SUNPLUS — Annual Report 2020

Nov 13, 2020

Sunplus Technology Company Limited and Subsidiaries

Consolidated Financial Statements for the Years Ended December 31, 2020 and 2019 and Independent Auditors' Report

DECLARATION OF CONSOLIDATION OF FINANCIAL STATEMENTS OF AFFILIATES

The companies required to be included in the consolidated financial statements of affiliates in accordance with the "Criteria Governing Preparation of Affiliation Reports, Consolidated Business Reports and Consolidated Financial Statements of Affiliated Enterprises" for the year ended December 31, 2020 are all the same as the companies required to be included in the consolidated financial statements of parent and subsidiary companies as provided in International Financial Reporting Standard No. 10 "Consolidated Financial Statements". Relevant information that should be disclosed in the consolidated financial statements of affiliates has all been disclosed in the consolidated financial statements of parent and subsidiary companies. Hence, we do not prepare a separate set of consolidated financial statements of affiliates.

Very truly yours,

Sunplus Technology Company Limited

By

CHOU-CHYE HUANG Chairman

March 29, 2021

CONSOLIDATED BALANCE SHEETS DECEMBER 31, 2020 AND 2019 (In Thousands of New Taiwan Dollars)

	2020	2019
ASSETS	Amount	%	Amount	%
CURRENT ASSETS
Cash and cash equivalents (Notes 4 and 6)	\$ 3,400,482	27	\$ 3,020,628	26
Financial assets at fair value through profit or loss - current (Notes 4 and 7)	901,857	7	1,090,679	10
Notes receivable and accounts receivable, net (Notes 4, 5, 9, 23 and 34)	1,204,798	10	832,633	7
Other receivables (Notes 4 and 34) Inventories (Notes 4 and 10)	57,982 861,050	- 7	28,159 759,211	- 7
Other financial assets - current (Notes 17 and 35)	240,334	2	119,920	1
Other current assets (Notes 17 and 34)	111,438	1	88,917	1
Total current assets	6,777,941	54	5,940,147	52
NON-CURRENT ASSETS Financial assets at fair value through profit or loss - non-current (Notes 4 and 7)	1,064,261	8	1,027,445	9
Financial assets at fair value through other comprehensive income - non-current (Notes 4 and 8)	192,528	1	189,387	2
Investments accounted for using the equity method (Notes 4 and 12)	719,696	6	695,028	6
Property, plant and equipment (Notes 4, 13 and 35)	1,971,252	16	1,968,803	17
Right-of-use assets (Notes 4 and 14) Investment properties (Notes 4 and 15)	229,277 1,015,544	2 8	241,914 1,066,797	2 9
Intangible assets (Notes 4 and 16)	328,591	3	176,233	2
Deferred tax assets (Notes 4 and 25)	33,037	-	28,754	-
Net defined benefit assets - non-current (Notes 4 and 21)	4,440	-	1,163	-
Other financial assets - non-current (Notes 17 and 35)	272,167	2	140,049	1
Other non-current assets (Note 17)	11,855	-	14,047	-
Total non-current assets	5,842,648	46	5,549,620	48
TOTAL	\$ 12,620,589	100	\$ 11,489,767	100
LIABILITIES AND EQUITY
CURRENT LIABILITIES
Short-term borrowings (Notes 18 and 35)	\$ 314,209	3	\$ 323,626	3
Contract liabilities - current (Note 23)	26,181	-	24,912	-
Accounts payable (Note 19)	450,216	4	352,155	3
Current tax liabilities (Notes 4 and 25) Lease liabilities - current (Notes 4 and 14)	155,138 12,506	1 -	52,169 11,885	1 -
Deferred revenue - current (Notes 4, 20 and 28)	46,098	1	1,568	-
Current portion of long-term bank borrowings (Note 18)	25,000	-	-	-
Other current liabilities (Note 20)	795,324	6	576,101	5
Total current liabilities	1,824,672	15	1,342,416	12
NON-CURRENT LIABILITIES Long-term borrowings (Note 18)	205,000	2	-	-
Lease liabilities - non-current (Notes 4 and 14)	219,510	2	230,251	2
Deferred revenue - non-current (Notes 4, 20 and 28)	58,300	-	58,015	-
Net defined benefit liabilities - non-current (Notes 4 and 21)	60,319	-	64,258	1
Guarantee deposits (Note 34)	219,942	2	213,579	2
Other liabilities (Note 20)	13,845	-	8,557	-
Total non-current liabilities	776,916	6	574,660	5
Total liabilities	2,601,588	21	1,917,076	17
EQUITY ATTRIBUTABLE TO OWNERS OF THE COMPANY (Notes 4, 22 and 31)
Share capital Ordinary shares	5,919,949	47	5,919,949	52
Capital surplus	500,820	4	594,432	5
Retained earnings
Legal reserve	1,712,390	13	1,942,388	17
Special reserve	276,189	2	308,452	2
Unappropriated earnings (accumulated deficits) Total retained earnings	328,894 2,317,473	3 18	(262,261) 1,988,579	(2) 17
Other equity	(261,078)	(2)	(261,026)	(2)
Treasury shares	(63,401)	(1)	(63,401)	(1)
Total equity attributable to owners of the Company	8,413,763	66	8,178,533	71
NON-CONTROLLING INTERESTS (Notes 4, 11, 22 and 31)	1,605,238	13	1,394,158	12
Total equity	10,019,001	79	9,572,691	83
TOTAL	\$ 12,620,589	100	\$ 11,489,767	100

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

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME FOR THE YEARS ENDED DECEMBER 31, 2020 AND 2019 (In Thousands of New Taiwan Dollars, Except Earnings Per Share)

	2020		2019
	Amount	%	Amount	%
NET OPERATING REVENUE (Notes 4, 23 and 34)	\$ 6,414,140	100	\$ 5,486,660	100
OPERATING COSTS (Notes 10 and 24)	3,489,044	54	3,137,755	57
GROSS PROFIT	2,925,096	46	2,348,905	43
OPERATING EXPENSES (Notes 24 and 34) Selling and marketing expenses General and administrative expenses Research and development expenses Expected credit gain (Note 9)	297,145 488,247 1,623,728 (154)	5 8 25 -	237,703 498,466 1,481,269 (73)	5 9 27 -
Total operating expenses	2,408,966	38	2,217,365	41
OTHER OPERATING INCOME AND EXPENSES	37	-	201	-
INCOME FROM OPERATIONS	516,167	8	131,741	2
NON-OPERATING INCOME AND EXPENSES (Notes 4, 14, 24, 28 and 34) Interest income Other income Other gains and losses Finance costs Share of profit (loss) of associates	24,052 117,804 126,748 (15,746) 15,713	- 2 2 - -	24,578 131,538 1,127 (24,849) (19,915)	- 2 - - -
Total non-operating income and expenses	268,571	4	112,479	2
PROFIT BEFORE INCOME TAX	784,738	12	244,220	4
INCOME TAX EXPENSE (Notes 4 and 25)	165,911	2	69,468	1
NET PROFIT FOR THE YEAR	618,827	10	174,752	3
OTHER COMPREHENSIVE INCOME (LOSS) Items that will not be reclassified subsequently to profit or loss (Notes 4 and 22): Remeasurement of defined benefit plans Unrealized gain (loss) on investments in equity instruments at fair value through other comprehensive income Share of the other comprehensive income (loss) of associates accounted for using the equity method	6,780 (3,215) 7,231	- - -	4,864 (21,444) 3,789	- - -
				(Continued)

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME FOR THE YEARS ENDED DECEMBER 31, 2020 AND 2019 (In Thousands of New Taiwan Dollars, Except Earnings Per Share)

	2020		2019
	Amount	%	Amount	%
Items that may be reclassified subsequently to profit or loss (Notes 4 and 22):
Exchange differences on translating the financial statements of foreign operations Share of other comprehensive income (loss) of associates accounted for using the equity	\$ (7,150)	-	\$ (84,888)	(2)
method	2,072	-	(4,394)	-
Other comprehensive income (loss) for the year, net of income tax	5,718	-	(102,073)	(2)
TOTAL COMPREHENSIVE INCOME FOR THE YEAR	\$ 624,545	10	\$ 72,679	1
NET PROFIT ATTRIBUTABLE TO:
Owners of the Company	\$ 323,403	5	\$ 15,309	-
Non-controlling interests	295,424	5	159,443	3
	\$ 618,827	10	\$ 174,752	3
TOTAL COMPREHENSIVE INCOME (LOSS) ATTRIBUTABLE TO:
Owners of the Company	\$ 326,913	5	\$ (77,049)	(2)
Non-controlling interests	297,632	5	149,728	3
	\$ 624,545	10	\$ 72,679	1
EARNINGS PER SHARE (Note 26)
Basic	\$ 0.55		\$ 0.03
Diluted	\$ 0.55		\$ 0.03

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

STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY FOR THE YEARS ENDED DECEMBER 31, 2020 AND 2019 (In Thousands of New Taiwan Dollars)

					Equity Attributable to Owners of the Company
							Other Equity
								Unrealized Gain
					Retained Earnings		Exchange Differences on	(Loss) on Financial Assets
		Share Capital Issued and				Unappropriated	Translating the	at Fair Value
	Share (Thousands)	Outstanding Amount	Capital Surplus	Legal Reserve	Special Reserve	Earnings (Deficits not yet Compensated)	Financial Statements of Foreign Operations	Through Other Comprehensive Income	Treasury Shares	Total	Non-controlling Interests	Total Equity
BALANCE AT JANUARY 1, 2019	591,995	\$ 5,919,949	\$ 801,398	\$ 1,941,826	\$ 67,279	\$ 241,734	\$ (138,875)	\$ (303,968)	\$ (63,401)	\$ 8,465,942	\$ 1,401,664	\$ 9,867,606
Appropriation of 2018 earnings
Legal reserve	-	-	-	562	-	(562)	-	-	-	-	-	-
Special reserve Cash dividends to shareholders	- -	- -	- -	- -	241,173 -	(241,173) -	- -	- -	- -	- -	- -	- -
Changes in capital surplus from investments in associates accounted for using the equity method	-	-	4,709	-	-	-	-	-	-	4,709	-	4,709
Issuance of cash dividends from capital surplus	-	-	(213,118)	-	-	-	-	-	-	(213,118)	-	(213,118)
Difference between the consideration and carrying amount of subsidiaries during
actual disposal or acquisition	-	-	162	-	-	-	-	-	-	162	-	162
Changes in percentage of ownership interest in subsidiaries	-	-	-	-	-	(3,394)	-	-	-	(3,394)	-	(3,394)
Net profit for the year ended December 31, 2019	-	-	-	-	-	15,309	-	-	-	15,309	159,443	174,752
Other comprehensive income (loss) for the year ended December 31, 2019, net of income tax	-	-	-	-	-	5,339	(79,905)	(17,792)	-	(92,358)	(9,715)	(102,073)
Total comprehensive income (loss) for the year ended December 31, 2019	-	-	-	-	-	20,648	(79,905)	(17,792)	-	(77,049)	149,728	72,679
Adjustment of capital surplus for the Company Cash dividends received by subsidiaries	-	-	1,281	-	-	-	-	-	-	1,281	-	1,281
Decrease in non-controlling interests	-	-	-	-	-	-	-	-	-	-	(157,234)	(157,234)
Disposals of investments in equity instruments designated as at fair value through
other comprehensive income	-	-	-	-	-	(279,514)	-	279,514	-	-	-	-
BALANCE AT DECEMBER 31, 2019	591,995	5,919,949	594,432	1,942,388	308,452	(262,261)	(218,780)	(42,246)	(63,401)	8,178,533	1,394,158	9,572,691
Appropriation of 2019 earnings
Legal reserve used to cover accumulated deficits Special reserve	- -	- -	- -	(229,998) -	- (32,263)	229,998 32,263	- -	- -	- -	- -	- -	- -
Changes in capital surplus from investments in associates accounted for using the equity method	-	-	15,786	-	-	-	-	-	-	15,786	-	15,786
Issuance of cash dividends from capital surplus	-	-	(177,598)	-	-	-	-	-	-	(177,598)	-	(177,598)
Difference between the consideration and carrying amount of subsidiaries during actual disposal or acquisition	-	-	67,132	-	-	-	-	2,112	-	69,244	-	69,244
Changes in percentage of ownership interest in subsidiaries	-	-	-	-	-	(183)	-	-	-	(183)	-	(183)
Net profit for the year ended December 31, 2020	-	-	-	-	-	323,403	-	-	-	323,403	295,424	618,827
Other comprehensive income (loss) for the year ended December 31, 2020, net of
income tax	-	-	-	-	-	6,846	(9,243)	5,907	-	3,510	2,208	5,718
Total comprehensive income (loss) for the year ended December 31, 2020	-	-	-	-	-	330,249	(9,243)	5,907	-	326,913	297,632	624,545
Adjustment of capital surplus for the Company Cash dividends received by subsidiaries	-	-	1,068	-	-	-	-	-	-	1,068	-	1,068
Decrease in non-controlling interests	-	-	-	-	-	-	-	-	-	-	(86,552)	(86,552)
Disposals of investments in equity instruments designated as at fair value through other comprehensive income	-	-	-	-	-	(1,172)	-	1,172	-	-	-	-
BALANCE AT DECEMBER 31, 2020	591,995	\$ 5,919,949	\$ 500,820	\$ 1,712,390	\$ 276,189	\$ 328,894	\$ (228,023)	\$ (33,055)	\$ (63,401)	\$ 8,413,763	\$ 1,605,238	\$ 10,019,001

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

CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE YEARS ENDED DECEMBER 31, 2020 AND 2019 (In Thousands of New Taiwan Dollars)

	2020	2019
CASH FLOWS FROM OPERATING ACTIVITIES
Income before income tax	\$ 784,738	\$ 244,220
Adjustments for:
Depreciation expenses	301,074	282,554
Amortization expenses Expected credit loss reversed on trade receivables	89,948 (154)	77,812 (73)
Net gain on fair value change of financial assets at fair value through
profit or loss	(122,742)	(17,879)
Finance costs	15,746	24,849
Interest income	(24,052)	(24,578)
Dividend income	(29,412)	(28,815)
Compensation costs of share-based payments	9,408	-
Share of profits of associates	(15,713)	19,915
Gain on disposal of property, plant and equipment	(28)	(161)
Gain on disposal of intangible assets	-	(39)
(Gain) loss on disposal of subsidiaries	(7,795)	43
Net (gain) loss on foreign currency exchange	(16,092)	8,984
Unrealized loss on transactions with associates and joint ventures	2,541	-
Gain on lease modification	(9)	(1)
Changes in operating assets and liabilities:
Decrease (increase) in trade receivables	(377,153)	114,248
Decrease in other receivables	5,655	41,197
Decrease (increase) in inventories	(101,839)	59,737
Increase in other current assets	(13,530)	(132)
Increase in net defined benefits assets - non-current	(3,277)	(1,163)
Increase (decrease) in trade payables	97,960	(130,606)
Increase in contract liabilities	1,269	17,401
Decrease in deferred revenue	(1,559)	(1,629)
Increase in other current liabilities	216,960	4,465
Increase (decrease) in defined benefits liabilities - non-current	2,841	(10,191)
Cash generated from operations	814,785	680,158
Interest received	19,314	26,584
Dividends received	41,756	45,274
Interest paid	(16,509)	(27,923)
Income tax paid	(67,225)	(72,440)
Net cash generated from operating activities	792,121	651,653
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of financial assets at FVTOCI	(10,004)	-
Proceeds from the sale of financial assets at FVTOCI	2,628	25,990
Purchase of financial assets at FVTPL	(1,447,591)	(1,588,698)
Proceeds from the sale of financial assets at FVTPL	1,687,133	1,572,327
Acquisition of associates	(2,500)	-
Net cash outflow on acquisition of subsidiaries (Note 29)	-	(48,215)
		(Continued)

CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE YEARS ENDED DECEMBER 31, 2020 AND 2019 (In Thousands of New Taiwan Dollars)

	2020	2019
Proceeds from disposal of subsidiaries	\$ (866)	\$ (744)
Payments for property, plant and equipment	(194,880)	(138,970)
Proceeds from the disposal of property, plant and equipment	590	4,239
Increase in refundable deposits	(842)	(459)
Decrease in refundable deposits	3,004	1,871
Payments for intangible assets	(249,613)	(78,623)
Proceeds from disposal of intangible assets	-	484
Payments for investment properties	(5,073)	(1,488)
Decrease (increase) on other financial assets	(196,789)	10,909
Net cash used in investing activities	(414,803)	(241,377)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from short-term borrowings	-	15,000
Repayments of short-term borrowings	(26,656)	-
Proceeds from long-term borrowings	230,000	-
Repayments of long-term borrowings	-	(248,544)
Proceeds of guarantee deposits received	19,918	22,168
Refunds of guarantee deposits received	(4,987)	(33,729)
Repayment of principal portion of lease liabilities	(13,308)	(11,303)
Increase in other liabilities	2,014	4,758
Cash dividends paid	(176,530)	(211,837)
Dividends paid to non-controlling interests	(139,531)	(157,520)
Partial disposal of interests in subsidiaries without a loss of control	101,014	-
Decrease (increase) in non-controlling interests	12,000	(2,184)
Net cash generated from (used in) financing activities	3,934	(623,191)
EFFECTS OF EXCHANGE RATE CHANGES ON THE BALANCE OF CASH HELD IN FOREIGN CURRENCIES	(1,398)	(2,178)
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS	379,854	(215,093)
CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE YEAR	3,020,628	3,235,721
CASH AND CASH EQUIVALENTS AT THE END OF THE YEAR	\$ 3,400,482	\$ 3,020,628

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

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEARS ENDED DECEMBER 31, 2020 AND 2019 (In Thousands of New Taiwan Dollars, Unless Stated Otherwise)

1. GENERAL INFORMATION

Sunplus Technology Company Limited (the "Company") was established in August 1990. It researches, develops, designs, tests and sells high quality, high value-added consumer integrated circuits (ICs). Its products are based on core technologies in such areas as multimedia audio/video, single-chip microcontrollers and digital signal processors. These technologies are used to develop hundreds of products including various ICs: liquid crystal display, microcontroller, multimedia, voice/music, and application-specific. Sunplus' shares have been listed on the Taiwan Stock Exchange since January 2000. Some of its shares have been issued in the form of global depositary receipts (GDRs), which have been listed on the London Stock Exchange since March 2001 (refer to Note 22).

Following is a diagram of the relationship and ownership percentages between Sunplus and its subsidiaries (collectively, the "Group") as of December 31, 2020:

The consolidated financial statements are presented in the Group's functional currency, the New Taiwan dollar.

2. APPROVAL OF FINANCIAL STATEMENTS

The consolidated financial statements were approved by the Company's board of directors and authorized for issue on March 29, 2021.

3. APPLICATION OF NEW, AMENDED AND REVISED STANDARDS AND INTERPRETATIONS

a. Initial application of the International Financial Reporting Standards (IFRS), International Accounting Standards (IAS), Interpretations of IFRS (IFRIC), and Interpretations of IAS (SIC) endorsed and issued into effect by the Financial Supervisory Commission (FSC)

Except for the following, the initial application of the amendments to the Regulations Governing the Preparation of Financial Reports by Securities Issuers and the IFRSs endorsed and issued into effect by the FSC did not have any material impact on the Company's accounting policies:

1) Amendment to IFRS 16 "Covid-19-Related Rent Concessions"

The Group elected to apply the practical expedient provided in the amendment to IFRS 16 with respect to rent concessions negotiated with the lessor as a direct consequence of the COVID-19. The related accounting policies are stated in Note 4. Before the application of the amendment, the Group shall determine whether the abovementioned rent concessions shall be accounted for as lease modifications.

The Group applied the amendment from January 1, 2020. Because the abovementioned rent concessions affect only in 2020, retrospective application of the amendment has no impact on the retained earnings as of January 1, 2020.

b. The IFRSs endorsed by the Financial Supervisory Commission (FSC) for application starting from 2021

New IFRSs	Effective Date Announced by IASB
Amendments to IFRS 4 "Extension of the Temporary Exemption from Applying IFRS 9" Amendments to IFRS 9, IAS 39, IFRS 7, IFRS 4 and IFRS 16 "Interest Rate Benchmark Reform - Phase 2"	Effective immediately upon promulgation by the IASB January 1, 2021

As of the date the consolidated financial statements were authorized for issue, the Group is continuously assessing the possible impact that the application of other standards and interpretations will have on the Group's financial position and financial performance and will disclose the relevant impact when the assessment is completed.

c. New IFRSs in issue but not yet endorsed and issued into effect by the FSC

	Effective Date
New IFRSs	Announced by IASB (Note 1)
"Annual Improvements to IFRS Standards 2018-2020"	January 1, 2022 (Note 2)
Amendments to IFRS 3 "Reference to the Conceptual Framework"	January 1, 2022 (Note 3)
Amendments to IFRS 10 and IAS 28 "Sale or Contribution of Assets	To be determined by IASB
between an Investor and its Associate or Joint Venture"
IFRS 17 "Insurance Contracts"	January 1, 2023
Amendments to IFRS 17	January 1, 2023
Amendments to IAS 1 "Classification of Liabilities as Current or	January 1, 2023
Non-current"
Amendments to IAS 1 "Disclosure of Accounting Policies"	January 1, 2023 (Note 6)
Amendments to IAS 8 "Definition of Accounting Estimates"	January 1, 2023 (Note 7)
Amendments to IAS 16 "Property, Plant and Equipment - Proceeds	January 1, 2022 (Note 4)
before Intended Use"
Amendments to IAS 37 "Onerous Contracts - Cost of Fulfilling a	January 1, 2022 (Note 5)
Contract"

• Note 1: Unless stated otherwise, the above New IFRSs are effective for annual reporting periods beginning on or after their respective effective dates.
• Note 2: The amendments to IFRS 9 will be applied prospectively to modifications and exchanges of financial liabilities that occur on or after the annual reporting periods beginning on or after January 1, 2022. The amendments to IAS 41 "Agriculture" will be applied prospectively to the fair value measurements on or after the annual reporting periods beginning on or after January 1, 2022. The amendments to IFRS 1 "First-time Adoptions of IFRSs" will be applied retrospectively for annual reporting periods beginning on or after January 1, 2022.
• Note 3: The amendments are applicable to business combinations for which the acquisition date is on or after the beginning of the annual reporting period beginning on or after January 1, 2022.
• Note 4: The amendments are applicable to property, plant and equipment that are brought to the location and condition necessary for them to be capable of operating in the manner intended by management on or after January 1, 2021.
• Note 5: The amendments are applicable to contracts for which the entity has not yet fulfilled all its obligations on January 1, 2022.
• Note 6: The amendments will be applied prospectively for annual reporting periods beginning on or after January 1, 2023.
• Note 7: The amendments are applicable to changes in accounting estimates and changes in accounting policies that occur on or after the beginning of the annual reporting period beginning on or after January 1, 2023.
• 1) Amendments to IFRS 10 and IAS 28 "Sale or Contribution of Assets between an Investor and its Associate or Joint Venture"

The amendments stipulate that, when the Group sells or contributes assets that constitute a business (as defined in IFRS 3) to an associate, the gain or loss resulting from the transaction is recognized in full. Also, when the Group loses control of a subsidiary that contains a business but retains significant influence, the gain or loss resulting from the transaction is recognized in full.

Conversely, when the Group sells or contributes assets that do not constitute a business to an associate, the gain or loss resulting from the transaction is recognized only to the extent of the Group's interest as an unrelated investor in the associate, i.e., the Group's share of the gain or loss is eliminated. Also, when the Group loses control of a subsidiary that does not contain a business but retains significant influence over an associate, the gain or loss resulting from the transaction is recognized only to the extent of the Group's interest as an unrelated investor in the associate, i.e., the Group's share of the gain or loss is eliminated.

