Qisda — Interim / Quarterly Report 2021

Dec 28, 2021

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Stock Code:2352

QISDA CORPORATION AND SUBSIDIARIES Consolidated Financial Statements With Independent Auditors’ Review Report For the Three Months Ended March 31, 2021 and 2020

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

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

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Table of contents

Contents 1. Cover Page 2. Table of Contents 3. Independent Auditors’ Review Report 4. Consolidated Balance Sheets 5. Consolidated Statements of Comprehensive Income (Loss) 6. Consolidated Statements of Changes in Equity 7. Consolidated Statements of Cash Flows 8. Notes to the Consolidated Financial Statements (1) Organization and business (2) Authorization of the consolidated 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

Page

1 2 3 4 5 6 7 8 8 8～9 10～23 23 24～77 78～81 81 82 82 82 82～83 83、85～101 83、102～107 83、108～121 83 84

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KPMG

台北市110615信義路5段7號68樓(台北101大樓) Telephone 電話 + 886 2 8101 6666 68F., TAIPEI 101 TOWER, No. 7, Sec. 5, Fax 傳真 + 886 2 8101 6667 Xinyi Road, Taipei City 110615, Taiwan (R.O.C.) Internet 網址 home.kpmg/tw

Independent Auditors’ Review Report

To the Board of Directors Qisda Corporation:

Introduction

We have reviewed the accompanying consolidated balance sheets of Qisda Corporation and its subsidiaries (the “Group”) as of March 31, 2021 and 2020, and the related consolidated statements of comprehensive income (loss), changes in equity and cash flows for the three-month periods ended March 31, 2021 and 2020, and notes to the consolidated financial statements, including a summary of significant accounting policies. Management is responsible for the preparation and fair presentation of the consolidated financial statements in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and International Accounting Standard 34, “ Interim Financial Reporting” endorsed and issued into effect by the Financial Supervisory Commission of the Republic of China. Our responsibility is to express a conclusion on the consolidated financial statements based on our reviews.

Scope of Review

Except as explained in the Basis for Qualified Conclusion paragraph, we conducted our reviews in accordance with Statement of Auditing Standard 65, “ Review of Financial Information Performed by the Independent Auditor of the Entity”. A review of the consolidated financial statements consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Basis for Qualified Conclusion

As described in Note 4(b) to the consolidated financial statements, the accompanying consolidated financial statements included the financial statements of certain non-significant subsidiaries, which were not reviewed by independent auditors. These financial statements reflect the total assets amounting to $26,058,195 thousand and $21,368,373 thousand, constituting 15.22% and 16.23% of the consolidated total assets; as well as the total liabilities amounting to $10,669,638 thousand and $7,333,871 thousand, constituting 9.71% and 8.74% of the consolidated total liabilities as of March 31, 2021 and 2020, respectively; and also, the total comprehensive income amounting to $312,152 thousand and $(311,308) thousand, constituting 7.70% and 343.30% of the consolidated total comprehensive income (loss) for the three-month periods ended March 31, 2021 and 2020, respectively.

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

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Furthermore, as described in Note 6(h) to the consolidated financial statements, the investments accounted for using the equity method amounted to $1,105,076 thousand and $676,203 thousand as of March 31, 2021 and 2020, respectively, and the share of profits (losses) of associates and joint ventures amounted to $9,432 thousand and $9,641 thousand for the three-month periods ended March 31, 2021 and 2020, respectively. These amounts were based on the unreviewed financial statements of the investee companies.

Qualified Conclusion

Based on our reviews and the review reports of other auditors (please refer to Other Matter paragraph), except for the adjustment, if any, as might have been determined to be necessary had the financial statements of certain non-significant consolidated subsidiaries and equity-method investments described in the Basis for Qualified Conclusion paragraph been reviewed by independent auditors, nothing has come to our attention that causes us to believe that the accompanying consolidated financial statements do not present fairly, in all material respects, the consolidated financial position of the Group as of March 31, 2021 and 2020, and of its consolidated financial performance and its consolidated cash flows for the three-month periods ended March 31, 2021 and 2020, in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and International Accounting Standard 34, Interim Financial Reporting endorsed and issued into effect by the Financial Supervisory Commission of the Republic of China.

Other Matter

We did not review the financial statements of certain subsidiaries of the Group. Those financial statements were reviewed by other auditors, whose review reports have been furnished to us, and our conclusion expressed herein, insofar as it relates to the amounts included in the consolidated financial statements relative to these subsidiaries, is based solely on the reports of other auditors. The financial statements of these subsidiaries reflect the total assets amounting to $9,403,258 thousand and $10,526,406 thousand, constituting 5.49% and 7.99% of the consolidated total assets as of March 31, 2021 and 2020, respectively, and the total operating revenues amounting to $1,835,096 thousand and $2,626,290 thousand, constituting 3.61% and 6.70% of the consolidated operating revenues for the three-month periods ended March 31, 2021 and 2020, respectively.

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

KPMG

Taipei, Taiwan (Republic of China) May 11, 2021

Notes to Readers

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

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

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(English Translation of Consolidated Financial Statements Originally Issued in Chinese)

Reviewed only, not audited in accordance with the generally accepted auditing standards as of March 31, 2021 and 2020

QISDA CORPORATION AND SUBSIDIARIES

Consolidated Balance Sheets

March 31, 2021, December 31 and March 31, 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 (notes 6(b) and (p)) 1120 Financial assets at fair value through other comprehensive income－current (note 6(c)) 1170 Notes and accounts receivable, net (notes 6(d) and (y) and 8) 1181 Notes and accounts receivable from related parties (notes 6(d) and (y) and 7) 1200 Other receivables (notes 6(d) and (e) and 7) 1210 Other receivables from related parties (notes 6(e) and 7) 130X Inventories (notes 6(f) and 8) 1470 Other current assets 1476 Other financial assets－current (notes 6(a) and 8) 1461 Non-current assets held for sale (note 6(g)) Total current assets Non-current assets: 1510 Financial assets at fair value through profit or loss－ non-current (note 6(b)) 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(h) and 8) 1600 Property, plant and equipment (notes 6(j) and 8) 1755 Right-of-use assets (notes 6(k) and 8) 1760 Investment property (notes 6(l) and 8) 1780 Intangible assets (notes 6(i) and (m)) 1840 Deferred income tax assets 1900 Other non-current assets 1980 Other financial assets－non-current (note 8) Total non-current assets Total assets	March 31, 2021 Amount % $ 23,628,853 14 176,885 - 107,943 - 27,680,028 16 3,111,903 2 668,681 - 687,326 1 35,897,298 21 3,761,658 2 5,026,371 3 118,474 - 100,865,420 59 200,513 - 2,599,405 1 16,676,607 10 30,670,709 18 4,599,658 3 3,527,913 2 9,080,223 5 1,727,849 1 277,220 - 989,779 1 70,349,876 41 $ 171,215,296 100	December 31, 2020 Amount % 22,540,418 13 389,043 - 96,281 - 33,221,557 19 3,280,369 2 675,888 - 302,399 - 35,139,333 21 3,076,818 2 2,709,546 2 892,117 1 102,323,769 60 173,731 - 1,381,399 1 16,308,434 10 30,188,228 18 4,706,556 3 3,561,030 2 9,118,895 5 1,727,832 1 358,923 - 963,152 - 68,488,180 40 170,811,949 100	March 31, 2020 Amount % 13,914,205 11 429,400 - 127,024 - 22,882,526 17 1,976,937 2 876,939 1 531,856 - 25,024,196 19 1,901,812 1 7,764,033 6 - - 75,428,928 57 130,446 - 1,121,996 1 16,792,650 13 23,837,857 18 3,690,697 3 3,620,343 3 4,974,829 4 1,615,771 1 208,228 - 245,446 - 56,238,263 43 131,667,191 100 Liabilities and Equity Current liabilities: 2100 Short-term borrowings (notes 6(n) and 8) 2120 Financial liabilities at fair value through profit or loss －current (note 6(b)) 2130 Contract liabilities－current (note 6(y)) 2170 Notes and accounts payable 2180 Accounts payable to related parties (note 7) 2200 Other payables (notes 6(z)) 2220 Other payables to related parties (note 7) 2260 Liabilities related to non-current assets held for sale (note 6(g)) 2300 Other current liabilities (note 6(o)) 2365 Refund liabilities—current 2321 Current portion of bonds payable (note 6(p)) 2322 Current portion of long-term debt (notes 6(o) and 8) 2280 Lease liabilities－current (note 6(q)) 2282 Lease liabilities to related parties－current (notes 6(q) and 7) 2250 Provisions－current (note 6(r)) Total current liabilities Non-current liabilities: 2503 Financial liabilities at fair value through profit or loss －non-current (note 6(b)) 2540 Long-term debt (notes 6(o) and 8) 2580 Lease liabilities－non-current (note 6(q)) 2582 Lease liabilities to related parties－non-current (notes 6(q) and 7) 2550 Provisions－non-current (note 6(r)) 2570 Deferred income tax liabilities 2670 Other non-current liabilities Total non-current liabilities Total liabilities Equity attributable to shareholders of the Company (notes 6(c) and (i) and (v)): 3110 Common stock 3260 Capital surplus 3300 Retained earnings 3400 Other equity Total equity attributable to shareholders of the Company 36XX Non-controlling interests (note 6(v)) Total equity Total liabilities and equity	March 31, 2021		December 31, 2020		March 31, 2020 Amount % 23,583,682 18 98,408 - 1,400,391 1 24,170,653 19 1,070,509 1 8,685,196 7 44,149 - - - 465,052 - 1,832,758 2 - - 355,189 - 318,173 - 85,554 - 440,795 - 62,550,509 48 95,907 - 15,859,759 12 1,358,996 1 162,497 - 608,987 - 967,315 1 2,274,364 2 21,327,825 16 83,878,334 64 19,667,820 15 2,081,468 2 12,896,515 10 (1,037,502) (1) 33,608,301 26 14,180,556 10 47,788,857 36 131,667,191 100
				Amount %		Amount %
				$ 22,575,916 13 150,758 - 2,193,611 1 34,935,085 21 1,978,553 1 12,366,378 7 13,288 - - - 589,278 - 2,607,434 2 455,931 - 551,740 - 353,360 - 94,030 - 789,594 1 79,654,956 46 93,346 - 24,149,142 14 1,411,946 1 68,930 - 672,368 1 1,648,149 1 2,198,319 1 30,242,200 18 109,897,156 64 19,667,820 12 1,830,010 1 17,330,097 10 156,378 - 38,984,305 23 22,333,835 13 61,318,140 36 $ 171,215,296 100		21,131,930 12 139,661 - 1,862,107 1 38,398,784 23 2,127,536 1 13,331,307 8 16,151 - 358,207 - 796,592 1 2,340,052 1 526,507 - 536,537 - 368,303 - 86,737 - 808,823 1 82,829,234 48 78,123 - 22,366,798 13 1,473,817 1 91,779 - 687,601 - 1,674,510 1 2,646,867 2 29,019,495 17 111,848,729 65 19,667,820 12 1,879,501 1 15,742,825 9 (1,264,645) (1) 36,025,501 21 22,937,719 14 58,963,220 35 170,811,949 100

See accompanying notes to consolidated financial statements.

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(English Translation of Consolidated Financial Statements Originally Issued in Chinese) Reviewed only, not audited in accordance with generally accepted auditing standards

QISDA CORPORATION AND SUBSIDIARIES

Consolidated Statements of Comprehensive Income (Loss)

For the three months ended March 31, 2021 and 2020

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

4000 Operating revenues (notes 6(y), 7 and 14) 5000 Operating costs (notes 6(f), (j), (k), (m), (q), (t) and (z), 7 and 12) Gross profit Operating expenses (notes 6(d), (j), (k), (m), (q), (t) and (z), 7 and 12): 6100 Selling expenses 6200 Administrative expenses 6300 Research and development expenses 6450 Reversal of impairment loss (expected credit loss) Total operating expenses Operating income Non-operating income and loss: 7100 Interest income (note 6(aa)) 7010 Other income (notes 6(o) and (aa)) 7020 Other gains and losses－net (notes 6(g), (h), (i), (q), (aa) and (ab) and 7) 7050 Finance costs (notes 6(q) and (aa) and 7) 7060 Share of profits (losses) of associates and joint ventures (note 6(h)) Total non-operating income and loss Income before income tax 7950 Less: Income tax expense (note 6(u)) Net income Other comprehensive income (loss): 8310 Items that will not be reclassified subsequently to profit or loss 8316 Unrealized gains (losses) from investments in equity instruments measured at fair value through other comprehensive income (notes 6(v) and (ab)) 8320 Share of other comprehensive income (loss) of associates (notes 6(h) and (v)) 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(v)) 8370 Share of other comprehensive loss of associates and joint ventures (notes 6(h) and (v)) 8399 Less: income tax related to items that may be reclassified subsequently to profit or loss Other comprehensive income (loss) for the period, net of income tax Total comprehensive income (loss) for the period Net income attributable to: 8610 Shareholders of the Company 8620 Non-controlling interests Total comprehensive income (loss) attributable to: 8710 Shareholders of the Company 8720 Non-controlling interests Earnings per share (in New Taiwan dollars) (note 6(x)): 9750 Basic earnings per share 9850 Diluted earnings per share	For the three months ended March 31	For the three months ended March 31
	2021 Amount % $ 50,903,681 100 (43,403,061) (85) 7,500,620 15 (2,928,367) (6) (1,418,716) (3) (1,457,245) (3) 21,582 - (5,782,746) (12) 1,717,874 3 69,294 - 28,183 - 608,318 1 (164,946) - 873,870 2 1,414,719 3 3,132,593 6 (523,950) (1) 2,608,643 5 1,300,151 3 57,180 - - - 1,357,331 3 111,198 - (24,039) - - - 87,159 - 1,444,490 3 $ 4,053,133 8 $ 2,111,632 4 497,011 1 $ 2,608,643 5 $ 3,561,676 7 491,457 1 $ 4,053,133 8 $ 1.07 $ 1.06	2020
		Amount % 39,200,166 100 (33,935,749) (87 5,264,417 13 (2,317,880) (6 (922,891) (2 (943,992) (2 (42,795) - (4,227,558) (10 1,036,859 3 84,029 - 32,540 - 56,340 - (222,091) - (348,638) (1 (397,820) (1 639,039 2 (247,265) (1 391,774 1 (168,660) - (230,419) (1 - - (399,079) (1 (30,706) - (52,671) - - - (83,377) - (482,456) (1 (90,682) 232,521 1 159,253 - 391,774 1 (196,473) - 105,791 - (90,682) - 0.12
		0.12

See accompanying notes to consolidated financial statements.

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(English Translation of Consolidated Financial Statements Originally Issued in Chinese) Reviewed only, not audited in accordance with generally accepted auditing standards

QISDA CORPORATION AND SUBSIDIARIES

Consolidated Statements of Changes in Equity

For the three months ended March 31, 2021 and 2020

(Expressed in Thousands of New Taiwan Dollars)

Balance at January 1, 2020 Net income for the period Other comprehensive loss for the period Total comprehensive income (loss) for the period Changes in equity of associates and joint ventures accounted for using the equity method Difference between consideration and carrying amount arising from acquisition or disposal of shares in subsidiaries Stock option compensation cost of subsidiaries Changes in non-controlling interests Balance at March 31, 2020 Balance at January 1, 2021 Net income for the period Other comprehensive income for the period Total comprehensive income for the period Changes in equity of associates and joint ventures accounted for using the equity method Distribution of cash dividend by subsidiaries to non-controlling interests Capital injection from non-controlling interests Difference between consideration and carrying amount arising from acquisition or disposal of shares in subsidiaries Changes in ownership interests in subsidiaries Stock option compensation cost of subsidiaries Changes in non-controlling interests Disposal of financial assets measured at fair value through other comprehensive income Balance at March 31, 2021					Attr	ibutable to sharehol	ders of the Company	ders of the Company	ders of the Company			Non- controlling interests 14,091,635	Total equity 48,035,594
	Common stock	Capital surplus 2,220,653		Reta	ined earnings			Other equity interest			Total equity of the Company 33,943,959
			Legal reserve 1,826,479	Special reserve	Unappropriated earnings 10,669,093	Total retained earnings	Foreign currency translation differences	Unrealized gains (losses) from financial assets measured at fair value through other comprehensive income 410,052	Remeasurements of defined benefit plans (361,048)	Total other equity interest (608,508)
	$ 19,667,820			168,422		12,663,994	(657,512)
	- -	- -	- -	- -	232,521 -	232,521 -	- (36,301)	- (392,693)	- -	- (428,994)	232,521 (428,994)	159,253 (53,462)	391,774 (482,456)
	-	-	-	-	232,521	232,521	(36,301)	(392,693)	-	(428,994)	(196,473)	105,791	(90,682)
	- - - -	(139,656) 471 - -	- - - -	- - - -	- - - -	- - - -	- - - -	- - - -	- - - -	- - - -	(139,656) 471 - -	3,562 (24,470) 2,503 1,535	(136,094) (23,999) 2,503 1,535
	$ 19,667,820	2,081,468	1,826,479	168,422	10,901,614	12,896,515	(693,813)	17,359	(361,048)	(1,037,502)	33,608,301	14,180,556	47,788,857
	$ 19,667,820	1,879,501	2,183,984	608,508	12,950,333	15,742,825	(1,413,867)	571,329	(422,107)	(1,264,645)	36,025,501	22,937,719	58,963,220
	- -	- -	- -	- -	2,111,632 -	2,111,632 -	- 95,122	- 1,354,922	- -	- 1,450,044	2,111,632 1,450,044	497,011 (5,554)	2,608,643 1,444,490
	-	-	-	-	2,111,632	2,111,632	95,122	1,354,922	-	1,450,044	3,561,676	491,457	4,053,133
	- - - - - - - -	(55,615) - - - 6,124 - - -	- - - - - - - -	- - - - - - - -	- - - (553,381) - - - 29,021	- - - (553,381) - - - 29,021	- - - - - - - -	- - - - - - - (29,021)	- - - - - - - -	- - - - - - - (29,021)	(55,615) - - (553,381) 6,124 - - -	- (228,790) 64,874 (883,676) (6,124) 2,360 (43,985) -	(55,615) (228,790) 64,874 (1,437,057) - 2,360 (43,985) -
	$ 19,667,820	1,830,010	2,183,984	608,508	14,537,605	17,330,097	(1,318,745)	1,897,230	(422,107)	156,378	38,984,305	22,333,835	61,318,140

See accompanying notes to consolidated financial statements.

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(English Translation of Consolidated Financial Statements Originally Issued in Chinese) Reviewed only, not audited in accordance with generally accepted auditing standards QISDA CORPORATION AND SUBSIDIARIES

Consolidated Statements of Cash Flows

For the three months ended March 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 (reversal of impairment loss) Interest expense Interest income Dividend income Share-based compensation cost Share of losses (profits) of associates and joint ventures Loss on disposal of property, plant and equipment Gain on disposal of non-current assets and the related liabilities held for sale Gain on disposal of investments Total adjustments to reconcile profit Changes in operating assets and liabilities: Changes in operating assets: 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 Increase in other current assets Decrease 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 Decrease in notes and accounts payable Decrease in accounts payable to related parties Increase (decrease) in other payable to related parties Decrease in provisions Increase (decrease) in contract liabilities Decrease in other payables and other current liabilities 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

For the three months ended March 31 2021 2020 $ 3,132,593 639,039 918,518 730,601 222,414 108,584 (21,582) 42,795 164,946 222,091 (69,294) (84,029) (8,199) - 2,360 2,503 (873,870) 348,638 2,653 794 (84,232) - (385,317) (4,181) (131,603) 1,367,796 (2,219) (114,410) 5,629,906 5,984,458 168,466 418,869 42,255 (249,029) (5,794) (26,893) (758,015) 2,870,468 (657,722) (124,451) 91,864 41,275 4,508,741 8,800,287 3,022 48,409 (3,482,568) (4,842,224) (148,983) (766,181) (2,863) 26,761 (34,462) (675) 295,530 (158,965) (1,431,442) (1,191,179) (12,315) (6,361) (4,814,081) (6,890,415) (305,340) 1,909,872 (436,943) 3,277,668 2,695,650 3,916,707 34,246 40,978 8,199 - (174,919) (285,607) (239,935) (22,401) 2,323,241 3,649,677

2021 $ 3,132,593 918,518 222,414 (21,582) 164,946 (69,294) (8,199) 2,360 (873,870) 2,653 (84,232) (385,317) (131,603) (2,219) 5,629,906 168,466 42,255 (5,794) (758,015) (657,722) 91,864 4,508,741 3,022 (3,482,568) (148,983) (2,863) (34,462) 295,530 (1,431,442) (12,315) (4,814,081) (305,340) (436,943) 2,695,650 34,246 8,199 (174,919) (239,935) 2,323,241

See accompanying notes to consolidated financial statements.

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(English Translation of Consolidated Financial Statements Originally Issued in Chinese) Reviewed only, not audited in accordance with generally accepted auditing standards

QISDA CORPORATION AND SUBSIDIARIES

Consolidated Statements of Cash Flows (Continued)

For the three months ended March 31, 2021 and 2020

(Expressed in Thousands of New Taiwan Dollars)

		For the three months	ended
		March 31
		2021	2020
Cash flows from investing activities:
Purchase of financial assets at fair value through other comprehensive	$	(33,900)	(60,000)
income
Proceeds from disposal of financial assets at fair value through other		106,800	-
comprehensive income
Purchase of financial assets at fair value through profit or loss		-	(360,000)
Proceeds from disposal of financial assets at fair value through profit or		164,578	701,347
loss
Purchase of investments accounted for using the equity method		(5,000)	(4,678)
Proceeds from disposal of investments accounted for using the equity		441,589	5,000
method
Proceeds from disposal of subsidiaries		46,246	-
Proceeds from disposal of non-current assets and related liabilities held for		265,795	-
sale
Additions to property, plant and equipment		(1,332,714)	(749,047)
Proceeds from disposal of property, plant and equipment		135,568	6,393
Additions to intangible assets		(89,910)	(35,031)
Increase in other financial assets		(2,343,452)	(2,837,738)
Net cash received (paid) for acquisition of subsidiaries		60,431	(10,219)
Net cash flows used in investing activities		(2,583,969)	(3,343,973)
Cash flows from financing activities:
Increase in short-term borrowings		1,912,737	3,676,857
Repayments of short-term borrowings		(477,039)	-
Increase in long-term debt		5,298,822	3,501,083
Repayments of long-term debt		(3,494,704)	(4,340,754)
Decrease in guarantee deposits received		(436,233)	(40,047)
Payment of lease liabilities		(142,263)	(140,227)
Acquisition of subsidiary’s interests from non-controlling interests		(1,437,057)	(23,999)
Capital injection from non-controlling interests		64,874	-
Net cash provided by financing activities		1,289,137	2,632,913
Effects of foreign exchange rate changes		60,026	195,081
Net increase in cash and cash equivalents		1,088,435	3,133,698
Cash and cash equivalents at beginning of period		22,540,418	10,780,507
Cash and cash equivalents at end of period	$	23,628,853	13,914,205

See accompanying notes to consolidated financial statements.

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(English Translation of Consolidated Financial Statements Originally Issued in Chinese) Reviewed only, not audited in accordance with generally accepted auditing standards QISDA CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

For the three months ended March 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 and subsidiaries (collectively the “Group”) are engaged in the sales, manufacturing and services of high-end monitors and opto-mechatronics products; the sales and services of smart business solution; the sales, manufacturing and services of medical equipments; providing medical services; as well as the research, development, design, manufacturing and sale of broadband products, wireless network products and computer network system equipment.

2. Authorization of the consolidated financial statements

These consolidated financial statements were authorized for issuance by the Board of Directors on May 11, 2021.

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

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

• －

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

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

(Continued)

9

QISDA CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

• (b) 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 Group, 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 the 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 Group is evaluating the impact of its initial adoption of the abovementioned standards or interpretations on its consolidated financial position and consolidated financial performance. The results thereof will be disclosed when the Group completes its evaluation.

The Group 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 consolidated financial statements:

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

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

• －

• ●Amendments to IAS 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”

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

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

(Continued)

10

QISDA CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

4. Summary of significant accounting policies

(a) Statement of compliance

The Group’ s accompanying consolidated financial statements have been prepared in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers (the “ Regulations”) and guidelines of IAS 34 “Interim Financial Reporting” which are endorsed and issued into effect by FSC, and do not include all of the information required by International Financial Reporting Standards, International Accounting Standards, interpretation as well as related guidance endorsed and issued into effect by the FSC (collectively as “ Taiwan-IFRSs” ) for a complete set of the annual consolidated financial statements.

Except for the following accounting policies mentioned below, the significant accounting policies adopted in the accompanying consolidated financial statements are the same as those in the consolidated financial statements for the year ended December 31, 2020. For the related information, please refer to note 4 of the consolidated financial statements for the year ended December 31, 2020.

