TSE Code: 2379

REALTEK SEMICONDUCTOR CORP. 2020 Annual Report

The annual report is available at:

I. Taiwan Stock Exchange Market Observation Post System: https://mops.twse.com.tw II. Realtek website for annual report: https://www.realtek.com

Printed Date: April 28, 2021

Notice to Readers:

This annual report has been prepared originally in Chinese. The English version is a direct translation of the Chinese version .

I. Spokesperson: Name: Huang, Yee-Wei Title: Vice President Deputy Spokesperson: Name: Lin, Han-Chen Title: Special Assistant to President Tel: (03) 578-0211 Email: [email protected]

II. Headquarters Address: No. 2, Innovation Road II, Hsinchu Science Park, Hsinchu 300, Taiwan Tel: (03) 578-0211

III. Transfer Agent: Company: CTBC BANK CO., LTD. Transfer Agency Department Address: 5F., No. 83, Sec. 1, Chongqing S. Rd., Taipei City 100, Taiwan. Website: www.ctbcbank.com Tel: (02) 6636-5566

IV. Auditor of the latest financial report: Auditors: Lin, Yu-Kuan & Tsang, Kwok-Wah Company: PricewaterhouseCoopers' Address: 5F., No. 2, Gongye E. 3rd Rd., Hsinchu Science Park, Hsinchu 300, Taiwan Website: www.pwc.com.tw Tel: (03) 578-0205

V. GDR listed stock exchange and the way to search for information: Name: Luxembourg Stock Exchange
Please refer to the Luxembourg Stock Exchange official website for Realtek GDR Price. Website: www.bourse.lu
VI. Company website: www.realtek.com

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Letter to Shareholders ..................................................................................................................................... 1 Company Introduction .................................................................................................................................... 4 I. Date of Establishment .................................................................................................................................. 4 II. Company Milestones .................................................................................................................................. 4 Corporate Governance Report ....................................................................................................................... 9 I. Organization ................................................................................................................................................. 9 II. Information of Directors and Officers ...................................................................................................... 11 III. Corporate Governance ............................................................................................................................. 22 IV. Information Regarding Audit Fees .......................................................................................................... 53 V. Replacement of Independent Auditors ..................................................................................................... 54 VI. If the Company’s Chairman, President, Managers in charge of finance or accounting operations held positions within the auditor’s firm or its affiliates during last year, the name, title, and period of holding positions should be disclosed: None ......................................................................................... 55 VII. Share transfer or share pledge of Directors, Officers and major shareholders holding more than 10% shares from last year to the date of the annual report printed. ............................................................... 56 VIII. The relationship between any of the Company’s top ten shareholders: ............................................... 57 IX. The consolidated shareholdings and percentage of investments held by the Company, Directors, Officers, and the companies controlled directly or indirectly by the Company. .................................... 58 Capital Raising ............................................................................................................................................... 59 I. Source of Capital ........................................................................................................................................ 59 II. Structure of Shareholders .......................................................................................................................... 59 III. Distribution of Shareholding ................................................................................................................... 60 IV. List of Major Shareholders ...................................................................................................................... 60 V. Market price, net worth, earning, and dividends per common share and related information over the last two years ................................................................................................................................................. 61 VI. Dividend Policy and Status of Execution ................................................................................................ 62 VII. Impact to business performance and EPS resulting from stock dividend distribution: None. ......... 62 VIII. Employees’ Compensation and Remuneration to Directors ................................................................. 62 IX. Status of Treasury Stocks: None ............................................................................................................. 64 X. Status of Corporate Bonds: None .............................................................................................................. 64 XI. Status of Preferred Stocks: None ............................................................................................................. 64 XII. Status of GDR ........................................................................................................................................ 65 XIII. Status of Employee Stock Warrants: None .......................................................................................... 65 XIV. Status of Employee Restricted Stocks: None ........................................................................................ 65 XV. Status of Mergers or Acquisitions, or as assignee of new shares issued by other companies: None ..... 65 XVI. Status of Implementation of Fund Utilization Plan: Not Applicable .................................................... 65

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Operations Overview ..................................................................................................................................... 66
I. Business Overview ..................................................................................................................................... 66
II. Marketplace and Production Overview .................................................................................................... 83
III. Employees ............................................................................................................................................... 90
IV. Environmental Expenses ......................................................................................................................... 90
V. Labor Relations ......................................................................................................................................... 90
VI. Significant Agreements ........................................................................................................................... 93
Financial Status, Operating Results and Status of Risk Management ..................................................... 94
I. Financial Status .......................................................................................................................................... 94
II. Operational Results ................................................................................................................................... 95
Unit: NT$ thousands ...................................................................................................................................... 95
III. Cash Flow ................................................................................................................................................ 96
IV. Impact on Financial and Business associated with Major Capital Expenditures in recent years: None. 96
V. Investment Policies in recent years, the reasons for losses and plans to improve for next year: ............. 96
VI. Risk Items ................................................................................................................................................ 97
VII. Other Material Events: None. .............................................................................................................. 101
Special Items ................................................................................................................................................. 102
I. Information of Affiliated Companies ...................................................................................................... 102
II. Significant events with impact on shareholders’ rights or stock price regulated in Article 36-3-2 of the
Securities and Exchange Act happened during last year to the date of the annual report printed: None
.............................................................................................................................................................. 111
III. Acquisition or disposal of Realtek shares by subsidiaries during last year to the date of the annual
report printed: None ............................................................................................................................. 111
IV. Issuance of private placement securities: None .................................................................................... 111
V. Other Necessary Supplements: None ..................................................................................................... 111
Financial Information .................................................................................................................................. 112
I. Condensed balance sheet and Statement of Comprehensive Income, independent auditor’s name and
audit opinion in the recent five years ................................................................................................... 112
II. Financial Analysis in the Recent Five Years .......................................................................................... 116
III. Has the company or its affiliates experienced financial difficulties in the most recent years up to the
date of publication of the 2020 annual report: None. ........................................................................... 118
IV. Audit Committee’s Review Report ....................................................................................................... 119
V. Consolidated Financial Statements ......................................................................................................... 120
VI. Parent Company Only Financial Statements ......................................................................................... 121 201

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Letter to Shareholders

1. 2020 Operating Results

The year 2020 was a very challenging year for the semiconductor industry, and of course, the entire world. Despite the uncertainties posed by international affairs and the impact of COVID-19, Realtek, relying on continuous enhancement of product competitiveness and flexible market strategies, maintained the pace towards its 34th consecutive year of growth. Full-year 2020 consolidated revenue reached NT$77.76 billion, an increase of 28.0% from the previous year; gross profit was NT$33.25 billion, an increase of 25.1% from the previous year; and net profit after tax was NT$8.79 billion, representing an increase of 29.5% compared to the previous year, with earnings per share of NT$17.24. According to IC Insights, worldwide semiconductor industry revenue in 2020 was US$480.9 billion, an increase of 8% compared to 2019, of which IC sales grew by 10%. Realtek ranked 11th amongst the global IC design companies in 2020, once again marching forward at a speed outpacing the overall industry.

Looking back on 2020, the needs for working from home and remote learning to cope with COVID19 drove demand for productivity products such as personal computers, as well as home networks and network infrastructure. In addition, the market itself was pulled by megatrends such as 5G and Artificial Intelligence of Things (AIoT), thereby accelerating and expanding the demand for various connectivity solutions. With its comprehensive product portfolio and technological competitiveness, Realtek has delivered outstanding results in the PC, communications network, consumer electronics, and automotive electronics fields.

In terms of corporate social responsibility best practice, Realtek has set up a Nominating Committee and Corporate Governance Officer to strengthen the board's practices and intensify its management functions, thereby heightening its quality and efficiency. We identified various climate risks related to climate change issues of global concern, proposed actions in response, and integrated internal and external resources to actively manage energy usage, including setting targets for carbon reduction and greenhouse gas emissions, saving electricity, and harvesting green energy to reduce environmental impact. We also focused on our core competencies to develop innovative, high-performance, and low-power-consumption products. In 2020 we have continued to fulfill our promise to help create a greener, healthier environment by delivering many new products where power consumption (wattage) was reduced by more than 40% when compared with their predecessors. To promote social inclusion, Realtek proactively participates in charitable activities. In 2020 we sponsored free Low-Dose Computed Tomography lung cancer screening for Hsinchu County and City police forces, as well as offering free liver disease and liver cancer screening, and also a health questionnaire at Longshan Temple. The Longshan Temple event attracted more than 8,000 participants and was awarded a certificate for breaking a Guinness World Record. Regarding education, Realtek established the ‘Caring Rural Education and Boosting Student Learning Charity Project’ to provide rural schools with additional reading material to expand their horizons and promote learning through reading. In addition, Realtek continues to provide services to groups such as the Taiwan Fund for Children and Families, the Eden Social Welfare Foundation, and the Boyo Social Welfare Foundation, among others.

2. 2021 Business Plan

Having outperformed the market in 2020, Realtek will continue to launch more competitive products in 2021, strengthen the portfolio of each product line, and maintain our growth momentum and technological leadership.

In relation to wireless products, Realtek Wi-Fi 6 (11ax) wireless controller products successfully entered mass production in 2020, and have experienced great success in PC, router, and broadband applications. They are expected to gradually become an important growth driver in 2021. In addition to Wi-Fi 6, the existing 11ac and 11n products will be optimized continually to provide more cost-effective solutions, which will help expand markets and increase overall market share while consolidating existing

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customers. For IoT controller chips, Realtek offers the most complete product portfolio. In addition to hardware specifications with high integration and ultra-low power consumption, Realtek also provides customers with complete software and hardware development kits through close cooperation with IoTrelated organizations and leaders. This enabled rapid growth in both the number of customers and shipments in 2020, and this trend is expected to continue in 2021. With respect to Bluetooth products, COVID-19 impacted True Wireless Stereo (TWS) products, and there was a slight decline in growth in 2020. However, in 2021, a new wave of growth is expected, as the number of customers requiring Active Noise Cancellation (ANC) increases and the upcoming BT 5.2 TWS solution fulfills the market’s expectation for the evolution of Bluetooth headsets. Additionally, Bluetooth Low Energy single chips in voice remote controllers are now widely recognized by well-known brands at home and abroad. Realtek will continue to assist customers to migrate from infrared to Bluetooth remote controllers, and provide the market with appealing and high-value wearable applications. The promotion by intelligent voice ecosystem leaders to adopt Bluetooth Mesh Networking will further drive the growth of Bluetooth products.

Realtek's second-generation 2.5Gb Ethernet products have been designed into PCs and their peripherals. The bandwidth demanded by many applications is further reflected in the specification upgrade from 1GbE to 2.5GbE, which is expected to become one of the major growth drivers of our Ethernet product line in the near future. For Switch products, Realtek has been actively developing the smart switch market by investing resources to develop Layer 3 stackable managed and higher-speed switch controller chips, as well as deploying entry-level managed switches by offering low-power, cost-effective solutions, in order to increase both market visibility and market share. In addition, in response to the increasing demand for network bandwidth, an 8-port 2.5GbE single-chip switch is expected to be launched in 2021, providing lowpower, easy-to-operate and cost-effective products to the market, which in turn should drive another wave of specification upgrades of consumer switches. For automotive Ethernet, the number of customers and shipments are growing steadily through persistent team effort. Other than the existing 100/1000BASE-T1 dual-mode high-port-count switches and physical layer (PHY) controllers, Realtek is also actively investing in the development of 10BASE-T1 and 2.5GBASE-T1 products, targeting the increased market demand foreseen for the years 2024 and 2025.

For TV SoCs, Realtek leads in end market demand due to superior system expertise and specifications that are highly recognized by customers, and has delivered steady sales growth throughout 2020. In 2021, we will continue to improve products by integrating 8K, AI, and other functions to enhance the consumer multimedia experience. With the rise of audiovisual streaming media, and its promotion by major operators, the demand for OTT set-top boxes continues to rise. To this end, Realtek will continually develop new generations of UHD multimedia controller chips for OTT set-top boxes by integrating the multi-CAS security requirements of various operators, and will combine its own multimedia and network total solutions to gain greater customer recognition and maintain stable growth.

Regarding Computer Peripheral products, as lifestyles around the world changed dramatically in 2020 due to COVID-19, working from home and remote learning became the norm, thereby enabling the PC market, notebooks in particular, to experience positive growth against the trend. In addition, sales of VoIP communication devices and noise reduction software capable of improving the quality of calls has shown strong growth. Realtek launched an environmental noise cancellation solution for PC audio peripheral devices, which combines AI algorithms to effectively eliminate background noise. In addition to the need for high-level voice call quality, a parallel demand for more convenient and clearer video images has also emerged. To meet these needs, Realtek will launch a series of PC camera ISP chips with HD/FHD/5M resolution, featuring dual-lens and Temporal Noise Reduction to bring consumers a first-class user experience. In terms of single-chip controllers for surveillance cameras, in response to the high growth being seen in the security industry, Realtek will launch a new generation of highly integrated, low-power singlechip camera products, supporting H.264/H.265 encoding, 5 million Pixel CMOS Sensor, and Video HDR wide dynamic range with long and short exposure specifications, in order to strengthen our product portfolio and provide customers with more competitive solutions.

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Strategy for Future Development and Impact by Competitive, Regulatory, and Macro Conditions

The COVID-19 pandemic during 2020 heavily impacted people's daily lives; however, the semiconductor industry continued to grow steadily, both because of these lifestyle changes, and as a result of megatrends such as 5G and AIoT. Entering 2021, the industry will face challenges caused by supplydemand imbalances in the supply chain, in addition to the continuing impact of COVID-19 on the macro economy. Despite many uncertainties, Realtek will rise above the challenges to deliver market success through its highly flexible strategies, time-proven deep technical strength, and excellent customer support. In the face of future challenges, we will not only expand and construct our third office building this year, but also map out a plan for entering the biomedical industry to uphold our goal of steady growth and sustainable development.

We want to thank all shareholders for your ceaseless care and support. We also wish you great health and success.

Chairman Yeh, Nan-Horng President Chiu, Sun-Chien Controller Chang, Jr-Neng

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Company Introduction

I. Date of Establishment

Realtek Semiconductor Corporation (‘the Company’) was incorporated on October 21, 1987, and debuted on the Taiwan Stock Exchange in October 1998. It is headquartered in Taiwan and it has sales or R&D teams in China, Singapore, the United States, Japan, and South Korea.

II. Company Milestones

1987/10 The Company is incorporated. 1988/04 The Company’s Taipei office is established.
1991/12 The Pocket Ethernet Controller receives an Innovative Technology Award from the Hsinchu Science Park Administration.
1993/12 The High-Performance Window Accelerator Chip receives an Innovative Product Award from the Hsinchu Science Park Administration.
1995/02 The Full Duplex Plug-and-Play Ethernet Controller receives a Product Innovation Award from EDN Asia.
1996/12 For its extensive R&D initiatives and achievements, the Company receives an R&D Participation Award from the Hsinchu Science Park Administration.
1997/06 The Single-Chip Fast Ethernet Controller receives a Best Component Award and a Best Product Award at Computex Taipei 1997.
1997/09 The Company is listed in Gre Tai Securities Market (Taipei Exchange). 1997/11 The Single-Chip Fast Ethernet Controller receives a New Product Development Award from the Industrial Development Bureau, Ministry of Economic Affairs.
1998/10 The Company debuts on the Taiwan Stock Exchange. 1998/12 For the fourth consecutive year, the Company receives an R&D Participation Award from the Hsinchu Science Park Administration.
1999/12 The 4-Port Fast Ethernet Transceiver receives an innovative technology R&D grant from the Hsinchu Science Park Administration.
2000/05 For the first time, the Company issues unsecured convertible bonds; the total value is NT$1.4 billion.
2000/08 For its outstanding R&D achievements, the Company receives a Most Outstanding Award at the Ministry of Economic Affairs’ 8[th] Industrial Technology Development Awards.
2001/12 The Multi-mode Single-Chip 10/100M Fast Ethernet Controller SoC receives a Component Design Award from EDA Asia Magazine .
2002/01 For the first time, the Company issues Overseas Depositary Receipts; the total value is US$240,180,375.
2002/06 The ALC650 6-Channel Audio Codec receives a Best Choice Award at Computex Taipei 2002.
2002/11 The Company ranks among the Global Top 10 Electronic Component Providers by Taiwan’s Micro-Electronics Magazine .
2003/10 For the second consecutive year, the Company ranks among the Forbes Global 200 Best Small Companies.

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2003/10	The RTL8169S/RTL8110 Single-Chip Gigabit Ethernet Controller receives an
	Innovative Product award from the Hsinchu Science Park Administration.
2004/03	The PCI Express Single-Chip Gigabit Ethernet Controller receives an innovation
	R&D grant for NT$3 million from the Hsinchu Science Park Administration.
2004/06	The Dual-Band Triple-Mode WLAN Chipsets RTL8185L and RTL8255 receive a
	Best Choice Award at Computex Taipei 2004.
2004/09	The reference designs of the IEEE802.11a/b/g WLAN Chipsets RTL8185L and
	RTL8255 pass the Wi-Fi Alliance’s WPA2 (Wi-Fi Protected Access 2) testing and
	become the golden test bed.
2004/10	The Dual-Band Triple-Mode WLAN Chipset receives an Outstanding IT
	Application/Product Award from the committee for Taiwan Information
	Technology Month.
2004/12	The WLAN Chipsets RTL8187L and RTL8255 receive an Innovative Product
	Award from the Hsinchu Science Park Administration.
2004/12	The Company receives an R&D Accomplishment Award from the Hsinchu
	Science Park Administration.
2005/03	The Company unveils the ALC882 7.1+2 Channel High Definition Audio Codec.
2005/06	The Company celebrates the grand opening of its new building on Innovation Rd.
	II in Hsinchu Science Park.
2005/08	The Company releases the RTS5111, the world’s first USB 2.0 All-in-One Card
	Reader Controller with Integrated 5V/3.3V Regulator and Power MOSFET.
2005/11	For its substantive R&D achievements, the Company receives another R&D
	Accomplishment Award from the Hsinchu Science Park Administration.
2006/03	The Company releases a new generation of High Definition Audio codecs, the
	ALC885 and ALC888 Telecom.
2006/03	The ALC888 Telecom receives a Technology Innovation Accelerated Award for
	the ‘Digital Office’ platform at the 2006 Intel Developer Forum.
2006/08	The Company passes ISO 14001 Environmental Management Systems
	certification.
2006/10	The Company celebrates its 20thanniversary.
2006/12	The ALC888 Telecom receives an Innovative Product Award from the Hsinchu
	Science Park Administration.
2006/12	For the third consecutive year, the Company receives an R&D Accomplishment
	Award from the Hsinchu Science Park Administration.
2007/01	At an extraordinary shareholders’ meeting, shareholders approved a capital
	reduction of NT$4,180,701,000 (each share qualified for a rebate of approximately
	NT$5); the reduction ratio is 50%.
2007/06	The RTL8111C PCI Express Single-Chip Gigabit Ethernet Controller receives a
	Best Choice Award at Computex Taipei 2007.
2007/07	The Company releases the RTL8366S and RTL8366SR low power, highly
	integrated 6-Port Gigabit Ethernet Switch Controller Single-Chip solutions
	featuring patented Green Ethernet technology.
2007/10	The Company releases the RTS5161/68/69, the world’s first multi-function card
	reader controller to integrate a NAND flash card reader, a smart card reader, a
	fingerprint reader, and an IR receiver.

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2007/10	The Company releases the ALC269, which is the first HD Audio Codec to integrate
	a 2W Class D Amplifier and the latest low power specifications. The device
	represents a breakthrough in reducing the power consumption of laptop computers.
2007/11	The Company releases the ALC889 HD Audio Codec, which features a Signal-to-
	Noise Ratio (SNR) of 108dB and is the only HD Audio Codec to have full rate
	Blu-Ray DVD playback.
2007/12	The RTL8111C-GR PCI Express Gigabit Ethernet Controller receives an
	Innovative Product Award from the Hsinchu Science Park Administration.
2007/12	For the fourth consecutive year, the Company receives an R&D Accomplishment
	Award from the Hsinchu Science Park Administration.
2008/05	The Company demonstrates a series of Networked Multimedia SoC solutions at
	Computex Taipei 2008.
2008/06	The RTD2485D All-in-One LCD Monitor Controller receives a Best Choice
	Award at Computex Taipei 2008.
2008/09	The Company releases the RTL8191S and RTL8192S, the world’s smallest, most
	energy efficient 802.11n WLAN IC Single-Chip solutions. They are the first
	controllers to integrate MAC/BB/RF with an embedded power amplifier,
	EEPROM, and switching regulators.
2008/10	The RTL8366SR 5+1-Port Gigabit Ethernet Switch Controller Single-Chip
	receives a 2008 EDN China Innovation Award.
2008/12	The RTD2485D All-in-One LCD Monitor Controller receives an Innovative
	Product Award from the Hsinchu Science Park Administration.
2009/08	The Company receives a 2009 National Invention and Creation Award.
2009/10	The Company releases the RTL8111E, the first Gigabit Ethernet Controller SoC to
	use the IEEE 802.3az standard.
2009/10	The RTD1073 Full-HD Digital Media Processor receives a 2009 EDN China
	Innovation Award.
2009/11	The RTD1073/1283 Full-HD Digital Media Processor receives a 2009 Outstanding
	IT Application/Product Award.
2009/11	The RTL8111DP-GR PCI Express Gigabit Ethernet Management Controller
	receives a 2009 Innovative Product Award from the Hsinchu Science Park
	Administration.
2009/11	The Company receives the International Exchange and Cooperation Award from
	the Hsinchu Science Park Administration.
2009/11	The Company receives the 2009 R&D Accomplishment Award from the Hsinchu
	Science Park Administration.
2010/01	At the 2010 CES, the Company demonstrates industry-leading Green Ethernet
	power-savings technology, including the IEEE 802.3az Ethernet Single-Chip and
	Switch Controller, as well as the world’s most energy efficient power-over-USB
	2x2 802.11n Wireless Router using the Company's Green WLAN technology.
2010/06	The ALC899-GR High Fidelity PC Audio Codec receives a Best Choice Award at
	Computex Taipei 2010.
2010/06	The RTL8111E Single-Chip Gigabit Ethernet Controller receives a Best Choice
	Award at Computex Taipei 2010.

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2010/12	The RTL8111E Single-Chip Gigabit Ethernet Controller receives a 2010
	Outstanding IT Application and Products Award.
2010/12	The RTL8367M 7-Port Gigabit Ethernet Switch Controller receives a 2010
	Innovative Product Award from the Hsinchu Science Park Administration.
2010/12	The Company receives a 2010 Science Park R&D Accomplishment Award.
2011/10	The Company receives the 1stTaiwan Green Classics Award, hosted by the Bureau
	of Foreign Trade, Ministry of Economic Affairs.
2011/12	The Company receives an Industrial Sustainable Excellence Award from the
	Industrial Development Bureau, Ministry of Economic Affairs.
2011/12	The Company receives a National Industrial Innovation Award – Outstanding
	Enterprise Innovation Award from the Department of Industrial Technology,
	Ministry of Economic Affairs.
2011/12	The Company receives a 2011 Science Park R&D Accomplishment Award.
2012/12	The ALC5642 Hi-Fi Audio Integrated with Voice/Sound DSP and Codec Single-
	Chip receives a 2012 Innovative Product Award from the Hsinchu Science Park
	Administration.
2012/12	The Company receives a 2012 Science Park R&D Accomplishment Award.
2013/06	The RTD2995 4K2K UHD Smart TV SoC receives a Best Choice Golden Award
	at Computex Taipei 2013.
2013/11	The RTL8153 Low Power USB 3.0-to-Gigabit Ethernet Controller receives a
	2013 EDN China Innovation Award.
2013/12	The RTD2995 4K2K UHD Smart TV SoC receives a 2013 Innovative Product
	Award from the Hsinchu Science Park Administration.
2014/06	The RTL8118AS Ultra Low Power Gaming NIC receives a Best Choice Green
	ICT Award at Computex Taipei 2014.
2014/06	The RTL8881A AP/Router Network Processor SoC (with 11ac Wi-Fi) receives a
	Best Choice Award (in Communication) at Computex Taipei 2014.
2015/04	The Company’s subsidiary Realtek Singapore Pte Ltd. acquires 100% equity
	interest of Cortina Access, Inc. and its subsidiaries.
2015/06	The RTL8195AM Low Power Wi-Fi IoT SoC receives a Best Choice Golden
	Award at Computex Taipei 2015.
2015/12	The RTD2999 4K Ultra-High Picture Quality Smart TV SoC receives a 2015
	Innovative Product Award from the Hsinchu Science Park Administration.
2016/06	The RTL8762A Bluetooth Low Energy SoC receives a Best Choice Golden
	Award at Computex Taipei 2016.
2016/06	The RTS5421 USB 3.1 Type-C Hub receives a Best Choice Golden Award at
	Computex Taipei 2016.
2016/12	The Company receives a 2016 Science Park R&D Accomplishment Award.
2016/12	The RTL9020AA Automotive Camera SoC Integrated with Audio/Video
	Processor and Ethernet receives a 2016 Innovative Product Award from the
	Hsinchu Science Park Administration.
2017/06	The RTL9047A Automotive Ethernet Switch Controller receives a Best Choice
	Award in the Car Electronics category at Computex Taipei 2017.
2017/06	The RTL8771B Low Power Wearable GNSS Receiver receives a Best Choice
	Award in the Mobile & Wearables category at Computex Taipei 2017.

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2017/06 The world’s most energy efficient Bluetooth 5 Dual Mode Audio SoC, the RTL8763B, receives a Best Choice Award in the IC & Components category at Computex Taipei 2017.
2017/06 The RTL8117 Personal Cloud IC Solution receives a Best Choice Award: the Jury’s Special at Computex Taipei 2017.
2017/11 The Communications Network Group’s CN3 Wi-Fi R&D team receives a 2017 Outstanding Technology Management Award.
2018/05 The Company releases the world’s first 2.5G Ethernet Controller SoC for multiple applications, including gaming.
2018/06 The RTL8715A Highly Integrated, Ultra-Low-Power Wi-Fi IP Camera SoC receives a Best Choice Award in the IoT Applications category at Computex Taipei 2018.
2018/06 The RTL8762C Bluetooth 5 Low Energy SoC receives a Best Choice Award in the IC & Components category at Computex Taipei 2018.
2018/06 The ALC5520 Multi-Mic Far-Field Speech Recognition Enhanced SoC solution receives a Best Choice Golden Award at Computex Taipei 2018.
2018/06 The Company receives an Asia Responsible Entrepreneurship Award. 2018/12 The ALC5520 Multi-Mic Far-Field Speech Recognition Enhanced SoC solution receives a 2018 Innovative Product Award from the Hsinchu Science Park Administration.
2019/06 The RTD2893 8K Video Decoder and Processing IC receives the Best Choice of the Year/Golden Award at Computex Taipei 2019.
2019/06 The RTL8773B Bluetooth 5 ANC Smart Headset SoC receives a Best Choice Golden Award at Computex Taipei 2019.
2019/06 The RTL8722DM Ameba D: Ultra-Low-Power Versatile IoT Solution wins a Best Choice IoT Category Award at Computex Taipei 2019.
2019/12 The RTD2893 8K Video Decoder and Processing IC receives a 2019 Innovative Product Award from the Hsinchu Science Park Administration.
2019/12 The Company receives a 2019 Science Park R&D Accomplishment Award for overall R&D results.
2020/12 The RTL8156B 2.5G USB Ethernet controller with world’s smallest form factor & lowest power receives a 2020 Innovative Product Award from the Hsinchu Science Park Administration.
2020/12 The Company receives a 2020 Hsinchu Science Park R&D Accomplishment Award for overall R&D results.

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Corporate Governance Report

I. Organization

1. Organizational Structure

==> picture [497 x 244] intentionally omitted <==

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

Board of Directors Audit
Chairman Committee
Chairman's Compensation
Office Committee
President Nominating
CEO Committee
President's
Office
Communications Computer Corporate Intelligent
Network Peripheral Multimedia R&D Center Technology Decision
Business Group Business Group Business Group Center Research Center
Supply Quality Information Occupational
Management Management Finance Technology Administration Safety & Health
Center Department Division Department Department Center
----- End of picture text -----

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2. Responsibilities of Main Departments

Department	KeyResponsibilities
Chairman’s Office	Reviews the Company’s operations and implementation of resolutions made by shareholders’ meetings and the Board of Directors;Companyaudits.
President’s Office	Plans and executes the Company’s operational strategies and analysis; carries out Board of Directors’ resolutions, investment assessments, PR statements, legal and patent affairs, and international marketing.
Communications Network Business Group	Manages communications network product R&D, planning and marketing.
Computer Peripheral Business Group	Manages computer peripheral product R&D, planning and marketing.
Multimedia Business Group	Manages multimedia product R&D, planning and marketing.
R&D Center	Plans new products, develops and designs relevant core technologies, and manages circuit layouts.
Corporate TechnologyCenter	Oversees the planning, research and service of all advanced technologies needed in the Company’sproduct development
Intelligent Decision Research Center	Oversees big data analytics.
Supply Management Center	Oversees raw materials, warehousing, materials control, procurement, IC manufacturing and testing,and testingequipment maintenance.
Quality Management Department	Oversees product quality control and reliability engineering.
Finance Division	Oversees finance,accounting,and stock affairs.
Information Technology Department	Oversees information management and computer systems integration and applications.
Administration Department	Oversees general affairs, factory administration, and human resources.
Occupational Safety & Health Center	Oversees occupational safety and health.

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Managers or Directors who are spouse or within second-degree relatives to each other	Relation		Brother	-	-	-	-	Brother	-	-	-	-	-
	Name		Yeh, Po-Len	-	-	-	-	Yeh, Nan- Horng	-	-	-	-	-
	Title		Director	-	-	-	-	Chairman	-	-	-	-	-
Current Positions at the Company and other companies		NA	Chairman of Realsil Microelectronics Corp. (Note 2) Director of Yihong Investment Co., Ltd. Chairman of Zu Yuan Industries Co., Ltd. Director of Cotek Pharmaceutical Industry Co., Ltd. Director of Novasiot (Shanghai) Co., Ltd. Director of Chong Qìng Rui Lian Microelectronics Ltd.	NA	President of Realtek Semiconductor Corp. Director of Realsun Technology Corporation (Note 2) Director of Realking Investments Limited (Note 2) Director of Hungwei Venture Capital Co., Ltd (Note 2) Director of Realtek Semiconductor (Japan) Corp. (Note 2)	Chief Financial Officer of Realtek Semiconductor Corp. Director of Realsun Investments Co., Ltd. (Note2) Director of Realtek Semiconductor (ShenZhen) Corp. (Note 2)	NA	Chairman of Realsun Technology Corporation (Note 2) Chairman of Realking Investments Limited (Note 2) Chairman of Hungwei Venture Capital Co., Ltd. (Note 2) Director of Realtek Semiconductor (HK) Ltd. (Note 2)	Chief Operating Officer of Realtek Semiconductor Corp. Director of Hungwei Venture Capital Co., Ltd. (Note 2) Director of Realsun Investments Co., Ltd. (Note 2) Director of Realking Investments Limited (Note 2) Director of Realsun Technology Corporation (Note 2) Chairman of Realtek Singapore Pte Ltd. (Note 2) Chairman of Realtek Investment Singapore Private Limited (Note 2) Director of Cortina Access, Inc. (Note 2) Chairman of Cortina Systems Taiwan Limited (Note 2) Chairman of Suzhou PanKore Integrated Circuit Technology Co., Ltd. (Note2)	None	CEO of Creative Education and Management Foundation Chairman of EZTravel Travel Service Co., Ltd. Chairman of You Hsin Creative Co., Ltd. Chairman of Eland Technologies Co., Ltd. Chairman of Eland Information Co., Ltd.	President of Jasslin Technology Co., Ltd.	None
Selected Education & Experience		NA	MBA(Master of Business Administration) ,Washington University in St. Louis, USA.	NA	M.S. in Electrical Engineering, National Taiwan University	MBA(Master of Business Administration), The City University of New York, USA.	NA	MSc. & Ph.D. in Material Engineering, Loughbourough University of Technology, United Kingdom	M.S. in Electrical Engineering, State University of New York, USA	Open Junior College	M.A. in Journalism, National Chengchi University	MBA(Master of Business Administration), Tulane University, USA	Bachelor of Electrical Engineering, National Taiwan University
Shareholding by Nominee Arrangement	%	-	-	-	-	-	-	-	-	-	-	-	-
	Share	-	-	-	-		-	-	-	-	-	-	-
Spouse & Minor Shareholding	%	-	-	-	0.00%		-	0.04%	0.02%	1.29%	-	-	0.03%
	Share	-	-	-	1,384		-	208,398	79,625	6,569,949	-	-	152,024
Current Shareholding	%	4.34%	-	0.98%	0.17%	0.01%	0.01%	0.46%	0.01%	1.24%	-	-	0.11%
	Share	22,146,604	-	5,023,359	892,831	40,686	66,000	2,323,899	42,205	6,308,389	-	-	563,688
Shareholding When Elected	%	4.36%	-	1.22%	0.27%	0.01%	0.01%	0.46%	0.01%	1.24%	-	-	0.11%
	Share	22,146,604	-	6,184,359	1,388,831	40,686	66,000	2,323,899	42,205	6,308,389	-	-	578,688
Date First Elected		2015.06.09	1994.04.02 (Note1)	2009.06.10	2000.06.09	2006.06.12	2015.06.09	1991.06.26	2018.06.05	1991.06.26	2015.06.09	2018.06.05	2018.06.05
Term of Office		3 years	3 years	3 years	3 years	3 years	3 years	3 years	3 years	3 years	3 years	3 years	3 years
Date Elected		2018.06.05	2018.06.05	2018.06.05	2018.06.05	2018.06.05	2018.06.05	2018.06.05	2018.06.05	2018.06.05	2018.06.05	2018.06.05	2018.06.05
Gender		-	Male	-	Male	Male	-	Male	Male	Femal e	Male	Male	Male
Name		Cotek Pharmaceutical Industry Co., Ltd.	Cotek Pharmaceutical Industry Co., Ltd. Representative: Yeh, Nan-Horng	Forehead International Co., Ltd.	Forehead International Co., Ltd. Representative: Chiu, Sun-Chien	Forehead International Co., Ltd. Representative: Chern, Kuo-Jong	Sonnen Limited	Sonnen Limited Representative: Yeh, Po-Len	Sonnen Limited Representative: Huang, Yung-Fang	Ni, Shu-Ching	Chen, Fu-Yen	Wang, Chun-Hsiung	Ou Yang, Wen-Han
Nationality / Country of Origin		ROC	ROC	BVI	ROC	ROC	BVI	ROC	ROC	ROC.	ROC	ROC	ROC
Title		Director	Chairman	Director	Vice Chairman	Director	Director	Director	Director	Director	Independent Director	Independent Director	Independent Director

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Table I: The major shareholders of institutional shareholders

April 10, 2021

	April 10, 2021
Institutional Shareholders	Major Shareholders of Institutional Shareholders
Cotek Pharmaceutical Industry Co., Ltd.	Leicester Worldwide Corporation (shareholding: 48.24%) De Tao Venture Capital Corp. (shareholding: 20%) Hi-Xuan Co., Ltd. (shareholding: 10.59%) YihongInvestment Co.,Ltd. (shareholding:10.59%)
Sonnen Limited	Yeh,Yen-Hsi(shareholding:100%)
ForeheadInternationalCo.,Ltd.	Time WealthCo.,Ltd. (shareholding:100%)

Table II: The major shareholders of the major shareholders of institutional shareholders in Table I

	April 10, 2021
Shareholder	Major Shareholders Holding
Leicester Worldwide Corporation	Top Best Development Limited (shareholding: 33%) Apex Fortune Global Limited (shareholding: 33%) Perfectech INT'L Ltd. (shareholding: 33%)
Time WealthCo.,Ltd.	H.S.LeeHsia (shareholding:100%)

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Professional Background and Independence of Directors

Criteria Name Cotek Pharmaceutical Industry Co., Ltd. Representative: Yeh, Nan-Horng Forehead International Co., Ltd. Representative: Chiu, Sun-Chien Forehead International Co., Ltd. Representative: Chern, Kuo-Jong	Possess five or more years of experience and the following professional qualifications An instructor or higher in a department of commerce, law, finance, accounting, or other academic department related to the business needs of the company in a public or private junior college, college, or university. A judge, public prosecutor, attorney, certified public accountant, or other professional or technical specialist who has passed a national examination and been awarded a certificate in a profession necessary for the business of the company. Have work experience in the area of commerce, law, finance, or accounting, or otherwise necessary for the business of the company. - - � - - � - - �	Possess five or more years of experience and the following professional qualifications An instructor or higher in a department of commerce, law, finance, accounting, or other academic department related to the business needs of the company in a public or private junior college, college, or university. A judge, public prosecutor, attorney, certified public accountant, or other professional or technical specialist who has passed a national examination and been awarded a certificate in a profession necessary for the business of the company. Have work experience in the area of commerce, law, finance, or accounting, or otherwise necessary for the business of the company. - - � - - � - - �	Possess five or more years of experience and the following professional qualifications An instructor or higher in a department of commerce, law, finance, accounting, or other academic department related to the business needs of the company in a public or private junior college, college, or university. A judge, public prosecutor, attorney, certified public accountant, or other professional or technical specialist who has passed a national examination and been awarded a certificate in a profession necessary for the business of the company. Have work experience in the area of commerce, law, finance, or accounting, or otherwise necessary for the business of the company. - - � - - � - - �	Independence Status (Note) 1 2 3 4 5 6 7 8 910 11 12 - - � � � � � � �- �- - - � � � � � � � � �- - - � � � � � � � � �-	Independence Status (Note) 1 2 3 4 5 6 7 8 910 11 12 - - � � � � � � �- �- - - � � � � � � � � �- - - � � � � � � � � �-	Independence Status (Note) 1 2 3 4 5 6 7 8 910 11 12 - - � � � � � � �- �- - - � � � � � � � � �- - - � � � � � � � � �-	Independence Status (Note) 1 2 3 4 5 6 7 8 910 11 12 - - � � � � � � �- �- - - � � � � � � � � �- - - � � � � � � � � �-	Independence Status (Note) 1 2 3 4 5 6 7 8 910 11 12 - - � � � � � � �- �- - - � � � � � � � � �- - - � � � � � � � � �-	Independence Status (Note) 1 2 3 4 5 6 7 8 910 11 12 - - � � � � � � �- �- - - � � � � � � � � �- - - � � � � � � � � �-	Independence Status (Note) 1 2 3 4 5 6 7 8 910 11 12 - - � � � � � � �- �- - - � � � � � � � � �- - - � � � � � � � � �-	Independence Status (Note) 1 2 3 4 5 6 7 8 910 11 12 - - � � � � � � �- �- - - � � � � � � � � �- - - � � � � � � � � �-	Independence Status (Note) 1 2 3 4 5 6 7 8 910 11 12 - - � � � � � � �- �- - - � � � � � � � � �- - - � � � � � � � � �-	Independence Status (Note) 1 2 3 4 5 6 7 8 910 11 12 - - � � � � � � �- �- - - � � � � � � � � �- - - � � � � � � � � �-	Independence Status (Note) 1 2 3 4 5 6 7 8 910 11 12 - - � � � � � � �- �- - - � � � � � � � � �- - - � � � � � � � � �-	Independence Status (Note) 1 2 3 4 5 6 7 8 910 11 12 - - � � � � � � �- �- - - � � � � � � � � �- - - � � � � � � � � �-	Number of other public companies concurrently serving as an independent~~d~~irector 0 0 0 0 0 0
Sonnen Limited Representative: Yeh, Po-Len	-	-	�	-	-	�	�	�	�	�	�	�	-	�	-
Sonnen Limited Representative: Huang, Yung-Fang	-	-	�	-	-	�	�	�	�	�	�	�	�	�	-
Ni, Shu-Ching	-	-	�	�	�	-	-	�	�	�	�	�	�	�	�
Chen, Fu-Yen	-	-	�	�	�	�	�	�	�	�	�	�	�	�	�	0 0 0
Wang, Chun-Hsiung Ou Yang, Wen-Han	- -	- -	� �	� �	� �	� �	� �	� �	� �	� �	� �	� �	� �	� �	� �

Note: ‘ � ’ indicates the conditions listed met during the director’s terms and two years prior.

(1) Not an employee of the company or any of its affiliates.

(2) Not a director or supervisor of the company or any of its affiliates. (The same does not apply, however, in cases where the person is an independent director of the company, its parent company, or any subsidiary, as appointed in accordance with the Act or with the laws of the country of the parent or subsidiary.)

(3) Not a natural-person shareholder who holds shares, together with those held by the person's spouse, minor children, or held by the person under others' names, in an aggregate amount of one percent or more of the total number of issued shares of the company or ranking in the top 10 in holdings.

(4) Not a spouse, relative within the second degree of kinship, or lineal relative within the third degree of kinship, of any of the persons in the preceding three subparagraphs.

(5) Not a director, supervisor, or employee of a corporate shareholder that directly holds five percent or more of the total number of issued shares of the company or of a corporate shareholder that ranks among the top five in shareholdings. (The same does not apply, however, in cases where the person is an independent director of the company, its parent company, or any subsidiary, as appointed in accordance with the Act or with the laws of the country of the parent or subsidiary.)

(6) Not a director, supervisor or employee of other companies controlled by the same person with more than half of directors or voting shares of the company and another companies. (The same does not apply, however, in cases where the person is an independent director of the company, its parent company, or any subsidiary, as appointed in accordance with the Act or with the laws of the country of the parent or subsidiary.)

(7) Not a director, supervisor or employee of another companies or institutions who are the same person or spouse as the company's chairman, president or equivalent. (The same does not apply, however, in cases where the person is an independent director of the company, its parent company, or any subsidiary, as appointed in accordance with the Act or with the laws of the country of the parent or subsidiary.)

(8) Not a director, supervisor, officer, or shareholder holding five percent or more of the shares, of a specified company or institution that has a financial or business relationship with the company. (The same does not apply, however, in cases where the specified company or institution

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holds 20 percent or more and no more than 50 percent of the total number of issued shares of the company, and the person is an independent director of the company, its parent company, or any subsidiary, as appointed in accordance with the Act or with the laws of the country of the parent or subsidiary.)

(9) Not a professional individual who, or an owner, partner, director, supervisor, officer or their spouse of a sole proprietorship, partnership, company, or institution that, provides audit or commercial, legal, financial, or accounting services with remuneration in the past two years with cumulative amounts exceeding NT$ 500,000 to the company or to any affiliate of the company. However, this restriction does not apply to a member of the remuneration committee, public tender offer review committee, or special committee for merger/consolidation and acquisition, who exercises powers pursuant to the Act or to the Business Mergers and Acquisitions Act or related laws or regulations.

(10) Not a spouse or relative within the second degree of kinship to any of other directors.
(11) Not under any condition pursuant to Article 30 of the Company Act.
(12) Not a juridical person or its representative as defined in Article 27 of the Company Act.

-14-

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Managers who are spouse or second-degree relative	Relation	-	-	-	-	-	-	-	-	-	-
	Name	-	-	-	-	-	-	-	-	-	-
	Title	-	-	-	-	-	-	-	-	-	-
Current Positions at other companies		Director of Realsun Technology Corporation (Note1) Director of Realking Investments Limited (Note1) Director of Hungwei Venture Capital Co., Ltd. (Note1) Director of Realtek Semiconductor (Japan) Corp. (Note1)	Director of Realtek Venture Capital Co., Ltd. (Note1) Director of Realsun Investments Co., Ltd. (Note1) Director of Realking Investments Limited (Note1) Director of Realsun Technology Corporation (Note1) Chairman of Realtek Singapore Pte Ltd. (Note1) Chairman of Realtek Investment Singapore Private Limited (Note1) Director of Cortina Access, Inc. (Note1) Chairman of Cortina Systems Taiwan Limited (Note1) Chairman of Suzhou PanKore Integrated Circuit Technology Co. Ltd. (Note1)	Director of Realsun Investments Co., Ltd. (Note1) Director of Realtek Semicomductor (ShenZhen) Corp. (Note1)	Chairman of Realsun Investments Co., Ltd. (Note1)	Director of Realtek Semiconductor (HK) Limited (Note1)	NA	Director of C-Media Electronics Inc. (Note1)	None	Director of Compal Broadband Networks Inc. (Note1) Chairman of RayMX Microelectronics Corporation (Note1)	Director of Realtek Singapore Pte. Ltd. (Note1) Director of Realtek Investment Singapore Private Limited (Note1) Director of Cortina Access, Inc. (Note1) Director of Cortina Systems Taiwan Limited (Note1) Director of Suzhou PanKore Integrated Circuit Technology Co. Ltd. (Note1)
Selected Education & Experience		M.S. in Electrical Engineering, National Taiwan University	M.S. in Electrical Engineering, State University of New York, USA	MBA(Master of Business Administration), The City University of New York, USA	Ph.D. in Chemical Engineering, Kansas State University, USA	M.S. in Electrical Engineering, National Taiwan University	MBA(Master of Business Administration), National Chengchi University	MBA(Master of Business Administration), National Chengchi University	B.S in Electronics Engineering, National Chiao Tung University	M.S. in Electrical Engineering, National Taiwan University	M.S. in Communications Engineering , National Chiao Tung University
Shareholding by Nominee Arrangement	%	-	-	-	-	-	-	-	-	-	-
	Total	-	-	-	-	-	-	-	-	-	-
Spouse & Minor Shareholding	%	0.00%	0.02%	0.00%	0.00%	0.00%	-	0.00%	0.00%	0.00%	0.00%
	Total	1,384	79,625	0	0	0	-	0	0	0	4,000
Shareholding	%	0.17%	0.01%	0.01%	0.04%	0.01%	-	0.00%	0.02%	0.00%	0.00%
	Total	892,831	42,205	40,686	188,560	50,000	-	0	120,267	74	23,948
Date Appointed		1999.07.01	2015.04.27	2002.03.28	2014.03.24	2017.03.13	2017.03.13	2020.07.31	2017.03.13	2017.10.30	2017.10.30
Gender		Male	Male	Male	Male	Male	Male	Male	Male	Male	Male
Name		Chiu, Sun- Chien	Huang, Yung- Fang	Chern, Kuo- Jong	Huang, Yee- Wei	Lin, Ying-Hsi	Lin, Lung-Wei (Note 2)	Wang,Po-Chih	Chang, King- Hsiung	Tsai, Jon-Jinn	Yen, Kuang- Yu
Nationality		ROC	ROC	ROC	ROC	ROC	ROC	ROC	ROC	ROC	ROC
Title		President	Chief Operating Officer	Chief Financial Officer	Vice President	Vice President	Vice President	Vice President	Vice President	Vice President	Vice President

-15-

Managers who are spouse or second-degree relative	Relation	-
	Name	-
	Title	-
Current Positions at other companies		Director of Greatek Electronics Inc. (Note1) Director of Realtek Investment Singapore Private Limited Supervisor of RayMX Microelectronics Corporation (Note1)
Selected Education & Experience		M.A. in Accounting, National Taiwan University
Shareholding by Nominee Arrangement	%	-
	Total	-
Spouse & Minor Shareholding	%	0.00%
	Total	0
Shareholding	%	0.01%
	Total	35,045
Date Appointed		2007.03.16
Gender		Male
Name		Chang, Jr- Neng
Nationality		ROC
Title		Controller

-16-

Remuneration received from investment	Remuneration received from investment	business other than subsidiaries or parent company None	business other than subsidiaries or parent company None	business other than subsidiaries or parent company None	business other than subsidiaries or parent company None	business other than subsidiaries or parent company None	business other than subsidiaries or parent company None	business other than subsidiaries or parent company None	None	None	None
A + B + C + D + E+F+G as percentage of net income after taxes		Consolidated Entities 1.99%							0.01%
		REA	LTEK 1.99%						0.01%
Remuneration from concurrent position as employee	Profit distribution for employee compensation (G)	Consolidated Entities	Stock 0						0
			Cash 35,557						0
		REALTEK	Stock 0						0
			Cash 35,557						0
	Pension (F)	Consolidated Entities 1,094							0
		REALTEK 1,094							0
	Salaries, bonuses and special expenses (E) (Note 2)	Consolidated Entities 47,792							0
		REALTEK 47,792							0
A + B + C+D as percentage of net income after taxes		Consolidated Entities 1.03%							0.01%
		REALTEK 1.03%							0.01%
Director remuneration	Business expenses (D)	Consolidated ~~Entities~~ 1,440							480
		REALTEK 1,440							480
	Remuneration from profit distribution (C) (Note 1)	Consolidated Entities 89,200							800
		REALTEK 89,200							800
	Pension (B)	Consolidated -							-
		REALTEK ~~E titi~~ -							-
	Remuneration (A)	Consolidated Entities -							-
		REALTEK -							-
	Name	Cotek Pharmaceutical Industry Co., Ltd. Representative: Yeh, Nan-Horng		Forehead International Co., Ltd. Representative: Chiu, Sun-Chien	Forehead International Co., Ltd. Representative: Chern, Kuo-Jong	Sonnen Limited Representative: Yeh, Po-Len	Sonnen Limited Representative: Huang, Yung- Fang	Ni, Shu-Ching	Chen, Fu-Yen	Wang, Chun- Hsiung	Ou Yang, Wen- Han
	Title	Chairman		Vice Chairman	Director	Director	Director	Director	Independent Director	Independent Director	Independent Director

-17-

Remuneration Range

	Remuneration Range	Remuneration Range	Remuneration Range	Remuneration Range
Remuneration Range	Name of Directors
	Total remuneration (A+B+C+D)		Total remuneration (A+B+C+D+E+F+G)
	REALTEK	Consolidated Entities	REALTEK	Consolidated Entities
Less than $1,000,000	Yeh, Nan-Horng, Chiu, Sun-Chien, Chern, Kuo-Jong, Yeh, Po-Len, Huang, Yung-Fang, Chen, Fu-Yen, Wang, Chun-Hsiung, Ou Yang,Wen-Han	Yeh, Nan-Horng, Chiu, Sun-Chien, Chern, Kuo-Jong, Yeh, Po-Len, Huang, Yung-Fang, Chen, Fu-Yen, Wang, Chun-Hsiung, Ou Yang,Wen-Han	Chen, Fu-Yen, Wang, Chun-Hsiung, Ou Yang, Wen-Han	Chen, Fu-Yen, Wang, Chun-Hsiung, Ou Yang, Wen-Han
$1,000,000 (incl.) - $2,000,000 (excl.)	Ni, Shu-Ching	Ni, Shu-Ching	Ni, Shu-Ching	Ni, Shu-Ching
$2,000,000 (incl.) - $3,500,000 (excl.)	-	-	-	-
$3,500,000 (incl.) - $5,000,000 (excl.)	-	-	-	-
$5,000,000 (incl.) - $10,000,000 (excl.)	-	-	-	-
$10,000,000 (incl.) - $15,000,000 (excl.)	-	-	Huang, Yung-Fang, Chern, Kuo-Jong,	Huang, Yung-Fang, Chern, Kuo-Jong,
$15,000,000 (incl.) - $30,000,000 (excl.)	Cotek Pharmaceutical Industry Co., Ltd.	Cotek Pharmaceutical Industry Co., Ltd.	Yeh, Po-Len, Yeh, Nan-Horng, Chiu, Sun-Chien, Cotek Pharmaceutical IndustryCo.,Ltd.	Yeh, Po-Len, Yeh, Nan-Horng, Chiu, Sun-Chien, Cotek Pharmaceutical IndustryCo.,Ltd.
$30,000,000 (incl.) - $50,000,000 (excl.)	Sonnen Limited, Forehead International Co.,Ltd.	Sonnen Limited, Forehead International Co.,Ltd.	Sonnen Limited, Forehead International Co.,Ltd.	Sonnen Limited, Forehead International Co.,Ltd.
$50,000,000 (incl.) - $100,000,000 (excl.)	-	-	-	-
$100,000,000 and above	-	-	-	-
Total	12	12	12	12

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-18-

Compenation received frominvestment business other than subsidiaries or parent company	Compenation received frominvestment business other than subsidiaries or parent company	Compenation received frominvestment business other than subsidiaries or parent company	None	None	None	None	None	None	None	None	None	None	None
A + B + C + D as percentage of net income after taxes		Consolidated Entities	1.47%
		REALTEK	1.47%
Employee compensation (D)	Consolidated Entities	Stock	0
		Cash	42,738
	REALTEK	Stock	0
		Cash	42,738
Bonuses and special expenses (C) (Note)	Consolidated Entities		43,103
	REALTEK		43,103
Pension (B)	Consolidated Entities		2,455
	REALTEK		2,455
Salary (A)	Consolidated Entities		40,909
	REALTEK		40,909
	Name		Chiu, Sun-Chien	Huang, Yung-Fang	Chern, Kuo-Jong	Huang, Yee-Wei	Lin, Ying-Hsi	Lin, Lung-Wei (Note 2)	Wang,Po-Chih	Chang, King-Hsiung	Tsai, Jon-Jinn	Yen, Kuang-Yu	Chang, Jr-Neng
	Title		President	Chief Operating Officer	Chief Financial Officer	Vice President	Vice President	Vice President	Vice President	Vice President	Vice President	Vice President	Controller

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Compensation Range

	Compensation Range	Compensation Range
Compensation Range	Name of Presidents and Vice Presidents
	REALTEK	Consolidated Entities
Less than $1,000,000	-	-
$1,000,000(incl.)- $2,000,000(excl.)	-	-
$2,000,000(incl.)- $3,500,000(excl.)	-	-
$3,500,000(incl.)- $5,000,000(excl.)	-	-
$5,000,000 (incl.) - $10,000,000 (excl.)	Huang, Yee-Wei, Chang, King-Hsiung, Lin, Lung-Wei(Note), Chang, Jr-Neng	Huang, Yee-Wei, Chang, King-Hsiung, Lin, Lung-Wei(Note), Chang, Jr-Neng
$10,000,000 (incl.) - $15,000,000 (excl.)	Chern, Kuo-Jong, Huang, Yung-Fang, Lin, Ying-His, Yen, Kuang-Yu, Tsai, Jon-Jinn, Wang,Po-Chih	Chern, Kuo-Jong, Huang, Yung-Fang, Lin, Ying-His, Yen, Kuang-Yu, Tsai, Jon-Jinn, Wang,Po-Chih
$15,000,000(incl.)- $30,000,000(excl.)	Chiu, Sun-Chien	Chiu, Sun-Chien
$30,000,000(incl.)- $50,000,000(excl.)	-	-
$50,000,000(incl.)- $100,000,000(excl.)	-	-
$100,000,000 and above	-	-
Total	11	11

Note : Lin, Lung-Wei resigned on 2020.05.31.

3.3 Employee’s Compensation for Officers

2020 / Unit: NT$K

mpoyees omp	ensaon or cers				2020 / Unit: NT$K
Title	Name	Stock	Cash	Total	Percentage of net income after taxes (%)
President	Chiu, Sun-Chien
Chief Operating Officer	Huang, Yung-Fang
Chief Financial Officer	Chern, Kuo-Jong	0	42,738	42,738	0.49%
Vice President	Huang,Yee-Wei
Vice President	Lin,Ying-His
Vice President	Lin,Lung-Wei(Note)
Vice President	Wang,Po-Chih
Vice President	Chang,King-Hsiung
Vice President	Tsai,Jon-Jinn
Vice President	Yen,Kuang-Yu
Controller	Chang, Jr-Neng

Note: Lin, Lung-Wei resigned on 2020.05.31.

