SiS - AGM Information 2021 | FinancialReports.eu

Stock Code：2363

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Silicon Integrated Systems Corp.

2021 Annual Shareholders’ Meeting

Meeting Minutes

July 15, 2021

------Disclaimer------

THIS IS A TRANSLATION OF THE MINUTES FOR THE 2021 ANNUAL SHAREHOLODERS’ MEETING (“THE MINUTES”) OF SILICON INTEGRATED SYSTEMS CORPORATION (“THE COMPANY”). THE TRANSLATION IS INTENDED FOR REFERENCE ONLY AND NO OTHER PURPOSE. THE COMPANY HEREBY DISCLAIMS ANY AND ALL LIABILITIES WHATSOEVER FOR THE TRANSLATION.THE CHINESE TEXT OF THE MINUTES SHALL GOVERN ANY AND ALL MATTERS RELATED TO THE INTERPRETATION OF THE SUBECT MATTER STATED HEREIN.

SiS 2021 Annual Shareholders’ Meeting Minutes

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Silicon Integrated Systems Corp. 2021 Annual Shareholders’ Meeting Minutes

Time: Thursday, July 15, 2021 9:00 am

Location: No. 180, Sec. 2, Gongdao 5[th] Rd., Hsinchu (Silicon Building)

Attendants: All shareholders and their proxy holders, representing 395,543,369 shares (among them, 192,775,745 shares voted via electronic transmission), or 62.68% of the total 630,967,470 outstanding shares

Directors Present: Cheng-Chien Chien, Jui-Hsiang Lo, Shur-Jung Shyi.

Chairman: Cheng-Chien Chien, the Chairman of the Board of Directors Minute Recorder: Yuan-Kwei Chen

I. Chairman announced commencement.
II. Chairman’s Speech (omitted)
III. Report Items
Report 1: 2020 Business Report
Acknowledged
Report 2: Audit Committee's Review Report on the 2020 Financial Statements
Acknowledged
Report 3: Report on the repurchase of the Company's shares
- Acknowledged
Report 4: Report on the shareholders' proposal at the Annual Shareholders' Meeting Acknowledged

SiS 2021 Annual Shareholders’ Meeting Minutes

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IV. Proposed Resolutions Proposal 1:

Proposal: Ratification of the 2020 Business Report and Financial Statements. Description:

The 2020 Business Report and Financial Statements have been approved by the Board of Directors at the 8th Meeting of the 11th Board of Directors, reviewed by the Audit Committee, which has issued a written review report, and submitted to the shareholders' meeting for ratification in accordance with the laws and regulations. Please refer to Attachment II.
For the attached Business Report, please refer to Attachment I. For the Independent Auditors' Report and the above financial statements, please refer to Attachments III to V.

Resolution: Approved and acknowledged as proposed by Board of Directors. Voting Result: 395,543,369 shares were represented at the time of voting

(including 192,775,745 shares voted via electronic transmission)

Voting Results	％of the total representation at the time of voting
Votes in favor:379,771,642 votes (including177,084,857 shares voted via electronic transmission)	96.01%
Votes against: 545,246 votes (including545,246 shares voted via electronic transmission)	0.13%
Votes invalid: 0 votes (including0 shares voted via electronic transmission)	0.00%
Votes abstained: 15,226,481 votes (including15,145,642 shares voted via electronic transmission)	3.84%

SiS 2021 Annual Shareholders’ Meeting Minutes

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Proposal 2:

Proposal: Ratification of the 2020 Earnings Distribution Proposal Description:

In 2020, the loss after tax was NT$(299,467,122), plus undistributed earnings of NT$1,226,223,965 at the beginning of 2020, reversal of special reserve of NT$2,878,280,689, remeasurement of defined benefit plans of NT$5,463,690, gain on sale - investments in equity instruments at fair value through other comprehensive income of NT$3,220,088, and provision for legal reserve of NT$(258,749,735), resulting in distributable earnings of NT$3,554,971,575 for the period. The Company proposed to distribute cash dividends of NT$504,773,976, or NT$0.8 per share, and bonus share dividends of NT$504,773,970, or NT$0.8 per share, or 80 shares per 1,000 shares.
The distribution represents the distributable earnings in or after 1998.
Please refer to the following 2020 Earnings Distribution Table

Silicon Integrated Systems Corp.

2020 Earnings Distribution Table

Silicon Integrated Systems Corp. 2020 Earnings Distribution Table
	Unit: NT$
No.	Amount
Undistributed earnings at the beginningof theperiod	1,226,223,965
Plus: Reversal of special reserve	2,878,280,689
Plus: Remeasurement of defined benefitplans	5,463,690
Plus: Gain on sale - investments in equity instruments at fair value through other comprehensive income	3,220,088
Undistributed earnings at the beginning of the period after adjustment	4,113,188,432
Loss after tax for theperiod	(299,467,122)
Less: Provision of legal reserve	(258,749,735)
Distributable earnings for theperiod	3,554,971,575
Less: Cash dividend NT$0.8/share	(504,773,976)
Less: Share dividend NT$0.8/share	(504,773,970)
Undistributed earnings at the end of theperiod	2,545,423,629

Chairman: Cheng-Chien Chien

Manager: Shur-Jung Shyi

Chief Accountant: Yuan-Kwei Chen

SiS 2021 Annual Shareholders’ Meeting Minutes

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Note1. The cash dividends are calculated by "unconditionally rounded up to the nearest dollar", and the total amount of distribution less than one dollar is recognized as other income of the Company. The Board of Directors is authorized to set the ex-dividend date. If the number of outstanding shares is subsequently affected by the repurchase of the Company's shares, the transfer or cancellation of treasury shares, the addition or issuance or withdrawal of restricted employee shares, which result in a change of the dividend distribution rate, the Board of Directors is authorized by the shareholders' meeting to make appropriate adjustments.
Note2. Upon approval by the competent authorities, the Board of Directors will set a base date for the distribution of the shares and distribute 80 bonus shares for every 1,000 shares based on the shareholding of each shareholder as recorded in the shareholders' register on the base date. If the decimal number of the number of shares held by the shareholders is insufficient to distribute one share, the shareholders may round up the number of shares. For the unrounded portion, the Chairman is authorized to invite a specific person to purchase the shares at par value. The cash payment shall be calculated up to the nearest dollar, while the amount below NT$1 will be rounded off. If the number of outstanding shares is subsequently affected by the issuance or withdrawal of restricted employee new shares, repurchase of the Company's shares, the transfer, cancellation or addition of treasury shares, which result in a change of the dividend distribution rate, the Board of Directors is authorized by the shareholders' meeting to make appropriate adjustments.

