RT - Interim / Quarterly Report 2022

REALTEK SEMICONDUCTOR CORPORATION AND SUBSIDIARIES

CONSOLIDATED FINANCIAL STATEMENTS AND INDEPENDENT AUDITORS’ REVIEW REPORT

SEPTEMBER 30, 2022 AND 2021

(Stock code: 2379)

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INDEPENDENT AUDITORS’ REVIEW REPORT TRANSLATED FROM CHINESE

PWCR220000153

To the Board of Directors and Shareholders of Realtek Semiconductor Corporation

Introduction

We have reviewed the accompanying consolidated balance sheets of Realtek Semiconductor Corporation and subsidiaries as at September 30, 2022 and 2021, and the related consolidated statements of comprehensive income for the three-month and nine-month periods then ended, as well as the consolidated statements of changes in equity and of cash flows for the nine-month periods then ended, and notes to the consolidated financial statements, including a summary of significant accounting policies. Management is responsible for the preparation and fair presentation of these consolidated financial statements in accordance with the “Regulations Governing the Preparation of Financial Reports by Securities Issuers” and International Accounting Standard 34, “Interim Financial Reporting” as endorsed by the Financial Supervisory Commission. Our responsibility is to express a conclusion on these consolidated financial statements based on our reviews.

Scope of review

Except as explained in the following paragraph, we conducted our reviews in accordance with the Statement of Auditing Standards No. 65, “Review of Financial Information Performed by the Independent Auditor of the Entity” in the Republic of China. A review of consolidated financial statements consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Basis for qualified conclusion

As explained in Notes 4(3) and 6(7), the consolidated financial statements of certain insignificant consolidated subsidiaries, investments accounted for under equity method and the information disclosed in Note 13 were based solely on the reports prepared by those subsidiaries and investee companies, which were not reviewed by independent auditors. Total assets of these subsidiaries amounted to NT$7,000,513 thousand and NT$6,251,356 thousand, constituting 5.21% and 6.13% of the consolidated total assets as at September 30, 2022 and 2021, respectively, total liabilities amounted to NT$1,576,349

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thousand and NT$ 1,270,772 thousand, constituting 1.80% and 1.89% of the consolidated total liabilities as at September 30, 2022 and 2021, respectively, and the total comprehensive income (loss) amounted to NT$9,143 thousand, NT$131,835 thousand, NT($449,291) thousand and NT510,772 thousand, constituting 0.11%, 2.55%, (2.19%) and 4.16% of the consolidated total comprehensive income for the three-month and nine-month periods then ended, respectively. Furthermore, the investments accounted for under equity method as at September 30, 2022 and 2021 amounted to NT$176,891 thousand and NT$192,976 thousand, respectively, and the related investment loss were NT$3,222 thousand, NT$1,921 thousand, NT$14,503 thousand and NT$10,514 thousand for the three-month and nine-month periods then ended, respectively.

Qualified conclusion

Except for the adjustments to the consolidated financial statements, if any, as might have been determined to be necessary had the financial statements of certain insignificant consolidated subsidiaries and investments accounted for under equity method been reviewed by independent auditors as described in the Basis for qualified conclusion section above, based on our reviews, nothing has come to our attention that causes us to believe that the accompanying consolidated financial statements do not present fairly, in all material respects, the consolidated financial position of Realtek Semiconductor Corporation and subsidiaries as at September 30, 2022 and 2021, and of its consolidated financial performance for the three-month and nine-month periods then ended and its consolidated cash flows for the nine-month periods then ended in accordance with the “Regulations Governing the Preparation of Financial Reports by Securities Issuers” and International Accounting Standard 34, “Interim Financial Reporting” as endorsed by the Financial Supervisory Commission.

Li, Tien-Yi Cheng, Ya-Huei For and on behalf PricewaterhouseCoopers, Taiwan October 28, 2022

------------------------------------------------------------------------------------------------------------------------------------------------The accompanying consolidated financial statements are not intended to present the financial position and results of operations and cash flows in accordance with accounting principles generally accepted in countries and jurisdictions other than the Republic of China. The standards, procedures and practices in the Republic of China governing the audit of such financial statements may differ from those generally accepted in countries and jurisdictions other than the Republic of China. Accordingly, the accompanying consolidated financial statements and independent auditors’ review are not intended for use by those who are not informed about the accounting principles or auditing standards generally accepted in the Republic of China, and their applications in practice.

As the financial statements are the responsibility of the management, PricewaterhouseCoopers cannot accept any liability for the use of, or reliance on, the English translation or for any errors or misunderstandings that may derive from the translation.

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REALTEK SEMICONDUCTOR CORPORATION AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS SEPTEMBER 30, 2022, DECEMBER 31, 2021 AND SEPTEMBER 30, 2021

(Expressed in thousands of New Taiwan dollars) (The balance sheets as at September 30, 2022 and 2021 are reviewed, not audited)

Assets	Notes	September30,2022 AMOUNT % `$` `8,325,957` `6` `1,624,804` `1` `62,888,582` `47` `13,843,576` `10` `3,853,234` `3` `659,951` `1` `24,936,306` `19` `617,951` `-` `116,750,361` `87` `305,619` `-` `3,069,781` `2` `85,740` `-` `176,891` `-` `7,303,646` `6` `1,578,832` `1` `39,952` `-` `2,506,551` `2` `310,925` `-` `2,307,295` `2` `17,685,232` `13` `$` `134,435,593` `100`	December31,2021 AMOUNT % `$` `7,197,351` `7` `1,952,647` `2` `43,740,876` `43` `12,796,821` `13` `3,192,184` `3` `156,928` `-` `16,548,712` `16` `659,883` `1` `86,245,402` `85` `-` `-` `3,644,878` `4` `80,101` `-` `191,377` `-` `6,302,938` `6` `1,587,910` `2` `41,641` `-` `2,231,694` `2` `171,321` `-` `734,651` `1` `14,986,511` `15` `$` `101,231,913` `100`	September30,2021	September30,2021
		AMOUNT `$` `8,325,957` `1,624,804` `62,888,582` `13,843,576` `3,853,234` `659,951` `24,936,306` `617,951` `116,750,361` `305,619` `3,069,781` `85,740` `176,891` `7,303,646` `1,578,832` `39,952` `2,506,551` `310,925` `2,307,295` `17,685,232` `$` `134,435,593`	AMOUNT `$` `7,197,351` `1,952,647` `43,740,876` `12,796,821` `3,192,184` `156,928` `16,548,712` `659,883` `86,245,402` `-` `3,644,878` `80,101` `191,377` `6,302,938` `1,587,910` `41,641` `2,231,694` `171,321` `734,651` `14,986,511` `$` `101,231,913`	AMOUNT `$` `12,357,936` `589,947` `41,899,597` `13,403,283` `3,229,391` `264,539` `15,515,247` `549,537` `87,809,477` `-` `3,525,581` `79,879` `192,976` `5,594,934` `1,580,531` `42,323` `2,265,012` `162,134` `732,701` `14,176,071` `$` `101,985,548`	%
Current assets 1100 Cash and cash equivalents 1110 Financial assets at fair value through profit or loss - current 1136 Financial assets at amortised cost - current 1170 Accounts receivable, net 1180 Accounts receivable, net - related parties 1200 Other receivables 130X Inventories, net 1410 Prepayments 11XX Total current assets Non-current assets 1510 Financial assets at fair value through profit or loss - non- current 1517 Financial assets at fair value through other comprehensive income - non-current 1535 Financial assets at amortised cost - non-current 1550 Investments accounted for under equity method 1600 Property, plant and equipment 1755 Right-of-use assets 1760 Investment property 1780 Intangible assets 1840 Deferred income tax assets 1900 Other non-current assets 15XX Total non-current assets 1XXX Total assets	6(1) 6(2) 6(4) 6(5) 6(5) and 7 6(6) 6(2) 6(3) 6(4) and 8 6(7) 6(8) 6(9) 6(10) 6(11)				`12` `1` `41` `13` `3` `-` `15` `1`
					`86`
					`-` `3` `-` `-` `6` `2` `-` `2` `-` `1`
					`14`
					`100`

(Continued)

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REALTEK SEMICONDUCTOR CORPORATION AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS SEPTEMBER 30, 2022, DECEMBER 31, 2021 AND SEPTEMBER 30, 2021

(Expressed in thousands of New Taiwan dollars) (The balance sheets as at September 30, 2022 and 2021 are reviewed, not audited)

Liabilities andEquity	Notes	September30,2022 December31,2021 September30,2021 AMOUNT % AMOUNT % AMOUNT % `$` `9,927,317` `8` `$` `13,342,100` `13` `$` `12,907,940` `13` `181,020` `-` `211,100` `-` `215,694` `-` `3,276` `-` `3,276` `-` `3,276` `-` `16,120,928` `12` `11,105,568` `11` `12,413,129` `12` `291,233` `-` `334,413` `-` `364,789` `1` `45,895,179` `34` `24,645,141` `24` `30,511,759` `30` `139,948` `-` `101,253` `-` `103,905` `-` `1,295,717` `1` `1,458,340` `2` `1,259,148` `1` `88,570` `-` `80,315` `-` `77,434` `-` `9,390,442` `7` `7,539,417` `8` `7,109,448` `7` `83,333,630` `62` `58,820,923` `58` `64,966,522` `64` `1,537,407` `1` `1,002,799` `1` `-` `-` `1,293,019` `1` `989,475` `1` `995,764` `1` `241,260` `-` `103,512` `-` `94,779` `-` `1,246,453` `1` `1,252,390` `2` `1,243,707` `1` `146,413` `-` `110,490` `-` `97,080` `-` `4,464,552` `3` `3,458,666` `4` `2,431,330` `2` `87,798,182` `65` `62,279,589` `62` `67,397,852` `66` `5,128,636` `4` `5,106,849` `5` `5,106,849` `5` `1,044,903` `1` `1,101,079` `1` `1,100,864` `1` `7,262,359` `5` `5,577,083` `5` `5,577,083` `6` `1,776,089` `1` `1,556,049` `2` `1,556,049` `2` `26,721,175` `20` `27,377,681` `27` `22,772,213` `22` `4,694,575` `4 (` `1,776,090) (` `2) (` `1,535,026) (` `2)` `46,627,737` `35` `38,942,651` `38` `34,578,032` `34` `9,674` `-` `9,673` `-` `9,664` `-` `46,637,411` `35` `38,952,324` `38` `34,587,696` `34` `$` `134,435,593` `100` `$` `101,231,913` `100` `$` `101,985,548` `100`
		AMOUNT `$` `9,927,317` `181,020` `3,276` `16,120,928` `291,233` `45,895,179` `139,948` `1,295,717` `88,570` `9,390,442` `83,333,630` `1,537,407` `1,293,019` `241,260` `1,246,453` `146,413` `4,464,552` `87,798,182` `5,128,636` `1,044,903` `7,262,359` `1,776,089` `26,721,175` `4,694,575` `46,627,737` `9,674` `46,637,411` `$` `134,435,593`
Current liabilities 2100 Short-term borrowings 2130 Contract liabilities - current 2150 Notes payable 2170 Accounts payable 2180 Accounts payable - related parties 2200 Other payables 2220 Other payables - related parties 2230 Current income tax liabilities 2280 Lease liabilities - current 2300 Other current liabilities 21XX Total current liabilities Non-current liabilities 2540 Long-term borrowings 2550 Provisions - non-current 2570 Deferred income tax liabilities 2580 Lease liabilities - non-current 2600 Other non-current liabilities 25XX Total non-current liabilities 2XXX Total liabilities Equity Share capital 3110 Common shares Capital surplus 3200 Capital surplus Retained earnings 3310 Legal reserve 3320 Special reserve 3350 Undistributed earnings Other equity 3400 Other equity interest 31XX Equity attributable to holders of the parent company 36XX Non-controlling interest 3XXX Total equity Significant contingent liabilities and unrecognized contract commitments 3X2X Total liabilities and equity	6(12) 6(21) 7 6(13) 7 6(21) 6(14) 6(16) 6(17) 6(18) 6(19) 6(20) 9

The accompanying notes are an integral part of these consolidated financial statements.

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REALTEK SEMICONDUCTOR CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

FOR THE THREE-MONTH AND NINE-MONTH PERIODS ENDED SEPTEMBER 30, 2022 AND 2021

(Expressed in thousands of New Taiwan dollars, except earnings per share amount)

(Reviewed, not audited)

				Three-month periods ended September	Three-month periods ended September	Three-month periods ended September	30	Nine-month periods ended September 30	Nine-month periods ended September 30	Nine-month periods ended September 30	Nine-month periods ended September 30
				2022		2021		2022		2021
	Items	Notes		AMOUNT	%	AMOUNT	%	AMOUNT	%	AMOUNT	%
4000	Operating revenue	6(21) and 7		`$ 29,772,018`	`100`	`$ 28,954,850`	`100`	`$ 90,027,673`	`100`	`$ 78,134,679`	`100`
5000	Operating costs	6(6) and 7	`(`	`15,468,231)(`	`52)(`	`13,715,678)(`	`47)(`	`44,892,807)(`	`50)(`	`39,417,341)(`	`51)`
5950	Gross profit			`14,303,787`	`48`	`15,239,172`	`53`	`45,134,866`	`50`	`38,717,338`	`49`
	Operating expenses	6(26)(27) and 7
6100	Selling expenses		`(`	`1,293,284)(`	`4)(`	`1,160,994)(`	`4)(`	`3,848,815)(`	`4)(`	`3,305,249 )(`	`4 )`
6200	General and administrative expenses		`(`	`1,029,026)(`	`3)(`	`1,018,000)(`	`3)(`	`3,129,899)(`	`4)(`	`2,493,861 )(`	`3 )`
6300	Research and development expenses		`(`	`7,947,938)(`	`27)(`	`7,702,477)(`	`27)(`	`24,192,651)(`	`27)(`	`20,264,179 )(`	`26 )`
6450	Expected credit gains (losses)	12(2)		`2,397`	`- (`	`4,558)`	`- (`	`9,789)`	`- (`	`7,168)`	`-`
6000	Total operating expenses		`(`	`10,267,851)(`	`34)(`	`9,886,029)(`	`34)(`	`31,181,154)(`	`35)(`	`26,070,457)(`	`33)`
6900	Operating income			`4,035,936`	`14`	`5,353,143`	`19`	`13,953,712`	`15`	`12,646,881`	`16`
	Non-operating income and expenses
7100	Interest income	6(22)		`361,657`	`1`	`69,555`	`-`	`689,725`	`1`	`248,578`	`-`
7010	Other income	6(23)		`109,395`	`-`	`72,132`	`-`	`217,085`	`-`	`141,367`	`-`
7020	Other gains and losses	6(24)	`(`	`29,994)`	`- (`	`377,797)(`	`1)(`	`41,975)`	`- (`	`192,542 )`	`-`
7050	Finance costs	6(25)	`(`	`83,378)`	`- (`	`22,752)`	`- (`	`136,344)`	`- (`	`73,537 )`	`-`
7060	Share of loss of associates and joint ventures accounted	6(7)
	for under equity method		`(`	`3,222)`	`- (`	`1,921)`	`- (`	`14,503)`	`- (`	`10,514)`	`-`
7000	Total non-operating income and expenses			`354,458`	`1 (`	`260,783)(`	`1)`	`713,988`	`1`	`113,352`	`-`
7900	Profit before income tax, net			`4,390,394`	`15`	`5,092,360`	`18`	`14,667,700`	`16`	`12,760,233`	`16`
7950	Income tax expense	6(28)	`(`	`183,357)(`	`1)(`	`204,490)(`	`1)(`	`597,251)`	`- (`	`512,899)`	`-`
8200	Net income for the period			`$ 4,207,037`	`14`	`$ 4,887,870`	`17`	`$ 14,070,449`	`16`	`$ 12,247,334`	`16`

(Continued)

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REALTEK SEMICONDUCTOR CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

FOR THE THREE-MONTH AND NINE-MONTH PERIODS ENDED SEPTEMBER 30, 2022 AND 2021

(Expressed in thousands of New Taiwan dollars, except earnings per share amount)

(Reviewed, not audited)

Items	Notes	Three-month periods ended September 30 Nine-month periods ended September 30 2022 2021 2022 2021 AMOUNT % AMOUNT % AMOUNT % AMOUNT % `$` `8,148` `-` `$` `294,062` `1 ($` `931,817)(` `1) $` `949,424` `1` `3,803,265` `13 (` `6,361)` `-` `7,402,482` `8 (` `928,401)(` `1)` `$ 3,811,413` `13` `$` `287,701` `1` `$ 6,470,665` `7` `$` `21,023` `-` `$ 8,018,450` `27` `$ 5,175,571` `18` `$ 20,541,114` `23` `$ 12,268,357` `16` `$ 4,207,022` `14` `$ 4,887,852` `17` `$ 14,070,401` `16` `$ 12,247,291` `16` `15` `-` `18` `-` `48` `-` `43` `-` `$ 4,207,037` `14` `$ 4,887,870` `17` `$ 14,070,449` `16` `$ 12,247,334` `16` `$ 8,018,435` `27` `$ 5,175,553` `18` `$ 20,541,066` `23` `$ 12,268,314` `16` `15` `-` `18` `-` `48` `-` `43` `-` `$ 8,018,450` `27` `$ 5,175,571` `18` `$ 20,541,114` `23` `$ 12,268,357` `16` `$` `8.20` `$` `9.57` `$` `27.47` `$` `23.98` `$` `8.13` `$` `9.52` `$` `26.52` `$` `23.57`	Three-month periods ended September 30 Nine-month periods ended September 30 2022 2021 2022 2021 AMOUNT % AMOUNT % AMOUNT % AMOUNT % `$` `8,148` `-` `$` `294,062` `1 ($` `931,817)(` `1) $` `949,424` `1` `3,803,265` `13 (` `6,361)` `-` `7,402,482` `8 (` `928,401)(` `1)` `$ 3,811,413` `13` `$` `287,701` `1` `$ 6,470,665` `7` `$` `21,023` `-` `$ 8,018,450` `27` `$ 5,175,571` `18` `$ 20,541,114` `23` `$ 12,268,357` `16` `$ 4,207,022` `14` `$ 4,887,852` `17` `$ 14,070,401` `16` `$ 12,247,291` `16` `15` `-` `18` `-` `48` `-` `43` `-` `$ 4,207,037` `14` `$ 4,887,870` `17` `$ 14,070,449` `16` `$ 12,247,334` `16` `$ 8,018,435` `27` `$ 5,175,553` `18` `$ 20,541,066` `23` `$ 12,268,314` `16` `15` `-` `18` `-` `48` `-` `43` `-` `$ 8,018,450` `27` `$ 5,175,571` `18` `$ 20,541,114` `23` `$ 12,268,357` `16` `$` `8.20` `$` `9.57` `$` `27.47` `$` `23.98` `$` `8.13` `$` `9.52` `$` `26.52` `$` `23.57`	Three-month periods ended September 30 Nine-month periods ended September 30 2022 2021 2022 2021 AMOUNT % AMOUNT % AMOUNT % AMOUNT % `$` `8,148` `-` `$` `294,062` `1 ($` `931,817)(` `1) $` `949,424` `1` `3,803,265` `13 (` `6,361)` `-` `7,402,482` `8 (` `928,401)(` `1)` `$ 3,811,413` `13` `$` `287,701` `1` `$ 6,470,665` `7` `$` `21,023` `-` `$ 8,018,450` `27` `$ 5,175,571` `18` `$ 20,541,114` `23` `$ 12,268,357` `16` `$ 4,207,022` `14` `$ 4,887,852` `17` `$ 14,070,401` `16` `$ 12,247,291` `16` `15` `-` `18` `-` `48` `-` `43` `-` `$ 4,207,037` `14` `$ 4,887,870` `17` `$ 14,070,449` `16` `$ 12,247,334` `16` `$ 8,018,435` `27` `$ 5,175,553` `18` `$ 20,541,066` `23` `$ 12,268,314` `16` `15` `-` `18` `-` `48` `-` `43` `-` `$ 8,018,450` `27` `$ 5,175,571` `18` `$ 20,541,114` `23` `$ 12,268,357` `16` `$` `8.20` `$` `9.57` `$` `27.47` `$` `23.98` `$` `8.13` `$` `9.52` `$` `26.52` `$` `23.57`
		2022	2021 % AMOUNT `-` `$` `294,062` `13 (` `6,361)` `13` `$` `287,701` `27` `$ 5,175,571` `14` `$ 4,887,852` `-` `18` `14` `$ 4,887,870` `27` `$ 5,175,553` `-` `18` `27` `$ 5,175,571` `8.20` `$` `8.13` `$`	2021
		AMOUNT `$` `8,148` `3,803,265` `$ 3,811,413` `$ 8,018,450` `$ 4,207,022` `15` `$ 4,207,037` `$ 8,018,435` `15` `$ 8,018,450` `$`
Other comprehensive income(loss), net Components of other comprehensive income (loss) that will not be reclassified to profit or loss 8316 Unrealised income (losses) from investments in equity instruments measured at fair value through other comprehensive income Components of other comprehensive income (loss) that will be reclassified to profit or loss 8361 Financial statements translation differences of foreign operations 8300 Other comprehensive income, net 8500 Total comprehensive income for the period Net income attributable to: 8610 Equity holders of the parent company 8620 Non-controlling interest Net income for the period Comprehensive income attributable to: 8710 Equity holders of the parent company 8720 Non-controlling interest Total comprehensive income for the period Earnings per share (in dollars) 9750 Basic earnings per share 9850 Diluted earnings per share	6(20) 6(29) 6(29)
		`$`		`$`

The accompanying notes are an integral part of these consolidated financial statements.

