Sunplus Technology Company Limited and Subsidiaries

Consolidated Financial Statements for the Years Ended December 31, 2021 and 2020 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, 2021 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

CHOU-CHYE HUANG Chairman

March 29, 2022

INDEPENDENT AUDITORS’ REPORT

The Board of Directors and Shareholders Sunplus Technology Company Limited

Opinion

In our opinion, the accompanying consolidated financial statements present fairly, in all material respects, the consolidated financial position of the Group as of December 31, 2021 and 2020, and its consolidated financial performance and its consolidated cash flows for the years then ended in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and International Financial Reporting Standards (IFRS), International Accounting Standards (IAS), IFRIC Interpretations (IFRIC), and SIC Interpretations (SIC) endorsed and issued into effect by the Financial Supervisory Commission of the Republic of China.

Basis for Opinion

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

Key Audit Matters

Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the consolidated financial statements for the year ended December 31, 2021. These matters were addressed in the context of our audit of the consolidated financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.

The key audit matters identified in the Group’s consolidated financial statements for the year ended December 31, 2021 is as follows:

Occurrence of Revenue from Specific Customers

Integrated circuit chip sales accounted for 96% of the Group’s total revenue. In particular, some of the customers whose revenue has grown significantly carry a higher risk related to the occurrence of sales revenue. Therefore, we considered the occurrence of revenue as a key audit matter. For detailed disclosure of revenue, refer to Notes 4 and 24 to the accompanying consolidated financial statements.

Our audit procedures performed in respect of the above key audit matter included the following:

We obtained an understanding of the related internal control and operating procedures in the Company’s sales transaction cycle, and we evaluated and confirmed the operating effectiveness of the related internal control and operating procedures.

We selected samples from the sales details, and we examined customers’ original orders, sales electronic orders, delivery orders, logistics receipt documents or export declaration, and sales invoices for any abnormalities and confirmed that sales revenue did occur .

Other Matter

We have also audited the parent company only financial statements of Sunplus Technology Company Limited as of and for the years ended December 31, 2021 and 2020 on which we have issued an unmodified opinion.

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

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

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

Those charged with governance, including the audit committee, are responsible for overseeing the Group’s financial reporting process.

Auditors’ Responsibilities for the Audit of the Consolidated Financial Statements

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

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

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

consolidated financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditors’ report. However, future events or conditions may cause the Group to cease to continue as a going concern.

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

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

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

From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the consolidated financial statements for the year ended December 31, 2021 and are therefore the key audit matters. We describe these matters in our auditors’ report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.

The engagement partners on the audits resulting in this independent auditors’ report are Cheng-Chih Lin and Mei-Chen Tsai.

Deloitte & Touche Taipei, Taiwan Republic of China March 29, 2022

Notice to Readers

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

For the convenience of readers, the independent auditors’ report and the accompanying consolidated financial statements have been translated into English from the original Chinese version prepared and used in the Republic of China. If there is any conflict between the English version and the original Chinese version or any difference in the interpretation of the two versions, the Chinese-language independent auditors’ report and consolidated financial statements shall prevail.

SUNPLUS TECHNOLOGY COMPANY LIMITED AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS DECEMBER 31, 2021 AND 2020 (In Thousands of New Taiwan Dollars)

ASSETS CURRENT ASSETS Cash and cash equivalents (Notes 4 and 6) Financial assets at fair value through profit or loss - current (Notes 4 and 7) Notes receivable and accounts receivable, net (Notes 4, 5, 9, 24 and 34) Other receivables (Notes 4 and 34) Inventories (Notes 4 and 10) Non-current assets held for sale (Notes 4 and 11) Other financial assets - current (Notes 18 and 35) Other current assets (Notes 18 and 34) Total current assets NON-CURRENT ASSETS Financial assets at fair value through profit or loss - non-current (Notes 4 and 7) Financial assets at fair value through other comprehensive income - non-current (Notes 4 and 8) Investments accounted for using the equity method (Notes 4 and 13) Property, plant and equipment (Notes 4, 14 and 35) Right-of-use assets (Notes 4 and 15) Investment properties (Notes 4 and 16) Intangible assets (Notes 4 and 17) Deferred tax assets (Notes 4 and 26) Net defined benefit assets - non-current (Notes 4 and 22) Other financial assets - non-current (Notes 18 and 35) Other non-current assets (Note 18) Total non-current assets TOTAL LIABILITIES AND EQUITY CURRENT LIABILITIES Short-term borrowings (Notes 19 and 35) Contract liabilities - current (Note 24) Accounts payable (Note 20) Current tax liabilities (Notes 4 and 26) Lease liabilities - current (Notes 4 and 15) Deferred revenue - current (Notes 4, 21 and 29) Current portion of long-term bank borrowings (Note 19) Other current liabilities (Note 21) Total current liabilities NON-CURRENT LIABILITIES Long-term borrowings (Note 19) Lease liabilities - non-current (Notes 4 and 15) Deferred revenue - non-current (Notes 4, 21 and 29) Net defined benefit liabilities - non-current (Notes 4 and 22) Guarantee deposits (Note 34) Other liabilities (Note 21) Total non-current liabilities Total liabilities EQUITY ATTRIBUTABLE TO OWNERS OF THE COMPANY (Notes 4, 23 and 30) Share capital Ordinary shares Capital surplus Retained earnings Legal reserve Special reserve Unappropriated earnings Total retained earnings Equity directly associated with non-current assets held for sale Other equity Treasury shares Total equity attributable to owners of the Company NON-CONTROLLING INTERESTS (Notes 4, 12, 23 and 30) Total equity TOTAL		2021 Amount % $ 4,835,568 30 1,671,234 10 1,285,944 8 67,770 - 1,467,713 9 108,504 1 76,765 - 136,271 1 9,649,769 59 1,729,632 11 216,256 1 949,897 6 1,936,640 12 213,324 1 948,038 6 326,919 2 38,066 - 4,553 - 234,555 1 129,750 1 6,727,630 41 $ 16,377,399 100 $ 143,773 1 30,109 - 924,523 6 254,071 1 12,166 - 1,883 - 46,000 - 1,433,513 9 2,846,038 17 384,000 3 207,912 1 55,978 - 19,712 - 263,745 2 20,918 - 952,265 6 3,798,303 23 5,919,949 36 1,223,544 7 1,745,279 11 261,078 1 1,249,574 8 3,255,931 20 21,517 - (239,203) (1) (63,401) - 10,118,337 62 2,460,759 15 12,579,096 77 $ 16,377,399 100		2020
				Amount % $ 3,400,482 27 901,857 7 1,204,798 10 57,982 - 861,050 7 - - 240,334 2 111,438 1 6,777,941 54 1,064,261 8 192,528 1 719,696 6 1,971,252 16 229,277 2 1,015,544 8 328,591 3 33,037 - 4,440 - 272,167 2 11,855 - 5,842,648 46 $ 12,620,589 100 $ 314,209 3 26,181 - 450,216 4 155,138 1 12,506 - 46,098 1 25,000 - 795,324 6 1,824,672 15 205,000 2 219,510 2 58,300 - 60,319 - 219,942 2 13,845 - 776,916 6 2,601,588 21 5,919,949 47 500,820 4 1,712,390 13 276,189 2 328,894 3 2,317,473 18 - - (261,078) (2) (63,401) (1) 8,413,763 66 1,605,238 13 10,019,001 79 $ 12,620,589 100

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

SUNPLUS TECHNOLOGY COMPANY LIMITED AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME FOR THE YEARS ENDED DECEMBER 31, 2021 AND 2020 (In Thousands of New Taiwan Dollars, Except Earnings Per Share)

NET OPERATING REVENUE (Notes 4, 24 and 34) OPERATING COSTS (Notes 10 and 25) GROSS PROFIT OPERATING EXPENSES (Notes 25 and 34) Selling and marketing expenses General and administrative expenses Research and development expenses Expected credit loss (gain) (Note 9) Total operating expenses OTHER OPERATING INCOME AND EXPENSES INCOME FROM OPERATIONS NON-OPERATING INCOME AND EXPENSES (Notes 4, 13, 25, 29 and 34) Interest income Other income Other gains and losses Finance costs Share of profit of associates Total non-operating income and expenses PROFIT BEFORE INCOME TAX INCOME TAX EXPENSE (Notes 4 and 26) NET PROFIT FOR THE YEAR OTHER COMPREHENSIVE INCOME (LOSS) Items that will not be reclassified subsequently to profit or loss (Notes 4 and 23): 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		2021 Amount % $ 7,960,831 100 3,799,225 48 4,161,606 52 521,124 6 628,046 8 2,088,699 26 34 - 3,237,903 40 (167) - 923,536 12 25,466 - 242,732 3 846,131 11 (14,161) - 34,623 - 1,134,791 14 2,058,327 26 302,085 4 1,756,242 22 1,501 - 89,921 1 27,450 -		2020
				Amount % $ 6,414,140 100 3,489,044 54 2,925,096 46 297,145 5 488,247 8 1,623,728 25 (154) - 2,408,966 38 37 - 516,167 8 24,052 - 117,804 2 126,748 2 (15,746) - 15,713 - 268,571 4 784,738 12 165,911 2 618,827 10 6,780 - (3,215) - 7,231 - (Continued)

SUNPLUS TECHNOLOGY COMPANY LIMITED AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME FOR THE YEARS ENDED DECEMBER 31, 2021 AND 2020 (In Thousands of New Taiwan Dollars, Except Earnings Per Share)

Items that may be reclassified subsequently to profit or loss (Notes 4 and 23): Exchange differences on translating the financial statements of foreign operations Share of other comprehensive income (loss) of associates accounted for using the equity method Other comprehensive income (loss) for the year, net of income tax TOTAL COMPREHENSIVE INCOME FOR THE YEAR NET PROFIT ATTRIBUTABLE TO: Owners of the Company Non-controlling interests TOTAL COMPREHENSIVE INCOME ATTRIBUTABLE TO: Owners of the Company Non-controlling interests EARNINGS PER SHARE (Note 26) Basic Diluted		2021 Amount % $ (33,290) - (269) - 85,313 1 $ 1,841,555 23 $ 1,182,785 15 573,457 7 $ 1,756,242 22 $ 1,270,404 16 571,151 7 $ 1,841,555 23 $ 2.01 $ 2.01		2020
				Amount % $ (7,150) - 2,072 - 5,718 - $ 624,545 10 $ 323,403 5 295,424 5 $ 618,827 10 $ 326,913 5 297,632 5 $ 624,545 10 $ 0.55 $ 0.55

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, 2021 AND 2020 (In Thousands of New Taiwan Dollars)

SUNPLUS TECHNOLOGY COMPANY LIMITED AND SUBSIDIARIES

				Equity Attribu	table to Owners of the Company	table to Owners of the Company
Share Capital Issued an	d Outstanding Amount $ 5,919,949 - - - - - - - - - - - - 5,919,949 - - - - - - - - - - - - - - $ 5,919,949	Capital Surplus $ 594,432 - - 15,786 (177,598 ) 67,132 - - - - 1,068 - - 500,820 - - - 153,013 - 91,451 497,906 - - - 1,871 - (21,517 ) - $ 1,223,544		Retained Earnings	Unappropriated Earnings (Deficits not yet Compensated) $ (262,261 ) 229,998 32,263 - - - (183 ) 323,403 6,846 330,249 - - (1,172) 328,894 (32,889 ) 15,111 (311,093 ) - - - - 1,182,785 1,188 1,183,973 - - - 65,578 $ 1,249,574	Equity Directly Associated with Non-current Assets Held for Sale $ - - - - - - - - - - - - - - - - - - - - - - - - - - 21,517 - $ 21,517	Other Equity Unrealized Gain Exchange (Loss) on Financial Differences on Assets at Fair Translating the Value Through Financial Other Statements of Comprehensive Foreign Operations Income $ (218,780 ) $ (42,246 ) - - - - - - - - - 2,112 - - - - (9,243) 5,907 (9,243) 5,907 - - - - - 1,172 (228,023 ) (33,055 ) - - - - - - - - - - - 1,022 - - - - (31,489) 117,920 (31,489) 117,920 - - - - - - - (65,578) $ (259,512) $ 20,309	Treasury Shares $ (63,401 ) - - - - - - - - - - - - (63,401 ) - - - - - - - - - - - - - - $ (63,401)
			Legal Reserve $ 1,942,388 (229,998 ) - - - - - - - - - - - 1,712,390 32,889 - - - - - - - - - - - - - $ 1,745,279	Special Reserve $ 308,452 - (32,263 ) - - - - - - - - - - 276,189 - (15,111 ) - - - - - - - - - - - - $ 261,078
Share (Thousands) 591,995 - - - - - - - - - - - - 591,995 - - - - - - - - - - - - - - 591,995

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

SUNPLUS TECHNOLOGY COMPANY LIMITED AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE YEARS ENDED DECEMBER 31, 2021 AND 2020 (In Thousands of New Taiwan Dollars)

CASH FLOWS FROM OPERATING ACTIVITIES Income before income tax Adjustments for: Depreciation expense Amortization expense Expected credit loss recognized (reversed) on trade receivables Net gain on fair value change of financial assets at FVTPL Finance costs Interest income Dividend income Compensation costs of share-based payments Share of profits of associates Loss (gain) on disposal of property, plant and equipment Gain on disposal of subsidiaries Net gain on foreign currency exchange Unrealized loss on transactions with associates and joint ventures Gain on lease modification Changes in operating assets and liabilities: Increase in trade receivables (Increase) decrease in other receivables Increase in inventories Increase in other current assets Increase in net defined benefits assets - non-current Increase in accounts payables Increase in contract liabilities Decrease in deferred revenue Increase in other current liabilities (Decrease) increase in defined benefits liabilities - non-current Cash generated from operations Interest received Dividends received Interest paid Income tax paid Net cash generated from operating activities CASH FLOWS FROM INVESTING ACTIVITIES Purchase of financial assets at FVTOCI Proceeds from the sale of financial assets at FVTOCI Purchase of financial assets at FVTPL Proceeds from the sale of financial assets at FVTPL Acquisition of associates Proceeds from disposal of subsidiaries Payments for property, plant and equipment Proceeds from the disposal of property, plant and equipment	2021 $ 2,058,327 278,515 133,228 34 (837,439) 14,161 (25,466) (91,022) 92,154 (34,623) 171 - (3,969) 1,228 (4) (84,354) (34,623) (606,663) (14,040) (113) 476,960 3,928 (1,881) 652,317 (39,106) 1,937,720 26,970 141,273 (14,161) (216,352) 1,875,450 (58,583) 123,882 (2,399,006) 1,824,231 (174,000) - (122,866) 182	2020 $ 784,738 301,074 89,948 (154) (122,742) 15,746 (24,052) (29,412) 9,408 (15,713) (28) (7,795) (16,092) 2,541 (9) (377,153) 5,655 (101,839) (13,530) (3,277) 97,960 1,269 (1,559) 216,960 2,841 814,785 19,314 41,756 (16,509) (67,225) 792,121 (10,004) 2,628 (1,447,591) 1,687,133 (2,500) (866) (194,880) 590 (Continued)

SUNPLUS TECHNOLOGY COMPANY LIMITED AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE YEARS ENDED DECEMBER 31, 2021 AND 2020 (In Thousands of New Taiwan Dollars)

Increase in refundable deposits Decrease in refundable deposits Payments for intangible assets Payments for investment properties Decrease (increase) on other financial assets Net cash used in investing activities CASH FLOWS FROM FINANCING ACTIVITIES Repayments of short-term borrowings Proceeds from long-term borrowings Repayments of long-term borrowings Proceeds of guarantee deposits received Refunds of guarantee deposits received Repayment of principal portion of lease liabilities Increase in other liabilities Cash dividends paid Dividends paid to non-controlling interests Partial disposal of interests in subsidiaries without a loss of control Increase in non-controlling interests Net cash generated from financing activities EFFECTS OF EXCHANGE RATE CHANGES ON THE BALANCE OF CASH HELD IN FOREIGN CURRENCIES NET INCREASE IN CASH AND CASH EQUIVALENTS CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE YEAR CASH AND CASH EQUIVALENTS AT THE END OF THE YEAR	2021 $ (96,719) 1,421 (159,316) - 86,445 (974,329) (170,488) 400,000 (200,000) 59,667 (5,490) (13,197) 3,555 (309,222) (283,972) 108,953 957,614 547,420 (13,455) 1,435,086 3,400,482 $ 4,835,568	2020 $ (842) 3,004 (249,613) (5,073) (196,789) (414,803) (26,656) 230,000 - 19,918 (4,987) (13,308) 2,014 (176,530) (139,531) 101,014 12,000 3,934 (1,398) 379,854 3,020,628 $ 3,400,482

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

(Concluded)

SUNPLUS TECHNOLOGY COMPANY LIMITED AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEARS ENDED DECEMBER 31, 2021 AND 2020 (In Thousands of New Taiwan Dollars, Unless Stated Otherwise)

1. GENERAL INFORMATION

Sunplus Technology Company Limited (“Sunplus” or 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 of liquid crystal display, microcontroller, multimedia, voice/music, and application-specific products. 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 23).

