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SUNPLUS Interim / Quarterly Report 2021

Nov 12, 2021

52056_rns_2021-11-12_6cea0604-1d6f-49cf-a6d6-549268706c00.pdf

Interim / Quarterly Report

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Sunplus Technology Company Limited and Subsidiaries

Consolidated Financial Statements for the Three Months Ended March 31, 2021 and 2020 and Independent Auditors’ Review Report

INDEPENDENT AUDITORS’ REVIEW REPORT

The Board of Directors and Shareholders Sunplus Technology Company Limited

Introduction

We have reviewed the accompanying consolidated balance sheets of Sunplus Technology Company Limited (the “Company”) and its subsidiaries (collectively, the “Group”) as of March 31, 2021 and 2020, and the related consolidated statements of comprehensive income, the consolidated statements of changes in equity and cash flows for the three months then ended, and the related notes to the consolidated financial statements, including a summary of significant accounting policies (collectively referred to as the “consolidated financial statements”). Management is responsible for the preparation and fair presentation of the consolidated financial statements in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers, and International Accounting Standard 34 “Interim Financial Reporting” endorsed and issued into effect by the Financial Supervisory Commission of the Republic of China. Our responsibility is to express a conclusion on the consolidated financial statements based on our reviews.

Scope of Review

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

Basis for Qualified Conclusion

As disclosed in Note 11 to the consolidated financial statements, the financial statements of some non-significant subsidiaries included in the consolidated financial statements referred to in the first paragraph were not reviewed. As of March 31, 2021 and 2020, combined total assets of these non-significant subsidiaries were $3,152,485 thousand and $4,140,467 thousand, respectively, representing 24% and 37%, respectively, of the consolidated total assets, and combined total liabilities of these subsidiaries were $90,127 thousand and $351,452 thousand, respectively, representing 3% and 21%, respectively, of the consolidated total liabilities. For the three months ended March 31, 2021 and 2020, the amounts of combined comprehensive income (loss) of these subsidiaries were $210,177 thousand and $(31,842) thousand, respectively, representing 64% and 19%, respectively, of the consolidated total comprehensive income (loss). In addition, as disclosed in Note 12 to the consolidated financial statements, the cumulative carrying amounts of some associates as of March 31, 2021 and 2020 were $904,030 thousand and $690,537 thousand, respectively. For the three months ended March 31, 2021 and 2020, the share of total comprehensive income (loss) of some associates accounted for using the equity method were

  • 1 -

$(3,374) thousand and $(5,712) thousand, respectively. These investment amounts disclosed in the consolidated financial statements were based on these associates’ unreviewed financial statements for the same reporting periods as those of the Company.

Qualified Conclusion

Based on our reviews, except for the adjustments, if any, as might have been determined to be necessary had the financial statements of the non-significant subsidiaries as described in the preceding paragraph been reviewed, nothing has come to our attention that caused us to believe that the accompanying consolidated financial statements do not present fairly, in all material respects, the consolidated financial position of the Group as of March 31, 2021 and 2020, and its consolidated financial performance and its consolidated cash flows for the three months then ended in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and International Accounting Standard 34 “Interim Financial Reporting” endorsed and issued into effect by the Financial Supervisory Commission of the Republic of China.

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

Deloitte & Touche Taipei, Taiwan Republic of China

May 14, 2021

Notice to Readers

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

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

  • 2 -

SUNPLUS TECHNOLOGY COMPANY LIMITED AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS (In Thousands of New Taiwan Dollars)

ASSETS
CURRENT ASSETS
Cash and cash equivalents (Note 6)

Financial assets at fair value through profit or loss - current (Note 7)
Notes receivable and trade receivables, net (Notes 9, 23 and 33)
Other receivables (Note 33)
Inventories (Note 10)
Other financial assets - current (Notes 17 and 34)
Other current assets (Notes 17 and 33)

Total current assets

NON-CURRENT ASSETS
Financial assets at fair value through profit or loss - non-current (Note 7)
Financial assets at fair value through other comprehensive income (FVTOCI) -
non-current (Note 8)
Investments accounted for using the equity method (Note 12)
Property, plant and equipment (Notes 13 and 34)
Right-of-use assets (Note 14)
Investment properties (Note 15)
Intangible assets (Note 16)
Deferred tax assets (Notes 4 and 25)
Net defined benefit assets - non-current (Notes 4 and 21)
Other financial assets non-current (Notes 17 and 34)
Other non-current assets (Note 17)

Total non-current assets

TOTAL

LIABILITIES AND EQUITY
CURRENT LIABILITIES
Short-term borrowings (Notes 18 and 34)

Contract liabilities - current (Note 23)
Accounts payable (Note 19)
Current tax liabilities (Notes 4 and 25)
Lease liabilities - current (Note 14)
Deferred revenue - current (Notes 20 and 28)
Current portion of long-term bank borrowings (Note 18)
Other current liabilities (Note 20)

Total current liabilities

NON-CURRENT LIABILITIES
Long-term borrowings (Note 18)
Lease liabilities - non-current (Note 14)
Deferred revenue - non-current (Notes 20 and 28)
Net defined benefit liabilities - non-current (Notes 4 and 21)
Guarantee deposits
Other liabilities (Note 20)

Total non-current liabilities

Total liabilities

EQUITY ATTRIBUTABLE TO OWNERS OF THE COMPANY (Note 22)
Share capital
Ordinary shares

Capital surplus

Retained earnings
Legal reserve
Special reserve
Unappropriated earnings (accumulated deficit)

Total retained earnings

Other equity

Treasury shares

Total equity attributable to owners of the Company
NON-CONTROLLING INTERESTS (Notes 11, 22 and 30)

Total equity

TOTAL
 March 31, 2021
(Reviewed)
Amount
%
$ 3,333,693 26
1,190,930
9
1,034,845
8
50,579
-
1,000,242
8
177,733
1

99,245

1


6,887,267
53

1,160,136
9
214,771
2
904,030
7
1,948,088 15
225,802
2
990,693
7
352,220
3
31,827
-
4,440
-
272,638
2

53,873

-


6,158,518
47

$ 13,045,785
100

$ 289,286
2
24,905
-
510,220
4
213,675
2
12,396
-
21,452
-
50,000
-

601,599

5


1,723,533
13

380,000
3
216,689
2
57,390
-
60,335
1
224,520
2

23,098

-


962,032

8


2,685,565
21


5,919,949
45


501,727

4

1,712,390 13
276,189
2

546,469

4


2,535,048
19


(249,598)

(2)


(63,401)

-

8,643,725 66

1,716,495
13


10,360,220
79

$ 13,045,785
100
 December 31, 2020
(Audited)
Amount
%
$ 3,400,482 27

901,857
7

1,204,798 10

57,982
-

861,050
7

240,334
2

111,438

1


6,777,941
54


1,064,261
8

192,528
1

719,696
6

1,971,252 16

229,277
2

1,015,544
8

328,591
3

33,037
-

4,440
-

272,167
2

11,855

-


5,842,648
46

$ 12,620,589
100

$ 314,209
3

26,181
-

450,216
4

155,138
1

12,506
-

46,098
1

25,000
-

795,324

6


1,824,672
15


205,000
2

219,510
2

58,300
-

60,319
-

219,942
2

13,845

-


776,916

6


2,601,588
21


5,919,949
47


500,820

4


1,712,390 13

276,189
2

328,894

3


2,317,473
18


(261,078)

(2)


(63,401)

(1)


8,413,763 66

1,605,238
13


10,019,001
79

$ 12,620,589
100
 March 31, 2020
(Reviewed)		 March 31, 2020
(Reviewed)




















Amount
$ 3,333,693
1,190,930
1,034,845
50,579
1,000,242
177,733

99,245


6,887,267

1,160,136
214,771
904,030
1,948,088
225,802
990,693
352,220
31,827
4,440
272,638

53,873


6,158,518

$ 13,045,785

$ 289,286
24,905
510,220
213,675
12,396
21,452
50,000

601,599


1,723,533

380,000
216,689
57,390
60,335
224,520

23,098


962,032


2,685,565


5,919,949


501,727

1,712,390
276,189

546,469


2,535,048


(249,598)


(63,401)

8,643,725

1,716,495


10,360,220

$ 13,045,785
















































Amount
$ 3,400,482

901,857

1,204,798

57,982

861,050

240,334

111,438


6,777,941


1,064,261

192,528

719,696

1,971,252

229,277

1,015,544

328,591

33,037

4,440

272,167

11,855


5,842,648

$ 12,620,589

$ 314,209

26,181

450,216

155,138

12,506

46,098

25,000

795,324


1,824,672


205,000

219,510

58,300

60,319

219,942

13,845


776,916


2,601,588


5,919,949


500,820


1,712,390

276,189

328,894


2,317,473


(261,078)


(63,401)


8,413,763

1,605,238


10,019,001

$ 12,620,589
















































Amount
$ 2,751,965

987,783

752,414

38,280

919,797

120,900

89,750


5,660,889


1,028,241

154,221

690,537

1,981,737

238,284

1,036,809

165,533

28,245

1,163

138,563

14,024


5,477,357

$ 11,138,246

$ 251,656

23,700

388,413

62,325

11,676

1,550

-

400,715


1,140,035


-

227,601

56,954

64,091

210,762

13,841


573,249


1,713,284


5,919,949


599,862


1,942,388

308,452

(386,898)


1,863,942


(317,591)


(63,401)


8,002,761

1,422,201


9,424,962

$ 11,138,246
 %
25

9

7

-

8

1

1
51

9

2

6
18

2

9

2

-

-

1

-
49
100

2

-

3

1

-

-

-

4
10

-

2

-

1

2

-

5
15
53

5
17

3

(3)
17

(3)

-
72
13
85
100

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

(With Deloitte & Touche auditors’ review report dated May 14, 2021)

  • 3 -

SUNPLUS TECHNOLOGY COMPANY LIMITED AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (In Thousands of New Taiwan Dollars, Except Earnings Per Share) (Reviewed, Not Audited)

NET OPERATING REVENUE (Notes 23 and 33)

OPERATING COSTS (Notes 10 and 24)

GROSS PROFIT

OPERATING EXPENSES (Notes 24 and 33)
Selling and marketing expenses
General and administrative expenses
Research and development expenses
Expected credit loss

Total operating expenses

OTHER EXPENSES

PROFIT (LOSS) FROM OPERATIONS

NON-OPERATING INCOME AND EXPENSES
(Notes 14, 24, 28 and 33)
Interest income
Other income
Other gains and losses
Finance costs
Share of loss of associates

Total non-operating income and expenses

INCOME (LOSS) BEFORE INCOME TAX
INCOME TAX EXPENSE (Notes 4 and 25)

NET PROFIT (LOSS) FOR THE PERIOD

OTHER COMPREHENSIVE INCOME (LOSS)
Items that will not be reclassified subsequently to
profit or loss (Note 22):
Unrealized gain (loss) on investments in equity
instruments at fair value through other
comprehensive income
Share of the other comprehensive income (loss) of
associates accounted for using the equity
method		 **Three Months Ended March 31 ** **Three Months Ended March 31 ** **Three Months Ended March 31 ** **Three Months Ended March 31 **
2021 %
100
50

50

5
8
30
-

43

-

7

1
2
13

-
-

16

23
4

19

-
1		 2020










Amount
$ 1,698,327


854,347


843,980

83,576
134,500
504,019


73


722,168


(252)


121,560

6,855
38,661
222,687

(3,473)

(3,374)


261,356

382,916


65,437


317,479

7,938
15,341



















Amount
%
$ 1,034,178
100

553,934
54

480,244
46

55,586
5

109,604
11

363,100
35

3

-

528,293
51

(117)

-

(48,166)
(5)

7,039
1

11,598
1

(52,254) (5)

(4,304)
-

(5,712)
(1)

(43,633)
(4)

(91,799) (9)

13,955

1

(105,754)
(10)

(35,332) (3)

(6,478) (1)
(Continued)
  • 4 -

SUNPLUS TECHNOLOGY COMPANY LIMITED AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (In Thousands of New Taiwan Dollars, Except Earnings Per Share) (Reviewed, Not Audited)

Items that may be reclassified subsequently to profit
or loss (Note 22):
Exchange differences on translation of the
financial statements of foreign operations

Share of other comprehensive loss of associates
accounted for using the equity method

Other comprehensive income (loss) for the
period, net of income tax

TOTAL COMPREHENSIVE INCOME (LOSS) FOR
THE PERIOD

NET PROFIT (LOSS) ATTRIBUTABLE TO:
Owners of the Company

Non-controlling interests


TOTAL COMPREHENSIVE INCOME (LOSS)
ATTRIBUTABLE TO:
Owners of the Company

Non-controlling interests



EARNINGS (LOSS) PER SHARE (Note 26)

From continuing operations

Basic

Diluted
 **Three Months Ended March 31 ** **Three Months Ended March 31 ** **Three Months Ended March 31 ** **Three Months Ended March 31 **
2021 %
(1)
-

-

19

13
6

19

13
6

19





 2020














Amount
$ (14,053)

(504)


8,722

$ 326,201

$ 217,575


99,904

$ 317,479

$ 229,055


97,146

$ 326,201

$ 0.37
$ 0.37













Amount
$ (16,736)

(859)


(59,405)

$ (165,159)

$ (124,637)

18,883

$ (105,754)

$ (181,202)

16,043

$ (165,159)