Resolution: Approved and acknowledged as proposed by Board of Directors. Voting Result: 395,543,369 shares were represented at the time of voting

(including 192,775,745 shares voted via electronic transmission)

Voting Results	％of the total representation at the time of voting
Votes in favor:379,792,799 votes (including177,106,014 shares voted via electronic transmission)	96.01%
Votes against: 565,729 votes (including565,729 shares voted via electronic transmission)	0.14%
Votes invalid: 0 votes (including0 shares voted via electronic transmission)	0.00%
Votes abstained: 15,184,841 votes (including15,104,002 shares voted via electronic transmission)	3.83%

SiS 2021 Annual Shareholders’ Meeting Minutes

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V. Discussion Items

Proposal 1:

Proposal: Issuance of new shares by the capital increase from earnings Description:

In order to increase working capital, the Company proposed to increase capital by NT$504,773,970 through the distribution of shares dividends from the 2020 earnings, and issue 50,477,397 new ordinary shares with a par value of NT$10 per share.
The Company's current paid-in capital is NT$6,309,674,730 divided into 630,967,473 shares, of which 3 shares of treasury shares are not distributed. After the issuance of new shares, the paid-in capital is NT$6,814,448,700 divided into 681,444,870 shares.
Upon approval by the competent authorities, the Board of Directors will set a base date for the distribution of the shares and distribute 80 bonus shares for every 1,000 shares based on the shareholding of each shareholder as recorded in the shareholders' register on the base date. If the decimal number of the number of shares held by the shareholders is insufficient to distribute one share, the shareholders may round up the number of shares. For the unrounded portion, the Chairman is authorized to invite a specific person to purchase the shares at par value. The cash payment shall be calculated up to the nearest dollar, while the amount below NT$1 will be rounded off.
The rights and obligations of the new ordinary shares are the same as the issued shares.
If the number of outstanding shares is subsequently affected by the change of capital, which results in a change of the dividend distribution rate, the Board of Directors is authorized by the shareholders' meeting to make appropriate adjustments.

Resolution: Approved and acknowledged as proposed by Board of Directors. Voting Result: 395,543,369 shares were represented at the time of voting

(including 192,775,745 shares voted via electronic transmission)

Voting Results	％of the total representation at the time of voting
Votes in favor:379,810,482 votes (including177,123,697 shares voted via electronic transmission)	96.02%
Votes against: 598,484 votes (including598,484 shares voted via electronic transmission)	0.15%
Votes invalid: 0 votes (including0 shares voted via electronic transmission)	0.00%
Votes abstained: 15,134,403 votes (including15,053,564 shares voted via electronic transmission)	3.82%

SiS 2021 Annual Shareholders’ Meeting Minutes

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Proposal 2:

Proposal: Removal of the non-competition restrictions of directors Description:

According to Article 209 of the Company Law, a director who does anything for himself or on behalf of another person that is within the scope of the Company's business, shall explain to the meeting of shareholders the essential contents of such an act and secure its approval.
The directors may have investments in or serve as directors in other companies with identical or similar business as the Company. Such circumstance shall obtain approval from the shareholders' meeting. If the Company's directors meet the above conditions, the shareholders' meeting shall discuss the removal of the non-competition restriction for the Company’s directors and the legal person represented by them (in case of a juristic entity, including its representative ).

Positions concurrently held by the directors in other companies

with identical or similar business as the Company. Such circumstance shall obtain approval from the shareholders' meeting. If the Company's directors meet the above conditions, the shareholders' meeting shall discuss the removal of the non-competition restriction for the Company’s directors and the legal person represented bythem(in case of ajuristic entity,includingits representative).	with identical or similar business as the Company. Such circumstance shall obtain approval from the shareholders' meeting. If the Company's directors meet the above conditions, the shareholders' meeting shall discuss the removal of the non-competition restriction for the Company’s directors and the legal person represented bythem(in case of ajuristic entity,includingits representative).	with identical or similar business as the Company. Such circumstance shall obtain approval from the shareholders' meeting. If the Company's directors meet the above conditions, the shareholders' meeting shall discuss the removal of the non-competition restriction for the Company’s directors and the legal person represented bythem(in case of ajuristic entity,includingits representative).
Positions concurrentlyheld bythe directors in other companies
Position	Name	Name and positions concurrently held in other companies
Chairman	Cheng-Chien Chien	Chairman,HuiTongIntelligence Co.,Ltd.
Director	Shur-JungShyi	Director,HuiTongIntelligence Co.,Ltd.

Resolution: Approved and acknowledged as proposed by Board of Directors. Voting Result: 395,543,369 shares were represented at the time of voting

(including 192,775,745 shares voted via electronic transmission)

Voting Results	％of the total representation at the time of voting
Votes in favor:379,701,505 votes (including177,014,720 shares voted via electronic transmission)	95.99%
Votes against: 695,100 votes (including695,100 shares voted via electronic transmission)	0.17%
Votes invalid: 0 votes (including0 shares voted via electronic transmission)	0.00%
Votes abstained: 15,146,764 votes (including15,065,925 shares voted via electronic transmission)	3.82%

VI. Extraordinary Motions: None

VII. Adjournment: Meeting ended at 09:24 am

SiS 2021 Annual Shareholders’ Meeting Minutes

Attachment I

Silicon Integrated Systems Corp. Business Report

In 2020, the world was covered by a gloomy cloud under the impact of the COVID-19 epidemic. However, the semiconductor industry experienced rapid growth due to the demand for end products arising from the trend of working at home. As a result, the demand for components for such products exceeded production. This was reflected in the significant growth in revenue of MEMS and IC Foundry that we have invested in, which resulted in an increase in shareholders' equity by approximately NT$9.803 billion. In addition, we have also invested in HuiTong Intelligence (80% shareholding), which is engaged in AIOT services, providing network intelligent end products and remote intelligence systems. These investments are important foundations of SiS.

The Company's core business is still in touchscreen IC chips. In 2021, the Company will shift focus to the development of end products, such as touch pens, TWS microphones, smart speakers, and large display touchscreens.

2020 Business Performance

Results of the Business Plan

In the touchscreen field, we continuously devote time and effort to developing large-capacity chips for the education and industrial control markets, among others. In 2020, to improve and enhance the performance of large projection screens, the Company will also release smart presentation products featuring touchscreens, anti-ambient lights and light adjustment functions that can be applied in home, office and shopping mall presentations, education and ultra-large touchscreens up to 136" for outdoor advertisement. In addition, MEMS microphones will be installed in smart speakers and smart conference systems.

The Company's financial condition, profitability and research and development are as follows:

Financial Condition

(I) Parent Company Only Financial Statements Unit: NT$'000

Item	2020	2019	Increase(decrease)amount
Revenue	136,621	208,639	(72,018)
Grossprofit	37,230	74,653	(37,423)
Operatingloss	(414,064)	(335,281)	(78,783)
Net loss for theperiod	(299,468)	(224,691)	(74,777)

SiS 2021 Annual Shareholders’ Meeting Minutes

(II) Consolidated Financial Statements Unit: NT$'000

Item	2020	Increase(decrease)amount
Revenue	160,171	(62,781)
Grossprofit	45,135	(41,754)
Operatingloss	(447,374)	(91,798)
Net loss for theperiod	(300,090)	(75,399)

Profitability

(I) Parent Company Only Financial Statements

	Item	2020	2019
Return on assets(%)		(2.36)	(3.17)
Return on equity (%)		(2.38)	(3.21)
Ratio to paid-in capital (%)	Net operatingloss	(6.56)	(6.05)
	Net loss before tax	(4.06)	(3.92)
Netprofit margin(%)		(219.20)	(107.69)
Lossper share(NT$)		(0.47)	(0.37)
(II) Consolidated Financial Statements
	Item	2020	2019
Return on assets(%)		(2.36)	(3.17)
Return on equity (%)		(2.38)	(3.21)
Ratio to paid-in capital (%)	Net operatingloss	(7.09)	(6.42)
	Net loss before tax	(4.07)	(3.92)
Netprofit margin(%)		(187.36)	(100.78)
Lossper share(NT$)		(0.47)	(0.37)

Research and development

Continued to improve chip performance and improve the existing education, industrial control, and large projection screen markets. Develop large soft projection screen and glass system touchscreen module products, which are highly cost-effective.
Launched USI and MPP2.0 specification stylus pens and environmental color stylus pens for notebook computers.

