SUNPLUS - Audit Report / Information 2021

Sunplus Technology Company Limited

Financial Statements for the Years Ended December 31, 2021 and 2020 and Independent Auditors’ Report

INDEPENDENT AUDITORS’ REPORT

The Board of Directors and Shareholders Sunplus Technology Company Limited

Opinion

We have audited the accompanying financial statements of Sunplus Technology Company Limited (the “Company”), which comprise the balance sheets as of December 31, 2021 and 2020, and the statements of comprehensive income, changes in equity and cash flows for the years then ended, and the notes to the financial statements, including a summary of significant accounting policies (collectively referred to as the “financial statements”).

In our opinion, the accompanying financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2021 and 2020, and its financial performance and its cash flows for the years then ended in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers.

Basis for Opinion

We conducted our audits in accordance with the Regulations Governing Auditing and Attestation of Financial Statements by Certified Public Accountants and auditing standards generally accepted in the Republic of China. Our responsibilities under those standards are further described in the Auditors’ Responsibilities for the Audit of the Financial Statements section of our report. We are independent of the Company in accordance with The Norm of Professional Ethics for Certified Public Accountant of the Republic of China, 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 financial statements for the year ended December 31, 2021. These matters were addressed in the context of our audit of the 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 matter identified in the Company’s financial statements for the year ended December 31, 2021 is as follows:

Occurrence of Revenue from Specific Customers

Integrated circuit chip sales accounted for 95% of the Company’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 21 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.

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

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

In preparing the financial statements, management is responsible for assessing the Company’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 Company or to cease operations, or has no realistic alternative but to do so.

Those charged with governance (including members of the audit committee) are responsible for overseeing the Company’s financial reporting process.

Auditors’ Responsibilities for the Audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether the 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 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 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 Company’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 Company’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 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 Company to cease to continue as a going concern.

Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the 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 the entities or business activities within the Company to express an opinion on the financial statements. We are responsible for the direction, supervision and performance of the 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 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 financial statements are intended only to present the 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 financial statements are those generally applied in the Republic of China.

For the convenience of readers, the independent auditors’ report and the accompanying 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 the financial statements shall prevail.

SUNPLUS TECHNOLOGY COMPANY LIMITED

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

ASSETS CURRENT ASSETS Cash and cash equivalents (Notes 4 and 6) Financial assets at fair value through profit or loss (FVTPL) - current (Notes 4 and 7) Accounts receivable, net (Notes 4, 5, 8, 21 and 29) Other receivables (Notes 4, 23 and 29) Inventories (Notes 4 and 9) Non-current assets held for sale (Notes 4 and 10) Other financial assets - current (Notes 15 and 25) Other current assets (Note 15) Total current assets NON-CURRENT ASSETS Financial assets at FVTPL - non-current (Notes 4 and 7) Investments accounted for using the equity method (Notes 4, 10 and 11) Property, plant and equipment (Notes 4, 12, 29 and 30) Right-of-use assets (Notes 4 and 13) Intangible assets (Notes 4 and 14) Deferred tax assets (Notes 4 and 23) Net defined benefit assets - non-current (Notes 4 and 19) Other financial assets- non-current (Notes 15 and 30) Other non-current assets (Note 15) Total non-current assets TOTAL LIABILITIES AND EQUITY CURRENT LIABILITIES Short-term borrowings (Note 16) Contract liabilities - current (Note 21) Accounts payable (Note 17) Lease liabilities - current (Notes 3, 4 and 13) Current portion of long-term borrowings (Note 16) Deferred revenue - current (Note 18) Other current liabilities (Notes 11, 18 and 29) Total current liabilities NON-CURRENT LIABILITIES Long-term borrowings (Note 16) Lease liabilities - non-current (Notes 3, 4 and 13) Guarantee deposits Other liabilities (Note 18) Total non-current liabilities Total liabilities EQUITY ATTRIBUTABLE TO OWNERS OF THE COMPANY Share capital (Notes 4 and 20) 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 TOTAL		2021 Amount % $ 570,964 5 153,633 1 268,597 2 32,111 - 534,231 5 108,504 1 25,940 - 87,962 1 1,781,942 15 515,261 5 8,222,020 70 726,737 6 165,563 2 244,238 2 2,485 - 4,553 - 8,350 - 7,973 - 9,897,180 85 $ 11,679,122 100 $ - - 11,094 - 294,804 3 4,074 - 46,000 - - - 590,373 5 946,345 8 384,000 3 166,801 1 53,649 1 9,990 - 614,440 5 1,560,785 13 5,919,949 51 1,223,544 11 1,745,279 15 261,078 2 1,249,574 11 3,255,931 28 21,517 - (239,203) (2) (63,401) (1) 10,118,337 87 $ 11,679,122 100		2020
				Amount % $ 774,025 8 203,922 2 172,035 2 13,537 - 300,730 3 - - 44,201 1 46,827 1 1,555,277 17 325,870 3 6,305,683 68 700,554 7 173,774 2 243,470 3 2,485 - 4,440 - 6,100 - 7,946 - 7,770,322 83 $ 9,325,599 100 $ 28,480 - 5,589 - 104,991 1 4,105 - 25,000 - 44,201 1 259,397 3 471,763 5 205,000 2 173,319 2 55,282 1 6,472 - 440,073 5 911,836 10 5,919,949 64 500,820 5 1,712,390 18 276,189 3 328,894 4 2,317,473 25 - - (261,078) (3) (63,401) (1) 8,413,763 90 $ 9,325,599 100

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

SUNPLUS TECHNOLOGY COMPANY LIMITED

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, 21 and 29) OPERATING COSTS (Notes 9, 22 and 29) GROSS PROFIT OPERATING EXPENSES (Notes 22 and 29) Selling and marketing General and administrative Research and development Total operating expenses LOSS FROM OPERATIONS NON-OPERATING INCOME AND EXPENSES (Notes 4, 11, 22, 25 and 29) 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 23) NET PROFIT FOR THE YEAR OTHER COMPREHENSIVE INCOME (LOSS) Items that will not be reclassified subsequently to profit or loss (Notes 4 and 19): Remeasurement of defined benefit obligation Unrealized gain (loss) on investments in equity instruments at FVTOCI Share of other comprehensive income of subsidiaries and associates accounted for using equity method		2021 Amount % $ 1,520,142 100 867,208 57 652,934 43 234,095 15 202,318 13 829,631 55 1,266,044 83 (613,110) (40) 955 - 183,753 12 252,070 17 (9,338) (1) 1,368,888 90 1,796,328 118 1,183,218 78 433 - 1,182,785 78 430 - - - 118,678 8		2020
				Amount % $ 1,168,660 100 686,069 59 482,591 41 53,428 4 173,458 15 608,122 52 835,008 71 (352,417) (30) 691 - 60,147 5 3,356 - (6,352) - 618,480 53 676,322 58 323,905 28 502 - 323,403 28 3,582 - 42 - 9,129 1 (Continued)

SUNPLUS TECHNOLOGY COMPANY LIMITED

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 20): Exchange differences arising on translation of foreign operations Share of other comprehensive income (loss) of subsidiaries and associates accounted for using the equity method Other comprehensive income for the year, net of income tax TOTAL COMPREHENSIVE INCOME FOR THE YEAR EARNINGS PER SHARE (Note 24) Basic earnings per share Diluted earnings per share		2021 Amount % $ (18,998) (1) (12,491) (1) 87,619 6 $ 1,270,404 84 $ 2.01 $ 2.01		2020
				Amount % $ (29,597) (3) 20,354 2 3,510 - $ 326,913 28 $ 0.55 $ 0.55

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

(Concluded)

SUNPLUS TECHNOLOGY COMPANY LIMITED

STATEMENTS OF CHANGES IN EQUITY FOR THE YEARS ENDED DECEMBER 31, 2021 AND 2020 (In Thousands of New Taiwan Dollars)

Share Capital Issued		Retained Earnings	Other Equity Exchange Differences on Translating Unrealized Losses the Financial from Investments Statements of in Equity Instruments Foreign Operations at FVTOCI $ (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
			Exchange Differences on Translating the Financial Statements of i Foreign Operations $ (218,780 ) - - - - - - - (9,243) (9,243) - - (228,023 ) - - - - - - - (31,489) (31,489) - - - $ (259,512)
	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 financial statements.

SUNPLUS TECHNOLOGY COMPANY LIMITED

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 Net (gain) loss on the fair value change of financial assets at FVTPL Financial costs Interest income Dividend income Share of profit of associates Unrealized (realized) gain on the transactions with subsidiaries Net loss (gain) on foreign currency exchange Changes in operating assets and liabilities: Increase in trade receivables Increase in other receivables Increase in inventories Increase in other current assets Increase in net defined benefit assets Increase in contract liabilities Increase in trade payables Increase in other current liabilities Increase in net defined benefit liability Cash used in operations Interest received Dividends received Interest paid Income tax paid Net cash generated from operating activities CASH FLOWS FROM INVESTING ACTIVITIES Proceeds from financial assets at FVTOCI Purchase of financial assets at FVTPL Proceeds from the sale of financial assets at FVTPL Acquisition of associates Capital reduction of investee using the equity method Acquisition of property, plant and equipment Payments for intangible assets Decrease in other financial assets Increase in refundable deposits Net cash generated from (used in) investing activities	2021 $ 1,183,218 85,476 90,302 (221,022) 9,338 (955) (67,142) (1,368,888) 1,096 1,492 (97,519) (18,754) (233,501) (51,531) (113) 5,505 190,674 257,288 430 (234,606) 1,092 517,746 (9,214) (433) 274,585 - (40,000) 118,577 (372,116) - (54,273) (63,398) (28,190) (27) (439,427)	2020 $ 323,905 88,621 51,838 17,474 6,352 (691) (6,243) (618,480) 2,410 (1,392) (31,540) (6,199) (26,966) (5,473) (3,277) 2,216 42,668 56,699 3,582 (104,496) 583 209,690 (6,279) (502) 98,996 2,628 (30,000) 412,446 (18,292) 170,000 (90,407) (214,835) - (10) 231,530 (Continued)

SUNPLUS TECHNOLOGY COMPANY LIMITED

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

CASH FLOWS FROM FINANCING ACTIVITIES Repayments of short-term borrowings Proceeds from long-term borrowings Repayments of long-term borrowings Proceeds from guarantee deposits received Refund of guarantee deposits received Repayment of the principal portion of lease liabilities Dividends paid to owners of the Company Partial disposal of interests in subsidiaries without a loss of control Net cash generated from (used in) financing activities EFFECTS OF EXCHANGE RATE CHANGES ON THE BALANCE OF CASH HELD IN FOREIGN CURRENCIES NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE YEAR CASH AND CASH EQUIVALENTS AT THE END OF THE YEAR	2021 $ (28,480) 400,000 (200,000) 590 (783) (4,020) (311,093) 108,953 (34,833) (3,386) (203,061) 774,025 $ 570,964	2020 $ (25,584) 230,000 - 1,685 (2,349) (4,007) (177,598) 101,014 123,161 (746) 452,941 321,084 $ 774,025

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

(Concluded)

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

SUNPLUS TECHNOLOGY COMPANY LIMITED

1. GENERAL INFORMATION

Sunplus Technology Company Limited (the “Company”) was established in August 1990. It researches, develops, designs, tests and sells high quality, high value-added consumer integrated circuits (ICs). Its products are based on core technologies in such areas as multimedia audio/video, single-chip microcontrollers and digital signal processors. These technologies are used to develop hundreds of products including various ICs: Liquid crystal display, microcontroller, multimedia, voice/music, and application-specific devices. The Company’s 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 20).