Percentage of remuneration and compensation paid to Directors and Officers by the Company and all companies of the consolidated statements accounts for net income after taxes for the recent two years.

Percentage of remuneration and compensation paid to Directors and Officers by the Company and all companies of the consolidated statements accounts for net income after taxes for 2019	Percentage of remuneration and compensation paid to Directors and Officers by the Company and all companies of the consolidated statements accounts for net income after taxes for 2020
4.18%	3.47%

The 2020 annual remuneration of directors and compensation of employees was decided in accordance with the Company's articles of incorporation. If gained profits within a fiscal year, the Company shall allocate at a maximum of 3% of the profits as directors’ remuneration, and allocate no less than 1% of the profits as employees’ compensation. The decision for directors' remuneration was based on the board performance evaluation results of such aspects as the participation in the operation, the quality of the board of directors’ decision-making, alignment of the goals and missions of the Company, awareness of the duties of a director, management of internal relationship and communication, the director’s professionalism and continuing education,

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internal control, etc. The decision for officers’ compensation was based on the performance appraisal indicators such as the length of service and position, performance, contribution to the Company's operation, industry benchmark, the Company’s profitability, etc.

The directors’ remuneration and officers’ compensation were proposed to the board of directors after the resolution based on the performance evaluation results, the company’s operational performance, and future risk exposure approved by the remuneration committee, and processed after the approval of the board of directors. The directors’ remuneration and employees’ compensation will also be reported at the shareholders' meeting. The Company's remuneration committee and the board of directors will review the remuneration policies of directors and officers in a timely manner based on the actual operating conditions and relevant laws and regulations, in order to balance the company's sustainable operation and risk control.

The planning and operation of the succession of board members and senior management: 5.1 Succession planning for board members
There are currently 9 directors (including 3 independent directors) for the Company. The nomination and selection of directors take into account the overall capacity and diversity of the board of directors, and adjust the composition of members according to the results of performance evaluation and the need for substantive operations. The succession planning of the board of directors includes the succession of the senior management of the group, and the recruitment of external professionals with background of business management, law, accounting, industry, technology, or marketing.
5.2 Succession planning for senior management
- The succession planning for senior management of the Company is mainly constructed as follows:
- (1) Based on the future development strategy, define the positions and talent needs of the company, and review the succession planning regularly in response to changes in operations and strategies.
- (2) Develop competent talents with potential and capacities to enter the succession planning talent pool, and establish a comprehensive training mechanism and talent development plan for the talent pool.
- (3) Timely promote the mid-level managers as deputies for the high-level managers, and understand the development of the middle-level management through performance appraisal and as a reference for succession planning.

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III. Corporate Governance

1. Operation of Board of Directors

Operation of Board of Directors:

The Board of Directors held meetings 7 times in 2020. Attendance status of Directors is as follows:

Title Chairman Vice Chairman Director Director Director Director Independent Director Independent Director Independent Director	Name Cotek Pharmaceutical Industry Co., Ltd. Representative: Yeh, Nan-Horng Forehead International Co., Ltd. Representative: Chiu, Sun-Chien Sonnen Limited Representative: Yeh, Po-Len Sonnen Limited Representative: Huang, Yung- Fang Forehead International Co., Ltd. Representative: Chern, Kuo-Jong Ni, Shu-Ching Chen, Fu-Yen Ou Yang, Wen-Han Wang, Chun-Hsiung	Attendance in Person 7 7 7 7 7 7 7 7 7	Attendance by Proxy 0 0 0 0 0 0 0 0 0	Attendance Rate (%) 100% 100% 100% 100% 100% 100% 100% 100% 100%	Remarks - - - - - - - - -

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Other disclosures:

1.1
(1) Securities and Exchange Act §14-3 resolutions: Not applicable.
(2) Resolutions of the board of directors with objected or reserved opinions by independent directors and with records or written statements: Not applicable.
1.2 Execution of the directors' interests evasion: The directors have avoided the proposal with personal stake.
1.3 The goals for strengthening the powers of the board of directors and performance evaluation:
(1) Set up functions committees: For the purpose of developing supervisory functions and strengthening management mechanisms, the Company has set up audit committee, remuneration committee, and nominating committee.
(2) Enhance corporate governance: The Company has established corporate governance best practice principles, corporate social responsibility best practice principles, and regulations governing the board performance evaluation, and also discloses corporation governance information in accordance with the relevant laws.

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Board of Directors performance evaluation
2.1 Evaluation cycles: Conducting an internal board performance evaluation every year
2.2 Evaluation periods: From Jan. 1, 2020 to Dec. 31, 2020
2.3 Scope and method of evaluation: The performance evaluation of the board as a whole, individual board members and functional committees, including audit committee, remuneration committee, and nominating committee.
2.4 Method of evaluation: The internal evaluation of the board, self-evaluation by individual board members, and the internal evaluation of audit committee, remuneration committee, and nominating committee. The units conducting evaluations is nominating committee.
2.5 Criteria of evaluation:
- 2.5.1 The board of directors performance evaluation
  - (1) Participation in the operation of the company;
  - (2) Improvement of the quality of the board of directors' decision making;
  - (3) Composition and structure of the board of directors;
  - (4) Election and continuing education of the directors;
  - (5) Internal control.
- 2.5.2 The board members performance evaluation
  - (1) Alignment of the goals and missions of the company;
  - (2) Awareness of the duties of a director;
  - (3) Participation in the operation of the company;
  - (4) Management of internal relationship and communication;
  - (5) The director's professionalism and continuing education;
  - (6) Internal control.
- 2.5.3 Functional committee’s performance evaluation
  - (1) Participation in the operation of the company;
  - (2) Awareness of the duties of the functional committee;
  - (3) Improvement of quality of decisions made by the functional committee;
  - (4) Makeup of the functional committee and election of its members;
  - (5) Internal control.
2.6 Performance evaluation results: The 2020 performance evaluation results of the board, the board members, audit committee, remuneration committee, and nominating committee are all ‘outstanding’. The results of the performance evaluation will be used as a reference for the remuneration of individual directors or functional committee members and the nomination of continuation in office.

3. Operation of Audit Committee

The Audit Committee assists the Board of Directors in performing its supervision functions. It is also responsible for tasks defined by the Company Act, Securities and Exchange Act and other relevant regulations. The operation of Audit Committee is based on the Audit Committee Charter. The Audit Committee shall convene at least once quarterly; 7 meetings were held in 2020. It also maintains good communication channels with the Company’s internal audit manager and the CPA.

The major annual review matters of Audit Committee were as follows:

(1) Financial statements.
(2) Internal control system.
(3) Material transaction of asset acquisition, intercompany loans, and endorsement and guarantee.
(4) The audit plan and implementation of the internal audit unit.
(5) Appointment, remuneration and independence assessment of the CPA.
(6) Establishing or revising principles and regulations related to corporate governance and corporate social responsibility.

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Operation of Audit Committee:

The Audit Committee held meetings 7 times in 2020. Attendance status of Independent Directors is as follows:

follows:
Title Independent Director Independent Director	Name Ou Yang, Wen-Han Chen, Fu-Yen	Attendance in Person 7 7	Attendance by Proxy 0 0	Attendance Rate (%) 100% 100%	Remarks - - -
Independent Director	Wang, Chun- Hsiung	7	0	100%

Other disclosures:

3.1 (1) Securities and Exchange Act §14-5 resolutions

Date	Resolutions	The Opinions of All Independent Directors and the Company’s Actions to the Opinions
Feb. 21, 2020	1. To approve property purchase. 2. The Company's Auditor of financial statements and Audit Fee for 2020.	All independent directors approved
Mar. 18, 2020	1. 2019 financial statements and consolidated financial statements. 2. Issuance of new shares for capital increase from employees’ compensation. 3. The Company intends to loan a fund to a subsidiary. 4. To revise provisions of the Company's internal regulations. 5. To revise the written system of internal control of the Company. 6.2019 Statementof InternalControlSystem.
Apr. 22, 2020	1. Distribution of 2019 Retained Earnings. 2. 2019 cash dividends distribution from retained earnings. 3. Cash distribution from capital surplus. 4. 2019 business report and 2020 business plan. 5. The Company plans to build factory & office buildings. 6. The Company intends to loan a fund to a subsidiary.
Jul. 29, 2020	1. To establish Regulation of Insider Trading.
Sep. 30, 2020	1. To increase budget for office building and parking construction. 2. The Company increases investment in a subsidiary.
Oct. 27, 2020	1. The Company obtains its holdings of equity from its subsidiary. 2. The Company's subsidiaries reduce capital to offset accumulated deficit.

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Date	Resolutions	The Opinions of All Independent Directors and the Company’s Actions to the Opinions
	3. The Company extends the period of endorsement guarantee for bank loans of a subsidiary. 4. The Company intends to loan a fund to a subsidiary. 5. The Company intends to loan a fund to a Mainland China subsidiary. 6. The Company's investee company intends to loan a fund to a Mainland China subsidiary. 7. The Company intends to endorse the guarantee for a Mainland Chinasubsidiary.	All independent directors approved
Dec. 22, 2020	1. The Company intends to loan a fund to a subsidiary. 2. Fund loans between subsidiaries of the Company. 3. The Company's investee company intends to loan a fund to a Mainland China subsidiary. 4. The Company increases budget for factory & office buildings 5. The Company's investee company intends to subscribe capital increase of a Mainland China subsidiary. 6. The Status that the Company regularly evaluates the independence of auditor. 7.2021 annual auditplans.

(2) There was no resolution that was not approved by the Audit Committee but was approved by two thirds or more of all Directors.

3.2 Execution of the independent directors' interests evasion: None.

3.3 The communication between the independent directors and the internal audit manager and the CPA: The Company’s independent directors communicate with the CPA by the way of meetings, discussions, telephone calls or e-mails through the audit committee or separately to discuss the review results of the financial statements and related laws and regulations such as accounting, taxation, and securities management. If major issues occur, a meeting can be convened at any time.

The Company’s independent directors communicate with the internal audit manager by the way of meetings, discussions, telephone calls or e-mails through the audit committee or separately to discuss the company's audit-related works, audit reports, and the condition of discovering problems and tracking improvements. If major issues occur, a meeting can be convened at any time.

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(1) The major items of communication between the independent directors and the CPA

Date	The Major Items of the Communication	The suggestions of independent directors and the Company’s action tothe suggestions
Mar. 18, 2020	The consolidated financial statement and independent auditor'sreport result for 2019andImportant auditevents.	No suggestion from independentdirectors
Apr. 24, 2020	The consolidated financial statement and independent auditor's report result for the first quarter of 2020 and Important review events.	No suggestion from independent directors
Jul. 29, 2020	The consolidated financial statement and independent auditor's report result for the second quarter of 2020 and Important review events.	No suggestion from independent directors
Oct. 27, 2020	The consolidated financial statement and independent auditor's report result for the third quarter of 2020 and Important review events..	No suggestion from independent directors

	Jul. 29, 2020 The consolidated financial statement and independent auditor's report result for the second quarter of 2020 and Important review events. No suggestion from independent directors Oct. 27, 2020 The consolidated financial statement and independent auditor's report result for the third quarter of 2020 and Important review events.. No suggestion from independent directors	Jul. 29, 2020 The consolidated financial statement and independent auditor's report result for the second quarter of 2020 and Important review events. No suggestion from independent directors Oct. 27, 2020 The consolidated financial statement and independent auditor's report result for the third quarter of 2020 and Important review events.. No suggestion from independent directors	Jul. 29, 2020 The consolidated financial statement and independent auditor's report result for the second quarter of 2020 and Important review events. No suggestion from independent directors Oct. 27, 2020 The consolidated financial statement and independent auditor's report result for the third quarter of 2020 and Important review events.. No suggestion from independent directors
(	2)Themajor items ofcommunicationbetween theindependentdirectorsandtheinternal audit manager
	Date	TheMajor Items of the Communication	Resolution Results
	Mar. 18, 2020	Implementation of the audit plan for the fourth quarter of 2019	No suggestion from independent directors
	Apr. 22, 2020	Implementation of the audit plan for the first quarter of 2020	No suggestion from independent directors
	Jul. 29, 2020	Implementation of the audit plan for the second quarter of 2020	No suggestion from independent directors
	Oct. 27, 2020	Implementation of the audit plan for the third quarter of 2020	No suggestion from independent directors

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Deviation from the Corporate Governance Best-Practice Principles for TWSE/TPEx Listed Companies and the reason for deviation.	Deviation from the Corporate Governance Best-Practice Principles for TWSE/TPEx Listed Companies and the reason for deviation.	-		-	-	-
Implementation Status	Summary Description	The Company established and disclosed the corporate governance best practice principles based on ‘Corporate Governance Best Practice Principles for TWSE/TPEx Listed Companies,’ with a dedicated ‘Corporate Governance’ section on the Company’s website for all investors to inquire the Company’s corporate governance regulations.		The Company has set up an investor relations team and appointed a professional stock transfer agency to handle matters such as shareholder suggestions or doubts.	The Company regularly collects the shareholdings of directors and officers.	The business transactions between the Company and affiliated companies are implemented and controlled in accordance with relevant internal control systems, and laws and regulations.
	No
	Yes	V		V	V	V
Evaluation Item		1. Does the Company establish and disclose the Corporate Governance Best-Practice Principles based on “Corporate Governance Best-Practice Principles for TWSE/TPEx Listed Companies”?	2. Shareholding Structure and Shareholders’ Rights	(1) Does the Company establish an internal operating procedure to deal with shareholders’ suggestions, doubts, disputes and litigations, and implement based on the procedure?	(2) Does the Company possess the list of its major shareholders as well as the ultimate owners of those shares?	(3) Does the Company establish and implement the risk management and firewall system between related companies?

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Deviation from the Corporate Governance Best-Practice Principles for TWSE/TPEx Listed Companies and the reason for deviation.	Deviation from the Corporate Governance Best-Practice Principles for TWSE/TPEx Listed Companies and the reason for deviation.	-		-
Implementation Status	Summary Description	The Company has established Regulation of Insider Trading, Educational activities with respect to Regulation of Insider Trading, and related laws and regulations shall be promoted at least once per year to current directors, officers and all employees. For new directors and officers, educational promotion shall be arranged within 3 months after taking office, and for new employees, educational promotion shall be arranged during educational training by personnel division. In 2020, the current directors, officers and all employees have been educated on December 17 and November 25. The content of the courses includes the confidentiality of material information, and that they may not take advantage of undisclosed information of which they have learned to engage in insider trading. They are also prohibited from divulging undisclosed information to any other party, in order to prevent other party from using such information to engage in insider trading. Course briefings and audio-visual files are placed in the company’s internal system to provide relevant education and training for new employees.		The diversity policy for the Company’s board members is as follows: The structure of the Company's board of directors shall be determined by choosing an appropriate number of board members in consideration of business scale, the shareholdings of major shareholders, and practical operational needs. The composition of the board of directors shall be determined by taking diversity into consideration. An appropriate policy on diversity based on the company's business operations, operating dynamics, and long-term development needs shall be formulated and include, without being limited to, the following two general standards: 1. Basic requirements and values: gender, age, nationality, and culture. 2. Professional knowledge and skills: a professional background (e.g., law, accounting, industry, finance,
	No
	Yes	V		V
Evaluation Item		(4) Does the Company establish internal rules against insiders trading with undisclosed information?	3. Composition and Responsibilities of the Board of Directors	(1) Does the Board develop and implement a diversity policy for the composition of its members?

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Deviation from the Corporate Governance Best-Practice Principles for TWSE/TPEx Listed Companies and the reason for deviation.	Deviation from the Corporate Governance Best-Practice Principles for TWSE/TPEx Listed Companies and the reason for deviation.		-	-
Implementation Status	Summary Description	marketing, or technology), professional skills, and industry experience. All members of the board shall have the knowledge, skills, and experience necessary to perform their duties. To achieve the ideal goal of corporate governance, the board of directors shall possess the following abilities: 1. Ability to make operational judgments. 2. Ability to perform accounting and financial analysis. 3. Ability to conduct management administration. 4. Ability to conduct crisis management. 5. Knowledge of the industry. 6. International market perspective. 7. Ability to lead. 8. Ability to make policy decisions. There are nine directors, three of them are independent directors, for the Company. Each director has his or her own professional background, including business management, leadership decision, industry knowledge, financial accounting, international marketing, etc. The specific management objectives of the Company's board member diversity policy are that each of the eight abilities that the board of directors shall possess is at least possessed by five directors, and at least four of the eight abilities are possessed by individual board members. The management objective of diversity policy is reached by the Company's current board of directors and individual board members. The abilities possessed by individual board members of the Company is as note1.	The Company has set up nominating committee. Please refer to the operation of nominating committee section disclosed in annual report or the Company's website.	The Company has established regulations governing the board performance evaluation and its evaluation method, regularly conducts performance evaluation every year, and submits the results of performance evaluation to the board of directors. The 2020 performance evaluation results of the board, the board members, audit committee, remuneration committee and nominating committee are all
	No
	Yes		V	V
Evaluation Item			(2) Does the Company voluntarily establish other functional committees in addition to the Remuneration Committee and the Audit Committee?	(3) Does the Company establish regulations governing the board performance evaluation and its evaluation method, regularly conduct performance evaluation every year, submit the results of performance evaluation to the board of directors, and base the determination of remuneration, the election or nomination of an individual director on the evaluation

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Deviation from the Corporate Governance Best-Practice Principles for TWSE/TPEx Listed Companies and the reason for deviation.	Deviation from the Corporate Governance Best-Practice Principles for TWSE/TPEx Listed Companies and the reason for deviation.		-	-
Implementation Status	Summary Description	“outstanding”. The results of the performance evaluation will be used as a reference for the remuneration of individual directors or functional committee members and the nomination of continuation in office. Please refer to Board of Directors performance evaluation section disclosed in annual report or the Company's website.	The Company regularly evaluates the performance and independence of the accountants every year and reports the results to the board of directors for approval. The Company's self-assessment of the independence of the accountants mainly includes: 1. The accountants have no significant financial interest in the company; 2. The accountants have no kinship relationship with the senior managers of the company; 3. The accountants shall not hold shares of the company; 4. The accountants shall not concurrently hold the position of the company; 5. The accountants provide independence statement The result of 2020 evaluation is that the independence of the accountants is in line with the Company's standards.	The Company, approved by the board of directors, has appointed a chief corporate governance officer to be in charge of corporate governance affairs. The main duties include handling of matters relating to board of directors meetings and shareholders meetings in compliance with law, preparation of minutes of the board of directors meetings and shareholders meetings, assistance in onboarding and continuing education of the directors, provision of information required for performance of duties by the directors, assistance in the directors' compliance of law. The performance of duties for 2020 was as following: 1. Assisted independent directors and directors in performing their duties, provided required information, and arranged directors' further education: (1) Provided onboard directors revision and development of the latest laws and regulations regarding company management field and corporate governance, and updated
	No
	Yes		V	V
Evaluation Item		results?	(4) Does the Company regularly evaluate the independence of accountants?	4. Does the Company have an adequate number of corporate governance personnel with appropriate qualifications and appoint a chief corporate governance officer to be in charge of corporate governance affairs. (including but not limited to providing data demanded by directors and supervisors, assisting directors and supervisors with legal compliance, handling matters relating to board meetings and shareholders meetings according to laws, and producing minutes of board meetings and shareholders meetings)?

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Deviation from the Corporate Governance Best-Practice Principles for TWSE/TPEx Listed Companies and the reason for deviation.	Deviation from the Corporate Governance Best-Practice Principles for TWSE/TPEx Listed Companies and the reason for deviation.
Implementation Status	Summary Description	them regularly. (2) Reviewed the confidential level of relevant information and provided the company information required by the directors, maintained smooth communication between the directors and officers. (3) Assisted in arranging relevant meetings when, in accordance with the corporate governance best-practice principles, independent directors needed to meet with the internal audit supervisor or accountants individually to understand the company's finance and business. (4) Assisted independent directors and directors to formulate annual training plans and arrange courses based on the company's industrial characteristics and directors' academic and professional experience background. 2. Assisted that the procedures and resolutions of board of directors meetings and shareholders meetings were in compliance with laws: (1) Confirmed whether the convening of the company's shareholders meetings and board of directors meetings were in compliance with relevant laws and corporate governance best-practice principles. (2) Assisted and reminded the directors of the laws and regulations to be followed when performing duties or making a formal resolution of the board of directors, and made suggestions when the board of directors will make a resolution in violation of the laws. (3) Checked the release of material information on important resolutions of the board of directors after the meetings, and ensured the legality and correctness of the content of the material information for the transaction information equality of investors. 3. Informed directors of the agenda for board of directors seven days before the meeting, convened a meeting and provided meeting materials, reminded directors to recuse if there is a conflict of interest in the agenda items in advance, and completed the minutes of the board of directors meetings within 20 days after the meetings. 4. Registered the date of the shareholders meeting in advance in accordance with the law, prepared meeting
	No
	Yes
Evaluation Item

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Deviation from the Corporate Governance Best-Practice Principles for TWSE/TPEx Listed Companies and the reason for deviation.	Deviation from the Corporate Governance Best-Practice Principles for TWSE/TPEx Listed Companies and the reason for deviation.		-	-		-	-	The Company follows Securities and Exchange Act to publish and report its annual financial report and its financial reports for the first, second and third quarters as well as its operating status for each month before the specified deadline.	-
Implementation Status	Summary Description	notices, handbook, meeting minutes within the statutory deadlines, and handled registration of change matters in the revised articles of incorporation or director election. Training situation: Professional training is arranged in accordance with the requirements of “Operation directions for compliance with the establishment of board of directors by TWSE listed companies and the board's exercise of powers”.( Note 2)	The Company has set up a stakeholder section on our website with a dedicated email for stakeholder communication and contact. Any question, suggestion, or voice can be channeled through this mailbox for open and effective communication.	The Company appoints Chinatrust Commercial Bank Transfer Agency to deal with shareholder affairs.		The financial, business and corporate governance information has been disclosed on the company's website. Investors can also access the company's material information through the market observation post system.	The Company has set up an English website, and has a spokesman for external communication and designated personnel to disclose information about the company and the institutional investor conferences at market observation post system in accordance with the statutory requirements.	The Company follows Securities and Exchange Act to publish and report its annual financial report and its financial reports for the first, second and third quarters as well as its operating status for each month before the specified deadline.	1. The Company provides information on relevant regulations that directors should pay attention to at any time. 2. The directors of the Company attended the board of
	No							V
	Yes		V	V		V	V		V
Evaluation Item			5. Does the Company establish a communication channel and build a designated section on its website for stakeholders (including but not limited to shareholders, employee and suppliers), as well as handle all the issues they care for in terms of corporate social responsibilities?	6. Does the Company appoint a professional shareholder transfer agency to deal with shareholder affairs?	7. Information Disclosure	(1) Does the Company have a corporate website to disclose the financial, business, and corporate governance information?	(2) Does the Company have other information disclosure channels (e.g. building an English website, appointing designated people to handle information collection and disclosure, implementing a spokesman system, webcasting investor conferences)?	(3) Does the Company publish and report its annual financial report within two months after the end of a fiscal year, and publish and report its financial reports for the first, second and third quarters as well as its operating status for each month before the specified deadline?	8. Is there any other important information to facilitate a better understanding of the Company’s corporate governance practices (including but not limited to employee rights, employee wellness, investor relations,

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Deviation from the Corporate Governance Best-Practice Principles for TWSE/TPEx Listed Companies and the reason for deviation.	Deviation from the Corporate Governance Best-Practice Principles for TWSE/TPEx Listed Companies and the reason for deviation.
Implementation Status	Summary Description	directors in good condition and all met the requirements of the laws. 3. If the proposal has a stake in the directors, the director is required to evade. 4. The Company has purchased the liability insurance for directors which was approved by the board of directors. 5. The Company protects the legitimate rights and interests of employees in accordance with the provisions of Labor Standards Act, and establishes a good relationship of mutual trust with employees through the welfare system enhancing the stability of employees' lives, and completed educational trainings.
	No
	Yes
Evaluation Item		supplier relations, rights of stakeholders, directors’ and supervisors’ training records, the implementation of risk management policies and risk evaluation measures, the implementation of customer relations policies, and purchasing liability insurance for directors and supervisors)?

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	Ability to lead Ability to	make policy	decisions			v v	v v	v v	v v	v v	v	v v	v v	v v
	Ability to Ability to Ability to Ability to Knowledge of International	make perform conduct conduct crisis the industry market	Gender operational accounting management management perspective	judgments and financial administration	analysis	Yeh, Nan-Horng Male v v v v v v	Chiu, Sun-Chien Male v v v v v v	Yeh, Po-Len Male v v v v v v	Huang, Yung- Fang Male v v v v v	Chern, Kuo-Jong Male v v v v v v	Ni, Shu-Ching Female v v v v	Ou Yang, Wen- Han Male v v v v v v	Chen, Fu-Yen Male v v v v	Wang, Chun- Hsiung Male v v v v	Note 2: Professional training of corporate governance officer	Sponsoring Organization Course Study Date Training Hours	Securities & Futures Institute Early warning and type analysis of enterprise financial crisis 2020/06/11 3	Securities & Futures Institute The principle and application of block chain 2020/06/11 3	Securities & Futures Institute Principles and applications of artificial intelligence 2020/07/16 3	Securities & Futures Institute 5G key technologies and application opportunities 2020/08/27 3	Securities & Futures Institute The compliance of insider equity trading regulations of listed companies advocacy meeting in 2020 2020/09/11 3	Securities & Futures Discuss how the company plans equity and the offensive and	Institute defensive strategies of the board of directors and shareholders 2020/09/29 3	meeting from the recent cases of competition for management rights

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		Other Kao, Chih-Chun v v v v v v v v v v v 0 Independent Director Wang, Chun-Hsiung v v v v v v v v v v v 0 Note 1: Title should be directors, independent directors, or others. Note 2: ‘V’ indicates the conditions listed met during the member’s terms and two years prior. (1) Not an employee of the company or any of its affiliates. (2) Not a director or supervisor of the company or any of its affiliates. (The same does not apply, however, in cases where the person is an independent director of the company, its parent company, or any subsidiary, as appointed in accordance with the Act or with the laws of the country of the parent or subsidiary.) (3) Not a natural-person shareholder who holds shares, together with those held by the person's spouse, minor children, or held by the person under others' names, in an aggregate amount of one percent or more of the total number of issued shares of the company or ranking in the top 10 in holdings. (4) Not a spouse, relative within the second degree of kinship, or lineal relative within the third degree of kinship, of any of the persons in the preceding three subparagraphs. (5) Not a director, supervisor, or employee of a corporate shareholder that directly holds five percent or more of the total number of issued shares of the company or of a corporate shareholder that ranks among the top five in shareholdings. (The same does not apply, however, in cases where the person is an independent director of the company, its parent company, or any subsidiary, as appointed in accordance with the Act or with the laws of the country of the parent or subsidiary.) (6) Not a director, supervisor or employee of other companies controlled by the same person with more than half of directors or voting shares of the company and another companies. (The same does not apply, however, in cases where the person is an independent director of the company, its parent company, or any subsidiary, as appointed in accordance with the Act or with the laws of the country of the parent or subsidiary.) (7) Not a director, supervisor or employee of another companies or institutions who are the same person or spouse as the company's chairman, president or equivalent. (The same does not apply, however, in cases where the person is an independent director of the company, its parent company, or any subsidiary, as appointed in accordance with the Act or with the laws of the country of the parent or subsidiary.) (8) Not a director, supervisor, officer, or shareholder holding five percent or more of the shares, of a specified company or institution that has a financial or business relationship with the company. (The same does not apply, however, in cases where the specified company or institution holds 20 percent or more and no more than 50
Remarks
Number of other public companies concurrently serving as an independent director	0	0 0
Independence Status (Note 2)	10 v	v v
	9 v	v v
	8 v	v v
	7 v	v v
	6 v	v v
	5 v	v v
	4 v	v v
	3 v	v v
	2 v	v v
	1 v	v v
Possesses five or more years of experience and the following professional qualifications	Have work experience in the area of commerce, law, finance, or accounting, or otherwise necessary for the business of the company. v	v v
	A judge, public prosecutor, attorney, certified public accountant, or other professional or technical specialist who has passed a national examination and been awarded a certificate in a profession necessary for the business of the company.
	An instructor or higher in a department of commerce, law, finance, accounting, or other academic department related to the business needs of the company in a public or private junior college, college, or university.
Criteria	Name Chen, Fu-Yen	Kao, Chih-Chun Wang, Chun-Hsiung
	Title Independent Director	Other Independent Director

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			Other disclosures: 1. If advice of the Remuneration Committee was not adopted or modified by the Board of Directors, the meeting date, period, content of proposals, meeting resolution, and the Company’s action to the advices of the Remuneration Committee should be disclosed: None 2. If resolutions of the Remuneration Committee were objected or reserved with records or written statements by any member, the meeting date, period, content of proposals, opinions of all members, and action to the member’s opinions should be disclosed: None 3. The discussion item and resolution results of the Remuneration Committee, and the Company’s action to the advices of the Remuneration Committee: Member Chen, Fu-Yen 2 0 100%
				The Company’s action to the advices of the Remuneration Committee	Processed as the resolution results of the remuneration committee.	Processed as the resolution results of the remuneration committee.
Remarks
Attendance Rate (%)	100%	100%	100%
				Resolution results	Approved by all members of the committee.	Approved by all members of the committee.
Attendance by Proxy	0	0	0
Attendance in Person	2	2	2
				Content of proposals	1. Revise the Remuneration Committee Charter 2. Approve the distribution of 2019 directors’ remuneration and officers’ compensation. 3. Approve 2020 officers’ salary adjustments.	1. Approve 2020 year-end bonus principle for officers.
Name	Wang, Chun-Hsiung	Kao, Chih-Chun	Chen, Fu-Yen
Title	Convener	Member	Member	Date	Mar. 18, 2020	Oct. 27, 2020

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The Company’s action to the resolutions of the nominating Committee	Processed as the resolution results of the nominating committee.	Processed as the resolution results of the nominating committee.
Resolution results	Approved by all members of the committee.	Approved by all members of the committee.
Content of proposals	1. 2019 board performance evaluation results.	1. Conduct 2020 performance evaluation of the board of directors and functional committees.
Date	Jan. 8, 2020	Oct. 27, 2020

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Deviation from the ‘Corporate	Social Responsibility Best Practice Principles for TWSE/GTSM-Listed Companies’ and Reasons	-	-
Implementation Status	Summary	In order to implement corporate governance obligations and maintain sustainable business goals, and to grasp the internal and external risks that the company may face in its operations, such as economic, social and environmental risks, each department should identify and clarify related risks that may affect business operations or sustainable development according to their duties, and monitor potential risks, implement preventive measures to strengthen risk management, improve systemic resilience, and achieve the goal of risk control, thereby safeguarding shareholder rights, enhancing competitiveness, and laying the foundation for sustainable operation and development of the company.	The Company has the Board of Directors as the highest level of guidance, and has set up a Corporate Social Responsibility Center under the President’s Office to promote corporate
	No
	Yes	�	�
	Assessment Item	1. On the basis of the materiality principle, does the Company give due consideration to the environment, society and corporate governance in its business operations, and establish related risk management policies or strategies?	2. Does the Company establish a full-time (or part- time) dedicated unit tor the purpose of managing corporate social responsibility initiatives, and does the Board of Directors appoint executive-level positions with responsibility for handling such

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	- - - -
governance, R&D innovation, environmental responsibility, human resources, social inclusion and other key corporate social responsibility issues, and report the results of execution to the Board of Directors at least once a year.	The Company has established proper environmental management systems and passed ISO 14001 certification. The Company has environmental and energy policies, including compliance with environmental laws and regulations, active resource management, strengthening pollution prevention, promotion of education and training, and continuous improvement plans. The Company also continuously invests in R&D to develop a variety of low-power products to reduce the impact on the environment. Through risk identification, the Company proposes effective response measures and supporting plans, and simulates actual annual actions to reduce the impact of climate change, obtain effective control in case of climate disasters, and recover rapidly. The Company endeavors to implement environmental protection policies, including

	� � � �
initiatives? Is the status of the handling reported back to the Board?	3. Environmental Issues (1) Does the Company establish proper environmental management systems based on the characteristics of its industries? (2) Does the Company endeavor to utilize all resources more efficiently and use renewable materials that have a low impact on the environment? (3) Does the Company monitor the impact of climate change on present and future operations and evaluate related opportunities? Does it establish measures to respond to climate change related impacts? (4) Does the Company take inventories of greenhouse gas emissions, water use, and waste volume during the

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	- - - - - -
measuring total electricity usage, total water usage, total waste generation, and greenhouse gas emission. It conserves energy and reduces carbon as well as other greenhouse gases by replacing old electronics and other equipment with more efficient models.	The Company abides by labor-related laws and regulations in each location, protects the legitimate rights and interests of employees, and follows the spirit and basic principles of human rights protection announced in the International Bill of Human Rights, the International Labor Organization - Declaration on Fundamental Principles and Rights at Work, the United Nations Global Compact and other international human rights conventions to formulate Realtek’s human rights policies and related practices so as to enhance human rights awareness and create an environment that respects human rights. The Company establishes and implements appropriate employee welfare mechanisms as well as appropriate wage and remuneration, so that employees can share the Company’s operational achievements. The Company continuously improves work safety issues and procedures in accordance with

	� � �
past two years? Does it adopt guidelines to conserve energy and reduce carbon and greenhouse gases emissions, water use, and waste generation?	4. Social Issues (1) Does the Company comply with relevant laws and regulations and the International Bill of Human Rights? Does it adopt relevant management policies and processes? (2) Does the Company establish and implement appropriate remuneration mechanisms (including wages, vacation, and other benefits) and reflect the corporate business performance or achievements in the employee remuneration policy? (3) Does the Company provide safe and healthful work environments for employees, and does it organize

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		-43-
domestic and foreign occupational safety laws and regulations, and actively and diligently creates a safe and healthy working environment that is both safe and reliable for all employees. Through the ‘Realtek Enterprise University’, the Company integrates organizational competitiveness and sustainable development goals, and effectively links the development of employees' functions, assisting employees to systematically conduct professional learning in both breadth and depth. The Company follows the laws and regulations of the government and international guidelines in relation to customer health, safety, and privacy, as well as sales and labeling of its products and services, in order to protect the rights and interests of consumers. The Company establishes policies that require suppliers to adhere to environmental, occupational health and safety, and labor rights laws and regulations.	Realtek publishes corporate social responsibility reports in accordance with Global Reporting Initiative standards to disclose business performance, corporate governance, stakeholder negotiation, social participation, environmental protection, friendly workplaces,

� � �	�
training on safety and health for employees on a regular basis? (4) Does the Company establish effective training programs to foster employees’ career skills? (5) Does the Company follow the laws and regulations of the government and international guidelines in relation to customer health, safety, and privacy, as well as sales and labeling of its products and services? Does the Company establish policies to protect consumer rights and interests and provide a clear and effective procedure for accepting consumer complaints? (6) Does the Company establish policies to assess whether suppliers adhere to environmental, occupational health and safety, and labor rights laws and regulations, then follow up on implementation status?	5. Does the Company adopt internationally recognized standards or guidelines when producing corporate social responsibility reports and other related reports to disclose the status of implementing non-finance related policies? Does the Company obtain a third- party assurance or verification for the reports to

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	6. If the company has established its corporate social responsibility code of practice according to ‘Corporate Social Responsibility Best Practice Principles for TWSE-GTSM-Listed Companies,’ please describe the operational status and differences: Realtek establishes its corporate social responsibility code of practice in accordance with the ‘Corporate Social Responsibility Best Practice Principles for TWSE/GTSM-Listed Companies’. Its operations and corporate social responsibility spirit and principles adhere to this statute.	7. Other important information to facilitate better understanding of the company’s implementation of corporate social responsibility: The Company actively participates in social welfare activities and actions, through sponsorships, donations to educational funds and training, the hiring of people with disabilities, and other deeds.
and employee care. The 2019 Realtek Corporate Social Report has passed the external verification by SGS Taiwan Ltd., confirming that it complies with the core options of GRI Standards and AA1000 AS (2008) Moderate Assurance (Type I).


enhance the reliability of the information in the reports?

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Deviation from the Ethical Corporate Management Best- Practice Principles for TWSE/TPEx Listed Companies and the reason for deviation.	Deviation from the Ethical Corporate Management Best- Practice Principles for TWSE/TPEx Listed Companies and the reason for deviation.	- - -
Implementation Status	Summary Description	Per approval by the Board of Directors, the Company has established integrity management policies, integrity management codes, integrity management operating procedures and behavior guidelines and other integrity management related regulations, and announced them in the corporate governance section of the Company website for directors, managers and all employees to follow. The Company’s integrity management rules, integrity management operating procedures and behavior guidelines, ethical codes of conduct, employee codes of conduct, regulations for reporting unlawful and unethical behaviors, and other integrity management related regulations, have covered a risk assessment mechanism and preventive measures against dishonesty behavior. The Company clearly specifies operational procedures, guidelines, and well-defined disciplinary and appeal system for handling violations in the prevention programs against dishonest behavior. The compliance situation is checked by the internal audit unit. The company also reviews the measures when necessary.
	No
	Yes	� � �
Evaluation Item		1. Establishment of ethical corporate management policies and programs (1) Does the company establish its ethical corporate management policies approved by the board of directors, and clearly specify in their rules and external documents the ethical corporate management policies and practices, and the commitment by the board of directors and senior management on rigorous and thorough implementation of such policies? (2) Does the company establish a risk assessment mechanism against unethical conduct, analyze and assess on a regular basis business activities within it’s business scope that are at a higher risk of being involved in unethical conduct, and establish prevention programs which at least include preventive measures against the conducts listed in article 7, paragraph 2 of Ethical Corporate Management Best Practice Principles for TWSE/GTSM Listed Companies? (3) Does the company clearly specify operational procedures, guidelines, and well-defined disciplinary and appeal systems for handling violations in the prevention programs against unethical conducts, implement such programs rigorously, and regularly review and correct the programs?

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Deviation from the Ethical Corporate Management Best- Practice Principles for TWSE/TPEx Listed Companies and the reason for deviation.	Deviation from the Ethical Corporate Management Best- Practice Principles for TWSE/TPEx Listed Companies and the reason for deviation.	- - -	- -
Implementation Status	Summary Description	The Company regularly conducts quality and credit evaluations for suppliers and customers. For those who have not passed the rating, they will be removed from the cooperation list. The Company's Administration Department is responsible for promoting the integrity of the business, the relevant units are responsible for the implementation, and the Internal Audit unit is independently responsible for auditing to ensure the implementation of the Company's integrity management philosophy, and the results is reported to the Board of Directors at least once a year. (The execution results have been reported to the Board of Directors on October 30, 2020) The Company’s code of integrity management, operating procedures and behavior guidelines for integrity management, codes of ethical conduct, and codes of employee conduct have covered policies to prevent conflicts of interest and communication channels for directors, managers and all employees to follow.	The Company has established accounting systems, internal control systems, and internal auditing systems in accordance with various regulations. The auditors, based on the result of assessment of the risk of involvement in unethical conduct, devise relevant audit plans to examine the compliance with the prevention programs against unethical conducts, and report to the board of directors on a regular basis. The Company has established a code of integrity
	No
	Yes	� � �	� �
Evaluation Item		2. Implement ethical corporate management (1) Does the company evaluate business partners’ ethical records and include ethics-related clauses in business contracts? (2) Does the company establish an exclusively dedicated unit under the board of directors, which report to the board of directors on a regular basis (at least once a year) for establishing and supervising the implementation of the ethical corporate management policies and prevention programs? (3) Does the company establish policies to prevent conflicts of interest and provide appropriate communication channels, and implement the policies?	(4) Does the company establish effective systems for both accounting and internal control systems to facilitate ethical corporate management, and does the internal audit unit, based on the results of assessment of the risk of involvement in unethical conduct, devise relevant audit plans and examine accordingly the compliance with the prevention programs, or engage a certified public accountant to carry out the audit? (5) Does the company regularly hold internal and external

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Deviation from the Ethical Corporate Management Best- Practice Principles for TWSE/TPEx Listed Companies and the reason for deviation.	Deviation from the Ethical Corporate Management Best- Practice Principles for TWSE/TPEx Listed Companies and the reason for deviation.		- - -
Implementation Status	Summary Description	management, integrity management operating procedures and behavior guidelines, a code of ethics and conduct, a code of conduct for all employees, and internal (outside) personnel reporting unlawful and unethical behaviors and other relevant measures, which are published on the Realtek corporate website to provide information for directors, employees, and stakeholders. In addition, the Company continues to carry out relevant education and training on integrity management and ethical behavior for employees and supervisors. The contents include the Company’s integrity management policies, employee code of ethical conduct, and channels for reporting unethical behaviors, etc., so as to promote the integrity management philosophy and ensure it is implemented in daily work. In 2020, the total hours related to integrity management education were 17.5 hours, and a total of 555 people participated in the courses.	The Company has established measures to report illegal or unethical behavior, created the way for reporting and appointed appropriate designated unit for reported cases. The Company’s code of integrity management, operating procedures and behavior guidelines for integrity management, and measures to report illegal or unethical behavior have covered standard operating procedures, follow-up measures to be taken after the investigation is completed, and related confidentiality measures for reported cases. The Company will take the necessary protective
	No
	Yes		� � �
Evaluation Item		educational trainings of ethical corporate management?	3. Implementation status of the whistle-blowing system (1) Does the company establish a concrete whistle- blowing system and incentive measures, create a convenient way for reporting, and appoint appropriate designated personnel for reported cases? (2) Does the company establish standard operating procedures, follow-up measures to be taken after the investigation is completed, and related confidentiality measures for reported cases? (3) Does the company adopt measures for protecting

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Evaluation Item Implementation Status Deviation from the Ethical Corporate Management Best- Practice Principles for TWSE/TPEx Listed Companies and the reason for deviation. Yes No Summary Description whistle-blowers from inappropriate disciplinary actions due to their whistle-blowing? measures for the whistle-blowers, and promises that the Company's employees will not be subject to inappropriate disciplinary actions due to their whistle- blowing. 4. Strengthening information disclosure Does the company disclose its ethical corporate management principles and the results of performance on the company’s website and MOPS? � The Company’s integrity management code, integrity management operating procedures and behavior guidelines, and other relevant regulations, as well as the implementation and operation of integrity management are disclosed on the Company’s website and MOPS, and are operated scrupulously. - 5. If the Company has established Principles of Ethical Corporate Management based on Ethical Corporate Management Best Practice Principles for TWSE/GTSM Listed Companies, please describe any deviation between the implementation and the principles. The Company has established integrity management policy, integrity management code, integrity management operation procedures and behavior guidelines, codes of ethical conduct, codes of employee conduct, and measures to report illegal or unethical behavior. No deviation is between the operation and the regulations.. 6. Other important information to facilitate a better understanding of the company’s ethical corporate management implementation: (e.g., review and amend the company’s principles) The Company complies with related laws and regulations including Company Act, Securities and Exchange Act, Business Entity Accounting Act, etc. to implement ethical corporate management 9. If the company has established corporate governance best-practice principles or related regulations, disclose the method of finding these: The Company’s Corporate Governance Best-Practice Principles and relevant regulations can be found on the corporate governance section of the Company’s website or Market Observations Post System. 10. Other important information to facilitate a better understanding of the state of the company's implementation of corporate governance may also be disclosed: The company in time discloses material information in accordance with regulations, and regularly holds institutional investor conference to present financial and business related information.	Evaluation Item Implementation Status Deviation from the Ethical Corporate Management Best- Practice Principles for TWSE/TPEx Listed Companies and the reason for deviation. Yes No Summary Description whistle-blowers from inappropriate disciplinary actions due to their whistle-blowing? measures for the whistle-blowers, and promises that the Company's employees will not be subject to inappropriate disciplinary actions due to their whistle- blowing. 4. Strengthening information disclosure Does the company disclose its ethical corporate management principles and the results of performance on the company’s website and MOPS? � The Company’s integrity management code, integrity management operating procedures and behavior guidelines, and other relevant regulations, as well as the implementation and operation of integrity management are disclosed on the Company’s website and MOPS, and are operated scrupulously. - 5. If the Company has established Principles of Ethical Corporate Management based on Ethical Corporate Management Best Practice Principles for TWSE/GTSM Listed Companies, please describe any deviation between the implementation and the principles. The Company has established integrity management policy, integrity management code, integrity management operation procedures and behavior guidelines, codes of ethical conduct, codes of employee conduct, and measures to report illegal or unethical behavior. No deviation is between the operation and the regulations.. 6. Other important information to facilitate a better understanding of the company’s ethical corporate management implementation: (e.g., review and amend the company’s principles) The Company complies with related laws and regulations including Company Act, Securities and Exchange Act, Business Entity Accounting Act, etc. to implement ethical corporate management 9. If the company has established corporate governance best-practice principles or related regulations, disclose the method of finding these: The Company’s Corporate Governance Best-Practice Principles and relevant regulations can be found on the corporate governance section of the Company’s website or Market Observations Post System. 10. Other important information to facilitate a better understanding of the state of the company's implementation of corporate governance may also be disclosed: The company in time discloses material information in accordance with regulations, and regularly holds institutional investor conference to present financial and business related information.	Evaluation Item Implementation Status Deviation from the Ethical Corporate Management Best- Practice Principles for TWSE/TPEx Listed Companies and the reason for deviation. Yes No Summary Description whistle-blowers from inappropriate disciplinary actions due to their whistle-blowing? measures for the whistle-blowers, and promises that the Company's employees will not be subject to inappropriate disciplinary actions due to their whistle- blowing. 4. Strengthening information disclosure Does the company disclose its ethical corporate management principles and the results of performance on the company’s website and MOPS? � The Company’s integrity management code, integrity management operating procedures and behavior guidelines, and other relevant regulations, as well as the implementation and operation of integrity management are disclosed on the Company’s website and MOPS, and are operated scrupulously. - 5. If the Company has established Principles of Ethical Corporate Management based on Ethical Corporate Management Best Practice Principles for TWSE/GTSM Listed Companies, please describe any deviation between the implementation and the principles. The Company has established integrity management policy, integrity management code, integrity management operation procedures and behavior guidelines, codes of ethical conduct, codes of employee conduct, and measures to report illegal or unethical behavior. No deviation is between the operation and the regulations.. 6. Other important information to facilitate a better understanding of the company’s ethical corporate management implementation: (e.g., review and amend the company’s principles) The Company complies with related laws and regulations including Company Act, Securities and Exchange Act, Business Entity Accounting Act, etc. to implement ethical corporate management 9. If the company has established corporate governance best-practice principles or related regulations, disclose the method of finding these: The Company’s Corporate Governance Best-Practice Principles and relevant regulations can be found on the corporate governance section of the Company’s website or Market Observations Post System. 10. Other important information to facilitate a better understanding of the state of the company's implementation of corporate governance may also be disclosed: The company in time discloses material information in accordance with regulations, and regularly holds institutional investor conference to present financial and business related information.	Evaluation Item Implementation Status Deviation from the Ethical Corporate Management Best- Practice Principles for TWSE/TPEx Listed Companies and the reason for deviation. Yes No Summary Description whistle-blowers from inappropriate disciplinary actions due to their whistle-blowing? measures for the whistle-blowers, and promises that the Company's employees will not be subject to inappropriate disciplinary actions due to their whistle- blowing. 4. Strengthening information disclosure Does the company disclose its ethical corporate management principles and the results of performance on the company’s website and MOPS? � The Company’s integrity management code, integrity management operating procedures and behavior guidelines, and other relevant regulations, as well as the implementation and operation of integrity management are disclosed on the Company’s website and MOPS, and are operated scrupulously. - 5. If the Company has established Principles of Ethical Corporate Management based on Ethical Corporate Management Best Practice Principles for TWSE/GTSM Listed Companies, please describe any deviation between the implementation and the principles. The Company has established integrity management policy, integrity management code, integrity management operation procedures and behavior guidelines, codes of ethical conduct, codes of employee conduct, and measures to report illegal or unethical behavior. No deviation is between the operation and the regulations.. 6. Other important information to facilitate a better understanding of the company’s ethical corporate management implementation: (e.g., review and amend the company’s principles) The Company complies with related laws and regulations including Company Act, Securities and Exchange Act, Business Entity Accounting Act, etc. to implement ethical corporate management 9. If the company has established corporate governance best-practice principles or related regulations, disclose the method of finding these: The Company’s Corporate Governance Best-Practice Principles and relevant regulations can be found on the corporate governance section of the Company’s website or Market Observations Post System. 10. Other important information to facilitate a better understanding of the state of the company's implementation of corporate governance may also be disclosed: The company in time discloses material information in accordance with regulations, and regularly holds institutional investor conference to present financial and business related information.	Evaluation Item Implementation Status Deviation from the Ethical Corporate Management Best- Practice Principles for TWSE/TPEx Listed Companies and the reason for deviation. Yes No Summary Description whistle-blowers from inappropriate disciplinary actions due to their whistle-blowing? measures for the whistle-blowers, and promises that the Company's employees will not be subject to inappropriate disciplinary actions due to their whistle- blowing. 4. Strengthening information disclosure Does the company disclose its ethical corporate management principles and the results of performance on the company’s website and MOPS? � The Company’s integrity management code, integrity management operating procedures and behavior guidelines, and other relevant regulations, as well as the implementation and operation of integrity management are disclosed on the Company’s website and MOPS, and are operated scrupulously. - 5. If the Company has established Principles of Ethical Corporate Management based on Ethical Corporate Management Best Practice Principles for TWSE/GTSM Listed Companies, please describe any deviation between the implementation and the principles. The Company has established integrity management policy, integrity management code, integrity management operation procedures and behavior guidelines, codes of ethical conduct, codes of employee conduct, and measures to report illegal or unethical behavior. No deviation is between the operation and the regulations.. 6. Other important information to facilitate a better understanding of the company’s ethical corporate management implementation: (e.g., review and amend the company’s principles) The Company complies with related laws and regulations including Company Act, Securities and Exchange Act, Business Entity Accounting Act, etc. to implement ethical corporate management 9. If the company has established corporate governance best-practice principles or related regulations, disclose the method of finding these: The Company’s Corporate Governance Best-Practice Principles and relevant regulations can be found on the corporate governance section of the Company’s website or Market Observations Post System. 10. Other important information to facilitate a better understanding of the state of the company's implementation of corporate governance may also be disclosed: The company in time discloses material information in accordance with regulations, and regularly holds institutional investor conference to present financial and business related information.	Evaluation Item Implementation Status Deviation from the Ethical Corporate Management Best- Practice Principles for TWSE/TPEx Listed Companies and the reason for deviation. Yes No Summary Description whistle-blowers from inappropriate disciplinary actions due to their whistle-blowing? measures for the whistle-blowers, and promises that the Company's employees will not be subject to inappropriate disciplinary actions due to their whistle- blowing. 4. Strengthening information disclosure Does the company disclose its ethical corporate management principles and the results of performance on the company’s website and MOPS? � The Company’s integrity management code, integrity management operating procedures and behavior guidelines, and other relevant regulations, as well as the implementation and operation of integrity management are disclosed on the Company’s website and MOPS, and are operated scrupulously. - 5. If the Company has established Principles of Ethical Corporate Management based on Ethical Corporate Management Best Practice Principles for TWSE/GTSM Listed Companies, please describe any deviation between the implementation and the principles. The Company has established integrity management policy, integrity management code, integrity management operation procedures and behavior guidelines, codes of ethical conduct, codes of employee conduct, and measures to report illegal or unethical behavior. No deviation is between the operation and the regulations.. 6. Other important information to facilitate a better understanding of the company’s ethical corporate management implementation: (e.g., review and amend the company’s principles) The Company complies with related laws and regulations including Company Act, Securities and Exchange Act, Business Entity Accounting Act, etc. to implement ethical corporate management 9. If the company has established corporate governance best-practice principles or related regulations, disclose the method of finding these: The Company’s Corporate Governance Best-Practice Principles and relevant regulations can be found on the corporate governance section of the Company’s website or Market Observations Post System. 10. Other important information to facilitate a better understanding of the state of the company's implementation of corporate governance may also be disclosed: The company in time discloses material information in accordance with regulations, and regularly holds institutional investor conference to present financial and business related information.
Deviation from the Ethical Corporate Management Best- Practice Principles for TWSE/TPEx Listed Companies and the reason for deviation.			-	5. If the Company has established Principles of Ethical Corporate Management based on Ethical Corporate Management Best Practice Principles for TWSE/GTSM Listed Companies, please describe any deviation between the implementation and the principles. The Company has established integrity management policy, integrity management code, integrity management operation procedures and behavior guidelines, codes of ethical conduct, codes of employee conduct, and measures to report illegal or unethical behavior. No deviation is between the operation and the regulations..	6. Other important information to facilitate a better understanding of the company’s ethical corporate management implementation: (e.g., review and amend the company’s principles) The Company complies with related laws and regulations including Company Act, Securities and Exchange Act, Business Entity Accounting Act, etc. to implement ethical corporate management
Implementation Status	Summary Description	measures for the whistle-blowers, and promises that the Company's employees will not be subject to inappropriate disciplinary actions due to their whistle- blowing.	The Company’s integrity management code, integrity management operating procedures and behavior guidelines, and other relevant regulations, as well as the implementation and operation of integrity management are disclosed on the Company’s website and MOPS, and are operated scrupulously.
	No
	Yes		�
Evaluation Item		whistle-blowers from inappropriate disciplinary actions due to their whistle-blowing?	4. Strengthening information disclosure Does the company disclose its ethical corporate management principles and the results of performance on the company’s website and MOPS?

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11. Internal Control Status

11.1. Statement of internal control

Realtek Semiconductor Corporation Statement of Internal Control System

Date: March 19, 2021

Based on the findings of a self-assessment, Realtek Semiconductor Corporation (Realtek) states the following with regard to its internal control system during the year 2020:

Realtek’s board of directors and management are responsible for establishing, implementing, and maintaining an adequate internal control system. Our internal control is a process designed to provide reasonable assurance over the effectiveness and efficiency of our operations (including profitability, performance, and safeguarding of assets), reliability, timeliness, transparency of our reporting, and compliance with applicable rulings, laws and regulations.
An internal control system has inherent limitations. No matter how perfectly designed, an effective internal control system can provide only reasonable assurance of accomplishing its stated objectives. Moreover, the effectiveness of an internal control system may be subject to changes due to extenuating circumstances beyond our control. Nevertheless, our internal control system contains self-monitoring mechanisms, and Realtek takes immediate remedial actions in response to any identified deficiencies.
Realtek evaluates the design and operating effectiveness of its internal control system based on the criteria provided in the Regulations Governing the Establishment of Internal Control Systems by Public Companies (herein below, the ‘Regulations’). The Criteria adopted by the Regulations identify five key components of managerial internal control: (1) control environment, (2) risk assessment, (3) control activities, (4) information and communication, and (5) monitoring activities.
Realtek has evaluated the design and operating effectiveness of its internal control system according to the aforesaid Regulations. 5. Based on the findings of such evaluation, Realtek believes that, as of December 31, 2020, it has maintained, in all material respects, an effective internal control system (that includes the supervision and management of our subsidiaries), to provide reasonable assurance over our operational effectiveness and efficiency, reliability, timeliness, transparency of reporting, and compliance with applicable rulings, laws and regulations.
This Statement is an integral part of Realtek’s annual report for the year 2020 and prospectus, and will be made public. Any falsehood, concealment, or other illegality in the content made public will entail legal liability under Articles 20, 32, 171, and 174 of the Securities and Exchange Law.
This statement was passed by the board of directors in their meeting held on March 19, 2021, with none of the nine attending directors expressing dissenting opinions, and the remainder all affirming the content of this statement.