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REALTEK SEMICONDUCTOR CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY FOR THE NINE-MONTH PERIODS ENDED SEPTEMBER 30, 2022 AND 2021 (Expressed in thousands of New Taiwan dollars)

(Reviewed, not audited)

Notes				Equity	attributableto own	er	s of the parentco	mpany	mpany	mpany
	Common shares		Capital surplus		RetainedEarnings			Otherequityinterest				Total
				Legal reserve	Special reserve		Undistributed earnings	Financial statements translation differences of foreign operations		Unrealised gains (losses) from financial assets measured at fair value through other comprehensive income
6(20) 6(19) 6(19) 6(19) 6(19) 6(20) 6(19) 6(19) 6(19) 6(17)(18) 6(19)	`$ 5,106,849` `-` `-` `-` `-` `-` `-` `-` `-` `$ 5,106,849` `$ 5,106,849` `-` `-` `-` `-` `-` `-` `21,787` `-` `-` `$ 5,128,636`	`$ 2,122,008` `-` `-` `-` `-` `-` `(` `1,021,370 )` `-` `226` `$ 1,100,864` `$ 1,101,079` `-` `-` `-` `-` `-` `-` `969,551` `(` `1,025,727 )` `-` `$ 1,044,903`		`$ 5,577,083` `-` `-` `-` `-` `-` `-` `-` `-` `$ 5,577,083` `$ 5,577,083` `-` `-` `-` `1,685,276` `-` `-` `-` `-` `-` `$ 7,262,359`	`$` `217,036` `-` `-` `-` `1,339,013` `-` `-` `-` `-` `$ 1,556,049` `$ 1,556,049` `-` `-` `-` `-` `220,040` `-` `-` `-` `-` `$ 1,776,089`	`$ 17,992,154` `12,247,291` `-` `12,247,291` `(` `1,339,013 )` `(` `6,128,219 )` `-` `-` `-` `$ 22,772,213` `$ 27,377,681` `14,070,401` `-` `14,070,401` `(` `1,685,276 )` `(` `220,040 )` `(` `12,821,591 )` `-` `-` `-` `$ 26,721,175`		`($ 2,940,958 )` `-` `(` `928,401 )` `(` `928,401 )` `-` `-` `-` `-` `-` `($ 3,869,359 )` `($ 4,156,871 )` `-` `7,402,482` `7,402,482` `-` `-` `-` `-` `-` `-` `$ 3,245,611`	`$ 1,384,909` `-` `949,424` `949,424` `-` `-` `-` `-` `-` `$ 2,334,333` `$ 2,380,781` `-` `(` `931,817 )` `(` `931,817 )` `-` `-` `-` `-` `-` `-` `$ 1,448,964`		`$ 29,459,081` `12,247,291` `21,023` `12,268,314` `-` `(` `6,128,219 )` `(` `1,021,370 )` `-` `226` `$ 34,578,032` `$ 38,942,651` `14,070,401` `6,470,665` `20,541,066` `-` `-` `(` `12,821,591 )` `991,338` `(` `1,025,727 )` `-` `$ 46,627,737`		`$` `9,665` `43` `-` `43` `-` `-` `-` `(` `44 )` `-` `$` `9,664` `$` `9,673` `48` `-` `48` `-` `-` `-` `-` `-` `(` `47 )` `$` `9,674`	`$ 29,468,746` `12,247,334` `21,023` `12,268,357` `-` `(` `6,128,219 )` `(` `1,021,370 )` `(` `44 )` `226` `$ 34,587,696` `$ 38,952,324` `14,070,449` `6,470,665` `20,541,114` `-` `-` `(` `12,821,591 )` `991,338` `(` `1,025,727 )` `(` `47 )` `$ 46,637,411`

The accompanying notes are an integral part of these consolidated financial statements.

~8~

REALTEK SEMICONDUCTOR CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS

FOR THE NINE-MONTH PERIODS ENDED SEPTEMBER 30, 2022 AND 2021

(Expressed in thousands of New Taiwan dollars)

(Reviewed, not audited)

CASH FLOWS FROM OPERATING ACTIVITIES
Profit before tax
Adjustments
Adjustments to reconcile profit (loss)
Depreciation

Amortization

Expected credit losses

Interest expense

Interest income

Dividend income

Losses(gains) on financial assets at fair value
through profit or loss

Share of loss of associates and joint ventures
accounted for under equity method

Losses(gains) on disposal of property, plant and
equipment

Gain on disposal of investments

Gains arising from lease modifications

Changes in operating assets and liabilities
Changes in operating assets
Financial assets at fair value through profit or
loss - current
Accounts receivable, net
Accounts receivable, net - related parties
Other receivables
Inventories
Prepayments
Changes in operating liabilities
Contract liabilities - current
Notes payable
Accounts payable
Accounts payable - related parties
Other payables
Other payables - related parties
Other current liabilities
Provisions - non-current
Accrued pension obligations Nine-month periods ended September 30
Notes
2022
2021
$
14,667,700 $
12,760,233
6(26)
854,174
723,153
6(11)(26)
1,200,449
940,652
12(2)
9,789
7,168
6(25)
136,344
73,537
6(22)
(
689,725 ) (
248,578 )
6(23)
(
60,741 ) (
36,563 )
6(2)(24)
206,442 (
36,853 )
6(7)
14,503
10,514
6(24)
2,079 (
74 )
6(24)
- (
26,065 )
6(24)
(
24 )
-
133,026
553,774
(
1,054,348 ) (
2,569,531 )
(
663,246 ) (
417,243 )
(
128,525 ) (
143,894 )
(
8,387,594 ) (
6,892,270 )
41,932 (
22,463 )
(
30,080 ) (
120,560 )
- (
25,377 )
5,015,360
1,793,075
(
43,180 )
24,557
7,833,607
8,441,774
38,695
9,097
1,851,025 (
292,040 )
146,666
-
33,665 (
3,475 )

(Continued)

~9~

REALTEK SEMICONDUCTOR CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS

FOR THE NINE-MONTH PERIODS ENDED SEPTEMBER 30, 2022 AND 2021

(Expressed in thousands of New Taiwan dollars)

(Reviewed, not audited)

Cash inflow generated from operations
Interest received
Dividends received
Interest paid
Income tax paid
Net cash flows from operating activities
CASH FLOWS FROM INVESTING ACTIVITIES
Acquisition of financial assets at fair value
through profit or loss - non-current
Acquisition of financial assets at fair value
through other comprehensive income
Acquisition of financial assets at amortised cost
Proceeds from disposal of financial assets at
amortised cost
Acquisition of investments accounted for under
equity method
Proceeds from disposal of investments accounted
for under equity method
Acquisition of property, plant and equipment

Proceeds from disposal of property, plant and
equipment
Acquisition of intangible assets

Increase in refundable deposits
Increase in other non-current assets
Net cash flows used in investing activities
CASH FLOWS FROM FINANCING ACTIVITIES
Increase in short-term borrowings

Decrease in short-term borrowings

Increase in long-term borrowings

Repayment of principal portion of lease liabilities

(Decrease)increase in guarantee deposits
Net cash flows (used in) from financing
activities
Effect of exchange rate
Net increase in cash and cash equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period Nine-month periods ended September 30
Notes
2022
2021
$
21,127,993 $
14,502,548
315,227
429,364
60,741
36,563
(
137,146 ) (
71,251 )
(
765,398 ) (
334,437 )
20,601,417
14,562,787
(
317,244 )
-
(
112,875 )
-
(
72,855,015 ) (
46,334,639 )
60,525,410
38,930,098
- (
45,000 )
-
110
6(30)
(
1,549,513 ) (
1,712,547 )
347
200
6(30)
(
1,099,864 ) (
960,001 )
(
1,459,438 ) (
684,473 )
(
113,206 )
1,091
(
16,981,398 ) (
10,805,161 )
6(31)
114,359,342
102,053,010
6(31)
(
117,774,125 ) (
100,601,760 )
6(31)
537,050
-
6(31)
(
72,155 ) (
71,758 )
(
184 )
213
(
2,950,072 )
1,379,705
458,659 (
75,755 )
1,128,606
5,061,576
7,197,351
7,296,360
$
8,325,957 $
12,357,936

The accompanying notes are an integral part of these consolidated financial statements.

~10~

REALTEK SEMICONDUCTOR CORPORATION AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

FOR THE NINE-MONTH PERIODS ENDED SEPTEMBER 30, 2022 AND 2021

(Expressed in thousands of New Taiwan dollars, except as otherwise indicated) (REVIEWED, NOT AUDITED)

1. HISTORY AND ORGANISATION

Realtek Semiconductor Corporation (the “Company”) was incorporated as a company limited by shares on October 21, 1987 and commenced commercial operations in March 1988. The Company was based in Hsinchu Science-Based Park since October 28, 1989. The Company and its subsidiaries (collectively referred herein as the “Group”) are engaged in the research, development, design, testing, and sales of ICs and application software for these products.

2. THE DATE OF AUTHORISATION FOR ISSUANCE OF THE CONSOLIDATED FINANCIAL

STATEMENTS AND PROCEDURES FOR AUTHORISATION

These consolidated financial statements were reported to the Board of Directors on October 28, 2022.

3. APPLICATION OF NEW STANDARDS, AMENDMENTS AND INTERPRETATIONS

(1) Effect of the adoption of new issuances of or amendments to International Financial Reporting Standards (“IFRSs”) as endorsed by the Financial Supervisory Commission (“FSC”) New standards, interpretations and amendments endorsed by the FSC effective from 2022 are as follows:

follows:
New Standards,Interpretations and Amendments Amendments to IFRS 3, ‘Reference to the conceptual framework’ 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	Effective date by International Accounting Standards Board
	January 1, 2022 January 1, 2022 January 1, 2022 January 1, 2022

The above standards and interpretations have no significant impact to the Group’s financial condition and financial performance based on the Group’s assessment.

~11~

(2) Effect of new issuances of or amendments to IFRSs as endorsed by the FSC but not yet adopted

by the Group

New standards, interpretations and amendments endorsed by the FSC effective from 2023 are as follows:

follows:
	Effective date by
	International Accounting
New Standards,Interpretations and Amendments	Standards Board
Amendments to IAS 1, ‘Disclosure of accounting policies’	January 1, 2023
Amendments to IAS 8, ‘Definition of accounting estimates’	January 1, 2023
Amendments to IAS 12, ‘Deferred tax related to assets and	January 1, 2023
liabilities arising from a single transaction’

The above standards and interpretations have no significant impact to the Group’s financial condition and financial performance based on the Group’s assessment.

(3) IFRSs issued by IASB but not yet endorsed by the FSC

New standards, interpretations and amendments issued by IASB but not yet included in the IFRSs as endorsed by the FSC are as follows:

==> picture [497 x 48] intentionally omitted <==

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

Effective date by
International Accounting
New Standards, Interpretations and Amendments Standards Board
----- End of picture text -----

New Standards,Interpretations and Amendments	Effective date by International Accounting Standards Board
Amendments to IFRS 10 and IAS 28, ‘Sale or contribution of assets	To be determined by
between an investor and its associate or joint venture’	International Accounting
	Standards Board
Amendments to IFRS 16, ‘Lease liability in a sale and leaseback’	January 1, 2024
IFRS 17, ‘Insurance contracts’	January 1, 2023
Amendments to IFRS 17, 'Insurance contracts'	January 1, 2023
Amendment to IFRS 17, 'Initial application of IFRS 17 and IFRS 9 –	January 1, 2023
comparative information'
Amendments to IAS 1, ‘Classification of liabilities as current	January 1, 2023
or non-current’

The above standards and interpretations have no significant impact to the Group’s financial condition and financial performance based on the Group’s assessment.

4. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The principal accounting policies adopted are consistent with Note 4 in the consolidated financial statements for the year ended December 31, 2021, except for the compliance statement, basis of preparation, basis of consolidation and interim financial statements applied as set out below. These policies have been consistently applied to all the periods presented, unless otherwise stated.

~12~

(1) Compliance statement

A. The consolidated financial statements of the Group have been prepared in accordance with the “Regulations Governing the Preparation of Financial Reports by Securities Issuers” and the International Accounting Standard 34, ‘Interim financial reporting’ as endorsed by the FSC.
B. These consolidated financial statements are to be read in conjunction with the consolidated financial statements for the year ended December 31, 2021.

(2) Basis of preparation

A. Except for the following items, the consolidated financial statements have been prepared under the historical cost convention:
(a) Financial assets (including derivative instruments) at fair value through profit or loss.
(b) Financial assets at fair value through other comprehensive income.
(c) Defined benefit liabilities recognized based on the net amount of pension fund assets less present value of defined benefit obligation.
B. The preparation of financial statements in conformity with International Financial Reporting Standards, International Accounting Standards, IFRIC Interpretations, and SIC Interpretations as endorsed by the FSC (collectively referred herein as the “IFRSs”) requires the use of certain critical accounting estimates. It also requires management to exercise its judgement in the process of applying the Group’s accounting policies. The areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates are significant to the consolidated financial statements are disclosed in Note 5.

(3) Basis of consolidation

A. Basis for preparation of consolidated financial statements:
Basis for preparation of consolidated financial statements is consistent with the 2021 consolidated financial statements.
B. Subsidiaries included in the consolidated financial statements:

Name of investor	Name of subsidiary	Main business activities	Ownership (%)	Ownership (%)	Ownership (%)	Description
			September 30,2022	December 31,2021	September 30,2021
Realtek Semiconductor Corporation Realtek Semiconductor Corporation	Leading Enterprises Limited Amber Universal Inc.	Investment holdings 〃	100% 100%	100% 100%	100% 100%

~13~

Ownership (%)

Name of investor	Name of subsidiary	Main business activities	September 30,2022	December 31,2021	September 30,2021	Description
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 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 Corporation Bobitag Inc.	ICs manufacturing, design, research, development, sales, and marketing 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	100% 100% 100% 100% 100% 100% 100% 100% 67%	100% 100% 100% 100% 100% 100% 100% 100% 67%	100% 100% 100% 100% 100% 100% 100% 100% 67%	Note 3 Note 3 Note 3 Note 3 Note 3

~14~

Name of investor	Name of subsidiary	Main business activities	Ownership (%)	Ownership (%)	Ownership (%)	Description Notes 1 and 4 Note 3 Note 3 Note 3 Note 3 Note 3 Note 3 Note 3 Note 3 Note 3 Note 3
			September 30,2022	December 31,2021	September 30,2021
Realtek Semiconductor Corporation Leading Enterprises Limited Leading Enterprises Limited Amber Universal Inc. 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	AICONNX Technology Corporation Realtek Semiconductor (Japan) Corp. Circon Universal Inc. Realtek Semiconductor (Hong Kong) Limited 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.	ICs manufacturing, design, research, development, sales, and marketing Information collection and technical support Investment holdings Information services and technical support R&D and technical support 〃〃〃〃〃 Investment holdings	100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100%	100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100%	- 100% 100% 100% 100% 100% 100% 100% 100% 100% 100%

~15~

Ownership (%)

Name of investor	Name of subsidiary	Main business activities	September 30,2022	December 31,2021	September 30,2021	Description Note 3 Note 3 Note 3 Note 3 Note 3 Note 3 Notes 2 and 4
					2021. 100% 19% 81% 80% 20% 100% -

~16~

Note 3: The financial statements of the entity as at and for the nine-month periods ended September 30, 2022 and 2021 were not reviewed by the independent auditors as the entity did not meet the definition of a significant subsidiary.
Note 4: The financial statements of the entity as at and for the nine-month period ended September 30, 2022 were not reviewed by the independent auditors as the entity did not meet the definition of a significant subsidiary.
C. Subsidiaries not included in the consolidated financial statements: None.
D. Adjustments for subsidiaries with different balance sheet dates: None.
E. Significant restrictions: None.
F. Subsidiaries that have non-controlling interests that are material to the Group: None.

(4) Employee benefits

Pensions - Defined benefit plan

Pension cost for the interim period is calculated on a year-to-date basis by using the pension cost rate derived from the actuarial valuation at the end of the prior financial year, adjusted for significant market fluctuations since that time and for significant curtailments, settlements, or other significant one-off events. And, the related information is disclosed accordingly.

(5) Income tax

A. The interim period income tax expense is recognized based on the estimated average annual effective income tax rate expected for the full financial year applied to the pretax income of the interim period, and the related information is disclosed accordingly.
B. If a change in tax rate is enacted or substantively enacted in an interim period, the Group recognizes the effect of the change immediately in the interim period in which the change occurs. The effect of the change on items recognized outside profit or loss is recognized in other comprehensive income or equity while the effect of the change on items recognized in profit or loss is recognized in profit or loss.

5. CRITICAL ACCOUNTING JUDGEMENTS, ESTIMATES AND KEY SOURCES OF

ASSUMPTION UNCERTAINTY

There have been no significant changes as at September 30, 2022. Please refer to Note 5 in the consolidated financial statements for the year ended December 31, 2021.

6. DETAILS OF SIGNIFICANT ACCOUNTS

(1) Cash and cash equivalents

Cash and cash equivalents
Cash on hand and revolving funds Checking accounts and demand deposits Time deposits	September 30,2022 953 $ 6,913,223 1,411,781 8,325,957 $	December 31,2021 910 $ 7,113,048 83,393 7,197,351 $	September 30,2021
			998 $ 10,982,754 1,374,184
			12,357,936 $

~17~

The Group transacts with a variety of financial institutions all with high credit quality to disperse credit risk, so it expects that the probability of counterparty default is remote.

(2) Financial assets at fair value through profit or loss

September 30, 2022 December 31, 2021 September 30, 2021

Current items: Financial assets mandatorily measured at fair value through profit or loss Listed stocks Beneficiary certificates Non-current items: Financial assets mandatorily measured at fair value through profit or loss Beneficiary certificates	148,709 $ 358,892 $ 309,380 $ 1,476,095 1,593,755 280,567 1,624,804 1,952,647 589,947 305,619 $ - $ - $ 1,930,423 $ 1,952,647 $ 589,947 $

A. Amounts recognized in profit or loss in relation to financial assets at fair value through profit or loss are listed below:

loss are listed below:
		For the three-month		For the three-month
			period ended		period ended
		September 30,2022		September 30,2021
Financial assets mandatorily measured at fair
value through profit or loss
Equity instruments	($		28,604)	($	212,334)
Beneficiary certificates	(		5,723)		2,870
	($		34,327)	($	209,464)
			For the nine-month		For the nine-month
			period ended		period ended
		September 30,2022		September 30,2021
Financial assets mandatorily measured at fair
value through profit or loss
Equity instruments	($		210,182)	$	27,027
Beneficiary certificates			3,740		9,826
	($		206,442)	$	36,853

B. The Group has no financial assets at fair value through profit or loss pledged to others.

~18~

(3) Financial assets at fair value through other comprehensive income

Items Non-current items: Equity instruments Listed stocks Emerging stocks Unlisted stocks	September 30,2022 562,184 $ 27,404 2,480,193 3,069,781 $	December 31,2021 788,460 $ 36,046 2,820,372 3,644,878 $	September 30,2021 692,907 $ 34,679 2,797,995
			3,525,581 $

A. The Group has elected to classify equity instruments investments that are considered to be strategic investments as financial assets at fair value through other comprehensive income. The fair value of such investments amounted to $3,069,781, $3,644,878, and $3,525,581 on September 30, 2022, December 31, 2021, and September 30, 2021, respectively.
B. Amounts recognized in other comprehensive income in relation to the financial assets at fair value through other comprehensive income are listed below:

For the three-month For the three-month period ended period ended September 30, 2022 September 30, 2021 Equity instruments at fair value through other comprehensive income Fair value change recognised in other comprehensive income $ 8,148 $ 294,062 For the nine-month For the nine-month period ended period ended September 30, 2022 September 30, 2021 Equity instruments at fair value through other comprehensive income Fair value change recognised in other comprehensive income ($ 931,817) $ 949,424

C. The Group has no financial assets at fair value through other comprehensive income pledged to others.

(4) Financial assets at amortized cost

others. Financial assets at amortized cost
Items Current items: Time deposits Non-current items: Time deposits	September 30,2022 62,888,582 $ 85,740 $	December 31,2021 43,740,876 $ 80,101 $	September 30,2021
			41,899,597 $
			79,879 $

A. Details of the Group’s financial assets at amortized cost pledged to others as collateral are provided in Note 8.

~19~

B. The counterparties of the Group’s investments in time deposits were financial institutions who have good credit quality, so it expects that the probability of counterparty default is remote.