$ (0.21)
$ (0.21)		 %
(2)
-
(6)
(16)
(12)
2
(10)
(18)
2
(16)

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

(With Deloitte & Touche auditors’ review report dated May 14, 2021)

(Concluded)

  • 5 -

SUNPLUS TECHNOLOGY COMPANY LIMITED AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (In Thousands of New Taiwan Dollars, Unless Stated Otherwise) (Reviewed, Not Audited)


BALANCE AT JANUARY 1, 2020
Changes in capital surplus from investments in associates
accounted for using the equity method
Net profit (loss) for the three months ended March 31, 2020
Other comprehensive loss for the three months ended March 31,
2020, net of income tax

Total comprehensive income (loss) for the three months ended
March 31, 2020

Increase in non-controlling interests

BALANCE AT MARCH 31, 2020

BALANCE AT JANUARY 1, 2021
Changes in capital surplus from investments in associates
accounted for using the equity method
Net profit for the three months ended March 31, 2021
Other comprehensive income (loss) for the three months ended
March 31, 2021, net of income tax

Total comprehensive income (loss) for the three months ended
March 31, 2021

Increase in non-controlling interests

BALANCE AT MARCH 31, 2021
 Equity Attributable to Owners of the Company Equity Attributable to Owners of the Company Non-controlling
Total
Interests
$ 8,178,533
$ 1,394,158

5,430
-
(124,637)
18,883

(56,565)

(2,840)


(181,202)

16,043


-

12,000

$ 8,002,761
$ 1,422,201

$ 8,413,763
$ 1,605,238

907
-
217,575
99,904

11,480

(2,758)


229,055

97,146


-

14,111

$ 8,643,725
$ 1,716,495
 Total
Equity
$ 9,572,691
5,430
(105,754)

(59,405)

(165,159)

12,000
$ 9,424,962
$ 10,019,001
907
317,479

8,722

326,201

14,111
$ 10,360,220
Share Capital Issued and
Outstanding
Shares
Share
(In Thousand)
Capital
591,995
$ 5,919,949

-
-
-
-

-

-


-

-


-

-


591,995
$ 5,919,949

591,995
$ 5,919,949

-
-
-
-

-

-


-

-


-

-


591,995
$ 5,919,949
 Capital
Surplus

$ 594,432

5,430
-

-


-


-

$ 599,862

$ 500,820

907
-

-


-


-

$ 501,727
Retained Earnings

Unappropriated
Earnings

(Accumulated
Legal Reserve Special Reserve
Deficit)
$ 1,942,388
$ 308,452
$ (262,261)
-
-
-
-
-
(124,637)

-

-

-


-

-

(124,637)


-

-

-

$ 1,942,388
$ 308,452
$ (386,898)

$ 1,712,390
$ 276,189
$ 328,894

-
-
-
-
-
217,575

-

-

-


-

-

217,575


-

-

-

$ 1,712,390
$ 276,189
$ 546,469
 Other Equity
Exchange
Unrealized
Differences on
Losses from
Translation of Investments in

the Financial
Equity
Statements of
Instruments

Foreign
Measured at
Operations
FVTOCI
$ (218,780) $ (42,246)
-
-

-
-

(14,755)

(41,810)


(14,755)

(41,810)


-

-

$ (233,535)
$ (84,056)

$ (228,023) $ (33,055)
-
-
-
-

(12,602)

24,082


(12,602)

24,082


-

-

$ (240,625)
$ (8,973)
 Treasury
Shares
$ (63,401)
-
-

-


-


-

$ (63,401)

$ (63,401)
-
-

-


-


-

$ (63,401)
Shares
(In Thousand)
591,995

-
-

-


-


-


591,995

591,995

-
-

-


-


-


591,995

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

(With Deloitte & Touche auditors’ review report dated May 14, 2021)

  • 6 -

SUNPLUS TECHNOLOGY COMPANY LIMITED AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS (In Thousands of New Taiwan Dollars) (Reviewed, Not Audited)


CASH FLOWS FROM OPERATING ACTIVITIES
Income (loss) before income tax

Adjustments for:
Depreciation expense
Amortization expense
Expected credit loss
Net (gain) loss on fair value changes of financial assets at fair value
through profit or loss
Finance costs
Interest income
Dividend income
Compensation costs of share-based payments
Share of profit of associates
Loss on disposal of property, plant and equipment
Unrealized loss on transactions with associates
Net loss on foreign currency exchange
Changes in operating assets and liabilities:
Decrease in trade receivables
Increase in other receivables
Increase in inventories
Decrease (increase) in other current assets
Decrease in contract liabilities
Increase in trade payables
Decrease in deferred revenue
Decrease in other current liabilities
Increase (decrease) in defined benefits liabilities - non current

Cash generated from (used in) operations
Interest received
Dividend received
Interest paid
Income tax paid

Net cash generated from (used in) operating activities

CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of financial assets at FVTOCI
Purchase of financial assets at FVTPL
Proceeds from sale of financial assets at FVTPL
Acquisition of associates
Prepayments for investments
Payments for property, plant and equipment
Proceeds from disposal of property, plant and equipment
Increase in refundable deposits		 Three Months Ended March 31 Three Months Ended March 31



2021
$ 382,916
74,556
31,761
73
(225,837)
3,473
(6,855)
(150)
14,111
3,374
252
2,170
10,639
162,038
(3,583)
(139,192)
1,805
(1,276)
62,114
(25,120)
(200,760)
16

146,525
6,245
647
(4,510)
(5,690)

143,217

(14,183)
(425,687)
276,185
(174,000)
(42,000)
(29,819)
-
(96)		 2020
$ (91,799)

75,510

18,756

3

48,660

4,304

(7,039)

(11)

-

5,712

117

-

10,107

80,220

(9,064)

(160,586)

(885)

(1,212)

35,395

(392)

(187,150)
(167)

(179,521)

6,518

-

(6,094)
(3,288)
(182,385)

-

(205,644)

257,042

(2,500)

-

(60,525)

30

-
(Continued)
  • 7 -

SUNPLUS TECHNOLOGY COMPANY LIMITED AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS (In Thousands of New Taiwan Dollars) (Reviewed, Not Audited)


Decrease in refundable deposits

Payments for intangible assets
Decrease (increase) in other financial assets

Net cash used in investing activities

CASH FLOWS FROM FINANCING ACTIVITIES
Repayments of short-term borrowings
Proceeds from long-term borrowings
Proceeds from guarantee deposits received
Refund of guarantee deposits received
Repayments of the principal portion of lease liabilities
Increase in other liabilities
Decrease in non-controlling interests

Net cash generated from (used in) financing activities

EFFECTS OF EXCHANGE RATE CHANGES ON THE BALANCE
OF CASH HELD IN FOREIGN CURRENCIES

NET DECREASE IN CASH AND CASH EQUIVALENTS
CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE
PERIOD

CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD		 Three Months Ended March 31 Three Months Ended March 31







2021
$ 82
(36,768)
60,417

(385,869)

(23,114)
200,000
4,288
(4,577)
(2,931)
1,180
-

174,846

1,017

(66,789)
3,400,482

$ 3,333,693
 2020
$ 23

(8,668)
(3,779)
(24,021)

(72,272)

-

3,647

(4,605)

(2,859)

1,084
12,000
(63,005)
748

(268,663)
3,020,628
$ 2,751,965

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

(With Deloitte & Touche auditors’ review report dated May 14, 2021) (Concluded)

  • 8 -

SUNPLUS TECHNOLOGY COMPANY LIMITED AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS THREE MONTHS ENDED MARCH 31, 2021 AND 2020 (In Thousands of New Taiwan Dollars, Unless Stated Otherwise) (Reviewed, Not Audited)

1. GENERAL INFORMATION

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

Following is a diagram of the relationship and ownership percentages between the Company and its subsidiaries (collectively, the “Group”) as of March 31, 2021.

==> picture [508 x 291] intentionally omitted <==

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

Sunplus Technology
Company
13.69%
2.09%
100% 100% 100% 100% 100% 100% 100% 55% 92.55% 58.21% 34.30% 100% 100% 100%
Award Glory Management ConsultingSunplus Ventureplus Sunplus HK Sunplus Venture Lin Shih mMobile Sunplus Technology Jumplux Sunext Innovation Sunplus Generalplus Wei-Young Russell Magic Sky
100% 100% 42.08% 5.64% 100%
Generalplus
Sunny Fancy Ventureplus Mauritius 62.50% Samoa
Genki Tek 7.64% Sunplus 100%
100% 100% 100% 100% 100% 2.60% mMedia Generalplus Mauritius
Giant Giant Giant Ventureplus
Worldplus Cayman
Best Kingdom Rock
44.85%
100% 100%
Generalplus Generalplus
100% 100% 51.47% 100% 100% 100% Shenzhen HK
Technology Co., Ltd. Lingyao Technology (Beijing) Sunplus Sunplus App Technology Co., Ltd. (Shenzhen) Sunplus Prof-tek Shanghai Sunplus Technology SunMedia 89.76%
(Shenzhen) 43.33% 56.67%
100%
Chongqing Jsilicon
CQPlus1 Technology Co.,
Technology Co., Ltd.
Ltd.
----- End of picture text -----

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

2. APPROVAL OF FINANCIAL STATEMENTS

The consolidated financial statements were approved by the Group’s board of directors and authorized for issue on May 14, 2021.

  • 9 -

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 Group’s accounting policies.

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

Effective Date New IFRSs Announced by IASB (Note 1) “Annual Improvements to IFRS Standards 2018–2020” January 1, 2022 (Note 2) Amendments to IFRS 3 “Reference to the Conceptual Framework” January 1, 2022 (Note 3) Amendments to IFRS 10 and IAS 28 “Sale or Contribution of Assets To be determined by IASB between An Investor and Its Associate or Joint Venture” IFRS 17 “Insurance Contracts” January 1, 2023 Amendments to IFRS 17 January 1, 2023 Amendments to IAS 1 “Classification of Liabilities as Current or January 1, 2023 Non-current” Amendments to IAS 1 “Disclosure of Accounting Policies” January 1, 2023 (Note 6) Amendments to IAS 8 “Definition of Accounting Estimates” January 1, 2023 (Note 7) Amendments to IAS 12 “Deferred Tax related to Assets and January 1, 2023 (Note 8) Liabilities arising from a Single Transaction” Amendments to IAS 16 “Property, Plant and Equipment - Proceeds January 1, 2022 (Note 4) before Intended Use” Amendments to IAS 37 “Onerous Contracts-Cost of Fulfilling a January 1, 2022 (Note 5) Contract”

  • Note 1: Unless stated otherwise, the above New IFRSs are effective for annual reporting periods beginning on or after their respective effective dates.

  • Note 2: The amendments to IFRS 9 will be applied prospectively to modifications and exchanges of financial liabilities that occur on or after the annual reporting periods beginning on or after January 1, 2022. The amendments to IAS 41 “Agriculture” will be applied prospectively to the fair value measurements on or after the annual reporting periods beginning on or after January 1, 2022. The amendments to IFRS 1 “First-time Adoptions of IFRSs” will be applied retrospectively for annual reporting periods beginning on or after January 1, 2022.

  • Note 3: The amendments are applicable to business combinations for which the acquisition date is on or after the beginning of the annual reporting period beginning on or after January 1, 2022.

  • Note 4: The amendments are applicable to property, plant and equipment that are brought to the location and condition necessary for them to be capable of operating in the manner intended by management on or after January 1, 2021.

  • Note 5: The amendments are applicable to contracts for which the entity has not yet fulfilled all its obligations on January 1, 2022.

  • Note 6: The amendments will be applied prospectively for annual reporting periods beginning on or after January 1, 2023.

  • 10 -

  • Note 7: The amendments are applicable to changes in accounting estimates and changes in accounting policies that occur on or after the beginning of the annual reporting period beginning on or after January 1, 2023.

  • Note 8: Except for deferred taxes that will be recognized on January 1, 2022 for temporary differences associated with leases and decommissioning obligations, the amendments will be applied prospectively to transactions that occur on or after January 1, 2022.

  • 1) Amendments to IFRS 10 and IAS 28 “Sale or Contribution of Assets between an Investor and its Associate or Joint Venture”

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

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

  • 2) Amendments to IAS 1 “Classification of Liabilities as Current or Non-current”

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

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

3) Amendments to IAS 1 “Disclosure of Accounting Policies”

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

  • accounting policy information that relates to immaterial transactions, other events or conditions is immaterial and need not be disclosed;

  • the Group may consider the accounting policy information as material because of the nature of the related transactions, other events or conditions, even if the amounts are immaterial; and

  • 11 -

  • not all accounting policy information relating to material transactions, other events or conditions is itself material.

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

  • a) the Group changed its accounting policy during the reporting period and this change resulted in a material change to the information in the financial statements;

  • b) the Group chose the accounting policy from options permitted by the standards;

  • c) the accounting policy was developed in accordance with IAS 8 “Accounting Policies, Changes in Accounting Estimates and Errors” in the absence of an IFRS that specifically applies;

  • d) the accounting policy relates to an area for which the Group is required to make significant judgments or assumptions in applying an accounting policy, and the Group discloses those judgments or assumptions; or

  • e) the accounting is complex and users of the financial statements would otherwise not understand those material transactions, other events or conditions.