(b) Basis of consolidation

• (i) List of subsidiaries in the consolidated financial statements

The subsidiaries included in the consolidated financial statements were as follows:

Name of Investor The Company The Company The Company The Company The Company The Company The Company The Company The Company	Name of Investee Qisda Sdn. Bhd. (“QLPG”) Qisda America Corp. (“QALA”) Qisda Japan Co., Ltd. (“QJTO”) BenQ Dialysis Technology Corp. (“BDT”) Qisda Optronics Corp. (“QTOS”) Darly Venture (L) Ltd. (“Darly”) Darly Venture Inc. (“APV”) Qisda Vietnam Co., Ltd (“QVH”) Qisda (L) Corp. (“QLLB”)	Main Business and Products Leasing and management services Sales of electronic products Sales and maintenance of electronic products in Japanese market Manufacture and sales of medical consumables and equipment Manufacture of computer peripheral products Investment and holding activity Investment and holding activity Manufacture of monitors Investment and holding activity	Percentage of Ownership March 31, 2021 December 31, 2020 March 31, 2020 Note % 100.00 % 100.00 % 100.00 Note 1 % 100.00 % 100.00 % 100.00 - % 100.00 % 100.00 % 100.00 Note 1 % 100.00 % 100.00 % 92.86 Note 1 % 100.00 % 100.00 % 100.00 Note 1 % 100.00 % 100.00 % 100.00 Note 1 % 100.00 % 100.00 % 100.00 Note 1 % 100.00 % 100.00 % 100.00 - % 100.00 % 100.00 % 100.00 - (Continued)

11

QISDA CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

Name of Investor QLLB QLLB QLLB QCHK/ QCES QCHK QCHK QCHK APV/Darly 2/ Darly C The Company BenQ BenQ BenQ BenQ BenQ BenQ BenQ	Name of Investee Qisda (Suzhou) Co., Ltd. (“QCSZ”) Qisda (Hong Kong) Limited (“QCHK”) BenQ Medical (Shanghai) Co., LTD (“BMSH”) Qisda (Shanghai) Co., Ltd. (“QCSH”) Qisda Electronics (Suzhou) Co., Ltd. (“QCES”) Qisda Optronics (Suzhou) Co., Ltd. (“QCOS”) Qisda Precision Industry (Suzhou) Co., Ltd. (“QCPS”) BenQ ESCO Corp. (“BES”) BenQ Corp. (“BenQ”) BenQ (Hong Kong) Limited (“BQHK”) BenQ Europe B.V. (“BQE”) BenQ Asia Pacific Corp. (“BQP”) BenQ America Corporation (“BQA”) BenQ Latin America Corp. (“BQL”) Mainteq Europe B.V. (“MQE”) Darly2 Venture Co., Ltd. (“Darly 2”)	Main Business and Products Manufacture of monitors and communication devices Investment and holding activity Sales of medical consumables and equipment Manufacture of monitors Manufacture of monitors Manufacture of projectors Manufacture of plastic parts Energy service Manufacture and sales of brand name electronic products Investment and holding activity Sales of brand- name electronic products in European markets Sales of brand- name electronic products in Asia markets Sales of brand- name electronic products in North America markets Sales of brand- name electronic products in Latin America markets Maintenance of brand-name monitors and projectors in European markets Investment and holding activity	Percentage of Ownership March 31, 2021 December 31, 2020 March 31, 2020 Note % 100.00 % 100.00 % 100.00 - % 100.00 % 100.00 % 100.00 Note 1 % 100.00 % 100.00 % 100.00 Note 1 % 100.00 % 100.00 % 100.00 Note 1 % 100.00 % 100.00 % 100.00 Note 1 % 100.00 % 100.00 % 100.00 - % 100.00 % 100.00 % 100.00 Note 1 % 83.00 % 83.00 % 83.00 Note 1 % 100.00 % 100.00 % 100.00 - % 100.00 % 100.00 % 100.00 Note 1 % 100.00 % 100.00 % 100.00 - % 100.00 % 100.00 % 100.00 - % 100.00 % 100.00 % 100.00 Note 1 % 100.00 % 100.00 % 100.00 Note 1 % 100.00 % 100.00 % 100.00 Note 1 % 100.00 % 100.00 % 100.00 Note 1

(Continued)

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QISDA CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

Name of Investor BenQ BenQ BenQ/Darly/ Darly 2 BenQ/BQP BQP BQP BQP BQP BQP BQP BQP BQP BQHK BQHK_HLD BQHK_HLD BQHK_HLD	Name of Investee BenQ Intelligent Technology (Hong Kong) Co., Ltd. (“BQHK_HLD”) BenQ INFTY Lab Ltd. (“INF”) BenQ Guru Holding Limited (“GSH”) PT BenQ Teknologi Indonesia (“BQid”) BenQ Korea Co., Ltd. (“BQkr”) BenQ Japan Co., Ltd. (“BQjp”) BenQ Australia Pty Ltd. (“BQau”) BenQ (M.E.) FZE (“BQme”) BenQ India Private Ltd. (“BQin”) BenQ Singapore Pte Ltd. (“BQsg”) BenQ Service & Marketing (M) Sdn. Bhd (“BQmy”) BenQ (Thailand) Co., Ltd. (“BQth”) BenQ Co., Ltd. (“BQC”) BenQ Technology (Shanghai) Co., Ltd. (“BQls”) ShengCheng Trading (Shanghai) Co., Ltd (“BQsha_EC2”) BenQ Intelligent Technology (Shanghai) Co., Ltd (“BQC_RO”)	Main Business and Products Sales of brand- name electronic products in HK markets Assembly and sales of gaming electronic products Investment and holding activity 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 Sales of brand- name electronic products Sales of brand- name electronic products Sales of brand- name electronic products Lease of real estate Sales of brand- name electronic products Sales of brand- name electronic products Sales of brand name electronic products in China markets	Percentage of Ownership March 31, 2021 December 31, 2020 March 31, 2020 Note % 100.00 % 100.00 % 100.00 Note 1 % 100.00 % 100.00 % 100.00 Note 1 % 100.00 % 100.00 % 100.00 Note 1 % 100.00 % 100.00 % 100.00 Note 1 % 100.00 % 100.00 % 100.00 Note 1 % 100.00 % 100.00 % 100.00 Note 1 % 100.00 % 100.00 % 100.00 Note 1 % 100.00 % 100.00 % 100.00 Note 1 % 100.00 % 100.00 % 100.00 Note 1 % 100.00 % 100.00 % 100.00 Note 1 % 100.00 % 100.00 % 100.00 Note 1 % 100.00 % 100.00 % 100.00 Note 1 % 100.00 % 100.00 % 100.00 - % 100.00 % 100.00 % 100.00 Note 1 % 100.00 % 100.00 % 100.00 Note 1 % 100.00 % 100.00 % 100.00 -

(Continued)

13

QISDA CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

Name of Investor GSH GSH/APV BQA BenQ/BQL BQL BQL Joytech/ Vividtech BQmx/BQL BQE BQE BQE BQE BQE BQE BQE BQE	Name of Investee Guru Systems (Suzhou) Co., Ltd. (“GSS”) BenQ GURU Corp. (“GST”) BenQ Canada Corp. (“BQca”) BenQ Mexico S. de R.L. de C.V. (“BQmx”) Joytech LLC. (“Joytech”) Vividtech LLC. (“Vividtech”) MaxGen Comercio Industrial Imp E Exp Ltda. (“MaxGen”) 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”)	Main Business and Products R&D and sales of computer information systems R&D and sales of computer information systems Sales of brand- name electronic products Sales of brand- name electronic products Investment and holding activity Investment and holding activity 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 Sales of brand- name electronic products Sales of brand- name electronic products Sales of brand- name electronic products Sales of brand- name electronic products	Percentage of Ownership March 31, 2021 December 31, 2020 March 31, 2020 Note % 100.00 % 100.00 % 100.00 Note 1 % 99.96 % 99.96 % 99.96 Note 1 % 100.00 % 100.00 % 100.00 Note 1 % 100.00 % 100.00 % 100.00 Note 1 % 100.00 % 100.00 % 100.00 Note 1 % 100.00 % 100.00 % 100.00 Note 1 % 100.00 % 100.00 % 100.00 Note 1 % 100.00 % 100.00 % 100.00 Note 1 % 100.00 % 100.00 % 100.00 Note 1 % 100.00 % 100.00 % 100.00 Note 1 % 100.00 % 100.00 % 100.00 Note 1 % 100.00 % 100.00 % 100.00 Note 1 % 100.00 % 100.00 % 100.00 Note 1 % 100.00 % 100.00 % 100.00 Note 1 % 100.00 % 100.00 % 100.00 Note 1 % 100.00 % 100.00 % 100.00 Note 1

(Continued)

14

QISDA CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

Name of Investor BQE APV/Darly 2 The Company/ BenQ/Darly/ APV/ Darly2 BBHC BBM BBM/BIC BBM BBM BBM The Company BBC BBC BBC BenQ/APV/ Darly 2 BMTC BMTC BMTC	Name of Investee BenQ LLC. (“BQru”) Darly Consulting Corporation (“Darly C”) BenQ BM Holding Cayman Corp. (“BBHC”) BenQ BM Holding Corp. (“BBM”) 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”) BenQ Biotech (Shanghai) Co., Ltd (“BBC”) Guangxi Youshan Medical Technology Co.,Ltd. (“Youshan”) Wangcheng Medical Technology（Chengdu) Co., Ltd. (“Wangcheng”) Shanghai Filter Technology Co.,Ltd. (“ Filter”) BenQ Medical Technology Corp. (“BMTC”) Highview Investments Limited (“Highview”) Asiaconnect International Company (“Asiaconnect”) LILY Medical Corporation (“LILY”)	Main Business and Products Providing administration and management service to affiliates Investment management consulting Investment and holding activity Investment and holding activity Hospital Hospital Medical management consulting Medical management consulting Investment and holding activity Manufacture and sales of medical consumables and equipment Medical services Medical services Medical services Manufacture and sales of medical consumables and equipment Investment and holding activity Sales of medical consumables and equipment Sales of medical consumables and equipment	Percentage of Ownership March 31, 2021 December 31, 2020 March 31, 2020 Note % 100.00 % 100.00 % 100.00 Note 1 % 100.00 % 100.00 % 100.00 Note 1 % 70.05 % 70.05 % 70.05 - % 70.05 % 70.05 % 70.05 - % 70.05 % 70.05 % 70.05 - % 70.05 % 70.05 % 70.05 - % 70.05 % 70.05 % 70.05 Note 1 % 70.05 % 70.05 % 70.05 Note 1 % 70.05 % 70.05 % 70.05 Note 1 % 70.00 % 70.00 % 70.00 Note 1 % 38.50 % 38.50 - Notes 1, 3 and 6 % 49.00 % 49.00 - Notes 1, 3 and 5 % 70.00 % 70.00 - Notes 1 and 5 % 54.96 % 54.96 % 54.96 - % 54.96 % 54.96 % 54.96 - % 54.82 % 54.82 % 54.82 - % 54.96 % 54.96 % 54.96 -

(Continued)

15

QISDA CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

Name of Investor BMTC BMTC BMTC Highview LILY BHS The Company/ BenQ/APV/ Darly C BMC BMC BMLB BMLB BMLB BMLB SMS The Company/ APV/ Darly2	Name of Investee 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”) New Best Hearing International Trade Co. Ltd. (“NBHIT”) BenQ Material Corp. (“BMC”) BenQ Materials (L) Co. (“BMLB”) Sigma Medical Supplies Corp. (“SMS”) BenQ Material (Suzhou) Co., Ltd. (“BMS”) Daxon Biomedical (Suzhou) Co., Ltd. (“DTB”) BenQ Materials (Wuhu) Co., Ltd. BenQ Materials Medical Supplies (Suzhou) Co., Ltd (“BMM”) Suzhou Sigma Medical Supplies Co., Ltd. (“SMSZ”) Partner Tech Corp. (“PTT”)	Main Business and Products 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 Sales of medical consumables and equipment Sales of medical consumables and equipment R&D, manufacture and sales of optoelectronics film Investment and holding activity Manufacture and sales of medical consumables and equipment Manufacture of optoelectronics film Sales of medical consumables Manufacture and sales of optoelectronics film Manufacture and sales of medical consumables Manufacture and sales of medical consumables and equipment Manufacture, sales and import and export of POS terminals and peripherals	Percentage of Ownership March 31, 2021 December 31, 2020 March 31, 2020 Note % 48.36 % 48.36 % 48.36 Note 3 % 54.96 % 54.96 % 54.96 - % 38.47 % 38.47 % 38.47 Notes 3 and 6 % 54.96 % 54.96 % 54.96 - % 54.96 % 54.96 % 54.96 - % 28.58 % 28.58 % 28.58 Note 3 % 43.56 % 43.56 % 43.56 Note 4 % 43.56 % 43.56 % 43.56 Note 4 % 43.56 % 43.56 % 43.56 Note 4 % 43.56 % 43.56 % 43.56 Note 4 % 43.56 % 43.56 % 43.56 Note 4 % 43.56 % 43.56 % 43.56 Note 4 % 43.56 % 43.56 % 43.56 Notes 4 and 5 % 43.56 % 43.56 % 43.56 Note 4 % 68.23 % 68.23 % 68.23 Note 1

(Continued)

16

QISDA CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

Name of Investor PTT PTT/PTE PTT PTT PTT/WEBEST PTT PTT/WEBEST PTT PTE PTE PTME P&J P&S P&S PTT/WEBEST PTT The Company/ APV/ Darly2	Name of Investee P&J Investment Holding Co., Ltd. (B.V.I) (“P&J”) Partner Tech UK Corp., Ltd. (“PTUK”) Webest Solution Corporation (“WEBEST”) Mace Digital Corporation(“PTMG”) Partner Tech Middle East FZCO (“PTME”) Partner-Tech Europe GmbH (“PTE”) Partner Tech North Africa (“PTNA”) Epoint Systems Pte. Ltd. (“PTSE”) Sloga Team D.o.o (“Sloga”) Retail Solution & System S.L. (“RSS”) E-POS International LLC (“E-POS”) P&S Investment Holding Co., Ltd. (B.V.I.) (“P&S”) Partner Tech USA Inc. (“PTU”) Partner Tech (Shanghai) Co., Ltd. (“PTCM”) La Fresh information Co., Ltd. (“PTTN”) Corex (Pty) Ltd. (“PCX”) DFI Inc. (“DFI”)	Main Business and Products Investment and holding activity 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 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 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 Software development and Sales of product Sales, import and export of electronic products Manufacture and sales of industrial motherboards and component	Percentage of Ownership March 31, 2021 December 31, 2020 March 31, 2020 Note % 68.23 % 68.23 % 68.23 Note 1 % 64.34 % 64.34 % 64.34 Note 1 % 68.23 % 68.23 % 68.23 Note 1 % 35.74 % 35.74 - Notes 1, 3 and 5 % 68.23 % 68.23 % 68.23 Note 1 % 34.13 % 34.13 % 34.13 Notes 1 and 3 % 39.70 % 39.70 - Notes 1 and 3 % 34.18 % 34.18 % 34.18 Notes 1 and 3 % 30.72 % 30.72 % 30.72 Notes 1 and 3 % 23.21 % 23.21 % 23.21 Notes 1 and 3 % 68.23 % 68.23 % 68.23 Notes 1 and 9 % 68.23 % 68.23 % 68.23 Note 1 % 68.23 % 68.23 % 68.23 Note 1 % 68.23 % 68.23 % 68.23 Note 1 % 34.55 % 34.55 % 34.55 Notes 1 and 3 - % 68.23 % 68.23 Notes 1 and 8 % 55.09 % 55.09 % 55.09 -

(Continued)

17

QISDA CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

Name of Investor DFI DFI DFI DFI Yan Tong Technology Ltd. Yan Tong Technology Ltd. DFI AEWIN AEWIN WISE WAY BRIGHT PROFIT Aewin Beijing Technologies Co., Ltd. DFI ACE	Name of Investee DFI AMERICA, LLC DFI Co., Ltd. Yan Tong Technology Ltd. Diamond Flower Information (NL) B.V. 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. Ace Pillar Co., Ltd. (“ACE”) Cyber South Management Ltd. (“Cyber South”)	Main Business and Products Sales, import and export of electronic products Sales, import and export of electronic products Investment and holding activity Sales of industrial motherboards Manufacture and sale of industrial motherboards and component Wholesale, import and export of industrial motherboards and component Manufacture and sale of industrial motherboards and component Investment and holding activity Wholesale of computer peripheral products and software Investment and holding activity Wholesale of computer peripheral products and software Wholesale of computer peripheral products and software Sales of automation mechanical transmission system and component Investment and holding activity	Percentage of Ownership March 31, 2021 December 31, 2020 March 31, 2020 Note % 55.09 % 55.09 % 55.09 - % 55.09 % 55.09 % 55.09 Note 1 % 55.09 % 55.09 % 55.09 Note 1 % 55.09 % 55.09 % 55.09 Note 1 % 55.09 % 55.09 % 55.09 Note 1 % 55.09 % 55.09 % 55.09 Note 1 % 28.29 % 28.01 % 27.95 Note 3 % 28.29 % 28.01 % 27.95 Note 3 % 28.29 % 28.01 % 27.95 Note 3 % 28.29 % 28.01 % 27.95 Note 3 % 28.29 % 28.01 % 27.95 Note 3 % 28.29 % 28.01 % 27.95 Note 3 % 18.88 % 18.49 % 15.36 Note 2 % 18.88 % 18.49 % 15.36 Note 2

(Continued)

18

QISDA CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

Name of Investor ACE/Proton ACE Cyber South Cyber South Cyber South Cyber South Cyber South Ace Tek The Company/ Darly2 K2 K2 K2 The Company/ APV/Darly2 DIC DMC	Name of Investee Tianjin Ace Pillar Co., Ltd. Hong Kong Ace Pillar Enterprise Company Limited Proton Inc. (“Proton”) Ace Tek (HK) Holding Co., Ltd. (“Ace Tek”) Suzhou Super Pillar Automation Equipment Co., Ltd. Grace Transmission (Tianjin) Co., Ltd. Xuchang Ace AI Equipment Co., Ltd. Advancedtek ACE (TJ) Inc. K2 International Medical Inc. (“K2”) K2 Medical (Thailand) Co., Ltd. K2 (Shanghai) International Medical Inc. PT. Frismed Hoslab Indonesia Data Image Corporation (“DIC”) Data Image (Mauritius) Corporation (“DMC”) Data Image (Suzhou) Corporation	Main Business and Products Sales of automation mechanical transmission system and component Sales of automation mechanical transmission system and component Investment and holding activity Investment and holding activity Manufacture of automation mechanical transmission system and component Manufacture of automation mechanical transmission system and component Wholesale of industrial robot and component Electronic system integration Sales of medical consumables and equipment Sales of medical consumables Sales of medical consumables Sales of medical consumables Manufacture and sales of marine display modules Investment and holding activity Manufacture and sales of LCD	Percentage of Ownership March 31, 2021 December 31, 2020 March 31, 2020 Note % 18.88 % 18.49 % 15.36 Note 2 % 18.88 % 18.49 % 15.36 Note 2 % 18.88 % 18.49 % 15.36 Note 2 % 18.88 % 18.49 % 15.36 Note 2 % 18.88 % 18.49 % 15.36 Note 2 % 18.88 % 18.49 % 15.36 Note 2 % 18.88 % 18.49 % 15.36 Note 2 % 18.88 % 18.49 % 15.36 Note 2 % 40.00 % 40.00 % 37.56 Notes 1 and 2 % 19.60 % 19.60 % 18.40 Notes 1 and 2 % 24.04 % 24.04 % 22.57 Notes 1 and 2 % 26.80 % 26.80 - Notes 1, 2 and 6 % 38.35 % 38.35 % 35.32 Notes 1 and 2 % 38.35 % 38.35 % 35.32 Notes 1 and 2 % 38.35 % 38.35 % 35.32 Notes 1 and 2

(Continued)

19

QISDA CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

Name of Investor The Company EASC The Company/ APV/ Darly2 Topview Messoa The Company Sysage/NEO TREND Sysage Sysage Sysage Sysage	Name of Investee Expert Alliance Systems & Consultancy (HK) Company Limited (“EASC”) Expert Alliance Smart Technology Co. Ltd. Topview Optronics Corporation (“Topview”) Messoa Technologies Inc. (“Messoa”) Messoa Technologies Inc. (USA) Sysage Technology Co., Ltd. (“Sysage”) Global Intelligence Network Co., Ltd. (“Ginnet”) Epic Cloud Information Integration Corporation Neo Trend Tech Corporation (“NEO TREND”) Corex (Pty) Ltd. (“PCX”) AdvancedTEK International Corp. (“AdvancedTEK”)	Main Business and Products Sales of brand- name electronic products and smart services Sales of brand- name electronic products and smart services Manufacture, sales and import and export of video surveillance cameras Sales, and import and export of video surveillance cameras Sales, and import and export of video surveillance cameras and maintenance services The agent sales and trading of network software and information and communication hardware and software. Sales of network and information and communication hardware and software. Software and data processing services Telecommunicatio ns engineering Sales and import and export of electronic products Implementaion of application software services	Percentage of Ownership March 31, 2021 December 31, 2020 March 31, 2020 Note % 54.00 % 54.00 % 54.00 Note 1 % 54.00 % 54.00 % 54.00 Note 1 % 33.56 % 33.56 % 33.49 Note 2 % 13.69 % 13.69 % 13.63 Note 2 % 13.69 % 13.69 % 13.63 Notes 1 and 2 % 51.41 % 35.04 % 35.04 Note 2 % 40.84 % 27.84 % 21.77 Notes 1 and 2 % 51.41 % 33.29 % 24.53 Notes 1 and 2 - % 35.04 - Notes 1, 5 and 10 % 51.41 - - Notes 1 and 8 % 17.53 - - Notes 1, 7 and 11

(Continued)

20

QISDA CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

Name of Investor Sysage/Ginnet Sysage/Epic cloud Advanced TEK The Company/ APV/ Darly2 Simula Simula Simula /Aspire Asia Inc. Aspire Asia Inc. Aspire Electronics Corp. Simula Company Limited The Company/ APV GSC GSC The Company /APV/ Darly2/ Darly C	Name of Investee Dawning Technology Inc. (“Dawningtech”) Statinc Company (“Statinc”) APEO Human Capital Services Corp. Simula Technology Inc. (“Simula”) Aspire Asia Inc. Simula Technology Corp. Simula Company Limited Aspire Electronics Corp. Opti Cloud Technologies, Inc. Simula Technology (ShenZhen) Co., Ltd. Golden Spirit Co., Ltd. (“GSC”) Bigmin Bio-Tech Company Ltd. E-Strong Medical Technology Co., Ltd. (“ESM”) Alpha Networks Inc. (“Alpha”)	Main Business and Products Sales of network and information hardware and software. Market research, marketing consultant and big data cloud database services Implementaion of application software services Manufacture and sales of electronic material Investment and holding activity Sales in North America Investment and holding activity Investment and holding activity Development of High-speed optical transmission cable and module product technology Manufacture of electronic connector, socket and plastic hardware Sale of alcohol and medical disinfectant Sale of alcohol and medical disinfectant Manufacture of alcohol and dialysate Manufacture and sales of broadband products, wireless network products and computer network system equipment	Percentage of Ownership March 31, 2021 December 31, 2020 March 31, 2020 Note - % 14.55 % 13.70 Notes 1 and 10 % 18.00 - - Notes 1, 2 and 7 % 17.53 - - Notes 1, 2 and 7 % 51.27 % 51.27 - Note 6 % 51.27 % 51.27 - Note 6 % 51.27 % 51.27 - Note 6 % 51.27 % 51.27 - Note 6 % 48.76 % 48.76 - Notes 2 and 6 % 26.24 % 26.24 - Notes 2 and 6 % 51.27 % 51.27 - Note 6 % 100.00 % 100.00 - Notes 1 and 6 % 100.00 % 100.00 - Notes 1 and 6 % 66.57 % 66.57 - Notes 1 and 6 % 59.98 % 59.87 Note 6(h) Note 6

(Continued)

21

QISDA CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

Name of Investor Alpha Alpha Alpha Alpha Alpha Alpha Alpha D-Link Asia D-Link Asia Alpha Dongguan Alpha HK Enrich Investment Alpha Hitron Technologies	Name of Investee Alpha Holdings Inc. (“Alpha Holdings”) Alpha Solutions Co., Ltd. (“Alpha Solutions”) Alpha Networks Inc. (“Alpha USA”) Alpha Technical Services Inc. (“ATS”) Alpha Networks (Hong Kong) Limited (“Alpha HK”) Enrich Investment Corporation (“Enrich Investment”) D-Link Asia Investment Pte,Ltd. (“D-Link Asia”) Alpha Networks (Dongguan) Co., Ltd. (“Alpha Dongguan”) Alpha Networks (Chengdu) Co., Ltd. (“Alpha Chengdu”) Mirac Networks (Dongguan) Co., Ltd. Alpha Networks (Changshu) Co., Ltd. (“Alpha Changshu”) Transnet Corporation (“Transnet”) Hitron Technologies Inc. (“Hitron Technologies”) Hitron Technologies (Samoa) Inc (“Hitron Samoa”)	Main Business and Products Investment holding Sale of network equipment, components and technical services Sale, marketing and procurement service in USA Post-sale service Investment holding Investment holding Investment in manufacturing business Production and sale of network products Research and development of network products Production and sale of network products Production and sale of network products Operating in network communication products, provide system support services, integrated supply and import and export of network equipment Marketing on system integration and production and sales of telecommunication products International trade	Percentage of Ownership March 31, 2021 December 31, 2020 March 31, 2020 Note % 59.98 % 59.87 - Note 6 % 59.98 % 59.87 - Note 6 % 59.98 % 59.87 - Note 6 % 59.98 % 59.87 - Note 6 % 59.98 % 59.87 - Note 6 % 59.98 % 59.87 - Note 6 % 59.98 % 59.87 - Note 6 % 59.98 % 59.87 - Note 6 % 59.98 % 59.87 - Note 6 % 59.98 % 59.87 - Note 6 % 59.98 % 59.87 - Note 6 % 59.98 % 59.87 - Note 6 % 37.33 % 37.26 - Notes 3 and 6 % 37.33 % 37.26 - Notes 3 and 6

(Continued)

22

QISDA CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

Name of Investor Hitron Technologies Hitron Technologies Hitron Technologies Hitron Technologies Hitron Samoa Hitron Samoa Hitron Technologies/ Enrich Investment Interactive Digital	Name of Investee 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”) Interactive Digital Technologies Inc. (“Interactive Digital”) Hwa Chi Technologies (Shanghai) Inc. (“Hwa Chi Technologies”)	Main Business and Products International trade International trade Investment and automotive electronics products Production and sale of broadband telecommunication s products Production and sale of broadband telecommunication s products Sale of broadband network products and related services Telecommunicatio n and broadband network system services Technical consultation on electronic communication, technology research and development, maintenance and after-sale service	Percentage of Ownership March 31, 2021 December 31, 2020 March 31, 2020 Note % 37.33 % 37.26 - Notes 1, 3 and 6 % 37.33 % 37.26 - Notes 3 and 6 % 37.33 % 37.26 - Notes 3 and 6 % 37.33 % 37.26 - Notes 3 and 6 % 37.33 % 37.26 - Notes 3 and 6 % 37.33 % 37.26 - Notes 3 and 6 % 20.02 % 20.59 - Notes 3 and 6 % 20.02 % 20.59 - Notes 3 and 6

Note 1: This is a non-significant subsidiary for which financial statements were not reviewed as of and for the three months ended March 31, 2021 and 2020.