Following is a diagram of the relationship and ownership percentages between Sunplus and its subsidiaries (collectively, the “Group”) as of December 31, 2021:

==> picture [499 x 278] intentionally omitted <==

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

Sunplus Technology
Company
13.69%
1.89%
100% 100% 100% 100% 100% 100% 100% 55% 92.55% 51.34% 34.30% 100% 100% 100%
Award Glory Management Consulting Sunplus Sunplus HK Ventureplus Sunplus Venture Lin Shin mMobile Sunplus Technology Jumplux Sunext Innovation Sunplus Generalplus Wei-Young Russell Magic Sky
100% 100% 42.08% 100%
5.13%
Sunny Ventureplus Generalplus
Fancy Mauritius Samoa
7.64%
Sunplus
100% 100% 100% 100% 100% 62.50% mMedia 100%
2.60%
Giant Best Worldplus Kingdom Giant Giant Rock Ventureplus Cayman Genki Tek Generalplus Mauritius
61.54%
100% 35.90% 100% 100% 100% 100% 100% 100%
Technology (Shenzhen) Worldplus Co., Ltd. Sunplus App Technology Co., Ltd. Sunplus-EHue Tech Co., Ltd. Beijing (Shenzhen) Prof-tek Sunplus Shanghai Sunplus Technology SunMedia Generalplus Shenzhen Generalplus HK
89.76%
43.33% 56.67% 100%
Chongqing Jsilicon
CQPlus1 Technology
Technology Co., Ltd. Co., Ltd.
----- End of picture text -----

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, 2022.

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

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

The initial application of the IFRSs endorsed and issued into effect by the FSC did not have material impact on the Company’s accounting policies:

b. The IFRSs endorsed by the FSC for application starting from 2022
Effective Date
New IFRSs Announced by IASB
“Annual Improvements to IFRS Standards 2018-2020” January 1, 2022 (Note 1) Amendments to IFRS 3 “Reference to the Conceptual Framework” January 1, 2022 (Note 2) Amendments to IAS 16 “Property, Plant and Equipment - Proceeds January 1, 2022 (Note 3) before Intended Use”
Amendments to IAS 37 “Onerous Contracts - Cost of Fulfilling a January 1, 2022 (Note 4) Contract”
Note 1: 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 2: 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 3: 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 4: The amendments are applicable to contracts for which the entity has not yet fulfilled all its obligations on January 1, 2022.

As of the date the consolidated financial statements were authorized for issue, the Company has assessed that the application of other standards and interpretations will not have a material impact on the Group’s financial position and financial performance.

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

New IFRSs Amendments to IFRS 10 and IAS 28 “Sale or Contribution of Assets between An Investor and Its Associate or Joint Venture” IFRS 17 “Insurance Contracts” Amendments to IFRS 17 Amendments to IFRS 17 “Initial Application of IFRS 9 and IFRS 17 - Comparative Information”	Effective Date Announced by IASB (Note 1)
	To be determined by IASB January 1, 2023 January 1, 2023 January 1, 2023 (Continued)

New IFRSs Amendments to IAS 1 “Classification of Liabilities as Current or Non-current” Amendments to IAS 1 “Disclosure of Accounting Policies” Amendments to IAS 8 “Definition of Accounting Estimates” Amendments to IAS 12 “Deferred Tax related to Assets and Liabilities arising from a Single Transaction”	Effective Date Announced by IASB (Note 1)
	January 1, 2023 January 1, 2023 (Note 2) January 1, 2023 (Note 3) January 1, 2023 (Note 4) (Concluded)

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 will be applied prospectively for annual reporting periods beginning on or after January 1, 2023.
Note 3: 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.
Note 4: Except for deferred taxes that will be recognized on January 1, 2022 for temporary differences associated with leases and decommissioning obligations, the amendments will be applied prospectively to transactions that occur on or after January 1, 2022.
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 or joint venture, 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 or joint control, 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 or joint venture, 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 or joint venture, 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 or joint control over an associate or a joint venture, 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 or joint venture, 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 of 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 which are grouped into Levels 1 to 3 based on the degree to which the fair value measurement inputs are observable and based on 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 12 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. Non-current assets held for sale

Non-current assets are classified as held for sale if their carrying amounts will be recovered principally through a sale transaction rather than through continuing use. This condition is regarded as met only when the sale is highly probable and the non-current asset is available for immediate sale in its present condition. To meet the criteria for the sale being highly probable, the appropriate level of management must be committed to the sale, and the sale should be expected to qualify for recognition as a completed sale within 1 year from the date of classification.

When the Group is committed to a sale plan involving the disposal of an investment or a portion of an investment in an associate or a joint venture, only the investment or the portion of the investment that will be disposed of is classified as held for sale when the classification criteria are met, and the Group discontinues the use of the equity method in relation to the portion that is classified as held for sale. Any retained portion of an investment in an associate or a joint venture that has not been classified as held for sale continues to be accounted for using the equity method. If the Group ceases to have significant influence or joint control over the investment after the disposal takes place, the Group accounts for any retained interest that has not been classified as held for sale in accordance with the accounting policies for financial instruments.

n. 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.

o. 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.

p. 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 income mainly comes from royalties.

q. 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.

r. 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.

s. 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.

t. 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 expected 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.

u. 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

Cash on hand Checking accounts and demand deposits Cash equivalents Time deposits in banks	December 31
	2021 2020 $ 4,927 $ 5,781 1,710,989 1,168,558 3,119,652 2,226,143 $ 4,835,568 $ 3,400,482

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

Bank balances	December 31
	2021 2020 0.001%-2.100% 0.001%-2.025%

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

Financial assets at FVTPL-current Financial assets classified as at FVTPL Non-derivative financial assets - Mutual funds - Domestic unlisted shares - Domestic listed shares Hybrid financial assets Domestic and foreign investments - Domestic and foreign listed convertible bonds 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 Hybrid financial assets Domestic and foreign investments - Unlisted convertible bonds		December 31	December 31
		2021 $ 1,199,486 241,558 230,190 - $ 1,671,234 $ 1,116,150 436,013 43,200 - 134,269 $ 1,729,632	2020 $ 641,575 204,719 52,743 2,820 $ 901,857 $ 686,366 327,856 35,190 14,849 - $ 1,064,261

8. FINANCIAL ASSETS AT FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME

Non-current Domestic and foreign investments Unlisted shares Listed shares		December 31	December 31
		2021 $ 206,194 10,062 $ 216,256	2020 $ 99,767 92,761 $ 192,528

9. NOTES AND TRADE RECEIVABLE, NET

Trade receivables At amortized cost Gross carrying amount Less: Allowance for impairment loss		December 31	December 31
		2021 $ 1,285,944 - $ 1,285,944	2020 $ 1,204,901 (103) $ 1,204,798

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 approach considering 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, 2021

Not Overdue Gross carrying amount $ 1,285,944 Loss allowance (Lifetime ECLs) - Amortized cost $ 1,285,944 December 31, 2020	Overdue 1- 60 days $ - - $ -	Overdue 61-90 days $ - - $ -	Overdue 91-120 days Overdue 121 days or More $ - $ - - - $ - $ -

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

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

Balance at January 1 Add: Net remeasurement of loss allowance Less: Amounts written off Foreign exchange gains and losses Balance at December 31	For the Year Ended December 31	For the Year Ended December 31	For the Year Ended December 31
		2021 $ 103 34 (137) - $ -	2020 $ 329 (154) (73) 1 $ 103

10. INVENTORIES

Finished goods Work in progress Raw materials		December 31	December 31
		2021 $ 536,293 446,127 485,293 $ 1,467,713	2020 $ 272,667 378,943 209,430 $ 861,050

The costs of inventories recognized as cost of goods sold for the years ended December 31, 2021 and 2020 were $3,711,232 thousand and $3,403,174 thousand, respectively.

The costs of inventories recognized as costs of goods sold for the years ended December 31, 2021 and 2020 were as follows:

Inventory write - downs Income from scrap sales	For the Year Ended December 31	For the Year Ended December 31	For the Year Ended December 31
		2021 $ (16,102) 88 $ (16,014)	2020 $ (6,567) 81 $ (6,486)

December 31, 2021 $ 108,504

11. NON-CURRENT ASSETS HELD FOR SALE

Non-current assets held for sale

In December 2021, the Company’s board of directors resolved to dispose of 8,000,000 shares of the associate company - iCatch Technology Co., Ltd. and entered into the “shares should be sold contract” agreement. The disposal was completed in January 2022. No impairment loss should be recognized when the carrying amount of the investment accounted for using the equity method of $108,504 thousand was reclassified as non-current assets held for sale.

12. SUBSIDIARIES

a. The subsidiaries included in the consolidated financial statements

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

Name of Investor
Name of Investee
Main Businesses and Products
Sunplus
Sunplus Management Consulting Management
Ventureplus Group Inc.
(“Ventureplus Group”)
Investment
Sunplus Technology (H.K.)
International trade
Sunplus Venture
Investment
Lin Shin Investment (“Lin Shin”) Investment
Sunplus mMobile Inc.
Design of ICs
Sunext Technology Co., Ltd.
(“Sunext”)
Design of ICs
Sunplus Innovation Technology Design of ICs
Generalplus Technology Inc.
(“Generalplus”)
Design of ICs
Wei-Young Investment Inc.
Investment
Russell Holdings Limited
Investment
Magic Sky Limited
Investment
Sunplus mMedia Inc.
Design of ICs
Award Glory
Investment
Jumplux Technology
Design of ICs
Ventureplus Group
Ventureplus Mauritius
Investment
Ventureplus Mauritius
Ventureplus Cayman
Investment
Ventureplus Cayman
Sunplus App Technology
Sale of electronic components
and information management
and education
Sunplus Prof-tek Technology
(Shenzhen)
Software development, consumer
technological services and
rental building and property
management
Sunplus Technology (Shanghai) Software development, consumer
technological services and
rental building
SunMedia Technology
Software development, consumer
technological services and
rental building
Beijing Sunplus-EHue Tech Co.,
Ltd.
Software development, consumer
technological services and
rental building
Sunplus Technology (Shanghai)
Jsilicon Technology
Software Development and IC
Design
Chongqing CQPlus1 Technology Software Development and IC
Design
Sunplus Prof-tek (Shenzhen)
Chongqing CQPlus1 Technology Software Development and IC
Design

Percentage of Ownership
December 31
2021
2020
Note
100.00
100.00
-
100.00
100.00
-
100.00
100.00
-
100.00
100.00
-
100.00
100.00
-
100.00
100.00
Sunplus mMobile Inc. considered its
business’ future development and
concluded that it has no plan to
continue operation. On January 19,
2022, Sunplus mMobile Inc.’s
board of directors resolved to
dispose of the proposed dissolution
and completed the process of
dissolution on February 7, 2022.
92.55
92.55
-
51.34
58.21
-
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
100.00
100.00
-
100.00
100.00
-
100.00
100.00
-
89.76
89.76
-
100.00
100.00
-
55.00
55.00
-
100.00
100.00
-
100.00
100.00
-
35.90
51.47
Sunplus and its subsidiaries owned
97.44% of the equity in Sunplus
App Technology
100.00
100.00
-
100.00
100.00
-
100.00
100.00
-
100.00
100.00
-
100.00
100.00
-
56.67
56.67
-
43.33
43.33
Sunplus and its subsidiaries owned
100% of the equity in Chongqing
Shuangxin Co., Ltd.
(Continued)

Name of Investor
Name of Investee
Main Businesses and Products
Sunplus Venture
Jumplux Technology
Design of ICs
Sunplus mMedia
Design of ICs
Sunplus Innovation
Design of ICs
Genki Tek Technology
Development of computer
software
Lin Shin
Generalplus.
Design of ICs
Sunplus mMedia
Design of ICs
Sunplus Innovation
Design of ICs
Generalplus
Generalplus Samoa
Investment
Generalplus Samoa
Generalplus Mauritius
Investment
Generalplus Mauritius
Generalplus Shenzhen
Design of IC product
development, after sales
service and market research
Generalplus HK
Sales
Award Glory
Sunny Fancy
Investment
Sunny Fancy
Giant Kingdom
Investment
Giant Rock
Investment
Worldplus Holdings L.L.C.
(Worldplus)
Investment
Sunny Fancy
Giant Best Ltd. (Giant Best)
Investment
Giank Rock
Sunplus App Technology
Manufacturing and sale of
computer software; system
integration services and
information management and
education
Worldplus
Worldplus Technology
(Shenzhen) Co., Ltd.
Software development and rental
building and property
management

Percentage of Ownership
December 31
2021
2020
Note
42.08
42.08
Sunplus and its subsidiaries owned
97.08% of the equity in Jumplux
Technology.
7.64
7.64
Sunplus and its subsidiaries owned
100% of the equity in Sunplus
mMedia.
5.13
5.64
Sunplus and its subsidiaries owned
58.36% of the equity in Sunplus
Innovation
62.50
62.50
The establishment registration was
completed on March 6, 2020
13.69
13.69
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
2.60
2.60
Sunplus and its subsidiaries owned
100% of the equity in Sunplus
mMedia.
1.89
2.09
Sunplus and its subsidiaries owned
58.36% of the equity in Sunplus
Innovation.
100.00
100.00
-
100.00
100.00
-
100.00
100.00
-
100.00
100.00
-
100.00
100.00
-
100.00
100.00
-
100.00
100.00
-
100.00
100.00
-
100.00
100.00
At the end of December 2021, the
establishment registration was
completed, but capital was not
injected yet.
61.54
44.85
Sunplus and its subsidiaries owned
97.44% of the equity in Sunplus
App.
100.00
100.00
-
(Concluded)

The financial statements as of and for the years ended December 31, 2021 and 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

Company name Generalplus Sunplus Innovation Technology	The Voting Ratio of Non-controlling Equity
	December 31
	2021 2020 52.01% 52.01% 41.64% 34.06%

Refer to attachment 6 for registered countries and company information:

Company Name Generalplus Sunplus Innovation Technology	Profits Attributed to Non-controlling Interests For the Year Ended December 31 2021 2020 $ 342,622 $ 146,699 234,921 151,224	Non-controlling Interests
		December 31
		2021 2020 $ 1,326,915 $ 1,123,045 1,116,703 462,772

The summarized financial information below represents amounts before intragroup eliminations.

