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 Nine Months Ended September 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 10～21 21 21～86 87～91 92 93 93 93 93～94 94、96～110 94、111～116 95、117～130 95 95

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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 September 30, 2021 and 2020, and the related consolidated statements of comprehensive income (loss) for the three-month periods ended September 30, 2021 and 2020, and for the nine-month periods ended September 30, 2021 and 2020, as well as the consolidated statements of changes in equity and cash flows for the nine-month periods ended September 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 $24,658,161 thousand and $21,855,843 thousand, constituting 13.62% and 13.49% of the consolidated total assets; as well as the total liabilities amounting to $9,834,892 thousand and $9,368,861 thousand, constituting 8.08% and 9.10% of the consolidated total liabilities as of September 30, 2021 and 2020, respectively; and also, the total comprehensive income amounting to $509,685 thousand, $452,271 thousand, $936,082 thousand and $193,295 thousand, constituting 35.54%, 17.44%, 17.56% and 5.64% of the consolidated total comprehensive income for the threemonth periods ended September 30, 2021 and 2020, and for the nine-month periods ended September 30, 2021 and 2020, respectively.

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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 $923,588 thousand and $1,305,015 thousand as of September 30, 2021 and 2020, respectively, and the share of profits (losses) of associates and joint ventures amounted to $7,134 thousand, $(9,492) thousand, $19,756 thousand and $9,663 thousand for the three-month periods ended September 30, 2021 and 2020, and for the nine-month periods ended September 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 September 30, 2021 and 2020, and its consolidated financial performance for the three-month periods ended September 30, 2021 and 2020 and for the nine months periods ended September 30, 2021 and 2020, as well as its consolidated cash flows for the nine-month periods ended September 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 $5,701,710 thousand and $11,807,079 thousand, constituting 3.15% and 7.29% of the consolidated total assets as of September 30, 2021 and 2020, respectively, and the total operating revenues amounting to $1,576,203 thousand, $2,732,288 thousand, $3,547,227 thousand and $7,964,321 thousand, constituting 2.76%, 5.29%, 2.16% and 5.92% of the consolidated operating revenues for the threemonth periods ended September 30, 2021 and 2020, and for the nine-month periods ended September 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) November 12, 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 September 30, 2021 and 2020

QISDA CORPORATION AND SUBSIDIARIES

Consolidated Balance Sheets

September 30, 2021, December 31 and September 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(d) and (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	September 30, 2021 Amount % $ 16,830,176 9 176,982 - 100,959 - 30,472,923 17 3,257,876 2 733,201 - 301,406 - 47,994,397 27 3,299,941 2 6,720,048 4 326,529 - 110,214,438 61 328,257 - 14,068,984 8 3,320,624 2 31,855,087 17 4,491,047 2 3,434,863 2 10,201,865 6 1,670,551 1 196,872 - 1,234,776 1 70,802,926 39 $ 181,017,364 100	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	September 30, 2020 Amount % 17,902,675 11 278,136 - 130,260 - 33,292,563 21 2,638,561 2 647,137 1 298,366 - 32,710,990 20 3,217,804 2 3,730,292 2 120,715 - 94,967,499 59 26,350 - 1,433,139 1 15,318,266 9 29,545,527 18 4,860,885 3 3,557,220 2 9,268,933 6 1,840,338 1 181,081 - 981,898 1 67,013,637 41 161,981,136 100 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) 2230 Current tax liabilities 2260 Liabilities related to non-current assets held for sale (note 6(g)) 2300 Other current liabilities 2365 Refund liabilities—current 2321 Current portion of bonds payable (notes 6(p)) 2322 Current portion of long-term debt (notes 6(o) and 8) 2280 Lease liabilities－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 (notes 6(b) and (p)) 2530 Bonds payable (notes 6(p) and 8) 2540 Long-term debt (notes 6(o) and 8) 2580 Lease liabilities－non-current (notes 6(q) and 7) 2550 Provisions－non-current (notes 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	September 30, 2021		December 31, 2020		September 30, 2020 Amount % 24,118,555 15 51,027 - 2,074,188 2 34,265,044 21 1,998,928 1 10,353,411 6 51,340 - 1,202,855 1 - - 843,514 1 2,106,478 1 - - 411,387 - 466,317 - 774,752 1 78,717,796 49 90,514 - 578,356 - 17,188,907 11 1,674,244 1 660,916 - 1,525,746 1 2,535,456 2 24,254,139 15 102,971,935 64 19,667,820 12 1,905,219 1 14,420,088 9 (1,237,048) (1) 34,756,079 21 24,253,122 15 59,009,201 36 161,981,136 100
				Amount %		Amount %
						21,131,930 12 139,661 - 1,862,107 1 38,398,784 23 2,127,536 1 12,015,217 7 16,151 - 1,316,090 1 358,207 - 796,592 1 2,340,052 1 526,507 - 536,537 - 455,040 - 808,823 1 82,829,234 48 78,123 - - - 22,366,798 13 1,565,596 1 687,601 - 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 nine months ended September 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), (l), (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),(aa) and (ab) and 7) 7050 Finance costs (notes 6(q) and (aa) and 7) 7060 Share of profits (losses) of associates and joint ventures (note 6(h)) Total non-operating income and loss Income before income tax 7950 Less: Income tax expense (note 6(u)) Net income Other comprehensive income (loss): 8310 Items that will not be reclassified subsequently to profit or loss 8316 Unrealized gains (losses) from investments in equity instruments measured at fair value through other comprehensive income (notes 6(v) and (ab)) 8320 Share of other comprehensive income (loss) of associates (notes 6(h) and (v)) 8349 Less: income tax related to items that will not be reclassified subsequently to profit or loss (note 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 (loss) 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 months ended September 30	For the three months ended September 30	For the nine months ended September 30 2021 2020 Amount % Amount % 164,088,700 100 134,567,447 100 (140,013,337) (85) (115,890,885) (86) 24,075,363 15 18,676,562 14 (9,427,195) (6) (7,527,325) (6) (4,440,558) (3) (3,264,144) (2) (4,646,253) (3) (3,375,471) (3) 45,267 - 12,731 - (18,468,739) (12) (14,154,209) (11) 5,606,624 3 4,522,353 3 203,787 - 228,581 - 374,274 - 148,696 - 3,811,196 2 1,276,211 1 (506,480) - (602,064) - 1,485,352 1 (156,240) - 5,368,129 3 895,184 1 10,974,753 6 5,417,537 4 (2,024,701) (1) (1,335,063) (1) 8,950,052 5 4,082,474 3 (3,117,075) (2) (30,351) - (288) - (86,909) - 109,341 - - - (3,226,704) (2) (117,260) - (285,957) - (412,809) - (105,343) - (126,585) - - - - - (391,300) - (539,394) - (3,618,004) (2) (656,654) - 5,332,048 3 3,425,820 3 7,312,256 4 3,227,295 2 1,637,796 1 855,179 1 8,950,052 5 4,082,474 3 3,781,484 2 2,602,640 2 1,550,564 1 823,180 1 5,332,048 3 3,425,820 3 3.72 1.64 3.65 1.62	For the nine months ended September 30 2021 2020 Amount % Amount % 164,088,700 100 134,567,447 100 (140,013,337) (85) (115,890,885) (86) 24,075,363 15 18,676,562 14 (9,427,195) (6) (7,527,325) (6) (4,440,558) (3) (3,264,144) (2) (4,646,253) (3) (3,375,471) (3) 45,267 - 12,731 - (18,468,739) (12) (14,154,209) (11) 5,606,624 3 4,522,353 3 203,787 - 228,581 - 374,274 - 148,696 - 3,811,196 2 1,276,211 1 (506,480) - (602,064) - 1,485,352 1 (156,240) - 5,368,129 3 895,184 1 10,974,753 6 5,417,537 4 (2,024,701) (1) (1,335,063) (1) 8,950,052 5 4,082,474 3 (3,117,075) (2) (30,351) - (288) - (86,909) - 109,341 - - - (3,226,704) (2) (117,260) - (285,957) - (412,809) - (105,343) - (126,585) - - - - - (391,300) - (539,394) - (3,618,004) (2) (656,654) - 5,332,048 3 3,425,820 3 7,312,256 4 3,227,295 2 1,637,796 1 855,179 1 8,950,052 5 4,082,474 3 3,781,484 2 2,602,640 2 1,550,564 1 823,180 1 5,332,048 3 3,425,820 3 3.72 1.64 3.65 1.62
	2021 Amount % $ 57,201,144 100 (48,885,463) (85) 8,315,681 15 (3,299,640) (6) (1,491,164) (3) (1,541,984) (3) (1,120) - (6,333,908) (12) 1,981,773 3 64,021 - 318,633 1 268,679 - (170,935) - 85,334 - 565,732 1 2,547,505 4 (594,001) (1) 1,953,504 3 (3,243,553) (6) (25,768) - 8,547 - (3,277,868) (6) (113,821) - 4,010 - - - (109,811) - (3,387,679) (6) $ (1,434,175) (3) $ 1,395,322 2 558,182 1 $ 1,953,504 3 $ (1,963,921) (4) 529,746 1 $ (1,434,175) (3) $ 0.71 $ 0.70	2020 Amount % 51,694,509 100 (44,211,091) (86) 7,483,418 14 (2,802,219) (5) (1,316,243) (2) (1,356,024) (3) 41,676 - (5,432,810) (10) 2,050,608 4 67,173 - 90,843 - 646,539 1 (179,180) - 275,432 1 900,807 2 2,951,415 6 (473,311) (1) 2,478,104 5 (25,579) - 25,185 - - - (394) - 65,934 - 49,767 - - - 115,701 - 115,307 - 2,593,411 5 2,046,125 4 431,979 1 2,478,104 5 2,087,184 4 506,227 1 2,593,411 5 1.04 1.03	2021 Amount % 164,088,700 100 (140,013,337) (85) 24,075,363 15 (9,427,195) (6) (4,440,558) (3) (4,646,253) (3) 45,267 - (18,468,739) (12) 5,606,624 3 203,787 - 374,274 - 3,811,196 2 (506,480) - 1,485,352 1 5,368,129 3 10,974,753 6 (2,024,701) (1) 8,950,052 5 (3,117,075) (2) (288) - 109,341 - (3,226,704) (2) (285,957) - (105,343) - - - (391,300) - (3,618,004) (2) 5,332,048 3 7,312,256 4 1,637,796 1 8,950,052 5 3,781,484 2 1,550,564 1 5,332,048 3 3.72 3.65
				1.62

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 nine months ended September 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 Disposal of financial assets measured at fair value through other comprehensive income by subsidiaries 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 subsidiary Stock option compensation cost of subsidiaries Changes in non-controlling interests Balance at September 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 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 September 30, 2021					Attr	ibutable to sharehol	ders of the Company	ders of the Company	ders of the Company			Non- controlling interests 14,091,635	Total equity 48,035,594
	Common stock	Capital surplus 2,220,653		Reta	ined earnings			Other equity interest			Total equity of the Company 33,943,959
			Legal reserve 1,826,479	Special reserve	Unappropriated earnings 10,669,093	Total retained earnings	Foreign currency translation differences	Unrealized gains (losses) from financial assets measured at fair value through other comprehensive income 410,052	Remeasurements of defined benefit plans (361,048)	Total other equity interest (608,508)
	$ 19,667,820			168,422		12,663,994	(657,512)
	- -	- -	- -	- -	3,227,295 -	3,227,295 -	- (510,359)	- (114,296)	- -	- (624,655)	3,227,295 (624,655)	855,179 (31,999)	4,082,474 (656,654)
	-	-	-	-	3,227,295	3,227,295	(510,359)	(114,296)	-	(624,655)	2,602,640	823,180	3,425,820
	- - - - - - - - - - -	- - - (149,295) - - - (114,527) (51,612) - -	357,505 - - - - - - - - - -	- 440,086 - - - - - - - - -	(357,505) (440,086) (1,475,086) - 3,885 - - - - - -	- - (1,475,086) - 3,885 - - - - - -	- - - - - - - - - - -	- - - - (3,885) - - - - - -	- - - - - - - - - - -	- - - - (3,885) - - - - - -	- - (1,475,086) (149,295) - - - (114,527) (51,612) - -	- - - 4,630 - (953,794) 143,696 (357,512) 51,612 7,229 10,442,446	- - (1,475,086) (144,665) - (953,794) 143,696 (472,039) - 7,229 10,442,446
	$ 19,667,820	1,905,219	2,183,984	608,508	11,627,596	14,420,088	(1,167,871)	291,871	(361,048)	(1,237,048)	34,756,079	24,253,122	59,009,201
	$ 19,667,820	1,879,501	2,183,984	608,508	12,950,333	15,742,825	(1,413,867)	571,329	(422,107)	(1,264,645)	36,025,501	22,937,719	58,963,220
	- -	- -	- -	- -	7,312,256 -	7,312,256 -	- (304,372)	- (3,226,295)	- (105)	- (3,530,772)	7,312,256 (3,530,772)	1,637,796 (87,232)	8,950,052 (3,618,004)
	-	-	-	-	7,312,256	7,312,256	(304,372)	(3,226,295)	(105)	(3,530,772)	3,781,484	1,550,564	5,332,048
	- - - - - - - - - - -	- - - (96,938) - - - 7,946 - - -	455,392 - - - - - - - - - -	- 656,137 - - - - - - - - -	(455,392) (656,137) (2,950,173) - - - (628,589) - - - 178,405	- - (2,950,173) - - - (628,589) - - - 178,405	- - - - - - - - - - -	- - - - - - - - - - (178,405)	- - - - - - - - - - -	- - - - - - - - - - (178,405)	- - (2,950,173) (96,938) - - (628,589) 7,946 - - -	- - - 1,057 (1,242,494) 77,547 (1,322,949) (7,946) 5,849 1,218,159 -	- - (2,950,173) (95,881) (1,242,494) 77,547 (1,951,538) - 5,849 1,218,159 -
	$ 19,667,820	1,790,509	2,639,376	1,264,645	15,750,703	19,654,724	(1,718,239)	(2,833,371)	(422,212)	(4,973,822)	36,139,231	23,217,506	59,356,737

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

Cash flows from operating activities: Income before income tax Adjustments for: Adjustments to reconcile profit or loss: Depreciation Amortization Reversal of impairment loss Interest expense Interest income Dividend income Share-based compensation cost Share of losses (profits) of associates and joint ventures Loss on disposal of property, plant and equipment Gain on disposal of non-current assets and the related liabilities held for sale Gain on disposal of investments Impairment loss on intangible assets Impairment loss on investments accounted for using equity method Total adjustments to reconcile profit Changes in operating assets and liabilities: Changes in operating assets: Increase in financial assets at fair value through profit or loss Decrease in notes and accounts receivable Decrease (increase) in notes and accounts receivable from related parties Decrease (increase) in other receivables Decrease (increase) in other receivables from related parties Decrease (increase) in inventories Increase in other current assets Decrease in other non-current assets Net changes in operating assets Changes in operating liabilities: Decrease in financial liabilities at fair value through profit or loss Decrease in notes and accounts payable Increase (decrease) in accounts payable to related parties Increase in other payables to related parties Increase (decrease) in provisions Increase in contract liabilities Decrease in other payables and other current liabilities Decrease in other non-current liabilities Net changes in operating liabilities Total changes in operating assets and liabilities Total adjustments Cash provided by operations Interest received Dividends received Interest paid Income taxes paid Net cash provided by (used in) operating activities	For the nine months ended September 30	For the nine months ended September 30
	2021 $ 10,974,753 2,818,220 718,113 (45,267) 506,480 (203,787) (283,347) 5,849 (1,485,352) 30,091 (449,570) (2,978,378) - 6,632 (1,360,316) (33,399) 3,356,617 22,493 45,947 993 (11,619,075) (171,002) 186,795 (8,210,631) (87,445) (2,481,101) (646,715) 258,063 (47,067) 400,744 (961,259) (30,612) (3,595,392) (11,806,023) (13,166,339) (2,191,586) 152,906 474,217 (519,243) (1,257,544) (3,341,250)	2020 5,417,537 2,327,333 425,382 (12,731) 602,064 (228,581) (61,778) 7,229 156,240 1,385 - (691,648) 6,585 - 2,531,480 (105,304) 1,825,631 (242,755) (33,353) (13,916) 2,935,660 (477,821) 62,650 3,950,792 (13,671) (1,543,699) 154,638 33,952 180,950 41,234 (850,640) (23,682) (2,020,918) 1,929,874 4,461,354 9,878,891 207,128 367,769 (684,341) (716,313) 9,053,134

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 nine months ended September 30, 2021 and 2020

(Expressed in Thousands of New Taiwan Dollars)

	For the nine months ended September 30	For the nine months ended September 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	312,579	26,910
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)	(364,000)
Proceeds from disposal of financial assets at fair value through profit or	167,917	929,420
loss
Purchase of investments accounted for using the equity method	(9,480)	(651,301)
Proceeds from disposal of investments accounted for using the equity	1,166,166	20,000
method
Proceeds from disposal of subsidiaries	46,246	-
Proceeds from disposal of non-current assets and related liabilities held for	783,641	-
sale
Additions to property, plant and equipment	(3,931,051)	(2,815,662)
Proceeds from disposal of property, plant and equipment	299,104	77,408
Additions to intangible assets	(420,307)	(145,286)
Additions to investment property	-	(100)
Decrease (increase) in other financial assets	(4,060,372)	655,732
Net cash received (paid) for acquisition of subsidiaries	(702,074)	1,952,767
Net cash flows used in investing activities	(6,516,818)	(368,945)
Cash flows from financing activities:
Increase in short-term borrowings	13,831,174	5,549,460
Repayments of short-term borrowings	(3,862,683)	(4,441,237)
Increase in long-term debt	9,281,788	10,607,063
Repayments of long-term debt	(6,981,989)	(10,225,571)
Decrease in guarantee deposits received	(1,218,350)	(65,665)
Payment of lease liabilities	(396,549)	(345,603)
Cash dividends distributed to shareholders	(2,950,173)	(1,475,086)
Cash dividends paid to non-controlling interests	(1,242,494)	(953,794)
Acquisition of subsidiary’s interests from non-controlling interests	(1,956,754)	(472,039)
Proceeds from disposal of subsidiary’s interests (without losing control)	5,216	-
Capital injection from non-controlling interests	77,547	143,696
Net cash provided by (used in) financing activities	4,586,733	(1,678,776)
Effects of foreign exchange rate changes	(438,907)	116,755
Net increase (decrease) in cash and cash equivalents	(5,710,242)	7,122,168
Cash and cash equivalents at beginning of period	22,540,418	10,780,507
Cash and cash equivalents at end of period	$ 16,830,176	17,902,675

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 nine months ended September 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 manufacturing, sales and services of high-end monitors and opto-mechatronics products; the manufacturing, sales and services of smart business solution; the manufacturing, sales and services of medical equipment; 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 November 12, 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 QLLB	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”) Qisda (Suzhou) Co., Ltd. (“QCSZ”)	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 Manufacture of monitors and communication devices	Percentage of Ownership September 30, 2021 December 31, 2020 September 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 % 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 - % 100.00 % 100.00 % 100.00 -

(Continued)

11

QISDA CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

Name of Investor QLLB QLLB QCHK/ QCES QCHK QCHK QCHK APV/Darly 2/ Darly C The Company BenQ BenQ BenQ BenQ BenQ BenQ BenQ BenQ BenQ BenQ/Darly/ Darly 2 BenQ/BQP BQP BQP	Name of Investee 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”) 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”)	Main Business and Products 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 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	Percentage of Ownership September 30, 2021 December 31, 2020 September 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 - % 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 % 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)

12

QISDA CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

Name of Investor BQP BQP BQP BQP BQP BQP BQHK BQHK_HLD BQHK_HLD BQHK_HLD GSH GSH/APV BQA BenQ/BQL BQL BQL Joytech/ Vividtech BQmx/BQL BQE BQE BQE BQE BQE BQE BQE	Name of Investee 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”) 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”)	Main Business and 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 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	Percentage of Ownership September 30, 2021 December 31, 2020 September 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 - % 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 % 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

(Continued)

13

QISDA CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

Name of Investor BQE BQE APV/Darly 2 The Company/ BenQ/Darly/ APV/ Darly2 BBHC BBM BBM/BIC BBM BBM BBM The Company BBC BBC BBC BBC BenQ/APV/ Darly 2 BMTC BMTC BMTC BMTC	Name of Investee BenQ Nordic A.B. (“BQse”) 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”) Shanghai Zhenglang Medical Equipment Co., Ltd. (“Zhenglang”) BenQ Medical Technology Corp. (“BMTC”) Highview Investments Limited (“Highview”) Asiaconnect International Company (“Asiaconnect”) LILY Medical Corporation (“LILY”) BenQ AB DentCare Corporation (“BABD”)	Main Business and Products Sales of brand-name electronic products Providing administration and management service to affiliates Investment management consulting Investment and holding activity Investment and holding activity Medical services Medical services Medical management consulting Medical management consulting Investment and holding activity Manufacture and sales of medical consumables and equipment Medical services Medical services Medical services Sales of medical consumables and equipment Manufacture and sales of medical consumables and equipment Investment and holding activity Sales of medical consumables and equipment Sales of medical consumables and equipment Sales of medical consumables and equipment	Percentage of Ownership September 30, 2021 December 31, 2020 September 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 % 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 % 38.50 Notes 1, 3 and 5 % 49.00 % 49.00 - Notes 1, 3 and 5 % 70.00 % 70.00 - Notes 1 and 5 % 35.70 - - Notes 1, 3 and 12 % 54.96 % 54.96 % 54.96 - % 54.96 % 54.96 % 54.96 - % 54.82 % 54.82 % 54.82 - % 54.96 % 54.96 % 54.96 - % 48.36 % 48.36 % 48.36 Note 3