Note 2: Although the Group did not own more than half of the voting rights of the entities, the Group owns more than half of their total number of directors; therefore, it is determined that the Group has control over these entities. Hence, the entities have been included in the Group’s consolidated entities.

Note 3: The Group did not own more than half of the ownership of the entities. As the Group owns more than half of the voting rights, directly and indirectly, and has the power to control the management and operating policies of the entities, the entities have been included in the Group’s consolidated entities.

Note 4: The Group owned 43.56% of the voting rights and is the single largest shareholder of BMC. Since the remaining 56.44% ownership was not concentrated within specific shareholders and there was no indication that all other shareholders exercise their votes collectively, the Group can obtain more than half of the voting rights at BMC’s shareholders' meeting and has substantial control over BMC and its subsidiaries, who have been included in the Group’s consolidated entities.

Note 5: Filter, Wangcheng , PTMG and NEO TREND were newly established in 2020.

Note 6: In 2020, the Group obtained control over the entities. Therefore, the entities have been included in the Group’ s consolidated entities. Note 7: In 2021, the Group obtained control over the entities. Therefore, the entities have been included in the Group’ s consolidated entities.

(Continued)

23

QISDA CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

Note 8: In 2021, PTT sold all of its investment in PCX to Sysage due to organizational restructuring. Note 9: PTME originally held 100% ownership of E-POS, however, because of certain legal restrictions, the 51% ownership of E-POS was registered under the name of other parties.

• Note 10: Prior to 2021, Dawningtech was one of subsidiaries of the Group. In 2021, the Group sold all of its investments in Dawningtech and therefore the Group lost control of Dawningtech. Dawningtech was excluded from the Group’ s consolidated entities since then.

• Note 11: In January, 2021, Sysage obtained letters of support signed by shareholders, who represent 20.36% ownership of AdvancedTEK, authorizing Sysage to direct the significant operating relevant activities and assisted Sysage to obtain more than half of their total number of Directors of the Board of AdvancedTEK. It is determined that the Group has power to control AdvancedTEK, AdvancedTEK has been included in the Group’s consolidated entities since then.

• (ii) List of subsidiaries which are not included in the consolidated financial statements: None.

(c) Employee benefits

The defined benefit pension cost for an interim period is calculated on a year-to-date basis by using the actuarially determined pension cost rate at the end of the prior fiscal year, adjusted for significant market fluctuations since that time, as well as significant curtailments, settlements, or other significant one-time events.

(d) Income taxes

The income tax expenses in the interim financial statements have been measured and disclosed in accordance with paragraph B12 of IAS 34 “Interim Financial Reporting”.

Income tax expenses for an interim period are best estimated by multiplying pre-tax income for the interim reporting period by the effective annual tax rate as forecasted by the management. It is recognized fully as current tax expense for the current period.

When income tax expenses are recognized directly in equity or other comprehensive income in respect of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and their respective tax bases, the related amounts shall be measured based on the tax rates that have been enacted or substantively enacted at the time of the asset or liability is recovered or settled.

5. Critical accounting judgments and key sources of estimation uncertainty

The preparation of the consolidated financial statements in conformity with the Regulations and IAS 34 “ Interim Financial Reporting” endorsed and issued into effect by FSC 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.

When preparing the interim consolidated financial statements, same critical accounting judgments and key sources of estimation uncertainties as mentioned in the note 5 of the consolidated financial statements for the year ended December 31, 2020 have been followed.

(Continued)

24

QISDA CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

6. Significant account disclosures

Except for the following disclosures, there is no significant difference as compared with those disclosed in the consolidated financial statements for the year ended December 31, 2020. Please refer to note 6 of the consolidated financial statements for the year ended December 31, 2020.

• (a) Cash and cash equivalents

Cash on hand Demand deposits and checking accounts Bonds with repurchase agreement Time deposits with original maturities less than three months	March 31, 2021 $ 195,510 15,098,306 185,590 8,149,447 $ 23,628,853	December 31, 2020 108,574 15,114,756 - 7,317,088 22,540,418	March 31, 2020 187,735 11,758,054 - 1,968,416 13,914,205

As of March 31, 2021, December 31 and March 31, 2020, the time deposits with original maturities more than three months amounted to $4,948,544, $2,655,274 and $7,758,408, respectively, which － were classified as other financial assets current.

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

Financial assets at fair value through profit or loss－current: Foreign currency forward contracts Foreign exchange swaps Listed stocks Open-end mutual funds Derivative instrument – call and put option of convertible bonds (note 6(p))	March 31, 2021 $ 82,264 6,466 57,612 30,402 141 $ 176,885	December 31, 2020 96,940 14,612 68,894 208,054 543 389,043	March 31, 2020
			158,277 7,814 - 263,309 -
			429,400

(Continued)

25

QISDA CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

Financial assets at fair value through profit or loss－non-current: Privately held equity securities Put option Contingent consideration arising from business combinations Financial liabilities at fair value through profit or loss－current: Foreign currency forward contracts Foreign exchange swaps Contingent consideration arising from business combinations Financial liabilities at fair value through profit or loss－non-current: Contingent consideration arising from business combinations	March 31, 2021 $ 184,476 10,504 5,533 $ 200,513 $ (109,317) (30,372) (11,069) $ (150,758) March 31, 2021 $ (93,346)	December 31, 2020 157,694 10,504 5,533 173,731 (109,648) (25,370) (4,643) (139,661) December 31, 2020 (78,123)	March 31, 2020 114,409 10,504 5,533 130,446 (84,578) (9,888) (3,942) (98,408) March 31, 2020 (95,907)

The above contingent consideration was arising from the acquisitions of EASC, PTSE, PTTN, PTE, and PCX in the previous years and the acquisition of Statinc in 2021. The discounted cash flow model is used to estimate the contingent consideration based on the future profitability of each subsidiary under the terms of the acquisition agreement.

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

(Continued)

26

QISDA CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

The Group entered into derivative contracts to manage foreign currency exchange risk resulting from its operating and financing activities. The derivative financial instruments that did not conform to the criteria for hedge accounting. At each reporting date, the outstanding derivative contracts consisted of the following:

• (i) Foreign currency forward contracts

USD Buy/ EUR Sell JPY Buy/ USD Sell JPY Buy/ USD Sell USD Buy/ CAD Sell USD Buy/ INR Sell TWD Buy/ USD Sell TWD Buy/ EUR Sell EUR Buy/ GBP Sell EUR Buy/ USD Sell USD Buy/ BRL Sell USD Buy/ JPY Sell USD Buy/ MXN Sell USD Buy/ CNY Sell USD Buy/ CNY Sell CNY Buy/ USD Sell MYR Buy/ USD Sell SEK Buy/ EUR Sell USD Buy/ THB Sell USD Buy/ TWD Sell USD Buy/ GBP Sell USD Buy/ ZAR Sell USD Buy/ AUD Sell

March 31, 2021

Contract amount (in thousands) Maturity period EUR 58,252 2021/04~2021/06 USD 50,000 2021/04~2021/07 JPY 186,208 2021/04 CAD 9,000 2021/04~2021/06 USD 20,000 2021/04~2021/06 USD 32,681 2021/04~2021/07 EUR 5,629 2021/04 GBP 5,000 2021/06 USD 7,855 2021/04~2021/06 USD 18,000 2021/04~2021/06 JPY 800,000 2021/06 USD 7,500 2021/05 USD 9,300 2021/04~2021/06 CNY 90,868 2021/04 USD 89,901 2021/04~2021/06 MYR 14,000 2021/06 EUR 2,000 2021/06 USD 3,000 2021/06 USD 20,840 2021/04~2021/06 GBP 286 2021/04 USD 744 2021/04 AUD 2,000 2021/06

(Continued)

27

QISDA CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

USD Buy/ EUR Sell JPY Buy/ USD Sell USD Buy/ CAD Sell USD Buy/ INR Sell TWD Buy/ USD Sell TWD Buy/ EUR Sell EUR Buy/ GBP Sell EUR Buy/ USD Sell USD Buy/ BRL Sell USD Buy/ JPY Sell USD Buy/ MXN Sell USD Buy/ CNY Sell USD Buy/ CNY Sell CNY Buy/ USD Sell MYR Buy/ USD Sell SEK Buy/ EUR Sell USD Buy/ THB Sell USD Buy/ TWD Sell USD Buy/ GBP Sell USD Buy/ ZAR Sell USD Buy/ ZAR Sell USD Buy/ AUD Sell

December 31, 2020

Contract amount (in thousands) Maturity period EUR 51,071 2021/01~2021/06 USD 50,386 2021/01~2021/03 CAD 9,000 2021/01~2021/06 USD 20,000 2021/01~2021/03 USD 70,393 2021/01~2021/04 EUR 7,130 2021/02~2021/03 GBP 5,000 2021/03 USD 3,590 2021/01~2021/03 USD 18,000 2021/01~2021/03 JPY 800,000 2021/03 USD 7,500 2021/02 USD 22,156 2021/01~2021/03 CNY 39,244 2021/01 USD 90,600 2021/01~2021/03 MYR 14,000 2021/03 EUR 2,000 2021/03 USD 3,000 2021/03 USD 25,318 2021/01~2021/03 GBP 261 2021/01 USD 1,500 2021/01 ZAR 44,203 2021/01 AUD 2,000 2021/03

USD Buy/ EUR Sell JPY Buy/ USD Sell USD Buy/ CAD Sell USD Buy/ INR Sell TWD Buy/ USD Sell EUR Buy/ GBP Sell USD Buy/ BRL Sell USD Buy/ JPY Sell USD Buy/ MXN Sell USD Buy/ CNY Sell USD Buy/ CNY Sell CNY Buy/ USD Sell MYR Buy/ USD Sell SEK Buy/ EUR Sell	March 31, 2020
	Contract amount (in thousands) Maturity period EUR 36,059 2020/04~2020/06 USD 38,400 2020/04~2020/06 CAD 6,000 2020/05~2020/06 USD 16,000 2020/04~2020/06 USD 18,150 2020/04~2020/06 GBP 5,000 2020/06 USD 14,000 2020/05 JPY 400,000 2020/05~2020/06 USD 7,500 2020/04~2020/06 USD 50,833 2020/04~2020/06 CNY 35,233 2020/04 USD 86,600 2020/04~2020/06 MYR 21,000 2020/05 EUR 2,000 2020/05

(Continued)

28

QISDA CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

USD Buy/ THB Sell USD Buy/ TWD Sell USD Buy/ GBP Sell USD Buy/ ZAR Sell Foreign exchange swaps Swap in USD/Swap out TWD Swap in USD/Swap out AUD Swap in USD/Swap out JPY Swap in TWD/Swap out USD Swap in USD/Swap out TWD Swap in USD/Swap out AUD Swap in USD/Swap out JPY Swap in TWD/Swap out USD Swap in USD/Swap out TWD Swap in USD/Swap out AUD Swap in USD/Swap out JPY Swap in TWD/Swap out USD	March 31, 2020
	Contract amount (in thousands) Maturity period USD 3,000 2020/05 USD 9,137 2020/04~2020/05 GBP 514 2020/04 USD 3,865 2020/04 March 31, 2021
	Contract amount (in thousands) Maturity period USD 80,000 2021/04 AUD 3,000 2021/06 JPY 400,000 2021/06 USD 148,750 2021/04~2021/05 December 31, 2020
	Contract amount (in thousands) Maturity period USD 63,000 2021/01~2021/03 AUD 3,000 2021/03 JPY 400,000 2021/03 USD 102,560 2021/01 March 31, 2020
	Contract amount (in thousands) Maturity period USD 52,000 2020/04 AUD 3,000 2020/05 JPY 400,000 2020/05 USD 98,300 2020/04

(ii) Foreign exchange swaps

Swap in USD/Swap out TWD Swap in USD/Swap out AUD Swap in USD/Swap out JPY Swap in TWD/Swap out USD

(Continued)

29

QISDA CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

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

Equity investments at fair value through other comprehensive income: Domestic listed stocks Domestic emerging stocks Privately held stocks Current Non-current	March 31, 2021 $ 300,242 1,918,863 488,243 $ 2,707,348 $ 107,943 2,599,405 $ 2,707,348	December 31, 2020 296,043 761,132 420,505 1,477,680 96,281 1,381,399 1,477,680	March 31, 2020
			306,154 486,414 456,452
			1,249,020
			127,024 1,121,996
			1,249,020

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

For the three months ended March 31, 2021, the Group sold part of its financial assets at fair value through other comprehensive income for $106,800. The realized gain accumulated in other comprehensive income of $21,512 has been transferred from other equity to retained earnings.

For the three months ended March 31, 2020, no strategic investments was disposed and there was no transfer of any cumulative profit or loss within equity.

(d) Notes and accounts receivable

Notes and accounts receivable Notes and accounts receivable from related parties Less: loss allowance	March 31, 2021 $ 27,930,211 3,111,903 31,042,114 (250,183) $ 30,791,931	December 31, 2020 33,508,623 3,280,369 36,788,992 (287,066) 36,501,926	March 31, 2020
			23,256,794 1,976,937
			25,233,731 (374,268)
			24,859,463

(Continued)

30

QISDA CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

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

Current Past due 1-90 days Past due 91-180 days Past due over 181 days Current Past due 1-90 days Past due 91-180 days Past due over 181 days Current Past due 1-90 days Past due 91-180 days Past due over 181 days		March 31, 2021
	Gross carrying amount Weighted- average loss rate $ 28,786,893 0.09% 1,838,160 1.11% 128,181 54.59% 288,880 46.27% $ 31,042,114 December 31, 2020		Loss allowance
			26,186 20,354 69,979 133,664
			250,183
		Weighted- average loss rate 0.08% 1.38% 48.05% 78.30% March 31, 2020	Loss allowance
			29,305 19,669 67,395 170,697
			287,066
		Weighted- average loss rate 0.09% 4.60% 68.25% 100.00%	Loss allowance
			21,475 65,547 113,353 173,893
			374,268

(Continued)

31

QISDA CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

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

Balance at January 1 Impairment losses (reversal of impairment loss) Write-off Effect of exchange rate changes Acquisition through business combination Balance at March 31

• (iii) The Group entered into factoring contracts with financial institutions to sell its accounts receivable without recourse. According to these contracts, the Group is not responsible for any risk of uncollectible accounts receivable, but only the risk of loss due to commercial disputes. The Group 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 receivable 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:

		Ma	rch 31, 2021
Underwriting bank	Factored amount $ 3,796,974 6,087,216 665,118 591,134 122,589 243,131 106,790 $ 11,612,952	Unpaid advance amount - - - - - - - -	Advance amount 3,753,305 6,087,216 571,696 532,020 110,244 218,755 96,112 11,369,348	Amount recognized in other receivables 43,669 - 93,422 59,114 12,345 24,376 10,678 243,604	Range of interest rates Collat Promissory not Non Non Promissory not Non Non Non 0.58%～3.5%	eral e 51,354 e - e - e 150,000 e - e - e -
CTBC Bank Taishin International Bank Taipei Fubon Bank Mega International Commercial Bank E.SUN Commercial Bank KGI Commercial Bank Crefo Factoring Nord GmbH
						201,354

		Dece	mber 31, 2020
Underwriting bank	Factored amount $ 2,982,268 3,638,461 573,865 423,739 156,469 233,957 31,526 $ 8,040,285	Unpaid advance amount - - - - - - - -	Advance amount 2,952,341 3,638,461 469,322 379,786 140,616 208,894 26,003 7,815,423	Amount recognized in other receivables 29,927 - 104,543 43,953 15,853 25,063 5,523 224,862	Range of interest rates Collat Promissory not Non Non Promissory not Non Non Non 0.6%～3.5%	eral e 51,030 e - e - e 150,000 e - e - e -
CTBC Bank Taishin International Bank Taipei Fubon Bank Mega International Commercial Bank E.SUN Commercial Bank KGI Commercial Bank Crefo Factoring Nord GmbH
						201,030

(Continued)

32

QISDA CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

		M	arch 31, 2020
Underwriting bank	Factored amount $ 3,296,443 956,672 4,054,801 302,789 165,888 7,101 $ 8,783,694	Unpaid advance amount 56,281 369 - - - -	Advance amount 3,350,771 419,707 4,054,801 272,286 149,152 6,391 8,253,108	Amount recognized in other receivables 434,876 47,761 - 30,503 16,736 710 530,586	Range of interest rates Collat Promissory not Promissory not Non Non Non Non 1.54%～3.5%	eral e 54,457 e 250,000 e - e - e - e -
CTBC Bank Mega International Commercial Bank Taishin International Bank Taipei Fubon Bank E.SUN Commercial Bank Crefo Factoring Nord GmbH
		56,650				304,457

Please refer to note 8 for a description of the Group’s notes and accounts receivable pledged as collateral to secure for the bank loans.

(e) Other receivables

Other receivables—the factored accounts receivable, net of advance amount Other receivables—others Less: loss allowance Other receivables from related parties	March 31, 2021 $ 243,604 453,548 697,152 (28,471) 668,681 687,326 $ 1,356,007	December 31, 2020 224,862 479,318 704,180 (28,292) 675,888 302,399 978,287	March 31, 2020 530,586 376,546 907,132 (30,193) 876,939 531,856 1,408,795

As of March 31, 2021, December 31 and March 31, 2020, except for other receivables amounting to $28,471, $28,292 and $30,193, respectively, wherein the loss allowances were fully provided, no loss allowance was provided for the remaining receivables after the management’s assessment.

(f) Inventories

Raw materials Work in process Finished goods Inventories in transit	March 31, 2021 $ 13,975,685 2,158,795 14,262,162 5,500,656 $ 35,897,298	December 31, 2020 11,353,769 2,343,595 15,336,859 6,105,110 35,139,333	March 31, 2020
			5,854,240 1,553,092 13,385,423 4,231,441
			25,024,196

(Continued)

33

QISDA CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

For the three months ended March 31, 2021 and 2020, the amounts of inventories recognized as cost of revenue were as follows:

	For the three months	For the three months
	ended March 31,
	2021	2020
Cost of inventories sold	$ 41,811,300	32,756,147
Inventories write-downs	136,473	118,592
	$ 41,947,773	32,874,739

Please refer to note 8 for a description of the Group’s inventories pledged as collateral to secure for the bank loans.

• (g) Non-current assets or disposal groups classified as held for sale

• (i) The disposal of the shareholdings of Dawningtech, one of Sysage’ s subsidiaries, had been conducted through a sales and purchase agreement entered into by Sysage, Dawningtech, and Ginnet, another subsidiary of Sysage, in January 2021 based on a resolution approved during the board meeting of Sysage held on November 5, 2020. Thereafter, the assets and liabilities of Dawningtech amounting to $770,609 and $358,207, respectively, were recognized as noncurrent assets or disposal groups classified as held-for-sale as of December 31, 2020. The details were as follows:

Non-current assets or disposal		December 31,
groups classified as held for sale		2020
Cash and cash equivalents	$	107,704
Notes and accounts receivable, net		423,595
Inventories		177,319
Prepayments		1,546
Other current assets		5,773
Property, plant and equipment		9,315
Right-of-use assets		33,630
Deferred income tax assets		8,683
Other non-current assets		3,044
	$	770,609

(Continued)

34

QISDA CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

Liabilities directly related to non-current assets or disposal groups		December 31,
classified as held for sale		2020
Short-term borrowings	$	43,022
Financial liabilities at fair value through profit or loss─current		330
Contract liabilities		3,050
Accounts and notes payable		230,008
Other payables		51,564
Lease liabilities (current and non-current)		22,609
Advance receipts		6,907
Other current liabilities		582
Other non-current liabilities		135
	$	358,207

In addition, no impairment loss was recognized after measuring the abovementioned net assets at the lower of carrying amount and fair value less costs to sale.

The above net assets has been sold in the first quarter of 2021 for a consideration of $265,795. A disposal gain of $84,232, net of derecognition of non-controlling interests of Dawningtech and receivables within the Group, was recognized and included in the other gain and loss-net in the accompanying consolidated financial statements.

• (ii) In June 2020, the Board of directors of QLPG approved a resolution to dispose its land and building located at Penang, Malaysia to the Group’s associate, Visco Technology Sdn. Bhd., who then entered into an agreement with QLPG for the disposal process. The above transaction has yet to be approved by the Malaysian government. The land and building are expected to be disposed within one year upon approval, at the estimated selling price of MYR 92,000 thousand. The details were as follows:

Land and building held for sale		March 31, 2021 118,474	December 31, 2020 121,508	March 31, 2020
	$			-

• (h) Investments accounted for using the equity method

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

Associates Joint ventures	March 31, 2021 $ 16,646,714 29,893 $ 16,676,607	December 31, 2020 16,278,479 29,955 16,308,434	March 31, 2020
			16,768,088 24,562
			16,792,650

(Continued)

35

QISDA CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(i) Investments in associates

Investments in associates
Name of Associates Main Business and Relationship AU Optronics Corp. (“AU”) R & D, manufacture and sale of TFT-LCD panels, the Group’s strategic partners Darfon Electronics Corp. (“DFN”) Manufacture and sale of power devices, peripheral equipment, and integrated communication devices, the Group’s strategic partners Alpha Networks Inc. (“Alpha”) R & D, manufacture and sale of LAN/MAN, wireless, mobile & broadband, and digital multimedia products, the Group’s strategic partners Others	Location Taiwan Taiwan Taiwan	March 31, 2021 Percentage of voting rights Carrying amount % 6.98 $ 13,240,617 % 25.73 2,293,870 - - - 1,112,227 $ 16,646,714	December	31, 2020 Carrying amount 12,701,500 2,364,486 - 1,212,493 16,278,479	March 31, 2020
		Percentage of voting rights	Percentage of voting rights		Percentage of voting rights % 6.99 % 25.73 % 23.10 -	Carrying amount
		% 6.98 % 25.73 - -	% 6.99 % 25.73 notes 4(b) and 6(i) -			11,744,138 2,018,488 2,318,201 687,261
						16,768,088

The equity-method was used to account for investments in AU to which the Group 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.

BBM originally held 30% ownership of Nanjing Silvertown Health & Development Co., Ltd. (“NSHD”). On March 17, 2021, the Board of Director of BBM approved a resolution to sell 15% ownership of NSHD, wherein BBM has entered into a share sale and purchase agreement for the disposal process at a total selling price of CNY $300,000 thousand. As of March 31, 2021, 5.175% ownership of NSHD had been sold and $441,589 (CNY $103,500 thousand) of consideration was received, resulting in a gain on disposal of investments of $373,549 to be recognized. The Group still has significant influence over NSHD.

Referring to note 6(i), the Group acquired additional 19.02% ownership of Alpha for $3,092,150 through public tender offer, and the Group obtained control over Alpha and its subsidiaries, and included them in the Group’s consolidated entities. Please refer to note 6(i).

From April to May 2020, Nanjing BenQ Hospital Co., Ltd. ("NMH") invested the amount of $423,670 in Guigang Donghui Medical Investment Co., Ltd. and acquired 18.35% ownership of Guigang Donghui Medical Investment Co., Ltd. The equity-method was used to account for investments as the NMH was elected as director and participates in the decision-making on the board and has significant influence over it.

(Continued)

36

QISDA CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

For the three months ended March 31, 2021 and 2020, the Group’s shares of profits (losses) of associates amounted to $874,031 and $(347,825), respectively.

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

AU DFN Alpha	March 31, 2021 $ 13,968,759 3,413,795 -	December 31, 2020 March 31, 2020 9,290,386 4,207,218 3,122,110 2,149,827 - 2,081,076

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

• 1) The summarized financial information of AU:

Current assets Non-current assets Current liabilities Non-current liabilities Equity Equity attributable to non- controlling interests of AU Equity attributable to shareholders of AU	March 31, 2021 $ 191,275,548 238,673,727 (108,837,949) (118,195,618) $ 202,915,708 $ 11,800,674 $ 191,115,034	December 31, 2020 168,317,673 238,952,622 (98,338,179) (115,141,751) 193,790,365 10,985,674 182,804,691	March 31, 2020 139,517,608 248,724,027 (83,272,959) (125,448,576) 179,520,100 10,411,575 169,108,525

(Continued)

37

QISDA CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

		For the three months ended	For the three months ended
		March 31,
		2021	2020
Net sales	$	82,940,619	53,690,183
Net income (loss)	$	11,841,515	(5,778,097)
Other comprehensive loss		(98,520)	(2,694,866)
Total comprehensive income	$	11,742,995	(8,472,963)
Total comprehensive loss attributable to non-
controlling interests of AU	$	(72,129)	(893,334)
Total comprehensive income (loss) attributable to
shareholders of AU	$	11,815,124	(7,579,629)
		For the three months ended
		March 31,
		2021	2020
The Group’s share of equity of associates at January 1$		12,804,784	12,348,373
Total comprehensive income (loss) attributable to
the Group		793,812	(529,820)
Capital surplus attributable to the Group		(55,616)	1,144
Dividend received from associates		(199,080)	-
Cumulative effect of investment income recognized
under treasury stock method		(103,283)	(75,559)
The carrying amount of investments in the associates
at March 31	$	13,240,617	11,744,138

2) The summarized financial information of DFN:

Current assets Non-current assets Current liabilities Non-current liabilities Equity Equity attributable to non- controlling interests of DFN Equity attributable to shareholders of DFN	March 31, 2021 $ 15,338,308 9,432,120 (12,144,589) (2,374,321) $ 10,251,518 $ 1,334,936 $ 8,916,582	December 31, 2020 14,983,083 9,286,423 (11,672,915) (2,017,529) 10,579,062 1,387,996 9,191,066	March 31, 2020 11,088,156 8,436,365 (9,139,311) (1,372,035) 9,013,175 1,167,048 7,846,127

(Continued)

38

QISDA CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

			For the three months ended	For the three months ended
			March	31,
			2021	2020
	Net sales	$	5,995,441	4,111,689
	Net income	$	225,750	110,154
	Other comprehensive income (loss)		224,285	(292,478)
	Total comprehensive income (loss)	$	450,035	(182,324)
	Total comprehensive income attributable to non-
	controlling interests of DFN	$	24,519	11,542
	Total comprehensive income (loss) attributable to
	shareholders of DFN	$	425,516	(193,866)
			For the three months ended
			March	31,
			2021	2020
	The Group’s share of equity of associates at January 1$		2,364,486	2,233,147
	Total comprehensive income (loss) attributable to
	the Group		109,437	(49,900)
	Capital surplus attributable to the Group		-	890
	Dividend received from associates		(180,053)	(165,649)
	The carrying amount of investments in the associates
	at March 31	$	2,293,870	2,018,488
3)	The summarized financial information of Alpha:
				March 31,
				2020
	Current assets		$	15,740,865
	Non-current assets			5,996,666
	Current liabilities			(8,511,348)
	Non-current liabilities			(1,194,571)
	Equity		$	12,031,612
	Equity attributable to non-controlling interests of Alpha		$	3,151,749
	Equity attributable to shareholders of Alpha		$	8,879,863

(Continued)

39

QISDA CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

		For the three
		months ended
		March 31,
		2020
Net sales	$	4,984,120
Net loss	$	(137,934)
Other comprehensive loss	$	(77,757)
Total comprehensive loss	$	(215,691)
Total comprehensive loss attributable to non-
controlling interests of Alpha	$	(9,416)
Total comprehensive loss attributable to shareholders
of Alpha	$	(206,275)
		For the three
		months ended
		March 31,
		2020
The Group’s share of equity of associates at January 1$		2,564,115
Purchase of investments		4,678
Total comprehensive loss attributable to the Group		(51,776)
Capital surplus attributable to the Group		(143,951)
Dividend received from associates		(54,865)
Reclassification to consolidated entities		-
The carrying amount of investments in the associates
at March 31	$	2,318,201

4) Aggregate financial information of associates that were not individually material was summarized as follows. The financial information was included in the Group's consolidated financial statements.