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

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

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

4. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

a. Statement of compliance

These interim consolidated financial statements have been prepared in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers, or other regulations and IAS 34 “Interim Financial Reporting” as endorsed and issued into effect by the FSC. Disclosure information included in these interim consolidated financial statements is less than the disclosure information required in a complete set of annual consolidated financial statements.

b. Basis of preparation

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

  • 12 -

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 an 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 an asset or liability.

  • c. Basis of consolidation

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

Income and expenses of subsidiaries acquired or disposed of during the period are included in the consolidated statement of profit or loss and other comprehensive income from the effective dates of acquisitions up to the effective dates of disposals, as appropriate.

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

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

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

When the Group loses control of a subsidiary, a gain or loss is recognized in profit or loss and is calculated as the difference between (i) the aggregate of the fair value of the consideration received and any investment retained in the former subsidiary at its fair value at the date when control is lost and (ii) the assets (including any goodwill) and liabilities and any non-controlling interests of the former subsidiary at their carrying amounts at the date when control is lost. The Group accounts for all amounts recognized in other comprehensive income in relation to that subsidiary on the same basis as would be required had the Group directly disposed of the related assets or liabilities.

The fair value of any investment retained in the former subsidiary at the date when control is lost is regarded as the fair value on initial recognition of the cost on initial recognition of an investment in an associate.

See Note 11 and Tables 5 and 6 for detailed information on subsidiaries (including percentages of ownership and main businesses).

  • d. Other significant accounting policies

Except for the following, please refer to the consolidated financial statements for the year ended December 31, 2020.

  • 13 -

1) Retirement benefits

Pension cost for an interim period is calculated on a year-to-date basis by using the actuarially determined pension cost rate at the end of the prior financial year, adjusted for significant market fluctuations since that time and for significant plan amendments, settlements, or other significant one-off events.

  • 2) Taxation

Income tax expense represents the sum of the tax currently payable and deferred tax. Interim period income taxes are assessed on an annual basis and calculated by applying to an interim period's pre-tax income the tax rate that would be applicable to expected total annual earnings.

5. CRITICAL ACCOUNTING JUDGMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY

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

The Group considers the economic implications of the COVID-19 when making its critical accounting estimates. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the period in which the estimates are revised if the revisions affect only that period or in the period of the revisions and future periods if the revisions affect both current and future periods. Refer to the consolidated financial statements with critical accounting judgments and key sources of estimation uncertainty for the year ended December 31, 2020.

6. CASH AND CASH EQUIVALENTS

March 31, December 31, December 31, March 31,
2021 2020 2020
Cash on hand $
5,630		 $ 5,781
 $
6,266
Checking accounts and demand deposits 943,384 1,168,558 774,652
Cash equivalents
Time deposits in banks 2,384,679 2,226,143
 1,971,047
$ 3,333,693 $ 3,400,482
 $ 2,751,965

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

March 31, December 31, March 31,
2021 2020 2020
Bank balances 0.001%-2.025% 0.001%-2.025% 0.01%-2.10%
  • 14 -

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

Financial assets at FVTPL-current

Financial assets classified as at FVTPL
Non-derivative financial assets
Domestic and foreign investments
- Mutual funds

- Unlisted shares
- Listed shares
Hybrid financial assets
Domestic and foreign investments
- Listed convertible bonds


Financial liabilities at FVTPL-non-current
Financial assets classified as at FVTPL
Non-derivative financial assets
Domestic and foreign investments
- Unlisted shares

- Limited partnership
- Listed shares
- Mutual funds

 March 31,
2021
December 31,
2020

$ 763,507
$ 641,575

258,171
204,719
168,277
52,743

975

2,820

$ 1,190,930
$ 901,857

$ 776,270
$ 686,366

327,352
327,856
41,850
35,190

14,664

14,849

$ 1,160,136
$ 1,064,261
 March 31,
2020
$ 848,468
22,950
97,291

19,074
$ 987,783
$ 648,141
274,974
30,960

74,166
$ 1,028,241

8. FINANCIAL ASSETS AT FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME

Non-current

Domestic and foreign investments
Unlisted shares

Listed shares

 March 31,
2021
December 31,
2020

$ 121,255
$ 99,767

93,516

92,761

$ 214,771
$ 192,528
 March 31,
2020
$ 97,710
56,511
$ 154,221
  • 15 -

9. NOTES RECEIVABLE AND TRADE RECEIVABLES, NET

Trade receivables
At amortized cost
Gross carrying amount

Less: Allowance for impairment loss

 March 31,
2021
December 31,
2020



$ 1,034,884
$ 1,204,901


(39)

(103)


$ 1,034,845
$ 1,204,798
 March 31,
2020
$ 752,742

(328)
$ 752,414

Trade receivables

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

The Group applies the simplified approach to providing for expected credit losses prescribed by IFRS 9, which permits the use of lifetime expected loss provision for all trade receivables. The expected credit losses on trade receivables are estimated using a provision matrix approach considering the past default experience of the debtor and an analysis of the debtor’s current financial position, the forecast direction of economic conditions at the reporting date. As the Group’s historical credit loss experience does not show significantly different loss patterns for different customer segments, the provision for loss allowance based on past due status is not further distinguished according to the Group’s different customer base.

The Group writes off a trade receivable when there is information indicating that the debtor is in severe financial difficulty and there is no realistic prospect of recovery. Where recoveries are made, these are recognized in profit or loss.

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

March 31, 2021

Not Overdue
Gross carrying amount
$ 1,034,845

Loss allowance (Lifetime ECLs)

-


Amortized cost
$ 1,034,845

December 31, 2020
Not Overdue
Gross carrying amount
$ 1,204,689

Loss allowance (Lifetime ECLs)

-


Amortized cost
$ 1,204,689
 Overdue
1- 60 days
$ -


-

$ -

Overdue
1- 60 days
$ -


-

$ -
 Overdue
61-90 days
$ -


-

$ -

Overdue
61-90 days
$ -


-

$ -
 Overdue
91-120 days
Overdue 121
days or More
$ -
$ 39


-

(39)

$ -
$ -

Overdue
91-120 days
Overdue 121
days or More
$ -
$ 212


-

(103)

$ -
$ 109
 Total
$ 1,034,884

(39)
$ 1,034,845
Total
$ 1,204,901

(103)
$ 1,204,798
  • 16 -

March 31, 2020

Not Overdue
Gross carrying amount
$ 750,947

Loss allowance (Lifetime ECLs)

-


Amortized cost
$ 750,947
 Overdue
1- 60 days
$ 1,444


-

$ 1,444
 Overdue
61-90 days
$ -


-

$ -
 Overdue
91-120 days
Overdue 121
days or More
$ 16
$ 335


-

(328)

$ 16
$ 7
 Total
$ 752,742

(328)
$ 752,414

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

Balance at January 1

Add: Net remeasurement of loss allowance
Less: Amounts written off
Foreign exchange gains and losses


Balance at March 31
 For the Three Months Ended
March 31		 For the Three Months Ended
March 31		 For the Three Months Ended
March 31






2021
$ 103


73
(137)

-



$ 39

 2020
$ 329
3
-

(4)
$ 328

10. INVENTORIES

Finished goods

Work in progress
Raw materials

 March 31,
2021
December 31,
2020
$ 259,362
$ 272,677

481,964
378,943


258,916

209,430


$ 1,000,242
$ 861,050
 March 31,
2020
$ 371,439

299,872

248,486
$ 919,797

The cost of inventories recognized as cost of goods sold for the three months ended March 31, 2021 and 2020 were $833,799 thousand and $532,997 thousand, respectively.

The cost of inventories recognized as costs of goods sold for the three ended March 31, 2021 and 2020 are as follows:

Inventory reversed (write-downs)

Income from scrap sales

 For the Three Months Ended
March 31		 For the Three Months Ended
March 31		 For the Three Months Ended
March 31





2021
$ 3,595



13



$ 3,608

 2020
$ (869)

11
$ (858)
  • 17 -

11. SUBSIDIARIES

a. Subsidiaries included in the consolidated financial statements

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

Name of Investor
Name of Investee
Main Businesses and Products
Sunplus
Sunplus Management Consulting Management
Ventureplus Group Inc.
Investment
Sunplus Technology (H.K.)
International trade
Sunplus Venture
Investment
Lin Shih Investment
Investment
Sunplus mMobile Inc.
Design of ICs
Sunext Technology Co., Ltd.
Design of ICs
Sunplus Innovation Technology Design of ICs
Generalplus Technology
(“Generalplus”)
Design of ICs
Wei-Young Investment Inc.
Investment
Russell Holdings Limited
Investment
Magic Sky Limited
Investment
Sunplus mMedia Inc.
Design of ICs
Award Glory
Investment
Jumplux Technology
Design of ICs
Ventureplus
Ventureplus Mauritius Inc.
Investment
Ventureplus Mauritius Inc.
Ventureplus Cayman Inc.
Investment
Ventureplus Cayman Inc.
Ytrip Technology
Web research and development
.
Sunplus App Technology
Sale of electronic components
and information management
and education.
Sunplus Prof-tek Technology
(Shenzhen)
Development of computer
software, system integration
services and building rental
Sunplus Technology (Shanghai) Development of computer
software, system integration
services and building rental
SunMedia Technology
Development of computer
software, system integration
services and building rental
Sunplus Technology (Beijing)
Development of computer
software, system integration
services and building rental
Sunplus Technology
(Shanghai)
Ytrip Technology
Web research and development
Jsilicon Technology
Software Development and IC
Design
Chongqing CQPlus1 Technology Software Development and IC
Design
Sunplus Prof-tek
(Shenzhen)
Chongqing CQPlus1 Technology Software Development and IC
Design
Ytrip Technology
1culture Communication
Web development and sale
Sunplus Venture
Jumplux Technology
Design of ICs
Sunplus mMedia
Design of ICs
Sunplus Innovation
Design of ICs
Genki Tek
Software development		 Percentage of Ownership (%)

March 31,
2021
December 31,
2020
March 31,
2020
Note
100.00
100.00
100.00
-
100.00
100.00
100.00
-
100.00
100.00
100.00
-
100.00
100.00
100.00
-
100.00
100.00
100.00
-
100.00
100.00
100.00
-
92.55
92.55
92.55
-
58.21
58.21
61.13
-
34.30
34.30
34.30
Sunplus and its subsidiaries
had a 47.99% stake in
Generalplus Technology,
Inc. and the Group had
controlling interest over
Generalplus Technology,
Inc.; the investee is included
in the consolidated financial
statements.
100.00
100.00
100.00
-
100.00
100.00
100.00
-
100.00
100.00
100.00
-
89.76
89.76
89.76
-
100.00
100.00
100.00
-
55.00
55.00
55.00
-
100.00
100.00
100.00
-
100.00
100.00
100.00
-
-
-
38.47
Sunplus and its subsidiaries
had a 90.71% stake in Ytrip
on March 31 2020. The
liquidation of Ytrip
Technology was completed
on June 23, 2020. Please
refer to Note 29.
51.47
51.47
53.85
-
100.00
100.00
100.00
-
100.00
100.00
100.00
-
100.00
100.00
100.00
-
100.00
100.00
100.00
-
-
-
44.08
Sunplus and its subsidiaries
had a 90.71% stake in Ytrip
on March 31, 2020. The
liquidation of Ytrip
Technology was completed
on June 23, 2020. Please
refer to Note 29.
100.00
100.00
100.00
-
56.67
56.67
55.00
-
43.33
43.33
45.00
Sunplus and its subsidiaries
held 100% equity in
Chongqing CQPlus1
Technology Ltd.
-
-
100.00
The liquidation of 1Culture
Communication was
completed on May 29, 2020.
Please refer to Note 29.
42.08
42.08
42.08
Sunplus and its subsidiaries
owned 97.08% of the equity
in Jumplux Technology.
7.64
7.64
7.64
Sunplus and its subsidiaries
had 100% equity in Sunplus
mMedia.
5.64
5.64
5.64
Sunplus and its subsidiaries
had 65.94% equity in
Sunplus Innovation
62.50
62.50
62.50
-
(Continued)
  • 18 -
Name of Investor
Name of Investee
Main Businesses and Products
Lin Shih
Generalplus Technology
Design of ICs
Sunplus mMedia
Design of ICs
Sunplus Innovation
Design of ICs
Generalplus
Generalplus Samoa
Investment
Generalplus Samoa
Generalplus Mauritius
Investment
Generalplus Mauritius
Generalplus Shenzhen
Design of ICs, after sales service
and marketing research
Generalplus HK
Sales
Award Glory
Sunny Fancy
Investment
Sunny Fancy
Giant Kingdom
Investment
Giant Rock
Investment
WORLDPLUS HOLDING
L.L.C. (Worldplus)
Investment
Giant Best Ltd. (Giant Best)
Investment
Giant Kingdom
Ytrip Technology
Web research and development
Giank Rock
Sunplus App Technology
Sale of electronic components
and information management
and education
Worldplus
Lingyao Technology
Development of computer
software, system integration
services and building rental		 Percentage of Ownership (%)

March 31,
2021
December 31,
2020
March 31,
2020
Note
13.69
13.69
13.69
Sunplus and its subsidiaries
had a 47.99% stake in
Generalplus Technology,
Inc. and the Group had
controlling interest over
Generalplus Technology,
Inc.; the investee is included
in the consolidated financial
statements.
2.60
2.60
2.60
Sunplus and its subsidiaries
had 100% equity in Sunplus
mMedia.
2.09
2.09
2.09
Sunplus and its subsidiaries
had 65.94% equity in
Sunplus Innovation
100.00
100.00
100.00
-
100.00
100.00
100.00
-
100.00
100.00
100.00
-
100.00
100.00
100.00
-
100.00
100.00
100.00
-
100.00
100.00
100.00
-
100.00
100.00
100.00
-
100.00
100.00
100.00
-
100.00
100.00
100.00
At the end of March 2021, the
establishment registration
was completed, but capital
was not invested yet.
-
-
8.16
Sunplus and its subsidiaries
had a 90.71% stake in Ytrip
on March 31 and December
31,2020. The liquidation of
Ytrip Technology was
completed on June 23, 2020.
Please refer to Note 29.
44.85
44.85
42.31
Sunplus and its subsidiaries
had a 96.32% stake in
Sunplus App.
100.00
100.00
100.00
-
(Concluded)

The financial statements as of and for the three months ended March 31, 2021 of the above subsidiaries, except those of Generalplus, Sunplus Innovation Technology, Sunplus mMobile Inc., Ventureplus Group Inc., Ventureplus Mauritius Inc., and Ventureplus Cayman Inc., and non-significant subsidiaries Sunplus Technology (Shanghai) and Sunplus Prof-tek Technology (Shenzhen), were not reviewed.