(Continued)

14

QISDA CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

Name of Investor BMTC BMTC Highview LILY BHS The Company/ BenQ/APV/ Darly C BMC BMC BMLB BMLB BMLB BMLB SGM The Company/ APV/ Darly2 PTT PTT/PTE PTT PTT	Name of Investee 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. (“SGM”) 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. (“SGS”) Partner Tech Corp. (“PTT”) 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”)	Main Business and Products 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 Investment and holding activity Sales, import and export of electronic products Sales, import and export of electronic products Software development and Sales of product	Percentage of Ownership September 30, 2021 December 31, 2020 September 30, 2020 Note % 54.96 % 54.96 % 54.96 - % 38.47 % 38.47 % 38.47 Notes 3 and 6 % 54.96 % 54.96 % 54.96 - % 54.96 % 54.96 % 54.96 - % 28.58 % 28.58 % 28.58 Note 3 % 43.56 % 43.56 % 43.56 Note 4 % 43.56 % 43.56 % 43.56 Note 4 % 43.56 % 43.56 % 43.56 Note 4 % 43.56 % 43.56 % 43.56 Note 4 % 43.56 % 43.56 % 43.56 Note 4 % 43.56 % 43.56 % 43.56 Note 4 % 43.56 % 43.56 % 43.56 Notes 4 and 5 % 43.56 % 43.56 % 43.56 Note 4 % 68.23 % 68.23 % 68.23 Note 1 % 68.23 % 68.23 % 68.23 Note 1 % 64.34 % 64.34 % 64.34 Note 1 % 68.23 % 68.23 % 68.23 Note 1 % 35.74 % 35.74 - Notes 1, 3 and 5

(Continued)

15

QISDA CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

Name of Investor PTT/WEBEST PTT PTT/WEBEST PTT PTE PTE PTME P&J P&S P&S PTT/WEBEST PTT The Company/ APV/ Darly2 DFI DFI DFI DFI DFI Yan Tong	Name of Investee 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”) DFI AMERICA, LLC DFI Co., Ltd. Yan Tong Technology (“Yan Tong”) Diamond Flower Information (NL) B.V. Brainstorm Corporation Yan Tong Infotech (Dongguan) Co., Ltd.	Main Business and Products Sales, import and export of electronic products Sales, import and export of electronic products Sales, import and export of electronic products Software development and Sales of product Sales, import and export of electronic products Sales, import and export of electronic products 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 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	Percentage of Ownership September 30, 2021 December 31, 2020 September 30, 2020 Note % 68.23 % 68.23 % 68.23 Note 1 % 34.13 % 34.13 % 34.13 Notes 1 and 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 Notes 1 and 3 % 23.21 % 23.21 % 23.21 Notes 1 and 3 % 68.23 % 68.23 % 68.23 Notes 1 and 9 % 68.23 % 68.23 % 68.23 Note 1 % 68.23 % 68.23 % 68.23 Note 1 % 68.23 % 68.23 % 68.23 Note 1 % 34.55 % 34.55 % 34.55 Notes 1 and 3 - % 68.23 % 68.23 Notes 1 and 8 % 55.09 % 55.09 % 55.09 - % 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 3 and 7 % 55.09 % 55.09 % 55.09 Note 1

(Continued)

16

QISDA CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

Name of Investor Yan Tong DFI AEWIN AEWIN WISE WAY BRIGHT PROFIT Aewin Beijing Technologies Co., Ltd. DFI ACE ACE/Proton ACE Cyber South Cyber South Cyber South Cyber South Cyber South	Name of Investee Yan Ying Hao Trading (ShenZhen) Co., Ltd Aewin Technologies Co., Ltd. (“AEWIN”) WISE WAY AEWIN TECH INC. BRIGHT PROFIT Aewin Beijing Technologies Co., Ltd. Aewin (Shenzhen) Technologies Co., Ltd. Ace Pillar Co., Ltd. (“ACE”) Cyber South Management Ltd. (“Cyber South”) 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.	Main Business and Products Wholesale, import and export of industrial motherboards and component Manufacture and sale of industrial motherboards and component Investment and holding activity Wholesale of computer peripheral products and software Investment and holding activity Wholesale of computer peripheral products and software Wholesale of computer peripheral products and software Sales of automation mechanical transmission system and component Investment and holding activity 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	Percentage of Ownership September 30, 2021 December 31, 2020 September 30, 2020 Note % 55.09 % 55.09 % 55.09 Note 1 % 28.31 % 28.01 % 27.95 Note 3 % 28.31 % 28.01 % 27.95 Note 3 % 28.31 % 28.01 % 27.95 Note 3 % 28.31 % 28.01 % 27.95 Note 3 % 28.31 % 28.01 % 27.95 Note 3 % 28.31 % 28.01 % 27.95 Note 3 % 26.48 % 18.49 % 17.86 Note 2 % 26.48 % 18.49 % 17.86 Note 2 % 26.48 % 18.49 % 17.86 Note 2 % 26.48 % 18.49 % 17.86 Note 2 % 26.48 % 18.49 % 17.86 Note 2 % 26.48 % 18.49 % 17.86 Note 2 % 26.48 % 18.49 % 17.86 Note 2 % 26.48 % 18.49 % 17.86 Note 2 % 26.48 % 18.49 % 17.86 Note 2

(Continued)

17

QISDA CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

Name of Investor Ace Tek The Company/ Darly2 K2 K2 K2 The Company/ APV/Darly2 DIC DMC The Company EASC The Company/ APV/ Darly2 Topview Messoa The Company Sysage/Epic Cloud Sysage Sysage Sysage	Name of Investee Advancedtek ACE (TJ) Inc. K2 International Medical Inc. (“K2”) K2 Medical (Thailand) Co., Ltd. K2 (Shanghai) International Medical Inc. (“K2SH”) PT. Frismed Hoslab Indonesia 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”) Corex (Pty) Ltd. (“PCX”)	Main Business and Products Electronic system integration Sales of medical consumables and equipment Sales of medical consumables Sales of medical consumables Sales of medical consumables Manufacture and sales of marine display modules Investment and holding activity Manufacture and sales of LCD 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 Telecommunications engineering Sales and import and export of electronic products	Percentage of Ownership September 30, 2021 December 31, 2020 September 30, 2020 Note % 26.48 % 18.49 % 17.86 Note 2 % 40.00 % 40.00 % 40.00 Notes 1 and 2 % 19.60 % 19.60 % 19.40 Notes 1 and 2 % 40.00 % 24.04 % 24.04 Notes 1 and 2 % 26.80 % 26.80 % 26.80 Notes 1, 2 and 6 % 38.35 % 38.35 % 38.33 Note 1 and 2 % 38.35 % 38.35 % 38.33 Note 1 and 2 % 38.35 % 38.35 % 38.33 Note 1 and 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 % 51.41 - - Notes 1 and 8

(Continued)

18

QISDA CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

Name of Investor 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. Simula Company Limited The Company/ APV GSC GSC The Company /APV/ Darly2/ Darly C	Name of Investee 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 Simula Technology (ShenZhen) Co., Ltd. Golden Spirit Co., Ltd. (“GSC”) Bigmin Bio-Tech Company Ltd. E-Strong Medical Technology Co., Ltd. (“ESM”) Alpha Networks Inc. (“Alpha”)	Main Business and Products Implementation of application software services Sales of network and information hardware and software. Market research, marketing consultant and big data cloud database services Implementation 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 Manufacture of electronic connector, socket and plastic hardware Sale of alcohol and medical disinfectant Sale of alcohol and medical disinfectant Manufacture of alcohol and dialysate Manufacture and sales of broadband products, wireless network products and computer network system equipment	Percentage of Ownership September 30, 2021 December 31, 2020 September 30, 2020 Note % 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 % 51.13 % 51.27 % 51.27 Note 6 % 51.13 % 51.27 % 51.27 Note 6 % 51.13 % 51.27 % 51.27 Note 6 % 30.34 - - 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 % 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 % 66.57 Notes 1 and 6 % 59.98 % 59.87 % 43.75 Note 6

(Continued)

19

QISDA CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

Name of Investor Alpha Alpha Alpha Alpha Alpha Alpha Alpha D-Link Asia D-Link Asia Alpha Dongguan Alpha HK Enrich Investment Enrich Investment Alpha Hitron Technologies Hitron Technologies Hitron Technologies Hitron Technologies	Name of Investee Alpha Holdings Inc. (“Alpha Holdings”) Alpha Solutions Co., Ltd. (“Alpha Solutions”) Alpha Networks Inc. (“Alpha USA”) Alpha Technical Services Inc. (“ATS”) Alpha Networks (Hong Kong) Limited (“Alpha HK”) Enrich Investment Corporation (“Enrich Investment”) D-Link Asia Investment Pte, Ltd. (“D-Link Asia”) Alpha Networks (Dongguan) Co., Ltd. (“Alpha Dongguan”) Alpha Networks (Chengdu) Co., Ltd. (“Alpha Chengdu”) Mirac Networks (Dongguan) Co., Ltd. Alpha Networks (Changshu) Co., Ltd. (“Alpha Changshu”) Transnet Corporation (“Transnet”) Aespula Technologies Inc. (“Aespula”) 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”)	Main Business and Products Investment holding Sale of network equipment, components and technical services Sale, marketing and procurement service in USA Post-sale service Investment holding Investment holding Investment in manufacturing business Production and sale of network products Research and development of network products Production and sale of network products Production and sale of network products Operating in network communication products, provide system support services, integrated supply and import and export of network equipment Sale of network equipment, components and technical services Marketing on system integration and production and sales of telecommunication products International trade International trade International trade Investment and automotive electronics products	Percentage of Ownership September 30, 2021 December 31, 2020 September 30, 2020 Note % 59.98 % 59.87 % 43.75 Note 6 % 59.98 % 59.87 % 43.75 Note 6 % 59.98 % 59.87 % 43.75 Note 6 % 59.98 % 59.87 % 43.75 Note 6 % 59.98 % 59.87 % 43.75 Note 6 % 59.98 % 59.87 % 43.75 Note 6 % 59.98 % 59.87 % 43.75 Note 6 % 59.98 % 59.87 % 43.75 Note 6 % 59.98 % 59.87 % 43.75 Note 6 % 59.98 % 59.87 % 43.75 Note 6 % 59.98 % 59.87 % 43.75 Note 6 % 59.98 % 59.87 % 43.75 Note 6 % 59.34 - - Note 7 and 12 % 37.33 % 37.26 % 27.23 Notes 3 and 6 % 37.33 % 37.26 % 27.23 Notes 3 and 6 % 37.33 % 37.26 % 27.23 Notes 1, 3 and 6 % 37.33 % 37.26 % 27.23 Notes 3 and 6 % 37.33 % 37.26 % 27.23 Notes 3 and 6

(Continued)

20

QISDA CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

Name of Investor Hitron Technologies Hitron Samoa Hitron Samoa Hitron Technologies/ Enrich Investment Interactive Digital	Name of Investee Hitron Technologies (Vietnam) Inc. (“Hitron Vietnam”) Hitron Technologies (SIP) Inc. (“Hitron Suzhou”) Jietech Trading (Suzhou) Inc. (“Jietech Suzhou”) Interactive Digital Technologies Inc. (“Interactive Digital”) Hwa Chi Technologies (Shanghai) Inc. (“Hwa Chi Technologies”)	Main Business and Products Production and sale of broadband telecommunications products Production and sale of broadband telecommunications products Sale of broadband network products and related services Telecommunication and broadband network system services Technical consultation on electronic communication, technology research and development, maintenance and after-sale service	Percentage of Ownership September 30, 2021 December 31, 2020 September 30, 2020 Note % 37.33 % 37.26 % 27.23 Notes 3 and 6 % 37.33 % 37.26 % 27.23 Notes 3 and 6 % 37.33 % 37.26 % 27.23 Notes 3 and 6 % 20.08 % 20.59 % 13.75 Notes 3 and 6 % 20.08 % 20.59 % 13.75 Notes 3 and 6

• Note 1: This is a non-significant subsidiary for which financial statements were not reviewed as of and for the nine months ended September 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, Zhenglang and Aespula was newly established in 2021.

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

(Continued)

21

QISDA CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(c) Employee benefits

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

(d) Income taxes

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

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

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

5. Critical accounting judgments and key sources of estimation uncertainty

The preparation of the consolidated financial statements in conformity with the Regulations and IAS 34 “ Interim Financial Reporting” endorsed and issued into effect by FSC requires management to make judgments, estimates and assumptions that affect the application of the accounting policies and the reported amount of assets, liabilities, income and expenses. Actual results may differ from these estimates.

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

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 Time deposits with original maturities less than three months	September 30, 2021 $ 109,436 14,151,218 2,569,522 $ 16,830,176	December 31, 2020 108,574 15,114,756 7,317,088 22,540,418	September 30, 2020
			221,229 14,178,533 3,502,913
			17,902,675

(Continued)

22

QISDA CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

As of September 30, 2021, December 31 and September 30, 2020, the time deposits with original maturities more than three months amounted to $6,653,334, $2,655,274 and $3,675,690, － respectively, which were classified as other financial assets current.

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

Financial assets at fair value through profit or loss－current: Foreign currency forward contracts Foreign exchange swaps Listed stocks Open-end mutual funds Derivative instrument – call and put option of convertible bonds (note 6(p)) 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: Derivative instrument – call and put option of convertible bonds (note 6(p)) Contingent consideration arising from business combinations	September 30, 2021 $ 72,636 20,020 58,669 25,610 47 $ 176,982 September 30, 2021 $ 312,220 10,504 5,533 $ 328,257 $ (35,117) (13,991) (13,237) $ (62,345) September 30, 2021 $ - (91,292) $ (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) (78,123)	September 30, 2020 125,332 31,681 69,390 51,733 - 278,136 September 30, 2020 10,313 10,504 5,533 26,350 (26,170) (23,190) (1,667) (51,027) September 30, 2020 (1,020) (89,494) (90,514) (Continued)

23

QISDA CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

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

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

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 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

September 30, 2021

Contract amount (in thousands) Maturity period EUR 37,015 2021/10~2021/12 USD 42,000 2021/10~2021/12 JPY 96,088 2021/10 CAD 9,000 2021/10~2021/12 USD 20,000 2021/10~2021/12 USD 70,896 2021/10~2022/01 EUR 5,106 2021/10~2021/12 GBP 5,000 2021/10~2021/12 USD 2,169 2021/10~2021/11 USD 18,000 2021/11~2021/12 JPY 1,400,000 2021/11~2021/12 USD 7,500 2021/11 USD 76,979 2021/10~2021/11 CNY 6,813 2021/10 USD 50,000 2021/10~2021/12 MYR 34,000 2021/10~2022/01 EUR 2,000 2021/12 USD 3,000 2021/12 EUR 1,679 2021/10 USD 23,100 2021/10~2021/12 GBP 922 2021/10 USD 1,003 2021/10 AUD 2,000 2021/12

(Continued)

24

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 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	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 September 30, 2020
	Contract amount (in thousands) Maturity period EUR 67,776 2020/10~2020/12 USD 49,067 2020/10~2020/12 CAD 6,000 2020/10~2020/12 USD 16,000 2020/10~2020/12 USD 70,203 2020/10~2021/01 EUR 2,800 2020/10~2020/11 GBP 5,000 2020/12 USD 2,500 2020/10 USD 14,000 2020/12 JPY 800,000 2020/11~2020/12 USD 7,500 2020/11 USD 38,644 2020/10~2020/12 CNY 34,268 2020/10 USD 84,600 2020/10~2020/12

(Continued)

25

QISDA CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

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

	September	30, 2020
Contract	amount
(in thousands)		Maturity period
MYR	21,000	2020/11
EUR	2,000	2020/11
USD	3,000	2020/11
USD	17,642	2020/10
GBP	141	2020/10~2020/12
USD	1,108	2020/10~2020/12
ZAR	84,705	2020/10
AUD	2,000	2020/11

(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

	September	30, 2021
Contract	amount
(in thousands)		Maturity period
USD	176,000	2021/10~2021/12
AUD	3,000	2021/12
JPY	400,000	2021/12
USD	129,520	2021/10
	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
	September	30, 2020
Contract	amount
(in thousands)		Maturity period
USD	155,000	2020/10~2020/11
AUD	3,000	2020/11
JPY	400,000	2020/11
USD	103,750	2020/10~2020/11

(Continued)

26

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	September 30, 2021 $ 12,029,716 1,584,371 555,856 $ 14,169,943 $ 100,959 14,068,984 $ 14,169,943	December 31, 2020 296,043 761,132 420,505 1,477,680 96,281 1,381,399 1,477,680	September 30, 2020
			501,944 549,373 512,082
			1,563,399
			130,260 1,433,139
			1,563,399

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 nine months ended September 30, 2021 and 2020, the Group sold part of its financial assets at fair value through other comprehensive income for $312,579 and $26,910, respectively. The realized gain accumulated in other comprehensive income of $170,897 and $3,885, respectively, which have been transferred from other equity to retained earnings.

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	September 30, 2021 $ 30,719,382 3,257,876 33,977,258 (246,459) $ 33,730,799	December 31, 2020 33,508,623 3,280,369 36,788,992 (287,066) 36,501,926	September 30, 2020 33,632,571 2,638,561 36,271,132 (340,008) 35,931,124

(Continued)

27

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	September 30, 2021	September 30, 2021
	Gross carrying amount Weighted- average loss rate $ 32,098,587 0.08% 1,509,885 1.68% 183,566 28.47% 185,220 77.57% $ 33,977,258 December 31, 2020		Loss allowance
			25,192 25,337 52,261 143,669
			246,459
			Loss allowance
			29,305 19,669 67,395 170,697
			287,066
		Weighted- average loss rate 0.10% 2.70% 44.50% 78.53%	Loss allowance
			35,140 31,845 80,063 192,960
			340,008

(Continued)

28

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 September 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:

		September 30, 2021	September 30, 2021
Underwriting bank	Factored amount $ 4,610,022 6,959,999 491,931 567,312 213,845 66,395 167,121 $ 13,076,625	Unpaid advance amount - - - - - - - - Dece	Advance amount 4,537,815 6,959,999 440,332 510,581 192,460 59,756 150,409 12,851,352 mber 31, 2020	Amount recognized in other receivables 72,207 - 51,599 56,731 21,385 6,639 16,712 225,273	Range of interest rates Collat Promissory not Non Non Promissory not Non Non Non 0.525%～3.5%	eral e 50,112 e - e - e 150,000 e - e - e -
CTBC Bank Taishin International Bank Taipei Fubon Bank Mega International Commercial Bank E.SUN Commercial Bank Crefo Factoring Nord GmbH KGI Commercial Bank
						200,112
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)

29

QISDA CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

		September 30, 2020	September 30, 2020
Underwriting bank	Factored amount $ 2,357,430 956,753 4,521,319 398,577 283,714 287,228 34,588 $ 8,839,609	Unpaid advance amount - 9,421 - - - - -	Advance amount 2,306,077 851,657 4,521,319 358,658 221,660 258,085 31,129 8,548,585	Amount recognized in other receivables 51,353 105,096 - 39,919 62,054 29,143 3,459 291,024	Range of interest rates Collat Promissory not Promissory not Non Non Non Non Non 0.65%～3.5%	eral e 52,427 e 250,000 e - e - e - e - e -
CTBC Bank Mega International Commercial Bank Taishin International Bank Taipei Fubon Bank E.SUN Commercial Bank KGI Commercial Bank Crefo Factoring Nord GmbH
		9,421				302,427

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	September 30, 2021 $ 225,273 535,711 760,984 (27,783) 733,201 301,406 $ 1,034,607	December 31, 2020 224,862 479,318 704,180 (28,292) 675,888 302,399 978,287	September 30, 2020 291,024 385,179 676,203 (29,066) 647,137 298,366 945,503

As of September 30, 2021, December 31 and September 30, 2020, except for other receivables amounting to $27,783, $28,292 and $29,066, 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	September 30, 2021 $ 20,178,491 3,128,045 17,274,111 7,413,750 $ 47,994,397	December 31, 2020 11,353,769 2,343,595 15,336,859 6,105,110 35,139,333	September 30, 2020 8,252,727 2,652,210 16,128,982 5,677,071 32,710,990

(Continued)

30

QISDA CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

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

Cost of inventories sold Write-downs of inventories	For the three months ended September 30, 2021 2020 $ 47,176,277 42,569,500 21,851 157,223 $ 47,198,128 42,726,723	For the nine months ended September 30,	For the nine months ended September 30,
	2021 $ 47,176,277 21,851 $ 47,198,128	2021 135,277,015 105,140 135,382,155	2020
			111,877,794 352,933
			112,230,727

• (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)

31

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 gains and lossesnet 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. A disposal gain of $365,338 was recognized and included in the other gains and losses-net in the accompanying consolidated financial statements.