3. Continued to develop microelectromechanical sound control products for AI applications.

Summary of 2021 Business Plan

Thank you for the support and encouragement from our shareholders, we will continue to invest in R&D resources and innovative technologies to improve the performance of our existing products and promote new modules, so as to increase revenue and return profits to our shareholders.

Sincerely,

We wish you all health and good fortune.

Chief Accountant: Yuan-Kwei Chen

Chairman: Cheng-Chien Chien

Manager: Shur-Jung Shyi

[9] 9

SiS 2021 Annual Shareholders’ Meeting Minutes

Attachment II

Silicon Integrated Systems Corp. Audit Committee's Report

The 2020 financial statements and consolidated financial statements of the Company prepared and delivered by the Board of Directors had been jointly audited by CPA Shao-Pin Kuo and Hsin-Min Hsu from EY, who are of opinion that such financial statements are sufficient to present the financial condition, operating results and cash flow of the Company. The Business Report and earnings distribution have been reviewed by the Audit Committee, which has not found any inconsistencies. Therefore, the Audit Committee hereby issues this report in compliance with Article 14-4 of the Securities and Exchange Act and Article 219 of the Company Act.

Sincerely,

2021 Annual Shareholders' Meeting of Silicon Integrated Systems Corp.

Convener of the Audit Committee: Tsi-Wang Huang

March 17, 2021

SiS 2021 Annual Shareholders’ Meeting Minutes

Independent Auditors’ Report

To Silicon Integrated Systems Corporation

Opinion

We have audited the accompanying parent company only balance sheets of Silicon Integrated Systems Corporation (“the Company”) as of December 31, 2020 and 2019, and the related parent company only statements of comprehensive income, changes in equity and cash flows for the years ended December 31, 2020 and 2019, and notes to the parent company only financial statements, including the summary of significant accounting policies (together “the parent company only financial statements”).

In our opinion, based on our audits and the reports of other auditors (please refer to the Other Matter – Making Reference to the Audits of Component Auditors section of our report), the parent company only financial statements referred to above present fairly, in all material respects, the financial position of the Company as of December 31, 2020 and 2019, and its financial performance and cash flows for the years ended December 31, 2020 and 2019, in conformity with the requirements of the Regulations Governing the Preparation of Financial Reports by Securities Issuers.

Basis for Opinion

We conducted our audits in accordance with the Regulations Governing Auditing and Attestation of Financial Statements by Certified Public Accountants and auditing standards generally accepted in the Republic of China. Our responsibilities under those standards are further described in the Auditors’ Responsibilities for the Audit of the Parent Company Only Financial Statements section of our report. We are independent of the Company in accordance with the Norm of Professional Ethics for Certified Public Accountant of the Republic of China (the “Norm”), and we have fulfilled our other ethical responsibilities in accordance with the Norm. Based on our audits and the reposts of other auditors, we believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

SiS 2021 Annual Shareholders’ Meeting Minutes

Key Audit Matters

Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of 2020 parent company only financial statements. These matters were addressed in the context of our audit of the parent company only financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.

Revenue recognition

The Company recognized NT$ 136,621 thousand as net sales for the year ended December 31, 2020. Sales of products is the main operating activity of the Company. Its sales regions include not only Taiwan but also Asia and other regions. Trade terms of sales of products under each sales order may be different. It is necessary for the Company to judge and determine the performance obligations and the timing of its satisfaction under each sales order. As a result, we determined the matter to be a key audit matter.

Our audit procedures include (but are not limited to) evaluating and testing the effectiveness of internal control which is related to the timing of revenue recognition; assessing the appropriateness of the accounting policy for revenue recognition; performing test of details on samples selected; tracing to relevant documentation of transactions, reviewing the significant terms of sales orders and agreements, identifying the performance obligations of the sales orders and agreements and timing of its satisfaction, performing cutoff procedures and reviewing sales allowance after the reporting date. Please refer to Note 4 and Note 6 in notes to the parent company only financial statements.

Non-financial asset impairment

The Company’s book value of property, plant and equipment amounted to NT$742, 862 thousand as of December 31, 2020, representing 4% of total assets. As there existed an impairment indicator of the Company’s cash-generating unit, the Company performed an impairment testing on the cashgenerating unit. After performing the testing, the Company concludes that the cash-generating unit’s net fair value is higher than its carrying amount and therefore no impairment loss is recognized. Since the estimate of net fair value involves management’s judgements and subjective assumptions, we determined the matter to be a key audit matter.

SiS 2021 Annual Shareholders’ Meeting Minutes

Our audit procedures include (but are not limited to) understanding and evaluating the management process related to assets impairment recognition and measurement, evaluating the reasonableness of the property, plant and equipment appraisal report, reviewing the calculation of the fair value of property, plant and equipment which is adopting the comparative method, and inspecting the evidence of the Company’s ownership of the perperty.

Please refer to Note 5 and Note 6 in notes to the parent company only financial statements.

Other Matter – Making Reference to the Audits of Component Auditors

We did not audit the financial statements of certain investee companies, which were audited by other auditors, whose reports thereon have been furnished to us, and our opinions expressed herein are based solely on the audit reports of the other auditors. The investment in these investee companies under equity method amounted to NT$144,111 thousand and NT$186,331 thousand, accounting for 1% and 2% of total assets as of December 31, 2020 and 2019, respectively. The related shares of losses recognized from these subsidiaries, associates and joint ventures under the equity method amounted to NT$71,392 thousand and NT$60,566 thousand, accounting for 28% and 28% of the net loss before tax for the years ended December 31, 2020 and 2019, respectively.

Responsibilities of Management and Those Charged with Governance for the Parent Company Only Financial Statements

Management is responsible for the preparation and fair presentation of the parent company only financial statements in accordance with the requirements of the Regulations Governing the Preparation of Financial Reports by Securities Issuers for such internal control as management determines is necessary to enable the preparation of the parent company only financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the parent company only financial statements, management is responsible for assessing the ability to continue as a going concern of the Company, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.

Those charged with governance, including audit committee, are responsible for overseeing the financial reporting process of the Company.

SiS 2021 Annual Shareholders’ Meeting Minutes

Auditor’s Responsibilities for the Audit of the Parent Company Only Financial Statements

Our objectives are to obtain reasonable assurance about whether the parent company only financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with auditing standards generally accepted in the Republic of China will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these parent company only financial statements.

As part of an audit in accordance with auditing standards generally accepted in the Republic of China, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:

Identify and assess the risks of material misstatement of the parent company only financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the internal control of the Company.
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.
Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the ability to continue as a going concern of the Company. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the parent company only financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the Company to cease to continue as a going concern.