The financial statements as of and for the three months ended March 31, 2020 of the above subsidiaries, except those of Generalplus, Sunplus mMobile Inc., Ventureplus Group Inc., Ventureplus Mauritius Inc., and Ventureplus Cayman Inc., and non-significant subsidiaries Sunplus Technology (Shanghai) and Sunplus Prof-tek Technology (Shenzhen), were not reviewed.

b. Subsidiaries excluded from the consolidated financial statements

Company name


Generalplus

Sunplus Innovation Technology
 The Voting Ratio of Non-controlling Equity
March 31,
2021
December 31,
2020
March 31,
2020





52.01%

52.01%
52.01%

34.06%

34.06%
31.14%
  • 19 -

Refer to Table 5 for information on country of registration and principal business activities.

Company Name
Generalplus

Sunplus Innovation
Technology		 Profit Attributed to
Non-controlling Interests
Three Months Ended
March 31
2021
2020
$ 50,344 $ 10,015
49,027
9,444		 Non-controlling Interests
March 31, December 31,
March 31,
2021
2020
2020
$ 1,171,435 $ 1,123,045 $ 1,082,345
525,107
462,772
318,395

The summarized financial information below represents amounts before intragroup eliminations.

Current assets

Non-current assets
Current liabilities
Non-current liabilities

Equity

Equity attributable to:
Owners of the Company

Non-controlling interests


Operating revenue
Net income
Other comprehensive loss
Total other comprehensive income
Equity attributable to:
Owners of the Company
Non-controlling interests
Total other comprehensive income attributable to:
Owners of the Company
Non-controlling interests		 March 31,
2021
$ 4,160,818

808,344
1,097,817

203,400

$ 3,667,945

$ 1,971,403


1,696,542
$ 3,667,945











 December 31,
2020
March 31,
2020
$ 3,920,778
$ 3,130,781
825,984

787,141
1,128,870

690,049

198,684

210,028

$ 3,419,208
$ 3,017,845


$ 1,833,391
$ 1,617,105

1,585,817

1,400,740

$ 3,419,208
$ 3,017,845
For the Three Months Ended
March 31		 December 31,
2020
March 31,
2020
$ 3,920,778
$ 3,130,781
825,984

787,141
1,128,870

690,049

198,684

210,028

$ 3,419,208
$ 3,017,845


$ 1,833,391
$ 1,617,105

1,585,817

1,400,740

$ 3,419,208
$ 3,017,845
For the Three Months Ended
March 31		 December 31,
2020
March 31,
2020
$ 3,920,778
$ 3,130,781
825,984

787,141
1,128,870

690,049

198,684

210,028

$ 3,419,208
$ 3,017,845


$ 1,833,391
$ 1,617,105

1,585,817

1,400,740

$ 3,419,208
$ 3,017,845
For the Three Months Ended
March 31









2021
$ 1,289,981

$ 240,740


(6,114)

$ 234,626

$ 141,369


99,371

$ 240,740

$ 138,012


96,614

$ 234,626
 2020
$ 676,741
$ 49,581

(5,452)
$ 44,129
$ 30,122

19,459
$ 49,581
$ 27,505

16,624
$ 44,129
(Continued)
  • 20 -
Cash flows
Operating activities

Investing activities
Financing activities
Effects of exchange rate changes on the balance of cash held
in foreign currencies

Net cash inflow (outflow)

Dividends paid to non-controlling interests
 For the Three Months Ended
March 31		 For the Three Months Ended
March 31



2021
$ 285,933

5,596
2,764

171

$ 294,464

$ -
 2020
$ (69,705)
37,029
(48,405)

(129)
$ (81,210)
$ -
(Concluded)

12. INVESTMENTS ACCOUNTED FOR USING THE EQUITY METHOD

Investments in associates

Associates
Global View Co., Ltd.

iCatch Technology
AkiraNET CO., Ltd.
Autosys Co., Ltd.
Yizhiliang Accelerator Co., Ltd.


Name of associate
Global View Co., Ltd.
iCatch Technology
AkiraNET CO., Ltd.
Autosys Co., Ltd.
Yizhiliang Accelerator Co., Ltd.		 March 31,
2021
December 31,
2020
$ 904,030
$ 719,696

$ 366,137
$ 346,011

293,462
300,118
171,489
-
71,016
71,439

1,926

2,128

$ 904,030
$ 719,696

March 31,
2021
December 31,
2020

13%
13%
35%
35%
35%
-
16%
16%
25%
25%		 March 31,
2020
$ 690,537
$ 296,840
313,929
-
77,276

2,492
$ 690,537
March 31,
2020
13%
36%
-
16%
25%

Refer to Table 5 following these notes to the consolidated financial statements for information on the associates’ business types, main operating locations and registered countries.

The fair values of publicly traded investments which is grouped into Levels 1 accounted for using the equity method were based on the closing prices of those investments at the balance sheet dates, as follows:

Name of Associate
Global View Co., Ltd.
 March 31,
2021
December 31,
2020
$ 413,942
$ 317,657
 March 31,
2020
$ 202,445
  • 21 -

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

For the three months ended March 31, 2021 and 2020, the equity method of investment and the company’s share of profit and loss and other comprehensive profit and loss are calculated based on financial statements that have not been reviewed by accountants.

13. PROPERTY, PLANT AND EQUIPMENT

Assets used by the Group

Cost
Balance at beginning of period

Additions
Disposals
Reclassified
Effects of exchange rate changes

Balance at end of period

Accumulated depreciation
Balance at beginning of period

Additions
Disposals
Effects of exchange rate changes

Balance at end of period

Net balance at end of period

Balance at December 31, 2020 and
January 1, 2021
Cost
Balance at beginning of period

Additions
Disposals
Reclassified
Effects of exchange rate changes

Balance at end of period

Accumulated depreciation
Balance at beginning of period

Additions
Disposals
Effects of exchange rate changes

Balance at end of period

Net balance at end of period
 For th e Three Months En ded March 31, 202 1







Buildings
$ 2,365,248

-
-
-

(8,599)

$ 2,356,649

$ 616,336

13,217
-

(1,401)

$ 628,152

$ 1,728,497

$ 1,748,912
 Auxiliary
Equipment
M
$ 184,498

151
-
-

(582)

$ 184,067

$ 150,142

4,639
-

(635)

$ 154,146

$ 29,921

$ 34,356
 achinery and
Equipment
$ 21,489

-
(58 )
-

(8,114)

$ 13,317

$ 12,612

597
(58 )

(3,840)

$ 9,311

$ 4,006

$ 8,877
 Testing
Equipment
T
$ 639,111

11,970

(2,881 )
-

7,193

$ 655,393

$ 547,664

27,311

(2,670 )

3,696

$ 576,001

$ 79,392

$ 91,447

For th		 ransportation
Equipment

$ 4,607

-

-
-

(29)

$ 4,578

$ 3,394

130

-

(25)

$ 3,499

$ 1,079

$ 1,213

e Three Months En		 Furniture and
Fixtures
I
$ 268,761

25,266
(1,155 )
68

(967)

$ 291,973

$ 202,794

6,929
(1,114 )

(877)

$ 207,732

$ 84,241

$ 65,967

ded March 31, 202		 Leasehold
mprovements
$ 3,123

74

-
-

(13)

$ 3,184

$ 1,685

115

-

(3)

$ 1,797

$ 1,387

$ 1,438

0		 Other
Equipment
C
$ 24,146

236
-
-

(104)

$ 24,278

$ 22,260

150
-

(609)

$ 21,801

$ 2,477

$ 1,886
 onstruction in
Progress
$ 17,156

-
-
(68 )

-

$ 17,088

$ -

-
-

-

$ -

$ 17,088

$ 17,156
 Total
$ 3,528,139
37,697
(4,094 )

-

(11,215)
$ 3,550,527
$ 1,556,887
53,088
(3,842 )

(3,694)
$ 1,602,439
$ 1,948,088
$ 1,971,252






Buildings
$ 2,338,519

440
-
-

(5,503)

$ 2,333,456

$ 555,243

13,115
-

3,890

$ 572,248

$ 1,761,208
 Auxiliary
Equipment
M
$ 187,290

1,328
-
-

(4,255)

$ 184,363

$ 143,222

3,170
-

(5,238)

$ 141,154

$ 43,209
 achinery and
Equipment
$ 10,428

-
-
-

(59)

$ 10,369

$ 7,229

446
-

(207)

$ 7,468

$ 2,901
 Testing
Equipment
T
$ 517,417

51,802
(345 )
-

(983)

$ 567,891

$ 448,652

30,283
(333 )

(627)

$ 477,975

$ 89,916
 ransportation
Equipment

$ 5,873

-

(482 )
-

(53)

$ 5,338

$ 4,018

240

(433 )

(44)

$ 3,781

$ 1,557
 Furniture and
Fixtures
I
$ 250,019

20,129

(14,547 )
4,073

(5,407)

$ 254,267

$ 205,424

4,920

(14,461 )

(1,229)

$ 194,654

$ 59,613
 Leasehold
mprovements
$ 1,480

535

-
-

1,087

$ 3,102

$ 1,239

1,239

-

(1,142)

$ 1,336

$ 1,766
 Other
Equipment
f
$ 23,847

-
-
-

(154)

$ 23,693

$ 20,245

300
-

(131)

$ 20,414

$ 3,279
 Prepayments
or Equipment
$ 19,202

4,304
-
(4,073 )

(1,145)

$ 18,288

$ -

-
-

-

$ -

$ 18,288
 Total
$ 3,354,075
78,538
(15,374 )

-

(16,472)
$ 3,400,767
$ 1,385,272
53,713
(15,227 )

(4,728)
$ 1,419,030
$ 1,981,737

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

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

Refer to Note 34 for the carrying amounts of property, plant and equipment that had been pledged by the Group to secure borrowings.

  • 22 -

14. LEASE ARRANGEMENTS

a. Right-of-use assets

March 31,
2021

Carrying amount
Land
$ 207,370

Buildings
18,097
Transportation equipment

335

$ 225,802


Additions to right-of-use assets


Depreciation charge for right-of-use assets

Land

Buildings

Transportation equipment




Income from the subleasing of right-of-use assets (presented in
other income)
 December 31,
2020
March 31,
2020

$ 209,100
$ 214,184
19,730
23,318

447

782
$ 229,277
$ 238,284
For the Three Months Ended
March 31		 December 31,
2020
March 31,
2020

$ 209,100
$ 214,184
19,730
23,318

447

782
$ 229,277
$ 238,284
For the Three Months Ended
March 31		 December 31,
2020
March 31,
2020

$ 209,100
$ 214,184
19,730
23,318

447

782
$ 229,277
$ 238,284
For the Three Months Ended
March 31










2021
$ -


$ 1,714


2,072
112

$ 3,898

$ -
 2020
$ -
$ 1,713
1,751
112
$ 3,576
$ 288

Except for the depreciation expense above, the company’s right-of-use assets did not experience significant sublease and impairment from January 1 to March 31, 2021 and 2020.

The other part of the land use right in China is because the above-ground buildings are subleased by business lease, the related right-of-use assets are presented as investment properties. As set out in Note 15.

  • b. Lease liabilities
March 31, March 31, December 31, December 31, March 31, March 31,
2021 2020 2020
Carrying amount
Current $
12,396
 $
12,506
 $
11,676
Non-current $ 216,689
 $ 219,510
 $ 227,601
Range of discount rates for lease liabilities was as follows:
March 31, December 31, March 31,
2021 2020 2020
Land
2.390%		 2.390% 2.390%
Buildings 1.575%-5.000% 1.575%-5.000% 1.575%-4.75%
Transportation equipment 1.575% 1.575% 1.575%
  • 23 -

c. Material lease-in activities and terms

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

The Company has no significant new lease contracts from January 1 to March 31, 2021 and 2020. In 2020, due to the severe impact of the COVID-19 on the market economy, The Company negotiated a land lease with the Hsinchu Science Park Administration. The Hsinchu Science Park Administration agreed to unconditionally reduce 20% from January 1 to June 30, 2020. From January 1 to June 30, 2020, the company recognized the impact of the aforementioned rent reductions as $832 thousand (presented in a deduction of expenses of variable lease payments).

