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 Six Months Ended June 30, 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 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 10～24 24 24～83 84～88 89 90 90 90 90～91 91、93～108 91、109～114 92、115～128 92 92

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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 June 30, 2021 and 2020, and the related consolidated statements of comprehensive income for the three-month periods ended June 30, 2021 and 2020, and for the six-month periods ended June 30, 2021 and 2020, as well as the consolidated statements of changes in equity and cash flows for the six-month periods ended June 30, 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 $21,445,719 thousand and $18,226,770 thousand, constituting 11.72% and 13.19% of the consolidated total assets; as well as the total liabilities amounting to $8,515,151 thousand and $7,440,283 thousand, constituting 7.01% and 8.17% of the consolidated total liabilities as of June 30, 2021 and 2020, respectively; and also, the total comprehensive income amounting to $114,245 thousand, $(82,478) thousand, $426,397 thousand and $(393,786) thousand, constituting 4.21%, (8.93)%, 6.30% and (47.31)% of the consolidated total comprehensive income for the threemonth periods ended June 30, 2021 and 2020, and for the six-month periods ended June 30, 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 $1,010,313 thousand and $1,300,156 thousand as of June 30, 2021 and 2020, respectively, and the share of profits (losses) of associates and joint ventures amounted to $3,190 thousand, $9,514 thousand, $12,622 thousand and $19,155 thousand for the three-month periods ended June 30, 2021 and 2020, and for the six-month periods ended June 30, 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 June 30, 2021 and 2020, and of its consolidated financial performance for the three-month periods ended June 30, 2021 and 2020 and for the six-month periods ended June 30, 2021 and 2020, as well as its consolidated cash flows for the six-month periods ended June 30, 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 $7,697,827 thousand and $13,727,992 thousand, constituting 4.21% and 9.93% of the consolidated total assets as of June 30, 2021 and 2020, respectively, and the total operating revenues amounting to $3,115,167 thousand, $3,762,569 thousand, $3,820,230 thousand and $6,388,859 thousand, constituting 5.56%, 8.62%, 3.57% and 7.71% of the consolidated operating revenues for the threemonth periods ended June 30, 2021 and 2020, and for the six-month periods ended June 30, 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) August 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 June 30, 2021 and 2020

QISDA CORPORATION AND SUBSIDIARIES

Consolidated Balance Sheets

June 30, 2021, December 31 and June 30, 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(e) and 7) 1210 Other receivables from related parties (notes 6(d) and (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) and 8) 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	June 30, 2021 Amount % $ 21,234,240 12 156,261 - 104,755 - 29,988,601 16 3,051,939 2 735,833 - 936,040 1 42,007,780 23 4,153,626 2 6,446,837 4 237,361 - 109,053,273 60 303,156 - 17,466,467 10 3,275,629 2 31,453,445 17 4,535,194 2 3,464,432 2 10,350,757 6 1,711,520 1 388,736 - 910,313 - 73,859,649 40 $ 182,912,922 100	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	June 30, 2020 Amount % 15,422,725 11 329,873 - 126,506 - 25,510,230 18 2,365,531 2 770,196 1 553,083 - 26,990,991 20 2,417,930 2 5,063,436 4 119,281 - 79,669,782 58 25,687 - 1,284,978 1 17,388,738 12 24,464,645 18 3,656,827 3 3,536,184 3 5,496,290 4 1,596,261 1 241,782 - 839,106 - 58,530,498 42 138,200,280 100 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	June 30, 2021		December 31, 2020		June 30, 2020 Amount % 19,633,935 14 80,241 - 1,315,273 1 27,824,813 20 1,977,420 2 11,574,500 8 370,275 - - - 421,019 - 1,838,748 2 - - 640,220 1 301,233 - 86,298 - 429,938 - 66,493,913 48 89,663 - 19,046,106 14 1,379,493 1 139,204 - 611,363 - 1,030,195 1 2,248,716 2 24,544,740 18 91,038,653 66 19,667,820 14 2,054,946 2 12,370,078 9 (1,274,222) (1) 32,818,622 24 14,343,005 10 47,161,627 34 138,200,280 100
				Amount %		Amount %
						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

For the three months and six months ended June 30, 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), (m), (q) and (aa) 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 (notes 6(u)) 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 for the period Net income attributable to: 8610 Shareholders of the Company 8620 Non-controlling interests Total comprehensive income 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 mont June	h periods ended 30	For the six mo June	nths ended 30 2020 Amount % 82,872,938 100 (71,679,794) (86) 11,193,144 14 (4,725,106) (6) (1,947,901) (2) (2,019,447) (3) (28,945) - (8,721,399) (11) 2,471,745 3 161,408 - 57,853 - 629,672 1 (422,884) - (431,672) (1) (5,623) - 2,466,122 3 (861,752) (1) 1,604,370 2 (4,772) - (112,094) - - - (116,866) - (478,743) (1) (176,352) - - - (655,095) (1) (771,961) (1) 832,409 1 1,181,170 1 423,200 1 1,604,370 2 515,456 1 316,953 - 832,409 1 0.60
	2021 Amount % $ 55,983,875 100 (47,724,813) (85) 8,259,062 15 (3,199,188) (6) (1,530,678) (3) (1,647,024) (3) 24,805 - (6,352,085) (12) 1,906,977 3 70,472 - 27,458 - 2,934,199 5 (170,599) - 526,148 1 3,387,678 6 5,294,655 9 (906,750) (1) 4,387,905 8 (1,173,673) (2) (31,700) - 100,794 - (1,306,167) (2) (283,334) (1) (85,314) - - - (368,648) (1) (1,674,815) (3) $ 2,713,090 5 $ 3,805,302 7 582,603 1 $ 4,387,905 8 $ 2,183,729 4 529,361 1 $ 2,713,090 5 $ 1.93 $ 1.91	2020 Amount % 43,672,772 100 (37,744,045) (86) 5,928,727 14 (2,407,226) (6) (1,025,010) (2) (1,075,455) (3) 13,850 - (4,493,841) (11) 1,434,886 3 77,379 - 25,313 - 573,332 1 (200,793) - (83,034) - 392,197 1 1,827,083 4 (614,487) (1) 1,212,596 3 163,888 - 118,325 - - - 282,213 - (448,037) (1) (123,681) - - - (571,718) (1) (289,505) (1) 923,091 2 948,649 2 263,947 1 1,212,596 3 711,929 2 211,162 - 923,091 2 0.48 0.48	2021 Amount % 106,887,556 100 (91,127,874) (85) 15,759,682 15 (6,127,555) (6) (2,949,394) (3) (3,104,269) (3) 46,387 - (12,134,831) (12) 3,624,851 3 139,766 - 55,641 - 3,542,517 4 (335,545) - 1,400,018 1 4,802,397 5 8,427,248 8 (1,430,700) (1) 6,996,548 7 126,478 - 25,480 - 100,794 - 51,164 - (172,136) (1) (109,353) - - - (281,489) (1) (230,325) (1) 6,766,223 6 5,916,934 6 1,079,614 1 6,996,548 7 5,745,405 5 1,020,818 1 6,766,223 6 3.01 2.97
				0.59

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 six months ended June 30, 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 for the period Appropriation of earnings: Legal reserve Special reserve Cash dividends distributed to shareholders 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 Stock option compensation cost of subsidiaries Changes in non-controlling interests Balance at June 30, 2020 Balance at January 1, 2021 Net income for the period Other comprehensive income (loss) for the period Total comprehensive income for the period Appropriation of earnings: Legal reserve Special reserve Cash dividends distributed to shareholders 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 June 30, 2021					Attr	ibutable to sharehol	ders of the Company	ders of the Company	ders of the Company		Total equity of the Company 33,943,959 1,181,170 (665,714) 515,456 - - (1,475,086) (150,066) - - (15,641) - - 32,818,622 36,025,501 5,916,934 (171,529) 5,745,405 - - (2,950,173) (97,612) - - (557,207) 6,422 - - - 38,172,336	Non- controlling interests	Total equity 48,035,594
	Common stock	Capital surplus 2,220,653		Reta	ined earnings			Other equity interest
			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)					14,091,635
	- -	- -	- -	- -	1,181,170 -	1,181,170 -	- (556,408)	- (109,306)	- -	- (665,714)		423,200 (106,247)	1,604,370 (771,961)
	-	-	-	-	1,181,170	1,181,170	(556,408)	(109,306)	-	(665,714)		316,953	832,409
	- - - - - - - - -	- - - (150,066) - - (15,641) - -	357,505 - - - - - - - -	- 440,086 - - - - - - -	(357,505) (440,086) (1,475,086) - - - - - -	- - (1,475,086) - - - - - -	- - - - - - - - -	- - - - - - - - -	- - - - - - - - -	- - - - - - - - -		- - - 4,619 (953,847) 12,028 (91,061) 4,907 957,771	- - (1,475,086) (145,447) (953,847) 12,028 (106,702) 4,907 957,771
	$ 19,667,820	2,054,946	2,183,984	608,508	9,577,586	12,370,078	(1,213,920)	300,746	(361,048)	(1,274,222)		14,343,005	47,161,627
	$ 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)		22,937,719	58,963,220
	- -	- -	- -	- -	5,916,934 -	5,916,934 -	- (221,646)	- 50,222	- (105)	- (171,529)		1,079,614 (58,796)	6,996,548 (230,325)
	-	-	-	-	5,916,934	5,916,934	(221,646)	50,222	(105)	(171,529)		1,020,818	6,766,223
	- - - - - - - - - - -	- - - (97,612) - - - 6,422 - - -	455,392 - - - - - - - - - -	- 656,137 - - - - - - - - -	(455,392) (656,137) (2,950,173) - - - (557,207) - - - 66,280	- - (2,950,173) - - - (557,207) - - - 66,280	- - - - - - - - - - -	- - - - - - - - - - (66,280)	- - - - - - - - - - -	- - - - - - - - - - (66,280)		- - - 399 (1,071,175) 64,874 (937,258) (6,422) 3,903 1,221,141 -	- - (2,950,173) (97,213) (1,071,175) 64,874 (1,494,465) - 3,903 1,221,141 -
	$ 19,667,820	1,788,311	2,639,376	1,264,645	14,314,638	18,218,659	(1,635,513)	555,271	(422,212)	(1,502,454)		23,233,999	61,406,335

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 six months ended June 30, 2021 and 2020 (Expressed in Thousands of New Taiwan Dollars)

		For the six months ended June 30	For the six months ended June 30
		2021	2020
Cash flows from operating activities:
Income before income tax	$	8,427,248	2,466,122
Adjustments for:
Adjustments to reconcile profit or loss:
Depreciation		1,867,092	1,481,486
Amortization		460,365	229,119
Expected credit loss (reversal of impairment loss)		(46,387)	28,945
Interest expense		335,545	422,884
Interest income		(139,766)	(161,408)
Dividend income		(15,861)	(7,643)
Share-based compensation cost		3,903	4,907
Share of losses (profits) of associates and joint ventures		(1,400,018)	431,672
Loss on disposal of property, plant and equipment		32,877	1,568
Gain on disposal of non-current assets and the related liabilities held		(449,570)	-
for sale
Gain on disposal of investments		(2,809,008)	(1,931)
Impairment loss on non-financial assets		-	6,585
Impairment loss on investments accounted for using equity method		6,632	-
Total adjustments to reconcile profit		(2,154,196)	2,436,184
Changes in operating assets and liabilities:
Changes in operating assets:
Decrease (increase) in financial assets at fair value through profit or loss		15,461	(55,175)
Decrease in notes and accounts receivable		3,842,059	3,624,925
Decrease in notes and accounts receivable from related parties		228,430	30,275
Decrease (increase) in other receivable		37,280	(154,188)
Increase in other receivable from related parties		(9,501)	(18,204)
Decrease (increase) in inventories		(5,627,020)	1,070,144
Increase in other current assets		(1,024,687)	(580,795)
Decrease (increase) in other non-current assets		(12,739)	50,147
Net changes in operating assets		(2,550,717)	3,967,129
Changes in operating liabilities:
Increase (decrease) in financial liabilities at fair value through profit or
loss		(66,492)	23,884
Decrease in notes and accounts payable		(1,271,415)	(1,309,179)
Increase (decrease) in accounts payable to related parties		(227,700)	136,925
Increase in other payable to related parties		10,176	33,434
Decrease in provisions		(55,947)	(9,156)
Increase (decrease) in contract liabilities		381,115	(248,099)
Increase (decrease) in other payables and other current liabilities		567,874	(756,109)
Increase (decrease) in other non-current liabilities		37,430	(9,934)
Net changes in operating liabilities		(624,959)	(2,138,234)
Total changes in operating assets and liabilities		(3,175,676)	1,828,895
Total adjustments		(5,329,872)	4,265,079
Cash provided by operations		3,097,376	6,731,201
Interest received		94,920	137,731
Dividends received		15,861	7,643
Interest paid		(348,706)	(499,510)
Income taxes paid		(977,463)	(521,725)
Net cash provided by operating activities		1,881,988	5,855,340

See accompanying notes to consolidated financial statements.

7-1

(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 six months ended June 30, 2021 and 2020

(Expressed in Thousands of New Taiwan Dollars)

		For the six months ended June 30	For the six months ended June 30
		2021	2020
Cash flows from investing activities:
Purchase of financial assets at fair value through other comprehensive	$	(69,187)	(61,500)
income
Proceeds from disposal of financial assets at fair value through other		165,063	-
comprehensive income
Proceeds from capital reduction of financial assets at fair value through		-	6,667
other comprehensive income
Purchase of financial assets at fair value through profit or loss		(100,000)	(363,000)
Proceeds from disposal of financial assets at fair value through profit or		164,879	738,841
loss
Purchase of investments accounted for using the equity method		(5,000)	(617,300)
Proceeds from disposal of investments accounted for using the equity		959,335	5,000
method
Proceeds from disposal of subsidiaries		46,246	-
Proceeds from disposal of non-current assets and related liabilities held for		350,371	-
sale
Additions to property, plant and equipment		(2,997,528)	(1,597,342)
Proceeds from disposal of property, plant and equipment		183,865	71,591
Additions to intangible assets		(293,871)	(69,221)
Increase in other financial assets		(3,462,698)	(705,081)
Net cash paid for acquisition of subsidiaries		(701,514)	(217,013)
Net cash flows used in investing activities		(5,760,039)	(2,808,358)
Cash flows from financing activities:
Increase in short-term borrowings		4,987,853	3,927,482
Repayments of short-term borrowings		(2,579,145)	(4,398,530)
Increase in long-term debt		8,095,372	8,756,358
Repayments of long-term debt		(4,752,497)	(6,306,833)
Decrease in guarantee deposits received		(1,318,047)	(70,659)
Payment of lease liabilities		(276,255)	(282,508)
Acquisition of subsidiary’s interests from non-controlling interests		(1,494,465)	(106,702)
Capital injection from non-controlling interests		64,874	12,028
Net cash provided by financing activities		2,727,690	1,530,636
Effects of foreign exchange rate changes		(155,817)	64,600
Net increase (decrease) in cash and cash equivalents		(1,306,178)	4,642,218
Cash and cash equivalents at beginning of period		22,540,418	10,780,507
Cash and cash equivalents at end of period	$	21,234,240	15,422,725

See accompanying notes to consolidated financial statements.

8

(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 six months ended June 30, 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 August 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”

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

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

• －

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

• －

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

• ●Annual Improvements to IFRS Standards 2018–2020

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

(Continued)

9

QISDA CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

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

The following new and amended standards, which may be relevant to the 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 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 1 “Disclosure of Accounting Policies”

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

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

(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 June 30, 2021 December 31, 2020 June 30, 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 June 30, 2021 December 31, 2020 June 30, 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)

12

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 June 30, 2021 December 31, 2020 June 30, 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 June 30, 2021 December 31, 2020 June 30, 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 June 30, 2021 December 31, 2020 June 30, 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 5 % 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 June 30, 2021 December 31, 2020 June 30, 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 -

(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 June 30, 2021 December 31, 2020 June 30, 2020 Note % 68.23 % 68.23 % 68.23 - % 64.34 % 64.34 % 64.34 Note 1 % 68.23 % 68.23 % 68.23 - % 35.74 % 35.74 - Notes 1, 3 and 5 % 68.23 % 68.23 % 68.23 - % 34.13 % 34.13 % 34.13 Note 3 % 39.70 % 39.70 % 39.70 Notes 1 and 3 % 34.18 % 34.18 % 34.18 Notes 1 and 3 % 30.72 % 30.72 % 30.72 Note 3 % 23.21 % 23.21 % 23.21 Note 3 % 68.23 % 68.23 % 68.23 Note 9 % 68.23 % 68.23 % 68.23 - % 68.23 % 68.23 % 68.23 - % 68.23 % 68.23 % 68.23 Note 1 % 34.55 % 34.55 % 34.55 Notes 1 and 3 - % 68.23 % 68.23 Note 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 DFI Yan Tong Technology Ltd. Yan Tong Technology Ltd. DFI AEWIN AEWIN WISE WAY BRIGHT PROFIT Aewin Beijing Technologies Co., Ltd.	Name of Investee DFI AMERICA, LLC DFI Co., Ltd. Yan Tong Technology Ltd. Diamond Flower Information (NL) B.V. Brainstorm Corporation Yan Tong Infotech (Dongguan) Co., Ltd. Yan Ying Hao Trading (ShenZhen) Co., Ltd Aewin Technologies Co., Ltd. (“AEWIN”) WISE WAY AEWIN TECH INC. BRIGHT PROFIT Aewin Beijing Technologies Co., Ltd. Aewin (Shenzhen) Technologies Co., Ltd.	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 Wholesale and retail of computers and peripherals products 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	Percentage of Ownership June 30, 2021 December 31, 2020 June 30, 2020 Note % 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 % 19.33 - - Notes 2 and 7 % 55.09 % 55.09 % 55.09 Note 1 % 55.09 % 55.09 % 55.09 Note 1 % 28.30 % 28.01 % 27.95 Note 3 % 28.30 % 28.01 % 27.95 Note 3 % 28.30 % 28.01 % 27.95 Note 3 % 28.30 % 28.01 % 27.95 Note 3 % 28.30 % 28.01 % 27.95 Note 3 % 28.30 % 28.01 % 27.95 Note 3

(Continued)

18

QISDA CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

Name of Investor DFI ACE ACE/Proton ACE Cyber South Cyber South Cyber South Cyber South Cyber South Ace Tek The Company/ Darly2 K2 K2 K2	Name of Investee Ace Pillar Co., Ltd. (“ACE”) Cyber South Management Ltd. (“Cyber South”) 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. (“K2SH”) PT. Frismed Hoslab Indonesia	Main Business and Products Sales of automation mechanical transmission system and component Investment and holding activity 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	Percentage of Ownership June 30, 2021 December 31, 2020 June 30, 2020 Note % 19.39 % 18.49 % 16.82 Note 2 % 19.39 % 18.49 % 16.82 Note 2 % 19.39 % 18.49 % 16.82 Note 2 % 19.39 % 18.49 % 16.82 Note 2 % 19.39 % 18.49 % 16.82 Note 2 % 19.39 % 18.49 % 16.82 Note 2 % 19.39 % 18.49 % 16.82 Note 2 % 19.39 % 18.49 % 16.82 Note 2 % 19.39 % 18.49 % 16.82 Note 2 % 19.39 % 18.49 % 16.82 Note 2 % 40.00 % 40.00 % 37.56 Notes 1 and 2 % 19.60 % 19.60 % 18.40 Notes 1 and 2 % 40.00 % 24.04 % 22.57 Notes 1 and 2 % 26.80 % 26.80 - Notes 1, 2 and 6

(Continued)

19

QISDA CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

Name of Investor The Company/ APV/Darly2 DIC DMC The Company EASC The Company/ APV/ Darly2 Topview Messoa The Company Sysage/Epic Cloud Sysage Sysage	Name of Investee Data Image Corporation (“DIC”) Data Image (Mauritius) Corporation (“DMC”) Data Image (Suzhou) Corporation 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”)	Main Business and Products Manufacture and sales of marine display modules Investment and holding activity Manufacture and sales of LCD 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	Percentage of Ownership June 30, 2021 December 31, 2020 June 30, 2020 Note % 38.35 % 38.35 % 35.41 Note 2 % 38.35 % 38.35 % 35.41 Note 2 % 38.35 % 38.35 % 35.41 Note 2 % 54.00 % 54.00 % 54.00 Note 1 % 54.00 % 54.00 % 54.00 Note 1 % 33.56 % 33.56 % 33.50 Note 2 % 13.69 % 13.69 % 13.66 Note 2 % 13.69 % 13.69 % 13.66 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 % 35.04 Notes 1, 5 and 10

(Continued)

20

QISDA CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

Name of Investor Sysage Sysage Sysage/Ginnet Sysage/Epic cloud Advanced TEK Statinc The Company/ APV/ Darly2 Simula Simula Simula Simula /Aspire Asia Inc. Aspire Asia Inc. Aspire Electronics Corp.	Name of Investee Corex (Pty) Ltd. (“PCX”) AdvancedTEK International Corp. (“AdvancedTEK”) Dawning Technology Inc. (“Dawningtech”) Statinc Company (“Statinc”) APEO Human Capital Services Corp. DKABio Co., Ltd. (“Dataa”) Simula Technology Inc. (“Simula”) Aspire Asia Inc. Simula Technology Corp. Action Star Technology Co., Ltd. (“AST”) Simula Company Limited Aspire Electronics Corp. Opti Cloud Technologies, Inc	Main Business and Products Sales and import and export of electronic products Implementation of application software services Sales of network and information hardware and software. Market research, marketing consultant and big data cloud database services Implementaion of application software services Market research, marketing consultant and big data cloud database services Manufacture and sales of electronic material Investment and holding activity Sales in North America Research & development, manufacture and sale of USB docking station product Investment and holding activity Investment and holding activity Research & development of High-speed optical transmission cable and module product technology	Percentage of Ownership June 30, 2021 December 31, 2020 June 30, 2020 Note % 51.41 - - Notes 1 and 8 % 17.53 - - Notes 1, 2, 7 and 11 - % 14.55 % 13.70 Notes 1 and 10 % 18.00 - - Notes 1, 2 and 7 % 17.53 - - Notes 1, 2 and 7 % 51.41 - - Notes 1 and 12 % 51.27 % 51.27 % 51.27 Note 6 % 51.27 % 51.27 % 51.27 Note 6 % 51.27 % 51.27 % 51.27 Note 6 % 30.43 - - Note 3 and 7 % 51.27 % 51.27 % 51.27 Note 6 % 48.76 % 48.76 % 48.76 Notes 3 and 6 % 26.24 % 26.24 % 26.24 Notes 3 and 6

(Continued)

21

QISDA CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

Name of Investor Simula Company Limited The Company/ APV GSC GSC The Company /APV/ Darly2/ Darly C Alpha Alpha Alpha Alpha Alpha Alpha Alpha D-Link Asia D-Link Asia Alpha Dongguan	Name of Investee 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”) 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.	Main Business and Products 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 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	Percentage of Ownership June 30, 2021 December 31, 2020 June 30, 2020 Note % 51.27 % 51.27 % 51.27 Note 6 % 100.00 % 100.00 % 100.00 Notes 1 and 6 % 100.00 % 100.00 % 100.00 Notes 1 and 6 % 66.57 % 66.57 % 59.13 Notes 1 and 6 % 59.98 % 59.87 Note 6(h) 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

(Continued)

22

QISDA CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

Name of Investor Alpha HK Enrich Investment Alpha Hitron Technologies Hitron Technologies Hitron Technologies Hitron Technologies Hitron Technologies Hitron Samoa Hitron Samoa Hitron Technologies/ Enrich Investment	Name of Investee Alpha Networks (Changshu) Co., Ltd. (“Alpha Changshu”) Transnet Corporation (“Transnet”) Hitron Technologies Inc. (“Hitron Technologies”) Hitron Technologies (Samoa) Inc (“Hitron Samoa”) 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”)	Main Business and 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 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	Percentage of Ownership June 30, 2021 December 31, 2020 June 30, 2020 Note % 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 % 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 % 20.08 % 20.59 - Notes 3 and 6

(Continued)

23

QISDA CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

Name of Investor Interactive Digital	Name of Investee Hwa Chi Technologies (Shanghai) Inc. (“Hwa Chi Technologies”)	Main Business and Products Technical consultation on electronic communication, technology research and development, maintenance and after-sale service	Percentage of Ownership June 30, 2021 December 31, 2020 June 30, 2020 Note % 20.08 % 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 six months ended June 30, 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, Youshan, BMM, 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.