Current assets Non-current assets Current liabilities Non-current liabilities Equity Equity attributable to: Owners of the Company Non-controlling interests Operating revenue Net income Other comprehensive (loss) income Total other comprehensive income Equity attributable to: Owners of the Company Non-controlling interests Total other comprehensive income attributable to: Owners of the Company Non-controlling interests		December 31	December 31
	2021 2020 $ 6,105,300 $ 3,920,778 902,454 825,984 1,729,822 1,128,870 196,591 198,684 $ 5,081,341 $ 3,419,208 $ 2,637,723 $ 1,833,391 2,443,618 1,585,817 $ 5,081,341 $ 3,419,208 For the Year Ended December 31
		2021 $ 5,869,404 $ 1,294,151 (4,228) $ 1,289,923 $ 716,608 577,543 $ 1,294,151 $ 714,721 575,202 $ 1,289,923	2020 $ 4,723,614 $ 749,706 3,156 $ 752,862 $ 451,783 297,923 $ 749,706 $ 452,808 300,054 $ 752,862 (Continued)

Cash flows Operating activities Investing activities Financing activities Effect of exchange rate changes on the balance of cash held in foreign currencies Net cash inflow Dividend paid to non-controlling interests	For the Year Ended December 31	For the Year Ended December 31	For the Year Ended December 31
		2021 $ 1,726,138 (742,717) 257,062 (5,104) $ 1,235,379 $ (283,972)	2020 $ 792,458 (320,928) (314,595) 3,465 $ 160,400 $ (139,531) (Concluded)

13. INVESTMENTS ACCOUNTED FOR USING THE EQUITY METHOD

Investments in associates a. Investments in associates Listed companies iCatch Technology Global View Co., Ltd. AkiraNET Co., Ltd. Autsys Co., Ltd. GlintMed Innovation Co., Ltd. Name of Associate iCatch Technology Global View Co., Ltd. AkiraNET Co., Ltd. Autsys Co., Ltd. GlintMed Innovation Co., Ltd.		December 31
		2021 2020 $ 949,897 $ 719,696 December 31
		2021 2020 $ 343,423 $ 300,118 342,742 346,011 195,034 - 67,084 71,439 1,614 2,128 $ 949,897 $ 719,696 December 31
		2021 2020 21% 35% 13% 13% 35% - 16% 16% 25% 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:

Name of Associate iCatch Technology Global View, Co., Ltd.		December 31	December 31
		2021 $ 1,475,899 $ 313,131	2020 $ 568,702 $ 317,657

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:

Total assets Total liabilities Revenue Profit (loss) for the period Comprehensive income Group’s share of profits of associates		December 31	December 31
	2021 2020 $ 4,368,038 $ 2,739,685 $ 613,038 $ 298,421 For the Year Ended December 31
		2021 $ 1,380,187 $ 110,860 $ 412,591 $ 34,623	2020 $ 913,154 $ (83,932) $ 351,451 $ 15,713

The financial statements as of and for the years ended December 31, 2021 and 2020 of the above associates expect GlintMed Innovation Co., Ltd. were audited by the auditors. The management of the Company believes that the financial statements of GlintMed Innovation Co., Ltd. will not be subject to major adjustments if it were audited.

14. PROPERTY, PLANT AND EQUIPMENT

a. Assets used by the Group

Cost Balance at January 1, 2021 Additions Disposals Reclassified Effect of exchange rate changes Balance at December 31, 2021 Accumulated depreciation Balance at January 1, 2021 Depreciation expense Disposals Reclassified Effect of exchange rate changes Balance at December 31, 2021 Carrying amount at December 31, 2021	Buildings $ 2,365,248 - - (39,852 ) (8,958) $ 2,316,438 $ 616,336 51,990 - (27,072 ) (1,580) $ 639,674 $ 1,676,764	Auxiliary Equipment $ 184,498 3,873 (7,664 ) 12,686 (3,547) $ 189,846 $ 150,142 18,715 (7,647 ) 7,690 (2,324) $ 166,576 $ 23,270	Machinery and Equipment $ 21,489 8,440 (4,994 ) - 1,930 $ 26,865 $ 12,612 3,473 (4,994 ) - 808 $ 11,899 $ 14,966	Testing Equipment $ 639,111 87,352 (97,101 ) - (3,017) $ 626,345 $ 547,664 86,890 (96,825 ) - (1,853) $ 535,876 $ 90,469	Transportation Equipment $ 4,607 - - - (29) $ 4,578 $ 3,394 392 - - (24) $ 3,762 $ 816	Furniture and Fixtures $ 268,761 46,847 (7,176 ) 1,053 (986) $ 308,499 $ 202,794 30,898 (7,116 ) - (864) $ 225,712 $ 82,787	Leasehold Improvements $ 3,123 183 (351 ) - (1,747) $ 1,208 $ 1,685 422 (351 ) - (675) $ 1,081 $ 127	Other Equipment P fo C $ 24,146 1,532 (356 ) (985 ) 4,692 $ 29,029 $ 22,260 636 (356 ) - 2,565 $ 25,105 $ 3,924	repayments r Equipment and onstruction in Progress Total $ 17,156 $ 3,528,139 26,429 174,656 - (117,642 ) (68 ) (27,166 ) - (11,662) $ 43,517 $ 3,546,325 $ - $ 1,556,887 - 193,416 - (117,289 ) - (19,832 ) - (3,947) $ - $ 1,609,685 $ 43,517 $ 1,936,640 (Continued)

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

15. LEASE ARRANGEMENTS

a. Right-of-use assets

Carrying amount Land Buildings Transportation equipment		December 31	December 31
		2021 $ 197,819 14,464 1,041 $ 213,324	2020 $ 209,100 19,730 447 $ 229,277

Additions to right-of-use assets Depreciation charge for right-of-use assets Land Buildings Transportation equipment Income from the subleasing of right-of-use assets (presented in other income)	For the Year Ended December 31	For the Year Ended December 31	For the Year Ended December 31
		2021 $ 2,549 $ 6,734 8,020 438 $ 15,192 $ -	2020 $ 2,924 $ 6,856 8,765 447 $ 16,068 $ 1,137

Except for the aforementioned addition and recognized depreciation, the Group did not have significant sublease or impairment of right-of-use assets during the years ended December 31, 2021 and 2020.

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 16.

b. Lease liabilities

Carrying amount Current Non-current		December 31	December 31
		2021 $ 12,166 $ 207,912	2020 $ 12,506 $ 219,510

Range of discount rates for lease liabilities was as follows:

Land Buildings Transportation equipment	December 31
	2021 2020 2.390% 2.39% 1.575%-5.000% 1.575%-5.000% 1.175% 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, 2020 and 2021. 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. Other lease information

Expenses relating to short-term leases Expenses relating to low-value asset leases Total cash outflow for leases	For the Year Ended December 31	For the Year Ended December 31	For the Year Ended December 31
		2021 $ 11,191 $ 425 $ 28,897	2020 $ 6,530 $ 444 $ 22,636

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.

16. INVESTMENT PROPERTIES

Cost Balance at January 1, 2021 Reclassified Effect of exchange rate differences Balance at December 31, 2021 Accumulated depreciation Balance at January 1, 2021 Depreciation expense Reclassified Effect of exchange rate differences Balance at December 31, 2021 Carrying amount at December 31, 2021 Cost Balance at January 1, 2020 Additions Effect of exchange rate differences Balance at December 31, 2020 Accumulated depreciation Balance at January 1, 2020 Depreciation expense Effect of exchange rate differences Balance at December 31, 2020 Carrying amount at December 31, 2020	Completed Investment Properties $ 1,429,106 27,164 (29,824) $ 1,426,446 $ 509,133 67,475 19,381 (23,165) $ 572,824 $ 853,622 $ 1,401,007 5,073 23,026 $ 1,429,106 $ 430,601 69,808 8,724 $ 509,133 $ 919,973	Right-of-use Assets $ 100,521 3,043 (1,800) $ 101,764 $ 4,950 2,432 1,061 (1,095) $ 7,348 $ 94,416 $ 98,867 - 1,654 $ 100,521 $ 2,476 2,308 94 $ 4,950 $ 95,571	Total $ 1,529,627 30,207 (31,624) $ 1,528,210 $ 514,083 69,907 20,442 (24,260) $ 580,172 $ 948,038 $ 1,499,874 5,073 24,680 $ 1,529,627 $ 433,077 72,188 8,818 $ 514,083 $ 1,015,544

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:

Year 1 Year 2 Year 3		December 31	December 31
		2021 $ 231,116 142,276 98,722 $ 472,114	2020 $ 197,870 164,577 96,344 $ 458,791

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 Worldplus Technology (Shenzhen) Co., Ltd. assessed in 2021 and 2020 had been determined on the basis of valuations carried out on December 31, 2021 and 2020 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:

Fair value	December 31
	2021 2020 $ 44,220 $ 45,471

The fair value of the investment properties of SunMedia Technology assessed in 2021 and 2020 had been determined on the basis of valuations carried out on December 31, 2021 and 2020 by Sichuan Jinshuo Ruilin Assets Appraisal Office Co., Ltd. and 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:

Fair value	December 31
	2021 2020 $ 1,153,471 $ 1,192,093

The fair value of the investment properties of Sunplus Technology (Shanghai) Co., Ltd. assessed in 2021 and 2020 had been determined on the basis of valuations carried out on December 31, 2021 and 2020 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:

Fair value	December 31
	2021 2020 $ 2,225,361 $ 2,374,398

17. INTANGIBLE ASSETS

Cost Balance at January 1 Additions Decrease Effect of exchange rate differences Balance at December 31 Accumulated amortization Balance at January 1 Amortization expense Decrease Effect of exchange rate differences Balance at December 31 Accumulated deficit Balance at December 31 Carrying amounts at December 31, 2021 Cost Balance at January 1 Additions Decrease Effect of exchange rate differences Consolidated changes Balance at December 31 Accumulated amortization Balance at January 1 Amortization expense Decrease Effect of exchange rate differences Consolidated changes Balance at December 31 Accumulated deficit Balance at December 31 Carrying amounts at December 31, 2020		For the Year Ended December 31, 2021	For the Year Ended December 31, 2021	For the Year Ended December 31, 2021
	Technology License Fees $ 986,612 104,982 (16,772) (228) $ 1,074,594 $ 607,530 107,860 (16,772) (144) $ 698,474 $ 111,136 $ 264,984	Software Patents Goodwill $ 325,261 $ 116,498 $ 30,596 26,718 - - (3,572) - - (211) (2) - $ 348,196 $ 116,496 $ 30,596 $ 304,045 $ 86,088 $ - 23,590 1,778 - (3,572) - - (151) (2) - $ 323,912 $ 87,864 $ - $ - $ 21,557 $ - $ 24,284 $ 7,055 $ 30,596 For the Year Ended December 31, 2020			Total $ 1,458,967 131,700 (20,344) (441) $ 1,569,882 $ 997,663 133,228 (20,334) (297) $ 1,110,250 $ 132,713 $ 326,919
	Technology License Fees $ 809,249 218,688 (41,842) 517 - $ 986,612 $ 583,858 65,167 (41,842) 347 - $ 607,530 $ 111,136 $ 267,946	Software $ 312,600 23,140 (5,680) 433 (5,232) $ 325,261 $ 289,553 23,277 (5,680) 313 (3,418) $ 304,045 $ - $ 21,216	Patents $ 114,494 2,000 - 4 - $ 116,498 $ 84,582 1,504 - 2 - $ 86,088 $ 21,577 $ 8,833	Goodwill $ 30,596 - - - - $ 30,596 $ - - - - - $ - $ - $ 30,596	Total $ 1,266,939 243,828 (47,522) 954 (5,232) $ 1,458,967 $ 957,993 89,948 (47,522) 662 (3,418) $ 997,663 $ 132,713 $ 328,591

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

Operating costs Selling and marketing expenses Selling and marketing expenses General and administrative expenses Research and development expenses	For the Year Ended	For the Year Ended	December 31
		2021 $ 24 113 3,813 129,278 $ 133,228	2020 $ - 232 3,677 86,039 $ 89,948

18. OTHER ASSETS

Current Other financial assets Time deposits (a) Restricted assets (b) Pledged time deposits (c) Other assets Prepayments for EDA tools Prepaid technical licensing fee Others Non-current Other financial assets Time deposits (d) Pledged time deposits (c)		December 31	December 31
		2021 $ 50,825 25,940 - $ 76,765 $ 23,579 7,636 105,056 $ 136,271 $ 221,544 13,011 $ 234,555	2020 $ 82,213 44,201 113,920 $ 240,334 $ 21,141 18,032 72,265 $ 111,438 $ 236,358 35,809 $ 272,167 (Continued)

Other assets Refundable deposits(Note 36) Prepayments for purchases(e) Others		December 31	December 31
		2021 $ 99,113 22,837 7,800 $ 129,750	2020 $ 4,055 - 7,800 $ 11,855 (Concluded)

a. Generalplus Shenzhen Company, Worldplus Technology (Shenzhen) Company and Beijing Sunplus-EHue Tech Co., Ltd. made certificates deposit of RMB$11,700 thousand at banks on December 31, 2021; Worldplus Technology (Shenzhen) Company, Beijing Sunplus-EHue Tech Co., Ltd., Sunplus Technology (Shanghai) Company and Sunplus Prof-tek (Shenzhen) Company made certificates 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.
b. Refer to Note 29 for information on restricted assets.
c. Refer to Note 35 for information on pledged time deposits.
d. Sunplus Technology (Shanghai) Company, Worldplus Technology (Shenzhen) Company and Generalplus Shenzhen Company made certificates of deposit of RMB$51,000 thousand and RMB$54,000 at the bank on December 31, 2021, and on December 31, 2020, respectively. The deposit period of the certificates of deposit is 1 to 3 years and 2 to 3 years respectively, and interest can be charged at a certain interest rate during the deposit period.
e. The amount of prepayments is Generalplus signed a production capacity cooperation agreement with the supplier, and the prepayment paid in accordance with the contract will be offset in 5 years when the production capacity conditions in the contract are met.

19. BORROWINGS

Short-term borrowings

Secured borrowings Bank loans Unsecured borrowings Bank loans		December 31	December 31
		2021 $ - 143,773 $ 143,773	2020 $ 97,102 217,107 $ 314,209

The effective interest rate intervals for bank loans as of December 31, 2021 and 2020 were 0.700%-1.745% and 0.716%-2.800% per annum respectively.

