA CORPORATION Total purchases from and sales to related parties which exceed NT$100 million or 20% of the paid-in capital For the year ended December 31, 2021 (Amounts in thousands of New Taiwan dollars, unless specified otherwise)	QISDA CORPORATION Total purchases from and sales to related parties which exceed NT$100 million or 20% of the paid-in capital For the year ended December 31, 2021 (Amounts in thousands of New Taiwan dollars, unless specified otherwise)	QISDA CORPORATION Total purchases from and sales to related parties which exceed NT$100 million or 20% of the paid-in capital For the year ended December 31, 2021 (Amounts in thousands of New Taiwan dollars, unless specified otherwise)	QISDA CORPORATION Total purchases from and sales to related parties which exceed NT$100 million or 20% of the paid-in capital For the year ended December 31, 2021 (Amounts in thousands of New Taiwan dollars, unless specified otherwise)
Table 7
Company Name	Related Party	Nature of Relationship	Transaction Detail				Transactions with Terms Different from Others		Notes/Accounts Receivable or (Payable)
			Purchases/ (Sales)	Amount	% of Total Purchases/(Sales)	Payment Terms	Unit Price	Payment Terms	Ending Balance	% of Total Note/ Accounts Receivable or (Payable)	Note
The Company The Company The Company The Company The Company The Company The Company The Company The Company The Company The Company The Company The Company The Company QCSZ QCSZ QCSZ QCSZ QCSZ QCSZ QCOS QCOS QCOS QCOS QCOS QCOS QCES QCES QCES QCPS QCPS QALA QJTO QVH BenQ BenQ BenQ BenQ BenQ BenQ BenQ BenQ	BenQ QJTO QALA AU AUSZ AUKS DFI Topview BBC PTT QCSZ QCOS QVH Sysage The Company BQC_RO QCES QCPS DIC AU The Company BQC_RO QCES QCPS AU ADPHQ QCOS QCSZ DARWIN QCSZ QCOS The Company The Company The Company The Company INF AU BQA BQC RO BQE BQHK_HLD BQL	Parent/Subsidiary Parent/Subsidiary Parent/Subsidiary (Note 5) (Note 5) (Note 5) Parent/Subsidiary Parent/Subsidiary Parent/Subsidiary Parent/Subsidiary Parent/Subsidiary Parent/Subsidiary Parent/Subsidiary Parent/Subsidiary Parent/Subsidiary Affiliates Affiliates Affiliates Affiliates (Note 5) Parent/Subsidiary Affiliates Affiliates Affiliates (Note 5) (Note 5) Affiliates Affiliates (Note 5) Affiliates Affiliates Parent/Subsidiary Parent/Subsidiary Parent/Subsidiary Parent/Subsidiary Affiliates (Note 5) Affiliates Affiliates Affiliates Affiliates Affiliates	(Sales) (Sales) (Sales) (Sales) (Sales) (Sales) (Sales) (Sales) (Sales) (Sales) Purchases Purchases Purchases Purchases (Sales) (Sales) (Sales) Purchases Purchases Purchases (Sales) (Sales) Purchases Purchases Purchases Purchases (Sales) Purchases Purchases (Sales) (Sales) Purchases Purchases (Sales) Purchases Purchases Purchases (Sales) (Sales) (Sales) (Sales) (Sales)	(6,258,208) (2,827,402) (24,548,118) (5,928,960) (1,931,807) (280,607) (350,492) (206,268) (125,685) (250,248) 78,724,562 14,536,303 1,324,048 126,885 (78,724,562) (1,110,198) (102,951) 1,527,466 467,176 7,068,650 (14,536,303) (1,251,722) 835,839 259,435 134,072 395,613 (835,839) 102,951 120,717 (1,527,466) (259,435) 24,548,118 2,827,402 (1,324,048) 6,258,208 151,688 3,473,089 (3,898,924) (161,966) (7,017,415) (143,583) (518,411)	(6) (3) (23) (6) (2) - - - - - 78 14 1 - (89) (1) - 2 1 8 (84) (7) 5 2 1 2 (4) 1 1 (80) (14) 100 100 (100) 38 1 21 (21) (1) (39) (1) (3)	OA90 OA120 OA90 OA120 OA120 OA120 OA60 OA60 OA30 OA30 OA120 OA120 OA60 OA120 OA120 OA120 OA60 OA60 EOM45 EOM55 OA120 OA120 OA60 OA60 OA60 OA60 OA60 OA60 OA60 OA60 OA60 OA90 OA120 OA60 OA60 OA60 EOM55 OA90 OA120 OA90 OA90 OA90	- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -	- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -	2,524,742 991,853 5,538,535 1,281,698 707,652 141,110 50,843 22,901 24,434 46,137 (18,224,092) (3,567,730) (155,155) (99,293) 18,224,092 7,656 13,173 (173,031) (37,879) (601,428) 3,567,730 33,197 (88,764) (33,167) (13,930) (67,013) 88,764 (13,173) (24,565) 173,031 33,167 (5,538,539) (991,853) 155,155 (2,524,742) (67,297) (2,511,593) 734,413 5,521 2,005,350 17,178 238,912	13 5 28 6 4 1 - - - - (73) (14) (1) - 91 - - (1) - (3) 91 1 (2) (1) - (2) 3 - (1) 68 13 (100) (99) 96 (52) (1) (52) 13 - 35 - 4	- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

�90�

Company Name	Related Party	Nature of Relationship	Transaction Detail	Transaction Detail	Transaction Detail	Transaction Detail	Transactions with Terms Different from Others	Transactions with Terms Different from Others	Notes/Accounts Receivable or (Payable)	Notes/Accounts Receivable or (Payable)
			Purchases/ (Sales)	Amount	% of Total Purchases/(Sales)	Payment Terms	Unit Price	Payment Terms	Ending Balance	% of Total Note/ Accounts Receivable or (Payable)	Note
BenQ BQA BQA BQC RO BQC RO BQC_RO BQC_RO BQE BQE BQE BQE BQE BQE BQE BQE BQE BQE BQL BQL BQL BQP BQP BQP BQP BQP BQP BQAT BQAU BQCA BQCH BQDE BQFR BQHK_HLD BQIB BQIN BQIT BQJP BQME BQMX BQNL BQSE BQsha_EC2 BQTH BQUK Maxgen BBC	BQP BQCA BenQ QCOS QCSZ BenQ BQsha_EC2 BenQ BQDE BQFR BQIT BQUK BQAT BQSE BQIB BQNL BQCH BenQ BQMX MaxGen BQAU BOIN BQJP BOME BQTH BenQ BQE BQP BQA BQE BQE BQE BenQ BQE BQP BQE BQP BQP BQL BQE BQE BQC_RO BQP BQE BQL The Company	Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Parent/Subsidiary	(Sales) (Sales) Purchases Purchases Purchases Purchases (Sales) Purchases (Sales) (Sales) (Sales) (Sales) (Sales) (Sales) (Sales) (Sales) (Sales) Purchases (Sales) (Sales) (Sales) (Sales) (Sales) (Sales) (Sales) Purchases Purchases Purchases Purchases Purchases Purchases Purchases Purchases Purchases Purchases Purchases Purchases Purchases Purchases Purchases Purchases Purchases Purchases Purchases Purchases Purchases	(6,177,436) (786,502) 3,898,924 1,251,722 1,110,198 161,966 (159,935) 7,017,415 (1,877,581) (792,211) (416,472) (1,467,554) (888,899) (422,449) (648,013) (352,914) (201,387) 518,411 (300,453) (126,517) (439,947) (837,185) (2,167,397) (1,006,588) (188,571) 6,177,436 888,899 439,947 786,502 201,387 1,877,581 792,211 143,583 648,013 837,185 416,472 2,167,397 1,006,588 300,453 352,914 422,449 159,935 188,571 1,467,554 126,517 125,685	(34) (16) 98 37 33 5 (3) 96 (23) (10) (5) (18) (11) (5) (8) (4) (3) 99 (51) (22) (6) (12) (31) (14) (3) 98 100 91 100 100 100 100 93 100 96 100 100 95 87 98 99 96 98 100 80 52	OA60 OA60 OA90 OA120 OA120 OA120 OA120 OA90 OA30 OA30 OA30 OA30 OA45 OA30 OA30 OA30 OA30 OA90 OA90 OA90 OA60 OA60 OA60 OA60 OA60 OA60 OA45 OA60 OA60 OA30 OA30 OA30 OA90 OA30 OA60 OA30 OA60 OA60 OA90 OA30 OA30 OA120 OA60 OA30 OA90 OA30	- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -	- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -	1,998,702 136,303 (734,413) (33,197) (7,656) (5,521) 4,378 (2,005,350) 109,112 228,091 52,034 184,932 35,936 15,918 8,909 82,213 10,619 (238,912) 93,090 440,640 118,430 663,687 617,410 298,080 106,705 (1,998,702) (35,936) (118,430) (136,303) (10,619) (109,112) (228,091) (17,178) (8,909) (663,687) (52,034) (617,410) (298,080) (93,090) (82,213) (15,918) (4,378) (106,705) (184,932) (440,640) (24,434)	35 28 (100) (9) (2) (2) 1 (97) 13 27 6 22 4 2 1 10 1 (99) 17 79 5 30 28 13 5 (100) (100) (98) (100) (78) (94) (99) (92) (72) (100) (96) (97) (93) (93) (99) (92) (85) (100) (95) (99) (43)	- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

�91�

Company Name	Related Party	Nature of Relationship	Transaction Detail	Transaction Detail	Transaction Detail	Transaction Detail	Transactions with Terms Different from Others	Transactions with Terms Different from Others	Notes/Accounts Receivable or (Payable)	Notes/Accounts Receivable or (Payable)
			Purchases/ (Sales)	Amount	% of Total Purchases/(Sales)	Payment Terms	Unit Price	Payment Terms	Ending Balance	% of Total Note/ Accounts Receivable or (Payable)	Note
ESM GSC K2 K2(Shanghai) INF DIC DIC Data Image (Suzhou) Corporation Data Image (Suzhou) Corporation Topview Topview Messoa Technologies Inc DFI DFI DFI AMERICA, LLC. DFI Diamond Flower Information (NL) B.V. DFI DFI Co., Ltd. DFI AEWIN DFI DYTH AEWIN Aewin Beijing Technologies Co., Ltd Advancedtek Ace (TJ) Inc. Tianjin Ace Pillar Co., Ltd. AEWIN AEWIN TECH Alpha Alpha	GSC ESM K2(Shanghai) K2 BenQ QCSZ Data Image (Suzhou) Corporation DIC AU The Company Messoa Technologies Inc Topview The Company DFI AMERICA, LLC. DFI Diamond Flower Information (NL) B.V. DFI DFI Co., Ltd. DFI DFI AEWIN DYTH DFI Aewin Beijing Technologies Co., Ltd AEWIN Tianjin Ace Pillar Co., Ltd. Advancedtek Ace (TJ) Inc. AEWIN TECH AEWIN Alpha USA D-Link Asia	Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates (Note 5) Parent/Subsidiary Affiliates Affiliates Parent/Subsidiary Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates	(Sales) Purchases (Sales) Purchases (Sales) (Sales) Processing cost Processing Revenue Purchases Purchases (Sales) Purchases Purchases (Sales) Purchases (Sales) Purchases (Sales) Purchases (Sales) Purchases (Sales) Purchases (Sales) Purchases (Sales) Purchases (Sales) Purchases (Sales) Purchases	(390,333) 390,333 (300,857) 300,857 (151,688) (467,176) 1,983,506 (1,983,506) 377,832 206,268 (226,604) 226,604 350,492 (579,172) 579,172 (335,051) 335,051 (216,968) 216,968 (473,425) 473,425 (146,668) 146,668 (445,822) 445,822 (455,128) 455,128 (148,507) 148,507 (4,760,796) 5,541,952	88 100 37 44 100 (11) 65 (46) 12 13 (11) 99 10 (17) 100 (10) 100 (6) 99 (14) 24 (4) 91 (35) 42 (100) 33 (12) 100 (28) 35	OA60 OA60 OA90 OA90 OA60 EOM45 Depends on its working capital status Depends on its working capital status EOM45 Depends on its contractual terms Depends on its contractual terms Depends on its contractual terms OA60 60~90 Days 60~90 Days 60~90 Days 60~90 Days 60~90 Days 60~90 Days EOM60 EOM60 60~90 Days 60~90 Days 150 Days after shipment 150 Days after shipment T/T 30 Days T/T 30 Days 120 Days after shipment 120 Days after shipment 90 Days 90 Days	- - - - - - - - - - - - - - - - - - - According to contract price According to contract price - - - - - - - - - -	- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -	55,052 (55,052) 112,267 (112,267) 67,297 37,879 (199,422) 199,422 (28,175) (22,901) 60,277 (60,277) (50,843) 69,313 (69,313) 13,451 (13,451) 14,796 (14,796) 112,266 (112,266) 25,498 (25,498) 398,155 (398,155) 61,680 (61,680) 57,270 (57,270) 852,899 (349,133)	80 (96) 44 (100) 98 4 (23) 19 (3) (5) 11 (99) (6) 11 (99) 2 (100) 2 (92) 18 (43) 4 (94) 68 (64) 98 (31) 10 (100) 29 (21)	- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