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.

• Note 12: Dataa was newly established in 2021.

(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.

(Continued)

24

QISDA CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(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.

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	June 30, 2021 $ 106,482 15,482,053 - 5,645,705 $ 21,234,240	December 31, 2020 108,574 15,114,756 - 7,317,088 22,540,418	June 30, 2020
			243,304 12,916,110 53,388 2,209,923
			15,422,725

As of June 30, 2021, December 31 and June 30, 2020, the time deposits with original maturities more than three months amounted to $6,374,926, $2,655,274 and $5,030,499, respectively, which － were classified as other financial assets current.

(Continued)

25

QISDA CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(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)) 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	June 30, 2021 $ 51,485 11,569 64,191 28,969 47 $ 156,261 June 30, 2021 $ 287,119 10,504 5,533 $ 303,156 $ (55,230) (14,831) (13,237) $ (83,298) June 30, 2021 $ (91,292)	December 31, 2020 96,940 14,612 68,894 208,054 543 389,043 December 31, 2020 157,694 10,504 5,533 173,731 (109,648) (25,370) (4,643) (139,661) December 31, 2020 (78,123)	June 30, 2020 80,097 18,599 - 231,177 - 329,873 June 30, 2020 9,650 10,504 5,533 25,687 (63,847) (13,165) (3,229) (80,241) June 30, 2020 (89,663)

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.

(Continued)

26

QISDA CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

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

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 CNY Buy/ USD Sell MYR Buy/ USD Sell SEK Buy/ EUR Sell USD Buy/ THB Sell EUR Buy/ USD Sell USD Buy/ TWD Sell USD Buy/ GBP Sell USD Buy/ ZAR Sell USD Buy/ AUD Sell

June 30, 2021

Contract amount (in thousands) Maturity period EUR 69,058 2021/07~2021/11 USD 45,000 2021/07~2021/09 JPY 194,913 2021/07 CAD 9,000 2021/07~2021/10 USD 20,000 2021/07~2021/10 USD 38,190 2021/07~2021/09 EUR 5,278 2021/07~2021/09 GBP 5,000 2021/09~2021/10 USD 3,194 2021/07~2021/09 USD 18,000 2021/07~2021/09 JPY 800,000 2021/09 USD 7,500 2021/08 USD 51,583 2021/07~2021/08 CNY 6,475 2021/07 CNY 9,102 2021/07 USD 51,290 2021/07~2021/09 MYR 34,000 2021/07~2021/09 EUR 2,000 2021/09 USD 3,000 2021/09 USD 1,141 2021/07 USD 11,410 2021/07~2021/08 GBP 424 2021/07 USD 528 2021/07~2021/08 AUD 2,000 2021/09

(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

June 30, 2020

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	Contract amount (in thousands) Maturity period EUR 60,393 2020/07~2020/09 USD 41,320 2020/07~2020/09 CAD 6,000 2020/08~2020/09 USD 16,000 2020/07~2020/09 USD 7,800 2020/07~2020/09 GBP 5,000 2020/07 USD 14,000 2020/09 JPY 400,000 2020/08~2020/09 USD 7,500 2020/08 USD 40,331 2020/07~2020/09 CNY 16,368 2020/07~2020/09 USD 66,600 2020/07~2020/09 MYR 21,000 2020/08 EUR 2,000 2020/08

(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 USD Buy/ ZAR Sell	June 30, 2020
	Contract amount (in thousands) Maturity period USD 3,000 2020/08 USD 22,420 2020/07~2020/10 GBP 406 2020/07 USD 1,000 2020/07 ZAR 57,072 2020/07

(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

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

	June 30, 2021	June 30, 2021
Contract	amount
(in thousands)		Maturity period
USD	144,000	2021/07
AUD	3,000	2021/09
JPY	400,000	2021/09
USD	138,520	2021/07
	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
	June 30, 2020
Contract	amount
(in thousands)		Maturity period
USD	59,000	2020/07~2020/09
AUD	3,000	2020/08
JPY	400,000	2020/08
USD	101,290	2020/07~2020/08

(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	June 30, 2021 $ 15,341,761 1,750,024 479,437 $ 17,571,222 $ 104,755 17,466,467 $ 17,571,222	December 31, 2020 296,043 761,132 420,505 1,477,680 96,281 1,381,399 1,477,680	June 30, 2020
			353,953 553,334 504,197
			1,411,484
			126,506 1,284,978
			1,411,484

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.

On May 12, 2021, the Group lost significant influence over AU Optronics Corp (“AU”). Hence, the investment in AU was reclassified from investments accounted for using the equity method to financial assets at fair value through other comprehensive income. Please refer to note 6(h).

For the six months ended June 30, 2021, the Group sold part of its financial assets at fair value through other comprehensive income for $165,063. The realized gain accumulated in other comprehensive income of $58,771 has been transferred from other equity to retained earnings.

For the six months ended June 30, 2020, no strategic investments was disposed and there was no transfer of any cumulative profit or loss within equity.

Refer to note 8 for a description of the Group’ s financial assets at fair value through other － comprehensive income non-current pledged as collateral for long-term debt and credit facilities.

(d) Notes and accounts receivable

Notes and accounts receivable Notes and accounts receivable from related parties Less: loss allowance	June 30, 2021 $ 30,289,023 3,051,939 33,340,962 (300,422) $ 33,040,540	December 31, 2020 33,508,623 3,280,369 36,788,992 (287,066) 36,501,926	June 30, 2020
			25,853,675 2,365,531
			28,219,206 (343,445)
			27,875,761

(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		June 30, 2021
	Gross carrying amount Weighted- average loss rate $ 31,156,019 0.07% 1,742,013 1.12% 155,738 38.89% 287,192 69.52% $ 33,340,962 December 31, 2020		Loss allowance
			20,673 19,528 60,559 199,662
			300,422
		Weighted- average loss rate 0.08% 1.38% 48.05% 78.30% June 30, 2020	Loss allowance
			29,305 19,669 67,395 170,697
			287,066
		Weighted- average loss rate 0.12% 4.14% 52.10% 100%	Loss allowance
			32,459 42,529 78,692 189,765
			343,445

(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 Transferred to other receivables Balance at June 30

• (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:

June 30, 2021

Underwriting bank	Factored amount $ 3,868,510 6,953,098 450,365 699,865 142,043 53,190 $ 12,167,071	Unpaid advance amount - - - - - - - Dece	Advance amount 3,827,145 6,953,098 404,244 629,842 126,260 45,797 11,986,386 mber 31, 2020	Amount recognized in other receivables 41,365 - 46,121 70,023 15,783 7,393 180,685	Range of interest rates Collat Promissory not Non Non Promissory not Non Non 0.525%～3.5%	eral e 50,162 e - e - e 150,000 e - e -
CTBC Bank Taishin International Bank Taipei Fubon Bank Mega International Commercial Bank E.SUN Commercial Bank Crefo Factoring Nord GmbH
						200,162
Underwriting bank		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

		J	une 30, 2020
Underwriting bank	Factored amount $ 2,710,137 965,644 4,452,249 315,215 126,186 25,115 $ 8,594,546	Unpaid advance amount 1,562 1,395 - - - -	Advance amount 2,435,822 867,672 4,452,249 283,639 113,538 21,203 8,174,123	Amount recognized in other receivables 274,315 97,972 - 31,576 12,648 3,912 420,423	Range of interest rates Collat Promissory not Promissory not Non Non Non Non 0.88%～3.5%	eral e 53,388 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
		2,957				303,388

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 Dividend receivables from related parties	June 30, 2021 $ 180,685 582,959 763,644 (27,811) 735,833 736,814 199,226 $ 1,671,873	December 31, 2020 224,862 479,318 704,180 (28,292) 675,888 302,399 - 978,287	June 30, 2020 420,423 379,372 799,795 (29,599) 770,196 294,297 258,786 1,323,279

As of June 30, 2021, December 31 and June 30, 2020, except for other receivables amounting to $27,811, $28,292 and $29,599, 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	June 30, 2021 $ 17,121,298 3,011,645 16,437,569 5,437,268 $ 42,007,780	December 31, 2020 11,353,769 2,343,595 15,336,859 6,105,110 35,139,333	June 30, 2020
			5,160,654 1,672,658 15,308,098 4,849,581
			26,990,991

(Continued)

33

QISDA CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

For the six months ended June 30, 2021 and 2020, the amounts of inventories recognized as cost of revenue were as follows:

Cost of inventories sold Write-downs of (reversal of) inventories	For the three months ended June 30, 2021 2020 $ 46,289,438 36,552,147 (53,184) 77,118 $ 46,236,254 36,629,265	For the six months ended June 30,	For the six months ended June 30,
	2021 $ 46,289,438 (53,184) $ 46,236,254	2021 88,100,738 83,289 88,184,027	2020
			69,308,294 195,710
			69,504,004

• (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, with carrying amount of $119,281, located at Penang, Malaysia, to one of the Group's associates, Visco Technology Sdn. Bhd. The above land and building has been sold in the second quarter of 2021 for a consideration of $561,173; of which, $84,576 of the consideration has been received. A disposal gain of $365,338 was recognized and included in the other gain and loss-net in the accompanying consolidated financial statements.

• (iii) In May 2021, the Board of Directors of SMS and ACE approved a resolution to dispose the parcels of land and buildings located at Ruifang and Sanchong District, New Taipei City, respectively. Since the lands and buildings are expected to be disposed within one year, the abovementioned assets, with the carrying amounts of $237,361, were classified as non-current assets held-for-sale as of June 30, 2021.

(Continued)

35

QISDA CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(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	June 30, 2021 $ 3,245,825 29,804 $ 3,275,629	December 31, 2020 16,278,479 29,955 16,308,434	June 30, 2020
			17,360,233 28,505
			17,388,738

(i) 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	June 30, 2021 Percentage of voting rights Carrying amount - $ - % 25.73 2,315,545 - - - 930,280 $ 3,245,825	December	31, 2020 Carrying amount 12,701,500 2,364,486 - 1,212,493 16,278,479	June 30,	2020
		Percentage of voting rights	Percentage of voting rights		Percentage of voting rights % 6.99 % 25.73 % 23.84 -	Carrying amount
		- % 25.73 - -	% 6.99 % 25.73 notes 4(b) and 6(i) -			11,546,697 2,087,625 2,425,743 1,300,168
						17,360,233

The equity-method was used to account for the Group's investments in AU, in 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 of AU before May 11, 2021. However, the chairman of the Company resigned as the director of AU on May 11, 2021, which caused the Group to lose significant influence over AU. As a result, the investment in AU has been reclassified to financial assets at fair value through other － comprehensive income non-current. A gain on disposal of investments of $1,979,741 was recognized under other gains and losses, accordingly.

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 June 30, 2021, 11.175% ownership of NSHD had been sold and $959,335 (CNY $223,500 thousand) of consideration was received, resulting in a gain on disposal of investments of $817,499 to be recognized. The Group still has significant influence over NSHD.

(Continued)

36

QISDA CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

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.

In the second quarter of 2021, the Group assessed that the investment of the associate, DMC Components International, LLC, has been impaired, and therefore recognized impairment loss of $6,632 under other gains and losses.

For the three months ended June 30, 2021 and 2020, and for the six months ended June 30, 2021 and 2020, the Group’ s shares of profits (losses) of associates amounted to $526,042, $(87,446), $1,400,073 and $(435,271), respectively.

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

AU DFN Alpha	June 30, 2021 $ - 3,305,764 -	December 31, 2020 June 30, 2020 9,290,386 6,144,927 3,122,110 2,725,995 - 3,538,683

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:

December 31, 2020 Current assets $ 168,317,673 Non-current assets 238,952,622 Current liabilities (98,338,179) Non-current liabilities (115,141,751) Equity $ 193,790,365 Equity attributable to non- controlling interests of AU $ 10,985,674 Equity attributable to shareholders of AU $ 182,804,691	June 30, 2020 142,558,602 242,858,515 (88,278,017) (120,834,967) 176,304,133 10,020,224 166,283,909

(Continued)

37

QISDA CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

				For	For	the three	the three		For the six	For the six
				months ended				months ended
					June 30,					June 30,
							2020			2020
Net sales				$	63,500,181					117,190,324
Net income (loss)				$		(3,202,471)				(8,980,568)
Other comprehensive loss							(20,924)			(2,715,790)
Total comprehensive income (loss)				$	(3,223,395)					(11,696,358)
Total comprehensive loss attributable to non-
controlling interests of AU				$			(391,350)			(1,284,684)
Total comprehensive loss attributable to shareholders
of AU				$	(2,832,045)					(10,411,674)
		For the three	months				For the six months
		ended June 30,					ended		June 30,
		2021	2020				2021			2020
The Group’s share of equity of
associates at January 1	$	13,343,900	11,819,697				12,804,784			12,348,373
Total comprehensive income
(loss) attributable to the
Group		398,577	(197,959)				1,192,389			(727,779)
Capital surplus attributable to
the Group		-		518			(55,616)			1,662
Reclassified to financial assets
at fair value through other
comprehensive income		(13,838,274)		-			(13,838,274)			-
Reversal of dividend received
from associates		199,080		-			-			-
Cumulative effect of
investment income
recognized under treasury
stock method		(103,283)	(75,559)				(103,283)			(75,559)
The carrying amount of
investments in the associates
at June 30	$	-	11,546,697				-			11,546,697

(Continued)

38

QISDA CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

• 2) The summarized financial information of DFN:

			June 30,	December 31,	December 31,	December 31,	December 31,	June 30,
			2021			2020		2020
Current assets		$	19,074,667		14,983,083			12,684,159
Non-current assets			11,121,214			9,286,423		8,647,783
Current liabilities			(15,484,895)		(11,672,915)			(11,225,559)
Non-current liabilities			(3,251,023)		(2,017,529)			(937,845)
Equity		$	11,459,963		10,579,062			9,168,538
Equity attributable to non-
controlling interests of DFN		$	2,458,740			1,387,996		1,053,667
Equity attributable to shareholders
of DFN		$	9,001,223			9,191,066		8,114,871
		For	the three months				For the six months
		ended June 30,					ended June 30,
		2021		2020		2021		2020
Net sales	$	7,537,554		5,726,536		13,532,995		9,838,225
Net income	$	381,354		250,198			607,104	360,352
Other comprehensive loss		(228,579)		(1,775)			(4,294)	(294,253)
Total comprehensive income	$	152,775		248,423			602,810	66,099
Total comprehensive income
(loss) attributable to non-
controlling interests of DFN	$	68,134		(2,894)			92,653	8,648
Total comprehensive income
attributable to shareholders of
DFN	$	84,641		251,317			510,157	57,451
		For	the three months				For the six months
		ended June 30,					ended June 30,
		2021		2020		2021		2020
The Group’s share of equity of
associates at January 1	$	2,293,870		2,018,488		2,364,486		2,233,147
Total comprehensive income
attributable to the Group		21,675		64,654			131,112	14,754
Capital surplus attributable to
the Group			-	4,483			-	5,373
Dividend received from
associates			-	-			(180,053)	(165,649)
The carrying amount of
investments in the associates
at June 30	$	2,315,545		2,087,625		2,315,545		2,087,625

(Continued)

39

QISDA CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

• 3) The summarized financial information of Alpha:

				June 30, 2020
Current assets			$	17,969,346
Non-current assets				6,471,114
Current liabilities				(11,173,145)
Non-current liabilities				(1,192,939)
Equity			$	12,074,376
Equity attributable to non-controlling interests of Alpha			$	2,986,360
Equity attributable to shareholders of Alpha			$	9,088,016
		For the three		For the six
	months ended			months ended
		June 30,		June 30,
		2020		2020
Net sales	$	7,725,035		12,709,155
Net income		277,056		139,122
Other comprehensive loss		(21,526)		(99,283)
Total comprehensive income	$	255,530		39,839
Total comprehensive income attributable to non-
controlling interests of Alpha	$	53,125		43,709
Total comprehensive income (loss) attributable to
shareholders of Alpha	$	202,405		(3,870)
		For the three		For the six
	months ended			months ended
		June 30,		June 30,
		2020		2020
The Group’s share of equity of associates at January 1$		2,318,201		2,564,115
Purchase of investments		81,784		86,462
Total comprehensive income (loss) attributable to
the Group		43,396		(8,380)
Capital surplus attributable to the Group		(15,678)		(159,629)
Dividend received from associates		(1,960)		(56,825)
The carrying amount of investments in the associates
at June 30	$	2,425,743		2,425,743

(Continued)

40

QISDA CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

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

			June 30,	December 31,	December 31,	December 31,	June 30,
			2021		2020		2020
The aggregate carrying amount of
associates that were not
individually material to the Group $			930,280		1,212,493		1,300,168
		For	the three months			For the six months
		ended June		30,		ended June 30,
		2021		2020		2021	2020
Attributable to the Group:
Net income	$		3,189	10,403		12,622	19,726
Other comprehensive loss		(14,218)		(12,827)		(19,827)	(21,269)
Total comprehensive loss	$	(11,029)		(2,424)		(7,205)	(1,543)

• (ii) Joint venture

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

		June 30,	December 31,	December 31,	December 31,	June 30,	June 30,
		2021		2020			2020
The aggregate carrying amount of joint
ventures that were not individually
material to the Group		$ 29,804			29,955		28,505
		For the three months			For the six		months
		ended June 30,			ended June 30,
		2021	2020		2021		2020
Attributable to the Group:
Net income (loss)	$	106	4,412			(55)	3,599
Other comprehensive loss		(195)	(470)			(96)	(770)
Total comprehensive income	$	(89)	3,942		(151)		2,829
(loss)

• (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.

(Continued)

41

QISDA CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(i) Business combination

• －

• (i) Acquisition of subsidiary by DFI Brainstorm Corporation (“Brainstorm”)

• 1) Consideration transferred

On May 1, 2021 (the acquisition date), DFI acquired 35.09% equity ownership of Brainstorm. According to the stock purchase agreement and Articles of Incorporation of Brainstorm, DFI obtained 55.29% of voting rights of Brainstorm and owned more than half of Brainstorm's total number of directors, resulting in DFI to obtain control over Brainstorm. Thereafter, Brainstorm has been included in the Group's consolidated entities.

The acquisition of Brainstorm is to implement its channel-first strategy and accelerate its development in the U.S. market.

• 2) Identifiable net assets acquired in a business combination

On May 1, 2021 (the acquisition date), the fair value of identifiable assets acquired and liabilities assumed from the acquisition was as follows:

Consideration transferred:
Cash		$	501,582
Add: Non-controlling interests (measured at non-controlling
interest’s proportionate share of the fair value of
Brainstorm’s identifiable net assets)			641,433
Less: identifiable net assets acquired at fair value:
Cash and cash equivalents	$	460,381
Notes and accounts receivable, net		191,888
Inventories		803,582
Prepayments and other current assets		4,613
Property, plant and equipment		7,026
Right-of-use assets		51,212
Intangible assets－trademarks		562,692
Intangible assets－computer software		129
Other non-current assets		4,573
Accounts payable		(784,344)
Other payables		(143,260)
Current income tax liabilities		(2,055)
Other current liabilities		(311)
Lease liabilities (including current and non-current)		(51,212)
Deferred income tax liabilities		(112,538)
Long-term debt		(4,187)	988,189
Goodwill		$	154,826

(Continued)

42

QISDA CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

The fair value of the abovementioned assets and liabilities was the provisional amount and will be finalized until the completion of valuation.

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

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

Goodwill arising from the acquisition of Brainstorm is due to the profitability, control premium over Brainstorm, the synergies of the business combination, future U.S. market development and value of workforce. None of the goodwill recognized is expected to be deductible for income tax purposes.

4) Pro forma information

From the acquisition date to June 30, 2021, Brainstorm had contributed the revenue of $1,107,809 and the net income of $70,053 to the Group. If this acquisition had occurred on January 1, 2021, the management estimates that consolidated revenue would have been $109,249,776, and consolidated income after income tax would have been $7,098,939.

• －

• (ii)Acquisition of subsidiaries by Simula Action Star Technology Co., Ltd. (“AST”)

1) Consideration transferred

On April 12, 2021 (the acquisition date), Simula invested in AST for a cash consideration of $983,857, wherein it obtained 59.35% ownership of AST. In addition, Simula owned more than half of AST's total number of directors, resulting in Simula to obtain control over AST. Thereafter, AST has been included in the Group's consolidated entities. The acquisition of AST is to enhance the capability of vertical integration and strengthen the Group's ability to penetrate into the smart connector solution market and serve the needs of customers in terms of smart enterprise, medical and automotive.