SiS 2021 Annual Shareholders’ Meeting Minutes

Evaluate the overall presentation, structure and content of the parent company only financial statements, including the accompanying notes, and whether the parent company only financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the Company and its subsdiaries to express an opinion on the parent company only financial statements. We are responsible for the direction, supervision and performance of the group audit. We remain solely responsible for our audit opinion.

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.

SiS 2021 Annual Shareholders’ Meeting Minutes

From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of 2020 parent company only financial statements and are therefore the key audit matters. We describe these matters in our auditor’s report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.

Kuo, Shao-Pin

Hsu, Hsin-Min

Ernst & Young, Taiwan

March 17, 2021

Notice to Readers

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

Accordingly, the accompanying financial statements and report of independent accountants 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, Ernst & Young 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.

SiS 2021 Annual Shareholders’ Meeting Minutes

Independent Auditors’ Report

To Silicon Integrated Systems Corporation

Opinion

We have audited the accompanying consolidated balance sheets of Silicon Integrated Systems Corporation and its subsidiaries (“the Company”) as of December 31, 2020 and 2019, and the related consolidated statements of comprehensive income, changes in equity and cash flows for the years ended December 31, 2020 and 2019, and notes to the consolidated financial statements, including the summary of significant accounting policies (together “the consolidated financial statements”).

In our opinion, based on our audits and the reports of other auditors (please refer to the Other Matter – Making Reference to the Audits of Component Auditors section of our report), the consolidated financial position of the Company as of December 31, 2020 and 2019, and their consolidated financial performance and cash flows for the years ended December 31, 2020 and 2019, in conformity with the requirements of the Regulations Governing the Preparation of Financial Reports by Securities Issuers and International Financial Reporting Standards, International Accounting Standards, Interpretations developed by the International Financial Reporting Interpretations Committee or the former Standing Interpretations Committee as endorsed and became effective by Financial Supervisory Commission of the Republic of China.

Basis for Opinion

We conducted our audits in accordance with the Regulations Governing Auditing and Attestation of Financial Statements by Certified Public Accountants and auditing standards generally accepted in the Republic of China. Our responsibilities under those standards are further described in the Auditors’ Responsibilities for the Audit of the Consolidated Financial Statements section of our report. We are independent of the Company in accordance with the Norm of Professional Ethics for Certified Public Accountant of the Republic of China (the “Norm”), and we have fulfilled our other ethical responsibilities in accordance with the Norm. Based on our audits and the reposts of other auditors, we believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

SiS 2021 Annual Shareholders’ Meeting Minutes

Key Audit Matters

Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of 2020 consolidated financial statements. These matters were addressed in the context of our audit of the consolidated financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.

Revenue recognition

The Company recognized NT$160,171 thousand as net sales for the year ended December 31, 2020. Sales of products is the main operating activity of the Company. Its sales regions include not only Taiwan but also Asia and other regions. Trade terms of sales of products under each sales order may be different. It is necessary for the Company to judge and determine the performance obligations and the timing of its satisfaction under each sales order. As a result, we determined the matter to be a key audit matter.

Non-financial asset impairment

The Company’s book value of property, plant and equipment amounted to NT$749,534 thousand as of December 31, 2020, representing 4% of total assets. As there existed an impairment indicator of the Company’s cash-generating unit, the Company performed an impairment testing on the cashgenerating unit. After performing the testing, the Company concludes that the cash-generating unit’s net fair value is higher than its carrying amount and therefore no impairment loss is recognized. Since the estimate of net fair value involves management’s judgements and subjective assumptions, we determined the matter to be a key audit matter.

SiS 2021 Annual Shareholders’ Meeting Minutes

Please refer to Note 5 and Note 6 in notes to the consolidated financial statements.

Other Matter – Making Reference to the Audits of Component Auditors

We did not audit the financial statements of certain consolidated subsidiaries, whose statements reflected total assets in the amount of NT$56,463 thousand, constituting 0% of the consolidated total assets as of December 31, 2020; and total operating revenues in the amount of NT$2,625 thousand, constituting 2% of the consolidated operating revenues for the year ended December 31, 2020. Those financial statements were audited by other auditors, whose reports thereon have been furnished to us, and our opinions expressed herein are based solely on the audit reports of the other auditors.

We did not audit the financial statements of certain associates and joint ventures accounted for under the equity method whose statements are based solely on the reports of other auditors. The investment in these associates and joint ventures under equity method amounted to NT$106,599 thousand and NT$186,331 thousand, representing 1% and 2% of the consolidated total assets as of December 31, 2020 and 2019, respectively. The related shares of losses from the associates and joint ventures under the equity method amounted to NT$68,904 thousand and NT$60,566 thousand, representing 27% and 28% of the consolidated net loss before tax for the years ended December 31, 2020 and 2019, respectively.

SiS 2021 Annual Shareholders’ Meeting Minutes

Responsibilities of Management and Those Charged with Governance for the Consolidated Financial Statements

Management is responsible for the preparation and fair presentation of the consolidated financial statements in accordance with the requirements of the Regulations Governing the Preparation of Financial Reports by Securities Issuers and International Financial Reporting Standards, International Accounting Standards, Interpretations developed by the International Financial Reporting Interpretations Committee or the former Standing Interpretations Committee as endorsed by Financial Supervisory Commission of the Republic of China and for such internal control as management determines is necessary to enable the preparation of consolidated financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the consolidated financial statements, management is responsible for assessing the ability to continue as a going concern of the Company, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.

Those charged with governance, including audit committee, are responsible for overseeing the financial reporting process of the Company.

Auditor’s Responsibilities for the Audit of the Consolidated Financial Statements

Our objectives are to obtain reasonable assurance about whether the consolidated financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with auditing standards generally accepted in the Republic of China will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these consolidated financial statements.

SiS 2021 Annual Shareholders’ Meeting Minutes

Identify and assess the risks of material misstatement of the consolidated financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the internal control of the Company.
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.
Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the ability to continue as a going concern of the Company. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the consolidated financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the Company to cease to continue as a going concern.
Evaluate the overall presentation, structure and content of the consolidated financial statements, including the accompanying notes, and whether the consolidated financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the Company to express an opinion on the consolidated financial statements. We are responsible for the direction, supervision and performance of the group audit. We remain solely responsible for our audit opinion.

SiS 2021 Annual Shareholders’ Meeting Minutes

From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of 2020 consolidated financial statements and are therefore the key audit matters. We describe these matters in our auditor’s report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.

Others

We have audited and expressed an unqualified opinion on the parent company only financial statements of Silicon Integrated Systems Corporation as of and for the years ended December 31, 2020 and 2019.