Realtek Semiconductor Corporation

Chairman: Yeh, Nan-Horng President: Chiu, Sun-Chien

11.2. The Company was not required to commission an independent auditor to audit its internal control system.
If there has been any legal penalty against the company or its internal personnel, or any disciplinary penalty by the company against its internal personnel for violation of the internal control system, during the most recent fiscal year or during the current fiscal year up to the publication date of the annual report, where the result of such penalty could have a material effect on shareholder equity or securities prices, the annual report shall disclose the penalty, the main shortcomings, and condition of improvement.: None
Major resolutions of the shareholders’ meeting and the board meetings from last year to the

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date of the annual report printed:

13.1. Major resolutions of 2020 shareholders’ meeting:

Date	Proposals	Resolution Results And Implementation
June 10, 2020	Ratification Items 1. 2019 business report and financial statements 2. Distribution of 2019 retained earnings Discussion Item 1. Cash distribution from capital surplus 2. To revise the Articles of Incorporation	Approved Approved Dividend record date: 2020/09/14 Payment date: 2020/10/07 Amount: NT$4,596,163,875 Approved Distribution record date: 2020/09/14 Payment date: 2020/10/07 Amount: NT$1,021,369,750 Approved Obtained the approval letter for registration change: 2020/07/02

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13.2. Major Resolutions of Board Meetings

Date	Summary of Major Resolutions	Resolution Results
Feb. 21, 2020	1. To approve property purchase. 2. The Company's Auditor of financial statements and Audit Fee for 2020.	Approved by all attending directors
Mar. 20, 2020	1. 2019 financial statements and consolidated financial statements. 2. Matters of convening 2020 shareholders’ meeting. 3. Adoption of the shareholders' proposals for 2020 shareholders’ meeting. 4. Employees’ compensation and Directors’ remuneration of 2019. 5. The Company intends to loan a fund to a subsidiary. 6. To revise the Articles of Incorporation. 7. To revise provisions of the Company's internal regulations. 8. To revise the written system of internal control of the Company. 9. 2019 Statement of Internal Control System. 10. The Company created a ‘Corporate Technology Center’ department and organizationchanges of R&Dcenter.	Approved by all attending directors
Apr. 24, 2020	1. Distribution of 2019 Retained Earnings. 2. 2019 cash dividends distribution from retained earnings. 3. Cash distribution from capital surplus. 4. 2019 business report and 2020 business plan. 5. The Company plans to build factory & office buildings. 6.The Companyintendstoloan a fundtoasubsidiary.	Approved by all attending directors
Jul. 31, 2020	1. Establish Regulation of Insider Trading. 2. Personnel related matters.	Approved by all attending directors
Sep. 30, 2020	1. To increase budget for office building and parking construction. 2. The Company to increase investment in a subsidiary.	Approved by all attending directors
Oct. 30, 2020	1. The Company obtains its holdings of equity from its subsidiary. 2. The Company's subsidiaries reduce capital to offset accumulated deficit. 3. The Company extended the period of endorsement guarantee for bank loans of a subsidiary. 4. The Company intends to loan a fund to a subsidiary. 5. The Company intends to loan a fund to a subsidiary in Mainland China. 6. The Company's investee company intends to loan a fund to a Mainland China subsidiary. 7. The Company intends to endorse the guarantee for a Mainland China subsidiary. 8. Formulate policies, codes and systems related to integrity management andrisk management	Approved by all attending directors
Dec. 25, 2020	1. The Company intends to loan a fund to a subsidiary. 2. Fund loans between subsidiaries of the Company. 3. The Company's investee company intends to loan a fund to a Mainland China subsidiary. 4. The Company increases budget for factory & office buildings 5. The Company's investee company intends to subscribe capital increase of a Mainland Chinasubsidiary.	Approved by all attending directors

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Date	Summary of Major Resolutions	Resolution Results
	6. The Status that the Company regularly evaluates the independence of auditor. 7.2021 annual auditplans.
Mar. 19, 2021	1. 2020 financial statements and consolidated financial statements. 2. Matters of convening 2021 shareholders’ meeting. 3. Election of Directors (including Independent Directors). 4. Adoption of the shareholders' proposals for 2021 shareholders’ meeting and adoption of the nomination of candidates for directors, including independent directors. 5. Employees’ compensation and Directors’ remuneration of 2020. 6. The Company intends to endorse the guarantee for a Mainland China subsidiary. 7. The Company's investee company increases investment in a subsidiary. 8. The Company's auditor of financial statements and audit Fee for 2021. 9.2020 Statementof InternalControlSystem.	Approved by all attending directors
Apr. 23, 2021	1. To amend matters of convening 2021 shareholders’ meeting. 2. To approve the list of nominated candidates for directors and independent directors. 3. Distribution of 2020 Retained Earnings. 4. 2020 cash dividends distribution from retained earnings. 5. Cash distribution from capital surplus. 6. To request the shareholders' meeting to release the Directors and their Representatives from non-competition restrictions. 7. 2020 business report and 2021 business plan. 8. Fund loans between subsidiaries of the Company. 9.The Companyintendstoloan fundsto subsidiaries.	Approved by all attending directors

Directors’ objections against the important resolution of board meetings from last year to the date of the annual report printed: None
Information of resignation or dismissal of persons related to the financial reports(including chairman, president, accounting officers, finance officers, internal audit manager, corporate governance officer, and R&D officers) from last year to the date of the annual report printed: None

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IV. Information Regarding Audit Fees

Accounting Firm	Name of CPA	Name of CPA	Period Covered by CPA’s Audit	Remarks
PricewaterhouseCoopers Taiwan	Lin, Yu-Kuan	Tsang, Kwok-Wah	2020/01/01~2020/02/20	-
PricewaterhouseCoopers Taiwan	Lin, Yu-Kuan	Cheng, Ya-Huei	2020/02/21~2020/12/31	-
Items Range 1 Less than $2,000,000 2 $2,000,000 (incl.) - $4,000,000 3 $4,000,000 (incl.) - $6,000,000 4 $6,000,000 (incl.) - $8,000,000 5 $8,000,000 (incl.) - $10,000,000 6 $100,000,000 and above		Audit Fee �	Non-audit Fee 0

Non-audit fee paid to the auditors, the audit firm and its affiliates accounted for not less than one-fourth of total audit fee: For 2020, the non-audit fee paid to the auditors, the audit firm and its affiliates was 0.
Replaced the audit firm and the audit fee paid to the new audit firm was less than the payment of previous year: Not applicable.
Audit fee reduced not less than 10% compared to previous year: Not applicable.

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V. Replacement of Independent Auditors

1. Regarding the former CPA

Replacement Date	February21, 2020	February21, 2020	February21, 2020	February21, 2020	February21, 2020
Replacement reasons and explanations	The internal regular rotation of PricewaterhouseCoopers Taiwan
Describe whether the Company terminated or the CPA rejected the appointment	Parties Status			CPA	The Company
	Appointment terminated automatically			Not applicable	Not applicable
	Appointment rejected (continued)			Not applicable	Not applicable
The Opinions other than Unmodified Opinion Issued in the Last Two Years and the Reasons for the Said Opinions(Note)		None
Is there any disagreement in opinion with the Company	YES		Accounting principles orpractices
			Disclosure of Financial Statements
			Audit scope or steps
			Others
	No	�
	Explanation
Supplementary Disclosure	None

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2. Regarding the Successor CPA

the Successor CPA
Name of accounting firm	PricewaterhouseCoopers Taiwan
Name of CPA	Lin, Yu-Kuan; Cheng, Ya-Huei
Date of appointment	February 21, 2020
Prior to the Formal Engagement, Any Inquiry or Consultation on the Accounting Treatment or Accounting Principles for Specific Transactions, and the Type of Audit Opinion that the CPA might issue on the Financial Report.	None
Written Opinions from the Successor CPA are different from the Former CPA’s opinions.	None

VI. If the Company’s Chairman, President, Managers in charge of finance or accounting operations held positions within the auditor’s firm or its affiliates during last year, the name, title, and period of holding positions should be disclosed: None

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VII. Share transfer or share pledge of Directors, Officers and major shareholders holding more than 10% shares from last year to the date of the annual report printed.

1. Changes in shareholding of Directors, Officers and major shareholders

		2020	2020	As of April 10,2021	As of April 10,2021
Title Chairman Vice Chairman	Name Cotek Pharmaceutical Industry Co., Ltd.Representative: Yeh, Nan-Horng Forehead International Co., Ltd. Representative: Chiu,Sun-Chien	Shares increased (decreased) - - - -	Pledge shares increased (decreased) (4,010,000) - - -	Shares increased (decreased) � - - -	Pledge shares increased (decreased) 4,800,000 - - - - -
Director Director Director	Forehead International Co., Ltd. Representative: Chern, Kuo-Jong Sonnen Limited Representative: Yeh, Po-Len Sonnen Limited Representative: Huang, Yung-Fang
Director	Ni, Shu-Ching	-	-	-
Independent Director Independent Director	Chen, Fu-Yen	-	-	-
	Wang, Chun-Hsiung	-	-	-	-
Independent Director	Ou Yang, Wen-Han	-	-	-	- - - - - - - -
President Chief Operating Officer	Chiu, Sun-Chien Huang, Yung-Fang	(405,000) -	- -	(91,000) -
Chief Financial Officer	Chern, Kuo-Jong	-	-	-
Vice President Vice President Vice President Vice President Vice President Vice President Controller	Huang, Yee-Wei Lin, Ying-Hsi Lin, Lung-Wei�Note) Chang, King-Hsiung	- - - -	- - - -	- - - -
	Tsai, Jon-Jinn	-	-	-	-
	Yen, Kuang-Yu Chang, Jr-Neng	- -	- -	- -	- -

Note: Lin, Lung-Wei resigned on 2020.05.31.

Information on stock transfer to related parties: None.
Information on pledge of shares to related parties: None.

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VIII. The relationship between any of the Company’s top ten shareholders:

VIII. The relationship between	any of the Compan	any of the Compan	y’s top ten sh	y’s top ten sh	areholders:	areholders:
							April 10,2021
Name	Shareholding		Spouse & Minor Shareholding		Shareholding by Nominee Arrangement		Top Ten Shareholders who are Related Parties, Spouse, or Second-Degree Relatives
	Shares	%	Shares	%	Shares	%	Name	Relationship
Cotek Pharmaceutical Industry Co., Ltd. Representative: Yeh, Chia-Wen	22,146,604	4.34%	-	-	-	-	-	-
	-	-	-	-	-	-	-	-
Cathay Life Insurance Company, Ltd. Representative: Huang, Tiao-Kuei	13,368,000	2.62%	-	-	-	-	-	-
	-	-	-	-	-	-	-	-
Leicester Worldwide Corporation	12,616,184	2.47%	-	-	-	-	-	-
JPMorgan Chase Bank N.A. Taipei Branch in custody for JPMorgan Funds	9,340,000	1.83%	-	-	-	-	-	-
Enable Educational Technology Co., Ltd. Representative: Yeh, Wei-Ting	8,181,000	1.60%	-	-	-	-	-	-
	-	-	-	-	-	-	-	-
Investment account of Norges Bank managed byCitibank Taiwan	7,552,121	1.48%	-	-	-	-	-	-
China Life Insurance Co., Ltd. Representative: Stephanie Hwang	7,537,000	1.48%	-	-	-	-	-	-
	-	-	-	-	-	-	-	-
Nan Shan Life Insurance Co., Ltd. Representative: TangChen	7,324,000	1.43%	-	-	-	-	-	-
	-	-	-	-	-	-	-	-
New Labor Pension Fund	7,122,227	1.39%
Vanguard Emerging Markets Stock Index Fund, A Series Of Vanguard International EquityIndex Funds	6,822,959	1.34%	-	-	-	-	-	-

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IX. The consolidated shareholdings and percentage of investments held by the Company, Directors, Officers, and the companies controlled directly or indirectly by the Company.

			December 31,2020 /Unit: shares:%	December 31,2020 /Unit: shares:%	December 31,2020 /Unit: shares:%	December 31,2020 /Unit: shares:%
Investments	Investments of the Company		Investments directly or indirectly held by Directors, Officers, and the companies controlled directly or indirectlybytheCompany		Consolidated	Investments
	Shares	%	Shares	%	Shares	%
Leading Enterprises Limited	34,630	100%	�	�	34,630	100%
Amber Universal Inc.	41,432	100%	�	�	41,432	100%
Realtek Singapore Private Limited	89,856,425	100%	�	�	89,856,425	100%
Realtek Investment Singapore Private Limited	200,000,000	100%	�	�	200,000,000	100%
Talent Eagle Enterprise Inc.	114,100,000	100%	�	�	114,100,000	100%
Bluocean Inc.	110,050,000	100%	�	�	110,050,000	100%
Realsun Investments Co., Ltd	28,000,000	100%	�	�	28,000,000	100%
Hung-wei Venture Capital Co., Ltd	25,000,000	100%	�	�	25,000,000	100%
Realking Investments Limited	29,392,985	100%	�	�	29,392,985	100%
Realsun Technology Corporation	500,000	100%	�	�	500,000	100%
Bobitag Inc.	1,918,910	66.67%	�	�	1,918,910	66.67%
EstiNet Technologies Inc.	2,000,000	6.68%	�	�	2,000,000	6.68%

Note: The aforementioned are long-term investments under the equity method.

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Capital Raising

I. Source of Capital

		Authorized	Authorized	Paid-in	Paid-in	Remarks	Remarks
Year & Month	Issuing Price	Shares (K)	Amount ($K)	Shares (K)	Amount ($K)	Source of Equity	Capital increase by assets other than cash	Other Note 1 Note 2 Note 3
09/2017 04/2018 04/2020	10 10 10	890,000 890,000 890,000	8,900,000 8,900,000 8,900,000	506,506 508,095 510,685	5,065,062 5,080,955 5,106,849	Employees' compensation Employees' compensation Employees' compensation	- - -

Note 1: The capitalization was approved by the Hsinchu Science Park Administration on Sep. 25, 2017 with an approval letter of No. 1060026285.

Note 2: The capitalization was approved by the Hsinchu Science Park Administration on Apr 11, 2018 with an approval letter of No. 1070010727.
Note 3: The capitalization was approved by the Hsinchu Science Park Administration on Apr 20, 2020 with an approval letter of No. 1090010606.

Type of share Common stock	Authorized Capital	Authorized Capital	Authorized Capital	Remarks Note
	Outstanding Shares 510,684,875	Un-issued Shares 379,315,125	Total 890,000,000

Note: The authorized capital retains 80,000,000 shares for the issue of employee warrant shares. Shelf Registration: Not Applicable.

II. Structure of Shareholders

					April 10, 2021	April 10, 2021
Structure of Shareholders Number of Shareholders Shareholdings Shareholding Percentage	Government Institutions 0 0 0.00%	Financial Institutions 38 45,851,973 8.98%	Other Institutional Investors 455 76,081,313 14.90%	Foreign Institutional & Individual Investors 1,263 314,898,137 61.66%	Individual Investors 47,724 73,853,452 14.46%	Total 49,480 510,684,875 100.00%

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III. Distribution of Shareholding

I. Distribution of Shareholding
			April 10, 2021
Category	Number of Shareholders	Shareholdings	Shareholding Percentage
1 to 999	35,421	2,699,850	0.53%
1,000 to 5,000	11,408	18,949,818	3.71%
5,001 to 10,000	923	6,673,913	1.31%
10,001 to 15,000	319	3,885,741	0.76%
15,001 to 20,000	149	2,691,635	0.53%
20,001 to 30,000	214	5,278,238	1.03%
30,001 to 40,000	131	4,638,491	0.91%
40,001 to 50,000	81	3,712,711	0.73%
50,001 to 100,000	270	19,230,904	3.77%
100,001 to 200,000	193	28,108,328	5.50%
200,001 to 400,000	160	44,850,092	8.78%
400,001 to 600,000	55	26,802,362	5.25%
600,001 to 800,000	37	26,152,790	5.12%
800,001 to 1,000,000	25	21,604,112	4.23%
1,000,001 and above	94	295,405,890	57.84%
Total	49,480	510,684,875	100.00%

IV. List of Major Shareholders

April 10, 2021

Shareholding Shareholder	Shareholdings	Percentage of Shareholding
Cotek Pharmaceutical IndustryCo.,Ltd.	22,146,604	4.34%
CathayLife Insurance Company,Ltd.	13,368,000	2.62%
LeicesterWorldwide Corporation	12,616,184	2.47%
JPMorgan Chase Bank N.A. Taipei Branch in custody for JPMorgan Funds	9,340,000	1.83%
Enable Educational TechnologyCo.,Ltd.	8,181,000	1.60%
Investment account of Norges Bank managed byCitibank Taiwan	7,552,121	1.48%
China LifeInsurance Co.,Ltd.	7,537,000	1.48%
NanShan LifeInsurance Co.,Ltd.	7,324,000	1.43%
NewLabor Pension Fund	7,122,227	1.39%
Vanguard Emerging Markets Stock Index Fund, A Series Of Vanguard International EquityIndex Funds	6,822,959	1.34%

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V. Market price, net worth, earning, and dividends per common share and related information over the last two years

Item	Year	Year	2019	2020	As of March 31, 2021
Market price per share	Highest		251.5	432	524
	Lowest		136	162	383
	Average		207.43	312.62	461.32
Net worth per share	Before distribution		53.57	57.69	-
	After distribution		43.34	-	-
Earnings per share	Weighted average shares		508,095 (thousand shares)	510,126 (thousand shares)	510,126 (thousand shares)
	Earnings per share		13.36	17.24	-
Dividends per share (Note4)	Cash dividends		9	12	-
	Stock dividends	-	-	-	-
		-	-	-	-
	Accumulated unappropriated dividends		-	-	-
Return on investment	Price/earnings ratio (Note1)		15.53	18.13	-
	Price/dividend ratio (Note2)		23.05	26.05	-
	Cash dividends yield (Note3)		4.34%	3.84%	-

Note 1: Price/Earnings Ratio = Average Market Price / Earnings Per Share

Note 2: Price/Dividend Ratio = Average Market Price / Cash Dividends Per Share

Note 3: Cash Dividend Yield = Cash Dividends / Average Market Price Per Share

Note 4: Cash dividends filled in 2020 and 2019 represent the distribution of 2019 and 2018 retained earnings, respectively and exclude cash dividends from capital surplus.

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VI. Dividend Policy and Status of Execution

Dividend Policy under the Articles of Incorporation
The Company belongs to the integrated circuit design industry and is in the growth phase of the enterprise life cycle. After considering the long-term business development of the Company, matching future investment fund requirements, and the long-term financial planning of the Company, if there are profits at the end of fiscal year, the Company shall first offset the accumulated losses with profits after tax, and then shall contribute 10% of profit as legal reserve, unless the accumulated legal reserve has reached the amount of the Company’s total capital, and contribute or reverse special reserve in accordance with relevant laws or regulation by the competent authority. If there are net profits remained, the remaining net profits and the retained earnings from previous years shall be distributed as shareholders’ dividend after the distribution proposal is prepared by the board of directors. In case the distribution is in the form of issuing new shares, the distribution proposal shall be approved at a shareholders meeting. In case the distribution is in the form of cash, the distribution proposal is authorized to be approved by the board of directors. After considering financial, business, and operational factors, the Company may distribute the whole of distributable earnings of the current year, and may also distribute whole or part of the reserves in accordance with the law or the regulation by the competent authority.
When distributing dividends, the main consideration is the Company's future expansion of operating scale and requirement of cash flow. The cash dividends shall not be less than 10% of the total dividends distributed to shareholders in the current year.

According to Article 240, Paragraph 5, and Article 241, Paragraph 2 of the Company Act, the Company authorizes the distributable dividends, legal reserve, and capital reserve in whole or in part may be paid in cash after a resolution has been adopted by a majority vote at a meeting of the board of directors attended by two-thirds of the total number of directors, and in addition thereto a report of such distribution shall be submitted to the shareholders meeting.

2021 Annual Shareholders' Meeting report on the distribution of dividends for 2020: The Company’s dividend distribution from retained earnings for 2020, approved by the board of directors, was NTD 12 per share in cash.
VII. Impact to business performance and EPS resulting from stock dividend distribution: None.

VIII. Employees’ Compensation and Remuneration to Directors

1.Employees’ Compensation and Remuneration to Directors as Stated in the Articles of Incorporation:
If gained profits within a fiscal year, the Company shall allocate at a maximum of 3% of the profits as directors’ remuneration, and allocate no less than 1% of the profits as employees’ compensation. However, in case of the accumulated losses, certain profits shall first be reserved to cover the accumulated losses, and then allocate employees’ compensation and directors’ remuneration according to the proportion in the preceding paragraph.

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The distribution of employees' compensation in the preceding paragraph shall be in cash or in stock, and shall be resolved with a consent of a majority of the directors present at a meeting attended by over two-thirds of the total directors. The distribution of director's remuneration and employee’ compensation shall be reported to the shareholders meeting.

The employees entitled to receive employees’ compensation may include the employees of subsidiaries of the Company meeting certain specific requirements. The requirements are determined by the board of directors or its authorized person.

Accounting for Employee Compensation and Remuneration to Directors
The Company accrued employees’ compensation and remuneration to directors based on a percentage of profit as stated in the Articles of Incorporation Article. If the accrued amounts differ from the actual amounts approved by stockholders’ meeting, the Company will recognize the change as an adjustment to income of next year.
Employee compensation and Remuneration to Directors resolved by the Board of Directors
3.1. The Proposal of 2020 Employees’ Compensation and Remuneration to Directors resolved at the Board of Directors held on March 19, 2021:

Unit: New Taiwan Dollars; shares

Cash compensation 2,586,316,785	Employees’ Compensation Stock compensation Common Shares 0 0	Total 2,586,316,785	Remuneration to Directors Cash 90,000,000	Difference Difference Amount Effect of financial statements none Not applicable

Note: the 2019 Employees’ compensation and directors’ remuneration resolved at the Board of Directors are the same as the accrued amounts in 2019.

3.2. The ratio of employees’ stock compensation divided by the total of income after tax and employees’ compensation: The 2020 employees’ compensation is in cash so that it is not applicable.
The 2019 Employees’ Compensation and Remuneration to Directors approved by the stockholders’ meeting (including common shares to employees, amount of employees’ stock compensation and share price) and the effect in financial statements if the actual amounts approved by stockholders’ meeting differ from the accrued amounts.

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			Unit: New Taiwan Dollars;shares Remuneration to Directors Difference cash Difference Amount Effect of financial statements 119,828,246 none Not applicable	Unit: New Taiwan Dollars;shares Remuneration to Directors Difference cash Difference Amount Effect of financial statements 119,828,246 none Not applicable
Cash compensation 1,677,939,109	Employees’ Compensation Stock compensation Common Shares 419,484,582 2,589,411	total 2,097,423,691	Remuneration to Directors cash 119,828,246	Difference Difference Amount Effect of financial statements none Not applicable

Note: The 2018 Employees’ compensation and directors’ remuneration approved by the shareholders’ meeting are the same as accrued amounts in 2018.

IX. Status of Treasury Stocks: None

X. Status of Corporate Bonds: None

XI. Status of Preferred Stocks: None

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XII. Status of GDR

March 31, 2021

			March 31,2021
Issuing Date Item			Jan 24, 2002
IssuingDate			Jan 24,2002
Issuance &Listing			Luxembourg Stock Exchange.
Total Amount�US$�			240,180,375
OfferingPriceper Unit�US$�			17.25
Issued Units			13,923,500 units
Underlying Securities			New shares issued for capital increase of cash and issued common shares held by shareholders of the Company
Common Shares Represented			55,694,400 Common Shares
Rights and Obligations of GDR holders			According to the relevant instructions of thepublished manual
Trustee			N/A
DepositaryBank			Bankof NewYork Mellon
Custodian Bank			Mega International Commercial Bank
GDRs Outstanding			367,227 units
Apportionment of the expenses for the issuance and maintenance			In accordance with the contract of the underwriting syndicate and depositary bank
Terms and Conditions in the Deposit Agreement and Custody Agreement			The company will provide necessary public information in accordance with the contract for the depositary bank to notify the depositary certificateholder
Closing price per GDRs �US$)	2020	Highest	58.44
		Lowest	21.92
		Average	42.29
	As of March 31 of 2021	Highest	73.83
		Lowest	53.96
		Average	65.00

XIII. Status of Employee Stock Warrants: None

XIV. Status of Employee Restricted Stocks: None

XV. Status of Mergers or Acquisitions, or as assignee of new shares issued by other companies: None

XVI. Status of Implementation of Fund Utilization Plan: Not Applicable

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Operations Overview

I. Business Overview

1. Business Scope

(1) Realtek’s Main Business Areas
i. Research, development, production, manufacturing, and the sale of various types of integrated circuits
ii. Software and hardware application design, testing, repairs, and technical consultations for various types of integrated circuits
iii. Research, development, and the sale of various types of silicon intellectual property
iv. Adjunct trade and sales that relate to Realtek’s core businesses

(2) Percentage of Operating Revenue

Unit: NT$ thousands

2020	IC Products	Other	Total
Net Operating Revenue	77,588,285	171,185	77,759,470
Percentage of OperatingRevenue	99.78%	0.22%	100%

(3) Current Products

Communications Network Products:

PCIe 10BASE-T/100BASE-TX Single-Chip Ethernet Controller
PCIe 2.5GBASE-T Single-Chip Ethernet Controller
PCIe 2.5GBASE-T Single-Chip Ethernet Controller for Gaming
USB2.0 10BASE-T/100BASE-TX Single-Chip Ethernet Controller
USB3.2 Gen1 2.5GBASE-T Single-Chip Ethernet Controller
USB3.2 Gen1 2.5GBASE-T Single-Chip Ethernet Controller for Gaming
PCIe 1GBASE-T Single-Chip Ethernet Controller
PCIe 1GBASE-T Single-Chip Ethernet Controller for Gaming
PCIe 1GBASE-T Programmable Single-Chip Ethernet Controller
USB3.2 Gen 1 1GBASE-T Single-Chip Ethernet Controller
USB3.2 Gen1 1GBASE-T Single-Chip Ethernet Controller for Gaming
USB3.2 Gen 2 to PCIe 3.0 x 2 NVMe Storage Single-Chip Bridge Controller
USB3.2 Gen 2 to PCIe 3.0 x 2 SATA Storage Single-Chip Bridge Controller
Long Distance 10/100 BASE-T/100BASE-T1 Ethernet PHYceiver
PCIe Single-Chip 1GBase-X Fiber Ethernet Controller
RGMII/SGMII/GMII 1GBASE-T Ethernet PHYceiver
1GBASE-T Ethernet PHYceiver for LED transceiver
2.5GBASE-T Ethernet PHYceiver

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100BASE-T1 Automotive Ethernet PHYceiver
100/1000BASE-T1 Dual Mode Automotive Ethernet PHYceiver
100BASE-T1 Automotive Multiport Ethernet Switch Controller
100/1000BASE-T1 Automotive Multiport Ethernet Switch Controller
Single-Chip UHD HDR Streaming Multimedia SoC
Single-Chip Multi-CAS UHD Multimedia STB SoC
802.11b/g/n 1T1R WLAN Single-Chip Controller with PCIe/USB2.0/SDIO2.0 Interfaces
802.11b/g/n 2T2R WLAN Single-Chip Controller with PCIe/USB2.0/SDIO3.0 Interfaces
� 802.11b/g/n 1T1R WLAN and Bluetooth Smart Single-Chip Controller with PCIe/USB2.0/SDIO2.0 Interfaces
802.11a/b/g/n/ac/ax 1T1R WLAN and Bluetooth 5.2 Smart Single-Chip Controller with PCIe/USB2.0/SDIO3.0 Interfaces
802.11a/b/g/n/ac/ax 2T2R WLAN and Bluetooth 5.2 Smart Single-Chip Controller with PCIe/USB2.0/SDIO3.0 and HS-UART interfaces
802.11a/b/g/n/ac 2T2R WLAN Single-Chip Controller with USB2.0 Interface
802.11a/b/g/n/ac 3T4R WLAN Single-Chip Controller with PCIe/USB3.0 Interfaces
802.11a/b/g/n/ac 4T4R WLAN Single-Chip Controller with PCIe/USB3.0 Interfaces
Wireless LAN (Wi-Fi) with Microcontroller Integrated SoC
Wireless LAN (Wi-Fi), Bluetooth and Microcontroller Multifunction Integrated SoC
Low-Power, Highly-Integrated Dual Band Wi-Fi Network Camera SoC
Wireless LAN 802.11ac Dual Band Access Point / Router Integrated SoC
Bluetooth 5.1 BLE SOC
Bluetooth 5.1 Audio SoC
GNSS Satellite Positioning IC
8-Port Fast Ethernet PHY
5/8/16/24-Port Fast Ethernet Switch Controller
4/8-Port Gigabit Ethernet PHY
8-Port Gigabit Ethernet PHY
5/8-Port Single Chip Gigabit Ethernet Switch Controller
16/24-Port Gigabit Ethernet Switch Controller
24-Port Gigabit/2.5G + 2-Port 10G Ethernet Managed Switch Controller
48-Port Gigabit + 4-Port 10G Ethernet Managed Switch Controller
24-Port Gigabit/2.5G + 4-Port 10G Ethernet Managed Switch Controller
48-Port Gigabit + 6-Port 10G Ethernet Managed Switch Controller
1.25G/2.5G/10G Integrated xPON Network Gateway Controller
Single-Port xPON Network Bridge Controller
2-Port xPON Network Gateway Controller
GPON Laser Driver
8-Port Integrated IEEE 802.3at-Compliant PSE controller
4-Port Integrated IEEE 802.3bt-Compliant PSE controller

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Long Distance 10/100BASE-T/100BASE-T1 Ethernet Switch Controller
VDSL 35B Network Router Controller

Computer Peripheral Products:

HD-A 4-Channel Audio Codec
HD-A 4-Channel Audio Codec with Embedded Class-D Amplifier and I2S In & Out
HD-A 4-Channel Audio Codec with High Wattage Class-D Amplifier Supporting Speaker Protection
HD-A Low Power Stereo Audio Codec
HD-A Multi-Channel Audio Codec (7.1 and 10 Channels)
SoundWire 4-Channel Audio Codec with Embedded Class-D Amplifier and I2S In & Out
Low Power USB 2.0 Audio Codec with Equalizer
Single-Chip Hi-Fi Audio Codec with Power Amplifier for Mobile Devices
USB 2.0 to I2S Bridge Controller
Single-Chip Hi-Fi Audio Codec with Programmable Voice/Audio DSP for Mobile Devices
High Quality, High Performance Class D Amplifier with Embedded Adaptive Boost, Speaker Protection and Equalizer for Mobile Devices
Embedded USB2.0 Image Signal Processor Chip Supporting Windows Hello Face Recognition
Low Power Embedded SPI to USB1.1/2.0 Interface Fingerprint Hardware Encryption Bridge Chip for MoH (Match-on-Host, Architecture)
Low Power Embedded SPI to USB2.0 Interface Fingerprint Hardware Encryption and Matching Microcontroller Chip for MoC (Match-on-Chip, Architecture)
Highly Integrated Surveillance Camera SoC
Highly Integrated, Low Power Neural Network Artificial Intelligence Surveillance Camera SoC
USB 3.0 /USB 3.1 Gen 2 4-Port Hub Controller
Highly Integrated USB Type-C Controller

Multimedia Products:

Integrated LCD Controller with VGA Analog Interface
Integrated LCD Controller with DVI Interface
Integrated LCD Controller with HDMI Interface
Integrated LCD Controller with DisplayPort Interface
DisplayPort to LVDS Translator
DisplayPort to VGA Translator
Low Power DisplayPort to HDMI2.0 Translator
DisplayPort to HDMI2.1 Translator
USB Type-C to VGA Translator
Low Power USB Type-C to HDMI2.0 Translator
DisplayPort MST Hub Controller

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Integrated High Resolution 5K3K/4K2K/QHD LCD Display Controller with HDR, DP1.4, HDMI2.0, and HDCP2.2
Integrated High Resolution 4K2K144Hz Gaming LCD Display Controller with Realtek Owl Sight Technology, DSC, HDR, DP1.4, HDMI2.1, and HDCP2.3
Integrated High Resolution 4K2K144Hz/QHD165Hz Gaming LCD Display Controller with Realtek Owl Sight Technology, DSC, HDR, DP1.4, HDMI2.0, and HDCP2.3
Integrated High Resolution 4K2K/QHD LCD Controller with USB Type-C Interface
Integrated High Resolution QHD/FHD LCD Display Controller with USB Type-C Interface
High-End Integrated LCD TV Controller Chip
High-End Multimedia Digital/Analog LCD TV Controller Chip
High-End Connected Digital/Analog LCD TV Controller Chip
High-End UHD Smart Connected Digital/Analog LCD TV Controller Chip
High-End UHD HDR Smart Connected Digital/Analog LCD TV Controller Chip
High-End UHD HDR 60Hz/120Hz FRC Full-Function HDR Smart Connected LCD TV Controller Chip
High-End UHD Full-Function HDR and 3D Surround Sound Multi-Core Smart Connected LCD TV Controller Chip
High-End 8K LCD TV Video Decoder and Processing Chip
High-End Full Function, Multi-Core UHD Connected LCD TV Controller Chip with AI PQ and AQ Processing
Bridge IC for ‘Separated Type’ LCD TV

(4) Products Under Development

Communications Network Products:

New Generation USB3.2 Gen 1 Single-Chip 2.5GBASE-T Ethernet Controller for Gaming Applications
USB3.2 Gen 2 Single-Chip 2.5G/5GBASE-T Ethernet Controller
PCIe Single-Chip 2.5G/5GBASE-T Ethernet Controller
2.5G/5GBASE-T Ethernet PHY
USB3.2 Gen2 x2 to USB PCIe 3.0 x 4 Single-Chip Bridge Controller for Storage Application
1GBASE-T Ethernet Phyceiver for LED Transceiver Application
2.5GBASE-T1 Automotive Ethernet PHY
Multi-Port 2.5GBASE-T Multi-Gb Ethernet PHY
4-Port 2.5GBASE-T Ethernet PHY
8-Port 2.5GBASE-T Ethernet Switch Controller
24/48-Port 2.5G/5G/10G BASE-T Ethernet Switch Controller
New Generation Single-Port 2.5G/5G/10GBASE-T Ethernet PHY
New Generation 4-Port 2.5G/5G/10GBASE-T Ethernet PHY
8-Port IEEE 802.3at PSE Controller

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4-Port IEEE 802.3at PSE Controller
New Generation High-Port Density Gigabit Ethernet Managed Switch Controller
New Generation 24-Port 10G + 4-Port 25G + 2-Port 100G Ethernet Managed Switch Controller
New Generation Single-Chip 10G xPON Home Gateway SoC
10G PON Laser Driver
VDSL 35B Transceiver
802.11a/b/g/n 1T1R Wi-Fi and Bluetooth 5.2 Single-Chip Controller
802.11a/b/g/n/ac 1T1R Wi-Fi and Bluetooth 5.2 Single-Chip Controller
802.11a/b/g/n/ac/ax 2T2R Wi-Fi and Bluetooth 5 Single-Chip Controller
802.11a/b/g/n/ac/ax 4T4R Wi-Fi Single-Chip Controller with PCIe/USB3.0 interfaces
Next Generation Wi-Fi, Bluetooth and Highly-Integrated Microcontroller SoC
Wi-Fi 802.11ax (Wi-Fi 6) Dual Band Access Point / Router Integrated SoC
Bluetooth 5.2 Classic and BLE Audio with Active Noise Cancellation SoC
New Generation Bluetooth 5.2 Ultra Low Power Audio SoC
Next Generation Single-Chip UHD HDR Multimedia SoC
Next Generation Single-Chip UHD HDR Set-Top Box SoC with Multi-CAS Support

Computer Peripheral Products:

HD-A 4-Channel Audio Codec with High Wattage Class-D Amplifier Supporting Speaker Protection
SoundWire Audio Codec
Low Power USB2.0 Audio Codec
USB2.0 Audio Codec with DSP
Voice Audio DSP
Mobile Device Audio Codec with Power Amplifier
Customized Stereo High Fidelity Audio Power Amplifier for Gaming Device
High Performance Programmable Voice/Audio DSP for Mobile Device
Hi-Fi Codec and Class-D Amplifier Single-Chip with SoundWire Interface for Mobile Device
Hi-Fi, High Efficiency Class-D Smart Amplifier with Built-in Boost for Mobile Device
New Generation Image Signal Processor with Embedded USB2.0/MIPI Interface Supporting Video High Dynamic Range (HDR)
New Generation ISP with embedded and external USB3.0 and MIPI Interfaces supporting 4K2K Resolution/Video HDR/Quad-Cell Specifications
Notebook PC Card Reader Controller with PCIe Gen I Interface, Supporting SD 7.0
USB3.2 4-Port Hub Controller
Highly Integrated USB Type-C Controller
New Generation Surveillance Camera SoC Supporting 5MP Resolution and Video HDR
New Generation Surveillance Camera SoC Supporting 4K2K Resolution, Video HDR, and Neural Network Artificial Intelligence

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Multimedia Products:

New Generation Integrated UHD/QHD LCD Display Controller with USB Type-C and HDMI2.1 Interfaces
New Generation High-End UHD Full-Function HDR and 3D Surround Sound Multi-Core Smart Connected LCD TV Controller Chip
New Generation High-End 8K120 AI PQ Chip
New Generation High-End 8K120 LCD TV Video Processing Chip with AI PQ
New Generation High-End Full Function AI 8K Multi-Core, Smart Connected LCD TV SoC

2. Industry Overview

(1) Industry Status & Trends and Product Development & Competition

The Coronavirus disease (COVID-19) has spread rapidly since the beginning of 2020 and has had a great impact on the lives of all mankind. By the second quarter, Working From Home (WFH) and remote learning gradually became the norm. This change in lifestyle has generated a large number of needs for connectivity, including the use of various mobile devices such as personal computers, tablets, mobile phones, wired or wireless connection to routers, switches, and broadband gateways connecting to various servers or terminal devices via the internet. Such application demands caused the IC industry to maintain a 10% growth in 2020 while many other industries contracted under the impact of COVID-19. Realtek grew strongly by providing various connectivity IC solutions for a multitude of communication networks, computer peripherals, and consumer multimedia applications. Realtek's revenue in 2020 was approximately NT$77.8 billion, achieving a 28.0% annual growth.

Communications Network Products:

In Ethernet, the market has seen a new generation of gaming PCs, motherboards, network adapter cards, interface expansion accessories and docking stations adopting Realtek’s second generation 2.5Gbps Ethernet (2.5GbE) products. Due to the COVID-19 outbreak in early 2020, the global demand for network communication devices has increased sharply. To curb the epidemic impact, people reduced in-person group activities, prompting companies and schools to change the work and learning patterns of employees and students, and to purchase home office and remote learning equipment. It also led to changes in consumer behavior and entertainment patterns, with greater focus on online interactions and leisure activities. As network infrastructure is constantly upgraded in various countries, the bandwidth requirements of various applications are also reflected in the upgrade of 1GbE to 2.5GbE specifications. In addition, the 5G telecom market is integrating 2.5GbE into the planning of 5G Customer Premises Equipment (CPE). In 2020, Realtek released its second-generation 2.5GbE single chip. With the lowest power consumption and smallest package, the Realtek series of 2.5GbE solutions are found in not only mainstream motherboards, but also in the higher-end models of well-known PC brands. In the communications network market, the demand for Low Power Ethernet PHY for IP CAM/PON continued to reach record highs. Furthermore, falling prices in

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Solid-State Drive (SSD) has sped up the replacement of traditional hard drives by SSDs. During this wave of conversion, Realtek launched the second generation USB 3.2 Gen 2 to PCIe 3.0 x 2 Bridge for external SSD, which is the world's first to enable an SSD to support both the new PCIe NVMe and the old SATA interfaces. A number of customers have adopted this technology following its release in the second half of 2020.

In the Ethernet Switch market, Realtek has been the market share leader in embedded applications and unmanaged switches. In recent years, its market share in Smart Switches has been steadily rising. In 2020, Realtek invested in the research and development of higher-level and higher-speed Multi-G Layer 3 managed switches such as access managed switches and aggregation managed switches in response to the developmental trend of the enterprise network and campus network markets. With respect to PHY technology, Realtek also simultaneously developed 2.5G, 5G, and 10G PHY to expand the product depth and breadth in anticipation of greater penetration into the switch market. Following years of advancement, Realtek has smoothly transitioned into seeing embedded applications and smart switches as its main growth drivers. As demand in the Power-over-Ethernet (PoE) Switch market quickly rises, customers expect Realtek to provide total solutions. To this end, Realtek commits itself to PoE R&D with a focus on the pairing of switches with Power Source Equipment (PSE) and security applications.

Wi-Fi 6 has been widely implemented as the demand for wireless network bandwidth has greatly increased in the past two years. Consumers are not satisfied with the speed of current GbE switches, however current Multi-G switches on the market are all 10G managed switches with more than 10 ports. Not only they are very expensive, but also their operations are complicated and not user friendly, which makes them difficult for consumers to accept. Realtek is planning to launch an 8-port 2.5GbE switch in 2021, which not only meets the needs of most gaming players, but also is low power and easy to operate for non-gamers. It is expected to cause a surge in the sales of 2.5GbE switches.

In addition, Realtek will launch more cost-effective 24/48-port 1GbE managed switch products to address the popularity and fierce competition in 1GbE access ports of entry-level managed switches, thereby proactively going after new market share with its increase in computing power and decrease in power consumption.

China is the world’s largest market for optical fiber. Over the past two years, Realtek has endeavored, with success, to build a strong market share in China while also expanding in other areas. Affected by the pandemic in 2020, WFH and remote learning have become new social needs. The broadband access technology of xPON is right there to provide a stable, highbandwidth, and reasonably-priced home internet environment. The next new market specifications are xGPON products with greater bandwidth. Chinese telecom operators began to prepare tenders and conduct field-tests for 10G PON Home Gateway Units (HGU) in 2020. Cortina Access, a Realtek affiliate, is in an excellent position to fulfill these market needs.

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Increasing numbers of carmakers in Europe, the United States, China, Japan, South Korea, and other areas are turning to Automotive Ethernet for in-vehicle networking. Many use Automotive Ethernet to connect in-vehicle safety sensors, 360-degree camera systems, infotainment head units, and instrument panels. Realtek’s Automotive Ethernet products were already named as a ‘Golden Sample’ by IOT Certification Laboratory for Interoperability Testing; they were the first in the world to pass the OPEN Alliance TC10 Deep Sleep & Wake Up protocol. With a power consumption of a mere 35μA, they support remote ECU TC10 wake-up, making them a necessary part of energy-efficient automobiles. They have been certified by many carmakers, adopted by tier one suppliers, and are starting shipment. Looking ahead, Realtek is using its superior technical advantages to pioneer second-generation Automotive Ethernet products, including a Dual Mode Multiport 100/1000BASE-T1 Switch and Dual Mode PHY that supports 100/1000BASE-T1. European and American automobile manufacturers and their tier one suppliers are gradually adopting this technology for their 2022/2023 automotive network backbone needs. In addition, Realtek is cooperating with automotive manufacturers in the OPEN Alliance to integrate 10BASE-T1 technology into the next generation of Multiport Switches. PHY controllers supporting the new 2.5GBASE-T1 standard are also planned to be developed to meet 2024/2025 market needs.

After many years of streaming media such as Netflix, YouTube, and Amazon popularizing the use of Over the Top (OTT) boxes, Disney and Apple launched Disney+ and Apple TV+ respectively at the end of 2019. HBO launched HBO Max in May 2020, yielding explosive sales of OTT services and further boosting demand. These firms are transforming the pay television industry, while operators continue to deliver high-quality audio and video contents through broadcast, IP, or hybrid network services. Large telecom operators have also fully turned to the IP ecosystem and started to launch their own OTT services or Set-Top Boxes. For example, Comcast launched its OTT Set-Top Box Xfinity Flex to broadband users at the end of 2019, followed by its own OTT service ‘Peacock’ in July 2020. In addition to the trend of turning to IP and OTT, open platforms also rely on the support of app stores and a better integrated architecture for premium apps to attract operators to abandon the old closed systems and embrace open platforms. Android TV by Google and the RDK-V platform by the RDK Alliance have successfully attracted major telecom operators to adopt them and gradually steered the closed telecom market towards an open IP ecosystem that enables major telecom operators to offer hybrid OTT and IPTV boxes that play online video. With consumers’ changing viewing habits and demanding higher quality content, the operators are facing greater challenges in system security. In this quickly maturing market, with products that offer more capabilities at lower prices, Realtek is responding with a new generation of UHD Multimedia Controllers that meet each operator’s Multi-CAS security requirements. Besides integrating the new generation of HDR technologies, they support the latest audio-video codecs, such as AV1, AVS2, and VVC. Software and hardware reference designs that are cost competitive and offer low power consumption further help customers to develop high efficiency OTT boxes to take advantage of this key market. Realtek Multimedia Controllers that combine in-house multimedia and network total solutions have an advantage that is difficult to emulate.

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In the area of Wi-Fi controllers, many companies have converted to Working From Home (WFH) due to COVID-19 in 2020. To enhance work efficiency, PC OEM customers significantly decreased usage of 11n Wi-Fi, and 11ac Wi-Fi has already become the standard for PCs. About 15% to 20% of platforms have switched to the faster Wi-Fi 6 specification. Realtek expects Wi-Fi 6 shipments to rise rapidly in 2021; nonetheless, Realtek’s overall Wi-Fi shipments will continue to be based on 11ac chips in 2021.

Besides the traditional PC market, Realtek's Wi-Fi shipments for the printer market have been gradually increasing. Mass production shipments for the top 3 printer customers was started in 2020. Along with Wi-Fi, other wireless transmission methods gaining popularity include Bluetooth printing, Neighborhood Aware Networking (NAN or Wi-Fi Aware), and Apple AirPrint. These added options give end users greater convenience and capabilities.

As technology matures and devices become more affordable, Wi-Fi use is flourishing in the consumer and IoT markets. For example, Wi-Fi has already become a standard feature in smart televisions. Realtek performs strongly in major global television markets. As the television market becomes saturated, Wi-Fi use is trending toward an M-shape, with high-end products using 11ac and gradually adopting Wi-Fi 6, while low-end products continue to use 11n. For all ranges of televisions, Realtek offers Wi-Fi solutions with high price-performance ratios that support expansion of this important market.

China is home to more than 100 million IP STB users. Support from the three leading telecom operators over the past five years has brought Wi-Fi capabilities to a high percentage of these devices. Broadcasting systems also continue to use Wi-Fi while introducing 4KP60 models that boost growth of Wi-Fi 11ac+BT and gradually creates demand for Wi-Fi 6. Realtek’s Wi-Fi products have been used in IP STB products for many years. In 2020, Realtek has obtained a substantial market share and will transition to Wi-Fi 6 in 2021. Realtek will continue to provide high-quality Wi-Fi products that are suitable for IP STB.

Realtek’s Wi-Fi application in IP CAM has achieved good results in 2020. With the rise of AI technologies, human shape recognition, facial recognition, and gesture recognition are now possible using remote server or edge computing, thereby fueling a stable IP CAM growth. However, due to congestion in the 2.4GHz band, caused by interference from various ISM (Industrial, Scientific and Medical) band transmission technologies, as well as channel competition and the overlap of AP network coverage, the quality of services of 2.4GHz WLAN will continue to drop, thereby inhibiting the practicality of IP CAM. Fortunately, as WLAN technology improves, the performance of the built-in RF front-end (PA and LNA) of 5GHz WLAN has been improved, which enlarges the coverage of WLAN in the 5GHz band and reduces the cost of dual-band WLAN. New technologies added to Wi-Fi 6, including a longer OFDM symbol, guard interval, spatial reuse, and OFDMA are conducive to improve the transmission experience and will become mainstream in WLAN IP CAM applications. Realtek’s Wi-Fi technology stays on top of international standards and undergoes frequent upgrades; it is well positioned to provide the best Wi-Fi solution for IP CAM.

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Google, Apple, and other western-based companies are leaders in the smart speaker market. They are joined by Chinese companies such as Alibaba, Xiaomi, and Baidu, that specialize in entry-level smart speakers with 11n+BT Combo specs. Realtek’s Wi-Fi capabilities together with China’s smart speaker SoC plants form a competitive partnership. In 2021, Realtek will actively and strategically expand in the smart speaker market in Europe and America.

In 2020, as 11ac continued to replace 11n for Integrated WLAN Access Point/Router products, an increasing number of global brands and network operators chose to adopt Realtek’s highly integrated, high-performance 802.11ac Dual Band Router solutions, resulting in continuing shipment growth. Realtek’s Dual Band Mesh Routers took advantage of an exceptional priceperformance ratio to spark new market demand and product growth. In high-end markets, Realtek released a new generation of Wi-Fi 6 router mainstream specifications AX1800 and AX1500 products in 2020, and will launch AX5400 and AX6000 high-end solutions in 2021/Q4, thereby providing an improved, comprehensive router solution.

The Internet of Things (IoT) market became more visible, and customer acceptance broadened, as applications such as Big Data, AI, and smart speakers became commonplace. In 2020, Realtek’s IoT customers and shipments grew quickly. Gartner forecasts that IoT growth will remain in double digits in 2021. The statistics portal Statista predicts that by 2025, there will be 75 billion devices with IoT functionality. Realtek will continue to invest in IoT development. Realtek already has a comprehensive suite of IoT products in mass production, including singlechip controllers for IoT household appliances, single-chip with microprocessors for diverse product applications, and single-chip with microprocessors that are suitable for sound, audio, and video applications. These are multifunctional, highly integrated, low energy, and high security. Every year Realtek dedicates more resources into developing new generations of energy-saving IoT chips in response to changing IoT product needs, trending from mobile app control to adding AI applications, combined with voice and image recognition, to fulfill customers’ pricing and specification needs. Realtek directly cooperates with the organizations and companies that are leading the IoT revolution, including the makers of Apple Home Kit, Google Home, and Amazon Alexa, as well as the Open Connectivity Foundation (OCF), and ARM Mbed to provide customers with complete software and hardware development tool kits. Realtek is the world leader in releasing the first Ultra Low Energy Wireless IoT Single Chip to feature image and voice functions; it introduces product innovations every year and frequently receives COMPUTEX Taipei Best Choice Awards in the IoT category.

Bluetooth has been widely adopted in mobile phones, TVs, OTT boxes, smart speakers, and other products, assisting individuals or home users to enjoy Bluetooth earphones, sports bracelets, Bluetooth voice-assisted remote controllers, and Bluetooth 5 mesh peripherals, bringing easy entertainment enjoyment, user-friendly human-machine interfaces, as well as simple and fast operational feedback.

In 2020, True Wireless Stereo (TWS) growth slowed down due to the impact of the pandemic.

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With the removal of the 3.5mm audio jack and the de-bundling of the free wired headset with a mobile phone, however, TWS is expected to return to high growth, with TWS headsets that support Active Noise Cancellation (ANC) having the most growth opportunity. Realtek has achieved a good reputation for its first-generation Bluetooth solutions. It also provides convenient ANC mass production tools in the second-generation ANC solution to help customers improve mass production efficiency, reduce costs, and ensure performance consistency, which was well received in the market and is a favorite of many international brands. In 2021, Realtek’s latest generation of Bluetooth BT5.2 TWS solutions will be released to meet the market’s expectations for the evolution of new Bluetooth headsets. This new range of devices is expected to enable Realtek to maintain its position as the leader in Bluetooth audio, and to expand its market influence and empower market growth by working closely with supply chain and brand partners.

Realtek’s BLE series of products are especially popular among major international brands for voice-assist remote controllers, assisting the transition of remote controllers from infrared to Bluetooth; they also enable large color display upgrades for wrist devices, thereby increasing the appeal and value of wearables. In addition, commercial applications of Bluetooth Mesh networks that support smart voice ecosystems are maturing, which is supporting growth of peripheral Bluetooth products. In the future, with the low power characteristics of Bluetooth and online cloud services taking shape, Realtek's Bluetooth will not only be used in personal entertainment and smart-homes, but also enter industries such as smart factories, property management, and B2B transportation management, providing multiple levels of cross-domain applications.

Computer Peripheral Products:

In 2020, COVID-19 has drastically changed people's lifestyles. As working from home and remote learning have become the norm, consumers now understand that one computer is no longer enough. This change has caused PC market demand, after years of decline, to rise significantly in 2020, especially for notebook computers. Commercial notebooks led the growth in the first half of the year, and consumer and educational notebooks picked up the growth momentum in the second half of the year. Other than notebook computers, VoIP communication devices and noise reduction software to improve the quality of VoIP calls are two obvious drivers of growth. Realtek launched in 2020 an AI algorithm integrating neural network computation to greatly enhance consumers' experience on VoIP Apps by eliminating effectively uncontrollable sounds in the home environment, such as noises made by pets or alarms. Demand for conference devices and consumer headsets grew in 2020 as VoIP calls became essential in using PCs. In 2020, Realtek cooperated with many PC peripheral manufacturers to launch a number of related application products that combine Realtek’s USB audio chips, Digital Signal Processors (DSP), and algorithms.

Work-from-home and remote learning arising from COVID-19 induced the need for both high quality voice calls and also more convenient and clearer video. These requirements vastly increased the popularity of embedded, as well as plug-in, video devices for PCs. The

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improvement in video quality has therefore become most important. To this end, many 2021 flagship models of PC brands have upgraded the original HD resolution to FHD or 5MP resolution. In addition to the increased resolution of color video devices, Windows 10, with increasing penetration, has built-in Windows Hello Face Authentication technology. In 2021, the flagship models of many PC brands will upgrade from the Hybrid HD RGBIR single lens to a Dual Sensor dual lens. This enhances visible-light video to FHD resolution, and can support the 940nm band, which is less susceptible to interference by natural IR signals, thereby giving a better biometric user experience. As a market leader, Realtek will launch a series of HD/FHD/5M in the first quarter of 2021 in response to customer needs. Each resolution has an ISP model that can support dual lenses and TNR (Temporal Noise Reduction). Realtek expects to establish the highest video quality standard in the PC industry and provide consumers with the best user experience.