(Continued)

43

QISDA CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

2) Identifiable net assets acquired in a business combination

On April 12, 2021 (the acquisition date), the fair value of identifiable assets acquired and liabilities assumed from the acquisition was as follows:

Consideration transferred: Cash

Consideration transferred:
Cash			$	983,857
Add: Non-controlling interests (measured at non-controlling
interest’s proportionate share of fair value of AST’s
identifiable net assets)				622,503
Less: identifiable net assets acquired at fair value:
Cash and cash equivalents	$	263,113
Notes and accounts receivable, net		304,033
Other receivable		9,052
Inventories		446,515
Other current assets		20,390
Other financial assets－current		221,754
Property, plant and equipment		531,417
Right-of-use assets		488
Intangible assets－customer relationships		115,236
Intangible assets－computer software		1,324
Intangible assets－expertise		356,326
Other non-current assets		7,854
Short-term borrowings		(230,400)
Notes and accounts payable		(345,077)
Contract liabilities		(4,177)
Other payable		(18,067)
Other current liabilities		(27,598)
Current portion of long-term debt		(11,340)
Long-term debt		(108,400)
Deferred income tax liabilities		(702)
Lease liabilities		(474)
Other non-current liabilities		(2)		1,531,265
Goodwill			$	75,095

The fair value of the abovementioned assets and liabilities was the provisional amount and will be finalized until the completion of 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 AST 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.

• 4) Pro forma information

From the acquisition date to June 30, 2021, AST had contributed the revenue of $435,653 and the net income of $3,149 to the Group. If this acquisition had occurred on January 1, 2021, the management estimates that consolidated revenue would have been $107,244,353, and consolidated income after income tax would have been $7,000,757.

• －

• (iii)Acquisition of subsidiaries by Sysage STATINC and AdvancedTEK

• 1) Consideration transferred

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)

45

QISDA CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

• 2) Identifiable net assets acquired in a business combination

The fair value of identifiable assets acquired and liabilities assumed from the abovementioned subsidiaries' acquisition was as follows:

Consideration transferred:
Cash			$	70,023
Non-controlling interests (measured at non-controlling
interest’s proportionate share of fair value of identifiable
net assets)				119,701
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)		189,024
Goodwill			$	56,118

(Continued)

46

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 June 30, 2021, the subsidiaries acquired by Sysage had contributed the revenue of $120,563 and the net loss of $(3,657) to the Group. If this acquisition had occurred on January 1, 2021, the management estimates that consolidated revenue would have been $106,887,679, and consolidated income after income tax would have been $6,992,981.

• －

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

• 1) Consideration transferred

On June 19, 2020, the Company invested the amount of $254,000 and acquired the entire shareholdings of Golden Spirit Co., Ltd. (“ GSC” ), in which the Company obtained control over it. Thereafter, GSC and its subsidiaries 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)

47

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

(Continued)

48

QISDA CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

The Group continuously reviews the abovementioned items during the measurement period. The adjustments on the abovementioned intangible assets and goodwill on June 30, 2021 were as follows:

30, 2021 were as follows:
Decrease in other current assets	$	(8,900)
Increase in property, plant and equipment		4,009
Increase in intangible assets－trademarks		9,156
Increase in intangible assets－customer relationship		1,176
Increase in intangible assets－agency		2,843
Increase in deferred income tax liabilities		(1,657)
Increase in other current liabilities		(1,494)
Increase in goodwill	$	5,133

• 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, customer relationships and agency are amortized on a straight-line basis over the estimated future economic useful life of 10 years, 10.69 years and 6.93 years, respectively.

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

• 1) Consideration transferred

On April 1, 2020, the Company subscribed 30,000 thousand shares of Simula Technology Inc. (“Simula”) at a price of $600,000 through private offering and acquired 37.5% of its ownership. In addition, the 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)

49

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 fair value of identifiable assets acquired and liabilities assumed from the acquisition was 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)

50

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.

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

1) Consideration transferred

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)

51

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 fair value of identifiable assets acquired and liabilities assumed from the acquisition was as follows:

Consideration transferred: Cash

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)

52

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.

• (vii) 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, K2SH and Alpha for cash of $106,609.

From January to June 2020, the Group acquired an additional ownership of ACE, DIC, Topview and BDT for cash of $106,702.

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	six months	ended
			June 30,
		2021		2020
Capital surplus－arising from changes in ownership	$	6,422		-
interests in subsidiaries
Capital surplus－difference between consideration and
carrying amount arising from acquisition or disposal of
shares in subsidiaries		-		(15,641)
Retained earnings		(557,207)		-
	$	(550,785)		(15,641)

(Continued)

53

QISDA CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(viii) 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

2) Identifiable net assets of NEO TREND

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

There were no significant changes in the Group’ s subsidiaries that have material noncontrolling interest for the six months ended June 30, 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)

54

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 Reclassification to non-current assets held for sale Other reclassification and effect of exchange rate changes Balance at June 30, 2021 Balance at January 1, 2020 Additions Acquisition through business combination Disposals Reclassification to non-current assets held for sale Reclassification to investment property Other reclassification and effect of exchange rate changes Balance at June 30, 2020 Accumulated depreciation and impairment loss: Balance at January 1, 2021 Depreciation Acquisition through business combination Disposals Reclassification to non-current assets held for sale Other reclassification and effect of exchange rate changes Balance at June 30, 2021 Balance at January 1, 2020 Depreciation Acquisition through business combination Disposals Reclassification to non-current assets held for sale Reclassification to investment property Other reclassification and effect of exchange rate changes Balance at June 30, 2020	Land $ 6,437,888 - 130,083 - (184,587) (4,763) $ 6,378,621 $ 5,682,857 6,586 128,373 - (163,057) (9,763) (14,801) $ 5,630,195 $ - - - - - - $ - $ - - - - - - - $ -	Buildings 26,766,386 356,399 400,068 (14,944) (75,183) 672,486 28,105,212 21,306,465 147,968 294,760 (2,819) (307,511) (3,976) (281,145) 21,153,742 11,874,445 512,525 81,440 (11,250) (33,126) (75,302) 12,348,732 9,586,415 387,585 13,230 (2,517) (277,838) (709) (165,249) 9,540,917	Machinery 19,425,297 866,830 152,843 (578,172) (8,253) 73,621 19,932,166 15,914,940 427,938 265,205 (298,266) - - (40,820) 16,268,997 13,561,891 758,697 82,369 (452,590) (5,548) (83,965) 13,860,854 11,229,958 569,863 113,292 (227,116) - - (86,253) 11,599,744	Other equipment 5,844,304 1,303,821 59,008 (342,711) (13,677) (763,692) 6,087,053 4,615,020 602,661 409,678 (86,444) - - (289,520) 5,251,395 3,958,946 224,194 39,062 (255,245) (5,665) (14,036) 3,947,256 3,132,073 218,405 207,685 (84,737) (73,449) - (59,392) 3,340,585	Construction in progress 1,109,635 539,271 998 - - (542,669) 1,107,235 345,142 308,148 64,805 - - - (76,533) 641,562 - - - - - - - - - - - - - - -	Total 59,583,510 3,066,321 743,000 (935,827) (281,700) (565,017) 61,610,287 47,864,424 1,493,301 1,162,821 (387,529) (470,568) (13,739) (702,819) 48,945,891 29,395,282 1,495,416 202,871 (719,085) (44,339) (173,303) 30,156,842 23,948,446 1,175,853 334,207 (314,370) (351,287) (709) (310,894) 24,481,246

(Continued)

55

QISDA CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

Carrying amount: Balance at June 30, 2021 Balance at January 1, 2021 Balance at June 30, 2020	Land $ 6,378,621 $ 6,437,888 $ 5,630,195	Buildings 15,756,480 14,891,941 11,612,825	Machinery 6,071,312 5,863,406 4,669,253	Other equipment 2,139,797 1,885,358 1,910,810	Construction in progress 1,107,235 1,109,635 641,562	Total
						31,453,445
						30,188,228
						24,464,645

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.

(k) Right-of-use assets

Cost: Balance at January 1, 2021 Acquisition through business combination Additions Derecognition of subsidiaries Decrease Other reclassification and effect of exchange rate changes Balance at June 30, 2021 Balance at January 1, 2020 Additions Acquisition through business combination Reclassification to investment property Reclassification from other non-current assets Decrease Other reclassification and effect of exchange rate changes Balance at June 30, 2020 Accumulated depreciation: Balance at January 1, 2021 Depreciation Acquisition through business combination Derecognition of subsidiaries Decrease Other reclassification and effect of exchange rate changes Balance at June 30, 2021	Land $ 4,087,827 - - - - 11,401 $ 4,099,228 $ 2,285,678 - 58,269 - 568,791 - (53,761) $ 2,858,977 $ 814,397 51,241 - - - 10,556 $ 876,194	Buildings 2,719,463 81,979 110,526 (24,416) (107,620) (170,588) 2,609,344 2,973,814 83,174 63,313 (396,935) - (67,346) (48,578) 2,607,442 1,304,033 221,573 12,104 (3,607) (92,614) (107,847) 1,333,642	Transportation equipments 37,771 4,685 15,575 - (7,825) 13,634 63,840 36,861 4,931 2,879 - - (2,261) (6,509) 35,901 20,075 12,063 - - (7,813) 3,057 27,382	Total 6,845,061 86,664 126,101 (24,416) (115,445) (145,553) 6,772,412 5,296,353 88,105 124,461 (396,935) 568,791 (69,607) (108,848) 5,502,320 2,138,505 284,877 12,104 (3,607) (100,427) (94,234) 2,237,218

(Continued)

56

QISDA CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

Balance at January 1, 2020 Depreciation Acquisition through business combination Reclassification to investment property Decrease Effect of exchange rate changes Balance at June 30, 2020 Carrying amount: Balance at June 30, 2021 Balance at January 1, 2021 Balance at June 30, 2020	Land $ 723,385 27,406 12,636 - - (29,146) $ 734,281 $ 3,223,034 $ 3,273,430 $ 2,124,696	Buildings 1,050,396 182,187 26,560 (95,927) (67,346) (3,583) 1,092,287 1,275,702 1,415,430 1,515,155	Transportation equipments 20,036 5,339 960 - (2,261) (5,149) 18,925 36,458 17,696 16,976	Total 1,793,817 214,932 40,156 (95,927) (69,607) (37,878) 1,845,493 4,535,194 4,706,556 3,656,827

(l) Investment property

Carrying amount: Balance at June 30, 2021 Balance at January 1, 2021 Balance at June 30, 2020	Buildings $ 2,782,411 $ 2,978,080 $ 2,960,621	Land use rights 682,021 582,950 575,563	Total
			3,464,432
			3,561,030
			3,536,184

There were no significant additions, disposals, or recognition and reversal of impairment losses of investment property for the six months ended June 30, 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.

(Continued)

57

QISDA CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(m) Intangible assets

Costs: Balance at January 1, 2021 Addition Acquisition through business combination Disposal Reclassification and effect of exchange rate changes Balance at June 30, 2021 Balance at January 1, 2020 Addition Acquisition through business combination Disposal Reclassification and effect of exchange rate changes Balance at June 30, 2020 Accumulated amortization and impairment loss: Balance at January 1, 2021 Amortization Disposal Acquisition through business combination Reclassification and effect of exchange rate changes Balance at June 30, 2021 Balance at January 1, 2020 Amortization Acquisition through business combination Impairment loss Disposal Reclassification and effect of exchange rate changes Balance at June 30, 2020 Carrying amount: Balance at June 30, 2021 Balance at January 1, 2021 Balance at June 30, 2020	Goodwill $ 5,281,296 - 286,039 - 27,541 $ 5,594,876 $ 2,980,359 - 219,983 - (26,477) $ 3,173,865 $ 10,144 - - - - $ 10,144 $ 3,792 - - 6,585 - - $ 10,377 $ 5,584,732 $ 5,271,152 $ 3,163,488	Computer software 1,020,811 266,201 12,555 (10,694) (7,825) 1,281,048 597,622 61,576 15,036 (1,718) (2,260) 670,256 802,730 98,256 (10,694) 11,059 2,110 903,461 489,590 57,707 8,474 - (1,718) (1,249) 552,804 377,587 218,081 117,452	Patents 853,870 - 2,320 - (802) 855,388 73,732 - 314 - (740) 73,306 123,716 97,641 - 2 (614) 220,745 52,602 3,847 314 - - (479) 56,284 634,643 730,154 17,022	Trademarks 1,506,189 - 565,893 - 8,974 2,081,056 1,203,307 - - - (260) 1,203,047 457,862 81,097 - 1 (35) 538,925 307,805 61,592 - - - 35 369,432 1,542,131 1,048,327 833,615	Customer relationships 2,056,637 - 117,063 - (4,544) 2,169,156 1,370,023 - 397,527 - (914) 1,766,636 572,278 114,440 - - (2,211) 684,507 349,384 90,911 - - - 295 440,590 1,484,649 1,484,359 1,326,046	Others 646,099 27,670 384,432 (952) (14,468) 1,042,781 183,013 7,645 1,340 - (1,839) 190,159 279,277 55,683 (952) 234 (18,476) 315,766 135,772 15,062 105 - - 553 151,492 727,015 366,822 38,667	Total 11,364,902 293,871 1,368,302 (11,646 8,876
							13,024,305
							6,408,056 69,221 634,200 (1,718 (32,490
							7,077,269
							2,246,007 447,117 (11,646 11,296 (19,226
							2,673,548
							1,338,945 229,119 8,893 6,585 (1,718 (845
							1,580,979
							10,350,757
							9,118,895
							5,496,290

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 June 30, 2021, the Group assessed the achievement of expected revenue for the six months ended June 30, 2021, and there were no indications of impairment.

(Continued)

58

QISDA CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

On June 30, 2020, the Group assessed the achievement of expected revenue in the second quarter of 2020. Except for the CGU of PTSE and PTME, to which there were indications of impairment and impairment loss of $5,085 and $1,500, respectively, was recognized for the six months ended June 30, 2020, as a result of the impairment test, there were no indications of impairment of other CGUs.

(n) Short-term borrowings

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

June 30, 2021 Unsecured bank loans $ 23,554,191 Secured bank loans 220,924 Letters of credits - $ 23,775,115 Unused credit facilities $ 71,674,543 Interest rate 0.18%~4.25%	December 31, 2020 20,847,734 284,196 - 21,131,930 56,994,411 0.18%~4.2%	June 30, 2020
		18,906,420 600,095 127,420
		19,633,935
		38,675,884
		0.4%~4.6%

• (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

June 30, 2021 Unsecured bank loans $ 22,213,914 Secured bank loans 4,110,020 Less: current portion of long-term debt (602,492) Long-term debt $ 25,721,442 Unused credit facilities $ 15,722,084 Interest rate 0.73%~4.6% 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	June 30, 2020
		13,813,452 5,872,874 (640,220
		19,046,106
		13,303,098
		0.94%~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.

(Continued)

59

QISDA CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(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 June 30, 2021, the related loan amount was $2,599,287. The estimated fair value of the loan was $2,554,240, using the prevailing market interest rate of 1.05%~1.30%. The difference of $45,047 was regarded as government grant and was recognized as deferred income. For the six months ended June 30, 2021, the deferred income of $8,460 was transferred and recognized in other income.

(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	June 30, 2021 $ 600,000 (11,132) (131,000) $ 457,868 $ 47	December 31, 2020 600,000 (17,393) (56,100) 526,507 543

(Continued)

60

QISDA CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

As of June 30, 2021, the above convertible corporate bonds have been converted into 1,807 thousand shares of Interactive Digital’s common stock.

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)

61

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	June 30, 2021 $ 93,192 327,026 $ 420,218 $ 46,011 1,446,489 $ 1,492,500	December 31, 2020 86,737 368,303 455,040 91,779 1,473,817 1,565,596	June 30, 2020
			86,298 301,233
			387,531
			139,204 1,379,493
			1,518,697

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 June 30,	For the three months ended June 30,	For the three months ended June 30,		For the six months ended June 30,	For the six months ended June 30,
	2021		2021		2021 61,074 23,079 19,425	2020
	$ 31,604 $ 11,540 $ 9,526		20,858			42,193
			12,445			22,989
			9,739			19,944

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

Total cash outflow for leases	For the six months ended June 30,	For the six months ended June 30,
	2021 $ 356,754	2020
		344,645

(i) Real estate leases

The Group leases buildings for its office, store and factory. The leases for land use rights, which are usually prepaid rents, typically run for a period of 50 years. The leases for buildings typically run for a period of 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)

62

QISDA CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(r) Provisions

Balance at June 30, 2021 Current Non-current Balance at December 31, 2020 Current Non-current Balance at December 31, 2020 Current Non-current	Warranties $ 1,440,477 $ 777,531 $ 662,946 $ 1,496,424 $ 808,823 $ 687,601 $ 1,040,301 $ 428,938 $ 611,363	Restructuring - - - - - - 1,000 1,000 -	Total
			1,440,477
			777,531
			662,946
			1,496,424
			808,823
			687,601
			1,041,301
			429,938
			611,363

There was no significant change in provision for the six months ended June 30, 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 six months ended June 30, 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 the six months ended June 30, 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:

Operating cost Operating expenses	For the three months ended June 30, 2021 2020 $ 989 851 976 850 $ 1,965 1,701	For the six months ended June 30,	For the six months ended June 30,
	2021 $ 989 976 $ 1,965	2021 1,985 1,960 3,945	2020
			1,607 1,733
			3,340

(Continued)

63

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 June 30, 2021 2020 Operating cost 123,768 69,588 Operating expenses 122,154 69,641 $ 245,922 139,229 e taxes The components of income tax expense were as follows: For the three months ended June 30, 2021 2021 Income tax expense $ 906,750 614,487	For the three months ended June 30, 2021 2020 Operating cost 123,768 69,588 Operating expenses 122,154 69,641 $ 245,922 139,229 e taxes The components of income tax expense were as follows: For the three months ended June 30, 2021 2021 Income tax expense $ 906,750 614,487	For the three months ended June 30, 2021 2020 Operating cost 123,768 69,588 Operating expenses 122,154 69,641 $ 245,922 139,229 e taxes The components of income tax expense were as follows: For the three months ended June 30, 2021 2021 Income tax expense $ 906,750 614,487	For the three months ended June 30, 2021 2020 Operating cost 123,768 69,588 Operating expenses 122,154 69,641 $ 245,922 139,229 e taxes The components of income tax expense were as follows: For the three months ended June 30, 2021 2021 Income tax expense $ 906,750 614,487		For the six months ended June 30, 2021 2020 247,191 130,215 244,178 140,439 491,369 270,654 For the six months ended June 30, 2021 2020 1,430,700 861,752	For the six months ended June 30, 2021 2020 247,191 130,215 244,178 140,439 491,369 270,654 For the six months ended June 30, 2021 2020 1,430,700 861,752
	2021		2021			2020
	$ 906,750		614,487			861,752

(u) Income taxes

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

• (ii) The components of income tax recognized in other comprehensive income were as follows:

Items that will not be reclassified subsequently to profit or loss: Unrealized gains (losses) from investments in equity instruments measured at fair value through other comprehensive income	For the three months ended June 30 2021 2021 $ 100,794 -	For the six months ended June 30	For the six months ended June 30
		2021 100,794	2020
			-

(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 June 30, 2021, December 31 and June 30, 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 June 30, 2021, December 31 and June 30, 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)

64

QISDA CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(ii) Capital surplus

June 30, 2021 Changes in equity of associates accounted for using the equity method $ - Changes in ownership interests in subsidiaries 1,788,311 Difference between consideration and carrying amount arising from acquisition or disposal of shares in subsidiaries - $ 1,788,311	December 31, 2020 97,612 1,781,889 - 1,879,501	June 30, 2020
		72,359 1,829,317 153,270
		2,054,946

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)

65

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 earnings, via cash dividends, has been approved by the Company's Board of Directors on May 11, 2021. After meeting the statutory voting threshold via electronic voting platform, the other remaining appropriation items of 2020 earnings has been approved by the Company’ s shareholders on June 21, 2021. The Company expects to hold the annual shareholders’ meeting on August 27, 2021. The cash dividends of appropriation of 2019 earnings were approved by the Company's Board of Directors on May 7, 2020. Other appropriation of 2019 earnings were approved by the shareholders during their meeting on June 19, 2020. The resolved appropriation was as follows:

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

(Continued)

66

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 June 30

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 June 30 Remeasurement of defined benefit plans: Balance at January 1 Share of other comprehensive loss of associates Balance at June 30

• 3) Remeasurement of defined benefit plans:

(Continued)