2) Amendments to IAS 1 "Classification of Liabilities as Current or Non-current"

The amendments clarify that for a liability to be classified as non-current, the Group shall assess whether it has the right at the end of the reporting period to defer settlement of the liability for at least twelve months after the reporting period. If such rights are in existence at the end of the reporting period, the liability is classified as non-current regardless of whether the Group will exercise that right. The amendments also clarify that, if the right to defer settlement is subject to compliance with specified conditions, the Group must comply with those conditions at the end of the reporting period even if the lender does not test compliance until a later date.

The amendments stipulate that, for the purpose of liability classification, the aforementioned settlement refers to a transfer of cash, other economic resources or the Group's own equity instruments to the counterparty that results in the extinguishment of the liability. However, if the terms of a liability that could, at the option of the counterparty, result in its settlement by a transfer of the Group's own equity instruments, and if such option is recognized separately as equity in accordance with IAS 32 "Financial Instruments: Presentation", the aforementioned terms would not affect the classification of the liability.

3) Amendments to IAS 1 "Disclosure of Accounting Policies"

The amendments specify that the Group should refer to the definition of material to determine its material accounting policy information to be disclosed. Accounting policy information is material if it can reasonably be expected to influence decisions that the primary users of general purpose financial statements make on the basis of those financial statements. The amendments also clarify that:

• accounting policy information that relates to immaterial transactions, other events or conditions is immaterial and need not be disclosed;
• the Group may consider the accounting policy information as material because of the nature of the related transactions, other events or conditions, even if the amounts are immaterial; and
• not all accounting policy information relating to material transactions, other events or conditions is itself material.

The amendments also illustrate that accounting policy information is likely to be considered as material to the financial statements if that information relates to material transactions, other events or conditions and:

• a) the Group changed its accounting policy during the reporting period and this change resulted in a material change to the information in the financial statements;
• b) the Group chose the accounting policy from options permitted by the standards;
• c) the accounting policy was developed in accordance with IAS 8 "Accounting Policies, Changes in Accounting Estimates and Errors" in the absence of an IFRS that specifically applies;
• d) the accounting policy relates to an area for which the Group is required to make significant judgements or assumptions in applying an accounting policy, and the Group discloses those judgements or assumptions; or
• e) the accounting is complex and users of the financial statements would otherwise not understand those material transactions, other events or conditions.
• 4) Amendments to IAS 8 "Definition of Accounting Estimates"

The amendments define that accounting estimates are monetary amounts in financial statements that are subject to measurement uncertainty. In applying accounting policies, the Group may be required to measure items at monetary amounts that cannot be observed directly and must instead be estimated. In such a case, the Group uses measurement techniques and inputs to develop accounting estimates to achieve the objective. The effects on an accounting estimate of a change in a measurement technique or a change in an input are changes in accounting estimates unless they result from the correction of prior period errors.

Except for the above impact, as of the date the consolidated financial statements were authorized for issue, the Group is continuously assessing the possible impact that the application of other standards and interpretations will have on the Group's financial position and financial performance and will disclose the relevant impact when the assessment is completed.

4. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

a. Statement of Compliance

The consolidated financial statements have been prepared in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers, and IFRSs as endorsed and issued into effect by the FSC.

b. Basis of preparation

The consolidated financial statements have been prepared on the historical cost basis except for financial instruments that are measured at fair values, and net defined benefit liabilities which are measured at the present value of the defined benefit obligation less the fair value of plan assets.

The fair value measurements are grouped into Levels 1 to 3 based on the degree to which the fair value measurement inputs are observable and the significance of the inputs to the fair value measurement in its entirety, which are described as follows:

• 1) Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities;
• 2) Level 2 inputs are inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e., as prices) or indirectly (i.e., derived from prices); and
• 3) Level 3 inputs are unobservable inputs for the asset or liability.
• c. Classification of current and non-current assets and liabilities

Current assets include:

• Assets held primarily for the purpose of trading;
• Assets expected to be realized within 12 months after the reporting period; and
• Cash and cash equivalents unless the asset is restricted from being exchanged or used to settle a liability for at least 12 months after the reporting period.

Current liabilities include:

• Liabilities held primarily for the purpose of trading;
• Liabilities due to be settled within 12 months after the reporting period; and
• Liabilities for which the Group does not have an unconditional right to defer settlement for at least 12 months after the reporting period.

Assets and liabilities that are not classified as current are classified as non-current.

d. Basis of consolidation

The consolidated financial statements incorporate the financial statements of the Company and the entities controlled by the Company (i.e., its subsidiaries).

Income and expenses of subsidiaries disposed of during the period are included in the consolidated statement of comprehensive income from the effective dates of disposal, as appropriate.

When necessary, adjustments are made to the financial statements of subsidiaries to bring their accounting policies into line with those of the Group.

All intra-group transactions, balances, income and expenses are eliminated in full upon consolidation. Total comprehensive income of subsidiaries is attributed to the owners of the Company and to the non-controlling interests even if this results in the non-controlling interests having a deficit balance.

Changes in the Group's ownership interests in subsidiaries that do not result in the Group losing control over the subsidiaries are accounted for as equity transactions. The carrying amounts of the Group's interests and the non-controlling interests are adjusted to reflect the changes in their relative interests in the subsidiaries. Any difference between the amount by which the non-controlling interests are adjusted and the fair value of the consideration paid or received is recognized directly in equity and attributed to the owners of the Company.

See Note 11 and Tables 6 and 7 for detailed information on subsidiaries (including percentages of ownership and main businesses).

e. Foreign currencies

In preparing the financial statements of each individual entity, transactions in currencies other than the entity's functional currency (i.e., foreign currencies) are recognized at the rates of exchange prevailing at the dates of the transactions.

At the end of each reporting period, monetary items denominated in foreign currencies are retranslated at the rates prevailing at that date. Exchange differences on monetary items arising from settlement or translation are recognized in profit or loss in the period.

Non-monetary items measured at fair value that are denominated in foreign currencies are retranslated at the rates prevailing at the date when the fair value was determined. Exchange differences arising on the retranslation of nonmonetary items are included in profit or loss for the period except for exchange differences arising from the retranslation of nonmonetary items in respect of which gains and losses are recognized directly in other comprehensive income, in which case, the exchange differences are also recognized directly in other comprehensive income.

Non-monetary item denominated in a foreign currency and measured at historical cost is stated at the reporting currency as originally translated from the foreign currency.

For the purpose of presenting consolidated financial statements, the financial statements of the Company's foreign operations (including subsidiaries and associates) that are prepared using functional currencies which are different from the currency of the Company are translated into the presentation currency, the New Taiwan dollar, as follows: Assets and liabilities are translated at the exchange rates prevailing at the end of the reporting period; and income and expense items are translated at the average exchange rates for the period. The resulting currency translation differences are recognized in other comprehensive income (attributed to the owners of the Company and non-controlling interests as appropriate).

On the disposal of a foreign operation (i.e., a disposal of the Company's entire interest in a foreign operation, or a disposal involving the loss of control over a subsidiary that includes a foreign operation that includes a foreign operation of which the retained interest becomes a financial asset), all of the exchange differences accumulated in equity in respect of that operation attributable to the owners of the Company are reclassified to profit or loss.

f. Inventories

Inventories consist of raw materials, supplies, finished goods and work in progress and are stated at the lower of cost or net realizable value. Inventory write-downs are made by item, except where it may be appropriate to group similar or related items. The net realizable value is the estimated selling price of inventories less all estimated costs of completion and costs necessary to make the sale. The inventories of Sunplus Technology Company Limited, Generalplus Technology Inc., Sunplus Innovation Technology Inc., Sunplus mMobile Inc., iCatch Technology Inc., Sunplus mMedia Inc., Jumplux Technology and Sunext Technology Co., Ltd. are generally recorded at standard cost. On the balance sheet date, the cost is adjusted to approximate weighted-average cost method. Other subsidiaries' inventories are recorded at the weighted-average cost.

g. Investments in associates

An associate is an entity over which the Group has significant influence and that is not a subsidiary.

The Group uses the equity method to account for its investments in associates.

Under the equity method, investments in an associate is initially recognized at cost and adjusted thereafter to recognize the Group's share of the profit or loss and other comprehensive income of the associate. The Group also recognizes the changes in the Group's share of the equity of associates.

Any excess of the cost of acquisition over the Group's share of the net fair value of the identifiable assets and liabilities of an associate at the date of acquisition is recognized as goodwill, which is included within the carrying amount of the investment and is not amortized. Any excess of the Group's share of the net fair value of the identifiable assets and liabilities over the cost of acquisition, after reassessment, is recognized immediately in profit or loss.

When the Company subscribes for additional new shares of an associate at a percentage different from its existing ownership percentage, the resulting carrying amount of the investment differs from the amount of the Group's proportionate interest in the associate. The Group records such a difference as an adjustment to investments with the corresponding amount charged or credited to capital surplus changes in capital surplus from investments in associates and joint ventures accounted for using the equity method. If the Group's ownership interest is reduced due to its additional subscription of the new shares of the associate, the proportionate amount of the gains or losses previously recognized in other comprehensive income in relation to that associate is reclassified to profit or loss on the same basis as would be required had the investee directly disposed of the related assets or liabilities. When the adjustment should be debited to capital surplus, but the capital surplus recognized from investments accounted for using the equity method is insufficient, the shortage is debited to retained earnings.

When the Group's share of losses of an associate equals or exceeds its interest in that associate (which includes any carrying amount of the investment accounted for using the equity method and long-term interests that, in substance, form part of the Group's net investment in the associate), the Group discontinues recognizing its share of further loss, if any. Additional losses and liabilities are recognized only to the extent that the Group has incurred legal obligations, or constructive obligations, or made payments on behalf of that associate.

The entire carrying amount of an investment (including goodwill) is tested for impairment as a single asset by comparing its recoverable amount with its carrying amount. Any impairment loss recognized is not allocated to any asset, including goodwill, that forms part of the carrying amount of the investment. Any reversal of that impairment loss is recognized to the extent that the recoverable amount of the investment subsequently increases.

The Group discontinues the use of the equity method from the date on which its investment ceases to be an associate. Any retained investment is measured at fair value at that date, and the fair value is regarded as the investment's fair value on initial recognition as a financial asset. The difference between the previous carrying amount of the associate attributable to the retained interest and its fair value is included in the determination of the gain or loss on disposal of the associate. The Group accounts for all amounts previously recognized in other comprehensive income in relation to that associate on the same basis as would be required had that associate directly disposed of the related assets or liabilities.

When the Group transacts with its associate, profits and losses resulting from the transactions with the associate is recognized in the Group's consolidated financial statements only to the extent of interests in the associate that is not related to the Group.

h. Property, plant and equipment

Property, plant and equipment are initially measured at cost and subsequently measured at cost less accumulated depreciation and accumulated impairment loss.

The depreciation of property, plant and equipment is recognized using the straight-line method. Each significant part is depreciated separately. The estimated useful lives, residual values and depreciation methods are reviewed at the end of each reporting period, with the effect of any changes in estimate accounted for on a prospective basis.

On derecognition of an item of property, plant and equipment, the difference between the sales proceeds and the carrying amount of the asset is recognized in profit or loss.

i. Investment properties

Investment properties are properties held to earn rentals or for capital appreciation. (It includes right-of-use assets that meet the definition of investment properties.)

Investment properties are initially measured at cost, including transaction costs. Subsequent to initial recognition, investment properties are measured at cost less accumulated depreciation and accumulated impairment loss.

Depreciation is recognized using the straight-line method.

On derecognition of an investment property, the difference between the net disposal proceeds and the carrying amount of the asset is included in profit or loss.

j. Goodwill

Goodwill arising on an acquisition of a business is carried at cost as established at the date of acquisition of the business less accumulated impairment loss.

For the purposes of impairment testing, goodwill is allocated to each of the Group's cash-generating units or groups of cash-generating units (referred to as "cash-generating units") that are expected to benefit from the synergies of the combination.

A cash-generating unit to which goodwill has been allocated is tested for impairment annually or more frequently whenever there is an indication that the unit may be impaired, by comparing its carrying amount, including the attributed goodwill, with its recoverable amount. However, if the goodwill allocated to a cash-generating unit was acquired in a business combination during the current annual period, that unit shall be tested for impairment before the end of the current annual period. If the recoverable amount of the cash-generating unit is less than its carrying amount, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then pro rata to the other assets of the unit based on the carrying amount of each asset in the unit. Any impairment loss is recognized directly in profit or loss. Any impairment loss recognized for goodwill is not reversed in subsequent periods.

• k. Intangible assets
• 1) Intangible assets acquired separately

Intangible assets with finite useful lives that are acquired separately are initially measured at cost and subsequently measured at cost less accumulated amortization and accumulated impairment loss. Amortization is recognized on a straight-line basis. The estimated useful lives, residual values, and amortization methods are reviewed at the end of each reporting period, with the effect of any changes in the estimates accounted for on a prospective basis.

2) Derecognition of intangible assets

On derecognition of an intangible asset, the difference between the net disposal proceeds and the carrying amount of the asset is recognized in profit or loss.

l. Impairment of property, plant and equipment, right-of-use asset, and intangible assets other than goodwill

At the end of each reporting period, the Group reviews the carrying amounts of its property, plant and equipment, right-of-use asset and intangible assets, excluding goodwill, to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss. When it is not possible to estimate the recoverable amount of an individual asset, the Group estimates the recoverable amount of the cash-generating unit to which the asset belongs. Corporate assets are allocated to the individual cash-generating units on a reasonable and consistent basis of allocation.

Intangible assets with indefinite useful lives and intangible assets not yet available for use are tested for impairment at least annually and whenever there is an indication that the asset may be impaired.

The recoverable amount is the higher of fair value less costs to sell and value in use. If the recoverable amount of an asset or cash-generating unit is estimated to be less than its carrying amount, the carrying amount of the asset or cash-generating unit is reduced to its recoverable amount, with the resulting impairment loss recognized in profit or loss.

When an impairment loss is subsequently reversed, the carrying amount of the asset or cash-generating unit is increased to the revised estimate of its recoverable amount, but only to the extent of the carrying amount that would have been determined had no impairment loss been recognized for the asset or cash-generating unit in prior years. A reversal of an impairment loss is recognized in profit or loss.

m. Financial instruments

Financial assets and financial liabilities are recognized when the Group becomes a party to the contractual provisions of the instruments.

Financial assets and financial liabilities are initially measured at fair value. Transaction costs that are directly attributable to the acquisition or issuance of financial assets and financial liabilities (other than financial assets and financial liabilities at FVTPL) are added to or deducted from the fair value of the financial assets or financial liabilities, as appropriate, on initial recognition. Transaction costs directly attributable to the acquisition of financial assets or financial liabilities at FVTPL are recognized immediately in profit or loss.

1) Financial assets

All regular way purchases or sales of financial assets are recognized and derecognized on a trade date basis.

a) Measurement category

Financial assets are classified into the following categories: Financial assets at FVTPL, financial assets at amortized cost and investments in equity instruments at FVTOCI.

i. Financial assets at FVTPL

Financial assets is classified as at FVTPL when such a financial asset is mandatorily classified or it is designated as at FVTPL. Financial assets mandatorily classified as at FVTPL include investments in equity instruments which are not designated as at FVTOCI and debt instruments that do not meet the amortized cost criteria or the FVTOCI criteria.

Financial assets at FVTPL are subsequently measured at fair value, and any dividends or interest earned on such financial assets are recognized in other income respectively; any remeasurement gains or losses on such financial assets are recognized in other gains or losses. Fair value is determined in the manner described in Note 33: Financial Instruments.

ii. Financial assets at amortized cost

Financial assets that meet the following conditions are subsequently measured at amortized cost:

• i) The financial asset is held within a business model whose objective is to hold financial assets in order to collect contractual cash flows; and
• ii) The contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

Subsequent to initial recognition, financial assets at amortized cost, including cash and cash equivalents, other financial assets, notes and accounts receivable, other receivables and refundable deposits, are measured at amortized cost, which equals the gross carrying amount determined using the effective interest method less any impairment loss. Exchange differences are recognized in profit or loss.

Interest income is calculated by applying the effective interest rate to the gross carrying amount of a financial asset, except for:

• i) Purchased or originated credit-impaired financial assets, for which interest income is calculated by applying the credit-adjusted effective interest rate to the amortized cost of such financial assets; and
• ii) Financial assets that have subsequently become credit impaired, for which interest income is calculated by applying the effective interest rate to the amortized cost of such financial assets.

Cash equivalents include time deposits with original maturities within 12 months from the date of acquisition, which are highly liquid, readily convertible to a known amount of cash and are subject to an insignificant risk of changes in value. These cash equivalents are held for the purpose of meeting short-term cash commitments.

iii. Investments in equity instruments at FVTOCI

On initial recognition, the Group may make an irrevocable election to designate investments in equity instruments as at FVTOCI. Designation at FVTOCI is not permitted if the equity investment is held for trading or if it is contingent consideration recognized by an acquirer in a business combination.

Investments in equity instruments at FVTOCI are subsequently measured at fair value with gains and losses arising from changes in fair value recognized in other comprehensive income and accumulated in other equity. The cumulative gain or loss will not be reclassified to profit or loss on disposal of the equity investments; instead, they will be transferred to retained earnings.

Dividends on these investments in equity instruments are recognized in profit or loss when the Group's right to receive the dividends is established, unless the dividends clearly represent a recovery of part of the cost of the investment.

b) Impairment of financial assets

The Group recognizes a loss allowance for expected credit losses on financial assets at amortized cost (including trade receivables).

The Group always recognizes lifetime expected credit losses (ECLs) for trade receivables. For all other financial instruments, the Group recognizes lifetime ECLs when there has been a significant increase in credit risk since initial recognition. If, on the other hand, the credit risk on a financial instrument has not increased significantly since initial recognition, the Group measures the loss allowance for that financial instrument at an amount equal to 12-month ECLs.

Expected credit losses reflect the weighted average of credit losses with the respective risks of a default occurring as the weights. Lifetime ECLs represent the expected credit losses that will result from all possible default events over the expected life of a financial instrument. In contrast, 12-month ECLs represent the portion of lifetime ECLs that is expected to result from default events on a financial instrument that are possible within 12 months after the reporting date.

The impairment loss of all financial assets is recognized in profit or loss by a reduction in their carrying amounts through a loss allowance account.

c) Derecognition of financial assets

The Group derecognizes a financial asset only when the contractual rights to the cash flows from the asset expire or when it transfers the financial asset and substantially all the risks and rewards of ownership of the asset to another party.

On derecognition of a financial asset at amortized cost in its entirety, the difference between the asset's carrying amount and the sum of the consideration received and receivable is recognized in profit or loss. On derecognition of an investment in an equity instrument at FVTOCI, the difference between the asset's carrying amount and the sum of the consideration received and receivable is recognized in profit or loss, and the cumulative gain or loss that had been recognized in other comprehensive income is transferred directly to retained earnings, without recycling through profit or loss.

2) Financial liabilities

a) Subsequent measurement

All financial liabilities are measured at amortized cost using the effective interest method.

b) Derecognition of financial liabilities

The difference between the carrying amount of a financial liability derecognized and the consideration paid, including any non-cash assets transferred or liabilities assumed, is recognized in profit or loss.

n. Provisions

Provisions are measured at the best estimate of the discounted cash flows of the consideration required to settle the present obligation at the end of the reporting period, taking into account the risks and uncertainties surrounding the obligation.

o. Revenue recognition

The Group identifies a contract with a customer, allocates the transaction price to the performance obligations, and recognizes revenue when performance obligations are satisfied.

Unearned receipts for merchandise sales would be recognized as contract liabilities before the Group fulfills its performance obligations.

Revenue from the sale of goods

Revenue from the sale of goods comes from the sale of ICs. Sales of ICs are recognized as revenue when the goods are shipped because it is the time when the customer has full discretion over the manner of distribution and the price to sell the goods, has the primary responsibility for sales to future customers, and bears the risks of obsolescence. Trade receivables are recognized concurrently.

The Group does not recognize revenue on materials delivered to subcontractors because this delivery does not involve a transfer of control.

Other

Other mainly comes from software development.

p. Lease

At the inception of a contract, the Group assesses whether the contract is, or contains, a lease.

1) The Group as lessor

Leases are classified as finance leases whenever the terms of a lease transfer substantially all the risks and rewards of ownership to the lessee. All other leases are classified as operating leases.

When the Group subleases a right-of-use asset, the sublease is classified by reference to the right-of-use asset arising from the head lease, not with reference to the underlying asset. However, if the head lease is a short-term lease that the Group, as a lessee, has accounted for applying recognition exemption, the sublease is classified as an operating lease.

Lease payments less any lease incentives payable from operating leases are recognized as income on a straight-line basis over the terms of the relevant leases. Initial direct costs incurred in obtaining operating leases are added to the carrying amounts of the underlying assets and recognized as expenses on a straight-line basis over the lease terms.

2) The Group as lessee

The Group recognizes right-of-use assets and lease liabilities for all leases at the commencement date of a lease, except for short-term leases and low-value asset leases accounted for applying a recognition exemption where lease payments are recognized as expenses on a straight-line basis over the lease terms.

Right-of-use assets are initially measured at cost, which comprises the initial measurement of lease liabilities adjusted for lease payments made at or before the commencement date, plus any initial direct costs incurred and an estimate of costs needed to restore the underlying assets, and less any lease incentives received. Right-of-use assets are subsequently measured at cost less accumulated depreciation and impairment losses and adjusted for any remeasurement of the lease liabilities. Right-of-use assets are presented on a separate line in the consolidated balance sheets, except for those that meet the definition of investment properties. With respect to the recognition and measurement of right-of-use assets that meet the definition of investment properties, refer to Note 4(9) for the accounting policies for investment properties.

Right-of-use assets are depreciated using the straight-line method from the commencement dates to the earlier of the end of the useful lives of the right-of-use assets or the end of the lease terms.

Lease liabilities are initially measured at the present value of the lease payments, which comprise fixed payments and variable lease payments which depend on an index or a rate. The lease payments are discounted using the interest rate implicit in a lease, if that rate can be readily determined. If that rate cannot be readily determined, the lessee's incremental borrowing rate will be used.

Subsequently, lease liabilities are measured at amortized cost using the effective interest method, with interest expense recognized over the lease terms. When there is a change in a lease term or a change in future lease payments resulting from a change in an index or a rate used to determine those payments, the Group remeasures the lease liabilities with a corresponding adjustment to the right-of-use-assets. However, if the carrying amount of the right-of-use assets is reduced to zero, any remaining amount of the remeasurement is recognized in profit or loss. Lease liabilities are presented on a separate line in the consolidated balance sheets.

The Group requested the lessor for rent subsidy as a direct subsidy of the Covid-19 to change the lease payments. There is no substantive change to other terms and conditions. The Group elects to apply the practical expedient to all of the rent subsidy and, therefore, does not assess whether the rent subsidy are lease modifications. Instead, the Group recognizes the reduction in lease payment in profit or loss as a deduction of expenses of variable lease payments.

q. Government grants

Government grants are not recognized until there is reasonable assurance that the Group will comply with the conditions attached to the grants and that the grants will be received.

Government grants related to income are recognized in other income on a systematic basis over the periods in which the Group recognizes as expenses the related costs that the grants intend to compensate.

Government grants that are receivable as compensation for expenses or losses already incurred or for the purpose of giving immediate financial support to the Group with no future related costs are recognized in profit or loss in the period in which they are received.

r. Employee benefits

1) Short-term employee benefits

Liabilities recognized in respect of short-term employee benefits are measured at the undiscounted amount of the benefits expected to be paid in exchange for the related services.