(5) Accounts receivable

Accountsreceivable
	September 30,2022		December 31, 2021		September 30, 2021
Accounts receivable	$	13,931,517	$	12,877,169	$	13,487,268
Accounts receivable
- related parties		3,873,792		3,210,546		3,247,934
Less: Allowance for bad debts	(	108,499)	(	98,710)	(	102,528)
	$	17,696,810	$	15,989,005	$	16,632,674
A. The aging analysis of accounts	receivable	is as follows:
	September 30, 2022		December 31, 2021		September 30,2021
Not past due	$	17,480,575	$	15,874,298	$	16,396,032
Up to 30 days		324,698		210,889		338,709
31 to 90 days		-		2,067		-
Over 90 days		36		461		461
	$	17,805,309	$	16,087,715	$	16,735,202

The above aging analysis is based on past due date.

B. As at September 30, 2022, December 31, 2021 and September 30, 2021, accounts receivable were all from contracts with customers. And as at January 1, 2021, the balance of receivables from contracts with customers amounted to $13,748,428.
C. The Group has no accounts receivable pledged to others.
D. Information relating to credit risk of accounts receivable is provided in Note 12(2).

(6) Inventories

Inventories
Raw materials Work in process Finished goods Raw materials Work in process Finished goods		September 30,2022
	Allowance for obsolescence and Cost market value decline 3,394,672 $ 19,608) ($ 13,645,173 1,568,511) ( 10,565,572 1,080,992) ( 27,605,417 $ 2,669,111) ($ December 31,2021		Book value
			3,375,064 $ 12,076,662 9,484,580
			24,936,306 $

	Allowance for obsolescence and Cost market value decline 1,181,719 $ 7,322) ($ 8,666,087 623,852) ( 7,815,457 483,377) ( 17,663,263 $ 1,114,551) ($		Book value
			1,174,397 $ 8,042,235 7,332,080
			16,548,712 $

~20~

				September 30,2021	September 30,2021
					Allowance for
					obsolescence and
		Cost		market value decline			Book value
Raw materials	$	896,697	($		7,983)	$	888,714
Work in process		9,881,150	(		488,108)		9,393,042
Finished goods		5,651,229	(		417,738)		5,233,491
	$	16,429,076	($		913,829)	$	15,515,247

Operating costs incurred on inventories for the three-month and nine-month periods ended September 30, 2022 and 2021 were as follows:

	Operating costs incurred on inventories for the three-month and nine-month periods ended September 30, 2022 and 2021 were as follows:
(7)	Investments accounted for under equity method For the three-month period ended For the three-month period ended September 30,2022 September 30, 2021 Cost of inventories sold and others 15,282,466 $ 13,765,891 $ Inventory loss on (gain on reversal of) decline in market value, obsolete and slow-moving inventories 154,490 186,944) ( Loss on scrap inventory 31,275 136,731 15,468,231 $ 13,715,678 $ For the nine-month period ended For the nine-month period ended September 30, 2022 September 30,2021 Cost of inventories sold and others 43,296,530 $ 39,368,209 $ Inventory loss on (gain on reversal of) decline in market value, obsolete and slow-moving inventories 1,473,402 232,494) ( Loss on scrap inventory 122,875 281,626 44,892,807 $ 39,417,341 $ September30,2022 December31,2021 September30,2021 Estinet Technologies Incorporation 2,600 $ 5,081 $ 6,142 $ Innorich Venture Capital Corp. 137,411 142,619 141,787 Starmems Semiconductor Corp. 36,880 43,677 45,047 176,891 $ 191,377 $ 192,976 $
	Estinet Technologies Incorporation Innorich Venture Capital Corp. Starmems Semiconductor Corp.

Operating costs incurred on inventories for the three-month and nine-month periods ended September
30, 2022 and 2021 were as follows:

(7)

Investments accounted for under equity method
For the three-month
period ended
For the three-month
period ended
September 30,2022
September 30, 2021
Cost of inventories sold and others
15,282,466
$ 13,765,891
$ Inventory loss on (gain on reversal of) decline
in market value, obsolete and slow-moving
inventories
154,490
186,944)
(
Loss on scrap inventory
31,275
136,731
15,468,231
$ 13,715,678
$
For the nine-month
period ended
For the nine-month
period ended
September 30, 2022
September 30,2021
Cost of inventories sold and others
43,296,530
$ 39,368,209
$ Inventory loss on (gain on reversal of) decline
in market value, obsolete and slow-moving
inventories
1,473,402
232,494)
(
Loss on scrap inventory
122,875
281,626
44,892,807
$ 39,417,341
$ September30,2022
December31,2021
September30,2021
Estinet Technologies Incorporation
2,600
$ 5,081
$ 6,142
$ Innorich Venture Capital Corp.
137,411
142,619
141,787
Starmems Semiconductor Corp.
36,880
43,677
45,047
176,891
$
191,377
$ 192,976
$

Estinet Technologies Incorporation
Innorich Venture Capital Corp.
Starmems Semiconductor Corp.

A. The loss on investments accounted for under equity method amounted to $3,222, $1,921, $14,503, and $10,514 for the three-month and nine-month periods ended September 30, 2022 and 2021, respectively.

B. Starmems Semiconductor Corp. was incorporated in April 2021. The Group’s investment in the investee amounted to $45,000.

~21~

(8) Property, plant and equipment

At January 1, 2022 Cost Accumulated depreciation and impairment 2022 At January 1 Additions Disposals Reclassifications Depreciation Net exchange difference At September 30 At September 30, 2022 Cost Accumulated depreciation and impairment At January 1, 2021 Cost Accumulated depreciation and impairment 2021 At January 1 Additions Disposals Reclassifications Depreciation Net exchange difference At September 30 At September 30, 2021 Cost Accumulated depreciation and impairment	Land Buildings Machinery Test equipment Office equipment Others Total 489,370 $ 3,466,696 $ 4,185,792 $ 3,926,851 $ 492,603 $ 2,477,232 $ 15,038,544 $ - 1,517,259) ( 3,546,371) ( 2,638,725) ( 255,610) ( 777,641) ( 8,735,606) ( 489,370 $ 1,949,437 $ 639,421 $ 1,288,126 $ 236,993 $ 1,699,591 $ 6,302,938 $ 489,370 $ 1,949,437 $ 639,421 $ 1,288,126 $ 236,993 $ 1,699,591 $ 6,302,938 $ - - 227,396 631,396 37,195 838,426 1,734,413 - 3) ( - 2,365) ( 58) ( - 2,426) ( - - - 4,264 - 4,264) ( - - 108,421) ( 120,907) ( 405,052) ( 46,793) ( 87,009) ( 768,182) ( - 34,892 1,787) ( 3,860 1,808 1,870) ( 36,903 489,370 $ 1,875,905 $ 744,123 $ 1,520,229 $ 229,145 $ 2,444,874 $ 7,303,646 $ 489,370 $ 3,486,304 $ 4,413,125 $ 4,555,126 $ 530,556 $ 3,315,655 $ 16,790,136 $ - 1,610,399) ( 3,669,002) ( 3,034,897) ( 301,411) ( 870,781) ( 9,486,490) ( 489,370 $ 1,875,905 $ 744,123 $ 1,520,229 $ 229,145 $ 2,444,874 $ 7,303,646 $ Land Buildings Machinery Test equipment Office equipment Others Total 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 $ 387,280 $ 2,000,782 $ 409,057 $ 1,095,221 $ 125,593 $ 430,599 $ 4,448,532 $ - 14,108 259,260 428,218 149,103 930,791 1,781,480 - - - 2) ( 124) ( - 126) ( 102,090 42,767 - - - 144,857) ( - - 83,407) ( 85,653) ( 356,601) ( 34,692) ( 71,193) ( 631,546) ( - 1,178) ( 1,899) ( 162) ( 294) ( 127 3,406) ( 489,370 $ 1,973,072 $ 580,765 $ 1,166,674 $ 239,586 $ 1,145,467 $ 5,594,934 $ 489,370 $ 3,464,075 $ 4,095,313 $ 3,711,431 $ 480,619 $ 1,897,312 $ 14,138,120 $ - 1,491,003) ( 3,514,548) ( 2,544,757) ( 241,033) ( 751,845) ( 8,543,186) ( 489,370 $ 1,973,072 $ 580,765 $ 1,166,674 $ 239,586 $ 1,145,467 $ 5,594,934 $	Land Buildings Machinery Test equipment Office equipment Others Total 489,370 $ 3,466,696 $ 4,185,792 $ 3,926,851 $ 492,603 $ 2,477,232 $ 15,038,544 $ - 1,517,259) ( 3,546,371) ( 2,638,725) ( 255,610) ( 777,641) ( 8,735,606) ( 489,370 $ 1,949,437 $ 639,421 $ 1,288,126 $ 236,993 $ 1,699,591 $ 6,302,938 $ 489,370 $ 1,949,437 $ 639,421 $ 1,288,126 $ 236,993 $ 1,699,591 $ 6,302,938 $ - - 227,396 631,396 37,195 838,426 1,734,413 - 3) ( - 2,365) ( 58) ( - 2,426) ( - - - 4,264 - 4,264) ( - - 108,421) ( 120,907) ( 405,052) ( 46,793) ( 87,009) ( 768,182) ( - 34,892 1,787) ( 3,860 1,808 1,870) ( 36,903 489,370 $ 1,875,905 $ 744,123 $ 1,520,229 $ 229,145 $ 2,444,874 $ 7,303,646 $ 489,370 $ 3,486,304 $ 4,413,125 $ 4,555,126 $ 530,556 $ 3,315,655 $ 16,790,136 $ - 1,610,399) ( 3,669,002) ( 3,034,897) ( 301,411) ( 870,781) ( 9,486,490) ( 489,370 $ 1,875,905 $ 744,123 $ 1,520,229 $ 229,145 $ 2,444,874 $ 7,303,646 $ Land Buildings Machinery Test equipment Office equipment Others Total 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 $ 387,280 $ 2,000,782 $ 409,057 $ 1,095,221 $ 125,593 $ 430,599 $ 4,448,532 $ - 14,108 259,260 428,218 149,103 930,791 1,781,480 - - - 2) ( 124) ( - 126) ( 102,090 42,767 - - - 144,857) ( - - 83,407) ( 85,653) ( 356,601) ( 34,692) ( 71,193) ( 631,546) ( - 1,178) ( 1,899) ( 162) ( 294) ( 127 3,406) ( 489,370 $ 1,973,072 $ 580,765 $ 1,166,674 $ 239,586 $ 1,145,467 $ 5,594,934 $ 489,370 $ 3,464,075 $ 4,095,313 $ 3,711,431 $ 480,619 $ 1,897,312 $ 14,138,120 $ - 1,491,003) ( 3,514,548) ( 2,544,757) ( 241,033) ( 751,845) ( 8,543,186) ( 489,370 $ 1,973,072 $ 580,765 $ 1,166,674 $ 239,586 $ 1,145,467 $ 5,594,934 $
		5,594,934 $

A. There was no capitalization of borrowing costs attributable to the property, plant and equipment.

B. The Group has no property, plant and equipment pledged to others.

~22~

`－` (9) Leasing arrangements lessee

A. The Group leases various assets including land, buildings and transportation equipment. Lease terms are negotiated on an individual basis and contain a wide range of different terms and conditions. The lease agreements do not impose covenants, but leased assets may not be used as security for borrowing purposes.
B. The carrying amount of right-of-use assets and the depreciation are as follows:

September 30, 2022 December 31,2021 September 30,2021 1,361,426 $ 1,370,790 $ 1,377,501 $ 216,808 215,177 200,638 598 1,943 2,392 1,578,832 $ 1,587,910 $ 1,580,531 $ Carryingamount For the three-month period ended For the three-month period ended September 30,2022 September 30, 2021 6,906 $ 6,842 $ 22,754 27,710 448 449 30,108 $ 35,001 $ For the nine-month period ended For the nine-month period ended September 30, 2022 September 30,2021 21,249 $ 20,531 $ 60,452 66,988 1,345 1,196 83,046 $ 88,715 $ Depreciation Depreciation	December 31,2021 1,370,790 $ 215,177 1,943 1,587,910 $ Carryingamount Depreciation	September 30,2021
		1,377,501 $ 200,638 2,392
		1,580,531 $

For the three-month period ended For the three-month period ended September 30,2022 September 30, 2021 6,906 $ 6,842 $ 22,754 27,710 448 449 30,108 $ 35,001 $ For the nine-month period ended For the nine-month period ended September 30, 2022 September 30,2021 21,249 $ 20,531 $ 60,452 66,988 1,345 1,196 83,046 $ 88,715 $ Depreciation	For the three-month period ended September 30, 2021
	6,842 $ 27,710 449
	35,001 $
	20,531 $ 66,988 1,196
	88,715 $

C. For the three-month and nine-month periods ended September 30, 2022 and 2021, the additions to right-of-use assets were $2,064, $19,647, $68,618, and $23,235, respectively.
D. The information on profit and loss accounts relating to lease contracts is as follows:

Items affecting profit or loss Interest expense on lease liabilities	For the three-month period ended September 30,2022 6,629 $	For the three-month period ended September 30,2021
		5,529 $

~23~

	For the nine-month	For the nine-month
	period ended	period ended
	September 30,2022	September 30,2021
Items affecting profit or loss
Interest expense on lease liabilities	21,196 $	19,649 $
E. For the three-month and nine-month periods ended September 30, 2022 and 2021, the Group’s
total cash outflow for leases were $36,853, $31,053, $93,351 and $91,407, respectively.
(10)Investment property

Investment property
		Buildings
		2022		2021
At January 1
Cost	$	81,152	$	81,499
Accumulated depreciation and impairment	(	39,511)	(	35,809)
	$	41,641	$	45,690
At January 1	$	41,641	$	45,690
Depreciation	(	2,946)	(	2,892)
Net exchange difference		1,257	(	475)
At September 30	$	39,952	$	42,323
At September 30
Cost	$	83,668	$	80,615
Accumulated depreciation and impairment	(	43,716)	(	38,292)
	$	39,952	$	42,323
A.Rental income from the lease of the investment	property and direct operating			expenses arising
from the investment property are shown below:
	For	the three-month	For	the three-month
		period ended		period ended
	September 30,2022		September 30,2021
Rental income from the lease of the investment
property	$	569	$	552
Operating expenses arising from the
investment property that generated rental
income during the period	$	985	$	957

~24~

		For the nine-month		For the nine-month
		period ended		period ended
	September 30, 2022		September 30,2021
Rental income from the lease of the investment
property	$	1,708	$	1,671
Operating expenses arising from the
investment property that generated rental
income during the period	$	2,946	$	2,892

B. The Group’s investment property is located in Mainland China. The fair value is based on valuation information from Information Centre of Real Estate in local governments in Mainland China and is adjusted and classified as level 3 accordingly. As at September 30, 2022, December 31, 2021 and September 30, 2021, the fair value was $134,487, $130,525, and $130,411, respectively.

(11) Intangible assets

Intangible assets
		Computer		Intellectual
		software		property		Goodwill		Others		Total
At January 1, 2022
Cost	$	5,639,381	$	5,805,930	$	639,561	$	281,520	$	12,366,392
Accumulated amortisation
and impairment	(	4,737,026)	(	4,517,428)	(	639,561)	(	240,683)	(	10,134,698)
	$	902,355	$	1,288,502	$	-	$	40,837	$	2,231,694
2022
At January 1	$	902,355	$	1,288,502	$	-	$	40,837	$	2,231,694
Additions		1,406,498		38,402		-		31,270		1,476,170
Amortisation	(	715,768)	(	468,510)		-	(	16,171)	(	1,200,449)
Net exchange difference		421	(	3,680)		-		2,395	(	864)
At September 30	$	1,593,506	$	854,714	$	-	$	58,331	$	2,506,551
At September 30, 2022
Cost	$	7,047,842	$	5,850,280	$	639,561	$	351,743	$	13,889,426
Accumulated amortisation
and impairment	(	5,454,336)	(	4,995,566)	(	639,561)	(	293,412)	(	11,382,875)
	$	1,593,506	$	854,714	$	-	$	58,331	$	2,506,551

~25~

==> picture [490 x 244] intentionally omitted <==

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

Computer Intellectual
software property Goodwill Others Total
At January 1, 2021
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
2021
At January 1 $ 1,100,269 $ 918,688 $ - $ 48,367 $ 2,067,324
Additions 337,027 793,333 - 13,320 1,143,680
Amortisation ( 549,612) ( 375,565) - ( 15,475) ( 940,652)
-
Net exchange difference ( 119) ( 4,273) ( 948) ( 5,340)
At September 30 $ 887,565 $ 1,332,183 $ - $ 45,264 $ 2,265,012
At September 30, 2021
Cost $ 5,424,746 $ 5,691,665 $ 639,561 $ 282,356 $ 12,038,328
Accumulated amortisation
and impairment ( 4,537,181) ( 4,359,482) ( 639,561) ( 237,092) ( 9,773,316)
$ 887,565 $ 1,332,183 $ - $ 45,264 $ 2,265,012
----- End of picture text -----

Details of amortization on intangible assets are as follows:

September 30,2022	For the three-month period ended September30,2022 692 $ 407,275 407,967 $ For the nine-month period ended September30,2022 1,412 $ 1,199,037 1,200,449 $ Interest rate range 0.89%~3.64% Interest rate range 0.42%~0.57% Interest rate range 0.43%~0.55%	For the three-month period ended September30,2021 273 $ 349,234 349,507 $ For the nine-month period ended September30,2021 1,030 $ 939,622 940,652 $ Collateral None Collateral None Collateral None	For the three-month period ended September30,2021 273 $ 349,234 349,507 $ For the nine-month period ended September30,2021 1,030 $ 939,622 940,652 $ Collateral None Collateral None Collateral None
		$
		$

9,927,317 $	0.89%~3.64% Interest rate range		None Collateral
December 31,2021
13,342,100 $	0.42%~0.57% Interest rate range		None Collateral
September 30,2021
12,907,940 $	0.43%~0.55%		None

(12) Short-term borrowings

~26~

Interest expense of bank borrowings recognized in profit or loss amounted to $76,749, $17,223, $115,148 and $53,888 for the three-month and nine-month periods ended September 30, 2022 and 2021, respectively.

(13) Other payables

September 30,2022 Accrued salaries and bonus 12,541,103 $ Payable for dividends and cash from capital surplus 13,847,318 Payable for employees' compensation 14,244,330 Other accrued expenses 2,585,284 Payables on equipment 468,696 Payables on software and intellectual property 1,822,236 Others 386,212 45,895,179 $	December 31,2021 September 30,2021 9,641,868 $ 9,639,175 $ - 7,149,589 11,117,412 9,739,759 1,927,958 2,225,148 283,796 127,892 1,445,930 1,336,270 228,177 293,926 24,645,141 $ 30,511,759 $

- (14) Long term borrowings

Type of borrowings Borrowing period Repayment term Interest rate range Collateral September 30, 2022 Loan for Accelerated Repayable in 2021/11/8 Investment by Domestic instalment over 0.675% ～ 0.875% None $ 1,537,407 ~2027/2/15 Corporations (Note) the agreed period Type of borrowings Borrowing period Repayment term Interest rate range Collateral December 31, 2021 Loan for Accelerated Repayable in 2021/11/8 Investment by Domestic instalment over 0.30% None $ 1,002,799 ~2026/12/15 Corporations (Note) the agreed period

There were no such transactions as at September 30, 2021.