• (iii) In the third quarter of 2021, the respective Board of Directors of SGM, ACE, DFI and Sysage approved a resolution to dispose the parcels of land and buildings located at Ruifang, Sanchong and Xizhi District of New Taipei City and Kaohsiung City. Since the lands and buildings are expected to be disposed within one year, the abovementioned assets, with the carrying amounts of $163,909, $73,452, $72,885 and $16,283, respectively, were classified as non-current assets held-for-sale as of September 30, 2021.

(Continued)

32

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 were as follows:

Associates Joint ventures	September 30, 2021 $ 3,291,483 29,141 $ 3,320,624	December 31, 2020 16,278,479 29,955 16,308,434	September 30, 2020
			15,289,270 28,996
			15,318,266

(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 Others	Location Taiwan Taiwan	September 30, 2021 Percentage of voting rights Carrying amount - $ - % 25.73 2,367,895 - 923,588 $ 3,291,483	December	31, 2020 Carrying amount 12,701,500 2,364,486 1,212,493 16,278,479	September 30, 2020	September 30, 2020
		Percentage of voting rights	Percentage of voting rights		Percentage of voting rights % 6.99 % 25.73 -	Carrying amount
		- % 25.73 -	% 6.99 % 25.73 -			11,801,696 2,171,076 1,316,498
						15,289,270

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 September 30, 2021, 13.5% ownership of NSHD had been sold and $1,166,166 (CNY 270,000 thousand) of consideration was received, resulting in a gain on disposal of investments of $986,869 to be recognized. The Group still has significant influence over NSHD.

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

(Continued)

33

QISDA CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

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.

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

AU DFN	September 30, 2021 $ - 2,981,669	December 31, 2020 September 30, 2020 9,290,386 7,432,309 3,122,110 2,718,793

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	September 30, 2020 155,845,767 238,197,741 (91,880,785) (121,927,542) 180,235,181 10,303,219 169,931,962

(Continued)

34

QISDA CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

			For	the three	the three	For the nine	For the nine
			months ended			months ended
			September 30,			September 30,
					2020		2020
Net sales			$	73,229,997			190,420,361
Net income (loss)			$		3,010,324		(5,970,244)
Other comprehensive income (loss)					912,121		(1,803,669)
Total comprehensive income (loss)			$		3,922,445		(7,773,913)
Total comprehensive income (loss) attributable to
non-controlling interests of AU			$		282,995		(1,001,689)
Total comprehensive income (loss) attributable to
shareholders of AU			$		3,639,450		(6,772,224)
		For the three months			For the nine months
		ended September 30,			ended September 30,
		2021	2020		2021		2020
The Group’s share of equity of
associates at January 1	$	-	11,622,256		12,804,784		12,348,373
Net income (loss)
attributable to the Group		-	202,272		1,255,866		(353,609)
Other comprehensive income
(loss) attributable to the
Group		-	52,136		(63,477)		(119,762)
Capital surplus attributable to
the Group		-	591		(55,616)		2,253
Reclassified to financial assets
at fair value through other
comprehensive income		-	-		(13,838,274)		-
Cumulative effect of
investment income
recognized under treasury
stock method		-	(75,559)		(103,283)		(75,559)
The carrying amount of
investments in the associates
at September 30	$	-	11,801,696		-		11,801,696

(Continued)

35

QISDA CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

• 2) The summarized financial information of DFN:

		September	September	September	30,	December 31, September 30,	December 31, September 30,	December 31, September 30,
				2021			2020	2020
Current assets		$		18,973,888		14,983,083		13,921,758
Non-current assets				11,516,197			9,286,423	8,909,584
Current liabilities				(14,887,529) (11,672,915)				(11,454,787)
Non-current liabilities				(3,904,793)			(2,017,529)	(1,642,175)
Equity		$		11,697,763		10,579,062		9,734,380
Equity attributable to non-
controlling interests of DFN		$		2,493,421			1,387,996	1,295,124
Equity attributable to shareholders
of DFN		$		9,204,342			9,191,066	8,439,256
		For	the three		months		For the nine months
		ended		September		30,	ended September 30,
		2021			2020		2021	2020
Net sales	$	6,962,475			6,111,052		20,495,470	15,949,277
Net income	$	336,782			303,232		943,886	663,584
Other comprehensive income
(loss)		(96,876)			35,163		(101,170)	(259,090)
Total comprehensive income	$	239,906			338,395		842,716	404,494
Total comprehensive income
attributable to non-
controlling interests of DFN	$	36,717			20,280		129,370	28,928
Total comprehensive income
attributable to shareholders of
DFN	$	203,189			318,115		713,346	375,566
		For	the three		months		For the nine months
		ended		September		30,	ended September 30,
		2021			2020		2021	2020
The Group’s share of equity of
associates at January 1	$	2,315,545			2,087,625		2,364,486	2,233,147
Net income attributable to
the Group		78,122			72,488		209,707	162,133
Other comprehensive income
(loss) attributable to the
Group		(25,754)				9,351	26,227	(65,540)
Capital surplus attributable to
the Group				(18)		1,612	(18)	6,985
Dividend received from
associates			-			-	(180,053)	(165,649)
The carrying amount of
investments in the associates
at September 30	$	2,367,895			2,171,076		2,420,349	2,171,076

(Continued)

36

QISDA CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

3) The summarized financial information of Alpha:

January 1, 2020 to July 22, 2020 2020 Net sales $ 1,572,959 Net income $ 194,799 Other comprehensive loss (58,557) Total comprehensive income $ 136,242 Total comprehensive income attributable to non- controlling interests of Alpha $ 53,105 Total comprehensive income (loss) attributable to shareholders of Alpha $ 83,137 For the three months ended September 30, 2020 The Group’s share of equity of associates at January 1$ 2,425,743 Purchase of investments - Net income attributable to the Group 9,965 Other comprehensive income (loss) attributable to the Group 8,858 Capital surplus attributable to the Group (1,435) Dividend received from associates (16) Reclassification to consolidated entities (2,443,115) The carrying amount of investments in the associates at September 30 $ -

For the nine months ended September 30, 2020 2,564,115 86,462 21,204 (10,761) (161,064) (56,841) (2,443,115) -

(Continued)

37

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.

The aggregate carrying amount associates that were not individually material to the Group Attributable to the Group: Net income (loss) Other comprehensive income(loss) Total comprehensive income (loss)	September 30, 2021 December 31, 2020 September 30, 2020 of $ 923,588 1,212,493 1,316,498 For the three months ended September 30, For the nine months ended September 30, 2021 2020 2021 2020 $ 7,134 (9,232) 19,756 10,494 4,049 4,055 (15,778) (17,214) $ 11,183 (5,177) 3,978 (6,720)	September 30, 2021 December 31, 2020 September 30, 2020 of $ 923,588 1,212,493 1,316,498 For the three months ended September 30, For the nine months ended September 30, 2021 2020 2021 2020 $ 7,134 (9,232) 19,756 10,494 4,049 4,055 (15,778) (17,214) $ 11,183 (5,177) 3,978 (6,720)	September 30, 2021 December 31, 2020 September 30, 2020 of $ 923,588 1,212,493 1,316,498 For the three months ended September 30, For the nine months ended September 30, 2021 2020 2021 2020 $ 7,134 (9,232) 19,756 10,494 4,049 4,055 (15,778) (17,214) $ 11,183 (5,177) 3,978 (6,720)
	2021 $ 7,134 4,049 $ 11,183	2020

• (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:

The aggregate carrying amount joint ventures that were not individually material to the Group Attributable to the Group: Net income (loss) Other comprehensive income (loss) Total comprehensive income (loss)	September 30, 2021 December 31, 2020 September 30, 2020 of $ 29,141 29,955 28,996 For the three months ended September 30, For the nine months ended September 30, 2021 2020 2021 2020 $ 78 (61) 23 3,538 (53) 553 (149) (217) $ 25 492 (126) 3,321	September 30, 2021 December 31, 2020 September 30, 2020 of $ 29,141 29,955 28,996 For the three months ended September 30, For the nine months ended September 30, 2021 2020 2021 2020 $ 78 (61) 23 3,538 (53) 553 (149) (217) $ 25 492 (126) 3,321	September 30, 2021 December 31, 2020 September 30, 2020 of $ 29,141 29,955 28,996 For the three months ended September 30, For the nine months ended September 30, 2021 2020 2021 2020 $ 78 (61) 23 3,538 (53) 553 (149) (217) $ 25 492 (126) 3,321	September 30, 2021 December 31, 2020 September 30, 2020 of $ 29,141 29,955 28,996 For the three months ended September 30, For the nine months ended September 30, 2021 2020 2021 2020 $ 78 (61) 23 3,538 (53) 553 (149) (217) $ 25 492 (126) 3,321
	2021 $ 78 (53) $ 25	2020

• (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)

38

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)

39

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 September 30, 2021, Brainstorm had contributed the revenue of $2,454,511 and the net income of $101,711 to the Group. If this acquisition had occurred on January 1, 2021, the management estimates that consolidated revenue would have been $166,450,920, and consolidated income after income tax would have been $9,052,443.

• －

• (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)

40

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			$	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 receivables		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 payables		(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)

41

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 September 30, 2021, AST had contributed the revenue of $1,074,242 and the net income of $48,868 to the Group. If this acquisition had occurred on January 1, 2021, the management estimates that consolidated revenue would have been $164,445,497, and consolidated income after income tax would have been $8,954,261.

• －

• (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)

42

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－patent		2,317
Intangible assets－trademarks		3,201
Intangible assets－customer relationship		1,827
Intangible assets－computer software		43
Intangible assets－others		27,872
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 payables		(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)

43

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 September 30, 2021, the subsidiaries acquired by Sysage had contributed the revenue of $199,056 and the net loss of $2,173 to the Group. If this acquisition had occurred on January 1, 2021, the management estimates that consolidated revenue would have been $164,088,823, and consolidated income after income tax would have been $8,946,485.

• －

• (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)

44

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 payables		(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)

45

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 April 12, 2021 were as follows:

12, 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)

46

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 receivables		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 payables		(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)

47

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)

48

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			$	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 assets—current		10,874
Other current assets		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 assets—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 payables		(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)

49

QISDA CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

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

• 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 $568,898 from January to September 2021.

From January to September 2020, the Group acquired an additional ownership of Alpha, Interactive Digital, ESM, ACE, DIC, Topview and BDT for cash of $472,039.

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 nine months ended	For the nine months ended
		September 30,
		2021	2020
Capital surplus－arising from changes in ownership	$	7,946	(51,612)
interests in subsidiaries
Capital surplus－difference between consideration and
carrying amount arising from acquisition or disposal of
shares in subsidiaries		-	(114,527)
Retained earnings		628,589	-
	$	636,535	(166,139)

(Continued)

50

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:

Subsidiaries that have material non-controlling interest were as follows:

Principal place of business Subsidiaries /Registration country BMC Taiwan BBHC Cayman Islands DFI Taiwan Sysage Taiwan Alpha Taiwan	The Percentage of ownership and voting rights held by non-controlling interests September 30, 2021 December 31, 2020 September 30, 2020 % 56.44 % 56.44 % 56.44 % 29.95 % 29.95 % 29.95 % 44.91 % 44.91 % 44.91 % 48.59 % 64.96 % 64.96 % 40.02 % 40.13 % 56.25

(Continued)

51

QISDA CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

• 1) The summarized financial information of BMC:

		September 30,	September 30,		December 31,	September 30,	September 30,
			2021		2020		2020
Current assets	$		6,146,288		5,552,093		4,975,371
Non-current assets			5,461,154		5,507,358		5,564,615
Current liabilities			(5,117,216)		(4,970,859)		(4,394,549)
Non-current liabilities			(1,708,391)		(1,765,817)		(1,972,056)
Net assets	$		4,781,835		4,322,775		4,173,381
The carrying amount of non-
controlling interests	$		2,699,071		2,439,936		2,355,456
			For the three months For the nine months
			ended September 30, ended			September 30,
			2021	2020 2021			2020
Net sales		$	4,046,855	3,825,859 12,406,258			10,990,178
Net income		$	267,989		116,266 709,202		225,737
Other comprehensive income (loss)			(9,640)		36,432 (25,671)		(28,796)
Total comprehensive income		$	258,349		152,698 683,531		196,941
Net income attributable to non-controlling
interests		$	151,336		65,621 400,371		127,406
Total comprehensive income attributable
to non-controlling interests		$	146,472		86,183 386,518		111,154
					For the nine months
					ended September 30,
					2021		2020
Cash flow from operating activities				$	722,792		1,042,618
Cash flow from investing activities					(438,348)		(529,221)
Cash flow from financing activities					(248,073)		(413,427)
Effects of foreign exchange rate changes					(38,979)		25,267
Net increase (decrease) in cash and	cash equivalents			$	(2,608)		125,237
Cash dividends paid to non-controlling			interests	$	(126,690)		90,493

(Continued)

52

QISDA CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

• 2) The summarized financial information of BBHC:

	September 30,	September 30,		December 31,	September 30,	September 30,
		2021		2020		2020
Current assets	$	2,450,245		2,399,340		1,710,609
Non-current assets		7,883,968		8,055,836		8,044,264
Current liabilities		(4,608,437)		(3,952,233)		(3,323,818)
Non-current liabilities		(791,562)		(2,607,564)		(2,597,735)
Net assets	$	4,934,214		3,895,379		3,833,320
The carrying amount of non-
controlling interests	$	1,499,245		1,184,330		1,164,533
		For the three months For the nine months
		ended September 30, ended			September 30,
		2021	2020 2021			2020
Net sales	$	2,371,516	2,066,284 6,933,120			5,297,121
Net income	$	200,488		63,701 1,062,794		69,346
Other comprehensive income		(1,694)		115,880 51,977		79,874
Total comprehensive income	$	198,794		179,581 1,114,771		149,220
Net income attributable to non-controlling
interests	$	60,046		19,078 318,307		20,769
Total comprehensive income attributable
to non-controlling interests	$	57,998		32,919 309,066		6,804
				For the nine months
				ended September 30,
				2021		2020
Cash flow from operating activities			$	1,888,405		450,733
Cash flow from investing activities				(478,300)		(230,505)
Cash flow from financing activities				(1,149,018)		(80,254)
Effects of foreign exchange rate changes				32,394		54,654
Net increase in cash and cash equivalents			$	293,481		194,628
Cash dividends paid to non-controlling		interests	$	-		-

(Continued)

53

QISDA CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

• 3) The summarized financial information of DFI:

	September 30,	September 30,		December 31,	September 30,	September 30,
		2021		2020		2020
Current assets	$	7,871,258		5,546,713		5,536,404
Non-current assets		6,559,366		5,554,031		5,600,526
Current liabilities		(5,858,354)		(2,771,923)		(2,850,468)
Non-current liabilities		(859,006)		(536,101)		(521,511)
Net assets	$	7,713,264		7,792,720		7,764,951
The carrying amount of non-
controlling interests	$	4,160,868		3,992,047		3,977,762
		For the three months For the nine months
		ended September 30, ended			September 30,
		2021	2020 2021			2020
Net sales	$	3,739,571	2,040,282 9,018,856			6,257,052
Net income	$	111,459		91,780 328,137		260,113
Other comprehensive income (loss)		(6,655)		5,422 (44,462)		(18,625)
Total comprehensive income	$	104,804		97,202 283,675		241,488
Net income attributable to non-controlling
interests	$	60,581		53,014 188,975		140,510
Total comprehensive income attributable
to non-controlling interests	$	56,997		27,858 166,663		88,445
				For the nine months
				ended September 30,
				2021		2020
Cash flow from operating activities			$	(725,469)		98,349
Cash flow from investing activities				(487,415)		31,321
Cash flow from financing activities				862,685		(462,709)
Effects of foreign exchange rate changes				(42,900)		(12,311)
Net decrease in cash and cash equivalents			$	(393,099)		(345,350)
Cash dividends paid to non-controlling		interests	$	154,230		257,050

(Continued)

54

QISDA CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

• 4) The summarized financial information of Sysage:

		September 30,	September 30,		December 31,	September 30,	September 30,
			2021		2020		2020
Current assets	$		6,910,116		6,541,097		6,439,689
Non-current assets			2,838,362		2,507,804		2,505,665
Current liabilities			(3,957,780)		(3,146,894)		(3,108,449)
Non-current liabilities			(657,958)		(576,073)		(609,617)
Net assets	$		5,132,740		5,325,934		5,227,288
The carrying amount of non-
controlling interests	$		2,515,423		3,468,194		3,415,433
			For the three months For the nine months
			ended September 30, ended			September 30,
			2021	2020 2021			2020
Net sales		$	3,164,845	3,422,583 8,906,847			10,485,872
Net income		$	138,693		142,887 453,352		428,515
Other comprehensive income (loss)			(18,367)		- (11,412)		-
Total comprehensive income		$	120,326		142,887 441,940		428,515
Net income attributable to non-controlling
interests		$	70,455		95,235 262,438		284,390
Total comprehensive income attributable
to non-controlling interests		$	61,530		95,235 257,351		284,390
					For the nine months
					ended September 30,
					2021		2020
Cash flow from operating activities				$	102,266		282,760
Cash flow from investing activities					124,675		(139,583)
Cash flow from financing activities					239,128		(213,080)
Effects of foreign exchange rate changes					(7,724)		-
Net increase (decrease) in cash and	cash equivalents			$	458,345		(69,903)
Cash dividends paid to non-controlling			interests	$	228,790		367,072

(Continued)

55

QISDA CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

5) The summarized financial information of Alpha:

September 30, 2021 December 31, 2020 Current assets $ 18,238,272 20,706,337 Non-current assets 9,648,426 9,951,500 Current liabilities (11,432,799) (13,715,201) Non-current liabilities (904,859) (952,481) Net assets $ 15,549,040 15,990,155 The carrying amount of non- controlling interests $ 7,349,290 7,628,139 For the three months ended September 30, 2021 For the nine months ended September 30, 2021 Net sales $ 6,705,956 21,454,273 Net income $ 100,907 276,776 Other comprehensive income (loss) (15,114) (44,306) Total comprehensive income $ 85,793 232,470 Net income attributable to non- controlling interests $ 57,354 142,746 Total comprehensive income attributable to non-controlling interests $ 49,668 121,069 For the nine months ended September 30, 2021 Cash flow from operating activities $ (1,191,350) Cash flow from investing activities (781,820) Cash flow from financing activities (177,761) Effects of foreign exchange rate changes (45,866) Net increase (decrease) in cash and cash equivalents $ (2,196,797) Cash dividends paid to non-controlling interests $ 216,772

September 30, 2020 20,109,930 10,212,455 (13,060,761) (1,594,054) 15,667,570 9,257,804 July 23, 2020 to September 30, 2020 6,650,693 183,468 61,894 245,362 113,599 131,081 July 23, 2020 to September 30, 2020 120,136 (22,760) 151,301 - 248,677 -

(Continued)

56

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 Reclassification to investment property Other reclassification and effect of exchange rate changes Balance at September 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 September 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 September 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 September 30, 2020	Land $ 6,437,888 181,650 130,083 - (212,156) (31,822) (77,320) $ 6,428,323 $ 5,682,857 6,586 941,437 - (163,057) (9,763) (65,558) $ 6,392,502 $ - - - - - - $ - $ - - - - - - - $ -	Buildings 26,766,386 573,951 400,068 (16,228) (178,328) - 642,085 28,187,934 21,306,465 278,459 4,456,724 (24,344) (307,511) (3,976) 552,602 26,258,419 11,874,445 772,748 81,440 (12,402) (87,583) (89,008) 12,539,640 9,586,415 606,672 1,917,784 (24,042) (277,838) (709) (136,155) 11,672,127	Machinery 19,425,297 1,421,808 152,843 (639,073) (8,253) - 157,267 20,509,889 15,914,940 780,698 2,806,125 (450,238) - - (95,103) 18,956,422 13,561,891 1,156,659 82,369 (511,255) (5,548) (93,941) 14,190,175 11,229,958 899,578 1,985,724 (381,978) - - (127,348) 13,605,934	Other equipment 5,844,304 1,431,682 59,008 (516,661) (13,677) - (675,914) 6,128,742 4,615,020 813,852 1,183,627 (186,535) - - (312,046) 6,113,918 3,958,946 334,770 39,062 (319,110) (5,665) (70,608) 3,937,395 3,132,073 334,251 605,491 (176,304) (73,449) - 113,801 3,935,863	Construction in progress 1,109,635 712,565 998 - - - (555,789) 1,267,409 345,142 739,625 561,539 - - - (608,116) 1,038,190 - - - - - - - - - - - - - - -	Total 59,583,510 4,321,656 743,000 (1,171,962) (412,414) (31,822) (509,671) 62,522,297 47,864,424 2,619,220 9,949,452 (661,117) (470,568) (13,739) (528,221) 58,759,451 29,395,282 2,264,177 202,871 (842,767) (98,796) (253,557) 30,667,210 23,948,446 1,840,501 4,508,999 (582,324) (351,287) (709) (149,702) 29,213,924