Kuo, Shao-Pin

Hsu, Hsin-Min

Ernst & Young, Taiwan

March 17, 2021

Notice to Readers

SiS 2021 Annual Shareholders’ Meeting Minutes

Attachment IV SILICON INTEGRATED SYSTEMS CORPORATION As of December 31, 2020 and 2019 English Translation of the Parent Company Only Financial Statements Originally Issued in Chinese PARENT COMPANY ONLY BALANCE SHEETS (Amounts in thousands of New Taiwan Dollars)	％	12 - - - - 1 - - 13 72 3 10 - - 1 - 1 87 100
	December 31, 2019	941,156 $ 9,585 16,702 7,316 411 55,662 3,111 5,969 1,039,912 5,633,503 234,954 756,066 2,308 7,045 43,513 342 51,878 6,729,609 7,769,521 $
	％	4 - - - - 1 - - 5 90 1 4 - - - - - 95 100
	December 31, 2020	750,662 $ 9,605 16,723 11,588 21,783 57,806 2,366 3,627 874,160 15,697,723 184,392 742,862 261 5,764 - 162 57,364 16,688,528 17,562,688 $
	Notes	4, 6(1) 4, 6(3) 4, 6(4), 6(12) 4, 6(4),6(12), 7 4, 6(5) 4, 6(2) 4, 6(6) 4, 6(7) 4, 6(13) 4, 6(8) 4, 5, 6(17) 4, 5, 6(9)
	ASSETS	Current assets Cash and cash equivalents Financial assets measured at amortized cost-current Trade receivables, net Trade receivables-related parties, net Other receivables Inventories, net Prepayments Other current assets Total current assets Non-current assets Financial assets at fair value through other comprehensive income-noncurrent Investments accounted for using the equity method Property, plant and equipment Right-of-use assests Intangible assets Deferred tax assets Refundable deposits Net defined benefit assets-noncurrent Total non-current assets Total assets

SILICON INTEGRATED SYSTEMS CORPORATION PARENT COMPANY ONLY BALANCE SHEETS As of December 31, 2020 and 2019 (Amounts in thousands of New Taiwan Dollars) English Translation of the Parent Company Only Financial Statements Originally Issued in Chinese	％	- - 1 - - - 1 - - - - 1 71 - - 59 8 (37) (2) 99 100
	December 31, 2019	5,089 8,175 41,726 1,122 3,205 7,790 67,107 2,535 1,069 3,302 6,906 74,013 5,540,625 6,445 - 4,576,364 633,194 (2,878,280) (182,840) 7,695,508 7,769,521 $
	％	- - - - - - - - - - - - 36 1 1 16 5 41 - 100 100
	December 31, 2020	10,270 6,130 35,970 220 2,745 3,214 58,549 2,487 50 3,405 5,942 64,491 6,309,675 85,807 143,742 2,878,280 935,441 7,145,252 - 17,498,197 17,562,688 $
	Notes	12 7,12 12 4, 6(13),12 4, 5, 6(17) 4, 6(13),12 6(10) 4,6(10) 6(10)
	LIABILITIES AND EQUITY	Current liabilities Accounts payable Accounts payable-related parties Other payables Lease liabilities-current Other current liabilities Refund liabilities Total current liabilities Non-current liabilities Deferred tax liabilities Lease liabilities-noncurrent Guarantee deposits Total non-current liabilities Total liabilities Equity Share capital Common stock Capital surplus Retained earnings Legal reserve Special reserve Unappropriated earnings Other equity Treasury stock Total equity Total liabilities and equity

English Translation of the Parent Company Only Financial Statements Originally Issued in Chinese SILICON INTEGRATED SYSTEMS CORPORATION PARENT COMPANY ONLY STATEMENTS OF COMPREHENSIVE INCOME For the years ended December 31, 2020 and 2019 (Amounts in thousands of New Taiwan Dollars, except for earnings per share)	For the years ended December 31	%	100 (64) 36 (4) (40) (153) - (197) (161) 3 94 (1) - (39) 57 (104) (4) (108) 1 795 1 - 797 689	SiS 2021 Annual Shareholders’ Meeting Minutes 25 The accompanying notes are an integral part of the parent company only financial statements.
		2019	208,639 $ (133,986) 74,653 (7,500) (84,417) (318,030) 13 (409,934) (335,281) 5,942 196,338 (2,122) (108) (82,068) 117,982 (217,299) (7,392) (224,691) 1,291 1,658,768 2,818 (764) 1,662,113 1,437,422 $ (0.37) $ (0.37) $
		%	100 (73) 27 (16) (77) (237) - (330) (303) 2 195 (7) - (74) 116 (187) (32) (219) 4 7,338 - 1 7,343 7,124
		2020	136,621 $ (99,391) 37,230 (21,993) (105,811) (323,505) 15 (451,294) (414,064) 3,198 266,200 (10,174) (55) (101,108) 158,061 (256,003) (43,465) (299,468) 5,465 10,025,377 - 1,375 10,032,217 9,732,749 $ (0.47) $ (0.47) $
		Notes	4, 5, 6(11), 7 6(5), 6(13), 6(14), 7 6(12), 6(13), 6(14), 7 4, 6(6), 6(15) 4, 5, 6(17) 6(16) 6(9) 6(18)
		Description	Net sales Operating costs Gross profit Operating expenses Selling expenses General and administrative expenses Research and development expenses Expected credit losses Total operating expenses Operating loss Non-operating income and expenses Interest income Other income Other gains and losses Finance costs Share of profit or loss of subsidiaries, associates, and joint ventures accounted for using equity method Total non-operating income and expenses Income before income tax Income tax expense Net income Other comprehensive income Items that will not be reclassified subsequently to profit or loss Remeasurements of defined benefit pension plans Unrealized gains or losses from equity instrument investments measured at fair value through other comprehensive income Remeasurements of defined benefit pension plans of subsidiaries, associates and joint ventures accounted for using equity method Items that may be reclassified subsequently to profit or loss Exchange differences resulting from translating the financial statements of foreign operations Other comprehensive income, net of tax Total comprehensive income Earnings per share (NTD) Basic Earnings Per Share (in New Taiwan Dollars) Diluted Earnings Per Share (in New Taiwan Dollars)