Note: The Ministry of Economic Affairs implemented the “Action Plan for Accelerated Investment by Domestic Corporations” on July 1, 2019. An entity can apply for a subsidized loan for an eligible investment project from financial institutions at a preferential interest rate. The Group is qualified for the loan as approved by the Ministry of Economic Affairs and entered into a loan contract with a financial institution with a credit period of 5 years. The loan is used for construction of plant and related facilities.

(15) Pension

A. (a) The Company has a defined benefit pension plan in accordance with the Labor Standards Law, covering all regular employees’ service years prior to the enforcement of the Labor Pension Act on July 1, 2005 and service years thereafter of employees who chose to continue to be subject to the pension mechanism under the Law. Under the defined benefit pension plan, two units are accrued for each year of service for the first 15 years and one unit for each additional year thereafter, subject to a maximum of 45 units. Pension benefits are based on

~27~

the number of units accrued and the average monthly salaries and wages of the last 6 months prior to retirement. The Company contributes monthly an amount equal to 2% of the employees’ monthly salaries and wages to the retirement fund deposited with Bank of Taiwan, the trustee, under the name of the independent retirement fund committee. Also, the Company would assess the balance in the aforementioned labor pension reserve account by December 31, every year. If the account balance is insufficient to pay the pension calculated by the aforementioned method to the employees expected to qualify for retirement in the following year, the Company will make contributions for the deficit by next March.

(b) The pension costs under the defined benefit pension plans of the Company for the threemonth and nine-month periods ended September 30, 2022 and 2021 were $504, $343, $1,513 and $1,029, respectively.
(c) Expected contributions to the defined benefit pension plans of the Company for the year ending December 31, 2022 amount to $6,000.
B. (a) Effective July 1, 2005, the Company and domestic subsidiaries have established a defined contribution pension plan (the “New Plan”) under the Labor Pension Act (the “Act”), covering all regular employees with R.O.C. nationality. Under the New Plan, the Company and its domestic subsidiaries contribute monthly an amount based on 6% of the employees’ monthly salaries and wages to the employees’ individual pension accounts at the Bureau of Labor Insurance. The benefits accrued are paid monthly or in lump sum upon termination of employment.
(b) The Company’s mainland China subsidiaries, Realsil Microelectronics Corp., Realtek Semiconductor (Shen Zhen) Corp., Cortina Network Systems (Shanghai) Co., Ltd., RayMX Microelectronics Corp. and Suzhou PanKore Integrated Circuit Technology Co. Ltd. have a defined contribution plan. Monthly contributions to an independent fund administered by the government in accordance with the pension regulations in the People’s Republic of China (PRC) are based on certain percentage of employees’ monthly salaries and wages. Monthly contributions to an independent fund are administered by the government. Other than the monthly contributions, the Group has no further obligations.
(c) The pension costs under the defined contribution pension plans of the Group for the threemonth and nine-month periods ended September 30, 2022 and 2021 were $98,501, $83,935, $292,626 and $244,443, respectively.

~28~

(16) Provision

At January 1 Increase in provision Effect of exchange rate At September 30	2022 2021 989,475 $ 1,018,706 $ 146,666 - 156,878 22,942) ( 1,293,019 $ 995,764 $

As at September 30, 2022, provisions were estimated for potential infringement litigations.

(17) Share capital

A. As at September 30, 2022, the Company’s authority capital was $8,900,000, consisting of 890 million shares of common stock (including 80 million shares reserved for employee stock options), and the paid-in capital was $5,128,636 with a par value of $10 (in dollars) per share. All proceeds from shares issued have been collected.

Movements in the number (thousands of shares) of the Company's common shares outstanding are as follows:

outstanding are as follows:
At January 1 Employees’ compensation transferred to common shares At September 30	2022 510,684 2,179 512,863	2021
		510,684 -
		510,684

B. On March 18, 2022, the Company’s Board of Directors resolved to distribute employees’ compensation in the form of stocks amounting to $991,338. The Company issued 2,179 thousand shares based on the closing price of the Company’s share at the previous day of the Board meeting resolution at 455 NT dollar, which was approved by the competent authority, and the record date of issuance of new shares was March 30, 2022. The registration for the distribution of employees’ compensation was completed on April 13, 2022.
C. On January 24, 2002, the Company increased its new common stock and sold its old common stock by issuing 13,924 thousand units of GDRs for cash. Each GDR unit represents 4 common stocks, so the total common stocks issued were 55,694 thousand shares. The Company’s GDRs are traded in the Luxembourg Stock Exchange. As at September 30, 2022, the outstanding GDRs were 401 thousand units, or 1,603 thousand shares of common stock, representing 0.31% of the Company’s total common stocks.

(18) Capital surplus

Pursuant to the R.O.C. Company Act, capital surplus arising from paid-in capital in excess of par value on issuance of common stocks and donations can be used to cover accumulated deficit or to issue new stocks or cash to shareholders in proportion to their share ownership, provided that the Company has no accumulated deficit. Further, the R.O.C. Securities and Exchange Act requires that the amount of capital surplus to be capitalized mentioned above should not exceed 10% of the paid-in capital each year. Capital surplus should not be used to cover accumulated

~29~

deficit unless the legal reserve is insufficient.

deficit unless the legal reserve is insufficient.
Share premium At January 1 1,039,006 $ Employees’ compensation transferred to common shares 969,551 Cash from capital surplus 1,025,727) ( At September 30 982,830 $ Share premium At January 1 2,060,376 $ Cash from capital surplus 1,021,370) ( Changes in equity of associates accounted for under equity method - At September 30 1,039,006 $	2022
	Change in equity of associates accounted for under equitymethod 61,261 $ - - 61,261 $ 2021
		$
		$

	Change in equity of associates accounted for under equitymethod

(19) Retained earnings

A. Under the Company’s Articles of Incorporation, the current year’s earnings, if any, shall first be used to pay all taxes and offset prior years’ operating losses and then 10% of the remaining amount shall be set aside as legal reserve, if legal reserve has accumulated to an amount equal to the paid-in capital, then legal reserve is not required to be set aside any more. After that, special reserve shall be set aside or reversed in accordance with the related laws or the regulations made by the Competent Authority. The remainder, if any, along with prior year’s accumulated undistributed earnings shall be proposed by the Board of Directors. However, the appropriation of earnings shall be resolved by the shareholders if earnings are distributed by issuing new shares, or the appropriation of earnings shall be resolved by the Board of Directors, if earnings are distributed in the form of cash. The Company should consider factors affecting finance, business and operations to appropriate distributable earnings for the period, and appropriate all or partial reserve in accordance with regulations of the Competent Authority. The Company’s dividend policy takes into consideration the Company’s future expansion plans and future cash flows. In accordance with the Company’s dividend policy, cash dividends shall account for at least 10% of the total dividends distributed.

In accordance with Company Act Article 240, Item 5 and Article 241, Item 2, the resolution,

~30~

for all or partial of distributable dividends, legal reserve and capital surplus are distributed in the form of cash, will be adopted by a majority vote at a meeting of the Board of Directors attended by at least two-thirds of the total number of directors, and will be reported to the shareholders.

B. Except for covering accumulated deficit or issuing new stocks or cash to shareholders in proportion to their share ownership, the legal reserve shall not be used for any other purpose. The use of legal reserve for the issuance of stocks or cash to shareholders in proportion to their share ownership is permitted, provided that the distribution of the reserve is limited to the portion in excess of 25% of the Company’s paid-in capital.
C. In accordance with the regulations, the Company shall set aside special reserve from the debit balance on other equity items at the balance sheet date before distributing earnings. When debit balance on other equity items is reversed subsequently, the reversed amount could be included in the distributable earnings.
D. The appropriation of 2021 and 2020 earnings had been resolved at the shareholders’ meeting on June 8, 2022 and August 9, 2021. Details are summarized below:

Dividends per share Amount (in dollars) 1,685,276 $ - $ 220,040 - 12,821,591 25.00 14,726,907 $ 25.00 $ 2021	2020	2020
Amount 1,685,276 $ 220,040 12,821,591 14,726,907 $	Amount - $ 1,339,013 6,128,219 7,467,232 $	Dividends per share (in dollars)
		- $ - 12.00
		12.00 $

E. On April 22, 2022, the Board of Directors of the Company proposed to distribute cash dividends from capital surplus to shareholders in the amount of $1,025,727 (2 NT dollar per share).
F. On April 23, 2021, the Board of Directors of the Company proposed to distribute cash dividends from capital surplus to shareholders in the amount of $1,021,370 (2 NT dollar per share).

~31~

(20) Other equity items

2022

		Unrealised				Currency
		gains (losses) on valuation			translation difference						Total
At January 1	$	2,380,781			($	4,156,871)				($	1,776,090)
Revaluation:
–Group	(	931,817)						-		(	931,817)
Currency translation
differences:
–Group				-		7,402,482					7,402,482
At September 30	$	1,448,964			$	3,245,611				$	4,694,575
						2021
		Unrealised			Currency
		gains on valuation		translation difference							Total
At January 1	$	1,384,909	($			2,940,958)	($				1,556,049)
Revaluation:
–Group		949,424				-					949,424
Currency translation
differences:
–Group		-	(			928,401)	(				928,401)
At September 30	$	2,334,333	($			3,869,359)	($				1,535,026)
Operating revenue
				For the		three-month		For	the		three-month
				period ended					period ended
				September 30,2022				September 30,2021
Revenue from contracts with customers			$			29,772,018	$				28,954,850
				For	the	nine-month		For		the	nine-month
				period ended					period ended
				September 30,2022				September 30,2021
Revenue from contracts with customers			$			90,027,673	$				78,134,679

(21) Operating revenue

A. Disaggregation of revenue from contracts with customers

The Group derives revenue from the transfer of goods and services at a point in time in the following major product lines:

~32~

Integrated For the three-month period ended September 30, 2022 circuit products Revenue from external customer contracts 29,725,780 $ Timing of revenue recognition At a point in time 29,725,780 $ Integrated For the nine-month period ended September 30, 2022 circuit products Revenue from external customer contracts 89,887,747 $ Timing of revenue recognition At a point in time 89,887,747 $ Integrated For the three-month period ended September 30, 2021 circuit products Revenue from external customer contracts 28,928,898 $ Timing of revenue recognition At a point in time 28,928,898 $ Integrated For the nine-month period ended September 30, 2021 circuit products Revenue from external customer contracts 78,044,760 $ Timing of revenue recognition At a point in time 78,044,760 $	Others 46,238 $ 46,238 $ Others 139,926 $ 139,926 $ Others 25,952 $ 25,952 $ Others 89,919 $ 89,919 $	Total
		29,772,018 $
		29,772,018 $
		Total
		90,027,673 $
		90,027,673 $
		Total
		28,954,850 $
		28,954,850 $
		Total
		78,134,679 $
		78,134,679 $

B. Contract liabilities

The Group has recognized the following revenue-related contract liabilities:

September 30, 2022 December 31, 2021 September 30, 2021 January 1,2021

Contract liabilities - advance sales receipts	181,020 $ 211,100 $	215,694 $	336,254 $

Revenue recognized that was included in the contract liability balance at the beginning of the period:

For the three-month For the three-month period ended period ended September 30, 2022 September 30, 2021 Contract liabilities – advance sales receipts $ 55,640 $ - For the nine-month For the nine-month period ended period ended September 30, 2022 September 30, 2021 Contract liabilities – advance sales receipts $ 189,536 $ 264,547

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C. Refund liabilities (shown in other current liabilities)

The Group estimates the discounts based on accumulated experience. The estimation is subject to an assessment at each reporting date.

The following refund liabilities:

Interest income Otherincome September 30, 2022 Refund liabilities – current 9,358,067 $ Interest income from bank deposits Interest income from bank deposits Dividend income Other income Dividend income Other income	December 31, 2021 7,521,493 $ For the three-month period ended September 30,2022 361,657 $ For the nine-month period ended September 30,2022 689,725 $ For the three-month period ended September 30,2022 35,471 $ 73,924 109,395 $ For the nine-month period ended September 30, 2022 60,741 $ 156,344 217,085 $	September30,2021 7,088,004 $ For the three-month period ended September 30,2021 69,555 $ For the nine-month period ended September 30,2021 248,578 $ For the three-month period ended September 30, 2021 22,689 $ 49,443 72,132 $ For the nine-month period ended September 30,2021 36,563 $ 104,804 141,367 $

(22) Interest income

(23) Other income

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(24) Other gains and losses

Other gains and losses
		For the three-month			For the three-month
			period ended				period ended
		September30,2022			September30,2021
Losses on disposal of property, plant and
equipment	($		27)	($			62)
Gains on disposal of investments			-				26,065
Net currency exchange gains (losses)			14,484	(			22,429)
Losses on financial assets at fair value
through profit or loss	(		34,327)	(			209,464)
Other losses	(		10,124)	(			171,907)
	($		29,994)	($			377,797)
		For the nine-month			For the nine-month
			period ended				period ended
		September30,2022			September30,2021
(Losses) gains on disposal of property, plant and
equipment	($		2,079)		$		74
Gains on disposal of investments			-				26,065
Gains arising from lease modifications			24				-
Net currency exchange gains (losses)			196,241	(			79,030)
(Losses) gains on financial assets at fair value
through profit or loss	(		206,442)				36,853
Other losses	(		29,719)	(			176,504)
	($		41,975)	($			192,542)
Finance costs
		For the three-month				For the three-month
			period ended				period ended
		September 30,2022				September 30,2021
Interest expense
Bank borrowings		$	76,749		$		17,223
Lease liabilities			6,629				5,529
		$	83,378		$		22,752
			For the nine-month				For the nine-month
			period ended				period ended
		September 30,2022				September 30,2021
Interest expense
Bank borrowings		$	115,148		$		53,888
Lease liabilities			21,196				19,649
		$	136,344		$		73,537

(25) Finance costs

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(26) Expenses by nature

Employee benefit expenses Employee benefit expenses Depreciation Amortisation Employee benefit expenses Depreciation Amortisation Wages and salaries Labor and health insurance fees Pension costs Other personnel expenses Total Wages and salaries Labor and health insurance fees Pension costs Other personnel expenses Total	For the three-month period ended September 30,2022 7,632,549 $ 297,599 407,967 For the nine-month period ended September 30, 2022 23,912,755 $ 854,174 1,200,449 For the three-month period ended September30,2022 7,300,106 $ 175,658 99,005 57,780 7,632,549 $ For the nine-month period ended September30,2022 22,875,664 $ 567,205 294,139 175,747 23,912,755 $	For the three-month period ended September 30,2021 7,563,850 $ 253,642 349,507 For the nine-month period ended September 30,2021 19,981,171 $ 723,153 940,652 For the three-month period ended September30,2021 7,283,631 $ 150,009 84,278 45,932 7,563,850 $ For the nine-month period ended September30,2021 19,116,398 $ 461,327 245,472 157,974 19,981,171 $

(27) Employee benefit expenses

A. In accordance with the Company’s Articles of Incorporation, the Company shall appropriate no higher than 3% for directors’ remuneration and no less than 1% for employees’ compensation, if the Company generates profit. If the Company has accumulated deficit, earnings should be reserved to cover losses before the appropriation of directors’ remuneration and employees’ compensation. Aforementioned employees’ compensation could be distributed by cash or stocks. Specifics of the compensation are to be determined by a majority vote at a meeting of the Board of Directors attended by at least two-thirds of the total number of directors. The resolution should be reported to the shareholders during the shareholders’ meeting.

B. For the three-month and nine-month periods ended September 30, 2022 and 2021, employees’

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compensation was accrued at $1,240,613, $1,437,563, $4,133,481 and $3,594,275, respectively; directors’ remuneration was accrued at $0, $0, $163,939 and $90,000, respectively. The amounts were estimated as operating cost or operating expense in accordance with the Company’s Articles of Incorporation.

On March 18, 2022, the employees’ compensation of $4,956,694 and directors’ remuneration of $130,000 for 2021 resolved at the meeting of the Board of Directors agreed with those amounts recognized in the 2021 financial statements.

Information about employees’ compensation and directors’ remuneration of the Company as resolved by the Board of Directors will be posted in the “Market Observation Post System” at the website of the Taiwan Stock Exchange.

(28) Income tax

A. Income tax expense

the website of the Taiwan Stock Exchange. ome tax Income tax expense
		For	the three-month		For	the three-month
			period ended			period ended
		September30,2022			September30,2021
Current income tax:
Current income tax on profit for the period		$	184,179		$	204,344
Deferred income tax:
Origination and reversal of temporary
differences	(		822)			146
Income tax expense		$	183,357		$	204,490
		For the nine-month			For the nine-month
			period ended			period ended
		September30,2022			September30,2021
Current income tax:
Current income tax on profit for the period		$	848,260		$	724,929
Tax on undistributed earnings			106,293			64,850
Prior year income tax overestimation	(		355,446)	(		276,529)
Total current income tax			599,107			513,250
Deferred income tax:
Origination and reversal of temporary
differences	(		1,856)	(		351)
Income tax expense		$	597,251		$	512,899

B. As at September 30, 2022, the Company’s income tax returns through 2020 have been assessed and approved by the Tax Authority.

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(29) Earnings per share

For the three-month period ended September 30, 2022

	Forthe three-monthperiod ended September30,2022	Forthe three-monthperiod ended September30,2022	er30,2022
Basic earnings per share Profit attributable to common shareholders of the parent company Diluted earnings per share Profit attributable to common shareholders of the parent company Assumed conversion of all dilutive potential common shares Employees’ compensation Profit attributable to common shareholders of the parent company plus assumed conversion of all dilutive potential common shares Basic earnings per share Profit attributable to common shareholders of the parent company Diluted earnings per share Profit attributable to common shareholders of the parent company Assumed conversion of all dilutive potential common shares Employees’ compensation Profit attributable to common shareholders of the parent company plus assumed conversion of all dilutive potential common shares	Amount after Weighted average number of common shares outstanding (shares Earnings per share tax inthousands) (indollars) 4,207,022 $ 512,863 8.20 $ 4,207,022 $ 512,863 - 4,578 4,207,022 $ 517,441 8.13 $ Forthe three-monthperiod ended September30,2021		Earnings per share (indollars)
			8.20 $
			8.13 $
	Amount after tax 4,887,852 $ 4,887,852 $ - 4,887,852 $	Weighted average number of common shares outstanding (shares inthousands) 510,684 510,684 2,973 513,657	Earnings per share (indollars)
			9.57 $
			9.52 $

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Amount after Weighted average number of common shares outstanding (shares Earnings per share tax inthousands) (indollars) 14,070,401 $ 512,257 27.47 $ 14,070,401 $ 512,257 - 18,285 14,070,401 $ 530,542 26.52 $ For the nine-monthperiod endedSeptember30,2022 For the nine-monthperiod endedSeptember30,2021	Amount after Weighted average number of common shares outstanding (shares Earnings per share tax inthousands) (indollars) 14,070,401 $ 512,257 27.47 $ 14,070,401 $ 512,257 - 18,285 14,070,401 $ 530,542 26.52 $ For the nine-monthperiod endedSeptember30,2022 For the nine-monthperiod endedSeptember30,2021	Amount after Weighted average number of common shares outstanding (shares Earnings per share tax inthousands) (indollars) 14,070,401 $ 512,257 27.47 $ 14,070,401 $ 512,257 - 18,285 14,070,401 $ 530,542 26.52 $ For the nine-monthperiod endedSeptember30,2022 For the nine-monthperiod endedSeptember30,2021
Amount after tax 12,247,291 $ 12,247,291 $ - 12,247,291 $	Weighted average number of common shares outstanding (shares inthousands) 510,684 510,684 9,011 519,695	Earnings per share (indollars)
		23.98 $
		23.57 $

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(30) Supplemental cash flow information

Investing activities with partial cash payments

Supplementalcashflow information Investing activities with partial cash payments
		For the nine-month		For the nine-month
			period ended		period ended
		September 30,2022		September 30,2021
Purchase of property, plant and equipment	$		1,734,413	$	1,781,480
Add: Opening balance of payable on equipment			283,796		58,959
Less: Ending balance of payable on equipment	(		468,696)	(	127,892)
Cash paid during the period	$		1,549,513	$	1,712,547
			For the nine-month		For the nine-month
			period ended		period ended
		September 30,2022		September 30,2021
Purchase of intangible assets		$	1,476,170	$	1,143,680
Add: Opening balance of payable on
software and intellectual property			1,445,930		1,152,591
Less: Ending balance of payable on
software and intellectual property	(		1,822,236)	(	1,336,270)
Cash paid during the period		$	1,099,864	$	960,001
			For the nine-month		For the nine-month
			period ended		period ended
		September 30,2022		September 30, 2021
Cash dividends declared		$	12,821,591	$	6,128,219
Cash from capital surplus			1,025,727		1,021,370
Ending balance of other payables
(shown in other payables)	(		13,847,318)	(	7,149,589)
Cash paid during the period		$	-	$	-

(31) Changes in liabilities from financing activities

Short-term borrowings At January 1, 2022 13,342,100 $ Changes in cash flow from financing activities 3,414,783) ( Interest paid - Interest of lease liabilities - Impact of changes in foreign exchange - Changes in other non-cash items - At September 30, 2022 9,927,317 $	Guarantee Lease Long-term deposits liabilities borrowings 1,448 $ 1,332,705 $ 1,002,799 $ 184) ( 72,155) ( 537,050 - 21,196) ( - - 21,196 - - 7,861 - - 66,612 2,442) ( 1,264 $ 1,335,023 $ 1,537,407 $	Dividends Liabilities from financing payable activities-total - $ 15,679,052 $ - 2,950,072) ( - 21,196) ( - 21,196 - 7,861 13,847,318 13,911,488 13,847,318 $ 26,648,329 $

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At January 1, 2021 Changes in cash flow from financing activities Interest paid Interest of lease liabilities Impact of changes in foreign exchange Changes in other non-cash items At September 30, 2021	Short-term borrowings 11,456,690 $ 1,451,250 - - - - 12,907,940 $	Guarantee Lease deposits liabilities 1,251 $ 1,377,257 $ 213 71,758) ( - 19,649) ( - 19,649 - 140 - 15,502 1,464 $ 1,321,141 $	Dividends Liabilities from financing payable activities-total - $ 12,835,198 $ - 1,379,705 - 19,649) ( - 19,649 - 140 7,149,589 7,165,091 7,149,589 $ 21,380,134 $

7. RELATED PARTY TRANSACTIONS

(1) Parent and ultimate controlling party

The ultimate controlling party of the Group is the Company.