The parent financial statements are presented in the Company’s functional currency, the New Taiwan dollar.

2. APPROVAL OF FINANCIAL STATEMENTS

The parent company only financial statements were approved by the 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

New IFRSs “Annual Improvements to IFRS Standards 2018-2020” Amendments to IFRS 3 “Reference to the Conceptual Framework” Amendments to IAS 16 “Property, Plant and Equipment - Proceeds before Intended Use” Amendments to IAS 37 “Onerous Contracts - Cost of Fulfilling a Contract”	Effective Date Announced by IASB (Note 1)
	January 1, 2022 (Note 1) January 1, 2022 (Note 2) January 1, 2022 (Note 3) January 1, 2022 (Note 4)

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 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 Company’s financial position and financial performance.

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

Effective Date New IFRSs Announced by IASB (Note 1) Amendments to IFRS 10 and IAS 28 “Sale or Contribution of Assets To be determined by IASB between An Investor and Its Associate or Joint Venture” IFRS 17 “Insurance Contracts” January 1, 2023 Amendments to IFRS 17 January 1, 2023 Amendments to IFRS 17 “Initial Application of IFRS 9 and IFRS 17 - January 1, 2023 Comparative Information” Amendments to IAS 1 “Classification of Liabilities as Current or January 1, 2023 Non-current” Amendments to IAS 1 “Disclosure of Accounting Policies” January 1, 2023 (Note 2) Amendments to IAS 8 “Definition of Accounting Estimates” January 1, 2023 (Note 3) Amendments to IAS 12 “Deferred Tax related to Assets and Liabilities January 1, 2023 (Note 4) arising from a Single Transaction”

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 Company 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 Company 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 Company 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 Company’s interest as an unrelated investor in the associate or joint venture, i.e., the Company’s share of the gain or loss is eliminated. Also, when the Company 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 Company’s interest as an unrelated investor in the associate or joint venture, i.e., the Company’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 Company 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 Company will exercise that right. The amendments also clarify that, if the right to defer settlement is subject to compliance with specified conditions, the Company 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 Company’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 Company’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 Company 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 Company 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 Company 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 Company 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 Company is required to make significant judgements or assumptions in applying an accounting policy, and the Company 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 Company may be required to measure items at monetary amounts that cannot be observed directly and must instead be estimated. In such a case, the Company 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 financial statements were authorized for issue, the Company is continuously assessing the possible impact of the application of other standards and interpretations on the Company’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 parent company only financial statements have been prepared in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers.

b. Basis for Preparation

The 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, 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.

When preparing these parent company only financial statements, the Company used the equity method to account for its investments in subsidiaries and associates. In order for the amounts of the net profit for the year, other comprehensive income for the year and total equity in the parent company only financial statements to be the same with the amounts attributable to the owners of the Company in its financial statements, adjustments arising from the differences in accounting treatments between the parent company only basis and the basis were made to investments accounted for using the equity method, the share of profit or loss of subsidiaries and associates, the share of other comprehensive income of subsidiaries and associates and the related equity items, as appropriate, in these parent company only financial statements.

c. Classification of current and non-current assets and liabilities

Current assets include:

1) Assets held primarily for the purpose of trading;
2) Assets expected to be realized within twelve months after the reporting period; and
3) 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:

1) Liabilities held primarily for the purpose of trading;
2) Liabilities due to be settled within twelve months after the reporting period
3) Liabilities for which the Company does not have an unconditional right to defer settlement for at least twelve months after the reporting period.

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

d. Foreign currencies

In preparing the Company’s financial statements, transactions in currencies other than the Company’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 non-monetary items are included in profit or loss for the period except for exchange differences arising from the retranslation of non-monetary 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.

e. 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. Net realizable value is the estimated selling price of inventories less all estimated costs of completion and costs necessary to make the sale. Inventories are recorded at weighted-average cost on the balance sheet date.

f. Investments accounted for using the equity method
1) Investment in subsidiaries

The Company uses the equity method to account for investments in subsidiaries.

Subsidiaries are the entities controlled by the Company.

Under the equity method, the investment is initially recognized at cost and the carrying amount is increased or decreased to recognize the Company’s share of the profit or loss and other comprehensive income of the subsidiary after the date of acquisition. Besides, the Company also recognizes the Company’s share of the change in other equity of the subsidiary.

Changes in the Company’s ownership interest in a subsidiary that do not result in the Company losing control of the subsidiary are accounted for as equity transactions. The Company recognizes directly in equity any difference between the carrying amount of the investment and the fair value of the consideration paid or received.

When the Company’s share of loss of a subsidiary exceeds its interest in that subsidiary (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 Company’s net investment in the subsidiary), the Company continues recognizing its share of further loss, if any.

Any excess of the cost of acquisition over the Company’s share of the net fair value of the identifiable assets and liabilities of a subsidiary that constitutes a business 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 Company’s share of the net fair value of the identifiable assets and liabilities of a subsidiary that constitutes a business over the cost of acquisition is recognized immediately in profit or loss.

The Company assesses its investment for any impairment by comparing the carrying amount with the estimated recoverable amount as assessed based on the investee’s financial statements as a whole. Impairment loss is recognized when the carrying amount exceeds the recoverable amount. If the recoverable amount of the investment subsequently increases, the Company recognizes a reversal of the impairment loss; the adjusted post-reversal carrying amount should not exceed the carrying amount that would have been recognized (net of amortization or depreciation) had no impairment loss been recognized in prior years. An impairment loss recognized on goodwill cannot be reversed in a subsequent period.

When the Company loses control of a subsidiary, it recognizes the investment retained in the former subsidiary at its fair value at the date when control is lost. The difference between the fair value of the retained investment plus any consideration received and the carrying amount of the previous investment at the date when control is lost is recognized as a gain or loss in profit or loss. Besides this, the Company accounts for all amounts previously recognized in other comprehensive income in relation to that subsidiary on the same basis as would be required had the Company directly disposed of the related assets or liabilities.

Profit or loss resulting from downstream transactions is eliminated in full only in the parent company only financial statements. Profit and loss resulting from upstream transactions and transactions between subsidiaries is recognized only in the parent company only financial statements and only to the extent of interests in the subsidiaries that are not related to the Company.

2) Investments in associates

An associate is an entity over which the Company has significant influence and which is a subsidiary.

The Company 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 Company’s share of the profit or loss and other comprehensive income of the associate. The Company also recognizes the changes in the Company’s share of the equity of associates and joint ventures attributable to the Company.

Any excess of the cost of acquisition over the Company’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 Company’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 the associate at a percentage different from its existing ownership percentage, the resulting carrying amount of the investment differs from the amount of the Company’s proportionate interest in the associate. The Company records such a difference as an adjustment to investments with the corresponding amount charged or credited to capital surplus. If the Company’s ownership interest is reduced due to the additional subscription of the new shares of 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 if the investee had 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 by the equity method is insufficient, the shortage is debited to retained earnings.

When the Company’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 by the equity method and long-term interests that, in substance, form part of the Company’s net investment in the associate), the Company discontinues recognizing its share of further losses. Additional 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 the investment (including goodwill) is tested for impairment as a single asset by comparing its recoverable amount with its carrying amount. Any impairment loss recognized 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 Company 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 Company 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 Company transacts with its associate (profits and losses resulting from the transactions with the associate are recognized in the Company’s parent company only financial statements only to the extent of interests in the associate and the jointly controlled entity that are not related to the Company.

g. 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 effects of any changes in the estimates 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.

h. 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 life, residual value, and amortization method are reviewed at the end of each reporting period, with the effect of any changes in estimate accounted for on a prospective basis. The residual value of an intangible asset with a finite useful life shall be assumed to be zero unless the Company expects to dispose of the intangible asset before the end of its economic life.

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.

i. Impairment of property, plant and equipment, right-of-use asset and intangible assets

At the end of each reporting period, the Company reviews the carrying amounts of Property, plant and equipment 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 Company 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 assets maybe 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.

j. 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.

k. Financial instruments

Financial assets and financial liabilities are recognized when the Company 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 issue of financial assets and financial liabilities (other than financial assets and financial liabilities at fair value through profit or loss) 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 fair value through profit or loss are attributed to the original acquisition cost.

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 28: 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.

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

The Company always recognizes lifetime expected credit losses (ECLs) for trade receivables. For all other financial instruments, the Company 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 Company 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 Company 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 a debt instrument at FVTOCI, the difference between the asset’s carrying amount and the sum of the consideration received and receivable and the cumulative gain or loss that had been recognized in other comprehensive income is recognized in profit or loss. However, 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 the financial liabilities are measured at amortized cost using the effective interest method.

b) Derecognition of financial liabilities

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

l. Revenue recognition

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

Other income

Other income mainly comes from royalties.

m. Leases

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

1) The Company as lessor

All other leases are classified as operating leases.

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 Company as lessee

The Company 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. 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 balance sheet.

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 Company uses the lessee’s incremental borrowing rate.

Subsequently, lease liabilities are measured at amortized cost using the effective interest method, with interest expense recognized over the lease terms. The Company 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 balance sheets.

The Company 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 Company 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 Company recognizes the reduction in lease payment in profit or loss as a deduction of expenses of variable lease payments.

n. Government grants

Government grants are not recognized until there is reasonable assurance that the Company will comply with the conditions attached to them 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 Company 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 Company with no future related costs are recognized in profit or loss in the period in which they are received.

o. 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, or when the plan amendment or curtailment occurs. Remeasurement, comprising actuarial gains and losses, 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 Company’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.

p. 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 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, except where the Company 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 Company 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 application of the Company’s accounting policies, management is required to make judgments, estimates and assumptions on 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 Company considers the possible impact of the recent development of the COVID-19 in Taiwan and its economic environment implications when making its critical accounting estimates on cash flow projections, growth rate, discount rate, profitability, etc. 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 Company uses judgment in making these assumptions and in selecting the inputs to the impairment calculation, based on the Company’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		December 31	December 31
		2021 $ 377 310,587 260,000 $ 570,964	2020 $ 392 383,733 389,900 $ 774,025

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

Bank balance	December 31
	2021 2020 0.001%-0.35% 0.001%-0.41%

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

Financial assets at fair value through profit of loss (FVTPL)-current Financial assets classified as at FVTPL Non-derivative financial assets Mutual funds Listed shares Financial liabilities at FVTPL-non-current Financial assets classified as at FVTPL Non-derivative financial assets Unlisted shares Mutual funds		December 31	December 31
		2021 $ 87,633 66,000 $ 153,633 $ 515,261 - $ 515,261	2020 $ 134,832 69,090 $ 203,922 $ 311,021 14,849 $ 325,870

8. TRADE RECEIVABLE, NET

Trade receivables At amortized cost Gross carrying amount		December 31	December 31
		2021 $ 268,597	2020 $ 172,035

Trade receivables

The average credit period on sales of goods was 30 to 60 days without interest. The Company’s exposure to credit risk and external credit ratings are continuously monitored. In order to minimize credit risk, the management of the Company 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 Company 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 Company’s credit risk was significantly reduced.