�92�

Company Name	Related Party	Nature of Relationship	Transaction Detail	Transaction Detail	Transaction Detail	Transaction Detail	Transactions with Terms Different from Others	Transactions with Terms Different from Others	Notes/Accounts Receivable or (Payable)	Notes/Accounts Receivable or (Payable)
			Purchases/ (Sales)	Amount	% of Total Purchases/(Sales)	Payment Terms	Unit Price	Payment Terms	Ending Balance	% of Total Note/ Accounts Receivable or (Payable)	Note
Alpha Alpha Changshu Alpha HK D-Link Asia Hitron Technologies Hitron Technologies Hitron Vietnam Hitron Suzhou Hitron Suzhou Alpha USA D-Link Asia Alpha Changshu Mirac Alpha Changshu Alpha Dongguan Hitron Americas Hitron Europe Hitron Technologies Hitron Technologies Hitron Vietnam BMC BMC BMC BMC BMC BMC BMC BMC BMC SGM SGM BMS BMM Simula Simula Technology (ShenZhen) Co., Ltd. PTT PTT	Alpha Changshu Mirac Alpha Changshu Alpha Dongguan Hitron Americas Hitron Europe Hitron Technologies Hitron Technologies Hitron Vietnam Alpha Alpha Alpha Alpha Changshu Alpha HK D-Link Asia Hitron Technologies Hitron Technologies Hitron Vietnam Hitron Suzhou Hitron Suzhou AU AUSZ AUXM BMM SGM VVM BMS VVT BMW BMC BMC BMC BMC Simula Technology (ShenZhen) Co., Ltd. Simula The Company PTE	Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates (Note 5) (Note 5) (Note 5) Affiliates Affiliates Other related party Affiliates Other related party Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Parent/Subsidiary Affiliates	Purchases (Sales) (Sales) Purchases (Sales) (Sales) (Sales) (Sales) (Sales) Purchases (Sales) (Sales) Purchases Purchases (Sales) Purchases Purchases Purchases Purchases Purchases (Sales) (Sales) (Sales) (Sales) (Sales) (Sales) Purchases Purchases Purchases Purchases Purchases (Sales) (Sales) Purchases (Sales) Purchases (Sales)	6,329,794 (606,216) (7,407,351) 5,541,952 (4,523,454) (651,702) (5,956,885) (812,542) (153,206) 4,760,796 (5,541,952) (6,329,794) 606,216 7,407,351 (5,541,952) 4,523,454 651,702 5,956,885 812,542 153,206 (3,832,291) (1,215,914) (809,816) (433,328) (270,498) (102,930) 861,864 359,098 257,518 433,328 270,498 (861,864) (257,518) 832,516 (832,516) 250,248 (362,551)	40 (9) (100) 56 (47) (7) (61) (8) (2) 100 (56) (90) 99 89 (99) 96 100 58 8 3 (24) (8) (5) (3) (2) (1) 8 3 2 57 95 (90) (62) 89 (89) 23 (30)	90 Days 90 Days 90 Days 90 Days 90 Days 90 Days 90 Days 90 Days 90 Days 90 Days 90 Days 90 Days 90 Days 90 Days 90 Days 90 Days 90 Days 90 Days 90 Days 90 Days OA90 OA90 OA90 OA120 OA90 OA90 OA90 OA30 OA90 OA90 OA120 OA90 OA90 EOM60 EOM60 OA30 OA90	- - - - - - - - - - - - - - - - - - - - (Note 1) (Note 1) (Note 1) (Note 1) (Note 1) (Note 1) (Note 2) (Note 2) (Note 2) - - - - (Note 4) Equal to third-party customers (Note 3) (Note 3)	- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Third-party vendor: EOM 30-120 Non-related party: EOM 30-120 - -	(372,631) 127,369 1,307,227 (377,082) 1,360,832 111,182 634,323 55,541 - (852,899) 349,133 372,631 (127,369) (1,307,227) 377,082 (1,360,832) (111,182) (634,323) (55,541) - 419,854 88,716 51,334 248,054 150,948 42,066 (351,388) (48,346) (42,785) (248,054) (150,948) 351,388 42,785 (87,840) 87,840 (46,137) 144,261	(23) 24 100 (41) 75 6 35 3 - (100) 38 71 (78) (75) 92 (100) (99) (81) (7) - 14 3 2 8 5 1 (10) (1) (1) (96) (100) 98 47 (58) 72 (22) 28	- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

�93�

Company Name	Related Party	Nature of Relationship	Transaction Detail	Transaction Detail	Transaction Detail	Transaction Detail	Transactions with Terms Different from Others	Transactions with Terms Different from Others	Notes/Accounts Receivable or (Payable)	Notes/Accounts Receivable or (Payable)
			Purchases/ (Sales)	Amount	% of Total Purchases/(Sales)	Payment Terms	Unit Price	Payment Terms	Ending Balance	% of Total Note/ Accounts Receivable or (Payable)	Note
PTT PTT PTT PTE PTU PTME PTUK Sysage	PTU PTME PTUK PTT PTT PTT PTT The Company	Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Parent/Subsidiary	(Sales) (Sales) (Sales) Purchases Purchases Purchases Purchases (Sales)	(275,324) (120,345) (120,016) 362,551 275,324 120,345 120,016 (126,885)	(23) (10) (10) 53 90 50 76 (1)	OA90 OA90 OA90 OA90 OA90 OA90 OA90 EOM120	(Note 3) (Note 3) (Note 3) (Note 3) (Note 3) (Note 3) (Note 3) -	- - - - - - - -	112,778 98,208 38,969 (144,261) (112,778) (98,208) (38,969) 99,293	22 19 8 (71) (99) (98) (94) 4	- - - - - - - -

(Note 1) The selling prices of BMC to related parties are not comparable to the sales prices for third-party customers as the specifications of products were different. For the other transaction, there were no significant differences between the sales for related parties and those for third-party customers.

(Note 2) The purchase prices to related parties are not comparable to the purchase prices for third-party vendors as the specifications of products were different, and it is conducted under the agreed purchase price and conditions.

(Note 3) The selling prices of PTT to related parties are not comparable to the sales prices for third-party customers as the specifications of products were different. For the other transaction, there were no significant differences between the sales for related parties and those for third-party customers.

(Note 4) Simula seldom purchases the same products from other vendors. Therefore, the purchase prices are not reasonably comparable.

(Note 5) AU and AUSZ were associates before May 2021. Since May 2021, AU and AUSZ has become the entity that has significant influence over the Group.

�94�

QISDA CORPORATION

Receivables from related parties which exceed NT$100 million or 20% of the paid-in capital December 31, 2021

(Amounts in thousands of New Taiwan dollars, unless specified otherwise)

Table 8	Table 8	Table 8	Table 8	Table 8
Company Name	Related Party	Nature of Relationship	Ending Balance	Turnover Rate	Overdue		Amount Received in Subsequent Period	Allowance for Bad Debts
					Amount	Action Taken
The Company The Company The Company The Company The Company The Company The Company The Company QCSZ QCOS QCES QCPS QVH BenQ BenQ BenQ BenQ BenQ BQA BQE BQE BQE BQL BQP BQP BQP BQP BQP K2 Data Image (Suzhou) Corporation AEWIN	BenQ QJTO QALA AU AUSZ QCSZ QCOS AUKS The Company The Company The Company QCSZ The Company BQA BQE BQL BQP QCSZ BQCA BQDE BQFR BQUK MaxGen BQAU BQIN BQJP BQME BQTH K2SH DIC Aewin BeijingTechnologies Co.,Ltd.	Parent/Subsidiary Parent/Subsidiary Parent/Subsidiary (Note 3) (Note 3) Parent/Subsidiary Parent/Subsidiary (Note 3) Parent/Subsidiary Parent/Subsidiary Parent/Subsidiary Affiliates Parent/Subsidiary Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates	2,524,742 991,853 5,538,535 1,281,698 707,652 879,741 447,470 141,110 18,224,092 3,567,730 1,376,443 173,031 155,155 734,413 2,005,350 238,912 1,998,702 212,556 136,303 109,112 228,091 184,932 440,640 118,430 663,687 617,410 298,080 106,705 112,266 199,422 398,155	2.25 3.17 4.16 4.50 2.57 (Note 1) (Note 1) 3.98 4.44 4.07 (Note 1) 9.45 8.53 5.82 3.01 1.84 3.44 (Note 1) 4.90 6.59 2.50 8.90 0.26 3.45 1.28 4.85 3.42 1.84 2.68 11.22 1.14	321,092 12,911 651,220 146 - 9,557 5,985 - 4,193,746 - - - - - 506,285 110,736 504,031 30,540 - - 175,789 71,835 416,861 168,565 416,353 18,701 108,886 70,020 - - 151,918	- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -	968,970 31,569 - 462,114 141,532 438,817 218,478 - 4,193,746 794 1,376,443 - - 308,576 537,852 58,257 532,386 148,768 65,418 109,112 95,100 260,949 - 54,156 70,512 409,171 144,062 5,550 - - -	- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

�95�

Company Name	Related Party	Nature of Relationship	Ending Balance	Turnover Rate	Overdue	Overdue	Amount Received in Subsequent Period	Allowance for Bad Debts
					Amount	Action Taken
ACE Alpha Alpha D-Link Asia Alpha Changshu Alpha Dongguan Alpha Changshu Alpha HK D-Link Asia Hitron Technologies Hitron Technologies Hitron Technologies Hitron Vietnam BMC BMC BMC BMS PTT PTT	Tianjin Ace Pillar Co., Ltd. Alpha USA Alpha HK Alpha Alpha D-Link Asia Mirac Networks (Dongguan) Co.,Ltd. Alpha Changshu Alpha Dongguan Hitron Americas Hitron Europe Hitron Vietnam Hitron Technologies AU BBM SGM BMC PTE PTU	Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates (Note 3) Affiliates Affiliates Affiliates Affiliates Affiliates	166,080 852,899 305,125 349,133 372,631 377,082 127,369 1,307,227 548,197 1,360,832 111,182 1,270,467 634,323 419,854 248,054 150,948 351,388 144,261 112,778	(Note 1) 4.79 (Note 1) 3.59 8.96 3.54 4.26 6.51 3.01 2.79 3.60 (Note 1) 7.06 3.33 (Note 2) 2.60 (Note 2) 2.74 (Note 2) 4.06 (Note 2) 3.47 3.98	- - 87,427 - 3 593 - 171,243 12,540 - - - - - - - - - -	- - - - - - - - - - - - - - - - - - -	- 603,794 - 349,133 372,631 353,585 113,860 608,075 458,311 523,845 27,839 485,180 634,323 - - 150,948 78,969 96,615 42,308	- - - - - - - - - - - - - - - - - - -

(Note 1) The sales from repurchasing after processing have been eliminated; therefore, calculation of turnover rate is not applicable. (Note 2) The calculation of turnover rate includes the account receivable sold to financial institutions.

(Note 3) AU, AUSZ and AUKS were associates before May 2021. Since May 2021, AU, AUSZ and AUKS has become the entity that has significant influence over the Group.

�96�

QISDA CORPORATION

Information of Investees (Excluding Information on investments in Mainland China) For the year ended December 31, 2021

(Amounts in thousands of New Taiwan dollars / shares, unless specified otherwise)