(2) Names of related parties and relationship

Names of related parties and relationship
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) Significant related party transactions and balances

A. Operating revenue

gnificant related party transactions and balances Operating revenue
Sales of goods`﹕` G.M.I Technology Inc. Others	For the three-month period ended September 30,2022 4,466,143 $ 83,381 4,549,524 $	For the three-month period ended September 30,2021
		4,427,910 $ 188,317
		4,616,227 $

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		For the nine-month		For the nine-month
		period ended		period ended
	September 30, 2022		September 30, 2021
Sales of goods`﹕`
G.M.I Technology Inc.	$	13,049,250	$	12,041,531
Others		332,365		497,288
	$	13,381,615	$	12,538,819

Goods are sold based on the price lists in force and terms that would be available to third parties, and the general collection term was 30 ~ 60 days after monthly billings.

B. Processing cost

Processing cost
Greatek Electronics Inc. Others Greatek Electronics Inc. Others	For the three-month period ended September 30,2022 283,198 $ - 283,198 $ For the nine-month period ended September 30,2022 933,856 $ 10,528 944,384 $	For the three-month period ended September 30, 2021
		334,259 $ 1,364
		335,623 $
		For the nine-month period ended September 30, 2021
		1,058,245 $ 7,429
		1,065,674 $

Processing cost is paid to related parties on normal commercial terms and conditions, and the general payment term was 69 days after monthly billings.

C. Receivables from related parties

Receivables from related parties
Accounts receivable`﹕` G.M.I Technology Inc. Other	September 30,2022 3,797,708 $ 55,526 3,853,234 $	December 31,2021 3,146,078 $ 46,106 3,192,184 $	September 30,2021
			3,186,507 $ 42,884
			3,229,391 $

Aforementioned receivables were 30 ~ 60 days after monthly billings. The receivables from related parties arise mainly from sale transactions. The receivables are unsecured in nature and bear no interest.

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D. Payables to related parties

Payables to related parties
Accounts payable`﹕` Greatek Electronics Inc. Others	September 30,2022 291,233 $ - 291,233 $	December 31,2021 333,380 $ 1,033 334,413 $	September 30,2021 363,357 $ 1,432
			364,789 $

The payment term above was 69 days after monthly billings. The payables to related parties arise mainly from processing cost. The payables bear no interest.

E. Other transactions and Other payables (receivables):

		For the nine-month period	For the nine-month period	For the nine-month period		For the nine-month period	For the nine-month period	For the nine-month period
		ended September		30, 2022		ended September		30,2021
				Ending				Ending
		Amount		balance		Amount		balance
Other related parties-
Sales commissions	$	563,220	$	139,948	$	470,379	$	103,905
Technical royalty revenue	($	1,010)	$	-	($	25,909)	$	-
Other	$	-	$	-	$	327	$	-

The payment term above was 49 days after monthly billings; the collection term was 30 ~ 60 days after monthly billings.

(4) Key management compensation

days after monthly billings. Key management compensation
Salaries and other short-term employee benefits Post-employment benefits Total Salaries and other short-term employee benefits Post-employment benefits Total	For the three-month period ended September 30, 2022 22,797 $ 1,005 23,802 $ For the nine-month period ended September 30,2022 229,442 $ 2,870 232,312 $	For the three-month period ended September 30,2021
		16,275 $ 822
		17,097 $
		For the nine-month period ended September 30, 2021
		108,156 $ 2,280
		110,436 $

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8. PLEDGED ASSETS

The Group’s assets pledged as collateral are as follows:

Pledged asset September 30,2022 December 31,2021 Time deposits (shown in financial assets at amortised cost non-current) 31,048 $ 31,048 $ " 54,692 49,053 85,740 $ 80,101 $ Book value	September 30,2021 Purposes 30,821 $ Guarantee for the importation customs duties of materials 49,058 Guarantee for leasing land and office in science park 79,879 $

SIGNIFICANT CONTINGENT LIABILITIES AND UNRECOGNIZED CONTRACT COMMITMENTS

(1) Contingencies

A. In 2020, Divx, LLC brought actions for patent infringement in United States International Trade Commission (“ITC”) and United States District Court of Delaware against the Company’s IC products. On July 4, 2021, DivX terminated the investigation against the Company in ITC.
B. In 2020, KONINKLIJKE PHILIPS N.V. and PHILIPS NORTH AMERICA LLC brought actions for patent infringement in United States International Trade Commission (“ITC”) and United States District Court of Delaware against the Company’s IC products. On March 23, 2022, ITC issued the final determination finding non-infringement for the accused Company’s IC products and non-existence of the required domestic industry.
C. Future Link Systems, LLC brought actions for patent infringement in United States International Trade Commission (“ITC”) and United States District Court for the Western District of Texas against the Company’s IC products. Due to the Plaintiff/ Complainant’s withdrawal of its patent infringement complaints, the patent infringement cases have been terminated.
D. BANDSPEED, LLC brought an action for patent infringement in United States District Court for the Western District of Texas against the Company’s IC products. The case is still pending, and the Company is unable to reliably determine the outcome of the case.
E. Advanced Micro Devices, Inc./ ATI Technologies ULC brought an action for patent infringement in United States International Trade Commission (“ITC”) against the Company’s IC products. The case is still pending, and the Company is unable to reliably determine the outcome of the case.

(2) Commitments

None.

10. SIGNIFICANT DISASTER LOSS

None.

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11. SIGNIFICANT EVENTS AFTER THE BALANCE SHEET DATE

None.

12. OTHERS

(1) Capital management

There have been no significant changes as at September 30, 2022. Please refer to Note 12 in the consolidated financial statements for the year ended December 31, 2021.

(2) Financial instruments

A. Financial instruments by category

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 payables (including related parties) Long-term borrowings Guarantee deposits Other financial liabilities Lease liabilities	September30,2022 December31,2021 1,930,423 $ 1,952,647 $ 3,069,781 $ 3,644,878 $ 8,325,957 $ 7,197,351 $ 62,974,322 43,820,977 17,696,810 15,989,005 659,951 156,928 2,194,293 734,855 91,851,333 $ 67,899,116 $ 9,927,317 $ 13,342,100 $ 3,276 3,276 16,412,161 11,439,981 46,035,127 24,746,394 1,537,407 1,002,799 1,264 1,448 9,358,067 7,521,493 83,274,619 $ 58,057,491 $ 1,335,023 $ 1,332,705 $	September30,2021 589,947 $ 3,525,581 $ 12,357,936 $ 41,979,476 16,632,674 264,539 734,600 71,969,225 $ 12,907,940 $ 3,276 12,777,918 30,615,664 - 1,464 7,088,004 63,394,266 $ 1,321,141 $

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B. Financial risk management policies
(a) The Group’s activities expose it to a variety of financial risks: market risk (including foreign exchange risk, interest rate risk and price risk), credit risk and liquidity risk.
(b) Risk management is carried out by a Group finance under policies approved by the Board of Directors. Group finance identifies, evaluates, and hedges financial risks in close cooperation with the Group’s operating units.
C. Significant financial risks and degrees of financial risks
(a) Market risk

Foreign exchange risk

i. The Group operates internationally and is exposed to foreign exchange risk arising from various currency exposures, primarily with respect to USD and CNY. Foreign exchange risk arises from future commercial transactions, recognized assets, and liabilities.
ii. Management has set up a policy to require the Group to manage its foreign exchange risk against its functional currency. The Group is required to hedge its entire foreign exchange risk exposure with the Group finance.
iii. The Group’s businesses involve some functional currency operations (the Company’s and other certain subsidiaries’ functional currency: NTD ； other certain subsidiaries’ functional currency: USD and CNY). The information on assets and liabilities denominated in foreign currencies whose values would be materially affected by the exchange rate fluctuations is as follows:

exchange rate fluctuations is as follows:	exchange rate fluctuations is as follows:
Foreign currency amount (In thousands) Exchange rate (Foreign currency: functional currency) Financial assets Monetary items USD:NTD 441,811 $ 31.743 Non-monetary items USD:NTD 1,905,601 31.743 Financial liabilities Monetary items USD:NTD 477,290 31.743 September 30, 2022		Book value (NTD)
	Exchange rate 31.743 31.743 31.743
		14,024,407 $ 60,489,493 15,150,616

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==> picture [439 x 468] intentionally omitted <==

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

December 31, 2021
Foreign currency
amount Book value
(In thousands) Exchange rate (NTD)
(Foreign currency: functional
currency)
Financial assets
Monetary items
USD:NTD $ 371,907 27.690 $ 10,298,105
Non-monetary items
USD:NTD 1,692,376 27.690 46,861,891
Financial liabilities
Monetary items
USD:NTD 458,477 27.690 12,695,228
September 30, 2021
Foreign
currency
amount Book value
(In thousands) Exchange rate (NTD)
(Foreign currency: functional
currency)
Financial assets
Monetary items
USD:NTD $ 384,444 27.866 $ 10,712,917
Non-monetary items
USD:NTD 1,748,077 27.866 48,711,914
Financial liabilities
Monetary items
USD:NTD 494,171 27.866 13,770,569
----- End of picture text -----

The exchange gains (losses), including realized and unrealized arising from significant foreign exchange variation on the monetary items held by the Group for the three-month and nine-month periods ended September 30, 2022 and 2021, amounted to $14,484, ($22,429), $196,241 and ($79,030), respectively.

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Analysis of foreign currency market risk arising from significant foreign exchange variation:

Effect on Effect on other comprehensive Degree of variation profit or loss income (Foreign currency: functional currency) Financial assets Monetary items USD:NTD 1% 140,244 $ - $ Non-monetary items USD:NTD 1% - 604,895 Financial liabilities Monetary items USD:NTD 1% 151,506) ( - For the nine-monthperiod ended September 30,2022 Sensitivityanalysis Effect on Effect on other comprehensive Degree of variation profit or loss income (Foreign currency: functional currency) Financial assets Monetary items USD:NTD 1% 107,129 $ - $ Non-monetary items USD:NTD 1% - 487,119 Financial liabilities Monetary items USD:NTD 1% 137,706) ( - For the nine-monthperiod ended September 30,2021 Sensitivityanalysis	Effect on Effect on other comprehensive Degree of variation profit or loss income (Foreign currency: functional currency) Financial assets Monetary items USD:NTD 1% 140,244 $ - $ Non-monetary items USD:NTD 1% - 604,895 Financial liabilities Monetary items USD:NTD 1% 151,506) ( - For the nine-monthperiod ended September 30,2022 Sensitivityanalysis Effect on Effect on other comprehensive Degree of variation profit or loss income (Foreign currency: functional currency) Financial assets Monetary items USD:NTD 1% 107,129 $ - $ Non-monetary items USD:NTD 1% - 487,119 Financial liabilities Monetary items USD:NTD 1% 137,706) ( - For the nine-monthperiod ended September 30,2021 Sensitivityanalysis	Effect on Effect on other comprehensive Degree of variation profit or loss income (Foreign currency: functional currency) Financial assets Monetary items USD:NTD 1% 140,244 $ - $ Non-monetary items USD:NTD 1% - 604,895 Financial liabilities Monetary items USD:NTD 1% 151,506) ( - For the nine-monthperiod ended September 30,2022 Sensitivityanalysis Effect on Effect on other comprehensive Degree of variation profit or loss income (Foreign currency: functional currency) Financial assets Monetary items USD:NTD 1% 107,129 $ - $ Non-monetary items USD:NTD 1% - 487,119 Financial liabilities Monetary items USD:NTD 1% 137,706) ( - For the nine-monthperiod ended September 30,2021 Sensitivityanalysis
	Sensitivityanalysis
	Effect on Degree of variation profit or loss 1% 107,129 $ 1% - 1% 137,706) (	Effect on other comprehensive income
		- $ 487,119 -

Price risk

i. The Group’s equity securities, which are exposed to price risk, are the held financial assets at fair value through profit or loss and financial assets at fair value through other comprehensive income.
ii. The Group’s investments in equity securities comprise shares and open-end funds issued by the domestic and foreign companies. The prices of equity securities would change due to the change of the future value of investee companies. If the prices of these equity securities had increased/decreased by 10% with all other variables held constant, post-tax

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profit for the nine-month periods ended September 30, 2022 and 2021 would have increased/decreased by $193,042 and $58,995, respectively, as a result of gains/losses on equity securities classified as at fair value through profit or loss. Other components of equity would have increased/decreased by $306,978 and $352,558, respectively, as a result of gains/losses on equity securities classified as at fair value through other comprehensive income.

Cash flow and fair value interest rate risk

The Group has no material interest rate risk.

(b) Credit risk
i. Credit risk refers to the risk of financial loss to the Group arising from default by the clients or counterparties of financial instruments on the contract obligations. The main factor is that counterparties could not repay in full the accounts receivable based on the agreed terms, and the contract cash flows of financial assets at amortized cost.
ii. The Group manages their credit risk taking into consideration the entire Group’s concern. According to the Group’s credit policy, each local entity in the Group is responsible for managing and analyzing the credit risk for each of their new clients before standard payment and delivery terms and conditions are offered. Internal risk control assesses the credit quality of the customers, taking into account their financial position, past experience and other factors.
iii. The Group adopts the assumption under IFRS 9, that is, the default occurs when the contract payments are past due over 90 days.
iv. The Group adopts the following assumption under IFRS 9 to assess whether there has been a significant increase in credit risk on that instrument since initial recognition: If the contract payments were past due over 30 days based on the terms, there has been a significant increase in credit risk on that instrument since initial recognition.
v. The following indicators are used to determine whether the credit impairment of debt instruments has occurred:
- (i) It becomes probable that the issuer will enter bankruptcy or other financial reorganization due to their financial difficulties;
- (ii) The disappearance of an active market for that financial asset because of financial difficulties;
- (iii) Default or delinquency in interest or principal repayments;
- (iv) Adverse changes in national or regional economic conditions that are expected to cause a default.
vi. The Group classifies customers’ accounts receivable in accordance with customer types. The Group applies the modified approach using provision matrix to estimate expected credit loss under the provision matrix basis.
vii. The Group wrote-off the financial assets, which cannot be reasonably expected to be

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recovered, after initiating recourse procedures. However, the Group will continue executing the recourse procedures to secure their rights.

viii. The Group used the forecast ability of semiconductor industry research report to adjust historical and timely information to assess the default possibility of accounts receivable. As at September 30, 2022, December 31, 2021 and September 30, 2021, the provision matrix are as follows:

matrix are as follows:
At September 30, 2022 Expected loss rate Total book value Loss allowance At December 31, 2021 Expected loss rate Total book value Loss allowance At September 30, 2021 Expected loss rate Total book value Loss allowance	Notpast due 0%~1% 17,480,575 $ 105,216 $ Not past due 0%~1% 15,874,298 $ 96,119 $ Notpast due 0%~1% 16,396,032 $ 98,680 $	1~90 days past due 0%~1% 324,698 $ 3,247 $ 1~90 days past due 0%~1% 212,956 $ 2,130 $ 1~90 days past due 0%~1% 338,709 $ 3,387 $	Over 90 days past due 100% 36 $ 36 $ Over 90 days past due 100% 461 $ 461 $ Over 90 days past due 100% 461 $ 461 $	Total
				17,805,309 $
				108,499 $
				Total
				16,087,715 $
				98,710 $
				Total
				16,735,202 $
				102,528 $

ix. Movements in relation to the Group applying the modified approach to provide loss allowance for accounts receivable are as follows:

allowance for accounts receivable are as follows:
At January 1 Provision for impairment loss At September 30 At January 1 Provision for impairment loss At September 30	2022
	Loss allowance for accounts receivable
	98,710 $ 9,789
	108,499 $
	2021
	Loss allowance for accounts receivable
	95,360 $ 7,168
	102,528 $

~50~

(c) Liquidity risk

i. Cash flow forecasting is performed in the operating entities of the Group and aggregated by Group finance. Group finance monitors forecasts of the Group’s liquidity requirements to ensure it has sufficient cash to meet operational needs while maintaining sufficient headroom on its undrawn committed borrowing facilities.
ii. Group finance invests surplus cash in interest bearing current accounts, time deposits, money market deposits and marketable securities, choosing instruments with appropriate maturities or sufficient liquidity to provide sufficient headroom as determined by the above-mentioned forecasts.
iii. The table below analyses the Group’s non-derivative financial liabilities into relevant maturity groupings based on the remaining period at the balance sheet date to the contractual maturity date for non-derivative financial liabilities. The amounts disclosed in the table are the contractual undiscounted cash flows.

Non-derivative financial liabilities:

Non-derivative financial liabilities:
Short-term borrowings Notes payable Accounts payable (including related parties) Other payables (including related parties) Lease liabilities Long-term borrowings Guarantee deposits Other financial liabilities Non-derivative financial liabilities: Short-term borrowings Notes payable Accounts payable (including related parties) Other payables (including related parties) Lease liabilities Long-term borrowings Guarantee deposits Other financial liabilities September 30, 2022 December 31, 2021	Less than 1 year 9,927,317 $ 3,276 16,412,161 46,035,127 129,370 - - 9,358,067 Less than 1 year 13,342,100 $ 3,276 11,439,981 24,746,394 115,821 - - 7,521,493	Between 1 and 5years - $ - - - 332,990 1,537,407 - - Between 1 and 5years - $ - - - 334,479 1,017,360 - -	Over 5years
			- $ - - - 1,318,685 - 1,264 - Over 5years
			- $ - - - 1,340,088 - 1,448 -

~51~

Non-derivative financial liabilities:

Non-derivative financial liabilities:
September 30, 2021	Less than 1 year		Between 1 and 5 years		Over 5 years
Short-term borrowings	$	12,907,940	$	-	$	-
Notes payable		3,276		-		-
Accounts payable (including related
parties)		12,777,918		-		-
Other payables (including related parties)		30,615,664		-		-
Lease liabilities		109,075		319,346		1,353,507
Guarantee deposits		-		-		1,464
Other financial liabilities		7,088,004		-		-

iv. The Group does not expect the timing of occurrence of the cash flows estimated through the maturity date analysis will be significantly earlier, nor expect the actual cash flow amount will be significantly different.