The Company 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 outlook. As the Company’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 Company’s different customer base.

The Company 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 Company 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 Company’s current credit risk grading framework is shown in the following table:

December 31, 2021

Expected credit loss rate Gross carrying amount Loss allowance (Lifetime ECLs) Amortized cost December 31, 2020 Expected credit loss rate Gross carrying amount Loss allowance (Lifetime ECLs) Amortized cost The movements of the loss allowance of trade receivables were as follows: Balance at January 1 and December 31	Not Overdue - $ 268,597 - $ 268,597 Not Overdue - $ 172,035 - $ 172,035 2021 2020 $ - $ -

9. INVENTORIES

Finished goods Work in progress Raw materials		December 31	December 31
		2021 $ 123,892 195,671 214,668 $ 534,231	2020 $ 83,183 159,392 58,155 $ 300,730

The costs of inventories recognized as cost of goods sold for the years ended December 31, 2021 and 2020 were $867,208 thousand and $686,069 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) reversed Income from scrap sales	For the Year Ended December 31	For the Year Ended December 31	For the Year Ended December 31
		2021 $ 7,109 55 $ 7,164	2020 $ (3,319) 38 $ (3,281)

The reversals of previous write-downs for the year ended December 31, 2021 resulted from reduced inventories.

10. NON-CURRENT ASSETS HELD FOR SALE

	December 31,
	2021
Non-current assets held for sale	$ 108,504

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.

11. INVESTMENTS ACCOUNTED FOR USING THE EQUITY METHOD

Investments in subsidiaries Investments in associates		December 31	December 31
		2021 $ 7,433,243 788,777 $ 8,222,020	2020 $ 5,714,093 591,590 $ 6,305,683

a. Investments in subsidiaries

Listed companies Sunplus Innovation Technology Generalplus Technology Corp. Non-listed Company Ventureplus Group Inc. Sunplus Venture Capital Co., Ltd. Lin Shin Investment Co., Ltd. Russell Holdings Limited Award Glory Ltd. Sunext Technology Co., Ltd. Wei-Young Investment Inc. Sunplus mMobile Inc. Sunplus mMedia Inc. Sunplus Management Consulting Magic Sky Limited Sunplus Technology (H.K.) Investment impairment using equity method (accounted for current liability) Jumplux Technology Co., Ltd.		December 31	December 31
		2021 $ 1,286,616 848,020 1,594,626 1,068,483 1,057,567 698,927 465,117 254,472 102,854 29,226 23,259 3,383 668 25 $ 7,433,243 $ 18,737	2020 $ 746,919 713,447 1,460,438 870,199 771,853 552,847 268,500 211,723 59,391 29,406 23,327 3,578 2,435 30 $ 5,714,093 $ 10,042

Except for Sunplus Management Consulting, investments were accounted for using the equity method and the share of profit or loss and other comprehensive income of those investments were calculated based on financial statements which have been audited. Management believes there is no material impact on the equity method of accounting or the calculation of the share of profit or loss and other comprehensive income from the financial statements of Sunplus Management Consulting which have not been audited.

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.

Refer to Note 32 for the detail list of investments in subsidiaries.

The percentage subsidiaries’ ownerships and voting right held by the Company:

Listed companies Sunplus Innovation Technology Generalplus Technology Corp.	December 31
	2021 2020 51% 58% 34% 34% (Continued)

Non-listed Company Ventureplus Group Inc. Sunplus Venture Capital Co., Ltd. Lin Shin Investment Co., Ltd. Russell Holdings Limited Award Glory Ltd. Sunext Technology Co., Ltd. Wei-Young Investment Inc. Sunplus mMobile Inc. Sunplus mMedia Inc. Sunplus Management Consulting Magic Sky Limited Sunplus Technology (H.K.) Jumplux Technology	December 31
	2021 2020 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 93% 93% 100% 100% 100% 100% 90% 90% 100% 100% 100% 100% 100% 100% 55% 55% (Concluded)

b. Investments in associates

Associates Global View Co., Ltd. iCatch Technology Inc. AkiraNet Co., Ltd. Name of Associate Global View Co., Ltd. iCatch Technology Inc. AkiraNet Co., Ltd.		December 31
	2021 2020 $ 342,742 $ 346,011 251,001 245,579 195,034 - $ 788,777 $ 591,590 Proportion of Ownership and Voting Rights
	December 31
	2021 2020 13% 13% 15% 29% 35% -

Refer to Table 5 “Information on Investees” for the nature of activities, principal places of business and countries of incorporation of the associates.

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

Global View Co., Ltd. iCatch Technology Inc.		December 31	December 31
		2021 $ 313,131 $ 1,103,576	2020 $ 317,657 $ 471,089

All the associates are accounted for using the equity method.

The summarized financial information of the Company’s associates is set out below:

Total assets Total liabilities Revenue Profit (Loss) for the period Comprehensive income Share of profits of associates accounted for using the equity method		December 31	December 31
	2021 2020 $ 4,121,497 $ 2,469,233 $ 612,850 $ 293,030 For the Year Ended December 31
		2021 $ 1,379,578 $ 129,792 $ 431,519 $ 29,747	2020 $ 913,065 $ (44,765) $ 388,663 $ 26,402

The investments accounted for by using the equity method and the share of profit or loss and other comprehensive income of those investments were based on the associates’ audited financial statements audited by the auditors. .

12. PROPERTY, PLANT AND EQUIPMENT

Assets used by the Company

2021 Cost Balance at January 1, 2021 Additions Disposals Balance at December 31, 2021 Accumulated depreciation Balance at January 1, 2021 Depreciation expense Disposals Balance at December 31, 2021 Carrying amount at December 31, 2021 2020 Cost Balance at January 1, 2020 Additions Disposals Reclassified Balance at December 31, 2020 Accumulated depreciation Balance at January 1, 2020 Depreciation expense Disposals Balance at December 31, 2020 Carrying amount at December 31, 2020	Buildings $ 969,645 - - $ 969,645 $ 382,111 19,729 - $ 401,840 $ 567,805 $ 969,205 440 - - $ 969,645 $ 362,383 19,728 - $ 382,111 $ 587,534	Auxiliary Equipment $ 27,733 2,200 (7,244) $ 22,689 $ 15,336 3,501 (7,244) $ 11,593 $ 11,096 $ 27,073 2,847 (6,260 ) 4,073 $ 27,733 $ 17,523 4,073 (6,260) $ 15,336 $ 12,397	Machinery and Equipment $ 4,644 - (1,144) $ 3,500 $ 2,628 923 (1,144) $ 2,407 $ 1,093 $ 4,644 - - - $ 4,644 $ 1,467 1,161 - $ 2,628 $ 2,016	Testing Equipment $ 136,722 43,274 (51,649) $ 128,347 $ 87,956 33,794 (51,649) $ 70,101 $ 58,246 $ 95,832 51,326 (10,436 ) - $ 136,722 $ 54,731 43,661 (10,436) $ 87,956 $ 48,766	Furniture and Fixtures Prepayments for Equipment and Construction in Process $ 69,286 $ - 34,074 26,429 (2,076) - $ 101,284 $ 26,429 $ 19,445 $ - 21,847 - (2,076) - $ 39,216 $ - $ 62,068 $ 26,429 $ 36,770 $ 969 35,767 4,304 (4,451 ) - 1,200 (5,273) $ 69,286 $ - $ 9,683 $ - 14,213 - (4,451) - $ 19,445 $ - $ 49,841 $ -	Total $ 1,208,030 105,977 (62,113) $ 1,251,894 $ 507,476 79,794 (62,113) $ 525,157 $ 726,737 $ 1,134,493 94,684 (21,147 ) - $ 1,208,030 $ 445,787 82,836 (21,147) $ 507,476 $ 700,544

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

Buildings	35-56 years
Auxiliary equipment	4-11 years
Machinery and equipment	4 years
Testing equipment	1-4 years
Furniture and fixtures	2-5 years

Refer to Note 30 for the carrying amounts of property, plant and equipment that had been pledged by the Company to secure borrowings.

13. LEASE ARRANGEMENTS

a. Right-of-use assets

Carrying amount Land Depreciation charge for right-of-use assets Land		December 31	December 31
	2021 $ 165,563 For the Year Ended		2020 $ 173,774 December 31
		2021 $ 5,682	2020 $ 5,785

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

b. Lease liabilities

Carrying amount Current Non-current Range of discount rates for lease liabilities was as follows: Land		December 31
		2021 2020 $ 4,074 $ 4,105 $ 166,801 $ 173,319 December 31
		2021 2020 2.39% 2.39%

c. Material lease-in activities and terms

The Company leases land and buildings located in the ROC for the use of plants and offices has a lease terms of 20 years. The lease agreement specifies that lease payments will be adjusted on the basis of changes in the announced land value prices. The Company does not have bargain purchase options to acquire the leasehold land and buildings at the end of the lease terms.

The Company did not enter into significant lease contracts for the years ended December 31, 2020 and 2021. Because of the market conditions severely affected by COVID-19 in 2020, the Company requested the lessor for rent subsidy. The lessor agreed to provide unconditional 20% rent reduction from January 1 to September 30, 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 January 1 to September 30, 2020.

d. Other lease information

Expenses relating to short-term leases Expenses relating to low-value asset leases Total cash outflow for leases	2021 $ 5,200 $ 425 $ 13,794	2020 $ 320
		$ 444
		$ 9,070

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.