Table 9

Table 9
Investor	Investee	Location	Main Businesses and Products	Original investment Amount		Balances as of December 31, 2021			Net Income (Loss) of the Investee	Investment Income (Loss)	Note
				December 31, 2021	December 31, 2020	Shares	Percentage of Ownership	Carrying Value
The Company The Company The Company The Company The Company The Company The Company The Company The Company The Company The Company The Company The Company The Company The Company The Company The Company The Company The Company The Company The Company The Company The Company The Company The Company BMC BMC BMC BMC BMC BMC BMC BMC APV APV APV APV APV	AU DFN BMC BenQ QALA QJTO QLPG QLLB APV Darly BBHC PTT BDT QTOS Q.S.Control Corp. DFI Alpha K2 DIC EASC Sysage Topview QVH Simula GSC BMLB SGM Visco Vision Inc. Cenefom Corporation Genejet Biotech Co., Ltd. Taike Biotech Co., Ltd. MLK Bioscience Co., Ltd. Kangde Corp. Darly C BMC BMTC BBHC BES	Taiwan Taiwan Taiwan Taiwan USA Japan Malaysia Malaysia Taiwan Malaysia Cayman Taiwan Taiwan Taiwan Taiwan Taiwan Taiwan Taiwan Taiwan Hong Kong Taiwan Taiwan Vietnam Taiwan Taiwan Malaysia Taiwan Taiwan Taiwan Taiwan Taiwan Taiwan Taiwan Taiwan Taiwan Taiwan Cayman Taiwan	R&D, manufacture and sale of TFT-LCD panels R&D, manufacture and sale of MLCC and keyboards R&D, manufacture and sale of optoelectronics film Manufacture and sales of brand-name electronic products Sales of electronic products Sales and maintenance of electronic products in Japanese market Leasing and management services Investment and holding activity Investment and holding activity Investment and holding activity Investment and holding activity Manufacture, sales, and import and export of POS terminals and peripherals Manufacture and sale of medical consumable and equipment Manufacture of computer peripheral products Manufacture and sales of medical consumables and equipments Manufacture and sales of industrial motherboards and components R & D, manufacture and sale of LAN/MAN, wireless, mobile & broadband, and digital multimedia products Sale of medical consumable and equipment Manufacture and sales of marine display modules Sales of brand-name electronic products and smart services The agent sales and trading of network software and information and communication hardware and software Manufacture and sales of video surveillance cameras Manufacture of monitors Manufacture and sales of electronic material Sale of alcohol and medical disinfectant Investment and holding activity Manufacture andsales of medical consumables and equipment Manufacture and sale of contact lenses R&D, manufacture and sale of medical consumable and equipment R&D, manufacture and sale of medical consumable and equipment R&D, manufacture and sale of medical consumable and equipment R&D and sale of medical consumable and equipment Sale of medical consumable and equipment Investment management consulting R&D, manufacture and sale of optoelectronics film Manufacture and sales of medical consumables and equipments Investment and holding activity Energyservice	- 662,195 507,883 7,160,050 32,800 2,701 578,128 3,687,539 570,016 165,000 1,476,632 1,475,978 280,000 1,000 63,000 3,154,750 8,135,810 217,763 260,000 78,338 3,202,856 172,500 1,212,849 600,000 254,000 1,141,340 231,727 177,811 92,262 43,316 - 6,000 5,980 77,933 221,786 42,584 904,102 50,250	8,085,543 662,195 507,883 7,160,050 32,800 2,701 578,128 3,687,539 570,016 165,000 1,476,632 1,475,978 280,000 1,000 63,000 3,154,750 8,114,943 217,763 260,000 78,338 1,815,000 172,500 1,073,549 600,000 254,000 1,141,340 560,000 177,811 29,127 - 10,001 6,000 - 77,933 221,786 42,584 904,102 50,250	- 58,005 43,659 539,662 1,000 - 50,000 114,250 153,258 6,000 47,400 43,577 28,000 100 6,000 51,610 295,797 6,997 20,000 1 96,841 5,750 - 30,000 10,000 35,082 2,000 9,834 4,418 3,767 - 217 598 12,105 15,182 3,549 25,000 4,100	- 20.72% 13.61% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 19.35% 58.04% 100.00% 100.00% 20.00% 45.08% 54.60% 34.99% 28.82% 54.00% 51.41% 20.00% 100.00% 37.51% 50.00% 100.00% 100.00% 17.97% 34.83% 70.00% - 20.00% 20.00% 45.11% 4.73% 7.96% 10.21% 41.00%	- 2,040,465 607,050 10,449,666 50,892 53,722 314,820 14,568,130 3,908,565 215,424 985,390 1,298,234 73,276 1,007 59,062 2,832,671 7,689,378 229,224 367,674 83,702 2,662,718 213,758 716,693 633,324 291,224 1,680,378 126,679 133,952 82,693 44,125 - 4,546 4,071 204,853 238,774 83,198 519,235 8,190	18,268,182 1,146,533 971,555 1,787,920 8,524 2,134 433,546 1,515,430 332,537 64,375 1,207,221 94,323 (40,049) 5 12,526 615,903 433,888 76,860 318,020 12,464 577,591 128,224 (236,565) 111,216 124,892 172,521 562 444,303 (11,594) (2,670) (1,921) (5,790) (10,676) 10,163 971,555 28,840 1,207,221 962	1,255,866 237,533 52,892 1,783,670 8,524 2,134 433,546 1,568,923 332,537 64,375 233,624 20,707 (41,256) 5 2,505 13,585 142,732 25,191 91,932 6,731 252,082 26,066 (236,565) 26,079 58,360 - - - - - - - - - - - - -	(Note 2) Associate Parent/Subsidiary Parent/Subsidiary Parent/Subsidiary Parent/Subsidiary Parent/Subsidiary Parent/Subsidiary Parent/Subsidiary Parent/Subsidiary Parent/Subsidiary Parent/Subsidiary Parent/Subsidiary Parent/Subsidiary Associate Parent/Subsidiary Parent/Subsidiary Parent/Subsidiary Parent/Subsidiary Parent/Subsidiary Parent/Subsidiary Parent/Subsidiary Parent/Subsidiary Parent/Subsidiary Parent/Subsidiary Affiliates Affiliates Associate Affiliates Affiliates Associate Associate Associate Affiliates Affiliates Affiliates Affiliates Affiliates

�97�

Investor	Investee	Location	Main Businesses and Products	Original investment Amount	Original investment Amount	Balances as of December 31, 2021	Balances as of December 31, 2021	Balances as of December 31, 2021	Net Income (Loss) of the Investee	Investment Income (Loss)	Note
				December 31, 2021	December 31, 2020	Shares	Percentage of Ownership	Carrying Value
APV APV APV APV APV APV APV APV Darly C Darly C Darly Darly BenQ BenQ BenQ BenQ BenQ BenQ BenQ BenQ BenQ BenQ BenQ BenQ BenQ BenQ BenQ BenQ BQP BQP BQP BQP BQP BQP BQP BQP BQP BQP BQA BQL BQL	PTT GST DFI Alpha Topview DIC Simula GSC BES Alpha BenQ Guru Holding Ltd. (GSH) BBHC BQA BQL BQHK BQE BQP Darly 2 BenQ Guru Holding Ltd. (GSH) DFN BMC BBHC BMTC MQE INF BQHK_HLD PT BenQ Teknologi Indonesia Alpha BenQ India Private Ltd. BenQ (M.E.) FZE BenQ Japan Co., Ltd. BenQ Singapore Pte Ltd. BenQ Australia Pte Ltd. BenQ Service & Marketing (M) Sdn Bhd BenQ (Thailand) Co., Ltd. BenQ Korea Co., Ltd. PT BenQ Teknologi Indonesia BenQ Vietnam Co., Ltd. BenQ Canada Corp. BenQ Mexico S. de R.L. de C.V. Joytech LLC	Taiwan Taiwan Taiwan Taiwan Taiwan Taiwan Taiwan Taiwan Taiwan Taiwan Hong Kong Cayman USA USA Hong Kong The Netherlands Taiwan Taiwan Hong Kong Taiwan Taiwan Cayman Taiwan The Netherlands Taiwan Hong Kong Indonesia Taiwan India United Arab Emirates Japan Singapore Australia Malaysia Thailand Korea Indonesia Vietnam Canada Mexico USA	Manufacture, sales, and import and export of POS terminals and peripherals R&D and sales of computer information system Manufacture and sales of industrial motherboards and components R & D, manufacture and sale of LAN/MAN, wireless, mobile & broadband, and digital multimedia products Manufacture and sales of video surveillance cameras Manufacture and sales of marine display modules Manufacture and sales of electronic material Sale of alcohol and medical disinfectant Energy service R & D, manufacture and sale of LAN/MAN, wireless, mobile & broadband, and digital multimedia products Investment and holding activity Investment and holding activity Sales of brand-name electronic products in North America markets Sales of brand-name electronic products in Latin America markets Investment and holding activity Sales of electronic products in European markets Sales of brand-name electronic products in Asia markets Investment and holding activity Investment and holding activity R&D, manufacture and sale of MLCC and keyboards R&D, manufacture and sale of optoelectronics film Investment and holding activity Manufacture and sales of medical consumables and equipments Maintenance of brand-name electronic monitors and projectors in European markets Assembly and sales of gaming electronic products Sales of brand-name electronic products in HK markets Sales of brand-name electronic products R & D, manufacture and sale of LAN/MAN, wireless, mobile & broadband, and digital multimedia products Sales of brand-name electronic products Sales of brand-name electronic products Sales of brand-name electronic products Sales of brand-name electronic products Sales of brand-name electronic products Sales of brand-name electronic products Sales of brand-name electronic products Providing administration and management service to affiliates Sales of brand-name electronic products Sales of brand-name electronic products Sales of brand-name electronic products Sales of brand-name electronic products Investment and holdingactivity	112,080 12 149,096 284,143 63,525 88,222 201,673 150,000 28,000 273,445 30,456 471,516 114,553 203,839 859,037 960,568 950,000 2,361,132 74,021 233,491 946,731 719,088 235,069 90,912 117,987 118,282 21 342 224,405 8,891 4,518 1,837 132,590 119,488 120,116 1,713 6,901 5,576 26 77,591 4,671	112,080 12 149,096 284,143 63,525 88,222 205,920 150,000 28,000 273,445 30,456 471,516 114,553 203,839 859,037 960,568 950,000 2,361,132 74,021 233,491 946,731 719,088 235,069 74,659 117,987 118,282 21 342 224,405 8,891 4,518 1,837 132,590 119,488 120,116 1,713 6,901 - 26 77,591 4,671	6,006 1 2,294 12,236 1,286 3,607 5,390 10,000 2,400 12,710 7,800 14,158 200 4,350 466,200 5,009 20,000 189,000 23,400 14,017 80,848 20,000 19,353 82 6,947 4,000 - 18 440,296 - - 500 2,191 100 12,000 10 6 - 1 3 1	8.00% 0.02% 2.00% 2.26% 4.46% 5.20% 6.74% 50.00% 24.00% 2.35% 12.50% 5.78% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 37.50% 5.01% 25.21% 8.16% 43.43% 100.00% 100.00% 100.00% 0.31% 0.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 99.69% 100.00% 100.00% 99.97% 100.00%	160,527 15 149,372 249,299 65,973 83,624 212,359 196,377 4,794 237,763 18,238 293,027 816,103 (174,869) 3,000,943 758,276 406,424 4,189,375 54,704 492,973 1,271,514 415,387 442,423 68,290 87,920 1,413,310 52 351 59,698 53,754 137,935 (6,552) 79,405 7,501 (51,392) 6,254 16,707 6,625 39,074 36,425 (139,964)	94,323 7,480 615,903 433,888 128,224 318,020 111,216 124,892 962 433,888 (30,005) 1,207,221 126,573 (135,835) 152,687 131,273 271,292 432,430 (30,005) 1,146,533 971,555 1,207,221 28,840 3,077 1,578 621,809 8,148 433,888 31,735 28,933 66,965 9,099 16,192 96 (5,810) 106 8,148 - 33,802 (215) (17,629)	- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -	Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Associate Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates

�98�

Investor	Investee	Location	Main Businesses and Products	Original investment Amount	Original investment Amount	Balances as of December 31, 2021	Balances as of December 31, 2021	Balances as of December 31, 2021	Net Income (Loss) of the Investee	Investment Income (Loss)	Note
				December 31, 2021	December 31, 2020	Shares	Percentage of Ownership	Carrying Value
BQL Joytech LLC Vividtech LLC BQmx GSH Darly 2 Darly 2 Darly 2 Darly 2 Darly 2 Darly 2 Darly 2 Darly 2 Darly 2 Darly 2 Darly 2 Darly 2 BQE BQE BQE BQE BQE BQE BQE BQE BQE BMTC BMTC BMTC BMTC BMTC BMTC BHS PTT PTT PTT PTT PTT PTT PTT PTT	Vividtech LLC Maxgen Comércio Industrial imp E Exp Ltda. Maxgen Comércio Industrial imp E Exp Ltda. BenQ Service de Mexico S. de R.L. de C.V. GST Darly C BBHC BenQ Guru Holding Ltd. (GSH) BMTC BES PTT DFI Alpha K2 DIC Topview Simula BenQ UK Limited BenQ Deutschland GmbH BenQ Benelux B.V. BenQ Austria GmbH BenQ Iberica S.L. Unipersonal BenQ Italy S.R.L BenQ France SAS BenQ Nordic A.B. BenQ LLC. Asiaconnect Highview LILY BABD BHS EASTECH NBHIT WEBEST P&J Investment Holding Co., Ltd. (B.V.I.) Partner Tech UK Corp., Ltd. Partner-Tech Europe GmbH Partner Tech Middle East FZCO Epoint Systems Pte. Ltd. PTTN PTMG	USA Brazil Brazil Mexico Taiwan Taiwan Cayman Hong Kong Taiwan Taiwan Taiwan Taiwan Taiwan Taiwan Taiwan Taiwan Taiwan UK Germany The Netherlands Australia Spain Italy France Sweden Russia Taiwan Samoa Taiwan Taiwan Taiwan Taiwan Taiwan Taiwan British Virgin Islands UK Germany United Arab Emirates Singapore Taiwan Taiwan	Investment and holding activity Sales of brand-name electronic products Sales of brand-name electronic products Providing administration and management services to affiliates R&D and sales of computer information system Investment management consulting Investment and holding activity Investment and holding activity Manufacture and sales of medical consumables and equipment Energy service Manufacture, sales, and import and export of POS terminals and peripherals Manufacture and sales of industrial motherboards and components R & D, manufacture and sale of LAN/MAN, wireless, mobile & broadband, and digital multimedia products Sale of medical consumable and equipment Manufacture and sales of marine display modules Manufacture and sales of video surveillance cameras Manufacture and sales of electronic material Sales of brand-name electronic products Sales of brand-name electronic products Sales of brand-name electronic products Sales of brand-name electronic products Sales of brand-name electronic products Sales of brand-name electronic products Sales of brand-name electronic products Sales of brand-name electronic products Providing administration and management services to affiliates Sales of medical consumables and equipment Investment and holding activity Manufacture and sales of medical consumables and equipment Manufacture and sales of medical consumables and equipment Manufacture and sales of medical consumables and equipment Manufacture and sales of medical consumables and equipment Manufacture and sales of medical consumables and equipment Sales, import and export of electronic products Investment and holding activity Sales, import and export of electronic products Sales, import and export of electronic products Sales, import and export of electronic products Software development and sales of product Software development and sales of product Software development and sales ofproduct	4,671 4,671 4,671 87 64,898 89,179 2,122,721 121,860 27,337 22,250 49,426 596,382 79,990 44,997 48,093 123,252 205,920 14,800 25,587 567 1,091 4,677 92,654 2,045 445 52 21,984 36,211 185,000 88,000 100,000 20,300 59,280 21,843 230,307 43,834 51,451 137,387 57,449 20,500 11,000	4,671 4,671 4,671 87 64,898 89,179 2,122,721 121,860 27,337 22,250 49,426 596,382 79,990 44,997 48,093 123,252 205,920 14,800 25,587 567 1,091 4,677 92,654 2,045 445 52 21,984 36,211 185,000 88,000 100,000 20,300 59,280 21,843 230,307 43,834 51,451 137,387 27,449 20,500 -	1 1 1 3 5,756 14,728 65,024 3,120 1,590 1,800 1,648 9,175 4,185 1,003 3,005 2,615 5,500 - - - - - 50 - - - 1,995 1,062 10,000 8,800 10,000 700 1,092 2,500 5,551 886 (Note 1) - 222 2,050 1,100	100.00% 50.00% 50.00% 99.97% 99.94% 54.89% 26.55% 50.00% 3.57% 18.00% 2.19% 8.01% 0.77% 5.01% 4.33% 9.10% 6.88% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 99.75% 100.00% 100.00% 88.00% 100.00% 70.00% 52.00% 100.00% 100.00% 88.60% 50.02% 99.00% 69.88% 50.62% 52.38%	(139,964) (139,964) (139,964) 3,207 79,024 249,253 1,350,646 72,938 37,275 3,596 44,048 597,810 73,744 49,857 66,422 132,686 216,669 60,603 141,115 (28,471) 61,628 84,581 34,694 (105,754) 30,415 14,530 27,397 9,843 241,114 59,367 140,676 30,511 75,819 30,288 152,295 33,625 126,153 23,668 55,232 31,052 17,961	(17,629) (35,259) (35,259) (11) 7,480 10,163 1,207,221 (30,005) 28,840 962 94,323 615,903 433,888 76,860 318,020 128,224 111,216 14,331 11,340 3,072 9,694 4,075 5,867 6,482 4,493 1,365 2,281 1,963 16,087 3,615 33,882 14,958 35,348 10,217 16,954 6,151 54,758 8,990 2,863 7,319 10,534	- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -	Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates

�99�

Investor	Investee	Location	Main Businesses and Products	Original investment Amount	Original investment Amount	Balances as of December 31, 2021	Balances as of December 31, 2021	Balances as of December 31, 2021	Net Income (Loss) of the Investee	Investment Income (Loss)	Note
				December 31, 2021	December 31, 2020	Shares	Percentage of Ownership	Carrying Value
PTT PTE PTE PTE PTME WEBEST WEBEST WEBEST P&J P&S DFI DFI DFI DFI DFI DFI DFI AEWIN AEWIN Wise Way ACE ACE Cyber South Cyber South K2 K2 DIC DIC DIC DIVA DIVA DIVA DIVA DIVA DIVA Diva Capital lnc. QUBYX Limited QUBYX Limited EASC Sysage Sysage	Partner Tech North Africa Partner Tech UK Corp., Ltd. Sloga team D.o.o. Retail Solution & System S.L. E-POS International LLC PTTN Partner Tech North Africa Partner Tech Middle East FZCO P&S Investment Holding Co., Ltd. (B.V.I.) Partner Tech USA Inc. DFI AMERICA, LLC. Yan Tong Technology Ltd. DFI Co., Ltd. Diamond Flower Information (NL) B.V. AEWIN ACE Brainstorm Wise Way Aewin Tech Inc. Bright Profit Cyber South Hong Kong Ace Pillar Enterprise Company Limited Proton Inc. Ace Tek (HK) Holding Co., Ltd. K2 Medical (Thailand) Co., Ltd. PT Frismed Hoslab Indonesia Data Image (Mauritius) Corporation DIVA DMC Components International, LLC DIVA Laboratories GmbH DIVA Laboratories U.S., LLC Panoramic Imaging Solutions Inc. Diva Capital lnc. QUBYX Limited The Linden Group Corp. Diva Holding lnc. QUBYX LTD QUBYX Software Technologies Inc Expert Alliance Smart Technology Co., Ltd. Global Intelligence Network Co., Ltd. Unisage Digital Co.,Ltd.	Morocco UK Slovenia Spain United Arab Emirates Taiwan Morocco United Arab Emirates British Virgin Islands USA USA Mauritius Japan The Netherlands Taiwan Taiwan USA Anguilla USA Hong Kong Samoa Hong Kong Samoa Hong Kong Thailand Indonesia Mauritius Taiwan Orlando, USA Germany USA Taiwan Samoa UK USA Samoa France USA Macao Taiwan Taiwan	Sales, import and export of electronic products Sales, import and export of electronic products Sales, import and export of electronic products Sales, import and export of electronic products Sales, import and export of electronic products Software development and sales of product Sales, import and export of electronic products Sales, import and export of electronic products Investment and holding activity Sales, import and export of electronic products Sales of industrial motherboards Investment and holding activity Sales of industrial motherboards Sales of industrial motherboards Manufacture and sale of industrial motherboards and component Sales of automation mechanical transmission system and component Wholesale and retail of computers and peripherals product Investment and holding activity Wholesale of computer peripheral products and software Investment and holding activity Investment and holding activity Sales of automation mechanical transmission system and component Investment and holding activity Investment and holding activity Sales of medical consumables Sales of medical consumables Investment and holding activity Manufacture and sales of medical consumables and equipment Agency sales Sales of monitor Sales of monitor Sales of monitor Investments in Mainland China Sales and software development Sales of monitor Investments in Mainland China Sales and software development Sales and software development Sales of brand-name electronic products and smart services Sales of network and information and communication hardware and software Manufacture of medical equipment	4,075 5,640 980 - 2,485 10 1 1,560 134,973 31,593 254,683 187,260 104,489 35,219 564,191 1,301,359 501,582 46,129 77,791 46,129 107,041 5,120 527,665 4,938 15,919 257,728 518,381 625,680 24,304 25,092 35,858 24,600 52,908 17,815 30,015 52,598 38 - 381 119,142 506	4,075 5,640 980 - 2,485 10 1 1,560 134,973 31,593 254,683 187,260 104,489 35,219 556,464 793,722 - 46,129 77,791 46,129 107,041 5,120 527,665 4,938 15,919 257,728 518,381 - 24,304 25,092 35,858 24,600 45,915 17,815 30,015 45,605 38 - 381 119,142 1,687	13 114 (Note 1) (Note 1) - 1 - - 4,560 1,091 1,209 6,000 6 12 30,376 53,958 233 1,500 2,560 1,500 4,669 1,200 17,744 150 - - 20,215 20,856 300 - - 2,500 - 2 - - 1 - 100 10,475 67	58.18% 11.40% 90.00% 68.00% 100.00% 0.02% - 1.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 51.38% 48.07% 35.09% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 49.00% 67.00% 100.00% 35.55% 30.00% 100.00% 100.00% 100.00% 100.00% 60.00% 19.00% 100.00% 100.00% 100.00% 100.00% 79.36% 38.01%	(138) 5,410 (14,472) 15,456 5,800 12 - 202 151,817 71,591 363,409 178,568 287,699 67,927 596,523 1,095,684 535,021 163,707 (453) 190,941 626,514 39,722 511,706 (598) 22,908 304,312 332,482 617,569 4,812 1,433 7,928 35,511 13,394 - 26,647 14,071 - - 5,483 205,502 580	- 6,151 2,113 20,451 (517) 7,319 - 8,990 16,946 15,884 4,624 7,338 10,481 13,955 44,617 147,895 248,222 76,229 (3,250) 76,229 56,442 (259) 44,403 3,661 13,852 66,329 55,383 21,855 6,348 (287) 3,421 2,709 (5,417) - 11,387 (5,395) - - (26,010) 54,169 (389)	- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -	Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Associate Affiliates Affiliates Affiliates Affiliates Associate Associate Affiliates Associate Associate Affiliates Affiliates Associate

�100�

Investor	Investee	Location	Main Businesses and Products	Original investment Amount	Original investment Amount	Balances as of December 31, 2021	Balances as of December 31, 2021	Balances as of December 31, 2021	Net Income (Loss) of the Investee	Investment Income (Loss)	Note
				December 31, 2021	December 31, 2020	Shares	Percentage of Ownership	Carrying Value
Sysage Sysage Sysage Sysage Sysage Sysage Epic Cloud Epic Cloud AdvancedTEK Statnic Topview Messoa Simula Simula Simula Simula Simula Aspire Asia Inc. Aspire Asia Inc. GSC GSC Alpha Alpha Alpha Alpha Alpha Alpha Alpha Alpha Enrich Investment Enrich Investment Enrich Investment Hitron Technologies Hitron Technologies Hitron Technologies Hitron Technologies Hitron Technologies Hitron Technologies	Epic Cloud Information Integration Co Grandsys Inc. AdvancedTEK International Corp Corex (Pty) Ltd. Statinc Company Everlasting Digital ESG Co., Ltd. Global Intelligence Network Co., Ltd. Statinc Company APEO Human Capital Services Corp. Dataa Messoa Messoa Technologies Inc. (USA) Simula Technology Corp. Simula Company Limited Aspire Asia Inc. Mcurich Inc. Action Star Technology Co.,Ltd. Aspire Electronics Corp. Simula Company Limited Bigmin Bio-Tech Company Ltd. E-Strong Medical Technology Co., Ltd. Alpha Holdings Alpha Solutions Alpha USA Alpha HK ATS Enrich Investment Hitron Technologies D-Link Asia Interactive Digital Transnet Corporation Aespula Technologies Inc. Hitron Samoa Interactive Digital Hitron Europe Hitron Americas Innoauto Technologies Hitron Vietnam	Taiwan Taiwan Taiwan South Africa Taiwan Taiwan Taiwan Taiwan Taiwan Taiwan Taiwan USA USA Hong Kong British Virgin Islands Taiwan Taiwan Samoa Hong Kong Taiwan Taiwan Cayman Japan USA Hong Kong USA Taiwan Taiwan Singapore Taiwan Taiwan Taiwan Samoa Taiwan The Netherlands USA Taiwan Vietnam	Software and data processing services Data software processing service Applications implement services Sales, import and export of electronic products Market research, marketing consultant and data processing service Sales and software development Sales of network and information and communication hardware and software Market research, marketing consultant and data processing service Implementaion of application software services Market research, marketing consultant and data processing service Sales, and import and export of video surveillance cameras Sales, and import and export of video surveillance cameras and maintenance services Sales in North America Investment and holding activity Investment and holding activity Sales of electronic products Manufacture of computer and periherals products Investment and holding activity Investment and holding activity Sale of alcohol and medical disinfectant Manufacture of alcohol and dialysate Investment and holding activity Sale of network equipment, components and technical services Sale, marketing and procurement service in USA Investment and holding activity Post-sale service Investment and holding activity Marketing on system integration and production and sales of telecommunication products Investment in manufacturing business Telecommunication and broadband network system services Operating in network communication products, provide system support services, integrated supply and import and export of network equipment Sale of network equipment, components and technical services International trade Telecommunication and broadband network system services International trade International trade Investment Production and sale of broadband telecommunications products	50,000 94,547 30,091 251,872 69,983 5,000 172 40 2,060 20,000 23,879 27,126 15,699 187,625 286,764 15,029 983,858 95,099 181,726 20,250 286,314 203,372 5,543 51,092 3,143,628 260,497 320,000 4,811,000 1,692,805 189,523 50,000 80,000 642,697 126,091 59,604 90,082 20,000 1,511,735	9,400 94,547 30,091 - - - - - - - 23,879 27,126 15,699 187,625 286,764 15,029 - 95,099 181,726 20,450 281,872 203,372 5,543 51,092 3,143,628 260,497 240,000 4,811,000 1,692,805 189,523 50,000 - 669,031 126,091 59,604 90,082 50,000 550,355	5,000 5,643 1,153 1 1,754 500 10 1 200 2,000 1,945 - 500 50,500 9,403 645 32,001 2,188 46,033 1,500 22,200 6,464 1 1,500 780,911 8,100 32,000 200 86,946 2,575 5,000 8,000 21,350 16,703 15 300 2,000 -	100.00% 21.84% 34.09% 100.00% 34.99% 29.41% 0.08% 0.02% 100.00% 100.00% 40.78% 100.00% 100.00% 52.31% 100.00% 23.33% 59.35% 95.10% 47.69% 100.00% 66.57% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 62.24% 100.00% 6.64% 100.00% 98.92% 100.00% 43.10% 100.00% 100.00% 100.00% 100.00%	27,428 105,599 35,489 286,481 86,493 4,133 172 40 2,564 18,912 2,892 22,458 30,231 150,145 151,360 947 1,008,924 14,878 136,865 58,798 244,259 (21,344) 19,408 138,491 2,257,173 167,336 232,522 3,893,949 1,765,629 115,599 24,244 76,775 578,035 542,285 19,110 201,533 3,631 1,471,906	(19,117) 32,970 18,647 39,611 (7,680) (2,948) 54,169 (7,680) 52 (1,088) 3,221 4,725 6,988 (15,884) (9,803) (8,429) 82,763 (2,343) (15,884) 40,628 73,294 2,447 244 2,436 63,150 1,544 (113) 71,582 763 260,654 (11,278) (3,225) (136,704) 260,654 38,383 54,936 (13,451) 118,353	- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -	Affiliates Associate Affiliates Affiliates Affiliates Associate Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Associate Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates

(Note 1) There was no shares as the company is a limited liability company.