2) Retirement benefits

Payments to defined contribution retirement benefit plans are recognized as expenses when employees have rendered service entitling them to the contributions.

Defined benefit costs (including service cost, net interest and remeasurement) under the defined benefit retirement benefit plans are determined using the projected unit credit method. Service cost (including current service cost and past service cost) and net interest on the net defined benefit liabilities (assets) are recognized as employee benefits expense in the period in which they occur, and the return on plan assets (excluding interest), is recognized in other comprehensive income in the period in which it occurs. Remeasurement recognized in other comprehensive income is reflected immediately in retained earnings and will not be reclassified to profit or loss.

Net defined benefit liabilities (assets) represent the actual deficit (surplus) in the Group's defined benefit plans. Any surplus resulting from this calculation is limited to the present value of any refunds from the plans or reductions in future contributions to the plans.

• s. Share-based payment arrangements
• 1) Restricted shares for employees granted to employees

The fair value at the grant date of the restricted shares for employees is expensed on a straight-line basis over the vesting period, based on the Group's best estimates of the number of shares or options that are expected to ultimately vest, with a corresponding increase in non-controlling interests. The expense is recognized in full at the grant date if the grants are vested immediately. The grant date of issued ordinary shares for cash which are reserved for employees is the date on which the board of directors approves the transaction.

When restricted shares for employees are issued, other equity - unearned employee benefits is recognized on the grant date, with a corresponding increase in capital surplus - restricted shares for employees. If restricted shares for employees are granted for consideration and the considerations received should be returned if employees resign in the vesting period, the amounts espected to be returned are recognized as payables. Dividends paid to employees on restricted shares that do not need to be returned if employees resign in the vesting period are recognized as expenses when the dividends are declared with a corresponding adjustment in retained earnings and capital surplus restricted shares for employees.

At the end of each reporting period, the Group revises its estimate of the number of restricted shares for employees that are expected to vest. The impact of the revision of the original estimates is recognized in profit or loss such that the cumulative expenses reflect the revised estimate, with a corresponding adjustment to non-controlling interests.

t. Taxation

Income tax expense represents the sum of the tax currently payable and deferred tax.

1) Current tax

Income tax payable (recoverable) is based on taxable profit (loss) for the year determined according to the applicable tax laws of each tax jurisdiction.

According to the Income Tax Law, an additional tax of inappropriate earnings is provided for as income tax in the year the shareholders approve to retain the earnings.

Adjustments of prior years' tax liabilities are added to or deducted from the current year's tax provision.

2) Deferred tax

Deferred tax is recognized on temporary differences between the carrying amounts of assets and liabilities and the corresponding tax bases used in the computation of taxable profit.

Deferred tax liabilities are generally recognized for all taxable temporary differences. Deferred tax assets are generally recognized for all deductible temporary differences and unused loss carryforwards to the extent that it is probable that taxable profits will be available against which those deductible temporary differences can be utilized.

Deferred tax liabilities are recognized for taxable temporary differences associated with investments in subsidiaries and associates, and interests in joint ventures, except where the Group is able to control the reversal of the temporary difference and it is probable that the temporary difference will not reverse in the foreseeable future. Deferred tax assets arising from deductible temporary differences associated with such investments and interests are only recognized to the extent that it is probable that there will be sufficient taxable profits against which to utilize the benefits of the temporary differences and they are expected to reverse in the foreseeable future.

The carrying amount of deferred tax assets is reviewed at the end of each reporting period and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. A previously unrecognized deferred tax asset is also reviewed at the end of each reporting period and recognized to the to the extent that it has become probable that future taxable profit will allow the deferred tax asset to be recovered.

Deferred tax liabilities and assets are measured at the tax rates that are expected to apply in the period in which the liabilities are settled or the assets are realized, based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period. The measurement of deferred tax liabilities and assets reflects the tax consequences that would follow from the manner in which The Group expects, at the end of the reporting period, to recover or settle the carrying amount of its assets and liabilities.

3) Current and deferred tax for the period

Current and deferred tax are recognized in profit or loss, except when they relate to items that are recognized in other comprehensive income or directly in equity, in which case, the current and deferred tax are also recognized in other comprehensive income or directly in equity respectively.

5. CRITICAL ACCOUNTING JUDGMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY

In the application of the Group's accounting policies, management is required to make judgments, estimations, and assumptions about the carrying amounts of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered relevant. Actual results may differ from these estimates.

The Group considers the economic implications of the COVID-19 when making its critical accounting estimates. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the period in which the estimates are revised if the revisions affect only that period or in the period of the revisions and future periods if the revisions affect both current and future periods.

Key Sources of Estimation Uncertainty

a. Estimated impairment of financial assets

The provision for impairment of trade receivables is based on assumptions about risk of default and expected loss rates. The Group uses judgment in making these assumptions and in selecting the inputs to the impairment calculation, based on the Group's historical experience, existing market conditions as well as forward looking estimates as of the end of each reporting period. Where the actual future cash inflows are less than expected, a material impairment loss may arise.

6. CASH AND CASH EQUIVALENTS

	December 31
	2020	2019
Cash on hand	\$ 5,781	\$ 6,065
Checking accounts and demand deposits	1,168,558	769,510
Cash equivalent
Time deposits in banks	2,226,143	2,245,053
	\$ 3,400,482	\$ 3,020,628

The market rate intervals of cash in bank and bank overdrafts at the end of the reporting period were as follows:

	December 31
	2020	2019
Bank balance	0.001%-2.025%	0.001%-2.25%

7. FINANCIAL ASSETS AND LIABILITIES AT FAIR VALUE THROUGH PROFIT OR LOSS

	December 31
		2020		2019
Financial assets at FVTPL - current
Financial assets classified as at FVTPL
Non-derivative financial assets
- Mutual funds	\$	641,575	\$	987,692
- Domestic unlisted shares		204,719		45,904
- Domestic listed shares		52,743		41,960
Hybrid financial assets
Non-derivative financial assets
- Securities listed in the ROC and other countries - CB		2,820		15,123
	\$	901,857	\$	1,090,679
				(Continued)

	December 31
	2020	2019
Financial liabilities at FVTPL – non-current
Financial assets classified as at FVTPL Non-derivative financial assets - Domestic and foreign unlisted shares - Private funds - Domestic and foreign listed shares - Mutual funds	\$ 686,366 327,856 35,190 14,849	\$ 658,431 260,140 33,755 75,119
	\$ 1,064,261	\$ 1,027,445 (Concluded)

8. FINANCIAL ASSETS AT FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME

	December 31
	2020	2019
Non-current
Domestic and foreign investments
Unlisted shares Listed shares	\$ 99,767 92,761	\$ 98,915 90,472
	\$ 192,528	\$ 189,387

9. NOTES AND TRADE RECEIVABLE, NET

	December 31
	2020	2019
Notes receivable
Notes receivable - operating	\$ -	\$ 300
Trade receivables
At amortized cost Gross carrying amount Less: Allowance for impairment loss	1,204,901 (103) 1,204,798	832,662 (329) 832,333
	\$ 1,204,798	\$ 832,633

Trade receivable

The average credit period on sales of goods was 30 to 60 days without interest. The Group's exposure to credit risk and external credit ratings are continuously monitored. In order to minimize credit risk, the management of the Group has delegated a team responsible for determining credit limits, credit approvals and other monitoring procedures to ensure that follow-up action is taken to recover overdue debts. In addition, the Group reviews the recoverable amount of each individual trade debt at the end of the reporting period to ensure that adequate allowance is made for possible irrecoverable amounts. In this regard, the management believes the Group's credit risk was significantly reduced.

The Group measures the loss allowance for trade receivables at an amount equal to lifetime ECLs. The expected credit losses on trade receivables are estimated using a provision matrix prepared by reference to the past default experience of the customer, the customer's current financial position, economic condition of the industry in which the customer operates, as well as the industry outlooks. As the Group's historical credit loss experience does not show significantly different loss patterns for different customer segments, the provision for loss allowance based on past due status is not further distinguished according to the Group's different customer base.

The Group writes off a trade receivable when there is evidence indicating that the debtor is in severe financial difficulty and there is no realistic prospect of recovery. For trade receivables that have been written off, the Group continues to engage in enforcement activity to attempt to recover the receivables due. Where recoveries are made, these are recognized in profit or loss.

The Group's current credit risk grading framework is shown in the following table:

December 31, 2020

	Not Overdue	Overdue 1- 60 days		Overdue 61-90 days		Overdue 91-120 days		Overdue 121 days or More		Total
Gross carrying amount Loss allowance (Lifetime ECLs)	\$1,204,689 -	\$	- -	\$	- -	\$	- -	\$	212 (103)	\$1,204,901 (103)
Amortized cost	\$1,204,689	\$	-	\$	-	\$	-	\$	109	\$1,204,798

December 31, 2019

	Not Overdue		Overdue 1- 60 days		Overdue 61-90 days		Overdue 91-120 days		Overdue 121 days or More		Total
Gross carrying amount Loss allowance (Lifetime ECLs)	\$	832,233 -	\$	90 -	\$	- -	\$	- -	\$	339 (329)	\$	832,662 (329)
Amortized cost	\$	832,233	\$	90	\$	-	\$	-	\$	10	\$	832,333

The movements of the loss allowance of trade receivables were as follows:

	For the Year Ended December 31
	2020	2019
Balance at January 1 Add: Net remeasurement of loss allowance Less: Amounts written off Foreign exchange gains and losses	\$ 329 (154) (73) 1	\$ 504 (73) (76) (26)
Balance at December 31	\$ 103	\$ 329

10. INVENTORIES

	December 31
	2020	2019
Finished goods	\$ 272,667	\$ 307,179
Work in progress	378,943	281,042
Raw materials	209,430	170,990
	\$ 861,050	\$ 759,211

The costs of inventories recognized as cost of goods sold for the years ended December 31, 2020 and 2019 were \$3,403,174 thousand and \$3,053,155 thousand, respectively.

The costs of inventories recognized as costs of goods sold for the years ended December 31, 2020 and 2019 were as follows:

	For the Year Ended December 31
	2020	2019
Inventory write - downs Income from scrap sales	\$ (6,567) 81	\$ (16,192) 103
	\$ (6,486)	\$ (16,089)

11. SUBSIDIARIES

a. The subsidiaries included in the consolidated financial statements

The information of the subsidiaries at the end of reporting period was as follows:

			Percentage of Ownership
Name of Investor	Name of Investee	Main Businesses and Products	December 31 2020	2019	Note
Sunplus	Sunplus Management Consulting	Management	100.00	100.00	-
	Ventureplus Group Inc. ("Ventureplus Group")	Investment	100.00	100.00	-
	Sunplus Technology (H.K.)	International trade	100.00	100.00	-
	Sunplus Venture	Investment	100.00	100.00	-
	Lin Shih Investment ("Lin Shih")	Investment	100.00	100.00	-
	Sunplus mMobile Inc.	Design of ICs	100.00	100.00	-
	Sunext Technology Co., Ltd. ("Sunext")	Design of ICs	92.55	92.55	-
	Sunplus Innovation Technology	Design of ICs	58.21	61.13	-
	Generalplus Technology Inc. ("Generalplus")	Design of ICs	34.30	34.30	Sunplus and its subsidiaries owned 47.99% of the equity in Generalplus Technology, Inc. and the Group had controlling interest over Generalplus Technology, Inc.; the investee is included in the consolidated financial statements
	Wei-Young Investment Inc.	Investment	100.00	100.00	-
	Russell Holdings Limited	Investment	100.00	100.00	-
	Magic Sky Limited	Investment	100.00	100.00	-
	Sunplus mMedia Inc.	Design of ICs	89.76	89.76	-
	Award Glory	Investment	100.00	100.00	-
	Jumplux Technology	Design of ICs	55.00	55.00	-
Ventureplus Group	Ventureplus Mauritius	Investment	100.00	100.00	-
Ventureplus Mauritius	Ventureplus Cayman	Investment	100.00	100.00	-
Ventureplus Cayman	Ytrip Technology	Web research and development	-	38.47	Sunplus and its subsidiaries had a 90.71% stake in Ytrip on December 31, 2019. The liquidation of Ytrip Technology was completed on June 23, 2020. Please refer to Note 30.
	Sunplus App Technology	Manufacturing and sale of computer software; system integration services and information management and education.	51.47	53.85	-
	Sunplus Prof-tek Technology (Shenzhen)	Development of computer software, system integration services, building rental services and property management	100.00	100.00	-
	Sunplus Technology (Shanghai)	Development of computer software, system integration services and building rental services	100.00	100.00	-
	SunMedia Technology	Development of computer software, system integration services and building rental services	100.00	100.00	-
	Sunplus Technology (Beijing)	Development of computer software, system integration services and building rental services	100.00	100.00	-

			Percentage of Ownership
			December 31
Name of Investor	Name of Investee	Main Businesses and Products	2020	2019	Note
Sunplus Technology (Shanghai)	Ytrip Technology	Web research and development	-	44.08	Sunplus and its subsidiaries had a 90.71% stake in Ytrip on December 31, 2019. The liquidation of Ytrip Technology was completed on June 23, 2020. Please refer to Note 30.
	Jsilicon Technology	Software Development and IC	100.00	100.00	-
	Chongqing CQPlus1 Technology	Design Software Development and IC Design	56.67	55.00	-
Sunplus Prof-tek (Shenzhen)	Chongqing CQPlus1 Technology	Software Development and IC Design	43.33	45.00	Sunplus and its subsidiaries owned 100% of the equity in Chongqing Shuangxin Co., Ltd.
Ytrip Technology	Cculture Communication	Web Development and sale	-	100.00	The liquidation of 1culture Communication was completed on May 29, 2020. Please refer to Note 30.
Sunplus Venture	Jumplux Technology	Design of ICs	42.08	42.08	Sunplus and its subsidiaries owned 97.08% of the equity in Jumplux Technology.
	Han Young Technology Co.	Design of ICs	-	-	The liquidation of Han Young Technology Co. was completed on November 15, 2019. Please refer to Note 30.
	Sunplus mMedia	Design of ICs	7.64	7.64	Sunplus and its subsidiaries owned 100% of the equity in Sunplus mMedia.
	Sunplus Innovation	Design of ICs	5.64	5.64	Sunplus and its subsidiaries owned 65.94% of the equity in Sunplus Innovation
	Genki Tek Technology Co., Ltd.	Development of computer	62.50	-	The establishment registration was
Lin Shih	Generalplus Technology Inc.	software Design of ICs	13.69	13.69	completed on March 6, 2020 Sunplus and its subsidiaries had 47.99% stake in Generalplus Technology, Inc. and the Group had controlling interest over Generalplus Technology, Inc.; the investee is included in the consolidated financial statements
	Sunplus mMedia	Design of ICs	2.60	2.60	Sunplus and its subsidiaries owned 100% of the equity in Sunplus mMedia.
	Sunplus Innovation	Design of ICs	2.09	2.09	Sunplus and its subsidiaries owned 65.94% of the equity in Sunplus Innovation.
Generalplus	Generalplus Samoa	Investment	100.00	100.00	-
Generalplus Samoa Generalplus Mauritius	Generalplus Mauritius Generalplus Shenzhen	Investment Design of IC product development, after sales	100.00 100.00	100.00 100.00	- -
		service and market research
	Generalplus HK	Sales	100.00	100.00	-
Award Glory Sunny Fancy	Sunny Fancy Giant Kingdom	Investment Investment	100.00 100.00	100.00 100.00	- -
	Giant Rock	Investment	100.00	100.00	-
	WORLDPLUS HOLDINGS L.L.C. (Worldplus)	Investment	100.00	100.00	-
Sunny Fancy	Giant Best Ltd. (Giant Best)	Investment	100.00	100.00	At the end of December 2020, the establishment registration was completed, but capital was not
Giant Kingdom	Ytrip Technology	Web research and development	-	8.16	injected yet. Sunplus and its subsidiaries had a 90.71% stake in Ytrip on December 31, 2019. The liquidation of Ytrip Technology was completed on June 23, 2020. Please refer to Note 30.
Giank Rock	Sunplus App Technology	Manufacturing and sale of computer software; system integration services and information management and education	44.85	42.31	Sunplus and its subsidiaries owned 96.32% of the equity in Sunplus App.
Worldplus	Lingyao Technology	Software development and rental sales	100.00	100.00	-

(Concluded)

The financial statements as of and for the years ended December 31, 2020 of the above subsidiaries except Sunplus Management Consulting and Generalplus HK, were audited by the auditors. The management of the Company believes that the financial statements of Sunplus Management Consulting and Generalplus HK will not be subject to major adjustments if it were audited.

b. Subsidiary excluded from the consolidated financial statements

	The Voting Ratio of Non-controlling December 31	Equity
	2020	2019
Company name
Generalplus Technology Inc. Sunplus Innovation Technology	52.01% 34.06%	52.01% 31.14%

Refer to attachment 6 for registered countries and company information:

	Profits Attributed to Non-controlling	Interests
	For the Year	Ended	Non-controlling		Interests
	December 31		December 31
Company Name	2020	2019	2020		2019
Generalplus Technology Inc. Sunplus Innovation Technology	\$ 146,699 151,224	\$ 116,295 42,243	\$ 1,123,045 462,772	\$	1,075,166 308,951

The summarized financial information below represents amounts before intragroup eliminations.

		December 31
	2020	2019
Current assets	\$ 3,920,778	\$ 3,190,003
Non-current assets	825,984	790,554
Current liabilities	1,128,870	792,198
Non-current liabilities	198,684	214,644
Equity	\$ 3,419,208	\$ 2,973,715
Equity attributable to:
Owners of the Company	\$ 1,833,391	\$ 1,589,598
Non-controlling interests	1,585,817	1,384,117
	\$ 3,419,208	\$ 2,973,715
	For the Year	Ended December 31
	2020	2019
Operating revenue	\$ 4,723,614	\$ 3,580,874
Net income	\$ 749,706	\$ 359,235
Other comprehensive income	3,156	(19,486)
Total other comprehensive income	\$ 752,862	\$ 339,749
Equity attributable to:
Owners of the Company	\$ 451,783	\$ 200,697
Non-controlling interests	297,923	158,538
	\$ 749,706	\$ 359,235
		(Continued)

	For the Year	Ended December 31
	2020	2019
Total other comprehensive income attributable to:
Owners of the Company	\$ 452,808	\$ 191,123
Non-controlling interests	300,054	148,626
	\$ 752,862	\$ 339,749
Cash flows
Operating activities	\$ 792,458	\$ 512,134
Investing activities	(320,928)	57,606
Financing activities	(314,595)	(304,255)
Effect of exchange rate changes on the balance of cash held in foreign currencies	3,465	1,452
Net cash inflow (outflow)	\$ 160,400	\$ 266,937
Dividend paid to non-controlling interests	\$ (139,531)	\$ (157,520) (Concluded)

12. INVESTMENTS ACCOUNTED FOR USING THE EQUITY METHOD

	December 31
	2020	2019
Investments in associates	\$ 719,696	\$ 695,028

a. Investments in associates

		December 31
	2020	2019
Listed companies
Global View Co., Ltd.	\$ 346,011	\$ 297,640
iCatch Technology	300,118	320,180
Autsys Co., Ltd.	71,439	77,208
Yizhiliang Accelerator Co., Ltd.	2,128	-
	\$ 719,696	\$ 695,028

As the end of the reporting period, the proportion of ownership and voting rights in associates held by the Group were as follows:

	December 31
Name of Associate	2020	2019
Global View Co., Ltd.	13%	13%
iCatch Technology	35%	36%
Autsys Co., Ltd.	16%	16%
Yizhiliang Accelerator Co., Ltd.	25%	-

Refer to Table 6 following these Notes to Consolidated Financial Statements for information on the associates' business types, main operating locations and registered countries.

Fair values (Level 1) of investments in associates with available published price quotations are summarized as follows:

	December 31
Name of Associate	2020	2019
Global View, Co., Ltd.	\$ 317,657	\$ 239,889

Investments in the above jointly controlled entities are accounted for using the equity method.

The summarized financial information of the Group's associates is set out below:

	December 31
	2020	2019
Total assets	\$ 2,739,685	\$ 2,438,751
Total liabilities	\$ 298,421	\$ 313,348
	For the Year	Ended December 31
	2020	2019
Revenue	\$ 913,154	\$ 1,088,383
Loss for the period	\$ (83,932)	\$ (5,711)
Comprehensive income	\$ 351,451	\$ (14,131)
Group's share of profits of associates	\$ 15,713	\$ (19,915)

The financial statements as of and for the years ended December 31, 2020 of the above associates expect Yizhiliang Accelerator Co., Ltd., were audited by the auditors. The management of the Company believes that the financial statements of Yizhiliang Accelerator Co., Ltd. will not be subject to major adjustments if it were audited.

13. PROPERTY, PLANT AND EQUIPMENT

a. Assets used by the Group

	Buildings	Auxiliary Equipment	Machinery and Equipment	Testing Equipment	Transportation Equipment	Furniture and Fixtures	Leasehold Improvements	Other Equipment	Prepayments for Equipment and Construction in Progress	Total
Cost
Balance at January 1, 2020 Additions Disposals Reclassified Consolidated changes Effect of exchange rate changes	\$ 2,338,519 440 - - - 26,289	\$ 187,290 5,670 (6,260 ) 4,073 - (6,275 )	\$ 10,428 2,900 - - - 8,161	\$ 517,417 143,007 (15,559 ) - - (5,754 )	\$ 5,873 341 (1,661 ) - - 54	\$ 250,019 41,746 (23,400 ) 1,200 (3,031 ) 2,227	\$ 1,480 490 - - - 1,153	\$ 23,847 109 (33 ) - - 223	\$ 19,202 4,372 - (5,273 ) - (1,145 )	\$ 3,354,075 199,075 (46,913 ) - (3,031 ) 24,933
Balance at December 31, 2020	\$ 2,365,248	\$ 184,498	\$ 21,489	\$ 639,111	\$ 4,607	\$ 268,761	\$ 3,123	\$ 24,146	\$ 17,156	\$ 3,528,139
Accumulated depreciation
Balance at January 1, 2020 Depreciation expense Disposals Consolidated changes Effect of exchange rate changes	\$ 555,243 52,292 - - 8,801	\$ 143,222 18,410 (6,260 ) - (5,230 )	\$ 7,229 2,232 - - 3,151	\$ 448,652 116,637 (15,538 ) - (2,087 )	\$ 4,018 715 (1,384 ) - 45	\$ 205,424 21,478 (23,136 ) (3,016 ) 2,044	\$ 1,239 455 - - (9 )	\$ 20,245 599 (33 ) - 1,449	\$ - -	\$ 1,385,272 212,818 (46,351 ) (3,016 ) 8,164
Balance at December 31, 2020 Carrying amounts at December 31, 2020	\$ 616,336 \$ 1,748,912	\$ 150,142 \$ 34,356	\$ 12,612 \$ 8,877	\$ 547,664 \$ 91,447	\$ 3,394 \$ 1,213	\$ 202,794 \$ 65,967	\$ 1,685 \$ 1,438	\$ 22,260 \$ 1,886	\$ - \$ 17,156	\$ 1,556,887 \$ 1,971,252 (Continued)

• 33 -

	Buildings	Auxiliary Equipment	Machinery and Equipment	Testing Equipment	Transportation Equipment	Furniture and Fixtures	Leasehold Improvements	Other Equipment	Prepayments for Equipment and Construction in Progress	Total
Cost
Balance at January 1, 2019 Additions Disposals Reclassified Consolidated changes Effect of exchange rate	\$ 2,383,245 - - - -	\$ 193,874 442 (5,408 ) - -	\$ 13,729 5,446 (6,486 ) - -	\$ 616,529 102,304 (198,512 ) - -	\$ 5,904 773 (1,076 ) - -	\$ 266,331 17,700 (40,489 ) 10,493 2,501	\$ 2,782 457 (1,716 ) - -	\$ 23,959 234 (39 ) - 205	\$ 2,940 9,900 - (10,720 ) 17,088	\$ 3,509,393 137,256 (253,726 ) (227 ) 19,794
changes	(44,726 )	(1,618 )	(2,261 )	(2,904 )	272	(6,517 )	(43 )	(512 )	(6 )	(58,315 )
Balance at December 31, 2019	\$ 2,338,519	\$ 187,290	\$ 10,428	\$ 517,417	\$ 5,873	\$ 250,019	\$ 1,480	\$ 23,847	\$ 19,202	\$ 3,354,075
Accumulated depreciation
Balance at January 1, 2019 Depreciation expense Disposals Consolidated changes Effect of exchange rate changes	\$ 507,818 53,530 - - (6,105 )	\$ 126,857 19,626 (5,408 ) - 2,147	\$ 12,759 2,322 (6,375 ) - (1,477 )	\$ 540,595 95,336 (195,243 ) - (3,534 )	\$ 3,633 1,145 (1,052 ) - 292	\$ 231,996 16,945 (39,515 ) 2,273 (5,975 )	\$ 2,331 5,288 (1,716 ) - (4,664 )	\$ 19,447 601 (39 ) 85 151	\$ - - - - -	\$ 1,445,436 194,793 (249,648 ) 2,358 (19,165 )
Balance at December 31, 2019	\$ 555,243	\$ 143,222	\$ 7,229	\$ 437,154	\$ 4,018	\$ 205,424	\$ 1,239	\$ 20,245	\$ -	\$ 1,373,774
Accumulated impairment
Balance at December 31, 2019	\$ -	\$ -	\$ -	\$ 11,498	\$ -	\$ -	\$ -	\$ -	\$ -	\$ 11,498
Carrying amounts at December 31, 2019	\$ 1,783,276	\$ 44,068	\$ 3,199	\$ 68,765	\$ 1,855	\$ 44,595	\$ 241	\$ 3,602	\$ 19,202	\$ 1,968,803 (Concluded)

The above items of property, plant and equipment are depreciated on a straight-line basis over the following estimated useful lives as follows:

Buildings	10-56 years
Auxiliary equipment	3-11 years
Machinery and equipment	3-10 years
Testing equipment	1-6 years
Transportation equipment	4-10 years
Furniture and fixtures	1-6 years
Leasehold improvements	5 years
Other equipment	3-10 years

Refer to Note 35 for the carrying amounts of property, plant and equipment that had been pledged by the Group to secure borrowings.