14. INTANGIBLE ASSETS

Cost Balance at January 1 Additions Disposals Balance at December 31 Accumulated amortization Balance at January 1 Amortization expense Disposals Balance at December 31 Accumulated deficit Balance at December 31 Carrying amount 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	For the Year Ended December 31, 2021
		Technology License Fees $ 497,620 84,184 (11,536) $ 570,268 $ 145,457 88,018 (11,536) $ 221,939 $ 111,136 $ 237,193	Software $ 5,802 6,886 (3,087) $ 9,601 $ 3,359 2,284 (3,087) $ 2,556 $ - $ 7,045	Patents $ 97,099 - - $ 97,099 $ 75,522 - - $ 75,522 $ 21,577 $ -	Total $ 600,521 91,070 (14,623) $ 676,968 $ 224,338 90,302 (14,623) $ 300,017 $ 132,713 $ 244,238

For the Year Ended December 31, 2020

Technology
License Fees
Software
Patents
Cost
Balance at January 1
$ 332,160
$ 8,206
$ 97,099
Additions

206,484
2,566
-
Disposals

(41,024)
(4,970)
-

Balance at December 31
$ 497,620
$ 5,802
$ 97,099

Accumulated amortization
Balance at January 1
$ 137,420
$ 5,552
$ 75,522
Amortization expense

49,061
2,777
-
Disposals

(41,024)
(4,970)
-

Balance at December 31
$ 145,457
$ 3,359
$ 75,522

Accumulated deficit
Balance at December 31
$ 111,136
$ -
$ 21,577

Carrying amount at December 31,
2020
$ 241,027
$ 2,443
$ -

Other intangible assets are amortized on a straight-line basis over their estimated useful lives
Technology license fees
Software
Patents
An analysis of the amortization by function:

Total
$ 437,465

209,050

(45,994)
$ 600,521
$ 218,494

51,838

(45,994)
$ 224,338
$ 132,713
$ 243,470
as follows:
2-10 years
1-5 years
18 years

Manufacturing expenses General and administrative expenses Research and development expenses		December	31
		2021 $ 24 1,477 88,801 $ 90,302	2020 $ - 2,089 49,749 $ 51,838

15. OTHER ASSETS

Current Other financial assets Restricted assets (a)		December	31
		2021 $ 25,940	2020 $ 44,201 (Continued)

Other assets Prepayments Prepayments for EDA tools Prepaid technical licensing fee Others Non-current Other financial assets Pledged time deposits (b) Other assets Refundable deposits Others		December	31
		2021 $ 38,613 16,622 7,636 25,091 $ 87,962 $ 8,350 $ 173 7,800 $ 7,973	2020 $ 3,786 14,981 18,032 10,028 $ 46,827 $ 6,100 $ 146 7,800 $ 7,946 (Concluded)

a. Refer to Note 25 for information on restricted assets.
b. Refer to Note 30 for information on pledged time deposits.

16. BORROWINGS

a. Short-term borrowings

Unsecured borrowings Bank loans		December	31
		2021 $ -	2020 $ 28,480

The effective interest rate interval for bank loans was 0.870% per annum as of December 31, 2020, respectively.

b. Long-term borrowings

The borrowings of the Company were as follows:

Loans on credit Less: Current portion Long-term borrowings - non-current		December 31	December 31
		2021 $ 430,000 (46,000) $ 384,000	2020 $ 230,000 (25,000) $ 205,000

The intervals of effective borrowing rate as of December 31, 2021 and 2020 was 1.220%-1.250% and 1.250%-1.320%.

In addition, in accordance with the provisions of the loan contract, the Company’s financial statements for the year ended 2021 are subject to current ratio, debt ratio, interest coverage ratio, etc., but they are not included in the examination of default items. The Company’s financial ratios are in compliance with the contract requirements.

17. ACCOUNTS AND NOTES PAYABLE

Accounts payable Payable - operating		December 31	December 31
		2021 $ 294,804	2020 $ 104,991

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

18. OTHER LIABILITIES

Current Other liabilities Payables for royalties Payables for salaries or bonuses Payable on machinery and equipment Payables for employees’ compensation and remuneration of directors Investment impairment using equity method Payables for purchase of intangible assets Other payables to related party Refund liabilities (Note 21) Labor/health insurance Others Deferred revenue Arising from government grants (Note 25) Non-current Payables for purchase of intangible assets Payable on machinery and equipment		December 31	December 31
		2021 $ 251,042 119,128 61,579 30,339 18,737 14,715 14,658 9,849 9,605 60,721 $ 590,373 $ - $ 6,920 3,070 $ 9,990	2020 $ 57,304 113,919 8,005 8,292 10,042 2,827 525 14,833 8,413 35,237 $ 259,397 $ 44,201 $ 1,532 4,940 $ 6,472

19. RETIREMENT BENEFIT PLANS

Defined contribution plan

The Company adopted a pension plan under the Labor Pension Act (LPA), which is a state-managed defined contribution plan. Under the LPA, the Company makes monthly contributions to employees’ individual pension accounts at 6% of monthly salaries and wages.

Defined benefit plans

The defined benefit plans adopted by the Company 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 Company makes monthly contributions, equal to 2% of salaries, to a pension fund, which is administered by a fund monitoring committee. Pension contributions are deposited in the Bank of Taiwan in the committee’s name and are managed by the Bureau of Labor Funds, Ministry of Labor (the “Bureau”); the Company has no right to influence the investment policy and strategy. According to the letter of Zhuhuanzi No. 1100000728 issued by the Hsinchu Science Park Administration of the Ministry of Science and Technology, the Company ceased its retirement fund contribution temporarily from January 1, 2021 to December 31, 2021.

The amounts included in the balance sheets in respect of the Company’s defined benefit plans were as follows:

Present value of funded defined benefit obligation Fair value of plan assets Net defined benefit assets		December 31	December 31
		2021 $ 162,318 (166,871) $ (4,553)	2020 $ 166,657 (171,097) $ (4,440)

Movements in net defined benefit liabilities (assets) were as follows:

			Net Liabilities	Net Liabilities
	Present Value of		(Assets) Arising
	Funded Defined		from Defined
	Benefit	Fair Value of		Benefit
	Obligation	Plan Assets	Obligation
Balance at January 1, 2020	$ 173,083	$ 174,246	$	(1,163)
Service cost
Current service cost	563	-		563
Interest expense (income)	1,731	1,757		(26)
Recognized in profit or loss	2,294	1,757		537
				(Continued)

					Net Liabilities	Net Liabilities
	Present Value of				(Assets) Arising
	Funded Defined				from Defined
		Benefit	Fair Value of			Benefit
	Obligation		Plan Assets		Obligation
Remeasurement
Return on plan assets	$	-	$	5,187	$	(5,187)
Actuarial (gain) loss-changes in financial
assumptions		4,422		-		4,422
Adjustment on actuarial (gain) loss-experience
adjustment		(2,817)		-		(2,817)
Recognized in other comprehensive income		1,605		5,187		(3,582)
Contributions from employer		-		232		(232)
Benefits paid		(10,325)		(10,325)		-
Balance at December 31, 2020	$	166,657	$	171,097	$	(4,440)
Balance at January 1, 2021	$	166,657	$	171,097	$	(4,440)
Service cost
Current service cost		350		-		350
Interest expense (income)		1,250		1,283		(33)
Recognized in profit or loss		1,600		1,283		317
Remeasurement
Return on plan assets		-		1,759		(1,759)
Actuarial (gain) loss-changes in financial
assumptions		4,154		-		4,154
Adjustment on actuarial (gain) loss-experience
adjustment		(2,825)		-		(2,825)
Recognized in other comprehensive income		1,329		1,759		(430)
Contributions from employer		-		-		-
Benefits paid		(7,268)		(7,268)		-
Balance at December 31, 2021	$	162,318	$	166,871	$	(4,553)
						(Concluded)

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	For the Year Ended December 31	For the Year Ended December 31	For the Year Ended December 31
		2021 $ 49 8 100 160 $ 317	2020 $ 89 8 178 262 $ 537

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

a. 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.
b. 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.
c. 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% 4.00% 4.00% 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:

Discount rate(s) 0.25% increase 0.25% decrease Expected rate(s) of salary increase 1% increase 1% decrease		December	31
		2021 $ (4,154) $ 4,315 $ 17,682 $ (15,554)	2020 $ (4,422) $ 4,598 $ 18,742 $ (16,422)

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.

The expected contributions to the plan for the next year The average duration of the defined benefit obligation		December	31
		2021 $ - 12 years	2020 $ - 13 years

20. EQUITY

a. Share capital

1) Ordinary shares:

Ordinary shares:
Shares authorized (in thousands of shares) Value of authorized shares Shares issued and fully paid (in thousands of shares) Shares issued and fully paid		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 a right to dividends.

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

2) Global depositary receipts

In March 2001, The Company issued 20,000 thousand units of global depositary receipts (GDRs), representing 40,000 thousand ordinary shares that consisted of newly issued and originally outstanding shares. The GDRs are listed on the London Stock Exchange (ticker: SUPD) with an issuance price of US$9.57 per unit. As of December 31, 2021, the outstanding 175 thousand units of GDRs represented 350 thousand ordinary shares.

b. Capital surplus

A reconciliation of the carrying amount at the beginning and at the end of 2021 and 2020 for each component of capital surplus was as follows:

May be used to offset a deficit, distributed as cash dividends, or transferred to share capital (1) From the issuance of ordinary shares 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 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 accounted for using the equity method		December 31	December 31
		2021 $ 18,497 157,423 298,767 48,178 497,906 202,773 $ 1,223,544	2020 $ 18,497 157,423 207,316 46,307 - 71,277 $ 500,820

1) When the Company has no deficit, such capital surplus may be distributed as cash dividends or transferred to share capital (limited to a certain percentage of the Company’s capital surplus and once a year).

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 changes 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 also proposed in the shareholders’ meeting on June 12, 2020 to issue cash dividends from capital surplus of $177,598 thousand.

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

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

The appropriation of earnings for proposed in the Corporation’s board of directors on March 29, 2022 to proposed cash dividends from capital surplus of $37,888 thousand.

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 Recognized Exchange differences on translating the financial statements of foreign operations Share of exchange differences of associates accounted for using the 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) (18,998) (12,491) - $ (259,512)	2020 $ (218,780) (19,314) 20,354 (10,283) $ (228,023)

2) Unrealized valuation gain (loss) on financial assets at FVTOCI:

Balance at January 1 Current Unrealized gains Share from associates accounted for using the equity method Cumulative unrealized (loss) gain 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) - 117,920 (65,578) 1,022 $ 20,309	2020 $ (42,246) 42 5,865 1,172 2,112 $ (33,055)

f. Treasury shares

	Shares
	Transferred to	Shares Held by
	Employees	Subsidiaries		Total
	(In Thousands	(In	Thousands	(In Thousands
Purpose of Buy-back	of Shares)	of Shares)		of 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 Company’s shares held by its subsidiaries at the end of the reporting periods were as follows:

Number of Shares Held (In Thousand) December 31, 2021 Lin Shin Investment Co., Ltd 3,560 December 31, 2020 Lin Shin Investment Co., Ltd 3,560	Carrying Amount Market Price $ 63,401 $ 138,306 $ 63,401 $ 65,148

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

21. REVENUE

Revenue from the sale of goods Other	For the Year Ended December 31	For the Year Ended December 31	For the Year Ended December 31
		2021 $ 1,449,034 71,108 $ 1,520,142	2020 $ 1,099,471 69,189 $ 1,168,660

a. Contract information

Revenue from the sale of goods

IC products are sold to agents and customers. The Company 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 Company recognizes the amount and the liabilities for refunds (accounted for as other current liabilities).