In response to the high growth of the security and video surveillance industry, since 2016 Realtek has released a series of highly integrated IP Camera single chips. These contain multifunction image signal processors and can support the CMOS sensors of major manufacturers, thus satisfying customers’ broad range of video preferences. Additionally, the integrated audio and network functions offer a network camera single-chip solution with high cost-effectiveness. Currently Realtek has successfully penetrated several renowned consumer smart-home surveillance IP camera brands. In 2021, a new generation of highly integrated low-power single-chip cameras will be launched. They support up to 5 megapixel CMOS sensor and support the Video HDR wide dynamic long and short exposure specifications in addition to H.264/H.265 encoding capability, thus allowing Realtek to have a more comprehensive product portfolio in single-chip camera controller, and continually provide customers with more competitive solutions.

For laptop and desktop computers, Realtek released integrated card readers with PCI Express and USB 3.0 Interfaces to read both memory cards and smart cards. Realtek is a pioneer in releasing devices that support the latest SD7.0 memory cards and Intel’s newest energy-saving products. Besides keeping the leadership position in market share, Realtek wants to create new product applications and value for customers.

Demand for USB 3.0 is growing as more products that support it are released. High demand among manufacturers for Realtek’s 4-Port USB 3.0 hubs has led to monthly shipment increases. Realtek is leading the industry in the release of USB 3.1 GEN 2 hubs, many of which are already being used by manufacturers on new platforms. USB 3.1 hubs offer faster transmission with lower power consumption. They integrate USB Type-C functions to provide customers with the option of designing higher-spec, more refined products. In the future, Realtek will integrate existing technologies and product lines and release updated hubs with greater functionality in order to expand market share and provide more diverse product lines.

With the introduction of USB Type-C, Realtek simultaneously released the first highly integrated Type-C compatible controllers. These reduce overall design costs and refine product

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features. Manufacturers have already begun using them in a wide range of applications. Realtek will continue to develop products with improved specifications to provide customers with a wider range of product designs.

In the consumer electronics audio chip market, Realtek uses exclusive low power design technology and energy-saving hardware and software solutions to extend battery life. It developed an efficient Audio Codec with Class-D Amplifier, Built-in Adaptive Boost, Equalizer, and Speaker Protection. This highly integrated device helps customers reduce external components, thus reducing the motherboard area. In the smartphone and game console sectors, Realtek’s Low Power Audio Codec, Smart Amplifier, and Programmable Audio DSP have been gradually adopted by major brand manufacturers and have received accolades.

Multimedia Products:

New opportunities for LCD monitors are concentrated on devices offering high resolution, high refresh rates, superb video color, and the latest external display interfaces. Professional displays with ultra-high resolution and image quality, such as WFHD, QHD, WQHD, and UHD, highquality displays that support HDR or WCG, and specialized displays that use high refresh rates to improve the gaming experience are focal points of this competitive market. Work-from-home and remote learning have seen a significant increase in the demand for consumer models and gaming models due to COVID-19. Realtek continues to offer related solutions, and the response from customers has been highly positive. For notebook and desktop applications, Realtek offers a DisplayPort to VGA Video Translator, and a DisplayPort to HDMI Video Translator, that have been widely adopted by tier-one and tier-two brands. Many devices such as notebook computers, mobile phones, and the Apple iPad Pro now use USB Type-C for transferring video, data, and power. This raises demand for Type-C peripheral products. Also impacted by COVID-19, the demand for laptops and PC peripheral accessories went up significantly in 2020 due to the need for work-from-home and remote learning. Realtek led the release of Integrated LCD Monitor Controllers with the USB Type-C Interface, and various video interface translators such as USB Type-C to VGA and USB Type-C to HDMI, as well as highly integrated DisplayPort video hub ICs. Customers have responded positively.

Fierce competition among suppliers of LCD TV Controllers in recent years has led key suppliers to gradually downsize, merge, or leave the market. Realtek, however, continues to develop new products, including Smart Connected LCD TV Controller Chips that support UHD (resolution of 3,840 x 2,160), LCD TV Controller Chips that support UHD 60 Hz/120 Hz Frame Rate Conversion, as well as a new generation of Integrated 4K Smart LCD TV Controllers that support HDR. 8K TV was previously expected to take a big step in 2020. Affected by the COVID-19 and the delay of the Tokyo Olympics, 8K TV sales were limited in 2020. However, the economic threshold of 8K panels has fallen more than expected. Realtek provides an 8K TV decoder solution for customers to have a seamless transition to 8K TV without changing the original TV architecture, and more competitive products for LCD television manufacturers

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(2) Industrial Upstream, Midstream and Downstream Relationships

The IC manufacturing industry can be divided into upstream IC design and design services companies, midstream IC chip manufacturers, and downstream IC packaging and testing suppliers. IC design firms typically engage in design and sale of their own products or commissioned designs for other firms. Within the supply chain, they are knowledge intensive. Before the final product is completed, however, photo mask tooling, wafer fabrication, and product packaging and testing are needed. Generally, design firms contract external manufacturers to support these production and manufacturing processes.

3. R&D Development

(1) R&D Expenditures in the Past Two Years

		Unit: NT$thousands	Unit: NT$thousands
Year	Revenues	R&D Expenditure	s Ratio(%)
2019	60,744,006	15,535,505	25.58
2020	77,759,470	19,054,888	24.50

(2) Products Successfully Developing In the Past Year

Communications Network Products:

PCIe 2.5GBASE-T Single-Chip Programmable Ethernet Controller
USB3.2 Gen1 2.5GBASE-T Single-Chip Programmable Ethernet Controller
USB3.2 Gen1 2.5GBASE-T Single-Chip Ethernet Controller
USB3.2 Gen 2 to PCIe 3.0x2 NVMe and SATA Dual Protocol Storage Bridge Controller
USB3.2 Gen 2 to PCIe 3.0x2 NVMe and SATA Dual Protocol Storage Bridge Controller with PD3.0
100BASE-T1 Automotive Ethernet PHY
100/1000BASE-T1 Dual-Mode Automotive Ethernet PHY
Multi-Port Automotive Ethernet Switch Controller with Integrated 100BASE-T1
Multi-Port Automotive Ethernet Switch Controller with Integrated 100/1000BASE-T1
Single-Chip UHD STB SoC
802.11b/g/n 2T2R WLAN Single-Chip Controller with PCIe/USB2.0/SDIO3.0 Interfaces
802.11a/b/g/n/ac 2T2R WLAN and Bluetooth 5 Single-Chip Controller with PCIe/USB2.0/SDIO3.0 Interfaces
802.11a/b/g/n/ac 2T2R WLAN Single-Chip Controller with USB2.0 Interface
802.11a/b/g/n/ac 4T4R WLAN Single-Chip Controller with PCIe/ USB 3.0 Interfaces
Wireless LAN 802.11ax (Wi-Fi 6) Dual Band Access Point / Router Integrated SoC
Bluetooth 5 Dual Mode Transceiver Controller IC
Bluetooth 5 BLE SoC
Bluetooth 5 Audio SoC
GNSS Satellite Positioning IC

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8-Port 1GBASE-T Ethernet PHY
24-Port 1G/2.5G BASE-T + 4-Port 10G Ethernet Managed Switch Controller
48-Port 1GBASE-T + 6-Port 10GBASE-T Ethernet Managed Switch Controller
Single-Port 2.5G/5G/10GBASE-T Ethernet PHY
4-Port 2.5G/5G/10GBASE-T Ethernet PHY
Integrated Single-Chip xPON Network Gateway Controller
Integrated Single-Chip 10G xPON Network Gateway Processor
GPON Laser Driver
8-Port Integrated IEEE 802.3at PSE Controller
4-Port Integrated IEEE 802.3at PSE Controller
Long Distance 24-Port 100 BASE-T and 2-Port 1000BASE-T1 Ethernet Switch Controller
VDSL 35B Router Controller

Computer Peripheral Products:

HD-A 4-Channel Audio Codec with High Wattage Class-D Amplifier Supporting Speaker Protection
USB 2.0 Low Power Audio Codec with Equalizer
Mini DSP (Digital Signal Processor) for Voice Input Processing
SdW Audio Codec
Mobile Device Single-Chip Audio Codec with Power Amplifier
Hi-Fi Audio Codec with DSP for Mobile Devices
Low Power USB 2.0 Audio Codec
High Definition, High Efficiency Class-D Audio Amplifier with Equalizer and Speaker Protection for Handheld Mobile Devices
High Definition, High Efficiency Class-D Audio Amplifier with Multiband Equalizer and Dynamic Range Control for TV, Soundbar, and Sound System
SoundWire Interface High Definition Class-D Audio Amplifier with Built-in Audio Digital Signal Processing and Multi-Coil Speaker Driving Capability
Card Reader Controller with USB 2.0 Interface, Supporting SD 3.0 for Notebook PC
Card Reader Controller with USB 3.0 Interface, Supporting Intel NB Power Saving Specification
Card Reader with PCIe interface, supporting SD7.0
4-Port USB 3.0 Hub Controller
4-Port USB 3.1 Gen 2 Hub Controller
Type-C Controller
Embedded USB2.0/ USB3.0 High Definition Image Signal Processor Chip
Embedded USB2.0 and Windows Hello Face Authentication Enabling Image Signal Processor Chip
Low Power Embedded SPI to USB1.1/2.0 Interface Fingerprint Hardware Encryption Bridge Chip for MoH, Match-on-Host, Architecture
Low Power Embedded SPI to USB2.0 Interface Fingerprint Hardware Encryption and

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Matching Microcontroller Chip for MoC (Match-on-Chip) Architecture

Highly Integrated, Low Power Neural Network Artificial Intelligence Surveillance Camera SoC

Multimedia Products:

High Resolution Integrated 5K3K/4K2K LCD Display Controller Supporting HDR, DP1.4, HDMI2.0, HDCP2.2, and Display HDR
High Resolution Integrated 4K2K 144Hz Gaming LCD Display Controller Supporting Realtek Owl Sight Technology, DSC, HDR, DP1.4, HDMI2.1, and HDCP2.3
Integrated High Resolution Integrated 4K2K 144Hz/QHD165Hz Gaming LCD Display Controller Supporting Realtek Owl Sight Technology, DSC, HDR, DP1.4, HDMI2.0, and HDCP2.3
DisplayPort to HDMI2.0 Translator
DisplayPort to HDMI2.1 Translator
USB Type-C to HDMI 2.0/VGA Translator
DisplayPort MST Hub Controller
High-End LCD TV Controller Chip
High-End Multimedia Digital/Analog LCD TV Controller Chip
High-End Connected Digital/Analog LCD TV Controller Chip
High-End UHD Smart Connected Digital/Analog LCD TV Controller Chip
High-End UHD HDR Smart Connected Digital/Analog LCD TV Controller Chip
High-End UHD HDR 60Hz/120Hz FRC Smart Connected Digital/Analog LCD TV Controller Chip
High-End UHD HDR 60Hz/120Hz FRC and New Generation 3D Surround Sound Smart Connected LCD TV Controller Chip
High-End 8K LCD TV Video Decoder and Processing Chip
New Generation High-End Full Function, Multi-Core UHD LCD TV Controller with AI PQ and AQ
Bridge IC for ‘Separated Type’ LCD TV

4. Long-Term and Short-Term Business Development Plan

(1) Short-Term Business Development Plan

i. Continue to use the Company’s innovation framework to lower chip capital costs, in order to ensure competitive prices and raise profit margins.
ii. Maintain existing market share while expanding the overall market by releasing new products and offering diverse sales combinations and distribution strategies.
iii. Take the needs of key customers into account when assisting them in the integration of product logistical support systems. Provide the best sales and marketing services to win customers’ trust and meet customer’s needs.
iv. Participate in international product evaluation to raise the exposure of new products and demonstrate product quality.

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(2) Long-Term Business Development Plan
i. Participate in formulating and promoting international standards to acquire related product and technical information in advance, thus accelerating Time-to-Market. Participating in the evaluation and selection of the test platforms for the standard organizations to make Realtek an industry benchmark in interoperability testing.
ii. For products with a high market share, stabilize the market share and quality of products while building a global service and technology network. For products with relatively low market share, actively develop new customers and expand new markets and sales channels to meet the goal of increasing overall market share.
iii. Regularly hold product release events and technical conferences in response to regional market needs. Directly speak with brand owners and discuss their future product needs, thus strengthening client relations.

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II. Marketplace and Production Overview

1. Market Analysis

(1) Major Product Sales Regions

Unit: NT$ thousands

Sales Region	2019		2020
	Sales Amount	Percentage	Sales Amount	Percentage
Taiwan	27,792,901	45.75%	34,965,916	44.97%
Asia	32,627,117	53.72%	42,521,571	54.68%
Other	323,988	0.53%	271,983	0.35%
Total	60,744,006	100.00%	77,759,470	100.00%

(2) Market Share

Realtek is one of the world’s leading IC suppliers. It designs and develops wired and wireless communications networks as well as various computer peripheral IC products and multimedia applications. According to IC Insights, in 2020 Realtek ranked 11th worldwide in terms of revenue among IC design companies without fabrication plants.

(3) Future Market Supply and Demand and Growth Characteristics

Since the outbreak of the COVID-19 in 2020, the entire semiconductor industry has experienced an imbalance between supply and demand and a serious shortage of production capacity. This has caused widespread supply shortages and prolonged delivery issues, making the communication between upstream and downstream more complicated.

Boosted by IoT and cloud services, many electronic goods, home electronics products, and transportation devices now have built-in Wi-Fi or Bluetooth. Examples include broadband devices like IP-STB, cable modems, and DSL, as well as consumer electronics products such as video game consoles, Blu-ray players, smart TVs, printers, refrigerators, air conditioners, voice-controlled smart speakers, cloud-based IP cameras, vacuum robots, drones, projectors, consumer and industrial robots, industrial controls, and automotive products. As more equipment is wirelessly connected, and as smart phones and cloud services become more widespread, the next wave of Wi-Fi and Bluetooth growth will come from hybrid applications involving IoT and AI. Furthermore, the increase in wireless connectivity speed will spur demand for heightened landline connectivity speed. AP router, switch, PON, cable modem, NAS, gaming PC, commercial PC will all see gradual upgrades to 2.5Gbps Ethernet. In addition, the Internet of Vehicles, and trends such as autonomous and electric vehicles, are significantly raising data stream bandwidth while boosting demand for lighter, lower energy devices, thereby making Ethernet the backbone of in-vehicle networking.

The OTT and network operator set-top box market will continue to grow. At the same time, the

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market for UHD televisions is rising and UHD HDR video content is becoming widespread. Demand for high-end Wi-Fi, such as 802.11ac 2T2R, 4T4R, and Wi-Fi 6 is quickly increasing, and more people want integrated smart-home products with voice controls. These changes are boosting demand for fast wireless connections and smart edge computing. Moreover, the network operator market is shifting towards a more open IP ecosystem that is boosting demand for IP OTT chips. Realtek is therefore developing highly integrated multimedia controllers with new features and a high cost-performance ratio. Used in conjunction with network communication chips, the controllers will offer a total solution that helps customers take advantage of opportunities in this market.

The IP camera is an important IoT element that combines remote and mobile access with AI and AI edge computing tools like facial recognition, gesture recognition, and voice/speech recognition. Other diverse functions now available include a new generation of H.265 Codec, a 360-degree camera, and 3D video techniques. Besides traditional security surveillance, emerging applications with strong potential include AI optical recognition, unmanned stores, delivery and storage systems, and other essential industry 4.0 tools.

The strong development of the gaming industry in recent years has breathed new life into the PC market. Gaming and high-end PCs maintain their growth where the high-end audio experience and value perception have become the selling points. To this end, Realtek has developed a new generation of audio codec with high voltage (+9V) Class- D amplifiers and speaker protection. These integrate embedded adaptive boost circuits with low power designs to help customers reduce external components and cut the size of the motherboard via a reduced rBOM. To satisfy the high audio quality requirements of gaming PCs, e.g., to meet the Hi-Fi audio specs (32bits/384KHz sample rate), Realtek combines strengths in software and hardware integration to develop audio technology that provides the best balance between a slim PC and a Hi- Fi audio application. In addition, voice applications are becoming common on the new generation of platforms among global PC brands. We expect that the requirement of intelligent voice for PC products will break away from the acoustic framework and use voice technology to enable many human-friendly applications. Realtek will continue to work on voice recognition and voice wake-up technology. Adding deep learning will improve interactions so that users enjoy more convenient voice controls in both their work and daily life. Realtek will be the best voice and audio integrated solution provider for the next-generation of computer products.

New specs and interface technologies, such as 4K2K, USB Type-C, HDMI 2.1, DP 1.4, HDR, WCG, and high-frame-rate gaming, are ushering in growth in the LCD monitor market. Lower overall costs are another key trend. Affected by COVID-19 in 2020, new lifestyles such as work-from-home and remote learning have increased the demand for consumer models and gaming models. We expect this demand trend will continue in the first half of 2021. In the 2021 NB/DT market, more video interface connectors are using digital interfaces. For example, there is increased demand for the DisplayPort to HDMI 2.0 interface controller and the high-end DisplayPort to HDMI 2.1 interface controller. As more notebooks and mobile phones adopt USB Type-C and Thunderbolt 4 interfaces, demand for Realtek’s external USB Type-C image

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translators is expected to increase dramatically. Demand for laptops and peripheral accessories products in 2021 will continue the trend seen in the second half of 2020. There is also expected to be robust demand for Realtek’s Single-Chip USB Type-C image translator.

Sales of LCD televisions in 2021 are expected to be at about the same level as those in 2020. Key growth will come from Central and South America, North America, China, and Southeast Asia. UHD/HDR TVs and Smart TVs have become mainstream products, and demand for 8K TVs will gradually grow in the market as the cost of components drops substantially. For Google-led Android TV, on one hand, manufacturers using AOSP (Android Open Source Project) are prompted to switch to the development of end devices using regular versions of Android TV. On the other hand, a new development platform, Reference Plus, has been launched to attract more OEMs. However, the COVID-19 is causing chip supply in 2020/2021 to not fully meet customer needs. Over the long-term, growth in the global LCD television market will continue. Realtek will promote its products in key markets while providing customers with comprehensive solutions.

(4) Competitive Strengths

i. Advanced Core Technologies: Realtek has excellent complementary Radio Frequency (RF), analog and mixed signal circuit design capacity, IC manufacturing knowledge, systems technology, and intellectual property. These factors contribute to higher product effectiveness and production yield, thus lowering costs.
ii. Strong Customer Base: Realtek’s customer base includes leading manufacturers of PCs, motherboards, network hardware, consumer electronics, and multimedia products. By offering high-value, high-capacity products with excellent economic benefits, Realtek endeavors to build long-term partnerships with customers.
iii. Excellent Cost-Benefit Returns and Customer-Oriented Products: Realtek is adept at developing products with high cost-benefit returns. By combining chip and system design, it provides customers with high-value system integration and helps them quickly release new products.
iv. Experienced R&D and Management Teams: Realtek’s R&D and management teams have extensive experience in the semiconductor industry. An excellent workplace environment and strong corporate culture attract talented technical and management staff.
(5) Future Advantageous and Disadvantageous Factors
i. Advantageous Factors:
- (a) Ahead of domestic peers in the release of many communications network, computer peripheral, and multimedia IC products. Competitive prices. Realtek will continue to develop advanced core technologies to help increase product yield and decrease production costs.
- (b) Realtek maintains good relations with wafer foundries, which promotes a stable supply of raw materials and steady raw material costs.
- (c) Active client support, including the best sales and marketing services. These factors

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support a strong customer base.

(d) Experienced R&D and management teams with decision-making authority combined with a corporate culture of mutual support attract talented technical staff.
ii. Disadvantageous Factors
Fierce competition in a short product life-cycle market. Failure to quickly release new products would lead to a loss of market share, thereby impacting profits.
iii. Countermeasures:
(a) Proactively invest in new product development to timely release new products and gain market share.
(b) Proactively improve existing products. Reduce costs or increase product added value by yield improvement and performance enhancement.
(c) Offer comprehensive product services or jointly develop new products with customers to foster win-win situations.

2. Main Applications for Major Products and Production Process

(1) Main Applications
i. Communications Network Products: routers, switches, home gateways, OTT boxes, Wi-Fi applications, smart-home appliances, game consoles, security cameras, etc.
ii. Computer Peripheral Products: Desktop computers, notebook computers, card readers, etc. iii. Consumer Electronics Products: GPS, mobile electronic devices, mobile phones, tablet computers, etc.
iv. Multimedia Products: LCD monitors, multimedia video translators, smart HD TVs, etc.
(2) Production Process

Realtek primarily engages in product design; it commissions wafer foundries to do wafer manufacturing. Finished wafers are tested then sent to an assembly house for packaging. Packaged products then go through final testing.

3. Supply Status of Key Raw Materials

Wafers are Realtek’s primary raw materials. Main suppliers include TSMC, UMC, and other professional wafer foundries, which have a considerable level of quality and process capability. However, in 2021, due to the impact of factors such as COVID-19 and the trade relationship between the United States and China, the semiconductor supply chain remains in a supply-demand imbalance with supply lagging demand. To strive for production capacity, the company actively deepened collaboration with foundries, and has made mid- and long-term plans to secure stable supplies.

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4. Suppliers’ Name of purchase equal to or over 10% of the total purchase in any of the last two years Major suppliers in the last two years Unit: NT$ thousands	2021 first Quarter	Relation to the Company
		% of Total Purchase 29 11 20 40 100
		Amount 3,923,233 1,528,380 2,693,109 5,277,674 13,422,396
		Name A B C Other Total
	2020	Relation to the Company
		% of Total Purchase 29 15 20 36 100
		Amount 12,551,958 6,583,180 8,504,500 15,870,529 43,510,167
		Name A B D Other Total
	2019	Relation to the Company
		% of Total Purchase 31 19 16 34 100
		Amount 10,850,350 6,574,369 5,681,987 11,801,216 34,907,922
		Name A B C Other Total
		Item 1 2 3

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2021 first Quarter	Relation to the Company (note)	-88- There have been few changes in the Company's major customers in the last two years. Note: The chairmen of A and Realtek are second-degree relatives.
	% of Total Operating revenue 21 20 16 43 100
	Amount 4,890,537 4,747,878 3,638,534 10,063,797 23,340,746
	Name B D A Other Total Operating revenue
2020	Relation to the Company (note)
	% of Total Operating revenue 21 18 16 45 100
	Amount 16,074,247 14,175,131 12,212,600 35,297,492 77,759,470
	Name B D A Other Total Operating revenue
2019	Relation to the Company (note)
	% of Total Operating revenue 22 16 19 43 100
	Amount 13,368,262 10,014,670 11,392,557 25,968,517 60,744,006
	Name B D A Other Total Operating revenue
	Item 1 2 3

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5. Production Volume and Value in the Past Two Years

Unit: NT$ thousands

oduction Volume and Value	in the Past Two Years	in the Past Two Years	in the Past Two Years	Unit: NT$ thousands	Unit: NT$ thousands	Unit: NT$ thousands
Year Quantity & Value Major Product	2019			2020
	Capacity	Output	Value	Capacity	Output	Value
IC (thousandpieces)	�	2,223,987	33,317,918	�	2,674,003	43,263,645
Total	�	2,223,987	33,317,918	�	2,674,003	43,263,645

6. Sales Volume and Value in the Past Two Years

Unit: NT$ thousands

					Unit: NT$ thousands	Unit: NT$ thousands	Unit: NT$ thousands	Unit: NT$ thousands
Year Quantity & Value Major Product	2019				2020
	Domestic		Export		Domestic		Export
	Quantity	Sales	Quantity	Sales	Quantity	Sales	Quantity	Sales
IC (thousand pieces)	1,002,456	29,410,554	1,244,477	37,494,168	1,273,995	36,962,821	1,453,850	49,185,552
Others	�	47,973	�	72,823	�	37,696	�	133,489
Total	1,002,456	29,458,527	1,244,477	37,566,991	1,273,995	37,000,517	1,453,850	49,319,041

Note: Sales volume and value as shown above has not deducted sales returns and allowances.

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III. Employees

Employee breakdown over the past two calendar years and up until the date of the Report’s publication

rt’spublication	ublication
Year Num ber Research and Development Administration and Sales Production and Testing Total Average Age	Year Research and Development	2019 4,487	2020 5,253	As of March 31, 2021 5,356
	Administration and Sales	486	530	546
	Production and Testing	182	190	196
		5,155 34.63	5,973 34.90	6,098 35.11
Average Years of Service Educ ation Ph.D./Master’s University/College Degree High School/Vocational High School Degree		6.43 71.02%	6.40 70.96%	6.42 70.71%
	University/College Degree	26.71%	26.70%	26.96%
	High School/Vocational High School Degree	2.27%	2.34%	2.33%

Note: Data are based on the Company’s consolidated statements, including employees of the Company and its subsidiaries.

IV. Environmental Expenses

The Company did not incur any losses, penalties or liabilities due to environmental pollution during the previous calendar year or up until the date of the Report’s publication.
The Company passed ISO 14001 Environmental Management Systems certification on September 22, 2006. It was recertified on October 12, 2020.
The Company passed OHSAS18001 Occupational Health and Safety Management Systems certification on June 29, 2017. It was revised to ISO45001 certification on August 3, 2020.

V. Labor Relations

Summary of the Company’s employee benefits, continuing education, training, pension plan and
implementation results, as well as labor agreements and measures to uphold employee rights.

(1) Wages and Benefits

i. Performance appraisal twice a year for promotion/salary adjustment/bonus.
ii. R&D and patent application training and patent bonuses.
iii. Library of renowned domestic and foreign journals, papers and books, and guidance and incentive bonus system for publication.

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iv. R&D project participation based on professional suitability and personal choices.
v. Incentive system for the ‘Stimulus for Employee Brain Power Sharing Program’.
vi. Dual track career development to decide on going for R&D management based on ability and interest.
vii. Bonus and dividend system based on performance appraisal and comprehensive evaluation of R&D investment.
viii. Highly competitive salary and fringe benefit system.
ix. Profit sharing with the Company through salary adjustment, year-end bonus, and employee dividends based on personal performance.
x. New Year's Day and birthday gift vouchers, as well as a cafeteria benefit plan by the Welfare Committee.
xi. Paid annual health check-up to assist employees in implementing self-health care management.
xii. Major holiday bonuses, as well as wedding and funeral subsidies.
xiii. Professional and diverse intellectual lectures, club activities, ball games, and competition interactions held by the Employee Welfare Committee.
xiv. Employee Assistance Program providing psychological counseling, legal counseling, and stress relief massage services.
xv. Employee restaurants, cafes, and convenience stores for diversified dining services at a discount.
xvi. Employee group insurance to strengthen the work and life protection in addition to labor insurance and national health insurance.
xvii. Realtek gymnasium for exercise, reading, games, and health management.

(2) Realtek Educational Training, and Development

Talent is a key requirement for building intellectual power, blazing competitive new trails, and fostering sustainable operations. The Company’s greatest assets in these pursuits are the professionals of various fields who compose its workforce. In order to sustain competitiveness and develop new talent, the Company founded the Realtek Corporate University, which offers classes covering topics such as professional R&D, leadership development, organizational operations, and spontaneous learning. This initiative is part of the comprehensive education and training plans the Company offers to help all employees raise their capabilities to new heights.
i. New Employee Training Camps
Orientation for new employees focuses on teamwork, innovation and vitality to help new team members quickly adapt to the Company’s corporate lifestyle and culture.
ii. Professional R&D Training
Each year the Company holds more than 260 education and training courses for new R&D staff to quickly raise their professional capabilities. It invites R&D experts from Taiwan and overseas to share their knowledge and techniques. Employees can also join fully subsidized external training courses.
iii. Management and Leadership Training
Besides providing management training to employees based on their rank and role, the

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Company fully subsidizes training classes for employees at external institutions.

iv. Self-Study and Development
The Company offers open, diverse study environments and contents. It maintains awareness of employees’ learning and development while taking into account their professional needs and lifestyle aspirations. Diversity, timeliness, and convenience are distinguishing features of our planning.
v. Tailored Professional Development Plans
A combination of traditional and on-line classes offers flexible professional development plans tailored to the specific needs of every employee. Raising the R&D capabilities of each individual and team gives the Company a workforce with diverse professional knowledge.

(3) Pension System

The Company established pension plans and created a Supervisory Committee of Labor Retirement Reserve to manage pension payments for regular employees in accordance with the ‘Labor Standards Act’. From 1995, it appropriated labor pension reserve funds each month based on pension actuarial evaluations. From July 1, 2005, it utilized a defined contribution system for employees who are ROC nationals in accordance with the ‘Labor Pension Act’. At least 6% of the worker’s monthly wages are paid into his or her Individual Account of Labor Pension at the Bureau of Labor Insurance. Employees receive monthly retirement payments calculated based upon their individual account balance and other factors, or claim their pension in a lump-sum payment.

(4) Labor Agreements and Upholding Worker Rights
- i. The Company’s intranet offers a forum that gives employees immediate access to management.
- ii. The Company holds worker-employer meetings as a positive mechanism for communication.
- iii. The Company set up two-way communication channel (CEO mailbox) for employees to offer their opinions to management.
- iv. At regular departmental/unit meetings, employees can voice their opinions on problems. v. The Company has a sexual harassment prevention hotline and a prevention plan against unlawful violation to provide a safe work environment that puts employees’ minds at ease.
- vi. The Company has an Employee Care and Consultation Center to provide individual or team consultation services.
- vii. The Occupational Safety and Health Center is responsible for matters related to safe workplaces and health promotion.
The Company did not incur any losses due to labor disputes during the past calendar year and up until the date of publication of this Report.

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VI. Significant Agreements

Agreement Type Rental Agreements 4 Items	Signatory Hsinchu Science Park Bureau	Contract Validity Sep, 2010~Dec, 2022 Mar, 2014~Dec, 2027 Sep, 2019~Dec, 2038 Feb, 2020~Dec, 2039	Summary The lessee shall build a factory, warehouse, or laboratory or use the site for storage and delivery, loading and unloading, packaging, or repairs and maintenance.	Limitations The site must be used to build a factory, warehouse, or laboratory, or to conduct business- related tasks such as storage and delivery, loading and unloading, packaging, or repairs and maintenance.

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Financial Status, Operating Results and Status of Risk Management

I. Financial Status

Financial Status, Operating Results and Status of Risk Management I. Financial Status	Financial Status, Operating Results and Status of Risk Management I. Financial Status	Financial Status, Operating Results and Status of Risk Management I. Financial Status	Financial Status, Operating Results and Status of Risk Management I. Financial Status	Financial Status, Operating Results and Status of Risk Management I. Financial Status
Unit: NT$ thousands 2020 2019 Changes % of Changes Current Assets 66,811,913 64,289,591 2,522,322 3.92% Non-current assets 11,284,004 9,142,239 2,141,765 23.43% Total assets 78,095,917 73,431,830 4,664,087 6.35% Current liabilities 46,128,894 43,970,187 2,158,707 4.91% Non-current liabilities 2,498,277 2,232,959 265,318 11.88% Total Liabilities 48,627,171 46,203,146 2,424,025 5.25% Share capital 5,106,849 5,080,955 25,894 0.51% Capital surplus 2,122,008 2,736,854 (614,846) (22.47%) Retained earnings 23,786,273 19,618,212 4,168,061 21.25% Other equity (1,556,049) (217,036) (1,339,013) 616.95% Non-controlling interest 9,665 9,699 (34) (0.35%) Total Equity 29,468,746 27,228,684 2,240,062 8.23% Year Item
Year Item	2020	2019	Changes	% of Changes
Current Assets	66,811,913	64,289,591	2,522,322	3.92%
Non-current assets	11,284,004	9,142,239	2,141,765	23.43%
Total assets	78,095,917	73,431,830	4,664,087	6.35%
Current liabilities	46,128,894	43,970,187	2,158,707	4.91%
Non-current liabilities	2,498,277	2,232,959	265,318	11.88%
Total Liabilities	48,627,171	46,203,146	2,424,025	5.25%
Share capital	5,106,849	5,080,955	25,894	0.51%
Capital surplus	2,122,008	2,736,854	(614,846)	(22.47%)
Retained earnings	23,786,273	19,618,212	4,168,061	21.25%
Other equity	(1,556,049)	(217,036)	(1,339,013)	616.95%
Non-controlling interest	9,665	9,699	(34)	(0.35%)
Total Equity	29,468,746	27,228,684	2,240,062	8.23%

Analysis of Changes equal to or over 20%

1.Increase in Non-current assets: Mainly due to increase in property, plant, and equipment.

2.Decrease in Capital surplus: Mainly due to distribution by cash.

3.Increased in Retained earnings: Mainly due to increase in net income.

4.Decrease in Other equity: Mainly due to decrease in financial statements translation differences of foreign operations.

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II. Operational Results

Operational Results	Operational Results	Operational Results	Operational Results	Operational Results
Unit: NT$thousands
Year Item	2020	2019	Changes	% of Changes
Operating revenue	77,759,470	60,744,006	17,015,464	28.01%
Operating costs	(44,510,731)	(34,160,690)	(10,350,041)	30.30%
Gross profit	33,248,739	26,583,316	6,665,423	25.07%
Operating expenses	(24,609,176)	(20,252,451)	(4,356,725)	21.51%
Operating income	8,639,563	6,330,865	2,308,698	36.47%
Non-operating income and expenses	716,582	905,007	(188,425)	(20.82%)
Profit before income tax, net	9,356,145	7,235,872	2,120,273	29.30%
Income tax expense	(562,619)	(445,497)	(117,122)	26.29%
Net income for the year	8,793,526	6,790,375	2,003,151	29.50%

Analysis of Changes equal to or over 20%

Increase in Operating revenue and Operating costs: Mainly due to increase in sales.
Increase in Operating expenses: Mainly due to increase in research and development expenses.
Decrease in Non-operating income and expenses �� Mainly due to the decrease in interest income.
Increase in Profit before income tax, net: Mainly due to increase in operating income.

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III. Cash Flow

1. Analysis of the Change in Cash Flow in 2020

Unit: NT$ thousands

				Unit: NT$ thousands	Unit: NT$ thousands
The beginning of Cash Balance (1) 5,727,911	Net Cash Provided by Operating Activities (2) 15,440,209	Net Cash Used in Investing and Financing Activities (3) 13,871,760	The end of Cash Balance (1)+(2)-(3) 7,296,360	Remedyfor Cash Shortage
				Investment plan �	Financial leverage plan �

Analysis of the Change in Cash Flow:

(1) Operating activities: Net cash inflow is mainly due to increase in operating income.

(2) Investing activities: Net cash outflow is mainly due to acquisition of property, plant, equipment and intangible assets.
(3) Financing activities: Net cash inflow is mainly due to increase in short-term borrowings and the distribution of cash dividends.

2. Cash Flow Projection for Next Year: Not applicable.

IV. Impact on Financial and Business associated with Major Capital Expenditures in recent years: None.

V. Investment Policies in recent years, the reasons for losses and plans to improve for next year:

Our investment policies are based on strategic investments. The investment losses accounted for under the equity method in 2020 was approximately NT$30,980 thousand. We will continuously focus on strategic investment and prudently evaluate investment plans in the future.

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VI. Risk Items

The effect upon the profits (or losses) of interest and exchange rate fluctuations and changes in the inflation rate, and response measures to be taken in the future.
Our exposure to interest rate risks arises from time deposits or short-term loans with floating rates, which are not significant and are normally incurred to support our operating activities. The Realtek Group is a multinational group in the Electronics industry. Currently, the majority of our revenues are denominated in USD. Our operating expenses are incurred in several currencies, primarily in USD, NTD, and RMB. After offsetting assets and liabilities between the currencies, the natural hedge is used to reduce the foreign exchange risk. Inflation risk does not have a significant impact on the results of our operating activities.
The policy regarding high-risk investments, highly leveraged investments, loans to other parties, endorsements and guarantees, and derivatives transactions, the main reasons for the profits/losses generated thereby, and response measures to be taken in the future:

The Realtek Group adopts a conservative investment policy and does not engage in high-risk investments or highly leveraged investments.

The Realtek Group has formulated its procedures for Loaning Funds to Others, Procedures for Endorsements and Guarantees, and Procedures for Financial Derivatives Transactions in compliance with these Regulations. These procedures are aimed at improving operational performance and reducing financial risk.

Future R&D plans and expected R&D spending:
We will continuously research in chips regarding the area of communication networks, computer peripherals and multimedia. In addition, we will actively recruit outstanding R&D talents and invest in the best R&D resources and develop key technologies or obtain necessary licensed technology. The expected R&D spending for next year will be approximately NT$21.3 billion.
Impact on finance and business associated with changes in domestic and foreign regulations and laws, and corresponding reactions: None.
Impact on finance and business associated with new technology and industry changes, and corresponding reactions:
We pay attention to the trend of future technology at all times. We not only focus on the timely launch new products, but also continuously enhance product functions and technical specifications in line with market trends and customer needs in order to strength our competitiveness and increase our market share.
Impact on Company’s crisis management associated with changes in corporate image, and corresponding reactions:
Our corporate culture is ‘self-confidence and trust in people’. Integrity is the central core of our corporate culture. We will maintain our good standing according to our corporate culture.
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Risks and expected benefits associated with facility expansion, and corresponding reactions: In order to meet the needs of future growth and operating development, the board of directors has resolved to build and purchase factory & office buildings and a parking garage. Currently, there are no known risks associated with this plan.
Risks associated with Purchase and sales Concentration and corresponding reactions: The Company’s raw material is wafer. We have maintained a good cooperative relationship with foundries. For wafer purchases, we have not concentrated on a single foundry. Moreover, we also have not concentrated on a single customer and the collection period is implemented in accordance with company policies and there is no abnormal situation.
Impact and risks to the Company associated with significant transfer of shares by the Company’s Directors and major Shareholders who own 10% or more of the Company’s outstanding shares, and corresponding reactions: None.
Impact to the Company associated with change in management, and corresponding reactions: None.
Litigious and non-litigious matters:
The company is currently in major litigation, non-litigation, or administrative disputes �
(1) In 2020, DivX, LLC brought actions for patent infringement in United States International Trade Commission and United States District Court of Delaware against the Company’s IC products. The cases are still pending, and the Company is unable to comment on the outcome of the cases.

(2) In 2020, KONINKLIJKE PHILIPS N.V. and PHILIPS NORTH AMERICA LLC brought actions for patent infringement in United States International Trade Commission and United States District Court of Delaware against the Company’s IC products. The cases are still pending, and the Company is unable to comment on the outcome of the cases.

13. Disclosure of Information Security Risks

‘Information security is everyone's responsibility’. In order to protect the security of information assets, including personnel, equipment, systems, information, raw data, and networks, etc., from disclosure, destruction, or loss by external threats or internal personnel abnormal operations, we ensure continuous improvement of risk management, continuous strengthening of governance strategies, personnel training, assessment and review, and information security. Our vision is to create a solid, secure, and reliable enterprise digital environment, and provide a solid foundation for the sustainable operation of said enterprise. The following describes the specific requirements:

Governance Strategy

In order to implement and improve information security, the company formed an Information Security Steering Committee (hereafter referred to as the ISSC). The chairman of the ISSC is the Chief Information Security Officer (CISO) of company. The first-level supervisors of each unit are ex-officio members. A regular ISSC meeting is held every year, and intermediate meetings are held on a case-by-case basis as events occur. The

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mission of the ISSC is to formulate security policies, comprehensively review and supervise the execution of security policies, continuously improve the capabilities of information security protection, and reduce information security risks. The meeting minutes are required to be submitted to the board of directors, and the main items are listed in the company's annual report.

Information Security Organization

The Company has created a Chief Information Security Officer (CISO) position. There are 5 teams under the CISO’s jurisdiction: product development and security platform team, industrial network security team, IT security technology team, information security audit team, information security education and training team, to implement security policy and employee education and training, and to strengthen the security management of various information assets to ensure its confidentiality, integrity, and availability.

The ISSC refers to the product development security and network security committee, industrial network data security review committee, IT security resources and technology committee, audits committee, and the defect review and improvement committee. It provides cross-function information security notices, is responsible for security policy review, and promotes information security management.

Employee Training

The information security awareness of enterprise members is the cornerstone of company information security. Over the years, through internal training, members of all functions have become familiar with security related courses. In order to improve the information security DNA, Realtek encourages employees to take the necessary security certification exams, and gives priority to recruiting new personnel who pass the certification exams. An online education system has also been introduced to enable corporate members to more efficiently learn the required security courses. The system also provides unit testing to aid learning. The visibility of high-level managers to the training results is greatly improved by quantifying the learning results, and integrated reports are automatically generated by the system. This enables easy integration of the learning achievements into the KPI assessment standards.

Assessment & Review

The core of information security management is risk management. In order to construct an intelligent, realtime information security management system, Realtek collects and examines network data flow for anomaly detection and pattern analysis, software updates, and other information gathered by the hardware and software systems of network equipment. Through automation, visualization, and quantifiable control systems, it lays a solid foundation for standard operating procedures for early warning, continuous monitoring, notification of contingency, and assistance with improvement. This system can fully provide required information for event analysis before, during, and after the event.

For accurate quantification, all incidents are marked with severity levels and corresponding scores, and event points will trigger the intelligent system to take action. Relevant personnel are notified in real time and automatically log in to the incident management system. The managers can handle the system from multiple angles through the security management system, which can be used as the basis for future evaluation and assessment of security risks.

Information Security Policy

Security threats are ubiquitous, with countless Internet viruses, Trojan horses, spyware, ransomware, blocking attacks, social engineering, and more. In recent years, due to the rapid development of network

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connections and bandwidth, coupled with the explosive amount of encrypted data transmission, the huge information flow has prompted the information security system to combine the security framework and corresponding measures to be more effective in providing complete and comprehensive security protection.

a. Front-end users: Front-end users must comply with the security policy, operating system regulations, and domain policy defined by company. Front-end users also need to execute computer system updates to effectively block computer viruses, Trojan horses, and malicious programs, providing the first line of Security protection.
b. Enterprise data center: Enterprise data centers must adopt new generation firewalls to filter encrypted data effectively and instantly, and manage traffic by application type. The firewalls also have to provide the necessary information for the security management system to facilitate automated analysis.
c. Centralization of confidential information: Important confidential information of the company should be stored centralized in specific areas. The latest information security technology should be integrated to manage and monitor access to confidential information. In cases where the confidential information has to be stored out of the specific area, attention should be paid to the protection and management of the access and delivery of the data.
d. Data backup management: Adopt advanced backup system to carry out full backup, incremental backup, off-site, and offline backup for important data according to various timing and management plans. All off-line and off-site backups should be encrypted, and regularly restored to ensure their recoverability.
e. Information Security Management System: Information Security Management System (ISMS) integrates the massive network traffic information of the enterprise, various antivirus systems, antihacking systems, and other system logs. The system logs of irregular health check scanning and penetration testing are processed by big data analysis system. The results are classified and presented to different management members according to different aspects to achieve the goals of information classification, risk classification, and management stratification. Therefore, Realtek can reduce the impact of security threats on corporate operations.

Information Security Risks & Countermeasures

In order to improve the protection capability of information security, Realtek identified information security risks, individually proposed countermeasures, and regularly reviewed their effectiveness.

Identified Information Security Risks	Explanation of Impact Assessment	Response Measure	Performance Management
Personal computer account and password security	Prevent the deliberate theft of trade secrets	Changing the personal computer boot (and e- mail) password regularly.	Regular changing of the password and requiring password of a certain strength.
Information security	Requests to access information systems must go through a formal application process and are logged.	An authorization application access was established for work- related information.	Electronic application for permission by the applicant’s supervisor and the competent unit.
Computer virus protection	Computer viruses are constantly evolving and ransom-ware is difficult to guard against.	The Virus definition files are regularly updated and pushed out to personal computers by the system automatically.	Improve the security of information on personal computers.

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Network administration safety	Maintain the firewall to protect against malicious attacks.	Update firmware and backup configuration regularly.	Improve the quality of data transmission through the network.
Safety of external network access	Prevent and redirect access to malicious domains and IP addresses, restrict improper data transfers by malware, network phishing, and Command & Control (C&C) of zombie networks.	Adopt Enterprise Threat Protector (ETP) mechanism.	Strengthen access security for external networks.

VII. Other Material Events: None.

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100%	Bluocean Inc.	100%	Realtek Semiconductor (Malaysia) SDN. BHD.			20%	20%
100%		100%

	Talent Eagle Enterprise Inc.		Ubilinx Technology Inc.
100%		100%

	Realsun Technology Corporation		Circon Universal Inc.
100%		100%

	Leading Enterprises Limited		Realtek Semiconductor (Japan) Corp.
100%		100%

	Realking Investments Limited		Realtek Semiconductor (Hong Kong) Limited
100%		100%

	Amber Universal Inc.		Realtek Semiconductor (ShenZhen) Corp.					Suzhou PanKore Integrated Circuit Technology Co. Ltd.
100.00%		100%		100%		80% 80.95%
							80.95%

	Realtek Singapore Private Limited		Empsonic Enterprises Inc.		Reasil Microelectronics Corporation			RayMX Microelectronics Corp.
100%						19.05%

		100%
	Realtek Investment Singapore Private Limited		Cortina Network Systems (Shanghai) Co., Ltd.
100%		100%

	Realsun Investments Co., Ltd		Cortina Systems Taiwan Limited.
100%		100%

	Hung-wei Venture Capital Co., Ltd		Cortina Access, Inc.
66.67%		100%

	Bobitag Inc.		Realtek Viet Nam Co., Ltd.

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Main Business Activities	Investment holdings	Investment holdings	Investment holdings	Investment holdings	Investment holdings	Investment holdings	Investment holdings	Investment holdings	Investment holdings	ICs manufacturing, design, research, development, sales, and marketing	Manufacture and installation of computer equipment and wholesale, retail and related service of electronic materials and information/software	R&D and technical support	ICs design, sales and consultancy	Information services and technical support	R&D and technical support	R&D and technical support	R&D and technical support	ICs manufacturing, design, research, development, sales, and marketing	ICs manufacturing, design, research, development, sales, and marketing	Investment holdings	ICs manufacturing, design, research, development, sales, and marketing	R&D and information services	R&D and information services	R&D and technical support	R&D and technical support
Paid-in Capital	US$34,630,000	US$41,432,000	US$300,000	US$28,250,000	US$110,050,000	US$114,100,000	NT$280,000,000	NT$250,000,000	NT$293,929,850	NT$5,000,000	NT$28,783,650	NT$211,300,000	JY¥20,000,000	HK$1,500,000	US$5,000,000	US$1,650,000	US$28,000,000	CNY 26,250,000	CNY10,000,000	US$200,000,000	US$89,856,425	US$16,892	US$52,000,000	US$4,000,000	US$2,500,000
Place of Registration	British Virgin Islands	British Virgin Islands	Mauritius	Mauritius	Cayman Islands	Cayman Islands	Taiwan	Taiwan	Taiwan	Taiwan	Taiwan	Taiwan	Japan	Hong Kong	China	China	China	China	China	Singapore	Singapore	United States	United States	Vietnam	Malaysia
Date of Incorporation	1998.04	1998.10	2002.01	2002.06	2016.02	2016.02	1998.06	1999.12	2000.04	2004.12	2012.12	2015.04	2001.12	1999.09	2004.07	2015.04	2001.12	2018.12	2020.07	2016.08	2013.10	2015.04	2016.08	2018.09	2020.06
Company Name	Leading Enterprises Limited	Amber Universal Inc.	Circon Universal Inc.	Empsonic Enterprises Inc.	Bluocean Inc.	Talent Eagle Enterprise Inc.	Realsun Investments Co., Ltd	Hung-wei Venture Capital Co., Ltd	Realking Investments Limited	Realsun Technology Corporation	Bobitag Inc.	Cortina Systems Taiwan Limited.	Realtek Semiconductor (Japan) Corp.	Realtek Semiconductor (HK) Limited	Realtek Semiconductor (ShenZhen) Corp.	Cortina Network Systems (Shanghai) Co., Ltd.	Reasil Microelectronics Corporation	RayMX Microelectronics Corporation	Suzhou PanKore Integrated Circuit Technology Co., Ltd.	Realtek Investment Singapore Private Limited	Realtek Singapore Private Limited	Cortina Access, Inc.	Ubilinx Technology Inc.	Realtek Viet Nam Co., Ltd	Realtek Semiconductor (Malaysia) SDN. BHD.

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Division of Work Among the Affiliates	Not applicable	Not applicable	Not applicable	Not applicable	Not applicable	Not applicable	Not applicable	Not applicable	Not applicable	Not applicable	Not applicable	Provide research and development and technical services	Provide sales and technical services	Not applicable	Provide research and development and technical services	Provide research and development and technical services	Provide research and development and technical services	Not applicable	Not applicable	Not applicable	Provide consultancy and services	Provide consultancy and services	Provide research and development and technical services	Provide research and development and technical services
Main Business Activities	Investment holdings	Investment holdings	Investment holdings	Investment holdings	Investment holdings	Investment holdings	Investment holdings	Investment holdings	Investment holdings	ICs manufacturing, design, research, development, sales, and marketing	Manufacture and installation of computer equipment and wholesale, retail and related service of electronic materials and information/software	R&D and technical support	ICs design, sales and consultancy	Information services and technical support	R&D and technical support	R&D and technical support	R&D and technical support	ICs manufacturing, design, research, development, sales, and marketing	Investment holdings	ICs manufacturing, design, research, development, sales, and marketing	R&D and information services	R&D and information services	R&D and technical support	R&D and technical support
Company Name	Leading Enterprises Limited	Amber Universal Inc.	Circon Universal Inc.	Empsonic Enterprises Inc.	Bluocean Inc.	Talent Eagle Enterprise Inc.	Realsun Investments Co., Ltd	Hung-wei Venture Capital Co., Ltd	Realking Investments Limited	Realsun Technology Corporation	Bobitag Inc.	Cortina Systems Taiwan Limited.	Realtek Semiconductor (Japan) Corp.	Realtek Semiconductor (HK) Limited	Realtek Semiconductor (ShenZhen) Corp.	Cortina Network Systems (Shanghai) Co., Ltd.	Reasil Microelectronics Corporation	RayMX Microelectronics Corporation	Realtek Investment Singapore Private Limited	Realtek Singapore Private Limited	Cortina Access, Inc.	Ubilinx Technology Inc.	Realtek Viet Nam Co., Ltd.	Realtek Semiconductor (Malaysia) SDN. BHD.

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Shareholding (note 2)	% of Investment Holding	100%	100%	100%	100%	100%	100%	100%	100%	100%	100%	100%	100%	100%	100%	100%	100%
	Shares/ Investment Amount	34,630	41,432	110,050,000	114,100,000	28,000,000	28,000,000	28,000,000	28,000,000	25,000,000	25,000,000	25,000,000	25,000,000	29,392,985	29,392,985	29,392,985	29,392,985
	Name	Realtek Semiconductor Corp. (Representative: Yeh, Po-Len)	Realtek Semiconductor Corp. (Representative: Yeh, Po-Len)	Realtek Semiconductor Corp. (Representative: Yeh, Nan-Horng)	Realtek Semiconductor Corp. (Representative: Yeh, Nan-Horng)	Realtek Semiconductor Corp. (Representative: Huang, Yee-Wei)	Realtek Semiconductor Corp. (Representative: Huang, Yung-Fang)	Realtek Semiconductor Corp. (Representative: Chern, Kuo-Jong)	Realtek Semiconductor Corp. (Representative: Chiang, Ting-Chi)	Realtek Semiconductor Corp. (Representative: Yeh, Po-Len)	Realtek Semiconductor Corp. (Representative: Chiu, Sun-Chien)	Realtek Semiconductor Corp. (Representative: Huang, Yung-Fang)	Realtek Semiconductor Corp. (Representative: Chiang, Ting-Chi )	Realtek Semiconductor Corp. (Representative: Yeh, Po-Len)	Realtek Semiconductor Corp. (Representative: Chiu, Sun-Chien)	Realtek Semiconductor Corp. (Representative: Huang, Yung-Fang)	Realtek Semiconductor Corp. (Representative: Chiang, Ting-Chi�
	Title (note 1)	Director	Director	Director	Director	Chairman and President	Director	Director	Supervisor	Chairman	Director and President	Director	Supervisor	Chairman	Director and President	Director	Supervisor
	Company Name	Leading Enterprises Limited	Amber Universal Inc.	Bluocean Inc.	Talent Eagle Enterprise Inc.	Realsun Investments Co., Ltd				Hung-wei Venture Capital Co., Ltd				Realking Investments Limited

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% of Investment Holding	100%	100%	100%	100%	100%	-	-	-	-	100%	100%	100%	100%	-	-	-	-	-	-	-	-	-
Shares/ Investment Amount	500,000	500,000	500,000	500,000	300,000	-	-	-	-	2,825,000	2,825,000	2,825,000	HK$1,500,000	-	-	-	-	-	-	-	-	-
Name	Realtek Semiconductor Corp. (Representative: Yeh, Po-Len)	Realtek Semiconductor Corp. (Representative: Chiu, Sun-Chien)	Realtek Semiconductor Corp. (Representative: Huang, Yung-Fang�	Realtek Semiconductor Corp. (Representative: Chern, Kuo-Jong�	Leading Enterprises Limited (Representative: Yeh, Po- Len)	Cheng, Shu-Chien	Chiu, Sun-Chien	Tung Nien-Tsu	Chiang, Ting-Chi	Realtek Singapore Private Limited (Representative: Huang, Yung-Fang)	Realtek Singapore Private Limited (Representative: Yen, Kuang-Yu)	Realtek Singapore Private Limited (Representative: Lin, Tsung-Ming)	Amber Universal Inc. (Representative: Yeh, Po-Len)	Lin, Ying-Hsi	Chern, Kuo-Jong	Chiang, Ting-Chi	Chen, Chin	Lin, Yung-Chieh	Yeh, Nan-Horng	Yeh, Ta-Hsun	Chiou, Mhu-Hsiu	Chern, Kuo-Jong
Title (note 1)	Chairman	Director	Director	Supervisor	Director	Director and President	Director	Director	Supervisor	Chairman	Director	Director	Director	Director	Director and President	Director	Director	Director	Chairman	Director and President	Director	Supervisor
Company Name	Realsun Technology Corporation				Circon Universal Inc.	Realtek Semiconductor (Japan) Corp.				Empsonic Enterprises Inc.			Realtek Semiconductor (Hong Kong) Limited		Realtek Semiconductor (ShenZhen) Corp.	Ubilinx Technology Inc.			Reasil Microelectronics Corporation

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% of Investment Holding	66.67%	66.67%	66.67%	0	-	-	-	-	-	-	-	-	-	-	-	100%	100%	100%	100%
Shares/ Investment Amount	1,918,910	1,918,910	1,918,910	0	-	-	-	-	-	-	-	-	-	-	-	21,130,000	21,130,000	21,130,000	21,130,000
Name	Realtek Semiconductor Corp. (Representative: Chiang, Ting-Chi)	Realtek Semiconductor Corp. (Representative: Lin, Yung-Chieh)	Realtek Semiconductor Corp. (Representative: Chan, Te-Chuan)	Guo, Yu-zhi	Huang, Yung-Fang	Yen, Kuang-Yu	Lin, Tsung-Ming	Huang, Yung-Fang	Yen, Kuang-Yu	Chang, Jr-Neng	Huang, Yung-Fang	Yen, Kuang-Yu	Zeineddine Chair	Zeineddine Chair	Ke, Chieh-Yuan	Realtek Singapore Private Limited (Representative: Huang, Yung-Fang)	Realtek Singapore Private Limited (Representative: Yen, Kuang-Yu)	Realtek Singapore Private Limited (Representative: Hsiao, Wang-Mien )	Realtek Singapore Private Limited (Representative: Lin, Yung-Chieh )
Title (note 1)	Chairman and President	Director	Director	Supervisor	Chairman	Director and President	Director	Chairman	Director and President	Director	Director	Director	Director	Director	Supervisor	Chairman	Director	Director	Supervisor
Company Name	Bobitag Inc.				Realtek Singapore Private Limited			Realtek Investment Singapore Private Limited			Cortina Access, Inc.			Cortina Network Systems (Shanghai) Co., Ltd.		Cortina Systems Taiwan Limited.