  • d. Subleases

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

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

March 31,
2020
Year 1

$ 865

e. Other lease information

Expenses relating to short-term leases
Expenses relating to low-value asset leases
Total cash outflow for leases		 For the Three Months Ended
March 31		 For the Three Months Ended
March 31		 For the Three Months Ended
March 31


2021
$ 1,624

$ 108

$ 6,072
 2020
$ 2,037
$ 632
$ 6,917

15. INVESTMENT PROPERTIES

Cost
Balance at January 1, 2021

Effects of exchange rate changes


Balance at March 31, 2021
 Completed
Investment
Properties
$ 1,429,106

(10,514)


$ 1,418,592
 Right-of-use
Assets
$ 100,521


(758)


$ 99,763
 Total
$ 1,529,627

(11,272)
$ 1,518,355
(Continued)
  • 24 -

Accumulated depreciation


Balance at January 1, 2021

Depreciation expense

Effects of exchange rate differences


Balance at March 31, 2021


Net Balance at March 31, 2021

Net Balance at December 31, 2020 and January 1,
2021


Cost
Balance at January 1, 2020

Effects of exchange rate differences


Balance at March 31, 2020


Accumulated depreciation


Balance at January 1, 2020

Depreciation expense

Effects of exchange rate differences


Balance at March 31, 2020


Net Balance at March 31, 2020
 Completed
Investment
Properties



$ 509,133

16,961


(3,948)


$ 522,146


$ 896,446

$ 919,973


$ 1,401,007

(30,347)


$ 1,370,660




$ 430,601
17,622

(19,692)


$ 428,531


$ 942,129
 Right-of-use
Assets



$ 4,950

609


(43)


$ 5,516


$ 94,247

$ 95,571


$ 98,867


(1,148)


$ 97,719




$ 2,476
599


(36)


$ 3,039


$ 94,680
 Total
$ 514,083
17,570

(3,991)
$ 527,662
$ 990,693
$ 1,015,544
$ 1,499,874

(31,495)
$ 1,468,379
$ 433,077
18,221

(19,728)
$ 431,570
$ 1,036,809
(Concluded)

The right-of-use assets in the investment properties are the use right of land signed by the Company and is subleased by operating lease. The lease terms of the investment properties are from 1 to 15 years, with extension option according to the original contract when exercising the renewal right. The lessee does not have the right of first refusal at the end of the lease period.

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

Year 1

Year 2

Year 3


 March 31,
2021
December 31,
2020
$ 207,148
$ 197,870

163,963

164,577

99,717

96,344



$ 470,828
$ 458,791
 March 31,
2020
$ 204,128
160,912
125,377
$ 490,417
  • 25 -

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

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

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

March 31, December 31, March 31,
2021 2020 2020
Fair value $ 45,471 $ 45,471 $ 37,900

The fair value of investment properties were valued by independent valuators; the Group assessed and determined that the fair values as of December 31, 2020 and 2019 were still valid as of March 31, 2021 and 2020, respectively.

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

March 31, December 31, March 31,
2021 2020 2020
Fair value $ 1,192,093
$ 1,192,093
 $ 1,182,963

The fair value of investment properties were valued by independent valuators; the Group assessed and determined that the fair values reported as of December 31, 2020 and 2019 were still valid as of March 31, 2021 and 2020, respectively.

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

March 31, December 31, March 31,
2021 2020 2020
Fair value
$ 2,374,398		 $ 2,374,398
 $ 2,295,816

The fair value of investment properties were valued by independent valuators; the Group assessed and determined that the fair values reported as of December 31, 2020 and 2019 were still valid as of March 31, 2021 and 2020, respectively.

  • 26 -

16. INTANGIBLE ASSETS

Cost
Balance at January 1

Additions
Disposals
Effects of exchange rate differences


Balance at March 31


Accumulated amortization


Balance at January 1

Amortization expense
Disposal
Effects of exchange rate differences


Balance at March 31

Accumulated impairment
Balance at January 1 and March 31


Net balance at March 31

Net balance at December 31, 2020 and January 1,
2021
Cost
Balance at January 1

Additions
Disposals
Effects of exchange rate differences


Balance at March 31


Accumulated amortization


Balance at January 1

Amortization expense
Disposal
Effects of exchange rate differences


Balance at March 31

Accumulated impairment
Balance at January 1 and March 31


Net balance at March 31
 For the Three Months Ended March 31, 2021 For the Three Months Ended March 31, 2021 For the Three Months Ended March 31, 2021









Technology
License Fees
$ 986,612

50,869
-

(228)

$ 1,037,253

$ 607,530

25,764
-

(156)

$ 633,138

$ 111,136

$ 292,979

$ 267,946
 Software
Patents
Goodwill
$ 325,261
$ 116,498
$ 30,596

4,665
-
-
(388)
-
-

(229)

(2)

-

$ 329,309
$ 116,496
$ 30,596

$ 304,045
$ 86,088
$ -

5,552
445
-
(388)
-
-

(158)

(1)

-

$ 309,051
$ 86,532
$ -

$ -
$ 21,577
$ -

$ 20,258
$ 8,387
$ 30,596

$ 21,216
$ 8,833
$ 30,596

For the Three Months Ended March 31, 2020		 Total
$ 1,458,967
55,534
(388)

(459)
$ 1,513,654
$ 997,663
31,761
(388)

(315)
$ 1,028,721
$ 132,713
$ 352,220
$ 328,591








Technology
License Fees
$ 809,249

3,832
(150)

(327)

$ 812,604

$ 583,858

12,763
(150)

(172)

$ 596,299

$ 111,136

$ 105,169
 Software
$ 312,600

4,522

(410)

(2,077)

$ 314,635

$ 289,553

5,650

(410)

(1,935)

$ 292,858

$ -

$ 21,777
 Patents
$ 114,494

-

-

(3)

$ 114,491

$ 84,582

343

-

(2)

$ 84,923

$ 21,577

$ 7,991
 Goodwill
$ 30,596

-
-

-

$ 30,596

$ -

-
-

-

$ -

$ -

$ 30,596
 Total
$ 1,266,939
8,354
(560)

(2,407)
$ 1,272,326
$ 957,993
18,756
(560)

(2,109)
$ 974,080
$ 132,713
$ 165,533

Other intangible assets are amortized on a straight-line basis over their estimated useful lives as follows: Technology license fees 1-10 years Software 1-10 years Patents 8-18 years

  • 27 -

An analysis of amortization by function

Selling and marketing expenses

General and administrative expenses

Research and development expenses


 For the Three Months Ended
March 31		 For the Three Months Ended
March 31




2021
$ 9


939
30,813

$ 31,761
 2020
$ 27
1,180
17,549
$ 18,756

17. OTHER ASSETS

Current
Other financial assets
Pledged time deposits (a)

Time deposits (b)

Restricted assets (d)


Other assets

Prepayments for EDA tools

Prepaid technical licensing fee

Others


Non-current
Other financial assets
Pledged time deposits (a)

Time deposits (c)


Other assets
Prepayment for investments

Refundable deposits

Other

 March 31,
2021
December 31,
2020
$ 114,140
$ 113,920


19,392

82,213

44,201

44,201

$ 177,733
$ 240,334


$ 19,968
$ 18,032


7,601

21,141

71,676

72,265

$ 99,245
$ 111,438

$ 38,062
$ 35,809

234,576

236,358

$ 272,638
$ 272,167

$ 42,000
$ -


4,073

4,055

7,800

7,800

$ 53,873
$ 11,855
 March 31,
2020
$ 120,900

-
-
$ 120,900
$ 20,662

-
69,088
$ 89,750
$ 10,913
127,650
$ 138,563
$ -

6,224
7,800
$ 14,024

  • a. Refer to Note 34 for information on pledged time deposits.

  • b. Lingyao Company and Sunplus Technology (Beijing) Company made fixed deposit of RMB4,464 thousand at banks on March 31, 2021; Lingyao Company, Sunplus Technology (Beijing) Company, Sunplus Technology (Shanghai) Company and Sunplus Prof-tek (Shenzhen) Company made fixed deposit of RMB18,783 thousand at banks on December 31, 2020. The deposit period of time deposit is 6 months to 1 year, and interest can be charged at a certain interest rate during the deposit period.

  • 28 -

  • c. Sunplus Technology (Shanghai) Company , Lingyao Company and Generalplus Shenzhen Company made certificates of deposit of RMB54,000 thousand, RMB54,000 thousand and RMB30,000 thousand at the bank on March 31, 2021, December 31, 2020 and March 31, 2020 respectively. The deposit period of the certificates of deposit is 2 to 3 years and interest can be charged at a certain interest rate during the deposit period.

  • d. Refer to Note 28 for information on restricted assets.

18. BORROWINGS

Short-term borrowings

Secured borrowings
Bank loans

Unsecured borrowings
Bank loans

 March 31,
2021
December 31,
2020
$ 97,055
$ 97,102

192,231

217,017

$ 289,286
$ 314,209
 March 31,
2020
$ 120,589
131,067
$ 251,656

The weighted average effective interest rate intervals for bank loans as of March 31, 2021, December 31, 2020 and March 31, 2020 were 0.670%-2.400%, 0.716%-2.800% and 1.745%-3.000% per annum, respectively.

- Long term borrowings

The borrowings of the Group are as follows:

Maturity
Date
Significant Covenant
Floating rate borrowings
Unsecured bank borrowings
2025.08.21
Repayable quarterly from
November 2021 in 16
installments

Unsecured bank borrowings
2023.10.13
Repayable semiannually from
October 2022 in 3 installments
Less: Matured within 1 year

Long-term borrowings
 March 31,
2021
December 31,
2020
$ 400,000
$ 200,000

30,000
30,000

(50,000)

(25,000)

$ 380,000
$ 205,000
 March 31,
2020
$ -
-

-
$

The intervals of effective borrowing rates as of March 31, 2021 and 2020 were 1.250%-1.320%.

19. TRADE PAYABLES


Accounts payable


Payables - operating
 March 31,
2021
December 31,
2020




$ 510,220
$ 450,216
 March 31,
2020
$ 388,413
  • 29 -

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

20. OTHER LIABILITIES

Current
Other payables
Payables for salaries or bonuses

Payables for employees' compensation and
remuneration of directors
Refund liabilities
Payable for royalties
Labor/health insurance
Commission payable
Payables for purchase of equipment
Payables for labor costs
Others


Deferred revenue
Government grants (Note 28)

Non-current
Other payable
Long-term payable

Payable for purchases of equipment

Decommissioning liabilities
Others


Deferred revenue
Government grants (Note 28)
 March 31,
2021
December 31,
2020
$ 230,239
$ 464,201

101,844
73,815
84,254
75,313
68,860
68,250
27,695
27,106
7,322
6,591
14,933
8,005
5,138
7,195
61,314

64,848

$ 601,599
$ 795,324

$ 21,452
$ 46,098

$ 7,665
$ 6,484

5,890
4,940

889
889
8,654

1,532

$ 23,098
$ 13,845

$ 57,390
$ 58,300
 March 31,
2020
$ 143,411
47,136
52,419
39,191
23,252
6,977
19,365
4,351
64,613
$ 400,715
$ 1,550
$ 5,554
7,398
889
-
$ 13,841
$ 56,954

21. RETIREMENT BENEFIT PLANS

Employee benefits expense in respect of the Group’s defined benefit retirement plans were $314 thousand and $411 thousand as of the three months ended March 31, 2021 and 2020, respectively, and were calculated using the respective annual, actuarially determined pension cost discount rates as of December 31, 2020 and 2019.