(Continued)

57

QISDA CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

Carrying amount: Balance at September 30, 2021 Balance at January 1, 2021 Balance at September 30, 2020	Land $ 6,428,323 $ 6,437,888 $ 6,392,502	Buildings 15,648,294 14,891,941 14,586,292	Machinery 6,319,714 5,863,406 5,350,488	Other equipment 2,191,347 1,885,358 2,178,055	Construction in progress 1,267,409 1,109,635 1,038,190	Total
						31,855,087
						30,188,228
						29,545,527

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 September 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 September 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 September 30, 2021	Land $ 4,087,827 - - - - 79,176 $ 4,167,003 $ 2,285,678 - 1,282,610 - 598,198 - (51,308) $ 4,115,178 $ 814,397 78,293 - - - 42,478 $ 935,168	Buildings 2,719,463 81,979 169,996 (24,416) (136,272) (195,574) 2,615,176 2,973,814 177,433 151,056 (396,935) - (103,943) (42,519) 2,758,906 1,304,033 332,959 12,104 (3,607) (121,356) (131,632) 1,392,501	Transportation equipment 37,771 4,685 16,956 - (11,065) 18,128 66,475 36,861 5,860 9,555 - - (4,332) (4,115) 43,829 20,075 12,812 - - (10,643) 7,694 29,938	Total 6,845,061 86,664 186,952 (24,416) (147,337) (98,270) 6,848,654 5,296,353 183,293 1,443,221 (396,935) 598,198 (108,275) (97,942) 6,917,913 2,138,505 424,064 12,104 (3,607) (131,999) (81,460) 2,357,607

(Continued)

58

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 September 30, 2020 Carrying amount: Balance at September 30, 2021 Balance at January 1, 2021 Balance at September 30, 2020	Land $ 723,385 40,887 69,607 - - (46,490) $ 787,389 $ 3,231,835 $ 3,273,430 $ 3,327,789	Buildings 1,050,396 295,462 69,312 (95,927) (103,943) 30,510 1,245,810 1,222,675 1,415,430 1,513,096	Transportation equipment 20,036 8,370 2,318 - (4,332) (2,563) 23,829 36,537 17,696 20,000	Total 1,793,817 344,719 141,237 (95,927) (108,275) (18,543) 2,057,028 4,491,047 4,706,556 4,860,885

(l) Investment property

Carrying amount: Balance at September 30, 2021 Balance at January 1, 2021 Balance at September 30, 2020	Buildings $ 2,757,831 $ 2,978,080 $ 2,975,184	Land use rights 677,032 582,950 582,036	Total
			3,434,863
			3,561,030
			3,557,220

There were no significant additions, disposals, or recognition and reversal of impairment losses of investment property for the nine months ended September 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)

59

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 September 30, 2021 Balance at January 1, 2020 Addition Acquisition through business combination Disposal Reclassification and effect of exchange rate changes Balance at September 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 September 30, 2021 Balance at January 1, 2020 Amortization Acquisition through business combination Impairment loss Disposal Reclassification and effect of exchange rate changes Balance at September 30, 2020 Carrying amount: Balance at September 30, 2021 Balance at January 1, 2021 Balance at September 30, 2020	Goodwill $ 5,281,296 - 286,039 - 18,583 $ 5,585,918 $ 2,980,359 - 2,406,979 - (72,044) $ 5,315,294 $ 10,144 - - - - $ 10,144 $ 3,792 - - 6,585 - - $ 10,377 $ 5,575,774 $ 5,271,152 $ 5,304,917	Computer software 1,020,811 343,302 12,555 (36,352) (8,127) 1,332,189 597,622 115,039 246,322 (4,964) 8,579 962,598 802,730 157,031 (36,352) 11,059 1,676 936,144 489,590 94,624 184,348 - (4,964) 9,170 772,768 396,045 218,081 189,830	Patents 853,870 - 2,320 - (789) 855,401 73,732 - 837,674 - (1,628) 909,778 123,716 122,889 - 3 (599) 246,009 52,602 31,376 314 - - (1,070) 83,222 609,392 730,154 826,556	Trademarks 1,506,189 - 565,893 - 8,929 2,081,011 1,203,307 - 243,164 - (243) 1,446,228 457,862 132,378 - - (33) 590,207 307,805 94,964 13,409 - - 36 416,214 1,490,804 1,048,327 1,030,014	Customer relationships 2,056,637 - 117,063 - (5,810) 2,167,890 1,370,023 - 609,067 - 78,739 2,057,829 572,278 172,324 - - (2,504) 742,098 349,384 140,378 25,728 - - 2,096 517,586 1,425,792 1,484,359 1,540,243	Others 646,099 77,005 384,432 (19,307) (17,347) 1,070,882 183,013 30,247 470,266 (25,503) (26,186) 631,837 279,277 127,913 (19,307) 234 (21,293) 366,824 135,772 45,248 122,369 - (25,503) (23,422) 254,464 704,058 366,822 377,373	Total 11,364,902 420,307 1,368,302 (55,659 (4,561
							13,093,291
							6,408,056 145,286 4,813,472 (30,467 (12,783
							11,323,564
							2,246,007 712,535 (55,659 11,296 (22,753
							2,891,426
							1,338,945 406,590 346,168 6,585 (30,467 (13,190
							2,054,631
							10,201,865
							9,118,895
							9,268,933

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

(Continued)

60

QISDA CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

The Group assessed the achievement of expected revenue in the third 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 nine months ended September 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:

September 30, 2021 Unsecured bank loans $ 31,108,301 Secured bank loans 223,986 Letters of credits - $ 31,332,287 Unused credit facilities $ 59,714,732 Interest rate 0.18%~4.25%	December 31, 2020 20,847,734 284,196 - 21,131,930 56,994,411 0.18%~4.2%	September 30, 2020
		23,620,642 470,546 27,367
		24,118,555
		50,399,042
		0.18%~4.30%

• (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

September 30, 2021 Unsecured bank loans $ 21,185,587 Secured bank loans 4,091,159 Less: current portion of long-term debt (687,132) Long-term debt $ 24,589,614 Unused credit facilities $ 16,396,199 Interest rate 0.73%~3.85% 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	September 30, 2020
		12,055,469 5,544,825 (411,387
		17,188,907
		18,509,922
		1.05%~4.60%
		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)

61

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 September 30, 2021, the related loan amount was $2,727,377. The estimated fair value of the loan was $2,680,746, using the prevailing market interest rate of 1.05%~1.30%. The difference of $46,631 was regarded as government grant and was recognized as deferred income. For the nine months ended September 30, 2021, the deferred income of $10,656 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 of Interactive Digital's unsecured convertible corporate bonds were as follows:

Total convertible corporate bonds issued Unamortized bond discount Cumulative converted amount Bonds payable Embedded derivative – call and put options, included in financial assets (liabilities) at fair value through profit or loss	September 30, 2021 $ 600,000 (9,187) (131,000) $ 459,813 $ 47	December 31, 2020 600,000 (17,393) (56,100) 526,507 543	September 30, 2020 600,000 (21,644) - 578,356 (1,020)

(Continued)

62

QISDA CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

As of September 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). As of September 30, 2021, the conversion price was $67 (New Taiwan Dollars).

(Continued)

63

QISDA CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(q) Lease liabilities

Current Non-current	September 30, 2021 $ 456,401 $ 1,396,554	December 31, 2020 455,040 1,565,596	September 30, 2020
			466,317
			1,674,244

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 September 30,	For the three months ended September 30,	For the three months ended September 30,		For the nine months ended September 30,	For the nine months ended September 30,
	2021		2021		2021 90,925 34,621 28,600	2020
	$ 29,851 $ 11,542 $ 9,175		21,262			63,455
			11,540			34,529
			10,768			30,712

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

Total cash outflow for leases	For the nine months ended September 30,	For the nine months ended September 30,
	2021 $ 516,074	2020
		439,770

(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)

64

QISDA CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(r) Provisions

Balance at September 30, 2021 Current Non-current Balance at December 31, 2020 Current Non-current Balance at September 30, 2020 Current Non-current	Warranties $ 1,449,357 $ 781,766 $ 667,591 $ 1,496,424 $ 808,823 $ 687,601 $ 1,434,668 $ 773,752 $ 660,916	Restructuring - - - - - - 1,000 1,000 -	Total
			1,449,357
			781,766
			667,591
			1,496,424
			808,823
			687,601
			1,435,668
			774,752
			660,916

There was no significant change in provision for the nine months ended September 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 nine months ended September 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 nine months ended September 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 September 30, 2021 2020 $ 1,037 745 936 925 $ 1,973 1,670	For the nine months ended September 30,	For the nine months ended September 30,
	2021 $ 1,037 936 $ 1,973	2021 3,022 2,896 5,918	2020
			2,352 2,658
			5,010

(Continued)

65

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:

Operating cost Operating expenses	For the three months ended September 30, 2021 2020 $ 136,635 76,353 123,623 93,020 $ 260,258 169,373	For the nine months ended September 30,	For the nine months ended September 30,
	2021 $ 136,635 123,623 $ 260,258	2021 383,826 367,801 751,627	2020
			206,568 233,459
			440,027

(u) Income taxes

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

Income tax expense	For the three months ended September 30,	For the three months ended September 30,		For the nine months ended September 30, 2021 2020 2,024,701 1,335,063	For the nine months ended September 30, 2021 2020 2,024,701 1,335,063
	2021 $ 594,001	2020			2020
		473,311			1,335,063

• (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 September 30 2021 2020 $ 8,547 -	For the nine months ended September 30	For the nine months ended September 30
		2021 109,341	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 September 30, 2021, December 31 and September 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 September 30, 2021, December 31 and September 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)

66

QISDA CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(ii) Capital surplus

September 30, 2021 Changes in equity of associates accounted for using the equity method $ 674 Changes in ownership interests in subsidiaries 1,789,835 Difference between consideration and carrying amount arising from acquisition or disposal of shares in subsidiaries - $ 1,790,509	December 31, 2020 97,612 1,781,889 - 1,879,501	September 30, 2020
		73,130 1,777,705 54,384
		1,905,219

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.

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.

(Continued)

67

QISDA CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

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

1) Legal reserve

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

2) Special reserve

In accordance with Rule 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. The other remaining appropriation items of 2020 earnings has been approved by the shareholders during their 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 were as follows:

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

(Continued)

68

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

• 3) Remeasurement of defined benefit plans:

(Continued)

69

QISDA CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

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

		For thenine months ended	For thenine months ended
		September	30,
		2021	2020
Effects of retrospective application	$	22,937,719	14,091,635
Equity attributable to non-controlling interests
Net income		1,637,796	855,179
Difference between consideration and carrying amount
arising from acquisition or disposal of shares in
subsidiaries		(1,322,949)	(357,512)
Stock option compensation cost of subsidiary		5,849	7,229
Changes in ownership interest in subsidiaries		(7,946)	51,612
Foreign currency translation differences		(86,928)	(29,035)
Capital surplus—Changes in equity of associates and
joint ventures accounted for using the equity method		1,057	4,630
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		(205)	(2,964)
Distribution of cash dividend by subsidiaries		(1,242,494)	(953,794)
Capital injection from non-controlling interests		77,547	143,696
Changes in non-controlling interests		1,218,159	10,442,446
	$	23,217,506	24,253,122

(w) Share-based payment

There was no significant change in share-based payment for the nine months ended September 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

For the three months ended September 30, 2021 2021 Profit attributable to shareholders of the Company $ 1,395,322 2,046,125 Weighted-average number of ordinary shares outstanding (in thousands) 1,966,782 1,966,782 Basic earnings per share (in New Taiwan Dollars) $ 0.71 1.04	For the three months ended September 30,	For the three months ended September 30,	For the three months ended September 30,		For the nine months ended September 30,	For the nine months ended September 30,
	2021		2021		2021 7,312,256 1,966,782 3.72	2020
			2,046,125			3,227,295
			1,966,782			1,966,782
			1.04			1.64

(Continued)

70

QISDA CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(ii) Diluted earnings per share

For the three months ended September 30, 2021 2020 Profit attributable to shareholders of the Company $ 1,395,322 2,046,125 Weighted-average number of ordinary shares outstanding (in thousands) 1,966,782 1,966,782 Effect of dilutive potential common stock: Remuneration to employee 29,781 21,289 Weighted-average number of ordinary shares outstanding (including effect of dilutive potential common stock) 1,996,563 1,988,071 Diluted earnings per share (in New Taiwan Dollars) $ 0.70 1.03

For the nine months ended September 30,

2021 2020 7,312,256 3,227,295 1,966,782 1,966,782 33,963 28,139 2,000,745 1,994,921 3.65 1.62

(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 September 30, 2021	For the three months ended September 30, 2021	For the three months ended September 30, 2021	For the three months ended September 30, 2021	For the three months ended September 30, 2021	For the three months ended September 30, 2021	For the three months ended September 30, 2021
	DMS $ 17,639,149 2,213,761 8,923,266 83,169 $ 28,859,345 $ 28,525,276 - 334,069 $ 28,859,345	Brand 8,645,742 2,573,569 3,783,845 225,055 15,228,211 14,795,857 - 432,354 15,228,211		Material 4,018,078 8,973 15,558 1,757		Networks 1,884,636 513,151 4,307,929 -		Medical 2,363,506 - - -		Total 34,551,111 5,309,454 17,030,598 309,981
				4,044,366		6,705,716		2,363,506		57,201,144
				4,044,366 - - 4,044,366		6,620,872 - 84,844 6,705,716		- 2,363,506 - 2,363,506		53,986,371 2,363,506 851,267
										57,201,144

(Continued)

71

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		For the three months ended September 30, 2020	For the three months ended September 30, 2020	For the three months ended September 30, 2020	For the three months ended September 30, 2020
	DMS $ 15,471,181 2,460,787 6,971,311 172,560 $ 25,075,839 $ 24,943,903 - 131,936 $ 25,075,839	Brand Material Networks Medical 8,901,602 3,800,791 1,018,209 2,064,647 2,741,439 13,334 389,931 - 2,060,403 4,450 5,242,553 - 379,401 1,910 - - 14,082,845 3,820,485 6,650,693 2,064,647 13,750,777 3,803,315 6,650,693 - - - - 2,064,647 332,068 17,170 - - 14,082,845 3,820,485 6,650,693 2,064,647 For the nine months ended September 30, 2021				Total 31,256,430 5,605,491 14,278,717 553,871
						51,694,509
						49,148,688 2,064,647 481,174
						51,694,509
		Brand Material Networks Medical 25,171,144 12,337,268 4,890,390 6,924,542 8,542,113 24,045 2,241,857 - 8,950,040 28,638 14,138,848 - 604,213 7,294 182,938 - 43,267,510 12,397,245 21,454,033 6,924,542 42,217,935 12,397,245 21,217,065 - - - - 6,924,542 1,049,575 - 236,968 - 43,267,510 12,397,245 21,454,033 6,924,542 For the nine months ended September 30, 2020				Total 82,622,017 28,991,100 50,284,914 2,190,669
						164,088,700
						155,198,583 6,924,542 1,965,575
						164,088,700
		Brand 24,874,120 7,926,860 5,529,543 1,057,045 39,387,568 38,399,060 - 988,508 39,387,568	Material 10,921,343 23,774 26,891 8,413 10,980,421 10,928,991 - 51,430 10,980,421	Networks 1,018,209 389,931 5,242,553 - 6,650,693 6,650,693 - - 6,650,693	Medical 5,295,247 - - - 5,295,247 - 5,295,247 - 5,295,247	Total 83,781,654 15,598,632 33,437,867 1,749,294
						134,567,447
						127,638,032 5,295,247 1,634,168
						134,567,447

(Continued)

72

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	September 30, 2021 $ 33,977,258 (246,459) $ 33,730,799 $ 2,303,002	December 31, 2020 September 30, 2020 36,788,992 36,271,132 (287,066) (340,008) 36,501,926 35,931,124 1,862,107 2,074,188

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

The amount of revenue recognized for the nine months ended September 30, 2021 and 2020 that were included in the contract liability balance at January 1, 2021 and 2020, were $1,567,658 and $1,302,794, 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 nine months ended September 30, 2021 and 2020, the Company estimated its remuneration to employees amounting to $168,575, $235,002, $853,231 and $393,851, respectively, and the remuneration to directors amounting to $12,643, $17,625, $63,992 and $29,539, respectively. The abovementioned estimated amounts are calculated based on the net profits before tax of each period (excluding the remuneration to employees and directors), multiplied by a certain percentage of the remuneration to employees and directors. The estimations are recognized as cost of sales or operating expenses. If the actual amounts differ from the estimated amounts, the differences shall be accounted as changes in accounting estimates and recognized as profit or loss in next year.

The estimated remuneration to employees and directors for 2020 were $429,669 and $42,925, respectively, which were the same as the amount approved by the Board of Directors on March 23, 2021 and paid in cash. Related information is available on the Market Observation Post System website of the Taiwan Stock Exchange.

• (aa) Non-operating income and loss

(i) Interest income

Interest income from bank deposits	For the three months ended September 30,	For the three months ended September 30,		For the nine months ended September 30,	For the nine months ended September 30,
	2021 $ 64,021	2020		2021 203,787	2020
		67,173			228,581

(Continued)

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QISDA CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(ii) Other income

Government grants income Dividend income (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 (note 6(h)) 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 (iv) Finance costs Interest expense of bank loans Interest expense on lease liabilities	For the three months ended September 30,	For the three months ended September 30,		For the nine months ended September 30, 2021 2020 90,927 86,918 283,347 61,778 374,274 148,696 For the nine months ended September 30, 2021 2020 (30,091) (1,385) 2,978,378 691,648 (35,763) (227,353) 182,054 129,619 (6,632) - 449,570 - - (6,585) - 459,493 273,680 230,774 3,811,196 1,276,211 For the nine months ended September 30, 2021 2020 477,880 571,352 28,600 30,712 506,480 602,064
	2021 2020 $ 51,147 36,708 267,486 54,135 $ 318,633 90,843 For the three months ended September 30,	2020
		36,708 54,135
		90,843
		2020
		2020		2021 477,880 28,600 506,480
		168,412 10,768
		179,180

(Continued)

74

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 September 30, 2021, December 31 and September 30, 2020, the Group had unused credit facilities of $76,110,931, $76,207,823 and $68,908,964, respectively.