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% of Investment Holding	-	-	-	-	-	-	-	-	-	-	-									-	-
Shares/ Investment Amount	-	-	-	-	-	-	-	-	-	-	-									-	-
Name	Soh Wei Kwek	Kao Shu-yi	Nguyen Phuoc Vinh Thang	Tsai, Jon-Jinn	Zhu, Ying-hui	Su, Chu-Ting	Chen, Chih-tung	Chien, Chih-Ching	Wu, Wen-Bin	Lin, Yung-Chieh	Liu, Shuan-Ta	Huang, Yung-Fang	Peng, Zuo-Hui	Yen, Kuang-Yu	Shen, Jia-Qing	Liu Yong	Lin, Hou-Wei	Li, Chao-Ming	Lu, Shiu-Hung	Chang Yi-Shu	Fu, Ying-Chi
Title (note 1)	Director	Director	Director	Chairman	Director and President	Director	Director	Director	Supervisor	Supervisor	Supervisor	Chairman	Director and President	Director	Director	Director	Director	Director	Director	Director	Director
Company Name	Realtek Viet Nam Co., Ltd.			RayMX Microelectronics Corporation								Suzhou PanKore Integrated Circuit Technology Co., Ltd.								Realtek Semiconductor (Malaysia) SDN. BHD.

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Company Name Title (note 1) Name Shareholding (note 2) Shares/ Investment Amount % of Investment Holding Director Lau Lai Li - - Note 1: If the affiliates are foreign companies, list the same positions as domestic. Note 2: The shares are the total of shareholdings directly or indirectly held; if the affiliates do not issue shares, the shareholdings are presented by the investment amount. Note 3: The above information up to March 31, 2021	Company Name Title (note 1) Name Shareholding (note 2) Shares/ Investment Amount % of Investment Holding Director Lau Lai Li - - Note 1: If the affiliates are foreign companies, list the same positions as domestic. Note 2: The shares are the total of shareholdings directly or indirectly held; if the affiliates do not issue shares, the shareholdings are presented by the investment amount. Note 3: The above information up to March 31, 2021	Company Name Title (note 1) Name Shareholding (note 2) Shares/ Investment Amount % of Investment Holding Director Lau Lai Li - - Note 1: If the affiliates are foreign companies, list the same positions as domestic. Note 2: The shares are the total of shareholdings directly or indirectly held; if the affiliates do not issue shares, the shareholdings are presented by the investment amount. Note 3: The above information up to March 31, 2021
Shareholding (note 2)	% of Investment Holding	-
	Shares/ Investment Amount	-
	Name	Lau Lai Li
	Title (note 1)	Director
	Company Name

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-110- Company Paid in Capital Assets Liabilities Equity Operating revenue Operation Income Net Income for the year (After Taxes) EPS (After Taxes) Leading Enterprises Limited 14,080,956 14,261,272 1,021,847 13,239,425 0 (28,687) 671,282 - Amber Universal Inc. 4,487,621 3,378,780 11,404 3,367,376 0 (11,433) 51,962 - Bluocean Inc. 3,137,305 4,998,324 1,628,388 3,369,936 0 (2,801) 76,184 - Talent Eagle Enterprise Inc. 3,252,763 8,016,776 5,854,390 2,162,386 0 (5,602) (295,459) - Hung-wei Venture Capital Co., Ltd 250,000 637,499 4,553 632,946 0 (3,056) 150,791 6.03 Realsun Investments Co., Ltd 280,000 619,625 115 619,510 0 (102) 5,145 0.18 Realking Investments Limited 293,930 290,298 62 290,236 0 (46) (7,428) (0.25) Realsun Technology Corporation 5,000 5,118 0 5,118 0 (1) 57 0.11 Realtek Semiconductor (Japan) Corp. 5,530 5,758 3,481 2,277 63,193 (1,338) (104) - Circon Universial Inc. 8,552 7,663 0 7,663 0 (74) (58) - Empsonic Enterprises Inc. 805,351 1,570,760 0 1,570,760 0 (40) 121,713 - Reasil Microelectronics Corporation 798,224 2,106,503 540,283 1,566,220 2,125,111 151,584 111,152 - Ubilinx Technology, Inc 1,482,416 122,993 145,005 (22,012) 0 (414,002) (418,782) - Realtek Semiconductor (Hong Kong) Limited 5,516 1,082 0 1,082 0 (21) (21) - Realtek Semiconductor (ShenZhen) Corp. 142,540 374,415 103,803 270,612 397,051 22,182 13,415 - Bobitag Inc. 28,784 29,118 124 28,994 0 (1) 146 0.05 Realtek Singapore Private Limited 3,471,467 19,639,886 8,485,237 11,154,649 20,791,170 5,691,729 5,879,387 - Realtek Investment Singapore Private Limited 5,701,600 6,275,138 123 6,275,015 0 (325) 130,511 - Cortina Access, Inc. 374,828 777,335 58,700 718,635 204,759 13,395 21,968 - Cortina Network Systems (Shanghai) Co., Ltd. 102,629 189,497 27,343 162,154 104,435 4,520 (2,338) - Cortina Systems Taiwan Limited. 211,300 91,262 13,952 77,310 112,384 6,361 791 0.04 Realtek Viet Nam Co., Ltd 114,032 100,874 12,085 88,789 0 (16,151) (17,359) - RayMX Microelectronics Corporation 114,428 430,603 344,495 86,108 416,519 (20,015) 137 - Suzhou PanKore Integrated Circuit Technology Co., Ltd. 43,592 36,125 10,755 25,370 0 (17,915) (17,915) - Realtek Semiconductor (Malaysia) SDN. BHD. 74,144 65,948 1,034 64,914 0 (9,025) (9,150) -	-110- Company Paid in Capital Assets Liabilities Equity Operating revenue Operation Income Net Income for the year (After Taxes) EPS (After Taxes) Leading Enterprises Limited 14,080,956 14,261,272 1,021,847 13,239,425 0 (28,687) 671,282 - Amber Universal Inc. 4,487,621 3,378,780 11,404 3,367,376 0 (11,433) 51,962 - Bluocean Inc. 3,137,305 4,998,324 1,628,388 3,369,936 0 (2,801) 76,184 - Talent Eagle Enterprise Inc. 3,252,763 8,016,776 5,854,390 2,162,386 0 (5,602) (295,459) - Hung-wei Venture Capital Co., Ltd 250,000 637,499 4,553 632,946 0 (3,056) 150,791 6.03 Realsun Investments Co., Ltd 280,000 619,625 115 619,510 0 (102) 5,145 0.18 Realking Investments Limited 293,930 290,298 62 290,236 0 (46) (7,428) (0.25) Realsun Technology Corporation 5,000 5,118 0 5,118 0 (1) 57 0.11 Realtek Semiconductor (Japan) Corp. 5,530 5,758 3,481 2,277 63,193 (1,338) (104) - Circon Universial Inc. 8,552 7,663 0 7,663 0 (74) (58) - Empsonic Enterprises Inc. 805,351 1,570,760 0 1,570,760 0 (40) 121,713 - Reasil Microelectronics Corporation 798,224 2,106,503 540,283 1,566,220 2,125,111 151,584 111,152 - Ubilinx Technology, Inc 1,482,416 122,993 145,005 (22,012) 0 (414,002) (418,782) - Realtek Semiconductor (Hong Kong) Limited 5,516 1,082 0 1,082 0 (21) (21) - Realtek Semiconductor (ShenZhen) Corp. 142,540 374,415 103,803 270,612 397,051 22,182 13,415 - Bobitag Inc. 28,784 29,118 124 28,994 0 (1) 146 0.05 Realtek Singapore Private Limited 3,471,467 19,639,886 8,485,237 11,154,649 20,791,170 5,691,729 5,879,387 - Realtek Investment Singapore Private Limited 5,701,600 6,275,138 123 6,275,015 0 (325) 130,511 - Cortina Access, Inc. 374,828 777,335 58,700 718,635 204,759 13,395 21,968 - Cortina Network Systems (Shanghai) Co., Ltd. 102,629 189,497 27,343 162,154 104,435 4,520 (2,338) - Cortina Systems Taiwan Limited. 211,300 91,262 13,952 77,310 112,384 6,361 791 0.04 Realtek Viet Nam Co., Ltd 114,032 100,874 12,085 88,789 0 (16,151) (17,359) - RayMX Microelectronics Corporation 114,428 430,603 344,495 86,108 416,519 (20,015) 137 - Suzhou PanKore Integrated Circuit Technology Co., Ltd. 43,592 36,125 10,755 25,370 0 (17,915) (17,915) - Realtek Semiconductor (Malaysia) SDN. BHD. 74,144 65,948 1,034 64,914 0 (9,025) (9,150) -	-110- Company Paid in Capital Assets Liabilities Equity Operating revenue Operation Income Net Income for the year (After Taxes) EPS (After Taxes) Leading Enterprises Limited 14,080,956 14,261,272 1,021,847 13,239,425 0 (28,687) 671,282 - Amber Universal Inc. 4,487,621 3,378,780 11,404 3,367,376 0 (11,433) 51,962 - Bluocean Inc. 3,137,305 4,998,324 1,628,388 3,369,936 0 (2,801) 76,184 - Talent Eagle Enterprise Inc. 3,252,763 8,016,776 5,854,390 2,162,386 0 (5,602) (295,459) - Hung-wei Venture Capital Co., Ltd 250,000 637,499 4,553 632,946 0 (3,056) 150,791 6.03 Realsun Investments Co., Ltd 280,000 619,625 115 619,510 0 (102) 5,145 0.18 Realking Investments Limited 293,930 290,298 62 290,236 0 (46) (7,428) (0.25) Realsun Technology Corporation 5,000 5,118 0 5,118 0 (1) 57 0.11 Realtek Semiconductor (Japan) Corp. 5,530 5,758 3,481 2,277 63,193 (1,338) (104) - Circon Universial Inc. 8,552 7,663 0 7,663 0 (74) (58) - Empsonic Enterprises Inc. 805,351 1,570,760 0 1,570,760 0 (40) 121,713 - Reasil Microelectronics Corporation 798,224 2,106,503 540,283 1,566,220 2,125,111 151,584 111,152 - Ubilinx Technology, Inc 1,482,416 122,993 145,005 (22,012) 0 (414,002) (418,782) - Realtek Semiconductor (Hong Kong) Limited 5,516 1,082 0 1,082 0 (21) (21) - Realtek Semiconductor (ShenZhen) Corp. 142,540 374,415 103,803 270,612 397,051 22,182 13,415 - Bobitag Inc. 28,784 29,118 124 28,994 0 (1) 146 0.05 Realtek Singapore Private Limited 3,471,467 19,639,886 8,485,237 11,154,649 20,791,170 5,691,729 5,879,387 - Realtek Investment Singapore Private Limited 5,701,600 6,275,138 123 6,275,015 0 (325) 130,511 - Cortina Access, Inc. 374,828 777,335 58,700 718,635 204,759 13,395 21,968 - Cortina Network Systems (Shanghai) Co., Ltd. 102,629 189,497 27,343 162,154 104,435 4,520 (2,338) - Cortina Systems Taiwan Limited. 211,300 91,262 13,952 77,310 112,384 6,361 791 0.04 Realtek Viet Nam Co., Ltd 114,032 100,874 12,085 88,789 0 (16,151) (17,359) - RayMX Microelectronics Corporation 114,428 430,603 344,495 86,108 416,519 (20,015) 137 - Suzhou PanKore Integrated Circuit Technology Co., Ltd. 43,592 36,125 10,755 25,370 0 (17,915) (17,915) - Realtek Semiconductor (Malaysia) SDN. BHD. 74,144 65,948 1,034 64,914 0 (9,025) (9,150) -	-110- Company Paid in Capital Assets Liabilities Equity Operating revenue Operation Income Net Income for the year (After Taxes) EPS (After Taxes) Leading Enterprises Limited 14,080,956 14,261,272 1,021,847 13,239,425 0 (28,687) 671,282 - Amber Universal Inc. 4,487,621 3,378,780 11,404 3,367,376 0 (11,433) 51,962 - Bluocean Inc. 3,137,305 4,998,324 1,628,388 3,369,936 0 (2,801) 76,184 - Talent Eagle Enterprise Inc. 3,252,763 8,016,776 5,854,390 2,162,386 0 (5,602) (295,459) - Hung-wei Venture Capital Co., Ltd 250,000 637,499 4,553 632,946 0 (3,056) 150,791 6.03 Realsun Investments Co., Ltd 280,000 619,625 115 619,510 0 (102) 5,145 0.18 Realking Investments Limited 293,930 290,298 62 290,236 0 (46) (7,428) (0.25) Realsun Technology Corporation 5,000 5,118 0 5,118 0 (1) 57 0.11 Realtek Semiconductor (Japan) Corp. 5,530 5,758 3,481 2,277 63,193 (1,338) (104) - Circon Universial Inc. 8,552 7,663 0 7,663 0 (74) (58) - Empsonic Enterprises Inc. 805,351 1,570,760 0 1,570,760 0 (40) 121,713 - Reasil Microelectronics Corporation 798,224 2,106,503 540,283 1,566,220 2,125,111 151,584 111,152 - Ubilinx Technology, Inc 1,482,416 122,993 145,005 (22,012) 0 (414,002) (418,782) - Realtek Semiconductor (Hong Kong) Limited 5,516 1,082 0 1,082 0 (21) (21) - Realtek Semiconductor (ShenZhen) Corp. 142,540 374,415 103,803 270,612 397,051 22,182 13,415 - Bobitag Inc. 28,784 29,118 124 28,994 0 (1) 146 0.05 Realtek Singapore Private Limited 3,471,467 19,639,886 8,485,237 11,154,649 20,791,170 5,691,729 5,879,387 - Realtek Investment Singapore Private Limited 5,701,600 6,275,138 123 6,275,015 0 (325) 130,511 - Cortina Access, Inc. 374,828 777,335 58,700 718,635 204,759 13,395 21,968 - Cortina Network Systems (Shanghai) Co., Ltd. 102,629 189,497 27,343 162,154 104,435 4,520 (2,338) - Cortina Systems Taiwan Limited. 211,300 91,262 13,952 77,310 112,384 6,361 791 0.04 Realtek Viet Nam Co., Ltd 114,032 100,874 12,085 88,789 0 (16,151) (17,359) - RayMX Microelectronics Corporation 114,428 430,603 344,495 86,108 416,519 (20,015) 137 - Suzhou PanKore Integrated Circuit Technology Co., Ltd. 43,592 36,125 10,755 25,370 0 (17,915) (17,915) - Realtek Semiconductor (Malaysia) SDN. BHD. 74,144 65,948 1,034 64,914 0 (9,025) (9,150) -	-110- Company Paid in Capital Assets Liabilities Equity Operating revenue Operation Income Net Income for the year (After Taxes) EPS (After Taxes) Leading Enterprises Limited 14,080,956 14,261,272 1,021,847 13,239,425 0 (28,687) 671,282 - Amber Universal Inc. 4,487,621 3,378,780 11,404 3,367,376 0 (11,433) 51,962 - Bluocean Inc. 3,137,305 4,998,324 1,628,388 3,369,936 0 (2,801) 76,184 - Talent Eagle Enterprise Inc. 3,252,763 8,016,776 5,854,390 2,162,386 0 (5,602) (295,459) - Hung-wei Venture Capital Co., Ltd 250,000 637,499 4,553 632,946 0 (3,056) 150,791 6.03 Realsun Investments Co., Ltd 280,000 619,625 115 619,510 0 (102) 5,145 0.18 Realking Investments Limited 293,930 290,298 62 290,236 0 (46) (7,428) (0.25) Realsun Technology Corporation 5,000 5,118 0 5,118 0 (1) 57 0.11 Realtek Semiconductor (Japan) Corp. 5,530 5,758 3,481 2,277 63,193 (1,338) (104) - Circon Universial Inc. 8,552 7,663 0 7,663 0 (74) (58) - Empsonic Enterprises Inc. 805,351 1,570,760 0 1,570,760 0 (40) 121,713 - Reasil Microelectronics Corporation 798,224 2,106,503 540,283 1,566,220 2,125,111 151,584 111,152 - Ubilinx Technology, Inc 1,482,416 122,993 145,005 (22,012) 0 (414,002) (418,782) - Realtek Semiconductor (Hong Kong) Limited 5,516 1,082 0 1,082 0 (21) (21) - Realtek Semiconductor (ShenZhen) Corp. 142,540 374,415 103,803 270,612 397,051 22,182 13,415 - Bobitag Inc. 28,784 29,118 124 28,994 0 (1) 146 0.05 Realtek Singapore Private Limited 3,471,467 19,639,886 8,485,237 11,154,649 20,791,170 5,691,729 5,879,387 - Realtek Investment Singapore Private Limited 5,701,600 6,275,138 123 6,275,015 0 (325) 130,511 - Cortina Access, Inc. 374,828 777,335 58,700 718,635 204,759 13,395 21,968 - Cortina Network Systems (Shanghai) Co., Ltd. 102,629 189,497 27,343 162,154 104,435 4,520 (2,338) - Cortina Systems Taiwan Limited. 211,300 91,262 13,952 77,310 112,384 6,361 791 0.04 Realtek Viet Nam Co., Ltd 114,032 100,874 12,085 88,789 0 (16,151) (17,359) - RayMX Microelectronics Corporation 114,428 430,603 344,495 86,108 416,519 (20,015) 137 - Suzhou PanKore Integrated Circuit Technology Co., Ltd. 43,592 36,125 10,755 25,370 0 (17,915) (17,915) - Realtek Semiconductor (Malaysia) SDN. BHD. 74,144 65,948 1,034 64,914 0 (9,025) (9,150) -	-110- Company Paid in Capital Assets Liabilities Equity Operating revenue Operation Income Net Income for the year (After Taxes) EPS (After Taxes) Leading Enterprises Limited 14,080,956 14,261,272 1,021,847 13,239,425 0 (28,687) 671,282 - Amber Universal Inc. 4,487,621 3,378,780 11,404 3,367,376 0 (11,433) 51,962 - Bluocean Inc. 3,137,305 4,998,324 1,628,388 3,369,936 0 (2,801) 76,184 - Talent Eagle Enterprise Inc. 3,252,763 8,016,776 5,854,390 2,162,386 0 (5,602) (295,459) - Hung-wei Venture Capital Co., Ltd 250,000 637,499 4,553 632,946 0 (3,056) 150,791 6.03 Realsun Investments Co., Ltd 280,000 619,625 115 619,510 0 (102) 5,145 0.18 Realking Investments Limited 293,930 290,298 62 290,236 0 (46) (7,428) (0.25) Realsun Technology Corporation 5,000 5,118 0 5,118 0 (1) 57 0.11 Realtek Semiconductor (Japan) Corp. 5,530 5,758 3,481 2,277 63,193 (1,338) (104) - Circon Universial Inc. 8,552 7,663 0 7,663 0 (74) (58) - Empsonic Enterprises Inc. 805,351 1,570,760 0 1,570,760 0 (40) 121,713 - Reasil Microelectronics Corporation 798,224 2,106,503 540,283 1,566,220 2,125,111 151,584 111,152 - Ubilinx Technology, Inc 1,482,416 122,993 145,005 (22,012) 0 (414,002) (418,782) - Realtek Semiconductor (Hong Kong) Limited 5,516 1,082 0 1,082 0 (21) (21) - Realtek Semiconductor (ShenZhen) Corp. 142,540 374,415 103,803 270,612 397,051 22,182 13,415 - Bobitag Inc. 28,784 29,118 124 28,994 0 (1) 146 0.05 Realtek Singapore Private Limited 3,471,467 19,639,886 8,485,237 11,154,649 20,791,170 5,691,729 5,879,387 - Realtek Investment Singapore Private Limited 5,701,600 6,275,138 123 6,275,015 0 (325) 130,511 - Cortina Access, Inc. 374,828 777,335 58,700 718,635 204,759 13,395 21,968 - Cortina Network Systems (Shanghai) Co., Ltd. 102,629 189,497 27,343 162,154 104,435 4,520 (2,338) - Cortina Systems Taiwan Limited. 211,300 91,262 13,952 77,310 112,384 6,361 791 0.04 Realtek Viet Nam Co., Ltd 114,032 100,874 12,085 88,789 0 (16,151) (17,359) - RayMX Microelectronics Corporation 114,428 430,603 344,495 86,108 416,519 (20,015) 137 - Suzhou PanKore Integrated Circuit Technology Co., Ltd. 43,592 36,125 10,755 25,370 0 (17,915) (17,915) - Realtek Semiconductor (Malaysia) SDN. BHD. 74,144 65,948 1,034 64,914 0 (9,025) (9,150) -	-110- Company Paid in Capital Assets Liabilities Equity Operating revenue Operation Income Net Income for the year (After Taxes) EPS (After Taxes) Leading Enterprises Limited 14,080,956 14,261,272 1,021,847 13,239,425 0 (28,687) 671,282 - Amber Universal Inc. 4,487,621 3,378,780 11,404 3,367,376 0 (11,433) 51,962 - Bluocean Inc. 3,137,305 4,998,324 1,628,388 3,369,936 0 (2,801) 76,184 - Talent Eagle Enterprise Inc. 3,252,763 8,016,776 5,854,390 2,162,386 0 (5,602) (295,459) - Hung-wei Venture Capital Co., Ltd 250,000 637,499 4,553 632,946 0 (3,056) 150,791 6.03 Realsun Investments Co., Ltd 280,000 619,625 115 619,510 0 (102) 5,145 0.18 Realking Investments Limited 293,930 290,298 62 290,236 0 (46) (7,428) (0.25) Realsun Technology Corporation 5,000 5,118 0 5,118 0 (1) 57 0.11 Realtek Semiconductor (Japan) Corp. 5,530 5,758 3,481 2,277 63,193 (1,338) (104) - Circon Universial Inc. 8,552 7,663 0 7,663 0 (74) (58) - Empsonic Enterprises Inc. 805,351 1,570,760 0 1,570,760 0 (40) 121,713 - Reasil Microelectronics Corporation 798,224 2,106,503 540,283 1,566,220 2,125,111 151,584 111,152 - Ubilinx Technology, Inc 1,482,416 122,993 145,005 (22,012) 0 (414,002) (418,782) - Realtek Semiconductor (Hong Kong) Limited 5,516 1,082 0 1,082 0 (21) (21) - Realtek Semiconductor (ShenZhen) Corp. 142,540 374,415 103,803 270,612 397,051 22,182 13,415 - Bobitag Inc. 28,784 29,118 124 28,994 0 (1) 146 0.05 Realtek Singapore Private Limited 3,471,467 19,639,886 8,485,237 11,154,649 20,791,170 5,691,729 5,879,387 - Realtek Investment Singapore Private Limited 5,701,600 6,275,138 123 6,275,015 0 (325) 130,511 - Cortina Access, Inc. 374,828 777,335 58,700 718,635 204,759 13,395 21,968 - Cortina Network Systems (Shanghai) Co., Ltd. 102,629 189,497 27,343 162,154 104,435 4,520 (2,338) - Cortina Systems Taiwan Limited. 211,300 91,262 13,952 77,310 112,384 6,361 791 0.04 Realtek Viet Nam Co., Ltd 114,032 100,874 12,085 88,789 0 (16,151) (17,359) - RayMX Microelectronics Corporation 114,428 430,603 344,495 86,108 416,519 (20,015) 137 - Suzhou PanKore Integrated Circuit Technology Co., Ltd. 43,592 36,125 10,755 25,370 0 (17,915) (17,915) - Realtek Semiconductor (Malaysia) SDN. BHD. 74,144 65,948 1,034 64,914 0 (9,025) (9,150) -	-110- Company Paid in Capital Assets Liabilities Equity Operating revenue Operation Income Net Income for the year (After Taxes) EPS (After Taxes) Leading Enterprises Limited 14,080,956 14,261,272 1,021,847 13,239,425 0 (28,687) 671,282 - Amber Universal Inc. 4,487,621 3,378,780 11,404 3,367,376 0 (11,433) 51,962 - Bluocean Inc. 3,137,305 4,998,324 1,628,388 3,369,936 0 (2,801) 76,184 - Talent Eagle Enterprise Inc. 3,252,763 8,016,776 5,854,390 2,162,386 0 (5,602) (295,459) - Hung-wei Venture Capital Co., Ltd 250,000 637,499 4,553 632,946 0 (3,056) 150,791 6.03 Realsun Investments Co., Ltd 280,000 619,625 115 619,510 0 (102) 5,145 0.18 Realking Investments Limited 293,930 290,298 62 290,236 0 (46) (7,428) (0.25) Realsun Technology Corporation 5,000 5,118 0 5,118 0 (1) 57 0.11 Realtek Semiconductor (Japan) Corp. 5,530 5,758 3,481 2,277 63,193 (1,338) (104) - Circon Universial Inc. 8,552 7,663 0 7,663 0 (74) (58) - Empsonic Enterprises Inc. 805,351 1,570,760 0 1,570,760 0 (40) 121,713 - Reasil Microelectronics Corporation 798,224 2,106,503 540,283 1,566,220 2,125,111 151,584 111,152 - Ubilinx Technology, Inc 1,482,416 122,993 145,005 (22,012) 0 (414,002) (418,782) - Realtek Semiconductor (Hong Kong) Limited 5,516 1,082 0 1,082 0 (21) (21) - Realtek Semiconductor (ShenZhen) Corp. 142,540 374,415 103,803 270,612 397,051 22,182 13,415 - Bobitag Inc. 28,784 29,118 124 28,994 0 (1) 146 0.05 Realtek Singapore Private Limited 3,471,467 19,639,886 8,485,237 11,154,649 20,791,170 5,691,729 5,879,387 - Realtek Investment Singapore Private Limited 5,701,600 6,275,138 123 6,275,015 0 (325) 130,511 - Cortina Access, Inc. 374,828 777,335 58,700 718,635 204,759 13,395 21,968 - Cortina Network Systems (Shanghai) Co., Ltd. 102,629 189,497 27,343 162,154 104,435 4,520 (2,338) - Cortina Systems Taiwan Limited. 211,300 91,262 13,952 77,310 112,384 6,361 791 0.04 Realtek Viet Nam Co., Ltd 114,032 100,874 12,085 88,789 0 (16,151) (17,359) - RayMX Microelectronics Corporation 114,428 430,603 344,495 86,108 416,519 (20,015) 137 - Suzhou PanKore Integrated Circuit Technology Co., Ltd. 43,592 36,125 10,755 25,370 0 (17,915) (17,915) - Realtek Semiconductor (Malaysia) SDN. BHD. 74,144 65,948 1,034 64,914 0 (9,025) (9,150) -	-110- Company Paid in Capital Assets Liabilities Equity Operating revenue Operation Income Net Income for the year (After Taxes) EPS (After Taxes) Leading Enterprises Limited 14,080,956 14,261,272 1,021,847 13,239,425 0 (28,687) 671,282 - Amber Universal Inc. 4,487,621 3,378,780 11,404 3,367,376 0 (11,433) 51,962 - Bluocean Inc. 3,137,305 4,998,324 1,628,388 3,369,936 0 (2,801) 76,184 - Talent Eagle Enterprise Inc. 3,252,763 8,016,776 5,854,390 2,162,386 0 (5,602) (295,459) - Hung-wei Venture Capital Co., Ltd 250,000 637,499 4,553 632,946 0 (3,056) 150,791 6.03 Realsun Investments Co., Ltd 280,000 619,625 115 619,510 0 (102) 5,145 0.18 Realking Investments Limited 293,930 290,298 62 290,236 0 (46) (7,428) (0.25) Realsun Technology Corporation 5,000 5,118 0 5,118 0 (1) 57 0.11 Realtek Semiconductor (Japan) Corp. 5,530 5,758 3,481 2,277 63,193 (1,338) (104) - Circon Universial Inc. 8,552 7,663 0 7,663 0 (74) (58) - Empsonic Enterprises Inc. 805,351 1,570,760 0 1,570,760 0 (40) 121,713 - Reasil Microelectronics Corporation 798,224 2,106,503 540,283 1,566,220 2,125,111 151,584 111,152 - Ubilinx Technology, Inc 1,482,416 122,993 145,005 (22,012) 0 (414,002) (418,782) - Realtek Semiconductor (Hong Kong) Limited 5,516 1,082 0 1,082 0 (21) (21) - Realtek Semiconductor (ShenZhen) Corp. 142,540 374,415 103,803 270,612 397,051 22,182 13,415 - Bobitag Inc. 28,784 29,118 124 28,994 0 (1) 146 0.05 Realtek Singapore Private Limited 3,471,467 19,639,886 8,485,237 11,154,649 20,791,170 5,691,729 5,879,387 - Realtek Investment Singapore Private Limited 5,701,600 6,275,138 123 6,275,015 0 (325) 130,511 - Cortina Access, Inc. 374,828 777,335 58,700 718,635 204,759 13,395 21,968 - Cortina Network Systems (Shanghai) Co., Ltd. 102,629 189,497 27,343 162,154 104,435 4,520 (2,338) - Cortina Systems Taiwan Limited. 211,300 91,262 13,952 77,310 112,384 6,361 791 0.04 Realtek Viet Nam Co., Ltd 114,032 100,874 12,085 88,789 0 (16,151) (17,359) - RayMX Microelectronics Corporation 114,428 430,603 344,495 86,108 416,519 (20,015) 137 - Suzhou PanKore Integrated Circuit Technology Co., Ltd. 43,592 36,125 10,755 25,370 0 (17,915) (17,915) - Realtek Semiconductor (Malaysia) SDN. BHD. 74,144 65,948 1,034 64,914 0 (9,025) (9,150) -	-110- Company Paid in Capital Assets Liabilities Equity Operating revenue Operation Income Net Income for the year (After Taxes) EPS (After Taxes) Leading Enterprises Limited 14,080,956 14,261,272 1,021,847 13,239,425 0 (28,687) 671,282 - Amber Universal Inc. 4,487,621 3,378,780 11,404 3,367,376 0 (11,433) 51,962 - Bluocean Inc. 3,137,305 4,998,324 1,628,388 3,369,936 0 (2,801) 76,184 - Talent Eagle Enterprise Inc. 3,252,763 8,016,776 5,854,390 2,162,386 0 (5,602) (295,459) - Hung-wei Venture Capital Co., Ltd 250,000 637,499 4,553 632,946 0 (3,056) 150,791 6.03 Realsun Investments Co., Ltd 280,000 619,625 115 619,510 0 (102) 5,145 0.18 Realking Investments Limited 293,930 290,298 62 290,236 0 (46) (7,428) (0.25) Realsun Technology Corporation 5,000 5,118 0 5,118 0 (1) 57 0.11 Realtek Semiconductor (Japan) Corp. 5,530 5,758 3,481 2,277 63,193 (1,338) (104) - Circon Universial Inc. 8,552 7,663 0 7,663 0 (74) (58) - Empsonic Enterprises Inc. 805,351 1,570,760 0 1,570,760 0 (40) 121,713 - Reasil Microelectronics Corporation 798,224 2,106,503 540,283 1,566,220 2,125,111 151,584 111,152 - Ubilinx Technology, Inc 1,482,416 122,993 145,005 (22,012) 0 (414,002) (418,782) - Realtek Semiconductor (Hong Kong) Limited 5,516 1,082 0 1,082 0 (21) (21) - Realtek Semiconductor (ShenZhen) Corp. 142,540 374,415 103,803 270,612 397,051 22,182 13,415 - Bobitag Inc. 28,784 29,118 124 28,994 0 (1) 146 0.05 Realtek Singapore Private Limited 3,471,467 19,639,886 8,485,237 11,154,649 20,791,170 5,691,729 5,879,387 - Realtek Investment Singapore Private Limited 5,701,600 6,275,138 123 6,275,015 0 (325) 130,511 - Cortina Access, Inc. 374,828 777,335 58,700 718,635 204,759 13,395 21,968 - Cortina Network Systems (Shanghai) Co., Ltd. 102,629 189,497 27,343 162,154 104,435 4,520 (2,338) - Cortina Systems Taiwan Limited. 211,300 91,262 13,952 77,310 112,384 6,361 791 0.04 Realtek Viet Nam Co., Ltd 114,032 100,874 12,085 88,789 0 (16,151) (17,359) - RayMX Microelectronics Corporation 114,428 430,603 344,495 86,108 416,519 (20,015) 137 - Suzhou PanKore Integrated Circuit Technology Co., Ltd. 43,592 36,125 10,755 25,370 0 (17,915) (17,915) - Realtek Semiconductor (Malaysia) SDN. BHD. 74,144 65,948 1,034 64,914 0 (9,025) (9,150) -	-110- Company Paid in Capital Assets Liabilities Equity Operating revenue Operation Income Net Income for the year (After Taxes) EPS (After Taxes) Leading Enterprises Limited 14,080,956 14,261,272 1,021,847 13,239,425 0 (28,687) 671,282 - Amber Universal Inc. 4,487,621 3,378,780 11,404 3,367,376 0 (11,433) 51,962 - Bluocean Inc. 3,137,305 4,998,324 1,628,388 3,369,936 0 (2,801) 76,184 - Talent Eagle Enterprise Inc. 3,252,763 8,016,776 5,854,390 2,162,386 0 (5,602) (295,459) - Hung-wei Venture Capital Co., Ltd 250,000 637,499 4,553 632,946 0 (3,056) 150,791 6.03 Realsun Investments Co., Ltd 280,000 619,625 115 619,510 0 (102) 5,145 0.18 Realking Investments Limited 293,930 290,298 62 290,236 0 (46) (7,428) (0.25) Realsun Technology Corporation 5,000 5,118 0 5,118 0 (1) 57 0.11 Realtek Semiconductor (Japan) Corp. 5,530 5,758 3,481 2,277 63,193 (1,338) (104) - Circon Universial Inc. 8,552 7,663 0 7,663 0 (74) (58) - Empsonic Enterprises Inc. 805,351 1,570,760 0 1,570,760 0 (40) 121,713 - Reasil Microelectronics Corporation 798,224 2,106,503 540,283 1,566,220 2,125,111 151,584 111,152 - Ubilinx Technology, Inc 1,482,416 122,993 145,005 (22,012) 0 (414,002) (418,782) - Realtek Semiconductor (Hong Kong) Limited 5,516 1,082 0 1,082 0 (21) (21) - Realtek Semiconductor (ShenZhen) Corp. 142,540 374,415 103,803 270,612 397,051 22,182 13,415 - Bobitag Inc. 28,784 29,118 124 28,994 0 (1) 146 0.05 Realtek Singapore Private Limited 3,471,467 19,639,886 8,485,237 11,154,649 20,791,170 5,691,729 5,879,387 - Realtek Investment Singapore Private Limited 5,701,600 6,275,138 123 6,275,015 0 (325) 130,511 - Cortina Access, Inc. 374,828 777,335 58,700 718,635 204,759 13,395 21,968 - Cortina Network Systems (Shanghai) Co., Ltd. 102,629 189,497 27,343 162,154 104,435 4,520 (2,338) - Cortina Systems Taiwan Limited. 211,300 91,262 13,952 77,310 112,384 6,361 791 0.04 Realtek Viet Nam Co., Ltd 114,032 100,874 12,085 88,789 0 (16,151) (17,359) - RayMX Microelectronics Corporation 114,428 430,603 344,495 86,108 416,519 (20,015) 137 - Suzhou PanKore Integrated Circuit Technology Co., Ltd. 43,592 36,125 10,755 25,370 0 (17,915) (17,915) - Realtek Semiconductor (Malaysia) SDN. BHD. 74,144 65,948 1,034 64,914 0 (9,025) (9,150) -	-110- Company Paid in Capital Assets Liabilities Equity Operating revenue Operation Income Net Income for the year (After Taxes) EPS (After Taxes) Leading Enterprises Limited 14,080,956 14,261,272 1,021,847 13,239,425 0 (28,687) 671,282 - Amber Universal Inc. 4,487,621 3,378,780 11,404 3,367,376 0 (11,433) 51,962 - Bluocean Inc. 3,137,305 4,998,324 1,628,388 3,369,936 0 (2,801) 76,184 - Talent Eagle Enterprise Inc. 3,252,763 8,016,776 5,854,390 2,162,386 0 (5,602) (295,459) - Hung-wei Venture Capital Co., Ltd 250,000 637,499 4,553 632,946 0 (3,056) 150,791 6.03 Realsun Investments Co., Ltd 280,000 619,625 115 619,510 0 (102) 5,145 0.18 Realking Investments Limited 293,930 290,298 62 290,236 0 (46) (7,428) (0.25) Realsun Technology Corporation 5,000 5,118 0 5,118 0 (1) 57 0.11 Realtek Semiconductor (Japan) Corp. 5,530 5,758 3,481 2,277 63,193 (1,338) (104) - Circon Universial Inc. 8,552 7,663 0 7,663 0 (74) (58) - Empsonic Enterprises Inc. 805,351 1,570,760 0 1,570,760 0 (40) 121,713 - Reasil Microelectronics Corporation 798,224 2,106,503 540,283 1,566,220 2,125,111 151,584 111,152 - Ubilinx Technology, Inc 1,482,416 122,993 145,005 (22,012) 0 (414,002) (418,782) - Realtek Semiconductor (Hong Kong) Limited 5,516 1,082 0 1,082 0 (21) (21) - Realtek Semiconductor (ShenZhen) Corp. 142,540 374,415 103,803 270,612 397,051 22,182 13,415 - Bobitag Inc. 28,784 29,118 124 28,994 0 (1) 146 0.05 Realtek Singapore Private Limited 3,471,467 19,639,886 8,485,237 11,154,649 20,791,170 5,691,729 5,879,387 - Realtek Investment Singapore Private Limited 5,701,600 6,275,138 123 6,275,015 0 (325) 130,511 - Cortina Access, Inc. 374,828 777,335 58,700 718,635 204,759 13,395 21,968 - Cortina Network Systems (Shanghai) Co., Ltd. 102,629 189,497 27,343 162,154 104,435 4,520 (2,338) - Cortina Systems Taiwan Limited. 211,300 91,262 13,952 77,310 112,384 6,361 791 0.04 Realtek Viet Nam Co., Ltd 114,032 100,874 12,085 88,789 0 (16,151) (17,359) - RayMX Microelectronics Corporation 114,428 430,603 344,495 86,108 416,519 (20,015) 137 - Suzhou PanKore Integrated Circuit Technology Co., Ltd. 43,592 36,125 10,755 25,370 0 (17,915) (17,915) - Realtek Semiconductor (Malaysia) SDN. BHD. 74,144 65,948 1,034 64,914 0 (9,025) (9,150) -	-110- Company Paid in Capital Assets Liabilities Equity Operating revenue Operation Income Net Income for the year (After Taxes) EPS (After Taxes) Leading Enterprises Limited 14,080,956 14,261,272 1,021,847 13,239,425 0 (28,687) 671,282 - Amber Universal Inc. 4,487,621 3,378,780 11,404 3,367,376 0 (11,433) 51,962 - Bluocean Inc. 3,137,305 4,998,324 1,628,388 3,369,936 0 (2,801) 76,184 - Talent Eagle Enterprise Inc. 3,252,763 8,016,776 5,854,390 2,162,386 0 (5,602) (295,459) - Hung-wei Venture Capital Co., Ltd 250,000 637,499 4,553 632,946 0 (3,056) 150,791 6.03 Realsun Investments Co., Ltd 280,000 619,625 115 619,510 0 (102) 5,145 0.18 Realking Investments Limited 293,930 290,298 62 290,236 0 (46) (7,428) (0.25) Realsun Technology Corporation 5,000 5,118 0 5,118 0 (1) 57 0.11 Realtek Semiconductor (Japan) Corp. 5,530 5,758 3,481 2,277 63,193 (1,338) (104) - Circon Universial Inc. 8,552 7,663 0 7,663 0 (74) (58) - Empsonic Enterprises Inc. 805,351 1,570,760 0 1,570,760 0 (40) 121,713 - Reasil Microelectronics Corporation 798,224 2,106,503 540,283 1,566,220 2,125,111 151,584 111,152 - Ubilinx Technology, Inc 1,482,416 122,993 145,005 (22,012) 0 (414,002) (418,782) - Realtek Semiconductor (Hong Kong) Limited 5,516 1,082 0 1,082 0 (21) (21) - Realtek Semiconductor (ShenZhen) Corp. 142,540 374,415 103,803 270,612 397,051 22,182 13,415 - Bobitag Inc. 28,784 29,118 124 28,994 0 (1) 146 0.05 Realtek Singapore Private Limited 3,471,467 19,639,886 8,485,237 11,154,649 20,791,170 5,691,729 5,879,387 - Realtek Investment Singapore Private Limited 5,701,600 6,275,138 123 6,275,015 0 (325) 130,511 - Cortina Access, Inc. 374,828 777,335 58,700 718,635 204,759 13,395 21,968 - Cortina Network Systems (Shanghai) Co., Ltd. 102,629 189,497 27,343 162,154 104,435 4,520 (2,338) - Cortina Systems Taiwan Limited. 211,300 91,262 13,952 77,310 112,384 6,361 791 0.04 Realtek Viet Nam Co., Ltd 114,032 100,874 12,085 88,789 0 (16,151) (17,359) - RayMX Microelectronics Corporation 114,428 430,603 344,495 86,108 416,519 (20,015) 137 - Suzhou PanKore Integrated Circuit Technology Co., Ltd. 43,592 36,125 10,755 25,370 0 (17,915) (17,915) - Realtek Semiconductor (Malaysia) SDN. BHD. 74,144 65,948 1,034 64,914 0 (9,025) (9,150) -	-110- Company Paid in Capital Assets Liabilities Equity Operating revenue Operation Income Net Income for the year (After Taxes) EPS (After Taxes) Leading Enterprises Limited 14,080,956 14,261,272 1,021,847 13,239,425 0 (28,687) 671,282 - Amber Universal Inc. 4,487,621 3,378,780 11,404 3,367,376 0 (11,433) 51,962 - Bluocean Inc. 3,137,305 4,998,324 1,628,388 3,369,936 0 (2,801) 76,184 - Talent Eagle Enterprise Inc. 3,252,763 8,016,776 5,854,390 2,162,386 0 (5,602) (295,459) - Hung-wei Venture Capital Co., Ltd 250,000 637,499 4,553 632,946 0 (3,056) 150,791 6.03 Realsun Investments Co., Ltd 280,000 619,625 115 619,510 0 (102) 5,145 0.18 Realking Investments Limited 293,930 290,298 62 290,236 0 (46) (7,428) (0.25) Realsun Technology Corporation 5,000 5,118 0 5,118 0 (1) 57 0.11 Realtek Semiconductor (Japan) Corp. 5,530 5,758 3,481 2,277 63,193 (1,338) (104) - Circon Universial Inc. 8,552 7,663 0 7,663 0 (74) (58) - Empsonic Enterprises Inc. 805,351 1,570,760 0 1,570,760 0 (40) 121,713 - Reasil Microelectronics Corporation 798,224 2,106,503 540,283 1,566,220 2,125,111 151,584 111,152 - Ubilinx Technology, Inc 1,482,416 122,993 145,005 (22,012) 0 (414,002) (418,782) - Realtek Semiconductor (Hong Kong) Limited 5,516 1,082 0 1,082 0 (21) (21) - Realtek Semiconductor (ShenZhen) Corp. 142,540 374,415 103,803 270,612 397,051 22,182 13,415 - Bobitag Inc. 28,784 29,118 124 28,994 0 (1) 146 0.05 Realtek Singapore Private Limited 3,471,467 19,639,886 8,485,237 11,154,649 20,791,170 5,691,729 5,879,387 - Realtek Investment Singapore Private Limited 5,701,600 6,275,138 123 6,275,015 0 (325) 130,511 - Cortina Access, Inc. 374,828 777,335 58,700 718,635 204,759 13,395 21,968 - Cortina Network Systems (Shanghai) Co., Ltd. 102,629 189,497 27,343 162,154 104,435 4,520 (2,338) - Cortina Systems Taiwan Limited. 211,300 91,262 13,952 77,310 112,384 6,361 791 0.04 Realtek Viet Nam Co., Ltd 114,032 100,874 12,085 88,789 0 (16,151) (17,359) - RayMX Microelectronics Corporation 114,428 430,603 344,495 86,108 416,519 (20,015) 137 - Suzhou PanKore Integrated Circuit Technology Co., Ltd. 43,592 36,125 10,755 25,370 0 (17,915) (17,915) - Realtek Semiconductor (Malaysia) SDN. BHD. 74,144 65,948 1,034 64,914 0 (9,025) (9,150) -	-110- Company Paid in Capital Assets Liabilities Equity Operating revenue Operation Income Net Income for the year (After Taxes) EPS (After Taxes) Leading Enterprises Limited 14,080,956 14,261,272 1,021,847 13,239,425 0 (28,687) 671,282 - Amber Universal Inc. 4,487,621 3,378,780 11,404 3,367,376 0 (11,433) 51,962 - Bluocean Inc. 3,137,305 4,998,324 1,628,388 3,369,936 0 (2,801) 76,184 - Talent Eagle Enterprise Inc. 3,252,763 8,016,776 5,854,390 2,162,386 0 (5,602) (295,459) - Hung-wei Venture Capital Co., Ltd 250,000 637,499 4,553 632,946 0 (3,056) 150,791 6.03 Realsun Investments Co., Ltd 280,000 619,625 115 619,510 0 (102) 5,145 0.18 Realking Investments Limited 293,930 290,298 62 290,236 0 (46) (7,428) (0.25) Realsun Technology Corporation 5,000 5,118 0 5,118 0 (1) 57 0.11 Realtek Semiconductor (Japan) Corp. 5,530 5,758 3,481 2,277 63,193 (1,338) (104) - Circon Universial Inc. 8,552 7,663 0 7,663 0 (74) (58) - Empsonic Enterprises Inc. 805,351 1,570,760 0 1,570,760 0 (40) 121,713 - Reasil Microelectronics Corporation 798,224 2,106,503 540,283 1,566,220 2,125,111 151,584 111,152 - Ubilinx Technology, Inc 1,482,416 122,993 145,005 (22,012) 0 (414,002) (418,782) - Realtek Semiconductor (Hong Kong) Limited 5,516 1,082 0 1,082 0 (21) (21) - Realtek Semiconductor (ShenZhen) Corp. 142,540 374,415 103,803 270,612 397,051 22,182 13,415 - Bobitag Inc. 28,784 29,118 124 28,994 0 (1) 146 0.05 Realtek Singapore Private Limited 3,471,467 19,639,886 8,485,237 11,154,649 20,791,170 5,691,729 5,879,387 - Realtek Investment Singapore Private Limited 5,701,600 6,275,138 123 6,275,015 0 (325) 130,511 - Cortina Access, Inc. 374,828 777,335 58,700 718,635 204,759 13,395 21,968 - Cortina Network Systems (Shanghai) Co., Ltd. 102,629 189,497 27,343 162,154 104,435 4,520 (2,338) - Cortina Systems Taiwan Limited. 211,300 91,262 13,952 77,310 112,384 6,361 791 0.04 Realtek Viet Nam Co., Ltd 114,032 100,874 12,085 88,789 0 (16,151) (17,359) - RayMX Microelectronics Corporation 114,428 430,603 344,495 86,108 416,519 (20,015) 137 - Suzhou PanKore Integrated Circuit Technology Co., Ltd. 43,592 36,125 10,755 25,370 0 (17,915) (17,915) - Realtek Semiconductor (Malaysia) SDN. BHD. 74,144 65,948 1,034 64,914 0 (9,025) (9,150) -	-110- Company Paid in Capital Assets Liabilities Equity Operating revenue Operation Income Net Income for the year (After Taxes) EPS (After Taxes) Leading Enterprises Limited 14,080,956 14,261,272 1,021,847 13,239,425 0 (28,687) 671,282 - Amber Universal Inc. 4,487,621 3,378,780 11,404 3,367,376 0 (11,433) 51,962 - Bluocean Inc. 3,137,305 4,998,324 1,628,388 3,369,936 0 (2,801) 76,184 - Talent Eagle Enterprise Inc. 3,252,763 8,016,776 5,854,390 2,162,386 0 (5,602) (295,459) - Hung-wei Venture Capital Co., Ltd 250,000 637,499 4,553 632,946 0 (3,056) 150,791 6.03 Realsun Investments Co., Ltd 280,000 619,625 115 619,510 0 (102) 5,145 0.18 Realking Investments Limited 293,930 290,298 62 290,236 0 (46) (7,428) (0.25) Realsun Technology Corporation 5,000 5,118 0 5,118 0 (1) 57 0.11 Realtek Semiconductor (Japan) Corp. 5,530 5,758 3,481 2,277 63,193 (1,338) (104) - Circon Universial Inc. 8,552 7,663 0 7,663 0 (74) (58) - Empsonic Enterprises Inc. 805,351 1,570,760 0 1,570,760 0 (40) 121,713 - Reasil Microelectronics Corporation 798,224 2,106,503 540,283 1,566,220 2,125,111 151,584 111,152 - Ubilinx Technology, Inc 1,482,416 122,993 145,005 (22,012) 0 (414,002) (418,782) - Realtek Semiconductor (Hong Kong) Limited 5,516 1,082 0 1,082 0 (21) (21) - Realtek Semiconductor (ShenZhen) Corp. 142,540 374,415 103,803 270,612 397,051 22,182 13,415 - Bobitag Inc. 28,784 29,118 124 28,994 0 (1) 146 0.05 Realtek Singapore Private Limited 3,471,467 19,639,886 8,485,237 11,154,649 20,791,170 5,691,729 5,879,387 - Realtek Investment Singapore Private Limited 5,701,600 6,275,138 123 6,275,015 0 (325) 130,511 - Cortina Access, Inc. 374,828 777,335 58,700 718,635 204,759 13,395 21,968 - Cortina Network Systems (Shanghai) Co., Ltd. 102,629 189,497 27,343 162,154 104,435 4,520 (2,338) - Cortina Systems Taiwan Limited. 211,300 91,262 13,952 77,310 112,384 6,361 791 0.04 Realtek Viet Nam Co., Ltd 114,032 100,874 12,085 88,789 0 (16,151) (17,359) - RayMX Microelectronics Corporation 114,428 430,603 344,495 86,108 416,519 (20,015) 137 - Suzhou PanKore Integrated Circuit Technology Co., Ltd. 43,592 36,125 10,755 25,370 0 (17,915) (17,915) - Realtek Semiconductor (Malaysia) SDN. BHD. 74,144 65,948 1,034 64,914 0 (9,025) (9,150) -	-110- Company Paid in Capital Assets Liabilities Equity Operating revenue Operation Income Net Income for the year (After Taxes) EPS (After Taxes) Leading Enterprises Limited 14,080,956 14,261,272 1,021,847 13,239,425 0 (28,687) 671,282 - Amber Universal Inc. 4,487,621 3,378,780 11,404 3,367,376 0 (11,433) 51,962 - Bluocean Inc. 3,137,305 4,998,324 1,628,388 3,369,936 0 (2,801) 76,184 - Talent Eagle Enterprise Inc. 3,252,763 8,016,776 5,854,390 2,162,386 0 (5,602) (295,459) - Hung-wei Venture Capital Co., Ltd 250,000 637,499 4,553 632,946 0 (3,056) 150,791 6.03 Realsun Investments Co., Ltd 280,000 619,625 115 619,510 0 (102) 5,145 0.18 Realking Investments Limited 293,930 290,298 62 290,236 0 (46) (7,428) (0.25) Realsun Technology Corporation 5,000 5,118 0 5,118 0 (1) 57 0.11 Realtek Semiconductor (Japan) Corp. 5,530 5,758 3,481 2,277 63,193 (1,338) (104) - Circon Universial Inc. 8,552 7,663 0 7,663 0 (74) (58) - Empsonic Enterprises Inc. 805,351 1,570,760 0 1,570,760 0 (40) 121,713 - Reasil Microelectronics Corporation 798,224 2,106,503 540,283 1,566,220 2,125,111 151,584 111,152 - Ubilinx Technology, Inc 1,482,416 122,993 145,005 (22,012) 0 (414,002) (418,782) - Realtek Semiconductor (Hong Kong) Limited 5,516 1,082 0 1,082 0 (21) (21) - Realtek Semiconductor (ShenZhen) Corp. 142,540 374,415 103,803 270,612 397,051 22,182 13,415 - Bobitag Inc. 28,784 29,118 124 28,994 0 (1) 146 0.05 Realtek Singapore Private Limited 3,471,467 19,639,886 8,485,237 11,154,649 20,791,170 5,691,729 5,879,387 - Realtek Investment Singapore Private Limited 5,701,600 6,275,138 123 6,275,015 0 (325) 130,511 - Cortina Access, Inc. 374,828 777,335 58,700 718,635 204,759 13,395 21,968 - Cortina Network Systems (Shanghai) Co., Ltd. 102,629 189,497 27,343 162,154 104,435 4,520 (2,338) - Cortina Systems Taiwan Limited. 211,300 91,262 13,952 77,310 112,384 6,361 791 0.04 Realtek Viet Nam Co., Ltd 114,032 100,874 12,085 88,789 0 (16,151) (17,359) - RayMX Microelectronics Corporation 114,428 430,603 344,495 86,108 416,519 (20,015) 137 - Suzhou PanKore Integrated Circuit Technology Co., Ltd. 43,592 36,125 10,755 25,370 0 (17,915) (17,915) - Realtek Semiconductor (Malaysia) SDN. BHD. 74,144 65,948 1,034 64,914 0 (9,025) (9,150) -	-110- Company Paid in Capital Assets Liabilities Equity Operating revenue Operation Income Net Income for the year (After Taxes) EPS (After Taxes) Leading Enterprises Limited 14,080,956 14,261,272 1,021,847 13,239,425 0 (28,687) 671,282 - Amber Universal Inc. 4,487,621 3,378,780 11,404 3,367,376 0 (11,433) 51,962 - Bluocean Inc. 3,137,305 4,998,324 1,628,388 3,369,936 0 (2,801) 76,184 - Talent Eagle Enterprise Inc. 3,252,763 8,016,776 5,854,390 2,162,386 0 (5,602) (295,459) - Hung-wei Venture Capital Co., Ltd 250,000 637,499 4,553 632,946 0 (3,056) 150,791 6.03 Realsun Investments Co., Ltd 280,000 619,625 115 619,510 0 (102) 5,145 0.18 Realking Investments Limited 293,930 290,298 62 290,236 0 (46) (7,428) (0.25) Realsun Technology Corporation 5,000 5,118 0 5,118 0 (1) 57 0.11 Realtek Semiconductor (Japan) Corp. 5,530 5,758 3,481 2,277 63,193 (1,338) (104) - Circon Universial Inc. 8,552 7,663 0 7,663 0 (74) (58) - Empsonic Enterprises Inc. 805,351 1,570,760 0 1,570,760 0 (40) 121,713 - Reasil Microelectronics Corporation 798,224 2,106,503 540,283 1,566,220 2,125,111 151,584 111,152 - Ubilinx Technology, Inc 1,482,416 122,993 145,005 (22,012) 0 (414,002) (418,782) - Realtek Semiconductor (Hong Kong) Limited 5,516 1,082 0 1,082 0 (21) (21) - Realtek Semiconductor (ShenZhen) Corp. 142,540 374,415 103,803 270,612 397,051 22,182 13,415 - Bobitag Inc. 28,784 29,118 124 28,994 0 (1) 146 0.05 Realtek Singapore Private Limited 3,471,467 19,639,886 8,485,237 11,154,649 20,791,170 5,691,729 5,879,387 - Realtek Investment Singapore Private Limited 5,701,600 6,275,138 123 6,275,015 0 (325) 130,511 - Cortina Access, Inc. 374,828 777,335 58,700 718,635 204,759 13,395 21,968 - Cortina Network Systems (Shanghai) Co., Ltd. 102,629 189,497 27,343 162,154 104,435 4,520 (2,338) - Cortina Systems Taiwan Limited. 211,300 91,262 13,952 77,310 112,384 6,361 791 0.04 Realtek Viet Nam Co., Ltd 114,032 100,874 12,085 88,789 0 (16,151) (17,359) - RayMX Microelectronics Corporation 114,428 430,603 344,495 86,108 416,519 (20,015) 137 - Suzhou PanKore Integrated Circuit Technology Co., Ltd. 43,592 36,125 10,755 25,370 0 (17,915) (17,915) - Realtek Semiconductor (Malaysia) SDN. BHD. 74,144 65,948 1,034 64,914 0 (9,025) (9,150) -	-110- Company Paid in Capital Assets Liabilities Equity Operating revenue Operation Income Net Income for the year (After Taxes) EPS (After Taxes) Leading Enterprises Limited 14,080,956 14,261,272 1,021,847 13,239,425 0 (28,687) 671,282 - Amber Universal Inc. 4,487,621 3,378,780 11,404 3,367,376 0 (11,433) 51,962 - Bluocean Inc. 3,137,305 4,998,324 1,628,388 3,369,936 0 (2,801) 76,184 - Talent Eagle Enterprise Inc. 3,252,763 8,016,776 5,854,390 2,162,386 0 (5,602) (295,459) - Hung-wei Venture Capital Co., Ltd 250,000 637,499 4,553 632,946 0 (3,056) 150,791 6.03 Realsun Investments Co., Ltd 280,000 619,625 115 619,510 0 (102) 5,145 0.18 Realking Investments Limited 293,930 290,298 62 290,236 0 (46) (7,428) (0.25) Realsun Technology Corporation 5,000 5,118 0 5,118 0 (1) 57 0.11 Realtek Semiconductor (Japan) Corp. 5,530 5,758 3,481 2,277 63,193 (1,338) (104) - Circon Universial Inc. 8,552 7,663 0 7,663 0 (74) (58) - Empsonic Enterprises Inc. 805,351 1,570,760 0 1,570,760 0 (40) 121,713 - Reasil Microelectronics Corporation 798,224 2,106,503 540,283 1,566,220 2,125,111 151,584 111,152 - Ubilinx Technology, Inc 1,482,416 122,993 145,005 (22,012) 0 (414,002) (418,782) - Realtek Semiconductor (Hong Kong) Limited 5,516 1,082 0 1,082 0 (21) (21) - Realtek Semiconductor (ShenZhen) Corp. 142,540 374,415 103,803 270,612 397,051 22,182 13,415 - Bobitag Inc. 28,784 29,118 124 28,994 0 (1) 146 0.05 Realtek Singapore Private Limited 3,471,467 19,639,886 8,485,237 11,154,649 20,791,170 5,691,729 5,879,387 - Realtek Investment Singapore Private Limited 5,701,600 6,275,138 123 6,275,015 0 (325) 130,511 - Cortina Access, Inc. 374,828 777,335 58,700 718,635 204,759 13,395 21,968 - Cortina Network Systems (Shanghai) Co., Ltd. 102,629 189,497 27,343 162,154 104,435 4,520 (2,338) - Cortina Systems Taiwan Limited. 211,300 91,262 13,952 77,310 112,384 6,361 791 0.04 Realtek Viet Nam Co., Ltd 114,032 100,874 12,085 88,789 0 (16,151) (17,359) - RayMX Microelectronics Corporation 114,428 430,603 344,495 86,108 416,519 (20,015) 137 - Suzhou PanKore Integrated Circuit Technology Co., Ltd. 43,592 36,125 10,755 25,370 0 (17,915) (17,915) - Realtek Semiconductor (Malaysia) SDN. BHD. 74,144 65,948 1,034 64,914 0 (9,025) (9,150) -	-110- Company Paid in Capital Assets Liabilities Equity Operating revenue Operation Income Net Income for the year (After Taxes) EPS (After Taxes) Leading Enterprises Limited 14,080,956 14,261,272 1,021,847 13,239,425 0 (28,687) 671,282 - Amber Universal Inc. 4,487,621 3,378,780 11,404 3,367,376 0 (11,433) 51,962 - Bluocean Inc. 3,137,305 4,998,324 1,628,388 3,369,936 0 (2,801) 76,184 - Talent Eagle Enterprise Inc. 3,252,763 8,016,776 5,854,390 2,162,386 0 (5,602) (295,459) - Hung-wei Venture Capital Co., Ltd 250,000 637,499 4,553 632,946 0 (3,056) 150,791 6.03 Realsun Investments Co., Ltd 280,000 619,625 115 619,510 0 (102) 5,145 0.18 Realking Investments Limited 293,930 290,298 62 290,236 0 (46) (7,428) (0.25) Realsun Technology Corporation 5,000 5,118 0 5,118 0 (1) 57 0.11 Realtek Semiconductor (Japan) Corp. 5,530 5,758 3,481 2,277 63,193 (1,338) (104) - Circon Universial Inc. 8,552 7,663 0 7,663 0 (74) (58) - Empsonic Enterprises Inc. 805,351 1,570,760 0 1,570,760 0 (40) 121,713 - Reasil Microelectronics Corporation 798,224 2,106,503 540,283 1,566,220 2,125,111 151,584 111,152 - Ubilinx Technology, Inc 1,482,416 122,993 145,005 (22,012) 0 (414,002) (418,782) - Realtek Semiconductor (Hong Kong) Limited 5,516 1,082 0 1,082 0 (21) (21) - Realtek Semiconductor (ShenZhen) Corp. 142,540 374,415 103,803 270,612 397,051 22,182 13,415 - Bobitag Inc. 28,784 29,118 124 28,994 0 (1) 146 0.05 Realtek Singapore Private Limited 3,471,467 19,639,886 8,485,237 11,154,649 20,791,170 5,691,729 5,879,387 - Realtek Investment Singapore Private Limited 5,701,600 6,275,138 123 6,275,015 0 (325) 130,511 - Cortina Access, Inc. 374,828 777,335 58,700 718,635 204,759 13,395 21,968 - Cortina Network Systems (Shanghai) Co., Ltd. 102,629 189,497 27,343 162,154 104,435 4,520 (2,338) - Cortina Systems Taiwan Limited. 211,300 91,262 13,952 77,310 112,384 6,361 791 0.04 Realtek Viet Nam Co., Ltd 114,032 100,874 12,085 88,789 0 (16,151) (17,359) - RayMX Microelectronics Corporation 114,428 430,603 344,495 86,108 416,519 (20,015) 137 - Suzhou PanKore Integrated Circuit Technology Co., Ltd. 43,592 36,125 10,755 25,370 0 (17,915) (17,915) - Realtek Semiconductor (Malaysia) SDN. BHD. 74,144 65,948 1,034 64,914 0 (9,025) (9,150) -	-110- Company Paid in Capital Assets Liabilities Equity Operating revenue Operation Income Net Income for the year (After Taxes) EPS (After Taxes) Leading Enterprises Limited 14,080,956 14,261,272 1,021,847 13,239,425 0 (28,687) 671,282 - Amber Universal Inc. 4,487,621 3,378,780 11,404 3,367,376 0 (11,433) 51,962 - Bluocean Inc. 3,137,305 4,998,324 1,628,388 3,369,936 0 (2,801) 76,184 - Talent Eagle Enterprise Inc. 3,252,763 8,016,776 5,854,390 2,162,386 0 (5,602) (295,459) - Hung-wei Venture Capital Co., Ltd 250,000 637,499 4,553 632,946 0 (3,056) 150,791 6.03 Realsun Investments Co., Ltd 280,000 619,625 115 619,510 0 (102) 5,145 0.18 Realking Investments Limited 293,930 290,298 62 290,236 0 (46) (7,428) (0.25) Realsun Technology Corporation 5,000 5,118 0 5,118 0 (1) 57 0.11 Realtek Semiconductor (Japan) Corp. 5,530 5,758 3,481 2,277 63,193 (1,338) (104) - Circon Universial Inc. 8,552 7,663 0 7,663 0 (74) (58) - Empsonic Enterprises Inc. 805,351 1,570,760 0 1,570,760 0 (40) 121,713 - Reasil Microelectronics Corporation 798,224 2,106,503 540,283 1,566,220 2,125,111 151,584 111,152 - Ubilinx Technology, Inc 1,482,416 122,993 145,005 (22,012) 0 (414,002) (418,782) - Realtek Semiconductor (Hong Kong) Limited 5,516 1,082 0 1,082 0 (21) (21) - Realtek Semiconductor (ShenZhen) Corp. 142,540 374,415 103,803 270,612 397,051 22,182 13,415 - Bobitag Inc. 28,784 29,118 124 28,994 0 (1) 146 0.05 Realtek Singapore Private Limited 3,471,467 19,639,886 8,485,237 11,154,649 20,791,170 5,691,729 5,879,387 - Realtek Investment Singapore Private Limited 5,701,600 6,275,138 123 6,275,015 0 (325) 130,511 - Cortina Access, Inc. 374,828 777,335 58,700 718,635 204,759 13,395 21,968 - Cortina Network Systems (Shanghai) Co., Ltd. 102,629 189,497 27,343 162,154 104,435 4,520 (2,338) - Cortina Systems Taiwan Limited. 211,300 91,262 13,952 77,310 112,384 6,361 791 0.04 Realtek Viet Nam Co., Ltd 114,032 100,874 12,085 88,789 0 (16,151) (17,359) - RayMX Microelectronics Corporation 114,428 430,603 344,495 86,108 416,519 (20,015) 137 - Suzhou PanKore Integrated Circuit Technology Co., Ltd. 43,592 36,125 10,755 25,370 0 (17,915) (17,915) - Realtek Semiconductor (Malaysia) SDN. BHD. 74,144 65,948 1,034 64,914 0 (9,025) (9,150) -	-110- Company Paid in Capital Assets Liabilities Equity Operating revenue Operation Income Net Income for the year (After Taxes) EPS (After Taxes) Leading Enterprises Limited 14,080,956 14,261,272 1,021,847 13,239,425 0 (28,687) 671,282 - Amber Universal Inc. 4,487,621 3,378,780 11,404 3,367,376 0 (11,433) 51,962 - Bluocean Inc. 3,137,305 4,998,324 1,628,388 3,369,936 0 (2,801) 76,184 - Talent Eagle Enterprise Inc. 3,252,763 8,016,776 5,854,390 2,162,386 0 (5,602) (295,459) - Hung-wei Venture Capital Co., Ltd 250,000 637,499 4,553 632,946 0 (3,056) 150,791 6.03 Realsun Investments Co., Ltd 280,000 619,625 115 619,510 0 (102) 5,145 0.18 Realking Investments Limited 293,930 290,298 62 290,236 0 (46) (7,428) (0.25) Realsun Technology Corporation 5,000 5,118 0 5,118 0 (1) 57 0.11 Realtek Semiconductor (Japan) Corp. 5,530 5,758 3,481 2,277 63,193 (1,338) (104) - Circon Universial Inc. 8,552 7,663 0 7,663 0 (74) (58) - Empsonic Enterprises Inc. 805,351 1,570,760 0 1,570,760 0 (40) 121,713 - Reasil Microelectronics Corporation 798,224 2,106,503 540,283 1,566,220 2,125,111 151,584 111,152 - Ubilinx Technology, Inc 1,482,416 122,993 145,005 (22,012) 0 (414,002) (418,782) - Realtek Semiconductor (Hong Kong) Limited 5,516 1,082 0 1,082 0 (21) (21) - Realtek Semiconductor (ShenZhen) Corp. 142,540 374,415 103,803 270,612 397,051 22,182 13,415 - Bobitag Inc. 28,784 29,118 124 28,994 0 (1) 146 0.05 Realtek Singapore Private Limited 3,471,467 19,639,886 8,485,237 11,154,649 20,791,170 5,691,729 5,879,387 - Realtek Investment Singapore Private Limited 5,701,600 6,275,138 123 6,275,015 0 (325) 130,511 - Cortina Access, Inc. 374,828 777,335 58,700 718,635 204,759 13,395 21,968 - Cortina Network Systems (Shanghai) Co., Ltd. 102,629 189,497 27,343 162,154 104,435 4,520 (2,338) - Cortina Systems Taiwan Limited. 211,300 91,262 13,952 77,310 112,384 6,361 791 0.04 Realtek Viet Nam Co., Ltd 114,032 100,874 12,085 88,789 0 (16,151) (17,359) - RayMX Microelectronics Corporation 114,428 430,603 344,495 86,108 416,519 (20,015) 137 - Suzhou PanKore Integrated Circuit Technology Co., Ltd. 43,592 36,125 10,755 25,370 0 (17,915) (17,915) - Realtek Semiconductor (Malaysia) SDN. BHD. 74,144 65,948 1,034 64,914 0 (9,025) (9,150) -	-110- Company Paid in Capital Assets Liabilities Equity Operating revenue Operation Income Net Income for the year (After Taxes) EPS (After Taxes) Leading Enterprises Limited 14,080,956 14,261,272 1,021,847 13,239,425 0 (28,687) 671,282 - Amber Universal Inc. 4,487,621 3,378,780 11,404 3,367,376 0 (11,433) 51,962 - Bluocean Inc. 3,137,305 4,998,324 1,628,388 3,369,936 0 (2,801) 76,184 - Talent Eagle Enterprise Inc. 3,252,763 8,016,776 5,854,390 2,162,386 0 (5,602) (295,459) - Hung-wei Venture Capital Co., Ltd 250,000 637,499 4,553 632,946 0 (3,056) 150,791 6.03 Realsun Investments Co., Ltd 280,000 619,625 115 619,510 0 (102) 5,145 0.18 Realking Investments Limited 293,930 290,298 62 290,236 0 (46) (7,428) (0.25) Realsun Technology Corporation 5,000 5,118 0 5,118 0 (1) 57 0.11 Realtek Semiconductor (Japan) Corp. 5,530 5,758 3,481 2,277 63,193 (1,338) (104) - Circon Universial Inc. 8,552 7,663 0 7,663 0 (74) (58) - Empsonic Enterprises Inc. 805,351 1,570,760 0 1,570,760 0 (40) 121,713 - Reasil Microelectronics Corporation 798,224 2,106,503 540,283 1,566,220 2,125,111 151,584 111,152 - Ubilinx Technology, Inc 1,482,416 122,993 145,005 (22,012) 0 (414,002) (418,782) - Realtek Semiconductor (Hong Kong) Limited 5,516 1,082 0 1,082 0 (21) (21) - Realtek Semiconductor (ShenZhen) Corp. 142,540 374,415 103,803 270,612 397,051 22,182 13,415 - Bobitag Inc. 28,784 29,118 124 28,994 0 (1) 146 0.05 Realtek Singapore Private Limited 3,471,467 19,639,886 8,485,237 11,154,649 20,791,170 5,691,729 5,879,387 - Realtek Investment Singapore Private Limited 5,701,600 6,275,138 123 6,275,015 0 (325) 130,511 - Cortina Access, Inc. 374,828 777,335 58,700 718,635 204,759 13,395 21,968 - Cortina Network Systems (Shanghai) Co., Ltd. 102,629 189,497 27,343 162,154 104,435 4,520 (2,338) - Cortina Systems Taiwan Limited. 211,300 91,262 13,952 77,310 112,384 6,361 791 0.04 Realtek Viet Nam Co., Ltd 114,032 100,874 12,085 88,789 0 (16,151) (17,359) - RayMX Microelectronics Corporation 114,428 430,603 344,495 86,108 416,519 (20,015) 137 - Suzhou PanKore Integrated Circuit Technology Co., Ltd. 43,592 36,125 10,755 25,370 0 (17,915) (17,915) - Realtek Semiconductor (Malaysia) SDN. BHD. 74,144 65,948 1,034 64,914 0 (9,025) (9,150) -	-110- Company Paid in Capital Assets Liabilities Equity Operating revenue Operation Income Net Income for the year (After Taxes) EPS (After Taxes) Leading Enterprises Limited 14,080,956 14,261,272 1,021,847 13,239,425 0 (28,687) 671,282 - Amber Universal Inc. 4,487,621 3,378,780 11,404 3,367,376 0 (11,433) 51,962 - Bluocean Inc. 3,137,305 4,998,324 1,628,388 3,369,936 0 (2,801) 76,184 - Talent Eagle Enterprise Inc. 3,252,763 8,016,776 5,854,390 2,162,386 0 (5,602) (295,459) - Hung-wei Venture Capital Co., Ltd 250,000 637,499 4,553 632,946 0 (3,056) 150,791 6.03 Realsun Investments Co., Ltd 280,000 619,625 115 619,510 0 (102) 5,145 0.18 Realking Investments Limited 293,930 290,298 62 290,236 0 (46) (7,428) (0.25) Realsun Technology Corporation 5,000 5,118 0 5,118 0 (1) 57 0.11 Realtek Semiconductor (Japan) Corp. 5,530 5,758 3,481 2,277 63,193 (1,338) (104) - Circon Universial Inc. 8,552 7,663 0 7,663 0 (74) (58) - Empsonic Enterprises Inc. 805,351 1,570,760 0 1,570,760 0 (40) 121,713 - Reasil Microelectronics Corporation 798,224 2,106,503 540,283 1,566,220 2,125,111 151,584 111,152 - Ubilinx Technology, Inc 1,482,416 122,993 145,005 (22,012) 0 (414,002) (418,782) - Realtek Semiconductor (Hong Kong) Limited 5,516 1,082 0 1,082 0 (21) (21) - Realtek Semiconductor (ShenZhen) Corp. 142,540 374,415 103,803 270,612 397,051 22,182 13,415 - Bobitag Inc. 28,784 29,118 124 28,994 0 (1) 146 0.05 Realtek Singapore Private Limited 3,471,467 19,639,886 8,485,237 11,154,649 20,791,170 5,691,729 5,879,387 - Realtek Investment Singapore Private Limited 5,701,600 6,275,138 123 6,275,015 0 (325) 130,511 - Cortina Access, Inc. 374,828 777,335 58,700 718,635 204,759 13,395 21,968 - Cortina Network Systems (Shanghai) Co., Ltd. 102,629 189,497 27,343 162,154 104,435 4,520 (2,338) - Cortina Systems Taiwan Limited. 211,300 91,262 13,952 77,310 112,384 6,361 791 0.04 Realtek Viet Nam Co., Ltd 114,032 100,874 12,085 88,789 0 (16,151) (17,359) - RayMX Microelectronics Corporation 114,428 430,603 344,495 86,108 416,519 (20,015) 137 - Suzhou PanKore Integrated Circuit Technology Co., Ltd. 43,592 36,125 10,755 25,370 0 (17,915) (17,915) - Realtek Semiconductor (Malaysia) SDN. BHD. 74,144 65,948 1,034 64,914 0 (9,025) (9,150) -	-110- Company Paid in Capital Assets Liabilities Equity Operating revenue Operation Income Net Income for the year (After Taxes) EPS (After Taxes) Leading Enterprises Limited 14,080,956 14,261,272 1,021,847 13,239,425 0 (28,687) 671,282 - Amber Universal Inc. 4,487,621 3,378,780 11,404 3,367,376 0 (11,433) 51,962 - Bluocean Inc. 3,137,305 4,998,324 1,628,388 3,369,936 0 (2,801) 76,184 - Talent Eagle Enterprise Inc. 3,252,763 8,016,776 5,854,390 2,162,386 0 (5,602) (295,459) - Hung-wei Venture Capital Co., Ltd 250,000 637,499 4,553 632,946 0 (3,056) 150,791 6.03 Realsun Investments Co., Ltd 280,000 619,625 115 619,510 0 (102) 5,145 0.18 Realking Investments Limited 293,930 290,298 62 290,236 0 (46) (7,428) (0.25) Realsun Technology Corporation 5,000 5,118 0 5,118 0 (1) 57 0.11 Realtek Semiconductor (Japan) Corp. 5,530 5,758 3,481 2,277 63,193 (1,338) (104) - Circon Universial Inc. 8,552 7,663 0 7,663 0 (74) (58) - Empsonic Enterprises Inc. 805,351 1,570,760 0 1,570,760 0 (40) 121,713 - Reasil Microelectronics Corporation 798,224 2,106,503 540,283 1,566,220 2,125,111 151,584 111,152 - Ubilinx Technology, Inc 1,482,416 122,993 145,005 (22,012) 0 (414,002) (418,782) - Realtek Semiconductor (Hong Kong) Limited 5,516 1,082 0 1,082 0 (21) (21) - Realtek Semiconductor (ShenZhen) Corp. 142,540 374,415 103,803 270,612 397,051 22,182 13,415 - Bobitag Inc. 28,784 29,118 124 28,994 0 (1) 146 0.05 Realtek Singapore Private Limited 3,471,467 19,639,886 8,485,237 11,154,649 20,791,170 5,691,729 5,879,387 - Realtek Investment Singapore Private Limited 5,701,600 6,275,138 123 6,275,015 0 (325) 130,511 - Cortina Access, Inc. 374,828 777,335 58,700 718,635 204,759 13,395 21,968 - Cortina Network Systems (Shanghai) Co., Ltd. 102,629 189,497 27,343 162,154 104,435 4,520 (2,338) - Cortina Systems Taiwan Limited. 211,300 91,262 13,952 77,310 112,384 6,361 791 0.04 Realtek Viet Nam Co., Ltd 114,032 100,874 12,085 88,789 0 (16,151) (17,359) - RayMX Microelectronics Corporation 114,428 430,603 344,495 86,108 416,519 (20,015) 137 - Suzhou PanKore Integrated Circuit Technology Co., Ltd. 43,592 36,125 10,755 25,370 0 (17,915) (17,915) - Realtek Semiconductor (Malaysia) SDN. BHD. 74,144 65,948 1,034 64,914 0 (9,025) (9,150) -	-110- Company Paid in Capital Assets Liabilities Equity Operating revenue Operation Income Net Income for the year (After Taxes) EPS (After Taxes) Leading Enterprises Limited 14,080,956 14,261,272 1,021,847 13,239,425 0 (28,687) 671,282 - Amber Universal Inc. 4,487,621 3,378,780 11,404 3,367,376 0 (11,433) 51,962 - Bluocean Inc. 3,137,305 4,998,324 1,628,388 3,369,936 0 (2,801) 76,184 - Talent Eagle Enterprise Inc. 3,252,763 8,016,776 5,854,390 2,162,386 0 (5,602) (295,459) - Hung-wei Venture Capital Co., Ltd 250,000 637,499 4,553 632,946 0 (3,056) 150,791 6.03 Realsun Investments Co., Ltd 280,000 619,625 115 619,510 0 (102) 5,145 0.18 Realking Investments Limited 293,930 290,298 62 290,236 0 (46) (7,428) (0.25) Realsun Technology Corporation 5,000 5,118 0 5,118 0 (1) 57 0.11 Realtek Semiconductor (Japan) Corp. 5,530 5,758 3,481 2,277 63,193 (1,338) (104) - Circon Universial Inc. 8,552 7,663 0 7,663 0 (74) (58) - Empsonic Enterprises Inc. 805,351 1,570,760 0 1,570,760 0 (40) 121,713 - Reasil Microelectronics Corporation 798,224 2,106,503 540,283 1,566,220 2,125,111 151,584 111,152 - Ubilinx Technology, Inc 1,482,416 122,993 145,005 (22,012) 0 (414,002) (418,782) - Realtek Semiconductor (Hong Kong) Limited 5,516 1,082 0 1,082 0 (21) (21) - Realtek Semiconductor (ShenZhen) Corp. 142,540 374,415 103,803 270,612 397,051 22,182 13,415 - Bobitag Inc. 28,784 29,118 124 28,994 0 (1) 146 0.05 Realtek Singapore Private Limited 3,471,467 19,639,886 8,485,237 11,154,649 20,791,170 5,691,729 5,879,387 - Realtek Investment Singapore Private Limited 5,701,600 6,275,138 123 6,275,015 0 (325) 130,511 - Cortina Access, Inc. 374,828 777,335 58,700 718,635 204,759 13,395 21,968 - Cortina Network Systems (Shanghai) Co., Ltd. 102,629 189,497 27,343 162,154 104,435 4,520 (2,338) - Cortina Systems Taiwan Limited. 211,300 91,262 13,952 77,310 112,384 6,361 791 0.04 Realtek Viet Nam Co., Ltd 114,032 100,874 12,085 88,789 0 (16,151) (17,359) - RayMX Microelectronics Corporation 114,428 430,603 344,495 86,108 416,519 (20,015) 137 - Suzhou PanKore Integrated Circuit Technology Co., Ltd. 43,592 36,125 10,755 25,370 0 (17,915) (17,915) - Realtek Semiconductor (Malaysia) SDN. BHD. 74,144 65,948 1,034 64,914 0 (9,025) (9,150) -
EPS (After Taxes)	-	-	-	-	6.03	0.18	(0.25)	0.11	-	-	-	-	-	-	-	0.05	-	-	-	-	0.04	-	-	-	-
Net Income for the year (After Taxes)	671,282	51,962	76,184	(295,459)	150,791	5,145	(7,428)	57	(104)	(58)	121,713	111,152	(418,782)	(21)	13,415	146	5,879,387	130,511	21,968	(2,338)	791	(17,359)	137	(17,915)	(9,150)
Operation Income	(28,687)	(11,433)	(2,801)	(5,602)	(3,056)	(102)	(46)	(1)	(1,338)	(74)	(40)	151,584	(414,002)	(21)	22,182	(1)	5,691,729	(325)	13,395	4,520	6,361	(16,151)	(20,015)	(17,915)	(9,025)
Operating revenue	0	0	0	0	0	0	0	0	63,193	0	0	2,125,111	0	0	397,051	0	20,791,170	0	204,759	104,435	112,384	0	416,519	0	0
Equity	13,239,425	3,367,376	3,369,936	2,162,386	632,946	619,510	290,236	5,118	2,277	7,663	1,570,760	1,566,220	(22,012)	1,082	270,612	28,994	11,154,649	6,275,015	718,635	162,154	77,310	88,789	86,108	25,370	64,914
Liabilities	1,021,847	11,404	1,628,388	5,854,390	4,553	115	62	0	3,481	0	0	540,283	145,005	0	103,803	124	8,485,237	123	58,700	27,343	13,952	12,085	344,495	10,755	1,034
Assets	14,261,272	3,378,780	4,998,324	8,016,776	637,499	619,625	290,298	5,118	5,758	7,663	1,570,760	2,106,503	122,993	1,082	374,415	29,118	19,639,886	6,275,138	777,335	189,497	91,262	100,874	430,603	36,125	65,948
Paid in Capital	14,080,956	4,487,621	3,137,305	3,252,763	250,000	280,000	293,930	5,000	5,530	8,552	805,351	798,224	1,482,416	5,516	142,540	28,784	3,471,467	5,701,600	374,828	102,629	211,300	114,032	114,428	43,592	74,144
Company	Leading Enterprises Limited	Amber Universal Inc.	Bluocean Inc.	Talent Eagle Enterprise Inc.	Hung-wei Venture Capital Co., Ltd	Realsun Investments Co., Ltd	Realking Investments Limited	Realsun Technology Corporation	Realtek Semiconductor (Japan) Corp.	Circon Universial Inc.	Empsonic Enterprises Inc.	Reasil Microelectronics Corporation	Ubilinx Technology, Inc	Realtek Semiconductor (Hong Kong) Limited	Realtek Semiconductor (ShenZhen) Corp.	Bobitag Inc.	Realtek Singapore Private Limited	Realtek Investment Singapore Private Limited	Cortina Access, Inc.	Cortina Network Systems (Shanghai) Co., Ltd.	Cortina Systems Taiwan Limited.	Realtek Viet Nam Co., Ltd	RayMX Microelectronics Corporation	Suzhou PanKore Integrated Circuit Technology Co., Ltd.	Realtek Semiconductor (Malaysia) SDN. BHD.