Other

Other income mainly comes from software development and royalties.

b. Contract balances

December 31, 2021 December 31, 2020 January 1, 2020 Trade receivables (Note 9) $ 268,597 $ 172,035 $ 141,845 Contract liabilities - current $ 11,094 $ 5,589 $ 3,373 The changes in the balance of contract liabilities primarily result from the timing difference between the Company’s performance and the respective customer’s payment. Disaggregation of revenue Reportable Segments Direct Sales 2021 2020 Primary geographical markets Asia $ 1,243,478 $ 970,145 Taiwan 231,604 137,590 Others 45,060 60,925 $ 1,520,142 $ 1,168,660 Timing of revenue recognition Satisfied at a point in time $ 1,516,210 $ 1,162,170 Satisfied over time 3,932 6,490 $ 1,520,142 $ 1,168,660	December 31, 2021 December 31, 2020 January 1, 2020 Trade receivables (Note 9) $ 268,597 $ 172,035 $ 141,845 Contract liabilities - current $ 11,094 $ 5,589 $ 3,373 The changes in the balance of contract liabilities primarily result from the timing difference between the Company’s performance and the respective customer’s payment. Disaggregation of revenue Reportable Segments Direct Sales 2021 2020 Primary geographical markets Asia $ 1,243,478 $ 970,145 Taiwan 231,604 137,590 Others 45,060 60,925 $ 1,520,142 $ 1,168,660 Timing of revenue recognition Satisfied at a point in time $ 1,516,210 $ 1,162,170 Satisfied over time 3,932 6,490 $ 1,520,142 $ 1,168,660	December 31, 2021 December 31, 2020 January 1, 2020 Trade receivables (Note 9) $ 268,597 $ 172,035 $ 141,845 Contract liabilities - current $ 11,094 $ 5,589 $ 3,373 The changes in the balance of contract liabilities primarily result from the timing difference between the Company’s performance and the respective customer’s payment. Disaggregation of revenue Reportable Segments Direct Sales 2021 2020 Primary geographical markets Asia $ 1,243,478 $ 970,145 Taiwan 231,604 137,590 Others 45,060 60,925 $ 1,520,142 $ 1,168,660 Timing of revenue recognition Satisfied at a point in time $ 1,516,210 $ 1,162,170 Satisfied over time 3,932 6,490 $ 1,520,142 $ 1,168,660	December 31, 2021 December 31, 2020 January 1, 2020 Trade receivables (Note 9) $ 268,597 $ 172,035 $ 141,845 Contract liabilities - current $ 11,094 $ 5,589 $ 3,373 The changes in the balance of contract liabilities primarily result from the timing difference between the Company’s performance and the respective customer’s payment. Disaggregation of revenue Reportable Segments Direct Sales 2021 2020 Primary geographical markets Asia $ 1,243,478 $ 970,145 Taiwan 231,604 137,590 Others 45,060 60,925 $ 1,520,142 $ 1,168,660 Timing of revenue recognition Satisfied at a point in time $ 1,516,210 $ 1,162,170 Satisfied over time 3,932 6,490 $ 1,520,142 $ 1,168,660	December 31, 2021 December 31, 2020 January 1, 2020 Trade receivables (Note 9) $ 268,597 $ 172,035 $ 141,845 Contract liabilities - current $ 11,094 $ 5,589 $ 3,373 The changes in the balance of contract liabilities primarily result from the timing difference between the Company’s performance and the respective customer’s payment. Disaggregation of revenue Reportable Segments Direct Sales 2021 2020 Primary geographical markets Asia $ 1,243,478 $ 970,145 Taiwan 231,604 137,590 Others 45,060 60,925 $ 1,520,142 $ 1,168,660 Timing of revenue recognition Satisfied at a point in time $ 1,516,210 $ 1,162,170 Satisfied over time 3,932 6,490 $ 1,520,142 $ 1,168,660
			Direct Sales
		2021 $ 1,243,478 231,604 45,060 $ 1,520,142 $ 1,516,210 3,932 $ 1,520,142		2020 $ 970,145 137,590 60,925 $ 1,168,660 $ 1,162,170 6,490 $ 1,168,660

The changes in the balance of contract liabilities primarily result from the timing difference between the Company’s performance and the respective customer’s payment.

c. Disaggregation of revenue

22. NET PROFIT

Net profit included the following items:

a. Interest income

For the Year Ended	For the Year Ended	December 31
2021 $ 940 15 $ 955 For the Year Ended		2020 $ 691 - $ 691 December 31
2021 $ 34,541 70,121 67,142 11,949 $ 183,753 For the Year Ended		2020 $ 27,840 21,034 6,243 5,030 $ 60,147 December 31
	2021 $ 33,598 221,022 (2,550) $ 252,070	2020 $ 27,619 (17,474) (6,789) $ 3,356

b. Other income

c. Other gains and losses

d. Finance costs

Interest on bank loans Interest on lease liabilities Other financial costs	For the Year Ended December 31	For the Year Ended December 31	For the Year Ended December 31
		2021 $ 4,958 4,173 207 $ 9,338	2020 $ 1,102 4,310 940 $ 6,352

e. Depreciation and amortization

An analysis of depreciation by function Operating costs Operating expenses An analysis of amortization 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 $ 3,215 82,261 $ 85,476 $ 24 90,278 $ 90,302	2020 $ 3,689 84,932 $ 88,621 $ - 51,838 $ 51,838

f. Employee benefit expense

Short-term benefits Post-employment benefits Defined contribution plans Defined benefit plans (Note 19) Other employee benefits Total employee benefit expense An analysis of employee benefit expense by function Operating costs Operating expenses	For the Year Ended	For the Year Ended	December 31
		2021 $ 538,743 21,946 316 22,262 14,872 $ 575,877 $ 35,643 540,234 $ 575,877	2020 $ 495,427 20,672 537 21,209 13,186 $ 529,822 $ 41,104 488,718 $ 529,822

g. Employees’ compensation and remuneration of directors

The Company resolved amendments to its Articles of Incorporation to distribute employees’ compensation and remuneration to 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 to directors. The employees’ compensation and remuneration of directors for the years ended December 31, 2021 and 2020, which have been approved by the Company’s board of directors on March 29, 2022 and March 29, 2021, respectively, are 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 amounts after the annual financial statements are authorized for issue, the differences are recorded as a change in the accounting estimate.

There is no difference between the actual amounts of compensation of employees and remuneration of directors and supervisors paid and the amounts recognized in the consolidated financial statements for the years 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.

Amounts approved in the board of directors’ meeting Amounts recognized in the annual financial statements	For Year 2019
	Compensation of Employees Remuneration of Directors and Supervisors $ - $ - $ 206 $ 309

Information on the employees’ compensation and remuneration of directors resolved by the Company’s board of directors in 2022 and 2021 is available at the Market Observation Post System website of the Taiwan Stock Exchange.

h. Gain or loss on exchange rate changes

Gain or loss on exchange rate changes
Exchange rate gains Exchange rate losses Net loss	For the Year Ended December 31
		2021 $ 12,624 (15,174) $ (2,550)	2020 $ 13,316 (20,105) $ (6,789)

23. 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 Deferred tax In respect of the current year Income tax expense recognized in profit or loss	For the Year Ended December 31	For the Year Ended December 31	For the Year Ended December 31
		2021 $ 433 - $ 433	2020 $ 502 - $ 502

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 $ 1,183,218 $ 323,905 $ 236,644 $ 64,781 (267,649) (111,808) - (4,207) (49,983) 2,125 (36) (34) (81,024) (49,143) 81,024 49,143 433 502 $ 433 $ 502 December 31

$

	2021 $ 7	2020 $ 372

b. Current tax assets and liabilities

c. Deferred tax assets and liabilities

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 Depreciation expense Exchange (losses) gains Others For the year ended December 31, 2020 Deferred Tax Assets Temporary differences Depreciation expense Exchange (gains) losses Others	Opening Balance Recognized in Profit or Loss Closing Balance $ 2,880 $ (1,471) $ 1,409 (712) 1,949 1,237 317 (478) (161) $ 2,485 $ - $ 2,485 Opening Balance Recognized in Profit or Loss Closing Balance $ 3,792 $ (912) $ 2,880 (102) (610) (712) (1,205) 1,522 317 $ 2,485 $ - $ 2,485

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

Loss carryforwards Expiry in 2021 Expiry in 2022 Expiry in 2023 Expiry in 2027 Expiry in 2029 Expiry in 2030 Expiry in 2031 Deductible temporary differences		December 31	December 31
		2021 $ - 394,894 1,144,831 24,228 329,899 57,825 4,766 $ 1,956,443 $ 64,832	2020 $ 322,509 394,894 1,144,831 24,228 329,899 46,749 - $ 2,263,110 $ 74,332

e. Unused loss carryforwards and tax exemptions

Loss carryforwards as of December 31, 2021:

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

f. Income tax assessments

The income tax returns of the Company before 2019 have been assessed by the tax authorities.

24. EARNINGS PER SHARE

EARNINGS PER SHARE
Basic gain per share Diluted earnings per share	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 $ 1,182,785 - $ 1,182,785	2020 $ 323,403 - $ 323,403

Weighted average number of ordinary shares outstanding (in thousand shares):

Weighted average number of ordinary shares used in the computation of basic earnings per shares Effect of dilutive potential ordinary shares: Employee bonuses Weighted average number of ordinary shares used in the computation of diluted earnings per share	For the Year Ended	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.

25. GOVERNMENT GRANTS

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

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.

26. EQUITY TRANSACTIONS WITH NON-CONTROLLING INTEREST

For details about the equity transactions with non-controlling interest, refer to Note 31 to the Company’s consolidated financial statements for the year ended December 31, 2021.

27. CAPITAL MANAGEMENT

The Company manages its capital to ensure that entities in the Company 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 Company consists of net debt (borrowings offset by cash and cash equivalents) and equity of the Company (comprising issued capital, reserves, retained earnings and other equity) attributable to owners of the Company.

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

28. FINANCIAL INSTRUMENTS

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

The management of the Company 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 a recurring basis
1) Fair value hierarchy

December 31, 2021 Financial assets at FVTPL Mutual funds Domestic unlisted shares Domestic listed shares December 31, 2020 Financial assets at FVTPL Mutual funds Domestic unlisted shares	Level 1 $ 87,633 - 66,000 $ 153,633 Level 1 $ 149,681 69,090 $ 218,771	Level 2 $ - - - $ - Level 2 $ - - $ -	Level 3 $ - 515,261 - $ 515,261 Level 3 $ - 311,021 $ 311,021	Total $ 87,633 515,261 66,000
				$ 668,894
				Total $ 149,681 380,111
				$ 529,792

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
$ 311,021
$ -

Recognized in profit or loss

204,240

-

Balance at December 31, 2021
$ 515,261
$ -

For the year ended December 31, 2020
Financial Assets
Financial Assets
at FVTPL
Financial Assets
at FVTOCI
Balance at January 1, 2020
$ 337,789
$ 2,586

Recognized in profit or loss
45,197
-
Recognized in other comprehensive
income
-
42
Transfer out of Level 3
(68,565)
-
Disposals and proceeds from return of
capital of investments

(3,400)

(2,628)

Balance at December 31, 2020
$ 311,021
$ -

Total
$ 311,021

204,240
$ 515,261
Total
$ 340,375
45,197
42
(68,565)

(6,028)
$ 311,021

c. Categories of financial instruments

Financial assets Fair value through profit or loss (FVTPL) Financial assets at amortized cost (i) Financial liabilities Measured at amortized cost (ii)	December 31
	2021 2020 $ 668,894 $ 529,792 906,135 1,010,044 778,453 418,753

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

The Company’s major financial instruments included mutual funds, equity and debt investments, trade receivable, trade payables, borrowings and lease liability. The Company’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 Company 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 Company's risk management committee.