67

QISDA CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

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

For the six months ended June 30, 2021 2020 Effects of retrospective application $ 22,937,719 14,091,635 Equity attributable to non-controlling interests Net income 1,079,614 423,200 Difference between consideration and carrying amount arising from acquisition or disposal of shares in subsidiaries (937,258) (91,061) Stock option compensation cost of subsidiary 3,903 4,907 Changes in ownership interest in subsidiaries (6,422) - Foreign currency translation differences (59,843) (98,687) Capital surplus—Changes in equity of associates and joint ventures accounted for using the equity method 399 4,619 Remeasurement of the defined benefit plans—Changes in equity of associates accounted for using the equity method (99) - Unrealized gain (loss) from financial assets measured at fair value through other comprehensive income 1,146 (7,560) Distribution of cash dividend by subsidiaries (1,071,175) (953,847) Capital injection from non-controlling interests 64,874 12,028 Changes in non-controlling interests 1,221,141 957,771 Balance at June 30 $ 23,233,999 14,343,005 -based payment was no significant change in share-based payment for the six months ended June 30, 2021 and Please refer to note 6(w) of the consolidated financial statements for the year ended December 20 for other related information. ngs per share (“EPS”) Basic earnings per share For the three months ended June 30, For the six months ended June 30, 2021 2021 2021 2020 Profit attributable to shareholders of the Company $ 3,805,302 948,649 5,916,934 1,181,170 Weighted-average number of ordinary shares outstanding (in thousands) 1,966,782 1,966,782 1,966,782 1,966,782 Basic earnings per share (in New Taiwan dollars) $ 1.93 0.48 3.01 0.60	For the six months ended June 30, 2021 2020 Effects of retrospective application $ 22,937,719 14,091,635 Equity attributable to non-controlling interests Net income 1,079,614 423,200 Difference between consideration and carrying amount arising from acquisition or disposal of shares in subsidiaries (937,258) (91,061) Stock option compensation cost of subsidiary 3,903 4,907 Changes in ownership interest in subsidiaries (6,422) - Foreign currency translation differences (59,843) (98,687) Capital surplus—Changes in equity of associates and joint ventures accounted for using the equity method 399 4,619 Remeasurement of the defined benefit plans—Changes in equity of associates accounted for using the equity method (99) - Unrealized gain (loss) from financial assets measured at fair value through other comprehensive income 1,146 (7,560) Distribution of cash dividend by subsidiaries (1,071,175) (953,847) Capital injection from non-controlling interests 64,874 12,028 Changes in non-controlling interests 1,221,141 957,771 Balance at June 30 $ 23,233,999 14,343,005 -based payment was no significant change in share-based payment for the six months ended June 30, 2021 and Please refer to note 6(w) of the consolidated financial statements for the year ended December 20 for other related information. ngs per share (“EPS”) Basic earnings per share For the three months ended June 30, For the six months ended June 30, 2021 2021 2021 2020 Profit attributable to shareholders of the Company $ 3,805,302 948,649 5,916,934 1,181,170 Weighted-average number of ordinary shares outstanding (in thousands) 1,966,782 1,966,782 1,966,782 1,966,782 Basic earnings per share (in New Taiwan dollars) $ 1.93 0.48 3.01 0.60	For the six months ended June 30, 2021 2020 Effects of retrospective application $ 22,937,719 14,091,635 Equity attributable to non-controlling interests Net income 1,079,614 423,200 Difference between consideration and carrying amount arising from acquisition or disposal of shares in subsidiaries (937,258) (91,061) Stock option compensation cost of subsidiary 3,903 4,907 Changes in ownership interest in subsidiaries (6,422) - Foreign currency translation differences (59,843) (98,687) Capital surplus—Changes in equity of associates and joint ventures accounted for using the equity method 399 4,619 Remeasurement of the defined benefit plans—Changes in equity of associates accounted for using the equity method (99) - Unrealized gain (loss) from financial assets measured at fair value through other comprehensive income 1,146 (7,560) Distribution of cash dividend by subsidiaries (1,071,175) (953,847) Capital injection from non-controlling interests 64,874 12,028 Changes in non-controlling interests 1,221,141 957,771 Balance at June 30 $ 23,233,999 14,343,005 -based payment was no significant change in share-based payment for the six months ended June 30, 2021 and Please refer to note 6(w) of the consolidated financial statements for the year ended December 20 for other related information. ngs per share (“EPS”) Basic earnings per share For the three months ended June 30, For the six months ended June 30, 2021 2021 2021 2020 Profit attributable to shareholders of the Company $ 3,805,302 948,649 5,916,934 1,181,170 Weighted-average number of ordinary shares outstanding (in thousands) 1,966,782 1,966,782 1,966,782 1,966,782 Basic earnings per share (in New Taiwan dollars) $ 1.93 0.48 3.01 0.60	For the six months ended June 30, 2021 2020 Effects of retrospective application $ 22,937,719 14,091,635 Equity attributable to non-controlling interests Net income 1,079,614 423,200 Difference between consideration and carrying amount arising from acquisition or disposal of shares in subsidiaries (937,258) (91,061) Stock option compensation cost of subsidiary 3,903 4,907 Changes in ownership interest in subsidiaries (6,422) - Foreign currency translation differences (59,843) (98,687) Capital surplus—Changes in equity of associates and joint ventures accounted for using the equity method 399 4,619 Remeasurement of the defined benefit plans—Changes in equity of associates accounted for using the equity method (99) - Unrealized gain (loss) from financial assets measured at fair value through other comprehensive income 1,146 (7,560) Distribution of cash dividend by subsidiaries (1,071,175) (953,847) Capital injection from non-controlling interests 64,874 12,028 Changes in non-controlling interests 1,221,141 957,771 Balance at June 30 $ 23,233,999 14,343,005 -based payment was no significant change in share-based payment for the six months ended June 30, 2021 and Please refer to note 6(w) of the consolidated financial statements for the year ended December 20 for other related information. ngs per share (“EPS”) Basic earnings per share For the three months ended June 30, For the six months ended June 30, 2021 2021 2021 2020 Profit attributable to shareholders of the Company $ 3,805,302 948,649 5,916,934 1,181,170 Weighted-average number of ordinary shares outstanding (in thousands) 1,966,782 1,966,782 1,966,782 1,966,782 Basic earnings per share (in New Taiwan dollars) $ 1.93 0.48 3.01 0.60	For the six months ended June 30, 2021 2020 Effects of retrospective application $ 22,937,719 14,091,635 Equity attributable to non-controlling interests Net income 1,079,614 423,200 Difference between consideration and carrying amount arising from acquisition or disposal of shares in subsidiaries (937,258) (91,061) Stock option compensation cost of subsidiary 3,903 4,907 Changes in ownership interest in subsidiaries (6,422) - Foreign currency translation differences (59,843) (98,687) Capital surplus—Changes in equity of associates and joint ventures accounted for using the equity method 399 4,619 Remeasurement of the defined benefit plans—Changes in equity of associates accounted for using the equity method (99) - Unrealized gain (loss) from financial assets measured at fair value through other comprehensive income 1,146 (7,560) Distribution of cash dividend by subsidiaries (1,071,175) (953,847) Capital injection from non-controlling interests 64,874 12,028 Changes in non-controlling interests 1,221,141 957,771 Balance at June 30 $ 23,233,999 14,343,005 -based payment was no significant change in share-based payment for the six months ended June 30, 2021 and Please refer to note 6(w) of the consolidated financial statements for the year ended December 20 for other related information. ngs per share (“EPS”) Basic earnings per share For the three months ended June 30, For the six months ended June 30, 2021 2021 2021 2020 Profit attributable to shareholders of the Company $ 3,805,302 948,649 5,916,934 1,181,170 Weighted-average number of ordinary shares outstanding (in thousands) 1,966,782 1,966,782 1,966,782 1,966,782 Basic earnings per share (in New Taiwan dollars) $ 1.93 0.48 3.01 0.60	For the six months ended June 30, 2021 2020 Effects of retrospective application $ 22,937,719 14,091,635 Equity attributable to non-controlling interests Net income 1,079,614 423,200 Difference between consideration and carrying amount arising from acquisition or disposal of shares in subsidiaries (937,258) (91,061) Stock option compensation cost of subsidiary 3,903 4,907 Changes in ownership interest in subsidiaries (6,422) - Foreign currency translation differences (59,843) (98,687) Capital surplus—Changes in equity of associates and joint ventures accounted for using the equity method 399 4,619 Remeasurement of the defined benefit plans—Changes in equity of associates accounted for using the equity method (99) - Unrealized gain (loss) from financial assets measured at fair value through other comprehensive income 1,146 (7,560) Distribution of cash dividend by subsidiaries (1,071,175) (953,847) Capital injection from non-controlling interests 64,874 12,028 Changes in non-controlling interests 1,221,141 957,771 Balance at June 30 $ 23,233,999 14,343,005 -based payment was no significant change in share-based payment for the six months ended June 30, 2021 and Please refer to note 6(w) of the consolidated financial statements for the year ended December 20 for other related information. ngs per share (“EPS”) Basic earnings per share For the three months ended June 30, For the six months ended June 30, 2021 2021 2021 2020 Profit attributable to shareholders of the Company $ 3,805,302 948,649 5,916,934 1,181,170 Weighted-average number of ordinary shares outstanding (in thousands) 1,966,782 1,966,782 1,966,782 1,966,782 Basic earnings per share (in New Taiwan dollars) $ 1.93 0.48 3.01 0.60	For the six months ended June 30, 2021 2020 Effects of retrospective application $ 22,937,719 14,091,635 Equity attributable to non-controlling interests Net income 1,079,614 423,200 Difference between consideration and carrying amount arising from acquisition or disposal of shares in subsidiaries (937,258) (91,061) Stock option compensation cost of subsidiary 3,903 4,907 Changes in ownership interest in subsidiaries (6,422) - Foreign currency translation differences (59,843) (98,687) Capital surplus—Changes in equity of associates and joint ventures accounted for using the equity method 399 4,619 Remeasurement of the defined benefit plans—Changes in equity of associates accounted for using the equity method (99) - Unrealized gain (loss) from financial assets measured at fair value through other comprehensive income 1,146 (7,560) Distribution of cash dividend by subsidiaries (1,071,175) (953,847) Capital injection from non-controlling interests 64,874 12,028 Changes in non-controlling interests 1,221,141 957,771 Balance at June 30 $ 23,233,999 14,343,005 -based payment was no significant change in share-based payment for the six months ended June 30, 2021 and Please refer to note 6(w) of the consolidated financial statements for the year ended December 20 for other related information. ngs per share (“EPS”) Basic earnings per share For the three months ended June 30, For the six months ended June 30, 2021 2021 2021 2020 Profit attributable to shareholders of the Company $ 3,805,302 948,649 5,916,934 1,181,170 Weighted-average number of ordinary shares outstanding (in thousands) 1,966,782 1,966,782 1,966,782 1,966,782 Basic earnings per share (in New Taiwan dollars) $ 1.93 0.48 3.01 0.60
	2021		2021		2021 5,916,934 1,966,782 3.01	2020
			948,649			1,181,170
			1,966,782			1,966,782
			0.48			0.60

(w) Share-based payment

There was no significant change in share-based payment for the six months ended June 30, 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

(Continued)

68

QISDA CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(ii) Diluted earnings per share

For the three months ended June 30, 2021 2020 Profit attributable to shareholders of the Company $ 3,805,302 948,649 Weighted-average number of ordinary shares outstanding (in thousands) 1,966,782 1,966,782 Effect of dilutive potential common stock: Remuneration to employee 22,229 9,000 Weighted-average number of ordinary shares outstanding (including effect of dilutive potential common stock) 1,989,011 1,988,071 Diluted earnings per share (in New Taiwan dollars) $ 1.91 0.48

For the six months ended June 30,

2021 2020 5,916,934 1,181,170 1,966,782 1,966,782 28,548 19,332 1,995,330 1,986,114 2.97 0.59

(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 June 30,	three months ended June 30,	three months ended June 30,	three months ended June 30,	2021	2021
	DMS $ 8,464,353 7,987,718 10,084,179 734,437 $ 27,270,687 $ 27,145,399 - 125,288 $ 27,270,687	Brand 8,078,917 2,862,369 3,290,416 202,251 14,433,953 14,127,932 - 306,021 14,433,953		Material 4,258,645 9,500 7,735 4,094		Networks 1,708,124 451,847 5,395,059 -		Medical 2,444,231 - - -		Total 24,954,270 11,311,434 18,777,389 940,782
				4,279,974		7,555,030		2,444,231		55,983,875
				4,279,974 - - 4,279,974		7,486,920 - 68,110 7,555,030		- 2,444,231 - 2,444,231		53,040,225 2,444,231 499,419
										55,983,875

(Continued)

69

QISDA CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

Primary geographical markets: Asia Europe America Others Major products/services lines: Electronic products Medical services Others Primary geographical markets: Asia Europe America Others Major products/services lines: Electronic products Medical services Others Primary geographical markets: Asia Europe America Others Major products/services lines: Electronic products Medical services Others		DMS $ 14,133,278 2,337,255 8,502,616 298,725 $ 25,271,874 $ 25,101,616 - 170,258 $ 25,271,874	DMS $ 14,133,278 2,337,255 8,502,616 298,725 $ 25,271,874 $ 25,101,616 - 170,258 $ 25,271,874	DMS $ 14,133,278 2,337,255 8,502,616 298,725 $ 25,271,874 $ 25,101,616 - 170,258 $ 25,271,874	For the three	months ended June 30, 2020	months ended June 30, 2020
					Brand Material 8,528,022 3,702,641 2,321,440 4,057 1,705,693 7,408 274,776 3,746 12,829,931 3,717,852 12,467,930 3,700,816 - - 362,001 17,036 12,829,931 3,717,852 For the six months ended June		Medical 1,853,115 - - - 1,853,115 - 1,853,115 - 1,853,115 30, 2021		Total
									28,217,056 4,662,752 10,215,717 577,247
									43,672,772
									41,270,362 1,853,115 549,295
									43,672,772
			DMS 15,659,524 15,969,324 18,244,122 1,313,055 51,186,025 50,841,062 - 344,963 51,186,025	Brand Material Networks Medical 16,525,402 8,319,190 3,005,754 4,561,036 5,968,544 15,072 1,728,706 - 5,166,195 13,080 9,830,919 - 379,158 5,537 182,938 - 28,039,299 8,352,879 14,748,317 4,561,036 27,422,078 8,352,879 14,596,193 - - - - 4,561,036 617,221 - 152,124 - 28,039,299 8,352,879 14,748,317 4,561,036 For the six months ended June 30, 2020					Total 48,070,906 23,681,646 33,254,316 1,880,688
	$ $ $ $
									106,887,556
									101,212,212 4,561,036 1,114,308
									106,887,556
			DMS		Brand 15,972,518 5,185,421 3,469,140 677,644 25,304,723 24,648,283 - 656,440 25,304,723	Material 7,120,552 10,440 22,441 6,503 7,159,936 7,125,676 - 34,260 7,159,936	Medical 3,230,600 - - - 3,230,600 - 3,230,600 - 3,230,600		Total
									52,525,224 9,993,141 19,159,150 1,195,423
									82,872,938
									78,489,344 3,230,600 1,152,994
									82,872,938

(Continued)

70

QISDA CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(ii) Contract balances

Notes and accounts receivable (including related parties) Less: loss allowance Contract liabilities	June 30, 2021 $ 33,340,962 (300,422) $ 33,040,540 $ 2,283,373	December 31, 2020 36,788,992 (287,066) 36,501,926 1,862,107	June 30, 2020 28,219,206 (343,445) 27,875,761 1,315,273

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

The amount of revenue recognized for the six months ended June 30, 2021 and 2020 that were included in the contract liability balance at January 1, 2021 and 2020, were $1,211,460 and $1,064,903, 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.

For the three months and six months ended June 30, 2021 and 2020, the Company estimated its remuneration to employees amounting to $448,059, $129,205, $684,656 and $158,849, respectively, and the remuneration to directors amounting to $33,604, $9,691, $51,349 and $11,914, 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
Interest income from bank deposits	For the three months ended June 30,			For the six months ended June 30,
	2021 $ 70,472	2020		2021 139,766	2020
		77,379			161,408

(Continued)

71

QISDA CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(ii) Other income

Government grants income Dividend income	For the three months ended June 30,	For the three months ended June 30,		For the six months ended June 30,	For the six months ended June 30,
	2021 $ 19,796 7,662 $ 27,458	2020		2021 39,780 15,861 55,641	2020
		17,670 7,643			50,210 7,643
		25,313			57,853

－ (iii) 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 (losses) on financial instruments at fair value through profit or loss Impairment loss on investments accounted for using equity method Gain on disposal of non-current assets/liabilities held for sale (note 6(g)) Impairment losses on non-financial assets (note 6(m)) Gain on reversal of other payables Others	For the three months ended June 30,	For the three months ended June 30,		For the six months ended June 30, 2021 2020 (32,877) (1,568) 2,809,008 1,931 (17,480) (176,283) 143,863 178,782 (6,632) - 449,570 - - (6,585) - 459,493 197,065 173,902 3,542,517 629,672
	2021 $ (30,224) 2,423,691 39,223 22,979 (6,632) 365,338 - - 119,824 $ 2,934,199	2020		2021 (32,877) 2,809,008 (17,480) 143,863 (6,632) 449,570 - - 197,065 3,542,517

(iv) Finance costs

Interest expense of bank loans Interest expense on lease liabilities	For the three months ended June 30,	For the three months ended June 30,		For the six months ended June 30,	For the six months ended June 30,
	2021 $ 161,073 9,526 $ 170,599	2020		2021 316,120 19,425 335,545	2020
		191,054 9,739			402,940 19,944
		200,793			422,884

(Continued)

72

QISDA CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(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 June 30, 2021, December 31 and June 30, 2020, the Group had unused credit facilities of $87,396,627, $76,207,823 and $51,978,982, respectively.

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

June 30, 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 $ 23,826,245 185,556 2,477,916 27,675,207 469,000 40,175,495 16,531,149 303,764 $ 111,644,332 $ 10,537,489 (10,533,744) 8,040,253 (8,036,991) $ 7,007	Within 6 months 22,555,007 2,395 265,905 442,981 469,000 40,175,495 16,531,149 - 80,441,932 10,537,489 (10,533,744) 8,040,253 (8,036,991) 7,007	6-12 months 1,271,238 11,666 272,011 526,482 - - - - 2,081,397 - - - - -	1-2 years - 13,713 437,313 6,318,191 - - - - 6,769,217 - - - - -	2-5 years - 157,782 915,448 19,610,891 - - - 303,764 20,987,885 - - - - -	More than 5 years - - 587,239 776,662 - - - -
						1,363,901
						- - - -
						-

(Continued)

73

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 June 30, 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 $ 19,680,885 92,892 2,137,174 20,762,739 29,802,233 11,059,372 1,535,573 $ 85,070,868 9,339,042 (9,355,292) 4,919,936 (4,925,370) $ (21,684)	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 18,997,823 1,806 213,408 316,244 29,802,233 11,059,372 - 60,390,886 9,339,042 (9,355,292) 4,919,936 (4,925,370) (21,684)	6-12 months 1,023,297 2,395 233,250 580,142 - - - - 1,839,084 - - - - - 683,062 1,423 218,195 654,250 - - - 1,556,930 - - - - -	1-2 years - 2,096 372,429 5,633,250 - - - - 6,007,775 - - - - - - 13,312 361,369 2,532,299 - - - 2,906,980 - - - - -	2-5 years - 76,027 738,413 16,550,607 - - - 1,621,811 18,986,858 - - - - - - 76,351 935,019 16,225,826 - - 1,535,573 18,772,769 - - - - -	More than 5 years - - 508,931 865,975 - - - -
						1,374,906
						- - - -
						-
						- - 409,183 1,034,120 - - -
						1,443,303
						- - - -
						-

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

(Continued)

74

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):

June 30, 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) $ 1,406,620 79,029 1,994,200 3,254,845 56,131 1,664,473 23,491 1,637,574 6,739,858	Exchange rate 27.8680 33.3020 4.3073 0.2522 4.3073 27.8680 33.3020 4.3073 0.2522	TWD (in thousands) 39,199,686 2,631,824 8,589,618 820,872 241,775 46,385,534 782,297 7,053,522 1,699,792	Change in magnitude Effect on profit or loss (in thousands) % 1 391,997 % 1 26,318 % 1 85,896 % 1 8,209 - - % 1 463,855 % 1 7,823 % 1 70,535 % 1 16,998

(Continued)

75

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 28.3500 34.9560 4.3216 0.2749 4.3216 28.3500 34.9560 4.3216 0.2749	TWD (in thousands) 44,046,176 2,884,884 6,919,858 854,748 248,483 49,611,791 1,461,021 6,980,564 2,040,955 June 30, 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) $ 1,325,785 76,948 1,416,193 3,372,625 85,735 1,309,975 37,404 1,397,312 5,713,654	Exchange rate 29.6600 33.3680 4.1893 0.2755 4.1893 29.6600 33.3680 4.1893 0.2755	TWD (in thousands) 39,322,783 2,567,601 5,932,857 929,158 359,170 38,853,859 1,248,097 5,853,759 1,574,112	Change in magnitude Effect on profit or loss (in thousands) % 1 393,228 % 1 25,676 % 1 59,329 % 1 9,292 - - % 1 388,539 % 1 12,481 % 1 58,538 % 1 15,741

(Continued)

76

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 and six months ended June 30, 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	June 30, 2021 $ 459,417 17,571,222 21,234,240 34,712,413 7,357,150 63,303,803 $ 81,334,442	December 31, 2020 562,774 1,477,680 22,540,418 37,480,213 3,672,698 63,693,329 65,733,783	June 30, 2020
			355,560
			1,411,484
			15,422,725 29,199,040 5,902,542
			50,524,307
			52,291,351

(Continued)

77

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	June 30, 2021 $ 70,061 104,529 174,590 23,775,115 56,706,644 1,912,718 26,323,934 457,868 303,764 109,480,043 $ 109,654,633	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	June 30, 2020
			77,012 92,892
			169,904
			19,633,935 40,861,605 1,906,228 19,686,326 - 1,535,573
			83,623,667
			83,793,571

• (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)

78

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		June 30, 2021	June 30, 2021	Total 51,485 11,569 28,969 64,191 47 287,119 10,504 5,533 459,417 15,341,761 1,750,024 479,437 17,571,222 18,030,639 (55,230) (14,831) (104,529) (174,590)
		Fair Value
	Level 1 $ - - 28,969 64,191 - - - - 93,160 15,341,761 - - 15,341,761 $ 15,434,921 $ - - - $ -	Level 2 51,485 11,569 - - 47 - - - 63,101 - 1,750,024 - 1,750,024 1,813,125 (55,230) (14,831) - (70,061)	Level 3 - - - - - 287,119 10,504 5,533 303,156 - - 479,437 479,437 782,593 - - (104,529) (104,529)

(Continued)

79

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)

80

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		June 30, 2020	June 30, 2020	Total 80,097 18,599 231,177 9,650 10,504 5,533 355,560 353,953 553,334 504,197 1,411,484 1,767,044 (63,847) (13,165) (92,892) (169,904)
		Fair Value
	Level 1 $ - - 231,177 - - - 231,177 353,953 - - 353,953 $ 585,130 $ - - - $ -	Level 2 80,097 18,599 - - - - 98,696 - 553,334 - 553,334 652,030 (63,847) (13,165) (12,374) (89,386)	Level 3 - - - 9,650 10,504 5,533 25,687 - - 504,197 504,197 529,884 - - (80,518) (80,518)

• 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)

81

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 the 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 six months ended June 30, 2021 and 2020.

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

Financial assets at fair value through profit or loss:

Balance at January 1 Additions Disposal Recognized in profit or loss Reclassification to investments accounted for using equity method Balance at June 30	For the three months ended June 30, 2021 2020 $ 200,513 130,446 100,000 - - (627) 2,643 5,096 - (109,228) $ 303,156 25,687	For the six months ended June 30, 2021 2020 173,731 120,399 100,000 - - (627) 29,425 15,143 - (109,228) 303,156 25,687
	2021 $ 200,513 100,000 - 2,643 - $ 303,156

(Continued)

82

QISDA CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

Financial assets at fair value through other comprehensive income:

For the three months ended June 30, 2021 2020 Balance at January 1 $ 488,243 456,452 Acquisition through business combination - 7,840 Additions 35,287 1,500 Proceeds from capital reduction - (6,667) Recognized in other comprehensive income (44,093) 45,072 Balance at June 30 $ 479,437 504,197	For the six months ended June 30, 2021 2020 420,505 344,743 - 7,840 69,187 61,500 - (6,667) (10,255) 96,781 479,437 504,197

Financial liabilities at fair value through profit or loss:

Balance at January 1 Recognized in profit or loss Balance at June 30	For the three months ended June 30, 2021 2020 $ 104,415 87,227 114 (6,709) $ 104,529 80,518	For the six months ended June 30, 2021 2020 80,518 87,227 24,011 (6,709) 104,529 80,518
	2021 $ 104,415 114 $ 104,529

－ 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 June 30, 2021 and 2020 were as follows:

Total gains or losses: Recognized in profit or loss (included in other gains and losses－net) Recognized in other comprehensive income (included in “unrealized gains (losses) from investments in equity instruments measured at fair value through other comprehensive income”)	For the three months ended June 30, 2021 2020 $ 2,529 (1,613) (44,093) 45,072	For the six months ended June 30, 2021 2020 5,414 8,434 (10,255) 96,781
	2021 $ 2,529 (44,093)

(Continued)

83

QISDA CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

• (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.