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

September 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 $ 31,375,146 185,556 2,044,518 26,482,795 469,000 38,546,794 11,410,427 403,461 $ 110,917,697 $ 11,287,599 (11,325,118) 8,659,360 (8,665,389) $ (43,548)	Within 6 months 30,540,182 2,395 251,138 490,040 469,000 38,546,794 11,410,427 - 81,709,976 11,287,599 (11,325,118) 8,659,360 (8,665,389) (43,548)	6-12 months 834,964 11,666 233,280 536,914 - - - - 1,616,824 - - - - -	1-2 years - 13,713 352,382 6,363,425 - - - - 6,729,520 - - - - -	2-5 years - 157,782 735,972 18,357,808 - - - 403,461 19,655,023 - - - - -	More than 5 years - - 471,746 734,608 - - - -
						1,206,354
						- - - -
						-

(Continued)

75

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 September 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) 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 $ 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 $ 24,168,329 91,161 2,333,008 19,938,458 600,000 36,263,972 10,404,751 1,540,567 $ 95,340,246 $ 12,270,606 (12,369,768) 7,695,086 (7,703,577) $ (107,653)	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 23,595,880 1,806 266,737 276,452 - 36,263,972 10,404,751 1,540,567 72,350,165 12,270,606 (12,369,768) 7,695,086 (7,703,577) (107,653)	6-12 months 1,023,297 2,395 233,250 580,142 - - - - 1,839,084 - - - - - 572,449 1,423 257,569 841,104 - - - - 1,672,545 - - - - -	1-2 years - 2,096 372,429 5,633,250 - - - - 6,007,775 - - - - - - 13,312 447,496 1,514,996 600,000 - - - 2,575,804 - - - - -	2-5 years - 76,027 738,413 16,550,607 - - - 1,621,811 18,986,858 - - - - - - 74,620 798,737 16,300,626 - - - - 17,173,983 - - - - -	More than 5 years - - 508,931 865,975 - - - -
						1,374,906
						- - - -
						-
						- - 562,469 1,005,280 - - - -
						1,567,749
						- - - -
						-

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

(Continued)

76

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):

September 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) $ 1,415,421 88,435 2,042,717 3,447,689 71,367 1,660,387 74,987 1,675,398 7,146,297	Exchange rate 27.8400 32.2940 4.2996 0.2488 4.2996 27.8400 32.2940 4.2996 0.2488	TWD (in thousands) 39,405,321 2,855,920 8,782,866 857,785 306,848 46,225,174 2,421,630 7,203,541 1,777,999	Change in magnitude Effect on profit or loss (in thousands) % 1 394,053 % 1 28,559 % 1 87,829 % 1 8,578 - - % 1 462,252 % 1 24,216 % 1 72,035 % 1 17,780

(Continued)

77

QISDA CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

Financial assets Monetary items USD EUR CNY JPY Non-monetary items CNY Financial liabilities USD EUR CNY JPY Financial assets Monetary items USD EUR CNY JPY Non-monetary items CNY Financial liabilities Monetary items USD EUR CNY JPY		December 31, 2020	December 31, 2020
	Foreign currency (in thousands) $ 1,553,657 82,529 1,601,226 3,109,307 57,498 1,749,975 41,796 1,615,273 7,424,353	Exchange rate TWD (in thousands) Change in magnitude Effect on profit or loss (in thousands) 28.3500 44,046,176 % 1 440,462 34.9560 2,884,884 % 1 28,849 4.3216 6,919,858 % 1 69,199 0.2749 854,748 % 1 8,547 4.3216 248,483 - - 28.3500 49,611,791 % 1 496,118 34.9560 1,461,021 % 1 14,610 4.3216 6,980,564 % 1 69,806 0.2749 2,040,955 % 1 20,410 September 30, 2020
	Foreign currency (in thousands) $ 1,739,865 89,021 1,566,551 3,186,973 81,939 1,868,894 41,898 1,427,593 6,965,942	Exchange rate 29.1260 34.2230 4.2707 0.2757 4.2707 29.1260 34.2230 4.2707 0.2757	TWD (in thousands) 50,675,308 3,046,566 6,690,269 878,648 349,937 54,433,407 1,433,875 6,096,821 1,920,510	Change in magnitude Effect on profit or loss (in thousands) % 1 506,753 % 1 30,466 % 1 66,903 % 1 8,786 - - % 1 544,334 % 1 14,339 % 1 60,968 % 1 19,205

(Continued)

78

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 nine months ended September 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	September 30, 2021 $ 505,239 14,169,943 16,830,176 34,765,406 7,954,824 59,550,406 $ 74,225,588	December 31, 2020 562,774 1,477,680 22,540,418 37,480,213 3,672,698 63,693,329 65,733,783	September 30, 2020
			304,486
			1,563,399
			17,902,675 36,876,627 4,712,190
			59,491,492
			61,359,377

(Continued)

79

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 Call and put option 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	September 30, 2021 $ 49,108 - 104,529 153,637 31,332,287 49,957,221 1,852,955 25,276,746 459,813 403,461 109,282,483 $ 109,436,120	December 31, 2020 September 30, 2020 135,018 49,360 - 1,020 82,766 91,161 217,784 141,541 21,131,930 24,118,555 52,557,688 46,668,723 2,020,636 2,140,561 22,903,335 17,600,294 526,507 578,356 1,621,811 1,540,567 100,761,907 92,647,056 100,979,691 92,788,597	December 31, 2020 September 30, 2020 135,018 49,360 - 1,020 82,766 91,161 217,784 141,541 21,131,930 24,118,555 52,557,688 46,668,723 2,020,636 2,140,561 22,903,335 17,600,294 526,507 578,356 1,621,811 1,540,567 100,761,907 92,647,056 100,979,691 92,788,597
			49,360 1,020 91,161
			141,541
			24,118,555 46,668,723 2,140,561 17,600,294 578,356 1,540,567
			92,647,056
			92,788,597

• (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)

80

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		September 30, 2021	September 30, 2021	Total 72,636 20,020 25,610 58,669 47 312,220 10,504 5,533 505,239 12,029,716 1,584,371 555,856 14,169,943 14,675,182 (35,117) (13,991) (104,529) (153,637)
		Fair Value
	Level 1 $ - - 25,610 58,669 - - - - 84,279 12,029,716 - - 12,029,716 $ 12,113,995 $ - - - $ -	Level 2 72,636 20,020 - - 47 - - - 92,703 - 1,584,371 - 1,584,371 1,677,074 (35,117) (13,991) - (49,108)	Level 3 - - - - - 312,220 10,504 5,533 328,257 - - 555,856 555,856 884,113 - - (104,529) (104,529)

(Continued)

81

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)

82

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 Foreign exchange option 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 Embedded derivative - call and put options Total		September 30, 2020	September 30, 2020	Total 125,332 31,681 51,733 69,390 10,313 10,504 5,533 304,486 501,944 549,373 512,082 1,563,399 1,867,885 (26,170) (23,190) (91,161) (1,020) (141,541)
		Fair Value
	Level 1 $ - - 51,733 69,390 - - - 121,123 501,944 - - 501,944 $ 623,067 $ - - - - $ -	Level 2 125,332 31,681 - - - - - 157,013 - 549,373 - 549,373 706,386 (26,170) (23,190) (10,643) (1,020) (61,023)	Level 3 - - - - 10,313 10,504 5,533 26,350 - - 512,082 512,082 538,432 - - (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.

(Continued)

83

QISDA CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

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.

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 nine months ended September 30, 2021 and 2020.

(Continued)

84

QISDA CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

For the nine months ended September 30, 2020, the financial assets measured at fair value through other comprehensive income (privately held stock— Visco Vision Inc.) were transferred from Level 3 to Level 2 because Visco Vision Inc. became an emerging stock company on Taipei Exchange starting from August 14, 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 September 30	For the three months ended September 30, 2021 2020 $ 303,156 25,687 - - - - 25,101 663 - - $ 328,257 26,350	For the nine months ended September 30, 2021 2020 173,731 120,399 100,000 - - (627) 54,526 15,806 - (109,228) 328,257 26,350
	2021 $ 303,156 - - 25,101 - $ 328,257	2021 173,731 100,000 - 54,526 - 328,257

Financial assets at fair value through other comprehensive income:

For the three months ended September 30, 2021 2020 Balance at January 1 $ 479,437 504,197 Acquisition through business combination - 21,245 Additions - - Disposal - (500) Reclassification (367) (3,628) Proceeds from capital reduction - - Recognized in other comprehensive income 76,786 (9,232) Balance at September 30 $ 555,856 512,082	For the nine months ended September 30, 2021 2020 420,505 344,743 - 29,085 69,187 61,500 - (500) (367) (3,628) - (6,667) 66,531 87,549 555,856 512,082	For the nine months ended September 30, 2021 2020 420,505 344,743 - 29,085 69,187 61,500 - (500) (367) (3,628) - (6,667) 66,531 87,549 555,856 512,082
	2021 420,505 - 69,187 - (367) - 66,531 555,856
		512,082

(Continued)

85

QISDA CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

Financial liabilities at fair value through profit or loss:

Balance at January 1 Contingent consideration arising from business combination Recognized in profit or loss Balance at September 30	For the three months ended September 30, 2021 2020 $ 104,529 80,518 - - - - $ 104,529 80,518	For the nine months ended September 30,	For the nine months ended September 30,
	2021 $ 104,529 - - $ 104,529	2021 80,518 23,298 713 104,529	2020
			87,227 - (6,709)
			80,518

－ 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 September 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 September 30, 2021 2020 $ 25,101 663 76,786 (9,232)	For the nine months ended September 30,
	2021 $ 25,101 76,786	2021 2020 53,813 22,515 66,531 87,549

(ac) Financial risk management

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

(Continued)

86

QISDA CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(ad) Capital management

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

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

• (i) For acquisition of right-of-use assets under lease for the nine months ended September 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 Bonds payable 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 9,968,491 2,299,799 - (396,549) (1,218,350) 10,653,391 Cash flows 1,108,223 381,492 - (345,603) (65,665) 1,078,447	Non-cash changes	Non-cash changes	Effect of foreign exchange rate (4,534) (50,315) (66,694) (15,338) - (136,881) Effect of foreign exchange rate 315 (85,041) 1,632 - - (83,094)	September 30, 2021
			Acquisition through business combination Additions 236,400 - 123,927 - - - 57,254 186,952 - - 417,581 186,952 Non-cash changes
						31,332,287 25,276,746 459,813 1,852,955 403,461
						59,325,262
						September 30, 2020 24,118,555 17,600,294 578,356 2,140,561 1,540,567
			Acquisition through business combination 3,107,947 229,033 576,724 289,764 - 4,203,468	Additions - - - 183,293 - 183,293
						45,978,333

(Continued)

87

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”) MLK Bioscience Co., Ltd. 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”) AFPD Pte., Ltd AU Optronics (Suzhou) Corp. (“AUSZ”) AU Optronics (Kunshan) Co., Ltd. (“AUKS”) a.u. Vista Inc. (“AUVI”) AU Optronics (Xiamen) Corp. (“AUXM”) AU Optronics Manufacturing (Shanghai) Corp. AU Optronics (Slovakia) s.r.o. AUO Care Information Tech. (Suzhou) Co., Ltd. BriView (Hefei) Co., Ltd. (“BVHF”) Darwin Precisions (Xiamen) Corp. (“DPXM”) Darwin Precisions (Suzhou) Corp. Fortech Electronics (Kunshan) Co., Ltd. (“FTKS”) Fortech Electronics (Suzhou) Co., Ltd. (“FTWJ”)

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 associates The Group's joint venture The Group's associates

Prior to July 23, 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 AU's subsidiaries AU's subsidiaries

(Continued)

88

QISDA CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

Name of related party Relationship with the Group Mega Insight Smart Manufacturing (Suzhou) Corp., Ltd. AU's subsidiaries Edgetech Data Technologies (Suzhou) Corp., Ltd. AU's subsidiaries U-Fresh Technology (Suzhou) Co., Ltd. AU's subsidiaries AUO Display Plus Corporation AU's subsidiaries AUO Digitech (Suzhou) Co., Ltd. AU's subsidiaries AUO Crystal Corp. (“ACTW”) AU's subsidiaries AUO Education Service Corp. AU's subsidiaries Unictron Technologies Corporation DFN's subsidiaries Darfon America Corp. (“DFA”) DFN's subsidiaries Darfon Electronics Czech s.r.o (“DFC”) DFN's subsidiaries Darfon Electronics (Suzhou) Co., Ltd. (“DFS”) DFN's subsidiaries Huaian Darfon Electronics Co., Ltd. (“DFH”) DFN's subsidiaries Darfon Electronics (Chongqing) Co., Ltd. (“DFQ”) DFN's subsidiaries Visco Technology Sdn. Bhd. (“VVM”) Visco Vision's subsidiaries Suzhou Trident Original Medical Technology (Jiangsu) Co., TDX's subsidiaries Ltd. BenQ Foundation 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 September 30,	For the three months ended September 30,		For the nine months ended September 30,
	2021 $ - - 306,666 306,666 3,667 2,462,220 841,381 196,901 3,500,502 $ 3,810,835		2020		2021 2020 3,169,024 6,680,029 1,064,012 2,500,295 966,554 1,031,365 5,199,590 10,211,689 6,702 - 4,122,591 - 1,344,857 - 332,968 - 5,800,416 - 11,006,708 10,211,689
			2,416,732 844,411 460,525 3,721,668 - - - - - 3,721,668

(Continued)

89

QISDA CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

The sales prices for some of the abovementioned transactions were not comparable to the sales prices for third-party customers as the specifications of products were different. For the other transactions, there were no significant differences between the sales prices for related parties and those for third-party customers. The payment terms of 30~120 days showed no significant difference between related parties and third-party customers.

(ii) Purchases

Associates: AU Other associates Joint ventures The entity who has significant influence over the Group: AU		For the three months ended September 30,		For the nine months ended September 30,
	2021 2020 $ - 3,210,255 206,455 178,131 206,455 3,388,386 13,600 - 3,029,600 - $ 3,249,655 3,388,386			2021 2020 4,085,451 8,328,159 537,581 482,050 4,623,032 8,810,209 44,204 - 5,173,873 - 9,841,109 8,810,209

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 September 30, 2021, the outstanding receivables of $43,327 were recorded under other receivables as the attorney collected 7% of the total contract price on behalf of the Group. 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 nine months ended September 30, 2021 and 2020, the related interest expense on lease liabilities amounted to $587, $1,010, $2,080 and $3,338, respectively. As of September 30, 2021, December 31 and September 30, 2020, the balance of the lease liabilities amounted to $115,341, $178,516, and $202,061, respectively.

(Continued)

90

QISDA CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

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

Associates		For the three months ended September 30,		For the nine months ended September 30,
		2021 2020 $ 3,695 6,614		2021 2020 16,712 20,596

(v) Donation

For the three months and nine months ended September 30, 2021 and 2020 the Group made a donation to substantive related party (BenQ Foundation) amounting to $13,500, $0, $22,000 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 Accounts receivable Other receivables	Related-party categories September 30, 2021 The entity who has significant influence over the Group: AU $ 1,734,751 AUSZ 1,068,865 Other 213,048 3,016,664 Joint ventures 7,522 Associates: AU - AUSZ - Other associates 233,690 233,690 $ 3,257,876 Associates: NSHD $ 288,075 Other associates 13,331 $ 301,406	December 31, 2020 - - - - 2,719 2,089,736 942,534 245,380 3,277,650 3,280,369 287,690 14,709 302,399	September 30, 2020
			- - -
			-
			-
			1,477,144 949,836 211,581
			2,638,561
			2,638,561
			284,302 14,064
			298,366

(Continued)

91

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 September 30, 2021 Accounts payable The entity who has significant influence over the Group: AU $ 1,226,717 Joint ventures 2,904 Associates: AU - Other associates 251,200 $ 1,480,821 Other payables Associates $ 274,214 Lease liabilities—current $ 92,284 Lease liabilities— non-current $ 23,057	December 31, 2020 September 30, 2020 - - - 2,242 1,709 1,941,157 1,783,803 184,137 213,416 2,127,536 1,998,928 16,151 51,340 86,737 86,720 91,779 115,341	December 31, 2020 September 30, 2020 - - - 2,242 1,709 1,941,157 1,783,803 184,137 213,416 2,127,536 1,998,928 16,151 51,340 86,737 86,720 91,779 115,341
		- 1,709 1,783,803 213,416
		1,998,928
		51,340
		86,720
		115,341

(c) Compensation for key management personnel

Short-term employee benefits Post-employment benefits	For the three months ended September 30, 2021 2020 $ 98,623 69,258 252 216 $ 98,875 69,474	For the nine months ended September 30,	For the nine months ended September 30,
	2021 $ 98,623 252 $ 98,875	2021 209,615 666 210,281	2020
			128,593 648
			129,241

(Continued)

92

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	September 30, 2021 $ 63,873 794,379 147,487 - 4,371,066 204,682 - 29,600 - 2,294,500 $ 7,905,587	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	September 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) Notes and accounts receivable Machinery Financial assets at fair value through other comprehensive income—non-current (stocks)	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			54,602 557,187 165,141 5,513,161 4,377,163 126,324 912,626 172,686 82,796 -
				11,961,686

(Continued)

93

QISDA CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

9. Significant commitments and contingencies

• (a) Significant unrecognized commitments

Unused letters of credit	September 30, 2021 $ 1,334,556	December 31, 2020 1,097,310	September 30, 2020
			1,062,382

• (b) Significant contingent liabilities

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

10. Significant loss from disaster: None.

11. Significant subsequent events

In order to enhance the vertical integration capabilities, strengthen the ability to penetrate into the display market, and serve the needs of medical customers, on October 19, 2021, the Board of Directors of DIC approved a resolution to acquire 20,856,000 shares of common stock of DIVA Laboratories, Ltd. (“DIVA Labs”) at a price of not higher than $30 (Dollars) per share, wherein the total transaction amount is limited to $625,680. After completion of the above transaction, DIC is expected to hold 33.8% ownership of DIVA Labs.

12. Others

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

	For the three months ended September 30, 2021	For the three months ended September 30, 2021	For the three months ended September 30, 2021	For the three months ended September 30, 2020	For the three months ended September 30, 2020	For the three months ended September 30, 2020
	Cost of sales	Operating expenses	Total	Cost of sales	Operating expenses	Total
Employee benefits: Salaries Insurance Pension Others Depreciation Amortization	2,627,226 206,879 137,672 211,297 598,116 9,957	2,977,383 248,653 124,559 195,611 353,012 247,791	5,604,609 455,532 262,231 406,908 951,128 257,748	2,189,476 164,179 77,098 170,804 555,524 21,498	2,645,881 205,431 93,945 144,382 290,323 174,765	4,835,357 369,610 171,043 315,186 845,847 196,263

(Continued)

94

QISDA CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

	For the nine months ended September 30, 2021	For the nine months ended September 30, 2021	For the nine months ended September 30, 2021	For the nine months ended September 30, 2020	For the nine months ended September 30, 2020	For the nine months ended September 30, 2020
	Cost of sales	Operating expenses	Total	Cost of sales	Operating expenses	Total
Employee benefits: Salaries Insurance Pension Others Depreciation Amortization	7,729,799 585,913 386,848 608,562 1,815,439 41,417	8,973,960 729,712 370,697 544,304 1,002,781 676,696	16,703,759 1,315,625 757,545 1,152,866 2,818,220 718,113	5,815,746 418,522 208,920 451,487 1,573,914 58,621	6,753,630 543,564 236,117 422,337 753,419 366,761	12,569,376 962,086 445,037 873,824 2,327,333 425,382

• (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)

95

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 th	ree months ende	d September 30,	2021
	DMS $ 28,859,345 3,106,983 $ 31,966,328 $ 704,054	Brand 15,228,211 151,647 15,379,858 733,895	Material 4,044,366 2,489 4,046,855 306,632 For the th	Medical 2,363,506 8,009 2,371,515 77,316 ree months ende	Networks 6,705,716 240 6,705,956 127,820 d September 30,	Others - - - (703) 2020		Eliminations - (3,269,368) (3,269,368) 32,759		Total
										57,201,144 -
										57,201,144
										1,981,773
		Brand 14,082,845 125,588 14,208,433 791,082	Material 3,820,485 5,374 3,825,859 151,578 For the n	Medical 2,064,647 1,638 2,066,285 93,987 ine months ended	Networks 6,650,693 - 6,650,693 244,863 September 30,	Others - - - (93) 2021		Eliminations - (3,193,693) (3,193,693) 31,222		Total
										51,694,509 -
										51,694,509
										2,050,608
		Brand 43,267,510 406,037 43,673,547 2,446,629	Material 12,397,245 9,013 12,406,258 770,217 For the n	Medical 6,924,542 8,577 6,933,119 263,348 ine months ended	Networks 21,454,033 240 21,454,273 358,198 September 30,	Others - - - (1,756) 2020		Eliminations - (8,770,616) (8,770,616) 90,122		Total
										164,088,700 -
										164,088,700
										5,606,624
		Brand 39,387,568 399,372 39,786,940 1,694,375	Material 10,980,421 9,757 10,990,178 334,146	Medical 5,295,247 1,875 5,297,122 150,936	Networks 6,650,693 - 6,650,693 244,863	Others - - - (336)		Eliminations - (8,273,276) (8,273,276) 83,145		Total
										134,567,447 -
										134,567,447
										4,522,353