  • 30 -

22. EQUITY

a. Share capital

1) Ordinary shares

Numbers of shares authorized (in
thousands)

Value of shares authorized

Number of shares issued and fully paid
(in thousands)

Value of shares issued
 March 31,
2021
1,200,000

$ 12,000,000

591,995

$ 5,919,949
 December 31,
2020
1,200,000

$ 12,000,000

591,995

$ 5,919,949
 March 31,
2020
1,200,000

$ 12,000,000

591,995

$ 5,919,949

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

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

2) Global depositary receipts

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

  • b. Capital surplus
May be used to offset a deficit, distributed
as cash dividends, or transferred to share
capital (a)
Issuance of ordinary shares

From business combinations
The difference between the consideration
received or paid and the carrying amount of
the subsidiaries’ net assets during actual
disposal or acquisition
May only be used to offset a deficit
Treasury share transactions
Share of changes in capital surplus of
associates

 March 31,
2021
December 31,
2020


$ 18,497
$ 18,497

157,423
157,423

207,316
207,316




46,307
46,307

72,184

71,277


$ 501,727
$ 500,820
 March 31,
2020
$ 196,095
157,423
140,184
45,239
60,921
$ 599,862

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

  • 31 -

  • c. Retained earnings and dividend policy

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

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

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

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 2019 were approved by the shareholders in the shareholders’ meeting on June 12, 2020, as follows:

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

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

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

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

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

  • d. Special reserves
Balance at January 1 and March 31
 For the Three Months Ended
**March 31 **		 For the Three Months Ended
**March 31 **
2021
$ 276,189
 2020
$ 308,452

  • 32 -

  • e. Other equity items

  • 1) Exchange differences on the translation of the financial statements of foreign operations

Balance at January 1

Recognized for the period
Exchange differences on the translation of the financial
statements of foreign operations
Share from associates accounted for using the equity
method
Balance at March 31
 For the Three Months Ended
**March 31 **		 For the Three Months Ended
**March 31 **


2021
$ (228,023)

(12,098)
(504)

$ (240,625)
 2020
$ (218,780)
(13,896)
(859)
$ (233,535)
  • 2) Unrealized valuation gain/(loss) on financial assets at FVTOCI
Balance at January 1

Recognized for the period
Unrealized gains (losses)
Share from associates accounted for using equity method

Balance at March 31
 For the Three Months Ended
**March 31 **		 For the Three Months Ended
**March 31 **


2021
$ (33,055)

8,741
15,341

$ (8,973)
 2020
$ (42,246)
(35,332)
(6,478)
$ (84,056)
  • f. Non-controlling interests
Balance at January 1

Attributable to non-controlling interests:
Share of profit for the period
Exchange differences on the translation of the financial
statements of foreign operations
Unrealized gain (loss) on financial assets at FVTOCI
Equity instruments held by the employees of subsidiaries (Note
27)
Non-controlling interests related to outstanding vested share
options
Balance at March 31
 For the Three Months Ended
**March 31 **		 For the Three Months Ended
**March 31 **


2021
$ 1,605,238

99,904
(1,955)
(803)
14,111

-

$ 1,716,495
 2020
$ 1,394,158
18,883

(2,840)

-
-

12,000
$ 1,422,201
  • 33 -

g. Treasury shares

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

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

Name of Subsidiary
Number of
Shares Held
(In Thousands
of Shares)
March 31, 2021
Lin Shin Investment Co., Ltd.
3,560

December 31, 2020
Lin Shin Investment Co., Ltd.
3,560

March 31, 2020
Lin Shin Investment Co., Ltd.
3,560
 Carrying
Amount
Market Price
$ 63,401
$ 106,800
$ 63,401
$ 65,148
$ 63,401
$ 30,652

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

23. REVENUE

Revenue from the sale of goods

Rental income from property

Others


 For the Three Months Ended
**March 31 **		 For the Three Months Ended
**March 31 **




2021
$ 1,606,592


59,670


32,065


$ 1,698,327
 2020
$ 953,744

54,455

25,979
$ 1,034,178

  • 34 -

  • 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 mainly come from software development and royalties.

  • b. Contract balances
Trade receivables (Note 9)


Contract liabilities - current
 March 31,
2021
December 31,
2020

$ 1,034,845
$ 1,204,798



$ 24,905
$ 26,181
 March 31,
2020

$ 752,414


$ 23,700
 January 1,
2020
$ 832,633
$ 24,912
  • c. Disaggregation of revenue
Primary geographical markets
Asia

Taiwan
Others


Timing of revenue recognition
Satisfied at a point in time

Satisfied over time

 Reportable Segments Reportable Segments
Direct Sales
For the Three Months Ended
March 31





2021
$ 975,748

721,061

1,518

$ 1,698,327

$ 1,637,215


61,112

$ 1,698,327
 2020
$ 637,697
376,613

19,868
$ 1,034,178
$ 978,461

55,717
$ 1,034,178

24. NET PROFIT (LOSS)

Net profit (loss) includes the following items:

  • a. Interest income
Interest income
Bank deposits
 For the Three Months Ended
March 31

2021
$ 6,855

 2020
$ 7,039
  • 35 -

b. Other income

Dividend income

Subsidy income (Note 28)

Others


 For the Three Months Ended
**March 31 **		 For the Three Months Ended
**March 31 **		 For the Three Months Ended
**March 31 **







2021
$ 150


27,155


11,356



$ 38,661

 2020
$ 11
628

10,959
$ 11,598

c. Other gains and losses

Net gains (losses) on financial assets and liabilities
Net gain (loss) on financial assets designated as at FVTPL

Net foreign exchange loss
Others


Finance costs
Interest on bank loans

Interest on lease liabilities

Other finance costs
 For the Three Months Ended
**March 31 **		 For the Three Months Ended
**March 31 **



2021
2020
$ 225,837
$ (48,660)
(6,348)
(5,261)
3,198

1,667
$ 222,687
$ (52,254)
For the Three Months Ended
March 31





2021
$ 2,019

1,357

97

$ 3,473
 2020
$ 2,549
1,413

342
$ 4,304

d. Finance costs

e. Depreciation and amortization

An analysis of depreciation by function
Operating costs

Operating expenses

An analysis of amortization by function
Operating expenses		 For the Three Months Ended
**March 31 **		 For the Three Months Ended
**March 31 **		 For the Three Months Ended
**March 31 **





2021
$ 19,408



55,148


$ 74,556

$ 31,761
 2020
$ 20,082

55,428
$ 75,510
$ 18,756

  • 36 -

  • f. Operating expenses directly related to investment properties

Direct operating expenses from investment properties that
generate rental income
g. Employee benefits expense
Short-term benefits

Post-employment benefits
Defined contribution plans
Defined benefit plans (Note 21)
Share-based payments
Equity-settled
Other employee benefits

Total employee benefits expense

An analysis of employee benefits expense by function
Operating costs

Operating expenses

 For the Three Months Ended
**March 31 **		 For the Three Months Ended
**March 31 **
2021
2020
$ 20,548
$ 20,934
For the Three Months Ended
**March 31 **





2021
$ 452,875

11,855
314
14,111
8,594

$ 487,749

$ 26,968

460,781

$ 487,749
 2020
$ 356,446
11,345
411
-
6,829
$ 375,031
$ 24,179
350,852
$ 375,031
  • h. Compensation of employees and remuneration of directors and supervisors

The Company resolved amendments to its Articles of Incorporation to distribute compensation of employees and remuneration of directors at rates of no less than 1% and no higher than 1.5%, respectively, of net profit before income tax, compensation of employees, and remuneration to directors. The Company had loss before income tax from January 1 to March 31, 2020; therefore, the compensation of employees and remuneration of directors were not provided. The compensation of employees and the remuneration of directors for the three months ended March 31, 2021 is as follows:

Accrual rate

For the Three Months Ended March 31, 2021 Compensation of employees 1.00% Remuneration of directors 1.50%

  • 37 -

Amount

For the Three
Months Ended
March 31, 2021
Compensation
Remuneration		 of employees
of directors
$ 2,232

$ 3,349

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

The remuneration of employees and directors of the year 2020 was approved by the board of directors on March 29, 2021 as follows:

Compensation of employees
Remuneration of directors		 For the Year Ended
December 31, 2020
Cash
Shares
$ 3,317
$ -
4,975
-

There is no difference between the actual amounts of compensation of employees and remuneration of directors 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 remuneration of directors is different from the recognized amount in the annual consolidated financial report. The difference is adjusted to the profit and loss for 2020.

The actual amount resolved by the board of directors
Recognized amount in annual financial statements		 For the Year Ended
December 31, 2019
Compensation
of employees
Remuneration
of Directors

$ -
$ -
$ 206
$ 309

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

  • i. Gain or loss on exchange rate changes
Exchange rate gains

Exchange rate losses


Net loss
 For the Three Months Ended
March 31		 For the Three Months Ended
March 31		 For the Three Months Ended
March 31






2021
$ 15,159


(21,507)



$ (6,348)

 2020
$ 8,277
(13,538)
$ (5,261)
  • 38 -

25. INCOME TAXES

a. Income tax recognized in profit or loss

The major components of tax expense are as follows:

Current tax
In respect of the current year

Adjustments for prior periods

Deferred tax
In respect of the current year

Income tax expense recognized in profit or loss
 For the Three Months Ended
**March 31 **		 For the Three Months Ended
**March 31 **



$ 64,227

-

64,227
1,210

$ 65,437
 $ 13,446
-
13,446
509
$ 13,955

b. Income tax assessments

The income tax returns of Sunplus, Sunplus mMobile and Sunplus Innovation Technology through 2018; Generalplus, Sunext, Jumplux, Lin Shih, Sunplus Venture, Sunplus mMedia, Wei-Young and Sunplus Management Consulting through 2019 had been assessed by the tax authorities.

26. EARNINGS (LOSS) PER SHARE

Basic earnings (loss) per share

Diluted earnings (loss) per share
 Unit: NT$ Per Share
For the Three Months Ended
March 31		 Unit: NT$ Per Share
For the Three Months Ended
March 31		 Unit: NT$ Per Share
For the Three Months Ended
March 31

2021
$ 0.37

$ 0.37
 2020
$ (0.21)
$ (0.21)

The earnings (loss) and weighted average number of ordinary shares outstanding used in the computation of earnings (loss) per share are as follows:

Net profit (loss) for the period

Profit (loss) for the period attributable to owners of the Company

Effects of potentially dilutive ordinary shares

Bonuses to employee


Earnings (loss) used in the computation of diluted EPS from
continuing operations
 For the Three Months Ended
March 31		 For the Three Months Ended
March 31




2021
$ 217,575


-


$ 217,575
 2020
$ (124,637)
-
$ (124,637)
  • 39 -

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

Weighted average number of ordinary shares used in the
computation of basic earnings (loss) per share

Effects of potentially dilutive potential ordinary shares:

Bonuses issued to employees


Weighted average number of ordinary shares used in the
computation of diluted earnings (loss) per share
 For the Three Months Ended
**March 31 **		 For the Three Months Ended
**March 31 **




2021

588,435
185

588,620
 2020
588,435
-
588,435

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.

27. SHARE-BASED PAYMENT ARRANGEMENTS

  • a. Restricted shares for employees

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

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

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

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

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

  • 40 -

When the employee fails to meet the vesting conditions:

  • 1) Resignation (voluntary resignation/retirement/layoff/dismissal): The employee that has not fulfilled the vesting conditions will be deemed to have not met the vesting conditions from the day of resignation. The Company will buy back and cancel the employee’s restricted shares at the original issuing price according to the laws.

  • 2) Unpaid leave: The employee that has not fulfilled the vesting conditions will be restored to the rights and interests from the date of reinstatement, but the vesting period shall be deferred according to the period of unpaid leave.

  • 3) Death: The employee that has not fulfilled the vesting conditions will be deemed to have not met the vesting conditions from the day of death. The Company will buy back and cancel the employee’s restricted shares at the original issuing price according to the laws.

  • 4) Occupational injury:

  • a) Those who are unable to continue their employment due to occupational injury and have not fulfilled the vesting conditions shall still fulfill the vesting conditions according to regulation 3) Death.

  • b) Death due to occupational injury may cause the employee not to fulfil the vesting conditions which shall be fulfilled by the heirs from the day of the death of the employee according to regulation 3) Death.

  • 5) Transfer of employment: If an employee is requested to transfer to an affiliate company or other company (except transferring to a subsidiary), the restricted shares shall be processed according to the regulation of "Resignation". However, due to Sunplus Innovation Technology’s operation need, employees for those who were assigned by Sunplus Innovation Technology to be transferred to the company's affiliates or other companies will not be affected.

  • 6) Employees or their heirs shall receive the transferred shares according to the trust agreement.

  • 7) Share dividends and cash dividends that have been allocated to employees who have not fulfilled the vesting conditions during the vesting period shall not be returned.

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

  • 1) The employees cannot sell, pledge, transfer, donate or, in any other way, dispose of these shares.

  • 2) The employees holding these shares are not entitled to receive cash dividends and share dividends.

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

Other agreements were as follow:

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

  • 41 -

Information on employee restricted share was as follows:


Outstanding shares at January 1
Shares granted

Outstanding shares at March 31
 For the Three
Months Ended
March 31, 2021
Number of
Options (In
Thousands of
Units)
1,000

-

1,000

Compensation costs recognized were $14,111 thousand for the year for the three months ended March 31, 2021.

28. GOVERNMENT GRANTS

In August 2013, Sun Media Technology Co., Ltd. received a government grant amounting to RMB16,390 thousand ($79,213 thousand) for the purchase of land on which to build a plant. This amount, which was recognized as deferred revenue, will be recognized in profit or loss over the useful life of the land. The total revenue recognized as profit were $398 thousand and $392 thousand for the three months ended March 31, 2021 and 2020, respectively.

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

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

The Company applied for the AI on Chip R&D subsidy program of the Ministry of Economic Affairs, and the “Shared Intelligent Computing Chiplet Architecture R&D Program” was reviewed and approved on November 20, 2020. The approved total subsidy amounted is $ 115,356 thousand. As of March 31, 2021, the accumulated subsidy received is $ 44,201 thousand (recognized as other financial assets), and the income from the recognized subsidy is $ 24,632 for the three months ended March 31, 2021. In addition, the Company has a special account for subsidies in accordance with regulations, and the monthly withdrawal amount should be withdrawn according to the monthly expenditure summary statement, and the withdrawal amount shall not be higher than the expenditure amount.