- Long term borrowings

The borrowings of the Group were as follows:

Maturity Date Significant Covenant Floating rate borrowings Unsecured bank borrowings 2025.08.21 Repayable quarterly from November 2021, in 11 installments. Unsecured bank borrowings 2023.10.13 Repayable semiannually from October 2022, in 3 installments. Less: Current portion Long-term borrowings		December 31 2021 2020 $ 200,000 $ 200,000 230,000 30,000 (46,000) (25,000) $ 384,000 $ 205,000
		2021 $ 200,000 230,000 (46,000) $ 384,000

The interval of effective borrowing rates as of December 31, 2021 and 2020 were 1.220%-1.250% and 1.250%-1.320%.

According to the loan contract, the consolidated financial statements of the company for semiannual are limited by current ratio, debt ratio, interest guarantee multiple. However, the Company’s inability to meet the ratio requirements would not be deemed as a violation of the contracts. As of June 30, 2021 and December 31, 2021, the Company was in compliance with these financial ratio requirements.

20. TRADE PAYABLES

Accounts payable Payable - operating		December 31	December 31
		2021 $ 924,523	2020 $ 450,216

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.

21. OTHER LIABILITIES

Current Other payables Payables for salaries or bonuses Payable for royalties Payables for employees’ compensation and remuneration of directors Refund liabilities Payables for purchases of equipment Labor/health insurance Payables for purchase of intangible assets	December 31
	2021 2020 $ 643,524 $ 464,201 259,185 68,250 202,118 73,815 97,015 75,313 61,665 8,005 33,524 27,106 14,715 2,883 (Continued)

Payables for labor costs Commissions payable Others Deferred revenue Deferred revenue Government grants (Note 28) Non-current Other payable Long-term payables Payable for purchase of intangible assets Payables for purchases of equipment Decommissioning liabilities Deferred revenue Government grants (Note 28)		December 31	December 31
		2021 $ 8,389 7,475 105,903 $ 1,433,513 $ 1,883 $ 10,039 6,920 3,070 889 $ 20,918 $ 55,978	2020 $ 7,195 6,591 61,965 $ 795,324 $ 46,098 $ 6,484 1,532 4,940 889 $ 13,845 $ 58,300 (Concluded)

22. RETIREMENT BENEFIT PLANS

a. Defined contribution plans

Sunplus, Generalplus, Sunext, Sunplus Innovation, Jumplux Technology and Genki Tek 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.

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

Present value of funded defined benefit obligation Fair value of plan assets Net liabilities arising from defined benefit obligation		December 31	December 31
		2021 $ 199,537 (184,378) $ 15,159	2020 $ 244,805 (188,926) $ 55,879

Movements in net defined benefit liabilities were as follows:

	Present Value of		Net Defined	Net Defined
	Funded Defined			Benefit
	Benefit	Fair Value of	Liabilities
	Obligation	Plan Assets		(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
Balance at January 1, 2021	$ 244,805	$ 188,926	$	55,879
Service cost
Current service cost	350	-		350
Loss (gain) on settlements	(12,077)	-		(12,077)
Net interest expense (income)	1,744	1,375		369
Recognized gain and loss	(9,983)	1,375		(11,358)
Remeasurement
Return on plan assets	-	2,215		(2,125)
Actuarial (gain) loss-experience adjustment	(4,160)	-		(4,160)
Actuarial (gain) loss-changes in
demographic assumptions	1,479	-		1,479
Actuarial loss-changes in financial
assumptions	3,305	-		3,305
Recognized in other comprehensive income	624	2,125		(1,501)
Contributions from the employer	-	2,154		(2,154)
Benefit paid	(10,202)	(10,202)		-
Settlements	(25,707)	-		(25,707)
Balance at December 31, 2021	$ 199,537	$ 184,378	$	15,159

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

Operating costs Selling and marketing expenses General and administrative expenses Research and development expenses Net liability arising from defined benefit obligation	For the Year Ended	For the Year Ended	December 31
		2021 $ (503) (697) (6,821) (3,337) $ (11,358)	2020 $ 121 114 317 482 $ 1,034

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:

Discount rate(s) Expected rate(s) of salary increase Resignation rate	December 31
	2021 2020 0.50%-0.75% 0.30%-0.80% 3.625%-5.00% 3.625%-5.00% 0%-28% 0%-28%

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

	December 31,	December 31,	December 31,	December 31,
		2021		2020
Discount rate(s)
0.25% increase	$	(5,041)	$	(6,559)
0.25% decrease	$	5,232	$	6,818
Expected rate(s) of salary increase
1% increase	$	21,329	$	27,669
1% decrease	$	(18,795)	$	(24,291)

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.

Expected contributions to the plan for the next year Average duration of the defined benefit obligation		December	31
	2021 2020 $ 250 $ 1,170 12-29 years 13-16 years

23. EQUITY

a. Share capital

1) Ordinary shares:

Shares authorized (in thousands of shares) Value of authorized shares Number of shares issued and fully paid (in thousands) Shares issued and fully paid		December 31	December 31
		2021 1,200,000 $ 12,000,000 591,995 $ 5,919,949	2020 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 20,000 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, 2021, the outstanding 175 thousand units of GDRs represented 350 thousand ordinary shares.

b. Capital surplus

May be used to offset a deficit, distributed as cash dividends, or transferred to share capital (1) Arising from the issuance of ordinary shares Arising from the acquisition of a subsidiary The difference between consideration received or paid and the carrying amount of the subsidiaries’ net assets during actual disposal or acquisition	December 31
	2021 2020 $ 18,497 $ 18,497 157,423 157,423 298,767 207,316 (Continued)

May be used to offset a deficit only From treasury share transactions Changes in percentage of ownership interests in subsidiaries (2) Changes in net equity of associates or joint ventures accounted for using the equity method		December 31	December 31
		2021 $ 48,178 497,906 202,773 $ 1,223,544	2020 $ 46,307 - 71,277 $ 500,820 (Concluded)

1) 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.
2) Such capital surplus arises from the effects of changes in ownership interests in subsidiaries resulting from equity transactions other than actual disposals or acquisitions or from chants in capital surplus of subsidiaries accounted for using the equity method.

c. Retained earnings and dividends policy

The board of directors meeting proposed to amend the company's articles of association on March 29, 2022. Under the dividends policy as set forth in the amended Articles, when the Company makes a profit in a fiscal year, the profit shall be first utilized for paying taxes, offsetting losses of previous years, setting aside as legal reserve 10% of the remaining profit. However, this limitation is not applicable when the legal reserve has reached the total capital. Setting aside or reversing a special reserve in accordance with the laws and regulations, and then any remaining profit together with any undistributed retained earnings shall be used by the Company’s board of directors as the basis for proposing a distribution plan, which should be resolved in the shareholders’ meeting for the distribution of dividends and bonuses to shareholders. However, the ratio of earnings to provide distribution and the ratio of shareholders' cash dividends may depend on the current year. The actual profit and capital status shall be adjusted by the resolution of the shareholders' meeting. The total number of shareholders' dividends distributed by the annual surplus shall be distributed at the rate of not less than 10% of the newly added distributable surplus for the year, but shall not be distributed if it is less than 1% of the paid-in capital. The aforementioned cash dividends shall not be less than 10% of the total dividends to be distributed to shareholders.

Under the dividends policy as set forth before amended Articles, when the Company makes a profit in a fiscal year, the profit shall be first utilized for paying taxes, offsetting losses of previous years, setting aside as legal reserve 10% of the remaining profit . However, this limitation is not applicable when the legal reserve has reached the total capital. Setting aside or reversing a special reserve in accordance with the laws and regulations, and then any remaining profit together with any undistributed retained earnings shall be used by the Company’s board of directors as the basis for proposing a distribution plan, which should be resolved in the shareholders’ meeting for the distribution of dividends and bonuses to shareholders. However, the ratio of the distribution of surplus and the ratio of shareholders' cash dividends may be adjusted by the resolution of the shareholders' meeting depending on the actual profit and capital situation of the current year. The Company’s 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 should be allocated from unappropriated retained earnings. For the policies on the distribution of employees’ compensation and remuneration to directors and supervisors before and after amendment, refer to Note 22-g.

Appropriation of earnings to the 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 appropriations of earnings for 2020 and 2019 approved in the shareholders’ meeting on July 20, 2021 and June 12, 2020, as follows:

	For	Year 2020	For	Year 2019
Legal reserve Legal reserve deficits compensated Special reserve reversed	$ $ $	32,889 - 15,111	$ $ $	- 229,998 32,263
Cash dividend	$	311,093	$	-
Cash dividend per share (NT$)	$	0.5255	$	-

The Company’s shareholders resolved in the shareholders’ meetings on June 12, 2020 to issue and cash dividends of $177,598 thousand from the capital surplus.

The earnings distribution proposal for 2021 in the board of directors meeting proposed on March 29, 2022 as follows:

	For the Year	For the Year
		2021
Legal reserve	$	124,955
Special reserve reversed	$	21,875
Cash dividend	$	1,146,102
Cash dividend per share (NT$)	$	1.936

The Company’s shareholders resolved in the shareholders’ meetings on March 29, 2022 to issue and cash dividends of $37,888 thousand from the capital surplus.

The appropriation of earnings for 2021 is subject to resolution in the shareholders’ meeting to be held on June 8, 2022.

d. Special reserve

Beginning at January 1 Special reserve reversed Balance at December 31	For the Year Ended	For the Year Ended	December 31
		2021 $ 276,189 (15,111) $ 261,078	2020 $ 308,452 (32,263) $ 276,189

e. Other equity items

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

Balance at January 1 Exchange differences on translating foreign operations Share of exchange differences of associates accounted for using equity method Reclassification adjustments Disposal of foreign operations Balance at December 31	For the Year Ended	For the Year Ended	December 31
		2021 $ (228,023) (31,220) (269) - $ (259,512)	2020 $ (218,780) (1,032) 2,072 (10,283) $ (228,023)

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

Balance at January 1 Current Unrealized gain (loss) Share of unrealized gain (loss) on associates accounted for using the equity method Cumulative unrealized gain (loss) of equity instruments transferred to retained earnings due to disposal Disposal of partial interests in subsidiaries Balance at December 31	For the Year Ended	For the Year Ended	December 31
		2021 $ (33,055) 89,977 27,943 (65,578) 1,022 $ 20,309	2020 $ (42,246) (1,354) 7,261 1,172 2,112 $ (33,055)

f. Non-controlling interests

Balance at January 1 Attributable to non-controlling interests: Share of profit for the year Exchange difference on translation foreign operations Unrealized gain (loss) on financial assets at FVTOCI Actuarial gains on defined benefit plans Cash dividends from subsidiaries Non-controlling interests related to outstanding vested share options Disposal of partial interests in subsidiaries Non-controlling interests from vested employee share options granted by Sunplus Innovation (Note 28) Others Balance at December 31	For the Year Ended December 31	For the Year Ended December 31	For the Year Ended December 31
		2021 $ 1,605,238 573,457 (2,070) (56) (180) (283,972) 459,708 16,480 92,154 - $ 2,460,759	2020 $ 1,394,158 295,424 4,165 (1,861) (96) (139,531) 12,000 31,770 9,408 (199) $ 1,605,238

g. Treasury shares

	Shares
	Transferred to	Shares Held by
	Employees (In	Its Subsidiaries	Total (In
	Thousands of	(In Thousands	Thousands of
Purpose of Buyback	Shares)	of Shares)	Shares)
Number of shares as of January 1, 2020	-	3,560	3,560
Decrease	-	-	-
Number of shares as December 31, 2020	-	3,560	3,560
Number of shares as of January 1, 2021	-	3,560	3,560
Decrease	-	-	-
Number of shares as December 31, 2021	-	3,560	3,560

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

	Shares
	Transferred to	Shares Held by
	Employees (in	Its Subsidiaries	Total (in
	Thousands of	(in Thousands	Thousands of
Purpose of Buyback	Shares)	of Shares)	Shares)
December 31, 2021
Lin Shin Investment Co Ltd	3,560	$ 63,401	$ 138,306
December 31, 2020
Lin Shin Investment Co Ltd	3,560	$ 63,401	$ 65,148

Under the Securities and Exchange Act, The Group shall neither pledge treasury shares nor exercise shareholders’ rights on these shares, such as rights to dividends and to vote.

24. REVENUE

Revenue from the sale of goods Rental income from property Other	For the Year Ended December 31	For the Year Ended December 31	For the Year Ended December 31
		2021 $ 7,615,235 240,964 104,632 $ 7,960,831	2020 $ 6,084,210 230,273 99,657 $ 6,414,140

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

c.	December 31, 2021 Notes receivable and trade receivables (Note 9) $ 1,285,944 Contract liabilities - current $ 30,109 Disaggregation of revenue Primary geographical markets Asia Taiwan Others Timing of revenue recognition Satisfied at a point in time Satisfied over time	December 31, 2020 January 1, 2020 $ 1,204,798 $ 832,633 $ 26,181 $ 24,912 Reportable Segments	December 31, 2020 January 1, 2020 $ 1,204,798 $ 832,633 $ 26,181 $ 24,912 Reportable Segments	December 31, 2020 January 1, 2020 $ 1,204,798 $ 832,633 $ 26,181 $ 24,912 Reportable Segments
			Direct Sales
			2021 $ 4,715,325 3,187,987 57,519 $ 7,960,831 $ 7,709,295 251,536 $ 7,960,831	2020 $ 3,816,229 2,536,578 61,333 $ 6,414,140 $ 6,176,425 237,715 $ 6,414,140

25. NET PROFIT

Net profit included the following items:

a. Interest income

Bank deposits Others	For the Year Ended	For the Year Ended	December 31
		2021 $ 25,451 15 $ 25,466	2020 $ 24,052 - $ 24,052

b. Other income

Dividend income Subsidy income (Note 29) Others	For the Year Ended	For the Year Ended	December 31
		2021 $ 91,022 80,929 70,781 $ 242,732	2020 $ 29,412 40,135 48,257 $ 117,804

c. Other gains and losses

For the Year Ended	For the Year Ended	December 31
2021 $ 837,439 (6,685) - 15,377 $ 846,131 For the Year Ended		2020 $ 122,742 (10,900) 7,795 7,711 $ 126,748 December 31
2021 $ 8,259 5,303 599 $ 14,161 For the Year Ended		2020 $ 7,527 5,555 2,664 $ 15,746 December 31
	2021 $ 78,696 199,819 $ 278,515 $ 24 133,204 $ 133,228	2020 $ 79,253 221,821 $ 301,074 $ - 89,948 $ 89,948

d. Finance costs

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f. Operating expenses directly related to investment properties

Direct operating expenses from investment property that generated rental income Employee benefit expense Short-term benefits Post-employment benefits Defined contribution plans Defined benefit plans (Note 21) Other employee benefits Share-based payments Equity-settled Other employee benefits Total employee benefit expense An analysis of employee benefit expense by function Operating costs Operating expenses	For the Year Ended December 31	For the Year Ended December 31	For the Year Ended December 31
	2021 2020 $ 87,802 $ 85,869 For the Year Ended December 31
		2021 $ 2,013,200 47,559 (11,358) 36,201 92,154 38,531 $ 2,180,086 $ 102,342 2,077,744 $ 2,180,086	2020 $ 1,661,037 46,178 1,034 47,212 9,408 35,402 $ 1,753,059 $ 101,951 1,651,108 $ 1,753,059

g. Employee benefit expense

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, 2021 and 2020 were as follows:

Accrual rate

Employees’ compensation Remuneration of directors	For the Year Ended December 31
	2021 2020 1.00% 1.00% 1.50% 1.50%

Amount

Employees’ compensation Remuneration of directors	For the Year Ended December 31	For the Year Ended December 31
	2021 Cash Shares $ 12,136 $ 18,203	2020
		Cash Shares
		$ 3,317 $ -
		4,975 -

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.