The aggregate carrying amount of associates that were not individually material Attributable to the Group: Net income Other comprehensive loss Total comprehensive income	March 31, 2021 $ 1,112,227

(Continued)

40

QISDA CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(ii) Joint venture

Aggregate financial information of joint ventures, that is not individually material, was summarized as follows. The financial information was included in the Group’s consolidated financial statement:

The aggregate carrying amount of joint ventures that were not individually material Attributable to the Group: Net loss Other comprehensive income (loss) Total comprehensive loss	March 31, 2021 $ 29,893

• (iii) Pledge as collateral

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

(i) Business combination

• (i)Acquisition of subsidiaries by Sysage

1) Consideration transferred

Business combination of Sysage in the first quarter of 2021 was as follows:

On February 4, 2021, Sysage invested in STATINC for a cash consideration of $70,023 and contingent consideration of $23,298, wherein it obtained 35.01% of voting shares of STATINC. In addition, Sysage became the largest shareholder and owned more than half of STATINC's total number of directors, resulting in Sysage to obtain control over STATINC. Thereafter, STATINC has been included in the Group’ s consolidated entities.

The Group previously held 34.09% ownership and was the largest shareholder of AdvancedTEK. On January 4, 2021, the Group obtained letters of support signed by shareholders, who represent 20.36% ownership of AdvancedTEK, authorizing the Group to direct AdvancedTEK's significant operating activities and to obtain more than half of the total number of Directors of the Board of AdvancedTEK. Therefore, the Group obtained control over AdvancedTEK and its subsidiaries. Thereafter, AdvancedTEK had been included in the Group’ s consolidated entities.

(Continued)

41

QISDA CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

• 2) Identifiable net assets acquired in a business combination

The identifiable assets and liabilities arising from the abovementioned subsidiaries' acquisition at fair value were as follows:

Consideration transferred:
Cash			$	70,023
Fair value of contingent consideration				23,298
Fair value of pre-existing interest in the acquiree				32,120
Less: identifiable net assets acquired at fair value:
Cash and cash equivalents	$	130,454
Notes and accounts receivable, net		56,273
Other current assets		28,339
Property, plant and equipment		1,686
Right-of-use assets		22,860
Intangible assets		35,260
Deferred income tax assets		1,849
Other non-current assets		19,732
Contract liabilities－current		(35,974)
Short-term borrowings		(6,000)
Notes and accounts payable		(12,103)
Other payable		(23,662)
Lease liabilities－current		(7,129)
Other current liabilities		(5,275)
Lease liabilities－non-current		(15,884)
Other non-current liabilities		(1,402)
Non-controlling interest		(119,676)		69,348
Goodwill			$	56,093

(Continued)

42

QISDA CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

• 3) Intangible assets

Intangible assets included customer relationship, trademarks, patent, and others, which are amortized on a straight-line basis over the estimated future economic useful life of 5.9, 10, 10, and 10 years, respectively.

Goodwill arising from the acquisition is due to the control premium, the synergies of the business combination, the profitability, future market development and value of workforce, neither of which qualifies as an identifiable intangible asset. None of the goodwill recognized is expected to be deductible for income tax purposes.

• 4) Pro forma information

From the acquisition date to March 31, 2021, the subsidiaries acquired by Sysage had contributed the revenue of $53,317 and the net loss of $(4,487) to the Group. If this acquisition had occurred on January 1, 2021, the management estimates that consolidated revenue would have been $50,903,804, and consolidated income after income tax would have been $2,605,076.

• －

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

• 1) The cost of acquisition

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 have been included in the Group's consolidated entities. GSC is engaged in the trading and manufacturing of alcohol and medical disinfectant. The acquisition of GSC enables the Group to accelerate the product deployment in the dialysis business, and expand the business of medical and epidemic prevention products.

(Continued)

43

QISDA CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

• 2) Identifiable net assets acquired in a business combination

On June 19, 2020 (the acquisition date), the identifiable assets and liabilities arising from the acquisition at fair value were as follows:

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		45,510
Other financial assets－current		4,288
Financial assets at fair value through other
comprehensive income－non-current		2,960
Property, plant and equipment		541,559
Right-of-use assets		45,633
Intangible assets－trademarks		60,000
Intangible assets－computer software		1,921
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		(12,000)
Lease liabilities		(48,331)
Other non-current liabilities		(8,267)
Non-controlling interests		(87,034)		236,355
Goodwill			$	17,645

The fair value of the abovementioned assets and liabilities has been determined as provisionally pending completion of an independent valuation.

(Continued)

44

QISDA CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

If there is any information discovered within one year from the acquisition date about facts and circumstances that existed at the acquisition date which leads to an adjustment to the above provision amounts, or any additional provisions as at the acquisition date, the acquisition accounting will be revised.

• 3) Intangible assets

Goodwill arising from the acquisition of GSC is due to the profitability, future market development and value of workforce, neither of which qualifies as an identifiable intangible asset. None of the goodwill recognized is expected to be deductible for income tax purposes.

Intangible assets—trademarks are amortized on a straight-line basis over the estimated future economic useful life of 10 years.

• －

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

• 1) The cost of acquisition

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 Group acquired 13.77% of Simula's ownership in public market for $411,840. After these investments in Simula, the Group obtained 51.27% of Simula's ownership and owned more than half of Simula’s total number of directors. Therefore, the Company obtained control over Simula. Thereafter, Simula and its subsidiaries have been included in the Group's consolidated entities. Simula is engaged in electronic components manufacturing, electronic material wholesale, product design and international trade. The acquisition of Simula enables the Group to jointly develop vehicle networking, medical and health equipment, and AIoT solutions, and assist the Group to develop upstream and downstream key components of supply chain.

(Continued)

45

QISDA CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

• 2) Identifiable net assets acquired in a business combination

On April 1, 2020 (the acquisition date), the identifiable assets and liabilities arising from the acquisition at fair value were as follows:

Consideration transferred:

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

(Continued)

46

QISDA CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

• 3) Intangible assets

Goodwill arising from the acquisition of Simula and its subsidiaries is due to the control premium, the synergies of the business combination, future market development and value of workforce, neither of which qualifies as an identifiable intangible asset. None of the goodwill recognized is expected to be deductible for income tax purposes.

The above intangible assets— customer relationships are amortized on a straight-line basis over the estimated future economic useful life of 12.75 years; the expertise is amortized on a straight-line basis over the estimated future economic useful life of 5 years.

• －

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

• 1) The cost of acquisition

On July 23, 2020, the Group invested the amount of $3,092,150 and acquired 19.02% of Alpha Networks Inc. (“ Alpha” ) through public tender offer, resulting in the Group's ownership interest in Alpha to increase from 23.84% to 42.86%. Thereafter, the Group obtained control over Alpha. Hence, Alpha and its subsidiaries have since been included in the Group’s consolidated entities. 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 Group 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)

47

QISDA CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

• 2) Identifiable net assets acquired in a business combination

On July 23, 2020, (the acquisition date), the identifiable assets and liabilities arising from the acquisition at fair value, were as follows:

Consideration transferred:
Cash			$	3,092,150
Add: fair value of pre-existing interest in the acquiree				3,200,885
Less: Dividends receivable from acquisitions				(45,461)
Add: non-controlling interest (measured at non-controlling
interest’s proportionate share of the fair value of
Alpha’s identifiable net assets)				6,274,387
Less: identifiable net assets acquired at fair value:
Cash and cash equivalents	$	5,179,564
Financial assets at fair value through profit or loss－
current		85,472
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
comprehensive income non-current		206,469
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
－current		(9,192)
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)

48

QISDA CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

• 3) Intangible assets

Goodwill arising from the acquisition of Alpha and its subsidiaries is due to their profitabilities, future market development, and value of workforce, neither of which qualifies as identifiable intangible assets. None of the goodwill recognized is expected to be deductible for income tax purposes.

The abovementioned intangible assets are amortized on a straight-line basis over the estimated future economic useful life. The amortization period is as follows:

Patent: 5 years; trademark: 9.44 years; customer relationships: 8.44 to 11.44 years; expertise: 6.44 years.

• (v) Change in ownership interest in subsidiaries without losing control

In March 2021, the Group increased its investments in Sysage for cash of $1,387,856 through public tender offer, resulting in the Group’ s ownership interest in Sysage to increase to 51.41%. In addition, the Group acquired an additional ownership of ACE, AEWIN and Alpha for cash of $49,201.

From January to March 2020, the Group acquired an additional ownership of ACE, DIC and Topview for cash of $23,999.

Please refer to note 4(b) for the related changes in the percentage of ownership.

The following table summarizes the effect on the equity attributable to the shareholders of the Company arising from abovementioned changes in ownership interests in subsidiaries:

		For the three months ended	For the three months ended
		March 31,
		2021	2020
Capital surplus－arising from changes in ownership	$	6,124	-
interests in subsidiaries
Capital surplus－difference between consideration and
carrying amount arising from acquisition or disposal of
shares in subsidiaries		-	471
Retained earnings		(553,381)	-
	$	(547,257)	471

(Continued)

49

QISDA CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(vi) Loss of control in subsidiary

On February 26, 2021, the Chairman of Sysage approved to dispose the entire ownership of NEO TREND. The contract of sale of share had been signed at a disposal price of $50,000, wherein the gain on disposal of $20,696 was recorded as other gains and losses─net. All disposal related matters had been completed, resulting in the Group to lose control over NEO TREND. The relevant details are as follows:

1) Consideration received

Total consideration received	$	50,000
Expenditure associated with consideration received		(150)
Net consideration received	$	49,850
Identifiable net assets of NEO TREND
Cash and cash equivalents	$	3,604
Financial assets at fair value through profit or loss－current		23,017
Notes and accounts receivable, net		29
Inventories		50
Other current assets		1,221
Right-of-use assets		20,809
Other non-current assets		1,837
Notes and accounts payable		(108)
Accrued expenses		(3,860)
Lease liabilities—current		(4,065)
Lease liabilities—non-current		(13,380)
	$	29,154

• 1) Identifiable net assets of NEO TREND

(vii) Subsidiaries that have material non-controlling interest:

There were no significant changes in the Group’ s subsidiaries that have material noncontrolling interest for the three months ended March 31, 2021 and 2020. Please refer to note 6(i) of the consolidated financial statements for the year ended December 31, 2020 for the related information.

(Continued)

50

QISDA CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(j) Property, plant and equipment

Cost: Balance at January 1, 2021 Additions Acquisition through business combination Disposals Other reclassification and effect of exchange rate changes Balance at March 31, 2021 Balance at January 1, 2020 Additions Acquisition through business combination Disposals Other reclassification and effect of exchange rate changes Balance at March 31, 2020 Accumulated depreciation and impairment loss: Balance at January 1, 2021 Depreciation Acquisition through business combination Disposals Other reclassification and effect of exchange rate changes Balance at March 31, 2021 Balance at January 1, 2020 Depreciation Acquisition through business combination Disposals Other reclassification and effect of exchange rate changes Balance at March 31, 2020 Carrying amount: Balance at March 31, 2021 Balance at January 1, 2021 Balance at March 31, 2020	Land $ 6,437,888 - - - (1,497) $ 6,436,391 $ 5,682,857 - - - (11,353) $ 5,671,504 $ - - - - - $ - $ - - - - - $ - $ 6,436,391 $ 6,437,888 $ 5,671,504	Buildings 26,766,386 98,943 - (8,198) 488,231 27,345,362 21,306,465 93,315 - (1,341) (9,260) 21,389,179 11,874,445 250,215 - (4,528) 39,420 12,159,552 9,586,415 193,292 - (1,040) (38,830) 9,739,837 15,185,810 14,891,941 11,649,342	Machinery 19,425,297 298,177 - (335,453) 175,903 19,563,924 15,914,940 215,145 - (85,514) 57,744 16,102,315 13,561,891 373,681 - (225,944) 72,604 13,782,232 11,229,958 280,385 - (79,863) 4,384 11,434,864 5,781,692 5,863,406 4,667,451	Other equipment 5,844,304 496,980 19,133 (59,743) (533,326) 5,767,348 4,615,020 300,678 1,494 (13,348) (189,946) 4,713,898 3,958,946 105,713 17,447 (34,701) 1,585 4,048,990 3,132,073 109,014 599 (12,113) (36,739) 3,192,834 1,718,358 1,885,358 1,521,064	Construction in progress 1,109,635 392,419 - - 46,404 1,548,458 345,142 49,982 - - (66,628) 328,496 - - - - - - - - - - - - 1,548,458 1,109,635 328,496	Total 59,583,510 1,286,519 19,133 (403,394) 175,715 60,661,483 47,864,424 659,120 1,494 (100,203) (219,443) 48,205,392 29,395,282 729,609 17,447 (265,173) 113,609 29,990,774 23,948,446 582,691 599 (93,016) (71,185) 24,367,535 30,670,709 30,188,228 23,837,857

Please refer to note 6(j) of the consolidated financial statements for the year ended December 31, 2020 for other related information.

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

(Continued)

51

QISDA CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(k) Right-of-use assets

Cost: Balance at January 1, 2021 Acquisition through business combination Additions Derecognition of subsidiaries Disposals Other reclassification and effect of exchange rate changes Balance at March 31, 2021 Balance at January 1, 2020 Additions Acquisition through business combination Reclassification to investment property Reclassification from other non-current assets Disposals Other reclassification and effect of exchange rate changes Balance at March 31, 2020 Accumulated depreciation: Balance at January 1, 2021 Depreciation Acquisition through business combination Derecognition of subsidiaries Disposals Other reclassification and effect of exchange rate changes Balance at March 31, 2021 Balance at January 1, 2020 Depreciation Acquisition through business combination Reclassification to investment property Disposals Effect of exchange rate changes Balance at March 31, 2020 Carrying amount: Balance at March 31, 2021 Balance at January 1, 2021 Balance at March 31, 2020	Land $ 4,087,827 - - - - 58,623 $ 4,146,450 $ 2,285,678 - - - 568,791 - (2,699) $ 2,851,770 $ 814,397 25,078 - - - 21,876 $ 861,351 $ 723,385 12,637 - - - (3,092) $ 732,930 $ 3,285,099 $ 3,273,430 $ 2,118,840	Buildings 2,719,463 34,920 48,392 (24,416) (6,219) (120,643) 2,651,497 2,973,814 48,397 2,970 (396,935) - (42,678) (35,927) 2,549,641 1,304,033 117,128 12,060 (3,607) (396) (65,581) 1,363,637 1,050,396 86,538 309 (95,927) (42,678) (6,349) 992,289 1,287,860 1,415,430 1,557,352	Transportation equipments 37,771 - 1,756 - - 13,160 52,687 36,861 1,265 - - - (304) (1,935) 35,887 20,075 3,363 - - - 2,550 25,988 20,036 2,469 - - (304) (819) 21,382 26,699 17,696 14,505	Total 6,845,061 34,920 50,148 (24,416) (6,219) (48,860) 6,850,634 5,296,353 49,662 2,970 (396,935) 568,791 (42,982) (40,561) 5,437,298 2,138,505 145,569 12,060 (3,607) (396) (41,155) 2,250,976 1,793,817 101,644 309 (95,927) (42,982) (10,260) 1,746,601 4,599,658 4,706,556 3,690,697

(Continued)

52

QISDA CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(l) Investment property

Carrying amount: Balance at March 31, 2021 Balance at January 1, 2021 Balance at March 31, 2020	Buildings $ 2,838,126 $ 2,978,080 $ 3,041,436	Land use rights 689,787 582,950 578,907	Total
			3,527,913
			3,561,030
			3,620,343

There were no significant additions, disposals, or recognition and reversal of impairment losses of investment property for the three months ended March 31, 2021 and 2020. Please refer to note 6(l) of the consolidated financial statements for the year ended December 31, 2020 for other related information.

There is no significant difference as compared with the fair value of the investment property disclosed in the note 6(l) of the consolidated financial statements for the year ended December 31, 2020.

Investment property comprises a number of commercial properties, factories and right-of-use assets that the Group leased to third parties under operating lease.

Refer to note 8 for a description of the Group’s investment property pledged as collateral for bank loans.

(m) Intangible assets

Carrying amount: Balance at March 31, 2021 Balance at January 1, 2021 Balance at March 31, 2020	Goodwill $ 5,335,889 $ 5,271,152 $ 2,957,453	Computer software 230,842 218,081 110,561	Patents 872,555 730,154 19,297	Trademarks 1,013,022 1,048,327 864,398	Customer relationships 1,428,266 1,484,359 982,628	Others 199,649 366,822 40,492	Total 9,080,223
							9,118,895
							4,974,829

There were no significant additions, disposals, or recognition and reversal of impairment losses of intangible assets for the three months ended March 31, 2021 and 2020. Information on amortization for the period is presented in note 12(a). Please refer to note 6(m) of the consolidated financial statements for the year ended December 31, 2020 for other related information.

According to IAS 36, goodwill arising from a business combination is tested at least annually. Based on the results of impairment tests conducted by the Group as of December 31, 2020, there were no impairment losses. Please refer to note 6(m) of the consolidated financial statements for the year ended December 31, 2020. As of March 31, 2021, the Group assessed the achievement of expected revenue for the three months ended March 31, 2021, and there were no indications of impairment.

(Continued)

53

QISDA CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(n) Short-term borrowings

• (i) The details of short-term borrowings were as follows:

March 31, 2021 Unsecured bank loans $ 22,367,105 Secured bank loans 208,811 Letters of credits - $ 22,575,916 Unused credit facilities $ 65,811,458 Interest rate 0.18%~4.25%	December 31, 2020 20,847,734 284,196 - 21,131,930 56,994,411 0.18%~4.2%	March 31, 2020
		23,020,519 449,904 113,259
		23,583,682
		36,435,914
		0.4%~6.09%

(ii) Refer to note 8 for a description of the Group’s assets pledged as collateral to secure the bank loans.

• (o) Long-term debt

March 31, 2021 Unsecured bank loans $ 18,706,038 Secured bank loans 5,994,844 Less: current portion of long-term debt (551,740) Long-term debt $ 24,149,142 Unused credit facilities $ 16,372,725 Interest rate 0.67%~4.60% Maturity year 2021~ 2030	December 31, 2020 17,840,802 5,062,533 (536,537) 22,366,798 19,213,412 1.05%~4.60% 2021~ 2030	March 31, 2020 10,950,684 5,264,264 (355,189) 15,859,759 14,612,942 0.63%~4.90% 2021~ 2030

• (i) Collateral for bank borrowings

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

• (ii) Low interest rate loan from government assistance

In early 2020, the Group obtained the low interest rate loans from the bank in accordance with “Guidelines of Project Loans for Returning Overseas Taiwanese Businesses". The preferential interest rate is 0.63%~0.8128%. As of March 31, 2021, the related loan amount was $2,689,212. The estimated fair value of the loan was $2,644,705, using the prevailing market interest rate of 1.05%~1.30%. The difference of $44,507 was regarded as government grant and was recognized as deferred income. For the three months ended March 31, 2021, the deferred income of $6,320 was transferred and recognized in other income.

(Continued)

54

QISDA CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(iii) Compliance with loan agreement

According to the syndicated loan agreement signed between the Company and its subsidiary (QLLB), and the banks, the Company and QLLB have promised to maintain certain financial ratios based on the Group’ s semi-annual reviewed consolidated financial statements and annual audited consolidated financial statements. If the Group violates any of the related financial ratios, the Group should mend it in a specific period, and then the failure to maintain the required financial ratios would not be considered a default. The Group has also pledged the Company's stock to secure the syndicated loan and has to maintain the fair value of the related pledged stock at a specific percentage of the loan.

Furthermore, according to the syndicated loan agreement signed between BMC and the banks, BMC has promised to maintain certain financial ratios, including current ratio, debt ratio and minimum tangible net worth, based on BMC’ s annual audited consolidated financial statements. If BMC violates any of the related financial ratios, according to the syndicated loan agreement, BMC shall file an application for waiver and financial improvement plan to the managing bank. Failure to maintain the required financial ratios would not be considered a default unless a resolution is made by a majority of the banks to refuse to grant a waiver to BMC.

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

(p) Bonds payable

The details on Interactive Digital's unsecured convertible corporate bonds were as follows:

Total convertible corporate bonds issued Unamortized bond discount Cumulative converted amount Current portion of bonds payable Embedded derivative – call and put options, included in financial assets at fair value through profit or loss	March 31, 2021 $ 600,000 (13,069) (131,000) $ 455,931 $ 141	March 31, 2020 600,000 (17,393) (56,100) 526,507 543

As of March 31, 2021, the above convertible corporate bonds have been converted into 1,807 thousand shares of Interactive Digital’s common stock.

(Continued)

55

QISDA CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

In response to future operational needs, Interactive Digital purchased office buildings and warehouses. The issuance of unsecured convertible corporate bonds was approved by the Financial Supervisory Commission of the Republic of China on November 6, 2019. The related conditions are as follows:

Par value $600,000 Issued date November 22, 2019 Coupon rate 0% Issued period November 22, 2019 to November 22, 2022 Redemption at maturity Other than converting as Interactive Digital's ordinary share, or exercising put option, or early redeeming or repurchasing the bonds from securities dealers to write off, Interactive Digital will repay the convertible bond in cash at par value upon maturity.

• Redemption at the option 1.If the closing price of the Interactive Digital's ordinary share exceeds of Digital Interactive 30% of the conversion price for 30 consecutive trading days from 3 months after the issuance of the bonds to 40th day before maturity, Digital Interactive shall redeem the outstanding bonds at par value.

• 2.If the balance of the outstanding bonds is less than $60,000 from 3 months after the issuance of the bonds to 40th day before maturity, Digital Interactive shall redeem the outstanding bonds at par value.

Repurchase at the option If the bond has been issued for 2 years, the bondholder may request of bondholder Interactive Digital to redeem the bond at par value, plus interest, within 40th day before maturity. The interest rate for the bond issued for 2 years was 0.5% at par value. Conversion period The bondholder may request the stock agency of Interactive Digital to convert the bond to ordinary shares from the 3 months after issuance to maturity date, except during the period in which the transfer is suspended by laws.

Conversion price The conversion price was set at $ 78.5 (New Taiwan dollars) at the time of issuance. Starting July 27, 2020, the conversion price had been adjusted to $72.5 (New Taiwan dollars).

(Continued)

56

QISDA CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(q) Lease liabilities

Current: Related parties Non-related parties Non-current: Related parties Non-related parties	March 31, 2021 $ 94,030 353,360 $ 447,390 $ 68,930 1,411,946 $ 1,480,876	December 31, 2020 86,737 368,303 455,040 91,779 1,473,817 1,565,596	March 31, 2020
			85,554 318,173
			403,727
			162,497 1,358,996
			1,521,493

Please refer to note 6(ab) 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	For the three months ended March 31,	For the three months ended March 31,
	2021 $ 29,470 $ 11,539 $ 9,899	2020
		21,335
		10,544
		10,205

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

Total cash outflow for leases	For the three months ended March 31,	For the three months ended March 31,
	2021 $ 181,632	2020
		171,767

(i) Real estate leases

The Group leases buildings for its office, store and factory. The leases typically run for 3 to 10 years. The Group has to negotiate the new lease 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 Group leases transportation equipment, with lease terms of 1 to 5 years. In addition, the Group leases some plants, dormitory, and transportation equipment with contract terms within one year. These leases are short-term and the Group has elected to applied exemption and not to recognize right-of-use assets and lease liabilities.

(Continued)

57

QISDA CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(r) Provisions

Balance at March 31, 2021 Current Non-current Balance at December 31, March 31, 2020 Current Non-current Balance at March 31, 2020 Current Non-current	Warranties $ 1,496,424 $ 789,594 $ 672,368 $ 1,496,424 $ 808,823 $ 687,601 $ 1,048,782 $ 439,795 $ 608,987	Restructuring - - - - - - 1,000 1,000 -	Total
			1,496,424
			789,594
			672,368
			1,496,424
			808,823
			687,601
			1,049,782
			440,795
			608,987

There was no significant change in provision for the three months ended March 31, 2021 and 2020. Please refer to note 6(r) of the consolidated financial statements for the year ended December 31, 2020 for other related information.