	Total equity	6,290,089 $ - (2,598) (224,691) 1,662,113 1,437,422 (29,405) - - 7,695,508 $ 7,695,508 $ - - (192,262) - 7,796 (299,468) 10,032,217 9,732,749 254,000 - 406 17,498,197 $	6,290,089 $ - (2,598) (224,691) 1,662,113 1,437,422 (29,405) - - 7,695,508 $ 7,695,508 $ - - (192,262) - 7,796 (299,468) 10,032,217 9,732,749 254,000 - 406 17,498,197 $	6,290,089 $ - (2,598) (224,691) 1,662,113 1,437,422 (29,405) - - 7,695,508 $ 7,695,508 $ - - (192,262) - 7,796 (299,468) 10,032,217 9,732,749 254,000 - 406 17,498,197 $	6,290,089 $ - (2,598) (224,691) 1,662,113 1,437,422 (29,405) - - 7,695,508 $ 7,695,508 $ - - (192,262) - 7,796 (299,468) 10,032,217 9,732,749 254,000 - 406 17,498,197 $	6,290,089 $ - (2,598) (224,691) 1,662,113 1,437,422 (29,405) - - 7,695,508 $ 7,695,508 $ - - (192,262) - 7,796 (299,468) 10,032,217 9,732,749 254,000 - 406 17,498,197 $	6,290,089 $ - (2,598) (224,691) 1,662,113 1,437,422 (29,405) - - 7,695,508 $ 7,695,508 $ - - (192,262) - 7,796 (299,468) 10,032,217 9,732,749 254,000 - 406 17,498,197 $	6,290,089 $ - (2,598) (224,691) 1,662,113 1,437,422 (29,405) - - 7,695,508 $ 7,695,508 $ - - (192,262) - 7,796 (299,468) 10,032,217 9,732,749 254,000 - 406 17,498,197 $	6,290,089 $ - (2,598) (224,691) 1,662,113 1,437,422 (29,405) - - 7,695,508 $ 7,695,508 $ - - (192,262) - 7,796 (299,468) 10,032,217 9,732,749 254,000 - 406 17,498,197 $
	Treasury stock	(220,660) $ - - - -	-	(29,405) 67,225 -	(182,840) $	(182,840) $ - - - - - - -	-	182,840 - -	- $
Other equity	Unrealized gains or losses from financial assets measured at fair value through other comprehensive income	(4,571,162) $ - - - 1,658,768	1,658,768	- - 40,080	(2,872,314) $	(2,872,314) $ - - - - - - 10,025,377	10,025,377	- (3,220) -	7,149,843 $
	Exchange differences resulting from translating the financial statements of foreign operations	(5,202) $ - - - (764)	(764)	- - -	(5,966) $	(5,966) $ - - - - - - 1,375	1,375	- - -	(4,591) $
Retained earnings	Undistributed earnings	5,470,220 $ (4,576,364) - (224,691) 4,109	(220,582)	- - (40,080)	633,194 $	633,194 $ (143,742) 1,698,084 (192,262) (769,050) - (299,468) 5,465	(294,003)	- 3,220 -	935,441 $
	Special reserve	- $ 4,576,364 - - -	-	- - -	4,576,364 $	4,576,364 $ - (1,698,084) - - - - -	-	- - -	2,878,280 $
	Legal reserve	- $ - - - -	-	- - -	- $	- $ 143,742 - - - - - -	-	- - -	143,742 $
	Capital surplus	16,268 $ - (2,598) - -	-	- (7,225) -	6,445 $	6,445 $ - - - - 7,796 - -	-	71,160 - 406	85,807 $
	Common stock	5,600,625 $ - - - -	-	- (60,000) -	5,540,625 $	5,540,625 $ - - - 769,050 - - -	-	- - -	6,309,675 $
	Description	Appropriation and distribution of 2018 retained earnings Special reserve Other changes in capital surplus Share of changes in associates and joint ventures accounted for using equity method Net loss for the year ended December 31, 2019 Other comprehensive income (loss) for the year ended December 31, 2019 Total comprehensive income (loss) Treasury stock acquired Treasury stock cancelled Disposal of equity instruments investments measured at fair value through other comprehensive income Balance as of December 31, 2019 Appropriation and distribution of 2019 retained earnings Legal reserve Special reserve Cash dividends Share dividends Other changes in capital surplus Share of changes in associates and joint ventures accounted for using equity method Net loss for the year ended December 31, 2020 Other comprehensive income (loss) for the year ended December 31, 2020 Total comprehensive income (loss) Treasury stock acquired Disposal of equity instruments investments measured at fair value through other comprehensive income Others Balance as of December 31, 2020 Balance as of January 1, 2019 Balance as of January 1, 2020

English Translation of the Parent Company Only Financial Statements Originally Issued in Chinese SILICON INTEGRATED SYSTEMS CORPORATION PARENT COMPANY ONLY STATEMENTS OF CASH FLOWS

For the years ended December 31, 2020 and 2019

(Amounts in thousands of New Taiwan Dollars)

SILICON INTEGRATED SYSTEMS CORPORATION PARENT COMPANY ONLY STATEMENTS OF CASH FLOWS For the years ended December 31, 2020 and 2019 (Amounts in thousands of New Taiwan Dollars)
Description	For theyears ended December 31
	2020	2019
Cash flows from operating activities : Net income before tax Adjustments for: The profit or loss items which did not affect cash flows: Depreciation Amortization Expected credit gains Interest expenses Interest income Dividend income Share-based payment Share of profit or loss of subsidiaries, associates, and joint ventures accounted for using the equity method Gain on disposal of property, plant and equipment Losses on disposal of investments Others Changes in operating assets and liabilities: Trade receivables Trade receivables-related parties Other receivables Other receivables-related parties Inventories Prepayments Other current assets Other operating assets Accounts payable Accounts payable-related parties Other payables Other current liabilities Cash generated from operating activities Interest received Income tax paid Net cash used in operating activities Cash flows from investing activities : Acquisition of financial assets at fair value through other comprehensive income Proceeds from disposal of financial assets at fair value through other comprehensive income Acquisition of financial assets measured at amortized cost Acquisition of investments accounted for using the equity method Acquisition of property, plant and equipment Proceeds from disposal of property, plant and equipment Decrease (Increase) in refundable deposits Acquisition of intangible assets Decrease in long-term lease receivable Dividend received Net cash provided by investing activities Cash flows from financing activities : Increase in guarantee deposits Cash payment for the principle portion of lease liabilities Cash dividends Treasury stock acquired Treasury stock sold to employees Others Net cash used in financing activities Net decrease in cash and cash equivalents Cash and cash equivalents at the beginning of the year Cash and cash equivalents at the end of the year	(256,003) $ 16,687 1,566 (15) 55 (3,198) (236,400) 71,200 101,108 467 7,157 (33) (6) (4,272) (874) - (2,144) 745 2,342 (21) 5,181 (2,045) (5,756) (5,036) (309,295) 3,293 (20,593) (326,595) - 19,550 (20) (109,426) (4,801) 1,842 180 (285) - 238,900 145,940 103 (886) (192,262) - 182,800 406 (9,839) (190,494) 941,156 750,662 $	(217,299) $ 16,470 1,234 (13) 108 (5,941) (168,344) - 82,068 (148) - - 7,769 13,376 (65) 30 12,570 7,700 2,311 (221) (8,740) 3,903 (14,101) 1,041 (266,292) 5,692 6 (260,594) (5,877) 42,986 (19) (85,698) (9,963) 148 (20) (1,437) 13,881 170,360 124,361 105 (1,499) - (29,405) - - (30,799) (167,032) 1,108,188 941,156 $

The accompanying notes are an integral part of the parent company only financial statements.