(Note 2) The Company lost significant influence over AU in May 2021 and therefore reclassified the investment in AU from investments accounted for using the equity method to financial assets at fair value through other comprehensive income � non-current.

�101�

QISDA CORPORATION

Information on investments in Mainland China

For the year ended December 31, 2021

(Amounts in thousands of New Taiwan dollars and other currencies, unless specified otherwise)

Table 10

A. Qisda Corporation

1. Information on investments in Mainland China:

Investee Company Name	Main Businesses and Products	Total Amount of Paid-in Capital	Method of Investment	Accumulated Outflow of Investment from Taiwan as of January 1, 2021	Investment Flows	Investment Flows	Accumulated Outflow of Investment from Taiwan as of December 31, 2021	Net Income (Loss) of Investee	% of Ownership of Direct or Indirect Investment	Investment Income (Loss)	Carrying Value as of December 31, 2021	Accumulated Inward Remittance of Earnings as of December 31, 2021
					Outflow	Inflow
Nanjing Silvertown Health & Development Co., Ltd. (“NSHD”) Guru Systems (Suzhou) Co., Ltd. (“GSS”) Suzhou BenQ Investment Co., Ltd. (“BIC”) BenQ Hospital Management Consulting (Nanjing) Co., Ltd. (“NMHC”) Suzhou BenQ Hospital Co., Ltd. (“SMH”) Nanjing BenQ Hospital Co., Ltd. (“NMH”) ShengCheng Trading(Shanghai) Co., Ltd. (“BQsha EC2”) BenQ Technology (Shanghai) Co., Ltd. (“BQls”) BenQ Intelligent Technology (Shanghai) Co., Ltd. (“BQC_RO”) BenQ Co., Ltd. (“BQC”) Qisda Precision Industry (Suzhou) Co., Ltd. (“QCPS”) Qisda (Shanghai) Co., Ltd. (“QCSH”) Qisda Optronics (Suzhou) Co., Ltd. (“QCOS”) Qisda Electronics (Suzhou) Co., Ltd. (“QCES”) BenQ Medical (Shanghai) Co., Ltd. (“BMSH”) Qisda (Suzhou) Co., Ltd. (“QCSZ”)	Medical services R&D and sales of computer information systems Investment and holding activity Medical management consulting Medical service Medical service Sales of brand-name electronic products Sales of brand-name electronic products Sales of brand name electronic products in China market Lease of real estate Manufacture of plastic parts Manufacture of monitors Manufacture of projectors Manufacture of monitors Sale of medical consumable and equipment Manufacture of monitors and communication devices	2,048,320 (USD 74,000) 37,645 (USD 1,360) 326,624 (USD 11,800) 344,893 (USD 12,460) 1,840,720 (USD 66,500) 138,400 (USD 5,000) 2,214,400 (USD 80,000) 83,040 (USD 3,000) 27,680 (USD 1,000) 2,768 (USD 100) 5,038,175 (USD 182,015) 2,615,822 (CNY 601,975) 27,680 (USD 1,000) 830,400 (USD 30,000) 434,540 (CNY 100,000) 365,376 (USD 13,200)	(Note 12) (Note 1) (Note 9) (Note 1) (Note 1) (Note 1) (Note 11) (Note 1) (Note 1) (Note 1) (Note 1) (Note 1) (Note 1) (Note 1) (Note 10) (Note 1)	1,965,280 (USD 71,000) - 326,624 (USD 11,800) 344,893 (USD 12,460) 1,328,640 (USD 48,000) 131,480 (USD 4,750) 2,214,400 (USD 80,000) 830,400 (USD 3,000) 5,536 (USD 200) - 4,633,521 (USD 167,396) 2,463,409 (USD 88,996) 27,680 (USD 1,000) - - 268,496 (USD 9,700)	- - - - - - - - - - 553,600 (USD 20,000) - - - - -	- - - - - - - - - - - - - - - -	1,965,280 (USD 71,000) - 326,624 (USD 11,800) 344,893 (USD 12,460) 1,328,640 (USD 48,000) (Note 8) 131,480 (USD 4,750) 2,214,400 (USD 80,000) 83,040 (USD 3,000) 5,536 (USD 200) (Note 7) - 5,187,121 (USD 187,396) 2,463,409 (USD 88,996) 27,680 (USD 1,000) - (Note 12) 268,496 (USD 9,700) (Note 6)	870,704 (1,789) 210,556 431,135 (17,943) 30,975 152,643 543,369 30,978 29,815 253,123 133,603 (485) 164 (106,355) (37,456)	100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 70.05% 70.05% 70.05% 70.05% 11.03% 100.00%	870,704 (Note 5) (1,789) (Note 4) 210,556 (Note 5) 431,135 (Note 5) (17,943) (Note 4) 30,975 (Note 4) 152,643 (Note 3) 543,369 (Note 3) 30,978 (Note 4) 29,815 (Note 4) 177,313 (Note 3) 93,589 (Note 3) (340) (Note 4) 115 (Note 4) (11,731) (Note 4) (37,456) (Note 4)	10,303,433 34,548 1,707,495 4,088,528 (1,357,315) 413,234 3,007,414 1,269,869 72,849 48,951 2,318,208 698,034 16,559 588,157 128,261 (Note 16) 41,783	- - - 404,211 (USD 14,603) - - - - - - - - - - - -

�102�

Investee Company Name	Main Businesses and Products	Total Amount of Paid-in Capital	Method of Investment	Accumulated Outflow of Investment from Taiwan as of January 1, 2021	Investment Flows	Investment Flows	Accumulated Outflow of Investment from Taiwan as of December 31, 2021	Net Income (Loss) of Investee	% of Ownership of Direct or Indirect Investment	Investment Income (Loss)	Carrying Value as of December 31, 2021	Accumulated Inward Remittance of Earnings as of December 31, 2021
					Outflow	Inflow
Jiangsu Yudi Optical Co.,Ltd (“Yudi”) Shanghai Zhenglang Medical Equipment Co.,Ltd (“Zhenglang”) Wangcheng Medical Technology �Chengdu�Co., Ltd (“Wangcheng”) Shanghai Filter Technology Co.,Ltd (“Filter”) BenQ Biotech (Shanghai) Co., Ltd. (“BBC”) Guangxi Youshan Medical Technology Co., Ltd. (“Youshan”) Guigang Donghui Medical Investment Co., Ltd.	Medical services Sales o f medical consumables and equipment Sales and Manufacture of Optical Lens Medical services Manufacture and sales of medical consumables and equipment Medical services Medical services	651,810 (CNY 150,000) 26,072 (CNY 6,000) 8,691 (CNY 2,000) 198,368 (CNY 45,650) 2,384,130 (CNY 548,656) 26,072 (CNY 6,000) 341,456 (CNY 80,880)	(Note 2) (Note 14) (Note 14) (Note 14) (Note 13) (Note 14) (Note 15)	738,718 (CNY 170,000) - - - - - -	152,089 (CNY 35,000) - - - - - -	- - - - - - -	890,807 (CNY 205,000) (Note 14) (Note 14) (Note 15) (Note 14) (Note 14) (Note 13)	(99,234) 11,883 1,032 (220) (40,546) (140) 880	70.00% 38.50% 49.00% 70.00% 9.89% 35.70% 20.01%	(69,464) (Note 4) 4,575 (Note 4) 506 (Note 4) (154) (Note 4) (4,010) (Note 4) (50) (Note 4) 176	636,119 14,927 4,767 138,704 307,138 (Note 16) 9,258 536,646	- - - - - - -

(Note 1) Indirect investment in Mainland China is through a holding company established in a third country.

• (Note 2) Direct investment in Mainland China.

• (Note 3) Investment income or loss was recognized based on the audited financial statements issued by International CPA firm that has a cooperative relationship with ROC CPA firm. (Note 4) Investment income or loss was recognized based on the unaudited financial statements of the company.

• (Note 5) Investment income or loss was recognized based on the audited financial statements issued by the auditors of the company. (Note 6) The amount of GRHK reinvestments US$3,500 thousand were excluded.

• (Note 7) The amount of QCES reinvestments US$800 thousand were excluded.

• (Note 8) The amount of QCES reinvestments US$18,500 thousand were excluded. (Note 9) The investment was from the operating capital of BBM.

• (Note 10) The reinvestments were from the distribution of dividends of QLLB.

• (Note 11) The reinvestments were from the distribution of dividends of BQHK.

• (Note 12) NSHD is established by NMH's asset division.

• (Note 13) The investment was from the operating capital of NMH. (Note 14) The investment was from the operating capital of BBC. (Note 15) The investment was from the operating capital of QCES.

• (Note 16) Accounting for investments using equity method.

• (Note 17) The above amounts were translated into New Taiwan dollars at the exchange rate of US$1�NT$27.68 and CNY$1=NT$4.3454.

2. Limits on investments in Mainland China:

Accumulated Investment in Mainland China as of December 31, 2021	Investment Amounts Authorized by Investment Commission, MOEA	Upper Limit on Investment
15,237,406 (USD 518,302 and CNY 205,000)	15,852,530 (USD 572,707)	(Note 18)

• (Note 18) Since the Company has obtained the Certificate of Headquarter Operation, there is no upper limit on investment in Mainland China.

• Significant transactions with investee companies in Mainland China:

The transactions between parent and investee companies in Mainland China have been eliminated when preparing the consolidated financial statements. Please refer to section “Information on Significant Transactions” for detail description.

�103�

B. BenQ Material Corporation

1. Information on investments in Mainland China:

Investee Company Name	Main Businesses and Products	Total Amount of Paid-in Capital	Method of Investment	Accumulated Outflow of Investment from Taiwan as of January 1, 2021	Investment Flows	Investment Flows	Accumulated Outflow of Investment from Taiwan as of December 31, 2021	Net Income (Loss) of Investee	% of Ownership of Direct or Indirect Investment	Investment Income (Loss)	Carrying Value as of December 31, 2021	Accumulated Inward Remittance of Earnings as of December 31, 2021
					Outflow	Inflow
Suzhou Sigma Medical Supplies Co., Ltd. (“SGS”) BenQ Materials Medical Supplies (Suzhou) Co., Ltd. (“BMM”) BenQ Materials (Wuhu) Co., Ltd. Daxon Biomedical (Suzhou) Co., Ltd. (“DTB”) BenQ Material (Suzhou) Co., Ltd. (“BMS”)	Manufacture and sales of medical consumables and equipment Manufacture and sales of medical consumables and equipment Manufacture and sales of optoelectronics and cosmetics Service and sales of optoelectronics and medical consumables Manufacture of optoelectronics	802,720 (USD29,000) 47,799 (CNY11,000) 347,632 (CNY80,000) 65,181 (CNY15,000) 44,067 (USD1,592)	(Note 3) (Note 4) (Note 1) (Note 4) (Note 1)	802,720 (USD29,000) - 173,816 (CNY40,000) - 44,067 (USD1,592)	- - - - -	- - - - -	802,720 (USD29,000) - 173,816 (CNY40,000) (Note 5) 44,067 (USD1,592) -	39,145 10,152 132,258 (2,873) (4,546)	100.00% 100.00% 100.00% 100.00% 100.00%	39,145 (Note 2) 10,152 (Note 2) 127,500 (Note 2) (2,873) (Note 2) (4,546) (Note 2)	1,938,681 1,862 (283,235) 54,100 25,752	- - - - -

1. Limits on investments in Mainland China:

2. Limits on investments in Mainland China:
Investee Company Name	Accumulated Investment in Mainland China as of December 31, 2021	Investment Amounts Authorized by Investment Commission, MOEA	Upper Limit on Investment
BMC	976,536 (USD29,000 and CNY40,000)	1,089,299 (USD29,000 and CNY65,950)	(Note 6)
SGM	44,067 (USD1,592)	44,067 (USD1,592)	80,000

(Note 1)[Indirect investment in Mainland China is through a holding company established in a third country.]

(Note 2)[Investment income or loss was recognized based on the audited financial statements issued by the auditors of BMC.]

(Note 3)[Direct investment in Mainland China.]

(Note 4)[The reinvestments were from the distribution of dividends of BMLB.]

(Note 5)[The amount of BMLB reinvestments CNY$10,950 thousand were excluded.]

(Note 6)[Since BenQ Material Corporation has obtained the Certificate of Headquarter Operation, there is no upper limit on investment in Mainland China.]

(Note 7)[The above amounts were translated into New Taiwan dollars at the exchange rate of US$1][�][NT$27.68 and CNY$1=NT$4.3454.]

1. Significant transactions with investee companies in Mainland China:

The transactions between BMC and its investee companies in Mainland China have been eliminated when preparing the consolidated financial statements. Please refer to section “Information on Significant Transactions” for detail description.