1) Market risk

The Company’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 Company 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 Company’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 Company considers the cost of the hedging instrument and the hedging period.

The carrying amounts of the Company’s foreign currency-denominated monetary assets and monetary liabilities at the end of the reporting period, please refers to Note 31.

Sensitivity analysis

The Company was mainly exposed to the USD and RMB.

The following table details the Company 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 positive (negative) amount below indicates an increase (decrease) in pre-tax profit (loss) when the NTD strengthened (weakened) by 1% against the relevant currency at the end of the reporting period.

Profit or loss Profit or loss	USD Impact
	For the Year Ended December 31
	2021 2020 $ 5,311 $ (1,291) RMB Impact
	For the Year Ended December 31
	2021 2020 $ 3,441 $ 3,036

b) Interest rate risk

The Company was exposed to interest rate risk because entities in the Company borrowed funds at both fixed and floating interest rates. The risk is managed by the Company 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 Company’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 $ 268,350 $ 396,000 170,875 205,904 336,527 427,934 430,000 230,000

The sensitivity analyses below were determined based on the Company’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 increased/decreased by 0.125% and all other variables held constant, the Company’s post-tax profit for the years ended December 31, 2021 and 2020 would have decreased/increased by $117 thousand and increased/decreased $247 thousand, respectively.

c) Other price risk

The Company was exposed to price risk through its investments in financial assets at FVTPL and FVTOCI. The Company does not actively trade these investments.

The sensitivity analyses below was determined based on the exposure to price risks of financial assets at FVTPL and FVTOCI at the end of the reporting period.

If the prices of financial assets at FVTPL had been 1% higher/lower, the post-tax other comprehensive income for the years ended December 31, 2021 and 2020 would have increased/decreased by $6,689 and $5,298 thousand, respectively.

2) Credit risk

Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in a financial loss to the Group. At the end of the reporting period, the Group’s maximum exposure to credit risk, which would cause a financial loss to the Group due to the failure of the counterparty to discharge its obligation and due to the financial guarantees provided by the Group, could be equal to the total of the following:

In order to minimize credit risk, the management of the Company 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 Company 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 Company consider that the Company’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 Company’s concentration of credit risk of 91% and 91% 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 Company manages liquidity risk by monitoring and maintaining a level of cash and cash equivalents deemed adequate to finance the Company’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 Company relies on bank borrowings as a significant source of liquidity. As of December 31, 2021 and 2020, the Company had available unutilized overdraft and financing facilities refer to the following instruction.

a) Liquidity and interest rate risk tables

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

December 31, 2021

On Demand
or Less than
1 Month
1-3 Months
More than 3
Months to 1
Year
Over 1 Year
to 5 Years
Non-derivative financial
liabilities

Non-interest bearing
$ 126,986
$ 244,909
$ 8,534 $ -

Lease liabilities

678
1,355
6,098
32,522

Variable in tersest rate
liability
221
-
46,000 384,000
Fixed interest rate liabilities
-

-

-

3,826

$ 127,885
$ 246,264
$ 60,632
$ 420,348

5+ Years
$ -
204,690
-

49,823

$ 254,513

Additional information about the maturity analysis for lease liabilities:

Lease liabilities	Less than 1 Year $ 8,131	1-5 Years $ 32,522	5-10 Years $ 40,652	10-15 Years $ 40,652	15-20 Years $ 31,901	20+ Years $ 91,485

December 31, 2020

On Demand or Less than 1 Month 1-3 Months More than 3 Months to 1 Year Over 1 Year to 5 Years Non-derivative financial liabilities Non-interest bearing $ 85,741 $ 57,237 $ - $ - Lease liabilities 693 1,386 6,239 33,271 Variable in tersest rate liability 96 - 25,000 205,000 Fixed interest rate liabilities 28,481 - - 3,236 $ 115,011 $ 58,623 $ 31,239 $ 241,507 Additional information about the maturity analysis for lease liabilities: Less than 1 Year 1-5 Years 5-10 Years 10-15 Years 15-20 Years Lease liabilities $ 8,318 $ 33,271 $ 41,589 $ 41,589 $ 34,232	5+ Years $ - 215,006 - 52,046	5+ Years $ - 215,006 - 52,046
	$ 267,052
		20+ Years $ 97,596

b) Financing facilities

Unsecured bank overdraft facility, reviewed annually and payable on demand: Amount used Amount unused		December 31	December 31
		2021 $ 455,938 1,956,078 $ 2,412,016	2020 $ 302,681 2,703,095 $ 3,005,776

29. TRANSACTIONS WITH RELATED PARTIES

a. Name and relationship of related parties

Related Party Name iCatch Technology Ltd. Autosys(TW) Co., Ltd. Jumplux Technology Co., Ltd. Generalplus Technology Inc. Sunext Technology Co., Ltd. Sunplus Innovation Technology Inc. Sunplus mMedia Inc. Sunplus Venture Capital Co., Ltd. Chongqing CQPlus1 Technology Co., Ltd. Sunplus Pro-tek (shenzhen) Co., Ltd. Sun Media Technology Co., Ltd.	Related Party Category
	Associate Associate (Note 1) Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary

Note 1: It is a subsidiary of Autosys Co., Ltd. which is the Company’s associate.

b. Sales of goods

Account Item Related Party Type Sales of goods Subsidiaries Associates	For the Year Ended December 31	For the Year Ended December 31	For the Year Ended December 31
		2021 $ 12,042 12,973 $ 25,015	2020 $ 8,105 15,033 $ 23,138

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. Purchases of goods

Accounted Item Related Party Purchases of goods Subsidiaries	For the Year Ended December 31	For the Year Ended December 31	For the Year Ended December 31
		2021 $ 16,681	2020 $ 60

Purchases were made at market prices and discounted to reflect the quantity of goods purchased and the relationships between the parties.

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

Account Item Related Party Trade receivables Subsidiaries Associates Other receivable Subsidiaries Associates	For the Year Ended December 31	For the Year Ended December 31	For the Year Ended December 31
		2021 $ 3,153 1,112 $ 4,265 $ 2,711 529 $ 3,240	2020 $ 1,404 1,343 $ 2,747 $ 1,937 243 $ 2,180

The outstanding trade receivables from related parties are unsecured. For the years ended December 31, 2021 and 2020, no impairment losses were recognized for trade receivables from related parties.

e. Payables from related parties

Account Item Related Party Other payables Subsidiaries Prepaid materials Subsidiaries	For the Year Ended December 31	For the Year Ended December 31	For the Year Ended December 31
		2021 $ 14,658 $ 38,613	2020 $ 525 $ -

f. Acquisition of property, plant and equipment

Related Party Subsidiaries	For the Year Ended December 31	For the Year Ended December 31	For the Year Ended December 31
		2021 $ 43	2020 $ 12

g. Other transactions with related parties

Account Item Related Party Type Manufacturing expenses Subsidiaries Operating expenses Subsidiaries Non-operating income Subsidiaries and expenses Associates	For the Year Ended December 31	For the Year Ended December 31	For the Year Ended December 31
		2021 $ 22,292 $ 13,174 $ 20,753 9,489 $ 30,242	2020 $ 2,346 $ 35 $ 23,483 4,504 $ 27,987

Miscellaneous expenses between the Company and the related parties were negotiated and were thus not comparable with those in the market.

Administrative support services price and support services price between the Company and the related parties were negotiated and were thus not comparable with those in the market.

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

h. Compensation of key management personnel

Short-term employee benefits Post-employment benefits	For the Year Ended December 31	For the Year Ended December 31	For the Year Ended December 31
		2021 $ 16,892 269 $ 17,161	2020 $ 11,681 269 $ 11,950

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

30. PLEDGED OR MORTGAGED ASSETS

The following assets were mortgaged or pledged as collateral for bank borrowings and leased land:

Buildings, net Pledged time deposits (classified to other financial assets - non-current)		December 31	December 31
		2021 $ 556,931 8,350 $ 565,281	2020 $ 576,333 6,100 $ 582,433

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

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

December 31, 2021

		Foreign
	Currency			Carrying
	(In Thousands)		Exchange Rate	Amount
Financial assets
Monetary items
USD	$	13,793	27.680	$ 381,790
CNY		416	4.344	1,807
JPY		188	0.241	45
GBP		3	37.300	112
HKD		9	3.549	32
Nonmonetary items subsidiaries accounted for
using equity method
USD		25,274	27.680	699,584
HKD		7	3.549	25
Financial liabilities
Monetary items
USD		19,104	27.680	528,799
CNY		3,857	4.344	16,755
December 31, 2020
		Foreign
	Currency			Carrying
	(In Thousands)		Exchange Rate	Amount
Financial assets
Monetary items
USD	$	6,468	28.4800	$ 184,209
CNY		664	4.3770	2,906
JPY		188	0.2763	52
GBP		8	38.9000	311
HKD		3	3.6730	11
Nonmonetary items subsidiaries accounted for
using equity method
USD		19,497	28.4800	555,275
HKD		8	3.6730	29
Financial liabilities
Monetary items
USD		5,177	28.4800	147,441
CNY		3,700	4.3770	16,195

For the years ended December 31, 2021 and 2020, (realized and unrealized) net foreign exchange losses were NT$2,550 thousand and NT$6,789 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 Company.

32. ADDITIONAL DISCLOSURES

a. Information about significant transactions and investees and b. Information on investees:
1) Financings provided: Table 1
2) Endorsement/guarantee provided: Table 2
3) Marketable securities held: Table 3
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.
b. Information on investees:
1) Information on investee: Table 4
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 5)
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 6)

Except for Table 1 to Table 6, there’s no further information about other significant transactions.

TABLE 1

SUNPLUS TECHNOLOGY COMPANY LIMITED

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
1 1 1 2 3 4 5	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

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/Gua rantee 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	The Company The Company 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: The Company 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

MARKETABLE SECURITIES HELD FOR THE YEAR ENDED DECEMBER 31, 2021 (In Thousands of New Taiwan Dollars, Unless Stated Otherwise)

Holding Company Name	Type and Name of Marketable Security	Relationship with the Holding Company	Financial Statement Account	December 31, 2021	December 31, 2021	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 29,285 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 - -	- - - - - 5 - - - - - - - 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 Giant Rock Inc.	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 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. Xiamen Xm-plus Technology 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 - 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 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 2,000 182 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 - - - 362,314	10 2 7 8 - 4 6 4 4 - - - - - - 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 - - - 362,314	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 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 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
Sunext Technology Co., Ltd. Jslilicon Technology Co., Ltd. (Ru Dong)	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 - current Financial assets at FVTPL - current Financial assets at FVTPL - current Financial assets at FVTPL - current	750 580 580 599	$ 41,250 2,587 2,591 2,623	- - - -	$ 41,250 2,587 2,591 2,623	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

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. GenkiTek Technology Co., Ltd. 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., Inc.	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$ 10,240 ) 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 1,606,288 507,747 513,353 513,353	$ 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 18,043	$ 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 18,043	Subsidiary Subsidiary (Note 2) 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 5

SUNPLUS TECHNOLOGY COMPANY LIMITED

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) 82,705 (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) - 99,648 (US$ 3,600) -	$ - - - 51,529 ( RMB$ 11,800) - - - -	$ - - - - - - - -	$ 488,690 (US$ 17,655) 892,680 (US$ 32,250) 553,600 (US$ 20,000) 163,916 (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, 2021.