(3) Fair value information

A. The different levels that the inputs to valuation techniques are used to measure fair value of financial and non-financial instruments have been defined as follows:
Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can access at the measurement date. A market is regarded as active where a market in which transactions for the asset or liability take place with sufficient frequency and volume to provide pricing information on an ongoing basis. The fair value of the Group’s investment in listed stocks and beneficiary certificates is included in Level 1.
Level 2: Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly.
Level 3: Unobservable inputs for the asset or liability. The fair value of the Group’s investment in equity investment without active market is included in Level 3.
B. Fair value information of investment property at cost is provided in Note 6(10).
C. The related information of financial and non-financial instruments measured at fair value by level on the basis of the nature, characteristics and risks of the assets is as follows:

~52~

(a) The related information of nature of the assets is as follows: September 30, 2022 Level 1 Level 2 Assets Recurring fair value measurement Financial assets at fair value through profit or loss Equity securities 1,930,423 $ - $ Financial assets at fair value through other comprehensive income Equity securities 589,588 - Total 2,520,011 $ - $ December 31, 2021 Level 1 Level 2 Assets Recurring fair value measurement Financial assets at fair value through profit or loss Equity securities 1,952,647 $ - $ Financial assets at fair value through other comprehensive income Equity securities 824,506 - Total 2,777,153 $ - $ September 30, 2021 Level 1 Level 2 Assets Recurring fair value measurement Financial assets at fair value through profit or loss Equity securities 589,947 $ - $ Financial assets at fair value through other comprehensive income Equity securities 727,586 - Total 1,317,533 $ - $	Level3 - $ 2,480,193 2,480,193 $ Level3 - $ 2,820,372 2,820,372 $ Level3 - $ 2,797,995 2,797,995 $	Total
		1,930,423 $ 3,069,781
		5,000,204 $
		Total
		1,952,647 $ 3,644,878
		5,597,525 $
		Total
		589,947 $ 3,525,581
		4,115,528 $

~53~

(b) The methods and assumptions the Group used to measure fair value are as follows:
i. The instruments the Group used market quoted prices as their fair values (that is, Level 1) are listed below by characteristics:

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

ii. Except for financial instruments with active markets, the fair value of other financial instruments is measured by using valuation techniques. The fair value of financial instruments measured by using valuation techniques can be referred to current fair value of instruments with similar terms and characteristics in substance, discounted cash flow method or other valuation methods, including calculated by applying model using market information available at the consolidated balance sheet date.
iii. The output of valuation model is an estimated value and the valuation technique may not be able to capture all relevant factors of the Group’s financial and non-financial instruments. Therefore, the estimated value derived using valuation model is adjusted accordingly with additional inputs.
D. For the nine-month periods ended September 30, 2022 and 2021, there was no transfer between Level 1 and Level 2.
E. The following chart is the movement of Level 3 for the nine-month periods ended September 30, 2022 and 2021:

30, 2022 and 2021:
2022 Non-derivative equityinstrument At January 1 2,820,372 $ (Losses) gains recognized in other comprehensive income 340,179) ( At September 30 2,480,193 $	2021
	Non-derivative equityinstrument
	2,031,480 $ 766,515
	2,797,995 $

F. For the nine-month periods ended September 30, 2022 and 2021, there was no transfer into or out from Level 3.
G. The finance division is in charge of valuation procedures for fair value measurements being categorized within Level 3, which is to verify independent fair value of financial instruments. Such assessment is to ensure the valuation results are reasonable by applying independent information to make results close to current market conditions, confirming the resource of information is independent, reliable and in line with other resources and represented as the

~54~

exercisable price, updating inputs used to the valuation model and making any other necessary adjustments to the fair value.

H. The following is the qualitative information of significant unobservable inputs and sensitivity analysis of changes in significant unobservable inputs to valuation model used in Level 3 fair value measurement:

Non- derivative equity instrument: Unlisted shares 〃 Private equity fund investment Non- derivative equity instrument: Unlisted shares 〃 Private equity fund investment	Fair value at September 30, 2022	Valuation technique	Significant unobservable input	Range (weighted average)	Relationship of inputs tofairvalue
	122,816 $ 38,481 2,318,896 Fair value at December 31, 2021	Market comparable companies Net asset value Net asset value Valuation technique	Price to book ratio multiple Not applicable Not applicable Significant unobservable input	3.12 - - Range (weighted average)	The higher the multiple, the higher the fair value Not applicable Not applicable Relationship of inputs tofairvalue
	106,304 $ 30,270 2,683,798	Market comparable companies Net asset value Net asset value	Price to book ratio multiple Not applicable Not applicable	15.33 - -	The higher the multiple, the higher the fair value Not applicable Not applicable

~55~

Non- derivative equity instrument: Unlisted shares 〃 Private equity fund investment	Fair value at September 30, 2021 Valuation technique 106,980 $ Market comparable companies 26,019 Net asset value 2,664,996 Net asset value	Significant unobservable input Range (weighted average) Relationship of inputs tofairvalue Price to book ratio multiple 4.54 The higher the multiple, the higher the fair value Not applicable - Not applicable Not applicable - Not applicable

I. The Group has carefully assessed the valuation models and assumptions used to measure fair value; therefore, the fair value measurement is reasonable. However, use of different valuation models or assumptions may result in different measurement. The following is the effect of profit or loss or of other comprehensive income from financial assets and liabilities categorized within Level 3 if the inputs used to valuation models have changed:

September 30, 2022

		September 30,2022
Financial assets Equity instrument Financial assets Equity instrument	Input	Favourable Unfavourable Favourable Unfavourable Change Change change Change change ± 1% - $ - $ 1,698 $ 1,698) ($ Favourable Unfavourable Favourable Unfavourable Change Change change Change change ± 1% - $ - $ 7,283 $ 7,283) ($ December 31,2021 Recognized in other Recognized inprofit or loss comprehensive income Recognized in profit or loss comprehensive income Recognized in other
	Price to book ratio multiple Input
	Price to book ratio multiple

~56~

Input Financial assets Equity instrument Price to book ratio multiple	Favourable Unfavourable Change Change change ± 1% - $ - $ September Recognized in profit or loss	Favourable Unfavourable Change change 1,819 $ 1,819) ($ 30,2021 Recognized in other comprehensive income

’ - (4) Effects on the Group s operation arising from the COVID 19 pandemic

In response to the COVID-19 pandemic, the Company adjusted the working pattern of its employees, enhanced cleaning and disinfection and other measures to comply with the government regulations. As at September 30, 2022, the Group assessed that the epidemic had no significant impact on the overall operating activities and financial statements.

13. SUPPLEMENTARY DISCLOSURES

(1) Significant transactions information

A. Loans to others: Please refer to table 1.
B. Provision of endorsements and guarantees to others: Please refer to table 2.
C. Holding of marketable securities at the end of the period (not including subsidiaries, associates and joint ventures): Please refer to table 3.
D. Acquisition or sale of the same security with the accumulated cost exceeding $300 million or 20% of the Company’s paid-in capital: None.
E. Acquisition of real estate reaching $300 million or 20% of paid-in capital or more: None.
F. Disposal of real estate reaching $300 million or 20% of paid-in capital or more: None.
G. Purchases or sales of goods from or to related parties reaching $100 million or 20% of paidin capital or more: Please refer to table 4.
H. Receivables from related parties reaching $100 million or 20% of paid-in capital or more: Please refer to table 5.
I. Trading in derivative instruments undertaken during the reporting periods: None.
J. Significant inter-company transactions during the reporting periods: Please refer to table 6.
(2) Information on investees

Names, locations, and other information of investee companies (not including investees in Mainland China): Please refer to table 7.

(3) Information on investments in Mainland China

A. Basic information: Please refer to table 8.
B. Significant transactions, either directly or indirectly through a third area, with investee companies in the Mainland Area: Please refer to tables 1, 2 and 6.

~57~

(4) Major shareholders information

As at September 30, 2022, the Company had no shareholders who hold over 5% (including 5%) of the Company’s shares.

14. SEGMENT INFORMATION

(1) General information

The Group operates business only in a single industry. The Chief Operating Decision-Maker, who allocates resources and assesses performance of the Group as a whole, has identified that the Group has only one reportable operating segment.

(2) Measurement of segment information

The Chief Operating Decision-Maker assesses the performance of the operating segments based on the consolidated financial statements. The accounting policy of operating segments is the same as that described in Note 4.

(3) Information on segment profit (loss), assets and liabilities

The revenue from external customers and segment financial information reported to the Chief Operating Decision-Maker is measured in a manner consistent with that in the consolidated statement of comprehensive income.

(4) Reconciliation for segment profit (loss)

The segment assets, liabilities and profit before income tax reported to the Chief Operating Decision-Maker is measured in a manner consistent with that in the consolidated balance sheet and consolidated statement of comprehensive income. As a result, no reconciliation was reported.

~58~

Table 1

Expressed in thousands of NTD (Except as otherwise indicated)

REALTEK SEMICONDUCTOR CORPORATION AND SUBSIDIARIES Loans to others

For the nine-month period ended September 30, 2022

Maximum outstanding balance during the nine- month period ended September 30,2022 (Note 3) Balance at September 30, 2022 Actual amount drawn down (Note 4) No (Note 1) Creditor Borrower General ledger account Is a related party Interest rate(%) Nature of loan Amount of transactions with the borrower Reason for short- term financing Allowance for doubtful accounts	Maximum outstanding balance during the nine- month period ended September 30,2022 (Note 3) Balance at September 30, 2022 Actual amount drawn down (Note 4) No (Note 1) Creditor Borrower General ledger account Is a related party Interest rate(%) Nature of loan Amount of transactions with the borrower Reason for short- term financing Allowance for doubtful accounts	Maximum outstanding balance during the nine- month period ended September 30,2022 (Note 3) Balance at September 30, 2022 Actual amount drawn down (Note 4) No (Note 1) Creditor Borrower General ledger account Is a related party Interest rate(%) Nature of loan Amount of transactions with the borrower Reason for short- term financing Allowance for doubtful accounts	Maximum outstanding balance during the nine- month period ended September 30,2022 (Note 3) Balance at September 30, 2022 Actual amount drawn down (Note 4) No (Note 1) Creditor Borrower General ledger account Is a related party Interest rate(%) Nature of loan Amount of transactions with the borrower Reason for short- term financing Allowance for doubtful accounts	Maximum outstanding balance during the nine- month period ended September 30,2022 (Note 3) Balance at September 30, 2022 Actual amount drawn down (Note 4) No (Note 1) Creditor Borrower General ledger account Is a related party Interest rate(%) Nature of loan Amount of transactions with the borrower Reason for short- term financing Allowance for doubtful accounts	Maximum outstanding balance during the nine- month period ended September 30,2022 (Note 3) Balance at September 30, 2022 Actual amount drawn down (Note 4) No (Note 1) Creditor Borrower General ledger account Is a related party Interest rate(%) Nature of loan Amount of transactions with the borrower Reason for short- term financing Allowance for doubtful accounts	Maximum outstanding balance during the nine- month period ended September 30,2022 (Note 3) Balance at September 30, 2022 Actual amount drawn down (Note 4) No (Note 1) Creditor Borrower General ledger account Is a related party Interest rate(%) Nature of loan Amount of transactions with the borrower Reason for short- term financing Allowance for doubtful accounts	Maximum outstanding balance during the nine- month period ended September 30,2022 (Note 3) Balance at September 30, 2022 Actual amount drawn down (Note 4) No (Note 1) Creditor Borrower General ledger account Is a related party Interest rate(%) Nature of loan Amount of transactions with the borrower Reason for short- term financing Allowance for doubtful accounts	Maximum outstanding balance during the nine- month period ended September 30,2022 (Note 3) Balance at September 30, 2022 Actual amount drawn down (Note 4) No (Note 1) Creditor Borrower General ledger account Is a related party Interest rate(%) Nature of loan Amount of transactions with the borrower Reason for short- term financing Allowance for doubtful accounts	Maximum outstanding balance during the nine- month period ended September 30,2022 (Note 3) Balance at September 30, 2022 Actual amount drawn down (Note 4) No (Note 1) Creditor Borrower General ledger account Is a related party Interest rate(%) Nature of loan Amount of transactions with the borrower Reason for short- term financing Allowance for doubtful accounts	Maximum outstanding balance during the nine- month period ended September 30,2022 (Note 3) Balance at September 30, 2022 Actual amount drawn down (Note 4) No (Note 1) Creditor Borrower General ledger account Is a related party Interest rate(%) Nature of loan Amount of transactions with the borrower Reason for short- term financing Allowance for doubtful accounts	Maximum outstanding balance during the nine- month period ended September 30,2022 (Note 3) Balance at September 30, 2022 Actual amount drawn down (Note 4) No (Note 1) Creditor Borrower General ledger account Is a related party Interest rate(%) Nature of loan Amount of transactions with the borrower Reason for short- term financing Allowance for doubtful accounts	Maximum outstanding balance during the nine- month period ended September 30,2022 (Note 3) Balance at September 30, 2022 Actual amount drawn down (Note 4) No (Note 1) Creditor Borrower General ledger account Is a related party Interest rate(%) Nature of loan Amount of transactions with the borrower Reason for short- term financing Allowance for doubtful accounts	Collateral	Collateral	Limit on loans granted to a single party	Ceiling on total loans granted (Note 2) Footnote	Ceiling on total loans granted (Note 2) Footnote
													Item Value
`0`	Realtek Semiconductor Corporation	Hung-wei Venture Capital Co., Ltd.	Other receivables-related parties	Y	`300,000` `$`	`300,000` `$`	`33,000` `$`	`1.40`	`Short-term` `financing`	`-` `$`	Operations	- $	None	- $	`4,662,774` `$`	`18,651,095` `$`	None
`0`	Realtek Semiconductor Corporation	RayMX Microelectronics Corp.	Other receivables-related parties	Y	`63,486`	`63,486`	`-`	`-`	`Short-term` `financing`	`-`	Operations	-	None	-	`4,662,774`	`18,651,095`	None
`0`	Realtek Semiconductor Corporation	AICONNX Technology Corp.	Other receivables-related parties	Y	`300,000`	`300,000`	`-`	`-`	`Short-term` `financing`	`-`	Operations	-	None	-	`4,662,774`	`18,651,095`	None
`0`	Realtek Semiconductor Corporation	Bluocean Inc.	Other receivables-related parties	Y	`2,222,010`	`2,222,010`	`2,222,010`	`3.80`	`Short-term` `financing`	`-`	Operations	-	None	-	`4,662,774`	`18,651,095`	None
`0`	Realtek Semiconductor Corporation	Talent Eagle Enterprise Inc.	Other receivables-related parties	Y	`2,539,440`	`2,539,440`	`2,539,440`	`3.80`	`Short-term` `financing`	`-`	Operations	-	None	-	`4,662,774`	`18,651,095`	None
`0`	Realtek Semiconductor Corporation	Leading Enterprises Limited	Other receivables-related parties	Y	`2,856,870`	`2,856,870`	`2,777,513`	`3.80`	`Short-term` `financing`	`-`	Operations	-	None	-	`4,662,774`	`18,651,095`	None
`0`	Realtek Semiconductor Corporation	Amber Universal Inc.	Other receivables-related parties	Y	`3,174,300`	`3,174,300`	`984,033`	`3.80`	`Short-term` `financing`	`-`	Operations	-	None	-	`4,662,774`	`18,651,095`	None
`1`	Leading Enterprises Limited	Bluocean Inc.	Other receivables-related parties	Y	`1,904,580`	`1,904,580`	`-`	`-`	`Short-term` `financing`	`-`	Operations	-	None	-	`18,651,095`	`18,651,095`	None
`1`	Leading Enterprises Limited	Talent Eagle Enterprise Inc.	Other receivables-related parties	Y	`1,904,580`	`1,904,580`	`282,513`	`3.80`	`Short-term` `financing`	`-`	Operations	-	None	-	`18,651,095`	`18,651,095`	None
`2`	Amber Universal Inc.	Blueocean Inc.	Other receivables-related parties	Y	`1,587,150`	`1,587,150`	`1,555,407`	`3.80`	`Short-term` `financing`	`-`	Operations	-	None	-	`18,651,095`	`18,651,095`	None
`2`	Amber Universal Inc.	Talent Eagle Enterprise Inc.	Other receivables-related parties	Y	`3,174,300`	`3,174,300`	`2,872,742`	`3.80`	`Short-term` `financing`	`-`	Operations	-	None	-	`18,651,095`	`18,651,095`	None
`3`	Cortina Access, Inc.	Leading Enterprises Limited	Other receivables-related parties	Y	`952,290`	`952,290`	`817,382`	`0.44`	`Short-term` `financing`	`-`	Operations	-	None	-	`18,651,095`	`18,651,095`	None

Table 1 Page 1

Table 1

Expressed in thousands of NTD (Except as otherwise indicated)

REALTEK SEMICONDUCTOR CORPORATION AND SUBSIDIARIES Loans to others

For the nine-month period ended September 30, 2022

Maximum outstanding balance during the nine- month period ended September 30,2022 (Note 3) Balance at September 30, 2022 Actual amount drawn down (Note 4) No (Note 1) Creditor Borrower General ledger account Is a related party Interest rate(%) Nature of loan Amount of transactions with the borrower Reason for short- term financing Allowance for doubtful accounts	Maximum outstanding balance during the nine- month period ended September 30,2022 (Note 3) Balance at September 30, 2022 Actual amount drawn down (Note 4) No (Note 1) Creditor Borrower General ledger account Is a related party Interest rate(%) Nature of loan Amount of transactions with the borrower Reason for short- term financing Allowance for doubtful accounts	Maximum outstanding balance during the nine- month period ended September 30,2022 (Note 3) Balance at September 30, 2022 Actual amount drawn down (Note 4) No (Note 1) Creditor Borrower General ledger account Is a related party Interest rate(%) Nature of loan Amount of transactions with the borrower Reason for short- term financing Allowance for doubtful accounts	Maximum outstanding balance during the nine- month period ended September 30,2022 (Note 3) Balance at September 30, 2022 Actual amount drawn down (Note 4) No (Note 1) Creditor Borrower General ledger account Is a related party Interest rate(%) Nature of loan Amount of transactions with the borrower Reason for short- term financing Allowance for doubtful accounts	Maximum outstanding balance during the nine- month period ended September 30,2022 (Note 3) Balance at September 30, 2022 Actual amount drawn down (Note 4) No (Note 1) Creditor Borrower General ledger account Is a related party Interest rate(%) Nature of loan Amount of transactions with the borrower Reason for short- term financing Allowance for doubtful accounts	Maximum outstanding balance during the nine- month period ended September 30,2022 (Note 3) Balance at September 30, 2022 Actual amount drawn down (Note 4) No (Note 1) Creditor Borrower General ledger account Is a related party Interest rate(%) Nature of loan Amount of transactions with the borrower Reason for short- term financing Allowance for doubtful accounts	Maximum outstanding balance during the nine- month period ended September 30,2022 (Note 3) Balance at September 30, 2022 Actual amount drawn down (Note 4) No (Note 1) Creditor Borrower General ledger account Is a related party Interest rate(%) Nature of loan Amount of transactions with the borrower Reason for short- term financing Allowance for doubtful accounts	Maximum outstanding balance during the nine- month period ended September 30,2022 (Note 3) Balance at September 30, 2022 Actual amount drawn down (Note 4) No (Note 1) Creditor Borrower General ledger account Is a related party Interest rate(%) Nature of loan Amount of transactions with the borrower Reason for short- term financing Allowance for doubtful accounts	Maximum outstanding balance during the nine- month period ended September 30,2022 (Note 3) Balance at September 30, 2022 Actual amount drawn down (Note 4) No (Note 1) Creditor Borrower General ledger account Is a related party Interest rate(%) Nature of loan Amount of transactions with the borrower Reason for short- term financing Allowance for doubtful accounts	Maximum outstanding balance during the nine- month period ended September 30,2022 (Note 3) Balance at September 30, 2022 Actual amount drawn down (Note 4) No (Note 1) Creditor Borrower General ledger account Is a related party Interest rate(%) Nature of loan Amount of transactions with the borrower Reason for short- term financing Allowance for doubtful accounts	Maximum outstanding balance during the nine- month period ended September 30,2022 (Note 3) Balance at September 30, 2022 Actual amount drawn down (Note 4) No (Note 1) Creditor Borrower General ledger account Is a related party Interest rate(%) Nature of loan Amount of transactions with the borrower Reason for short- term financing Allowance for doubtful accounts	Maximum outstanding balance during the nine- month period ended September 30,2022 (Note 3) Balance at September 30, 2022 Actual amount drawn down (Note 4) No (Note 1) Creditor Borrower General ledger account Is a related party Interest rate(%) Nature of loan Amount of transactions with the borrower Reason for short- term financing Allowance for doubtful accounts	Maximum outstanding balance during the nine- month period ended September 30,2022 (Note 3) Balance at September 30, 2022 Actual amount drawn down (Note 4) No (Note 1) Creditor Borrower General ledger account Is a related party Interest rate(%) Nature of loan Amount of transactions with the borrower Reason for short- term financing Allowance for doubtful accounts	Collateral	Collateral	Limit on loans granted to a single party	Ceiling on total loans granted (Note 2) Footnote	Ceiling on total loans granted (Note 2) Footnote
													Item Value
`4`	Realtek Singapore Private Limited	Leading Enterprises Limited	Other receivables-related parties	Y	`3,174,300` `$`	`3,174,300` `$`	`-` `$`	`-`	`Short-term` `financing`	`-` `$`	Operations	`-` `$`	None	`-` `$`	`18,651,095` `$`	`18,651,095` `$`	None
`4`	Realtek Singapore Private Limited	RayMX Microelectronics Corp.	Other receivables-related parties	Y	`63,486`	`63,486`	`-`	`-`	`Short-term` `financing`	`-`	Operations	-	None	-	`18,651,095`	`18,651,095`	None
`4`	Realtek Singapore Private Limited	Realsil Microelectronics Corp.	Other receivables-related parties	Y	`952,290`	`952,290`	`-`	`-`	`Short-term` `financing`	`-`	Operations	-	None	-	`18,651,095`	`18,651,095`	None
`4`	Realtek Singapore Private Limited	Bluocean Inc.	Other receivables-related parties	Y	`3,174,300`	`3,174,300`	`3,124,827`	`3.80`	`Short-term` `financing`	`-`	Operations	-	None	-	`18,651,095`	`18,651,095`	None
`4`	Realtek Singapore Private Limited	Amber Universal Inc.	Other receivables-related parties	Y	`3,174,300`	`3,174,300`	`2,158,524`	`3.80`	`Short-term` `financing`	`-`	Operations	-	None	-	`18,651,095`	`18,651,095`	None
`4`	Realtek Singapore Private Limited	Talent Eagle Enterprise Inc.	Other receivables-related parties	Y	`3,174,300`	`3,174,300`	`3,174,300`	`3.80`	`Short-term` `financing`	`-`	Operations	-	None	-	`18,651,095`	`18,651,095`	None
`5`	Realsil Microelectronics Corp.	Suzhou Pankore Integrated Circuit Technology Co. Ltd	Other receivables-related parties	Y	`358,016`	`358,016`	`132,242`	`4.35`	`Short-term` `financing`	`-`	Operations	-	None	-	`18,651,095`	`18,651,095`	None
`5`	Realsil Microelectronics Corp.	RayMX Microelectronics Corp.	Other receivables-related parties	Y	`358,016`	`358,016`	`-`	`-`	`Short-term` `financing`	`-`	Operations	-	None	-	`18,651,095`	`18,651,095`	None
`6`	Cortina Network Systems (Shanghai) Co., Ltd.	Suzhou Pankore Integrated Circuit Technology Co. Ltd	Other receivables-related parties	Y	`134,256`	`134,256`	`-`	`-`	`Short-term` `financing`	`-`	Operations	-	None	-	`18,651,095`	`18,651,095`	None