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Affiliated Entities Consolidated Financial Statements:
The entities included in the consolidated financial statements are the same as the entities pursuant to the financial accounting standards to be included in the consolidated financial statements of the Parent Company. Therefore, please refer to consolidated financial reports for consolidated financial statement of affiliated entities.
II. Significant events with impact on shareholders’ rights or stock price regulated in Article 36-3-2 of the Securities and Exchange Act happened during last year to the date of the annual report printed: None
III. Acquisition or disposal of Realtek shares by subsidiaries during last year to the date of the annual report printed: None
IV. Issuance of private placement securities: None

V. Other Necessary Supplements: None

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Financial Information

I. Condensed balance sheet and Statement of Comprehensive Income, independent auditor’s name and audit opinion in the recent five years
Condensed Balance Sheet
1.1. Condensed Consolidated Balance Sheet

I. Condensed balance sheet and Statement of Comprehensive Income, independent audit name and audit opinion in the recent five years 1. Condensed Balance Sheet 1.1. Condensed Consolidated Balance Sheet	I. Condensed balance sheet and Statement of Comprehensive Income, independent audit name and audit opinion in the recent five years 1. Condensed Balance Sheet 1.1. Condensed Consolidated Balance Sheet	I. Condensed balance sheet and Statement of Comprehensive Income, independent audit name and audit opinion in the recent five years 1. Condensed Balance Sheet 1.1. Condensed Consolidated Balance Sheet	I. Condensed balance sheet and Statement of Comprehensive Income, independent audit name and audit opinion in the recent five years 1. Condensed Balance Sheet 1.1. Condensed Consolidated Balance Sheet	I. Condensed balance sheet and Statement of Comprehensive Income, independent audit name and audit opinion in the recent five years 1. Condensed Balance Sheet 1.1. Condensed Consolidated Balance Sheet	I. Condensed balance sheet and Statement of Comprehensive Income, independent audit name and audit opinion in the recent five years 1. Condensed Balance Sheet 1.1. Condensed Consolidated Balance Sheet
Unit: NT$thousands
Item Year	2016	2017	2018	2019	2020
Current assets Property, plant and equipment Right-of-use assets Intangible assets Other non-current assets Total assets Current liabilities Before distribution After distribution Non-current liabilities Total liabilities Before distribution After distribution Equity attributable to owners of the parent company Share capital Capital surplus Retained earnings Before distribution After distribution Other equity interest Treasury shares Non-controlling interest Before distribution	47,956,677 3,192,717 2,244,532 41,074 55,519,808 31,816,328 34,180,149 878,708 32,695,036 35,058,857 22,815,185 5,049,513 3,910,428 12,453,695 10,433,890 1,401,549 � 9,587 22,824,772	45,092,540 3,162,949 2,078,355 41,021 52,310,913 29,520,661 32,135,601 931,140 30,451,801 33,066,741 21,849,518 5,065,062 3,558,856 13,826,043 11,539,613 (600,443) � 9,594 21,859,112	51,153,278 3,316,578 1,686,249 50,169 58,252,314 32,502,254 36,058,922 1,103,161 33,605,415 37,162,083 24,637,292 5,080,955 3,236,659 15,917,714 12,869,141 401,964 � 9,607 24,646,899	64,289,591 3,446,162 1,403,245 1,952,960 61,646 73,431,830 43,970,187 49,168,236 2,232,959 46,203,146 51,401,195 27,218,985 5,080,955 2,736,854 19,618,212 15,022,048 (217,036) � 9,699 27,228,684 22,030,635	66,811,913 4,448,532 1,647,421 2,067,324 49,319 78,095,917 46,128,894 � 2,498,277 48,627,171 � 29,459,081 5,106,849 2,122,008 23,786,273 � (1,556,049) � 9,665 29,468,746 �
Total Equity After distribution	20,460,951	19,244,373	21,090,457

Note � 1. The above annual financial statements are audited by independent auditors.

2020 Distribution is approved by the Board of Directors.

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1.2. Condensed Balance Sheet – Parent Company

Unit: NT$ thousands

Item Year	2016	2017	2018	2019	2020
Current assets Property, plant and equipment Right-of-use assets Intangible assets Other non-current assets Total assets Current abilities Before distribution After distribution Non-current liabilities Total liabilities Before distribution After distribution Share capital Capital surplus Retained earnings Before distribution After distribution Other equity interest Treasury shares Total Equity Before distribution	16,506,277 2,700,331 1,604,684 6,356 47,739,038 24,550,306 26,914,127 373,547 24,923,853 27,287,674 5,049,513 3,910,428 12,453,695 10,433,890 1,401,549 � 22,815,185	12,587,447 2,679,455 1,495,547 6,456 50,512,739 28,199,217 30,814,157 464,004 28,663,221 31,278,161 5,065,062 3,558,856 13,826,043 11,539,613 (600,443) � 21,849,518	13,962,708 2,863,756 1,160,549 14,444 53,992,856 28,733,410 32,290,078 622,154 29,355,564 32,912,232 5,080,955 3,236,659 15,917,714 12,869,141 401,964 � 24,637,292	22,953,769 3,019,258 1,091,607 1,652,722 46,151 67,445,996 39,316,733 44,514,782 910,278 40,227,011 45,425,060 5,080,955 2,736,854 19,618,212 15,022,048 (217,036) � 27,218,985 22,020,936	21,247,908 4,027,004 1,390,104 1,955,629 34,805 70,040,894 39,289,791 � 1,292,022 40,581,813 � 5,106,849 2,122,008 23,786,273 � (1,556,049) � 29,459,081 �
After distribution	20,451,364	19,234,779	21,080,850

Note: 1. The above annual financial statements are audited by independent auditors.

2020 Distribution is approved by the Board of Directors.

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2. Condensed Statement of Comprehensive Income

2.1. Condensed Consolidated Statement of Comprehensive Income

Condensed Consolidated Statement of Comprehensive Income	Condensed Consolidated Statement of Comprehensive Income	Condensed Consolidated Statement of Comprehensive Income	Condensed Consolidated Statement of Comprehensive Income	Condensed Consolidated Statement of Comprehensive Income	Condensed Consolidated Statement of Comprehensive Income
Unit: NT$ thousands
Year Item Operating revenue Gross Profit Operating income Non-operating income(expenses) Net income before income tax, net Income From Operations of Continued Segments Income (Loss) From Operations of Discontinued Segments Net income for the year Total Comprehensive income for the year Net Profit Attributable to: Owner of the Company Net Profit(loss) Attributable to: Non- controlling interests Total Comprehensive Income Attributable to: Owner of the Company Total Comprehensive Income (Loss) Attributable to: Non-controlling interests	2016 38,914,031 16,896,737 3,342,764 (7,378) 3,335,386 3,039,837 � 3,039,837 2,563,674 3,039,875 (38) 2,563,712 (38)	2017 41,688,021 17,903,422 3,204,237 422,116 3,626,353 3,392,160 � 3,392,160 1,390,168 3,392,153 7 1,390,161 7	2018 45,805,746 20,460,870 3,764,460 892,741 4,657,201 4,350,781 � 4,350,781 5,054,264 4,350,768 13 5,054,251 13	2019 60,744,006 26,583,316 6,330,865 905,007 7,235,872 6,790,375 � 6,790,375 6,130,163 6,790,283 92 6,130,071 92 13.36	2020 77,759,470 33,248,739 8,639,563 716,582 9,356,145 8,793,526 � 8,793,526 7,425,261 8,793,477 49 7,425,212 49 17.24
Earningsper share	6.02	6.71	8.57

Note: 1. The above annual financial statements are audited by independent auditors.

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2.2. Condensed Statement of Comprehensive Income – Parent Company

2.2. Condensed Statement of Comprehensive Income – Parent Company	2.2. Condensed Statement of Comprehensive Income – Parent Company	2.2. Condensed Statement of Comprehensive Income – Parent Company	2.2. Condensed Statement of Comprehensive Income – Parent Company	2.2. Condensed Statement of Comprehensive Income – Parent Company	2.2. Condensed Statement of Comprehensive Income – Parent Company
Unit: NT$thousands
Year Item	2016	2017	2018	2019	2020
Operating revenue Gross Profit Operating income Non-operating income Net income before income tax, net Income From Operations of Continued Segments Net Income for the year Other comprehensive income (Loss), net Total Comprehensive income for the year	29,705,075 12,395,345 1,599,195 1,720,680 3,319,875 3,039,875 3,039,875 (476,163) 2,563,712	30,043,540 12,168,244 898,802 2,703,351 3,602,153 3,392,153 3,392,153 (2,001,992) 1,390,161	32,194,291 13,288,095 699,986 3,938,782 4,638,768 4,350,768 4,350,768 703,483 5,054,251	40,845,708 16,202,655 1,316,005 5,912,278 7,228,283 6,790,283 6,790,283 (660,212) 6,130,071 13.36	56,426,751 22,535,979 3,282,942 6,070,535 9,353,477 8,793,477 8,793,477 (1,368,265) 7,425,212 17.24
Earningsper share	6.02	6.71	8.57

Note: 1. The above annual financial statements are audited by independent auditors.

3. Name of Auditors and Issued Opinions in the recent five years

Year	Name of Auditors(CPA)	Auditor Opinion
2016	Li,Tien-Yi,Tsang,Kwok-Wah	Unqualified Opinions
2017	Hsueh,Seou-Hung,Li,Tien-Yi	Unqualified Opinions
2018	Hsueh,Seou-Hung,Li,Tien-Yi	Unqualified Opinions
2019	Lin,Yu-Kuan,Tsang,Kwok-Wah	Unqualified Opinions
2020	Lin,Yu-Kuan,Cheng,Ya-Huei	Unqualified Opinions

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II. Financial Analysis in the Recent Five Years

1. Consolidated Financial Analysis

1. Consolidated Financial Analysis	1. Consolidated Financial Analysis
Year Item		2016 2017 2018 2019 2020
Capital Structure	Debt ratio (%) Long-term fund to Property, plant and equipment (%)	58.88 58.21 57.68 62.91 62.26 714.90 691.09 743.14 790.11 662.43
Liquidity	Current ratio (%) Quick ratio (%) Times interest earned(times)	150.72 152.74 157.38 146.21 144.83 133.65 132.98 138.43 128.67 125 23.01 24.77 34.63 45.46 59.47
Operating Performance	Average collection turnover (times) Average collection days Inventory turnover (times) Payment turnover (times) Average inventory turnover days Fixed assets turnover (times) Property, plant and equipment turnover(times)	6.49 6.35 6.32 6.74 6.4 56 57 58 54 57 5.05 4.29 3.98 4.57 4.88 4.93 4.83 4.64 4.95 4.69 72 85 92 80 75 11.84 13.11 14.13 17.96 19.69 0.75 0.77 0.82 0.92 1.02
Profitability	Return on total assets (%) Return on stockholders’ equity (%) Profit before tax to paid-in capital (%) Profit after tax to net sales (%) Earnings per share (NT$)	6.2 6.56 8.1 10.54 11.79 13.47 15.18 18.71 26.17 31.01 66.05 71.59 91.65 142.41 183.2 7.81 8.13 9.49 11.17 11.30 6.02 6.71 8.57 13.36 17.24
Cash Flow	Cash flow ratio (%) Cash flow adequacy ratio (%) Cash flow reinvestment ratio(%)	16.42 12.73 25.20 27.86 33.47 121.3 100 109.92 124.89 143.56 11.78 4.58 17.53 26.05 27.31
Leverage	Operating leverage Financial leverage	4.93 5.51 5.31 4.11 3.79 1.04 1.05 1.03 1.02 1.01
Analysis of Changes equal to or over 20% in the recent two years: Increase in Times interest earned: Mainly due to increase in net income. Increase in profitability: Mainly due to increase in net income. Increase in Cash flow ratio: Mainlydue to increase in cash flows from operatingactivities.

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2. Financial Analysis-Parent Company

2. Financial Analysis-Parent Company	2. Financial Analysis-Parent Company
Year Item		2016 2017 2018 2019 2020
Capital Structure	Debt ratio (%) Long-term fund to Property, plant and equipment(%)	52.2 56.74 54.36 59.64 57.94 844.9 815.44 860.31 901.51 731.53
Liquidity	Current ratio (%) Quick ratio (%) Times interest earned(Times)	67.23 44.63 48.59 58.38 54.07 53.11 28.10 33.81 43.05 37.77 27.96 25.72 34.55 50.31 66.31
Operating Performance	Average collection turnover (Times) Average collection days Inventory turnover (times) Payment turnover (times) Average inventory turnover days Fixed assets turnover (times) Property, plant and equipment turnover(times)	6.94 6.00 5.66 6.14 6.49 52 60 64 59 56 5.15 4.22 3.92 4.34 4.91 5.11 4.67 4.60 4.87 4.82 70 86 93 84 74 10.89 11.16 11.61 13.88 16.01 0.64 0.61 0.61 0.67 0.82
Profitability Cash Flow	Return on total assets (%) Return on stockholders’ equity (%) Profit before tax to paid-in capital (%) Profit after tax to net sales (%) Earnings per share (NT$) Cash flow ratio (%) Cash flow adequacy ratio (%) Cash flow reinvestment ratio (%)	6.87 7.18 8.57 11.40 12.97 13.48 15.18 18.71 26.18 31.02 65.74 71.11 91.29 142.26 183.15 10.23 11.29 13.51 16.62 15.58 6.02 6.71 8.57 13.36 17.24 15.64 6.99 16.13 10.06 24.54 103.78 71.41 74.81 59.46 82.98 6.79 -2.09 6.10 1.26 11.72
Leverage	Operating leverage Financial leverage	10.52 13.72 19.19 12.50 6.97 1.08 1.19 1.25 1.12 1.04
Analysis of Changes equal to or over 20% in the recent two years: Increase in Times interest earned: Mainly due to increase in net income. Increase in the turnover rate of total asset: Mainly due to increase in operating revenue. Increase in profitability: Mainly due to increase in net income. Increase in Cash flow ratio: Mainly due to increase in cash flows from operating activities. Decrease in Operatingleverage: Mainlydue to increase in operatingincome.

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Glossary:

Capital Structure Analysis:
(1). Debt ratio = Total liabilities / Total assets
(2). Long-term fund to property, plant and equipment ratio = (Shareholders’ equity + non-current liabilities) / Net property, plant and equipment
Liquidity Analysis:
(1). Current ratio = Current assets / Current liabilities
(2). Quick ratio = (Current assets – inventories – prepaid expenses) / Current liabilities
(3). Times interest earned = Earnings before interest and taxes / Interest expenses
Operating Performance Analysis:
(1). Average collection turnover = Net sales / Average trade receivables
(2). Days sales outstanding = 365 / Average collection turnover
(3). Average inventory turnover = Operating costs / Average inventory
(4). Average payment turnover = operating costs / Average trade payables
(5). Average inventory turnover days = 365 / Average inventory turnover
(6). Property, plant and equipment turnover = Net sales / Average property, plant and equipment
(7). Total assets turnover = Net sales / total assets
Profitability Analysis:
(1). Return on total assets = [Net income + Interest expenses x (1 – tax rate)] / Average total assets
(2). Return on equity attributable to shareholders of the parent = Net income attributable to shareholders of the parent / Average equity attributable to shareholders of the parent
(3). Net margin = Net income / Net sales
(4). Earnings per share = (Net income attributable to shareholders of the parent – preferred stock dividend) / Weighted average number of shares outstanding
Cash Flow:
(1). Cash flow ratio = Net cash provided by operating activities / Current Liabilities
(2). Cash flow adequacy ratio = Five-year sum of cash from operations / Five-year sum of capital expenditures, inventory additions, and cash dividend
(3). Cash flow reinvestment ratio = (Cash provided by operating activities – cash dividends) / (Gross property, plant and equipment + long-term investments + other noncurrent assets + working capital)
Leverage:
(1). Operating leverage = (Net sales – variable cost) / Operating income
(2). Financial leverage = Operating income / (Operating income – interest expenses)

III. Has the company or its affiliates experienced financial difficulties in the most recent years up to the date of publication of the 2020 annual report: None.

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IV. Audit Committee’s Review Report

Audit Committee’s Review Report

The Company's 2020 business report, financial statements and distribution of retained earnings have been prepared by the Board of Directors. The financial statements also have been audited by Pricewaterhouse Coopers' with the opinion that they present fairly the Company’s financial position, operating performance, and cash flows. The Audit Committee has reviewed the business report, financial statements, and distribution of retained earnings, and found no irregularities. We hereby according to Securities and Exchange Act and Company Act submit this report.

To 2021 Annual Shareholders’ Meeting.

Realtek Semiconductor Corp.

Chairman of the Audit Committee: Ou Yang, Wen-Han

March 19, 2021

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-119-

V. Consolidated Financial Statements

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Refer to Notes 4(6) and 4(9) of the consolidated financial statements for the accounting policies on cash and cash equivalents and time deposits that do not qualify as cash equivalents. The balance of cash and cash equivalents was NT$7,296,360 thousand, constituting 9% of the consolidated total assets as of December 31, 2020, as described in Note 6(1) of the consolidated financial statements. Time deposits that do not meet the definition of cash and cash equivalents, which refers to short-term, highly liquid investments that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value are classified as "financial assets at amortised cost � current" and "financial assets at amortised cost � non � current". The balance of these time deposits amounted to NT$35,410,003 thousand, constituting 45% of consolidated total assets, refer to Note 6(4) of the consolidated financial statements for the details. The abovementioned assets constituted 54% of the total assets, have a significant impact on the consolidated financial statements, the nature and usage of those bank accounts varies, and the Group transacts with various financial institutions, thus, audit of cash in bank was considered as one of the key audit matters.

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New Standards,Interpretations and Amendments	Effective date by International Accounting Standards Board
Amendments to IAS 1 and IAS 8,�Disclosure initiative-definition of material� Amendments to IFRS 3,�Definition of a business� Amendments to IFRS 9, IAS 39 and IFRS 7,�Interest rate benchmark reform� Amendment to IFRS 16,�Covid-19-related rent concessions�	January 1, 2020 January 1, 2020 January 1, 2020 June 1, 2020 (Note)

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New Standards,Interpretations and Amendments	Effective date by International Accounting Standards Board
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New Standards,Interpretations and Amendments

Effective date by
International Accounting
Standards Board

Amendments to IFRS 3,�Reference to the conceptual framework�
Amendments to IFRS 10 and IAS 28,�Sale or contribution of assets
between an investor and its associate or joint venture�
IFRS 17,�Insurance contracts�
Amendments to IFRS 17, 'Insurance contracts'
Amendments to IAS 1,�Classification of liabilities as current
or non-current�
Amendments to IAS 1,�Disclosure of accounting policies�
Amendments to IAS 8,�Definition of accounting estimates�
Amendments to IAS 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

January 1, 2022
To be determined by
International Accounting
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January 1, 2023
January 1, 2023
January 1, 2023
January 1, 2023
January 1, 2023
January 1, 2022
January 1, 2022
January 1, 2022

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(e) When the Group loses control of a subsidiary, the Group remeasures any investment retained

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-136-

in the former subsidiary at its fair value. That fair value is regarded as the fair value on initial recognition of a financial asset or the cost on initial recognition of the associate or joint venture. Any difference between fair value and carrying amount is recognized in profit or loss. All amounts previously recognized in other comprehensive income in relation to the subsidiary are reclassified to profit or loss on the same basis as would be required if the related assets or liabilities were disposed of. That is, when the Group loses control of a subsidiary, all gains or losses previously recognized in other comprehensive income in relation to the subsidiary should be reclassified from equity to profit or loss, if such gains or losses would be reclassified to profit or loss when the related assets or liabilities are disposed of.