• (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 six months ended June 30, 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 2,408,708 3,342,875 - (276,255) (1,318,047) 4,157,281 Cash flows (471,048) 2,449,525 (282,508) (70,659) 1,625,310	Non-cash changes	Non-cash changes	Effect of foreign exchange rate (1,923) (46,203) (68,639) (15,018) - (131,783) Effect of foreign exchange rate (5,744) (67,042) - - (72,786)	June 30, 2021
			Acquisition through business combination Additions 236,400 - 123,927 - - - 57,254 126,101 - - 417,581 126,101 Non-cash changes Acquisition through business combination Additions 208,657 - 229,033 - 87,524 88,105 - - 525,214 88,105
						23,775,115 26,323,934 457,868 1,912,718 303,764
						52,773,399
						June 30, 2020 19,633,935 19,686,326 1,906,228 1,535,573
				Additions - - 88,105 - 88,105
						42,762,062

(Continued)

84

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 (“TDX”) 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”)

Relationship with the Group

Prior to May 12, 2021, AU was an associate of the Group. However, starting May 12, 2021, AU was no longer an associate of the Group. Since January 2021, AU accounted the investments in the Group using the equity method as AU is one of the directors of the Company.

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

(Continued)

85

QISDA CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

Name of related party Relationship with the Group Huaian Darfon Electronics Co., Ltd. (“DFH”) DFN's subsidiaries Darfon Electronics (Chongqing) Co., Ltd. (“DFQ”) DFN's subsidiaries Darfon Precisions (Suzhou) Co., Ltd. (“DPS”) DFN's subsidiaries Dragon Photonics Inc. (“Dragon”) Visco Vision's subsidiaries Visco Technology Sdn. Bhd. (“VVM”) Visco Vision's subsidiaries Visco Med Sdn. Bhd. (“VMM”) Visco Vision's subsidiaries Suzhou Trident Original Medical Technology (Jiangsu) Co., TDX's subsidiaries Ltd. BenQ Foundation Substantive related party

Substantive related party

• (b) Significant related-party transactions

• (i) Revenue

Associates: AU AUSZ Other associates Joint ventures The entity who has significant influence over the Group: AU AUSZ Other		For the three months ended June 30,	For the three months ended June 30,		For the six months ended June 30,
	2021 $ 821,057 252,606 244,254 1,317,917 1,914 1,660,371 503,476 136,067 2,299,914 $ 3,619,745		2020		2021 2020 3,169,024 4,263,297 1,064,012 1,655,884 659,888 569,884 4,892,924 6,489,065 3,035 956 1,660,371 - 503,476 - 136,067 - 2,299,914 - 7,195,873 6,490,021
			2,234,929 899,747 313,390 3,448,066 743 - - - - 3,448,809

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.

(Continued)

86

QISDA CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(ii) Purchases

Associates: AU Other associates Joint ventures The entity who has significant influence over the Group: AU		For the three months ended June 30,		For the six months ended June 30,
	2021 2020 $ 1,148,485 3,178,059 128,742 183,660 1,277,227 3,361,719 16,283 4,081 2,144,273 - $ 3,437,783 3,365,800			2021 2020 4,085,451 5,117,904 331,126 285,517 4,416,577 5,403,421 30,604 18,402 2,144,273 - 6,591,454 5,421,823

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) Property transactions

In June 2021, the Group disposed its land and building located at Penang, Malaysia to its associate (VVM) at a total contract price of MYR92,000 thousand, wherein the net proceeds of disposal of property amounted to $561,173. As of June 30, 2021, the outstanding receivables was $475,931, of which, $43,266 was recorded under other receivables as the attorney collected 7% of the total contract price on behalf of the Group, while $432,665 (representing 70% of total contract price) was recorded under other receivables from related parties. The gain on disposal of the aforementioned property was $365,338.

(iv) 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 and six months ended June 30, 2021 and 2020, the related interest expense on lease liabilities amounted to $693, $1,112, $1,493 and $2,328, respectively. As of June 30, 2021, December 31 and June 30, 2020, the balance of the lease liabilities amounted to $139,203, $178,516, and $225,502, respectively. Please refer to the note 6(q).

(Continued)

87

QISDA CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

The Group leased its plant and office to associates. For the three months and six months ended June 30, 2021 and 2020, the rental income were as follows:

Associates		For the three months ended June 30,		For the six months ended June 30,
		2021 2020 $ 6,493 6,874		2021 2020 13,017 13,982

(v) Donation

For the three months and six months ended June 30, 2021 and 2020 the Group made a donation to substantive related party (BenQ Foundation) amounting to $8,500, $9,200, $8,500 and $9,200$, respectively.

(vi) Receivables

The receivables from related parties due to the abovementioned sales, property transactions, 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 June 30, 2021 Accounts receivable The entity who has significant influence over the Group: AU $ 1,868,382 AUSZ 849,129 Other 136,865 2,854,376 Joint ventures 3,693 Associates: AU - AUSZ - Other associates 193,870 193,870 $ 3,051,939 Other receivables Associates: NSHD $ 288,591 VVM 434,003 Other associates 14,038 736,632 Other associates 182 $ 736,814 Other receivables (dividend) Associates: DFN 180,053 Other associates 19,173 $ 199,226	December 31, 2020 - - - - 2,719 2,089,736 942,534 245,380 3,277,650 3,280,369 287,690 - 14,709 302,399 - 302,399 - - -	June 30, 2020
		- - -
		-
		3,267
		1,356,805 848,123 157,336
		2,362,264
		2,365,531
		285,007 - 9,290
		294,297
		-
		294,297
		165,649 93,137
		258,786

(Continued)

88

QISDA CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(vii) 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 June 30, 2021 Accounts payable The entity who has significant influence over the Group: AU $ 1,753,506 Joint ventures 2,033 Associates: AU - Other associates 144,297 $ 1,899,836 Other payables (dividend) AU $ 502,846 Other associates 131,873 $ 634,719 Other payables Associates $ 25,915 Lease liabilities—current $ 93,192 Lease liabilities— non-current $ 46,011	December 31, 2020 - - 2,242 1,941,157 184,137 2,127,536 - - - 16,151 86,737 91,779	June 30, 2020
		- 1,105 1,760,958 215,357
		1,977,420
		251,423 68,030
		319,453
		50,822
		86,298
		139,204

(c) Compensation for key management personnel

Short-term employee benefits Post-employment benefits	For the three months ended June 30, 2021 2020 $ 61,919 18,864 216 216 $ 62,135 19,080	For the six months ended June 30,	For the six months ended June 30,
	2021 $ 61,919 216 $ 62,135	2021 110,992 414 111,406	2020
			59,335 432 59,767

(Continued)

89

QISDA CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

8. Pledged assets

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

Pledged assets	Pledged to secure	June 30, 2021 $ 71,822 469,167 193,661 - 4,285,465 173,573 920,447 - 101,476 - 2,944,500 $ 9,160,111	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	June 30, 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 Machinery Financial assets at fair value through other comprehensive income—non-current	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			209,486 589,507 - 5,394,038 4,244,481 126,662 895,231 522 132,398 82,196 -
				11,674,521

(Continued)

90

QISDA CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

9. Significant commitments and contingencies

• (a) Significant unrecognized commitments

Unused letters of credit	June 30, 2021 $ 1,459,279	December 31, 2020 1,097,310	June 30, 2020
			1,227,093

• (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) From June 10 to July 29, 2021, DFI acquired the common stocks of ACE at a price of $32 (dollars) per share through public tender offer. The expected maximum number of shares to be purchased is 17,970,000 shares. On July 20, 2021, the accumulated number of shares tendered has exceeded the minimum number of shares for the acquisition of 5,612,525 shares (equivalent to 5% of issued and outstanding common stock of ACE). As a result, the conditions of the public tender offer have been achieved. On July 29, 2021, the expiry date of public tender offer, the number of shares tendered and the actual number of acquisition were 14,445,069 shares.

• (b) In order to activate the assets and increase the working capital, the Board of Directors of DFI approved a resolution to sell the plant and buildings in Xizhi District at the expected consideration of $550,000 on August 6, 2021.

12. Others

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

	For the six months ended June 30, 2021	For the six months ended June 30, 2021	For the six months ended June 30, 2021	For the six months ended June 30, 2020	For the six months ended June 30, 2020	For the six months ended June 30, 2020
	Cost of sales	Operating expenses	Total	Cost of sales	Operating expenses	Total
Employee benefits: Salaries Insurance Pension Others Depreciation Amortization	2,674,910 187,478 124,757 136,443 613,892 17,184	3,169,341 234,888 123,130 154,444 334,682 220,767	5,844,251 422,366 247,887 290,887 948,574 237,951	1,873,532 124,934 70,439 159,590 520,056 15,126	2,118,070 160,553 70,491 132,862 230,829 105,409	3,991,602 285,487 140,930 292,452 750,885 120,535

(Continued)

91

QISDA CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

	For the six months ended June 30, 2021	For the six months ended June 30, 2021	For the six months ended June 30, 2021	For the six months ended June 30, 2020	For the six months ended June 30, 2020	For the six months ended June 30, 2020
	Cost of sales	Operating expenses	Total	Cost of sales	Operating expenses	Total
Employee benefits: Salaries Insurance Pension Others Depreciation Amortization	5,102,573 379,034 249,176 397,265 1,217,323 31,460	5,996,577 481,059 246,138 348,693 649,769 428,905	11,099,150 860,093 495,314 745,958 1,867,092 460,365	3,626,270 254,343 131,822 280,683 1,018,390 37,123	4,107,749 338,133 142,172 277,955 463,096 191,996	7,734,019 592,476 273,994 558,638 1,481,486 229,119

• (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: Table 5 (attached)

• (vii) Total purchases from and sales to related parties which exceed $100 million or 20% of the paid-in capital: Table 6 (attached)

• (viii) Receivables from related parties which exceed $100 million or 20% of the paid-in capital: Table 7 (attached)

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

• (x) Business relationships and significant intercompany transactions: Table 8 (attached)

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

(Continued)

92

QISDA CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

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

• (d) Major shareholders:

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

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) External revenue Intra-group revenue Total segment revenue Segment profit (loss) External revenue Intra-group revenue Total segment revenue Segment profit (loss)					For the	three months en	three months en	ded June 30, 20	ded June 30, 20	21	21
	DMS $ 27,270,687 2,706,401 $ 29,977,088 $ 370,063		Brand 14,433,953 121,397 14,555,350 889,620	M	aterial 4,279,974 3,147 4,283,121 315,083 For the	Medical 2,444,231 198 2,444,429 175,368 three months en		Networks 7,555,030 - 7,555,030 128,717 ded June 30, 20		Others - - - (685) 20			Eliminations - (2,831,143) (2,831,143) 28,811				Total
																	55,983,875 -
																	55,983,875
													28,811				1,906,977
						three		ded June		20
			Brand		Material		Medic		Ot	hers - - - (191) 1	E	li					Total
																	43,672,772 -
																	43,672,772
																	1,434,886
					For th		onths end
			Brand 28,039,299 254,390 28,293,689 1,712,734	M	aterial 8,352,879 6,524 8,359,403 463,585 For th	Medi		Networks 14,748,317 - 14,748,317 230,378 ed June 30, 202		Others			Eliminations - (5,501,248) (5,501,248) 57,363				Total
										- -							106,887,556 -
										-							106,887,556
													57,363				3,624,851
						e six m				0
			Brand		Material		Medic		Ot	hers - - - (243)	E	li					Total
																	82,872,938 -
																	82,872,938
																	2,471,745

QISDA CORPORATION AND SUBSIDIARIES Financing provided to other parties

For the six months ended June 30, 2021

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

Table 1

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		Finanacing Limits for Each Borrowing Company	Financing Company's Total Financing Amounts Limits
													Item	Value
0 1 1 1 2 1 4 3 5 4 7 6 8 7 8 8 9 10 9 11 11	The Company BenQ BenQ BenQ QLLB BenQ BBM QLPG BIC BBM QCOS NMHC BMS QCOS BMS BMS Ace Pillar Co., Ltd. Cyber South Ace Pillar Co., Ltd. Grace Transmission (Tianjin)Co., Ltd. Grace Transmission (Tianjin) Co., Ltd.	APV BQL Darly 2 Darly Venture (L) Ltd Darly C Qisda (Shanghai) Co., Ltd. (“QCSH”) Suzhou BenQ Hospital Co., Ltd. (“SMH”) QLLB Nanjing BenQ Hospital Co., Ltd.(“NMH”) Suzhou BenQ Hospital Co., Ltd. (“SMH ”)(Note 20) Suzhou BenQ Hospital Co., Ltd. (“SMH ”)(Note 20) Nanjing BenQ Hospital Co., Ltd.(“NMH ”)(Note 20) Qisda (Shanghai) Co., Ltd. (“QCSH”)(Note 20) BenQ Meterials (Wuhu) Co., Ltd.(Note 20) BenQ Materials Medical Supplies (Suzhou) Co., Ltd (“BMM”)(Note 20) Suzhou Sigma Medical Supplies Co., Ltd. (“SMSZ”)(Note 20) Tianjin Ace Pillar Co., Ltd. Suzhou Super Pillar Automation Equipment Co., Ltd. Suzhou Super Pillar Automation Equipment Co., Ltd. Advancedtek Ace (TJ) Inc. Tianjin Ace Pillar Co., Ltd.	Other receivables from related parties Other receivables from related parties Other receivables from related parties Other receivables from related parties Other receivables from related parties Other receivables from related parties Other receivables from related parties Other receivables from related parties Other receivables from related parties Other receivables from related parties Other receivables from related parties Other receivables from related parties Other receivables from related parties Other receivables from related parties Other receivables from related parties Other receivables from related parties Other receivables from related parties Other receivables from related parties Other receivables from related parties Other receivables from related parties Other receivables from related parties	yes yes yes yes yes yes yes yes yes yes yes yes yes yes yes yes yes yes 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) 558,502 (MYR 82,000) 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) 259,560 (CNY 60,000) 231,883 28,530 15,692 2,602 13,008	- 250,812 (USD 9,000) 139,340 (USD 5,000) - - 1,616,344 (USD 58,000) 550,909 (MYR 82,000) 125,406 (USD 4,500) 836,040 (USD 30,000) 21,537 (CNY 5,000) 22,398 (CNY 5,200) 732,241 (CNY 170,000) 51,688 (CNY 12,000) 1,141,435 (CNY 265,000) 86,146 (CNY 20,000) 258,438 (CNY 60,000) 167,208 27,868 - 2,584 12,922	- 250,812 (USD 9,000) 139,340 (USD 5,000) - - 1,616,344 (USD 58,000) 235,144 (MYR 35,000) 13,934 (USD 500) 418,020 (USD 15,000) 21,537 (CNY 5,000) 22,398 (CNY 5,200) 732,241 (CNY 170,000) 51,688 (CNY 12,000) 849,830 (CNY 197,300) - 81,839 (CNY 19,000) 139,340 27,868 - 2,584 12,922	- - - 0.75% - - - 3.20% - 1.00% 3.60% 1.00% 2.00%~2.30% 1.30% 1.30% 1.30% 0.00%~4.35% 1.15% - 1.80% 1.80%	2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2	- - - - - - - - - - - - - - - - - - - - -	Operating requirements Operating requirements Operating requirements Operating requirements Operating requirements Operating requirements Operating requirements Operating requirements Operating requirements Operating requirements Operating requirements Operating requirements Operating requirements Operating requirements Operating requirements Operating requirements Operating requirements Operating requirements Operating requirements Operating requirements Operating requirements	- - - - - - - - - - - - - - - - - - - - -	- - - - - - - - - - - - - - - - - - - - -	- - - - - - - - - - - - - - - - - - - - -	1,886,786 7,634,467 1,886,786 1,886,786 7,634,467 1,886,786 7,634,467 1,875,729 332,872 1,875,729 23,715 1,522,661 1,888,582 3,817,234 1,888,582 1,888,582 397,973 397,973 616,072 39,464 39,464	3,773,572 15,268,934 3,773,572 3,773,572 15,268,934 3,773,572 1,875,729 15,268,934 332,872 1,875,729 1,522,661 23,715 1,888,582 38,172,336 1,888,582 1,888,582 795,946 616,072 795,946 39,464 39,464

～93～

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
13 12 15 14 17 16 18 17	AEWIN Hong Kong Ace Pillar Enterprise Company Limited Mirac Networks (Dongguan) Co., Ltd. Alpha HK Hitron Technologies Alpha Networks (Chengdu) Co., Ltd. Jietech Trading (Suzhou)Inc. Hitron Technologies	Aewin Beijing Technologies Co., Ltd Tianjin Ace Pillar Co., Ltd. Alpha Networks (Changshu) Co., Ltd. Alpha Networks (Changshu) Co., Ltd. Hitron Technologies (SIP) Inc. Alpha Networks (Changshu) Co., Ltd. Hitron Technologies (Vietnam) Inc. Hitron Technologies (SIP) Inc.	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 relatedparties	yes yes yes yes yes yes yes yes	17,344 85,590 927,225 (USD 32,500) 129,331 (CNY 30,000) 86,154 (CNY 20,000) 427,950 427,950 21,680	17,229 - 905,710 (USD 32,500) - - 418,020 418,020 -	17,229 - 905,710 (USD 32,500) - - - 111,472 -	- 1.80% - 2.50% 1.00% 2.50% 1.00% 2.00%	2 2 2 2 2 2 2 2	- - - - - - - -	Operating requirements Operating requirements Operating requirements Operating requirements Operating requirements Operating requirements Operating requirements Operating requirements	- - - - - - - -	- - - - - - - -	- - - - - - - -	39,968 223,728 303,819 2,149,627 561,736 465,385 29,686 465,385	447,456 39,968 303,819 2,149,627 1,861,541 561,736 29,686 1,861,541

• (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 ACE to subsidiaries shall not exceed 40% and 20%, respectively, of the most recent net worth of ACE.

• (Note 11) 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 12) 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 13) 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 14) 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 15) 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 16) 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 17) 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 18) 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 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 19) Purpose of Fund Financing: 1.Business transaction purpose. 2. Short-term financing purpose.

• (Note 20) 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 21) The above intercompany transactions have been eliminated when preparing the consolidated financial statements.

～94～

QISDA CORPORATION AND SUBSIDIARIES Guarantees and endorsements provided to other parties For the six months ended June 30, 2021

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

Table 2

Table	2
No.	Endorsements / Guarantee Provider	Counter-party of Guarantee and Endorsement		Limits on Amount of Guarantees and Endorsements Provided to Each Guaranteed Party	Highest Balance of Guarantees and Endorsements During the Period	Balance of Guarantees and Endorsements as of Reporting Date	Actual Usage Amount During the Period	Property Pledged for Guarantees and Endorsements	Ratio of Accumulated Amounts of Guarantees and Endorsements to Net Worth of the Latest Financial Statements	Maximum Amounts for Guarantees and Endorsements	Gaurantee Provided by Parent Company	Gaurantee Provided by A Subsidiary	Endorsements / Guarantees Provided to Subsidiaries in Mainland China
		Name	Relationship with the Company
0 2 1 2 2 3 5 4 6 6 7 7 7 7 8 7	The Company PTT BenQ PTT PTT DIC AEWIN ACE Alpha Alpha Hitron Technologies Hitron Technologies Hitron Technologies Hitron Technologies Sysage Hitron Technologies	QLLB Partner Tech Middle East FZCO MaxGen Partner Tech USA Inc. Partner-Tech Europe GmbH Data Image (Suzhou) Corporation Aewin Beijing Technologies Co., Ltd Tianjin Ace Pillar Co., Ltd. Alpha Networks (Changshu) Co., Ltd. Alpha Networks (Dongguan) Co., Ltd. Hitron Technologies Europe Holding B.V. Innoauto Technologies Inc. Hitron Technologies (Vietnam) Inc. Hitron Technologies (Americas) Inc. Corex (Pty) Ltd. Hitron Technologies (SIP) Inc	Parent/Subsidiary Parent/Subsidiary Parent/Subsidiary Parent/Subsidiary Parent/Subsidiary Parent/Subsidiary Parent/Subsidiary Parent/Subsidiary Parent/Subsidiary Parent/Subsidiary Parent/Subsidiary Parent/Subsidiary Parent/Subsidiary Parent/Subsidiary Parent/Subsidiary Parent/Subsidiary	7,634,467 191,980 1,886,786 191,980 191,980 227,780 223,728 795,946 1,875,811 1,875,811 4,653,853 4,653,853 4,653,853 4,653,853 814,893 4,653,853	4,581,600 (USD 166,000) 98,157 (BRL17,259) 57,060 57,060 28,530 28,530 (USD 1,000) 295,475 129,780 57,060 199,710 75,000 598,215 836,100 2,168,280 514,446 142,650	3,790,048 (USD 136,000) 98,157 (BRL17,259) 55,736 55,736 27,868 27,868 (USD 1,000) 245,076 64,610 55,736 195,076 50,000 559,309 752,436 2,117,968 - 139,340	2,954,008 (USD 106,000) 98,157 (BRL17,259) 55,736 55,736 27,868 9,643 (CNY 2,239) 55,564 64,610 9,849 22,152 10,000 99,906 - 780,304 - 83,604	- - - - - - - - - - - - - - - -	9.93% 5.81% 1.04% 2.90% 5.81% 2.45% 5.78% 12.32% 2.08% 0.59% 12.02% 1.07% 45.51% 16.17% - 3.42%	19,086,168 9,433,931 479,950 479,950 479,950 569,450 447,456 994,932 4,689,528 4,689,528 6,980,780 6,980,780 6,980,780 6,980,780 6,980,780 1,629,786	Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y	- - - - - - - - - - - - - - - -	- - - - - Y Y Y Y Y - - - - Y -

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

(Note 2) The aggregate endorsement/guarantee amount provided by BenQ to MaxGen and the endorsement/guarantee amount provided to individual party shall not exceed 100% and 20%, respectively, of the net worth of BenQ.

(Note 3) The aggregate endorsement/guarantee amount provided by PTT to PTT's subsidiaries and the endorsement/guarantee amount provided to individual party shall not exceed 50% and 20%, respectively, of the net worth of PTT.