TABLE 6

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

THE CONTENTS OF STATEMENTS OF MAJOR ACCOUNTING ITEMS

ITEM

STATEMENT INDEX

MAJOR ACCOUNTING ITEMS IN ASSETS, LIABILITIES AND
EQUITY
STATEMENT OF CASH AND CASH EQUIVALENTS	1
STATEMENT OF FINANCIAL ASSETS AT FAIR VALUE	2
THROUGH PROFIT OR LOSS - CURRENT
STATEMENT OF TRADE RECEIVABLES	3
STATEMENT OF INVENTORIES	4
STATEMENT OF CHANGES IN INVESTMENTS	5
ACCOUNTED FOR USING EQUITY METHOD
STATEMENT OF CHANGES IN PROPERTY, PLANT AND	Note 12
EQUIPMENT
STATEMENT OF CHANGES IN ACCUMULATED	Note 12
DEPRECIATION OF PROPERTY, PLANT AND
EQUIPMENT
STATEMENT OF CHANGES IN RIGHT-OF-USE ASSETS	6
STATEMENT OF CHANGES IN ACCUMULATED	6
DEPRECIATION OF RIGHT-OF-USE ASSETS
STATEMENT OF CHANGES IN INTANGIBLE ASSETS	Note 14
STATEMENT OF DEFERRED INCOME TAX ASSETS	Note 23
STATEMENT OF LONG-TERM BORROWINGS	7
STATEMENT OF TRADE PAYABLES	8
STATEMENT OF OTHER PAYABLES	Note 18
STATEMENT OF LEASE LIABILITIES	9
MAJOR ACCOUNTING ITEMS IN PROFIT OR LOSS
STATEMENT OF NET REVENUE	10
STATEMENT OF OPERATING COST	11
STATEMENT OF SELLING AND MARKETING EXPENSES	12
STATEMENT OF GENERAL AND ADMINISTRATIVE	12
EXPENSES
STATEMENT OF RESEARCH AND DEVELOPMENT	12
EXPENSES
STATEMENT OF OPERATING INCOME AND EXPENSES	Note 22
STATEMENT OF FINANCE COSTS	Note 22
STATEMENT OF LABOR, DEPRECIATION, DEPLETION	13
AND AMORTIZATION BY FUNCTION

STATEMENT 1

SUNPLUS TECHNOLOGY COMPANY LIMITED

STATEMENT OF CASH AND CASH EQUIVALENTS DECEMBER 31, 2021

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

Item Cash Cash in banks Currency deposits Time deposits (Note 1) Foreign deposits (Note 2) Cash on hand (Note 3) Less: Restricted assets Total Note 1: NTD Time deposits, interest rates at 0.31%-0.76%.	Amount $ 218,583 268,350 117,944 377 605,254 34,290 $ 570,964

Note 2: Including US$4,195 thousand @27.68, HKD$2 thousand @3.549, GBP0.3 thousand @37.30, JPY43 thousand @0.2405 and RMB412 thousand @4.344.
Note 3: Including NTD100 thousand, HKD$7 thousand @3.549, JPY145 thousand @0.2405, US$4 thousand @27.68, EUR0.3 thousand @31.32, GBP2 thousand @37.30 and RMB4 thousand @4.344.

STATEMENT 2

SUNPLUS TECHNOLOGY COMPANY LIMITED

STATEMENT OF FINANCIAL ASSETS AT FAIR VALUE THROUGH PROFIT OR LOSS DECEMBER 31, 2021

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

Units
Item
(Thousand)
Cost
Beneficiary certificates of the mutual
funds
Yuanta USD Money Market USD
99
$ 31,975
Taishin ESG Emerging Markets
Bond Fund
972
9,716
Taishin 1699 Money Market
1,467
20,019
Pine Bridge Global ESG
Quantitative Bond Fund
2,894
30,000
Marvest Series 1 Fund
-
46,745
Domestic unlisted shares
Triknight Capital Corporation
29,285
292,850
Domestic listed shares
Evergreen Steel Co., Ltd.
1,200
42,000
Less: Current assets

Fair Value
Unit Price
Amount
Note
10.6846
$ 29,157
Note 1
9.1734
8,913
Note 1
13.6786
20,063
Note 1
10.1936
29,500
Note 1
-

-
Note 2
87,633
17.59
515,261
Note 2
55.00
66,000
Note 3

(153,633)
$ 515,261

Unit Price
10.6846

9.1734
13.6786
10.1936
-

17.59
55.00

Note 1: The market value was based on the net asset value of the fund as of December 31, 2021.

Note 2: The market value was based on the carrying amount as of December 31 2021.

Note 3: The market value was based on the average quoted price as of December 31, 2021.

STATEMENT 3

SUNPLUS TECHNOLOGY COMPANY LIMITED

STATEMENT OF TRADE RECEIVABLES, NET DECEMBER 31, 2021 (In Thousands of New Taiwan Dollars)

Client Name Trade receivable from related parties iCatch Technology Ltd. Generalplus Technology Inc. Jumplux Technology Co., Ltd. Others (Note) Trade receivable from unrelated parties Client A Client B Client C Client D Others (Note) Total	Amount $ 1,112 1,190 1,835 128 4,265 113,508 96,038 18,734 16,344 19,708 264,332 $ 268,597

Note: The amount of individual clients that is included in others does not exceed 5% of the account balance.

STATEMENT 4

SUNPLUS TECHNOLOGY COMPANY LIMITED

STATEMENT OF INVENTORIES DECEMBER 31, 2021 (In Thousands of New Taiwan Dollars)

Item Finished goods Work in progress Raw materials Total		Amount
		Cost Net Realizable Value $ 123,892 $ 231,873 195,671 381,060 214,668 220,650 $ 534,231 $ 833,583

STATEMENT 5

SUNPLUS TECHNOLOGY COMPANY LIMITED

STATEMENT OF CHANGES IN INVESTMENTS ACCOUNTED FOR USING EQUITY METHOD FOR THE YEAR ENDED DECEMBER 31, 2021 (In Thousands of New Taiwan Dollars, Unless Stated Otherwise)

Global View Co., Ltd. Ventureplus Group Inc. Lin Shin Investment Co., Ltd. Generalplus Technology Corp. Sunplus Venture Capital Co., Ltd. Sunplus Innovation Technology Russell Holdings Limited Sunext Technology Co., Ltd. iCatch Technology Inc. Sunplus mMedia Inc. Wei-Young Investment Inc. Sunplus Management Consulting Sunplus Technology (H.K.) Magic Sky Limited Sunplus mMobile Inc. Award Glory Ltd. Jumplux Technology AkiraNET Co., Ltd. Total	Balance, January 1, 2021 Shares (Thousand) Amount 8,229 $ 346,011 - 1,460,438 70,000 771,853 37,324 713,447 83,000 870,199 29,949 746,919 24,660 552,847 58,778 211,723 20,735 245,579 22,441 23,327 5,400 59,391 500 3,578 11,075 30 10,240 2,435 16,240 29,406 7,707 268,500 13,200 (10,042 ) - - $ 6,295,641	Additio	ns Amount $ - - - 131 - - 143,603 - 1,257 - - - - 2,783 - 51,730 - 174,000 $ 373,504	Decreas	es Amount $ 46,908 - 66,290 89,578 - 257,137 - - 110,989 - 4,849 - - - - - - - $ 575,751		Increase (Decrease) Amount Evaluated by Equity Method Exchange Differences Arising on Translation to Investment Gain (Loss) the Presentation Currency Transferred Capital Surplus $ 16,200 $ (514 ) $ 2 119,643 (10,245 ) 24,790 287,015 (545 ) 24,803 225,942 (1,366 ) - 68,681 - 64,618 353,104 - 442,004 36,469 (18,697 ) 119 42,749 - - 26,556 - 88,972 (68 ) - - 48,312 - - (195 ) - - (4 ) (1 ) - (4,494 ) (56 ) - (180 ) - - 171,513 (65 ) (26,561 ) (9,346 ) - - (13,009) - 34,043 $ 1,368,888 $ (31,489) $ 652,790	Fair Value Changes of Financial Assets at FVTOCI I $ 27,944 - 40,952 - 64,508 (70 ) (15,414 ) - - - - - - - - - - - $ 117,920	Unrealized Losses from Investments In Equity nstruments at FVTOCI $ - - - - - 1,022 - - - - - - - - - - - - $ 1,022	Actuarial (Gain) Loss $ 7 - (222 ) (556 ) 477 775 - - (374 ) - - - - - - - 651 - $ 758	Investment Impairment Using Equity Method (Accounted for Current Liability) $ - - - - - - - - - - - - - - - - 18,737 - $ 18,737	Balance, December 31, 202	1 Amount N $ 342,742 1,594,626 1,057,566 848,020 1,068,483 1,286,617 698,927 254,472 251,001 23,259 102,854 3,383 25 668 29,226 465,117 - 195,034 $ 8,222,020	et Assets Value Note $ 342,742 Note 1 1,594,626 Note 1 1,057,566 Notes 1 and 3 848,315 Note 1 1,068,483 Note 1 1,286,616 Note 1 698,927 Note 1 254,472 Note 1 200,729 Notes 1 and 4 10,597 Note 1 102,854 Note 1 3,383 Note 2 25 Note 1 668 Note 1 29,226 Note 1 465,117 Note 1 (18,737 ) Note 1 195,034 - $ 8,140,643
							Investment Gain (Loss) t $ 16,200 119,643 287,015 225,942 68,681 353,104 36,469 42,749 26,556 (68 ) 48,312 (195 ) (4 ) (4,494 ) (180 ) 171,513 (9,346 ) (13,009) $ 1,368,888
	Shares (Thousand) 8,229 - 70,000 37,324 83,000 29,949 24,660 58,778 20,735 22,441 5,400 500 11,075 10,240 16,240 7,707 13,200 -	Shares (Thousand) - - - - - - 5,075 - - - - - - 100 - 1,860 - 17,400		Shares (Thousand) - - - - - 683 - - 8,000 - - - - - - - - -								Shares (Thousand) % 8,229 13 - 100 70,000 100 37,324 34 83,000 100 29,266 51 29,735 100 58,778 93 12,735 15 22,441 90 5,400 100 500 100 11,075 100 10,340 100 16,240 100 9,567 100 13,200 55 17,400 35

Note 1: The gains and losses of the investment and the net equity value are calculated according to the investees’ financial statements which are audited by the accountant. Note 2: The gains and losses of the investment and the net equity value are calculated according to the investees’ financial statements which are unaudited by the accountant. Note 3: The carrying amount and net value included deduction of the book value of the parent company's stock held by the subsidiary in the amount of $138,306 thousand. Note 4: The decrease of 8,000 shares was due to reclassification to non-current assets held for sale of $108,504 thousand.