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Name of investor	Name of subsidiary	Main business activities	Ownership (%)	Ownership (%)	Description
			December 31, 2020	December 31, 2019
Realtek Semiconductor Corporation Realtek Semiconductor Corporation Realtek Semiconductor Corporation Realtek Semiconductor Corporation Realtek Semiconductor Corporation Realtek Semiconductor Corporation Realtek Semiconductor Corporation	Leading Enterprises Limited Amber Universal Inc. Realtek Singapore Private Limited Bluocean Inc. Talent Eagle Enterprise Inc. Realtek Investment Singapore Private Limited Realsun Investment Co., Ltd.	Investment holdings � ICs manufacturing, design, research, development, sales, and marketing Investment holdings � � �	100% 100% 100% 100% 100% 100% 100%	100% 100% 89% 100% 100% 100% 100%	Note 3

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-137-

Name of investor	Name of subsidiary	Main business activities	Ownership (%)	Ownership (%)	Description
			December 31, 2020	December 31, 2019
Realtek Semiconductor Corporation Realtek Semiconductor Corporation Realtek Semiconductor Corporation Realtek Semiconductor Corporation Leading Enterprises Limited Leading Enterprises Limited Leading Enterprises Limited Amber Universal Inc.	Hung-wei Venture Capital Co., Ltd. Realking Investments Co., Ltd. Realsun Technology Corporation Bobitag Inc. Realtek Semiconductor (Japan) Corp. Circon Universal Inc. Realtek Singapore Private Limited Realtek Semiconductor (Hong Kong) Limited	Investment holdings � ICs manufacturing, design, research, development, sales, and marketing Manufacture and installation of computer equipment and wholesale, retail and related service of electronic materials and information / software ICs design,sales and consultancy Investment holdings ICs manufacturing, design, research, development, sales, and marketing Information services and technical support	100% 100% 100% 67% 100% 100% - 100%	100% 100% 100% 67% 100% 100% 11% 100%	Note 3

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-138-

Name of investor	Name of subsidiary	Main business activities	Ownership (%)	Ownership (%)	Description Note 4 Note 4
			December 31, 2020	December 31,2019
Amber Universal Inc. Empsonic Enterprises Inc. Talent Eagle Enterprise Inc. Realtek Singapore Private Limited Realtek Singapore Private Limited Realtek Singapore Private Limited Realtek Singapore Private Limited Realtek Singapore Private Limited Realtek Singapore Private Limited Realsil Microelectronics Corp.	Realtek Semiconductor (Shen Zhen) Corp. Realsil Microelectronics Corp. Ubilinx Technology Inc. Cortina Access Inc. Cortina Systems Taiwan Limited Cortina Network Systems Shanghai Co., Ltd. Empsonic Enterprises Inc. Realtek Viet Nam Co., Ltd. RayMX Microelectronics Corp. RayMX Microelectronics Corp.	R&D and technical support � R&D and information services � R&D and technical support � Investment holdings R&D and technical support ICs manufacturing, design, research, development, sales, and marketing �	100% 100% 100% 100% 100% 100% 100% 100% 19% 81%	100% 100% 100% 100% 100% 100% 100% 100% 29% 71%

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Name of investor	Name of subsidiary	Main business activities	Ownership (%)	Ownership (%)	Description Note 2 Note 2 Note 1
			December 31, 2020	December 31,2019
Realsil Microelectronics Corp. Realtek Semiconductor (Shen Zhen) Corp. Bluocean Inc.	Suzhou PanKore Integrated Circuit Technology Co. Ltd. Suzhou PanKore Integrated Circuit Technology Co. Ltd. Realtek Semiconductor (Malaysia) Sdn. Bhd.	ICs manufacturing, design, research, development, sales, and marketing � R&D and teachnical support	80% 20% 100%	- - -

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-145-

(18) ��

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(21) ��

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(22) ��

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-146-

(23) ��

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(24) ��

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(25) ��

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-147-

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-148-

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(31) ��
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-149-

5. ��

��

(1) ��

��

(2) ��

��

��

6. ��

(1) ��

�� ��
Cash on hand and revolving funds Checking accounts and demand deposits Time deposits	December 31,2020 1,011 $ 7,210,606 84,743 7,296,360 $	December 31,2019
		841 $ 4,221,046 1,506,024
		5,727,911 $

��

(2) ��

��
Items Current items: Financial assets mandatorily measured at fair value through profit or loss Listed stocks Beneficiary certificates	December 31,2020 298,615 $ 782,042 1,080,657 $	December 31,2019
		69,001 $ 5,011
		74,012 $

��

-150-

��

�� ��	��	��
Financial assets mandatorily measured at fair value through profit or loss Equity instruments Beneficiary certificates	Year ended Year ended December 31,2020 December 31,2019 229,614 $ 780 ($ 1,856 6,544 231,470 $ 5,764 $	Year ended December 31,2019
		5,764 $

��

(3) ��

Items		December 31,2020 571,496 $ 16,355 2,031,480 2,619,331 $	December 31,2019
Non-current items: Equity instruments Listed stocks Emerging stocks Unlisted stocks			492,258 $ 13,357 1,353,863
			1,859,478 $

�� on December 31, 2020 and 2019, respectively.
��

Equity instruments at fair value through other comprehensive income Fair value change recognised in other comprehensive income Cumulative losses reclassified to retained earnings due to derecognition	Year ended December 31,2020 829,923 $ - $	Year ended December 31,2019
		227,352 $
		41,212 $

��he Group has no financial assets��

��

-151-

(4) ��

��
Items	December 31,2020 35,330,346 $ 79,657 $	December 31,2019
Current items: Time deposits Non-current items: Time deposits		39,558,054 $
		69,477 $

��
��

(5) ��

��
		December31,2020		December31,2019
Accounts receivable		$	10,917,737	$	8,321,221
Accounts receivable - related parties			2,830,691		2,209,114
Less: Allowance for bad debts	(		95,360)	(	79,607)
		$	13,653,068	$	10,450,728
��
	December 31,2020			December 31,2019
Not past due	$		13,471,549	$	10,153,312
Up to 30 days			269,996		376,366
31 to 90 days			6,449		1
Over 90 days			434		656
	$		13,748,428	$	10,530,335

��

��December 31, 2020 and 2019��

��he Group has no��

��

(6) ��

��
Raw materials Work in process Finished goods		December 31,2020
	Allowance for obsolescence and Cost market value decline 1,308,241 $ 20,696) ($ 6,342,702 645,173) ( 2,121,699 483,796) ( 9,772,642 $ 1,149,665) ($		Book value
			1,287,545 $ 5,697,529 1,637,903
			8,622,977 $

��

-152-

December 31, 2019

	December 31,2019
Raw materials Work in process Finished goods	Allowance for obsolescence and Cost market value decline 1,054,744 $ 26,672) ($ 4,624,767 355,239) ( 2,550,754 456,819) ( 8,230,265 $ 838,730) ($	Book value
		1,028,072 $ 4,269,528 2,093,935
		7,391,535 $

��for the years ended December 31��

	��
(7)	�� Cost of inventories sold and others Loss on market value decline and obsolete and slow-moving inventory Loss on scrap inventory Technology Partner V Venture Capital Corporation 5V Technologies, Taiwan Ltd. Estinet Technologies Incorporation Innorich Venture Capital Corp.	Year ended December31,2020 43,984,825 $ 318,025 207,881 44,510,731 $ December 31,2020 255 $ - 9,158 147,441 156,854 $	Year ended December 31,2019
			33,813,815 $ 166,028 180,847
			34,160,690 $
			December 31,2019
			22,247 $ - 3,701 160,024
			185,972 $

��$30,980 and $23,833 for the years ended December 31��
��
��

��

-153-

(8) ��

��	��
At January 1, 2020 Cost Accumulated depreciation and impairment 2020 Opening net book amount Additions Disposals Reclassifications Depreciation Net exchange difference Closing net book amount At December 31, 2020 Cost Accumulated depreciation and impairment At January 1, 2019 Cost Accumulated depreciation and impairment 2019 Opening net book amount Additions Disposals Reclassifications Depreciation Net exchange difference Closing net book amount At December 31, 2019 Cost Accumulated depreciation and impairment	Land Buildings Machinery Test equipment Office equipment Others Total - $ 3,222,502 $ 3,899,552 $ 2,623,658 $ 280,814 $ 850,212 $ 10,876,738 $ - 1,305,695) ( 3,529,856) ( 1,809,993) ( 176,813) ( 608,219) ( 7,430,576) ( - $ 1,916,807 $ 369,696 $ 813,665 $ 104,001 $ 241,993 $ 3,446,162 $ - $ 1,916,807 $ 369,696 $ 813,665 $ 104,001 $ 241,993 $ 3,446,162 $ 387,280 160,674 132,151 696,848 53,893 297,232 1,728,078 - 7) ( - 23) ( 162) ( 7) ( 199) ( - 26,110 5) ( 1,696 - 27,801) ( - - 108,601) ( 94,750) ( 416,378) ( 32,250) ( 79,708) ( 731,687) ( - 5,799 1,965 587) ( 111 1,110) ( 6,178 387,280 $ 2,000,782 $ 409,057 $ 1,095,221 $ 125,593 $ 430,599 $ 4,448,532 $ 387,280 $ 3,414,624 $ 3,838,068 $ 3,290,307 $ 333,113 $ 1,111,004 $ 12,374,396 $ - 1,413,842) ( 3,429,011) ( 2,195,086) ( 207,520) ( 680,405) ( 7,925,864) ( 387,280 $ 2,000,782 $ 409,057 $ 1,095,221 $ 125,593 $ 430,599 $ 4,448,532 $ Land Buildings Machinery Test equipment Office equipment Others Total - $ 3,246,163 $ 3,726,816 $ 2,225,944 $ 232,162 $ 754,293 $ 10,185,378 $ - 1,197,942) ( 3,456,955) ( 1,514,287) ( 151,702) ( 547,914) ( 6,868,800) ( - $ 2,048,221 $ 269,861 $ 711,657 $ 80,460 $ 206,379 $ 3,316,578 $ - $ 2,048,221 $ 269,861 $ 711,657 $ 80,460 $ 206,379 $ 3,316,578 $ - - 147,583 425,288 51,034 126,070 749,975 - 18) ( - 105) ( 124) ( 2) ( 249) ( - - 27,167 - - 27,167) ( - - 121,031) ( 77,024) ( 318,746) ( 27,082) ( 63,137) ( 607,020) ( - 10,365) ( 2,109 4,429) ( 287) ( 150) ( 13,122) ( - $ 1,916,807 $ 369,696 $ 813,665 $ 104,001 $ 241,993 $ 3,446,162 $ - $ 3,222,502 $ 3,899,552 $ 2,623,658 $ 280,814 $ 850,212 $ 10,876,738 $ - 1,305,695) ( 3,529,856) ( 1,809,993) ( 176,813) ( 608,219) ( 7,430,576) ( - $ 1,916,807 $ 369,696 $ 813,665 $ 104,001 $ 241,993 $ 3,446,162 $	Total
		3,446,162 $

��

� (9) ��

��

��

-154-

��

Land Buildings Land Buildings	Carrying	amount
	December 31,2020 December 31,2019 1,398,253 $ 1,082,850 $ 249,168 320,395 1,647,421 $ 1,403,245 $ Depreciation	December 31,2019
		1,082,850 $ 320,395
		1,403,245 $
	Year ended December 31,2020 26,828 $ 79,389 106,217 $	Year ended December 31,2019
		20,983 $ 68,826
		89,809 $

�� the years ended December 31�� $349,933 and $432,193��
��

Items affecting profit or loss Interest expense on lease liabilities	Year ended December 31,2020 28,913 $	Year ended December31,2019
		23,915 $

��years ended December 31�� $117,604 and $100,647��

(10) ��

��years ended December 31�� $117,604 and $100,647�� ��	��	��	��	��	��	��
			Buildings
		2020			2019
At January 1
Cost	$		80,799	$		83,688
Accumulated depreciation and impairment	(		31,663)	(		28,820)
	$		49,136	$		54,868
Opening net book value	$		49,136	$		54,868
Depreciation	(		3,807)	(		3,977)
Net exchange difference			361	(		1,755)
Closing net book amount	$		45,690	$		49,136
At December 31
Cost	$		81,499	$		80,799
Accumulated depreciation and impairment	(		35,809)	(		31,663)
	$		45,690	$		49,136

��

-155-

��

��
Rental income from the lease of the investment property Operating expenses arising from the investment property that generated rental income during the period	Year ended December 31,2020 1,127 $ 3,807 $	Year ended December 31,2019
		1,486 $
		3,977 $

��

(11) ��

��
		Computer		Intellectual
		software		property		Goodwill		Others		Total
At January 1, 2020
Cost	$	4,083,596	$	4,500,995	$	645,724	$	291,141	$	9,521,456
Accumulated amortisation
and impairment	(	3,307,376)	(	3,550,602)	(	498,707)	(	211,811)	(	7,568,496)
	$	776,220	$	950,393	$	147,017	$	79,330	$	1,952,960
2020
Opening net book amount	$	776,220	$	950,393	$	147,017	$	79,330	$	1,952,960
Additions		1,006,607		397,771		-		-		1,404,378
Reclassifications		540		-		-	(	572)	(	32)
Amortisation	(	683,120)	(	431,854)		-	(	27,248)	(	1,142,222)
Impairment		-		-	(	140,854)		-	(	140,854)
Net exchange difference		22		2,378	(	6,163)	(	3,143)	(	6,906)
Closing net book amount	$	1,100,269	$	918,688	$	-	$	48,367	$	2,067,324
At December 31, 2020
Cost	$	5,088,065	$	4,900,421	$	639,561	$	275,206	$	10,903,253
Accumulated amortisation
and impairment	(	3,987,796)	(	3,981,733)	(	639,561)	(	226,839)	(	8,835,929)
	$	1,100,269	$	918,688	$	-	$	48,367	$	2,067,324

��

-156-

		Computer		Intellectual
		software		property		Goodwill		Others		Total
At January 1, 2019
Cost	$	3,234,611	$	3,911,807	$	650,778	$	298,916	$	8,096,112
Accumulated amortisation
and impairment	(	2,738,897)	(	3,149,643)	(	350,621)	(	170,702)	(	6,409,863)
	$	495,714	$	762,164	$	300,157	$	128,214	$	1,686,249
2019
Opening net book amount	$	495,714	$	762,164	$	300,157	$	128,214	$	1,686,249
Additions		847,571		596,018		-		597		1,444,186
Reclassifications		1,800		-		-	(	2,326)	(	526)
Amortisation	(	568,851)	(	405,131)		-	(	45,803)	(	1,019,785)
Impairment		-		-	(	148,086)		-	(	148,086)
Net exchange difference	(	14)	(	2,658)	(	5,054)	(	1,352)	(	9,078)
Closing net book amount	$	776,220	$	950,393	$	147,017	$	79,330	$	1,952,960
At December 31, 2019
Cost	$	4,083,596	$	4,500,995	$	645,724	$	291,141	$	9,521,456
Accumulated amortisation
and impairment	(	3,307,376)	(	3,550,602)	(	498,707)	(	211,811)	(	7,568,496)
	$	776,220	$	950,393	$	147,017	$	79,330	$	1,952,960

��

Operating costs Operating expenses	Year ended December 31,2020 6,080 $ 1,136,142 1,142,222 $	Year ended December 31,2019
		4,107 $ 1,015,678
		1,019,785 $

(12) ��

��

Year ended December 31, 2020 Recognised in profit or Recognised in other loss comprehensive income Impairment loss�Goodwill $ 140,854 $ -

Year ended December 31, 2019 Recognised in profit or Recognised in other loss comprehensive income Impairment loss�Goodwill $ 148,086 $ -

��

��

-157-

��

��
��
��

��

(13) ��

�� ��
Type of borrowings Bank borrowings Unsecured borrowings Type of borrowings Bank borrowings Unsecured borrowings	December 31,2020 11,456,690 $ December 31,2019 18,966,042 $	Interest rate range 0.57%~0.60% Interest rate range 0.71%~2.64%	Collateral
			None Collateral
			None

��$124,983 and $136,339��the years ended December 31��

(14) ��

December 31�� ��
Accrued salaries Payable for employees' compensation Other accrued expenses Payables on equipment Payables on software and intellectual property Others	December 31,2020 5,286,534 $ 6,145,470 1,850,766 58,959 1,152,591 171,133 14,665,453 $	December 31,2019
		4,041,988 $ 3,978,638 1,715,223 113,350 725,345 171,624
		10,746,168 $

��

-158-

(15) ��

��

��

December 31, 2020 December 31, 2019 Present value of defined benefit obligations ($ 600,923) ($ 595,932) Fair value of plan assets 501,842 522,312 Net liability in the balance sheet ($ 99,081) ($ 73,620) ��

	Present value of	Present value of		Fair value of
	defined benefit			plan		Net defined
		obligations		assets	benefit liability
Year ended December 31, 2020
At January 1	($	595,932)	$	522,312	($	73,620)
Current service cost	(	1,580)		-	(	1,580)
Interest (expense) income	(	4,727)		4,098	(	629)
	(	602,239)		526,410	(	75,829)
Remeasurements:
Return on plan assets (excluding amounts		-		5,910		5,910
included in interest income or expense)
Change in demographic assumptions	(	3,573)		-	(	3,573)
Change in financial assumptions	(	17,863)		-	(	17,863)
Experience adjustments	(	13,726)		-	(	13,726)
	(	35,162)		5,910	(	29,252)
Pension fund contribution		-		6,000		6,000
Paid pension		36,478	(	36,478)		-
At December 31	($	600,923)	$	501,842	($	99,081)

��

-159-

		Present value of	Present value of		Fair value of
		defined benefit			plan		Net defined
			obligations		assets	benefit liability
Year ended December 31, 2019
At January 1	($		568,382)	$	495,415	($	72,967)
Current service cost	(		2,709)		-	(	2,709)
Interest (expense) income	(		6,366)		5,544	(	822)
	(		577,457)		500,959	(	76,498)
Remeasurements:
Return on plan assets (excluding amounts			-		24,973		24,973
included in interest income or expense)
Change in demographic assumptions	(		1,283)		-	(	1,283)
Change in financial assumptions	(		6,415)		-	(	6,415)
Experience adjustments	(		20,397)		-	(	20,397)
	(		28,095)		24,973	(	3,122)
Pension fund contribution			-		6,000		6,000
Paid pension			9,620	(	9,620)		-
At December 31	($		595,932)	$	522,312	($	73,620)

��

Discount rate Future salary increases	Years ended December 31,	Years ended December 31,
	2020 0.3% 4.75%	2019
		0.8%
		5%

��

-160-

Increase by 0.25% Decrease by 0.25% 16,617 $ 17,201) ($ Discount rate Increase by 0.25% Decrease by 0.25% 16,562 $ 17,221) ($ Discount rate	Increase by 0.25% Decrease by 0.25% 16,617 $ 17,201) ($ Discount rate Increase by 0.25% Decrease by 0.25% 16,562 $ 17,221) ($ Discount rate
Increase by 0.25%			Increase by 0.25%

Increase by 0.25%			Increase by 0.25%
16,562 $	17,221) ($	16,154) ($		15,635 $

��

��

��

Within 1 year 2~5 years 5~10 years Over 10 years	272,184 $ 108,918 191,135 35,077
	607,314 $

��
��

��

-161-

��

�� the years ended December 31�� $290,735 and $259,176��

(16) ��

ended December 31�� ��	��$290,73	5 and $259,176��	��	��
		2020		2019
At January 1	$	1,075,809	$	999,868
Changes in provision		-		102,181
Effect of exchange rate	(	57,103)	(	26,240)
At December 31	$	1,018,706	$	1,075,809

��

(17) ��

��

At January 1 Employees�compensation transferred to common shares At December 31	2020 2019 508,095 508,095 2,589 - 510,684 508,095 Unit : Thousands of shares

��
��

(18) ��

��

-162-

��

��	��
Sharepremium At January 1 2,688,155 $ Employees' compensation tranferred to common shares 393,591 Change in associates accounted for under equity method - Cash from capital surplus 1,021,370) ( Cash dividends returned - At December 31 2,060,376 $ Sharepremium At January 1 3,196,250 $ Change in associates accounted for under equity method - Cash from capital surplus 508,095) ( Cash dividends returned - At December 31 2,688,155 $		2020
		Change in associates accounted for under equitymethod 48,272 $ - 12,763 - - 61,035 $ 2019
		Change in associates accounted for under equitymethod 40,208 $ 8,064 - - 48,272 $

(19) ��

��

-163-

��

��
��
�� Th�� on June 10, 2020 and June 12, 2019. Details are summarised below:

Legal reserve (Reversal of) special reserve Cash dividends Total	Dividends per share Dividends per share Amount (in dollars) Amount (in dollars) 674,907 $ - $ 435,077 $ - $ 217,036 - 600,443) ( - 4,596,164 9.00 3,048,573 6.00 5,488,107 $ 9.00 $ 2,883,207 $ 6.00 $ 2019 2018	2018	2018
	Amount 674,907 $ 217,036 4,596,164 5,488,107 $		Dividends per share (in dollars)
			- $ - 6.00
			6.00 $

��
��

��

-164-

(20) ��

(20)	��	��
(21)	�� �� Unrealised Currency gains on valuation translation difference Total At January 1 545,107 $ 762,143) ($ 217,036) ($ Revaluation: �Group 829,923 - 829,923 �Associates 9,879 - 9,879 Currency translation differences: �Group - 2,178,815) ( 2,178,815) ( At December 31 1,384,909 $ 2,940,958) ($ 1,556,049) ($ 2020 Unrealised Currency gains on valuation translation difference Total At January 1 272,153 $ 129,811 $ 401,964 $ Revaluation: �� 227,352 - 227,352 �� 4,390 - 4,390 Reclassified to retained earnings 41,212 - 41,212 Currency translation differences: �� - 891,954) ( 891,954) ( At December 31 545,107 $ 762,143) ($ 217,036) ($ 2019 Year ended Year ended December 31,2020 December 31,2019 Revenue from contracts with customers 77,759,470 $ 60,744,006 $

		60,744,006 $

��

-165-

Year ended December 31, 2020 Revenue from external customer contracts Timing of revenue recognition At a point in time Year ended December 31, 2019 Revenue from external customer contracts Timing of revenue recognition At a point in time	Integrated circuitproducts 77,588,285 $ 77,588,285 $ Integrated circuitproducts 60,623,210 $ 60,623,210 $	Others 171,185 $ 171,185 $ Others 120,796 $ 120,796 $	Total
			77,759,470 $
			77,759,470 $
			Total
			60,744,006 $
			60,744,006 $

��

	December	31,2020	December	31,2019		January1,2019
Contract liabilities�
advance sales receipts	$	336,254	$	104,974	$	148,696
��	��				��
��

��
Contract liabilities�advance sales receipts	Year ended December31,2020 98,318 $	Year ended December31,2019
		136,590 $

��

�� �� Refund liabilities�current Interest income from bank deposits Dividend income Grant income Other income	December31,2020 7,386,910 $ Year ended December31,2020 833,821 $ Year ended December 31,2020 24,877 $ 60,635 91,453 176,965 $	December31,2019
		5,368,247 $
		Year ended December31,2019
		1,277,211 $
		Year ended December 31,2019
		30,150 $ 44,434 60,984
		135,568 $

(22) ��

(23) ��

��

-166-

(24) ��

��
			Year ended			Year ended
		December 31,2020			December 31,2019
Losses on disposal of property, plant and
equipment	$		1,501	($		157)
Gains on disposal of investments			466			-
Net currency exchange losses	(		206,408)	(		125,351)
Gains on financial assets at fair value through
profit or loss			231,470			5,764
Impairment loss of intangible assets	(		140,854)	(		148,086)
Other impairment loss			-	(		41,397)
Other income (losses)			4,497	(		14,458)
	($		109,328)	($		323,685)

(25) ��

��	109,328) ($	323,685 ($
�� �� Interest expense Bank borrowings Lease liabilities Employee benefit expenses Depreciation Amortisation Wages and salaries Labor and health insurance fees Pension costs Other personnel expenses Total	Year ended December 31,2020 124,983 $ 28,913 153,896 $ Year ended December31,2020 17,418,281 $ 841,711 $ 1,142,222 $ Year ended December 31,2020 16,381,081 $ 505,515 292,944 238,741 17,418,281 $	Year ended December 31,2019
		136,339 $ 23,915
		160,254 $
		Year ended December 31, 2019
		13,777,223 $
		700,806 $
		1,019,785 $
		Year ended December 31,2019
		12,900,156 $ 440,945 262,707 173,415
		13,777,223 $

(26) ��

(27) ��

��

-167-

��

�� years ended December 31�� $2,586,317 and $2,097,424��$90,000 and $119,828��
��

��

(28) ��

��

�� �� ��
			Year ended			Year ended
		December 31,2020			December 31,2019
Current income tax:
Current income tax on profit for the year	$		625,190	$		396,097
Tax on undistributed retained earnings			63,048			74,745
Prior year income tax overestimation	(		121,055)	(		19,067)
Total current income tax			567,183			451,775
Deferred income tax:
Origination and reversal of temporary
differences	(		4,564)	(		6,278)
Income tax expense	$		562,619	$		445,497
��
			Year ended			Year ended
		December 31,2020			December 31,2019
Income tax calculated based on income before
tax		$	1,873,197		$	1,453,137
Expenses disallowed by tax regulation and
effects from tax-exempt income	(		1,252,571)	(		1,063,318)
Prior year income tax over estimation	(		121,055)	(		19,067)
Tax on undistributed retained earnings			63,048			74,745
Income tax expense		$	562,619		$	445,497

��

-168-

��

��
		Year ended			December 31,2020
				Recognised in profit
		January1			or loss		December 31
Deferred income
tax assets:
-Temporary differences:
Unrealised loss on
market price decline
and obsolete and
slow-moving
inventories and
others	$	114,163	$		55,713	$	169,876
Deferred income
tax liabilities:
-Temporary differences:
Unrealised exchange
gain	(	51,723)	(		51,149)	(	102,872)
	$	62,440	$		4,564	$	67,004
		Year ended			December 31,2019
				Recognised in profit
		January1			or loss		December 31
Deferred income
tax assets:
-Temporary differences:
Unrealised loss on
market price decline
and obsolete and
slow-moving
inventories and
others	$	78,472	$		35,691	$	114,163
Deferred income
tax liabilities:
-Temporary differences:
Unrealised exchange
gain	(	22,310)	(		29,413)	(	51,723)
	$	56,162	$		6,278	$	62,440

��

-169-

December 31, 2020 December 31, 2019 Deductible temporary differences $ 1,256,642 $ 1,108,747

��

(29) ��

��
Basic earnings per share Profit attributable to ordinary shareholders of the parent Diluted earnings per share Profit attributable to ordinary shareholders of the parent Assumed conversion of all dilutive potential ordinary shares Employees�compensation Profit attributable to ordinary shareholders of the parent plus assumed conversion of all dilutive potential ordinary shares Basic earnings per share Profit attributable to ordinary shareholders of the parent Diluted earnings per share Profit attributable to ordinary shareholders of the parent Assumed conversion of all dilutive potential ordinary shares Employees�compensation Profit attributable to ordinary shareholders of the parent plus assumed conversion of all dilutive potential ordinary shares	Year ended December 31,2020
	Amount after Weighted average number of ordinary shares outstanding (shares Earnings per share tax in thousands) (in dollars) 8,793,477 $ 510,126 17.24 $ 8,793,477 $ 510,126 - 9,418 8,793,477 $ 519,544 16.93 $ Year ended December 31,2019		Earnings per share (in dollars)
			17.24 $
			16.93 $
	Amount after tax 6,790,283 $ 6,790,283 $ - 6,790,283 $	Weighted average number of ordinary shares outstanding (shares in thousands) 508,095 508,095 8,926 517,021	Earnings per share (in dollars)
			13.36 $
			13.13 $

��

-170-

(30) ��cash��

��

						Year ended	Year ended	Year ended	Year	Year	Year	ended
				December 31,				2020 December 31,2019
Purchase of property, plant and equipment			$				1,728,078 $					749,975
Add: Opening balance of payable on equipment							113,350					110,401
Less: Ending balance of payable on equipment			(				58,959) (					113,350)
Cash paid during the period			$				1,782,469 $					747,026
						Year ended			Year			ended
				December 31,				2020 December 31,2019
Purchase of intangible assets			$				1,404,378 $					1,444,186
Add: Opening balance of payable on
software and intellectual property							725,345					684,438
Less: Ending balance of payable on
software and intellectual property			(				1,152,591) (					725,345)
Cash paid during the period			$				977,132 $					1,403,279
��
						Guarantee					Liabilities from
		Short-term				deposits			Lease			financing
		borrowings				received			liabilities		activities-total
At January 1, 2020	$	18,966,042			$		3,450	$	1,112,675	$		20,082,167
Changes in cash flow from financing
activities	(	7,490,176)			(		2,199)	(	88,691)	(		7,581,066)
Interest paid				-			-	(	28,913)	(		28,913)
Interest of lease liabilities				-			-		28,913			28,913
Impact of changes in foreign exchange	(		19,176)				-		3,340	(		15,836)
Changes in other non-cash items				-			-		349,933			349,933
At December 31, 2020	$	11,456,690			$		1,251	$	1,377,257	$		12,835,198
						Guarantee					Liabilities from
		Short-term				deposits			Lease			financing
		borrowings				received			liabilities		activities-total
At January 1, 2019	$	14,526,311			$		4,887	$	1,048,079	$		15,579,277
Changes in cash flow from financing		4,439,731			(		1,437)	(	76,732)			4,361,562
activities
Interest paid				-			-	(	23,915)	(		23,915)
Interest of lease liabilities				-			-		23,915			23,915
Impact of changes in foreign exchange				-			-		-			-
Changes in other non-cash items				-			-		141,328			141,328
At December 31, 2019	$	18,966,042			$		3,450	$	1,112,675	$		20,082,167

(31) ��

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-171-

7. ��

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(2) ��

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Names of relatedparties	Relationshipwith the Company
G.M.I Technology Inc. Actions Semiconductor Co., Ltd. C-Media Electronics Inc. Greatek Electronics Inc. EmBestor Technology Inc.	Other related party Other related party Other related party Other related party Other related party

(3) ��

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Sales of goods� G.M.I Technology Inc. Others	Year ended December 31,2020 12,212,600 $ 377,047 12,589,647 $	Year ended December 31,2019
		11,392,557 $ 280,803
		11,673,360 $

��

��
Greatek Electronics Inc. Others	Year ended December 31,2020 1,253,860 $ 45 1,253,905 $	Year ended December 31,2019
		1,322,403 $ -
		1,322,403 $

��

��
Accounts receivable� G.M.I Technology Inc. Other	December 31,2020 2,753,359 $ 59,040 2,812,399 $	December 31,2019
		2,142,256 $ 54,461
		2,196,717 $

��

-172-

��

��
Accounts payable� Greatek Electronics Inc. Others	December 31,2020 340,187 $ 45 340,232 $	December 31,2019
		329,514 $ -
		329,514 $

��

		Year ended	Year ended	Year ended		Year ended	Year ended	Year ended
		December 31,		2020		December 31,		2019
				Ending				Ending
		Amount		balance		Amount		balance
Other related parties-
Sales commissions	$	471,394	$	94,808	$	444,257	$	87,293
Cash dividends revenue	($	14,381)	$	-	($	16,698)	$	-
Technical royalty revenue	($	8,406)	$	-	($	4,430)	$	-

��

(4) ��

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Salaries and other short-term employee benefits Post-employment benefits Total	Year ended December 31,2020 137,298 $ 2,721 140,019 $	Year ended December 31,2019
		120,242 $ 2,697
		122,939 $

8. ��

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Book value

Pledged asset Time deposits (shown in financial assets at amortised cost non-current) "	December 31,2020 30,821 $ 48,836 79,657 $	December 31,2019 34,307 $ 35,170 69,477 $	Purposes
			Guarantee for the importation customs duties of materials Guarantee for leasing land and office in science park

��

-173-

9. ��

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10. ��

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11. ��

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12. ��

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-174-

December 31, 2020 December 31, 2019

(2) ��

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Financial assets

Financial assets
Financial assets at fair value through profit or loss Financial assets mandatorily measured at fair value through profit or loss Financial assets at fair value through other comprehensive income Designation of equity instrument Financial assets at amortised cost/ Receivables Cash and cash equivalents Financial assets at amortised cost Accounts receivable (including related parties) Other receivables Refundable deposits Financial liabilities Financial liabilities at amortised cost Short-term borrowings Notes payable Accounts payable (including related parties) Other payable (including related parties) Guarantee deposits received Other financial liabilities Lease liability	1,080,657 $ 2,619,331 $ 7,296,360 $ 35,410,003 13,653,068 301,431 50,127 56,710,989 $ 11,456,690 $ 28,653 10,960,286 14,760,261 1,251 7,386,910 44,594,051 $ 1,377,257 $	74,012 $
		1,859,478 $
		5,727,911 $ 39,627,531 10,450,728 768,699 32,384
		56,607,253 $
		18,966,042 $ 3,276 7,771,238 10,833,461 3,450 5,368,247
		42,945,714 $
		1,112,675 $

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-175-

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December 31,2020	December 31,2020	December 31,2020
Foreign currency amount Book value (In thousands) Exchange rate (NTD) 425,703 $ 28.508 12,135,941 $ 1,387,989 28.508 39,568,790 543,630 28.508 15,497,804 December 31,2019		Book value (NTD)
	Exchange rate 30.106 30.106 30.106	Book value (NTD)
		9,813,647 $ 38,701,252 12,017,352

-176-

�� years ended December 31��$206,408 and $125,351��

��

(Foreign currency: functional currency) Financial assets Monetary items USD:NTD Non-monetary items USD:NTD Financial liabilities Monetary items USD:NTD (Foreign currency: functional currency) Financial assets Monetary items USD:NTD Non-monetary items USD:NTD Financial liabilities Monetary items USD:NTD	Year ended December 31,	2020
	Sensitivityanalysis
	Effect on Degree of variation profit or loss 1% 121,359 $ 1% - 1% 154,978) ( Year ended December 31,	Effect on other comprehensive income
		- $ 395,688 - 2019
	Sensitivityanalysis
	Effect on Degree of variation profit or loss 1% 98,136 $ 1% - 1% 120,174) (	Effect on other comprehensive income
		- $ 387,103 -

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-177-

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-178-

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At December 31, 2020 Expected loss rate Total book value Loss allowance At December 31, 2019 Expected loss rate Total book value Loss allowance	Notpast due 0%~1% 13,471,549 $ 92,162 $ Notpast due 0%~1% 10,153,312 $ 75,187 $	1~90 days past due 0%~1% 276,445 $ 2,764 $ 1~90 days past due 0%~1% 376,367 $ 3,764 $	Over 90 days past due 100% 434 $ 434 $ Over 90 days past due 100% 656 $ 656 $	Total
				13,748,428 $
				95,360 $
				Total
				10,530,335 $
				79,607 $

��

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At January 1 Provision for impairment loss At December 31 At January 1 Provision for impairment loss Effect of exchange rate At December 31	2020
	Loss allowance for accounts receivable
	79,607 $ 15,753
	95,360 $
	2019
	Loss allowance for accounts receivable
	58,172 $ 21,332 103
	79,607 $

��

-179-

��

	December 31,2020
12 months 35,410,003 $	Significant increase in Impairment of credit risk credit - $ - $ Lifetime December31,2019	Total
	Significant increase in credit risk - $ December
		35,410,003 $

12 months 39,627,531 $	Significant increase in Impairment of credit risk credit - $ - $ Lifetime	Total
	Significant increase in credit risk - $
		39,627,531 $

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-180-

Non-derivative financial liabilities:

Non-derivative financial liabilities:
Short-term borrowings Notes payable Accounts payable (including related parties) Other payables (including related parties) Lease liability Guarantee deposits received Other financial liabilities December 31, 2020 Non-derivative financial liabilities: Short-term borrowings Notes payable Accounts payable (including related parties) Other payables (including related parties) Lease liability Guarantee deposits received Other financial liabilities December 31, 2019	Less than 1 year 11,465,691 $ 28,653 10,960,286 14,760,261 123,951 - 7,386,910 Less than 1 year 18,983,466 $ 3,276 7,771,238 10,833,461 107,586 - 5,368,247	Between 1 and 5years - $ - - - 338,279 - - Between 1 and 5years - $ - - - 354,895 - -	Over 5years
			- $ - - - 1,393,936 1,251 - Over 5years
			- $ - - - 982,688 3,450 -

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-181-

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December 31, 2020		Level 1		Level 2		Level 3		Total
Assets
Recurring fair value measurement
Financial assets at fair value
through profit or loss
Equity securities	$	1,080,657	$	-	$	-	$	1,080,657
Financial assets at fair value
through other comprehensive
income
Equity securities		587,851		-		2,031,480		2,619,331
Total	$	1,668,508	$	-	$	2,031,480	$	3,699,988
December 31, 2019		Level 1		Level 2		Level 3		Total
Assets
Recurring fair value measurement
Financial assets at fair value
through profit or loss
Equity securities	$	74,012	$	-	$	-	$	74,012
Financial assets at fair value
through other comprehensive
income
Equity securities		505,615		-		1,353,863		1,859,478
Total	$	579,627	$	-	$	1,353,863	$	1,933,490

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Market quoted price	Listed shares	Closed- end fund	Open- end fund Net asset value	Government bond	Corporate bond	Convertible (exchangeable) bond
	Closing price	Closing price		Translation price	Weighted average quoted price	Closing price

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-182-

     - ������������������������������������������������������������������������������������ �������������������

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At January 1 Gains recognized in other comprehensive income Effect of exchange rate At Decembe 31		2020	2019
	Non-derivative equityinstrument 1,353,863 $ 747,687 70,070) ( 2,031,480 $		Non-derivative equity instrument 1,058,137 $ 314,672 18,946) ( 1,353,863 $

��the years ended December 31��
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-183-

Non- derivative equity Unlisted shares � Private equity fund investment Non- derivative equity Unlisted shares � Private equity fund investment	Fair value at December 31, 2020	Valuation technique	Significant unobservable input	Range (weighted average)	Relationship of inputs to fair value
	109,445 $ 22,737 1,899,298 Fair value at December 31, 2019	Market comparable companies Net asset value Net asset value Valuation technique	Price to book ratio multiple Not applicable Not applicable Significant unobservable input	4.04 - - Range (weighted average)	The higher the multiple, the higher the fair value Not applicable Not applicable Relationship of inputs to fair value
	115,580 $ 19,791 1,218,492	Market comparable companies Net asset value Net asset value	Price to book ratio multiple Not applicable Not applicable	3.58 - -	The higher the multiple, the higher the fair value Not applicable Not applicable

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December 31, 2020

Financial assets Equity instrument	Input	Change ± 1%	Favourable Unfavourable Change change - $ - $ Recognized inprofit or loss	Favourable Unfavourable Change change 1,760 $ 1,760) ($ comprehensive income Recognized in other
	Price to book ratio multiple

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-184-

December 31, 2019

Recognized in other Recognized in profit or loss comprehensive income Favourable Unfavourable Favourable Unfavourable Input Change Change change Change change Financial assets Price to Equity instrument book ratio ± 1% $ - $ - $ 1,581 ($ 1,581) multiple

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-185-

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(4) ��

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14. ��

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(2) ��

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(3) ��

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(5) ��

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Revenue from ICs Others Total	Year ended December 31,2020 77,588,285 $ 171,185 77,759,470 $	Year ended December 31,2019
		60,623,210 $ 120,796
		60,744,006 $

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-186-

(6) ��

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Revenue Non-current assets 56,425,368 $ 7,231,964 $ 21,334,102 847,660 - 128,535 77,759,470 $ 8,208,159 $ Year ended December 31,2020	Year ended December 31,2019	Year ended December 31,2019
Revenue 56,425,368 $ 21,334,102 - 77,759,470 $	Revenue 40,845,708 $ 19,898,298 - 60,744,006 $	Non-current assets
		5,804,262 $ 921,103 155,400
		6,880,765 $

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(7) ��

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Customer B Customer D Customer A	Revenue Segment 16,074,247 $ The whole group 14,175,131 " 12,212,600 " Year ended December 31,2020	Year ended December 31,2019
	Revenue 16,074,247 $ 14,175,131 12,212,600	Revenue 13,368,262 $ 10,014,670 11,392,557	Segment
			The whole group " "

��

-187-

None	None	None	None	None	None	None	None	None	None
11,783,632 $	11,783,632	11,783,632	11,783,632	11,783,632	11,783,632	11,783,632	11,783,632	11,783,632	11,783,632
2,945,908 $	2,945,908	2,945,908	2,945,908	2,945,908	2,945,908	11,783,632	11,783,632	11,783,632	11,783,632
-	-	-	-	-	-	-	-	-	-
None	None	None	None	None	None	None	None	None	None
-	-	-	-	-	-	-	-	-	-
Operations	Operations	Operations	Operations	Operations	Operations	Operations	Operations	Operations	Operations
- $	-	-	-	-	-	-	-	-	-
Short-term financing	Short-term financing	Short-term financing	Short-term financing	Short-term financing	Short-term financing	Short-term financing	Short-term financing	Short-term financing	Short-term financing
-	-	-	-	0.20	0.20	0.20	0.20	0.20	-
- $	570,160	-	-	11,403	57,016	1,045,959	5,696,286	552,770	-
57,016 $	855,240	1,710,480	1,710,480	833,748	1,710,480	1,710,480	5,701,600	1,425,400	855,240
57,016 $	855,240	1,710,480	1,710,480	833,748	1,710,480	1,710,480	5,701,600	1,425,400	855,240
Y	Y	Y	Y	Y	Y	Y	Y	Y	Y
Other receivables- related parties	Other receivables- related parties	Other receivables- related parties	Other receivables- related parties	Other receivables- related parties	Other receivables- related parties	Other receivables- related parties	Other receivables- related parties	Other receivables- related parties	Other receivables- related parties
RayMX Microelectronics Corp.	Realtek Singapore Private Limited	Bluocean Inc.	Leading Enterprises Limited	Amber Universal Inc.	Talent Eagle Enterprise Inc.	Bluocean Inc.	Talent Eagle Enterprise Inc.	Bluocean Inc.	Leading Enterprises Limited
Realtek Semiconductor Corporation	Realtek Semiconductor Corporation	Realtek Semiconductor Corporation	Realtek Semiconductor Corporation	Realtek Semiconductor Corporation	Realtek Semiconductor Corporation	Leading Enterprises Limited	Leading Enterprises Limited	Amber Universal Inc.	Cortina Access, Inc.
�	�	�	�	�	�	�	�	�	�

-188-

None	None	None	None	None	None
11,783,632 $	11,783,632	11,783,632	11,783,632	11,783,632	11,783,632
11,783,632 $	11,783,632	11,783,632	11,783,632	11,783,632	11,783,632
- $	-	-	-	-	-
None	None	None	None	None	None
- $	-	-	-	-	-
Operations	Operations	Operations	Operations	Operations	Operations
- $	-	-	-	-	-
Short-term financing	Short-term financing	Short-term financing	Short-term financing	Short-term financing	Short-term financing
0.20	-	-	-	4.35	-
1,148,872 $	-	-	-	56,670	-
2,850,800 $	57,016	855,240	348,736	348,736	130,776
2,850,800 $	57,016	855,240	348,736	348,736	130,776
Y	Y	Y	Y	Y	Y
Other receivables- related parties	Other receivables- related parties	Other receivables- related parties	Other receivables- related parties	Other receivables- related parties	Other receivables- related parties
Realtek Singapore Private Limited	RayMX Microelectronics Corp.	Realsil Microelectronics Corp.	Suzhou PanKore Integrated Circuit Technology Co. Ltd.	RayMX Microelectronics Corp.	Suzhou PanKore Integrated Circuit Technology Co. Ltd.
Realtek Investment Singapore Private Limited	Realtek Singapore Private Limited	Realtek Singapore Private Limited	Realsil Microelectronics Corp.	Realsil Microelectronics Corp.	Cortina Network systems Shanghai Co., Ltd.
�	�	�	�	�	�

-189-


N	N	Y	Y	Y	Y
N	N	N	N	N	N
Y	Y	Y	Y	N	N
14,729,541 $	14,729,541	14,729,541	14,729,541	14,729,541	14,729,541
10%	20%	3%	3%	2%	2%
- $	-	-	-	-	-
- $	-	-	14,173	-	-
2,945,908 $	5,891,816	883,772	883,772	570,160	570,160
2,945,908 $	5,891,816	883,772	883,772	570,160	570,160
14,729,541 $	14,729,541	14,729,541	14,729,541	14,729,541	14,729,541
2	2	2	2	2	2
Realtek Singapore Private Limited	Leading Enterprises Limited	Realsil Microelectronics Corp.	RayMX Microelectronics Corp.	Realsil Microelectronics Corp.	RayMX Microelectronics Corp.
Realtek Semiconductor Corporation	Realtek Semiconductor Corporation	Realtek Semiconductor Corporation	Realtek Semiconductor Corporation	Leading Enterprises Limited	Realsil Microelectronics Corp.
0	0	0	0	1	2

-190-


$ 124,360	114,758	471,828	114,758	92,340	17,105	935,921	491,549	15,859	174,255	326,121	16,355	22,737	174,660	191,895
2.04%	5.34%	3.03%	5.34%	6.89%	-	12.49%	6.56%	-	2.88%	1.05%	0.33%	12.17%	-	-
$ 124,360	114,758	471,828	114,758	92,340	17,105	935,921	491,549	15,859	174,255	326,121	16,355	22,737	174,660	191,895
1,623,501	3,575,000	23,124,000	3,575,000	8,623,301	5,000,000	9,000,000	4,726,836	336,346	2,274,875	5,823,602	1,093,968	2,800,000	40,067,489	44,021,178
Financial assets at fair value through profit or loss	Financial assets at fair value through other comprehensive income	Financial assets at fair value through other comprehensive income	Financial assets at fair value through other comprehensive income	Financial assets at fair value through other comprehensive income	Financial assets at fair value through other comprehensive income	Financial assets at fair value through other comprehensive income	Financial assets at fair value through other comprehensive income	Financial assets at fair value through other comprehensive income	Financial assets at fair value through profit or loss	Financial assets at fair value through other comprehensive income	Financial assets at fair value through other comprehensive income	Financial assets at fair value through other comprehensive income	Financial assets at fair value through profit or loss	Financial assets at fair value through profit or loss
Other related parties	None	None	None	None	None	None	None	None	Other related parties	Other related parties	None	Other related parties	None	None
C-media Electronics Inc. - Common stock	Compal broadband networks Inc. - Common stock	Shieh-Yong Investment Co., Ltd. - Common stock	Compal broadband networks Inc. - Common stock	Fortemedia Inc. - Common stock	Starix Technology, Inc.- Preferred stock	Octtasia Investment Holding Inc. - Common stock	Octtasia Investment Holding Inc. - Common stock	United Microelectronics Corporation - Common stock	C-media Electronics Inc.- Common stock	Greatek Electroninc Inc. - Common stock	Subtron technology Co., Ltd - Common stock	Embestor Technology Inc. - Common stock	Cuam Money Fund	Harvest Money Fund
Realtek Semiconductor Corporation	Realking Investment Co., Ltd.	Realsun Investment Co., Ltd.	Realsun Investment Co., Ltd.	Leading Enterprises Limited	Leading Enterprises Limited	Leading Enterprises Limited	Amber Universal Inc.	Hung-wei Venture Capital Co., Ltd.	Hung-wei Venture Capital Co., Ltd.	Hung-wei Venture Capital Co., Ltd.	Hung-wei Venture Capital Co., Ltd.	Hung-wei Venture Capital Co., Ltd.	Realsil Microelectronics Corp.	Realsil Microelectronics Corp.

-191-


$ 21,931	43,598	43,599	130,775	43,600	34,972	27,187	54,132	15,693	-
0.00%	-	-	-	-	-	-	-	-	6.59%
$ 21,931	43,598	43,599	130,775	43,600	34,972	27,187	54,132	15,693	-
5,030,836	10,001,547	10,001,624	30,000,000	10,001,829	8,022,717	6,236,826	12,400,000	3,600,000	4,800,000
Financial assets at fair value through profit or loss	Financial assets at fair value through profit or loss	Financial assets at fair value through profit or loss	Financial assets at fair value through profit or loss	Financial assets at fair value through profit or loss	Financial assets at fair value through profit or loss	Financial assets at fair value through profit or loss	Financial assets at fair value through profit or loss	Financial assets at fair value through profit or loss	Financial assets at fair value through other comprehensive income
None	None	None	None	None	None	None	None	None	None
Xin Chen Money Fund	Guang-Fa Demand Policy Loan Fund	Guang-Da Monetary Fund	Southern Cash Fund	Guang-Fa Monetary Fund	Ri-Ri-Xin Fund	Cash Appreciation Currency Fund	Step by step Gold Fund	Ri-Ri-Xin Fund	CyWeeMotion Group Limited
Realsil Microelectronics Corp.	Realsil Microelectronics Corp.	Realsil Microelectronics Corp.	Realsil Microelectronics Corp.	Realsil Microelectronics Corp.	Realtek Semiconductor (Shen Zhen) Corp.	Realtek Semiconductor (Shen Zhen) Corp.	Cortina Network Systems Shanghai Co., Ltd.	Cortina Network Systems Shanghai Co., Ltd.	Bluocean Inc.

-192-

Table 4 Reason for Relationship Basis or acquisition of Relationship Original owner who between the original Date of the reference used real estate and Real estate Real estate Date of the Transaction Status of with the sold the real estate owner and the original in setting the status of the Other acquired by acquired event amount payment Counterparty counterparty to the counterparty acquirer transaction Amount price real estate commitments the real estate is disclosed below: Expressed in thousands of NTD (Except as otherwise indicated) REALTEK SEMICONDUCTOR CORPORATION AND SUBSIDIARIES Acquisition of real estate reaching NT$300 million or 20% of paid-in capital or more For the year ended December 31, 2020 If the counterparty is a related party, information as to the last transaction of	None
	Owner-occupied office
	Negotiated with the counterparty based on the appraisal report issued by CCIS Real Estate Joint Appraisers Firm and resolved by the Board of Directors
	$ -
	-
	-
	-
	None
	Huaku Development Co., Ltd.
	Paid $699,100 based on the contract
	$699,100
	April 1, 2020 (entered into the contract and paid the first payment)
	Property in Zhongshan District, Taipei City
	Realtek Semiconductor Corporation

-193-


13%	0%	0%	7%	1%	3%	1%
1,751,860 $	15,289	43,751	890,128	111,371	253,691) (	86,496) (
Approximately the same with third party transactions	Approximately the same with third party transactions	Approximately the same with third party transactions	Approximately the same with third party transactions	Approximately the same with third party transactions	Approximately the same with third party transactions	Approximately the same with third party transactions
Approximately the same with third party transactions	Approximately the same with third party transactions	Approximately the same with third party transactions	Approximately the same with third party transactions	Approximately the same with third party transactions	Approximately the same with third party transactions	Approximately the same with third party transactions
Approximately the same with third party transactions	Approximately the same with third party transactions	Approximately the same with third party transactions	Approximately the same with third party transactions	Approximately the same with third party transactions	Approximately the same with third party transactions	Approximately the same with third party transactions
(9%)	0%	0%	(6%)	0%	3%	1%
7,375,829) ($	164,556) (	200,693) (	4,537,246) (	261,579) (	1,033,517	202,096
(Sales)	(Sales)	(Sales)	(Sales)	(Sales)	Purchase	Purchase
Other related parties	Other related parties	Other related parties	Other related parties	Other related parties	Other related parties	Other related parties
G.M.I Technology Inc.	Actions Semiconductor Co., Ltd.	C-Media Electronics Inc.	G.M.I Technology Inc.	G.M.I Technology Inc.	Greatek Electronics Inc.	Greatek Electronics Inc.
Realtek Semiconductor Corporation	Realtek Semiconductor Corporation	Realtek Semiconductor Corporation	Realtek Singapore Private Limited	RayMX Microelectronics Corp.	Realtek Semiconductor Corporation	Realtek Singapore Private Limited

-194-

17,695 $	-	-
800,691 $	430,759	111,371
-	-	-
$ -	-	-
5.04	4.99	2.81
1,751,860 $	890,128	111,371
Other related parties	Other related parties	Other related parties
G.M.I Technology Inc.	G.M.I Technology Inc.	G.M.I Technology Inc.
Realtek Semiconductor Corporation	Realtek Singapore Private Limited	RayMX Microelectronics Corp.

-195-

0.06%	2.61%	0.82%	0.52%	0.19%	0.26%	0.02%	0.13%	0.04%
No similar transaction can be compared with. Transaction prices and terms are determined in accordance with mutual agreement.	No similar transaction can be compared with. Transaction prices and terms are determined in accordance with mutual agreement.	No similar transaction can be compared with. Transaction prices and terms are determined in accordance with mutual agreement.	No similar transaction can be compared with. Transaction prices and terms are determined in accordance with mutual agreement.	No similar transaction can be compared with. Transaction prices and terms are determined in accordance with mutual agreement.	No similar transaction can be compared with. Transaction prices and terms are determined in accordance with mutual agreement.	No similar transaction can be compared with. Transaction prices and terms are determined in accordance with mutual agreement.	No similar transaction can be compared with. Transaction prices and terms are determined in accordance with mutual agreement.	No similar transaction can be compared with. Transaction prices and terms are determined in accordance with mutual agreement.
$ 46,380	2,026,553	638,579	400,935	147,101	204,759	12,976	104,761	30,381
Other receivables	Technical service fees	Other payables	Technical service fees	Other payables	Technical service fees	Other payables	Technical service fees	Other payables
�	�	�	�	�	�	�	�	�
RayMX Microelectronics Corp.	Realsil Microelectronics Corp.	Realsil Microelectronics Corp.	Realtek Semiconductor (Shen Zhen) Corp.	Realtek Semiconductor (Shen Zhen) Corp.	Cortina Access, Inc.	Cortina Access, Inc.	Cortina Network Systems Shanghai Co., Ltd.	Cortina Network Systems Shanghai Co., Ltd.
Realtek Semiconductor Corporation	Realtek Singapore Private Limited	Realtek Singapore Private Limited	Realtek Singapore Private Limited	Realtek Singapore Private Limited	Realtek Singapore Private Limited	Realtek Singapore Private Limited	Realtek Singapore Private Limited	Realtek Singapore Private Limited
�	�	�	�	�	�	�	�	�

-196-

0.15%	0.08%	0.06%
No similar transaction can be compared with. Transaction prices and terms are determined in accordance with mutual agreement.	No similar transaction can be compared with. Transaction prices and terms are determined in accordance with mutual agreement.	No similar transaction can be compared with. Transaction prices and terms are determined in accordance with mutual agreement.
$ 112,793	62,503	46,380
Technical service fees	Technical service fees	Other receivables
�	�	�
Cortina Systems Taiwan Limited	Realtek Semiconductor (Japan) Corp.	RayMX Microelectronics Corp.
Realtek Singapore Private Limited	Realtek Singapore Private Limited	Realtek Singapore Private Limited
�	�	�

-197-

Subsidiary	Subsidiary	Subsidiary	Subsidiary	Subsidiary	Subsidiary	Subsidiary	Subsidiary	Subsidiary	Subsidiary	Subsidiary	Investments accounted for under equity mothod	Investments accounted for under equity mothod
671,282 $	51,962	5,334,833	76,184	295,459) (	130,511	5,145	150,791	7,428) (	57	97	11,188) (	7,209) (
671,282 $	51,962	5,879,387	76,184	295,459) (	130,511	5,145	150,791	7,428) (	57	146	746) (	60,277) (
$ 13,239,425	3,367,376	11,149,584	3,369,936	2,162,386	6,275,015	619,510	632,946	290,236	5,118	19,330	255	9,158
100%	100%	100%	100%	100%	100%	100%	100%	100%	100%	66.67%	-	6.68%
34,630	41,432	89,856,425	110,050,000	114,100,000	200,000,000	28,000,000	25,000,000	29,392,985	500,000	1,918,910	-	2,000,000
$ 15,005,734	4,739,146	2,408,480	3,313,165	3,435,095	6,021,200	280,000	250,000	293,930	5,000	19,189	66,657	110,000
$ 14,080,956	4,487,621	4,076,101	3,137,305	3,252,763	5,701,600	280,000	250,000	293,930	5,000	19,189	66,657	110,000
Investment holdings	Investment holdings	ICs manufacturing, design, research, development, sales, and marketing	Investment holdings	Investment holdings	Investment holdings	Investment holdings	Investment holdings	Investment holdings	ICs manufacturing, design, research, development, sales, and marketing	Manufacturing and installation of computer equipment and wholesasle, retail and related services of electronic materials and information/software	Investment holdings	Research and development, design, manufacturing, sales and other services of electronic components,information/Software and integrated circuits
British Virgin Islands	British Virgin Islands	Singapore	Cayman Islands	Cayman Islands	Singapore	Taiwan	Taiwan	Taiwan	Taiwan	Taiwan	Taiwan	Taiwan
Leading Enterprises Limited	Amber Universal Inc.	Realtek Singapore Private Limited	Bluocean Inc.	Talent Eagle Enterprise Inc.	Realtek Investment Singapore Private Limited	Realsun Investments Co., Ltd.	Hung-wei Venture Capital Co., Ltd.	Realking Investments Co., Ltd.	Realsun Technology Corporatioin	Bobitag Inc.	Technology Partner V Venture Capital Corporation	Estinet Technologies Incorporation
Realtek Semiconductor Corporation	Realtek Semiconductor Corporation	Realtek Semiconductor Corporation	Realtek Semiconductor Corporation	Realtek Semiconductor Corporation	Realtek Semiconductor Corporation	Realtek Semiconductor Corporation	Realtek Semiconductor Corporation	Realtek Semiconductor Corporation	Realtek Semiconductor Corporation	Realtek Semiconductor Corporation	Realtek Semiconductor Corporation	Realtek Semiconductor Corporation

-198-

Investments accounted for under equity mothod	Sub-Subsidiary	Sub-Subsidiary	Sub-Subsidiary	Sub-Subsidiary	Sub-Subsidiary	Sub-Subsidiary	Sub-Subsidiary	Sub-Subsidiary	Sub-Subsidiary	Sub-Subsidiary
12,583) ($	104) (	58) (	561,423	21) (	121,713) (	21,968	791	17,359) (	418,782) (	9,150) (
32,943) ($	104) (	58) (	5,879,387	21) (	121,713) (	21,968	791	17,359) (	418,782) (	9,150) (
$ 14,741	4,037	7,663	-	1,082	1,570,047	858,662	48,580	86,270	22,012) (	64,914
37.38%	100%	100%	-	100%	100%	100%	100%	100%	100%	100%
20,000,000	400	300,000	-	-	2,825,000	16,892	21,130,000	4,000,000	52,000,000	10,450,000
$ 200,000	5,542	1,950,869	1,257,578	5,799	850,495	1,229,710	60,212	30,106	1,204,240	-
$ 200,000	5,530	1,847,318	-	5,516	805,351	1,164,438	57,016	114,032	1,482,416	74,144
Venture capital activities	ICs deign,sales, and consultancy	Investment holdings	ICs manufacturing, design, research, development, sales, and marketing	Information services and technical support	Investment holdings	R&D and information services	R&D and technical support	R&D and technical support	R&D and information services	R&D and information services
Taiwan	Japan	Mauritius	Singapore	Hong Kong	Mauritius	U.S.A	Taiwan	Vietnam	U.S.A	Malaysia
Innorich Venture Capital Corp.	Realtek Semiconductor (Japan) Corp.	Circon Universal Inc.	Realtek Singapore Private Limited	Realtek Semiconductor (Hong Kong) Limited	Empsonic Enterprises Inc.	Cortina Access Inc.	Cortina Systems Taiwan Limited	Realtek Viet Nam Co., Ltd.	Ubilinx Technology Inc.	Realtek Semiconductor (Malaysia) Sdn. Bhd.
Realking Investments Co., Ltd.	Leading Enterprises Limited	Leading Enterprises Limited	Leading Enterprises Limited	Amber Universal Inc.	Realtek Singapore Private Limited	Realtek Singapore Private Limited	Realtek Singapore Private Limited	Realtek Singapore Private Limited	Talent Eagle Enterprise Inc.	Bluocean Inc.