14. LEASE ARRANGEMENTS

a. Right-of-use assets

	December 31
	2020	2019
Carrying amounts
Land Buildings Transportation equipment	\$ 209,100 19,730 447	\$ 215,922 25,098 894
	\$ 229,277	\$ 241,914

	For the Year	Ended December 31
	2020	2019
Additions to right-of-use assets Depreciation charge for right-of-use assets	\$ 2,924	\$ 3,989
Land Buildings Transportation equipment	\$ 6,856 8,765 447	\$ 6,859 6,454 361
	\$ 16,068	\$ 13,674
Income from the subleasing of right-of-use assets (presented in other income)	\$ 1,137	\$ 1,093

Except for the aforementioned addition and recognized depreciation, the Group did not have significant sublease or impairment of right-of-use assets during the nine months ended December 31, 2020 and 2019.

The other part of right-of-use assets-land in China is subleased by operating leases, and the relevant right-of-use assets are classified as investment properties. Please refer to Note 15.

b. Lease liabilities

	December 31
	2020	2019
Carrying amounts
Current	\$ 12,506	\$ 11,885
Non-current	\$ 219,510	\$ 230,251

Range of discount rate for lease liabilities was as follows:

	December 31
	2020	2019
Land	2.39%	2.39%
Buildings	1.575%-5.000%	1.575%-4.750%
Transportation equipment	1.575%	1.575%

c. Material lease-in activities and terms

The Group leases land and buildings for the use of plants, offices and dormitory, also leases transportation equipment for the use of business travel with lease terms of 2 to 50 years. Lease terms of land in the ROC is 20 years, the lease contract for land located in the ROC specifies that lease payments will be adjusted on the basis of changes in announced land value prices. Lease terms of land in China is 50 years. The Group does not have bargain purchase options to acquire the leasehold land, buildings and transportation equipment at the end of the lease terms.

The Group did not enter into significant lease contracts in the year ended December 31, 2019 and 2020. Because of the market conditions severely affected by COVID-19 in 2020, the Group requested the lessor for rent subsidy. The lessor agreed to provide unconditional 20% rent reduction from January 1 to December 31, 2020. The Group recognized in profit or loss the impact of rent concessions of \$832 thousand (presented in a deduction of expenses of variable lease payments) for the year of 2020.

d. Subleases

The Group subleases its right-of-use assets for buildings under operating leases with lease terms for 2 years.

The maturity analysis of lease payments receivable under operating subleases was as follows:

		December 31
	2020	2019
Year 1	\$ -	\$ 1,153

e. Other lease information

	For the Year Ended December 31
	2020	2019
Expenses relating to short-term leases	\$ 6,530	\$ 11,343
Expenses relating to low-value asset leases	\$ 444	\$ 2,282
Total cash outflow for leases	\$ 22,636	\$ 30,995

The Company leases certain transportation equipment and other leases which qualify as short-term leases. The Company has elected to apply the recognition exemption and, thus, did not recognize right-of-use assets and lease liabilities for these leases.

15. INVESTMENT PROPERTIES

	Completed Investment Properties	Right-of-use Assets	Total
Cost
Balance at January 1, 2020 Additions Effect of exchange rate differences	\$ 1,401,007 5,073 23,026	\$ 98,867 - 1,654	\$ 1,499,874 5,073 24,680
Balance at December 31, 2020	\$ 1,429,106	\$ 100,521	\$ 1,529,627
Accumulated depreciation
Balance at January 1, 2020 Depreciation expense Effect of exchange rate differences	\$ 430,601 69,808 8,724	\$ 2,476 2,308 94	\$ 433,077 72,188 8,818
Balance at December 31, 2020	\$ 509,133	\$ 4,950	\$ 514,083
Carrying amount at December 31, 2020	\$ 919,973	\$ 95,571	\$ 1,015,544 (Continued)

Cost	Completed Investment Properties	Right-of-use Assets	Total
Balance at January 1, 2019 Additions Effect of acquisition of subsidiary Effect of exchange rate differences	\$ 1,400,135 1,488 52,074 (52,690)	\$ 102,702 - - (3,835)	\$ 1,502,837 1,488 52,074 (56,525)
Balance at December 31, 2019	\$ 1,401,007	\$ 98,867	\$ 1,499,874
Accumulated depreciation
Balance at January 1, 2019 Depreciation expense Effect of acquisition of subsidiary Effect of exchange rate differences	\$ 360,821 71, 513 14,691 (16,424)	\$ - 2,574 - (98)	\$ 360,821 74,087 14,691 (16,522)
Balance at December 31, 2019	\$ 430,601	\$ 2,476	\$ 433,077
Carrying amount at December 31, 2019	\$ 970,406	\$ 96,391	\$ 1,066,797 (Concluded)

The right-of-use assets in the investment properties are the use right of land signed by the Group and is subleased under operating lease. The lease terms of the investment properties are from 1 to 15 years, with extension option according to the original contract when exercising the renewal right. The lessee do not have bargain purchase options to acquire the investment properties at the expiry of the lease periods.

The maturity analysis of lease payments receivable under operating leases of investment properties is as follows:

	December 31
	2020	2019
Year 1	\$ 197,870	\$ 216,645
Year 2	164,577	136,228
Year 3	96,344	96,651
	\$ 458,791	\$ 449,524

The above items of investment properties are depreciated on a straight-line basis over their estimated useful lives as follows:

Completed investment properties	5-26 years
Right-of-use assets	35-39 years

The fair value of the investment properties of Lingyao Technology Co., Ltd. in Shenzhen assesed in 2020 and 2019 had been determined on the basis of valuations carried out on December 31, 2020 and 2019 by Suzhou Fengzheng Renhe Estate Land Assets Appraisal Co., Ltd. and Guanhong Real Estate Appraisers Office, respectively. The valuation was arrived at by reference to the income approach. The significant unobservable inputs used include discount rates; the fair value as appraised is as follows:

	December 31
	2020	2019
Fair value	\$ 45,471	\$ 37,900

The fair value of the investment properties of SunMedia Technology assesed in 2020 and 2019 had been determined on the basis of valuations carried out on December 31, 2020 and 2019 by Sichuan Zongli Real Estate Land Assets Evaluation Co., Ltd. The valuation was arrived at by reference to the income approach. The significant unobservable inputs used include discount rates; the fair value as appraised is as follows:

	December 31
	2020	2019
Fair value	\$ 1,192,093	\$ 1,182,963

The fair value of the investment properties of Sunplus Technology (Shanghai) Co., Ltd. assessed in 2020 and 2019 had been determined on the basis of valuations carried out on December 31, 2020 and 2019 by Suzhou Feng-Zheng Valuation Firm. The valuation was arrived at by reference to the income approach. The significant unobservable inputs used include discount rates; the fair value as appraised is as follows:

	December 31
	2020	2019
Fair value	\$ 2,374,398	\$ 2,295,816

16. INTANGIBLE ASSETS

	For the Year Ended December 31, 2020
	Technology License Fees	Software	Patents	Goodwill	Total
Cost
Balance at January 1 Additions Decrease Effect of exchange rate differences Consolidated changes	\$ 809,249 218,688 (41,842) 517 -	\$ 312,600 23,140 (5,680) 433 (5,232)	\$ 114,494 2,000 - 4 -	\$ 30,596 - - - -	\$ 1,266,939 243,828 (47,522) 954 (5,232)
Balance at December 31	\$ 986,612	\$ 325,261	\$ 116,498	\$ 30,596	\$ 1,458,967
Accumulated amortization
Balance at January 1 Amortization expense Decrease Effect of exchange rate differences Consolidated changes	\$ 583,858 65,167 (41,842) 347 -	\$ 289,553 23,277 (5,680) 313 (3,418)	\$ 84,582 1,504 - 2 -	\$ - - - - -	\$ 957,993 89,948 (47,522) 662 (3,418)
Balance at December 31	\$ 607,530	\$ 304,045	\$ 86,088	\$ -	\$ 997,663
Accumulated deficit
Balance at December 31	\$ 111,136	\$ -	\$ 21,577	\$ -	\$ 132,713
Carrying amounts at December 31, 2020	\$ 267,946	\$ 21,216	\$ 8,833	\$ 30,596	\$ 328,591

			For the Year Ended December 31, 2019
	Technology License Fees	Software	Patents	Goodwill	Total
Cost
Balance at January 1 Additions Decrease Reclassified Effect of exchange rate differences	\$ 778,507 55,525 (23,509) (350) (924)	\$ 298,609 20,069 (6,026) - (52)	\$ 114,504 - - - (10)	\$ 30,596 - - - -	\$ 1,222,216 75,594 (29,535) (350) (986)
Balance at December 31	\$ 809,249	\$ 312,600	\$ 114,494	\$ 30,596	\$ 1,266,939
Accumulated amortization
Balance at January 1 Amortization expense Decrease Reclassified Effect of exchange rate differences	\$ 556,915 51,139 (23,509) (175) (512)	\$ 270,852 25,302 (5,581) - (1,020)	\$ 83,215 1,371 - - (4)	\$ - - - - -	\$ 910,982 77,812 (29,090) (175) (1,536)
Balance at December 31	\$ 583,858	\$ 289,553	\$ 84,582	\$ -	\$ 957,993
Accumulated deficit
Balance at December 31	\$ 111,136	\$ -	\$ 21,577	\$ -	\$ 132,713
Carrying amounts at December 31, 2019	\$ 114,255	\$ 23,047	\$ 8,335	\$ 30,596	\$ 176,233

Other intangible assets are amortized on a straight-line basis over their estimated useful lives as follows:

Technology license fees	1-10 years
Software	1-10 years
Patents	8-18 years

An analysis of depreciation by function

		For the Year Ended December 31
	2020	2019
Selling and marketing expenses	\$	232 \$ 106
General and administrative expenses		3,677 5,894
Research and development expenses		86,039 71,812
	\$	89,948 \$ 77,812

17. OTHER ASSETS

	December 31
	2020	2019
Current
Other financial assets Pledged time deposits (a) Time deposits (b) Restricted assets (d)	\$ 113,920 82,213 44,201 \$ 240,334	\$ 119,920 - - \$ 119,920
Other assets Prepaid technical licensing fee Prepayments for EDA tools Others	\$ 18,032 21,141 72,265 \$ 114,438	\$ 9,103 21,374 58,440 \$ 88,917
Non-current
Other financial assets Pledged time deposits (a) Time deposits (c)	\$ 35,809 236,358 \$ 272,167	\$ 10,899 129,150 \$ 140,049
Other assets Refundable deposits Others	\$ 4,055 7,800 \$ 11,855	\$ 6,247 7,800 \$ 14,047

• a. Refer to Note 35 for information on pledged time deposits.
• b. Sunplus Technology (Shanghai) Company, Lingyao Company, Sunplus Prof-tek (Shenzhen) Company and Sunplus Technology (Beijing) Company made a fixed deposit of RMB\$18,783 thousand at banks on December 31, 2020. The deposit period of time deposit is 6 months to 1 year, and interest can be charged at a certain interest rate during the deposit period.
• c. Shanghai Technology (Shanghai) Company , Lingyao Company and Shenzhen Lingjia Company made certificates of deposit of RMB\$54,000 thousand and RMB\$30,000 at the bank on December 31, 2020, and on December 31, 2019, respectively. The deposit period of the certificates of deposit is 2 to 3 years and 3 years respectively, and interest can be charged at a certain interest rate during the deposit period.
• d. Refer to Note 28 for information on restricted assets.

18. BORROWINGS

Short-term borrowings

	December 31
	2020	2019
Secured borrowings
Bank loans	\$ 97,102	\$ 120,130
Unsecured borrowings
Bank loans	217,107	203,496
	\$ 314,209	\$ 323,626

The range of weighted average effective interest rates on bank loans was 0.716%-2.800% and 1.745%-3.000% per annum at December 31, 2020 and 2019, respectively.

Long-term borrowings

The borrowings of the Group were as follows:

				December 31
	Maturity Date	Significant Covenant	2020		2019
Floating rate borrowings
Unsecured bank borrowings	2025.08.21	Repayable quarterly from November 2021, the loan was repaid on maturity	\$ 200,000	\$	-
Unsecured bank borrowings	2023.10.13	Repayable semiannually from October 2022, the loan was repaid on maturity	30,000		-
Less: Current portion			(25,000)		-
Long-term borrowings			\$ 205,000	\$	-

The interval of effective borrowing rates as of December 31, 2020 was 1.250%-1.320%.

In addition, in accordance with the provisions of the loan contract, the Group's consolidated financial statements for the year ended 2020 are subject to current ratio, debt ratio, interest coverage ratio, etc., but they are not included in the examination of default items. The Group's financial ratios are in compliance with the contract requirements.

19. TRADE PAYABLES

		December 31
	2020	2019
Accounts payable
Payable - operating	\$ 450,216	\$ 352,155

The average credit period on purchases of certain goods was 30-60 days. The Group has financial risk management policies in place to ensure that all payables are paid within the pre-agreed credit terms.

20. OTHER LIABILITIES

	December 31
	2020	2019
Current
Other payables Payables for salaries or bonuses Refund liabilities Payables for employees' compensation and remuneration of directors Payable for royalties Labor/health insurance Payables for purchases of equipment Payables for labor costs Commissions payable Others	\$ 464,201 75,313 73,815 68,250 27,106 8,005 7,195 6,591 64,848 \$ 795,324	\$ 299,871 46,591 46,467 46,676 26,629 5,552 6,105 6,920 91,290 \$ 576,101
Deferred revenue
Deferred revenue Arising from government grants (Note 28) Non-current	\$ 46,098	\$ 1,568
Other payable Long-term payables Payables for purchases of equipment Decommissioning liabilities Others	\$ 6,484 4,940 889 1,532 \$ 13,845	\$ 4,470 3,198 889 - \$ 8,557
Deferred revenue Arising from government grants (Note 28)	\$ 58,300	\$ 58,015

21. RETIREMENT BENEFIT PLANS

a. Defined contribution plans

Sunplus, Generalplus, Sunext, Sunplus Innovation, Sunplus mMedia and Jumplux Technology of the Group adopted a pension plan under the Labor Pension Act (LPA), which is a state-managed defined contribution plan. Under the LPA, the Group makes monthly contributions to employees' individual pension accounts at 6% of monthly salaries and wages.

b. Defined benefit plans

The defined benefit plans adopted by the Company, Generalplus, Sunplus Innovation and Jumplux Technology in accordance with the Labor Standards Act is operated by the government of the ROC. Under this plan, employees should receive either a series of pension payments with a defined annuity or a lump sum that is payable immediately on retirement and is equivalent to 2 base units for each of the first 15 years of service and 1 base unit for each year of service thereafter. The total retirement benefit is subject to a maximum of 45 units. The pension benefits are calculated on the basis of the length of service and average monthly salaries of the six month before retirement. In addition, the Group makes monthly contributions, equal to 2% of salaries, to a pension fund, which is administered by a fund monitoring committee. Pension contributions are deposited in the Bank of Taiwan in the committee's name and are managed by the Bureau of Labor Funds, Ministry of Labor (the "Bureau"); the company has no right to influence the investment policy and strategy. According to the letter of Zhuhuanzi No. 1090003642 issued by the Hsinchu Science Park Administration of the Ministry of Science and Technology, the Company ceased its retirement fund contribution temporarily from January 1, 2020 to December 31, 2020.

The amounts included in the consolidated balance sheets in respect of the Group's defined benefit plans are as follows:

	December 31
	2020	2019
Present value of funded defined benefit obligation Fair value of plan assets	\$ 244,805 (188,926)	\$ 267,360 (204,475)
Net liabilities arising from defined benefit obligation	\$ 55,879	\$ 62,885

Movements in net defined benefit liabilities were as follows:

	Present Value of Funded Defined Benefit Obligation	Fair Value of Plan Assets	Net Defined Benefit Liabilities (Assets)
Balance at January 1, 2019	\$ 268,025	\$ 188,770	\$ 79,255
Service cost
Current service cost	805	-	805
Net interest expense (income)	3,051	2,212	839
Recognized gain and loss	3,856	2,212	1,644
Remeasurement
Return on plan assets	-	6,223	(6,223)
Actuarial (gain) loss-experience adjustment	(2,387)	-	(2,387)
Actuarial (gain) loss-changes in
demographic assumptions	47	-	47
Actuarial loss-changes in financial
assumptions	3,602	-	3,602
Recognized in other comprehensive income	1,262	6,223	(4,961)
Contributions from the employer	-	13,053	(13,053)
Benefit paid	(5,783)	(5,783)	-
Balance at December 31, 2019	\$ 267,360	\$ 204,475	\$ 62,885 (Continued)

	Present Value of Funded Defined Benefit Obligation	Fair Value of Plan Assets	Net Defined Benefit Liabilities (Assets)
Balance at January 1, 2020	\$ 267,360	\$ 204,475	\$ 62,885
Service cost
Current service cost	563	-	563
Net interest expense (income)	2,556	1,973	583
Recognized gain and loss	3,119	1,973	1,146
Remeasurement
Return on plan assets	-	5,980	(5,980)
Actuarial (gain) loss-experience adjustment	2,240	-	2,240
Actuarial (gain) loss-changes in
demographic assumptions	(1,441)	-	(1,441)
Actuarial loss-changes in financial
assumptions	(1,502)	-	(1,502)
Recognized in other comprehensive income	(703)	5,980	(6,683)
Contributions from the employer	-	1,469	(1,469)
Benefit paid	(24,971)	(24,971)	-
Balance at December 31, 2020	\$ 244,805	\$ 188,926	\$ 55,879 (Concluded)

An analysis by function of the amounts recognized in profit or loss in respect of the benefit plans is as follows:

	For the Year Ended December 31
	2020	2019
Operating costs	\$ 121	\$ 155
Selling and marketing expenses	114	176
General and administrative expenses	317	431
Research and development expenses	482	936
Net liability arising from defined benefit obligation	\$ 1,034	\$ 1,698

Through the defined benefit plans under the Labor Standards Law, the Group is exposed to the following risks:

• 1) Investment risk: The plan assets are invested in domestic and foreign equity and debt securities, bank deposits, etc. The investment is conducted at the discretion of the Bureau or under the mandated management. However, in accordance with relevant regulations, the return generated by plan assets should not be below the interest rate for a 2-year time deposit with local banks.
• 2) Interest risk: A decrease in the government bond interest rate will increase the present value of the defined benefit obligation; however, this will be partially offset by an increase in the return on the plan's debt investments.
• 3) Salary risk: The present value of the defined benefit obligation is calculated by reference to the future salaries of plan participants. As such, an increase in the salary of the plan participants will increase the present value of the defined benefit obligation.

The actuarial valuations of the present value of the defined benefit obligation were carried out by qualified actuaries. The significant assumptions used for the purposes of the actuarial valuations were as follows:

	December 31
	2020	2019
Discount rate(s)	0.30%-0.80%	0.80%-1.00%
Expected rate(s) of salary increase	3.625%-5.00%	4.00%-5.00%
Resignation rate	0%-28%	0%-28%

If possible reasonable change in each of the significant actuarial assumptions will occur and all other assumptions will remain constant, the present value of the defined benefit obligation would increase (decrease) as follows:

	December 31, 2020	December 31, 2019
Discount rate(s)
0.25% increase	\$ (6,559)	\$ (7,703)
0.25% decrease	\$ 6,818	\$ 8,014
Expected rate(s) of salary increase
1% increase	\$ 27,669	\$ 32,682
1% decrease	\$ (24,291)	\$ (28,567)

The above sensitivity analysis may not be representative of the actual change in the present value of the defined benefit obligation as it is unlikely that the change in assumptions will occur in isolation of one another as some of the assumptions may be correlated.

	December 31
	2020	2019
Expected contributions to the plan for the next year	\$ 1,170	\$ 4,024
Average duration of the defined benefit obligation	13-16 years	13-16 years

22. EQUITY

• a. Share capital
• 1) Ordinary shares:

	December 31
	2020	2019
Shares authorized (in thousands of shares) Value of authorized shares Number of shares issued and fully paid (in thousands) Shares issued and fully paid	1,200,000 \$ 12,000,000 591,995 \$ 5,919,949	1,200,000 \$ 12,000,000 591,995 \$ 5,919,949

Fully paid ordinary shares, which have a par value of \$10, carry one vote per share and carry a right to dividends.

Of the Company's authorized shares, 80,000 thousand shares had been reserved for the issuance of convertible bonds and employee share options.