Table 1

QISDA CORPORATION AND SUBSIDIARIES

Financing provided to other parties For the nine months ended September 30, 2021

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

Table 1
No.	Name of Lender	Name of Borrower	Financial Statement Account	Is a Related Party	Highest Balance of Financing to Other Parties During the Period	Ending Balance	Actual Usage Amount During the Period	Range of Interest Rates During the Period	Purpose of Fund Financing for the Borrower	Transaction Amounts	Reasons for Short-term Financing	Allowance for Bad Debt	Collateral		Finanacing Limits for Each Borrowing Company	Financing Company's Total Financing Amounts Limits
													Item	Value
13 12 11 11 10 9 9 6 8 8 8 3 5 7 7 1 4 2 1 1 1 4 0	Hong Kong Ace Pillar Enterprise Company AEWIN Grace Transmission (Tianjin) Co., Ltd. Grace Transmission (Tianjin) Co., Ltd. Ace Pillar Co., Ltd. Cyber South Ace Pillar Co., Ltd. NMHC BMS BMS BMS QLPG BIC QCOS QCOS BBM BenQ QLLB BenQ BenQ BenQ BBM The Company	Tianjin Ace Pillar Co., Ltd. Aewin Beijing Technologies Co., Ltd Advancedtek Ace (TJ) Inc. Tianjin Ace Pillar Co., Ltd. Suzhou Super Pillar Automation Equipment Co., Ltd. Suzhou Super Pillar Automation Equipment Co., Ltd. Tianjin Ace Pillar Co., Ltd. Nanjing BenQ Hospital Co., Ltd.(“NMH”)(Note 20) BenQ Materials Medical Supplies (Suzhou) Co., Ltd (“BMM”)(Note 20) Suzhou Sigma Medical Supplies Co., Ltd. (“SGS”)(Note 20) BenQ Meterials (Wuhu) Co., Ltd.(Note 20) QLLB Suzhou BenQ Hospital Co., Ltd. (“SMH”)(Note 20) Qisda (Shanghai) Co., Ltd. (“QCSH”)(Note 20) Suzhou BenQ Hospital Co., Ltd. (“SMH”)(Note 20) Nanjing BenQ Hospital Co., Ltd.(“NMH”) Darly Venture (L) Ltd Darly 2 Darly C Qisda (Shanghai) Co., Ltd. (“QCSH”) BQL Suzhou BenQ Hospital Co., Ltd. (“SMH”) APV	Other receivables from related parties Other receivables from relatedparties 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 yes yes	200,000 256,770 (USD 9,000) 142,650 (USD 5,000) 200,000 300,000 3,219,000 (USD 116,000) 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) 85,992 (CNY 20,000) 1,149,014 (CNY 265,000) 86,718 (CNY 20,000) 259,560 (CNY 60,000) 250,560 28,530 15,692 2,602 13,008 17,344 85,590	- 250,560 (USD 9,000) 139,200 (USD 5,000) - - 1,614,720 (USD 58,000) 545,489 (MYR 82,000) 111,360 (USD 4,000) 835,200 (USD 30,000) 21,498 (CNY 5,000) 22,358 (CNY 5,200) 730,932 (CNY 170,000) 85,992 (CNY 20,000) 1,139,394 (CNY 265,000) - 128,988 (CNY 30,000) 250,560 27,840 - 2,580 12,899 17,198 -	- 250,560 (USD 9,000) 139,200 (USD 5,000) - - 1,614,720 (USD 58,000) 232,831 (MYR 35,000) - 556,800 (USD 20,000) 21,498 (CNY 5,000) 22,358 (CNY 5,200) 730,932 (CNY 170,000) 85,992 (CNY 20,000) 837,562 (CNY 194,800) - 25,798 (CNY 6,000) 167,040 27,840 - 2,580 12,899 17,198 -	- 1.80% 1.80% 1.80% 1.15% - 0.00%~4.35% 1.00% 1.30% 1.30% 1.30% 1.00% 3.20% 2.00%~2.30% 3.60% - 0.75% - - - - - 1.20%	2 2 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 Operating requirements Operating requirements	- - - - - - - - - - - - - - - - - - - - - - -	- - - - - - - - - - - - - - - - - - - - - - -	- - - - - - - - - - - - - - - - - - - - - - -	226,889 39,646 39,052 39,052 623,588 404,071 404,071 1,886,250 23,567 1,886,250 1,886,250 3,613,923 7,227,846 1,570,058 1,955,880 332,293 1,955,393 1,955,393 7,227,846 5,661,483 1,955,393 1,955,393 1,955,880	39,646 453,778 39,052 39,052 623,588 808,143 808,143 1,886,250 23,567 1,886,250 1,886,250 36,139,231 14,455,692 1,570,058 1,955,880 332,293 3,910,786 3,910,786 3,910,786 5,661,483 3,910,786 1,955,880 14,455,692

� 96 �

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
16 18 17 17 15 14	Jietech Trading (Suzhou)Inc. Hitron Technologies Hitron Technologies Alpha Networks (Chengdu) Co., Ltd. Alpha HK Mirac Networks (Dongguan) Co., Ltd.	Hitron Technologies (SIP) Inc. Hitron Technologies (Vietnam) Inc. Hitron Technologies (SIP) Inc. Alpha Networks (Changshu) Co., Ltd. Alpha Networks (Changshu) Co., Ltd. Alpha Networks (Changshu) Co., Ltd.	Other receivables from relatedparties 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	1,425,960 (USD 51,000) 129,231 (CNY 30,000) 171,984 (CNY 40,000) 922,680 427,950 21,680	904,800 (USD 32,500) - 171,984 (CNY 40,000) 918,720 - -	904,800 (USD 32,500) - 171,984 (CNY 40,000) 612,480 - -	2.00% 1.00% 1.00% 2.00% 2.50% -	2 2 2 2 2 2	- - - - - -	Operating requirements Operating requirements Operating requirements Operating requirements Operating requirements Operating requirements	- - - - - -	- - - - - -	- - - - - -	29,729 935,348 935,348 310,425 565,427 2,171,745	29,729 1,870,697 1,870,697 310,425 565,427 2,171,745

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

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

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

• (Note 4) The aggregate financing amount and the individual financing amount of BBM to subsidiaries shall not exceed 40% of the most recent net worth of BBM.

• (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.,

• (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

• (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

• 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.

� 97 �

QISDA CORPORATION AND SUBSIDIARIES Guarantees and endorsements provided to other parties For the nine months ended September 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
2 0 2 1 2 8 7 3 4 5 6 6 7 7 7 7	Hitron Technologies PTT The Company PTT BenQ PTT Sysage Hitron Technologies DIC ACE Alpha Alpha AEWIN Hitron Technologies Hitron Technologies Hitron Technologies	Hitron Technologies (SIP) Inc. Partner Tech Middle East FZCO QLLB Partner-Tech Europe GmbH MaxGen Partner Tech USA Inc. Corex (Pty) Ltd. Innoauto Technologies Inc. Data Image (Suzhou) Corporation Tianjin Ace Pillar Co., Ltd. Alpha Networks (Changshu) Co., Ltd. Alpha Networks (Dongguan) Co., Ltd. Aewin Beijing Technologies Co., Ltd. Hitron Technologies (Vietnam) Inc. Hitron Technologies (Americas) Inc. Hitron Technologies Europe Holding B.V.	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	838,127 196,397 7,227,846 196,397 1,955,393 196,397 247,114 808,143 4,676,742 4,676,742 4,739,256 226,889 4,739,256 4,676,742 4,676,742 4,676,742	4,581,600 (USD 166,000) 98,157 (BRL17,259) 57,060 57,060 28,530 28,530 (USD 1,000) 327,500 129,780 57,060 194,880 75,000 645,036 836,100 2,168,280 514,446 142,650	2,951,040 (USD 106,000) 90,658 (BRL17,259) 55,680 55,680 27,840 27,840 (USD 1,000) 189,200 64,494 55,680 194,880 - 636,420 612,480 1,781,760 - 139,200	2,951,040 (USD 106,000) 90,658 (BRL17,259) 55,680 55,680 27,840 19,209 (CNY 4,468) 27,947 64,494 23,172 695 - 80,735 - 501,120 - 81,298	- - - - - - - - - - - - - - - -	3.32% 5.67% 8.17% 5.67% 0.93% 2.84% 9.36% 2.25% - 13.61% 2.08% 5.69% 0.59% - 38.10% 13.10%	7,015,113 2,095,317 7,015,113 7,015,113 7,015,113 18,069,616 9,776,965 490,994 490,994 490,994 1,010,179 617,785 7,015,113 9,478,512 567,223 9,478,512	N N N N N Y N N N N N N N N N N	- - - - - - - - - - - - - - - -	- - Y - - - - - - - Y Y Y Y Y -

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

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

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

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

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

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

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

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

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

� 98 �

QISDA CORPORATION AND SUBSIDIARIES

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

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

Table 3

Investing Company	Marketable Securities Type and Name	Relationship with the Securities Issuer	Financial Statement Account	September 30, 2021	September 30, 2021	September 30, 2021	September 30, 2021
				Shares/Units	Carrying Value	Percentage of Ownership	Fair Value	Note
The Company The Company QLLB BMC BMC BMC BMC APV APV APV APV APV APV APV APV APV	Stock: APLEX Technology, Inc. Stock: AU CPEC Huachuang Private Equity Fund (Fujian) Co., Ltd. Fund Stock: Lagis Enterprise Co., Ltd. Stock: Biodenta Corporation Stock: YiLeLaFa Corporation Stock: CUUMed Catheter Medical Co., Ltd. Stock: Hi-Clearance Inc. Stock: Joymaster Inc. Stock: Crystalvue Medical Corp. Stock: Gigastone Corporation Stock: Athena Capital Management Stock: CDIB Capital Innovation Advisors Corporation Preferred Stock: D8AI Holdings Coporation Stock: APLEX Technology, Inc. Stock: Raydium Semiconductor Corporation	- - - - - - - - - - - - - - - -	Financial assets at fair value through other comprehensive income-non-current Financial assets at fair value through other comprehensive income-non-current Financial assets at fair value through other comprehensive income-non-current Financial assets at fair value through other comprehensive income-current Financial assets at fair value through profit or loss-non-current Financial assets at fair value through other comprehensive income-non-current Financial assets at fair value through other comprehensive income-non-current Financial assets at fair value through other comprehensive income-current Financial assets at fair value through other comprehensive income-non-current Financial assets at fair value through other comprehensive income-non-current Financial assets at fair value through other comprehensive income-non-current Financial assets at fair value through other comprehensive income-non-current Financial assets at fair value through other comprehensive income-non-current Financial assets at fair value through other comprehensive income-non-current Financial assets at fair value through other comprehensive income-non-current Financial assets at fair value through other comprehensive income-non-current	1,388 663,599 - 1,680 225 300 206 317 619 672 31 2,000 3,667 10,000 2,144 2,396	45,024 11,712,516 41,933 58,212 (Note 1) 3,000 6,187 42,747 2,236 32,155 296 12,618 25,670 4,227 69,587 888,469	4.61% 6.98% 2.50% 5.25% 2.50% 6.52% 2.12% 0.83% 6.19% 2.77% 0.06% 6.17% 3.33% 6.56% 7.13% 3.58%	45,024 11,712,516 41,933 58,212 - 3,000 6,187 42,747 2,236 32,155 296 12,618 25,670 4,227 69,587 888,469	- - - - - - - - - - - - - - - -

� 99 �

Investing Company	Marketable Securities Type and Name	Relationship with the Securities Issuer	Financial Statement Account	September 30, 2021	September 30, 2021	September 30, 2021	September 30, 2021
				Shares/Units	Carrying Value	Percentage of Ownership	Fair Value	Note
Darly 2 Darly 2 Darly 2 Darly 2 Darly C Darly C Darly C Darly C BenQ PTT DFI DFI DFI DFI AEWIN AEWIN	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 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.	- - - - - - - - - - - - - - - -	Financial assets at fair value through other comprehensive income-non-current Financial assets at fair value through other comprehensive income-non-current Financial assets at fair value through other comprehensive income-non-current Financial assets at fair value through other comprehensive income-non-current Financial assets at fair value through other comprehensive income-non-current Financial assets at fair value through other comprehensive income-non-current Financial assets at fair value through other comprehensive income-non-current Financial assets at fair value through other comprehensive income-non-current Financial assets at fair value through other comprehensive income-non-current Financial assets at fair value through other comprehensive income-non-current Financial assets at fair value through other comprehensive income-non-current Financial assets at fair value through profit or loss-current Financial assets at fair value through 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 profit or loss-non-current	470 1,623 6,000 6,000 34 1,000 1,033 285 1,487 3,500 999 1,442 USD 225 USD 200 10 300	22,490 601,722 88,676 60,000 1,627 6,309 6,426 35,672 71,153 5,196 32,417 25,610 (Note 1) (Note 1) 1,288 (Note 1)	1.94% 2.42% 18.75% 9.12% 0.14% 3.09% 2.24% 0.52% 6.13% 2.30% 3.32% - - - 16.67% 1.42%	22,490 601,722 88,676 60,000 1,627 6,309 6,426 35,672 71,153 5,196 32,417 25,610 - - 1,288 -	- - - - - - - - - - - - - - - -

� 100 �

Investing Company	Marketable Securities Type and Name	Relationship with the Securities Issuer	Financial Statement Account	September 30, 2021	September 30, 2021	September 30, 2021	September 30, 2021
				Shares/Units	Carrying Value	Percentage of Ownership	Fair Value	Note
QCES Sysage Sysage Sysage Sysage Sysage Sysage Sysage Simula Simula GSC Alpha Hitron Technologies Hitron Technologies Hitron Technologies Hitron Technologies Hitron Technologies	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 Fund�,LP. Stock: Optomedia Technology Inc. Stock: Taiwan Competition Co., Ltd. Stock: New Image Medical Co.,Ltd. Stock: TGC, Inc. Stock: Senao International Co., Ltd. Stock: Transcend Information Inc. Stock: Chao Long Motor Parts Corp. Stock: Imagetech Co., Ltd. Stock: Tsunami Visual Technologies, Inc.	- - - - - - - - - - - - - - - - -	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 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	7,692 600 3 3,906 200 2,706 443 (Note 2) 817 500 200 500 152 441 668 120 1,220	264,915 (Note 1) (Note 1) 200,341 890 10,420 2,473 98,672 2,411 2,469 2,960 (Note 1) 4,788 29,591 19,335 (Note 1) (Note 1)	11.20% 1.12% 0.42% 19.53% 1.50% 2.94% 18.09% 12.78% 3.26% 16.67% 0.74% 1.83% - - 1.79% 1.20% 9.34%	264,915 - - 200,341 890 10,420 2,473 98,672 2,411 2,469 2,960 - 4,788 29,591 19,335 - -	- - - - - - - - - - - - - - - - -

� 101 �

Investing Company	Marketable Securities Type and Name	Relationship with the Securities Issuer	Financial Statement Account	September 30, 2021	September 30, 2021	September 30, 2021	September 30, 2021
				Shares/Units	Carrying Value	Percentage of Ownership	Fair Value	Note
Hitron Technologies Hitron Technologies Hitron Technologies Hitron Technologies Interactive Digital	Stock: Pivot Technology Corp. Stock: Cardtek Co., Ltd. Stock: Yesmobile Holdings Company Ltd. Preferred Stock: Codent Networks (Cayman) Ltd. Stock: Transcend Information Inc.	- - - - -	Financial assets at fair value through other comprehensive income-non-current Financial assets at fair value through other comprehensive income-non-current Financial assets at fair value through other comprehensive income-non-current Financial assets at fair value through other comprehensive income-non-current Financial assets at fair value through profit or loss-current	198 1,000 294 1,570 362	(Note 1) (Note 1) (Note 1) (Note 1) 24,290	10.94% 6.45% 0.75% - -	- - - - 24,290	- - - - -

(Note 1) The impairment loss was fully recognized.

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

� 102 �

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 nine months ended September 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 DFI Hitron Technologies Simula	Sysage NSHD Brainstorm ACE 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 Investment accounted for using equity method	- Hangzhou Lan Cheng Hong Chuang Investment Ltd. - - - -	Parent/Subsidiary - Parent/Subsidiary Parent/Subsidiary Parent/Subsidiary Parent/Subsidiary	66,000 - - 37,676 - -	1,856,785 384,857 - 793,722 434,914 -	30,841 - 233 16,282 - 32,001	1,387,856 - 501,582 507,636 668,640 983,857	- - - - - -	- 1,166,166 - - - -	- 179,297 - - - -	- 986,869 - - - -	96,841 - 233 53,958 - 32,001	2,616,378 204,823 501,582 1,301,359 1,117,770 996,826

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

� 103 �

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

For the nine months ended September 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 92,000thousand) Net selling price after tax is 561,173	517,907 which is 93% of the contract price has been received.	365,338	Associates	Visco Technology Sdn. Bhd.	To activate asset and increase working capital	Refer to appraisal report	Payment term� 10% will be charged within 1 month after signing the contact� 20% will be charged within 1 month after the government approval is received� 70% will be charged within 4 month after the government approval is received

� 104 �

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 nine months ended September 30, 2021

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

Table 6

Table 6			For the nine months ended September 30, 2021 (Amounts in thousands of New Taiwan dollars, unless specified otherwise)	For the nine months ended September 30, 2021 (Amounts in thousands of New Taiwan dollars, unless specified otherwise)	For the nine months ended September 30, 2021 (Amounts in thousands of New Taiwan dollars, unless specified otherwise)	For the nine months ended September 30, 2021 (Amounts in thousands of New Taiwan dollars, unless specified otherwise)
Company Name	Related Party	Nature of Relationship	Transaction Detail				Transactions with Terms Different from Others		Notes/Accounts Receivable or (Payable)		Note
			Purchases/ (Sales)	Amount	% of Total Purchases/(Sales)	Payment Terms	Unit Price	Payment Terms	Ending Balance	% of Total Note/ Accounts Receivable or (Payable)
The Company The Company The Company The Company The Company The Company The Company The Company The Company The Company QCSZ QCSZ QCSZ QCSZ QCSZ QCOS QCOS QCOS QCOS QCOS QCOS QCES QCES QCPS QCPS QALA QJTO BenQ BenQ BenQ BenQ BenQ BenQ BenQ BenQ BQA BQA BQC_RO BQC_RO BQC_RO BQC_RO BQE BQE BQE BQE BQE BQE BQE BQE BQE BQE BQL	BenQ QJTO QALA AU AUSZ QCSZ QCOS DFI Topview BBC The Company AU BQC_RO QCPS DIC The Company BQC_RO QCES QCPS AU AU QCOS DARWIN QCSZ QCOS The Company The Company The Company AU BQA BQC_RO BQE BQHK_HLD BQL BQP BQCA BenQ QCOS QCSZ BenQ BQsha_EC2 BenQ BQDE BQFR BQIT BQUK BQAT BQSE BQIB BQNL BQCH BenQ	Parent/Subsidiary Parent/Subsidiary Parent/Subsidiary (Note 5) (Note 5) Parent/Subsidiary Parent/Subsidiary Parent/Subsidiary Parent/Subsidiary Parent/Subsidiary Parent/Subsidiary Other related party Affiliates Affiliates Affiliates Parent/Subsidiary Affiliates Affiliates Affiliates Other related party Other related party Affiliates Other related party Affiliates Affiliates Parent/Subsidiary Parent/Subsidiary Parent/Subsidiary Other related party Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates	(Sales) (Sales) (Sales) (Sales) (Sales) Purchases Purchases (Sales) (Sales) (Sales) (Sales) Purchases (Sales) Purchases Purchases (Sales) (Sales) Purchases Purchases Purchases Purchases (Sales) Purchases (Sales) (Sales) Purchases Purchases Purchases Purchases (Sales) (Sales) (Sales) (Sales) (Sales) (Sales) (Sales) Purchases Purchases Purchases Purchases (Sales) Purchases (Sales) (Sales) (Sales) (Sales) (Sales) (Sales) (Sales) (Sales) (Sales) Purchases	(5,814,009) (2,019,847) (17,181,487) (4,460,363) (1,465,537) 55,723,096 10,046,569 (292,162) (182,118) (106,951) (55,723,096) 5,671,221 (798,614) 1,083,224 419,244 (10,046,569) (987,232) 595,041 184,211 103,872 307,483 (595,041) 108,889 (1,083,224) (184,211) 17,181,487 2,019,847 5,814,009 2,765,443 (2,629,932) (104,936) (5,695,202) (110,472) (392,393) (4,193,673) (602,614) 2,629,932 987,232 798,614 104,936 (122,742) 5,695,202 (1,403,505) (591,210) (328,960) (1,020,302) (630,442) (272,399) (485,801) (250,417) (149,257) 392,393	(8) (3) (23) (6) (2) 77 14 - - - (91) 9 (1) 2 1 (83) (8) 5 2 1 3 (4) 1 (80) (14) 100 100 48 23 (20) (1) (43) (1) (3) (32) (5) 86 32 34 5 (1) 100 (24) (10) (6) (18) (11) (5) (8) (4) (3) 98	OA90 OA120 OA90 OA120 OA120 OA120 OA120 OA60 OA60 OA30 OA120 EOM55 OA120 OA60 EOM45 OA120 OA120 OA60 OA60 OA60 OA60 OA60 OA60 OA60 OA61 OA90 OA120 OA90 EOM55 OA90 OA120 OA90 OA90 OA90 OA60 OA60 OA90 OA120 OA120 OA120 OA120 OA90 OA30 OA30 OA30 OA30 OA45 OA30 OA30 OA30 OA30 OA90	- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -	- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -	2,716,951 1,032,235 4,798,623 1,303,097 705,878 (13,667,191) (2,082,080) 76,908 23,598 51,122 13,667,191 (448,849) 128,705 (129,267) (197,505) 2,082,080 16,838 (59,546) (28,255) (13,403) (88,860) 59,546 (48,386) 129,267 28,255 (4,798,623) (1,032,235) (2,716,951) (664,126) 540,240 15,772 2,550,275 22,676 229,387 1,425,585 174,560 (540,240) (16,838) (128,705) (15,772) 4,386 (2,550,275) 83,027 268,716 18,381 189,007 42,856 27,070 57,019 65,091 28,161 (229,387)	13 5 23 6 3 (65) (10) - - - 88 (3) 1 (1) (1) 89 1 (2) (1) - (3) 2 (2) 65 14 (100) (99) (53) (13) 10 - 46 - 4 26 24 (100) (3) (21) (3) 1 (98) 9 30 2 21 5 3 6 7 3 (84)	- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