  • 42 -

29. DISPOSAL OF SUBSIDIARIES

2020

  • a. Analysis of assets and liabilities from liquidation

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

Ytrip
Technology Co.,
Ltd. and
Subsidiaries
Current assets
Cash and cash equivalents $ 2,106
Other receivables 281
Non-current assets
Property, plant and equipment 15
Intangible assets 1,814
Current liabilities
Others (106)
Net assets disposed of $ 4,110
  • b. Loss on liquidation of subsidiaries
Ytrip
Technology Co.,
Ltd. and
Subsidiaries
Collection price of investments accounted $ 1,240
Disposal of net assets (4,110)
The reclassification of other comprehensive income in respect of the subsidiary 10,283
Non-controlling interests 382
Gain on disposal $ 7,795
Net cash inflow on liquidation of subsidiaries
Ytrip
Technology Co.,
Ltd. and
Subsidiaries
Collection price of investments accounted $
1,240
Less: Disposal of cash and cash equivalent balances (2,106)
$
(866)
  • c. Net cash inflow on liquidation of subsidiaries

30. EQUITY TRANSACTIONS WITH NON-CONTROLLING INTERESTS

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

  • 43 -

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

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

31. CAPITAL MANAGEMENT

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

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

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

32. FINANCIAL INSTRUMENTS

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

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

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

  • 1) Fair value hierarchy

March 31, 2021
Financial assets at FVTPL
Mutual funds

Domestic/foreign
unlisted shares
Domestic/foreign listed
shares
Securities listed in the
ROC and other
countries - convertible
bonds
Limited partnership


Financial assets at FVTOCI
Domestic listed shares

Domestic/foreign
unlisted shares
Domestic private listed
shares

 Level 1
$ 778,171
248,290
210,127
975
-

$ 1,237,563

$ 85,853
47,923
-

$ 133,776
 Level 2
$ -

-

-

-
-

$ -

$ -

-
-

$ -
 Level 3
$ -

786,151

-

-
327,352

$ 1,113,503

$ -

73,332
7,663

$ 80,995
 Total
$ 778,171

1,034,441

210,127

975
327,352
$ 2,351,066
$ 85,853

121,255
7,663
$ 214,771
  • 44 -

December 31, 2020

Financial assets at FVTPL
Mutual funds

Domestic/foreign
unlisted shares
Domestic/foreign listed
shares
Securities listed in the
ROC and other
countries - convertible
bonds
Limited partnership


Financial assets at FVTOCI
Domestic/foreign listed
shares

Domestic private listed
shares
Domestic/foreign
unlisted shares


March 31, 2020
Financial assets at FVTPL
Mutual funds

Domestic/foreign listed
shares
Securities listed in the
ROC - convertible
bonds
Domestic/foreign
unlisted shares
Limited partnership


Financial assets at FVTOCI
Domestic listed shares

Domestic/foreign
unlisted shares

 Level 1
$ 656,424
144,984
87,933
2,820
-

$ 892,161

$ 81,506
-
32,323

$ 113,829

Level 1
$ 922,634
128,251
19,074
81,600
-

$ 1,151,559

$ 56,511
20,114

$ 76,625
 Level 2
$ -

-

-

-
-

$ -

$ -

-
-

$ -

Level 2
$ -

-

-

-
-

$ -

$ -
-

$ -
 Level 3
$ -

746,101

-

-
327,856

$ 1,073,957

$ -

11,255
67,444

$ 78,699

Level 3
$ -

-

-

589,491
274,974

$ 864,465

$ -
77,596

$ 77,596
 Total
$ 656,424

891,085

87,933

2,820
327,856
$ 1,966,118
$ 81,506

11,255
99,767
$ 192,528
Total
$ 922,634

128,251

19,074

671,091
274,974
$ 2,016,024
$ 56,511
97,710
$ 154,221

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

  • 45 -

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

For the three months ended March 31, 2021

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

Recognized in profit or loss
104,457
-
Recognized in other comprehensive
income (loss)
-
(12,010)
Purchases
1,139
14,267
Disposal
(8,100)
-
Transfers out of Level 3
(57,353)
-
Effects of exchange rate changes

(597)

39

Balance at March 31, 2021
$ 1,113,503
$ 80,995

For the three months ended March 31, 2020		 Total
$ 1,152,656
104,457

(12,010)
15,406
(8,100)
(57,353)

(558)
$ 1,194,498
Financial Assets
Financial Assets
at FVTPL
Financial Assets
at FVTOCI
Balance at January 1, 2020
$ 956,611
$ 80,235

Recognized in profit or loss
(17,173)
-
Recognized in other comprehensive
income (loss)
-
(2,806)
Purchases
14,592
-
Disposal
(2,051)
-
Transfers out of Level 3
(87,500)
-
Effects of exchange rate changes

(14)

167

Balance at March 31, 2020
$ 864,465
$ 77,596
 Total
$ 1,036,846
(17,173)

(2,806)
14,592
(2,051)
(87,500)

153
$ 942,061

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

  • a) The fair values of unlisted equity securities - domestic and foreign were determined using the market approach. The significant unobservable inputs used are listed in the table below. An increase in the price-to-book ratio or price-sales ratio or a decrease in the discount for lack of marketability used in isolation would result in increases in fair value.

March 31, December 31, March 31,
2021 2020 2020
Price-to-book ratio 2.58-5.50 2.41-5.78 1.18-7.62
Price-to-sales ratio 2.54-12.41 1.86-13.46 0.68-10.18
Discount for lack of marketability 10%-20% 10%-20% 10%-20%

  • b) The fair values of unlisted shares and emerging market shares and private funds were determined using the asset-based approach. The Group assesses that the amount of its net assets attributable to its investment approaches the fair value of the equity investment. The Group assesses the total value of the individual assets and liabilities covered by the target to reflect the overall value of the business.

  • 46 -

  • c) The fair values of unlisted shares and emerging market shares were determined using the income approach. In this approach, the discounted cash flow method was used to capture the present value of the expected future economic benefits to be derived from the ownership of these investees. The significant unobservable inputs used are listed in the table below. An increase in long-term revenue growth rates or a decrease in the weighted average cost of capital (WACC) or discount for lack of marketability used in isolation would result in increases in fair value.

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

c. March 31,
2021
Discount for lack of marketability
25.9%
Categories of financial instruments
March 31,
2021
December 31,
2020
March 31,
2020
Financial assets
Fair value through profit or loss (FVTPL)
$ 2,351,066
$ 1,966,118
$ 2,016,024
Financial assets at amortized cost (i)
4,873,561
5,179,818
3,808,346
Financial assets at fair value through other
comprehensive income
Equity instruments
214,771
192,528
154,221
Financial liabilities
Measured at amortized cost (ii)
1,454,026
1,214,367
850,831

  • i) The balances include financial assets, which comprise cash and cash equivalents, trade receivables, other receivables, other financial assets and refundable deposits.

  • ii) The balances include financial liabilities measured at amortized cost, which comprise short-term loans, trade payables, long-term liabilities - current portion, long term loans and guarantee deposits.

  • d. Financial risk management objectives and policies

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

  • 47 -

The corporate treasury function reports quarterly to the Group’ risk management committee.

1) Market risk

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

a) Foreign currency risk

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

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

For the carrying amounts of the Group's foreign currency denominated monetary assets and monetary liabilities (including those eliminated on consolidation) at the end of the reporting period, refer to Note 35.

Sensitivity analysis

The Group 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, accounts payable, other accounts payable, long-term and short-term loans, other financial assets, and deposit margins. A negative number below indicates a decrease in post-tax profit associated with the New Taiwan dollar strengthening $1.00 against USD and RMB. For a $1.00 weakening of the New Taiwan dollar against the relevant currency, there would be an equal and opposite impact on post-tax profit, and the balances below would be positive (negative).


Profit or loss		 USD Impact
For the Three Months Ended
**March 31 **
2021
2020

$ (5,247)
$ (4,693)

Profit or loss		 RMB Impact
For the Three Months Ended
**March 31 **
2021
2020

$ 927
$ 591
  • 48 -

b) Interest rate risk

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

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

March 31, March 31, December 31, March 31, March 31,
2021 2020 2020
Fair value interest rate risk
Financial assets $ 2,563,349 $ 2,585,743 $ 2,230,510
Financial liabilities 481,371 518,255 490,933
Cash flow interest rate risk
Financial assets 1,215,081 1,321,455 774,648
Financial liabilities 467,000 258,000 -

Sensitivity analysis

The sensitivity analysis below was determined based on the Group’s exposure to interest rates for both derivative and non-derivative instruments at the end of the reporting period. For floating rate liabilities, the analysis was prepared assuming the amount of each liability outstanding at the end of the reporting period was outstanding for the whole period. A 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.

Had interest rates increased/decreased by 0.125% and all other variables been held constant, the Group’s post-tax profit would have increased/decreased by $935 thousand, respectively, for the three months ended March 31, 2021 and increased/decreased by $968 thousand, respectively, for the three months ended March 31, 2020.

c) Other price risk

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

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

Had the prices of financial assets at FVTPL been 1% higher/lower, post-tax profit for the three months ended March 31, 2021 and 2020 would have increased/decreased by $23,511 thousand and $20,160 thousand, respectively.

Had the prices of financial assets at FVTOCI been 1% higher/lower, post-tax profit for the three months ended March 31, 2021 and 2020 would have increased/decreased by $2,148 thousand and $1,542 thousand, respectively.

  • 49 -

2) Credit risk

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

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

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

Trade receivables consist 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 covers are purchased.

The Group’s concentration of credit risk of 66%, 65% and 59% in total trade receivables as of March 31, 2021, December 31, 2020 and March 31, 2020, respectively, was related to the five largest customers within the property construction business segment.

3) Liquidity risk

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

The Group relies on bank borrowings as a significant source of liquidity. As of March 31, 2021, December 31, 2020 and March 31, 2020, the Group had available unutilized overdraft and financing facilities set out below.

a) Liquidity and interest rate risk tables

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

March 31, 2021

On Demand or
Less than
1 Month
Non-derivative financial liabilities
Non-interest bearing liabilities
$ 362,037
Lease liabilities
1,507
Variable interest rate liabilities
171
Fixed interest rate liabilities

155,415

$ 519,130
 1-3 Months
$ 253,259

3,398

-

-

$ 256,657
 More than 3
Months to 1
Year
Over 1 Year to
5 Years
$ 376 $ 35,173

13,621
50,898

87,000
380,000

97,055

5,466

$ 198,052
$ 471,537
 5+ Years
$ -

254,189

-

143,787
$ 397,976
  • 50 -

Additional information about the maturity analysis for lease liabilities

Less than 1
Year
1-5 Years
5-10 Years
Lease liabilities
$ 18,526
$ 50,898
$ 49,046
December 31, 2020
On Demand or
Less than
1 Month
1-3 Months
Non-derivative financial liabilities
Non-interest bearing
$ 337,374 $ 196,200
Lease liabilities
1,506
3,413
Variable interest rate liabilities
96
-
Fixed interest rate liabilities

189,117

-

$ 528,093
$ 199,613
 5-10 Years
$ 49,046
10-15 Years
15-20 Years
$ 49,046
$ 41,138

More than 3
Months to 1
Year
Over 1 Year to
5 Years
$ 308 $ 36,114

13,651
53,085

25,000
205,000

125,102

5,041

$ 164,061
$ 299,240
$

20+ Years
$ 114,959
5+ Years

-
256,641
-
140,367
$
397,008

Additional information about the maturity analysis for lease liabilities

Lease liabilities
 Less than 1
Year
$ 18,570
 1-5 Years
$ 53,085
 5-10 Years
10-15 Years

$ 49,046
$ 49,046
 15-20 Years
$ 41,689
 20+ Years
$ 116,860

March 31, 2020

On Demand or
Less than
1 Month
Non-derivative financial liabilities
Non-interest bearing liabilities
$ 274,367
Lease liabilities
1,414
Fixed interest rate liabilities

103,115

$ 378,896
 1-3 Months
$ 154,650

3,107

-

$ 157,757
 More than 3
Months to 1
Year
Over 1 Year to
5 Years
$ 616 $ 35,327

12,778
57,002

148,589

4,842

$ 161,983
$ 97,171
 5+ Years
$ -

263,997

145,037
$ 409,034

Additional information about the maturity analysis for lease liabilities

Lease liabilities
 Less than 1
Year
$ 17,299
 1-5 Years
$ 57,002
 5-10 Years
10-15 Years

$ 49,046
$ 49,046
 15-20 Years
$ 43,344
 20+ Years
$ 122,561

b) Financing facilities

Unsecured bank overdraft facilities
Amount used

Amount unused

 March 31,
2021
December 31,
2020
$ 726,450
$ 588,140

4,176,304

4,361,912

$ 4,902,754
$ 4,950,052
 March 31,
2020
$ 251,656

4,450,667
$ 4,702,323
  • 51 -

33. TRANSACTIONS WITH RELATED PARTIES

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

  • a. Name and relationship of related parties

Name Relationship with the Group

Global View Co., Ltd. Associate
Beijing Golden Global View Co., Ltd. Associate (Note)
iCatch Technology Co., Ltd. Associate

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

  • b. Sales of goods
For the Three Months Ended the Three Months Ended the Three Months Ended
**March 31 **
Line Item Related Party Category 2021 2020
Sales Associates $ 17,709 $ 12,009
Sales price to related parties is based on cost and market price. The sales terms to related parties are
similar to those with external customers.
Receivables from related parties (excluding loans to related parties)
March 31, December 31, March 31,
Line Item Related Party Category 2021 2020 2020
Trade receivables Associates
$		 10,248
 $
9,740
 $ 11,514
Other trade
 Associates
$
223
 $
243
 $
254
receivables

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

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

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

  • d. Prepayments (excluding loans to related parties)
March 31, March 31, December 31, December 31, March 31, March 31,
Line Item Related Party Category 2021 2020 2020
Other current Associates
 $
25		 $
108
 $
-
assets
  • 52 -

e. Other transactions with related parties

Account Item
Related Party Type
Operating expenses
Associates
Non-operating revenue
Associates		 For the Three Months Ended
**March 31 **		 For the Three Months Ended
**March 31 **		 For the Three Months Ended
**March 31 **

2021
$ 125

$ 2,661
 2020
$ -
$ 2,439

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

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

  • f. Compensation of key management personnel

Short-term employee benefits
Post-employment benefits		 For the Three Months Ended
**March 31 **		 For the Three Months Ended
**March 31 **		 For the Three Months Ended
**March 31 **



2021
$ 28,685


302

$ 28,987
 2020
$ 15,985

298
$ 16,283

The remuneration of directors and other key management personnel was determined by the compensation committee in accordance with individual performance and the market trend.