2) Global depositary receipts

In March 2001, Sunplus issued 20,000 thousand units of global depositary receipts (GDRs), representing 40,000 thousand ordinary shares that consisted of newly issued and originally outstanding shares. The GDRs are listed on the London Stock Exchange (ticker: SUPD) with an issuance price of US\$9.57 per unit. As of December 31, 2020, the outstanding 175 thousand units of GDRs represented 350 thousand ordinary shares.

b. Capital surplus

		December 31
	2020	2019
May be used to offset a deficit, distributed as cash dividends, or transferred to share capital (a)
Arising from the issuance of ordinary shares Arising from the acquisition of a subsidiary The difference between consideration received or paid and the	\$ 18,497 157,423	\$ 196,095 157,423
carrying amount of the subsidiaries' net assets during actual disposal or acquisition	207,316	140,184
May be used to offset a deficit only
From treasury share transactions	46,307	45,239
Changes in net equity of associates or joint ventures accounted for using the equity method	71,277	55,491
	\$ 500,820	\$ 594,432

• a) When the Company has no deficit, such capital surplus may be distributed as cash dividends, or may be transferred to share capital once a year and within a certain percentage of the Company's capital surplus.
• c. Retained earnings and dividend policy

Under the dividend policy as set forth in the amended Articles, Sunplus shall appropriate from annual net income less any accumulated deficit: (a) 10% as legal reserve; and (b) special reserve equivalent to the debit balance of any accounts shown in the shareholders' equity section of the balance sheet, other than deficit.

Under the approved shareholders' resolution, the current year's net income less all the foregoing appropriations and distributions, plus the prior years' unappropriated earnings may be distributed as additional dividends. Sunplus' policy is that cash dividends should be at least 10% of total dividends distributed. However, cash dividends will not be distributed if these dividends are less than NT\$0.5 per share.

Under the regulations promulgated, a special reserve equivalent to the debit balance of any account shown in the shareholders' equity section of the balance sheet (for example, unrealized loss on financial assets and cumulative translation adjustments) should be allocated from unappropriated retained earnings. For the policies on distribution of employees' compensation and remuneration to directors before and after amendment, refer to Note 24-(h).

Appropriation of earnings to legal reserve shall be made until the legal reserve equals the Company's paid-in capital. Legal reserve may be used to offset deficit. If the Company has no deficit and the legal reserve has exceeded 25% of the Company's paid-in capital, the excess may be transferred to capital or distributed in cash.

The Company appropriates or reverses a special reserve in accordance with Rule No. 1010012865 and Rule No. 1010047490 issued by the FSC and the directive entitled "Questions and Answers on Special Reserves Appropriated Following the Adoption of IFRSs". Distributions can be made out of any subsequent reversal of the debit to other equity items.

The appropriations of earnings for 2019 approved in the shareholders' meeting on June 10, 2019, as follows:

	For Year 2018
Legal reserve	\$ 562
Special reserve	\$ 241,173

The appropriations of earnings for 2020 approved in the shareholders' meeting on June 12, 2020, as follows:

	For Year 2019
Special reserve reversed	\$ 32,263
Legal reserve deficits compensated	\$ 229,998

The Company's shareholders resolved in the shareholders' meetings on June 12, 2020, June 10, 2019 to issue and cash dividends of \$177,598 thousand and \$213,118 thousand from the capital surplus, respectively.

The earnings distribution proposal for 2020 in the board of directors meeting proposed on March 29, 2021 as follows:

	For the Year 2020
Legal reserve	\$ 32,889
Special reserve reversed	\$ 15,111
Cash dividend	\$ 311,093
Cash dividend per share (NT\$)	\$ 0.53

The appropriation of earnings for 2020 is subject to resolution in the shareholders' meeting to be held on June 7, 2021.

d. Special reserve

	For the Year Ended December 31
	2020	2019
Beginning at January 1 Appropriations to the special reserve Special reserve reversed	\$308,452 - (32,263)	\$ 62,279 241,173 -
Balance at December 31	\$276,189	\$308,452

e. Other equity items

1) Exchange differences on translating the financial statements of foreign operations:

	For the Year Ended December 31
	2020	2019
Balance at January 1	\$ (218,780)	\$ (138,875)
Exchange differences on translating foreign operations	(1,032)	(75,511)
Share of exchange differences of associates accounted for
using equity method	2,072	(4,394)
Reclassification adjustments
Disposal of foreign operations	(10,283)	-
Balance at December 31	\$ (228,023)	\$ (218,780)

2) Unrealized gain (loss) from investments in equity instruments measured at FVTOCI:

	For the Year Ended December 31
	2020	2019
Balance at January 1	\$ (42,246)	\$ (303,968)
Current
Unrealized gain (loss)	(1,354)	(20,881)
Share of unrealized gain (loss) on associates accounted for
using the equity method	7,261	3,089
Cumulative unrealized gain (loss) of equity instruments
transferred to retained earnings due to disposal	1,172	279,514
Disposal of partial interests in subsidiaries	2,112	-
Balance at December 31	\$ (33,055)	\$ (42,246)

f. Non-controlling interests

	For the Year Ended December 31
	2020	2019
Balance at January 1	\$ 1,394,158	\$ 1,401,664
Attributable to non-controlling interests: Share of profit for the year	295,424	159,443
Exchange difference on translation foreign operations	4,165	(9,377)
Unrealized gain (loss) on financial assets at FVTOCI Actuarial gains on defined benefit plans	(1,861) (96)	(563) 225
Cash dividends from subsidiaries	(139,531)	(157,520)
Non-controlling interests related to outstanding vested share options	12,000	-
Disposal of partial interests in subsidiaries	31,770	-
Equity instruments held by the employees of subsidiaries Others	9,408 (199)	- 286
Balance at December 31	\$ 1,605,238	\$ 1,394,158

g. Treasury shares

Purpose of Buyback	Shares Transferred to Employees (In Thousands of Shares)	Shares Held by Its Subsidiaries (In Thousands of Shares)	Total (In Thousands of Shares)
Number of shares as of January 1, 2019 Decrease	- -	3,560 -	3,560 -
Number of shares as December 31, 2019	-	3,560	3,560
Number of shares as of January 1, 2020 Decrease	- -	3,560 -	3,560 -
Number of shares as December 31, 2020	-	3,560	3,560

The Group's shares held by its subsidiaries at the end of the reporting periods were as follows:

Purpose of Buyback	Shares Transferred to Employees (in Thousands of Shares)	Shares Held by Its Subsidiaries (in Thousands of Shares)	Total (in Thousands of Shares)
December 31, 2020
Lin Shin Investment Co Ltd	3,560	\$ 63,401	\$ 65,148
December 31, 2019
Lin Shin Investment Co., Ltd	3,560	\$ 63,401	\$ 48,238

The subsidiaries holding treasury shares, however, are bestowed shareholders' rights, except the rights to participate in any share issuance for cash and to vote.

23. REVENUE

	For the Year Ended December 31
	2020	2019
Revenue from the sale of goods Rental income from property Other	\$ 6,084,210 230,273 99,657	\$ 5,085,074 265,330 136,256
	\$ 6,414,140	\$ 5,486,660

a. Contract information

Revenue from the sale of goods

IC products are sold to agents and customers. The Group determines the sales price of products based on orders. It takes into consideration the past purchases of agents and customers in order to estimate the most likely discount amount and return rate. Based on the determination of revenue, the Group recognizes the amount and the liabilities for refunds (accounted for as other current liabilities).

Other income

Other income mainly comes from software development and royalties.

b. Contract balances

	December 31,	December 31,	January 1,
	2020	2019	2019
Trade receivables (Note 9)	\$	\$	\$
	1,204,798	832,633	954,030
Contract liabilities -	\$	\$	\$
current	26,181	24,912	7,511

c. Disaggregation of revenue

	Reportable Segments Direct Sales
	2020	2019
Primary geographical markets
Asia Taiwan Others	\$ 3,816,229 2,536,578 61,333	\$ 3,474,148 1,955,083 57,429
	\$ 6,414,140	\$ 5,486,660
Timing of revenue recognition
Satisfied at a point in time Satisfied over time	\$ 6,176,425 237,715	\$ 5,210,466 276,194
	\$ 6,414,140	\$ 5,486,660

24. NET PROFIT

Net profit included the following items:

a. Interest income

	For the Year Ended December 31
	2020	2019
Bank deposits Others	\$ 24,052 -	\$ 24,536 42
	\$ 24,052	\$ 24,578

b. Other income

	For the Year Ended December 31
	2020	2019
Dividend income Subsidy income (Note 28) Others	\$ 29,412 40,135 48,257	\$ 28,815 27,107 75,616
	\$ 117,804	\$ 131,538

c. Other gains and losses

	For the Year Ended December 31
	2020	2019
Net gain (loss) on financial assets and liabilities
Net gain (loss) on financial assets designated as at FVTPL
(Note 7)	\$ 122,742	\$ 17,879
Net foreign exchange loss	(10,900)	(27,640)
Gain (loss) on disposal of subsidiary	7,795	(43)
Others	7,711	10,931
	\$ 126,748	\$ 1,127

d. Finance costs

	For the Year Ended December 31
	2020	2019
Interest on bank loans	\$ 7,527	\$ 15,721
Interest on lease liabilities	5,555	5,674
Other finance costs	2,664	3,454
	\$ 15,746	\$ 24,849

e. Depreciation and amortization

	For the Year Ended December 31
	2020	2019
An analysis of depreciation by function
Operating costs	\$ 79,253	\$ 81,393
Operating expenses	221,821	201,161
	\$ 301,074	\$ 282,554
An analysis of amortization by function
Operating expenses	\$ 89,948	\$ 77,812

f. Operating expenses directly related to investment properties

		For the Year Ended December 31
	2020	2019
Direct operating expenses from investment property that generated rental income	\$ 85,869	\$ 77,547
g. Employee benefit expense
		For the Year Ended December 31
	2020	2019
Short-term benefits Post-employment benefits	\$ 1,661,037	\$ 1,494,942
Defined contribution plans	46,178	45,278
Defined benefit plans (Note 21)	1,034	1,698
Other employee benefits	47,212	46,976
Share-based payments Equity-settled Other employee benefits	9,408 35,402	- 30,602
Total employee benefit expense	\$ 1,753,059	\$ 1,572,520
An analysis of employee benefit expense by function
Operating costs	\$ 101,951	\$ 98,052
Operating expenses	1,651,108	1,474,468
	\$ 1,753,059	\$ 1,572,520

h. Employees' compensation and remuneration of directors and supervisors

The Company resolved amendments to its Articles of Incorporation to distribute employees' compensation and remuneration directors at rates of no less than 1% and no higher than 1.5%, respectively, of net profit before income tax, employees' compensation, and remuneration of directors. The employees' compensation and remuneration of directors for the years ended December 31, 2020 and 2019 were as follows:

Accrual rate

	For the Year Ended December 31
	2020	2019
Employees' compensation Remuneration of directors	1.00% 1.50%	1.00% 1.50%

Amount

					For the Year Ended December 31
	2020				2019
		Cash		Shares	Cash		Shares
Employees' compensation	\$	3,317	\$	-	\$ 206	\$	-
Remuneration of directors		4,975		-	309		-

If there is a change in the proposed amounts after the annual consolidated financial statements are authorized for issue, the differences are recorded as a change in accounting estimate and will be adjusted in next fascial year.

The actual amounts of employee' compensation and remuneration of directors are different from the amounts recognized in the annual consolidated financial statements. Therefore, on April 22, 2020, the board of directors resolved that the differences will be adjusted to the profit or loss for 2020.

		For the Year Ended December 31, 2019
	Employees' Compensation	Remuneration of Directors and Supervisors
The actual amount resolved by the board of directors Recognized amount in annual financial statements	\$ - \$ 206	\$ - \$ 309

There is no difference between the actual amounts of employees' compensation and remuneration of directors paid and the amounts recognized in the consolidated financial statements for the year ended December 31, 2018.

Information on the employees' compensation and remuneration of directors resolved by the Company's board of directors is available at the Market Observation Post System website of the Taiwan Stock Exchange.

i. Gain or loss on exchange rate changes

	For the Year Ended December 31
	2020	2019
Exchange rate gains Exchange rate losses	\$ 130,878 (141,778)	\$ 87,093 (114,733)
Net loss	\$ (10,900)	\$ (27,640)

25. INCOME TAXES

a. Income tax recognized in profit or loss

The major components of tax expense were as follows:

	For the Year Ended December 31
	2020	2019
Current tax
In respect of the current year	\$179,824	\$ 90,323
Adjustments for prior periods	(9,630)	(22,355)
	170,194	67,968
Deferred tax
In respect of the current year	(4,283)	1,500
Income tax expense recognized in profit or loss	\$165,911	\$ 69,468

A reconciliation of accounting profit and current income tax expenses is as follows:

	For the Year Ended December 31
	2020	2019
Profit before tax	\$ 784,738	\$ 244,220
Income tax expense at the statutory rate	\$ 156,948	\$ 48,844
Different statutory rate in other jurisdictions	716	2,344
Tax effect of adjusting items:
Nondeductible expenses in determining taxable income	(27,165)	3,163
Temporary differences	5,916	(11,475)
Unrecognized temporary differences	-	(419)
Current investment credit	(12,857)	(6,650)
Effects of consolidated income tax filing	(34)	(42)
Tax-exempt income	(4,618)	-
Loss carryforwards	(993)	-
Differences in income basic tax	283	-
Current income tax expense	118,196	35,765
Deferred income tax expense
Temporary differences	(4,283)	1,500
Unrecognized loss carryforwards	61,126	49,771
Adjustments for prior years' tax	(9,630)	(22,355)
Foreign income tax expense	502	4,787
Income tax expense recognized in profit or loss	\$ 165,911	\$ 69,468

In July 2019, the president of the ROC announced the amendments to the Statute for Industrial Innovation, which stipulate that the amounts of unappropriated earnings in 2018 and thereafter that are reinvested in the construction or purchase of certain assets or technologies are allowed as deduction when computing the income tax on unappropriated earnings.

b. Current tax assets and liabilities

	December 31
	2020	2019
Current tax assets Tax refund receivable (classified as other receivable)	\$ 415	\$ 516
Prepaid income tax (classified as other current assets)	-	24
	\$ 415	\$ 540
Current tax liabilities Income tax payable	\$155,138	\$ 52,169

c. Deferred tax assets and liabilities

The Group offset certain deferred tax assets and deferred tax liabilities that met the offset criteria.

The movements of deferred tax assets and deferred tax liabilities were as follows:

For the year ended December 31, 2020

Deferred Tax Assets	Opening Balance	Recognized in Profit or Loss	Closing Balance
Temporary differences
Unrealized loss on inventories	\$ 12,120	\$ (326)	\$ 11,794
Fixed assets	4,947	(1,509)	3,438
Unrealized sales	883	(883)	-
Exchange (gains) losses	(226)	(1,168)	(1,394)
Other	11,030	8,169	19,199
	\$ 28,754	\$ 4,283	\$ 33,037

For the year ended December 31, 2019

Deferred Tax Assets	Opening Balance	Recognized in Profit or Loss	Closing Balance
Temporary differences
Unrealized loss on inventories	\$ 12,102	\$ 18	\$ 12,120
Fixed assets	4,063	884	4,947
Unrealized sales	675	208	883
Exchange (gains) losses	(1,003)	777	(226)
Other	14,417	(3,387)	11,030
	\$ 30,254	\$ (1,500)	\$ 28,754

d. Deductible temporary differences, unused loss carryforwards and unused investment credits for which no deferred tax assets have been recognized in the consolidated balance sheets

	December 31
	2020	2019
Loss Carryforwards
Expiry in 2020	\$ -	\$ 251,700
Expiry in 2021	530,904	535,328
Expiry in 2022	536,364	536,364
Expiry in 2023	1,467,084	1,467,084
Expiry in 2024	65,199	65,199
Expiry in 2025	49,489	49,489
Expiry in 2026	55,551	55,551
Expiry in 2027	88,194	88,194
Expiry in 2028	130,320	130,320
Expiry in 2029	391,411	75,674
Expiry in 2030	83,032	-
	\$ 3,397,548	\$ 3,254,903
Deductible temporary differences	\$ 117,978	\$ 113,956

e. Unused loss carryforwards and tax-exemptions

Loss carryforwards as of December 31, 2020 pertaining to Sunplus:

Unused Amount	Expiry Year
\$ 322,509 394,894 1,144,831 24,228 329,899 46,749 \$ 2,263,110	2021 2022 2023 2027 2029 2030
Loss carryforwards as of December 31, 2020 pertaining to Sunplus Venture:
Unused Amount	Expiry Year
\$ 4,863 92,197	2022 2023
\$ 97,060
Loss carryforwards as of December 31, 2020 pertaining to Lin Shin:
Unused Amount	Expiry Year
\$ 39,908	2023
Loss carryforwards as of December 31, 2020 pertaining to Sunext:
Unused Amount	Expiry Year
\$ 99,355 100,760 159,490 31,147 975	2021 2022 2023 2024 2025
\$ 391,727
Loss carryforwards as of December 31, 2020 pertaining to Genki Tek:
Unused Amount \$ 7,971	Expiry Year 2030

Loss carryforwards as of December 31, 2020 pertaining to Sunplus mMedia:

Unused Amount		Expiry Year
\$	109,040	2021
	35,847	2022
	30,658	2023
	29,360	2024
	27,164	2025
	11,155	2026
	9,369	2027
	57,427	2028
	25,045	2029
	335	2030

\$ 335,400

Loss carryforwards as of December 31, 2020 pertaining to Jumplux:

Unused Amount		Expiry Year
\$	4,692	2024
	21,350	2025
	44,396	2026
	54,597	2027
	72,893	2028
	36,467	2029
	27,977	2030
\$	262,372

f. Income tax assessments

The income tax returns of Sunplus and Sunplus mMobile through 2017 and Sunplus Innovation Technology, Generalplus, Sunext ,Jumplux, Lin Shih, Sunplus mMedia ,Wei-Young, Sunplus Management Consulting and Sunplus Venture through 2018 have been assessed by the tax authorities.

26. EARNINGS PER SHARE

Unit: NT\$ Per Share

	For the Year Ended December 31
	2020	2019
Basic gain per share	\$ 0.55	\$ 0.03
Diluted earnings per share	\$ 0.55	\$ 0.03

The earnings and weighted average number of ordinary shares outstanding in the computation of earnings per share were as follows:

Net profit for the year

	For the Year Ended December 31
	2020	2019
Profit for the year attributable to owners of the Company	\$	\$
Effect of potentially dilutive ordinary shares	323,403	15,309
Bonuses for employees	-	-
Earnings used in the computation of diluted EPS from continuing	\$	\$
operations	323,403	15,309

The weighted average number of ordinary shares outstanding (in thousand shares) is as follows:

		For the Year Ended December 31
	2020	2019
Weighted average number of ordinary shares used in the
computation of basic earnings per shares	588,435	588,435
Effect of dilutive potential ordinary shares:
Bonuses issued to employees	181	16
Weighted average number of ordinary shares used in the
computation of diluted earnings per share	588,616	588,451

The Group may settle the compensation of employees in cash or shares; therefore, the Group assumes that the entire amount of the compensation will be settled in shares, and the resulting potential shares are included in the weighted average number of shares outstanding used in the computation of diluted earnings per share, as the effect is dilutive. Such dilutive effect of the potential shares is included in the computation of diluted earnings per share until the number of shares to be distributed to employees is resolved in the following year.

27. SHARE-BASED PAYMENT ARRANGEMENTS

a. Restricted shares for employees

In the shareholders' meeting of Sunplus Innovation Technology Company on June 22, 2020, the shareholders approved a restricted share plan for employees with a total amount of NT\$20,000 thousand, consisting of 2,000 thousand shares. The aforementioned resolution was declared effectively by the FSC on October 12, 2020.

The restricted share plan was approved by the board of directors in a total amount of NT\$10,000 thousand, consisting of 1,000 thousand shares and the issuing price of each share was NT\$0. The Company set October 28, 2020 as the grant date and November 5, 2020 as the record date of capital increase. The fair value of granted share was \$75.26 per share.

After the restricted shares are allocated to employees in accordance with the Company's regulations, and they are still working after the expiration of the following vested terms while they meet the performance conditions, the proportions of vested shares are as follows:

• 1) Those who served in the Company for a year after the grant date with recent personal performance rating before the expiration date reaches the top 35% (included) of the Company, will receive 50% of the number of allocated shares.
• 2) Those who served in the Company for two year after the grant date with recent personal performance rating before the expiration date reaches the top 35% (included) of the Company, will receive 50% of the number of allocated shares.

When the employee fails to meet the vesting conditions:

• 1) Resignation (voluntary resignation/retirement/layoff/dismissal): The employee that has not fulfilled the vesting conditions will be deemed to have not met the vesting conditions from the day of resignation. The Company will buy back and cancel the employee's restricted shares at the original issuing price according to the laws.
• 2) Unpaid leave: The employee that has not fulfilled the vesting conditions will be restored to the rights and interests from the date of reinstatement, but the vesting period shall be deferred according to the period of unpaid leave.
• 3) Death: The employee that has not fulfilled the vesting conditions will be deemed to have not met the vesting conditions from the day of death. The Company will buy back and cancel the employee's restricted shares at the original issuing price according to the laws.
• 4) Occupational injury:
• a) Those who are unable to continue their employment due to occupational injury and have not fulfilled the vesting conditions shall still fulfill the vesting conditions according to regulation 3) Death.
• b) Death due to occupational injury may cause the employee not fulfilling the vesting conditions which shall be fulfilled by the heirs from the day of the death of the inherited employee according to regulation 3) Death.
• 5) Transfer employeement: If an employee is requested to transfer to an affiliate company or other company (except tranferring to a subsidiary), the restricted shares shall be proceed according to the regulation of "Resignation". However, due to Sunplus Innovation Technology Comapany's operation need, employees for those who were assigned by Sunplus Innovation Technology Company to be transferred to the company's affiliates or other companies will not be affected.
• 6) Employees or their heirs shall receive the transferred shares according to the trust agreement.
• 7) Share dividends and cash dividends that have been allocated to employees who have not fulfilled the vesting conditions during the vesting period shall not be returned.

The restrictions on the rights of the employees who acquire the restricted shares but have not met the vesting conditions are as follows:

• 1) The employees cannot sell, pledge, transfer, donate or, in any other way, dispose of these shares.
• 2) The employees holding these shares are not entitled to receive cash dividends and share dividends.

3) Employees should immediately place the restricted shares under the trust or custody after the issuance of restricted shares. They shall not request the trustee or custodian to return the restricted shares for any reason before the vesting conditions are fulfilled.

Other agreements were as follow:

Sunplus Innovation Technology Company shall act on behalf of employees to negotiate with trust institutions or custodian institutions. It may include but not limited to negotiate, sign, revise, extend, cancel and terminate the trust contracts or custody contracts and instructions for the delivery, use and disposal of trust or custody property during the period of trust or custody.

Information on employee restricted share was as follows:

	For the Year Ended December 31, 2020
	Number of Options (In Thousands of Units)
Outstanding shares at January 1 Shares granted	- 1,000
Outstanding shares at December 31	1,000

Compensation costs recognized were NT\$9,408 thousand for the years ended December 31, 2020.

28. GOVERNMENT GRANTS

In August 2013, Sun Media Technology Co., Ltd. received a government grant amounting to RMB\$16,390 thousand (NT\$79,213 thousand) for the purchase of land on which to build a plant. The amount was recognized as deferred revenue and subsequently transferred to profit or loss over the useful life of the related asset.

The total revenue recognized as profit for the years ended December 31, 2020 and 2019 was \$1,559 and \$1,629 thousand, respectively.

The Company applied for subsidy under the "Salary and Working Capital Subsidies for Difficult Businesses Affected by Serious Special Infectious Pneumonia" program of the Ministry of Economic Affairs in June 2020. The subsidy period is from April 2020 to June 2020, and the Group has received a subsidy of \$21,034 thousand. The total revenue recognized as profit amounted to \$21,034 thousand for the year ended December 31, 2020 as other income.