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, 2020.

The Company convened a board of directors on April 22, 2020, and decided that the actual allotment amount for compensation of employees and director compensation is different from the recognized amount in the annual consolidated financial report. The difference is adjusted to the profit and loss for 2020.

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

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

Exchange rate gains Exchange rate losses Net loss	For the Year Ended	For the Year Ended	December 31
		2021 $ 75,741 (84,426) $ (6,685)	2020 $ 130,878 (141,778) $ (10,900)

26. INCOME TAXES

a. Income tax recognized in profit or loss

The major components of tax expense were as follows:

Current tax In respect of the current year Adjustments for prior periods Deferred tax In respect of the current year Income tax expense recognized in profit or loss	For the Year Ended	For the Year Ended	December 31
		2021 $ 321,319 (14,205) 307,114 (5,029) $ 302,085	2020 $ 179,824 (9,630) 170,194 (4,283) $ 165,911

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

For the Year Ended December 31	For the Year Ended December 31	For the Year Ended December 31
2021 2020 $ 2,058,327 $ 784,738 $ 411,665 $ 156,948 (48) 716 (56,280) (27,165) (119,137) 5,916 (12,073) (12,857) (36) (34) - (4,618) (2,845) (993) 12,246 283 233,492 118,196 (5,029) (4,283) 87,394 61,126 (14,205) (9,630) 433 502 $ 302,085 $ 165,911 December 31

$

	2021 $ 22 $ 254,071	2020 $ 415 $ 155,138

b. Current tax assets and liabilities
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, 2021

Deferred Tax Assets Temporary differences Unrealized loss on inventories Fixed assets Unrealized sales Exchange (gains) losses Other	Opening Balance Recognized in Profit or Loss Closing Balance $ 11,794 $ 2,893 $ 14,687 3,438 (148) 3,290 - 222 222 (1,394) 871 (523) 19,199 1,191 20,390 $ 33,037 $ 5,029 $ 38,066

For the year ended December 31, 2020

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

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

Loss Carryforwards Expiry in 2021 Expiry in 2022 Expiry in 2023 Expiry in 2024 Expiry in 2025 Expiry in 2026 Expiry in 2027 Expiry in 2028 Expiry in 2029 Expiry in 2030 Expiry in 2031 Deductible temporary differences		December 31	December 31
		2021 $ - 536,364 1,466,752 65,199 49,489 55,552 88,194 130,320 391,411 94,120 34,233 $ 2,911,634 $ 109,975	2020 $ 530,904 536,364 1,467,084 65,199 49,489 55,551 88,194 130,320 391,411 83,032 - $ 3,397,548 $ 117,978

e. Unused loss carryforwards and tax-exemptions

Loss carryforwards as of December 31, 2021 pertaining to Sunplus:

Unused Amount	Unused Amount	Expiry Year
$	394,894	2022
	1,144,831	2023
	24,228	2027
	329,899	2029
	57,825	2030
	4,766	2031
$	1,956,443

Loss carryforwards as of December 31, 2021 pertaining to Sunplus Venture:

Unused Amount	Expiry Year
$ 4,863	2022
91,865	2023
$ 96,728
Loss carryforwards as of December 31, 2021 pertaining to Lin Shin:
Unused Amount	Expiry Year
$ 39,908	2023
Loss carryforwards as of December 31, 2021 pertaining to Sunext:
Unused Amount	Expiry Year
$ 100,760	2022
159,490	2023
31,147	2024
975	2025
$ 292,372
Loss carryforwards as of December 31, 2021 pertaining to Genki Tek`：`
Unused Amount	Expiry Year
$ 7,971	2030
13,807	2031
$ 21,778
Loss carryforwards as of December 31, 2021 pertaining to Sunplus mMedia:
Unused Amount	Expiry Year
$ 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
76	2031
$ 226,436

Loss carryforwards as of December 31, 2021 pertaining to Jumplux:

Unused Amount	Unused Amount	Expiry Year
$	4,692	2024
	21,350	2025
	44,397	2026
	54,597	2027
	72,893	2028
	36,467	2029
	27,989	2030
	15,584	2031
$	277,969

f. Income tax assessments

The income tax returns of GenkiTek Technology through 2020; Sunplus, Sunplus mMobile, Sunplus Innovation Technology, Sunext Technology Co., Ltd., Jumplux Technology, Lin Shin Investment, Sunplus Venture, Sunplus mMedia, Wei-Young Investment Inc. and Sunplus Management Consulting through 2019 have been assessed by the tax authorities.

27. EARNINGS PER SHARE

Basic gain per share Diluted earnings per share	Unit: NT$ Per Share For the Year Ended December 31	Unit: NT$ Per Share For the Year Ended December 31	Unit: NT$ Per Share For the Year Ended December 31
		2021 $ 2.01 $ 2.01	2020 $ 0.55 $ 0.55

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

Profit for the year attributable to owners of the Company Effect of potentially dilutive ordinary shares Bonuses for employees Earnings used in the computation of diluted EPS from continuing operations	For the Year Ended December 31	For the Year Ended December 31	For the Year Ended December 31
		2021 $ 1,182,787 - $ 1,182,787	2020 $ 323,403 - $ 323,403

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

Weighted average number of ordinary shares used in the computation of basic earnings per shares Effect of dilutive potential ordinary shares: Bonuses issued to employees Weighted average number of ordinary shares used in the computation of diluted earnings per share	For the Year Ended December 31	For the Year Ended December 31	For the Year Ended December 31
		2021 588,435 340 588,775	2020 588,435 181 588,616

The Company may settle the compensation of employees in cash or shares; therefore, the Company 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.

28. SHARE-BASED PAYMENT ARRANGEMENTS

a. Restricted shares for employees

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

The first and second restricted share plans were approved by the board of directors on October 28, 2020 and September 6, 2021. The total amounts both of the two shares was $10,000 thousand, consisting of 1,000 thousand shares and the issuing price of each share was NT$0. Sunplus Innovation Technology has set October 28, 2020 and September 6, 2021 as the grant dates, and November 5, 2020 and September 7, 2021 as the record dates of capital increase. The amounts of the fair value of the granted shares were $75.26 and $163.50 per share.

After the restricted shares are allocated to employees in accordance with the Sunplus Innovation Technology’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 employment: If an employee is requested to transfer to an affiliate company or other company (except transferring to a subsidiary), the restricted shares shall be proceed according to the regulation of "Resignation". However, due to Sunplus Innovation Technology Company’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:

Outstanding shares at January 1 Shares granted Shares vested Shares forfeited Outstanding shares at December 31	For the Year Ended December 31, 2021 Number of Options (In Thousands of Units) 1,000 1,000 (495) (10) 1,495	For the Year Ended December 31, 2020
		Number of Options (In Thousands of Units) - 1,000 - - 1,000

Compensation costs recognized were NT$90,453 thousand and NT$9,408 thousand for the year ended December 31, 2021 and 2020.

b. Capital Increase by Cash Reserved for Employees

The board of directors of Sunplus Innovation Technology resolved on June 2, 2021 to process the initial cash capital increase before the OTC to reserve 506 thousand shares for employees to subscribe. The grant date was July 15, 2021, and the total number of subscribed shares was 486 thousand shares. The above ordinary share issuance reserved for employee option’s fair value was priced using the Black-Scholes evaluation model, and the inputs to the model are as follows:

	July, 2021	July, 2021
Grant-date share price(NT$)	$	156.90
Exercise price(NT$)	$	160.00
Expected volatility		52.57%
Expected life(in days)		8
Risk-free interest rate		0.35%
Fair value of option(NT$)	$	3.50

Capital increase by cash reserved for compensation of employees costs recognized was NT$1,701 thousand for the year ended December 31, 2021.

29. 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, 2021 and 2020 was $1,580 thousand and $1,559 thousand, respectively.

The Group 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 $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 from 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 subsidy amounted to $115,356 thousand. As of December 31, 2021 and 2020, the accumulated subsidies received were $70,139 thousand and $44,201 thousand, respectively. The amounts of the recognized subsidy income were $70,121 thousand and $0. In addition, the Company has a special account for subsidies in accordance with regulations. The monthly withdrawal amount shall be withdrawn according to the monthly expenditure summary statement, and the withdrawal amount shall not be higher than the expenditure amount.

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	$ 1,240
Less: Cash and cash equivalent balances disposed of	(2,106)
	$ (866)

31. EQUITY TRANSACTIONS WITH NON-CONTROLLING INTERESTS

In June 2020, Giant Rock subscribed for the cash capital increase of Sunplus APP Technology, increasing its controlling interest from 96.16% to 96.32%.

The Company disposed of its 2.92% shareholding in Sunplus Innovation Technology in September 2020, resulting in a decrease in the overall shareholding ratio from 68.86% to 65.94%.

In August 2021, Giant Rock subscribed for the cash capital increase of Sunplus APP Technology, increasing its controlling interest from 96.32% to 97.44%.

In July 2021, the Company disposed of its 2.28% shareholding in Sunplus Innovation Technology. The Company at a percentage different from its existing ownership percentage for the cash capital increase equity, resulting in a decrease in the overall shareholding ratio from 65.94% to 58.86%.

In November 2021, Sunplus Innovation Technology had vested restricted shares, resulting in a decrease in the overall shareholding ratio from 58.86% to 58.36%.

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

2021

Sunplus
Innovation
Technology Inc.
Cash consideration paid
$ 1,066,567

The proportionate share of the carrying amount of the net assets of
the subsidiary transferred to non-controlling interests
(474,417)
Reattribution of other equity from non-controlling interests
Unrealized loss on financial assets at FVTOCI

(1,022)

Differences recognized from equity transactions
$ 591,128

Sunplus
Innovation
Technology Inc.
Sunplus App
Technology
Line items adjusted for equity transactions
Capital surplus - changes in percentage of
ownership interests in subsidiaries
$ 499,677
$ (1,771)

Capital surplus - difference between
consideration received or paid and the carrying
amount of the subsidiaries’ net assets during
actual disposal or acquisition

91,451

-

$ 591,128
$ (1,771)

2020
Sunplus
Innovation
Technology Inc.
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)
Reattribution of other equity from non-controlling interests
Unrealized loss on financial assets at FVTOCI

(2,112)

Differences recognized from equity transactions
$ 67,132

Sunplus
Innovation
Technology Inc.
Sunplus App
Technology
Line items adjusted for equity transactions
Retained earnings
$ -
$ (183)

Capital surplus - difference between
consideration received or paid and the carrying
amount of the subsidiaries’ net assets during
actual disposal or acquisition

67,132

-

$ 67,132
$ (183)

Sunplus App
Technology
$ -

(1,771)

-
$ (1,771)
Total
$ 497,906

91,451
$ 589,357
Sunplus App
Technology
$ -
(183)

-
$ (183)
Total
$ (183)

67,132
$ 66,949

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, 2021 Financial assets at FVTPL Mutual funds Domestic/foreign unlisted shares Domestic/foreign listed shares Securities listed in the ROC and other countries - CB Limited partnership Financial assets at FVTOCI Domestic private listed shares Domestic/foreign unlisted shares	Level 1 $ 1,199,486 164,738 273,390 - - $ 1,637,614 $ - 89,486 $ 89,486	Level 2 $ - - - - - $ - $ - - $ -	Level 3 $ - 1,192,970 - 134,269 436,013 $ 1,763,252 $ 10,062 116,708 $ 126,770	Total $ 1,199,486 1,357,708 273,390 134,269 436,013 $ 3,400,866 $ 10,062 206,194 $ 216,256

December 31, 2020

Financial assets at FVTPL Mutual funds Domestic/foreign unlisted shares Domestic/foreign listed shares Securities listed in the ROC and other countries - CB Limited partnership Financial assets at FVTOCI Domestic listed shares Domestic private listed shares Domestic/foreign unlisted shares	Level 1 $ 656,424 144,984 87,933 2,820 - $ 892,161 $ 81,506 - 32,323 $ 113,829	Level 2 $ - - - - - $ - $ - - - $ -	Level 3 $ - 746,101 - - 327,856 $ 1,073,957 $ - 11,255 67,444 $ 78,699	Total $ 656,424 891,085 87,933 2,820 327,856 $ 1,966,118 $ 81,506 11,255 99,767 $ 192,528

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, 2021

Financial Assets
Financial Assets
at FVTPL
Financial Assets
at FVTOCI
Balance at January 1, 2021
$ 1,073,957
$ 78,699

Recognized in profit or loss
499,001
-
Recognized in other comprehensive
income
-
(9,837)
Reclassified
(10,438)
-
Purchases
264,321
58,584
Disposals and proceeds from return of
capital of investments
(10,592)
-
Transfer out of Level 3
(48,600)
-
Effect of exchange rate changes

(4,397)

(676)

Balance at December 31, 2021
$ 1,763,252
$ 126,770

Total
$ 1,152,656
499,001

(9,837)

(10,438)
322,905

(10,592)
(48,600)
(5,073)
$ 1,890,022

For the Year Ended December 31, 2020

Financial Assets
Financial Assets
at FVTPL
Financial Assets
at FVTOCI
Balance at January 1, 2020
$ 956,611
$ 80,235

Recognized in profit or loss
140,724
-
Recognized in other comprehensive
income
-
(7,386)
Purchases
116,624
10,004
Disposals and proceeds from return of
capital of investments
(5,548)
(2,628)
Transfer out of Level 3
(131,355)
-
Effect of exchange rate changes

(2,739)

(1,526)

Balance at December 31, 2020
$ 1,073,957
$ 78,699

Total
$ 1,036,846
140,724

(7,386)
126,268

(8,176)
(131,355)

(4,265)
$ 1,152,656

3) Valuation techniques and inputs applied for Level 3 fair value measurement
a) The fair values of unlisted equity securities – domestic and foreign were determined using the market approach. The significant unobservable inputs used are listed in the table below. 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.

Price-to-book ratio Price-to-sales ratio Discount for lack of marketability	December 31
	2021 2020 2.22-3.94 2.41-5.78 0.91-2.85 1.86-13.46 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.

Long-term revenue growth ratio Weighted average cost of capital ratio Discount for lack of marketability	December 31
	2021 2020 2.00% 2.00% 8.879% 9.34% 30% 30%

d) Domestic listed private equity investment refers to the transaction price of the listed company’s stock in the active market, and uses the unobservable input value as discount for lack of marketability to determine the value of the evaluation target.

c.	Discount for lack of marketability Categories of financial instruments Financial assets Fair value through profit or loss (FVTPL) Financial assets at amortized cost (1) Financial assets at fair value through other comprehensive income Equity instruments Financial liabilities Measured at amortized cost (2)	December 31, 2021 29.8% December 31
		2021 2020 $ 3,400,866 $ 1,966,118 6,599,715 5,179,818 216,256 192,528 1,762,041 1,214,367

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, accounts payable, 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.