� 105 �

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)	Note
			Purchases/ (Sales)	Amount	% of Total Purchases/(Sales)	Payment Terms	Unit Price	Payment Terms	Ending Balance	% of Total Note/ Accounts Receivable or (Payable)
BQL BQP BQP BQP BQP BQP BQP BQAT BQAU BQCA BQDE BQFR BQHK_HLD BQIB BQIN BQIT BQJP BQME BQMX BQSE BQsha_EC2 BQTH BQUK BQNL BQCH BBC ESM GSC K2 K2(Shanghai) Topview Topview Messoa Technologies Inc. DIC DIC Data Image (Suzhou) Corporation Data Image (Suzhou) Corporation DFI DFI DFI AMERICA, LLC. DFI DFI Co., Ltd. DFI Diamond Flower Information (NL) B.V. DFI DYTH AEWIN Aewin Beijing Technologies Co., Ltd Advancedtek Ace (TJ) Inc. Tianjin Ace Pillar Co., Ltd. Alpha Alpha Alpha Alpha Changshu Alpha HK D-Link Asia Hitron Technologies	BQMX BQAU BOIN BQJP BOME BQTH BenQ BQE BQP BQA BQE BQE BenQ BQE BQP BQE BQP BQP BQL BQE BQC_RO BQP BQE BQE BQE The Company GSC ESM K2(Shanghai) K2 The Company Messoa Technologies Inc. Topview QCSZ Data Image (Suzhou) Corporation DIC AU The Company DFI AMERICA, LLC. DFI DFI Co., Ltd. DFI Diamond Flower Information (NL) B.V. DFI DYTH DFI Aewin Beijing Technologies Co., Ltd AEWIN Tianjin Ace Pillar Co., Ltd. Advancedtek Ace (TJ) Inc. Alpha USA D-Link Asia Alpha Changshu Mirac Alpha Changshu Alpha Dongguan Hitron Americas	Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Parent/Subsidiary Affiliates Affiliates Affiliates Affiliates Parent/Subsidiary Affiliates Affiliates Affiliates Affiliates Affiliates Other related party Parent/Subsidiary Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates	(Sales) (Sales) (Sales) (Sales) (Sales) (Sales) Purchases Purchases Purchases Purchases Purchases Purchases Purchases Purchases Purchases Purchases Purchases Purchases Purchases Purchases Purchases Purchases Purchases Purchases Purchases Purchases (Sales) Purchases (Sales) Purchases Purchases (Sales) Purchases (Sales) Processing cost Processing Income Purchases Purchases (Sales) Purchases (Sales) Purchases (Sales) Purchases (Sales) Purchases (Sales) Purchases (Sales) Purchases (Sales) Purchases Purchases (Sales) (Sales) Purchases (Sales)	(234,664) (274,769) (522,353) (1,506,502) (716,688) (134,657) 4,193,673 630,442 274,769 602,614 1,403,505 591,210 110,472 485,801 522,353 328,960 1,506,502 716,688 234,664 272,399 122,742 134,657 1,020,302 250,417 149,257 106,951 (284,322) 284,322 (172,541) 172,541 182,118 (154,220) 154,220 (419,244) 1,484,405 (1,484,405) 351,183 292,162 (414,815) 414,815 (176,905) 176,905 (244,660) 244,660 (101,934) 101,934 (296,515) 296,515 (349,324) 349,324 (3,423,646) 4,676,843 4,817,713 (453,254) (5,011,385) 4,676,843 (3,382,225)	(53) (6) (11) (31) (15) (3) 97 100 80 98 100 100 91 100 84 100 108 90 92 98 96 97 100 97 100 73 (88) 80 (38) 100 15 (11) 99 (10) 66 (49) 15 11 (16) 98 (7) 99 (10) 100 (4) 89 (35) 89 (100) 34 (26) 37 58 (9) (100) 55 (46)	OA90 OA60 OA60 OA60 OA60 OA60 OA60 OA45 OA60 OA60 OA30 OA30 OA90 OA30 OA60 OA30 OA60 OA60 OA90 OA30 OA120 OA60 OA30 OA30 OA30 OA30 OA60 OA60 OA90 OA90 Depends on its contractual terms Depends on its contractual terms Depends on its contractual terms EOM45 Depends on its working capital status Depends on its working capital status EOM45 OA60 60~90 Days 60~90 Days 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 90 Days 90 Days 90 Days 90 Days 90 Days 90 Days 90 Days	- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -	- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -	162,484 57,334 524,253 413,287 286,674 109,669 (1,425,585) (42,856) (57,334) (174,560) (83,027) (268,716) (22,676) (57,019) (524,253) (18,381) (413,287) (286,674) (162,484) (27,070) (4,386) (109,669) (189,007) (65,091) (28,161) (51,122) 62,570 (62,570) 65,914 (65,914) (23,598) 55,796 (55,796) 197,505 (205,556) 205,556 (103,230) (76,908) 68,851 (68,851) 17,236 (17,236) 31,673 (31,673) 26,631 (26,631) 459,386 (459,386) 99,675 (99,675) 911,321 (881,050) (552,582) 60,530 1,370,469 (928,378) 1,037,851	26 3 29 22 16 6 (100) (99) (97) (100) (106) (99) (94) (94) (100) (89) (98) (95) (95) (94) (99) (100) (97) (99) (91) (80) 89 (97) 30 (100) (5) 11 (99) 19 (27) 20 (14) (9) 10 (98) 3 (93) 5 (100) 4 (88) 69 (70) 99 (45) 25 (33) (22) 9 (52) (51) 63	- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

� 106 �

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)	Note
			Purchases/ (Sales)	Amount	% of Total Purchases/(Sales)	Payment Terms	Unit Price	Payment Terms	Ending Balance	% of Total Note/ Accounts Receivable or (Payable)
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 BMC BMM SGM BMS BenQ Material (Wuhu) Co., Ltd. Simula Simula Technology (ShenZhen) Co., Ltd. PTT PTT PTE PTU	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 BMM SGM BMS BenQ Material (Wuhu) Co., Ltd. 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 Affiliates Affiliates Other related party Other related party Other related party Affiliates Affiliates Affiliates Affiliates Associate Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates	(Sales) (Sales) (Sales) (Sales) Purchases (Sales) (Sales) Purchases Purchases (Sales) Purchases Purchases Purchases Purchases Purchases (Sales) (Sales) (Sales) (Sales) (Sales) Purchases Purchases Purchases Purchases Purchases (Sales) (Sales) Purchases (Sales) (Sales) (Sales) Purchases Purchases	(538,930) (4,269,072) (756,738) (153,125) 3,423,646 (4,676,843) (4,817,713) 453,254 5,011,385 (4,676,843) 538,930 3,382,225 756,738 153,125 4,269,072 (2,754,190) (934,910) (639,967) (273,397) (215,854) 597,401 146,853 224,389 273,397 215,854 (597,401) (146,853) 606,605 (606,605) (260,085) (177,899) 260,085 177,899	(7) (58) (10) (2) 100 (55) (91) 97 88 99 100 96 10 3 54 (23) (8) (5) (2) (2) 6 1 2 1 93 90 47 88 (90) (31) (22) 45 97	90 Days 60 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 OA90 OA30 OA120 OA90 OA90 OA90 EOM60 EOM60 OA90 OA90 OA90 OA90	- - - - - - - - - - - - - - - (Note 1) (Note 1) (Note 1) (Note 1) (Note 1) (Note 2) (Note 2) (Note 2) - - - - (Note 4) Equal to third-party customers (Note 3) (Note 3) (Note 3) (Note 3)	- - - - - - - - - - - - - - - - - - - - - - - - - - - Third-party vendor: EOM 30-120 Non-related party: EOM 30-120 - - - -	165,007 546,983 - - (911,321) 881,050 552,582 (60,530) (1,370,469) 928,378 (165,007) (1,037,851) - - (546,983) 390,775 359,017 208,171 215,148 180,207 (223,154) (55,600) (25,985) (215,148) (180,207) 223,154 55,600 (122,777) 122,777 88,339 76,644 (88,339) (76,644)	10 33 - - (100) 49 86 (52) (71) 95 (98) (100) - - (80) 13 12 7 7 6 (7) (2) (1) 94 (100) 97 45 67 79 20 18 (67) (99)	- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

• (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.

� 107 �

QISDA CORPORATION AND SUBSIDIARIES Receivables from related parties which exceed NT$100 million or 20% of the paid-in capital For the nine months ended September 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 QCSZ QCOS QCES QCPS BenQ BenQ BenQ BenQ BenQ BenQ BQA BQE BQE BQL BQL BQP BQP BQP BQP DIC Data Image (Suzhou) Corporation AEWIN ACE Alpha Alpha D-Link Asia Alpha Changshu Alpha Dongguan	BenQ QJTO QALA AU AUSZ QCSZ QCOS The Company BQC_RO The Company The Company QCSZ BQA BQE BQL BQP QCSZ QVH BQCA BQFR BQUK BQMX Maxgen BQIN BQJP BQME BQTH QCSZ DIC Aewin Beijing Technologies Co., Ltd Tianjin Ace Pillar Co., Ltd. Alpha USA Alpha HK Alpha Alpha D-Link Asia	Parent/Subsidiary Parent/Subsidiary Parent/Subsidiary (note 4) (note 4) Parent/Subsidiary Parent/Subsidiary Parent/Subsidiary Affiliates Parent/Subsidiary Parent/Subsidiary 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	2,716,951 1,032,235 4,798,623 1,303,097 705,878 639,877 359,502 13,667,191 128,705 2,082,080 3,135,550 129,267 540,240 2,550,275 229,387 1,425,585 243,104 113,429 174,560 268,716 189,007 162,484 429,817 524,253 413,287 286,674 109,669 197,505 205,556 459,386 167,272 911,321 227,880 881,050 552,582 928,378	2.70 2.95 4.14 4.48 2.60 (note 1) (note 1) 4.69 9.28 4.74 (note 1) 10.33 6.13 2.92 1.89 3.66 (note 1) (note 1) 4.47 2.33 8.15 1.86 0.27 1.19 5.82 3.31 1.73 (note 1) (note 1) 0.93 (note 1) 6.70 (note 1) 3.45 12.10 3.39	696,523 - 12,777 - - 22,288 13,496 1,457,352 - - 78,501 - - 666,241 354,912 218,047 13,761 21,829 - 204 61 109,842 407,277 325,841 95,934 68,488 73,437 - - 255,050 - - - - 3 186,940	- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -	422,742 169,889 861,779 - 171,961 - 148,495 4,781,700 - 1,161,745 3,135,550 - - - 2,476 327,210 - 42,861 60,984 - - 11,136 - - 163,605 31,878 - - - 11,660 - - - 18,127 105,791 18,127	- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

� 108 �

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 HK D-Link Asia Hitron Technologies Hitron Technologies Hitron Technologies Hitron Vietnam BMC BMC BMC BMC BMC BMS Simula Technology (ShenZhen) Co., Ltd.	Alpha Changshu Alpha Dongguan Hitron Americas Hitron Europe Hitron Vietnam Hitron Technologies AU AUSZ AUX BMM SGM BMC Simula	Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Other related party Other related party Other related party Affiliates Affiliates Affiliates Affiliates	1,370,469 863,836 1,037,851 165,007 1,389,709 546,983 390,775 359,017 208,171 215,148 180,207 223,154 122,777	8.57 3.14 3.09 3.45 (note 1) 7.11 3.54 (note 2) 3.21 (note 2) 3.25 (note 2) 2.43 (note 2) 2.34 (note 2) 5.37 (note 2) 5.33	- 3,245 - - - - - - - - - - -	- - - - - - - - - - - - -	95,033 18,126 218,494 61,493 256,167 278,903 - - - 19,788 28,010 33,369 92,181	- - - - - - - - - - - - -

(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.

(Note 4) 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.

� 109 �

QISDA CORPORATION AND SUBSIDIARIES

Business relationships and significant intercompany transactions

For the nine months ended September 30, 2021

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

Table 8

Table8
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 0 0 1 2 3	The Company The Company The Company QCSZ QCOS BenQ BenQ BenQ BenQ Alpha HK Hitron Technologies Hitron Vietnam D-Link Asia Alpha Changshu Alpha Dongguan The Company The Company QCSZ QCOS BenQ	BenQ QJTO QALA The Company The Company BQA BQE BQP Alpha USA Alpha Changshu Hitron Americas Hitron Technologies Alpha Alpha D-Link Asia BenQ QALA The Company The Company BQE	1 1 1 2 2 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) Accounts receivable Accounts receivable Accounts receivable Accounts receivable Accounts receivable	(5,814,009) (2,019,847) (17,181,487) (55,723,096) (10,046,569) (2,629,932) (5,695,202) (4,193,673) (3,423,646) (5,011,385) (3,382,225) (4,269,072) (4,676,843) (4,817,713) (4,676,843) 2,716,951 4,798,623 13,667,191 2,082,080 2,550,275	OA90 OA120 OA90 OA120 OA120 OA90 OA90 OA60 90 Days 90 Days 90 Days 60 Days 90 Days 90 Days 90 Days OA90 OA90 OA120 OA120 OA90	(4%) (1%) (10%) (34%) (6%) (2%) (3%) (3%) (2%) (3%) (2%) (3%) (3%) (3%) (3%) 2% 3% 8% 1% 1%

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

1. "0" represents the Company.

2. Subsidiaries are numbered from "1".

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

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

• No. “2” represents the transactions from subsidiary to the Company. No. “3” represents the transactions between subsidiaries.

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

The corresponding purchases and accounts payables are not disclosed.

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

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

� 110 �

QISDA CORPORATION AND SUBSIDIARIES

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

For the nine months ended September 30, 2021

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

Table 9

Table 9
Investor	Investee	Location	Main Businesses and Products	Original investment Amount		Balances as of September 30, 2021			Net Income (Loss) of the Investee	Investment Income (Loss)	Note
				September 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 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 SGM Visco Vision Inc. Cenefom Corporation Taike Biotech Co., Ltd. MLK Bioscience Co., Ltd. Kangde Corp. 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 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 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 5,980 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 - 217 598 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% 20.00% 45.11% 4.73% 7.96% 10.21%	- 1,907,135 571,461 9,807,864 49,849 44,982 316,529 13,883,645 3,385,577 205,629 939,152 1,362,229 87,533 1,000 60,159 2,834,693 7,644,269 214,813 338,008 82,488 2,616,378 206,156 785,194 620,808 275,476 1,611,937 110,787 96,753 12,137 - 4,681 4,689 193,228 226,370 82,227 503,538	18,268,182 815,269 709,202 1,477,822 7,188 (6,835) 434,116 511,270 261,217 57,437 1,062,794 69,960 (27,339) (2) 18,013 199,875 341,226 44,453 213,649 9,318 447,150 89,929 (172,291) 69,590 90,401 112,001 (12,682) 247,555 (8,257) (3,469) (5,129) (791) 7,210 709,202 16,666 1,062,794	1,255,866 168,895 17,186 1,480,923 7,188 (6,835) 434,116 859,423 261,217 57,437 205,674 15,168 (26,999) (2) 3,603 30,425 116,037 14,187 61,740 5,032 190,056 18,494 (172,291) 14,296 42,612 - - - - - - - - - - -	(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 Associate Affiliates Affiliates Affiliates Affiliates

�111�

Investor	Investee	Location	Main Businesses and Products	Original investment Amount	Original investment Amount	Balances as of September 30, 2021	Balances as of September 30, 2021	Balances as of September 30, 2021	Net Income (Loss) of the Investee	Investment Income (Loss)	Note
				September 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 88,222 201,673 150,000 28,000 273,445 30,456 471,516 114,553 203,839 859,037 960,568 950,000 2,361,132 74,021 233,491 946,731 719,088 235,069 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 5,390 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% 6.74% 50.00% 24.00% 2.35% 12.50% 5.78% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 37.50% 5.01% 25.21% 8.16% 43.43% 100.00% 100.00% 100.00% 0.31% - 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00%	7,012 156,027 14 144,041 246,914 64,190 78,318 209,326 179,132 4,105 235,286 18,334 282,419 824,321 (52,146) 2,927,194 836,502 401,650 3,798,783 54,991 460,760 1,205,586 400,411 437,124 69,090 89,500 1,176,845 40 348 57,481 52,988 111,651 (10,500) 78,107 6,990 (56,157) 3,767	(1,911) 69,960 3,151 199,875 341,226 89,929 213,649 69,590 90,401 (1,911) 341,226 (28,884) 1,062,794 129,959 3,999 110,302 187,606 260,629 345,436 (28,884) 815,269 709,202 1,062,794 16,666 2,067 2,866 397,227 4,449 341,226 28,875 27,861 36,523 5,154 14,900 (435) (11,098) (2,457)	- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -	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

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Investor	Investee	Location	Main Businesses and Products	Original investment Amount	Original investment Amount	Balances as of September 30, 2021	Balances as of September 30, 2021	Balances as of September 30, 2021	Net Income (Loss) of the Investee	Investment Income (Loss)	Note
				September 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 20,006 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 3 1 1 1 1 3 5,756 14,728 65,024 3,120 1,590 1,800 1,648 9,175 4,185 1,003 3,005 2,615 5,500 - - - - - 50 - - - 1,995 1,062 10,000 8,800 10,000 700 1,092 2,500	99.69% 100.00% 99.97% 100.00% 100.00% 50.00% 50.00% 99.97% 99.94% 54.89% 26.55% 50.00% 3.57% 18.00% 2.19% 8.01% 0.77% 5.01% 4.33% 9.10% 6.88% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 99.75% 100.00% 100.00% 88.00% 100.00% 70.00% 52.00% 100.00%	13,097 46,980 45,561 (136,391) (136,391) (136,391) (136,391) 3,243 74,697 235,109 1,309,681 73,321 36,839 3,078 42,813 576,496 72,928 48,519 62,001 129,062 213,541 106,131 126,250 (31,815) 60,777 89,108 34,922 (126,251) 20,076 13,732 27,272 9,497 236,325 58,245 129,554 24,053 68,096 27,562	4,449 41,324 8,524 (5,029) (5,029) (10,059) (10,059) (10) 3,151 7,210 1,062,794 (28,884) 16,666 (1,911) 69,960 199,875 341,226 44,453 213,649 89,929 69,590 59,349 (1,356) 529 7,199 6,154 4,533 (10,619) (7,771) 375 2,033 1,687 11,396 2,479 22,764 5,531 19,754 7,490	- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -	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

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Investor	Investee	Location	Main Businesses and Products	Original investment Amount	Original investment Amount	Balances as of September 30, 2021	Balances as of September 30, 2021	Balances as of September 30, 2021	Net Income (Loss) of the Investee	Investment Income (Loss)	Note
				September 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 Software development and sales of product Software development and sales of product 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 Software development and sales of product Sales, import and export of electronic products Sales, import and export of electronic products Investment and holding activity Sales, import and export of electronic products Sales of industrial motherboards Investment and holding activity Sales of industrial motherboards Sales of industrial motherboards Manufacture and sale of industrial motherboards and component Sales of automation mechanical transmission system and component Wholesale and retail of computers and peripherals product Investment and holding activity Wholesale of computer peripheral products and software Investment and holding activity Investment and holding activity Sales of automation mechanical transmission system and component Investment and holding activity Investment and holding activity Sales of medical consumables Sales of medical consumables Investment and holding activity 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 - 5,640 980 - 2,485 10 - 1,560 134,973 31,593 254,683 187,260 104,489 35,219 564,191 1,301,359 501,582 46,129 77,791 46,129 107,041 5,120 527,665 4,938 15,919 257,728 518,381 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 - 1,560 134,973 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 (Note1) 0.099 100 2,050 1,100 - 114 (Note1) (Note1) 0.3 1 - 0.001 4,560 1,091 1,209 6,000 6 12 30,376 53,958 233 1,500 2,560 1,500 4,669 1,200 17,744 150 - - 20,215 300 100 10,475	100.00% 88.60% 50.02% 99.00% 50.10% 50.62% 52.38% - 11.40% 90.00% 68.00% 100.00% 0.02% - 1.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 51.38% 48.07% 35.09% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 49.00% 67.00% 100.00% 30.00% 100.00% 79.36%	157,465 34,671 135,738 19,443 27,486 25,280 16,285 - 5,318 (15,700) 21,562 (53,182) 10 - 163 147,220 69,036 363,847 177,362 290,410 66,623 583,383 1,081,091 536,677 124,513 (690) 159,902 623,588 39,646 498,739 (1,478) 20,033 292,879 306,897 3,408 6,125 198,831	12,743 5,046 57,484 4,730 4,976 (3,044) 7,029 - 5,046 800 13,604 (408) (3,044) - 4,730 12,590 12,776 3,383 5,442 5,625 10,829 22,428 122,404 237,863 46,970 (4,470) 46,970 57,884 (622) 46,102 2,768 7,635 36,896 33,094 592 (19,995) 45,768	- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -	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

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Investor	Investee	Location	Main Businesses and Products	Original investment Amount	Original investment Amount	Balances as of September 30, 2021	Balances as of September 30, 2021	Balances as of September 30, 2021	Net Income (Loss) of the Investee	Investment Income (Loss)	Note
				September 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 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 Aespula Technologies Inc. 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 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 Sale of network equipment, components and technical services International trade Telecommunication and broadband network system services International trade International trade	506 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 3,143,628 260,497 320,000 4,811,000 1,692,805 189,523 50,000 80,000 669,031 167,026 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	67 5,000 5,643 1,153 1 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 3,200 200,000 86,946 2,575 5,000 8,000 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% 23.33% 59.35% 95.10% 47.69% 100.00% 66.57% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 62.24% 100.00% 6.65% 100.00% 100.00% 100.00% 43.10% 100.00% 100.00%	666 27,797 93,789 33,790 304,783 89,262 4,345 172 40 2,879 99 2,060 20,449 28,296 151,713 152,715 1,535 996,826 15,197 138,294 49,555 226,483 (40,127) 19,834 160,120 2,165,002 167,853 228,602 3,894,601 1,746,834 108,653 24,937 79,125 570,243 492,196 11,512 236,215	(165) (18,749) (20,058) 12,396 27,403 (13,790) (2,227) 45,768 (13,790) 368 (1) 675 2,579 4,880 (9,844) (6,442) (5,909) 47,984 (1,838) (9,844) 31,384 46,589 (16,337) (8) 24,887 (5,137) 1,095 (4,026) 50,765 (3,622) 145,294 (10,585) (134) (160,675) 145,294 37,139 60,640	- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -	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 Affiliates

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Investor	Investee	Location	Main Businesses and Products	Original investment Amount	Original investment Amount	Balances as of September 30, 2021	Balances as of September 30, 2021	Balances as of September 30, 2021	Net Income (Loss) of the Investee	Investment Income (Loss)	Note
				September 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	20,000 1,218,995	50,000 550,355	2,000 -	100.00% 100.00%	3,662 1,117,770	(13,422) 15,671	- -	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 110 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.