Jumplux Technology Co., Ltd. applied for subsidy under the "Salary and Working Capital Subsidies for Difficult Businesses Affected by Serious Special Infectious Pneumonia" program of the Ministry of Economic Affairs in June 2020. The subsidy period is from April 2020 to June 2020, and the Group has received a subsidy of \$2,057 thousand. The total revenue recognized as profit amounted t \$2,057 thousand for the year ended December 31, 2020 as other income.

The Company applied for the AI on Chip R&D subsidy program of the Ministry of Economic Affairs, and the "Shared Intelligent Computing Chiplet Architecture R&D Program" was reviewed and approved on November 20, 2020. The approved total subsidy amounted to NT\$ 115,356 thousand. As of December 31, 2020, the accumulated subsidy received is NT\$ 44,201 thousand (recognized as other financial assets), and the income from the recognized subsidy is NT\$ 0. In addition, the Company has a special account for subsidies in accordance with regulations, and the monthly withdrawal amount should be withdrawn according to the monthly expenditure summary statement, and the withdrawal amount shall not be higher than the expenditure amount.

29. CONSOLIDATION OF SUBSIDIARIES

a. Subsidiaries acquired

	Subsidiary	Principal Activity	Date of Acquisition	Proportion of Voting Equity Interests Acquired (%)	Consideration Transferred
	Worldplus and its subsidiaries	Investment, development of computer software, system integration services and building rental	September 2, 2019	100	\$112,669
b.	Consideration transferred
					Worldplus and Its Subsidiaries
	Cash				\$ 112,669
c.		Assets acquired and liabilities assumed at the date of acquisition
					Worldplus and Its Subsidiaries
	Current assets Cash and cash equivalents Trade and other receivables Non-current assets				\$ 64,454 428
	Property, plant and equipment Construction in progress Investment properties				377 17,088 37,383
	Current liabilities Trade and other payables Long-term payables				(2,303) (4,758)
					\$ 112,669
d.		Net cash outflow on the acquisition of subsidiaries			Worldplus and Its Subsidiaries
	Consideration paid in cash	Less: Cash and cash equivalent balances acquired			\$ 112,669 (64,454)
					\$ 48,215

e. Impact of acquisitions on the results of the Group

Worldplus and Its Subsidiaries Net revenue \$ 2,053 Net loss \$ (2,582)

If the merger of Worldplus and its subsidiaries occurred on January 1, 2019, the Japanese company's proposed operating income and proposed operating net profit were \$5,516,431 and \$125,834, respectively, from January 1 to December 31, 2019. It is reflected that the actual revenue and operating results of the Company should not be used as a predictor of future operating results. The original accounting treatment of Worldplus and its subsidiaries is only tentative on the balance sheet date. For the purpose of taxation, the tax base of Worldplus and its subsidiaries' assets is subject to re-determination based on the market value of such assets and the taxable value of the company's management.

In determining the pro-forma revenue and profit of the Group had Worldplus and its subsidiaries been acquired at the beginning of the financial year, the management considered the following:

1) The fair values of property, plant and equipment, rather than their carrying amounts recognized in the respective pre-acquisition financial statements at the initial accounting for the business combination, were used as a basis for the depreciation of property, plant and equipment.

30. DISPOSAL OF SUBSIDIARIES

2020

a. Analysis of assets and liabilities from liquidation

The Group completed the liquidation of its subsidiary, Ytrip Technology Co., Ltd. and its subsidiary 1culture Communication Co., Ltd. on June 23 and May 29, 2020, respectively.

	Ytrip Technology Co., Ltd. and Its Subsidiaries
Current assets
Cash and cash equivalents	\$ 2,106
Other receivables	281
Non-current assets
Property, plant and equipment	15
Intangible assets	1,814
Current liabilities
Others	(106)
Net assets disposed of	\$ 4,110

b. Gain on liquidation of subsidiaries

		Ytrip Technology Co., Ltd. and Its Subsidiaries
	Consideration received	\$ 1,240
	Net assets disposed of	(4,110)
	Reclassification of other comprehensive income in respect of the
	subsidiaries	10,283
	Non-controlling interests	382
	Gain on disposals	\$ 7,795
c.	Net cash inflow on liquidation of subsidiaries
		Ytrip Technology Co., Ltd. and Its Subsidiaries
	Consideration received Less: Cash and cash equivalent balances disposed of	\$ 1,240 (2,106)

2019

The Group completed the liquidation on its subsidiary, Han Young Technology Co., Ltd. on November 15, 2019.

\$ (866)

a. Analysis of assets and liabilities from liquidation

	Hanyang Technology Co., Ltd.
Current assets
Cash and cash equivalents	\$	2,481
Other receivables		7
Non-current assets
Property, plant and equipment		29
Refundable deposits		55
Current liabilities
Others		(29)
Net assets disposed of	\$	2,543

b. Loss on liquidation of subsidiaries

		Hanyang Technology Co., Ltd.
	Consideration received Net assets disposed of Non-controlling interests	\$ 1,737 (2,543) 763
	Loss on disposal	\$ (43)
c.	Net cash inflow on liquidation of subsidiaries

	Hanyang Technology Co., Ltd.
Consideration received	\$ 1,737
Less: Cash and cash equivalent balances disposed of	(2,481)
	\$ (744)

31. EQUITY TRANSACTIONS WITH NON-CONTROLLING INTERESTS

From January to March, April and September, 2019, Sunplus purchased the equity from the external shareholders of Sunext Technology Co., Ltd. increasing its controlling interest from 91.40% to 91.47%, 91.47% to 91.53% and 91.53% to 92.55%, respectively.

In February, May and December 2019 and June 2020 Giant Rock subscribed for additional new shares of Sunplus APP Technology, and increased Giant Rock's controlling interest from 93.33% to 95.00%, 95.00% to 95.65%, 95.65% to 96.16% and 96.16% to 96.32%, respectively.

In September 2020, Sunplus disposed of its 2.92% share in Sunplus Innovation Technology Company, resulting in a decrease in its controlling interest from 68.86% to 65.94%.

The above transactions were accounted for as equity transactions since the Group did not cease to have control over these subsidiaries.

2020

	Sunplus Innovation Technology Inc.	Sunplus App Technology
Cash consideration paid	\$ 101,014	\$ -
The proportionate share of the carrying amount of the net assets of the subsidiary transferred to non-controlling interests	(31,770)	(183)
Reattribution of other equity from non-controlling interests Unrealized loss on financial assets at FVTOCI	(2,112)	-
Differences recognized from equity transactions	\$ 67,132	\$ (183)

	Sunplus Innovation Technology Inc.		Sunplus App Technology	Total
Line items adjusted for equity transactions
Retained earnings Capital surplus - difference between consideration received or paid and the carrying amount of the subsidiaries' net assets during	\$	-	\$ (183)	\$ (183)
actual disposal or acquisition		67,132	-	67,132
	\$	67,132	\$ (183)	\$ 66,949

2019

	Sunext Technology Co., Ltd.	Sunplus App Technology
Cash consideration paid	\$ (2,184)	\$ -
The proportionate share of the carrying amount of the net assets of the subsidiary transferred to non-controlling interests	2,346	(3,394)
Differences recognized from equity transactions	\$ 162	\$ (3,394)

	Sunext Technology Co., Ltd.		Sunplus App Technology	Total
Line items adjusted for equity transactions
Retained earnings Capital surplus - difference between consideration received or paid and the carrying amount of the subsidiaries' net assets during	\$	-	\$ (3,394)	\$ (3,394)
actual disposal or acquisition		162	-	162
	\$	162	\$ (3,394)	\$ (3,232)

32. CAPITAL MANAGEMENT

The Group manages its capital to ensure that entities in the Group will be able to continue as going concerns while maximizing the return to stakeholders through the optimization of the debt and equity balance.

The capital structure of the Group consists of net debt (borrowings offset by cash and cash equivalents) and equity of the Group (comprising issued capital, reserves, retained earnings and other equity) attributable to owners of the Group.

The Group is not subject to any externally imposed capital requirements.

33. FINANCIAL INSTRUMENTS

a. Fair value of financial instruments that are not measured at fair value

The management of the Group considers that the fair values of financial assets and financial liabilities that are not measured at fair value approximate their fair values.

b. Fair value of financial instruments that are measured at fair value on recurring basis.

1) Fair value hierarchy

December 31, 2020

	Level 1	Level 2		Level 3		Total
Financial assets at FVTPL Mutual funds Domestic/foreign	\$ 656,424	\$	-	\$	-	\$	656,424
unlisted shares Domestic/foreign listed	144,984		-		746,101		891,085
shares Securities listed in the ROC and other	87,933		-		-		87,933
countries - CB	2,820		-		-		2,820
Private funds	-		-		327,856		327,856
	\$ 892,161	\$	-	\$	1,073,957	\$	1,966,118
Financial assets at FVTOCI Domestic listed shares Domestic private listed	\$ 81,506	\$	-	\$	-	\$	81,506
shares	-		-		11,255		11,255
Domestic/foreign unlisted shares	32,323		-		67,444		99,767
	\$ 113,829	\$	-	\$	78,699	\$	192,528
December 31, 2019
	Level 1		Level 2		Level 3		Total
Financial assets at FVTPL Mutual funds Domestic/foreign listed	\$ 1,062,811	\$	-	\$	-	\$	1,062,811
shares	75,715		-		-		75,715
Domestic/foreign unlisted shares Securities listed in the	7,864		-		696,471		704,335
ROC and other countries - CB	15,123		-		-		15,123
Private funds	-		-		260,140		260,140
	\$ 1,161,513	\$	-	\$	956,611	\$	2,118,124 (Continued)

	Level 1	Level 2		Level 3	Total
Financial assets at FVTOCI Domestic listed shares Domestic/foreign unlisted shares	\$ 90,472 18,680	\$	- -	\$ - 80,235	\$ 90,472 98,915
	\$ 109,152	\$	-	\$ 80,235	\$ 189,387 (Concluded)

There were no transfers between Levels 1 and 2 in the current and prior periods.

2) Reconciliation of Level 3 fair value measurements of financial instruments

For the Year Ended December 31, 2020

Financial Assets	Financial Assets at FVTPL	Financial Assets at FVTOCI	Total
Balance at January 1, 2020	\$ 956,611	\$ 80,235	\$ 1,036,846
Recognized in profit or loss	140,724	-	140,724
Recognized in other comprehensive
income	-	(7,386)	(7,386)
Purchases	116,624	10,004	126,268
Disposals and proceeds from return of
capital of investments	(5,548)	(2,628)	(8,176)
Transfer out of Level 3	(131,355)	-	(131,355)
Effect of exchange rate changes	(2,739)	(1,526)	(4,265)
Balance at December 31, 2020	\$ 1,073,957	\$ 78,699	\$ 1,152,656

For the Year Ended December 31, 2019

Financial Assets	Financial Assets at FVTPL	Financial Assets at FVTOCI	Total
Balance at January 1, 2019	\$ 662,584	\$ 110,671	\$ 773,255
Recognized in profit or loss	(25,062)	-	(25,062)
Recognized in other comprehensive
income	-	(35,402)	(35,402)
Purchases	328,054	-	328,054
Disposals and proceeds from return of
capital of investments	(5,963)	(24,604)	(30,567)
Reclassified	-	30,001	30,001
Effect of exchange rate changes	(3,002)	(431)	(3,433)
Balance at December 31, 2019	\$ 956,611	\$ 80,235	\$ 1,036,846

3) Valuation techniques and inputs applied for Level 3 fair value measurement

a) The fair values of unlisted equity securities - in the ROC and other countries were determined using the market approach. The market approach is based on the comparable transaction price of the target, based on the financial data of the target company and its peers, and analyzes and evaluates by market multipliers such as P/E ratio, P/B ratio, price-to-sales ratio or other financial ratios. The significant unobservable inputs used are as follows. An increase in the price-to-book ratio or price-sales ratio or a decrease in the discount for lack of marketability used in isolation would result in increases in fair value.

	December 31
	2020	2019
Price-to-book ratio	2.41-5.78	1.85-4.42
Price-to-sales ratio	1.86-13.46	2.27-6.37
Discount for lack of marketability	10%-20%	10%-20%

• b) The fair values of unlisted shares and emerging market shares were determined using the asset-based approach. The Group assesses that the amount of its net assets attributable to its investment approaches the fair value of the equity investment. The Group assesses the total value of the individual assets and liabilities covered by the target to reflect the overall value of the business.
• c) The fair values of unlisted shares and emerging market shares were determined using the income approach. In this approach, the discounted cash flow method was used to capture the present value of the expected future economic benefits to be derived from the ownership of these investees. The significant unobservable inputs used are listed in the table below. An increase in long-term revenue growth rates or a decrease in the weighted average cost of capital (WACC) or discount for lack of marketability used in isolation would result in increases in fair value.
• c. Categories of financial instruments

	December 31
	2020	2019
Financial assets
Fair value through profit or loss (FVTPL)	\$ 1,966,118	\$ 2,118,124
Financial assets at amortized cost (1)	5,179,818	4,147,636
Financial assets at fair value through other comprehensive income
Equity instruments	192,528	189,387
Financial liabilities
Measured at amortized cost (2)	1,214,367	889,360

• 1) The balances include financial assets at amortized cost, which comprise cash and cash equivalents, notes and trade receivables, other receivable, other financial assets and refundable deposits.
• 2) The balances include financial liabilities at amortized cost, which comprise short-term and long-term loans, trade payables, long-term loans due within one year and guarantee deposits.
• d. Financial risk management objectives and policies

The Group's major financial instruments included mutual funds equity and debt investments, convertible notes, trade receivable, trade payables, borrowings and lease liability. The Group's corporate treasury function provides services to the business, coordinates access to domestic and international financial markets, monitors and manages the financial risks relating to the operations of the Group through internal risk reports which analyze exposures by degree and magnitude of risks. These risks include market risk (including currency risk, interest rate risk and other price risk), credit risk and liquidity risk.

The Corporate Treasury function reported quarterly to the Group's risk management committee.

1) Market risk

The Group's activities exposed it primarily to the financial risks of changes in foreign currency exchange rates (see (a) below) and interest rates (see (b) below). The Group entered into a variety of derivative financial instruments to manage its exposure to foreign currency risk and interest rate risk, including:

a) Foreign currency risk

A part of the Group's cash flows is in foreign currency, and the use by management of derivative financial instruments is for hedging adverse changes in exchange rates, not for profit.

For exchange risk management, each foreign-currency item of net assets and liabilities is reviewed regularly. In addition, before obtaining foreign loans, the Group considers the cost of the hedging instrument and the hedging period.

The carrying amounts of the Group's foreign currency-denominated monetary assets and monetary liabilities (including those eliminated on consolidation) at the end of the reporting period were refer to Note 36.

Sensitivity analysis

The Group was mainly exposed to the USD and RMB.

The following table details the Group sensitivity to a US\$1.00 and RMB1.00 increase and decrease in the New Taiwan dollar (the functional currency) against the relevant foreign currencies. The sensitivity analysis considers the currencies of USD and RMB in circulation, and adjusts the end-of-term conversion to exchange rate change of \$1.00. The sensitivity analysis covers cash and cash equivalents, notes and accounts receivable, other receivables, other financial assets, long-term and short-term loans, accounts payable, other accounts payable and deposit margins. A negative number below indicates a decrease in post-tax profit associated with the New Taiwan dollar strengthening \$1.00 against USD and RMB. For a \$1.00 weakening of the New Taiwan dollar against the relevant currency, there would be an equal and opposite impact on post-tax profit, and the balances below would be positive.

		USD Impact
	For the Year	Ended December 31
	2020	2019
Profit or loss	\$ (13,719)	\$ (18,017)
	RMB	Impact
	For the Year	Ended December 31
	2020	2019
Profit or loss	\$ 4,320	\$ 244

b) Interest rate risk

The Group was exposed to interest rate risk because entities in the Group borrowed funds at both fixed and floating interest rates. The risk is managed by the Group by maintaining an appropriate mix of fixed and floating rate borrowings, and using interest rate swap contracts and forward interest rate contracts. Hedging activities are evaluated regularly to align with interest rate views and defined risk appetite, ensuring the most cost-effective hedging strategies are applied.

The carrying amounts of the Group's financial assets and financial liabilities with exposure to interest rates at the end of the reporting period were as follows:

	December 31
	2020	2019
Fair value interest rate risk
Financial assets	\$ 2,585,743	\$ 2,505,022
Financial liabilities	518,255	565,762
Cash flow interest rate risk
Financial assets	1,321,455	769,506
Financial liabilities	258,000	-

Sensitivity analysis

The sensitivity analyses below were determined based on the Group's exposure to interest rates for both derivatives and non-derivative instruments at the end of the reporting period. For floating rate liabilities, the analysis was prepared assuming the amount of the liability outstanding at the end of the reporting period was outstanding for the whole year. Basis points of 0.125% increase or decrease was used when reporting interest rate risk internally to key management personnel and represents management's assessment of the reasonably possible change in interest rates.

If interest rates had been increased/decreased by 0.125% and all other variables held constant, the Group's post-tax profit for the years ended December 31, 2020 and 2019 would increase/decrease by \$1,329 thousand and \$962 thousand, respectively.

c) Other price risk

The Group was exposed to equity price risk through its investments in listed equity securities. Equity investments are held for strategic rather than trading purposes. The Group does not actively trade these investments.

The sensitivity analyses below were determined based on the exposure to equity price risks at the end of the reporting period.

Had the prices of financial assets at FVTPL been 1% higher/lower, post-tax profit for the year ended December 31, 2020 and 2019 would have increased/decreased by \$19,661 and \$21,181 thousand, respectively.

Had the prices of financial assets at FVTOCI been 1% higher/lower, post-tax profit for the year ended December 31, 2020 and 2019 would have increased/decreased by \$1,925 and \$1,894 thousand, respectively.

2) Credit risk

Credit risk refers to the risk that counterparty will default on its contractual obligations resulting in financial loss to the Group. As at the end of the reporting period, the Group's maximum exposure to credit risk which will cause a financial loss to the Group due to failure to discharge an obligation by the counterparties and financial guarantees provided by the Group is arising from the carrying amount of the respective recognized financial assets as stated in the balance sheets.

In order to minimize credit risk, the management of the Group has delegated a team responsible for determination of credit limits, credit approvals and other monitoring procedures to ensure that follow-up action is taken to recover overdue debts. In addition, the Group reviews the recoverable amount of each individual trade debt at the end of the reporting period to ensure that adequate impairment losses are made for irrecoverable amounts. In this regard, the directors of the Group consider that the Group's credit risk was significantly reduced.

The credit risk on liquid funds and derivatives was limited because the counterparties are banks with high credit ratings assigned by international credit-rating agencies.

Trade receivables consisted of a large number of customers, spread across diverse industries and geographical areas. Ongoing credit evaluation is performed on the financial condition of trade receivables and, where appropriate, credit guarantee insurance cover is purchased.

The Group's concentration of credit risk of 65% and 75% in total trade receivables as of December 31, 2020 and 2019, respectively, was related to the five largest customers within the property construction business segment.

3) Liquidity risk

The Group manages liquidity risk by monitoring and maintaining a level of cash and cash equivalents deemed adequate to finance the Group's operations and mitigate the effects of fluctuations in cash flows. In addition, management monitors the utilization of bank borrowings and ensures compliance with loan covenants.

The Group relies on bank borrowings as a significant source of liquidity. As of December 31, 2020 and 2019, the Group had available unutilized overdraft and financing facilities refer to the following instruction.

a) Liquidity and interest risk rate tables

The following table details the Group's remaining contractual maturity for its non-derivative financial liabilities with agreed repayment periods. The tables had been drawn up based on the undiscounted cash flows of financial liabilities from the earliest date on which the Group can be required to pay. The tables included both interest and principal cash flows.

December 31, 2020

	On Demand or Less than 1 Month	1-3 Months	More than 3 Months to 1 Year	Over 1 Year to 5 Years	5+ Years
Non-derivative financial liabilities
Non-interest bearing Lease liabilities Variable interest rate liabilities Fixed interest rate liabilities	\$ 337,374 1,506 96 189,117	\$ 196,200 3,413 - -	\$ 308 13,651 25,000 125,102	\$ 36,114 53,085 205,000 5,041	\$ - 256,641 - 140,367
	\$ 528,093	\$ 199,613	\$ 164,061	\$ 299,240	\$ 397,008

Additional information about the maturity analysis for lease liabilities:

	Less than 1 Year	1-5 Years	5-10 Years	10-15 Years	15-20 Years	20+ Years
Lease liabilities	\$ 18,570	\$ 53,085	\$ 49,046	\$ 49,046	\$ 41,689	\$ 116,860

December 31, 2019

	On Demand or Less than 1 Month	1-3 Months	More than 3 Months to 1 Year	Over 1 Year to 5 Years	5+ Years
Non-derivative financial liabilities
Non-interest bearing Lease liabilities Fixed interest rate liabilities	\$ 271,434 1,414 179,756	\$ 172,191 3,109 23,984	\$ - 13,074 120,130	\$ - 58,541 4,922	\$ - 266,450 142,928
	\$ 452,604	\$ 199,284	\$ 133,204	\$ 63,463	\$ 409,378

Additional information about the maturity analysis for lease liabilities:

	Less than 1 Year	1-5 Years	5-10 Years	10-15 Years	15-20 Years	20+ Years
Lease liabilities	\$ 17,597	\$ 60,032	\$ 49,046	\$ 49,046	\$ 43,896	\$ 122,971

b) Financing facilities

	December 31
	2020	2019
Unsecured bank overdraft facility, review annually and payable on demand
Amount used Amount unused	\$ 588,140 4,361,912	\$ 323,626 4,515,381
	\$ 4,950,052	\$ 4,839,007

34. TRANSACTIONS WITH RELATED PARTIES

Balances and transactions between the Company and its subsidiaries had been eliminated on consolidation and are not disclosed in this note. Details of transactions between the Group and other related parties are disclosed below.

a. Name and relationship of related parties

Name	Relationship with the Group
Global View Co., Ltd. Beijing Golden Global View Co., Ltd. iCatch Technology, Inc. Advanced Vehicle Systems Co., Ltd.	Associate Associate (Note 1) Associate Associate (Note 2)

Note 1: It is an associate of the Company; subsidiary of Global View Co., Ltd.

Note 2: It is an associate of the company; subsidiary of AutoSys Co., Ltd.

b. Sales of goods

			For the Year Ended December 31
Line Items	Related Party Categories	2020	2019
Sales	Associates	\$ 54,743	\$ 54,712

Sales price to related parties is based on cost and market price. The sales terms to related parties were similar to those with external customers.

c. Receivables from related parties (excluding loans to related parties)

		December 31
Account Item	Related Party	2020	2019
Trade receivables	Associates	\$ 9,740	\$ 11,645
Other trade receivable	Associates	\$ 243	\$ 280

There were no guarantees on outstanding receivables from related parties. For the years ended December 31, 2020 and 2019, no impairment loss was recognized for trade receivables from related parties.

d. Prepayments (excluding loans to related parties)

		December 31
Line Item	Related Party Category	2020	2019
Other current assets	Associate	\$ 108	\$ -

e. Other transactions with related parties

		December 31
Account Item	Related Parties Types	2020	2019
Operating expenses	Associates	\$ 394	\$ 139
Non-operating income and expenses	Associates	\$ 4,504	\$ 10,228

Administrative support services price between the Group and the related parties were negotiated and were thus not comparable with those in the market. There are no other available transactions to be compared with.

The pricing and the payment terms of the lease contract between the Group and the related parties were similar to those with external customers.

f. Compensation of key management personnel

	For the Year Ended December 31
	2020	2019
Short-term employee benefits Post-employment benefits	\$ 48,716 1,193	\$ 50,100 1,297
	\$ 49,909	\$ 51,397

The remuneration of directors and other key management personnel was determined by the Compensation Committee in accordance with individual performance and market trends.