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

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

(Note 6) The aggregate endorsement/guarantee amount provided by Alpha to Alpha's subsidiaries and the endorsement/guarantee amount provided to individual party shall not exceed 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.

～95～

QISDA CORPORATION AND SUBSIDIARIES

Marketable securities held (excluding investments in subsidiaries, associates, and joint ventures) For the six months ended June 30, 2021

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

Table 3

Table 3
Investing Company	Marketable Securities Type and Name	Relationship with the Securities Issuer	Financial Statement Account	June 30, 2021
				Shares/Units	Carrying Value	Percentage of Ownership	Fair Value	Note
The Company The Company QLLB BMC BMC BMC BMC BMC APV APV APV APV	Stock: APLEX Technology, Inc. Stock: AU 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	- - - - - - - - - - - -	Financial assets at fair value through other comprehensive income-non-current Financial assets at fair value through other comprehensive income-non-current Financial assets at fair value through other comprehensive income-non-current Financial assets at fair value through other comprehensive income-current Financial assets at fair value through 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	1,388 663,599 - 1,680 150 225 300 206 317 619 672 31	41,694 15,030,509 43,442 62,009 541 (Note 1) 3,000 6,187 42,746 2,236 33,398 278	4.61% 6.98% 2.50% 5.25% 11.03% 2.50% 6.52% 2.12% 0.88% 6.19% 2.77% 0.06%	41,694 15,030,509 43,442 62,009 541 - 3,000 6,187 42,746 2,236 33,398 278	- - - - - - - - - - - -

～ 96 ～

Investing Company	Marketable Securities Type and Name	Relationship with the Securities Issuer	Financial Statement Account	June 30, 2021	June 30, 2021	June 30, 2021	June 30, 2021
				Shares/Units	Carrying Value	Percentage of Ownership	Fair Value	Note
APV APV APV APV APV Darly 2 Darly 2 Darly 2 Darly 2 Darly C Darly C Darly C Darly C BenQ PTT	Stock: Athena Capital Management Stock: CDIB Capital Innovation Advisors Corporation Preferred Stock: D8AI Holdings Coporation Stock: APLEX Technology, Inc. Stock: Raydium Semiconductor Corporation Stock: Crystalvue Medical Corp. 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: Crystalvue Medical Corp. 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-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	2,000 3,667 10,000 1,932 2,754 470 1,623 6,000 6,000 34 1,000 1,033 285 1,487 3,500	12,618 25,670 4,226 64,441 1,039,518 23,359 612,496 76,790 60,000 1,690 6,309 6,426 35,723 73,904 5,196	6.17% 3.33% 6.56% 7.13% 4.11% 1.94% 2.42% 18.75% 9.12% 0.14% 3.09% 2.24% 0.52% 6.13% 2.30%	12,618 25,670 4,226 64,441 1,039,518 23,359 612,496 76,790 60,000 1,690 6,309 6,426 35,723 73,904 5,196	- - - - - - - - - - - - - - -

～ 97 ～

Investing Company	Marketable Securities Type and Name	Relationship with the Securities Issuer	Financial Statement Account	June 30, 2021	June 30, 2021	June 30, 2021	June 30, 2021
				Shares/Units	Carrying Value	Percentage of Ownership	Fair Value	Note
DFI DFI DFI DFI AEWIN AEWIN PT. Frismed Hoslab Indonesia QCES Sysage Sysage Sysage Sysage Sysage Sysage Sysage	Stock: APLEX Technology, Inc. Fund: Cathay No 1 REIT Asia Tech Taiwan Venture Fund Bond: WM 7.25% Perpetual Stock: Aewin Korea Co., Ltd Stock: AuthenTrend Technology Inc. Insurance Fund: AVA IPRIME Stock: Jiangsu Yudi Optical Co., Ltd. CDS Holdings Limited Stock: Yobon Technologies, Inc. Stock: Dynasafe Technologies, Inc. Stock: Touch Cloud, Inc. Gemini Data, Inc. Stock: Kingtel Corporation Limited Partnership Equity: Taiwania Capital Buffalo FundⅤ,LP.	- - - - - - - - - - - - - - -	Financial assets at fair value through other comprehensive income-non-current Financial assets at fair value through profit or loss-current Financial assets at fair value through profit or loss-non-current Financial assets at fair value through profit or loss-current Financial assets at fair value through other comprehensive income-non-current Financial assets at fair value through other comprehensive income-non-current Financial assets at fair value through 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 profit or loss-non-current	999 1,442 USD 225 USD 200 10 300 - 7,692 600 3 3,906 200 2,706 443 (Note 2)	30,020 25,970 (Note 1) (Note 1) 1,288 (Note 1) 2,999 198,333 (Note 1) (Note 1) 174,678 216 9,752 2,473 100,000	3.32% - - - 16.67% 1.42% - 11.20% 1.12% 0.42% 19.53% 1.50% 2.94% 18.09% 13.20%	30,020 25,970 - - 1,288 - 2,999 198,333 - - 174,678 216 9,752 2,473 100,000	- - - - - - - - - - - - - - -

～ 98 ～

Investing Company	Marketable Securities Type and Name	Relationship with the Securities Issuer	Financial Statement Account	June 30, 2021	June 30, 2021	June 30, 2021	June 30, 2021
				Shares/Units	Carrying Value	Percentage of Ownership	Fair Value	Note
Simula Simula GSC Alpha Hitron Technologies Hitron Technologies Hitron Technologies Hitron Technologies Hitron Technologies Hitron Technologies Hitron Technologies Hitron Technologies Hitron Technologies Interactive Digital	Stock: Optomedia Technology Inc. Stock: Taiwan Competition Co., Ltd. Stock: New Image Medical Co.,Ltd. Stock: TGC, Inc. Stock: Senao International Co., Ltd. Stock: Transcend Information Inc. Stock: Chao Long Motor Parts Corp. Stock: Imagetech Co., Ltd. Stock: Tsunami Visual Technologies, Inc. Stock: Pivot Technology Corp. Stock: Cardtek Co., Ltd. Stock: Yesmobile 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 profit or loss-non-current Financial assets at fair value through profit or loss-current Financial assets at fair value through profit or loss-current Financial assets at fair value through other comprehensive income-non-current Financial assets at fair value through other comprehensive income-non-current Financial assets at fair value through other comprehensive income-non-current Financial assets at fair value through other comprehensive income-non-current Financial assets at fair value through other comprehensive income-non-current Financial assets at fair value through other comprehensive income-non-current Financial assets at fair value through other comprehensive income-non-current Financial assets at fair value through profit or loss-current	817 500 200 500 152 441 668 120 1,220 198 1,000 294 1,570 362	2,411 2,469 2,960 (Note 1) 4,849 32,590 19,335 (Note 1) (Note 1) (Note 1) (Note 1) (Note 1) (Note 1) 26,752	3.26% 16.67% 0.74% 1.83% - - 1.79% 1.20% 9.34% 10.94% 6.45% 0.75% - -	2,411 2,469 2,960 - 4,849 32,590 19,335 - - - - - - 26,752	- - - - - - - - - - - - - -

(Note 1) The impairment loss was fully recognized.

(Note 2) There was no shares as the compan is a limited partnership.

～ 99 ～

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 six months ended June 30, 2021

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

Table 4

Table 4
Company Name	Marketable Securities Type and Name(Note 1)	Financial Statement Account	Counter-Party	Name of Relationship	Beginning Balance		Purchase		Disposal				Ending Balance(Note 1)
					Shares	Amount	Shares	Amount	Shares	Amount	Carrying Value	Gain (Loss) on Disposal	Shares	Amount
The Company BBM DFI Hitron Technologies Simula	Sysage NSHD Brainstorm Hitron Vietnam AST	Investment accounted for using equity method Investment accounted for using equity method Investment accounted for using equity method Investment accounted for using equity method Investment accounted for using equity method	- Hangzhou Lan Cheng Hong Chuang Investment Ltd. - - -	Parent/Subsidiary - Parent/Subsidiary Parent/Subsidiary Parent/Subsidiary	66,000 - - - -	1,856,785 384,857 - 434,914 -	30,841 - 233 - 32,001	1,387,856 - 501,582 668,640 983,857	- - - - -	- 959,335 - - -	141,836 - - -	- 817,499 - - -	96,841 - 233 - 32,001	2,557,487 235,238 501,582 1,098,214 978,236

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

～ 100 ～

QISDA CORPORATION AND SUBSIDIARIES Disposal of real estate which exceeds NT$300 million or 20% of the paid-in capital For the six months ended June 30, 2021

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

Table 5

Table 5
Company Name	Property Name	Transaction Date	Acquisition date	Book Value	Transaction Amount	Status of Payment	Gain or Loss on Disposal of real estate	Relation with the Counter Party	Counter Party	Purpose of Disposal	Price Reference	Notes
Qisda Sdn. Bhd. (QLPG)	Two land and buildings in Malaysia	Board resolution date June 11, 2020 ; Transaction date: June, 2021	1990	115,802	618,957(MYR 92,000 thousand) Net selling price after tax is 561,173	The first installment 142,360 (MYR 21,160 thousand) which is 23% of the contract price has been received.	365,338	Associates	Visco Technology Sdn. Bhd.	To activate asset and increase working capital	Refer to appraisal report	Payment term： 10% will be charged within 1 month after signing the contact； 20% will be charged within 1 month after the government approval is received； 70% will be charged within 4 month after the government approval is received

～ 101 ～

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 six months ended June 30, 2021

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

			For the six months ended June 30, 2021 (Amounts in thousands of New Taiwan dollars, unless specified otherwise)	For the six months ended June 30, 2021 (Amounts in thousands of New Taiwan dollars, unless specified otherwise)	For the six months ended June 30, 2021 (Amounts in thousands of New Taiwan dollars, unless specified otherwise)	For the six months ended June 30, 2021 (Amounts in thousands of New Taiwan dollars, unless specified otherwise)	For the six months ended June 30, 2021 (Amounts in thousands of New Taiwan dollars, unless specified otherwise)	For the six months ended June 30, 2021 (Amounts in thousands of New Taiwan dollars, unless specified otherwise)	For the six months ended June 30, 2021 (Amounts in thousands of New Taiwan dollars, unless specified otherwise)	For the six months ended June 30, 2021 (Amounts in thousands of New Taiwan dollars, unless specified otherwise)	For the six months ended June 30, 2021 (Amounts in thousands of New Taiwan dollars, unless specified otherwise)
Table 6
Company Name	Related Party	Nature of Relationship	Transaction Detail				Transactions with Terms Different from Others		Notes/Accounts Receivable or (Payable)
			Purchases/ (Sales)	Amount	% of Total Purchases/(Sales)	Payment Terms	Unit Price	Payment Terms	Ending Balance	% of Total Note/ Accounts Receivable or (Payable)	Note
The Company The Company The Company The Company The Company The Company The Company The Company The Company QCSZ QCSZ QCOS QALA QJTO DFI Topview BenQ QCSZ QCSZ QCSZ QCOS QCOS QCOS QCES QCPS QCPS BenQ BenQ BenQ BenQ BenQ BQA BQA BQC_RO BQC RO BQE BQE BQE BQE	BenQ QJTO QALA AU AUSZ QCSZ QCOS DFI Topview The Company AU The Company The Company The Company The Company The Company The Company BQC_RO QCPS DIC BQC_RO QCES QCPS QCOS QCSZ QCOS AU BQA BQE BQL BQP BQCA BenQ QCOS QCSZ BenQ BQDE BQFR BQIT	Parent/Subsidiary Parent/Subsidiary Parent/Subsidiary (Note 5) (Note 5) Parent/Subsidiary Parent/Subsidiary Parent/Subsidiary Parent/Subsidiary Parent/Subsidiary Other related party Parent/Subsidiary Parent/Subsidiary Parent/Subsidiary Parent/Subsidiary Parent/Subsidiary Parent/Subsidiary Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Other related party Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates	(Sales) (Sales) (Sales) (Sales) (Sales) Purchases Purchases (Sales) (Sales) (Sales) Purchases (Sales) Purchases Purchases Purchases Purchases Purchases (Sales) Purchases Purchases (Sales) Purchases Purchases (Sales) (Sales) (Sales) Purchases (Sales) (Sales) (Sales) (Sales) (Sales) Purchases Purchases Purchases Purchases (Sales) (Sales) (Sales)	(3,603,778) (1,292,469) (10,414,371) (2,844,571) (1,014,081) 34,927,103 6,149,133 (202,097) (154,836) (34,927,103) 4,129,782 (6,149,133) 10,414,371 1,292,469 202,097 154,836 3,603,778 (462,331) 709,211 187,849 (672,677) 437,295 113,395 (437,295) (709,211) (113,395) 1,861,754 (1,574,650) (3,761,203) (267,524) (2,500,964) (395,462) 1,574,650 672,677 462,331 3,761,203 (1,099,652) (451,792) (267,500)	(7) (3) (22) (6) (2) 77 13 - - (91) 11 (81) 100 100 12 20 48 (1) 2 - (9) 6 2 (4) (81) (13) 25 (19) (46) (3) (30) (16) 78 42 29 100 (27) (11) (6)	OA90 OA120 OA90 OA120 OA120 OA120 OA120 OA60 OA60 OA120 EOM55 OA120 OA90 OA120 OA60 OA60 OA90 OA120 OA60 EOM45 OA120 OA60 OA60 OA60 OA60 OA60 EOM55 OA90 OA90 OA90 OA60 OA60 OA90 OA120 OA120 OA90 OA30 OA30 OA30	- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -	- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -	2,887,129 969,746 3,759,815 1,367,780 752,333 (14,043,805) (2,279,888) 87,396 64,894 14,043,805 (807,544) 2,279,888 (3,759,815) (969,746) (87,396) (64,894) (2,887,129) 50,742 (157,724) (75,120) 64,608 (84,536) (26,566) 84,536 157,724 26,566 (888,525) 391,527 2,326,654 262,417 1,190,137 114,766 (391,527) (64,608) (50,742) (2,326,654) 188,314 298,439 106,862	14 5 18 7 4 (64) (10) - - 88 (5) 87 (97) (100) (11) (15) (56) - (1) - 2 (2) (1) 2 72 12 (17) 8 48 5 24 17 (97) (14) (11) (97) 17 27 10	- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

～102～

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 BQE BQE BQE BQE BQE BQL BQL BQP BQP BQP BQP BQP BQAT BQAU BQCA BQDE BQFR BQIB BQIN BQIT BQJP BQME BQMX BQSE BQUK BQNL BQCH ESM GSC DIC DIC Data Image (Suzhou) Corporation Data Image (Suzhou) Corporation DFI DFI AMERICA, LLC. DFI DFI Co., Ltd. DFI Diamond Flower Information (NL) B.V. AEWIN Aewin Beijing Technologies Co., Ltd Advancedtek Ace (TJ) Inc. Tianjin Ace Pillar Co.,Ltd.	BQUK BQAT BQSE BQIB BQNL BQCH BenQ BQMX BQAU BOIN BQJP BOME BenQ BQE BQP BQA BQE BQE BQE BQP BQE BQP BQP BQL BQE BQE BQE BQE GSC ESM QCSZ Data Image (Suzhou) Corporation DIC DFI DFI AMERICA, LLC. DFI DFI Co., Ltd. DFI Diamond Flower Information (NL) B.V. DFI Aewin Beijing Technologies Co., Ltd AEWIN Tianjin Ace Pillar Co., Ltd. Advancedtek Ace(TJ)Inc.	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 Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates	(Sales) (Sales) (Sales) (Sales) (Sales) (Sales) Purchases (Sales) (Sales) (Sales) (Sales) (Sales) Purchases Purchases Purchases Purchases Purchases Purchases Purchases Purchases Purchases Purchases Purchases Purchases Purchases Purchases Purchases Purchases (Sales) Purchases (Sales) Processing cost Processing Income Purchases (Sales) Purchases (Sales) Purchases (Sales) Purchases (Sales) Purchases (Sales) Purchases	(642,847) (447,005) (186,445) (370,908) (185,879) (100,831) 267,524 (182,451) (176,485) (245,244) (991,089) (412,980) 2,500,964 447,005 176,485 395,462 1,099,652 451,792 370,908 245,244 267,500 991,089 412,980 182,451 186,445 642,847 185,879 100,831 (162,502) 162,502 (187,849) 840,905 (840,905) 156,701 (270,255) 270,255 (126,472) 126,472 (148,233) 148,233 (153,436) 153,436 (190,968) 190,968	(16) (11) (4) (9) (4) (2) 88 (55) (6) (8) (33) (14) 94 100 98 97 100 99 100 99 100 100 97 100 98 100 96 100 (86) 77 (10) 60 (46) 11 (17) 97 (8) 99 (9) 100 (33) 44 (100) 29	OA30 OA45 OA30 OA30 OA30 OA30 OA90 OA90 OA60 OA60 OA60 OA60 OA60 OA45 OA60 OA60 OA30 OA30 OA30 OA60 OA30 OA60 OA60 OA90 OA30 OA30 OA30 OA30 OA60 OA60 EOM45 Depends on its working capital status Depends on its working capital status EOM45 60~90 Days 60~90 Days 60~90 Days 60~90 Days 60~90 Days 60~90 Days 150 Days after shipment 150 Days after shipment T/T 30 Days T/T 30 Days	- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -	- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -	101,423 60,742 12,792 44,198 74,871 71,772 (262,417) 200,260 59,492 466,089 339,097 255,951 (1,190,137) (60,742) (59,492) (114,766) (188,314) (298,439) (44,198) (466,089) (106,862) (339,097) (255,951) (200,260) (12,792) (101,423) (74,871) (71,772) - - 75,120 (98,834) 98,834 (40,347) 92,275 (92,275) 3,186 (3,186) 10,260 (10,260) 338,077 (338,077) (83,795) 83,795	9 6 1 4 7 7 (87) 30 4 29 21 16 (100) (100) (97) (100) (100) (100) (93) (100) (91) (97) (95) (92) (91) (94) (100) (96) - - 9 (15) 12 (6) 18 (96) 1 (91) 2 (100) 69 (79) (98) 32	- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

～103～

Company Name	Related Party	Nature of Relationship	Transaction Detail	Transaction Detail	Transaction Detail		Transactions with Terms Different from Others	Transactions with Terms Different from Others	Notes/Accounts Receivable or (Payable)	Notes/Accounts Receivable or (Payable)
			Purchases/ (Sales)	Amount	% of Total Purchases/(Sales)	Payment Terms	Unit Price	Payment Terms	Ending Balance	% of Total Note/ Accounts Receivable or (Payable)	Note
Alpha Alpha Alpha Alpha Changshu Alpha HK D-Link Asia Hitron Technologies Hitron Technologies Hitron Vietnam Hitron Suzhou Hitron Suzhou Alpha USA D-Link Asia Alpha Changshu Mirac Alpha Changshu Alpha Dongguan Hitron Europe Hitron Americas Hitron Technologies Hitron Vietnam Hitron Technologies BMC BMC BMC BMC BMC BMC BMC BenQ Materials Medical Supplies (Suzhou) Co., Ltd. SMS BMS Visco Vision Simula Simula Technology (ShenZhen) Co., Ltd. PTT PTT PTE PTU	Alpha USA D-Link Asia Alpha Changshu Mirac Alpha Changshu Alpha Dongguan Hitron Americas Hitron Europe Hitron Technologies Hitron Technologies Hitron Vietnam Alpha Alpha Alpha Alpha Changshu Alpha HK D-Link Asia Hitron Technologies Hitron Technologies Hitron Suzhou Hitron Suzhou Hitron Vietnam AU AUSZ AUXM BenQ Materials Medical Supplies (Suzhou) Co., Ltd. SMS BMS Visco Vision BMC BMC BMC BMC Simula Technology (ShenZhen) Co., Ltd. Simula PTE PTU PTT PTT	Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Other related party Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Other related party Other related party Other related party Affiliates Affiliates Affiliates Associate Affiliates Affiliates Other related party Associate Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates	(Sales) Purchases Purchases (Sales) (Sales) Purchases (Sales) (Sales) (Sales) (Sales) (Sales) Purchases (Sales) (Sales) Purchases Purchases (Sales) Purchases Purchases Purchases Purchases Purchases (Sales) (Sales) (Sales) (Sales) (Sales) Purchases Purchases Purchases Purchases (Sales) (Sales) Purchases (Sales) (Sales) (Sales) Purchases Purchases	(2,222,684) 3,394,198 3,118,983 (258,805) (3,203,905) 3,394,198 (2,387,112) (370,513) (2,533,409) (758,212) (153,424) 2,222,684 (3,394,198) (3,118,983) 258,805 3,203,905 (3,394,198) 370,513 2,387,112 758,212 153,424 2,533,409 (1,947,410) (546,215) (404,171) (174,202) (146,393) 383,483 152,886 174,202 146,393 (383,483) (152,886) 355,033 (355,033) (175,221) (105,483) 175,221 105,483	(25) 41 37 (8) (100) 55 (46) (7) (49) (15) (3) 100 (55) (91) 94 90 (99) 100 100 14 12 47 (23) (7) (5) (2) (2) 6 2 100 100 (100) (20) 88 (88) (34) (20) 40 79	90 Days 90 Days 90 Days 90 Days 90 Days 90 Days 90 Days 90 Days 90 Days 45 Days 45 Days 90 Days 90 Days 90 Days 90 Days 90 Days 90 Days 90 Days 90 Days 45 Days 45 Days 60 Days OA90 OA90 OA90 OA120 OA90 OA90 OA30 OA120 OA90 OA90 OA30 EOM60 EOM60 OA90 OA90 OA90 OA90	- - - - - - - - - - - - - - - - - - - - - - (Note 1) (Note 1) (Note 1) (Note 1) (Note 1) (Note 2) (Note 2) - - - - (Note 4) Equal to third- party customers (Note 3) (Note 3) (Note 3) (Note 3)	- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Third-party vendor: EOM 30-120 Non-related party: EOM 30-120 - - - -	1,057,951 (1,224,178) (959,487) 146,137 1,305,828 (1,254,561) 1,134,630 164,926 489,910 - 809 (1,057,951) 1,224,178 959,487 (146,137) (1,305,828) 1,254,561 (164,926) (1,134,630) - (809) (489,910) 468,751 90,911 135,735 172,053 137,083 (123,114) (20,530) (172,053) (137,083) 123,114 20,530 (125,604) 125,604 112,726 55,551 (112,726) (55,551)	26 (39) (31) 13 100 (51) 74 11 32 - - (100) 50 84 (75) (76) 97 (100) (100) - - (45) 18 3 5 6 5 4 1 (100) (100) 100 6 (68) 86 29 14 (67) (96)	- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

(Note 1) The selling prices of BMC to related parties are not comparable to the sales prices for third-party customers as the specifications of products were different. For the other transaction, there were no significant differences between the sales for related parties and those for third-party customers. (Note 2) The purchase prices to related parties are not comparable to the purchase prices for third-party vendors as the specifications of products were different, and it is conducted under the agreed purchase price and conditions. (Note 3) The selling prices of PTT to related parties are not comparable to the sales prices for third-party customers as the specifications of products were different. For the other transaction, there were no significant differences between the sales for related parties and those for third-party customers.