Profit or loss Profit or loss	USD Impact
	For the Year Ended December 31
	2021 2020 $ (16,811) $ (13,719) RMB Impact
	For the Year Ended December 31
	2021 2020 $ 2,599 $ 4,320

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:

Fair value interest rate risk Financial assets Financial liabilities Cash flow interest rate risk Financial assets Financial liabilities Sensitivity analysis	December 31
	2021 2020 $ 2,618,028 $ 2,585,743 220,078 518,255 2,523,929 1,321,455 573,773 258,000

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, 2021 and 2020 would increase/decrease by $2,483 thousand and $1,329 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, 2021 and 2020 would have increased/decreased by $34,009 thousand and $19,661 thousand, respectively.

Had the prices of financial assets at FVTOCI been 1% higher/lower, post-tax profit for the years ended December 31, 2021 and 2020 would have increased/decreased by $2,163 thousand and $1,925 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 68% and 65% in total trade receivables as of December 31, 2021 and 2020, 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, 2021 and 2020, 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, 2021

On Demand or Less than 1 Month Non-derivative financial liabilities Non-interest bearing $ 658,464 Lease liabilities 1,486 Variable interest rate liabilities 99,024 Fixed interest rate liabilities - $ 758,974	1-3 Months More than 3 Months to 1 Year $ 381,214 $ 8,222 3,114 12,624 45,000 46,000 - - $ 429,328 $ 66,846	Over 1 Year to 5 Years $ 40,492 45,671 384,000 4,972 $ 475,135	5+ Years $ - 244,833 - 183,713 $ 428,546

Additional information about the maturity analysis for lease liabilities:

Lease liabilities	Less than 1 Year $ 17,224	1-5 Years $ 45,671	5-10 Years 10-15 Years 15-20 Years $ 48,109 $ 48,109 $ 39,358	20+ Years $ 109,257

December 31, 2020

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

Additional information about the maturity analysis for lease liabilities:

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

b) Financing facilities

Unsecured bank overdraft facility, review annually and payable on demand Amount used Amount unused		December 31	December 31
		2021 $ 599,711 3,871,132 $ 4,470,843	2020 $ 588,140 4,361,912 $ 4,950,052

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 Global View Co., Ltd. Beijing Golden Global View Co., Ltd. iCatch Technology, Inc.	Relationship with the Group
	Associate Associate (Note) Associate

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

b. Sales of goods

Line Items Related Party Categories Sales Associates	For the Year Ended	For the Year Ended	December 31
		2021 $ 50,363	2020 $ 54,743

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)

Account Item Related Party Trade receivables Associates Other trade receivable Associates		December	31
		2021 $ 10,752 $ 529	2020 $ 9,740 $ 243

There were no guarantees on outstanding receivables from related parties. For the years ended December 31, 2021 and 2020, no impairment loss was recognized for trade receivables from related parties.

d. Prepayments (excluding loans to related parties)

Line Item Related Party Category Other current assets Associate		December	31
		2021 $ 189	2020 $ 108

e. Other transactions with related parties

Account Item Related Parties Types Operating expenses Associates Non-operating income and expenses Associates		December	31
		2021 $ 297 $ 9,489	2020 $ 394 $ 4,504

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

Short-term employee benefits Post-employment benefits	For the Year Ended	For the Year Ended	December 31
		2021 $ 84,551 1,465 $ 86,016	2020 $ 48,716 1,193 $ 49,909

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:

Buildings, net Pledged time deposits (classified as other financial assets, including current and non-current)		December 31	December 31
		2021 $ 556,931 13,011 $ 569,942	2020 $ 576,333 149,729 $ 726,062

36. SIGNIFICANT CONTINGENT LIABILITIES AND UNRECOGNIZED COMMITMENTS

Significant commitment of the Company as of the end of the reporting period, excluding these disclosed in other note, were as follow:

a. Long-term purchase contract:

Generalplus signed a long-term supply contract with the supplier in December 2021. According to the contract agreed that supply quantity and price from January 1, 2022 to December 31, 2024. According to the contract, Generalplus has been paid USD 3,456 thousand to the supplier as a guarantee to ensure the supply of production capacity. The contract stipulates that if fail to fulfill the agreed purchase quantity or supply quantity, the other party has the right to demand a certain amount of compensation.

37. 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, 2021

		Foreign
		Currency	Exchange	Carrying
	(In Thousands)		Rate	Amount
Financial assets
Monetary items
USD	$	65,245	27.680	$ 1,805,982
JPY		9,108	0.241	2,195
CNY		1,258	4.344	5,465
HKD		150	3.549	532
GBP		3	37.300	112
EUR		1	31.320	31
Nonmonetary items
CHF		595	30.175	17,953
				(Continued)

		Foreign
		Currency	Exchange	Carrying
	(In Thousands)		Rate	Amount
Financial liabilities
Monetary items
USD	$	48,434	27.680	$ 1,340,653
JPY		417	0.241	100
CNY		3,857	4.344	16,755
HKD		14	3.549	50
				(Concluded)
December 31, 2020
		Foreign
		Currency	Exchange	Carrying
	(In Thousands)		Rate	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

For the years ended December 31, 2021 and 2020, (realized and unrealized) net foreign exchange losses were NT$6,685 thousand and NT$10,900 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.

38. 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: No.
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 4 (attached)
11) Information on investee: Table 5 (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 6)
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 7)
- 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 8)

Except for Table 1 to Table 8, there’s no further information about other significant transactions.

39. 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, 2021 and 2020 are shown in the accompanying consolidated income statements, and the assets by segment as of December 31, 2021 and 2020 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.

IC design Income from lease of property, plant, and equipment Other income	Segment Revenue	Segment Revenue	Segment Revenue
	For the Year Ended December 31
		2021 $ 7,615,235 240,964 104,632 $ 7,960,831	2020 $ 6,084,210 230,273 99,657 $ 6,414,140

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.

Asia Taiwan Others		Revenue from External Customers For the Year Ended December 31 2021 2020 $ 4,715,325 $ 3,816,229 3,187,987 2,536,578 57,519 61,333 $ 7,960,831 $ 6,414,140		Non-current Assets	Non-current Assets
				For the Year Ended December 31
		2021 $ 4,715,325 3,187,987 57,519 $ 7,960,831		2021 $ 1,962,374 1,462,547 - $ 3,424,921	2020 $ 2,099,018 1,445,646 - $ 3,544,664

Non-current assets exclude financial instruments, deferred tax assets and other non-current assets.

c. Information about major customers

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

Customer A Customer B Customer C	For the Year Ended December 31
	2021 2020 $ 1,304,206 $ 1,011,656 1,145,765 790,658 939,933 697,017

TABLE 1

SUNPLUS TECHNOLOGY COMPANY LIMITED AND SUBSIDIARIES

FINANCINGS PROVIDED FOR THE YEAR ENDED DECEMBER 31, 2021 (In Thousands of New Taiwan Dollars, Unless Stated Otherwise)

No.	Lender	Borrower	Financial Statement Account	Related Parties	Highest Balance for the Period	Ending Balance	Actual Borrowing Amount	Interest Rate	Nature of Financing	Business Transaction Amounts	Reasons for Short-term Financing	Allowance for Bad Debt	Collateral	Collateral	Financing Limit for Each Borrower	Aggregate Financing Limit
													Item	Value
2 2 2 3 4 5 6	Sunplus Technology (Shanghai) Co., Ltd. Sunplus Technology (Shanghai) Co., Ltd. Sunplus Technology (Shanghai) Co., Ltd. Russell Holdings Ltd. Sunplus Venture Capital Co., Ltd. Sunplus Prof-tek Technology (Shenzhen) Lin Shin Investments co., Ltd.	Sunplus APP Technology Chongqing CQPlus1 Technology Co., Ltd. Sun Media Technology Co., Ltd. Sun Media Technology Co., Ltd. Sun Media Technology Co., Ltd. Sunplus APP Technology Sun Media Technology Co., Ltd.	Receivables from related parties Receivables from related parties Receivables from related parties Receivables from related parties Receivables from related parties Receivables from related parties Receivables from related parties	Yes Yes Yes Yes Yes Yes Yes	$ 12,275 60,816 131,672 242,548 158,064 37,045 153,780	$ - 60,816 131,189 235,280 29,064 - 99,648	$ - - 131,189 235,280 29,064 - 99,648	1.80% 1.80% 1.80% - 0.52% 1.80% 0.52%	Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1	$ - - - - - - -	Note 2 Note 3 Note 4 Note 5 Note 6 Note 7 Note 8	$ - - - - - - -	- - - - - - -	$ - - - - - - -	$ 59,870 (Note 9) 359,219 (Note 10) 359,219 (Note 10) 559,142 (Note 11) 427,393 (Note 12) 73,140 (Note 13) 478,349 (Note 14)	$ 59,870 (Note 9) 359,219 (Note 10) 359,219 (Note 10) 559,142 (Note 11) 427,393 (Note 12) 73,140 (Note 13) 478,349 (Note 14)

Note 1: Short-term financing.
Note 2: Sunplus Technology (Shanghai) Co., Ltd. provided funds for the operating needs of Sunplus APP Technology.
Note 3: Sunplus Technology (Shanghai) Co., Ltd. provided funds for the operating needs of Chongqing CQPlus1 Technology Co., Ltd.
Note 4: Sunplus Technology (Shanghai) Co., Ltd. provided funds for the operating needs of Sun Media Technology Co., Ltd.
Note 5: Russell Holdings Ltd. provided funds for the operating needs of Sun Media Technology Co., Ltd.
Note 6: Sunplus Venture Capital provided funds for the operating needs of Sun Media Technology Co., Ltd.
Note 7: Sunplus Prof-tek Technology (Shenzhen) provided funds for the operating needs of Sunplus APP Technology.
Note 8: Lin Shin Investments Co., Ltd. provided funds for the operating needs of Sun Media Technology Co., Ltd.
Note 9: 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 10: Sunplus Technology (Shanghai) Co., Ltd. and the loans are all foreign companies whose parent company directly and indirectly holds 100% of the voting shares. When the 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 60%, and its period should not exceed more than 2 years.
Note 11: 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 12: 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 13: 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 14: The total amount of all guarantees issued and the individual amount of each guarantee should not exceed 40% of Lin Shin 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, 2021 (In Thousands of New Taiwan Dollars, Unless Stated Otherwise)

No.	Endorser/ Guarantor	Endorsee/Guarantee	Endorsee/Guarantee	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
		Name	Nature of Relationship
0 (Note 1) 0 (Note 1) 1 (Note 2) 3	Sunplus Sunplus RUSSELL HOLDINGS LTD. Sunplus Technology (Shanghai) Co., Ltd.	Chongqing CQPlus1 Technology Co., Ltd. Sunplus APP Technology Sun Media Technology Co., Ltd. Sunplus APP Technology	3 (Note 3) 3 (Note 3) 3 (Note 3) 3 (Note 3)	$ 1,011,834 (Note 4) 1,011,834 (Note 4) 419,356 (Note 6) 59,870 (Note 7)	$ 65,400 61,512 167,160 43,290	$ 65,160 - 55,360 -	$ - - - -	$ - - - -	0.68 - 10.01 -	$ 2,023,667 (Note 5) 2,023,667 (Note 5) 419,356 (Note 6) 119,740 (Note 8)	Yes Yes No No	No No No No	Yes Yes 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.

Note 7: Sunplus Technology (Shanghai) Co., Ltd 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 8: Sunplus Technology (Shanghai) Co., Ltd. guarantee amount should not exceed 20% of the endorsement/guarantee provider’s net equity based on the provider’s latest financial statements.

TABLE 3

SUNPLUS TECHNOLOGY COMPANY LIMITED AND SUBSIDIARIES

MARKETABLE SECURITIES HELD FOR THE YEAR ENDED DECEMBER 31, 2021

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

Holding Company Name	Type and Name of Marketable Security	Relationship with the Holding Company	Financial Statement Account		December 31, 2021	December 31, 2021		Note
				Shares or Units (In Thousands)	Carrying Amount	Percentage of Ownership (%)	Market Value or Net Asset Value
Sunplus Technology Company Limited (the “Company”) Lin Shin Investment Co., Ltd. Russell Holdings Limited	Yuanta USD Money Market USD Taishin ESG Emerging Markets Bond Fund PineBridge Global ESG Quantitative Bond Fund Taishin 1699 Money Market Evergreen Steel Co., Ltd. Triknight Capital Corporation Marvest Series 1 Fund Taiwan Mask Corp. UPI Semiconductor Corp. A-Spine Asia Co., Ltd. Enterex International Limited - Convertible Bonds Yong Feng Yu Inc. Evergreen Aviation Technologies Corporation Genius Vision Digital Co., Ltd. Sanjet Technology Corporation Lead Sun Corporation Chain Sea Information Integration Co., Ltd. AIII CO., Ltd. GEMFOR Leading Financial Solution Provider Fund Sunplus Technology Co., Ltd. Prine Rich International Co., Ltd. Synerchip Inc. OZ Optics Limited	- - - - - - - ~~-~~ - - - - - - - - - - - Parent company - - -	Financial assets at FVTPL - current Financial assets at FVTPL - current Financial assets at FVTPL - current Financial assets at FVTPL - current Financial assets at FVTPL - current Financial assets at FVTPL - non-current Financial assets at FVTPL - non-current Financial assets at FVTPL - current Financial assets at FVTPL - current Financial assets at FVTPL - current Financial assets at FVTPL - current Financial assets at FVTPL - current Financial assets at FVTPL - current Financial assets at FVTPL - non-current Financial assets at FVTPL - non-current Financial assets at FVTPL - non-current Financial assets at FVTPL - non-current Financial assets at FVTPL - non-current Financial assets at FVTPL - non-current Financial assets at FVTOCI - non-current Financial assets at FVTOCI - non-current Financial assets at FVTPL - non-current Financial assets at FVTPL - non-current	99 972 2,894 1,467 1,200 289,285 2 101 180 197 30 393 1,100 300 8 1,000 53 29 13 3,560 33 6,452 1,000	$ 29,157 8,913 29,500 20,063 66,000 515,261 - 10,908 164,738 7,520 - 19,728 69,300 - - 28,481 474 431 216 138,306 2,840 - - -	- - - - - 15 - - - - - - - 4 - 12 - - - 1 - 12 8	$ 29,157 8,913 29,500 20,063 66,000 515,261 - 10,908 164,738 7,520 - 19,728 69,300 - - 28,481 474 431 216 138,306 2,840 - -	Note 3 Note 3 Note 3 Note 3 Note 2 Note 1 Note 1 Note 2 Note 4 Note 1 Note 1 Note 2 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 2 Note 1 Note 1 Note 1
								(Continued)