35. PLEDGED OR MORTGAGED ASSETS

The following assets of the Company have been pledged or mortgaged as guarantees for endorsement, loan, purchase quota, leased land and customs clearance:

		December 31
	2020	2019
Buildings, net	\$ 576,333	\$ 595,735
Pledged time deposits (classified as other financial assets, including current and non-current)	149,729	130,819
	\$ 726,062	\$ 726,554

36. EXCHANGE RATE OF FINANCIAL ASSETS AND LIABILITIES DENOMINATED IN FOREIGN CURRENCIES

The Group's significant financial assets and liabilities denominated in foreign currencies aggregated by the foreign currencies other than functional currencies of the entities in the Group and the related exchange rates between the foreign currencies and the respective functional currencies were as follows:

December 31, 2020

	Foreign Currencies (In Thousands)	Exchange Rate	Carrying Amount
Financial assets
Monetary items
USD	\$ 40,747	28.4800	\$ 1,160,475
CNY	1,519	4.3770	6,649
JPY	371	0.2763	103
HKD	152	3.6730	558
GBP	3	38.9000	117
EUR	1	35.0200	35
Nonmonetary items
CHF	560	32.305	18,089
Financial liabilities
Monetary items
USD	27,028	28.4800	769,757
CNY	5,839	4.3770	26,083

December 31, 2019

	Foreign Currencies (In Thousands)	Exchange Rate	Carrying Amount
Financial assets
Monetary items
USD	\$ 44,893	29.980	\$ 1,345,892
CNY	1,399	4.305	6,023
JPY	391	0.276	108
HKD	173	3.849	666
GBP	3	39.360	118
EUR	1	33.590	34
Nonmonetary items
USD	28	30.620	848
CHF	734	30.925	22,705
Financial liabilities
Monetary items
USD	26,876	29.980	805,742
CNY	1,643	4.305	7,073
JPY	241	0.276	67

For the years ended December 31, 2020 and 2019, (realized and unrealized) net foreign exchange losses were NT\$10,900 thousand and NT\$27,640 thousand, respectively. It is impractical to disclose net foreign exchange losses by each significant foreign currency due to the variety of the foreign currency transactions and functional currencies of the entities in the Group.

37. ADDITIONAL DISCLOSURES

• a. Information about significant transactions and investees and b. Information on investees:
• 1) Financings provided: Table 1 (attached)
• 2) Endorsement/guarantee provided: Table 2 (attached)
• 3) Marketable securities held: Table 3 (attached)
• 4) Marketable securities acquired and disposed of at costs or prices of at least NT\$300 million or 20% of the paid-in capital: Table 4 (attached)
• 5) Acquisition of individual real estate at costs of at least NT\$300 million or 20% of the paid-in capital: No.
• 6) Disposal of individual real estate at prices of at least NT\$300 million or 20% of the paid-in capital: No.
• 7) Total purchases from or sales to related parties amounting to at least NT\$100 million or 20% of the paid-in capital: No.

• 8) Receivables from related parties amounting to at least NT\$100 million or 20% of the paid-in capital: No.

• 9) Trading in derivative instruments: No.

• 10) Intercompany relationships and significant intercompany transactions: Table 5 (attached)
• 11) Information on investee: Table 6 (attached)
• c. Information on investments in mainland China
• 1) Information on any investee company in mainland China, showing the name, principal business activities, paid-in capital, method of investment, inward and outward remittance of funds, ownership percentage, net income of investees, investment income or loss, carrying amount of the investment at the end of the period, repatriations of investment income, and limit on the amount of investment in the mainland China area. (Table 7)
• 2) Any of the following significant transactions with investee companies in mainland China, either directly or indirectly through a third party, and their prices, payment terms, and unrealized gains or losses: (Table 8)
  • a) The amount and percentage of purchases and the balance and percentage of the related payables at the end of the period.
  • b) The amount and percentage of sales and the balance and percentage of the related receivables at the end of the period.
  • c) The amount of property transactions and the amount of the resultant gains or losses.
  • d) The balance of negotiable instrument endorsements or guarantees or pledges of collateral at the end of the period and the purposes.
  • e) The highest balance, the end of period balance, the interest rate range, and total current period interest with respect to financing of funds.
  • f) Other transactions that have a material effect on the profit or loss for the period or on the financial position, such as the rendering or receiving of services.
• d. Information of major shareholders:List all shareholders with ownership of 5% or greater showing the name of the shareholder, the number of shares owned, and percentage of ownership of each shareholder (Table 9)

Except for Table 1 to Table 9, there's no further information about other significant transactions.

38. SEGMENT INFORMATION

Information reported to the chief operating decision maker for the purpose of resource allocation and assessment of segment performance focuses on types of goods provided. Since all products have similar economic characteristics and product selling is centralized, the Group reports information as referring to one segment. Thus, the information of the operating segment is the same as that presented in the accompanying financial statements. That is, the revenue by sub segment and operating results for the years ended December 31, 2020 and 2019 are shown in the accompanying consolidated income statements, and the assets by segment as of December 31, 2020 and 2019 are shown in the accompanying consolidated balance sheets.

a. Segment revenues and results

The following was an analysis of the Group's operating revenue and results by reportable segment.

		Segment Revenue
		For the Year Ended December 31
	2020	2019
IC design	\$ 6,084,210	\$ 5,085,074
Income from lease of property, plant, and equipment	230,273	265,330
Other income	99,657	136,256
	\$ 6,414,140	\$ 5,486,660

b. Geographical information

The Group operates in two principal geographical areas - the Asia and Taiwan.

The Group's revenue from external customers by location of operations and information about its non-current assets by location of assets is detailed below.

	Revenue from	External Customers		Non-current Assets
	December	For the Year Ended 31		For the Year Ended December 31
	2020	2019	2020	2019
Asia Taiwan Others	\$ 3,816,229 2,536,578 61,333	\$ 3,474,148 1,955,083 57,429	\$ 2,099,018 1,445,646 -	\$ 2,159,216 1,294,531 -
	\$ 6,414,140	\$ 5,486,660	\$ 3,544,664	\$ 3,453,747

Non-current assets exclude non-current assets held for sale, financial instruments, deferred tax assets, post-employment benefits assets, and assets result from insurance contracts.

c. Information about major customers

Single customers contributing 10% or more to the Group's revenue were as follows:

	For the Year Ended December 31
	2020	2019
Customer A	\$ 1,011,656	\$ 844,237
Customer B	790,658	Note
Customer C	697,017	651,715

Note: The amount of revenue does not reach 10% of the company's net revenue.

FINANCINGS PROVIDED FOR THE YEAR ENDED DECEMBER 31, 2020 (In Thousands of New Taiwan Dollars, Unless Stated Otherwise)

			Financial	Related	Highest Balance	Ending	Actual		Nature of	Business	Reasons for	Allowance for		Collateral	Financing Limit	Aggregate
No.	Lender	Borrower	Statement Account	Parties	for the Period	Balance	Borrowing Amount	Interest Rate	Financing	Transaction Amounts	Short-term Financing	Bad Debt	Item	Value	for Each Borrower	Financing Limit
	2 Sunplus Technology (Shanghai) Co., Ltd.	Sunplus APP Technology	Receivables from related parties	Yes	\$ 12,522	\$ 12,256	\$ 12,256	1.80%	Note 1	\$ -	Note 2	\$ 12,256	-	\$ -	\$ 45,678 (Note 7)	\$ 45,678 (Note 7)
	3 Russell Holdings Ltd.	Sun Media Technology Co., Ltd.	Receivables from related parties	Yes	379,155	242,080	242,080	-	Note 1	-	Note 3	-	-	-	442,278 (Note 8)	442,278 (Note 8)
	4 Sunplus Venture Capital Co., Ltd.	Sun Media Technology Co., Ltd.	Receivables from related parties	Yes	307,005	158,064	158,064	0.65%	Note 1	-	Note 4	-	-	-	348.080 (Note 9)	348.080 (Note 9)
	5 Sunplus Prof-tek Technology (Shenzhen)	Sunplus APP Technology	Receivables from related parties	Yes	39,354	36,986	36,986	1.80%	Note 1	-	Note 5	36,986	-	-	75,045 (Note 10)	75,045 (Note 10)
	6 Lin Shih Investments co., Ltd.	Sun Media Technology Co., Ltd.	Receivables from related parties	Yes	220,157	102,528	102,528	0.65%	Note 1	-	Note 6	-	-	-	334,800 (Note 11)	334,800 (Note 11)

Note 1: Short-term financing.

Note 2: Sunplus Technology (Shanghai) Co., Ltd. provided funds for the operating needs of Sunplus APP Technology.

Note 3: Russell Holdings Ltd. provided funds for the operating needs of Sun Media Technology Co., Ltd.

Note 4: Sunplus Venture Capital provided funds for the operating needs of Sun Media Technology Co., Ltd.

Note 5: Sunplus Prof-tek Technology (Shenzhen) provided funds for the operating needs of Sunplus APP Technology.

Note 6: Lin Shin Investments Co., Ltd. provided funds for the operating needs of Sun Media Technology Co., Ltd.

Note 7: The total amount of all guarantees issued and the individual amount of each guarantee should not exceed 10% Sunplus Technology (Shanghai) Co., Ltd.'s net equity as of its latest financial statement.

Note 8: Russell Holdings Ltd. and the loans are all foreign companies whose parent company directly and indirectly holds 100% of the voting shares. When the short-term financing funds need to be engaged in capital lending, the capital loan and the individual amount and total amount should not exceed the capital loan. The enterprise's net worth should not exceed to 80%, and its period should not exceed more than 2 years.

Note 9: The total amount of all guarantees issued and the individual amount of each guarantee should not exceed 40% of Sunplus Venture Capital Co., Ltd.'s net equity as of its latest financial statements.

Note 10: The total amount of all guarantees issued and the individual amount of each guarantee should not exceed 10% of Sunplus Prof-tek Technology (Shenzhen)'s net equity as of its latest financial statement.

Note 11: The total amount of all guarantees issued and the individual amount of each guarantee should not exceed 40% of Lin Shih Investments Co., Ltd.'s net equity as of its latest financial statement.

TABLE 2

SUNPLUS TECHNOLOGY COMPANY LIMITED AND SUBSIDIARIES

ENDORSEMENTS/GUARANTEES PROVIDED FOR THE YEAR ENDED DECEMBER 31, 2020 (In Thousands of New Taiwan Dollars, Unless Stated Otherwise)

Endorser/ No. Guarantor	Endorsee/Guarantee Name	Nature of Relationship	Limits on Endorsement/ Guarantee Given on Behalf of Each Party	Maximum Balance for the Period	Ending Balance	Actual Borrowing Amount	Value of Collateral Property, Plant, or Equipment	Percentage of Accumulated Amount of Collateral to Net Equity as of the Latest Financial Statements	Maximum Collateral/ Guarantee Amounts Allowable	Provided by the Company	Guarantee Provided by the Subsidiary	Guarantee Provided to a Subsidiary Located in Mainland China
0 Sunplus (Note 1) 1 RUSSELL (Note 2) HOLDINGS LTD.	Sun Media Technology Co., Ltd. Sun Media Technology Co., Ltd.	3 (Note 3) 3 (Note 3)	\$ 841,376 (Note 4) 331,708 (Note 6)	\$ 169,365 122,860	\$ - 113,920	\$ - 113,920	\$ - 113,920	- 20.61	\$ 1,682,753 (Note 5) 331,708 (Note 6)	Yes No	No No	Yes Yes

Note 1: Issuer.

Note 2: Investee.

Note 3: Sunplus and its subsidiaries jointly hold more than 50% of the ordinary shares of the endorsee.

Note 4: For each transaction entity, the guarantee amount should not exceed 10% of the endorsement/guarantee provider's net equity based on the provider's latest financial statements.

Note 5: The guarantee amount should not exceed 20% of the endorsement/guarantee provider's net equity based on the provider's latest financial statements.

Note 6: Russell Holdings Ltd. and the endorsement guaranty object are the parent company which holds 100% voting rights directly or indirectly. For each transaction entity, the guarantee amount should not exceed 60% of the endorsement/guarantee provider's net equity.

TABLE 3

SUNPLUS TECHNOLOGY COMPANY LIMITED AND SUBSIDIARIES

MARKETABLE SECURITIES HELD FOR THE YEAR ENDED DECEMBER 31, 2020

(In Thousands of New Taiwan Dollars, Unless Stated Otherwise, U.S. Dollars and Renminbi in Thousands)

				December 31, 2020
Holding Company Name	Type and Name of Marketable Security	Relationship with the Holding Company	Financial Statement Account	Shares or Units	Carrying	Percentage of	Market Value or	Note
				(In Thousands)	Amount	Ownership (%)	Net Asset Value
Sunplus Technology Company	Yuanta USD Money Market USD	-	Financial assets at FVTPL - current	99	\$ 29,943	-	\$ 29,943	Note 3
Limited (the "Company")	Yuanta Emerging Asia USD Bond Fund	-	Financial assets at FVTPL - current	139	44,044	-	44,044	Note 3
	Pine Bridge Muliti-Income Fund	-	Financial assets at FVTPL - current	95	30,818	-	30,818	Note 3
	Taishin 1699 Money Market	-	Financial assets at FVTPL - current	2,200	30,027	-	30,027	Note 3
	Evergreen Steel Co., Ltd.	-	Financial assets at FVTPL - current	1,500	69,090	-	69,090	Note 4
	Triknight Capital Corporation	-	Financial assets at FVTPL -	29,825	311,021	5	311,021	Note 1
			non-current	2	-	-	-
	Marvest Series 1 Fund	-	Financial assets at FVTPL - non-current					Note 1
	Yuanta Emerging Indonesia and India 4	-	Financial assets at FVTPL -	1,500	14,849	-	14,849	Note 3
	years Bond Fund		non-current
Lin Shih Investment Co., Ltd.	Taiwan Mask Corp.	-	Financial assets at FVTPL - current	101	4,075	-	4,075	Note 2
	UPI Semiconductor Corp.	-	Financial assets at FVTPL - current	300	48,600	-	48,600	Note 1
	A-Spine Asia Co., Ltd.	-	Financial assets at FVTPL - current	197	11,135	-	11,135	Note 1
	Enterex International Limited - CB	-	Financial assets at FVTPL - current	30	2,820	-	2,820	Note 2
	Yong Feng Yu Inc.	-	Financial assets at FVTPL - current	642	29,834	-	29,834	Note 4
	Minton Optic Industry Co., Ltd.	-	Financial assets at FVTPL -	4,272	-	7	-	Note 1
			non-current
	Genius Vision Digital Co., Ltd.	-	Financial assets at FVTPL -	300	-	4	-	Note 1
			non-current
	Sanjet Technology Corporation	-	Financial assets at FVTPL -	8	-	-	-	Note 1
			non-current
	Ortery Technologies, Inc.	-	Financial assets at FVTPL -	103	-	1	-	Note 1
			non-current
	Lead Sun Corporation	-	Financial assets at FVTPL -	1,000	28,130	12	28,130	Note 1
			non-current
	Chain Sea Information Integration Co., Ltd.	-	Financial assets at FVTPL -	48	474	1	474	Note 1
			non-current
	AIII CO., Ltd.	-	Financial assets at FVTPL -	26	431	-	431	Note 1
			non-current
	GEMFOR Leading Financial Solution	-	Financial assets at FVTPL -	13	216	-	216	Note 1
	Provider Fund		non-current
	Ability Enterprise Co., Ltd.	-	Financial assets at FVTOCI -	5,434	81,506	2	81,506	Note 2
			non-current
	Sunplus Technology Co., Ltd.	Parent company	Financial assets at FVTOCI -	3,560	65,148	1	65,148	Note 2
			non-current
	Prine Rich International Co., Ltd.	-	Financial assets at FVTOCI -	33	4,260	-	4,260	Note 1
			non-current

			December 31, 2020
Holding Company Name	Type and Name of Marketable Security	Relationship with the Holding Company	Financial Statement Account	Shares or Units (In Thousands)	Carrying Amount	Percentage of Ownership (%)	Market Value or Net Asset Value	Note
Russell Holdings Limited	Synerchip Inc.	-	Financial assets at FVTPL - non-current	6,452	\$ -	12	\$ -	Note 1
	OZ Optics Limited	-	Financial assets at FVTPL -	1,000	-	8	-	Note 1
	Ortega InfoSystem, Inc.	-	non-current Financial assets at FVTPL - non-current	2,557	-	-	-	Note 1
	Innobrige International Inc.	-	Financial assets at FVTPL - non-current	4,000	-	15	-	Note 1
	Ether Precision Inc.	-	Financial assets at FVTPL - non-current	1,250	-	1	-	Note 1
	Asia Tech Taiwan Venture, L.P.	-	Financial assets at FVTPL - non-current	-	-	5	-	Note 1
	Asia B2B on Line Inc.	-	Financial assets at FVTPL - non-current	1,000	-	3	-	Note 1
	AMED Ventures I, L.P.	-	Financial assets at FVTPL - non-current	-	14,100	2	14,100	Note 1
	Intudo Ventures II, L.P.	-	Financial assets at FVTPL - non-current	-	57,045	6	57,045	Note 1
	GeneOne Diagnostics Corporation	-	Financial assets at FVTOCI - non-current	1,710	19,651	13	19,651	Note 1
Sunplus Venture Capital Co., Ltd.	Charles Schwab - Money Fund	-	Financial assets at FVTPL - current	-	1,934	-	1,934	Note 1
	Taiwan Mask Corp.	-	Financial assets at FVTPL - current	108	4,358	-	4,358	Note 2
	eWave System, Inc.	-	Financial assets at FVTPL	1,833	-	22	-	Note 1
	VenGlobal International Fund	-	non-current Financial assets at FVTPL - non-current	1	-	-	-	Note 1
	Book4u Company Limited	-	Financial assets at FVTPL - non-current	9	-	-	-	Note 1
	Sanjet Technology Corp.	-	Financial assets at FVTPL - non-current	49	-	-	-	Note 1
	Simple Act Inc.	-	Financial assets at FVTPL - non-current	1,900	-	10	-	Note 1
	Minton Optic Industry Co., Ltd.	-	Financial assets at FVTPL - non-current	5,000	-	8	-	Note 1
	Genius Vision Digital Co., Ltd.	-	Financial assets at FVTPL - non-current	375	-	5	-	Note 1
	Ortery Technologies, Inc.	-	Financial assets at FVTPL - non-current	68	-	1	-	Note 1
	CYBERON Corporation	-	Financial assets at FVTPL - non-current	786	24,080	8	24,080	Note 1
	Grand Fortune Venture Capital Co., Ltd.	-	Financial assets at FVTPL - non-current	5,000	55,735	7	55,735	Note 1
	Huijia Health Life Technology	-	Financial assets at FVTPL - non-current	1,000	17,280	5	17,280	Note 1
	San Neng Group Holding Co., Ltd.	-	Financial assets at FVTPL - non-current	900	35,190	1	35,190	Note 2
	Raynergy Tek Inc.	-	Financial assets at FVTPL - non-current	5,210	75,962	15	75,962	Note 1

						December 31, 2020
Holding Company Name	Type and Name of Marketable Security	Relationship with the Holding Company	Financial Statement Account	Shares or Units (In Thousands)	Carrying Amount	Percentage of Ownership (%)	Market Value or Net Asset Value	Note
Sunplus Venture Capital Co., Ltd.	Fuyou Venture Capital Limited Partnership	-	Financial assets at FVTPL - non-current	-	\$ 34,649	10	\$ 34,649	Note 1
	CDIB Capital Growth Partners L.P.	-	Financial assets at FVTPL -	-	67,035	2	67,035	Note 1
	TIEF Fund LP	-	non-current Financial assets at FVTPL -	-	40,506	7	40,506	Note 1
	Intudo Ventures I, L.P.	-	non-current Financial assets at FVTPL - non-current	-	44,862	8	44,862	Note 1
	Promise Technology Inc.	-	Financial assets at FVTOCI - non-current	962	11,255	-	11,255	Note 1
	Feature Integration Technology Inc.	-	Financial assets at FVTOCI - non-current	1,247	32,323	4	32,323	Note 4
	Qun-Kin Venture Capital	-	Financial assets at FVTOCI - non-current	3,000	22,114	6	22,114	Note 1
	Protect Life International Biomedical Inc.	-	Financial assets at FVTOCI - non-current	1,364	3,330	4	3,330	Note 1
Wei-Young Investment Inc.	ASE Industrial Holding Co., Ltd.	-	Financial assets at FVTPL - current	300	24,390	-	24,390	Note 2
	LITE-ON Technology Corporation	-	Financial assets at FVTPL - current	400	19,200	-	19,200	Note 2
Sunplus Technology (Shanghai) Co., Ltd.	GF Live Treasury Currency B	-	Financial assets at FVTPL - current	5,100	22,339	-	22,339	Note 3
	GF Every Day The Red Haired Type Money Market Fund B	-	Financial assets at FVTPL - current	900	3,980	-	3,980	Note 3
	Chongqing CYIT Communication Technology Co., Ltd.	-	Financial assets at FVTPL - non-current	-	-	3	-	Note 1
	Ready Sun Investment Group Fund	-	Financial assets at FVTPL - non-current	-	41,529	16	41,529	Note 1
	Xiamen Xm-plus Technology Ltd.	-	Financial assets at FVTPL - non-current	-	39,692	3	39,692	Note 1
Generalplus Technology Inc.	Franklin Templeton SinoAm Money Market	-	Financial assets at FVTPL - current	8,725	90,988	-	90,988	Note 3
Sunplus Innovation Technology Inc.	Mega Diamond Money Market	-	Financial assets at FVTPL - current	810	10,246	-	10,246	Note 3
	Yuata De-Bao Money Market Fund	-	Financial assets at FVTPL - current	6,610	80,043	-	80,043	Note 3
	Yuanta Wan Tai Money Market Fund	-	Financial assets at FVTPL - current	3,933	60,003	-	60,003	Note 3
	Fuh Hwa You Li Money Market	-	Financial assets at FVTPL - current	6,658	90,402	-	90,402	Note 3
	Taishin Ta-Chong Money Market Fund	-	Financial assets at FVTPL - current	4,192	60,029	-	60,029	Note 3
	Taishin 1699 Money Market	-	Financial assets at FVTPL - current	5,877	80,192	-	80,192	Note 3
	Advanced Silicon SA	-	Financial assets at FVTOCI - non-current	1,000	18,089	10	18,089	Note 1
	Advanced NuMicro System, Inc.	-	Financial assets at FVTOCI - non-current	2,000	-	8	-	Note 1
	PointGrab Ltd.	-	Financial assets at FVTOCI - non-current	182	-	1	-	Note 1
Magic Sky Limited	GTA Co., Ltd.	-	Financial assets at FVTPL - non-current	1,413	-	-	-	Note 1
Giant Rock Inc.	Xiamen Xm-plus Technology Ltd.	-	Financial assets at FVTPL - non-current	-	161,475	13	161,475	Note 1
Sunext Technology Co., Ltd.	Evergeen Steel Co., Ltd.	-	Financial assets at FVTPL - current	1,000	46,060	-	46,060	Note 4

					December 31, 2020
Holding Company Name	Type and Name of Marketable Security	Relationship with the Holding Company	Financial Statement Account	Shares or Units (In Thousands)	Carrying Amount	Percentage of Ownership (%)	Market Value or Net Asset Value	Note
Jslilicon Technology Co., Ltd. (Ru Dong)	GF Live Treasury Currency A	-	Financial assets at FVTPL - current	500	\$ 2,196	-	\$ 2,196	Note 3
	GF Every Day The Red Haired Type	-	Financial assets at FVTPL - current	500	2,196	-	2,196	Note 3
	Money Market Fund B GF Purse Money Market Fund A	-	Financial assets at FVTPL - current	500	2,195	-	2,195	Note 3

Note 1: The market value was based on the carrying amount as of December 31 2020.