SiS 2021 Annual Shareholders’ Meeting Minutes

SILICON INTEGRATED SYSTEMS CORPORATION AND SUBSIDIARIES As of December 31, 2020 and 2019 English Translation of the Consolidated Financial Statements Originally Issued in Chinese CONSOLIDATED BALANCE SHEETS (Amounts in thousands of New Taiwan Dollars)	％	13 - - - - 1 - - 14 72 2 10 - - 1 - - 1 86 100	The accompanying notes are an integral part of the consolidated financial statements.
	December 31, 2019	971,613 $ 9,585 29,007 - 925 71,910 3,460 6,645 1,093,145 5,633,503 186,331 756,976 4,792 7,045 43,513 31 1,441 51,878 6,685,510 7,778,655 $
	％	5 - - - - 1 - - 6 89 1 4 - - - - - - 94 100
	December 31, 2020	819,360 $ 9,605 21,306 2,631 22,066 73,127 4,583 4,767 957,445 15,697,723 106,599 749,534 15,026 7,054 - 705 2,659 57,364 16,636,664 17,594,109 $
	Notes	4, 6(1) 4, 6(3), 12 4, 6(4), 6(12), 12 4, 6(4), 6(12), 7 12 4, 6(5) 4, 6(2) 4, 6(6) 4, 6(7) 4, 6(13) 4, 6(8) 4, 5, 6(17) 12 4, 5, 6(9)
	ASSETS	Current assets Cash and cash equivalents Financial assets measured at amortized cost-current Trade receivables, net Trade receivables-related parties, net Other receivables Inventories, net Prepayments Other current assets Total current assets Non-current assets Financial assets at fair value through other comprehensive income-noncurrent Investments accounted for using the equity method Property, plant and equipment Right-of-use assests Intangible assets Deferred tax assets Prepayment for equipment Refundable deposits Net defined benefit assets-noncurrent Total non-current assets Total assets

English Translation of the Consolidated Financial Statements Originally Issued in Chinese (Amounts in thousands of New Taiwan Dollars) As of December 31, 2020 and 2019 CONSOLIDATED BALANCE SHEETS SILICON INTEGRATED SYSTEMS CORPORATION AND SUBSIDIARIES	％	- - 1 - - - - 1 - - - - 1 71 - - 59 8 (37) (2) 99 - 99 100
	December 31, 2019	6,108 8,175 47,139 - 3,649 3,255 7,790 76,116 2,535 1,069 3,427 7,031 83,147 5,540,625 6,445 - 4,576,364 633,194 (2,878,280) (182,840) 7,695,508 - 7,695,508 7,778,655 $
	％	- - - - - - - - - - - - - 36 1 1 16 5 41 - 100 - 100 100
	December 31, 2020	10,270 6,130 41,258 1,706 8,293 2,988 3,214 73,859 2,487 6,783 3,405 12,675 86,534 6,309,675 85,807 143,742 2,878,280 935,441 7,145,252 - 17,498,197 9,378 17,507,575 17,594,109 $
	Notes	12 7, 12 12 4, 6(13), 12 4, 5, 6(17) 4, 6(13), 12 12 6(10) 4,6(10) 6(10) 4,6(10) 4
	LIABILITIES AND EQUITY	Current liabilities Accounts payable Accounts payable-related parties Other payables Payables on equipment Lease liabilities-current Other current liabilities Refund liabilities Total current liabilities Non-current liabilities Deferred tax liabilities Lease liabilities-noncurrent Guarantee deposits Total non-current liabilities Total liabilities Equity Share capital Common stock Capital surplus Retained earnings Legal reserve Special reserve Unappropriated earnings Other equity Treasury stock Equity attributable to owners of the parent Non-controlling interests Total equity Total liabilities and equity

																					g Minutes
English Translation of the Consolidated Financial Statements Originally Issued in Chinese SILICON INTEGRATED SYSTEMS CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME For the years ended December 31, 2020 and 2019 (Amounts in thousands of New Taiwan Dollars, except for earnings per share)	For the years ended December 31	%	100 (61) 39 (12) (43) (142) (1) (198) (159) 3 87 (2) - (27) 61 (98) (3) (101) 1 744 1 - 746 645 (101) - (101) 645 - 645																		SiS 2021 Annual Shareholders’ Meetin 30 The accompanying notes are an integral part of the consolidated financial statements.
		2019	222,952 $ (136,063)	86,889	(27,775) (96,661) (316,624) (1,405)	(442,465)	(355,576)	6,063 196,616 (3,463) (259) (60,566)	138,391	(217,185) (7,506)	(224,691)	1,291 1,658,768 2,818 (764)	1,662,113	1,437,422 $	$(224,691) -	$(224,691)	$1,437,422 -	$1,437,422	(0.37) $	(0.37) $
		%	100 (72)	28	(26) (75) (203) (3)	(307)	(279)	2 166 (6) - (43)	119	(160) (27)	(187)	3 6,259 - 1	6,263	6,076	(187) -	(187)	6,076 -	6,076
		2020	160,171 $ (115,036)	45,135	(41,542) (120,040) (325,022) (5,905)	(492,509)	(447,374)	3,316 266,612 (10,025) (195) (68,904)	190,804	(256,570) (43,520)	(300,090)	5,465 10,025,377 - 1,375	10,032,217	9,732,127 $	$(299,468) (622)	$(300,090)	$9,732,749 (622)	$9,732,127	(0.47) $	(0.47) $
		Notes	4, 5, 6(11), 14 6(5), 6(13), 6(14), 7 6(12), 6(13), 6(14), 7 4, 6(6), 6(15) 4, 5, 6(17) 6(16) 6(9) 6(18)
		Description	Net sales Operating costs Gross profit Operating expenses Selling expenses General and administrative expenses Research and development expenses Expected credit losses Total operating expenses Operating loss Non-operating income and expenses Interest income Other income Other gains and losses Finance costs Share of profit or loss of subsidiaries, associates, and joint ventures accounted for using equity method Total non-operating income and expenses Income before income tax Income tax expense Net income Other comprehensive income Items that will not be reclassified subsequently to profit or loss Remeasurements of defined benefit pension plans Unrealized gains or losses from equity instrument investments measured at fair value through other comprehensive income Remeasurements of defined benefit pension plans of subsidiaries, associates and joint ventures accounted for using equity method Items that may be reclassified subsequently to profit or loss Exchange differences resulting from translating the financial statements of foreign operations Other comprehensive income, net of tax Total comprehensive income Net income for the periods attributable to : Owners of the parent Non-controlling interests Total comprehensive income for the periods attributable to : Owners of the parent Non-controlling interests Earnings per share (NTD) Basic Earnings Per Share (in New Taiwan Dollars) Diluted Earnings Per Share (in New Taiwan Dollars)