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

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

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

～104～

QISDA CORPORATION AND SUBSIDIARIES Receivables from related parties which exceed NT$100 million or 20% of the paid-in capital For the six months ended June 30, 2021

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

Table 7

Table 7
Company Name	Related Party	Nature of Relationship	Ending Balance	Turnover Rate	Overdue		Amount Received in Subsequent Period	Allowance for Bad Debts
					Amount	Action Taken
The Company The Company The Company The Company The Company The Company The Company QCSZ QCOS QCES QCPS BenQ BenQ BenQ BenQ BenQ BenQ BQA BQE BQE BQE BQE BQL BQL BQP BQP BQP AEWIN ACE	BenQ QJTO QALA AU AUSZ QCSZ QCOS The Company The Company The Company QCSZ BQA BQE BQL BQP QCSZ QVH BQCA BQDE BQFR BQIT BQUK BQMX Maxgen BQIN BQJP BQME Aewin Beijing Technologies Co., Ltd Tianjin Ace Pillar Co.,Ltd.	Parent/Subsidiary Parent/Subsidiary Parent/Subsidiary Associate Associate Parent/Subsidiary Parent/Subsidiary Parent/Subsidiary Parent/Subsidiary Parent/Subsidiary Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates	2,887,129 969,746 3,759,815 1,367,780 752,333 933,106 465,454 14,043,805 2,279,888 3,357,062 157,724 391,527 2,326,654 262,417 1,190,137 232,832 243,367 114,766 188,314 298,439 106,862 101,423 200,260 448,780 466,089 339,097 255,951 338,077 139,805	2.43 2.93 4.15 4.18 2.62 (Note 1) (Note 1) 4.36 4.20 (Note 1) 9.21 6.32 3.02 1.83 3.54 (Note 1) (Note 1) 5.28 6.77 2.56 4.53 10.43 1.95 0.31 0.88 6.43 3.03 0.85 (Note 1)	1,119,055 - 3,934 - - 1,991 14,074 1,029,799 3,723 3,357,062 - - 402,133 157,395 289,066 - 24,783 - 28 213 71 6 126,714 416,090 359,026 19,066 34,221 229,737 -	- - - - - - - - - - - - - - - - - - - - - - - - - - - - -	- 135,961 - - 165,531 446,159 - 14,043,805 3,723 3,357,062 - - - - - - - 1,787 186 - 33 59 16,721 - - 127,058 - - -	- - - - - - - - - - - - - - - - - - - - - - - - - - - - -

～105～

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
Alpha D-Link Asia Alpha Changshu Alpha Dongguan Alpha Changshu Alpha HK D-Link Asia Hitron Technologies Hitron Technologies Hitron Technologies Hitron Vietnam BMC BMC BMC BMC BMS Simula Technology (ShenZhen) Co., Ltd. PTT PTT	Alpha USA Alpha Alpha D-Link Asia Mirac Alpha Changshu Alpha Dongguan Hitron Americas Hitron Europe Hitron Vietnam Hitron Technologies AU AUXM BenQ Materials Medical Supplies (Suzhou) Co., Ltd. SMS BMC Simula PTE PTME	Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Other related party Other related party Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates	1,057,591 1,224,178 959,487 1,254,561 146,137 1,305,828 1,184,732 1,134,630 164,926 1,116,803 489,910 468,751 135,735 172,053 137,083 123,114 125,604 112,726 116,583	4.06 3.43 6.24 3.39 0.50 5.63 3.19 3.16 3.56 (Note 1) 6.57 3.41 (Note 2) 3.34 (Note 2) 2.71 (Note 2) 3.20 (Note 2) 7.80 (Note 2) 4.62 3.95 1.15	- - - - - - - - - - - - - - - - - 99,150 84,799	- - - - - - - - - - - - - - - - - - -	- 5,289 - 5,289 65,089 146,149 5,285 - - - - - - 10,930 - 38,045 65,598 15,438 14,934	- - - - - - - - - - - - - - - - - -

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

(Note 2) The calculation of turnover rate includes the account receivable sold to financial institutions.

(Note 3) The above intercompany transactions have been eliminated when preparing the consolidated financial statements.

～106～

QISDA CORPORATION AND SUBSIDIARIES

Business relationships and significant intercompany transactions For the six months ended June 30, 2021

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

Table 8

Table 8
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 0 1 2 3 3 3 4 5 6 7 8 9 10 11 0 0 1 2 3	The Company The Company The Company QCSZ QCOS BenQ BenQ BenQ BQE Alpha Alpha HK D-Link Asia Hitron Technologies Hitron Vietnam Alpha Dongguan Alpha Changshu The Company The Company QCSZ QCOS BenQ	BenQ QJTO QALA The Company The Company BQA BQE BQP BQDE Alpha USA Alpha Changshu Alpha Hitron Americas Hitron Technologies D-Link Asia Alpha BenQ QALA The Company The Company BQE	1 1 1 2 2 3 3 3 3 3 3 3 3 3 3 3 1 1 2 2 3	(Sales) (Sales) (Sales) (Sales) (Sales) (Sales) (Sales) (Sales) (Sales) (Sales) (Sales) (Sales) (Sales) (Sales) (Sales) (Sales) Accounts receivable Accounts receivable Accounts receivable Accounts receivable Accounts receivable	(3,603,778) (1,292,469) (10,414,371) (34,927,103) (6,149,133) (1,574,650) (3,761,203) (2,500,964) (1,099,652) (2,222,684) (3,203,905) (3,394,198) (2,387,112) (2,533,409) (3,394,198) (3,118,983) 2,887,129 3,759,815 14,043,805 2,279,888 2,326,654	OA90 OA120 OA90 OA120 OA120 OA90 OA90 OA60 OA30 90 Days 90 Days 90 Days 90 Days 60 Days 90 Days 90 Days OA90 OA90 OA120 OA120 OA90	(3%) (1%) (10%) (33%) (6%) (1%) (4%) (2%) (1%) (2%) (3%) (3%) (2%) (2%) (3%) (3%) 2% 2% 8% 1% 1%

～107～

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

1. "0" represents the Company.

2. Subsidiaries are numbered from "1".

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

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

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

6. No. “3” represents the transactions between subsidiaries.

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

～108～

Table 9

QISDA CORPORATION AND SUBSIDIARIES

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

For the six months ended June 30, 2021 (Amounts in thousands of New Taiwan dollars / shares, unless specified otherwise)

Table 9
Investor	Investee	Location	Main Businesses and Products	Original investment Amount		Balances as of June 30, 2021			Net Income (Loss) of the Investee	Investment Income (Loss)	Note
				June 30, 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 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 BMTC BBHC	Taiwan Taiwan Taiwan Taiwan USA Japan Malaysia Malaysia Taiwan Malaysia Cayman Taiwan Taiwan Taiwan Taiwan Taiwan Taiwan Taiwan Taiwan Hong Kong Taiwan Taiwan Vietnam Taiwan Taiwan Malaysia Taiwan Taiwan Taiwan Taiwan Taiwan Taiwan Taiwan Taiwan Cayman	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 Manufacture and sales of medical consumables and equipments Investment and holding activity	- 662,195 507,883 7,160,050 32,800 2,701 578,128 3,687,539 570,016 165,000 1,476,632 1,475,978 280,000 1,000 63,000 3,154,750 8,135,810 217,763 260,000 78,338 3,202,856 172,500 1,212,849 600,000 254,000 1,141,340 231,727 177,811 29,127 - 6,000 77,933 221,786 42,584 904,102	8,085,543 662,195 507,883 7,160,050 32,800 2,701 578,128 3,687,539 570,016 165,000 1,476,632 1,475,978 280,000 1,000 63,000 3,154,750 8,114,943 217,763 260,000 78,338 1,815,000 172,500 1,073,549 600,000 254,000 1,141,340 560,000 177,811 29,127 10,001 6,000 77,933 221,786 42,584 904,102	- 58,005 43,659 539,662 1,000 - 50,000 114,250 153,258 6,000 47,400 43,577 28,000 100 6,000 51,610 295,797 6,997 20,000 1 96,841 5,750 - 30,000 10,000 35,082 2,000 9,834 1,095 - 217 12,105 15,182 3,549 25,000	- 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% 7.96% 10.21%	- 1,864,971 535,613 9,459,830 49,195 63,257 717,368 13,475,544 3,274,889 195,744 902,369 1,358,183 96,842 1,002 60,144 2,901,017 7,614,000 210,023 310,151 80,163 2,557,487 209,136 842,581 621,831 250,196 1,576,387 108,217 164,330 12,256 - 4,900 192,170 214,095 81,295 483,569	31,365,039 511,595 441,213 1,103,140 6,483 11,408 435,419 (65,930) 150,509 47,248 862,306 42,442 (17,396) - 17,937 128,759 229,385 28,200 116,382 4,525 312,615 47,863 (115,568) 28,645 36,845 61,655 (15,366) 151,076 (7,280) (3,469) (4,034) 4,767 441,213 8,241 862,306	1,255,866 105,974 (19,973) 1,101,242 6,483 11,408 435,419 499,931 150,509 47,248 166,875 7,821 (17,690) - 3,587 19,783 78,341 8,957 33,711 2,444 121,722 9,973 (115,568) 2,895 17,332 - - - - - - - - - -	(Note 3) 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 Affiliates Affiliates

～109～

Investor	Investee	Location	Main Businesses and Products	Original investment Amount	Original investment Amount	Balances as of June 30, 2021	Balances as of June 30, 2021	Balances as of June 30, 2021	Net Income (Loss) of the Investee	Investment Income (Loss)	Note
				June 30, 2021	December 31, 2020	Shares	Percentage of Ownership	Carrying Value
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 BQP BQP BQP BQP BQP BQP	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 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.	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 Japan Singapore Australia Malaysia Thailand Korea	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 electronic products Sales of brand-name electronic products Sales of brand-name electronic products Sales of brand-name electronic products Sales of brand-name electronic products Sales of brand-name electronic products Providing administration and management service to affiliates	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 4,518 1,837 132,590 119,488 120,116 1,713	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 4,518 1,837 132,590 119,488 120,116 1,713	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 4,350 466,200 5,009 20,000 225,000 23,400 14,017 80,848 20,000 19,353 82 6,947 4,000 - 18 440,296 - - 500 2,191 100 12,000 10	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% 11.54% 37.50% 5.01% 25.21% 8.16% 43.43% 100.00% 100.00% 100.00% 0.31% - 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00%	7,858 153,826 14 142,730 244,455 64,881 73,293 213,511 152,353 4,600 232,732 19,498 271,221 803,148 (44,642) 2,902,798 860,398 302,857 3,710,028 58,482 450,574 1,140,452 384,592 433,503 69,519 86,556 1,091,640 36 344 45,585 47,699 97,753 (12,300) 78,268 7,048 (54,663) 4,466	153 42,442 77 128,759 229,385 47,863 116,382 28,645 36,845 153 229,385 (19,651) 862,306 106,946 30,178 80,610 186,758 159,738 255,673 (19,651) 511,595 441,213 862,306 8,241 320 (370) 309,677 2,867 229,385 16,904 22,508 21,009 3,500 11,675 (443) (6,421) (1,974)	- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -	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 Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates

～110～

Investor	Investee	Location	Main Businesses and Products	Original investment Amount	Original investment Amount	Balances as of June 30, 2021	Balances as of June 30, 2021	Balances as of June 30, 2021	Net Income (Loss) of the Investee	Investment Income (Loss)	Note
				June 30, 2021	December 31, 2020	Shares	Percentage of Ownership	Carrying Value
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 BQE BQE BQE BQE BQE BMTC BMTC BMTC BMTC BMTC BMTC BHS PTT	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. BenQ Austria GmbH BenQ Iberica S.L. Unipersonal BenQ Italy S.R.L BenQ France SAS BenQ Nordic A.B. BenQ LLC. Asiaconnect Highview LILY BABD BHS EASTECH NBHIT WEBEST	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 Spain Italy France Sweden Russia Taiwan Samoa Taiwan Taiwan Taiwan Taiwan Taiwan Taiwan	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 electronic products Sales of brand-name electronic products Sales of brand-name electronic products Sales of brand-name electronic products Sales of brand-name electronic products Providing administration and management services to affiliates Sales of medical consumables and equipment Investment and holding activity Manufacture and sales of medical consumables and equipment Manufacture and sales of medical consumables and equipment Manufacture and sales of medical consumables and equipment Manufacture and sales of medical consumables and equipment Manufacture and sales of medical consumables and equipment Sales, import and export of electronic products	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 4,677 92,654 2,045 445 52 21,984 36,211 185,000 88,000 100,000 20,300 59,280 21,843	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 4,677 92,654 2,045 445 52 21,984 36,211 185,000 88,000 100,000 20,300 59,280 21,843	6 1 1 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 - - - - - 50 - - - 1,995 1,062 10,000 8,800 10,000 700 1,092 2,500	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% 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%	11,521 31,017 41,763 (129,688) (129,688) (129,688) (129,688) 3,354 71,625 233,822 1,257,742 77,976 36,422 3,450 42,209 571,248 72,087 47,767 57,815 130,466 213,511 72,738 197,310 (31,641) 60,834 91,126 36,683 (121,206) 72,938 13,397 26,371 8,561 233,837 56,207 117,833 21,843 63,242 24,264	2,867 24,276 3,294 11,815 11,815 23,628 23,628 (9) 77 4,767 862,306 (19,651) 8,241 153 42,442 128,759 229,385 28,200 116,382 47,863 28,645 22,802 10,269 1,709 5,420 5,409 5,204 (1,727) (4,753) 122 1,413 (367) 8,661 110 11,151 2,087 9,678 4,193	- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -	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

～111～

Investor	Investee	Location	Main Businesses and Products	Original investment Amount	Original investment Amount	Balances as of June 30, 2021	Balances as of June 30, 2021	Balances as of June 30, 2021	Net Income (Loss) of the Investee	Investment Income (Loss)	Note
				June 30, 2021	December 31, 2020	Shares	Percentage of Ownership	Carrying Value
PTT PTT PTT PTT PTT PTT PTT PTT PTE PTE PTE PTME WEBEST WEBEST WEBEST P&J P&S DFI DFI DFI DFI DFI DFI DFI AEWIN AEWIN Wise Way ACE ACE Cyber South Cyber South K2 K2 DIC DIC EASC Sysage	P&J Investment Holding Co., Ltd. (B.V.I.) Partner Tech UK Corp., Ltd. Partner-Tech Europe GmbH Partner Tech Middle East FZCO Epoint Systems Pte. Ltd. PTTN PTMG Partner Tech North Africa Partner Tech UK Corp., Ltd. Sloga team D.o.o. Retail Solution & System S.L. E-POS International LLC PTTN Partner Tech North Africa Partner Tech Middle East FZCO P&S Investment Holding Co., Ltd. (B.V.I.) Partner Tech USA Inc. DFI AMERICA, LLC. Yan Tong Technology Ltd. DFI Co., Ltd. Diamond Flower Information (NL) B.V. AEWIN ACE Brainstorm Wise Way Aewin Tech Inc. Bright Profit Cyber South Hong Kong Ace Pillar Enterprise Company Limited Proton Inc. Ace Tek (HK) Holding Co., Ltd. K2 Medical (Thailand) Co., LTD PT Frismed Hoslab Indonesia Data Image (Mauritius) Corporation DMC Components International, LLC Expert Alliance Smart Technology Co., Ltd. Global Intelligence Network Co., Ltd.	British Virgin Islands UK Germany United Arab Emirates Singapore Taiwan Taiwan Morocco UK Slovenia Spain United Arab Emirates Taiwan Morocco United Arab Emirates British Virgin Islands USA USA Mauritius Japan The Netherlands Taiwan Taiwan USA Anguilla USA Hong Kong Samoa Hong Kong Samoa Hong Kong Thailand Indonesia Mauritius Orlando, USA Macao Taiwan	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 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 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 Manufacture and sale of industrial motherboards and component Sales of automation mechanical transmission system and component Wholesale and retail of computers and peripherals product Investment and holding activity Wholesale of computer peripheral products and software Investment and holding activity Investment and holding activity Sales of automation mechanical transmission system and component Investment and holding activity Investment and holding activity Sales of medical consumables Sales of medical consumables Investment and holding activity Agency sales Sales of brand-name electronic products and smart services Sales of network and information and communication hardware and software	230,307 43,834 51,451 137,387 27,449 20,500 11,000 4,075 5,640 980 - 2,485 10 1 1,560 134,973 31,593 254,683 187,260 104,489 35,219 564,144 839,116 501,582 46,129 77,791 46,129 107,041 5,120 527,665 4,938 15,919 258,728 518,381 24,304 381 119,142	230,307 43,834 51,451 137,387 27,449 20,500 11,000 4,075 5,640 980 - 2,485 10 1 1,560 134,973 31,593 254,683 187,260 104,489 35,219 556,464 793,722 - 46,129 77,791 46,129 107,041 5,120 527,665 4,938 15,919 257,728 518,381 24,304 381 119,142	5,551 866 (Note 1) 0.099 100 2,050 1,100 13 114 (Note 1) (Note 1) 0.3 1 0.001 0.001 4,560 1,091 1,209 6,000 6 12 30,374 39,513 233 1,500 2,560 1,500 4,669 1,200 17,744 150 - - 20,215 300 100 10,475	100.00% 88.60% 50.02% 99.00% 50.10% 50.62% 52.38% 58.18% 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% 51.37% 35.20% 35.09% 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%	155,695 36,430 135,141 15,813 26,146 25,579 15,391 (138) 5,327 (16,529) 13,364 (53,126) 10 - 153 140,792 64,279 363,551 174,992 297,042 66,337 577,595 751,224 525,823 101,727 425 139,833 616,072 39,968 492,396 (2,887) 20,139 286,059 285,888 3,407 6,636 214,783	6,082 3,674 47,851 3,534 1,116 (2,251) 5,273 - 3,674 800 13,604 (298) (2,251) - 3,534 6,079 8,082 3,793 2,641 4,782 6,594 6,284 90,446 194,951 26,561 (2,427) 26,561 49,242 (456) 38,873 1,360 5,532 25,153 11,488 592 (1,513) 39,470	- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -	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 Associate Affiliates Affiliates

～112～

Investor	Investee	Location	Main Businesses and Products	Original investment Amount	Original investment Amount	Balances as of June 30, 2021	Balances as of June 30, 2021	Balances as of June 30, 2021	Net Income (Loss) of the Investee	Investment Income (Loss)	Note
				June 30, 2021	December 31, 2020	Shares	Percentage of Ownership	Carrying Value
Sysage Sysage Sysage Sysage Sysage Sysage Sysage Epic Cloud Epic Cloud AdvancedTEK Statnic Topview Messoa Simula Simula Simula Simula Simula Aspire Asia Inc. Aspire Asia Inc. GSC GSC Alpha Alpha Alpha Alpha Alpha Alpha Alpha Alpha Enrich Investment Enrich Investment Hitron Technologies Hitron Technologies Hitron Technologies Hitron Technologies	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. Dataa Messoa Messoa Technologies Inc. (USA) Simula Technology Corp. Simula Company Limited Aspire Asia Inc. Mcurich Inc. Action Star Technology Co.,Ltd. Aspire Electronics Corp. Simula Company Limited Bigmin Bio-Tech Company Ltd. E-Strong Medical Technology Co., Ltd. Alpha Holdings Alpha Solutions Alpha USA Alpha HK ATS Enrich Investment Hitron Technologies D-Link Asia Interactive Digital Transnet Corporation Hitron Samoa Interactive Digital Hitron Europe Hitron Americas	Taiwan Taiwan Taiwan Taiwan South Africa Taiwan Taiwan Taiwan Taiwan Taiwan Taiwan Taiwan USA USA Hong Kong British Virgin Islands Taiwan Taiwan Samoa Hong Kong Taiwan Taiwan Cayman Japan USA Hong Kong USA Taiwan Taiwan Singapore Taiwan Taiwan Samoa Taiwan The Netherlands USA	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 Market research, marketing consultant and data processing service Sales, and import and export of video surveillance cameras Sales, and import and export of video surveillance cameras and maintenance services Sales in North America Investment and holding activity Investment and holding activity Sales of electronic products Manufacture of computer and periherals products Investment and holding activity Investment and holding activity Sale of alcohol and medical disinfectant Manufacture of alcohol and dialysate Investment and holding activity Sale of network equipment, components and technical services Sale, marketing and procurement service in USA Investment and holding activity Post-sale service Investment and holding activity Marketing on system integration and production and sales of telecommunication products Investment in manufacturing business Telecommunication and broadband network system services Operating in network communication products, provide system support services, integrated supply and import and export of network equipment International trade Telecommunication and broadband network system services International trade International trade	1,687 50,000 94,547 30,091 251,872 69,983 5,000 172 40 2,060 100 23,879 32,859 15,699 187,625 286,764 15,029 983,857 95,099 181,726 20,450 281,872 203,372 5,543 51,092 3,143,628 260,497 240,000 4,811,000 1,692,805 189,523 50,000 669,031 167,026 59,604 90,082	1,687 9,400 94,547 30,091 - - - - - - - 23,879 32,859 15,699 187,625 286,764 15,029 - 95,099 181,726 20,450 281,872 203,372 5,543 51,092 3,143,628 260,497 240,000 4,811,000 1,692,805 189,523 50,000 669,031 167,026 59,604 90,082	225 5,000 5,643 1,153 - 1,754 500 10 1 200 10 1,945 - 500 50,500 9,403 645 32,001 2,188 46,033 1,500 22,200 6,464 1 1,500 780,911 8,100 24,000 200,000 86,946 2,575 5,000 22,300 16,703 15 300	38.01% 100.00% 23.58% 34.09% 100.00% 34.99% 29.41% 0.08% 0.02% 100.00% 100.00% 40.78% 100.00% 100.00% 52.31% 100.00% 30.00% 59.35% 95.10% 47.69% 100.00% 66.57% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 62.24% 100.00% 6.65% 100.00% 100.00% 43.10% 100.00% 100.00%	773 33,522 95,980 33,075 315,317 88,121 4,487 172 40 2,764 100 1,933 19,921 26,679 157,717 158,958 566 978,236 15,667 143,767 29,901 204,969 (35,461) 20,163 141,897 2,149,627 167,059 150,057 3,893,380 1,658,513 120,870 28,733 601,299 565,856 7,750 141,433	118 (13,024) (13,772) 10,300 19,298 (17,525) (1,744) 39,470 (17,525) 253 - 421 2,034 3,231 1,122 (769) (4,404) 2,264 (1,371) 1,122 11,730 14,270 (11,670) 49 6,462 (31,219) 132 (2,570) 20,642 (95,467) 85,472 (6,789) (132,996) 85,472 40,391 1,442	- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -	Associate Affiliates Associate Affiliates Affiliates Affiliates Associate Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Associate Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates

～113～

Investor	Investee	Location	Main Businesses and Products	Original investment Amount	Original investment Amount	Balances as of June 30, 2021	Balances as of June 30, 2021	Balances as of June 30, 2021	Net Income (Loss) of the Investee	Investment Income (Loss)	Note
				June 30, 2021	December 31, 2020	Shares	Percentage of Ownership	Carrying Value
Hitron Technologies Hitron Technologies	Innoauto Technologies Hitron Vietnam	Taiwan Vietnam	Investment Production and sale of broadband telecommunications products	65,000 1,218,995	50,000 550,355	6,500 -	100.00% 100.00%	(6,322) 1,098,214	(13,406) (53,720)	- -	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.