(s) Operating lease—the Group acts as a lessor

There were no significant additions in operating lease contracts for the three months ended March 31, 2021 and 2020. Please refer to note 6(s) of the consolidated financial statements for the year ended December 31, 2020 for other related information.

(t) Employee benefits

(i) Defined benefit plans

Management believes that there was no material volatility of the market, no material curtailment and settlement or other material one-time events occurred during for the three months ended March 31, 2021 and 2020. As a result, the pension cost in the accompanying interim periods was measured and disclosed according to the actuarial report as of December 31, 2020 and 2019.

The expenses recognized in profit or loss were as follows:

			For the three	months
			ended March 31,
			2021	2020
Operating	cost	$	996	756
Operating	expenses		984	883
		$	1,980	1,639

(Continued)

58

QISDA CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(ii) Defined contribution plans

The pension expenses recognized in profit or loss were as follows:

			For the three	months
			ended March 31,
			2021	2020
Operating	cost	$	123,423	60,627
Operating	expenses		122,024	70,798
		$	245,447	131,425

(u) Income taxes

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

Income tax expense		For the three months ended March 31,	For the three months ended March 31,
			2020
			247,265

(ii) For the three months ended March 31, 2021 and 2020, there was no income tax recognized directly in equity or other comprehensive income.

• (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.

(v) Capital and other equity

(i) Common stock

As of March 31, 2021, December 31 and March 31, 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 March 31, 2021, December 31 and March 31, 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.

(Continued)

59

QISDA CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(ii) Capital surplus

March 31, 2021 Changes in equity of associates accounted for using the equity method $ 41,997 Changes in ownership interests in subsidiaries 1,788,013 Difference between consideration and carrying amount arising from acquisition or disposal of shares in subsidiaries - $ 1,830,010	December 31, 2020 97,612 1,781,889 - 1,879,501	March 31, 2020
		82,769 1,829,317 169,382
		2,081,468

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.

(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 could be approved by the Company's Board of Directors and then reported to the Company's shareholders in its meeting.

(Continued)

60

QISDA CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

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 Ruling No. 1010012865 issued by the Financial Supervisory Commission on April 6, 2012, 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.

3) Earnings distribution

The appropriation of 2020 and 2019 earnings were approved by the Company's Board of Directors on May 11, 2021 and May 7, 2020, respectively. The resolved appropriation of the dividend per share were as follows:

Dividends per share: Cash dividends	2020 2019 Dividends per share (in dollars) Amount Dividends per share (in dollars) Amount $ 1.50 2,950,173 0.75 1,475,086	2020 2019 Dividends per share (in dollars) Amount Dividends per share (in dollars) Amount $ 1.50 2,950,173 0.75 1,475,086
	Dividends per share (in dollars) $ 1.50	Amount
		1,475,086

(Continued)

61

QISDA CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(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 Shares of foreign currency translation differences of associates and joint ventures Balance at March 31

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 at fair value through other comprehensive income Disposal of financial assets at fair value through other comprehensive income Share of other comprehensive income (loss) of associates Balance at March 31 Remeasurement of defined benefit plans: Balance at January 1 (March 31)

• 3) Remeasurement of defined benefit plans:

(Continued)

62

QISDA CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(v) Non-controlling interests (net after tax)

Balance at January 1 Equity attributable to non-controlling interests Net income Difference between consideration and carrying amount arising from acquisition or disposal of shares in subsidiaries Stock option compensation cost of subsidiary Changes in ownership interest in subsidiaries Foreign currency translation differences Changes in equity of associates and joint ventures accounted for using the equity method Unrealized gain (loss) from financial assets measured at fair value through other comprehensive income Distribution of cash dividend by subsidiaries Capital injection from non-controlling interests Changes in non-controlling interests Balance at March 31

(w) Share-based payment

There was no significant change in share-based payment for the three months ended March 31, 2021 and 2020. Please refer to note 6(w) of the consolidated financial statements for the year ended December 31, 2020 for other related information.

(x) Earnings per share (“EPS”)

(i) Basic earnings per share

Profit attributable to shareholders of the Company Weighted-average number of ordinary shares outstanding (in thousands) Basic earnings per share (in New Taiwan dollars)		For the three months ended March 31,	For the three months ended March 31,
			2020
			232,521
			1,966,782
			0.12

(Continued)

63

QISDA CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(ii) Diluted earnings per share

		For the	three months ended	three months ended
			March 31,
		2021		2020
Profit attributable to shareholders of the Company	$	2,111,632		232,521
Weighted-average number of ordinary shares outstanding
(in thousands)		1,966,782		1,966,782
Effect of dilutive potential common stock:
Remuneration to employee		19,687		22,782
Weighted-average number of ordinary shares outstanding
(including effect of dilutive potential common stock)		1,986,469		1,989,564
Diluted earnings per share (in New Taiwan dollars)	$		1.06	0.12

(y) Revenue from contracts with customers

(i) Disaggregation of revenue

Primary geographical markets: Asia Europe America Others Major products/services lines: Electronic products Medical services Others		For the three months ended March 31, 2021	For the three months ended March 31, 2021	For the three months ended March 31, 2021	For the three months ended March 31, 2021
	DMS $ 7,195,171 7,981,606 8,159,943 578,618 $ 23,915,338 $ 23,695,663 - 219,675 $ 23,915,338	Brand 8,446,485 3,106,175 1,875,779 176,907 13,605,346 13,294,146 - 311,200 13,605,346	Material 4,060,545 5,572 5,345 1,443 4,072,905 4,072,905 - - 4,072,905	Networks 1,297,630 1,276,859 4,435,860 182,938 7,193,287 7,109,273 - 84,014 7,193,287	Medical 2,116,805 - - - 2,116,805 - 2,116,805 - 2,116,805	Total 23,116,636 12,370,212 14,476,927 939,906
						50,903,681
						48,171,987 2,116,805 614,889
						50,903,681

(Continued)

64

QISDA CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

For the three months ended March 31, 2020 DMS Brand Material Medical Total Primary geographical markets: Asia $ 12,068,276 7,444,496 3,417,911 1,377,485 24,308,168 Europe 2,460,025 2,863,981 6,383 - 5,330,389 America 7,164,953 1,763,447 15,033 - 8,943,433 Others 212,551 402,868 2,757 - 618,176 $ 21,905,805 12,474,792 3,442,084 1,377,485 39,200,166 Major products/services lines: Electronic products $ 21,613,769 12,180,353 3,424,860 - 37,218,982 Medical services - - - 1,377,485 1,377,485 Others 292,036 294,439 17,224 - 603,699 $ 21,905,805 12,474,792 3,442,084 1,377,485 39,200,166 (ii) Contract balances March 31, 2021 December 31, 2020 March 31, 2020 Notes and accounts receivable (including related parties) $ 31,042,114 36,788,992 25,233,731 Less: loss allowance (250,183) (287,066) (374,268) $ 30,791,931 36,501,926 24,859,463 Contract liabilities $ 2,193,611 1,862,107 1,400,391	For the three months ended March 31, 2020
		Total
		24,308,168 5,330,389 8,943,433 618,176
		39,200,166
		37,218,982 1,377,485 603,699
		39,200,166

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

The amount of revenue recognized for the three months ended March 31, 2021 and 2020 that were included in the contract liability balance at January 1, 2021 and 2020, were $615,140 and $448,886, respectively.

(z) 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)

65

QISDA CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

For the three months ended March 31, 2021 and 2020, the Company estimated its remuneration to employees amounting to $236,597 and $29,644, respectively, and the remuneration to directors amounting to $17,745 and $2,223, 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 2020 were $429,669 and $42,925, respectively, which were the same as the amount approved by the Board of Directors on March 23, 2021 and paid in cash. Related information is available on the Market Observation Post System website of the Taiwan Stock Exchange.

• (aa) Non-operating income and loss

• (i) Interest income

Interest income from bank deposits		For the three months ended March 31,	For the three months ended March 31,
			2020
			84,029

• (ii) Other income

Government grants income Dividend income Other gains and losses－net Loss on disposal of property, plant and equipment Gain on disposal of investments (notes 6(h) and (i)) Foreign currency exchange gains (losses) Gains on financial instruments at fair value through profit or loss Gain on disposal of non-current assets/liabilities held for sale (note 6(g)) Others

－ (iii) Other gains and losses net

(Continued)

66

QISDA CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(iv) Finance costs

Interest expense of bank loans Interest expense on lease liabilities		For the three months ended March 31,	For the three months ended March 31,
			2020
			211,886 10,205
			222,091

(ab) Financial instruments

Except for the contents mentioned below, there were no significant changes in the fair value of the Group’s financial instruments and the degree of exposure to credit risk and market risk arising from financial instruments. For the related information, please refer to notes 6(ab) and 6(ac) of the consolidated financial statements for the year ended December 31, 2020.

(i) Liquidity risk

Liquidity risk is the risk that the Group will encounter difficulty in settling its financial liabilities by delivering cash or other financial assets. The Group 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 March 31, 2021, December 31 and March 31, 2020, the Group had unused credit facilities of $82,184,183, $76,207,823 and $51,048,856, respectively.

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

March 31, 2021 Non-derivative financial liabilities: Short-term borrowings Financial liabilities at fair value through profit or loss－ contingent consideration (including current and non current portion) Lease liabilities (including current portion and related parties) Long-term debt (including current portion) Bonds payable Notes and accounts payable (including related parties) Other payables (including related parties) Guarantee deposits Derivative financial instruments: Foreign currency forward contracts: Outflow Inflow Foreign exchange swaps: Outflow Inflow	Contractual cash flows $ 22,621,033 185,556 2,114,388 26,208,293 469,000 36,913,638 10,753,629 1,185,578 $ 100,451,115 $ 10,854,267 (10,827,214) 6,718,497 (6,694,591) $ 50,959	Within 6 months 21,402,205 5,848 229,563 426,969 469,000 36,913,638 10,753,629 - 70,200,852 10,854,267 (10,827,214) 6,718,497 (6,694,591) 50,959	6-12 months 1,218,828 5,848 235,983 509,514 - - - - 1,970,173 - - - - -	1-2 years - 10,054 349,222 3,670,123 - - - - 4,029,399 - - - - -	2-5 years - 15,081 797,037 20,568,487 - - - 1,185,578 22,566,183 - - - - -	More than 5 years - 148,725 502,583 1,033,200 - - - -
						1,684,508
						- - - -
						-

(Continued)

67

QISDA CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

December 31, 2020 Non-derivative financial liabilities: Short-term borrowings Financial liabilities at fair value through profit or loss－ contingent consideration (including current and non current portion) Lease liabilities (including current portion and related parties) Long-term debt (including current portion) Bonds payable Notes and accounts payable (including related parties) Other payables (including related parties) Guarantee deposits Derivative financial instruments: Foreign currency forward contracts: Outflow Inflow Foreign exchange swaps: Outflow Inflow March 31, 2020 Non-derivative financial liabilities: Short-term borrowings Financial liabilities at fair value through profit or loss－ contingent consideration (including current and non current portion) Lease liabilities (including current portion and related parties) Long-term debt (including current portion) Notes and accounts payable (including related parties) Other payables (including related parties) Guarantee deposits Derivative financial instruments: Foreign currency forward contracts: Outflow Inflow Foreign exchange swaps: Outflow Inflow	Contractual cash flows $ 21,170,029 82,766 2,093,994 23,880,844 526,507 40,526,320 12,031,368 1,621,811 $ 101,933,639 $ 11,996,316 (11,983,608) 4,879,885 (4,869,127) $ 23,466 $ 23,658,781 99,849 2,100,422 17,241,694 25,241,162 7,950,642 1,566,185 $ 77,858,735 9,425,740 (9,499,439) 4,716,939 (4,714,865) $ (71,625)	Within 6 months 20,146,732 2,248 240,971 250,870 526,507 40,526,320 12,031,368 - 73,725,016 11,996,316 (11,983,608) 4,879,885 (4,869,127) 23,466 22,430,199 1,837 217,511 174,454 25,241,162 7,950,642 - 56,015,805 9,425,740 (9,499,439) 4,716,939 (4,714,865) (71,625)	6-12 months 1,023,297 2,395 233,250 580,142 - - - - 1,839,084 - - - - - 1,228,582 2,104 232,867 476,779 - - - 1,940,332 - - - - -	1-2 years - 2,096 372,429 5,633,250 - - - - 6,007,775 - - - - - - 19,433 407,025 2,777,421 - - - 3,203,879 - - - - -	2-5 years - 76,027 738,413 16,550,607 - - - 1,621,811 18,986,858 - - - - - - 76,475 785,187 12,769,307 - - 1,566,185 15,197,154 - - - - -	More than 5 years - - 508,931 865,975 - - - -
						1,374,906
						- - - -
						-
						- - 457,832 1,043,733 - - -
						1,501,565
						- - - -
						-

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

(Continued)

68

QISDA CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(ii) Foreign currency risk

The Group’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 respective functional currencies of Group entities. At the reporting date, the carrying amounts of the Group’ s significant monetary assets and liabilities denominated in a currency other than the respective functional currencies of Group entities and their respective sensitivity analysis were as follows (including the monetary items that have been eliminated in the accompanying consolidated financial statements):

March 31, 2021

Financial assets Monetary items USD EUR CNY JPY Non-monetary items CNY Financial liabilities Monetary items USD EUR CNY JPY	Foreign currency (in thousands) $ 1,193,717 77,637 1,833,152 3,229,585 65,460 1,447,937 41,148 1,562,465 8,179,488	Exchange rate 28.5300 33.6080 4.3359 0.2579 4.3359 28.5300 33.6080 4.3359 0.2579	TWD (in thousands) 34,056,746 2,609,224 7,948,364 832,910 283,828 41,309,643 1,382,902 6,774,692 2,109,490	Change in magnitude Effect on profit or loss (in thousands) % 1 340,567 % 1 26,092 % 1 79,484 % 1 8,329 - - % 1 413,096 % 1 13,829 % 1 67,747 % 1 21,095

(Continued)

69

QISDA CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

Financial assets Monetary items USD EUR CNY JPY Non-monetary items CNY Financial liabilities USD EUR CNY JPY Financial assets Monetary items USD EUR CNY JPY Non-monetary items CNY Financial liabilities Monetary items USD EUR CNY JPY		December 31, 2020	December 31, 2020
	Foreign currency (in thousands) $ 1,553,657 82,529 1,601,226 3,109,307 57,498 1,749,975 41,796 1,615,273 7,424,353	Exchange rate TWD (in thousands) 28.3500 44,046,176 34.9560 2,884,884 4.3216 6,919,858 0.2749 854,748 4.3216 248,483 28.3500 49,611,791 34.9560 1,461,021 4.3216 6,980,564 0.2749 2,040,955 March 31, 2020		Change in magnitude Effect on profit or loss (in thousands) % 1 440,462 % 1 28,849 % 1 69,199 % 1 8,547 - - % 1 496,118 % 1 14,610 % 1 69,806 % 1 20,410
	Foreign currency (in thousands) $ 1,098,883 63,635 971,323 2,706,352 72,858 1,024,103 44,443 1,115,462 5,689,628	Exchange rate 30.2540 33.3400 4.2611 0.2794 4.2611 30.2540 33.3400 4.2611 0.2794	TWD (in thousands) 33,245,606 2,121,591 4,138,904 756,155 310,455 30,983,212 1,481,730 4,753,095 1,589,682	Change in magnitude Effect on profit or loss (in thousands) % 1 332,456 % 1 21,216 % 1 41,389 % 1 7,562 - - % 1 309,832 % 1 14,817 % 1 47,531 % 1 15,897

(Continued)

70

QISDA CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

As the Group deals in diverse foreign currencies, gains and losses on foreign exchange were summarized as a single amount. Refer to note 6(aa) for the aggregate of realized and unrealized foreign exchange gain (loss) for the three months ended March 31, 2021 and 2020.

(iii) Categories of financial instruments

1) Financial assets

Financial assets at fair value through profit or loss (including current and non-current) Financial assets at fair value through other comprehensive income(including current and non-current) Financial assets measured at amortized cost: Cash and cash equivalents Notes and accounts receivable and other receivables (including related parties) Other financial assets (including current and non-current) Subtotal Total	March 31, 2021 $ 377,398 2,707,348 23,628,853 32,147,938 6,016,150 61,792,941 $ 64,877,687	December 31, 2020 562,774 1,477,680 22,540,418 37,480,213 3,672,698 63,693,329 65,733,783	March 31, 2020
			559,846
			1,249,020
			13,914,205 26,268,258 8,009,479
			48,191,942
			50,000,808

(Continued)

71

QISDA CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

2) Financial liabilities

Financial liabilities at fair value through profit or loss: Held-for-trading Contingent consideration arising from business combinations Subtotal 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) Bonds payable (including current portion) Other non-current liabilities－ guarantee deposits Subtotal Total	March 31, 2021 $ 139,689 104,415 244,104 22,575,916 47,667,267 1,928,266 24,700,882 455,931 1,185,578 98,513,840 $ 98,757,944	December 31, 2020 135,018 82,766 217,784 21,131,930 52,557,688 2,020,636 22,903,335 526,507 1,621,811 100,761,907 100,979,691	March 31, 2020
			94,466 99,849
			194,315
			23,583,682 33,191,804 1,925,220 16,214,948 - 1,566,185
			76,481,839
			76,676,154

• (iv) Fair value information - financial instruments not measured at fair value

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

(v) Fair value information - Financial instruments measured at fair value

• 1) Fair value hierarchy

The financial department of the Group evaluates the fair value of financial instruments 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.

(Continued)

72

QISDA CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

The financial instruments at fair value throughs profit and loss and financial assets at fair value through other comprehensive income are measured at fair value on a recurring basis. The lease liabilities are not required to disclose the fair value. 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 Open-end mutual funds Listed stocks Embedded derivative– call and put options of convertible bonds Privately held equity securities Put option Contingent consideration arising from business combinations Subtotal Financial assets at fair value through other comprehensive income: Domestic listed stocks Domestic emerging stock Privately held equity securities Subtotal Total Financial liabilities at fair value through profit and loss: Foreign currency forward contracts Foreign exchange swaps Contingent consideration arising from business combinations Total		March 31, 2021	March 31, 2021	Total 82,264 6,466 30,402 57,612 141 184,476 10,504 5,533 377,398 300,242 1,918,863 488,243 2,707,348 3,084,746 (109,317) (30,372) (104,415) (244,104)
		Fair Value
	Level 1 $ - - 30,402 57,612 - - - - 88,014 300,242 - - 300,242 $ 388,256 $ - - - $ -	Level 2 82,264 6,466 - - 141 - - - 88,871 - 1,918,863 - 1,918,863 2,007,734 (109,317) (30,372) - (139,689)	Level 3 - - - - - 184,476 10,504 5,533 200,513 - - 488,243 488,243 688,756 - - (104,415) (104,415)

(Continued)

73

QISDA CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

Financial assets at fair value through profit and loss: Foreign currency forward contracts Foreign exchange swaps Open-end mutual funds Listed stocks Embedded derivative– call and put options of convertible bonds Privately held equity securities Put option Contingent consideration arising from business combinations Subtotal Financial assets at fair value through other comprehensive income: Domestic listed stocks Domestic emerging stock Privately held equity securities Subtotal Total Financial liabilities at fair value through profit and loss: Foreign currency forward contracts Foreign exchange swaps Contingent consideration arising from business combinations Total		December 31, 2020	December 31, 2020	Total 96,940 14,612 208,054 68,894 543 157,694 10,504 5,533 562,774 296,043 761,132 420,505 1,477,680 2,040,454 (109,648) (25,370) (82,766) (217,784)
		Fair Value
	Level 1 $ - - 208,054 68,894 - - - - 276,948 296,043 - - 296,043 $ 572,991 $ - - - $ -	Level 2 96,940 14,612 - - 543 - - - 112,095 - 761,132 - 761,132 873,227 (109,648) (25,370) (2,248) (137,266)	Level 3 - - - - - 157,694 10,504 5,533 173,731 - - 420,505 420,505 594,236 - - (80,518) (80,518)

(Continued)

74

QISDA CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

Financial assets at fair value through profit and loss: Foreign currency forward contracts Foreign exchange swaps Open-end mutual funds Privately held equity securities Put option Contingent consideration arising from business combinations Subtotal Financial assets at fair value through other comprehensive income: Domestic listed stocks Domestic emerging stock Privately held equity securities Subtotal Total Financial liabilities at fair value through profit and loss: Foreign currency forward contracts Foreign exchange swaps Contingent consideration arising from business combinations Total		March 31, 2020	March 31, 2020	Total 158,277 7,814 263,309 114,409 10,504 5,533 559,846 306,154 486,414 456,452 1,249,020 1,808,866 (84,578) (9,888) (99,849) (194,315)
		Fair Value
	Level 1 $ - - 263,309 - - - 263,309 306,154 - - 306,154 $ 569,463 $ - - - $ -	Level 2 158,277 7,814 - - - - 166,091 - 486,414 - 486,414 652,505 (84,578) (9,888) (12,622) (107,088)	Level 3 - - - 114,409 10,504 5,533 130,446 - - 456,452 456,452 586,898 - - (87,227) (87,227)

• 2) 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 and open-end mutual funds with standard terms and conditions and traded in active markets. The fair value is based on quoted market prices.

Except for the abovementioned financial instruments traded in an active market, the fair value of other financial instruments are based on the valuation techniques or the quotation from counterparty. The fair value using valuation techniques refers to the current fair value of other financial instruments with similar conditions and characteristics, or using a discounted cash flow method, or other valuation techniques which include model calculating with observable market data at the reporting date.

(Continued)

75

QISDA CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

For the Group’s financial instruments that are not traded in active markets, the fair values are determined as follows:

• The fair value of the Group’s domestic emerging stock is determined based on the average stock price on the emerging market at the reporting date.

• Discounted cash flow model is used to estimate the fair value of contingent consideration arising from business combination. The contingent consideration is estimated based on the possibility of occurrence of amount to be paid and discounted to the present value.

• The fair value of privately held stock is estimated by using the market approach and is determined by reference to valuations of similar companies, net worth and recent operating activities. The significant unobservable inputs is primarily the liquidity discounts. No quantitative information is disclosed due to that the possible changes in liquidity discounts would not cause significant potential financial impact.

• b) Derivative financial instruments

The fair value of derivative financial instruments is determined using a valuation techniques generally accepted by market participants. The fair value of foreign currency forward contracts and foreign exchange swaps contracts is usually determined by the forward exchange rate. Call and put options are measured based on appropriate option pricing model.

• 3) Transfers between levels of the fair value hierarchy

There was no transfer among fair value hierarchies for the three months ended March 31, 2021 and 2020.

• 4) Movement in financial assets included in Level 3 fair value hierarchy

Financial assets at fair value through profit or loss:

		For the three months ended	For the three months ended
		March 31,
		2021	2020
Balance at January 1	$	173,731	120,399
Recognized in profit or loss		26,782	10,047
Balance at March 31	$	200,513	130,446

(Continued)

76

QISDA CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

Financial assets at fair value through other comprehensive income:

		For the three months ended	For the three months ended
		March 31,
		2021	2020
Balance at January 1	$	420,505	344,743
Additions		33,900	60,000
Recognized in other comprehensive income		33,838	51,709
Balance at March 31	$	488,243	456,452

Financial liabilities at fair value through profit or loss:

		For the three months ended	For the three months ended
		March 31,
		2021	2020
Balance at January 1	$	80,518	87,227
Recognized in profit or loss		23,897	-
Balance at March 31	$	104,415	87,227

－ The above-mentioned total gains or losses were included in “other gains and losses net” and “unrealized gains (losses) from investments in equity instruments measured at fair value through other comprehensive income” . The gains or losses attributable to the assets and liabilities held on March 31, 2021 and 2020 were as follows:

		For the three months ended	For the three months ended
		March 31,
		2021	2020
Total gains or losses:
Recognized in profit or loss (included in other
gains and losses－net)	$	2,885	10,047
Recognized in other comprehensive income
(included in “unrealized gains (losses) from
investments in equity instruments measured at
fair value through other comprehensive
income”)		33,838	51,709

• (ac) Financial risk management

There were no significant changes in the Group’ s financial risk management and policies as disclosed in note 6(ac) of the consolidated financial statements for the year ended December 31, 2020.

(Continued)

77

QISDA CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(ad) Capital management

The objectives, policies and processes of capital management of the Group are in conformity with those disclosed in the consolidated financial statements for the year ended December 31, 2020. There were no significant changes in the Group’s capital management information as disclosed for the year ended December 31, 2020. Please refer to note 6(ad) of the consolidated financial statements for the year ended December 31, 2020 for related details.

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

• (i) For acquisition of right-of-use assets under lease for the three months ended March 31, 2021 and 2020, please refer to note 6(k).

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

Short-term borrowings Long-term debt (including current portion) Bonds payable (including current portion) Lease liabilities Guarantee deposits Short-term borrowings Long-term debt Lease liabilities Guarantee deposits	January 1, 2021 $ 21,131,930 22,903,335 526,507 2,020,636 1,621,811 $ 48,204,219 January 1, 2020 $ 19,902,070 17,074,810 2,013,107 1,606,232 $ 40,596,219	Cash flows 1,435,698 1,804,118 - (142,263) (436,233) 2,661,320 Cash flows 3,676,857 (839,671) (140,227) (40,047) 2,656,912	Non-cash changes	Non-cash changes	Effect of foreign exchange rate 2,288 (6,571) (70,576) (23,268) - (98,127) Effect of foreign exchange rate - (20,191) - - (20,191)	March 31, 2021 22,575,916 24,700,882 455,931 1,928,266 1,185,578
			Acquisition through business combination Additions 6,000 - - - - - 23,013 50,148 - - 29,013 50,148 Non-cash changes Acquisition through business combination Additions 4,755 - - - 2,678 49,662 - - 7,433 49,662
						50,846,573
						March 31, 2020 23,583,682 16,214,948 1,925,220 1,566,185
				Additions - - 49,662 - 49,662
						43,290,035

(Continued)

78

QISDA CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

7. Related-party transactions

(a) Name and relationship with related parties

The following are the entities that have had transactions with the Group during the periods covered in the consolidated financial statements.