STATEMENT 6

SUNPLUS TECHNOLOGY COMPANY LIMITED

STATEMENT OF CHANGES IN RIGHT-OF-USE ASSETS AND STATEMENT OF CHANGES IN ACCUMULATED DEPRECIATION OF RIGHT-OF-USE ASSETS DECEMBER 31, 2021 (In Thousands of New Taiwan Dollars)

Cost Balance at January 1, 2021 Additions Balance at December 31, 2021 Accumulated depreciation Balance at January 1, 2021 Depreciation Balance at December 31, 2021 Carrying amount at December 31, 2021	Land $ 185,344 (2,529) 182,815 11,570 5,682 17,252 $ 165,563

STATEMENT 7

SUNPLUS TECHNOLOGY COMPANY LIMITED

STATEMENT OF LONG-TERM BORROWINGS FOR THE YEAR ENDED DECEMBER 31, 2021 (In Thousands of New Taiwan Dollars)

Creditor
Balance End
of Year
Period
Range of
Interest Rates
(%)
Medium - to long-term credit borrowings
Shanghai Commercial Bank
$ 200,000
2020.08.21-2025.08.21
1.25

Far Eastern International Bank

230,000
2020.10.13-2023.10.13
1.25

430,000

Less: Current portion

46,000
$ 384,000

Financing
Facilities
Repayment Method
Pledged or
Mortgaged
$ 200,000
The loan is to be repaid quarterly-annually in 11 installments, with the first
installment commencing in the third year after the first drawdown date.
-
500,000
The loan is to be repaid semi-annually in 3 installments, with the first
installment commencing in the twice year after the first drawdown date.
-
$ 700,000

STATEMENT 8

SUNPLUS TECHNOLOGY COMPANY LIMITED

STATEMENT OF TRADE PAYABLES DECEMBER 31, 2021 (In Thousands of New Taiwan Dollars)

Vendor Name Supplier A Supplier B Supplier C Supplier D Supplier E Supplier F Others (Note) Total	Amount $ 114,646 36,820 30,543 29,553 17,730 15,578 49,934 $ 294,804

Note: The amount of individual vendor in others does not exceed 5% of the account balance.

STATEMENT 9

SUNPLUS TECHNOLOGY COMPANY LIMITED

STATEMENT OF LEASE LIABILITIES FOR THE YEAR ENDED DECEMBER 31, 2021 (In Thousands of New Taiwan Dollars, Unless Stated Otherwise)

Item Lease Term Discount Rate Land 2015.08-2034.12 2.39% Land 2002.06-2041.12 2.39% Land 2021.01-2040.12 2.39% Less: Lease liabilities - current Lease liabilities -non-current	Amount $ 78,203 66,323 26,349 (4,074) $ 166,801

STATEMENT 10

SUNPLUS TECHNOLOGY COMPANY LIMITED

STATEMENT OF NET REVENUE FOR THE YEAR ENDED DECEMBER 31, 2021 (In Thousands of New Taiwan Dollars, Unless Stated Otherwise)

Item Quantity Unit Multimedia IC 22,332 Thousand Other Sales allowance	Amount $ 1,575,401 71,108 1,646,509 (126,367) $ 1,520,142

STATEMENT 11

SUNPLUS TECHNOLOGY COMPANY LIMITED

STATEMENT OF COST REVENUE FOR THE YEAR ENDED DECEMBER 31, 2021 (In Thousands of New Taiwan Dollars)

Item
Raw material, beginning of year

Raw material purchased
Transferred to expenses
Raw materials, end of year

Raw materials used
Direct labor
Manufacturing expenses

Manufacturing costs
Work in progress, beginning of year
Transferred to expenses
Work in progress, end of year

Cost of finished goods
Finished goods, beginning of year
Finished goods purchased
Transferred to expenses
Finished goods, end of year

Total

Amount
$ 58,155
678,311
(1,187)
(214,668)
520,611
7,956

396,141
924,708
159,392
(2,059)
(195,671)
886,370
83,183
22,174
(627)
(123,892)
$ 867,208

STATEMENT 12

SUNPLUS TECHNOLOGY COMPANY LIMITED

STATEMENT OF OPERATING EXPENSES FOR THE YEAR ENDED DECEMBER 31, 2021 (In Thousands of New Taiwan Dollars)

	Selling and	General and	General and	Research and	Research and
	Marketing	Administrative		Development
Item	Expenses	Expenses		Expenses
Royalty	$ 209,184	$	-	$	2,252
Salary	6,252		86,276		358,600
Depreciation	441		27,795		54,025
Professional service fees	7		17,385		746
Amortization	-		1,477		88,801
Remuneration of directors	-		20,555		-
Design fee	-		-		77,802
Others (Note)	18,211		48,830		247,405
Total	$ 234,095	$	202,318	$	829,631

Note: The amount of each item in others does not exceed 5% of the account balance.

STATEMENT 13

SUNPLUS TECHNOLOGY COMPANY LIMITED

STATEMENT OF LABOR, DEPRECIATION AND AMORTIZATION BY FUNCTION FOR THE YEARS ENDED DECEMBER 31, 2021 AND 2019 (In Thousands of New Taiwan Dollars, Unless Stated Otherwise)

Labor cost Salary Labor and health insurance Pension Remuneration of directors Others Total Depreciation Amortization				For the Year Ended December 31	For the Year Ended December 31	For the Year Ended December 31
			2021	Total $ 480,940 37,248 22,262 20,555 14,872 $ 575,877 $ 85,476 $ 90,302			2020
		Classified as Operating Cost $ 29,812 2,915 1,532 - 1,384 $ 35,643 $ 3,215 $ 24	Classified as Operating Expenses $ 451,128 34,333 20,730 20,555 13,488 $ 540,234 $ 82,261 $ 90,278			Classified as Operating Cost $ 34,585 3,140 1,869 - 1,510 $ 41,104 $ 3,689 $ -	Classified as Operating Expenses $ 421,803 29,037 19,340 6,862 11,676 $ 488,718 $ 84,932 $ 51,838	Total $ 456,388 32,177 21,209 6,862 13,186 $ 529,822 $ 88,621 $ 51,838

Note 1: For the years ended December 31, 2021 and 2020, the Company had 344 and 324 employees on average, respectively, which included 6 directors who did not serve concurrently as employees for both years.

Note 2: Companies whose stocks are listed on the stock exchange or listed on the stock counter trading center should disclose the following information:
1) The average employee welfare expense for the current year is 1,643 thousand (“Total employee welfare expenses for the current year-Total directors’ remuneration”/“Number of employees for the current year-Number of directors who are not concurrent employees”).
- The average employee welfare expense for the current year is 1,645 thousand (“Total employee welfare expenses for the current year-Total directors’ remuneration”/“Number of employees for the current year-Number of directors who are not concurrent employees”).
2) The average employee salary expenses for the current year is 1,423 thousand (the total salary expenses for the current year/“the number of employees in the current year-the number of directors who are not part-time employees”).

The average employee salary expenses for the current year is 1,435 thousand (the total salary expenses for the current year/“the number of employees in the current year-the number of directors who are not part-time employees”).

3) Changes in the average employee salary expense adjustment (1)% (“Average employee salary expense for the current year-Average employee salary expense for the previous year”/Average employee salary expense for the previous year).
4) The Company has established an audit committee on 2015, and the remuneration of independent directors has been included in the remuneration of directors.
5) Compensation and Remuneration Policy.
a. Remuneration of directors is paid at prevailing rates according to the “Directors’ Remuneration and Travel Allowance Policy of the Company”. When the Company make a profit, the compensation and remuneration of directors is accrued and reviewed by the compensation committee and the board of directors according to the Company’s compensation and remuneration policy. The compensation arrangement shall be reported in the shareholders’ meeting.
b. The compensation and remuneration of the President and Vice Presidents of the Company is determined in accordance with the Company’s Performance Management Policy. Executives’ compensation packages are based on individual performance and their contribution to the Company’s overall performance with benchmarking to market compensation surveys. The compensation committee shall review the KPIs and measurements, followed by performance appraisal, and consequently reward the executives with the approval of the board of directors.
c. The Company’s remuneration policy takes into account the staff’s professional seniority, work performance, goal achievement, major contributions, etc. The director of the center completes the performance appraisal, which is divided into excellent, good, competent, and qualitative comments for improvement, which are approved by the chief executive officer.

AI assistant

SUNPLUS — Audit Report / Information 2021

52056_rns_2021-11-12_653257b0-d26b-4807-a82b-fc7b28ac3530.pdf

Sunplus Technology Company Limited

Financial Statements for the Years Ended December 31, 2021 and 2020 and Independent Auditors’ Report

INDEPENDENT AUDITORS’ REPORT

Opinion

Basis for Opinion

Key Audit Matters

Occurrence of Revenue from Specific Customers

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

Auditors’ Responsibilities for the Audit of the Financial Statements

Notice to Readers

SUNPLUS TECHNOLOGY COMPANY LIMITED

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

SUNPLUS TECHNOLOGY COMPANY LIMITED

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

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

STATEMENTS OF CHANGES IN EQUITY FOR THE YEARS ENDED DECEMBER 31, 2021 AND 2020 (In Thousands of New Taiwan Dollars)

SUNPLUS TECHNOLOGY COMPANY LIMITED

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

SUNPLUS TECHNOLOGY COMPANY LIMITED

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

SUNPLUS TECHNOLOGY COMPANY LIMITED

1. GENERAL INFORMATION

2. APPROVAL OF FINANCIAL STATEMENTS

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

4. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

h. Intangible assets

i. Financial assets at FVTPL

Revenue from the sale of goods

m. Leases

1) The Company as lessor

2) The Company as lessee

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. TRADE RECEIVABLE, NET

Trade receivables

December 31, 2021

9. INVENTORIES

10. NON-CURRENT ASSETS HELD FOR SALE

11. INVESTMENTS ACCOUNTED FOR USING THE EQUITY METHOD

a. Investments in subsidiaries

b. Investments in associates

12. PROPERTY, PLANT AND EQUIPMENT

Assets used by the Company

13. LEASE ARRANGEMENTS

a. Right-of-use assets

b. Lease liabilities

c. Material lease-in activities and terms

d. Other lease information

14. INTANGIBLE ASSETS

15. OTHER ASSETS

16. BORROWINGS

17. ACCOUNTS AND NOTES PAYABLE

18. OTHER LIABILITIES

19. RETIREMENT BENEFIT PLANS

Defined contribution plan

Defined benefit plans

20. EQUITY

1) Ordinary shares:

2) Global depositary receipts

b. Capital surplus

21. REVENUE

a. Contract information

Other

22. NET PROFIT

a. Interest income

b. Other income

c. Other gains and losses

d. Finance costs

e. Depreciation and amortization

f. Employee benefit expense

g. Employees’ compensation and remuneration of directors

Accrual rate

Amount

SUNPLUS Audit Report / Information 2021