Holding Company Name	Type and Name of Marketable Security	Relationship with the Holding Company	Financial Statement Account		December 31, 2021	December 31, 2021		Note
				Shares or Units (In Thousands)	Carrying Amount	Percentage of Ownership (%)	Market Value or Net Asset Value
Russell Holdings Limited Sunplus Venture Capital Co., Ltd.	Ortega InfoSystem, Inc. Innobrige International Inc. Ether Precision Inc. Asia Tech Taiwan Venture, L.P. Asia B2B on Line Inc. AMED Ventures I, L.P. Intudo Ventures II, L.P. Intudo Ventures III, L.P. Gigajot Technology, Inc - Convertible Bonds Gigajot Technology, Inc GeneOne Diagnostics Corporation EYs3d Microelectronics, Inc. Charles Schwab - Money Fund Taiwan Mask Corp. eWave System, Inc. VenGlobal International Fund Book4u Company Limited Sanjet Technology Corp. Simple Act Inc. Genius Vision Digital Co., Ltd. CYBERON Corporation Grand Fortune Venture Capital Co., Ltd. Huijia Health Life Technology San Neng Group Holding Co., Ltd. Raynergy Tek Inc.	- - - - - - - - - - - - - - - - - - - - - - - - -	Financial assets at FVTPL - non-current Financial assets at FVTPL - non-current Financial assets at FVTPL - non-current Financial assets at FVTPL - non-current Financial assets at FVTPL - non-current Financial assets at FVTPL - non-current Financial assets at FVTPL - non-current Financial assets at FVTPL - non-current Financial assets at FVTPL - non-current Financial assets at FVTPL - non-current Financial assets at FVTOCI - non-current Financial assets at FVTOCI - non-current Financial assets at FVTPL - current Financial assets at FVTPL - current Financial assets at FVTPL- non-current Financial assets at FVTPL - non-current Financial assets at FVTPL - non-current Financial assets at FVTPL - non-current Financial assets at FVTPL - non-current Financial assets at FVTPL - non-current Financial assets at FVTPL - non-current Financial assets at FVTPL - non-current Financial assets at FVTPL - non-current Financial assets at FVTPL - non-current Financial assets at FVTPL - non-current	2,557 4,000 1,250 - 1,000 - - - - 1 1,710 1,190 - 108 1,833 1 9 49 1,900 375 865 4,000 1,049 900 5,691	$ - - - - - 14,531 100,129 4,152 134,269 10,380 3,686 13,840 1,880 11,664 - - - - - - 32,330 61,886 740 43,200 43,134	- 15 1 5 3 2 6 1 - - 13 2 - - 22 - - - 10 5 8 7 5 1 15	$ - - - - - 14,531 100,129 4,152 134,269 10,380 3,686 13,840 1,880 11,664 - - - - - - 32,330 61,886 740 43,200 43,134	Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 2 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 2 Note 1

(Continued)

Holding Company Name	Type and Name of Marketable Security	Relationship with the Holding Company	Financial Statement Account		December 31, 2021	December 31, 2021		Note
				Shares or Units (In Thousands)	Carrying Amount	Percentage of Ownership (%)	Market Value or Net Asset Value
Sunplus Venture Capital Co., Ltd. Wei-Young Investment Inc. Sunplus Technology (Shanghai) Co., Ltd. Generalplus Technology Inc. Sunplus Innovation Technology Inc. Magic Sky Limited	Fuyou Venture Capital Limited Partnership CDIB Capital Growth Partners L.P. TIEF Fund LP Intudo Ventures I, L.P. Promise Technology Inc. Feature Integration Technology Inc. Qun-Kin Venture Capital Neuchips Corporation Protect Life International Biomedical Inc. UMC Co., Ltd. Nova Technology Corp. Everlight Electronic Co., Ltd. Chipbond Technology Corporation GF Live Treasury Currency B GF Type Money Market Fund B Chongqing CYIT Communication Technology Co., Ltd. Ready Sun Investment Group Fund Xiamen Xm-plus Technology Ltd. Yuanta De-Li Money Market Fund Mega Diamond Money Market Yuata De-Bao Money Market Fund Yuanta Wan Tai Money Market Fund Fuh Hwa You Li Money Market Fund Taishin Ta-Chong Money Market Fund Taishin 1699 Money Market Fund Fuh Hwa Money Market Fund Fubon Chi-Hsiang Money Market Fund Advanced Silicon SA Advanced NuMicro System, Inc. PointGrab Ltd. GTA Co., Ltd.	- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -	Financial assets at FVTPL - non-current Financial assets at FVTPL - non-current Financial assets at FVTPL - non-current Financial assets at FVTPL - non-current Financial assets at FVTOCI - non-current Financial assets at FVTOCI - non-current Financial assets at FVTOCI - non-current Financial assets at FVTOCI - non-current Financial assets at FVTOCI - non-current Financial assets at FVTPL - current Financial assets at FVTPL - current Financial assets at FVTPL - current Financial assets at FVTPL - current Financial assets at FVTPL - current Financial assets at FVTPL - current Financial assets at FVTPL - non-current Financial assets at FVTPL - non-current Financial assets at FVTPL - non-current Financial assets at FVTPL - current Financial assets at FVTPL - current Financial assets at FVTPL - current Financial assets at FVTPL - current Financial assets at FVTPL - current Financial assets at FVTPL - current Financial assets at FVTPL - current Financial assets at FVTPL - current Financial assets at FVTPL - current Financial assets at FVTOCI - non-current Financial assets at FVTOCI - non-current Financial assets at FVTOCI - non-current Financial assets at FVTPL - non-current	3,500 - - - 962 1,247 3,000 2,100 1,564 500 50 500 200 9,200 5,251 - - - 4,684 8,702 23,108 3,933 6,658 9,765 5,877 6,869 6,318 1,000 2,000 453 1,413	$ 36,676 111,623 36,572 63,080 10,062 89,486 21,139 54,250 3,000 32,500 8,450 26,350 13,340 40,314 22,871 - 40,769 88,984 77,149 110,322 280,299 60,097 90,532 140,136 80,384 100,053 100,014 17,953 - - -	10 2 7 8 - 4 6 4 4 - - - - - - 3 16 3 - - - - - - - - - 10 8 1 -	$ 36,676 111,623 36,572 63,080 10,062 89,486 21,139 54,250 3,000 32,500 8,450 26,350 13,340 40,314 22,871 - 40,769 88,984 77,149 110,322 280,299 60,097 90,532 140,136 80,384 100,053 100,014 17,953 - - -	Note 1 Note 1 Note 1 Note 1 Note 1 Note 4 Note 1 Note 1 Note 1 Note 2 Note 2 Note 2 Note 2 Note 3 Note 3 Note 1 Note 1 Note 1 Note 3 Note 3 Note 3 Note 3 Note 3 Note 3 Note 3 Note 3 Note 3 Note 1 Note 1 Note 1 Note 1

(Continued)

Holding Company Name	Type and Name of Marketable Security	Relationship with the Holding Company	Financial Statement Account		December 31, 2021	December 31, 2021		Note
				Shares or Units (In Thousands)	Carrying Amount	Percentage of Ownership (%)	Market Value or Net Asset Value
Giant Rock Inc. Sunext Technology Co., Ltd. Jslilicon Technology Co., Ltd. (Ru Dong)	Xiamen Xm-plus Technology Ltd. Evergeen Steel Co., Ltd. GF Live Treasury Currency B GF Every Day The Red Haired Type Money Market Fund B GF Purse Money Market Fund A	- - - - -	Financial assets at FVTPL - non-current Financial assets at FVTPL - current Financial assets at FVTPL - current Financial assets at FVTPL - current Financial assets at FVTPL - current	- 750 580 580 599	$ 362,314 41,250 2,587 2,591 2,624	- - - - -	$ 362,314 41,250 2,587 2,591 2,624	Note 1 Note 2 Note 3 Note 3 Note 3

Note 1: The market value was based on the carrying amount as of December 31 2021. Note 2: The market value was based on the closing price as of December 31, 2021. Note 3: The market value was based on the net asset value of the fund as of December 31, 2021. Note 4: The market value was based on the average quoted price as of December 31, 2021.

(Concluded)

TABLE 4

SUNPLUS TECHNOLOGY COMPANY LIMITED AND SUBSIDIARIES

INTERCOMPANY RELATIONSHIPS AND SIGNIFICANT INTERCOMPANY TRANSACTIONS FOR THE YEAR ENDED DECEMBER 31, 2021 (In Thousands of New Taiwan Dollars, Unless Stated Otherwise)

Company Name	Counterparty	Flow of Transactions (Note 5)	Intercompany Transactions	Intercompany Transactions	Intercompany Transactions
			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 Non-operatingincome	$ 7,014 1,190 36 39	Note 1 Note 1 Note 3 Note 2	0.09% 0.01% - -
	Sunext Technology Co., Ltd.	1	Sales Non-operating income Notes and accounts receivable Other receivable	132 2,630 33 164	Note 1 Note 2 Note 1 Note3	- 0.03% - -
	Sunplus Innovation Technology Inc.	1	Sales Non-operating income Notes and accounts receivable Other receivables	405 3,508 95 461	Note 1 Note 2 Note 1 Note 3	0.01% 0.04% - -
	Jumplux Technology Co., Ltd.	1	Sales Non-operating income Notes and accounts receivable Other receivables	4,491 13,358 1,835 1,839	Note 1 Notes 2 and 4 Note 1 Note 3	0.06% 0.17% 0.01% 0.01%
	Genki Tek Co.	1	Other receivables Non-operatingincome	210 1,219	Note 3 Note 2	- 0.02%
	Chongqing CQPlus1 Technology Co., Ltd.	1	Cost of goods sold Other payables Otherprepayments	38,973 1,484 38,613	Note 2 Note 1 Note3	0.49% 0.01% 0.24%
	Sunplus Prof-tek (Shenzhen) Co., Ltd.	1	Other payables Research and development expenses	6,972 6,972	Note 1 Note 2	0.04% 0.09%
	Sun Media Technology Co., Ltd.	1	Other payables Research and development expenses	6,202 6,202	Note 1 Note 2	0.04% 0.08%
Sunplus Innovation Technology Inc.	Sun Media Technology Co., Ltd.	2	Other payables Marketingexpenses	1,318 5,023	Note 3 Note 2	0.01% 0.06%
	Worldplus Technology (Shenzhen)	2	Other payables Marketingexpenses	6,322 27,775	Note 3 Note 2	0.04% 0.35%
Generalplus Technology Inc.	Generalplus Technology (H.K.) Inc.	2	Marketing expenses Otherpayables	16,747 3,655	Note 2 Note 3	0.21% 0.02%
	Generalplus Technology (Shenzhen) Inc.	2	Sales Research and development expenses Notes and accounts receivable Otherpayables	20,470 57,090 2,988 20,796	Note 2 Note 2 Note 3 Note 3	0.26% 0.72% 0.02% 0.13%
	Sunplus Innovation Technology Inc.	2	Sales Notes and accounts receivable	1,413 581	Note 1 Note 1	0.02% -

(Continued)

Company Name	Counterparty	Flow of Transactions (Note 5)	Intercompany Transactions	Intercompany Transactions	Intercompany Transactions
			Financial Statement Account Item	Amount	Terms	Percentage of Consolidated Total Gross Sales or Total Assets
Sunplus Technology (Shanghai) Co., Ltd.	SunMedia Technology Co., Ltd.	2	Other receivables Interest revenue Research and development expenses	$ 131,189 1,109 73	Note 3 Note 1 Note 2	0.08% 0.01% -
	Jumplux TechnologyCo.,Ltd.	2	Sales	339	Note 1	-
Lin Shin Investment Co., Ltd.	Sun Media Technology Co., Ltd.	2	Other receivables Interest revenue	99,665 697	Note 3 Note 2	0.61% 0.01%
Sunplus Venture Capital Co., Ltd.	Sun Media Technology Co., Ltd.	2	Other receivables Interest revenue	29,083 606	Note 3 Note 2	0.18% 0.01%
Russell Holdings Limited	Sun Media Technology Co.,Ltd.	2	Other receivables	235,280	Note3	1.44%
Sunplus App Technology	Beijing Sunplus-EHue Tech Co., Ltd.	2	Management expenses Refundable deposits Otherpayables	381 33 189	Note 2 Note 2 Note 2	0.01% - -
Sunplus Prof-tek Technology (Shenzhen)	Worldplus Technology (Shenzhen) Sunplus APP Technology	2 2	Non-operating income Interest revenue	7,603 1,166	Note 2 Note 2	0.10% 0.01%
Sun Media Technology Co., Ltd.	Beijing Sunplus-EHue Tech Co., Ltd.	2	Research and development expense	6,477	Note 2	0.08%

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)

TABLE 5

SUNPLUS TECHNOLOGY COMPANY LIMITED AND SUBSIDIARIES

NAMES, LOCATIONS, AND RELATED INFORMATION OF INVESTEES ON WHICH THE COMPANY EXERCISES SIGNIFICANT INFLUENCES DECEMBER 31, 2021