-199-

Remitted to
Mainland
China
Remitted
back to
Taiwan
Footnote
Accumulated
amount of
remittance from
Taiwan to
Mainland China
as of December
31, 2020
Net income of
investee for the
year ended
December 31,
2020
Investee in Mainland
China
Main business activities
Paid-in Capital
Investment
method
(Note1)
Accumulated amount of
remittance from Taiwan to
Mainland China as of
January 1, 2020
Ownership held
by the Company
(direct or
indirect)
Investment income (loss)
recognised by the
Company for the year
ended
December 31, 2020
(Note2)
Book value of
investment in
Mainland China
as of December
31, 2020
Accumulated
amount of investment
income remitted back to
Taiwan as of December 31,
2020
Amount remitted from
Taiwan to Mainland
China/Amount remitted
back to Taiwan for the year
ended December 31, 2020

Cortina Network
Systems Shanghai Co.,
Ltd.
R&D and technical support
102,629
$ (2)
102,629
$ $ -
$ -
102,629
$ 2,338)
($ 100%
2,338)
($ 98,002
$ $ -
Realsil Microelectronics
Corp.
R&D and technical support
798,224
(2)
798,224
-
-
798,224
111,152
100%
111,152
1,566,220
-
Realtek Semiconductor
(Shen Zhen) Corp.
R&D and technical support
142,540
(2)
142,540
-
-
142,540
13,415
100%
13,415
270,612
-
RayMX Microelectronics
Corp.
ICs manufacturing, design,
research, development,
sales, and marketing
114,428
(2)
114,428
-
-
114,428
137
100%
137
86,108
-
Suzhou PanKore
Integrated Circuit
Technology Co. Ltd.
ICs manufacturing, design,
research, development,
sales, and marketing
43,592
(2)
-
43,592
-
43,592
17,915)
(
100%
17,915)
(
25,370
-
Company name
Accumulated amount
of remittance from Taiwan
to Mainland
China as of
December 31, 2020
Investment amount
approved by the
Investment
Commission of the
Ministry of
Economic Affairs
(MOEA)
Ceiling on
investments in
Mainland China
imposed by the
Investment
Commission of
MOEA
Cortina Network
Systems Shanghai Co.,
Ltd.
102,629
$ 102,629
$ $ 17,675,449
Realsil Microlectronics
Corp.
798,224
798,224
Realtek Semiconductor
(Shan Zhen) Corp.
142,540
142,540
RayMX Microelectronics
Corp.
114,428
114,428
Suzhou PanKore
Integrated Circuit
Technology Co. Ltd.
43,592
43,592
Note 1: Investment methods are classified into the following three categories; fill in the number of category each case belongs to:
(1) Directly invest in a company in Mainland China.
(2) Through investing in an existing company in the third area, which then invested in the investee in Mainland China.
(3) Others.
Note 2: In the 'Investment income (loss) recognised by the Company for the year ended December 31, 2020' column was recorded based on the financial statements prepared by the company.
Note 3: The amount of foreign currencies denominated in New Taiwan dollars in this table, which related to income and expenses were re-translated at the average exchange rate from January 1, 2020 to December 31, 2020, others were
re-translated at the exchange rate prevailing at the end of the financial reporting period.
��

-200-

VI. Parent Company Only Financial Statements

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From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the parent company only financial statements of the current peri�� law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication�

Lin, Yu-Kuan

[Cheng, Ya-Huei ]

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-205-

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-206-

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-212-

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Amendments to IFRS 10 and IAS 28,�Sale or contribution of assets
between an investor and its associate or joint venture�
IFRS 17,�Insurance contracts�
Amendments to IFRS 17, 'Insurance contracts'
Amendments to IAS 1,�Classification of liabilities as current or
non-current�
Amendments to IAS 1,�Disclosure of accounting policies�
Amendments to IAS 8,�Definition of accounting estimates�
Amendments to IAS 16,�Property, plant and equipment:proceeds before
intended use�
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cost of fulfilling a contract�
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-223-

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(1) ��

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Cash on hand and revolving funds Checking accounts and demand deposits Time deposits	December 31,2020 806 $ 4,629,642 - 4,630,448 $	December 31,2019
		654 $ 1,827,874 1,505,300
		3,333,828 $

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(2) ��

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	December	31,2020		December	31,2019
Accounts receivable	$	7,664,148	$		6,655,435
Accounts receivable�related parties		1,829,192			1,239,652
Less: Allowance for bad debts	(	95,360)	(		79,607)
	$	9,397,980	$		7,815,480
��	��
	December	31,2020		December	31,2019
Not past due	$	9,274,060	$		7,518,066
Up to 30 days		212,397			376,364
31 to 90 days		6,449			1
Over 90 days		434			656
	$	9,493,340	$		7,895,087

��

��As of December 31, 2020 and 2019, accounts receivable arose from��As
of January 1, 2019, the balance of receivables from contracts with customers amounted to $5,341,329.

��he Company has no��

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-224-

(3) ��

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Raw materials Work in process Finished goods Total Raw materials Work in process Finished goods Total		December 31,2020
	Cost 843,416 $ 4,542,905 1,659,044 7,045,365 $	Allowance for obsolescence and market value decline 20,128) ($ 598,262) ( 397,418) ( 1,015,808) ($ December 31,2019	Book value
			823,288 $ 3,944,643 1,261,626
			6,029,557 $

	Cost 825,412 $ 3,731,699 1,986,572 6,543,683 $		Book value
			798,964 $ 3,419,426 1,601,936
			5,820,326 $

��

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Cost of inventories sold and others Loss on market value decline and obsolete and slow-moving inventory Loss on scrap inventory	Years ended December 31,
	2020 33,389,503 $ 292,451 207,547 33,889,501 $	2019
		24,356,841 $ 140,378 145,834
		24,643,053 $

��

-225-

(4) ��

��
Subsidiaries: Leading Enterprises Limited Amber Universal Inc. Realtek Singapore Private Limited Realtek Investment Singapore Private Limited Talent Eagle Enterprise Inc. Bluocean Inc. Realsun Investments Co., Ltd. Hung-wei Venture Capital Co., Ltd. Realking Investments Co., Ltd. Realsun Technology Corporatioin Bobitag Inc. Associates: Technology Partner V Venture Capital Corporation 5V Technologies, Taiwan Ltd. Estinet Technologies Incorporation	December 31,2020 13,239,425 $ 3,367,376 11,149,584 6,275,015 2,162,386 3,369,936 619,510 632,946 290,236 5,118 19,330 255 - 9,158 41,140,275 $	December 31,2019
		11,151,040 $ 3,312,175 10,370,572 6,494,453 2,585,499 3,479,391 354,481 418,438 286,939 5,107 19,398 22,247 - 3,701
		38,503,441 $

��
��
��
�� The Company received the proceeds of $20,684 from the capital reduction carried out by Technology Partner V Venture Capital Corporation in July 2020. The investee was dissolved on September 21, 2020 and was still in the process of liquidation as of December 31, 2020.
��

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-226-

(5) ��

��	��
At January 1, 2020 Cost Accumulated depreciation and impairment 2020 Opening net book amount Additions Reclassifications Depreciation Closing net book amount At December 31, 2020 Cost Accumulated depreciation and impairment At January 1, 2019 Cost Accumulated depreciation and impairment 2019 Opening net book amount Additions Reclassifications Depreciation Closing net book amount At December 31, 2019 Cost Accumulated depreciation and impairment	Land Buildings Machinery Test equipment Office equipment Others Total - $ 2,574,744 $ 3,863,302 $ 2,281,360 $ 233,933 $ 772,540 $ 9,725,879 $ - 971,140) ( 3,505,163) ( 1,527,274) ( 140,063) ( 562,981) ( 6,706,621) ( - $ 1,603,604 $ 358,139 $ 754,086 $ 93,870 $ 209,559 $ 3,019,258 $ - $ 1,603,604 $ 358,139 $ 754,086 $ 93,870 $ 209,559 $ 3,019,258 $ 387,280 160,674 131,306 637,467 44,636 291,664 1,653,027 - 23,383 5) ( - - 23,378) ( - - 79,184) ( 90,185) ( 377,102) ( 27,536) ( 71,274) ( 645,281) ( 387,280 $ 1,708,477 $ 399,255 $ 1,014,451 $ 110,970 $ 406,571 $ 4,027,004 $ 387,280 $ 2,758,801 $ 3,800,466 $ 2,904,416 $ 278,569 $ 1,034,223 $ 11,163,755 $ - 1,050,324) ( 3,401,211) ( 1,889,965) ( 167,599) ( 627,652) ( 7,136,751) ( 387,280 $ 1,708,477 $ 399,255 $ 1,014,451 $ 110,970 $ 406,571 $ 4,027,004 $ Land Buildings Machinery Test equipment Office equipment Others Total - $ 2,574,744 $ 3,694,106 $ 1,899,377 $ 188,464 $ 696,142 $ 9,052,833 $ - 878,259) ( 3,435,978) ( 1,250,013) ( 116,837) ( 507,990) ( 6,189,077) ( - $ 1,696,485 $ 258,128 $ 649,364 $ 71,627 $ 188,152 $ 2,863,756 $ - $ 1,696,485 $ 258,128 $ 649,364 $ 71,627 $ 188,152 $ 2,863,756 $ - - 145,879 391,153 45,469 102,773 685,274 - - 27,167 - - 27,167) ( - - 92,881) ( 73,035) ( 286,431) ( 23,226) ( 54,199) ( 529,772) ( - $ 1,603,604 $ 358,139 $ 754,086 $ 93,870 $ 209,559 $ 3,019,258 $ - $ 2,574,744 $ 3,863,302 $ 2,281,360 $ 233,933 $ 772,540 $ 9,725,879 $ - 971,140) ( 3,505,163) ( 1,527,274) ( 140,063) ( 562,981) ( 6,706,621) ( - $ 1,603,604 $ 358,139 $ 754,086 $ 93,870 $ 209,559 $ 3,019,258 $	Total
		3,019,258 $

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-227-

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Land Buildings Land Buildings		Carrying	Carrying	Carrying
		Year ended December 31,2020
		26,367 $ 23,276 49,643 $		20,502 $ 12,531 33,033 $

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Items affecting profit or loss Interest expense on lease liabilities	Years ended December 31,	Years ended December 31,
	2020 18,916 $	2019
		12,651 $

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-228-

(7) ��

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	Computer software		Intellectualproperty			Others			Total
At January 1, 2020
Cost	$	4,067,350	$	4,309,997	$		1,222	$	8,378,569
Accumulated amortisation
and impairment	(	3,293,971)	(	3,431,876)			-	(	6,725,847)
	$	773,379	$	878,121	$		1,222	$	1,652,722
2020
Opening net book amount	$	773,379	$	878,121	$		1,222	$	1,652,722
Additions		1,004,055		397,771			-		1,401,826
Amortisation	(	681,932)	(	416,987)			-	(	1,098,919)
Closing net book amount	$	1,095,502	$	858,905	$		1,222	$	1,955,629
At December 31, 2020
Cost	$	5,071,405	$	4,707,768	$		1,222	$	9,780,395
Accumulated amortisation
and impairment	(	3,975,903)	(	3,848,863)			-	(	7,824,766)
	$	1,095,502	$	858,905	$		1,222	$	1,955,629
	Computer software		Intellectualproperty			Others			Total
At January 1, 2019
Cost	$	3,220,861	$	3,713,979	$		3,548	$	6,938,388
Accumulated amortisation
and impairment	(	2,725,336)	(	3,052,503)			-	(	5,777,839)
	$	495,525	$	661,476	$		3,548	$	1,160,549
2019
Opening net book amount	$	495,525	$	661,476	$		3,548	$	1,160,549
Additions		844,689		596,018			-		1,440,707
Reclassifications		1,800		-	(		2,326)	(	526)
Amortisation	(	568,635)	(	379,373)			-	(	948,008)
Closing net book amount	$	773,379	$	878,121	$		1,222	$	1,652,722
At December 31, 2019
Cost	$	4,067,350	$	4,309,997	$		1,222	$	8,378,569
Accumulated amortisation
and impairment	(	3,293,971)	(	3,431,876)			-	(	6,725,847)
	$	773,379	$	878,121	$		1,222	$	1,652,722

��

-229-

��

�� Operating costs Operating expenses Type of borrowings Bank borrowings Unsecured borrowings Type of borrowings Bank borrowings Unsecured borrowings	December 31,2020 11,456,690 $ December 31,2019 18,604,770 $	Years ended December 31,	Years ended December 31,
		2020 3,968 $ 1,094,951 1,098,919 $ Interest rate range 057%~0.60% Interest rate range 0.71%~1.91%	2019
			4,107 $ 943,901
			948,008 $
			Collateral
			None Collateral
			None

(8) ��

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(9) ��

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Accrued salaries Payable for employees�compensation Other accrued expenses Payables on equipment Payables on software and intellectual property Others	December 31,2020 4,675,282 $ 6,145,446 1,236,747 58,959 1,152,591 134,645 13,403,670 $	December 31,2019
		3,574,723 $ 3,978,614 1,374,970 113,350 725,345 162,667
		9,929,669 $

(10) ��

��

-230-

��

	December 31,2020	December 31,2020	December	31,2019
Present value of defined benefit obligations	($	600,923)	($	595,932)
Fair value of plan assets		501,842		522,312
Net liability in the balance sheet	($	99,081)	($	73,620)

��	��

	Present value of	Present value of		Fair value of
		defined benefit		plan		Net defined
		obligations		assets	benefit liability
Year ended December 31, 2020
At January 1	($	595,932)	$	522,312	($	73,620)
Current service cost	(	1,580)		-	(	1,580)
Interest (expense) income	(	4,727)		4,098	(	629)
	(	602,239)		526,410	(	75,829)
Remeasurements:
Return on plan assets (excluding amounts		-		5,910		5,910
included in interest income or expense)
Change in demographic assumptions	(	3,573)		-	(	3,573)
Change in financial assumptions	(	17,863)		-	(	17,863)
Experience adjustments	(	13,726)		-	(	13,726)
	(	35,162)		5,910	(	29,252)
Pension fund contribution		-		6,000		6,000
Paid pension		36,478	(	36,478)		-
At December 31	($	600,923)	$	501,842	($	99,081)
	Present value of			Fair value of
		defined benefit		plan		Net defined
		obligations		assets	benefit liability
Year ended December 31, 2019
At January 1	($	568,382)	$	495,415	($	72,967)
Current service cost	(	2,709)		-	(	2,709)
Interest (expense) income	(	6,366)		5,544	(	822)
	(	577,457)		500,959	(	76,498)
Remeasurements:
Return on plan assets (excluding amounts		-		24,973		24,973
included in interest income or expense)
Change in demographic assumptions	(	1,283)		-	(	1,283)
Change in financial assumptions	(	6,415)		-	(	6,415)
Experience adjustments	(	20,397)		-	(	20,397)
	(	28,095)		24,973	(	3,122)
Pension fund contribution		-		6,000		6,000
Paid pension		9,620	(	9,620)		-
At December 31	($	595,932)	$	522,312	($	73,620)

��

-231-

��

Discount rate Future salary increases	Years ended December 31,	Years ended December 31,
	2020 0.3% 4.75%	2019
		0.8%
		5%

��

December 31, 2020 Effect on present value of defined benefit obligation December 31, 2019 Effect on present value of defined benefit obligation	Increase by Decrease by Increase by Decrease by 0.25% 0.25% 0.25% 0.25% 16,617 $ 17,201) ($ 16,104) ($ 15,599 $ Discount rate Future salaryincreases Increase by Decrease by Increase by Decrease by 0.25% 0.25% 0.25% 0.25% 16,562 $ 17,221) ($ 16,154) ($ 15,635 $ Discount rate Future salaryincreases	Future salaryincreases	Future salaryincreases
			Decrease by 0.25%
			15,599 $
			Decrease by 0.25%
			15,635 $

��

��
��

��

-232-

Within 1 year 2~5 years 5~10 years Over 10 years	272,184 $ 108,918 191,135 35,077
	607,314 $

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(11) ��
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At January 1 Employees' compensation transferred to common stock At December 31	Unit : Thousands of shares 2020 2019 508,095 508,095 2,589 - 510,684 508,095	Unit : Thousands of shares 2020 2019 508,095 508,095 2,589 - 510,684 508,095
		508,095 -
		508,095

��On March 20, 2020, the Board of Directors of the Company during their meeting resolved for the �� The Company calculates the number of shares based on the closing price at the previous day of the board meeting resolution. The closing price was $162 (in dollars) per share, and the Company issued 2,589 thousand new shares, which was approved by the Competence Authority. The effective date for the issuance was April 8, 2020, and the related registration for the issuance was completed on April 20, 2020.
��

��

-233-

(12) ��

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		2020
	Share premium	Change in associates accounted for under equitymethod 48,272 $ - 12,763 - - 61,035 $ 2019
2,688,155 $ 393,591 - 1,021,370) ( - 2,060,376 $ Share premium
	Share premium	Change in associates accounted for under equitymethod 40,208 $ 8,064 - - 48,272 $
3,196,250 $ - 508,095) ( - 2,688,155 $

(13) ��

��

-234-

��

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��
��

��	��	��	��
Legal reserve (Reversal of) Special reserve Cash dividends	Dividends per Dividends per Amount share(in dollars) Amount share(in dollars) 674,907 $ - $ 435,077 $ - $ 217,036 - 600,443) ( - 4,596,164 9.00 3,048,573 6.00 5,488,107 $ 9.00 $ 2,883,207 $ 6.00 $ 2019 2018	2018
	Amount 674,907 $ 217,036 4,596,164 5,488,107 $		Dividends per share(in dollars)
			- $ - 6.00
			6.00 $

��
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-235-

(14) ��

(14)	��
(15)	�� At January 1 Revaluation �Group �Associates Currency translation differences: �Group At December 31 At January 1 Revaluation �Group �Associates Reclassified to retained earnings Currency translation differences: �Group At December 31 Revenue from contracts with customers				2020
			Unrealised gains on valuation		Currency translation difference
			545,107 $ 829,923 9,879 -		762,143) ($ - - 2,178,815) ( 2,940,958) ($ 2019
			1,384,909 $

			Unrealised gains on valuation
		$
		$

				2020 56,426,751 $		2019
						40,845,708 $

��

-236-

��

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Year ended December 31,2020	Integrated circuitproducts 56,311,636 $ 56,311,636 $ Integrated circuitproducts 40,729,445 $ 40,729,445 $	Others 115,115 $ 115,115 $ Others 116,263 $ 116,263 $	Total
Revenue from external customer contracts Timing of revenue recognition At a point in time Year ended December 31,2019			56,426,751 $
			56,426,751 $
			Total
Revenue from external customer contracts Timing of revenue recognition At a point in time			40,845,708 $
			40,845,708 $

��

	December	31,2020	December	31,2019		January1,2019
Contract liabilities
�advance sales receipts	$	163,080	$	67,853	$	110,764
��					��
��

��
		Years ended	December 31,
		2020	2019
Contract liabilities�advance sales receipts	$	49,080	$	100,804
��

��

		December31,2020		December	31,2019
Refund liabilities�current	$	5,240,048	$		3,831,860
(16)��
		Years ended	December31,
		2020		2019
Interest income from bank deposits	$	23,356	$		42,689
Other interest income		28,747			75,753
	$	52,103	$		118,442

��

-237-

(17) ��

��
Rent income Dividend income Grant income Other income	Years ended December 31,
	2020 4,571 $ 411 60,635 1,905 67,522 $	2019
		12,865 $ 406 44,434 18,244
		75,949 $

(18) ��

��	$	67,522	$	75,949
		Years ended	December 31,
		2020	2019
Gains on disposal of property, plant and equipment	$	1,700	$	92
Gains on disposal of investment		466		-
Net currency exchanges losses	(	105,455)	(	145,314)
Gains (Losses) on financial assets
at fair value through profit or loss		95,624	(	325)
Impairment loss of investments accounted for
under equity method		-	(	41,397)
Other losses	(	5,132)	(	4,801)
	($	12,797)	($	191,745)

(19) ��

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Interest expense Bank borrowings Lease liabilities	Years ended December31,
	2020 118,211 $ 18,916 137,127 $	2019
		131,449 $ 12,651
		144,100 $

(20) ��

�� Interest expense Bank borrowings Lease liabilities	118,211 $ 131,449 $ 18,916 12,651 137,127 $ 144,100 $	118,211 $ 131,449 $ 18,916 12,651 137,127 $ 144,100 $
Employee benefit expenses Depreciation Amortisation	Years ended December31,
	2020 14,433,363 $ 694,924 $ 1,098,919 $	2019
		11,303,979 $
		562,805 $
		948,008 $

��

-238-

(21) ��

��
Wages and salaries Labor and health insurance fees Pension costs Other personnel expenses	Years ended December 31,
	2020 13,445,450 $ 474,118 275,054 238,741 14,433,363 $	2019
		10,471,633 $ 410,720 248,211 173,415
		11,303,979 $

��
��
��
��

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-239-

(22) ��

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�� ��
		Years ended December 31,
		2020			2019
Current income tax:
Current income tax on profits for the year	$	622,571	$		388,600
Tax on undistributed retained earnings		63,048			74,745
Prior year income tax over estimation	(	121,055)	(		19,067)
Total current income tax		564,564			444,278
Deferred income tax:
Origination and reversal of temporary
differences	(	4,564)	(		6,278)
Income tax expense	$	560,000	$		438,000
��
		Years ended	December 31,
		2020			2019
Income tax calculated based on income before
tax	$	1,870,696	$		1,445,657
Expenses disallowed by tax regulation and
effects from tax-exempt income	(	1,252,689)	(		1,063,335)
Prior year income tax over estimation	(	121,055)	(		19,067)
Tax on undistributed retained earnings		63,048			74,745
Income tax expense	$	560,000		$	438,000

��

��
		Year ended December 31,				2020
			Recognised in
		January1	profit or loss			December 31
Deferred income tax assets:
-Temporary differences:
Unrealised loss on market price decline
and obsolete and slow-moving
inventories and others	$	114,163	$	55,713	$		169,876
Deferred income tax liabilities:
-Temporary differences:
Unrealised exchange gain	(	51,723)	(	51,149)	(		102,872)
	$	62,440	$	4,564	$		67,004

��

-240-

(23)	�� �� ��until 2018 have been assessed and approved by the Tax Authority. �� January1 Recognised in profit or loss December 31 Deferred income tax assets: -Temporary differences: Unrealised loss on market price decline and obsolete and slow-moving inventories and others 78,472 $ 35,691 $ 114,163 $ Deferred income tax liabilities: -Temporary differences: Unrealised exchange gain 22,310) ( 29,413) ( 51,723) ( 56,162 $ 6,278 $ 62,440 $ Year ended December 31,2019 December31,2020 December31,2019 Deductible temporary differences 1,256,642 $ 1,108,747 $	Year ended December 31,2019	Year ended December 31,2019
			December 31

��
Basic earnings per share Profit attributable to ordinary shareholders Diluted earnings per share Profit attributable to ordinary shareholders Assumed conversion of all dilutive potential ordinary shares Employees�compensation Profit attributable to ordinary shareholders plus assumed conversion of all dilutive potential ordinary shares	Year ended December 31,2020		Earnings per share (in dollars)
	Amount after tax	Weighted average number of ordinary shares outstanding (shares in thousands)
	8,793,477 $ 8,793,477 $ - 8,793,477 $	510,126 510,126 9,418 519,544	17.24 $ 16.93 $

��

-241-

(24)

��
��
Amount after
tax
Weighted average number of
ordinary shares outstanding
(shares in thousands)
Earnings per
share
(in dollars)
Basic earnings per share
Profit attributable to ordinary
shareholders
6,790,283
$ 508,095
13.36
$ Diluted earnings per share
Profit attributable to ordinary
shareholders
6,790,283
$ 508,095
Assumed conversion of all dilutive
potential ordinary shares
Employees�compensation
-
8,926
Profit attributable to ordinary
shareholders plus assumed
conversion of all dilutive
potential ordinary shares
6,790,283
$ 517,021
13.13
$ Year ended December 31,2019
2020
2019
Purchase of property, plant and equipment
1,653,027
$ 685,274
$ Add: Opening balance of payable on equipment
113,350
110,401
Less: Ending balance of payable on equipment
58,959)
(
113,350)
(
Cash paid during the year
1,707,418
$ 682,325
$ Years ended December 31,
2020
2019
Purchase of intangible assets
1,401,826
$ 1,440,707
$ Add: Opening balance of payable on
software and intellectual property
725,345
684,438
Less: Ending balance of payable on
software and intellectual property
1,152,591)
(
725,345)
(
Cash paid during the year
974,580
$ 1,399,800
$ Years ended December 31,

��

-242-

(25) ��

At January 1, 2020 Changes in cash flow from financing activities Interest paid Interest on lease liabilities Changes in other non-cash items At December 31, 2020 At January 1, 2019 Changes in cash flow from financing activities Interest paid Interest on lease liabilities Changes in other non-cash items At December 31, 2019	Short-term borrowings	Short-term borrowings	Refundable deposits received	Lease liabilities	Liabilities from financing activities-total
	18,604,770 $ 7,148,080) ( - - - 11,456,690 $ Short-term borrowings		3,258 $ 2,220) ( - - - 1,038 $ Refundable deposits received	812,095 $ 35,261) ( 18,916) ( 18,916 348,140 1,124,974 $ Lease liabilities	19,420,123 $ 7,185,561) ( 18,916) ( 18,916 348,140 12,582,702 $ Liabilities from financing activities-total
		14,526,311 $ 4,078,459 - - - 18,604,770 $	4,739 $ 1,481) ( - - - 3,258 $	732,121 $ 25,723) ( 12,651) ( 12,651 105,697 812,095 $	15,263,171 $ 4,051,255 12,651) ( 12,651 105,697 19,420,123 $

7. ��

(1) ��

Names of related parties

Leading Enterprises Limited Realtek Singapore Private Limited Bluocean Inc. Talent Eagle Enterprise Inc. Amber Universal Inc. Cortina Systems Taiwan Limited RayMX Microelectronics Corp. G.M.I Technology Inc. Actions Semiconductor Co., Ltd. C-Media Electronics Inc. Greatek Electronics Inc. EmBestor Technology Inc.

Relationship with the Company

Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Sub-subsidiary Sub-subsidiary Other related party Other related party Other related party Other related party Other related party

��

-243-

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Sales of goods� G.M.I Technology Inc. Others	Years ended December 31,
	2020 7,375,829 $ 365,249 7,741,078 $	2019
		5,996,976 $ 269,079
		6,266,055 $

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		Years ended	December 31,
		2020		2019
Greatek Electronics Inc.	$	1,033,517	$	1,024,163
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Accounts receivable� G.M.I Technology Inc. Others	December 31,2020 1,751,860 $ 59,040 1,810,900 $	December 31,2019
		$ 1,172,793 54,462
		1,227,255 $

��

December 31,2020 December 31,2019
Accounts payable�
Greatek Electronics Inc. 253,691 $ 313,185 $
��
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-244-

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			Years ended	Years ended	December 31,	December 31,
		2020				2019
				Ending				Ending
		Amount		balance		Amount		balance
Other related parties-
Sales commissions	$	286,704	$	60,784	$	227,843	$	55,690
Technical royalty revenue	($	8,406)	$	-	($	4,430)	$	-
Cash dividend income	($	411)	$	-	($	406)	$	-
Subsidiaries and sub-subsidiaries-
Interest income	($	28,747)	($	20)	($	70,752)	($	44,587)
Other income	$	-	($	46,380)	$	-	($	48,980)
Cash dividend income	($	5,631,482)	$	-	($	2,750,826)	$	-
Rent income	($	1,922)	($	245)	($	1,922)	($	243)

��

Leading Enterprises Limited Leading Enterprises Limited	Accounts No. of shares Investments accounted for under equity method 9,856,425 Investments accounted for under equity method 60,000		Year ended December 31,202 Objects Consideration Realtek Singapore Private Limited equity 1,780,187 $ Leading Enterprises Limited equity (increased common stock) 1,735,500 3,515,687 $
			Objects Realtek Singapore Private Limited equity Leading Enterprises Limited equity (increased common stock)

��

-245-

��

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Subsidiaries Leading Enterprises Limited Talent Eagle Enterprise Inc. Bluocean Inc. Amber Universal Inc. Realtek Singapoe Private Limited	December 31,2020 - $ 57,016 - 11,403 570,160 638,579 $	December 31,2019
		1,806,360 $ 1,737,116 1,490,247 602,120 -
		5,635,843 $

��

Subsidiaries

Years ended December 31,	Years ended December 31,
2020 28,747 $	2019
	70,752 $

��

Subsidiaries

��
December31,2020 10,605,268 $	December31,2019
	9,798,836 $

(2) ��

�� Subsidiaries	10,605,268 $ 9,798,836 $	10,605,268 $ 9,798,836 $
Salaries and other short-term employee benefits Post-employment benefits Total	Years ended December 31,
	2020 137,298 $ 2,721 140,019 $	2019
		120,242 $ 2,697
		122,939 $

8. ��

��

Pledged asset Time deposits (shown in financial assets at amortised cost - non-current) "	December 31,2020 December 31,2019 30,821 $ 34,307 $ 44,472 30,578 75,293 $ 64,885 $ Bookvalue	Purposes
	December 31,2020 30,821 $ 44,472 75,293 $
		Guarantee for the importation customs duties of materials Guarantee for leasing land and office in Science Park

��

(1) ��

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-246-

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(2) ��

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10. ��

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11. ��

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12. ��

(1) ��

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-247-

(2) ��

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December 31, 2020 December 31, 2019

�� ��		December 31,2020		December 31,2019
Financial assets Financial assets at fair value through profit or loss Financial assets mandatorily measured at fair value through profit or loss Financial assets at amortised cost/Receivables Cash and cash equivalents Financial assets at amortised cost Accounts receivable (including related parties) Other receivables (including related parties) Refundable deposits Financial liabilities Financial liabilities at amortised cost Short-term borrowings Notes payable Accounts payable (including related parties) Other payable (including related parties) Guarantee deposits received Other financial liability Lease liability		124,360 $ 4,630,448 $ 75,293 9,397,980 689,052 34,805 14,827,578 $ December 31,2020		28,736 $ 3,333,828 $ 64,885 7,815,480 5,750,070 16,166 16,980,429 $ December 31,2019
		11,456,690 $ 3,276 7,862,783 13,464,454 1,038 5,240,048 38,028,289 $ 1,124,974 $		18,604,770 $ 3,276 5,972,703 9,985,359 3,258 3,831,860 38,401,226 $ 812,095 $

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-248-

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December 31,2020	December 31,2020	December 31,2020
Foreign currency amount Book value (In thousands) Exchange rate (NTD) 445,489 $ 28.508 12,700,000 $ 1,387,989 28.508 39,568,790 468,326 28.508 13,351,038 December 31,2019		Book value (NTD)
Foreign currency amount (In thousands) 549,291 $ 1,285,500 348,135	Exchange rate 30.106 30.106 30.106	Book value (NTD)
		16,536,969 $ 38,701,252 10,480,953

��

-249-

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Year ended December 31,	Year ended December 31,	2020
Sensitivityanalysis
Effect on Degree of variation profit or loss 1% 127,000 $ 1% - 1% 133,510) ( Year ended December 31,		Effect on other comprehensive income
		- $ 395,688 - 2019
Sensitivityanalysis
Degree of variation 1% 1% 1%	Effect on profit or loss 165,370 $ - 104,810) (	Effect on other comprehensive income
		- $ 387,013 -

��

-250-

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-251-

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At December 31, 2020 Expected loss rate Total book value Loss allowance At December 31, 2019 Expected loss rate Total book value Loss allowance	Notpast due 0-1% 9,274,060 $ 92,162 $ Notpast due 0-1% 7,518,066 $ 75,187 $	1~90 dayspast due 0-1% 218,846 $ 2,764 $ 1~90 dayspast due 0-1% 376,365 $ 3,764 $	Over 90 days past due 100% 434 $ 434 $ Over 90 days past due 100% 656 $ 656 $	Total
				9,493,340 $
				95,360 $
				Total
				7,895,087 $
				79,607 $

��

��
At January 1 Provision for impairment At December 31 At January 1 Provision for impairment At December 31	2020
	Loss allowance for accounts receivable
	79,607 $ 15,753
	95,360 $
	2019
	Loss allowance for accounts receivable
	53,989 $ 25,618
	79,607 $

��

��

-252-

December 31, 2020

		December 31,2020
Financial assets at amortised cost Financial assets at amortised cost	12 months 75,293 $	Significant increase in Impairment credit risk of credit - $ - $ Lifetime December31,2019	Total
		Significant increase in credit risk - $ December
			75,293 $

	12 months 64,885 $	Significant increase in Impairment credit risk of credit - $ - $ Lifetime	Total
		Significant increase in credit risk - $
			64,885 $

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-253-

Non-derivative financial liabilities:

Non-derivative financial liabilities:
December 31, 2020 Short-term borrowings Notes payable Accounts payable (including related parties) Other payables (including related parties) Lease liability Guarantee deposits received Other financial liabilities Non-derivative financial liabilities: December 31, 2019 Short-term borrowings Notes payable Accounts payable (including related parties) Other payables (including related parties) Lease liability Guarantee deposits received Other financial liabilities	Less than 1 year	Between 1 and 5years	Over 5years
	11,456,691 $ 3,276 7,862,783 13,414,454 54,804 - 5,240,048 Less than 1 year	- $ - - - 153,111 - - Between 1 and 5years	- $ - - - 1,366,224 1,038 - Over 5years
	18,621,514 $ 3,276 5,972,703 9,985,359 40,860 - 3,831,860	- $ - - - 125,645 - -	- $ - - - 934,269 3,258 -

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(3) ��

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-254-

�� December 31, 2020 Level 1 Level 2 Assets Recurring fair value measurement Financial assets at fair value through profit or loss Equity securities 124,360 $ - $ December 31, 2019 Level 1 Level 2 Assets Recurring fair value measurement Financial assets at fair value through profit or loss Equity securities 28,736 $ - $	Level 3 - $ Level 3 - $	Total
		124,360 $
		Total
		28,736 $

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At January 1 Current sale At December 31	2020 Non-derivative Non-derivative equityinstrument equityinstrument - $ 936 $ - 936) ( - $ - $ 2019	2019
		Non-derivative equityinstrument
		- $

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-255-

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-256-

None	None	None	None	None	None	None	None	None	None
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- $	-	-	-	-	-	-	-	-	-
None	None	None	None	None	None	None	None	None	None
- $	-	-	-	-	-	-	-	-	-
Operations	Operations	Operations	Operations	Operations	Operations	Operations	Operations	Operations	Operations
� �	�	�	�	�	�	�	�	�	�
�� ��	�� ��	�� ��	�� ��	�� ��	�� ��	�� ��	�� ��	�� ��	�� ��
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Y	Y	Y	Y	Y	Y	Y	Y	Y	Y
Other receivables- related parties	Other receivables- related parties	Other receivables- related parties	Other receivables- related parties	Other receivables- related parties	Other receivables- related parties	Other receivables- related parties	Other receivables- related parties	Other receivables- related parties	Other receivables- related parties
RayMX Microelectronics Corp.	Realtek Singapore Private Limited	Bluocean Inc.	Leading Enterprises Limited	Amber Universal Inc.	Talent Eagle Enterprise Inc.	Bluocean Inc.	Talent Eagle Enterprise Inc.	Blueocean Inc.	Leading Enterprises Limited
Realtek Semiconductor Corporation	Realtek Semiconductor Corporation	Realtek Semiconductor Corporation	Realtek Semiconductor Corporation	Realtek Semiconductor Corporation	Realtek Semiconductor Corporation	Leading Enterprises Limited	Leading Enterprises Limited	Amber Universal Inc.	Cortina Access, Inc.
�	�	�	�	�	�	�	�	�	�

-257-

None	None	None	None	None	None
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None	None	None	None	None	None
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Operations	Operations	Operations	Operations	Operations	Operations
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Other receivables- related parties	Other receivables- related parties	Other receivables- related parties	Other receivables- related parties	Other receivables- related parties	Other receivables- related parties
Realtek Singapore Private Limited	RayMX Microelectronics Corp.	Realsil Microelectronics Corp.	RayMX Microelectronics Corp.	Suzhou Pankore Integrated Circuit Technology Co. Ltd	Suzhou Pankore Integrated Circuit Technology Co. Ltd
Realtek Investment Singapore Private Limited	Realtek Singapore Private Limited	Realtek Singapore Private Limited	Realsil Microelectronics Corp.	Realsil Microelectronics Corp.	Cortina Network Systems Shanghai Co., Ltd.
�	�	�	�	�	�

-258-


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Realtek Singapore Private Limited	Leading Enterprises Limited	Realsil Microelectronics Corp.	RayMX Microelectronics Corp.	Realsil Microelectronics Corp.	RayMX Microelectronics Corp.
Realtek Semiconductor Corporation	Realtek Semiconductor Corporation	Realtek Semiconductor Corporation	Realtek Semiconductor Corporation	Leading Enterprises Limited	Realsil Microelectronics Corp.
�	�	�	�	�	�

-259-


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Financial assets at fair value through profit or loss	Financial assets at fair value through other comprehensive income	Financial assets at fair value through other comprehensive income	Financial assets at fair value through other comprehensive income	Financial assets at fair value through other comprehensive income	Financial assets at fair value through other comprehensive income	Financial assets at fair value through other comprehensive income	Financial assets at fair value through other comprehensive income	Financial assets at fair value through other comprehensive income	Financial assets at fair value through profit or loss	Financial assets at fair value through other comprehensive income	Financial assets at fair value through other comprehensive income	Financial assets at fair value through other comprehensive income	Financial assets at fair value through profit or loss	Financial assets at fair value through profit or loss	Financial assets at fair value through profit or loss
Other related parties	None	None	None	None	None	None	None	None	Other related parties	Other related parties	None	Other related parties	None	None	None
C-media Electronics Inc. - Common stock	Compal broadband networks Inc. - Common	t k Shieh-Yong Investment Co., Ltd. - Common stock	Compal broadband networks Inc. - Common	Fortemedia Inc. - Common stock	Starix Technology, Inc.-Preferred stock	Octtasia Investment Holding Inc. - Common stock	Octtasia Investment Holding Inc. - Common stock	United Microelectronics Corporation - Common stock	C-media Electronics Inc.- Common stock	Greatek Electroninc Inc. - Common stock	Subtron technology Co., Ltd - Common stock	Embestor Technology Inc. - Common stock	Cuam Money Fund	Harvest Money Fund	Xin Chen Money Fund
Realtek Semiconductor Corporation	Realking Investment Co., Ltd.	Realsun Investment Co., Ltd.	Realsun Investment Co., Ltd.	Leading Enterprises Limited	Leading Enterprises Limited	Leading Enterprises Limited	Amber Universal Inc.	Hung-wei Venture Capital Co., Ltd.	Hung-wei Venture Capital Co., Ltd.	Hung-wei Venture Capital Co., Ltd.	Hung-wei Venture Capital Co., Ltd.	Hung-wei Venture Capital Co., Ltd.	Realsil Microelectronics Corp.	Realsil Microelectronics Corp.	Realsil Microelectronics Corp.

-260-


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Financial assets at fair value through profit or loss	Financial assets at fair value through profit or loss	Financial assets at fair value through profit or loss	Financial assets at fair value through profit or loss	Financial assets at fair value through profit or loss	Financial assets at fair value through profit or loss	Financial assets at fair value through profit or loss	Financial assets at fair value through profit or loss	Financial assets at fair value through other comprehensive income
None	None	None	None	None	None	None	None	None
Guang-Fa Demand Policy Loan Fund	Guang-Da Monetary Fund	Southern Cash Fund	Guang-Fa Monetary Fund	Tian Tianjin Stable Fund	Cash Appreciation Currency Fund	Step by step Gold Find	Ri-Ri-Xin Fund	CyWeeMotion Group Limited
Realsil Microelectronics Corp.	Realsil Microelectronics Corp.	Realsil Microelectronics Corp.	Realsil Microelectronics Corp.	Realtek Semiconductor (Shen Zhen) Corp.	Realtek Semiconductor (Shen Zhen) Corp.	Cortina Network Systems Shanghai Co. Ltd.	Cortina Network Systems Shanghai Co. Ltd.	Bluocean Inc.

-261-

Reason for Relationship Basis or acquisition of Relationship Original owner who between the original Date of the reference used real estate and Real estate Real estate Date of the Transaction Status of with the sold the real estate owner and the original in setting the status of the Other acquired by acquired event amount payment Counterparty counterparty to the counterparty acquirer transaction Amount price real estate commitments the real estate is disclosed below: If the counterparty is a related party, information as to the last transaction of �� �� �� �� �� ��	None	�
	Owner-occupied office
	Negotiated with the counterparty based on the appraisal report issued by CCIS Real Estate Joint Appraisers Firm and resolved by the Board of Directors
	$ -
	-
	-
	-
	None
	Huaku Development Co., Ltd.
	Paid $699,100 based on the contract
	$699,100
	April 1, 2020 (entered into the contract and paid the first payment)
	Property in Zhongshan District, Taipei City
	Realtek Semiconductor Corporation

-262-


13%	0%	0%	7%	1%	3%	1%
1,751,860 $	15,289	43,751	890,128	111,371	253,691) (	86,496) (
Approximately the same with third party transactions	Approximately the same with third party transactions	Approximately the same with third party transactions	Approximately the same with third party transactions	Approximately the same with third party transactions	Approximately the same with third party transactions	Approximately the same with third party transactions
Approximately the same with third party transactions	Approximately the same with third party transactions	Approximately the same with third party transactions	Approximately the same with third party transactions	Approximately the same with third party transactions	Approximately the same with third party transactions	Approximately the same with third party transactions
Approximately the same with third party transactions	Approximately the same with third party transactions	Approximately the same with third party transactions	Approximately the same with third party transactions	Approximately the same with third party transactions	Approximately the same with third party transactions	Approximately the same with third party transactions
(9%)	0%	0%	(6%)	0%	3%	1%
7,375,829) ($	164,556) (	200,693) (	4,537,246) (	261,579) (	1,033,517	202,096
(Sales)	(Sales)	(Sales)	(Sales)	(Sales)	Purchase	Purchase
Other related parties	Other related parties	Other related parties	Other related parties	Other related parties	Other related parties	Other related parties
G.M.I Technology Inc.	Actions Semiconductor Co., Ltd.	C-Media Electronics Inc.	G.M.I Technology Inc.	G.M.I Technology Inc.	Greatek Electronics Inc.	Greatek Electronics Inc.
Realtek Semiconductor Corporation	Realtek Semiconductor Corporation	Realtek Semiconductor Corporation	Realtek Singapore Private Limited	RayMX Microelectronics Corp.	Realtek Semiconductor Corporation	Realtek Singapore Private Limited

-263-

17,695 $	-	-
800,691 $	430,759	111,371
-	-	-
$ -	-	-
5.04	4.99	2.81
1,751,860 $	890,128	111,371
Other related parties	Other related parties	Other related parties
G.M.I Technology Inc.	G.M.I Technology Inc.	G.M.I Technology Inc.
Realtek Semiconductor Corporation	Realtek Singapore Private Limited	RayMX Microelectronics Corp.

-264-

0.06%	2.61%	0.82%	0.52%	0.19%	0.26%	0.02%	0.13%	0.04%
No similar transaction can be compared with. Transaction prices and terms are determined in accordance with mutual agreement.	No similar transaction can be compared with. Transaction prices and terms are determined in accordance with mutual agreement.	No similar transaction can be compared with. Transaction prices and terms are determined in accordance with mutual agreement.	No similar transaction can be compared with. Transaction prices and terms are determined in accordance with mutual agreement.	No similar transaction can be compared with. Transaction prices and terms are determined in accordance with mutual agreement.	No similar transaction can be compared with. Transaction prices and terms are determined in accordance with mutual agreement.	No similar transaction can be compared with. Transaction prices and terms are determined in accordance with mutual agreement.	No similar transaction can be compared with. Transaction prices and terms are determined in accordance with mutual agreement.	No similar transaction can be compared with. Transaction prices and terms are determined in accordance with mutual agreement.
$ 46,380	2,026,553	638,579	400,935	147,101	204,759	12,976	104,761	30,381
Other receivables	Technical service fees	Other payables	Technical service fees	Other payables	Technical service fees	Other payables	Technical service fees	Other payables
�	�	�	�	�	�	�	�	�
RayMX Microelectronics Corp.	Realsil Microelectronics Corp.	Realsil Microelectronics Corp.	Realtek Semiconductor (Shen Zhen) Corp.	Realtek Semiconductor (Shen Zhen) Corp.	Cortina Access, Inc.	Cortina Access, Inc.	Cortina Network Systems Shanghai Co. Ltd.	Cortina Network Systems Shanghai Co. Ltd.
Realtek Semiconductor Corporation	Realtek Singapore Private Limited	Realtek Singapore Private Limited	Realtek Singapore Private Limited	Realtek Singapore Private Limited	Realtek Singapore Private Limited	Realtek Singapore Private Limited	Realtek Singapore Private Limited	Realtek Singapore Private Limited
�	�	�	�	�	�	�	�	�

-265-

0.15%	0.08%	0.06%
No similar transaction can be compared with. Transaction prices and terms are determined in accordance with mutual agreement.	No similar transaction can be compared with. Transaction prices and terms are determined in accordance with mutual agreement.	No similar transaction can be compared with. Transaction prices and terms are determined in accordance with mutual agreement.
$ 112,793	62,503	46,380
Technical service fees	Technical service fees	Other receivables
�	�	�
Cortina Systems Taiwan Limited	Realtek Semiconductor (Japan) Corp.	RayMX Microelectronics Corp.
Realtek Singapore Private Limited	Realtek Singapore Private Limited	Realtek Singapore Private Limited
�	�	�

-266-

Subsidiary	Subsidiary	Subsidiary	Subsidiary	Subsidiary	Subsidiary	Subsidiary	Subsidiary	Subsidiary	Subsidiary	Subsidiary	Investments accounted for under equity method	Investments accounted for under equity method
671,282 $	51,962	5,334,833	76,184	295,459) (	130,511	5,145	150,791	7,428) (	57	97	11,188) (	7,209) (
671,282 $	51,962	5,879,387	76,184	295,459) (	130,511	5,145	150,791	7,428) (	57	146	746) (	60,277) (
$ 13,239,425	3,367,376	11,149,584	3,369,936	2,162,386	6,275,015	619,510	632,946	290,236	5,118	19,330	255	9,158
100%	100%	100%	100%	100%	100%	100%	100%	100%	100%	66.67%	-	6.68%
34,630	41,432	89,856,425	110,050,000	11,410,000	200,000,000	28,000,000	25,000,000	29,392,985	500,000	1,918,910	4,178,509	2,000,000
$ 15,005,734	4,739,146	2,408,480	3,313,165	3,435,095	6,021,200	280,000	250,000	293,930	5,000	19,189	66,657	110,000
$ 14,080,956	4,487,621	4,076,101	3,137,305	3,252,763	5,701,600	280,000	250,000	293,930	5,000	19,189	66,657	110,000
Investment holdings	Investment holdings	ICs manufacturing, design, research, development, sales, and ki	maretng Investment holdings	Investment holdings	Investment holdings	Investment holdings	Investment holdings	Investment holdings	ICs manufacturing, design, research, development, sales, and	Manufacturing and installation of computer equipment and wholesasle, retail and related services of electronic materials and information/software	Investment holdings	Research and development, design, manufacturing, sales and other services of electronic components, information/Software and integrated circuits.
British Virgin Islands	British Virgin Islands	Singapore	Cayman Islands	Cayman Islands	Singapore	Taiwan	Taiwan	Taiwan	Taiwan	Taiwan	Taiwan	Taiwan
Leading Enterprises Limited	Amber Universal Inc.	Realtek Singapore Private Limited	Bluocean Inc.	Talent Eagle Enterprise Inc.	Realtek Investment Singapore Private Limited	Realsun Investments Co., Ltd.	Hung-wei Venture Capital Co., Ltd.	Realking Investments Co., Ltd.	Realsun Technology Corporatioin	Bobitag Inc.	Technology Partner V Venture Capital Corporation	Estinet Technologies Incorporation
Realtek Semiconductor Corporation	Realtek Semiconductor Corporation	Realtek Semiconductor Corporation	Realtek Semiconductor Corporation	Realtek Semiconductor Corporation	Realtek Semiconductor Corporation	Realtek Semiconductor Corporation	Realtek Semiconductor Corporation	Realtek Semiconductor Corporation	Realtek Semiconductor Corporation	Realtek Semiconductor Corporation	Realtek Semiconductor Corporation	Realtek Semiconductor Corporation

-267-

Investments accounted for under equity method	Sub-Subsidiary	Sub-Subsidiary	Sub-Subsidiary	Sub-Subsidiary	Sub-Subsidiary	Sub-Subsidiary	Sub-Subsidiary	Sub-Subsidiary	Sub-Subsidiary	Sub-Subsidiary
12,583) ($	104) (	58) (	561,423	21) (	121,713) (	21,968	791	17,359) (	418,782) (	9,150) (
32,943) ($	104) (	58) (	5,879,387	21) (	121,713) (	21,968	791	17,359) (	418,782) (	9,150) (
$ 147,441	4,037	7,663	-	1,082	1,570,047	858,662	48,580	86,270	22,012) (	64,914
37.38%	100%	100%	-	100%	100%	100%	100%	100%	100%	100%
20,000,000	400	300,000	0	-	2,825,000	16,892	21,130,000	4,000,000	52,000,000	10,450,000
$ 200,000	5,542	1,950,869	1,257,578	5,799	850,495	1,229,710	60,212	30,106	1,204,240	-
$ 200,000	5,530	1,847,318	-	5,516	805,351	1,164,438	57,016	114,032	1,482,416	74,144
Venture capital activities	ICs deign,sales, and consultancy	Investment holdings	ICs manufacturing, design, research, development, sales, and	Information services and technical support	Investment holdings	R&D and information services	R&D and technical support	R&D and technical support	R&D and information services	R&D and information services
Taiwan	Japan	Mauritius	Singapore	Hong Kong	Mauritius	U.S.A	Taiwan	Vietnam	U.S.A	Malaysia
Innorich Venture Capital Corp.	Realtek Semiconductor (Japan) Corp.	Circon Universal Inc.	Realtek Singapore Private Limited	Realtek Semiconductor (Hong Kong) Limited	Empsonic Enterprises Inc.	Cortina Access Inc.	Cortina Systems Taiwan Limited	Realtek Viet Nam Co., Ltd.	Ubilinx Technology Inc.	Realtek Semiconductor (Malaysia) Limited
Realking Investments Co., Ltd.	Leading Enterprises Limited	Leading Enterprises Limited	Leading Enterprises Limited	Amber Universal Inc.	Realtek Singapore Private Limited	Realtek Singapore Private Limited	Realtek Singapore Private Limited	Realtek Singapore Private Limited	Talent Eagle Enterprise Inc.	Bluocean Inc.

-268-

Remitted to
Mainland
China
Remitted
back to
Taiwan
Footnote
Accumulated
amount of
remittance from
Taiwan to
Mainland China
as of December
31, 2020
Net income of
investee for the
year ended
December 31,
2020
Investee in Mainland
China
Main business activities
Paid-in Capital
Investment
method
(Note1)
Accumulated amount of
remittance from Taiwan to
Mainland China as of
January 1, 2020
Ownership held
by the Company
(direct or
indirect)
Investment income (loss)
recognised by the
Company for the year
ended December 31,
2020
(Note2(2)C)
Book value of
investment in
Mainland China
as of December
31, 2020
Accumulated
amount of investment
income remitted back to
Taiwan as of December 31,
2020
Amount remitted from
Taiwan to Mainland
China/Amount remitted
back to Taiwan for the year
ended December 31, 2020

Cortina Network
Systems Shanghai Co.,
Ltd.
R&D and technical support
102,629
$ (2)
102,629
$ $ -
$ -
102,629
$ 2,338)
($ 100%
2,338)
($ 98,002
$ $ -
Realsil Microelectronics
Corp.
R&D and technical support
798,224
(2)
798,224
-
-
798,224
111,152
100%
111,152
1,566,220
-
Realtek Semiconductor
(Shen Zhen) Corp.
R&D and technical support
142,540
(2)
142,540
-
-
142,540
13,415
100%
13,415
270,612
-
RayMX Microelectronics
Corp.
ICs manufacturing, design,
research, development,
sales, and marketing
114,428
(2)
114,428
-
-
114,428
137
100%
137
86,108
-
Suzhou Pankore
Integrated Circuit
Technology Co. Ltd.
ICs manufacturing, design,
research, development,
sales, and marketing
43,592
(2)
-
43,592
-
43,592
17,915)
(
100%
17,915)
(
25,370
-
Company name
Accumulated amount
of remittance from Taiwan
to Mainland
China as of
December 31, 2020
Investment amount
approved by the
Investment
Commission of the
Ministry of
Economic Affairs
(MOEA)
Ceiling on
investments in
Mainland China
imposed by the
Investment
Commission of
MOEA
Cortina Network
Systems Shanghai Co.,
Ltd.
$ 102,629
$ 102,629
$ 17,675,449
Realsil Microlectronics
Corp.
798,224
798,224
Realtek Semiconductor
(Shan Zhen) Corp.
142,540
142,540
RayMX Microelectronics
Corp.
114,428
114,428
Suzhou Pankore
Integrated Circuit
Technology Co. Ltd.
43,592
43,592
Note 1: Investment methods are classified into the following three categories; fill in the number of category each case belongs to:
(1) Directly invest in a company in Mainland China.
(2) Through investing in an existing company in the third area, which then invested in the investee in Mainland China.
(3) Others.
Note 2: In the Investment income (loss) recognised by the Company for the year ended December 31, 2020 column, except for the financial statements of Cortina Network Systems Shanghai Co. Ltd. were audited by other independent accountants, the remaining financial statements
were audited by the independent accountants of parent company in Taiwan.
Note 3: The amount of foreign currencies denominated in New Taiwan dollars in this table, which related to income and expenses were re-translated at the average exchange rate from January 1, 2020 to December 31, 2020, others were re-translated at the exchange rate prevailing
at the end of the financial reporting period.
��

-269-

AI assistant

RT — Annual Report 2020

52043_rns_2021-08-20_535f3269-ebac-4dcc-9e67-2cbad7b18e3d.pdf

REALTEK SEMICONDUCTOR CORP. 2020 Annual Report

Notice to Readers:

Table of Contents

Letter to Shareholders

1. 2020 Operating Results

2. 2021 Business Plan

Company Introduction

I. Date of Establishment

II. Company Milestones

Corporate Governance Report

I. Organization

1. Organizational Structure

2. Responsibilities of Main Departments

Professional Background and Independence of Directors

Compensation Range

3.3 Employee’s Compensation for Officers

2020 / Unit: NT$K

III. Corporate Governance

1. Operation of Board of Directors

Operation of Board of Directors:

3. Operation of Audit Committee

Operation of Audit Committee:

Other disclosures:

3.1 (1) Securities and Exchange Act §14-5 resolutions

11. Internal Control Status

11.1. Statement of internal control

Realtek Semiconductor Corporation Statement of Internal Control System

13.2. Major Resolutions of Board Meetings

IV. Information Regarding Audit Fees

V. Replacement of Independent Auditors

1. Regarding the former CPA

2. Regarding the Successor CPA

VII. Share transfer or share pledge of Directors, Officers and major shareholders holding more than 10% shares from last year to the date of the annual report printed.

1. Changes in shareholding of Directors, Officers and major shareholders

VIII. The relationship between any of the Company’s top ten shareholders:

IX. The consolidated shareholdings and percentage of investments held by the Company, Directors, Officers, and the companies controlled directly or indirectly by the Company.

Capital Raising

I. Source of Capital

II. Structure of Shareholders

III. Distribution of Shareholding

IV. List of Major Shareholders

V. Market price, net worth, earning, and dividends per common share and related information over the last two years

VI. Dividend Policy and Status of Execution

VIII. Employees’ Compensation and Remuneration to Directors

IX. Status of Treasury Stocks: None

X. Status of Corporate Bonds: None

XI. Status of Preferred Stocks: None

XII. Status of GDR

XIII. Status of Employee Stock Warrants: None

Operations Overview

I. Business Overview

1. Business Scope

(2) Percentage of Operating Revenue

(3) Current Products

Communications Network Products:

Computer Peripheral Products:

Multimedia Products:

(4) Products Under Development

Communications Network Products:

Computer Peripheral Products:

Multimedia Products:

2. Industry Overview

Communications Network Products:

Computer Peripheral Products:

Multimedia Products:

3. R&D Development

Communications Network Products:

Computer Peripheral Products:

Multimedia Products:

4. Long-Term and Short-Term Business Development Plan

(1) Short-Term Business Development Plan

II. Marketplace and Production Overview

1. Market Analysis

(2) Market Share

(4) Competitive Strengths

2. Main Applications for Major Products and Production Process

3. Supply Status of Key Raw Materials

RT Annual Report 2020

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