Note 2: The market value was based on the closing price as of December 31, 2020.

Note 3: The market value was based on the net asset value of the fund as of December 31, 2020.

Note 4: The market value was based on the average quoted price as of December 31, 2020. (Concluded)

TABLE 4

SUMPLUS TECHNOLOGY COMPANY LIMITED AND SUBSIDIARIES

MARKETABLE SECURITIES ACQUIRED OR DISPOSED OF AT COSTS OR PRICES OF AT LEAST NT\$300 MILLION OR 20% OF THE PAID-IN CAPITAL FOR THE YEAR ENDED DECEMBER 31, 2020 (In Thousands of New Taiwan Dollars, Unless Stated Otherwise)

					Beginning Balance			Acquisition (Note 1)			Disposal (Note 2)			Ending Balance (Note 3)
Company Name	Type and Name of Marketable Securities	Financial Statement Account	Counterparty	Relationship	Number of Shares	Amount	Number of Shares	Amount	Number of Shares	Amount	Carrying Amount	Gain (Loss) on Disposal	Number of Shares	Amount
Sunplus Innovation Technology Inc.	Yuanta De-Bao Money Market Fund	Financial assets at fair value through profit or loss-current	-	\$ -	-	\$ -	13,227	\$ 160,000	6,617	\$ 80,028	\$ 80,000	\$ 28	6,610	\$ 80,043

Note 1: The cumulative amount of buying and selling should be calculated separately at market price whether it reaches NT\$ 300 million or 20% of the paid-in capital。

Note 2: Paid-in capital refers to the paid-in capital of Sunplus Innovation Technology Inc.

Note 3: The amount of ending balance includes the amount of unrealized gains and losses。

TABLE 5

SUNPLUS TECHNOLOGY COMPANY LIMITED AND SUBSIDIARIES

INTERCOMPANY RELATIONSHIPS AND SIGNIFICANT INTERCOMPANY TRANSACTIONS FOR THE YEAR ENDED DECEMBER 31, 2020 (In Thousands of New Taiwan Dollars, Unless Stated Otherwise)

		Flow of		Intercompany Transactions
Company Name	Counterparty	Transactions (Note 5)	Financial Statement Account Item	Amount	Terms	Percentage of Consolidated Total Gross Sales or Total Assets
Sunplus Technology Co., Ltd. (the "Company")	Generalplus Technology Inc.	1	Sales Notes and accounts receivable Other receivable	\$ 4,458 954 3	Note 1 Note 1 Note 3	0.07% 0.01% -
	Sunext Technology Co., Ltd.	1	Non-operating income Sales Non-operating income	141 181 1,692	Note 3 Note 1 Note 2	- - 0.03%
			Notes and accounts receivable Other receivable Cost of goods sold	58 301 60	Note 1 Note 3 Note 2	- - -
	Sunplus Innovation Technology Inc.	1	Sales Non-operating income Research and development expenses	376 3,827 35	Note 1 Note 2 Note 2	0.01% 0.06% - -
			Notes and accounts receivable Other receivables	63 281	Note 1 Note 3	- 0.05%
	Jumplux Technology Co., Ltd.	1	Sales Non-operating income Notes and accounts receivable Other receivables	3,090 16,938 330 1,253	Note 1 Notes 2 and 4 Note 1 Note 3	0.26% - 0.01%
	Genki Tek Co.	1	Other receivables Non-operating income	100 885	Note 3 Note 2	- 0.01%
	Chongqing CQPlus1 Technology Co., Ltd.	1	Cost of goods sold Other payables	2,346 525	Note 2 Note 1	0.04% -
Sunplus Innovation Technology Inc.	Sun Media Technology Co., Ltd.	2	Other payables Marketing expenses	1,120 4,149	Note 3 Note 2	0.01% 0.06%
	Sunplus Prof-tek (Shenzhen) Co., Ltd.	2	Other payables Marketing expenses	8,716 23,833	Note 3 Note 2	0.07% 0.37%
Generalplus Technology Inc.	Generalplus Technology (H.K.) Inc.	2	Marketing expenses Other payables	12,292 2,867	Note 2 Note 3	0.19% 0.02%
	Generalplus Technology (Shenzhen) Inc.	2	Sales Research and development expenses Other payables	16,796 70,195 16,646	Note 2 Note 2 Note 3	0.26% 1.09% 1.32%
	Sunplus Innovation Technology Inc.	2	Sales Notes and accounts receivable	18 9	Note 1 Note 3	- -
Sunplus Technology (Shanghai) Co., Ltd.	SunMedia Technology Co., Ltd.	2	Other payables Research and development expenses	1,640 1,610	Note 3 Note 2	0.01% 0.03%
	Jumplux Technology Co., Ltd.	2	Sales	3,368	Note 1	0.05%

Counterparty	Transactions (Note 5)	Financial Statement Account Item	Amount	Terms	Percentage of Consolidated Total Gross Sales or Total Assets
Sunplus Technology (Beijing)	2	Other payables	\$ 294	Note 3	-
		Research and development expenses	366	Note 2	0.01%
Chongqing CQPlus1 Technology Co., Ltd.	2	Other payables	1,377	Note 3	0.01%
		Research and development expenses	1,331	Note 2	0.02%
Jsilicon Technology Co., Ltd. (Ru Domng)	2	Sales	23,636	Note 1	0.37%
Sun Media Technology Co., Ltd.	2	Other receivables	102,836	Note 3	0.81%
		Interest revenue	1,343	Note 2	0.02%
Sun Media Technology Co., Ltd.	2	Other receivables	158,530	Note 3	1.26%
		Interest revenue	2,498	Note 2	0.04%
Sun Media Technology Co., Ltd.	2	Other receivables	242,756	Note 3	1.92%
Chongqing CQPlus1 Technology Co., Ltd.	2	Sales	701	Note 1	0.01%
Sunplus Technology (Beijing)	2	Management expenses	783	Note 2	0.01%
		Refundable deposits	52	Note 2	-
		Other current assets	104	Note 2	-
		Flow of			Intercompany Transactions

Note 1: The transactions were based on normal commercial prices and terms.

Note 2: The prices were based on negotiations; the payment period and related terms were not comparable to market terms.

Note 3: The transaction payment terms were similar to normal commercial terms.

Note 4: Lease transaction terms were based on negotiations, and were thus not comparable to market terms. The transactions between the Company and counterparty were made under normal terms.

Note 5: 1 - From parent company to subsidiary.

2 - Between subsidiaries.

(Concluded)

NAMES, LOCATIONS, AND RELATED INFORMATION OF INVESTEES ON WHICH THE COMPANY EXERCISES SIGNIFICANT INFLUENCES DECEMBER 31, 2020 (In Thousands of New Taiwan Dollars, Unless Stated Otherwise)

				Investment Amount			Balance as of December 31, 2020		Net Income
Investor	Investee	Location	Main Businesses and Products	December 31,	December 31,	Shares (In	Percentage of	Carrying	(Loss) of the	Investment Gain (Loss)	Note
				2020	2019	Thousands)	Ownership (%)	Amount	Investee
Sunplus Technology Company Limited	Ventureplus Group Inc.	Belize	Investment	\$ 2,290,639 (US\$ 74,605	\$ 2,290,639 (US\$ 74,605	-	100	\$ 1,460,438 \$	70,116 \$		70,116 Subsidiary
				RMB\$ 37,900)	RMB\$ 37,900)
	Award Glory Ltd.	Belize	Investment	222,400	219,336	-	100	268,500	107,601		107,601 Subsidiary
				(US\$ 5,642	(US\$ 5,642
				RMB\$ 14,100)	RMB\$ 13,400)
	Global View Co., Ltd.	Hsinchu, Taiwan	Consumer electronics, components and	315,658	315,658	8,229	13	346,011	399,236		52,151 Investee
			rental of buildings
	Lin Shih Investment Co., Ltd.	Hsinchu, Taiwan	Investment	699,988	699,988	70,000	100	771,853	73,864		72,796 Subsidiary
	Generalplus Technology Inc.	Hsinchu, Taiwan	Design of ICs	281,001	281,001	37,324	34	713,447	282,037		96,740 Subsidiary
	Sunplus Venture Capital Co., Ltd.	Hsinchu, Taiwan	Investment	829,982	999,982	83,000	100	870,199	(11,787)		(11,787) Subsidiary
	Sunplus Innovation Technology Inc.	Hsinchu, Taiwan	Design of ICs	382,894	414,663	29,949	58	746,919	467,669		280,285 Subsidiary
	Russell Holdings Limited	Cayman Islands, British West Indies	Investment	715,133	702,317	25,110	100	552,847	(4,795)		(4,795) Subsidiary
				(US\$ 25,110)	(US\$ 24,660)						(Note 2)
	iCatch Technology, Inc.	Hsinchu, Taiwan	Design of ICs	207,345	207,345	20,735	29	245,579	(76,538)		(25,750) Investee
	Sunext Technology Co., Ltd.	Hsinchu, Taiwan	Design of ICs	983,237	983,237	58,778	93	211,723	18,896		17,489 Subsidiary
	Sunplus mMedia Inc.	Hsinchu, Taiwan	Design of ICs	407,565	407,565	22,441	90	23,327	(334)		(300) Subsidiary
	Sunplus Management Consulting Inc. Sunplus Technology (H.K.) Co., Ltd.	Hsinchu, Taiwan Kowloon Bay, Hong Kong	Management International trade	5,000 40,678	5,000 40,678	500 11,075	100 100	3,578 30	(190) (4)		(190) Subsidiary (4) Subsidiary
				(HK\$ 11,075)	(HK\$ 11,075)
	Magic Sky Limited	Samoa	Investment	291,635	289,357	-	100	2,435	(31,245)		(31,245) Subsidiary
				(US\$ 10,240)	(US\$ 10,160)
	Sunplus mMobile Inc.	Hsinchu, Taiwan	Design of ICs	2,596,792	2,596,792	16,240	100	29,406	(170)		(170) Subsidiary
	Wei-Young Investment Inc.	Hsinchu, Taiwan	Investment	70,157	70,157	5,400	100	59,391	9,789		9,789 Subsidiary
	Jumplux Technology Co., Ltd.	Hsinchu, Taiwan	Design of ICs	132,000	132,000	13,200	55	(10,042)	(25,900)		(14,246) Subsidiary
Lin Shih Investment Co., Ltd.	Generalplus Technology Inc.	Hsinchu, Taiwan	Design of ICs	86,256	86,256	14,892	14	285,983	282,037		38,598 Subsidiary
	Sunplus Innovation Technology Inc.	Hsinchu, Taiwan	Design of ICs	15,701	15,701	1,075	2	24,585	467,669		9,768 Subsidiary
	iCatch Technology, Inc. Sunplus mMedia Inc.	Hsinchu, Taiwan Hsinchu, Taiwan	Design of ICs Design of ICs	9,645 19,408	9,645 19,408	965 650	1 3	12,244 5,340	(76,538) (334)		(1,034) Investee (9) Subsidiary
	Yizhiliang Accelerator Co., Ltd.	Hsinchu, Taiwan	Investment management consultant	1,250	-	125	13	1,064	(1,487)		(186) Investee
Sunplus Venture Capital Co., Ltd.	Jumplux Technology Co., Ltd.	Hsinchu, Taiwan	Design of ICs	101,000	101,000	10,100	42	(7,683)	(25,900)		(10,899) Subsidiary
	Sunplus Innovation Technology Inc.	Hsinchu, Taiwan	Design of ICs	57,388	57,388	2,904	6	73,405	467,669		26,392 Subsidiary
	iCatch Technology, Inc.	Hsinchu, Taiwan	Design of ICs	33,439	33,439	3,332	5	42,295	(76,538)		(3,573) Investee
	Sunplus mMedia Inc.	Hsinchu, Taiwan	Design of ICs	44,878	44,878	1,909	8	431	(334)		(26) Subsidiary
	Genki Tek Co.	Taipei, Taiwan	Software development	20,000	-	2,000	63	15,018	(7,971)		(4,982) Subsidiary
	Yizhiliang Accelerator Co., Ltd.	Hsinchu, Taiwan	Investment management consultant	1,250	-	125	13	1,064	(1,487)		(186) Investee
Russell Holdings Limited	Autosys Co., Ltd.	Cayman Islands, British West Indies	Investment	71,200	71,200	5,000	16	71,439	(35,131)		(5,709) Investee
				(US\$ 2,500)	(US\$ 2,500)
Ventureplus Group Inc.	Ventureplus Mauritius Inc.	Mauritius	Investment	2,290,639	2,290,639	-	100	1,460,436	70,117		70,117 Subsidiary
				(US\$ 74,605	(US\$ 74,605
				RMB\$ 37,900)	RMB\$ 37,900)
Ventureplus Mauritius Inc.	Ventureplus Cayman Inc.	Cayman Islands, British West Indies	Investment	2,290,639	2,290,639	-	100	1,460,415	70,118		70,118 Subsidiary
				(US\$ 74,605 RMB\$ 37,900)	(US\$ 74,605 RMB\$ 37,900)
Generalplus Technology Inc.	Generalplus International (Samoa) Inc.	Samoa	Investment	543,683	543,683	19,090	100	499,149	15,407		15,407 Subsidiary
				(US\$ 19,090)	(US\$ 19,090)
Generalplus International (Samoa) Inc.	Generalplus (Mauritius) Inc.	Mauritius	Investment	543,683	543,683	19,090	100	499,292	15,407		15,407 Subsidiary
				(US\$ 19,090)	(US\$ 19,090)
Generalplus (Mauritius) Inc.	Generalplus Technology (Hong Kong) Co., Ltd.	Hong Kong	Sales	11,107	11,107	-	100	6,001	1,576		1,576 Subsidiary
				(US\$ 390)	(US\$ 390)

				Investment Amount	Balance as of December 31, 2020		Net Income
Investor	Investee	Location	Main Businesses and Products	December 31, December 31, 2020 2019	Shares (In Thousands)	Percentage of Ownership (%)	Carrying Amount	(Loss) of the Investee	Investment Gain (Loss)	Note
Award Glory Ltd.	Sunny Fancy Ltd.	Seychelles	Investment	\$ 222,400 \$ 219,336 (US\$ 5,642 (US\$ 5,642 RMB\$ 14,100) RMB\$ 13,400)	-	100	\$ 268,500 \$	107,601 \$		107,601 Subsidiary
Sunny Fancy Ltd.	Giant Kingdom Ltd.	Seychelles	Investment	21,987 21,987 (US\$ 772) (US\$ 772)	-	100	301	167		167 Subsidiary
	Giant Rock Inc.	Anguilla	Investment	97,885 94,821 (US\$ 1,270 (US\$ 1,270 RMB\$ 14,100) RMB\$ 13,400)	-	100	163,631	112,579		112,579 Subsidiary
	Worldplus Holdings L.L.C.	America	Investment	102,528 102,528 (US\$ 3,600) (US\$ 3,600)	-	100	104,569	(5,146)		(5,146) Subsidiary
	Giant Best Ltd.	Seychelles	Investment	(Note 3) (Note 3)	(Note 3)	(Note 3)	(Note 3)	(Note 3)	(Note 3)	Subsidiary

Note 1: The initial exchange rate was based on the exchange rate as of December 31, 2020.

Note 2: The amount of remittances in this period has not completed registration of capital changes.

Note 3: The establishment registration has been completed at the end of December 2020, but the actual remittance has not been completed yet.

(Concluded)

INFORMATION ON INVESTMENTS IN MAINLAND CHINA FOR THE YEAR ENDED DECEMBER 31, 2020 (In Thousands of New Taiwan Dollars, Unless Stated Otherwise)

Investee Company Name Main Businesses and Products Total Amount of Paid-in Capital Investment Type Accumulated Outflow of Investment from Taiwan as of January 1, 2020 Investment Flows Accumulated Outflow of Investment from Taiwan as of December 31, 2020 % Ownership of Direct or Indirect Investment Outflow Inflow Sunplus Technology (Shanghai) Co., Ltd. Development of computer software, system integration services and building rental \$ 489,856 (US\$ 17,200 Note 1 \$ 502,814 (US\$ 17,655) \$ - \$ - \$ 502,814 (US\$ 17,655) Sunplus Prof-tek (Shenzhen) Co., Ltd. Development of computer software, system integration services and building rental 918,480 (US\$ 32,250) Note 1 918,480 (US\$ 32,250) - - 918,480 (US\$ 32,250) Sun Media Technology Co., Ltd. Development of computer software, system integration services and building rental 569,600 (US\$ 20,000) Note 1 569,600 (US\$ 20,000) - - 569,600 (US\$ 20,000) Sunplus App Technology Co., Ltd. Manufacturing and sale of computer software; system integration services and information management and education 119,054 (RMB 27,200) Note 1 108,606 (US\$ 586 RMB 21,000) 5,252 (RMB 1,200) - 113,859 (US\$ 586 RMB 22,200) Ytrip Technology Co., Ltd. Computer system integration services and supplying general advertising and other information services 268,091 (RMB 61,250) Note 1 128,473 (US\$ 4,511) - - 128,473 (US\$ 4,511) Sunplus Technology (Beijing) Development of computer software, system integration services and building rental 118,179 (RMB 27,000) Note 1 118,179 (RMB 27,000) - - 118,179 (RMB 27,000) 1culture Communication Co., Ltd. System development 14,225 (RMB 3,250) Note 3 - - - - - (72) (72) Note 8 - JSilicon Technology Co., Ltd. (Ru Domg) Development of computer software, system integration services 87,540 (RMB 20,000) Note 4 - - - - 100% (43,990) (43,990) 27,323 - Lingyao Technology Co., Ltd. (Shenzhen) Development of computer software, system integration services and building rental 83,334 (RMB 19,039) Note 6 102,528 (US\$ 3,600) - - 102,528 (US\$ 3,600) Chongqing CQPlus1 Technology Co., Ltd. Development of computer software, system integration services 131,310 (RMB 30,000) Note 5 - - - - 100% (38,399) (38,399) 81,133 -

	Net Income (Loss) of the investee	Investment Loss (Note 2)	Carrying Value as of December 31, 2020	Accumulated Inward Remittance of Earnings as of December 31, 2020
100%	\$ 21,637	\$ 21,637	\$ 456,784	\$ -
100%	(19,319)	(19,319)	750,454	-
100%	60,077	60,077	194,410	-
96%	(4,656)	(4,480)	4,623	-
- 100%	168 1,747	153 1,747	Note 7 51,826	- -
100%	(3,813)	(5,146)	104,569	-

Accumulated Investment in Mainland China as of December 31, 2020	Investment Amounts Authorized by the Investment Commission, MOEA	Limit on Investment
\$ 2,498,419 (US\$ 79,872 RMB 51,100)	\$ 2,509,959 (US\$ 78,602 RMB 62,000)	\$ 5,048,258

Sunplus Venture Capital Co., Ltd.

Accumulated Investment in Mainland China as of December 31, 2020	Investment Amounts Authorized by Investment Commission, MOEA	Limit on Investment
\$ 35,885 (US\$ 1,260)	\$ 35,885 (US\$ 1,260)	\$ 522,119

Generalplus Technology (Nature of Relationship: 1)

						Investment Flows	Accumulated					Accumulated
Investee Company Name	Main Businesses and Products	Total Amount of Paid-in Capital	Investment Type (e.g., Direct or Indirect)	Accumulated Outflow of Investment from Taiwan as of January 1, 2020	Outflow	Inflow	Outflow of Investment from Taiwan as of December 31, 2020	% Ownership of Direct or Indirect Investment	Net Loss of the investee	Investment Loss (Note 2)	Carrying Value as of December 31, 2020	Inward Remittance of Earnings as of December 31, 2020
Generalplus Shenzhen	Design of ICs, after sales service and marketing research	\$ 523,576 (US\$ 18,700)	Note 1	\$ 523,576 (US\$ 18,700)	\$ -	\$ -	\$ 523,576 (US\$ 18,700)	100%	\$ 13,831	\$ 13,831 \$	493,271	\$ -

Accumulated Investment in Mainland China as of December 31, 2020	Investment Amount Authorized by the Investment Commission, MOEA	Limit on Investment
\$ 523,576 (US\$ 18,700)	\$ 523,576 (US\$ 18,700)	\$ 1,265,588

Note 1: Indirect investment in a company located in mainland China through investment in a company located in a third country.

Note 2: Based on the reviewed financial statements of investees in the same period.

• Note 3: Ytrip Technology Co., Ltd.'s indirect investment in a company located in mainland China.
• Note 4: Sunplus Technology (Shanghai) Co., Ltd.'s indirect investment in a company located in mainland China.
• Note 5: Sunplus Technology (Shanghai) and Sunplus Prof-tek (Shenzhen) Technology Co., Ltd. reinvested in a company located in mainland China.
• Note 6: It is a company located in mainland China that acquired the investment of the third regional investment company on September 2, 2019.

Note 7: The liquidation of Ytrip Technology was completed on June 23, 2020.

Note 8: The liquidation of 1Culture Communication was completed on May 29, 2020.

Note 9: The Ministry of Economic Affairs approved an investment in the shares of San Neng Group Holding Co., Ltd., which is accounted for under the financial assets at fair value through profit or loss- non-current.

Note 10: The original foreign currency was derived from the exchange rate on December 31, 2020.

(Concluded)

TABLE 8

SUNPLUS TECHNOLOGY COMPANY LIMITED AND SUBSIDIARIES

SIGNIFICANT TRANSACTIONS WITH INVESTEE COMPANIES IN MAINLAND CHINA, EITHER DIRECTLY OR INDIRECTLY THROUGH A THIRD PARTY, AND THEIR PRICES, PAYMENT TERMS, AND UNREALIZED GAINS OR LOSSES FOR THE YEAR ENDED DECEMBER 31, 2020

(In Thousands of New Taiwan Dollars, Unless Stated Otherwise)

		Research and Development Expense				Transaction Details	Notes/Trade Receivables (Payables)		Unrealized
Investee Company	Transaction Type	Amount	%	Price	Payment Terms	Comparison with Market Transactions	Ending Balance	%	(Gain) Loss	Note
Generalplus Technology (Shenzhen) Corp.	Development and processing services Sales	\$ 70,195 16,796	15 0.58	Based on contract Based on contract	Based on contract Based on contract	Not comparable with market transactions Not comparable with market transactions	\$ 16,646 -	85.16 -	\$ - (344)	NA NA

INFORMATION OF MAJOR SHAREHOLDERS FOR THE YEAR ENDED DECEMBER 31, 2020 (In Thousands of New Taiwan Dollars, Unless Stated Otherwise)

	Shares
Name of Major Shareholder	Number of Shares	Percentage of Ownership (%)
Chou-chye, Huang	92,737,817	15.66

• Note 1: The information of major shareholders presented in this table is provided by the Taiwan Depository & Clearing Corporation based on the number of ordinary shares and preferred shares held by shareholders with ownership of 5% or greater, that have been issued without physical registration (including treasury shares) by the Company as of the last business day for the current quarter. The share capital in the consolidated financial statements may differ from the actual number of shares that have been issued without physical registration because of different preparation basis.
• Note 2: If a shareholder delivers the shareholdings to the trust, the above information will be disclosed by the individual truster who opened the trust account. For shareholders who declare insider shareholdings with ownership greater than 10% in accordance with the Security and Exchange Act, the shareholdings include shares held by shareholders and those delivered to the trust over which shareholders have rights to determine the use of trust property. For information relating to insider shareholding declaration, please refer to Market Observation Post System.