Name of related party

AU Optronics Corp. (“AU”) Darfon Electronics Corp. (“DFN”) Visco Vision Inc. (“Visco Vision”) Cenefom Corp. (“CENEFOM”) Q.S.Control Corp. TDX Medical Technology (Jiangsu) Co., Ltd Nanjing Silvertown Health & Development Co., Ltd (“NSHD”) Alpha Networks Inc. (“Alpha”)

DMC Components International, LLC. (“DMC”) Darwin Precisions Corporation (“Darwin”) AU Optronics (L) Corp. (“AUL”) AU Optronics (Suzhou) Corp. (“AUSZ”) AU Optronics (Kunshan) Co., Ltd. (“AUKS”) a.u. Vista Inc. (“AUVI”) AU Optronics (Xiamen) Corp. (“AUXM”) AUO Care Information Tech. (Suzhou) Co., Ltd. (“A-Care”) BriView (HF) Corp. (“BVHF”) Darwin Precisions (Xiamen) Corp. (“DPXM”) Darwin Precisions (Suzhou) Corp. Fortech Electronics (Kunshan) Co., Ltd. (“FTKS”) Fortech Electronics (Suzhou) Co., Ltd. (“FTWJ”) AUO Crystal Corp. (“ACTW”) Darfon America Corp. (“DFA”) Darfon Electronics Czech s.r.o (“DFC”) Darfon Electronics (Suzhou) Co., Ltd. (“DFS”) Huaian Darfon Electronics Co., Ltd. (“DFH”) Darfon Electronics (Chongqing) Co., Ltd. (“DFQ”) Darfon Precisions (Suzhou) Co., Ltd. (“DPS”) Dragon Photonics Inc. (“Dragon”) Visco Technology Sdn. Bhd. (“VVM”) Visco Med Sdn. Bhd. (“VMM”) BenQ Foundation

Relationship with the Group The Group's associates The Group's associates The Group's associates The Group's associates The Group's associates The Group's joint venture The Group's associates

Prior to July 2020, Alpha was an associate of the Group. However, starting July 23, 2020, Alpha has been included in the Group’s consolidated entities The Group's associates AU's subsidiaries AU's subsidiaries AU's subsidiaries AU's subsidiaries AU's subsidiaries AU's subsidiaries AU's subsidiaries AU's subsidiaries AU's subsidiaries AU's subsidiaries AU's subsidiaries AU's subsidiaries AU's subsidiaries DFN's subsidiaries DFN's subsidiaries DFN's subsidiaries DFN's subsidiaries DFN's subsidiaries DFN's subsidiaries Visco Vision's subsidiaries Visco Vision's subsidiaries Visco Vision's subsidiaries Substantive related party

(Continued)

79

QISDA CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(b) Significant related-party transactions

(i) Revenue

Associates: AU AUSZ Other associates		For the three months ended March 31,	For the three months ended March 31,
			2020
			2,028,368 756,137 256,707
			3,041,212

The sales prices for some of the abovementioned transactions were not comparable to the sales prices for third-party customers as the specifications of products were different. For the other transactions, 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.

(ii) Purchases

Associates: AU Other associates		For the three months ended March 31,	For the three months ended March 31,
			2020
			1,939,845 116,178
			2,056,023

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.

(iii) Lease

The Group leased factory and office from AU, and the rent is paid monthly with reference to the nearby office rental rates. For the three months ended March 31, 2021 and 2020, the related interest expense on lease liabilities amounted to $2,006 and $1,216, respectively. As of March 31, 2021, December 31 and March 31, 2020, the balance of the lease liabilities amounted to $162,960, $178,516, and $248,051, respectively. Please refer to the note 6(q).

(Continued)

80

QISDA CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

The Group leased its plant and office to associates. For the three months ended March 31, 2021 and 2020, the rental income were as follows:

Associates		For the three months ended March 31,	For the three months ended March 31,
			2020
			7,108

(iv) Receivables

The receivables from related parties due to the abovementioned sales, disposal of assets due to spin-off, distribution of cash dividends, and payment made on behalf of associates were as follows:

Account Related-party categories March 31, 2021 Accounts receivable Associates: AU $ 1,851,479 AUSZ 957,286 Other associates 303,138 $ 3,111,903 Other receivables Associates: NSHD $ 289,423 Other associates 10,414 $ 299,837 Other receivables (dividend) Associates: AU $ 199,080 DFN 180,053 Other associates 8,356 $ 387,489	December 31, 2020 2,089,736 942,534 248,099 3,280,369 287,690 14,709 302,399 - - - -	March 31, 2020
		998,099 813,941 164,897
		1,976,937
		289,892 13,094
		302,986
		- 165,649 63,221
		228,870

(v) Payables

The payables to related parties due to the abovementioned purchases and advance payments made by associates on behalf of the Group were as follows:

Account Related party categories Accounts payable Associates: AU Other associates Other payables Associates Lease liabilities-current Lease liabilities— non-current	March 31, 2021 $ 1,718,045 260,508 $ 1,978,553 13,288 $ 94,030 $ 68,930	December 31, 2020 - 1,941,157 186,379 2,127,536 16,151 86,737 91,779	March 31, 2020
			928,354 142,155
			1,070,509
			44,149
			85,554
			162,497
			(Continued)

81

QISDA CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(c) Compensation for key management personnel

		For the three months ended	For the three months ended
		March 31,
		2021	2020
Short-term employee benefits	$	49,073	40,471
Post-employment benefits		198	216
	$	49,271	40,687

8. Pledged assets

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

Pledged assets	Pledged to secure	March 31, 2021 $ 75,322 521,682 217,599 2,593,857 4,148,831 125,481 926,558 - 147,080 - - $ 8,756,410	December 31, 2020 63,853 518,390 151,984 5,933,504 4,175,702 125,882 923,503 - 106,501 - 80,742 12,080,061	March 31, 2020
Other financial assets－ current (time deposits) Other financial assets－ non- current (special deposit account) Other financial assets－ non- current Common stock of investments accounted for using the equity method Land and buildings Investment property Right-of-use assets (land use rights) Refundable deposits Notes and accounts receivable Inventories Machinery	Credit lines of bank loans and guarantee for tax clearance certificate and performance guarantee Restrictions on utilization of repatriated offshore funds Guarantee for construction project, guarantee to lawsuits, and guarantee for land lease Credit lines of bank loans Credit lines of bank loans Credit lines of bank loans Credit lines of bank loans Credit lines of bank loans Credit lines of bank loans Credit lines of bank loans Credit lines of bank loans			64,753 - - 5,486,272 4,318,103 154,354 919,072 522 67,484 101,829 -
				11,112,389

(Continued)

82

QISDA CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

9. Significant commitments and contingencies

• (a) Significant unrecognized commitments

Unused letters of credit	March 31, 2021 $ 1,307,394	December 31, 2020 1,097,310	March 31, 2020
			1,170,908

• (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 retained counsel to handle the related matters. Currently, the lawsuit is still in progress.

10. Significant loss from disaster: None.

11. Significant subsequent events

• (a) In order to enhance its vertical integration capabilities, strengthen Simula’s ability to penetrate into the smart connector solution market, and serve the needs of customers such as smart enterprises, medical and automotive, Simula acquired 32,424,572 common stock of Action Star Technology Co., Ltd. (“AST”) at a price of TWD30.81 per share, wherein the total transaction amount would not exceeded $998,910, based on a resolution approved during the shareholders’ special meeting held on April 9, 2021. After completion of the above transaction, Simula is expected to hold 60.13% ownership of AST. On April 12, 2021, Simula has paid the amount of $983,858 to obtain 59.35% ownership of AST.

• (b) In order to implement the channel-first strategy and accelerate the development of DFI in the U.S. market, DFI entered into a share and purchase agreement on April 29, 2021 to invest the amount of US$17,970 thousand in Brainstorm Corporation, wherein DFI obtained 35.09% ownership of Brainstorm Corporation, based on the resolution approved during the board meeting of DFI held on March 22, 2021.

12. Others

• (a) Employee benefits, depreciation, and amortization categorized by function were as follows:

	For the three months ended March 31, 2021	For the three months ended March 31, 2021	For the three months ended March 31, 2021	For the three months ended March 31, 2020	For the three months ended March 31, 2020	For the three months ended March 31, 2020
	Cost of sales	Operating expenses	Total	Cost of sales	Operating expenses	Total
Employee benefits: Salaries Insurance Pension Others Depreciation Amortization	2,427,663 191,556 124,419 260,822 603,431 14,276	2,827,236 246,171 123,008 194,249 315,087 208,138	5,254,899 437,727 247,427 455,071 918,518 222,414	1,752,738 129,409 61,383 121,093 498,334 21,997	1,989,679 177,580 71,681 145,093 232,267 86,587	3,742,417 306,989 133,064 266,186 730,601 108,584

(Continued)

83

QISDA CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

• (b) Seasonality operations

The Group’s operations were not significantly influenced by seasonality or cyclicality factors.

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 period 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: None.

• (vi) Disposal of real estate which exceeds $300 million or 20% of the paid-in capital: None

• (vii) Total purchases from and sales to related parties which exceed $100 million or 20% of the paid-in capital: Table 5 (attached)

• (viii) Receivables from related parties which exceed $100 million or 20% of the paid-in capital: Table 6 (attached)

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

• (x) Business relationships and significant intercompany transactions: Table 7 (attached)

• (b) Information on investees : Table 8 (attached)

• (c) Information on investment in Mainland China: Table 9 (attached)

• (d) Major shareholders:

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

(Continued)

84

QISDA CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

14. Segment information

The Group’s operating segment information and reconciliation are as follows:

External revenue Intra-group revenue Total segment revenue Segment profit (loss) External revenue Intra-group revenue Total segment revenue Segment profit (loss)						For the	For the	three months end	three months end	ed March 31, 2	ed March 31, 2	021	021
			DMS 23,915,338 2,533,365 26,448,703 605,749	Brand 13,605,346 132,993 13,738,339 823,114		Material 4,072,905 3,377 4,076,282 148,502 For the		Medical 2,116,805 370 2,117,175 10,664 three months end		Networks 7,193,287 - 7,193,287 101,661 ed March 31, 20		Others - - - (368) 20			Eliminations - (2,670,105) (2,670,105) 28,552				Total
	$ $ $																		50,903,681 -
																			50,903,681
																			1,717,874
								three m		ed Marc		20
			DMS		Brand		Material		Medic		Othe	rs (52)	Elim	i				T
											- -
											-

QISDA CORPORATION AND SUBSIDIARIES Financing provided to other parties For the three months ended March 31, 2021

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

Table 1

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
8 8 8 7 7 6 5 4 4 3 2 1 1 1 1 0	BMS BMS BMS QCOS QCOS NMHC BIC BBM BBM QLPG QLLB BenQ BenQ BenQ BenQ The Company	BenQ Materials Medical Supplies (Suzhou) Co., Ltd (“BMM ”)(Note 21) Suzhou Sigma Medical Supplies Co., Ltd. (“SMSZ”)(Note 21) BenQ Meterials (Wuhu) Co., Ltd.(Note 21) Qisda (Shanghai) Co., Ltd. (“QCSH”)(Note 21) Suzhou BenQ Hospital Co., Ltd. (“SMH”)(Note 21) Nanjing BenQ Hospital Co., Ltd.(“NMH”)(Note 21) Suzhou BenQ Hospital Co., Ltd. (“SMH”)(Note 21) Nanjing BenQ Hospital Co., Ltd.(“NMH”) Suzhou BenQ Hospital Co., Ltd. (“SMH”) QLLB Qisda (Shanghai) Co., Ltd. (“QCSH”) Darly C Darly 2 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	yes yes yes yes yes yes yes yes yes yes yes yes yes yes yes yes	200,000 256,770 (USD 9,000) 142,650 (USD 5,000) 200,000 300,000 1,654,740 (USD 58,000) 105,890 (MYR 15,000) 128,385 (USD 4,500) 855,900 (USD 30,000) 21,680 (CNY 5,000) 22,547 (CNY 5,200) 737,103 (CNY 170,000) 52,031 (CNY 12,000) 1,149,014 (CNY 265,000) 86,718 (CNY 20,000) 130,077 (CNY 30,000)	- 256,770 (USD 9,000) 142,650 (USD 5,000) - - 1,654,740 (USD 58,000) 103,245 (MYR 15,000) 128,385 (USD 4,500) 855,900 (USD 30,000) 21,680 (CNY 5,000) 22,547 (CNY 5,200) 737,103 (CNY 170,000) 52,031 (CNY 12,000) 1,149,014 (CNY 265,000) 86,718 (CNY 20,000) 130,077 (CNY 30,000)	- 256,770 (USD 9,000) 142,650 (USD 5,000) - - 1,654,740 (USD 58,000) 103,245 (MYR 15,000) 14,265 (USD 500) - 21,680 (CNY 5,000) 22,547 (CNY 5,200) 737,103 (CNY 170,000) 52,031 (CNY 12,000) 864,145 (CNY 199,300) 26,015 (CNY 6,000) 30,351 (CNY 7,000)	1.30% 1.30% 1.30% 2.00%~2.30% 3.60% 1.00% 1.00% - - 3.20% - - - 0.75% - -	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	- - - - - - - - - - - - - - - -	- - - - - - - - - - - - - - - -	- - - - - - - - - - - - - - - -	1,892,589 1,892,589 1,892,589 3,898,431 1,502,808 23,873 335,066 1,683,184 1,683,184 7,796,861 7,796,861 1,817,000 1,817,000 1,817,000 1,817,000 7,796,861	1,892,589 1,892,589 1,892,589 38,984,305 1,502,808 23,873 335,066 1,683,184 1,683,184 15,593,722 15,593,722 3,634,000 3,634,000 3,634,000 3,634,000 15,593,722

� 85 �

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
18 18 17 16 15 14 13 12 12 11 10 10 9	Hitron Technologies Hitron Technologies Alpha Networks (Chengdu) Co., Ltd. Mirac Networks (Dongguan) Co., Ltd. Alpha HK AEWIN Hong Kong Ace Pillar Enterprise Company Limited Grace Transmission (Tianjin) Co., Ltd. Grace Transmission (Tianjin) Co., Ltd. Cyber South Ace Pillar Co., Ltd. Ace Pillar Co., Ltd. PTT	Hitron Technologies (Vietnam) Inc. Hitron Technologies (SIP) Inc. Alpha Networks (Changshu) Co., Ltd. Alpha Networks (Changshu) Co., Ltd. Alpha Networks (Changshu) Co., Ltd. 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. Tianjin Ace Pillar Co., Ltd. Corex (Pty) 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	yes yes yes yes yes yes yes yes yes yes yes yes yes	113,400 (USD 4,000) 231,833 28,530 15,692 2,602 13,008 17,344 85,590 927,225 (USD 32,500) 129,231 (CNY 30,000) 86,154 (CNY 20,000) 427,950 427,950	- 231,883 28,530 15,692 2,602 13,008 17,344 85,590 927,225 (USD 32,500) - - 427,950 427,950	- 146,293 - 15,692 2,602 13,008 - 18,259 927,225 (USD 32,500) - - - 427,950	1.00% 1.00% - - - - 1.80% 1.80% 1.80% 1.15% - 0.00%-4.35% -	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	- - - - - - - - - - - - -	- - - - - - - - - - - - -	- - - - - - - - - - - - -	498,968 498,968 563,694 301,626 2,188,263 230,546 40,797 38,694 38,694 597,432 404,404 404,404 387,639	1,995,872 1,995,872 563,694 301,626 2,188,263 461,093 40,797 38,694 38,694 597,432 808,808 808,808 387,639

� 86 �

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
19	Jietech Trading (Suzhou) Inc.	Hitron Technologies (SIP) Inc.	Other receivables from related parties	yes	21,680	21,680	-	2.00%	2	-	Operating requirements	-	-	-	32,420	32,420

• (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 to subsidiaries wholly owned by the Company and the individual financing amount of QLLB shall not exceed 40% and 20%, respectively, of the most recent audited or reviewed net worth of the Company. The aggregate financing amount to subsidiaries not wholly owned by the Company and the individual financing amount of QLLB shall not exceed 40% and 20%, respectively, 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.

• (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 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.

• (Note 20) Purpose of Fund Financing: 1.Business transaction purpose. 2. Short-term financing purpose.

• (Note 21) 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.

• (Note 22) The above intercompany transactions have been eliminated when preparing the consolidated financial statements.

� 87 �

QISDA CORPORATION AND SUBSIDIARIES

Guarantees and endorsements provided to other parties For the three months ended March 31, 2021

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

Table 2

No.	Endorsements / Guarantee Provider	Counter-party of Guarantee and Endorsement	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
7 7 6 6 7 5 4 3 2 2 2 2 0 1	Hitron Technologies Hitron Technologies Alpha Alpha Hitron Technologies AEWIN ACE DIC PTT PTT PTT PTT The Company BenQ	Hitron Technologies (Americas) Inc. Hitron Technologies Europe Holding B.V. Alpha Networks (Changshu) Co., Ltd. Alpha Networks (Dongguan) Co., Ltd. Innoauto Technologies Inc. Aewin Beijing Technologies Co., Ltd Tianjin Ace Pillar Co., Ltd. Data Image (Suzhou) Corporation Corex (Pty) Ltd. Partner Tech USA Inc. Partner-Tech Europe GmbH Partner Tech Middle East FZCO QLLB MaxGen	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	230,546 4,989,680 4,989,680 1,971,650 1,971,650 4,989,680 808,808 235,612 193,819 193,819 193,819 193,819 7,796,861 1,817,000	3,458,700 (USD 122,000) 95,939 (BRL17,259) 57,060 (USD 2,000) 57,060 (USD 2,000) 28,530 (USD 1,000) 85,050 (USD 3,000) 28,530 (USD 1,000) 249,710 65,039 57,060 199,710 75,000 491,364 836,100	3,024,180 (USD 106,000) 86,842 (BRL17,259) 57,060 (USD 2,000) 57,060 (USD 2,000) 28,530 (USD 1,000) - - 28,530 (USD 1,000) 249,710 65,039 57,060 199,710 50,000 488,204 770,310	3,024,180 (USD 106,000) 86,842 (BRL17,259) 57,060 (USD 2,000) 57,060 (USD 2,000) 28,530 (USD 1,000) - - 23,744 (CNY 5,476) 55,933 65,039 26,665 - 9,000 210,424 -	- - - - - - - - - - - - -	9.78% 2.03% 15.44% 0.58% 1.00% 12.35% 5.64% 2.42% - 2.94% 5.89% 0.96% 5.89% 7.76%	461,093 7,484,520 4,929,125 7,484,520 1,011,010 4,929,125 7,484,520 589,028 484,549 484,549 484,549 484,549 9,084,999 19,492,153	Y Y Y Y Y Y Y Y Y Y Y Y Y Y	- - - - - - - - - - - - - -	- - Y - Y Y Y - Y - - - - -

� 88 �

No.	Endorsements / Guarantee Provider	Counter-party of Guarantee and Endorsement	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 7 7	Sysage Hitron Technologies Hitron Technologies	Corex (Pty) Ltd. Hitron Technologies (SIP) Inc Hitron Technologies (Vietnam) Inc.	Parent/Subsidiary Parent/Subsidiary Parent/Subsidiary	795,968 4,989,680 4,989,680	1,911,510 514,446 142,650	1,911,510 228,240 142,650	285,300 - 85,590	- - -	3.58% 4.57% 38.31%	1,591,936 7,484,520 7,484,520	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 50% and 20%, 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 10%, 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 40% and 20%, respectively, of the recent audited or reviewed net worth of AEWIN.

• (Note 9) The aggregate endorsement/guarantee amount provided by Sysage to Corex (Pty) Ltd. and the endorsement/guarantee amount provided to individual party shall not exceed 40% and 20%, respectively, of the most recent audited or reviewed net worth of Sysage.

� 89 �

QISDA CORPORATION AND SUBSIDIARIES Marketable securities held (excluding investments in subsidiaries, associates, and joint ventures) For the three months ended March 31, 2021

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

Table 3

Investing Company	Marketable Securities Type and Name	Relationship with the Securities Issuer	Financial Statement Account	March 31, 2021	March 31, 2021	March 31, 2021	March 31, 2021
				Shares/Units	Carrying Value	Percentage of Ownership	Fair Value	Note
The Company QLLB BMC BMC BMC BMC BMC APV APV APV APV APV APV APV	Stock: APLEX Technology, Inc. CPEC Huachuang Private Equity Fund (Fujian) Co., Ltd. Fund Stock: Lagis Enterprise Co., Ltd. Stock: Kangde Corporation 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	- - - - - - - - - - - - - -	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 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	1,388 - 1,680 150 225 300 30 317 619 672 31 2,000 3,667 10,000	36,769 47,323 66,780 1,500 (Note 1) 3,000 900 41,163 2,236 35,079 369 12,618 25,670 4,227	4.61% 2.50% 5.25% 11.03% 2.50% 6.52% 0.41% 0.88% 6.19% 2.77% 0.06% 6.17% 3.33% 6.56%	36,769 47,323 66,780 1,500 - 3,000 900 41,163 2,236 35,079 369 12,618 25,670 4,227	- - - - - - - - - - - - - -

�90�

Investing Company	Marketable Securities Type and Name	Relationship with the Securities Issuer	Financial Statement Account	March 31, 2021	March 31, 2021	March 31, 2021	March 31, 2021
				Shares/Units	Carrying Value	Percentage of Ownership	Fair Value	Note
APV APV Darly 2 Darly 2 Darly 2 Darly 2 Darly C Darly C Darly C Darly C Darly C BenQ PTT DFI DFI DFI DFI	Stock: APLEX Technology, Inc. Stock: Raydium Semiconductor Corporation Stock: Crystalvue Medical Corp. Stock: Raydium Semiconductor Corporation Stock: Fong Huang Innovation Corporation Stock: Fong Huang 2 Innovation Corporation Stock: Crystalvue Medical Corp. Stock: Athena Capital Management Stock: Anqing Innovation Stock: Visco Vision Inc. Stock: Raydium Semiconductor Corporation Stock: Crystalvue Medical Corp. Preferred Stock: D8AI Holdings Coporation Stock: APLEX Technology, Inc. Asia Tech Taiwan Venture Fund Fund: Cathay No 1 REIT Bond: WM 7.25% Perpetual	- - - - - - - - - - - - - - - - -	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 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	2,144 2,874 470 1,633 6,000 3,000 34 1,000 1,033 285 7 1,487 3,500 999 USD225 1,458 USD200	56,828 1,157,063 24,534 657,313 76,790 30,000 1,775 6,309 6,426 34,520 2,818 77,621 6,274 26,473 (Note 1) 27,235 (Note 1)	7.13% 4.29% 1.94% 2.44% 18.75% 7.01% 0.14% 3.09% 2.24% 0.52% 0.01% 6.13% 2.30% 3.32% - - -	56,828 1,157,063 24,534 657,313 76,790 30,000 1,775 6,309 6,426 34,520 2,818 77,621 6,274 26,473 - 27,235 -	- - - - - - - - - - - - - - - - -

�91�

Investing Company	Marketable Securities Type and Name	Relationship with the Securities Issuer	Financial Statement Account	March 31, 2021	March 31, 2021	March 31, 2021	March 31, 2021
				Shares/Units	Carrying Value	Percentage of Ownership	Fair Value	Note
AEWIN AEWIN PT. Frismed Hoslab Indonesia QCES Sysage Sysage Sysage Sysage Sysage Sysage Simula Simula GSC Alpha Hitron Technologies Hitron Technologies	Stock: Aewin Korea Co., Ltd Stock: AuthenTrend Technology Inc. Insurance Fund: AVA IPRIME Stock: Jiangsu Yudi Optical Co., Ltd. Stock: CDS Holdings Limited Stock: Yobon Technologies, Inc. Stock: Dynasafe Technologies, Inc. Stock: Touch Cloud, Inc. Stock: Gemini Data, Inc. Stock: Kingtel Corporation 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.	- - - - - - - - - - - - - - - -	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 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 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	10 300 - 7,692 600 3 3,906 200 2,706 443 817 500 200 500 152 441	1,288 - 3,167 236,507 - - 171,358 306 10,038 2,774 2,411 2,469 2,960 (Note 1) 5,176 28,797	16.67% 1.42% - 11.20% 1.11% 0.42% 19.53% 2.74% 2.90% 18.09% 3.26% 16.67% 0.74% 1.83% - -	1,288 - 3,167 236,507 - - 171,358 306 10,038 2,774 2,411 2,469 2,960 - 5,176 28,797	- - - - - - - - - - - - - - - -

�92�

Investing Company	Marketable Securities Type and Name	Relationship with the Securities Issuer	Financial Statement Account	March 31, 2021	March 31, 2021	March 31, 2021	March 31, 2021
				Shares/Units	Carrying Value	Percentage of Ownership	Fair Value	Note
Hitron Technologies Hitron Technologies Hitron Technologies Hitron Technologies Hitron Technologies Hitron Technologies Hitron Technologies Interactive Digital	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 Holdings Company Ltd. Preferred Stock: Codent Networks (Cayman) Ltd. Stock: Transcend Information 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 profit or loss-current	668 120 1,220 198 1,000 294 1,570 362	19,335 (Note 1) (Note 1) (Note 1) (Note 1) (Note 1) (Note 1) 23,639	1.79% 1.20% 9.34% 10.94% 6.45% 0.75% - -	19,335 - - - - - - 23,639	- - - - - - - -

(Note 1) The impairment loss was fully recognized.