		Total equity	6,290,089 $ - (2,598) (224,691) 1,662,113	1,437,422	(29,405) - -	7,695,508 $	7,695,508 $ - - (192,262) - 7,796 (300,090) 10,032,217	9,732,127	254,000 - 406 10,000	17,507,575 $
		Non-controlling interests	- $ - - - -	-	- - -	- $	- $ - - - - - (622) -	(622)	- - - 10,000	9,378 $
Equity attributable to owners of the parent		Equity attributable to owners of the parent	6,290,089 $ - (2,598) (224,691) 1,662,113	1,437,422	(29,405) - -	7,695,508 $	7,695,508 $ - - (192,262) - 7,796 (299,468) 10,032,217	9,732,749	254,000 - 406 -	17,498,197 $
		Treasury stock	(220,660) $ - - - -	-	(29,405) 67,225 -	(182,840) $	(182,840) $ - - - - - - -	-	182,840 - - -	- $
	Other equity	Unrealized gains or losses from financial assets measured at fair value through other comprehensive income	(4,571,162) $ - - - 1,658,768	1,658,768	- - 40,080	(2,872,314) $	(2,872,314) $ - - - - - - 10,025,377	10,025,377	- (3,220) - -	7,149,843 $
		Exchange differences resulting from translating the financial statements of foreign operations	(5,202) $ - - - (764)	(764)	- - -	(5,966) $	(5,966) $ - - - - - - 1,375	1,375	- - - -	(4,591) $
	Retained earnings	Undistributed earnings	5,470,220 $ (4,576,364) - (224,691) 4,109	(220,582)	- - (40,080)	633,194 $	633,194 $ (143,742) 1,698,084 (192,262) (769,050) - (299,468) 5,465	(294,003)	- 3,220 - -	935,441 $
		Special reserve	- $ 4,576,364 - - -	-	- - -	4,576,364 $	4,576,364 $ - (1,698,084) - - - - -	-	- - - -	2,878,280 $
		Legal reserve	- $ - - - -	-	- - -	- $	- $ 143,742 - - - - - -	-	- - - -	143,742 $
		Capital surplus	16,268 $ - (2,598) - -	-	- (7,225) -	6,445 $	6,445 $ - - - - 7,796 - -	-	71,160 - 406 -	85,807 $
		Common stock	5,600,625 $ - - - -	-	- (60,000) -	5,540,625 $	5,540,625 $ - - - 769,050 - - -	-	- - - -	6,309,675 $
		Description	Appropriation and distribution of 2018 retained earnings Special reserve Other changes in capital surplus Share of changes in associates and joint ventures accounted for using equity method Net loss for the year ended December 31, 2019 Other comprehensive income (loss) for the year ended December 31, 2019 Total comprehensive income (loss) Treasury stock acquired Treasury stock cancelled Disposal of equity instruments investments measured at fair value through other comprehensive income Balance as of December 31, 2019 Appropriation and distribution of 2019 retained earnings Legal reserve Special reserve Cash dividends Share dividends Other changes in capital surplus Share of changes in associates and joint ventures accounted for using equity method Net loss for the year ended December 31, 2020 Other comprehensive income (loss) for the year ended December 31, 2020 Total comprehensive income (loss) Treasury stock acquired Disposal of equity instruments investments measured at fair value through other comprehensive income Others Non-controlling Interests Balance as of December 31, 2020 Balance as of January 1, 2019 Balance as of January 1, 2020

English Translation of the Consolidated Financial Statements Originally Issued in Chinese SILICON INTEGRATED SYSTEMS CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS For the years ended December 31, 2020 and 2019

(Amounts in thousands of New Taiwan Dollars)

CONSOLIDATED STATEMENTS OF CASH FLOWS (Amounts in thousands of New Taiwan Dollars) For the years ended December 31, 2020 and 2019
Description	For theyears ended December 31
	2020	2019
Cash flows from operating activities : Net income before tax Adjustments for: The profit or loss items which did not affect cash flows: Depreciation Amortization Expected credit gains Interest expenses Interest income Dividend income Share-based payment Share of profit or loss of subsidiaries, associates, and joint ventures accounted for using the equity method Gain on disposal of property, plant and equipment Losses on disposal of investments Others Changes in operating assets and liabilities: Notes receivables Trade receivables Trade receivables-related parties Other receivables Other receivables-related parties Inventories Prepayments Other current assets Other operating assets Accounts payable Accounts payable-related parties Other payables Other current liabilities Cash generated from operating activities Interest received Income tax paid Net cash used in operating activities Cash flows from investing activities : Acquisition of financial assets at fair value through other comprehensive income Proceeds from disposal of financial assets at fair value through other comprehensive income Acquisition of financial assets measured at amortized cost Acquisition of investments accounted for using the equity method Acquisition of property, plant and equipment Proceeds from disposal of property, plant and equipment Decrease (increase) in refundable deposits Acquisition of intangible assets Decrease in long-term lease receivable Increase in prepaid equipment Dividend received Net cash provided by investing activities Cash flows from financing activities : Increase in guarantee deposits Cash payment for the principle portion of lease liabilities Cash dividends Treasury stock acquired Treasury stock sold to employees Change in non-controlling interests Others Net cash used in financing activities Effect of changes in exchange rate on cash and cash equivalents Net decrease in cash and cash equivalents Cash and cash equivalents at the beginning of the year Cash and cash equivalents at the end of the year	(256,570) $ 21,736 1,857 5,905 195 (3,316) (236,400) 71,200 68,904 468 7,157 (33) - 1,669 (2,631) (643) - (1,217) (1,123) 1,878 (21) 4,162 (2,045) (5,881) (4,843) (329,592) 3,411 (20,648) (346,829) - 19,550 (20) (48,807) (10,055) 1,522 (1,218) (1,872) - (674) 238,900 197,326 (22) (4,499) (192,262) - 182,800 10,000 406 (3,577) 827 (152,253) 971,613 819,360 $	(217,185) $ 20,056 1,234 1,405 259 (6,063) (168,344) - 60,566 (144) - - 299 (1,039) 3,000 (566) 4 13,004 7,440 1,939 (221) (7,761) 3,903 (12,718) 822 (300,110) 5,814 (108) (294,404) (5,877) 42,986 (19) (48,958) (10,868) 162 (277) (1,437) 13,881 (31) 170,360 159,922 100 (4,909) - (29,405) - - - (34,214) (997) (169,693) 1,141,306 971,613 $

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

SiS 2021 Annual Shareholders’ Meeting Minutes

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SiS — AGM Information 2021

52031_rns_2021-07-21_2088f3b9-f784-4a74-b881-0cccf2b29b93.pdf

Silicon Integrated Systems Corp.

2021 Annual Shareholders’ Meeting

Meeting Minutes

July 15, 2021

Silicon Integrated Systems Corp. 2021 Annual Shareholders’ Meeting Minutes

IV. Proposed Resolutions Proposal 1:

Proposal 2:

Silicon Integrated Systems Corp.

2020 Earnings Distribution Table

V. Discussion Items

Proposal 1:

Proposal 2:

VI. Extraordinary Motions: None

VII. Adjournment: Meeting ended at 09:24 am

Attachment I

Silicon Integrated Systems Corp. Business Report

2020 Business Performance

Results of the Business Plan

Financial Condition

Profitability

Research and development

Summary of 2021 Business Plan

Sincerely,

Attachment II

Silicon Integrated Systems Corp. Audit Committee's Report

Independent Auditors’ Report

Opinion

Basis for Opinion

Key Audit Matters

Revenue recognition

Non-financial asset impairment

Other Matter – Making Reference to the Audits of Component Auditors

Responsibilities of Management and Those Charged with Governance for the Parent Company Only Financial Statements

Auditor’s Responsibilities for the Audit of the Parent Company Only Financial Statements

Notice to Readers

Independent Auditors’ Report

Opinion

Basis for Opinion

Key Audit Matters

Revenue recognition

Non-financial asset impairment

Other Matter – Making Reference to the Audits of Component Auditors

Responsibilities of Management and Those Charged with Governance for the Consolidated Financial Statements

Auditor’s Responsibilities for the Audit of the Consolidated Financial Statements

Others

Notice to Readers

English Translation of the Parent Company Only Financial Statements Originally Issued in Chinese SILICON INTEGRATED SYSTEMS CORPORATION PARENT COMPANY ONLY STATEMENTS OF CASH FLOWS

English Translation of the Consolidated Financial Statements Originally Issued in Chinese SILICON INTEGRATED SYSTEMS CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS For the years ended December 31, 2020 and 2019

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SiS AGM Information 2021