Note 1: The numbers filled in for the loans provided by the Company or subsidiaries are as follows:

(1) The Company is ‘0’.
(2) The subsidiaries are numbered in order starting from ‘1’.

Note 2: The Company’s “Procedures for Provision of Loans” are as follows:

(1) Ceiling on total loans granted by the Company to all parties is 40% of the Company’s net assets value as per its most recent financial statements.
(2) Limit on loans to a single party with business transactions is the business transactions occurred between the creditor and borrower in the current year. The business transaction amount is the higher of purchasing and selling during current year on the year of financing.
(3) For companies needing for short-term financing, the cumulative lending amount may not exceed 40% of the borrowing company’s net assets based on its latest financial statements audited or reviewed by independent auditors.
The amount the Company or its subsidiaries lend to an individual entity may not exceed 10% of the Company’s or subsidiary’s net assets based on its latest financial statements audited or reviewed by independent auditors.
For the foreign companies which the Company holds 100% of the voting rights directly or indirectly, limit on loans is not restricted as stipulated in the above item (3). However, the ceiling on total loans and limit on loans to a single party may not exceed 40% of the Company’s net assets based on its latest financial statements audited or reviewed by independent auditors.

Note 3: Acccumulated maximum outstandings balance of loans to others as at the reporting month of the current period.

Note 4: Fill in the actual amount of loans to others used by the borrowing company.

Table 1 Page 2

Table 2

REALTEK SEMICONDUCTOR CORPORATION AND SUBSIDIARIES

Provision of endorsements and guarantees to others For the nine-month period ended September 30, 2022

Expressed in thousands of NTD (Except as otherwise indicated)

													(Except as otherwise indicated)
Number (Note 1) Endorser/ guarantor		Party being endorsed/guaranteed		Limited on endorsements/ guarantees provided for a single party (Note 3)	Maximum outstanding endorsement/ amount as at September 30, 2022 (Note 4)	Outstanding endorsement/ guarantee amount at September 30, 2022 (Note 5)	Actual amont drawn down (Note 6)	Amount of endorsements/gurant ees secured with collateral	Ratio of accumulated endorsement/ guarantee amount to net asset value of the endorser/ guarantor company	Ceiling on total amount of endorsements/ guarantees provided (Note 3)	Provision of endorsements/ guarantees by parent company to subsidiary (Note 7)	Provision of endorsements/ guarantees by subsidiary to parent company (Note 7)	Provision of endorsements/ guarantees to the party in Mainland China (Note 7) Footnote
		Companyname Relationship with the endorser/ guarantor (Note 2)
`0`	Realtek Semiconductor Corporation	Realtek Singapore Private Limited	`2`	`23,313,869` `$`	`4,662,774` `$`	`4,662,774` `$`	`-` `$`	`-` `$`	`10%`	`23,313,869` `$`	`Y`	`N`	`N`
`0`	Realtek Semiconductor Corporation	Leading Enterprises Limited	`2`	`23,313,869`	`9,325,548`	`9,325,548`	`-`	`-`	`20%`	`23,313,869`	`Y`	`N`	`N`
`0`	Realtek Semiconductor Corporation	Suzhou PanKore Integrated Circuit Technology Co., Ltd.	`2`	`23,313,869`	`466,277`	`466,277`	`-`	`-`	`1%`	`23,313,869`	`Y`	`N`	`Y`
`0`	Realtek Semiconductor Corporation	Realsil Microelectronics Corp.	`2`	`23,313,869`	`1,398,832`	`1,398,832`	`-`	`-`	`3%`	`23,313,869`	`Y`	`N`	`Y`
`0`	Realtek Semiconductor Corporation	RayMX Microelectronics Corp.	`2`	`23,313,869`	`1,398,832`	`1,398,832`	`38,046`	`-`	`3%`	`23,313,869`	`Y`	`N`	`Y`
`0`	Realtek Semiconductor Corporation	AICONNX Technology Corp.	`2`	`23,313,869`	`932,555`	`932,555`	`-`	`-`	`2%`	`23,313,869`	`Y`	`N`	`N`
`1`	Leading Enterprises Limited	Realsil Microelectronics Corp.	`2`	`23,313,869`	`634,860`	`634,860`	`-`	`-`	`2%`	`23,313,869`	`N`	`N`	`Y`
`2`	Realsil Microelectronics Corp.	RayMX Microelectronics Corp.	`2`	`23,313,869`	`634,860`	`634,860`	`-`	`-`	`2%`	`23,313,869`	`N`	`N`	`Y`

Note 1: The numbers filled in for the endorsements/guarantees provided by the Company or subsidiaries are as follows:

(1)The Company is ‘0’.
(2)The subsidiaries are numbered in order starting from ‘1’.
Note 2: Relationship between the endorser/guarantor and the party being endorsed/guaranteed is classified into the following six categories:
(1) Having business relationship.
(2) The endorser/guarantor parent company owns directly and indirectly more than 50% voting shares of the endorsed/guaranteed subsidiary.
(3) The endorser/guarantor company owns directly and indirectly more than 50% voting shares of the endorser/guarantor parent company.
(4) The endorser/guarantor parent company owns directly or indirectly owns more than 50% voting shares of the endorsed/guaranteed subsidiary.
(5) Mutual guarantee of the trade as required by the construction contract.
(6) Due to joint venture, each shareholder provides endorsements/guarantees to the endorsed/guaranteed company in proportion to its ownership.
(7) Joint guarantee of the performance guarantee for pre-sold home sales contract as required under the Consumer Protection Act.
Note 3: Ceiling on total endorsements/guarantees granted by the Company and subsidiaries is 50% of the Company’s net asset based on the latest financial statements audited or reviewed by independent auditors, and limit on endorsements/guarantees to a single party is 50% of the Company's net asset based on the latest financial statements audited or reviewed by independent auditors.
Note 4: Fill in the year-to-date maximum outstanding balance of endorsements/guarantees provided as of the reporting period.
Note 5: Fill in the amount approved by the Board of Directors or the chairman has been authorised by the Board of Directors based on subparagraph 8, Article 12 of the Regulations Gorverning Loaning of Funds and Making of Endorsements/Guarantees by Public Companies. Note 6: Fill in the actual amount of endorsements/guarantees used by the endorsed/guaranteed company.
Note 7: Fill in ‘Y’ for those cases of provision of endorsements/guarantees by listed parent company to subsidiary and provision by subsidiary to listed parent company, and provision to the party in Mainland China.

Table 2

Table 3

Expressed in thousands of NTD

REALTEK SEMICONDUCTOR CORPORATION AND SUBSIDIARIES

Holding of marketable securities at the end of the period (not including subsidiaries, associates and joint ventures)

September 30, 2022

(Except as otherwise indicated)

Securities held by Marketable securities `（`Note 1`）` Relationship with the securities issuer(Note 2) General ledger account	Securities held by Marketable securities `（`Note 1`）` Relationship with the securities issuer(Note 2) General ledger account	Securities held by Marketable securities `（`Note 1`）` Relationship with the securities issuer(Note 2) General ledger account	Securities held by Marketable securities `（`Note 1`）` Relationship with the securities issuer(Note 2) General ledger account		As at September 30, 2022	As at September 30, 2022	As at September 30, 2022
				Numberofshares	Book value (Note 3)	Ownership (%) Fairvalue
Realtek Semiconductor Corporation	C-media Electronics Inc. - Common stock	Other related parties	Financial assets at fair value through profit or loss	`1,278,501`	`$ 53,505`	`1.63%`	`$ 53,505`
Realtek Semiconductor Corporation	Nuheara Ltd	None	Financial assets at fair value through other comprehensive income	`14,166,667`	`61,402`	`10.33%`	`61,402`
Realking Investment Co., Ltd.	Compal broadband networks Inc. - Common stock	Other related parties	Financial assets at fair value through other comprehensive income	`3,575,000`	`84,370`	`5.23%`	`84,370`
Realsun Investment Co., Ltd.	Shieh-Yong Investment Co., Ltd. - Common stock	None	Financial assets at fair value through other comprehensive income	`66,817,958`	`517,173`	`3.03%`	`517,173`
Realsun Investment Co., Ltd.	Compal broadband networks Inc. - Common stock	Other related parties	Financial assets at fair value through other comprehensive income	`3,575,000`	`84,370`	`5.23%`	`84,370`
Leading Enterprises Limited	Fortemedia Inc. - Common stock	None	Financial assets at fair value through other comprehensive income	`8,837,301`	`103,770`	`6.89%`	`103,770`
Leading Enterprises Limited	Starix Technology, Inc.-Preferred stock	None	Financial assets at fair value through other comprehensive income	`5,000,000`	`19,046`	`-`	`19,046`
Leading Enterprises Limited	Octtasia Investment Holding Inc. - Common stock	None	Financial assets at fair value through other comprehensive income	`9,000,000`	`1,181,300`	`12.49%`	`1,181,330`
Amber Universal Inc.	Octtasia Investment Holding Inc. - Common stock	None	Financial assets at fair value through other comprehensive income	`4,726,836`	`620,423`	`6.56%`	`620,434`
Hung-wei Venture Capital Co., Ltd.	United Microelectronics Corporation - Common stock	None	Financial assets at fair value through other comprehensive income	`336,346`	`12,024`	`-`	`12,024`
Hung-wei Venture Capital Co., Ltd.	C-media Electronics Inc.- Common stock	Other related parties	Financial assets at fair value through profit or loss	`2,274,875`	`95,204`	`2.89%`	`95,204`
Hung-wei Venture Capital Co., Ltd.	Greatek Electroninc Inc. - Common stock	Other related parties	Financial assets at fair value through other comprehensive income	`5,823,602`	`286,812`	`1.02%`	`286,812`
Hung-wei Venture Capital Co., Ltd.	Subtron technology Co., Ltd - Common stock	None	Financial assets at fair value through other comprehensive income	`1,093,968`	`27,404`	`0.37%`	`27,404`
Hung-wei Venture Capital Co., Ltd.	Embestor Technology Inc. - Common stock	Other related parties	Financial assets at fair value through other comprehensive income	`2,800,000`	`38,481`	`10.77%`	`38,481`

Table 3 Page 1

Table 3

Expressed in thousands of NTD

REALTEK SEMICONDUCTOR CORPORATION AND SUBSIDIARIES

Holding of marketable securities at the end of the period (not including subsidiaries, associates and joint ventures)

September 30, 2022

(Except as otherwise indicated)

Securities held by Marketable securities `（`Note 1`）` Relationship with the securities issuer(Note 2) General ledger account	Securities held by Marketable securities `（`Note 1`）` Relationship with the securities issuer(Note 2) General ledger account	Securities held by Marketable securities `（`Note 1`）` Relationship with the securities issuer(Note 2) General ledger account	Securities held by Marketable securities `（`Note 1`）` Relationship with the securities issuer(Note 2) General ledger account		As at September 30, 2022	As at September 30, 2022	As at September 30, 2022
				Numberofshares	Book value (Note 3)	Ownership (%) Fairvalue
Blueocean Inc.	EARGO, Inc.	None	Financial assets at fair value through other comprehensive income	`797,261`	`$ 26,573`	`2.03%`	`$ 26,573`
Talent Eagle Enterprise Inc.	EARGO, Inc.	None	Financial assets at fair value through other comprehensive income	`199,000`	`6,633`	`0.51%`	`6,633`
Realsil Microelectronics Corp.	Cuam Money Fund	None	Financial assets at fair value through profit or loss	`16,478,623`	`73,744`	`-`	`73,744`
Realsil Microelectronics Corp.	JIA SHI Monetary Fund	None	Financial assets at fair value through profit or loss	`10,099,338`	`45,197`	`-`	`45,197`
Realsil Microelectronics Corp.	BOC Cash Fund	None	Financial assets at fair value through profit or loss	`22,211,910`	`99,403`	`-`	`99,403`
Realsil Microelectronics Corp.	Guang-Fa Currency Fund	None	Financial assets at fair value through profit or loss	`90,033,825`	`402,919`	`-`	`402,919`
Realsil Microelectronics Corp.	WAN JIA Monetary Fund	None	Financial assets at fair value through profit or loss	`10,100,576`	`45,202`	`-`	`45,202`
Realtek Semiconductor (Shen Zhen) Corp.	Tian-Tian-Jin Stable Funds	None	Financial assets at fair value through profit or loss	`23,128,280`	`142,266`	`-`	`142,266`
Realtek Semiconductor (Shen Zhen) Corp.	Tian-Tian-Jin Aggressive Funds	None	Financial assets at fair value through profit or loss	`45,278,912`	`273,269`	`-`	`273,269`
Realtek Semiconductor (Shen Zhen) Corp.	Capital Increase Monetary Fund A	None	Financial assets at fair value through profit or loss	`5,855,972`	`26,207`	`-`	`26,207`
Realtek Semiconductor (Shen Zhen) Corp.	Capital Increase Monetary Fund B	None	Financial assets at fair value through profit or loss	`10,081,112`	`45,115`	`-`	`45,115`
Realtek Semiconductor (Shen Zhen) Corp.	Ri-Ri-Xin Fund	None	Financial assets at fair value through profit or loss	`39,500,000`	`177,053`	`-`	`177,053`
Cortina Network Systems (Shanghai) Co. Ltd.	Zhou Zhou Fa Fund	None	Financial assets at fair value through profit or loss	`11,967,897`	`73,670`	`-`	`73,670`
Cortina Network Systems (Shanghai) Co. Ltd.	Step by step Gold Fund	None	Financial assets at fair value through profit or loss	`16,100,000`	`72,051`	`-`	`72,051`
Bluocean Inc.	CyWeeMotion Group Limited	None	Financial assets at fair value through other comprehensive income	`8,422,256`	`-`	`7.01%`	`-`
Realtek Investment Singapore Private Limited	Bond funds	None	Financial assets at fair value through profit or loss	`-`	`305,619`	`-`	`305,619`

Note 1: Marketable securities in the table refer to stocks, bonds, beneficiary certificates and other related derivative securities within the scope of IFRS 9 ‘Financial instruments'.

Note 2: Leave the column blank if the issuer of marketable securities is non-related party. Note 3: Fill in the amount after adjusted at fair value and deducted by accumulated impairment for the marketable securities measured at fair value; fill in the acquisition cost for the marketable securities not measured at fair value.

Note 4: The number of shares of securities and their amounts pledged as security or pledged for loans and their restrictions on use under some agreements should be stated in the footnote if the securities presented herein have such conditions.