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

Investor	Investee	Location	Main Businesses and Products	Investment Amount	Investment Amount	Balance as of December 31, 2021	Balance as of December 31, 2021	Balance as of December 31, 2021	Net Income (Loss) of the Investee	Investment Gain (Loss)	Note
				December 31, 2021	December 31, 2020	Shares (In Thousands)	Percentage of Ownership (%)	Carrying Amount
Sunplus Technology Company Limited Lin Shin Investment Co., Ltd. Sunplus Venture Capital Co., Ltd. Russell Holdings Limited Ventureplus Group Inc. Ventureplus Mauritius Inc. Generalplus Technology Inc. Generalplus International (Samoa) Inc. Generalplus (Mauritius) Inc.	Ventureplus Group Inc. Award Glory Ltd. Global View Co., Ltd. Lin Shin Investment Co., Ltd. Generalplus Technology Inc. Sunplus Venture Capital Co., Ltd. Sunplus Innovation Technology Inc. Russell Holdings Limited iCatch Technology, Inc. Sunext Technology Co., Ltd. Sunplus mMedia Inc. Sunplus Management Consulting Inc. Sunplus Technology (H.K.) Co., Ltd. Magic Sky Limited Sunplus mMobile Inc. Wei-Young Investment Inc. Jumplux Technology Co., Ltd. AkiraNET Co., Ltd. Generalplus Technology Inc. Sunplus Innovation Technology Inc. iCatch Technology, Inc. Sunplus mMedia Inc. GlintMed Innovation Co., Ltd. Jumplux Technology Co., Ltd. Sunplus Innovation Technology Inc. iCatch Technology, Inc. Sunplus mMedia Inc. Genki Tek Co. GlintMed Innovation Co., Ltd. Autosys Co., Ltd. Ventureplus Mauritius Inc. Ventureplus Cayman Inc. Generalplus International (Samoa) Inc. Generalplus (Mauritius) Inc. Generalplus Technology (Hong Kong) Co., Ltd.	Belize Belize Hsinchu, Taiwan Hsinchu, Taiwan Hsinchu, Taiwan Hsinchu, Taiwan Hsinchu, Taiwan Cayman Islands, British West Indies Hsinchu, Taiwan Hsinchu, Taiwan Hsinchu, Taiwan Hsinchu, Taiwan Kowloon Bay, Hong Kong Samoa Hsinchu, Taiwan Hsinchu, Taiwan Hsinchu, Taiwan Taipei, Taiwan Hsinchu, Taiwan Hsinchu, Taiwan Hsinchu, Taiwan Hsinchu, Taiwan Hsinchu, Taiwan Hsinchu, Taiwan Hsinchu, Taiwan Hsinchu, Taiwan Hsinchu, Taiwan Taipei, Taiwan Hsinchu, Taiwan Cayman Islands, British West Indies Mauritius Cayman Islands, British West Indies Samoa Mauritius Hong Kong	Investment Investment Consumer electronics, components and rental of buildings Investment Design of ICs Investment Design of ICs Investment Design of ICs Design of ICs Design of ICs Management International trade Investment Design of ICs Investment Design of ICs Information software service Design of ICs Design of ICs Design of ICs Design of ICs Investment management consultant Design of ICs Design of ICs Design of ICs Design of ICs Software development Investment management consultant Investment Investment Investment Investment Investment Sales	$ 2,229,704 ( US$ 74,605 RMB$ 37,900 ) 269,167 ( US$ 7,072 RMB$ 16,900 ) 315,658 699,988 281,001 829,982 374,161 835,521 ( US$ 30,185 ) 127,345 983,237 407,565 5,000 39,305 ( HK$ 11,075 ) 286,211 ( US$ 10,340 ) 2,596,792 70,157 132,000 174,000 86,256 15,701 9,645 19,408 1,250 101,000 60,588 33,439 44,878 20,000 1,250 69,200 ( US$ 2,500 ) 2,229,704 ( US$ 74,605 RMB$ 37,900 ) 2,229,704 ( US$ 74,605 RMB$ 37,900 ) 528,411 ( US$ 19,090 ) 528,411 ( US$ 19,090 ) 10,795 ( US$ 390 )	$ 2,229,704 ( US$ 74,605 RMB$ 37,900 ) 217,421 ( US$ 5,642 RMB$ 14,100 ) 315,658 699,988 281,001 829,982 382,894 695,045 ( US$ 25,110 ) 207,345 983,237 407,565 5,000 39,905 ( HK$ 11,075 ) 283,443 ( US$ 10,340 ) 2,596,792 70,157 132,000 - 86,256 15,701 9,645 19,408 1,250 101,000 57,388 33,439 44,878 20,000 1,250 69,200 ( US$ 2,500 ) 2,229,704 ( US$ 74,605 RMB$ 37,900 ) 2,229,704 ( US$ 74,605 RMB$ 37,900 ) 528,411 ( US$ 19,090 ) 528,411 ( US$ 19,090 ) 10,795 ( US$ 390 )	- 9,567 8,229 70,000 37,324 83,000 29,266 30,185 12,735 58,778 22,441 500 11,075 - 16,240 5,400 13,200 17,400 14,892 1,075 965 650 125 10,100 2,924 3,332 1,909 2,000 125 5,000 - - 19,090 19,090 -	100 100 13 100 34 100 51 100 15 93 90 100 100 100 100 100 55 35 14 2 1 3 13 42 5 4 8 63 13 16 100 100 100 100 100	$ 1,594,626 465,117 342,742 1,057,566 848,020 1,068,483 1,286,617 698,927 251,001 254,472 23,259 3,383 25 668 29,226 102,854 (18,737 ) 195,034 339,625 45,021 20,749 5,338 807 (14,335 ) 129,521 71,673 425 6,389 807 67,084 1,606,308 1,606,288 507,747 513,353 10,511	$ 131,327 171,513 124,020 288,886 658,713 68,681 635,438 36,469 137,496 46,189 (76 ) (195 ) (4 ) (4,494 ) (180 ) 48,312 (16,992 ) (37,608 ) 658,713 635,438 137,496 (76 ) (2,055 ) (16,992 ) 635,438 137,496 (76 ) (13,807 ) (2,055) (16,873 ) 131,326 131,327 18,043 18,043 4,764	$ 119,643 171,513 16,200 287,015 225,942 68,681 353,104 36,469 26,556 42,749 (68 ) (195 ) (4 ) (4,494 ) (180 ) 48,312 (9,346 ) (13,009 ) 90,150 12,784 1,825 (2 ) (257 ) (7,150 ) 34,629 6,307 (6 ) (8,629 ) (257 ) (2,742 ) 131,326 131,327 18,043 18,043 4,764	Subsidiary Subsidiary Investee Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary (Note 2) Investee Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary (Note 2) Subsidiary Subsidiary Subsidiary Investee Subsidiary Subsidiary Investee Subsidiary Investee Subsidiary Subsidiary Investee Subsidiary Subsidiary Investee Investee Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary

(Continued)

Investor	Investee	Location	Main Businesses and Products	Investment Amount	Investment Amount	Balance as of December 31, 2021	Balance as of December 31, 2021	Balance as of December 31, 2021	Net Income (Loss) of the Investee	Investment Gain (Loss)	Note
				December 31, 2021	December 31, 2020	Shares (In Thousands)	Percentage of Ownership (%)	Carrying Amount
Award Glory Ltd. Sunny Fancy Ltd.	Sunny Fancy Ltd. Giant Kingdom Ltd. Giant Rock Inc. Worldplus Holdings L.L.C. Giant Best Ltd.	Seychelles Seychelles Anguilla America Seychelles	Investment Investment Investment Investment Investment	$ 269,167 ( US$ 7,072 RMB$ 16,900 ) 21,369 ( US$ 772 ) 148,150 ( US$ 2,700 RMB$ 16,900 ) 99,648 ( US$ 3,600 ) (Note 3)	$ 217,421 ( US$ 5,642 RMB$ 14,100 ) 21,369 ( US$ 772 ) 96,404 ( US$ 1,270 RMB$ 14,100 ) 99,648 ( US$ 3,600 ) (Note 3)	9,567 772 3,335 - (Note 3)	100 100 100 - (Note 3)	$ 465,118 266 365,673 99,179 (Note 3)	$ 171,513 (35 ) 176,540 (3,659 ) (Note 3)	$ 171,513 (35 ) 176,540 (4,992 ) (Note 3)	Subsidiary (Note 2) Subsidiary Subsidiary (Note 2) Subsidiary Subsidiary

Note 1: The initial exchange rate was based on the exchange rate as of December 31, 2021.

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 2021, but the actual remittance has not been completed yet.

(Concluded)

TABLE 6

SUNPLUS TECHNOLOGY COMPANY LIMITED AND SUBSIDIARIES

INFORMATION ON INVESTMENTS IN MAINLAND CHINA FOR THE YEAR ENDED DECEMBER 31, 2021 (In Thousands of New Taiwan Dollars, Unless Stated Otherwise)

Investee Company Name	Main Businesses and Products	Main Businesses and Products	Total Amount of Paid-in Capital	Investment Type	Accumulated Outflow of Investment from Taiwan as of January 1, 2021	Investment Flows	Investment Flows	Accumulated Outflow of Investment from Taiwan as of December 31, 2021	% Ownership of Direct or Indirect Investment	Net Income (Loss) of the investee	Investment Loss (Note 2)	Carrying Value as of December 31, 2021	Accumulated Inward Remittance of Earnings as of December 31, 2021
						Outflow	Inflow
Sunplus Technology (Shanghai) Co., Ltd. Sunplus Prof-tek (Shenzhen) Co., Ltd. Sun Media Technology Co., Ltd. Sunplus App Technology Co., Ltd. Beijing Sunplus-EHue Tech Co., Ltd. JSilicon Technology Co., Ltd. (Ru Domg) Worldplus Technology Co., Ltd. (Shenzhen) Chongqing CQPlus1 Technology Co., Ltd.	Development of computer software, system integration services and building rental Development of computer software, system integration services and building rental Development of computer software, system integration services and building rental Manufacturing and sale of computer software; system integration services and information management and education Development of computer software, system integration services and building rental Development of computer software, system integration services Development of computer software, system integration services and building rental Development of computer software, system integration services		$ 476,096 (US$ 17,200) 892,680 (US$ 32,250) 553,600 (US$ 20,000) 169,416 ( RMB$ 39,000) 117,288 (RMB$ 27,000) 86,880 (RMB$ 20,000) 99,648 (RMB$ 19,039) 130,320 (RMB$ 30,000)	Note 1 Note 1 Note 1 Note 1 Note 1 Note 3 Note 5 Note 4	$ 488,690 (US$ 17,655) 892,680 (US$ 32,250) 553,600 (US$ 20,000) 112,657 (US$ 586 RMB$ 22,200) 117,288 ( RMB$ 27,000) - 82,705 (US$ 3,600) -	$ - - - 51,529 ( RMB$ 11,800) - - - -	$ - - - - - - - -	$ 488,690 (US$ 17,655) 892,680 (US$ 32,250) 553,600 (US$ 20,000) 164,186 (US$ 586 RMB$ 34,000) 117,288 ( RMB$ 27,000) - 99,648 (US$ 3,600) -	100% 100% 100% 97% 100% 100% 100% 100%	$ 145,202 (13,670) 26,627 (51,821) (557) 406 (3,695) (18,172)	$ 145,202 (13,670) 26,627 (49,968) (557) 406 (4,992) (18,172)	$ 598,698 731,403 219,820 3,655 50,883 27,524 99,179 62,396	$ - - - - - - - -

Accumulated Investment in Mainland China as of December 31, 2021		Investment Amounts Authorized by the Investment Commission, MOEA						Limit on Investment
$ 2,484,095 ( US$ 79,872 RMB 62,900 )		$ 2,485,167 ( US$ 80,052 RMB 62,000 )						$ 6,071,003
Sunplus Venture Capital Co., Ltd.
Accumulated Investment in Mainland China as of December 31, 2021		Investment Amounts Authorized by Investment Commission, MOEA						Limit on Investment
$ 34,867 ( US$ 1,260 )		$ 34,867 ( US$ 1,260 )						$ 641,090

(Continued)

(Concluded)

Generalplus Technology (Nature of Relationship: 1)

Investee Company Name	Main Businesses and Products	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, 2021	Investment Flows	Investment Flows	Investment Flows	Accumulated Outflow of Investment from Taiwan as of December 31, 2021	% Ownership of Direct or Indirect Investment	Net Loss of the investee	Investment Loss (Note 2)	Carrying Value as of December 31, 2021	Accumulated Inward Remittance of Earnings as of December 31, 2021
						Outflow		Inflow
Generalplus Shenzhen	Design of ICs, after sales service and marketing research		$ 517,616 (US$ 18,700)	Note 1	$ 517,616 (US$ 18,700)	$	-	$ -	$ 517,616 (US$ 18,700)	100%	$ 13,279	$ 13,279	$ 502,822	$ -

Accumulated Investment in Mainland China as of December 31, 2021		Investment Amount Authorized by the Investment Commission, MOEA							Limit on Investment
$ 517,616 ( US$ 18,700 )		$ 517,616 ( US$ 18,700 )							$ 1,500,760

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: Sunplus Technology (Shanghai) Co., Ltd.’s indirect investment in a company located in mainland China.

Note 4: Sunplus Technology (Shanghai) and Sunplus Prof-tek (Shenzhen) Technology Co., Ltd. reinvested in a company located in mainland China.

Note 5: It is a company located in mainland China that acquired the investment of the third regional investment company on September 2, 2019.

Note 6: The investment amount approved by the Investment Review Committee of the Ministry of Economic Affairs includes the investment business of Sanneng Group Holding Company in mainland China, Sanneng Appliances (Wuxi) Co., Ltd.

Note 7: The original foreign currency was derived from the exchange rate on December 31, 2020.

TABLE 7

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, 2021

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

Investee Company	Transaction Type	Research and Development Expense	Research and Development Expense	Price	Transaction Details	Transaction Details	Notes/Trade Receivables (Payables)	Notes/Trade Receivables (Payables)	Unrealized (Gain) Loss	Note
		Amount	%		Payment Terms	Comparison with Market Transactions	Ending Balance	%
Generalplus Technology (Shenzhen) Corp.	Development and processing services Sales	$ 57,090 20,470	9.97% 0.59%	Based on contract Based on contract	Based on contract Based on contract	Not comparable with market transactions Not comparable with market transactions	$ 20,796 2,988	84.80% 83.72%	$ - (5,463)	NA NA

TABLE 8

SUNPLUS TECHNOLOGY COMPANY LIMITED

INFORMATION OF MAJOR SHAREHOLDERS FOR THE YEAR ENDED DECEMBER 31, 2021

Name of Major Shareholder	Shares	Shares
	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 trustor 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.

AI assistant

SUNPLUS — Annual Report 2021

52056_rns_2021-11-12_dd24c366-edce-4b59-a575-3baf911dd6a8.pdf

Sunplus Technology Company Limited and Subsidiaries

DECLARATION OF CONSOLIDATION OF FINANCIAL STATEMENTS OF AFFILIATES

INDEPENDENT AUDITORS’ REPORT

Opinion

Basis for Opinion

Key Audit Matters

Occurrence of Revenue from Specific Customers

Other Matter

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

Auditors’ Responsibilities for the Audit of the Consolidated Financial Statements

Notice to Readers

SUNPLUS TECHNOLOGY COMPANY LIMITED AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS DECEMBER 31, 2021 AND 2020 (In Thousands of New Taiwan Dollars)

SUNPLUS TECHNOLOGY COMPANY LIMITED AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME FOR THE YEARS ENDED DECEMBER 31, 2021 AND 2020 (In Thousands of New Taiwan Dollars, Except Earnings Per Share)

SUNPLUS TECHNOLOGY COMPANY LIMITED AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME FOR THE YEARS ENDED DECEMBER 31, 2021 AND 2020 (In Thousands of New Taiwan Dollars, Except Earnings Per Share)

SUNPLUS TECHNOLOGY COMPANY LIMITED AND SUBSIDIARIES

SUNPLUS TECHNOLOGY COMPANY LIMITED AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE YEARS ENDED DECEMBER 31, 2021 AND 2020 (In Thousands of New Taiwan Dollars)

SUNPLUS TECHNOLOGY COMPANY LIMITED AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE YEARS ENDED DECEMBER 31, 2021 AND 2020 (In Thousands of New Taiwan Dollars)

1. GENERAL INFORMATION

2. APPROVAL OF FINANCIAL STATEMENTS

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

4) Amendments to IAS 8 “Definition of Accounting Estimates”

4. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

d. Basis of consolidation

e. Foreign currencies

f. Inventories

g. Investments in associates

m. Non-current assets held for sale

n. Financial instruments

a) Measurement category

i. Financial assets at FVTPL

2) Financial liabilities

o. Provisions

p. Revenue recognition

Revenue from the sale of goods

Other

q. Lease

1) The Group as lessor

2) The Group as lessee

r. Government grants

2) Retirement benefits

1) Restricted shares for employees granted to employees

u. Taxation

1) Current tax

3) Current and deferred tax for the period

5. CRITICAL ACCOUNTING JUDGMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY

Key Sources of Estimation Uncertainty

6. CASH AND CASH EQUIVALENTS

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

8. FINANCIAL ASSETS AT FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME

9. NOTES AND TRADE RECEIVABLE, NET

Trade receivable

December 31, 2021

10. INVENTORIES

11. NON-CURRENT ASSETS HELD FOR SALE

12. SUBSIDIARIES

13. INVESTMENTS ACCOUNTED FOR USING THE EQUITY METHOD

14. PROPERTY, PLANT AND EQUIPMENT

15. LEASE ARRANGEMENTS

a. Right-of-use assets

b. Lease liabilities

c. Material lease-in activities and terms

d. Other lease information

16. INVESTMENT PROPERTIES

17. INTANGIBLE ASSETS

An analysis of depreciation by function

18. OTHER ASSETS

19. BORROWINGS

- Long term borrowings

20. TRADE PAYABLES

21. OTHER LIABILITIES

22. RETIREMENT BENEFIT PLANS

a. Defined contribution plans

b. Defined benefit plans

23. EQUITY

SUNPLUS Annual Report 2021