�93�

QISDA CORPORATION AND SUBSIDIARIES

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

(Amounts in thousands of New Taiwan dollars/shares, 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	Sysage NSHD	Investment accounted for using equity method Investment accounted for using equity method	� Hangzhou Lan Cheng Hong Chuang Investment Ltd.	Parent/Subsidiary �	66,000 �	1,856,785 384,857	30,841	1,387,856	�	441,589	68,040	373,549	96,841 �	2,509,765 319,031

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

�94�

QISDA CORPORATION AND SUBSIDIARIES

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

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

Table 5	Table 5	Table 5
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 QCSZ QCSZ QCOS QALA QJTO DFI BenQ BenQ QCSZ QCSZ QCSZ QCOS QCOS QCES QCPS BenQ BenQ BenQ BenQ BQP BQP BQP BQP BQP BQE BQE BQE BQE BQE BQE BQE	BenQ QJTO QALA AU AUSZ QCSZ QCOS DFI The Company AU The Company The Company The Company The Company The Company AU BQC_RO QCPS DIC BQC_RO QCES QCOS QCSZ BQA BQE BQL BQP BQAU BQIN BQJP BQME BenQ BQUK BQDE BQAT BQSE BQFR BQIB BQIT	Parent/Subsidiary Parent/Subsidiary Parent/Subsidiary Associate Associate Parent/Subsidiary Parent/Subsidiary Parent/Subsidiary Parent/Subsidiary Other related party Parent/Subsidiary Parent/Subsidiary Parent/Subsidiary Parent/Subsidiary Parent/Subsidiary Other related party Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates	(Sales) (Sales) (Sales) (Sales) (Sales) Purchases Purchases (Sales) (Sales) Purchases (Sales) Purchases Purchases Purchases Purchases Purchases (Sales) Purchases Purchases (Sales) Purchases (Sales) (Sales) (Sales) (Sales) (Sales) (Sales) (Sales) (Sales) (Sales) (Sales) Purchases (Sales) (Sales) (Sales) (Sales) (Sales) (Sales) (Sales)	(1,858,834) (504,576) (4,525,451) (1,403,028) (514,373) 15,517,743 2,988,426 (100,507) (15,517,743) 2,023,205 (2,988,426) 4,525,451 504,576 100,507 1,858,834 771,916 (209,867) 314,857 106,997 (220,887) 239,358 (239,358) (314,857) (883,882) (1,784,268) (163,511) (1,237,260) (137,797) (103,371) (479,568) (231,702) 1,237,260 (366,441) (585,900) (225,371) (104,793) (238,507) (215,388) (142,604)	(8) (2) (20) (6) (2) 71 14 � (91) 12 (84) 100 86 13 49 21 (1) 2 1 (6) 7 (5) (80) (21) (43) (4) (30) (9) (6) (30) (15) 88 (16) (26) (10) (5) (11) (10) (6)	OA90 OA120 OA90 OA120 OA120 OA120 OA120 EOM60 OA120 EOM55 OA120 OA90 OA120 EOM60 OA90 EOM55 OA120 OA60 EOM45 OA120 OA60 OA60 OA60 OA90 OA90 OA90 OA60 OA60 OA60 OA60 OA60 OA60 OA30 OA30 OA45 OA30 OA30 OA30 OA30	� � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �	� � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �	2,534,208 814,857 3,862,808 1,316,393 805,406 (12,482,041) (3,215,222) 93,780 12,482,041 (1,019,183) 3,215,222 (3,862,808) (814,857) (93,780) (2,534,208) (602,024) 23,639 (132,685) (99,130) 30,670 (87,936) 87,936 132,685 605,112 2,314,516 317,828 1,256,636 126,013 536,554 321,166 317,613 (1,256,636) 201,691 327,860 34,453 20,647 416,837 23,078 106,848	13 4 20 7 4 (59) (15) - 90 (7) 93 (100) (100) (13) (54) (13) - (1) (1) 1 (3) 2 69 12 44 6 24 7 30 18 18 (100) 14 23 2 - 29 2 8	� � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �

�95�

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
BQE BQA BQA BQL BQL BQC_RO BQC_RO BQAT BQAU BQCA BQDE BQFR BQIB BQIN BQIT BQJP BQME BQMX BQSE BQUK Alpha Alpha 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 Networks (Dongguan) Co., Ltd. Alpha Changshu Alpha Dongguan Hitron Americas Hitron Europe Hitron Technologies Hitron Technologies Hitron Vietnam BMC BMC	BenQ BQCA BenQ BQMX BenQ QCOS QCSZ BQE BQP BQA BQE BQE BQE BQP BQE BQP BQP BQL BQE BQE Alpha USA D-Link Asia Alpha Changshu Mirac Networks (Dongguan) Co., Ltd. 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	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 Other related party Other related party	Purchases (Sales) Purchases (Sales) Purchases Purchases Purchases Purchases Purchases Purchases Purchases Purchases Purchases Purchases Purchases Purchases Purchases Purchases Purchases Purchases (Sales) Purchases Purchases (Sales) (Sales) Purchases (Sales) (Sales) (Sales) (Sales) (Sales) Purchases (Sales) (Sales) Purchases Purchases (Sales) Purchases Purchases Purchases Purchases Purchases (Sales) (Sales)	1,784,268 (223,059) 883,882 (108,589) 163,511 220,887 209,867 225,371 137,797 223,059 585,900 238,507 215,388 103,371 142,604 479,568 231,702 108,589 104,793 366,441 (1,056,807) 1,602,940 1,443,593 (110,054) (1,714,830) 1,602,940 (1,452,361) (191,384) (1,136,817) (749,906) (152,121) 1,056,807 (1,602,940) (1,443,593) 110,054 1,714,830 (1,602,940) 1,452,361 191,384 1,136,817 749,906 152,121 (939,060) (293,463)	89 (19) 89 (57) 100 29 28 100 100 100 99 100 100 100 100 100 100 100 98 100 (25) 33 30 (7) (100) 51 (51) (7) (40) (27) (5) 100 (51) (92) 91 81 (100) 100 100 59 41 12 (23) (7)	OA90 OA60 OA90 OA90 OA90 OA120 OA120 OA45 OA60 OA60 OA30 OA30 OA30 OA60 OA30 OA60 OA60 OA90 OA30 OA30 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 90 Days 90 Days OA90 OA90	� � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � (Note 1) (Note 1)	� � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �	(2,314,516) 182,670 (605,112) 194,997 (317,828) (30,670) (23,639) (34,453) (126,013) (182,670) (327,860) (416,837) (23,078) (536,554) (106,848) (321,166) (317,613) (194,997) (20,647) (201,691) 1,121,821 (1,325,444) (947,551) 76,155 874,418 (1,346,597) 1,691,447 189,202 406,559 417,833 80,346 (1,121,821) 1,325,444 947,551 (76,155) (874,418) 1,346,597 (1,691,447) (189,202) (406,559) (417,833) (80,346) 531,018 147,177	(98) 28 (98) 27 (90) (8) (6) (100) (97) (100) (100) (92) (80) (99) (89) (97) (96) (96) (100) (95) 30 (43) (31) 7 100 (48) 79 9 19 19 4 (100) 53 93 (86) (75) 100 (100) (100) (49) (51) (100) 21 6	� � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �

�96�

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
BMC BMC BMC BMC BenQ Materials Medical Supplies (Suzhou) Co., Ltd. BMS Simula Simula Technology (ShenZhen) Co., Ltd. DIC	AUXM BenQ Materials Medical Supplies (Suzhou) Co., Ltd. BMS Visco Vision BMC BMC Simula Technology (ShenZhen) Co., Ltd. Simula QCSZ	Other related party Affiliates Affiliates Associate Affiliates Affiliates Affiliates Affiliates Affiliates	(Sales) (Sales) Purchases Purchases Purchases (Sales) Purchases (Sales) (Sales)	(208,621) (125,754) 187,556 104,595 125,754 (187,556) 144,355 (144,355) (106,997)	(5) (3) 5 3 100 (100) 91 (90) (12)	OA90 OA120 OA90 OA30 OA120 OA90 EOM60 EOM60 EOM45	(Note 1) (Note 1) (Note 2) (Note 2) (Note 1) (Note 2) (Note 3) Equal to third- party customers �	� � � � � � Third-party vendor: EOM 60-150 Non-related party: EOM 90 �	84,303 206,985 (108,313) (78,759) (206,985) 108,313 (115,693) 115,693 99,130	3 8 (3) (2) (100) 100 (77) 87 (11)	� � � � � � � � �
(Note 1) (Note 2) 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. 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) Simula seldom purchases the same products from other vendors. Therefore, the purchase prices are not reasonably comparable. (Note 4) The above intercompany transactions have been eliminated when preparing the consolidated financial statements.

�97�

QISDA CORPORATION AND SUBSIDIARIES

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

March 31, 2021

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

Table 6

Table 6
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 BenQ BenQ BenQ BenQ BenQ BenQ BQA BQE BQE BQE BQE BQL BQL BQP BQP BQP BQP QCES QCOS QCPS QCSZ	AU AUSZ BenQ QALA QCOS QJTO BQA BQE BQL BQP QCSZ QVH BQCA BQDE BQFR BQIT BQUK BQMX Maxgen BQAU BQIN BQJP BQME The Company The Company QCSZ The Company	Associate Associate Parent/Subsidiary Parent/Subsidiary Parent/Subsidiary Parent/Subsidiary Associate Associate Associate Associate Associate Associate Associate Associate Associate Associate Associate Associate Associate Associate Associate Associate Associate Parent/Subsidiary Parent/Subsidiary Associate Parent/Subsidiary	1,316,393 805,406 2,534,208 3,862,808 247,437 814,857 605,112 2,314,516 317,828 1,256,636 224,818 188,258 182,670 327,860 416,837 106,848 201,691 194,997 512,096 126,013 536,554 321,166 317,613 3,622,244 3,215,222 132,685 12,482,041	4.20 2.57 2.67 3.57 (Note 1) 2.51 5.85 2.87 2.04 3.42 (Note 1) (Note 1) 4.86 5.94 2.32 4.83 8.46 2.35 0.35 4.20 0.70 6.41 3.05 (Note 1) 3.52 8.90 4.07	- - 574,589 4,130 24,395 - - 522,364 145,263 410,872 - 19,965 - 127,180 346,245 57,983 78,282 - - - 464,580 6,883 149,213 2,344 484,863 - 1,952,552	- - - - - - - - - - - - - - - - - - - - - - - - - - -	- 191,701 - 992,256 137,081 138,114 248,071 - 41,660 424,382 - - 41,450 156,280 17,802 40,422 138,795 21,112 57,377 - 183,500 152,222 45,600 3,622,244 1,729,350 - 4,825,737	� � � � � � � � � � � � � � � � � � � � � � � � � � �

�98�

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
AEWIN ACE BMC BMC BMC BMS SMS Alpha D-Link Asia Alpha Changshu Alpha Dongguan Alpha HK D-Link Asia Hitron Technologies Hitron Technologies Hitron Suzhou Hitron Vietnam Simula Technology (ShenZhen) Co.,Ltd.	Aewin Beijing Technologies Co., Ltd. Tianjin Ace Pillar Co., Ltd. AU AUSZ BenQ Materials Medical Supplies (Suzhou) Co., Ltd. BMC BMC Alpha USA Alpha Alpha D-Link Asia Alpha Changshu Alpha Dongguan Hitron Americas Hitron Europe Hitron Technologies Hitron Technologies Simula	Associate Associate Other related party Other related party Associate Associate Associate Associate Associate Associate Associate Associate Associate Associate Associate Associate Associate Associate	323,219 148,119 531,018 147,177 206,985 108,313 146,515 1,121,821 1,325,444 947,551 1,346,597 874,418 1,469,038 1,691,447 189,202 417,833 406,559 115,693	0.70 - 3.35 3.29 3.44 8.25 0.31 3.75 3.16 5.81 3.13 5.10 3.21 3.25 3.48 6.77 6.23 3.91	235,199 - - - - - - - - 33,037 - 39,164 9,001 - - - - -	- - - - - - - - - - - - - - - - - -	16,502 - - - - - - 255,047 13,543 368,037 13,543 330,381 13,528 662,732 94,267 185,018 406,559 14,029	� � � � � � � � � � � � � � � � � �

(Note 1) The sales from repurchasing after processing have been eliminated; therefore, calculation of turnover rate is not applicable.

(Note 2) The above intercompany transactions have been eliminated when preparing the consolidated financial statements.

�99�

QISDA CORPORATION AND SUBSIDIARIES Business relationships and significant intercompany transactions For the three months ended March 31, 2021

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

Table 7

Table 7
Number (Note 1)	Company Name	Related Party	Name of Relationship (Note 2)	Transaction Details
				Financial Statements Account	Amount	Payment Terms	Percentage of Consolidated Operating Revenue and Total Assets (Note 4)
0 0 1 2 3 3 3 4 5 6 7 8 9 10 11 12 0 0 1 2	The Company The Company QCSZ QCOS BenQ BenQ BenQ BQE Alpha Alpha HK D-Link Asia Hitron Technologies Hitron Vietnam Hitron Suzhou Alpha Dongguan Alpha Changshu The Company The Company QCSZ QCOS	BenQ QALA The Company The Company BQA BQE BQP BQDE Alpha USA Alpha Changshu Alpha Hitron Americas Hitron Technologies Hitron Technologies D-Link Asia Alpha BenQ QALA The Company The Company	1 1 2 2 3 3 3 3 3 3 3 3 3 3 3 3 1 1 2 2	(Sales) (Sales) (Sales) (Sales) (Sales) (Sales) (Sales) (Sales) (Sales) (Sales) (Sales) (Sales) (Sales) (Sales) (Sales) (Sales) Accounts receivable Accounts receivable Accounts receivable Accounts receivable	(1,858,834) (4,525,451) (15,517,743) (2,988,426) (883,882) (1,784,268) (1,237,260) (585,900) (1,056,807) (1,714,830) (1,602,940) (1,452,361) (1,136,817) (749,906) (1,602,940) (1,443,593) 2,534,208 3,862,808 12,482,041 3,215,222	OA90 OA90 OA120 OA120 OA60 OA90 OA90 OA60 90 Days 90 Days 90 Days 90 Days 90 Days 90 Days 90 Days 90 Days OA90 OA90 OA120 OA120	(4%) (9%) (30%) (6%) (2%) (4%) (2%) (1%) (2%) (3%) (3%) (3%) (2%) (1%) (3%) (3%) 1% 2% 7% 2%

�100�

Number (Note 1)	Company Name	Related Party	Name of Relationship (Note 2)	Transaction Details	Transaction Details	Transaction Details	Transaction Details
				Financial Statements Account	Amount	Payment Terms	Percentage of Consolidated Operating Revenue and Total Assets (Note 4)
3	BenQ	BQE	3	Accounts receivable	2,314,516	OA90	1%

• (Note1) Parties to the intercompany transactions are identified and numbered as follows:

• "0" represents the Company.

• Subsidiaries are numbered from "1".

(Note2) The relationships with counter party are as follows:

No. “1” represents the transactions from the Company to subsidiary.

No. “2” represents the transactions from subsidiary to the Company.

No. “3” represents the transactions between subsidiaries.

(Note3) Intercompany relationships and significant intercompany transactions are disclosed only for the amounts that exceed 1% of consolidated operating revenue or total assets.

The corresponding purchases and accounts payables are not disclosed.

(Note4) Based on the transaction amount divided by consolidated operating revenues or consolidated total assets.

(Note5) The above intercompany transactions have been eliminated when preparing the consolidated financial statements.

�101�

QISDA CORPORATION AND SUBSIDIARIES

Information of Investees (Excluding Information on investments in Mainland China)

For the three months ended March 31, 2021

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

Table 8

Table 8
Investor	Investee	Location	Main Businesses and Products	Original investment Amount		Balances as of March 31, 2021			Net Income (Loss) of the Investee	Investment Income (Loss)	Note
				March 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 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 SMS Visco Vision Inc. Cenefom Corporation Taike Biotech Co., Ltd. MLK Bioscience Co., Ltd. Darly C BMC	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	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 and sale of medical consumable and equipment Investment management consulting R&D,manufacture and sale of optoelectronics film	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 8,135,810 217,763 260,000 78,338 3,202,856 172,500 1,212,849 600,000 254,000 1,141,340 560,000 177,811 29,127 - 6,000 77,933 221,786	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	663,599 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 40,000 9,834 1,095 - 217 12,105 15,182	6.98% 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% 12.12% - 20.00% 45.11% 4.73%	13,240,617 1,847,514 611,844 9,112,567 43,079 54,993 287,853 13,908,576 3,321,771 167,635 810,939 1,372,745 106,354 1,002 58,476 3,056,407 7,902,053 216,378 321,337 81,392 2,509,765 202,945 927,344 618,737 243,204 1,519,242 417,000 174,097 12,527 - 5,630 193,720 212,874	11,834,091 201,255 166,303 540,804 (695) 2,014 (1,605) 112,803 63,964 18,901 346,190 15,732 (8,147) - 9,598 66,234 113,214 13,066 49,424 4,115 222,962 18,407 (51,706) 7,261 17,479 10,832 (35,013) 93,395 (5,043) (3,469) (1,273) 3,101 166,303	812,852 41,672 22,634 540,574 (695) 2,014 (1,605) 576,811 63,964 18,901 66,995 538 (8,178) - 1,920 11,093 38,419 4,117 14,315 2,222 76,557 3,744 (51,706) (1,202) 6,340 - - - - - - - -	Associate 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 Associate Associate Associate Affiliates Affiliates

�102�

Investor	Investee	Location	Main Businesses and Products	Original investment Amount	Original investment Amount	Balances as of March 31, 2021	Balances as of March 31, 2021	Balances as of March 31, 2021	Net Income (Loss) of the Investee	Investment Income (Loss)	Note
				March 31, 2021	December 31, 2020	Shares	Percentage of Ownership	Carrying Value
APV APV APV 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	BMTC BBHC BES 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	Taiwan Cayman Taiwan 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	Manufacture and sales of medical consumables and equipments Investment and holding activity Energy service 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 electronicproducts	42,584 904,102 50,250 112,080 12 149,096 284,126 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	42,584 904,102 50,250 112,080 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	3,549 25,000 4,100 6,006 1 2,294 12,236 1,286 3,607 5,500 10,000 2,400 12,710 7,800 14,158 200 350 466,200 5,009 20,000 225,000 23,400 14,017 80,848 20,000 19,353 82 6,947 4,000 - 18 440,296 -	7.96% 10.21% 41.00% 8.00% 0.02% 2.00% 2.26% 4.46% 5.20% 6.88% 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% - 100.00% 100.00%	84,867 435,011 9,384 154,079 14 148,602 254,067 63,649 75,305 212,233 146,671 5,493 242,717 21,013 243,761 758,351 (83,112) 2,876,016 781,064 226,100 3,657,810 63,030 446,356 1,133,408 345,836 451,522 67,445 87,733 915,727 33 359 44,803 35,664	4,879 346,190 3,874 15,732 304 66,234 113,214 18,407 49,424 7,261 17,479 3,874 113,214 (8,493) 346,190 43,353 (43,363) 34,402 99,644 77,653 109,842 (8,493) 201,255 166,303 346,190 4,879 (2,388) 515 125,589 1,284 113,214 14,977 9,507	- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -	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 Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates

�103�

Investor	Investee	Location	Main Businesses and Products	Original investment Amount	Original investment Amount	Balances as of March 31, 2021	Balances as of March 31, 2021	Balances as of March 31, 2021	Net Income (Loss) of the Investee	Investment Income (Loss)	Note
				March 31, 2021	December 31, 2020	Shares	Percentage of Ownership	Carrying Value
BQP BQP BQP BQP BQP BQP BQP BQA BQL BQL 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	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 Canada Corp. BenQ Mexico S. de R.L. de C.V. Joytech LLC 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. BenQAustria GmbH	Japan Singapore Australia Malaysia Thailand Korea Indonesia Canada Mexico USA USA Brazil Brazil Mexico Taiwan Taiwan Cayman Hong Kong Taiwan Taiwan Taiwan Taiwan Taiwan Taiwan Taiwan Taiwan Taiwan UK Germany The Netherlands Australia	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 Investment and holding activity 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 electronicproducts	4,518 1,837 132,590 119,488 120,116 1,713 6,901 26 77,591 4,671 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	4,518 1,837 132,590 119,488 120,116 1,713 6,901 26 77,591 4,671 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	- 500 2,191 100 12,000 10 6 1 3 1 1 1 1 3 5,756 14,728 65,024 31,200 1,590 1,800 1,648 9,175 4,185 1,003 3,005 2,615 5,500 - - - -	100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 99.69% 100.00% 100.00% 100.00% 100.00% 50.00% 50.00% 100.00% 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%	87,458 (15,202) 76,179 6,795 (53,279) 5,273 10,537 20,613 32,097 (146,769) (146,769) (146,769) (146,769) 3,312 71,852 235,707 1,131,445 84,040 38,022 4,120 42,279 594,727 75,375 48,613 59,491 127,960 212,233 63,910 202,754 (34,444) 57,941	8,449 900 6,686 (871) (2,508) (1,284) 1,284 13,452 (5,715) (21,078) (21,078) (42,157) (42,157) (5) 304 3,101 346,190 (8,493) 4,879 3,874 15,732 66,234 113,214 13,066 49,424 18,407 7,261 12,074 10,259 (598) 1,578	- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -	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

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Investor	Investee	Location	Main Businesses and Products	Original investment Amount	Original investment Amount	Balances as of March 31, 2021	Balances as of March 31, 2021	Balances as of March 31, 2021	Net Income (Loss) of the Investee	Investment Income (Loss)	Note
				March 31, 2021	December 31, 2020	Shares	Percentage of Ownership	Carrying Value
BQE BQE BQE BQE BQE BMTC BMTC BMTC BMTC BMTC BMTC BHS PTT PTT PTT PTT PTT PTT PTT PTT PTT PTE PTE PTE PTME WEBEST WEBEST WEBEST P&J P&S DFI DFI DFI DFI	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 Partner Tech North Africa PTMG 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.	Spain Italy France Sweden Russia Taiwan Samoa Taiwan Taiwan Taiwan Taiwan Taiwan Taiwan British Virgin Islands UK Germany United Arab Emirates Singapore Taiwan Morocco Taiwan UK Slovenia Spain United Arab Emirates Taiwan Morocco United Arab Emirates British Virgin Islands USA USA Mauritius Japan The Netherlands	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 R&D and sales of software R&D and sales of software 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 Sales, import and export of electronic products Sales, import and export of electronic products R&D and sales of software 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	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 4,075 11,000 5,640 980 - 2,485 10 1 1,560 134,973 31,593 254,683 187,260 104,489 35,219	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 4,075 11,000 5,640 980 - 2,485 10 1 1,560 134,973 31,593 254,683 187,260 104,489 35,219	- 50 - - - 1,995 1,062 10,000 8,800 10,000 700 1,092 2,500 5,551 866 (Note 1) 0.099 100 2,050 13 1,100 114 (Note 1) (Note 1) - 1 0.001 0.001 4,560 1,091 1,209 6,000 6 12	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% 50.10% 50.62% 58.18% 52.38% 11.40% 90.00% 68.00% 100.00% 0.02% 0.005% 1.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00%	90,891 34,867 (126,622) 79,386 13,147 23,659 8,817 239,776 56,154 137,779 24,058 83,441 22,252 153,384 33,925 130,962 17,864 25,741 25,297 3 14,027 4,865 (15,327) 10,593 (54,256) 10 - 133 135,565 58,062 359,486 174,933 300,985 63,232	3,760 2,822 (5,247) 1,321 (129) (1,396) (1) 4,141 328 6,109 1,029 5,343 2,180 (1,179) 606 25,819 1,986 (1,646) (2,845) - 2,826 606 2,004 8,581 (169) (2,843) - 1,986 (1,175) 725 1,319 2,967 4,462 3,579	- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -	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

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Investor	Investee	Location	Main Businesses and Products	Original investment Amount	Original investment Amount	Balances as of March 31, 2021	Balances as of March 31, 2021	Balances as of March 31, 2021	Net Income (Loss) of the Investee	Investment Income (Loss)	Note
				March 31, 2021	December 31, 2020	Shares	Percentage of Ownership	Carrying Value
DFI DFI AEWIN AEWIN Wise Way ACE ACE Cyber South Cyber South K2 K2 DIC DIC EASC Sysage Sysage Sysage Sysage Sysage Sysage Sysage Sysage Epic Cloud Epic Cloud AdvancedTEK Topview Messoa Simula Simula Simula Simula Aspire Asia Inc.	AEWIN ACE 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 DMC Components International, LLC Expert Alliance Smart Technology Co., Ltd. Global Intelligence Network Co., Ltd. Unisage Digital Co., Ltd. Epic Cloud Information Integration Corporation 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. Messoa Messoa Technologies Inc. (USA) Simula Technology Corp. Simula Company Limited Aspire Asia Inc. Mcurich Inc. Aspire Electronics Corp.	Taiwan Taiwan Anguilla USA Hong Kong Samoa Hong Kong Samoa Hong Kong Thailand Indonesia Mauritius Orlando, USA Macao Taiwan Taiwan Taiwan Taiwan Taiwan South Africa Taiwan Taiwan Taiwan Taiwan Taiwan Taiwan USA USA Hong Kong British Virgin Islands Taiwan Samoa	Manufacture and sale of industrial motherboards and component Sales of automation mechanical transmission system and component 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 Agency sales Sales of brand-name electronic products and smart services Sales of network and information and communication hardware and software Manufacture of medical equipment 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 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 Investment and holdingactivity	563,815 814,207 46,129 77,791 46,129 107,041 5,120 527,665 4,938 9,828 257,728 518,381 24,304 381 119,142 1,687 50,000 94,547 30,091 251,872 69,983 5,000 172 40 2,060 23,879 32,859 15,699 187,625 286,764 15,029 95,099	556,464 793,722 46,129 77,791 46,129 107,041 5,120 527,665 4,938 9,828 257,728 518,381 24,304 381 119,142 1,687 9,400 94,547 30,091 - - - - - - 23,879 32,859 15,699 187,625 286,764 15,029 95,099	30,359 38,475 1,500 2,560 1,500 4,669 1,200 17,744 150 - - 20,215 300 100 10,475 225 5,000 5,643 1,153 - 1,754 500 10 1 200 1,945 - 500 50,500 9,403 645 2,188	51.35% 34.28% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 49.00% 67.00% 100.00% 30.00% 100.00% 79.36% 38.01% 100.00% 23.58% 34.09% 100.00% 34.99% 29.41% 0.08% 0.02% 100.00% 40.78% 100.00% 100.00% 52.31% 100.00% 30.00% 95.10%	597,961 745,166 85,901 1,631 122,782 597,432 40,797 478,895 (3,851) 19,638 262,978 275,813 7,151 2,133 212,333 764 40,419 97,642 33,373 299,973 90,292 4,701 172 40 3,361 2,205 19,737 25,381 157,801 160,161 1,134 16,482	3,786 49,199 8,480 (915) 8,480 26,141 (536) 21,581 413 2,540 3,487 (529) - (134) 36,382 92 (6,127) (4,521) 3,736 7,486 (8,223) (1,016) 36,382 (8,223) 186 707 1,394 1,327 (717) (932) (2,512) (620)	- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -	Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Associate Affiliates Affiliates Associate Affiliates Associate Affiliates Affiliates Affiliates Associate Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Associate Affiliates

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Investor	Investee	Location	Main Businesses and Products	Original investment Amount	Original investment Amount	Balances as of March 31, 2021	Balances as of March 31, 2021	Balances as of March 31, 2021	Net Income (Loss) of the Investee	Investment Income (Loss)	Note
				March 31, 2021	December 31, 2020	Shares	Percentage of Ownership	Carrying Value
Aspire Asia Inc. GSC GSC Alpha Alpha Alpha Alpha Alpha Alpha Alpha Alpha Enrich Investment Enrich Investment Hitron Technologies Hitron Technologies Hitron Technologies Hitron Technologies Hitron Technologies Hitron Technologies	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 Hitron Samoa Interactive Digital Hitron Europe Hitron Americas Innoauto Technologies Hitron Vietnam	Hong Kong Taiwan Taiwan Cayman Japan USA Hong Kong USA Taiwan Taiwan Singapore Taiwan Taiwan Samoa Taiwan The Netherlands USA Taiwan Vietnam	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 International trade Telecommunication and broadband network system services International trade International trade Investment Production and sale of broadband telecommunications products	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 50,000 669,031 167,026 59,604 90,082 65,000 1,218,995	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 50,000 669,031 167,026 59,604 90,082 50,000 550,355	46,033 1,500 22,200 6,464 1 1,500 780,911 8,100 24,000 200,000 86,946 2,575 5,000 22,300 16,703 15 300 6,500 -	47.69% 100.00% 66.57% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 62.24% 100.00% 6.65% 100.00% 100.00% 43.10% 100.00% 100.00% 100.00% 100.00%	143,844 22,806 199,288 (28,338) 20,120 117,564 2,188,263 170,951 152,387 4,115,426 1,733,338 118,124 33,809 672,596 542,911 10,700 86,735 (4,910) 1,151,378	(717) 4,635 5,735 (4,547) (454) (20,921) (8,378) 46 (241) 1,110 (28,917) 33,150 (1,713) (79,381) 33,150 24,328 (25,244) (11,993) (15,375)	- - - - - - - - - - - - - - - - - - -	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 above intercompany transactions have been eliminated when preparing the consolidated financial statements.