�104�

C. BenQ Medical Technology Corp.

1. Information on investments in Mainland China

Investee Company Name	Main Businesses and Products	Total Amount of Paid-in Capital	Method of Investment	Accumulated Outflow of Investment from Taiwan as of January 1, 2021	Investment Flows	Investment Flows	Accumulated Outflow of Investment from Taiwan as of December 31, 2021	Net Income (Loss) of Investee	% of Ownership of Direct or Indirect Investment	Investment Income (Loss)	Carrying Value as of December 31, 2021	Accumulated Inward Remittance of Earnings as of December 31, 2021
					Outflow	Inflow
TDX Medical Technology (Jiangsu) Co., Ltd. Suzhou Trident Original Medical Technology Co., Ltd. LILY Medical (Suzhou) Co., Ltd. (“ALS”) BenQ Medical Technology (Shanghai) Ltd. (“BMTS”)	Sales of medical consumables and equipment Sales of medical consumables and equipment Sales of medical consumables and equipment Agency of international and entrepot trade business	27,680 ( USD 1,000) 5,813 ( USD 210) 86,900 (CNY 20,000) 8,690 (CNY 2,000)	(Note 2) (Note 3) (Note 2) (Note 1)	27,680 ( USD 1,000) 5,813 ( USD 210) 34,760 (CNY 8,000) -	- - - -	- - - -	27,680 ( USD 1,000) 5,813 ( USD 210) 34,760 (CNY 8,000) -	3,987 1,995 4,479 (518)	22.00% 100.00% 40.00% 100.00%	1,995 (518) 1,792 714	12,893 2,280 31,116 7,696	- - - -

• (Note 1) Indirect investment in Mainland China is through a holding company established in a third country.

• (Note 2) Direct investment in Mainland China.

(Note 3) Invested in Mainland China is through TDX Medical Technology (Jiangsu) Co., Ltd.

• (Note 4) There was no shares as the investee company is a limited liability company.

(Note 5) The above amounts were translated into New Taiwan dollars at the exchange rate of US$1�NT$27.68 and CNY$1=NT$4.3454.

2. Limits on investments in Mainland China:

Investee Company Name	Accumulated Investment in Mainland China as of December 31, 2021	Investment Amounts Authorized by Investment Commission, MOEA	Upper Limit on Investment
BMTC	(USD 1,000 and CNY 8,000) 62,440	(USD 2,827) 78,251	622,847
LILY	5,813 (USD 210)	5,813 (USD 210)	110,007

1. Significant transactions with investee companies in Mainland China:

The transactions between BMTC and its investee companies in Mainland China have been eliminated when preparing the consolidated financial statements. Please refer to section “Information on Significant Transactions” for detail description.

�105�

D. Partner Tech Corp.

1. Information on investments in Mainland China

Investee Company Name	Main Businesses and Products	Total Amount of Paid-in Capital	Method of Investment	Accumulated Outflow of Investment from Taiwan as of January 1, 2021	Investment Flows	Investment Flows	Accumulated Outflow of Investment from Taiwan as of December 31, 2021	Net Income (Loss) of Investee	% of Ownership of Direct or Indirect Investment	Investment Income (Loss)	Carrying Value as of December 31, 2021	Accumulated Inward Remittance of Earnings as of December 31, 2021
					Outflow	Inflow
Partner Tech (Shanghai) Co., Ltd. (“PTCM”)	Sales, import and export of electronic products	96,880 ( USD 3,500)	(Note 1)	96,880 ( USD 3,500)	-	-	96,880 ( USD 3,500)	1,040	100.00%	1,040 (Note 2)	76,620	-

(Note 1) Indirect investment in Mainland China is through a holding company established in a third country.

(Note 2) Investment income or loss was recognized based on the audited financial statements issued by International CPA firm that has a cooperative relationship with ROC CPA firm.

(Note 3) The above amounts were translated into New Taiwan dollars at the exchange rate of US$1 � NT$27.68.

2. Limits on investments in Mainland China:

Investee Company Name	Accumulated Investment in Mainland China as of December 31, 2021	Investment Amounts Authorized by Investment Commission, MOEA	Upper Limit on Investment
PTT	96,880 (USD 3,500)	191,158 (USD 6,906)	604,155

3. Significant transactions with investee companies in Mainland China:

The transactions between PTT and its investee companies in Mainland China have been eliminated when preparing the consolidated financial statements. Please refer to section “Information on Significant Transactions” for detail description.

�106�

E. DFI Inc.

1. Information on investments in Mainland China

Name Investee Company	Main Businesses and Products	Total Amount of Paid-in Capital	Method of Investment	Accumulated Outflow of Investment from Taiwan as of January 1, 2021	Investment Flows	Investment Flows	Accumulated Outflow of Investment from Taiwan as of December 31, 2021	Net Income (Loss) of Investee	% of Ownership of Direct or Indirect Investment	Investment Income (Loss)	Carrying Value as of December 31, 2021	Accumulated Inward Remittance of Earnings as of December 31, 2021
					Outflow	Inflow
Yan Ying Hao Trading (ShenZhen) Co., Ltd. (“DYTH”) Yan Tong Infotech (Dongguan) Co., Ltd. (“DYTI”)	Wholesale, import and export of industrial motherboards and component Manufacture and sales of industrial motherboards and component	69,200 (USD2,500) 13,840 (USD500)	(Note 1) (Note 1)	- -	- -	- -	- -	- -	100.00% 100.00%	(1,601) (Note 2) 11,090 (Note 2)	51,498 46,514	33,306 -

2. Limits on investments in Mainland China:

2. Limits on investments in Mainland China:
Investee Company Name	Accumulated Investment in Mainland China as of December 31, 2021	Investment Amounts Authorized by Investment Commission, MOEA	Upper Limit on Investment
DFI	- (Note 3)	57,713 (USD 2,085) (Note 5 and 6)	3,302,288 (Note 4)

(Note 1) Indirect investment in Mainland China is through a holding company established in a third country.

(Note 2) Investment income or loss was recognized based on the unaudited financial statements of the Company.

(Note 3) The reinvestments and authorized amount of DFI's subsidiaries is excluded from DFI's accumulated investment amounts and the investment amounts authorized by Investment Commission, MOEA. (Note 4) Pursuant to “Principle of Investment or Technical Cooperation in Mainland China”, investment amounts in Mainland China shall not exceed the 60% net worth of the company.

(Note 5) The investment amount of Dongguan Ri Tong Trading Co., Ltd. that has been liquidated was approved by Investment Commission, MOEA in August 2014 and had been deducted in the investment amount. (Note 6) The earnings that has been remitted to DFI by DYTI was approved by the Investment Commission of the MOEA in February 2017 and had been deducted in the investment amount. (Note 7) The above amounts were translated into New Taiwan dollars at the exchange rate of US$1�NT$27.68.

3. Significant transactions with investee companies in Mainland China:

The transactions between DFI and its investee companies in Mainland China have been eliminated when preparing the consolidated financial statements. Please refer to section “Information on Significant Transactions” for detail description.

�107�

F. Aewin Technologies Co., Ltd.

1. Information on investments in Mainland China

Investee Company Name	Main Businesses and Products	Total Amount of Paid-in Capital	Method of Investment	Accumulated Outflow of Investment from Taiwan as of January 1, 2021	Investment Flows	Investment Flows	Accumulated Outflow of Investment from Taiwan as of December 31, 2021	Net Income (Loss) of Investee	% of Ownership of Direct or Indirect Investment	Investment Income (Loss)	Carrying Value as of December 31, 2021	Accumulated Inward Remittance of Earnings as of December 31, 2021
					Outflow	Inflow
Aewin (Shenzhen) Technologies Co., Ltd. Aewin Beijing Technologies Co., Ltd.	Wholesale of computer peripheral products and software Wholesale of computer peripheral products and software	46,129 13,062	(Note 2) (Note 1)	46,129 -	- -	- -	46,129 -	(5,311) 76,229	100.00% 100.00%	76,229 (Note 3) (5,311) (Note 3)	190,936 (1,829)	- -

2. Limits on investments in Mainland China:

2. Limits on investments in Mainland China:
Investee Company Name	Accumulated Investment in Mainland China as of December 31, 2021	Investment Amounts Authorized by Investment Commission, MOEA	Upper Limit on Investment
AEWIN	46,129	55,360 (USD 2,000)	695,676 (Note 4)

(Note 1) Indirect investment in Mainland China is through a holding company established in a third country.

(Note 2) Invested in Mainland China through Aewin Beijing Technologies Co., Ltd.

(Note 3) Investment income or loss was recognized based on the audited financial statements by the auditors of AEWIN. (Note 4) Pursuant to “Principle of Investment or Technical Cooperation in Mainland China”, investment amounts in Mainland China shall not exceed the 60% net worth of the company.

(Note 5) The above amounts were translated into New Taiwan dollars at the exchange rate of US$1�NT$27.68.

3. Significant transactions with investee companies in Mainland China:

The transactions between AEWIN and its investee companies in Mainland China have been eliminated when preparing the consolidated financial statements. Please refer to section “Information on Significant Transactions” for detail description.

�108�

G. Ace Pillar Co., Ltd.

1. Information on investments in Mainland China

Investee Company Name	Main Businesses and Products	Total Amount of Paid-in Capital	Method of Investment	Accumulated Outflow of Investment from Taiwan as of January 1, 2021	Investment Flows	Investment Flows	Accumulated Outflow of Investment from Taiwan as of December 31, 2021	Net Income (Loss) of Investee	% of Ownership of Direct or Indirect Investment	Investment Income (Loss)	Carrying Value as of December 31, 2021	Accumulated Inward Remittance of Earnings as of December 31, 2021
					Outflow	Inflow
Xuchang Ace AI Equipment Co., Ltd. Suzhou Super Pillar Automation Equipment Co., Ltd. Advancedtek Ace (TJ) Inc. Grace Transmission (Tianjin) Co., Ltd. Tianjin Ace Pillar Co., Ltd.	Wholesale of industrial robot and component Manufacture of automation mechanical transmission system and component Electronic system integration Manufacture of automation mechanical transmission system and component Sales of automation mechanical transmission system and component	977,021 (USD 35,297) 7,257 (RMB 1,670) 8,304 (USD 300) 40,136 (USD 1,450) 8,304 (USD 300)	(Note 1) (Note 1) (Note 1) (Note 1) (Note 1)	53,976 (USD 1,950) 4,429 (USD 160) 4,152 (USD 150) - (Note 3) - (Note 3)	- - - - -	- - - - -	53,976 (USD 1,950) 4,429 (USD 160) 4,152 (USD 150) - (Note 3) - (Note 3)	(219) 3,662 10,511 (711) 56,121	100.00% 100.00% 100.00% 100.00% 100.00%	56,121 (Note 2) (219) (Note 2) 3,662 (Note 2) 10,511 (Note 2) (711) (Note 2)	611,067 7,018 (622) 98,569 2,156	125,533 - - - -

2. Limits on investments in Mainland China:

2. Limits on investments in Mainland China:
Investee Company Name	Accumulated Investment in Mainland China as of December 31, 2021	Investment Amounts Authorized by Investment Commission, MOEA	Upper Limit on Investment
ACE	141,694 (USD 5,119)	141,694 (USD 5,119)	1,231,856 (Note 4)

(Note 1) Indirect investment in Mainland China is through a holding company established in a third country.

(Note 2) Investment income or loss was recognized based on the audited financial statements by the auditors of ACE.

(Note 3) Established by Cyber South's reinvestment.

(Note 4) Pursuant to “Principle of Investment or Technical Cooperation in Mainland China”, investment amounts in Mainland China shall not exceed the 60% net worth of the company.

(Note 5) The above amounts were translated into New Taiwan dollars at the exchange rate of US$1�NT$27.68 and CNY$1=NT$4.3454.

(Note 6) The dissolution of Xuchang Ace AI Equipment Co., Ltd. was approved by the Board of Directors on November 23, 2021, the liquidation procedures is still in process.

3. Significant transactions with investee companies in Mainland China:

The transactions between ACE and its investee companies in Mainland China have been eliminated when preparing the consolidated financial statements. Please refer to section “Information on Significant Transactions”for detail description.

�109�

H. Data Image Corporation

1. Information on investments in Mainland China

Investee Company Name	Main Businesses and Products	Total Amount of Paid-in Capital	Method of Investment	Accumulated Outflow of Investment from Taiwan as of January 1, 2021	Investment Flows	Investment Flows	Accumulated Outflow of Investment from Taiwan as of December 31, 2021	Net Income (Loss) of Investee	% of Ownership of Direct or Indirect Investment	Investment Income (Loss) (Note 2)	Carrying Value as of December 31, 2021	Accumulated Inward Remittance of Earnings as of December 31, 2021
					Outflow	Inflow
Data Image (Suzhou) Corporation	Manufacture and sales of LCD	451,184 (USD16,300)	(Note 1)	433,303 (USD15,654)	-	-	433,303 (USD15,654)	55,677	100.00%	55,677	332,482	-

2. Limits on investments in Mainland China:

Accumulated Investment in Mainland China as of December 31, 2021	Investment Amounts Authorized by Investment Commission, MOEA	Upper Limit on Investment
USD 15,654	USD 16,952	802,867 (Note 3)

(Note 1) Indirect investment in Mainland China is through a holding company established in a third country.

(Note 2) Investment income or loss was recognized based on the audited financial statements issued by the auditors of DIC.

(Note 3) Investment amounts in Mainland China shall not exceed the 60% net worth of DIC according to MOEA letter No. 09704604680.

(Note 4) The above amounts were translated into New Taiwan dollars at the exchange rate of US$1�NT$27.68.

3. Significant transactions with investee companies in Mainland China:

The transactions between DIC and its investee companies in Mainland China have been eliminated when preparing the consolidated financial statements. Please refer to section “Information on Significant Transactions” for detail description.

�110�

I.DIVA Laboratories. Ltd.