Table 3 Page 2

Table 4

REALTEK SEMICONDUCTOR CORPORATION AND SUBSIDIARIES

Purchases or sales of goods from or to related parties reaching NT$100 million or 20% of paid-in capital or more

For the nine-month period ended September 30, 2022

Expressed in thousands of NTD

(Except as otherwise indicated)

Purchase/seller	Counterparty	Relationship with the counterparty		Trans	action		Differences in t compared t transa	ransaction terms o third party ctions	Notes/accounts receivable(payable)	Notes/accounts receivable(payable)
			Purchase (sales)	Amount	Percentage of total purchase (sales)	Credit term	Unitprice	Credit term	Balance	Percentage of total notes/accounts receivable(payable)
Realtek Semiconductor Corporation	G.M.I Technology Inc.	Other related parties	(Sales)	7,648,615) ($	(8%)	Approximately the same with third party transactions	Approximately the same with third party transactions	Approximately the same with third party transactions	1,977,253 $	11%
Realtek Semiconductor Corporation	Actions Semiconductor Co., Ltd.	Other related parties	(Sales)	50,213) (	0%	Approximately the same with third party transactions	Approximately the same with third party transactions	Approximately the same with third party transactions	3,111	0%
Realtek Semiconductor Corporation	C-Media Electronics Inc.	Other related parties	(Sales)	276,959) (	0%	Approximately the same with third party transactions	Approximately the same with third party transactions	Approximately the same with third party transactions	52,440	0%
RayMX Microelectronics Corp.	G.M.I Technology Inc.	Other related parties	(Sales)	74,923) (	0%	Approximately the same with third party transactions	Approximately the same with third party transactions	Approximately the same with third party transactions	24,662	0%
Realtek Singapore Private Limited	G.M.I Technology Inc.	Other related parties	(Sales)	5,325,712) (	(6%)	Approximately the same with third party transactions	Approximately the same with third party transactions	Approximately the same with third party transactions	1,795,793	10%
Realtek Semiconductor Corporation	Greatek Electronics Inc.	Other related parties	Purchase	631,582	1%	Approximately the same with third party transactions	Approximately the same with third party transactions	Approximately the same with third party transactions	193,097) (	1%
Realtek Singapore Private Limited	Greatek Electronics Inc.	Other related parties	Purchase	293,220	1%	Approximately the same with third party transactions	Approximately the same with third party transactions	Approximately the same with third party transactions	91,066) (	0%

Table 4

REALTEK SEMICONDUCTOR CORPORATION AND SUBSIDIARIES

Receivables from related parties reaching NT$100 million or 20% of paid-in capital or more

September 30, 2022

Table 5

Expressed in thousands of NTD (Except as otherwise indicated)

Creditor	Counterparty	Relationship with the counterparty	Balance as at September 30,2022	Turnover rate	Overdue receivables	Overdue receivables	Amount collected subsequent to the balance sheet date	Allowance for doubtful accounts
					Amount	Action taken
Realtek Semiconductor Corporation	G.M.I Technology Inc.	Other related parties	1,977,253 $	5.45	$ -	-	820,583 $	19,972 $
Realtek Singapore Private Limited	G.M.I Technology Inc.	Other related parties	1,795,793	4.53	-	-	794,372	-

Table 5

Table 6

REALTEK SEMICONDUCTOR CORPORATION AND SUBSIDIARIES

Significant inter-company transactions during the reporting period For the nine-month period ended September 30, 2022

Expressed in thousands of NTD (Except as otherwise indicated)

Transaction

Number (Note 1)	Companyname	Counterparty	Relationship (Note 2)	General ledgeraccount	Amount	Transactionterms Percentage of consolidated total operating revenues or totalassets (Note 3)	Transactionterms Percentage of consolidated total operating revenues or totalassets (Note 3)
`0`	Realtek Semiconductor Corporation	RayMX Microelectronics Corp.	`1`	Other receivables	$ 51,643	No similar transaction can be compared with. Transaction prices and terms are determined in accordance with mutual agreement.	0.04%
`0`	Realtek Semiconductor Corporation	Realtek Korea Inc.	`1`	Technical service fees	89,306	No similar transaction can be compared with. Transaction prices and terms are determined in accordance with mutual agreement.	0.10%
`0`	Realtek Semiconductor Corporation	Realtek Korea Inc.	`1`	Other payables	34,753	No similar transaction can be compared with. Transaction prices and terms are determined in accordance with mutual agreement.	0.03%
`0`	Realtek Semiconductor Corporation	Ubilinx Technology Inc.	`1`	Technical service fees	449,144	No similar transaction can be compared with. Transaction prices and terms are determined in accordance with mutual agreement.	0.50%
`0`	Realtek Semiconductor Corporation	Ubilinx Technology Inc.	`1`	Other payables	169,683	No similar transaction can be compared with. Transaction prices and terms are determined in accordance with mutual agreement.	0.13%
`1`	Realtek Singapore Private Limited	Realsil Microelectronics Corp.	`3`	Technical service fees	2,032,798	No similar transaction can be compared with. Transaction prices and terms are determined in accordance with mutual agreement.	2.26%
`1`	Realtek Singapore Private Limited	Realsil Microelectronics Corp.	`3`	Prepaid account	866,584	No similar transaction can be compared with. Transaction prices and terms are determined in accordance with mutual agreement.	0.64%
`1`	Realtek Singapore Private Limited	Realtek Semiconductor(Shen Zhen) Corp.	`3`	Technical service fees	431,199	No similar transaction can be compared with. Transaction prices and terms are determined in accordance with mutual agreement.	0.48%
`1`	Realtek Singapore Private Limited	Cortina Access, Inc.	`3`	Technical service fees	158,891	No similar transaction can be compared with. Transaction prices and terms are determined in accordance with mutual agreement.	0.18%
`1`	Realtek Singapore Private Limited	Cortina Access, Inc.	`3`	Other payables	19,410	No similar transaction can be compared with. Transaction prices and terms are determined in accordance with mutual agreement.	0.01%
`1`	Realtek Singapore Private Limited	Cortina Network Systems (Shanghai) Co. Ltd.	`3`	Technical service fees	110,526	No similar transaction can be compared with. Transaction prices and terms are determined in accordance with mutual agreement.	0.12%
`1`	Realtek Singapore Private Limited	Cortina Network Systems (Shanghai) Co. Ltd.	`3`	Other payables	41,648	No similar transaction can be compared with. Transaction prices and terms are determined in accordance with mutual agreement.	0.03%
`1`	Realtek Singapore Private Limited	Cortina Systems Taiwan Limited	`3`	Technical service fees	145,383	No similar transaction can be compared with. Transaction prices and terms are determined in accordance with mutual agreement.	0.16%
`1`	Realtek Singapore Private Limited	Cortina Systems Taiwan Limited	`3`	Other payables	14,998	No similar transaction can be compared with. Transaction prices and terms are determined in accordance with mutual agreement.	0.01%
`1`	Realtek Singapore Private Limited	Realtek Semiconductor (Japan) Corp.	`3`	Technical service fees	50,103	No similar transaction can be compared with. Transaction prices and terms are determined in accordance with mutual agreement.	0.06%
`1`	Realtek Singapore Private Limited	Realtek Viet Nam Co. Ltd.	`3`	Technical service fees	25,836	No similar transaction can be compared with. Transaction prices and terms are determined in accordance with mutual agreement.	0.03%
`1`	Realtek Singapore Private Limited	Realtek Semiconductor (Malaysia) Sdn. Bhd.	`3`	Technical service fees	11,427	No similar transaction can be compared with. Transaction prices and terms are determined in accordance with mutual agreement.	0.01%
`1`	Realtek Singapore Private Limited	RayMX Microelectronics Corp.	`3`	Other receivables	51,643	No similar transaction can be compared with. Transaction prices and terms are determined in accordance with mutual agreement.	0.04%

Note 1: The numbers filled in for the transaction company in respect of inter-company transactions are as follows:
(1) Parent company is ‘0’.
(2) The subsidiaries are numbered in order starting from ‘1’.
Note 2: Relationship between transaction company and counterparty is classified into the following three categories; fill in the number of category each case belongs to (If transactions between parent company and subsidiaries or between subsidiaries refer to the same transaction, it is not required to disclose twice. For example, if the parent company has already disclosed its transaction with a subsidiary, then the
subsidiary is not required to disclose the transaction; for transactions between two subsidiaries, if one of the subsidiaries has disclosed the transaction, then the other is not required to disclose the transaction.):
(1) Parent company to subsidiary.
(2) Subsidiary to parent company.
(3) Subsidiary to subsidiary
Note 3: Regarding percentage of transaction amount to consolidated total operating revenues or total assets, it is computed based on period-end balance of transaction to consolidated total assets for balance sheet accounts and based on accumulated transaction amount for the period to consolidated total operating revenues for income statement accounts.
Note 4: Only transactions above NT$10 million are disclosed. Transactions of related parties are not further disclosed here.

Table 6

Table 7

Expressed in thousands of NTD

REALTEK SEMICONDUCTOR CORPORATION AND SUBSIDIARIES

Information on investees

For the nine-month period ended September 30, 2022

(Except as otherwise indicated)

Initial investment amount

Shares held as at September 30, 2022

Investor	Investee	Location	Main business activities	Balance as at September30,2022	Balance as at December 31, 2021	Number of shares	Ownership (%)	Bookvalue	Net profit (loss) of the investee for the nine-month period ended September 30,2022	Investment income (loss) recognised by the Company for the nine-month period ended September 30, 2022	Footnote
Realtek Semiconductor Corporation	Leading Enterprises Limited	British Virgin Islands	Investment holdings	$ 15,678,820	$ 13,676,922	34,630	100%	$ 14,846,976	66,275) ($	66,275) ($	Subsidiary
Realtek Semiconductor Corporation	Amber Universal Inc.	British Virgin Islands	Investment holdings	4,996,786	4,358,823	41,432	100%	3,831,587	9,466	9,466	Subsidiary
Realtek Semiconductor Corporation	Realtek Singapore Private Limited	Singapore	ICs manufacturing, design, research, development, sales, and marketing	4,503,858	3,928,798	89,856,425	100%	28,498,958	12,825,801	12,827,046	Subsidiary
Realtek Semiconductor Corporation	Bluocean Inc.	Cayman Islands	Investment holdings	3,493,317	3,047,285	110,050,000	100%	3,674,726	24,750	24,750	Subsidiary
Realtek Semiconductor Corporation	Talent Eagle Enterprise Inc.	Cayman Islands	Investment holdings	3,621,876	3,159,429	114,100,000	100%	2,524,035	40,676	40,676	Subsidiary
Realtek Semiconductor Corporation	Realtek Investment Singapore Private Limited	Singapore	Investment holdings	6,348,600	5,538,000	200,000,000	100%	7,105,008	63,834	63,834	Subsidiary
Realtek Semiconductor Corporation	Realsun Investments Co., Ltd.	Taiwan	Investment holdings	280,000	280,000	28,000,000	100%	649,790	18,253	18,253	Subsidiary
Realtek Semiconductor Corporation	Hung-wei Venture Capital Co., Ltd.	Taiwan	Investment holdings	250,000	250,000	25,000,000	100%	416,871	90,901) (	90,901) (	Subsidiary
Realtek Semiconductor Corporation	Realking Investments Co., Ltd.	Taiwan	Investment holdings	293,930	293,930	29,392,985	100%	255,354	3,011) (	3,011) (	Subsidiary
Realtek Semiconductor Corporation	Realsun Technology Corporatioin	Taiwan	ICs manufacturing, design, research, development, sales, and marketing	5,000	5,000	500,000	100%	5,028	40) (	40) (	Subsidiary
Realtek Semiconductor Corporation	Bobitag Inc.	Taiwan	Manufacturing and installation of computer equipment and wholesasle, retail and related services of electronic materials and information/software	19,189	19,189	1,918,910	66.67%	19,349	144	96	Subsidiary
Realtek Semiconductor Corporation	AICONNX Technology Corporation	Taiwan	ICs manufacturing, design, research, development, sales, and marketing	20,000	20,000	2,000,000	100%	1,175	15,146) (	15,146) (	Subsidiary

Table 7 Page 1

Table 7

REALTEK SEMICONDUCTOR CORPORATION AND SUBSIDIARIES

Information on investees

For the nine-month period ended September 30, 2022

Expressed in thousands of NTD

(Except as otherwise indicated)

Initial investment amount

Shares held as at September 30, 2022

Investor	Investee	Location	Main business activities	Balance as at September30,2022	Balance as at December 31, 2021	Number of shares	Ownership (%)	Bookvalue	Net profit (loss) of the investee for the nine-month period ended September 30,2022	Investment income (loss) recognised by the Company for the nine-month period ended September 30, 2022	Footnote
Realtek Semiconductor Corporation	Estinet Technologies Incorporation	Taiwan	Research and development, design, manufacturing, sales and other services of electronic components, information/Software and integrated circuits.	$ 110,000	$ 110,000	2,000,000	6.89%	$ 2,600	43,023) ($	2,498) ($	Investments accounted for under equity method
Realking Investments Co., Ltd.	Innorich Venture Capital Corp.	Taiwan	Venture capital activities	200,000	200,000	20,000,000	37.38%	137,411	9,383) (	5,208) (	Investments accounted for under equity method
Realking Investments Co., Ltd.	Starmems Semiconductor Corporation	Taiwan	Research and development, design, manufacturing, sales and other services of electronic components, information/Software and integrated circuits.	10,000	10,000	1,000,000	10%	8,195	15,104) (	1,510) (	Investments accounted for under equity method
Realsun Investments Co., Ltd.	Starmems Semiconductor Corporation	Taiwan	Research and development, design, manufacturing, sales and other services of electronic components, information/Software and integrated circuits.	23,000	23,000	2,300,000	23%	18,850	15,104) (	3,474) (	Investments accounted for under equity method
Hung-wei Venture Capital Co., Ltd.	Starmems Semiconductor Corporation	Taiwan	Research and development, design, manufacturing, sales and other services of electronic components, information/Software and integrated circuits.	12,000	12,000	1,200,000	12%	9,835	15,104) (	1,813) (	Investments accounted for under equity method
Leading Enterprises Limited	Realtek Semiconductor (Japan) Corp.	Japan	Information collection and technical support	4,399	4,812	400	100%	12,866	11,232	11,232	Sub-Subsidiary
Leading Enterprises Limited	Circon Universal Inc.	Mauritius	Investment holdings	9,523	8,307	300,000	100%	8,085	78) (	78) (	Sub-Subsidiary
Amber Universal Inc.	Realtek Semiconductor (Hong Kong)Limited	Hong Kong	Information services and technical support	6,066	5,326	-	100%	1,151	24) (	24) (	Sub-Subsidiary
Realtek Singapore Private Limited	Empsonic Enterprises Inc.	Mauritius	Investment holdings	896,740	782,243	2,825,000	100%	2,029,567	8,255	8,255	Sub-Subsidiary
Realtek Singapore Private Limited	Cortina Access Inc.	U.S.A	R&D and technical support	1,296,575	1,131,026	16,892	100%	957,353	11,134	11,134	Sub-Subsidiary

Table 7 Page 2

Table 7

Expressed in thousands of NTD

REALTEK SEMICONDUCTOR CORPORATION AND SUBSIDIARIES

Information on investees

For the nine-month period ended September 30, 2022

(Except as otherwise indicated)

Initial investment amount Shares held as at September 30, 2022

Investor	Investee	Location	Main business activities	Balance as at September30,2022	Balance as at December 31, 2021	Number of shares	Ownership (%)	Bookvalue	Net profit (loss) of the investee for the nine-month period ended September 30,2022	Investment income (loss) recognised by the Company for the nine-month period ended September 30, 2022	Footnote
Realtek Singapore Private Limited	Cortina Systems Taiwan Limited	Taiwan	R&D and technical support	$ 63,486	$ 55,380	21,130,000	100%	$ 75,259	25,139 $	25,139 $	Sub-Subsidiary
Realtek Singapore Private Limited	Realtek Viet Nam Co., Ltd.	Vietnam	R&D and technical support	126,972	110,760	4,000,000	100%	86,452	1,743	1,743	Sub-Subsidiary
Talent Eagle Enterprise Inc.	Ubilinx Technology Inc.	U.S.A	R&D and technical support	1,904,580	1,661,400	60,000,000	100%	320,256	26,695	26,695	Sub-Subsidiary
Bluocean Inc.	Realtek Semiconductor (Malaysia)Limited	Malaysia	R&D and technical support	71,714	69,275	10,450,000	100%	67,952	3,626	3,626	Sub-Subsidiary
Bluocean Inc.	Realtek Korea Inc.	Korea	R&D and technical support	44,390	-	200,000	100%	52,156	8,072	8,072	Sub-Subsidiary

Note ： The amount of foreign currencies denominated in New Taiwan dollars in this table, which relates to income and expenses which were re-translated at the average exchange rate from January 1, 2022 to September 30, 2022, others were re-translated at the exchange rate prevailing at the end of the financial reporting period.

Table 7 Page 3

Table 8

REALTEK SEMICONDUCTOR CORPORATION AND SUBSIDIARIES

Information on investments in Mainland China

For the nine-month period ended September 30, 2022

Expressed in thousands of NTD (Except as otherwise indicated)

Investee in Mainland China	Main business activities	Paid-in Capital	Investment method (Note1)	Accumulated amount of remittance from Taiwan to Mainland China as of January1,2022	Amount re Taiwan to China/Amo back to Ta nine-month Septembe	mitted from Mainland unt remitted iwan for the period ended r 30,2022	Accumulated amount of remittance from Taiwan to Mainland China as of September 30,2022	Net income of investee for the nine-month period ended September 30, 2022	Ownership held by the Company (direct or indirect)	Investment income (loss) recognised by the Company for the nine- month period ended September 30, 2022 (Note2)	Book value of investment in Mainland China as of September 30,2022	Accumulated amount of investment income remitted back to Taiwan as of September 30, 2022	Footnote
					Remitted to Mainland China	Remitted back to Taiwan
Cortina Network Systems (Shanghai) Co., Ltd. Realsil Microelectronics Corp. Realtek Semiconductor (Shen Zhen) Corp. RayMX Microelectronics Corp. Suzhou Pankore Integrated Circuit Technology Co. Ltd.	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	114,275 $ 888,804 158,715 117,474 44,752	(2) (2) (2) (2) (2)	114,275 $ 888,804 158,715 117,474 44,752	$ - - - - -	$ - - - - -	114,275 $ 888,804 158,715 117,474 44,752	5,541 $ 9,282 15,858) ( 9,557) ( 84,831) (	100% 100% 100% 100% 100%	5,541 $ 9,282 15,858) ( 9,557) ( 83,356) (	107,974 $ 2,025,663 277,846 399,821 144,902) (	$ - - - - -

Companyname	Accumulated amount of remittance from Taiwan to Mainland China as of September 30,2022	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. Realsil Microlectronics Corp. Realtek Semiconductor (Shan Zhen) Corp. RayMX Microelectronics Corp. Suzhou Pankore Integrated Circuit Technology Co. Ltd.	114,275 $ 888,804 158,715 117,474 44,752	114,275 $ 888,804 158,715 117,474 44,752	$ 27,976,643

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 nine-month period ended September 30, 2022 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 relates to income and expenses which were re-translated at the average exchange rate from January 1, 2022 to September 30, 2022, others were re-translated at the exchange rate prevailing at the end of the financial reporting period.

Table 8

AI assistant

RT — Interim / Quarterly Report 2022

52043_rns_2022-12-09_0a44c8f2-596c-44ad-9396-9b6e40e1f920.pdf

Introduction

Scope of review

Basis for qualified conclusion

Qualified conclusion

REALTEK SEMICONDUCTOR CORPORATION AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS SEPTEMBER 30, 2022, DECEMBER 31, 2021 AND SEPTEMBER 30, 2021

REALTEK SEMICONDUCTOR CORPORATION AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS SEPTEMBER 30, 2022, DECEMBER 31, 2021 AND SEPTEMBER 30, 2021

REALTEK SEMICONDUCTOR CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

FOR THE THREE-MONTH AND NINE-MONTH PERIODS ENDED SEPTEMBER 30, 2022 AND 2021

REALTEK SEMICONDUCTOR CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

FOR THE THREE-MONTH AND NINE-MONTH PERIODS ENDED SEPTEMBER 30, 2022 AND 2021

REALTEK SEMICONDUCTOR CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY FOR THE NINE-MONTH PERIODS ENDED SEPTEMBER 30, 2022 AND 2021 (Expressed in thousands of New Taiwan dollars)

REALTEK SEMICONDUCTOR CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS

FOR THE NINE-MONTH PERIODS ENDED SEPTEMBER 30, 2022 AND 2021

REALTEK SEMICONDUCTOR CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS

FOR THE NINE-MONTH PERIODS ENDED SEPTEMBER 30, 2022 AND 2021

REALTEK SEMICONDUCTOR CORPORATION AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

FOR THE NINE-MONTH PERIODS ENDED SEPTEMBER 30, 2022 AND 2021

1. HISTORY AND ORGANISATION

2. THE DATE OF AUTHORISATION FOR ISSUANCE OF THE CONSOLIDATED FINANCIAL

STATEMENTS AND PROCEDURES FOR AUTHORISATION

3. APPLICATION OF NEW STANDARDS, AMENDMENTS AND INTERPRETATIONS

by the Group

(3) IFRSs issued by IASB but not yet endorsed by the FSC

4. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

(1) Compliance statement

(2) Basis of preparation

(3) Basis of consolidation

Ownership (%)

(4) Employee benefits

(5) Income tax

5. CRITICAL ACCOUNTING JUDGEMENTS, ESTIMATES AND KEY SOURCES OF

ASSUMPTION UNCERTAINTY

6. DETAILS OF SIGNIFICANT ACCOUNTS

(1) Cash and cash equivalents

(2) Financial assets at fair value through profit or loss

(3) Financial assets at fair value through other comprehensive income

(4) Financial assets at amortized cost

(5) Accounts receivable

(6) Inventories

(8) Property, plant and equipment

－ (9) Leasing arrangements lessee

(11) Intangible assets

(12) Short-term borrowings

(13) Other payables

- (14) Long term borrowings

(15) Pension

(16) Provision

(17) Share capital

(18) Capital surplus

(19) Retained earnings

(20) Other equity items

(21) Operating revenue

B. Contract liabilities

(22) Interest income

(23) Other income

(24) Other gains and losses

(26) Expenses by nature

(27) Employee benefit expenses

(28) Income tax

A. Income tax expense

(29) Earnings per share

(30) Supplemental cash flow information

7. RELATED PARTY TRANSACTIONS

(1) Parent and ultimate controlling party

(2) Names of related parties and relationship

(3) Significant related party transactions and balances

A. Operating revenue

(4) Key management compensation

8. PLEDGED ASSETS

(1) Contingencies

(2) Commitments

10. SIGNIFICANT DISASTER LOSS

11. SIGNIFICANT EVENTS AFTER THE BALANCE SHEET DATE

None.

12. OTHERS

(1) Capital management

(2) Financial instruments

RT Interim / Quarterly Report 2022

`－` (9) Leasing arrangements lessee