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QISDA CORPORATION AND SUBSIDIARIES Information on investments in Mainland China

For the three months ended March 31, 2021

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

Table 9

A. Qisda Corporation 1. Information on investments in Mainland China:

�������������������	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 March 31, 2021	Net Income (Loss) of Investee	% of Ownership of Direct or Indirect Investment	Investment Income (Loss)	Carrying Value as of March 31, 2021	Accumulated Inward Remittance of Earnings as of March 31, 2021
					Outflow	Inflow
Guru Systems (Suzhou) Co., Ltd. (“GSS”) Guangxi Youshan Medical TechnologyCo.,Ltd.(“Youshan”) BenQ Biotech (Shanghai) Co., Ltd. (“BBC”) Suzhou BenQ Investment Co., Ltd. (“BIC”) BenQ Hospital Management Consulting (Nanjing) Co., Ltd. (“NMHC”) Nanjing Silvertown Health & Development Co., Ltd. (“NSHD”) Nanjing BenQ Hospital Co., Ltd. (“NMH”) Suzhou BenQ Hospital Co., Ltd. (“SMH”) BenQ Technology (Shanghai) Co., Ltd. (“BQls”) ShengCheng Trading(Shanghai) Co., Ltd. (“BQsha EC2”) 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”)	R&D and sales of computer information systems Medical services Manufacture and sales of medical consumables and Investment and holding activity Medical management consulting Medical services Hospital Hospital Sales of brand-name electronic products Sales of brand-name electronic products Sales and maintenance of electronic products in 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	2,111,220 (USD 74,000) 38,801 (USD 1,360) 336,654 (USD 11,800) 355,484 (USD 12,460) 1,897,245 (USD 66,500) 142,650 (USD 5,000) 2,282,400 (USD 80,000) 85,590 (USD 3,000) 28,530 (USD 1,000) 2,853 (USD 100) 4,907,588 (USD 172,015) 2,610,103 (CNY 601,975) 28,530 (USD 1,000) 855,900 (USD 30,000) 433,590 (CNY 100,000) 376,596 (USD 13,200) 650,385 (CNY 150,000) 26,015 (CNY 6,000)	(Note 1) (Note 13) (Note 2) (Note 8) (Note 1) (Note 11) (Note 1) (Note 1) (Note 10) (Note 1) (Note 1) (Note 1) (Note 1) (Note 1) (Note 1) (Note 1) (Note 9) (Note 1)	2,025,630 (USD 71,000) - - 336,654 (USD 11,800) 355,484 (USD 12,460) 1,369,440 (USD 48,000) 135,518 (USD 4,750) 2,282,400 (USD 80,000) 85,590 (USD 3,000) 5,706 (USD 200) - - 4,775,808 (USD 167,396) 2,539,056 (USD 88,996) 28,530 (USD 1,000) - - 276,741 (USD 9,700) 737,103 (CNY 170,000) -	- - - - - - - - - - - - - - - - - - - - 285,300 (USD 10,000) - - - - - - - - 151,757 (CNY 35,000) -	- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -	2,025,630 (USD 71,000) - - 336,654 (USD 11,800) 355,484 (USD 12,460) 1,369,440 (USD 48,000) (Note 7) 135,518 (USD 4,750) 2,282,400 (USD 80,000) 85,590 (USD 3,000) 5,706 (USD 200) (Note 6) - - 5,061,108 (USD 177,396) 2,539,056 (USD 88,996) 28,530 (USD 1,000) - (Note 11) 276,741 (USD 9,700) (Note 5) 888,860 (CNY 205,000) (Note 13)	(8,797) 1,943 (25,778) (6,705) 40 (200) 2,247 34,482 8,028 3,216 113,395 34,345 (2,478) (3,712) (15,531) 62,630 1 71,200	100% 70.00% 38.50% 17.39% 70.05% 70.05% 70.05% 70.05% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100%	71,200 (Note 3) 1 (Note 4) 62,630 (Note 4) (15,531) (Note 3) (3,712) (Note 4) (2,478) (Note 4) 34,345 (Note 3) 113,395 (Note 3) 3,216 (Note 4) 8,028 (Note 4) 24,155 (Note 3) 1,574 (Note 3) (140) (Note 4) 28 (Note 4) (1,166) (Note 4) (8,797) (Note 4) (18,009) (Note 4) 748 (Note 4)	223,481 (Note 14) 817,748 15,492 70,364 16,723 586,784 1,965,948 604,632 27,096 44,930 2,882,693 838,417 391,548 (1,384,476) 3,757,021 1,514,732 36,269 9,794,225	433,125 (USD 14,603) - - - - - - - - - - - - - - - - -

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�������������������	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 March 31, 2021	Net Income (Loss) of Investee	% of Ownership of Direct or Indirect Investment	Investment Income (Loss)	Carrying Value as of March 31, 2021	Accumulated Inward Remittance of Earnings as of March 31, 2021
					Outflow	Inflow
Guigang Donghui Medical Investment Co., Ltd. Shanghai Filter Technology Co.,Ltd Wangcheng Medical Technology� Chengdu�Co., Ltd (“Wangcheng”)	Medical services Medical services Medical services	8,672 (CNY 2,000) 607,026 (CNY 140,000) 1,832,039 (CNY 422,528)	(Note 12) (Note 13) (Note 13)	- - -	- - -	- - -	(Note 12) (Note 13) (Note 13)	- (3) (349)	9.89% 70.00% 49.00%	(171) (Note 4) (2) (Note 4) - (Note 4)	3,033 301,967 (Note 14) 4,096	- - -

• (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 reviewed but unaudited financial statements issued by the auditors of the parent company. (Note 4) Investment income or loss was recognized based on the unreviewed financial statements of the company.

• (Note 5) The amount of GRHK reinvestments US$3,500 thousand were excluded.

• (Note 6) The amount of QCES reinvestments US$800 thousand were excluded.

• (Note 7) The amount of QCES reinvestments US$18,500 thousand were excluded.

• (Note 8) The investment was from the operating capital of BBM. (Note 9) The reinvestments were from the distribution of dividends of QLLB.

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

• (Note 11) NSHD is established by NMH's asset division.

• (Note 12) The investment was from the operating capital of NMH.

• (Note 13) The investment was from the operating capital of BBC.

• (Note 14) Accounting for investments using equity method.

• (Note 15) The above amounts were translated into New Taiwan dollars at the exchange rate of US$1�NT$28.53 and CNY$1=NT$4.3359

• (Note 16) The above amounts have been eliminated when preparing the consolidated financial statement, except for NSHD and Guigang Donghui Medical Investment Co., Ltd. , which was classified as investments accounted for using equity method.

2. Limits on investments in Mainland China:

Accumulated Investment in Mainland China as of March 31, 2021	Investment Amounts Authorized by Investment Commission, MOEA	Upper Limit on Investment
15,390,717 (USD 508,302 and CNY 205,000)	16,339,331 (USD 572,707)	(Note 17)

• (Note 17) 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.

�109�

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 March 31, 2021	Net Income (Loss) of Investee	% of Ownership of Direct or Indirect Investment	Investment Income (Loss)	Carrying Value as of March 31, 2021	Accumulated Inward Remittance of Earnings as of March 31, 2021
					Outflow	Inflow
BenQ Material (Suzhou) Co., Ltd. (“BMS”) Suzhou Sigma Medical Supplies Co., Ltd. (“SMSZ”) BenQ Materials (Wuhu) Co., Ltd. BenQ Materials Medical Supplies (Suzhou) Co., Ltd. (“BMM”) Daxon Biomedical (Suzhou) Co., Ltd. (“DTB”)	Manufacture of optoelectronics Manufacture and sales of medical consumables and equipment Manufacture and sales of optoelectronics and cosmetics Manufacture and sales of medical consumables and equipment Sales of optoelectronics and medical consumables	827,370 (USD 29,000) 47,695 (CNY 11,000) 346,872 (CNY 80,000) 65,039 (CNY 15,000) 45,420 (USD 1,592)	(Note 4) (Note 1) (Note 1) (Note 3) (Note 3)	827,370 (USD 29,000) - 173,436 (CNY 40,000) - 45,420 (USD 1,592)	- - - - -	- - - - -	827,370 (USD 29,000) - 173,436 (CNY 40,000) (Note 5) 45,420 (USD1,592) -	(2,750) 3,733 19,806 (9,204) (482)	100.00% 100.00% 100.00% 100.00% 100.00%	(2,750) (Note 2) 3,733 (Note 2) 19,053 (Note 2) (9,204) (Note 2) (482) (Note 2)	1,892,589 (Note 6) (4,543) (Note 6) (390,865) (Note 6) 47,606 (Note 6) 29,763 (Note 6)	- - - - -

2. Limits on investments in Mainland China:

2. Limits on investments	in Mainland China:
Investee Company Name	Accumulated Investment in Mainland China as of March 31, 2021	Investment Amounts Authorized by Investment Commission, MOEA	Upper Limit on Investment
BMC	1,000,806 (USD 29,000 and CNY 40,000)	1,113,323 (USD 29,000 and CNY 65,950)	(Note 8)
SMS	45,420 (USD 1,592)	45,420 (USD 1,592)	185,344

• (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 reviewed financial statements issued by the auditors of BMC.

• (Note 3) The reinvestments were from the distribution of dividends of BMLB.

• (Note 4) Direct investment in Mainland China.

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

• (Note 6) The above amounts have been eliminated when preparing the consolidated financial statements.

(Note 7) The above amounts were translated into New Taiwan dollars at the exchange rate of US$1�NT$28.53 and CNY$1=NT$4.3359.

• (Note 8) Since BenQ Material Corporation has obtained the Certificate of Headquarter Operation, there is no upper limit on investment in Mainland China.

3. 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.

�110�

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 March 31, 2021	Net Income (Loss) of Investee	% of Ownership of Direct or Indirect Investment	Investment Income (Loss)	Carrying Value as of March 31, 2021	Accumulated Inward Remittance of Earnings as of March 31, 2021
					Outflow	Inflow
TDX Medical Technology (Jiangsu)Co.,Ltd. LILY Medical (Suzhou) Co., Ltd. BenQ Medical Technology (Shanghai) Ltd. (“BMTS”)	Sales of medical consumables and equipment Sales of medical consumables and equipment Agency of international and entrepot trade business	28,530 ( USD 1,000) 5,991 ( USD 210) 86,718 (CNY 20,000)	(Note 2) (Note 2) (Note 1)	28,530 ( USD 1,000) 5,991 ( USD 210) 34,687 (CNY 8,000)	- - -	- - -	28,530 ( USD 1,000) 5,991 ( USD 210) 34,687 (CNY 8,000)	(402) (3) (130)	100.00% 40.00% 100.00%	(3) (130) (161)	10,863 (Note 3) 2,662 (Note 3) 29,893	- - -

• (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) The above amounts have been eliminated when preparing the consolidated financial statements.

(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$28.53 and CNY$1=NT$4.3359.

2. Limits on investments in Mainland China:

Investee Company Name	Accumulated Investment in Mainland China as of March 31, 2021	Investment Amounts Authorized by Investment Commission, MOEA	Upper Limit on Investment
BMTC	63,217 (USD 1,000 and CNY 8,000)	80,654 (USD 2,827)	635,419
LILY	5,991 (USD 210)	5,991 (USD 210)	108,767

3. 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.

�111�

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 March 31, 2021	Net Income (Loss) of Investee	% of Ownership of Direct or Indirect Investment	Investment Income (Loss)	Carrying Value as of March 31, 2021	Accumulated Inward Remittance of Earnings as of March 31, 2021
					Outflow	Inflow
Partner Tech (Shanghai) Co., Ltd.	Sales, import and export of electronic products	99,855 ( USD 3,500)	(Note 1)	99,855 ( USD 3,500)	-	-	99,855 ( USD 3,500)	(1,899)	100.00%	(1,899) (Note 2)	77,109	-

(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 unreviewed financial statements of the company.

(Note 3) The above amounts were translated into New Taiwan dollars at the exchange rate of US$1 � NT$28.53. (Note 4) The above amounts have been eliminated when preparing the consolidated financial statements.

2. Limits on investments in Mainland China:

Investee Company Name	Accumulated Investment in Mainland China as of March 31, 2021	Investment Amounts Authorized by Investment Commission, MOEA	Upper Limit on Investment
PTT	99,855 (USD 3,500)	197,028 (USD 6,906)	581,458

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.

�112�

E. DFI 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 March 31, 2021	Net Income (Loss) of Investee	% of Ownership of Direct or Indirect Investment	Investment Income (Loss)	Carrying Value as of March 31, 2021 (Note 7)	Accumulated Inward Remittance of Earnings as of March 31, 2021
					Outflow	Inflow
Yan Tong Infotech (Dongguan) Co., Ltd. (“DYTI”) Yan Ying Hao Trading (ShenZhen) Co., Ltd. (“DYTH”)	Manufacture and sales of industrial motherboards and component Wholesale, import and export of industrial motherboards and component	71,325 (USD 2,500) 14,265 (USD 500)	(Note 1) (Note 1)	- -	- -	- -	- -	836 161	100.00% 100.00%	161 (Note 2) 836 (Note 2)	53,148 36,174	33,306 -

2. Limits on investments in Mainland China:

Investee Company Name	Accumulated Investment in Mainland China as of March 31, 2021	Investment Amounts Authorized by Investment Commission, MOEA	Upper Limit on Investment
DFI	- (Note 3)	59,485 (USD 2,085) (Notes 5 and 6)	3,049,407 (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 unreviewed 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 (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 have been eliminated when preparing the consolidated financial statements. (Note 8) The above amounts were translated into New Taiwan dollars at the exchange rate of US$1�NT$28.53

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.

�113�

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 March 31, 2021	Net Income (Loss) of Investee	% of Ownership of Direct or Indirect Investment	Investment Income (Loss)	Carrying Value as of March 31, 2021 (Note 5)	Accumulated Inward Remittance of Earnings as of March 31, 2021
					Outflow	Inflow
Aewin Beijing Technologies Co., Ltd. Aewin (Shenzhen) Technologies Co., Ltd.	Wholesale of computer peripheral products and software Wholesale of computer peripheral products and software	42,795 (USD 1,500) 10,840 (CNY 2,500)	(Note 1) (Note 2)	46,129 -	- -	- -	46,129 -	(1,099) 8,480	100.00% 100.00%	8,480 (Note 3) (1,099) (Note 3)	122,776 225	- -

2. Limits on investments in Mainland China:

Investee Company Name	Accumulated Investment in Mainland China as of March 31, 2021	Investment Amounts Authorized by Investment Commission, MOEA	Upper Limit on Investment
AEWIN	46,129 (USD 1,500)	57,060 (USD 2,000)	691,640 (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 reviewed 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 have been eliminated when preparing the consolidated financial statements.

(Note 6) The above amounts were translated into New Taiwan dollars at the exchange rate of US$1�NT$28.53

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.

�114�

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 March 31, 2021	Net Income (Loss) of Investee	% of Ownership of Direct or Indirect Investment	Investment Income (Loss)	Carrying Value as of March 31, 2021 (Note 5)	Accumulated Inward Remittance of Earnings as of March 31, 2021
					Outflow	Inflow
Xuchang Ace AI Equipment Co.,Ltd. Advancedtek Ace (TJ) Inc. Suzhou Super Pillar Automation Equipment Co., Ltd. Tianjin Ace Pillar Co., Ltd. Grace Transmission (Tianjin) Co., Ltd.	Wholesale of industrial robot and component Electronic system integration Manufacture of automation mechanical transmission system and component Sales of automation mechanical transmission system and component Manufacture of automation mechanical transmission system and component	975,155 (USD 34,180) 7,241 (CNY 1,670) 8,559 (USD 300) 41,369 (USD 1,450) 8,559 (USD 300)	(Note 1 and 2) (Note 1) (Note 1) (Note 1) (Note 1)	55,634 4,565 4,280 - -	- - - - -	- - - - -	55,634 4,565 4,280 - -	370 413 4,193 16 26,750	100.00% 100.00% 100.00% 100.00% 100.00%	26,750 (Note 3) 370 (Note 3) 413 (Note 3) 4,193 (Note 3) 16 (Note 3)	549,293 38,694 (3,877) 92,050 2,877	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 March 31, 2021	Investment Amounts Authorized by Investment Commission, MOEA	Upper Limit on Investment
ACE	146,045 (USD 5,119)	146,045 (USD 5,119)	1,213,212 (Note 4)

(Note 1) Indirect investment in Mainland China is through a holding company established in a third country. (Note 2) 17.61% ownership of Tianjin Ace Pillar Co., Ltd. is directly invested by ACE, and 82.39% ownership of Tianjin Ace Pillar Co., Ltd. is indirectly invested by Proton Inc. established in a third country. (Note 3) Investment income or loss was recognized based on the reviewed financial statements by the auditors of ACE. (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 have been eliminated when preparing the consolidated financial statements. (Note 6) The above amounts were translated into New Taiwan dollars at the exchange rate of US$1�NT$28.53 and CNY$1=NT$4.3359.

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.

�115�

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 March 31, 2021	Net Income (Loss) of Investee	% of Ownership of Direct or Indirect Investment	Investment Income (Loss) (Note 3)	Carrying Value as of March 31, 2021 (Note 2)	Accumulated Inward Remittance of Earnings as of March 31, 2021
					Outflow	Inflow
Data Image (Suzhou) Corporation	Manufacture and sales of LCD	465,039 (USD16,300)	(Note 1)	446,609 (USD15,654)	-	-	446,609 (USD15,654)	(529)	100.00%	(529)	275,813	-

2. Limits on investments in Mainland China:

Accumulated Investment in Mainland China as of March 31, 2021	Investment Amounts Authorized by Investment Commission, MOEA	Upper Limit on Investment
USD 15,654	USD 16,952	706,835 (Note 4)

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

• (Note 2) The above amounts have been eliminated when preparing the consolidated financial statements.

• (Note 3) Investment income or loss was recognized based on the unreviewed financial statements of the company.

• (Note 4) Investment amounts in Mainland China shall not exceed the 60% net worth of DIC according to MOEA letter No. 09704604680. (Note 5) The above amounts were translated into New Taiwan dollars at the exchange rate of US$1�NT$28.53

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.

�116�

I. 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 March 31, 2021	Net Income (Loss) of Investee	% of Ownership of Direct or Indirect Investment	Investment Income (Loss) (Note 3)	Carrying Value as of March 31, 2021 (Note 2)	Accumulated Inward Remittance of Earnings as of March 31, 2021
					Outflow	Inflow
K2 (Shanghai) International Medical Inc.	Sales of medical consumables	35,663 (USD 1,250)	(Note 1)	22,824 ( USD 800)	-	-	22,824 ( USD 800)	7,157	60.10%	4,301	24,626	-

2. Limits on investments in Mainland China:

Accumulated Investment in Mainland China as of March 31, 2021	Investment Amounts Authorized by Investment Commission, MOEA	Upper Limit on Investment
22,824 (USD 800)	22,824 (USD 800)	333,509 (Note 4)

(Note 1) Direct investment in Mainland China.

(Note 2) The above amounts have been eliminated when preparing the consolidated financial statements. (Note 3) Investment income or loss was recognized based on the unreviewd financial statements of the company. (Note 4) Investment amounts in Mainland China shall not exceed the 60% net worth of K2 according to MOEA letter No. 09704604680. (Note 5) The above amounts were translated into New Taiwan dollars at the exchange rate of US$1�NT$28.53

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.

�117�

J. 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 March 31, 2021	Net Income (Loss) of Investee	% of Ownership of Direct or Indirect Investment	Investment Income (Loss)	Carrying Value as of March 31, 2021 (Note 3)	Accumulated Inward Remittance of Earnings as of March 31, 2021
					Outflow	Inflow
Simula Technology (ShenZhen) Co., Ltd. Opti Cloud Technologies, Inc.	Manufacture of electronic connector, socket and plastic hardware Development of High-speed optical transmission cable and moduleproduct technology	191,437 137,336	(Note 1) (Note 1)	141,375 95,099	- -	- -	141,375 95,099	(1,152) 5,980	51.18% 100.00%	5,980 (Note 2) (590) (Note 2)	166,803 16,478	- -

2. Limits on investments in Mainland China:

2. Limits on investments in Mainland China:
Investee Company Name	Accumulated Investment in Mainland China as of March 31, 2021	Investment Amounts Authorized by Investment Commission, MOEA	Upper Limit on Investment
Simula	309,668	309,668	916,585

(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 reviewed financial statements by the auditors of Simula. (Note 3) The above amounts have been eliminated when preparing the consolidated financial statements.

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.

�118�

K.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 March 31, 2021	Net Income (Loss) of Investee	% of Ownership of Direct or Indirect Investment	Investment Income (Loss) (Note 2)	Carrying Value as of March 31, 2021 (Note 8)	Accumulated Inward Remittance of Earnings as of March 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	(5,868) 4,189 (31,736) 2,859	100.00% 100.00% 100.00% 100.00%	2,859 (31,736) 4,189 (5,868)	563,694 1,015,460 301,626 1,227,576	- - - -

2. Limits on investments in Mainland China:

2. Limits on investments in Mainland China:
Investee Company Name	Accumulated Investment in Mainland China as of March 31, 2021	Investment Amounts Authorized by Investment Commission, MOEA	Upper Limit on Investment
Alpha	3,261,784 (Note 3�4 and 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 reviewed 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.

(Note 8) The above amounts have been eliminated when preparing the consolidated financial statements.

3. 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.

�119�

L.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 March 31, 2021	Net Income (Loss) of Investee	% of Ownership of Direct or Indirect Investment	Investment Income (Loss) (Note 2)	Carrying Value as of March 31, 2021 (Note 5)	Accumulated Inward Remittance of Earnings as of March 31, 2021
					Outflow	Inflow
Hwa Chi Technologies Jietech Suzhou Hitron Suzhou	Technical consultation on electronic communication, technology research and development, maintenance and after-sale service Sale of broadband network products and related services Production and sale of broadband telecommunications products	641,763 57,473 5,814 (USD200)	(Note 1) (Note 1) (Note 1)	641,763 57,473 12,048	- - -	- - -	641,763 57,473 12,048	1,018 1,673 (62,554)	100.00% 100.00% 43.10% (Note 3 and 4)	(81,057) 1,676 439	641,769 35,529 6,174	- - 21,314

2. Limits on investments in Mainland China:

2. Limits on investments in Mainland China:
Investee Company Name	Accumulated Investment in Mainland China as of March 31, 2021	Investment Amounts Authorized by Investment Commission, MOEA	Upper Limit on Investment
Hitron Technologies	711,284	711,284	2,993,808

(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 reviewed financial statements by the auditors of Hitron Technologies.

(Note 3) Hwa Chi is a reinvestment company in China which formerly invested by Hitron (Samoa) , 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.

(Note 5) The above amounts have been eliminated when preparing the consolidated financial statements.

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.

�120�

M.Topview Optronics Corporation

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 March 31, 2021	Net Income (Loss) of Investee	% of Ownership of Direct or Indirect Investment	Investment Income (Loss)	Carrying Value as of March 31, 2021	Accumulated Inward Remittance of Earnings as of March 31, 2021
					Outflow	Inflow
-	-	-	-	-	-	-	-	-	-	-	-	-

2. Limits on investments in Mainland China:

Investee Company Name	Accumulated Investment in Mainland China as of March 31, 2021	Investment Amounts Authorized by Investment Commission, MOEA (Note 1)	Upper Limit on Investment (Note 2)
Topview	5,192 ( USD 182)	5,192 ( USD 182)	641,575

(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.

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.

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