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Table 10

QISDA CORPORATION AND SUBSIDIARIES Information on investments in Mainland China

For the nine months ended September 30, 2021

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

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 September 30, 2021	Net Income (Loss) of Investee	% of Ownership of Direct or Indirect Investment	Investment Income (Loss)	Carrying Value as of September 30, 2021	Accumulated Inward Remittance of Earnings as of September 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”) ShengCheng Trading(Shanghai) Co., Ltd. (“BQsha_EC2”) BenQ Technology (Shanghai) Co., Ltd. (“BQls”) 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”) Guru Systems (Suzhou) Co., Ltd. (“GSS”) Nanjing Silvertown Health & Development Co., Ltd. Guangxi Youshan Medical Technology Co., Ltd. (“Youshan”) BenQ Biotech (Shanghai) Co., Ltd. (“BBC”) Wangcheng Medical Technology �Chengdu�Co.,Ltd(“Wangcheng”)	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 of brand name electronic products in China market Sales of brand-name electronic products Sales of brand-name electronic products Medical service Medical service Investment and holding activity Medical management consulting R&D and sales of computer information systems Medical services Medical services Manufacture and sales of medical consumables and equipment Medical services	2,060,160 (USD 74,000) 37,862 (USD 1,360) 328,512 (USD 11,800) 346,886 (USD 12,460) 1,851,360 (USD 66,500) 139,200 (USD 5,000) 2,227,200 (USD 80,000) 83,520 (USD 3,000) 27,840 (USD 1,000) 2,784 (USD 100) 4,788,898 (USD 172,015) 2,588,252 (CNY 601,975) 27,840 (USD 1,000) 835,200 (USD 30,000) 429,960 (CNY 100,000) 367,488 (USD 13,200) 644,940 (CNY 150,000) 25,798 (CNY 6,000) 8,599 (CNY 2,000)	(Note 1) (Note 1) (Note 1) (Note 8) (Note 11) (Note 1) (Note 2) (Note 13) (Note 13) (Note 1) (Note 9) (Note 1) (Note 1) (Note 1) (Note 1) (Note 1) (Note 1) (Note 10)	1,976,640 (USD 71,000) - 328,512 (USD 11,800) 346,886 (USD 12,460) 1,336,320 (USD 48,000) 132,240 (USD 4,750) 2,227,200 (USD 80,000) 83,520 (USD 3,000) 5,568 (USD 200) - 4,660,305 (USD 167,396) 2,477,649 (USD 88,996) 27,840 (USD 1,000) - - 270,048 (USD 9,700) 730,932 (CNY 170,000) - -	- - - - - - - - - - 278,400 (USD 10,000) - - - - - 150,486 (CNY 35,000) - -	- - - - - - - - - - - - - - - - - - -	1,976,640 (USD 71,000) - 328,512 (USD 11,800) 346,886 (USD 12,460) 1,336,320 (USD 48,000) (Note 7) 132,240 (USD 4,750) 2,227,200 (USD 80,000) 83,520 (USD 3,000) 5,568 (USD 200) (Note 6) - 4,938,705 (USD 177,396) 2,477,649 (USD 88,996) 27,840 (USD 1,000) - (Note 11) 270,048 (USD 9,700) (Note 5) 881,418 (CNY 205,000) (Note 13) (Note 13)	113,136 (1,247) 160,119 244,477 (12,617) 11,277 110,204 353,062 14,501 20,027 173,907 73,032 (307) 121 (22,206) (32,010) (73,681) 9,130 (892)	100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 70.05% 70.05% 70.05% 70.05% 11.56% 100% 70.00% 38.50% 49.00%	113,136 (Note 3) (1,247) (Note 4) 160,119 (Note 4) 244,477 (Note 3) (12,617) (Note 4) 11,277 (Note 4) 110,204 (Note 3) 353,062 (Note 3) 14,501 (Note 4) 20,027 (Note 4) 121,822 (Note 3) 51,159 (Note 3) (215) (Note 4) 85 (Note 4) (2,567) (Note 4) (32,010) (Note 4) (51,577) (Note 4) 3,515 (Note 4) (437) (Note 4)	9,602,402 34,726 1,609,501 3,925,145 (1,359,825) 395,902 2,933,657 1,068,561 55,760 38,756 2,046,255 648,657 16,509 581,928 143,479 (Note 14) 46,728 647,135 13,719 3,971	- - - 406,548 (USD 14,603) - - - - - - - - - - - - - - -

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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 September 30, 2021	Net Income (Loss) of Investee	% of Ownership of Direct or Indirect Investment	Investment Income (Loss)	Carrying Value as of September 30, 2021	Accumulated Inward Remittance of Earnings as of September 30, 2021
					Outflow	Inflow
Guigang Donghui Medical Investment Co., Ltd. Shanghai Filter Technology Co.,Ltd (“Filter”) Shanghai Zhenglang Medical Equipment Co.,Ltd (“Zhenglang”)	Medical services Sales o f medical consumables and equipment Medical services	601,944 (CNY 140,000) 2,359,001 (CNY 548,656) 25,798 (CNY 6,000)	(Note 13) (Note 12) (Note 13)	- - -	- - -	- - -	(Note 12) (Note 13) (Note 13)	(36) (20,718) (151)	70.00% 9.89% 35.70%	(25) (Note 4) (2,049) (Note 4) (54) (Note 4)	78,227 305,840 (Note 14) 9,156	- - -

• (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$27.84 and CNY$1=NT$4.2996.

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

2. Limits on investments in Mainland China:

Accumulated Investment in Mainland China as of September 30, 2021	Investment Amounts Authorized by Investment Commission, MOEA	Upper Limit on Investment
15,032,546 (USD 508,302 and CNY 205,000)	15,944,163 (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.

�118�

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 September 30, 2021	Net Income (Loss) of Investee	% of Ownership of Direct or Indirect Investment	Investment Income (Loss)	Carrying Value as of September 30, 2021	Accumulated Inward Remittance of Earnings as of September 30, 2021
					Outflow	Inflow
Daxon Biomedical (Suzhou) Co., Ltd. (“DTB”) BenQ Material (Suzhou) Co., Ltd. (“BMS”) BenQ Materials (Wuhu) Co., Ltd. BenQ Materials Medical Supplies (Suzhou) Co., Ltd. (“BMM”) Suzhou Sigma Medical Supplies Co., Ltd. (“SGS”)	Sales of medical consumables Manufacture of optoelectronics film Manufacture and sales of optoelectronics film Manufacture and sales of medical consumables Manufacture and sales of medical consumables and equipment	807,360 (USD29,000) 47,296 (CNY11,000) 343,968 (CNY80,000) 64,494 (CNY15,000) 44,321 (USD1,592)	(Note 4) (Note 4) (Note 3) (Note 1) (Note 1)	807,360 (USD29,000) - 171,984 (CNY 40,000) - 44,321 (USD1,592)	- - - - -	- - - - -	807,360 (USD 29,000) - 171,984 (CNY 40,000) (Note 5) 44,321 (USD1,592) -	6,780 5,422 98,655 5,824 (3,895)	100.00% 100.00% 100.00% 100.00% 100.00%	6,780 (Note 2) 5,422 (Note 2) 95,222 (Note 2) 5,824 (Note 2) (3,895) (Note 2)	1,886,250 (Note 6) (2,827) (Note 6) (312,112) (Note 6) 62,170 (Note 6) 26,124 (Note 6)	- - - - -

2. Limits on investments in Mainland China:

Investee Company Name	Accumulated Investment in Mainland China as of September 30, 2021	Investment Amounts Authorized by Investment Commission, MOEA	Upper Limit on Investment
BMC	979,344 (USD29,000 and CNY40,000)	1,090,919 (USD29,000 and CNY65,950)	(Note 7)
SGM	(USD1,592) 44,321	44,321 (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$27.84 and CNY$1=NT$4.2996.

1. Significant transactions with investee companies in Mainland China:

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

�119�

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 September 30, 2021	Net Income (Loss) of Investee	% of Ownership of Direct or Indirect Investment	Investment Income (Loss)	Carrying Value as of September 30, 2021	Accumulated Inward Remittance of Earnings as of September 30, 2021
					Outflow	Inflow
TDX Medical Technology (Jiangsu) Co., Ltd. LILY Medical (Suzhou) Co., Ltd. (“ALS”) BenQ Medical Technology (Shanghai) Ltd. (“BMTS”) Suzhou Trident Original Medical Technology Co., Ltd.	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	27,840 ( USD 1,000) 5,846 ( USD 210) 85,992 (CNY 20,000) 8,599 (CNY 2,000)	(Note 2) (Note 2) (Note 1) (Note 3)	27,840 ( USD 1,000) 5,846 ( USD 210) 34,397 (CNY 8,000) -	- - - -	- - - -	27,840 ( USD 1,000) 5,846 ( USD 210) 34,397 (CNY 8,000) -	58 (384) 1,720 3,375	100.00% 100.00% 40.00% 22.00%	1,720 (384) 23 655	12,485 (Note 4) 2,389 (Note 4) 29,141 7,536	- - - -

(Note 1) Indirect investment in Mainland China is through a holding company established in a third country. (Note 2) Direct investment in Mainland China. (Note 3) Invested in Mainland China is through TDX Medical Technology (Jiangsu) Co., Ltd. (Note 4) The above amounts have been eliminated when preparing the consolidated financial statements. (Note 5) There was no shares as the investee company is a limited liability company. (Note 6) The above amounts were translated into New Taiwan dollars at the exchange rate of US$1�NT$27.84 and CNY$1=NT$4.2996.

2. Limits on investments in Mainland China:

Investee Company Name	Accumulated Investment in Mainland China as of September 30, 2021	Investment Amounts Authorized by Investment Commission, MOEA	Upper Limit on Investment
BMTC	62,237 (USD 1,000 and CNY 8,000)	78,704 (USD 2,827)	615,527
LILY	5,846 (USD 210)	5,846 (USD 210)	106,988

1. Significant transactions with investee companies in Mainland China:

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

�120�

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 September 30, 2021	Net Income (Loss) of Investee	% of Ownership of Direct or Indirect Investment	Investment Income (Loss)	Carrying Value as of September 30, 2021	Accumulated Inward Remittance of Earnings as of September 30, 2021
					Outflow	Inflow
Partner Tech (Shanghai) Co., Ltd. (“PTCM”)	Sales, import and export of electronic products	97,440 ( USD 3,500)	(Note 1)	97,440 ( USD 3,500)	-	-	97,440 ( USD 3,500)	(192)	100.00%	(192) (Note 2)	78,160	-

(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$27.84. (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 September 30, 2021	Investment Amounts Authorized by Investment Commission, MOEA	Upper Limit on Investment
PTT	97,440 (USD 3,500)	192,263 (USD 6,906)	589,192

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.

�121�

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 September 30, 2021	Net Income (Loss) of Investee	% of Ownership of Direct or Indirect Investment	Investment Income (Loss)	Carrying Value as of September 30, 2021 (Note 7)	Accumulated Inward Remittance of Earnings as of September 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	69,600 (USD2,500) 13,920 (USD500)	(Note 1) (Note 1)	- -	- -	- -	- -	7,813 (730)	100.00% 100.00%	(730) (Note 2) 7,813 (Note 2)	51,824 42,791	33,306 -

2. Limits on investments in Mainland China:

Investee Company Name	Accumulated Investment in Mainland China as of September 30, 2021	Investment Amounts Authorized by Investment Commission, MOEA	Upper Limit on Investment
DFI	- (Note 3)	58,046 (USD 2,085) (Note 5 and 6)	3,038,741 (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$27.84.

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.

�122�

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 September 30, 2021	Net Income (Loss) of Investee	% of Ownership of Direct or Indirect Investment	Investment Income (Loss)	Carrying Value as of September 30, 2021 (Note 5)	Accumulated Inward Remittance of Earnings as of September 30, 2021
					Outflow	Inflow
Aewin (Shenzhen) Technologies Co., Ltd. Aewin Beijing Technologies Co., Ltd.	Wholesale of computer peripheral products and software Wholesale of computer peripheral products and software	46,129 13,062	(Note 1) (Note 2)	46,129 -	- -	- -	46,129 -	(4,798) 46,970	100.00% 100.00%	46,970 (Note 3) (4,798) (Note 3)	159,897 (1,298)	- -

2. Limits on investments in Mainland China:

2. Limits on investments in Mainland China:
Investee Company Name	Accumulated Investment in Mainland China as of September 30, 2021	Investment Amounts Authorized by Investment Commission, MOEA	Upper Limit on Investment
AEWIN	46,129	55,680 (USD 2,000)	680,667 (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$27.84.

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.

�123�

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 September 30, 2021	Net Income (Loss) of Investee	% of Ownership of Direct or Indirect Investment	Investment Income (Loss)	Carrying Value as of September 30, 2021 (Note 5)	Accumulated Inward Remittance of Earnings as of September 30, 2021
					Outflow	Inflow
Grace Transmission (Tianjin) Co., Ltd. Tianjin Ace Pillar Co., Ltd. Advancedtek Ace (TJ) Inc. Xuchang Ace AI Equipment Co., Ltd. Suzhou Super Pillar Automation Equipment Co., Ltd.	Manufacture of automation mechanical transmission system and component Sales of automation mechanical transmission system and component Electronic system integration Manufacture of automation mechanical transmission system and component Wholesale of industrial robot and component	951,571 (USD 34,180) 7,180 (CNY 1,670) 8,352 (USD 300) 40,368 (USD 1,450) 8,352 (USD 300)	(Note 1) (Note 1) (Note 1) (Note 1) (Note 1 and 2)	54,288 (USD 1,950) 4,454 (USD 160) 4,176 (USD 150) - -	- - - - -	- - - - -	54,288 (USD 1,950) 4,454 (USD 160) 4,176 (USD 150) - -	1,062 2,768 9,411 (311) 57,550	100.00% 100.00% 100.00% 100.00% 100.00%	57,550 (Note 3) 1,062 (Note 3) 2,768 (Note 3) 9,411 (Note 3) (311) (Note 3)	575,181 39,052 (1,503) 96,433 2,529	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 September 30, 2021	Investment Amounts Authorized by Investment Commission, MOEA	Upper Limit on Investment
ACE	142,513 (USD 5,119)	142,513 (USD 5,119)	1,212,214 (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$27.84 and CNY$1=NT$4.2996.

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.

�124�

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 September 30, 2021	Net Income (Loss) of Investee	% of Ownership of Direct or Indirect Investment	Investment Income (Loss) (Note 3)	Carrying Value as of September 30, 2021 (Note 2)	Accumulated Inward Remittance of Earnings as of September 30, 2021
					Outflow	Inflow
Data Image (Suzhou) Corporation	Manufacture and sales of LCD	453,792 (USD16,300)	(Note 1)	435,807 (USD15,654)	-	-	435,807 (USD15,654)	33,297	100.00%	33,297	305,169	-

2. Limits on investments in Mainland China:

2. Limits on investments in Mainland China:
Accumulated Investment in Mainland China as of September 30, 2021	Investment Amounts Authorized by Investment Commission, MOEA	Upper Limit on Investment
USD 15,654	USD 16,952	(Note 4) 741,342

• (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$27.84.

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.

�125�

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 September 30, 2021	Net Income (Loss) of Investee	% of Ownership of Direct or Indirect Investment	Investment Income (Loss) (Note 3)	Carrying Value as of September 30, 2021 (Note 2)	Accumulated Inward Remittance of Earnings as of September 30, 2021
					Outflow	Inflow
K2 (Shanghai) International Medical Inc.	Sales of medical consumables	34,800 (USD 1,250)	(Note 1)	22,272 ( USD 800)	31,543 ( USD 1,133)	-	53,815 ( USD 1,933)	1,250	100.00%	1,250	68,331	-

2. Limits on investments in Mainland China:

2. Limits on investments in Mainland China:
Accumulated Investment in Mainland China as of September 30, 2021	Investment Amounts Authorized by Investment Commission, MOEA	Upper Limit on Investment
53,815 (USD 1,933)	53,815 (USD 1,933)	332,387 (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$27.84.

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.

�126�

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 September 30, 2021	Net Income (Loss) of Investee	% of Ownership of Direct or Indirect Investment	Investment Income (Loss)	Carrying Value as of September 30, 2021 (Note 3)	Accumulated Inward Remittance of Earnings as of September 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 module product technology	191,437 137,336	(Note 1) (Note 1)	141,375 95,099	- -	- -	141,375 95,099	(3,416) 22,910	100.00% 51.18%	22,910 (Note 2) (1,748) (Note 2)	182,886 15,192	- -

1. Limits on investments in Mainland China:

2. Limits on investments in Mainland China:
Investee Company Name	Accumulated Investment in Mainland China as of September 30, 2021	Investment Amounts Authorized by Investment Commission, MOEA	Upper Limit on Investment
Simula	257,755	307,817	1,306,932

• (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.

�127�

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 September 30, 2021	Net Income (Loss) of Investee	% of Ownership of Direct or Indirect Investment	Investment Income (Loss) (Note 2)	Carrying Value as of September 30, 2021 (Note 8)	Accumulated Inward Remittance of Earnings as of September 30, 2021
					Outflow	Inflow
Alpha Networks (Dongguan) Co., Ltd. Alpha Networks (Chengdu) Co.,Ltd. Mirac Networks (Dongguan) Co.,Ltd. Alpha Networks (Changshu) 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	420,426 787,496 307,326 1,925,920	(Note 1) (Note 1) (Note 1) (Note 1)	420,426 741,084 307,326 1,925,920	- - - -	- - - -	420,426 741,084 (Note 6) 307,326 1,925,920	23,334 (15,871) 9,350 15,628	100.00% 100.00% 100.00% 100.00%	9,350 (15,871) 15,628 23,334	565,427 1,023,544 310,425 1,246,365	- - - -

2. Limits on investments in Mainland China:

2. Limits on investments in Mainland China:
Investee Company Name	Accumulated Investment in Mainland China as of September 30, 2021	Investment Amounts Authorized by Investment Commission, MOEA	Upper Limit on Investment
Alpha	3,261,784 (Note 3��and 7)	4,123,685	(Note 5)

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

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

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

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

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

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

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

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

1. Significant transactions with investee companies in Mainland China:

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

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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 September 30, 2021	Net Income (Loss) of Investee	% of Ownership of Direct or Indirect Investment	Investment Income (Loss) (Note 2)	Carrying Value as of September 30, 2021 (Note 5)	Accumulated Inward Remittance of Earnings as of September 30, 2021
					Outflow	Inflow
Hwa Chi Technologies Jietech Suzhou Hitron Suzhou	Production and sale of broadband telecommunications products Technical consultation on electronic communication, technology research and development, maintenance and after-sale service Sale of broadband network products and related services	641,763 57,473 5,814	(Note 1) (Note 1) (Note 1)	641,763 57,473 12,048	- - -	- - -	641,763 57,473 12,048	(159,924) 1,785 (751)	100.00% 100.00% 43.10% (Note 3 and 4)	(159,924) (751) 769	553,873 29,729 6,505	- - 21,314
2. Limits on investments in Mainland China: Investee Company Name Accumulated Investment in Mainland China as of September 30, 2021 Investment Amounts Authorized by Investment Commission, MOEA Upper Limit on Investment Hitron Technologies 711,284 711,284 2,806,045
Investee Company Name		Accumulated Investment in Mainland China as of September 30, 2021		Investment Amounts Authorized by Investment Commission, MOEA			Upper Limit on Investment
Hitron Technologies		711,284		711,284			2,806,045

• (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.

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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 September 30, 2021	Net Income (Loss) of Investee	% of Ownership of Direct or Indirect Investment	Investment Income (Loss)	Carrying Value as of September 30, 2021	Accumulated Inward Remittance of Earnings as of September 30, 2021
					Outflow	Inflow
-	-	-	-	-	-	-	-	-	-	-	-	-

2. Limits on investments in Mainland China:

Investee Company Name	Accumulated Investment in Mainland China as of September 30, 2021	Investment Amounts Authorized by Investment Commission, MOEA (Note 1)	Upper Limit on Investment (Note 2)
Topview	(USD 182) 5,067	5,067 (USD 182)	649,873

• (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$27.84.

3. Significant transactions with investee companies in Mainland China:

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

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