1. Information on investments in Mainland China

Investee Company Name	Main Businesses and Products	Total Amount of Paid-in Capital	Method of Investment	Accumulated Outflow of Investment from Taiwan as of January 1, 2021	Investment Flows	Investment Flows	Accumulated Outflow of Investment from Taiwan as of December 31, 2021	Net Income (Loss) of Investee	% of Ownership of Direct or Indirect Investment	Investment Income (Loss)	Carrying Value as of December 31, 2021	Accumulated Inward Remittance of Earnings as of December 31, 2021
					Outflow	Inflow
Suzhou Diva Lab. Inc.	Wholesale and import and export of medical equipment	47,748 (USD1,725)	(Note 1)	40,828 (USD1,475)	6,920 (USD250)	-	47,748 (USD1,725)	(5,368)	100.00%	(5,368)	14,009	-

2. Limits on investments in Mainland China:

Accumulated Investment in Mainland China as of December 31, 2021	Investment Amounts Authorized by Investment Commission, MOEA	Upper Limit on Investment
52,643	USD 2,000 (Note 2)	591,853

• (Note 1) Indirect investment in Mainland China is through a holding company established in a third country.

• (Note 2) The accumulated investments is US$1,725 thousand and the investment not yet executed is US$275 thousand as of December 31,2021.

• (Note 3) The above amounts were translated into New Taiwan dollars at the exchange rate of US$1�NT$27.68.

3. Significant transactions with investee companies in Mainland China:

The transactions between DIVA and its investee companies in Mainland China have been eliminated when preparing the consolidated financial statements. Please refer to section “Information on Significant Transactions” for detail description.

�111�

J. K2 International Medica Inc.

1. Information on investments in Mainland China

Investee Company Name	Main Businesses and Products	Total Amount of Paid-in Capital	Method of Investment	Accumulated Outflow of Investment from Taiwan as of January 1, 2021	Investment Flows	Investment Flows	Accumulated Outflow of Investment from Taiwan as of December 31, 2021	Net Income (Loss) of Investee	% of Ownership of Direct or Indirect Investment	Investment Income (Loss) (Note 2)	Carrying Value as of December 31, 2021	Accumulated Inward Remittance of Earnings as of December 31, 2021
					Outflow	Inflow
K2 (Shanghai) International Medical Inc.	Sales of medical consumables	34,600 (USD 1,250)	(Note 1)	22,144 ( USD 800)	31,361 ( USD 1,133)	-	53,505 ( USD 1,933)	7,157	100.00%	5,211	69,254	-

2. Limits on investments in Mainland China:

2. Limits on investments in Mainland China:
Accumulated Investment in Mainland China as of December 31, 2021	Investment Amounts Authorized by Investment Commission, MOEA	Upper Limit on Investment
(USD 1,933) 53,505	(USD 800) 22,144	(Note 3) 346,669

(Note 1) Direct investment in Mainland China.

(Note 2) Investment income or loss was recognized based on the unaudited financial statements of the company.

(Note 3) Investment amounts in Mainland China shall not exceed the 60% net worth of K2 according to MOEA letter No. 09704604680.

(Note 4) The above amounts were translated into New Taiwan dollars at the exchange rate of US$1�NT$27.68.

3. Significant transactions with investee companies in Mainland China:

The transactions between K2 and its investee companies in Mainland China have been eliminated when preparing the consolidated financial statements. Please refer to section “Information on Significant Transactions” for detail description.

�112�

K. Simula Technology Inc.

1. Information on investments in Mainland China

Investee Company Name	Main Businesses and Products	Total Amount of Paid-in Capital	Method of Investment	Accumulated Outflow of Investment from Taiwan as of January 1, 2021	Investment Flows	Investment Flows	Accumulated Outflow of Investment from Taiwan as of December 31, 2021	Net Income (Loss) of Investee	% of Ownership of Direct or Indirect Investment	Investment Income (Loss)	Carrying Value as of December 31, 2021	Accumulated Inward Remittance of Earnings as of December 31, 2021
					Outflow	Inflow
Opti Cloud Technologies, Inc. Simula Technology (ShenZhen) Co., Ltd.	Development of High-speed optical transmission cable and module product technology Manufacture of electronic connector, socket and plastic hardware	191,437 137,336	(Note 1) (Note 1)	141,375 95,099	- -	- -	141,375 95,099	(4,354) 31,991	51.18% 100.00%	31,991 (Note 2) (2,228) (Note 2)	194,272 14,873	- -

2. Limits on investments in Mainland China:

2. Limits on investments in Mainland China:
Investee Company Name	Accumulated Investment in Mainland China as of December 31, 2021	Investment Amounts Authorized by Investment Commission, MOEA	Upper Limit on Investment
Simula	257,755	307,817	1,338,171

(Note 1) Indirect investment in Mainland China is through a holding company established in a third country. (Note 2) Investment income or loss was recognized based on the audited financial statements by the auditors of Simula.

3. Significant transactions with investee companies in Mainland China:

The transactions between Simula and its investee companies in Mainland China have been eliminated when preparing the consolidated financial statements. Please refer to section “Information on Significant Transactions” for detail description.

�113�

L.Alpha Networks Inc.

1. Information on investments in Mainland China

Investee Company Name	Main Businesses and Products	Total Amount of Paid-in Capital	Method of Investment	Accumulated Outflow of Investment from Taiwan as of January 1, 2021	Investment Flows	Investment Flows	Accumulated Outflow of Investment from Taiwan as of December 31, 2021	Net Income (Loss) of Investee	% of Ownership of Direct or Indirect Investment	Investment Income (Loss) (Note 2)	Carrying Value as of December 31, 2021	Accumulated Inward Remittance of Earnings as of December 31, 2021
					Outflow	Inflow
Alpha Networks (Changshu) Co., Ltd. Mirac Networks (Dongguan) Co.,Ltd. Alpha Networks (Dongguan) Co., Ltd. Alpha Networks (Chengdu) Co.,Ltd.	Production and sale of network products Production and sale of network products Production and sale of network products Research and development of network products	420,426 787,496 307,326 1,925,920	(Note 1) (Note 1) (Note 1) (Note 1)	420,426 741,084 307,326 1,925,920	- - - -	- - - -	420,426 741,084 (Note 6) 307,326 1,925,920	111,028 5,173 (15,378) 12,581	100.00% 100.00% 100.00% 100.00%	12,581 (15,378) 5,173 111,028	574,686 1,034,891 303,307 1,347,371	- - - -
Alpha 3,261,784 (Note 3�4and 7) 4,123,685 (Note 5) Investee Company Name Accumulated Investment in Mainland China as of December 31, 2021 Investment Amounts Authorized by Investment Commission, MOEA Upper Limit on Investment 2. Limits on investments in Mainland China:
Investee Company Name		Accumulated Investment in Mainland China as of December 31, 2021		Investment Amounts Authorized by Investment Commission, MOEA			Upper Limit on Investment
Alpha		3,261,784 (Note 3�4and 7)		4,123,685			(Note 5)

(Note 1) Indirect investment in Mainland China is through a holding company established in a third country.

(Note 2) Investment income or loss was recognized based on the audited financial statements by the auditors of Alpha.

(Note 3) Accumulated investments in Alpha Dongguan did not include the previously invested by D-Link Corporation HKD69,387 thousand (equivalent to approximately $303,055 thousand).

(Note 4) Alpha indirectly investment the subsidiary Tongying Trading (Shenzhen) Co., Ltd., has liquidated all rights and obligations in March 2008 and cancelled the registration.Accumulated outflow of $9,828 thousand in Tongying Trading (Shenzhen) Co., Ltd., less the remittance amount of $4,367 thousand equals $5,461 thousand. It is still necessary to include in the accumulated investment amount by the principle of Investment Commission, MOEA.

(Note 5) As Alpha has obtained the certificate No. 10820415320 of being qualified for operating headquarters issued by Ministry of Economic Affairs on June, 11 2019, the upper limit on investment in mainland China pursuant to “Principle of investment or Technical Cooperation in Mainland China”issued by Investment Commission, MOEA on August, 29, 2008 is not applicable.

(Note 6) The investment of $46,412 thousand is from the operating capital of D-Link Asia, so the accumulated investment amount from Taiwan is excluded at the end of the period.

(Note 7) Alpha indirectly investment the subsidiary Mingzhen (Changshu) has liquidated all rights and obligations on July 23, 2018 and cancelled the registration. Accumulated outflow of $164,622 thousand is still necessary to include in the accumulated investment amount by the principle of Investment Commission, MOEA.

1. Significant transactions with investee companies in Mainland China:

The transactions between Alpha and its investee companies in Mainland China have been eliminated when preparing the consolidated financial statements. Please refer to section “Information on Significant Transactions” for detail description.

�114�

M.Hitron Technologies Inc.

1. Information on investments in Mainland China

Investee Company Name	Main Businesses and Products	Total Amount of Paid-in Capital	Method of Investment	Accumulated Outflow of Investment from Taiwan as of January 1, 2021	Investment Flows	Investment Flows	Accumulated Outflow of Investment from Taiwan as of December 31, 2021	Net Income (Loss) of Investee	% of Ownership of Direct or Indirect Investment	Investment Income (Loss) (Note 2)	Carrying Value as of December 31, 2021	Accumulated Inward Remittance of Earnings as of December 31, 2021
					Outflow	Inflow
Hwa Chi Technologies Jietech Suzhou Hitron Suzhou	Technical consultation on electronic communication, technology research and Sale of broadband network products and related services Production and sale of broadband telecommunications products	641,763 31,139 5,814	(Note 1) (Note 1) (Note 1)	641,763 57,473 12,048	- - -	26,334 - -	641,763 31,139 12,048	1,771 (422) (136,281)	100.00% (Note 4) 100.00% (Note 4) 43.10% (Note 3 and 4)	(136,281) (422) 763	587,235 3,713 6,532	- - 21,314
~~d~~ ~~l~~ ~~i~~

2. Limits on investments in Mainland China:

2. Limits on investments in Mainland China:
Investee Company Name	Accumulated Investment in Mainland China as of December 31, 2021	Investment Amounts Authorized by Investment Commission, MOEA	Upper Limit on Investment
Hitron Technologies	684,950	684,950	2,817,973

(Note 1) Indirect investment in Mainland China is through a holding company established in a third country.

(Note 2) Investment income or loss was recognized based on the audited financial statements by the auditors of Hitron Technologies.

(Note 3) Hwa Chi is a China based investment company which invested Hitron (Samoa) through Alpha, however, Hwa Chi has been 100% owned by Interactive Digital due to the Group's restructuring decision resolved in year 2012. (Note 4) This refers to the direct or indirect shares holding by Hitron technologies.

3. Significant transactions with investee companies in Mainland China:

The transactions between Hitron Technologies and its investee companies in Mainland China have been eliminated when preparing the consolidated financial statements. Please refer to section “Information on Significant Transactions” for detail description.

�115�

N.Topview Optronics Corporation

1. Information on investments in Mainland China

Investee Company Name	Main Businesses and Products	Total Amount of Paid-in Capital	Method of Investment	Accumulated Outflow of Investment from Taiwan as of January 1, 2021	Investment Flows	Investment Flows	Accumulated Outflow of Investment from Taiwan as of December 31, 2021	Net Income (Loss) of Investee	% of Ownership of Direct or Indirect Investment	Investment Income (Loss)	Carrying Value as of December 31, 2021	Accumulated Inward Remittance of Earnings as of December 31, 2021
					Outflow	Inflow
-	-	-	-	-	-	-	-	-	-	-	-	-

2. Limits on investments in Mainland China:

Investee Company Name	Accumulated Investment in Mainland China as of December 31, 2021 (Note 1)	Investment Amounts Authorized by Investment Commission, MOEA (Note1)	Upper Limit on Investment (Note 2)
Topview	5,038 (USD 182)	(USD 182) 5,038	672,941

• (Note 1) The amount USD $182 thousands is the authorized amount for the liquidated investee in the previous year, which the cacellation has not been applied

(Note 2)[Pursuant to “Principle of Investment or Technical Cooperation in Mainland China”, investment amounts in Mainland China shall not exceed the 60% net worth of the company.]

(Note 3) The above amounts were translated into New Taiwan dollars at the exchange rate of US$1�NT$27.68.

3. Significant transactions with investee companies in Mainland China:

The transactions between Topview and its investee companies in Mainland China have been eliminated when preparing the consolidated financial statements. Please refer to section “Information on Significant Transactions ” for detail description.

�116�

117

Qisda Corporation

Statement of Cash and Cash Equivalents

December 31, 2021

(Expressed in Thousands of New Taiwan Dollars)

Items	Description		Amount
Demand deposits and checking accounts		$	235,425
Foreign currency deposits (note)	USD：18,709thousand		517,865
	AUD：821thousand		16,488
	Others		24,816
		$	794,594

(note) Foreign currency deposits were translated at the spot exchange rate on December 31, 2021 as follows: USD: NTD=1：27.68

AUD: NTD=1：20.085

(Continued)

118

Qisda Corporation

Statement of Notes and Accounts Receivable

December 31, 2021

(Expressed in Thousands of New Taiwan Dollars)

Client Name	Amount	Amount
Customer A	$	1,322,072
Customer B		1,604,811
Customer C		783,145
Customer D		484,542
Customer E		369,245
Others (Note)		2,814,451
		7,378,266
Less: loss allowance		(42,731)
	$	7,335,535

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

(Continued)

119

Qisda Corporation

Statement of Inventories

December 31, 2021

(Expressed in Thousands of New Taiwan Dollars)

Item Raw materials Work in progress Finished goods Inventories in transit	Amount Carrying amount (Note) Net realizable value Note $ 293,553 360,590 Net realizable value 62,979 67,765 Net realizable value 5,108,205 5,127,394 Net realizable value 407,644 411,168 Net realizable value $ 5,872,381 5,966,917
	Carrying amount (Note) $ 293,553 62,979 5,108,205 407,644 $ 5,872,381

Note: Provision of inventory obsolescence has been deducted.