(Note 3) The Company lost significant influence over AU in May 2021 and therefore reclassified the investment in AU from investments accounted for using the equity method to financial assets at fair value through other comprehensive income－non-current.

～114～

QISDA CORPORATION AND SUBSIDIARIES Information on investments in Mainland China

For the six months ended June 30, 2021

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

Table 10

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

Investee Company Name	Main Businesses and Products	Total Amount of Paid-in Capital	Method of Investment	Accumulated Outflow of Investment from Taiwan as of January 1, 2021	Investment Flows	Investment Flows	Accumulated Outflow of Investment from Taiwan as of June 30, 2021	Net Income (Loss) of Investee	% of Ownership of Direct or Indirect Investment	Investment Income (Loss)	Carrying Value as of June 30, 2021	Accumulated Inward Remittance of Earnings as of June 30, 2021
					Outflow	Inflow
Qisda (Suzhou) Co., Ltd. (“QCSZ”) Qisda Electronics (Suzhou) Co., Ltd. (“QCES”) BenQ Medical (Shanghai) Co., Ltd. (“BMSH”) Qisda Optronics (Suzhou) Co., Ltd. (“QCOS”) Qisda Precision Industry (Suzhou) Co., Ltd. (“QCPS”) Qisda (Shanghai) Co., Ltd. (“QCSH”) BenQ Co., Ltd. (“BQC”) BenQ Intelligent Technology (Shanghai) Co., Ltd. (“BQC_RO”) BenQ Technology (Shanghai) Co., Ltd. (“BQls”) ShengCheng Trading(Shanghai) Co., Ltd. (“BQsha EC2”) Nanjing BenQ Hospital Co., Ltd. (“NMH”) Suzhou BenQ Hospital Co., Ltd. (“SMH”) Suzhou BenQ Investment Co., Ltd. (“BIC”) BenQ Hospital Management Consulting (Nanjing) Co., Ltd. (“NMHC”) Guangxi Youshan Medical Technology Co.,Ltd.(“Youshan”) Nanjing Silvertown Health & Development Co., Ltd. (“NSHD”) Guru Systems (Suzhou) Co., Ltd. (“GSS”) BenQ Biotech (Shanghai) Co., Ltd. (“BBC”)	Manufacture of monitors and communication devices Manufacture of monitors Sale of medical consumable and equipment Manufacture of projectors Manufacture of plastic parts Manufacture of monitors Lease of real estate Sales and maintenance of electronic products in China market Sales of brand-name electronic products Sales of brand-name electronic products Hospital Hospital Investment and holding activity Medical management consulting Medical services Medical services R&D and sales of computer information systems Manufacture and sales of medical consumables and equipment	2,062,232 (USD 74,000) 37,900 (USD 1,360) 328,842 (USD 11,800) 347,235 (USD 12,460) 1,853,222 (USD 66,500) 139,340 (USD 5,000) 2,229,440 (USD 80,000) 83,604 (USD 3,000) 27,868 (USD 1,000) 2,787 (USD 100) 4,793,714 (USD 172,015) 2,592,887 (CNY 601,975) 27,868 (USD 1,000) 836,040 (USD 30,000) 430,730 (CNY 100,000) 367,858 (USD 13,200) 646,095 (CNY 150,000) 25,844 (CNY 6,000)	(Note 1) (Note 1) (Note 9) (Note 1) (Note 1) (Note 1) (Note 1) (Note 1) (Note 10) (Note 1) (Note 11) (Note 1) (Note 1) (Note 8) (Note 1) (Note 13) (Note 1) (Note 2)	1,978,628 (USD 71,000) - 328,842 (USD 11,800) 347,235 (USD 12,460) 1,337,664 (USD 48,000) 132,373 (USD 4,750) 2,229,440 (USD 80,000) 83,604 (USD 3,000) 5,574 (USD 200) - 4,664,992 (USD 167,396) 2,480,141 (USD 88,996) 27,868 (USD 1,000) - - 270,320 (USD 9,700) 732,241 (CNY 170,000) -	- - - - - - - - - - 278,680 (USD 10,000) - - - - - 150,756 (CNY 35,000) -	- - - - - - - - - - - - - - - - - -	1,978,628 (USD 71,000) - 328,842 (USD 11,800) 347,235 (USD 12,460) 1,337,664 (USD 48,000) (Note 7) 132,373 (USD 4,750) 2,229,440 (USD 80,000) 83,604 (USD 3,000) 5,574 (USD 200) (Note 6) - 4,943,672 (USD 177,396) 2,480,141 (USD 88,996) 27,868 (USD 1,000) - (Note 11) 270,320 (USD 9,700) (Note 5) 882,997 (CNY 205,000) (Note 13)	(274,594) 92,142 (148) 121,834 4,934 (8,369) 80,571 283,515 15,204 8,456 49,060 128,963 81 (200) (14,170) 4,384 (19,726) (48,904)	100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 70.05% 70.05% 70.05% 70.05% 13.19% 100% 70.00% 38.50%	(274,594) (Note 3) (148) (Note 4) 92,142 (Note 4) 121,834 (Note 3) (8,369) (Note 4) 4,934 (Note 4) 80,571 (Note 3) 283,515 (Note 3) 8,456 (Note 4) 15,204 (Note 4) 90,339 (Note 3) 34,367 (Note 3) (140) (Note 4) 57 (Note 4) (1,869) (Note 4) (19,726) (Note 4) (35,369) (Note 4) 1,688 (Note 4)	164,784 (Note 14) 9,226,583 1,476,378 35,883 3,806,653 389,964 (1,356,954) 2,909,346 1,001,112 34,015 49,819 2,018,453 633,063 16,612 582,942 664,465 59,064 17,029	406,956 (USD 14,603) - - - - - - - - - - - - - - - - -

～115～

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 June 30, 2021	Net Income (Loss) of Investee	% of Ownership of Direct or Indirect Investment	Investment Income (Loss)	Carrying Value as of June 30, 2021	Accumulated Inward Remittance of Earnings as of June 30, 2021
					Outflow	Inflow
Wangcheng Medical Technology （Chengdu）Co., Ltd (“Wangcheng”) Shanghai Filter Technology Co.,Ltd Guigang Donghui Medical Investment Co., Ltd.	Medical services Medical services Medical services	8,615 (CNY 2,000) 603,022 (CNY 140,000) 2,363,226 (CNY548,656)	(Note 13) (Note 13) (Note 12)	- - -	- - -	- - -	(Note 13) (Note 13) (Note 12)	(1,167) (15) -	49.00% 70.00% 9.89%	(572) (Note 4) (11) (Note 4) - (Note 4)	78,382 299,977 (Note 14) 3,844	- - -

• (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$27.868 and CNY$1=NT$4.3073

(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:

2. Limits on investments in Mainland China:
Accumulated Investment in Mainland China as of June 30, 2021	Investment Amounts Authorized by Investment Commission, MOEA	Upper Limit on Investment
15,048,357 (USD 508,302 and CNY 205,000)	15,960,199 (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.

3. 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.

～116～

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 June 30, 2021	Net Income (Loss) of Investee	% of Ownership of Direct or Indirect Investment	Investment Income (Loss)	Carrying Value as of June 30, 2021	Accumulated Inward Remittance of Earnings as of June 30, 2021
					Outflow	Inflow
Daxon Biomedical (Suzhou) Co., Ltd. (“DTB”) BenQ Material (Suzhou) Co., Ltd. (“BMS”) BenQ Materials (Wuhu) Co., Ltd. Suzhou Sigma Medical Supplies Co., Ltd. (“SMSZ”) BenQ Materials Medical Supplies (Suzhou) Co., Ltd. (“BMM”)	Sales of optoelectronics and medical consumables 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	808,172 (USD29,000) 47,380 (CNY11,000) 344,584 (CNY80,000) 64,610 (CNY15,000) 44,366 (USD1,592)	(Note 4) (Note 4) (Note 3) (Note 1) (Note 1)	808,172 (USD29,000) - 172,292 (CNY 40,000) - 44,366 (USD1,592)	- - - - -	- - - - -	808,172 (USD 29,000) - 172,292 (CNY 40,000) (Note 5) 44,366 (USD1,592) -	5,733 4,815 53,823 (618) (3,847)	100.00% 100.00% 100.00% 100.00% 100.00%	5,733 (Note 2) 4,815 (Note 2) 51,724 (Note 2) (618) (Note 2) (3,847) (Note 2)	1,888,582 (Note 6) (3,438) (Note 6) (356,068) (Note 6) 55,846 (Note 6) 26,218 (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 June 30, 2021	Investment Amounts Authorized by Investment Commission, MOEA	Upper Limit on Investment
BMC	980,464 (USD29,000 and CNY40,000)	1,092,238 (USD29,000 and CNY65,950)	(Note 7)
SMS	44,366 (USD1,592)	44,366 (USD1,592)	80,000

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

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

• (Note 3) Direct investment in Mainland China.

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

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

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

• (Note 7) Since BenQ Material Corporation has obtained the Certificate of Headquarter Operation, there is no upper limit on investment in Mainland China.

• (Note 8) The above amounts were translated into New Taiwan dollars at the exchange rate of US$1＝NT$27.868 and CNY$1=NT$4.3073.

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.

～117～

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 June 30, 2021	Net Income (Loss) of Investee	% of Ownership of Direct or Indirect Investment	Investment Income (Loss)	Carrying Value as of June 30, 2021	Accumulated Inward Remittance of Earnings as of June 30, 2021
					Outflow	Inflow
LILY Medical (Suzhou) Co., Ltd. BenQ Medical Technology (Shanghai) Ltd. (“BMTS”) TDX Medical Technology (Jiangsu)Co., Ltd.	Sales of medical consumables and equipment Agency of international and entrepot trade business Sales of medical consumables and equipment	27,868 ( USD 1,000) 5,852 ( USD 210) 86,146 (CNY 20,000)	(Note 2) (Note 1) (Note 2)	27,868 ( USD 1,000) 5,852 ( USD 210) 34,458 (CNY 8,000)	- - -	- - -	27,868 ( USD 1,000) 5,852 ( USD 210) 34,458 (CNY 8,000)	(367) (258) (136)	100.00% 100.00% 40.00%	(367) (258) (55)	10,427 (Note 3) 2,519 (Note 3) 29,804	- - -

(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$27.868 and CNY$1=NT$4.3073.

2. Limits on investments in Mainland China:

Investee Company Name	Accumulated Investment in Mainland China as of June 30, 2021	Investment Amounts Authorized by Investment Commission, MOEA	Upper Limit on Investment
BMTC	62,326 (USD 1,000 and CNY 8,000)	78,783 (USD 2,827)	610,523
LILY	5,852 (USD 210)	5,852 (USD 210)	105,349

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.

～118～

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 June 30, 2021	Net Income (Loss) of Investee	% of Ownership of Direct or Indirect Investment	Investment Income (Loss)	Carrying Value as of June 30, 2021	Accumulated Inward Remittance of Earnings as of June 30, 2021
					Outflow	Inflow
Partner Tech (Shanghai) Co.,Ltd.	Sales, import and export of electronic products	97,538 ( USD 3,500)	(Note 1)	97,538 ( USD 3,500)	-	-	97,538 ( USD 3,500)	(2,002)	100.00%	(2,002) (Note 2)	72,883	-

(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$27.868. (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 June 30, 2021	Investment Amounts Authorized by Investment Commission, MOEA	Upper Limit on Investment
PTT	97,538 (USD 3,500)	192,456 (USD 6,906)	575,940

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.

～119～

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 June 30, 2021	Net Income (Loss) of Investee	% of Ownership of Direct or Indirect Investment	Investment Income (Loss)	Carrying Value as of June 30, 2021 (Note 7)	Accumulated Inward Remittance of Earnings as of June 30, 2021
					Outflow	Inflow
Yan Ying Hao Trading (ShenZhen) Co., Ltd. (“DYTH”) Yan Tong Infotech (Dongguan) Co., Ltd. (“DYTI”)	Wholesale, import and export of industrial motherboards and component Manufacture and sales of industrial motherboards and component	69,670 (USD2,500) 13,934 (USD500)	(Note 1) (Note 1)	- -	- -	- -	- -	4,951 (761)	100.00% 100.00%	(761) (Note 2) 4,951 (Note 2)	51,886 40,009	33,306 -

2. Limits on investments in Mainland China:

Investee Company Name	Accumulated Investment in Mainland China as of June 30, 2021	Investment Amounts Authorized by Investment Commission, MOEA	Upper Limit on Investment
DFI	- (Note 3)	58,105 (USD 2,085) (Notes 5 and 6)	3,245,864 (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 amount. (Note 6) The earnings that has been remitted to DFI by DYTI was approved by the Investment Commission of the MOEA in February 2017 and had been deducted in the investment amount. (Note 7) The above amounts 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$27.868

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.

～120～

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 June 30, 2021	Net Income (Loss) of Investee	% of Ownership of Direct or Indirect Investment	Investment Income (Loss)	Carrying Value as of June 30, 2021 (Note 5)	Accumulated Inward Remittance of Earnings as of June 30, 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	46,129 10,912	(Note 2) (Note 1)	46,129 -	- -	- -	46,129 -	(3,095) 26,561	100.00% 100.00%	26,561 (Note 3) (3,095) (Note 3)	139,828 (1,753)	- -
Investment Amounts Authorized by Investment Commission, MOEA Upper Limit on Investment 2. Limits on investments in Mainland China: Investee Company Name AEWIN 46,129 55,736 671,184 (USD 2,000) (Note 4) Accumulated Investment in Mainland China as of June 30, 2021
Investee Company Name		Accumulated Investment in Mainland China as of June 30, 2021		Investment Amounts Authorized by Investment Commission, MOEA			Upper Limit on Investment
AEWIN		46,129		55,736 (USD 2,000)			671,184 (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$27.868

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.

～121～

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 June 30, 2021	Net Income (Loss) of Investee	% of Ownership of Direct or Indirect Investment	Investment Income (Loss)	Carrying Value as of June 30, 2021 (Note 5)	Accumulated Inward Remittance of Earnings as of June 30, 2021
					Outflow	Inflow
Tianjin Ace Pillar Co., Ltd. Xuchang Ace AI Equipment Co., Ltd. Suzhou Super Pillar Automation Equipment Co., Ltd. Advancedtek Ace (TJ) Inc. Grace Transmission (Tianjin) Co., Ltd.	Sales of automation mechanical transmission system and component Manufacture of automation mechanical transmission system and component Wholesale of industrial robot and component Manufacture of automation mechanical transmission system and component Electronic system integration	952,528 (USD 34,180) 7,193 (CNY 1,670) 8,360 (USD 300) 40,409 (USD 1,450) 8,360 (USD 300)	(Note 1 and 2) (Note 1) (Note 1) (Note 1) (Note 1)	54,343 (USD 1,950) 4,459 (USD 160) 4,180 (USD 150) - -	- - - - -	- - - - -	54,343 4,459 (USD 160) 4,180 (USD 150) - -	1,406 1,360 8,610 (135) 48,258	100.00% 100.00% 100.00% 100.00% 100.00%	48,258 (Note 3) 1,406 (Note 3) 1,360 (Note 3) 8,610 (Note 3) (135) (Note 3)	566,935 39,464 (2,912) 95,809 2,710	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 June 30, 2021	Investment Amounts Authorized by Investment Commission, MOEA	Upper Limit on Investment
ACE	142,656 (USD 5,119)	142,656 (USD 5,119)	1,193,918 (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$27.868 and CNY$1=NT$4.3073.

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.

～122～

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 June 30, 2021	Net Income (Loss) of Investee	% of Ownership of Direct or Indirect Investment	Investment Income (Loss) (Note 3)	Carrying Value as of June 30, 2021 (Note 2)	Accumulated Inward Remittance of Earnings as of June 30, 2021
					Outflow	Inflow
Data Image (Suzhou) Corporation	Manufacture and sales of LCD	454,248 (USD16,300)	(Note 1)	436,246 (USD15,654)	-	-	436,246 (USD15,654)	11,689	100.00%	11,689	284,158	-

2. Limits on investments in Mainland China:

Accumulated Investment in Mainland China as of June 30, 2021	Investment Amounts Authorized by Investment Commission, MOEA	Upper Limit on Investment
USD 15,654	USD 16,952	683,340 (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$27.868

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.

～123～

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 June 30, 2021	Net Income (Loss) of Investee	% of Ownership of Direct or Indirect Investment	Investment Income (Loss) (Note 3)	Carrying Value as of June 30, 2021 (Note 2)	Accumulated Inward Remittance of Earnings as of June 30, 2021
					Outflow	Inflow
K2 (Shanghai) International Medical Inc.	Sales of medical consumables	34,835 (USD 1,250)	(Note 1)	22,294 ( USD 800)	31,574 ( USD 1,133)	-	53,868 ( USD 1,933)	8,311	100.00%	5,455	68,866	-

2. Limits on investments in Mainland China:

Accumulated Investment in Mainland China as of June 30, 2021	Investment Amounts Authorized by Investment Commission, MOEA	Upper Limit on Investment
53,868 (USD 1,933)	53,868 (USD 1,933)	323,389 (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$27.868

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.

～124～

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 June 30, 2021	Net Income (Loss) of Investee	% of Ownership of Direct or Indirect Investment	Investment Income (Loss)	Carrying Value as of June 30, 2021 (Note 3)	Accumulated Inward Remittance of Earnings as of June 30, 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	(2,547) 18,919	100.00% 51.18%	18,919 (Note 2) (1,304) (Note 2)	178,875 15,663	- -

2. Limits on investments in Mainland China:

2. Limits on investments in Mainland China:
Investee Company Name	Accumulated Investment in Mainland China as of June 30, 2021	Investment Amounts Authorized by Investment Commission, MOEA	Upper Limit on Investment
Simula	257,755	307,817	1,298,516

• (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.

～125～

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 June 30, 2021	Net Income (Loss) of Investee	% of Ownership of Direct or Indirect Investment	Investment Income (Loss) (Note 2)	Carrying Value as of June 30, 2021 (Note 8)	Accumulated Inward Remittance of Earnings as of June 30, 2021
					Outflow	Inflow
Alpha Networks (Dongguan) Co., Ltd. Alpha Networks (Chengdu) Co.,Ltd. Alpha Networks (Changshu) Co., Ltd. Mirac Networks (Dongguan) Co.,Ltd.	Production and sale of network products Research and development of network products Production and sale of network products Production and sale of network products	420,426 741,084 307,326 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	(7,324) (100,902) 4,637 8,455	100.00% 100.00% 100.00% 100.00%	4,637 (100,902) 8,455 (7,324)	561,736 940,480 303,819 1,218,021	- - - -

2. Limits on investments in Mainland China:

Investee Company Name	Accumulated Investment in Mainland China as of June 30, 2021	Investment Amounts Authorized by Investment Commission, MOEA	Upper Limit on Investment
Alpha	3,261,784 (Note 3、4and 7)	4,123,685	(Note 5)

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

• (Note 2) Investment income or loss was recognized based on the 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.

～126～

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 June 30, 2021	Net Income (Loss) of Investee	% of Ownership of Direct or Indirect Investment	Investment Income (Loss) (Note 2)	Carrying Value as of June 30, 2021 (Note 5)	Accumulated Inward Remittance of Earnings as of June 30, 2021
					Outflow	Inflow
Jietech Suzhou Hitron Suzhou Hwa Chi Technologies	Sale of broadband network products and related services Production and sale of broadband telecommunications products Technical consultation on electronic communication, technology research and development, maintenance and after-sale service	641,763 57,473 5,814	(Note 1) (Note 1) (Note 1)	641,763 57,473 12,048	- - -	- - -	641,763 57,473 12,048	(865) (128,598) (1,074)	100.00% 100.00% 43.10% (Note 3 and 4)	(132,134) (862) 463	586,547 29,792 6,199	- - 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 June 30, 2021	Investment Amounts Authorized by Investment Commission, MOEA	Upper Limit on Investment
Hitron Technologies	711,284	711,284	2,792,312

• (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.

～127～

M.Topview Optronics Corporation

1. Information on investments in Mainland China

Investee Company Name	Main Businesses and Products	Total Amount of Paid-in Capital	Method of Investment	Accumulated Outflow of Investment from Taiwan as of January 1, 2021	Investment Flows	Investment Flows	Accumulated Outflow of Investment from Taiwan as of June 30, 2021	Net Income (Loss) of Investee	% of Ownership of Direct or Indirect Investment	Investment Income (Loss)	Carrying Value as of June 30, 2021	Accumulated Inward Remittance of Earnings as of June 30, 2021
					Outflow	Inflow
-	-	-	-	-	-	-	-	-	-	-	-	-

2. Limits on investments in Mainland China:

Investee Company Name	Accumulated Investment in Mainland China as of June 30, 2021	Investment Amounts Authorized by Investment Commission, MOEA (Note 1)	Upper Limit on Investment (Note 2)
Topview	5,072 (USD 182)	(USD 182) 5,072	659,137

(Note 1) The amount USD $182 thousands is the authorized amount for the liquidated investee in the previous year, which the cacellation has not been applied. (Note 2) Pursuant to “Principle of Investment or Technical Cooperation in Mainland China”, investment amounts in Mainland China shall not exceed the 60% net worth of the company. (Note 3) The above amounts were translated into New Taiwan dollars at the exchange rate of US$1＝NT$27.868

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.

～128～