Statement of Other Current Assets

Item		Amount
Prepaid income tax	$	67,829
Excess business tax paid		27,336
Prepayment for purchase		21,954
Others		39,638
	$	156,757

(Continued)

120

Qisda Corporation

Statement of Changes in Financial Assets at Fair Value through Other Comprehensive Income – Non-current

For the year ended December 31, 2021

(Expressed in Thousands of New Taiwan Dollars/Shares)

Name Listed stocks－AU Optronics Corp. (“AU”) Over-the-counter (OTC)stocks－APLEX Technology, Inc.	Balance as of January 1, 2021 Addition Share Amount Share Amount - $ - 663,599(Note) 16,059,086 1,388 37,438 - - $ 37,438 16,059,086	Addition	Addition		Decrease Share Amount - - - - -	Unrealized Gain (Loss) (862,678) 19,866 (842,812)	Balance as of December 31, 2021 Share Amount Collateral 663,599 15,196,408 - 1,388 57,304 - 15,253,712
	Share - 1,388		Amount		Share - -		Share 663,599 1,388
			16,059,086 -
			16,059,086

Note: The investment was reclassified from the investments accounted for using the equity method.

(Continued)

121

Qisda Corporation

Statement of Other Financial Assets—Non-current

December 31, 2021

(Expressed in Thousands of New Taiwan Dollars)

Item Amount Refundable Deposits $ 39,994 Restricted Bank Deposits of Repatriated Offshore Funds 236,906 Total $ 276,900

Statement of Other Non-current Assets

Item		Amount
Deferred cost-issuance cost from syndicated loan	$	27,333

122

Qisda Corporation

Statement of Changes in Investments Accounted for Using the Equity Method

For the year ended December 31, 2021

(Expressed in Thousands of New Taiwan Dollars / Shares)

Name of Investee	Balance as o 20	f January 1, 21	Additio	n	(Note 1)	Decrease	(Note 2)	(Note 2)		Investment Income (Loss)		Other adjustments (Note 3)	Balance	as of Decembe	r	31, 2021	Market Value Val	or Net Assets ue Total Amount Collateral
													Share	Percentage of Ownership		Amount	Unit Price (in dollars)
	Share	Amount	Share		Amount	Share		Amount
AU 663,599 $ 12,701,500 - - - BenQ 539,662 9,321,301 - - - QLLB 114,250 13,209,029 - - - DFN 58,005 1,904,389 - - - APV 153,258 2,560,268 - - - BBHC 47,400 749,927 - - - QLPG 50,000 296,858 - - - Darly 6,000 148,326 - - - BMC 43,659 588,330 - - - QJTO - 52,610 - - - QALA 1,000 43,515 - - - PTT 43,577 1,276,354 - - - DFI 51,610 3,059,763 - - - BDT 28,000 114,532 - - - QTOS 100 1,011 - - - Q.S.Control Corp. 6,000 56,557 - - - Alpha 295,163 7,828,382 634 20,867 - K2 6,997 222,880 - - - DIC 20,000 306,763 - - - EASC 1 78,905 - - - Sysage 66,000 1,856,785 30,841 1,387,856 - Topview 5,750 199,172 - - - QVH - 832,065 - 139,300 - BBC - 682,207 - 151,371 - SIMULA 30,000 619,479 - - - GSC 10,000 236,864 - - - 58,947,772 1,699,394 Less: Adjustments of unrealized profits and losses resulting from transactions with subsidiaries and associates (195,488) - $ 58,752,284 1,699,394 (Note 1) Additions is the increase in investment by cash. (Note 2) Decrease is due to the cash dividend from the investee. (Note 3) Other adjustments Foreign currency translation differences $ (309,370) Unrealized gain (loss) from investments in equity instruments measured at FVOCI 1,962,954 Change in capital surplus (35,191) Difference between consideration and carrying amount arising from acquisition or disposal of shares of subsidiaries (retained earnings) (635,587) Remeasurements of defined benefit plans (21,908) Gain on disposal of investment 1,979,741 Reclassification to financial assests measured at FVOCI (16,059,086) $ (13,118,447)								- (1,249,688) - (145,012) (106,788) - (390,545) - (30,562) - - (17,431) (154,829) - (9) - (295,797) (13,994) (30,000) - (242,103) (11,500) - - (15,000) (4,000) (2,707,258) - (2,707,258)		1,255,866 1,783,670 1,568,923 237,533 332,537 233,624 433,546 64,375 52,892 2,134 8,524 20,707 13,585 (41,256) 5 2,505 142,732 25,191 91,932 6,731 252,082 26,066 (236,565) (68,042) 26,079 58,360 6,293,736 303,439 6,597,175		(13,957,366) 594,383 (209,822) 43,555 1,122,547 1,839 (25,039) 2,723 (3,610) (1,022) (1,147) 18,604 (85,848) - - - (6,806) (4,853) (1,021) (1,934) (591,902) 20 (18,107) 3,593 2,766 - (13,118,447) - (13,118,447)	- 539,662 114,250 58,005 153,258 47,400 50,000 6,000 43,659 - 1,000 43,577 51,610 28,000 100 6,000 295,797 6,997 20,000 1 96,841 5,750 - - 30,000 10,000	- 100.00 100.00 20.72 100.00 19.35 100.00 100.00 13.61 100.00 100.00 58.04 45.08 100.00 100.00 20.00 54.60 34.99 28.82 54.00 51.41 20.00 100.00 70.00 37.51 50.00		- 10,449,666 14,568,130 2,040,465 3,908,564 985,390 314,820 215,424 607,050 53,722 50,892 1,298,234 2,832,671 73,276 1,007 59,062 7,689,378 229,224 367,674 83,702 2,662,718 213,758 716,693 769,129 633,324 291,224 51,115,197 107,951 51,223,148	- 19.36 127.51 50.70 25.50 20.79 6.30 35.90 37.95 - 50.89 25.60 61.10 2.62 - 9.84 33.55 32.76 40.07 83,702.00 39.75 73.90 - - 41.00 29.12	- - 10,449,666 - 14,568,130 - 2,940,854 - 3,908,564 - 985,390 - 314,820 - 215,424 - 1,656,859 - 53,722 - 50,892 - 1,115,571 - 3,153,371 - 73,276 - 1,007 - 59,062 - 9,923,989 - 229,224 - 801,400 - 83,702 - 3,849,430 - 424,925 - 716,693 - 769,129 - 1,230,000 - 291,224 - -

(Continued)

123

Qisda Corporation

Statement of Notes and Accounts Payable

December 31, 2021

(Expressed in Thousands of New Taiwan Dollars)

	Vendor Name		Amount
Vendor A		$	904,444
Vendor B			166,073
Vendor C			111,436
Others (Note)			326,373
		$	1,508,326

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

(Continued)

124

Qisda Corporation

Statement of Short-Term Borrowings

December 31, 2021

(Expressed in Thousands of New Taiwan Dollars)

Type of Loan	Creditor Bank of China Entie Commerical Taiwan E.SUN Commercial Bank Taipei Fubon Bank DBS Bank	Ending Balance $ 1,107,200 500,000 500,000 500,000 810,000 $ 3,417,200	Contract Period 2021/03~2022/03 2021/06~2022/06 2021/07~2022/07 2021/02~2022/02 2021/03~2022/03	Interest Rates 0.48%~0.8%	Credit facilities Collateral 1,107,200 - 500,000 - 584,800 - 2,214,400 - 830,400 -
Unsecured loan Unsecured loan Unsecured loan Unsecured loan Unsecured loan

Statement of Other Payables

Item		Amount
Salaries and bonus payables	$	1,167,984
Others (Note)		979,468
	$	2,147,452

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

Statement of Other Current Liabilities

Item		Amount
Government grants received in advance	$	30,241
Others (Note)		49,307
	$	79,548

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

(Continued)

125

Qisda Corporation

Statement of Lease Liabilities (including current and non-current)

December 31, 2021

(Expressed in Thousands of New Taiwan Dollars)

Item Buildings Current: Non-current:	Lease Term 2017/08～2027/07	Disconot Rate (%) Balance at December 31, 2021 1.80% $ 763,108 $ 125,831 $ 637,277

Statement of Other Non-current Liabilities

Item		Amount
Defined benefit liabilities	$	412,383
Guarantee deposits		30,648
Others (Note)		55
	$	443,086

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

(Continued)

126

Qisda Corporation

Statement of Long-term Debt

December 31, 2021

(Expressed in Thousands of New Taiwan Dollars)

		Loan	Contract
Creditor	Description	Amount	Period	Interest Rates	Collateral
Bank of Taiwan and other	5 yeas syndicated loan	1,700,000	2021.12~2026.12		-
banks
Bank of Taiwan and other	5 years syndicated loan	1,500,000	2019.10~2024.10		(Note 8)
banks
Bank of Taiwan and other	5 years syndicated loan	5,940,000	2019.10~2024.10		-
banks
Bank of Taiwan and other	5 years syndicated loan	6,720,000	2020.12~2025.12		-
banks
MUFG Bank	3 years loan	1,370,000	2021.09~2024.09		-
Yuanta Commercial Bank	3 years loan	500,000	2021.09~2024.09		-
E.SUN Commercial Bank	4 years loan	415,200	2020.07~2024.07		-
Taishin International Bank	5 years loan	436,882	2019.10~2024.10		-
Taiwan Business Bank	2 years loan	1,107,200	2021.09~2023.09		-
The Export-Import Bank	5 years loan	623,894	2019.12~2024.12		-
of the Republic of China
Bank of Taiwan	7 years loan	739,426	2019.10~2026.10
		21,052,602		0.63%~1.797%
Less：Current portion of long-term debt		(495,733)
		$ 20,556,869

(Continued)

127

Qisda Corporation

Statement of Operating Revenue

For the year ended December 31, 2021

(Expressed in Thousands of New Taiwan Dollars)

Item		Amount
IT products	$	91,581,252
Digital media products		7,352,484
Others		6,305,835
Less: Sales returns and allowance		(604,988)
	$	104,634,583

(Continued)

128

Qisda Corporation

Statement of Operating Cost

For the year ended December 31, 2021

(Expressed in Thousands of New Taiwan Dollars)

Items		Amount
Raw materials
Raw materials, beginning of year	$	333,925
Add: Purchase of raw materials		3,037,518
Less: Raw materials, end of year		(328,643)
Transferred to other expenses		(10,826)
Scrapped of raw materials		(15,575)
Sales of raw materials		(169,820)
Raw materials used		2,846,579
Direct labor		244,650
Manufacturing overhead		536,786
Manufacturing cost		3,628,015
Add: Work in process, beginning of year		49,046
Less: Work in process, end of year		(62,979)
Transferred to other expenses		(10,322)
Sales of work in process		(258,759)
Scrapped of work in process		(746)
Cost of goods manufactured		3,344,255
Add: Finished goods, beginning of year		3,932,582
Inventories in transit, beginning of year		157,752
Purchase of finished goods		98,176,906
Transferred from other expenses		9,191
Less: Finished goods, end of year		(5,109,188)
Inventories in transit, end of year		(407,644)
Scrapped of finished goods		(590)
Cost of goods sold		100,103,264
Write-down of inventories		12,872
Royalty cost		149,511
Sales of raw materials and work in process		428,579
Warranty cost		29,499
Other costs		(276,796)
Cost of revenue	$	100,446,929

(Continued)

129

Qisda Corporation

Statement of Selling Expenses

For the year ended December 31, 2021

(Expressed in Thousands of New Taiwan Dollars)

	Item		Amount
Salaries		$	668,322
Warehouse	rental expense		141,556
Others (Note)			368,577
		$	1,178,455

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

Statement of Administrative Expenses

Item		Amount
Salaries	$	417,394
Professional service fees		137,931
Depreciation expense		134,737
Others (Note)		269,493
	$	959,555

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

(Continued)

130

Qisda Corporation

Statement of Research and Development Expenses

For the year ended December 31, 2021

(Expressed in Thousands of New Taiwan Dollars)

Items		Amount
Salaries	$	1,550,494
Inspection and test fees		219,175
Modeling expense		121,197
Others (Note)		384,032
	$	2,274,898

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

For details on the statement of Financial Assests/Liabilities measured at FVOCI, please refers to note 6(b)

For details on statement of Accounts Receivable (Payables) from related parties and Other Receivable (Payables) from related parties, please refer to note 7

For details on statement of Other Receivable, please refer to note 6(e)

For details on statement of Changes in Property, Plant and Equipment, please refer to note 6(h)

For details on statement of Changes in accumulated depreciation of property, plant and equipment, please refer to note 6(h)

For details on statement of Changes in Right-of-Use Assets, please refer to note 6(i)

For details on statement of Changes in Investment Property, please refer to note 6(j)

For details on statement of Changes in Intangible Assets, please refer to note 6(k)

For details on statement of Changes in Deferred Tax Assets/Liabilities, please refer to note 6(r)

For details on statement of Contract Liabilities, please refer to note 6(u)

－ For details on statement of Provisions current/non-current, please refer to note 6(o)

For details on statement of Other Income, please refer to note 6(w)

For details on statement of Other Gains and Losses, please refer to note 6(w)

For details on statement of Finance Costs, please refer to note 6(w)