34. PLEDGED OR MORTGAGED ASSETS

The following assets of the company have been pledged or mortgaged as endorsement guarantees, loans, purchase quotas, leased land and collateral for customs clearance:

Buildings, net

Pledged time deposits (classified as other
financial assets, including current and
non-current)


 March 31,
2021
December 31,
2020

$ 571,482
$ 576,333

152,202

149,729


$ 723,684
$ 726,062
 March 31,
2020
$ 590,884
131,813
$ 722,697
  • 53 -

35. SIGNIFICANT ASSETS AND LIABILITIES DENOMINATED IN FOREIGN CURRENCIES

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

March 31, 2021

Foreign
Currency Exchange Carrying
(In Thousands) Rate Amount
Financial assets
Monetary items
USD $
31,918		 28.5350
 $
910,780
CNY 2,251 4.3440 9,778
JPY 371 0.2577 96
HKD 152 3.6700 558
GBP 3 39.2300 118
EUR 1 33.4800 33
Non-monetary items
CHF 520 30.2750 15,731
Financial liabilities
Monetary items
USD 26,671 28.5350 761,057
CNY 3,178 4.3440 13,805
JPY 842 0.2577 217
EUR 159 33.4800 5,323
December 31, 2020
Foreign
Currency Exchange Carrying
(In Thousands) Rate Amount
Financial assets
Monetary items
USD $
40,747		 28.4800 $ 1,160,475
CNY 1,519
4.3770		 6,649
JPY 371
0.2763		 103
HKD 152
3.6730		 558
GBP 3
38.9000		 117
EUR 1
35.0200		 35
Nonmonetary items
CHF 560
32.305		 18,089
Financial liabilities
Monetary items
USD 27,028 28.4800 769,757
CNY 5,839
4.3770		 26,083
  • 54 -

March 31, 2020

Foreign
Currency Exchange Carrying
(In Thousands) Rate Amount
Financial assets
Monetary items
USD $
28,142		 30.225
 $
850,592
CNY 950 4.255 4,042
JPY 371 0.279 104
HKD 118 3.898 460
GBP 3 37.250 112
EUR 1 33.240 33
Nonmonetary items
USD 28 30.620 848
CHF 734 30.925 22,705
Financial liabilities
Monetary items
USD 23,449 30.225 708,746
CNY 1,541 4.255 6,557
JPY 1,196 0.279 334

The foreign currency exchange losses (realized and unrealized) amounted to $6,348 thousand and $5,261 thousand for the three months ended March 31, 2021 and 2020, respectively. Due to the diversity of the Group’s assets and liabilities denominated in foreign currencies, it is impractical to disclose foreign currency exchange gains and losses by each significant foreign currency other than those with significant influence.

36. ADDITIONAL DISCLOSURES

  • a. Information about significant transactions and investees and b. Information on investees:

  • 1) Financings provided: Table 1 (attached)

  • 2) Endorsements/guarantees provided: Table 2 (attached)

  • 3) Marketable securities held: Table 3 (attached)

  • 4) Marketable securities acquired or 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.

  • 55 -

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

  • 9) Trading in derivative instruments: No.

  • 10) Intercompany relationships and significant intercompany transactions: Table 4 (attached)

  • 11) Information on investees: Table 5 (attached)

  • c. Information on investments in mainland China

  • 1) Information on any investee company in mainland China, showing the name, principal business activities, paid-in capital, method of investment, inward and outward remittance of funds, ownership percentage, net income of investees, investment income or loss, carrying amount of the investment at the end of the period, repatriations of investment income, and limit on the amount of investment in the mainland China area: (Table 6)

  • 2) Any of the following significant transactions with investee companies in mainland China, either directly or indirectly through a third party, and their prices, payment terms, and unrealized gains or losses: (Table 7)

    • a) The amount and percentage of purchases and the balance and percentage of the related payables at the end of the period.

    • b) The amount and percentage of sales and the balance and percentage of the related receivables at the end of the period.

    • c) The amount of property transactions and the amount of the resultant gains or losses.

    • d) The balance of negotiable instrument endorsements or guarantees or pledges of collateral at the end of the period and the purposes.

    • e) The highest balance, the end of period balance, the interest rate range, and total current period interest with respect to financing of funds.

    • f) Other transactions that have a material effect on the profit or loss for the period or on the financial position, such as the rendering or receipt of services.

  • d. Information of major shareholders ： List all shareholders with ownership of 5% or greater showing the name of the shareholder, the number of shares owned, and percentage of ownership of each shareholder (Table 8)

Except for the information disclosed in Tables 1 to 8, there is no further information about other significant transactions.

37. SEGMENT INFORMATION

Information reported to the chief operating decision maker for the purpose of resource allocation and assessment of segment performance focuses on types of goods provided. Since all products have similar economic characteristics and product selling is centralized, the Group reports information as one segment. Thus, the information of the operating segment is the same as that presented in the accompanying financial statements. That is, the revenue by sub-segment and operating results for the three months ended March 31, 2021 and 2020 are shown in the accompanying consolidated statements of comprehensive income, and the assets by segment as of March 31, 2021 and 2020 are shown in the accompanying consolidated balance sheets.

  • 56 -

TABLE 1

SUNPLUS TECHNOLOGY COMPANY LIMITED AND SUBSIDIARIES

FINANCINGS PROVIDED FOR THE THREE MONTHS ENDED MARCH 31, 2021 (In Thousands of New Taiwan Dollars, Unless Stated Otherwise)

No. Lender Borrower Financial
Statement Account		 Related
Parties		 Highest Balance
for the Period		 Ending
Balance		 Actual
Borrowing
Amount		 Interest Rate Nature of
Financing		 Business
Transaction
Amounts		 Reasons for
Short-term
Financing		 Allowance for
Bad Debt		 **Collateral ** **Collateral ** Financing Limit
for Each
**Borrower **
Aggregate
Financing Limit
Item Value
2
3
4
5
6		 Sunplus Technology
(Shanghai) Co., Ltd.
Russell Holdings Ltd.
Sunplus Venture Capital
Co., Ltd.
Sunplus Prof-tek
Technology (Shenzhen)
Lin Shih Investments co.,
Ltd.		 Sunplus APP
Technology
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		 Yes
Yes
Yes
Yes
Yes		 $ 12,275
242,548
158,064
37,045
102,726		 $ 12,163
242,548
124,127
36,707
102,726		 $ 12,163
242,548
124,127
36,707
102,726		 1.80%
-
0.58%
1.80%
0.58%		 Note 1
Note 1
Note 1
Note 1
Note 1		 $ -
-
-
-
-		 Note 2
Note 3
Note 4
Note 5
Note 6		 $ 12,163
-
-
36,707
-		 -
-
-
-
-		 $ -
-
-
-
-		 $ 48,138
(Note 7)
442,278
(Note 8)
348,080
(Note 9)
72,944
(Note 10)
334,800
(Note 11)		 $ 48,138
(Note 7)
442,278
(Note 8)
348,080
(Note 9)
72,944
(Note 10)
334,800
(Note 11)

  • Note 1: Short-term financing.

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

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

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

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

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

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

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

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

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

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

  • 57 -

TABLE 2

SUNPLUS TECHNOLOGY COMPANY LIMITED AND SUBSIDIARIES

ENDORSEMENTS/GUARANTEES PROVIDED FOR THE THREE MONTHS ENDED MARCH 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
1
(Note 1)
RUSSELL
HOLDINGS
LTD.		 Sun Media Technology Co., Ltd. 3 (Note 2) $ 331,708
(Note 3)		 $ 114,140 $ 114,140 $ 114,140 $ 114,140 20.65 $ 331,078
(Note 3)		 No No Yes

Note 1: Investee.

Note 2: The Company and its subsidiaries jointly hold more than 50% of the ordinary shares of the endorsee.

  • Note 3: 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.

  • 58 -

TABLE 3

SUNPLUS TECHNOLOGY COMPANY LIMITED AND SUBSIDIARIES

MARKETABLE SECURITIES HELD MARCH 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 March 31, 2021 March 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 Shih Investment Co., Ltd.		 Taishin 1699 Money Market Fund
Taishin ESG Emerging Markets Bond Fund
Yuanta USD Money Market Fund
Yuanta Emerging Asia USD Bond Fund
PineBridge Global ESG Quantitative Bond
Fund
PineBridge Multi-Income Fund
Evergreen Steel Co., Ltd.
Triknight Capital Corporation
Marvest Series 1 Fund
Yuanta Emerging Indonesia and India 4
years Bond Fund
Taiwan Mask Corp.
UPI Semiconductor Corp.
MACRONIX INTERNATIONAL CO.,
LTD.
AES Holding Co., Ltd.
A-Spine Asia Co., Ltd.
Enterex International Limited - Convertible
Bonds
Yong Feng Yu Inc.
Minton Optic Industry Co., Ltd.
Genius Vision Digital Co., Ltd.
Sanjet Technology Corporation
Ortery Technologies, Inc.
Lead Sun Corporation
Chain Sea Information Integration Co., Ltd.
AIII CO., Ltd.
GEMFOR Leading Financial Solution
Provider Fund		 -
-
-
-
-
-
-
-
-
-
~~-~~
-
-
-
-
-
-
-
-
-
-
-
-
-
-		 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 -
non-current
Financial assets at FVTPL -
non-current
Financial assets at FVTPL -
non-current
Financial assets at FVTPL - current
Financial assets at FVTPL - current
Financial assets at FVTPL - current
Financial assets at FVTPL - current
Financial assets at FVTPL - current
Financial assets at FVTPL - current
Financial assets at FVTPL - current
Financial assets at FVTPL -
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		 735
2,000
99
139
2,894
95
1,500
29,825
2
1,500
101
250
180
15
197
30
642
4,272
300
8
103
1,000
48
26
13		 $ 10,035

19,635

30,020

43,831

29,202

30,977

90,780

311,021

-

14,664

7,221

57,353

7,983

9,450

9,882

975

39,637

-

-

-

-

27,722

474

431

216		 -
-
-
-
-
-
-
5
-
-
-
-
-
-
-
-
-
7
4
-
1
12
1
-
-		 $ 10,035
19,635
30,020
43,831
29,202
30,977
90,780
311,021
-
14,664
7,221
57,353
7,983
9,450
9,882
975
39,637
-
-
-
-
27,722
474
431
216		 Note 3
Note 3
Note 3
Note 3
Note 3
Note 3
Note 4
Note 1
Note 1
Note 3
Note 2
Note 4
Note 2
Note 2
Note 1
Note 2
Note 4
Note 1
Note 1
Note 1
Note 1
Note 1
Note 1
Note 1
Note 1

(Continued)

  • 59 -
Holding Company Name Type and Name of Marketable Security Relationship with the Holding
Company		 Financial Statement Account March 31, 2021 March 31, 2021 Note
Shares or Units
(In Thousands)		 Carrying
Amount		 Percentage of
Ownership (%)		 Market Value or
Net Asset Value
Lin Shih Investment Co., Ltd.
Russell Holdings Limited
Sunplus Venture Capital Co., Ltd.		 Ability Enterprise Co., Ltd.
Sunplus Technology Co., Ltd.
Prine Rich International Co., Ltd.
Synerchip Inc.
OZ Optics Limited
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.
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.
Minton Optic Industry Co., Ltd.
Genius Vision Digital Co., Ltd.
Ortery Technologies, Inc.
CYBERON Corporation		 -
Parent Company
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-		 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
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		 5,434
3,560
33
6,452
1,000
2,557
4,000
1,250
-
1,000
-
-
1,710
1,190
-
108
1,833
1
9
49
1,900
5,000
375
68
786		 $ 85,853

106,800

3,290

-

-

-

-

-

-

-

14,114

58,205

15,409

14,268

1,938

7,722

-

-

-

-

-

-

-

-

28,250		 2
1
-
12
8
-
15
1
5
3
2
6
13
2
-
-
22
-
-
-
10
8
5
1
8		 $ 85,853
106,800
3,290
-
-
-
-
-
-
-
14,114
58,205
15,409
14,268
1,938
7,722
-
-
-
-
-
-
-
-
28,250		 Note 2
Note 2
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

(Continued)

  • 60 -
Holding Company Name Type and Name of Marketable Security Relationship with the Holding
Company		 Financial Statement Account March 31, 2021 March 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.		 Grand Fortune Venture Capital Co., Ltd.
Huijia Health Life Technology
San Neng Group Holding Co., Ltd.
Raynergy Tek 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
Protect Life International Biomedical Inc.
Yang Ming Marine Transport Corp.
Grand Pacific Petrochemical Corp.
LITE-ON Technology Corp.
GF Live Treasury Currency B
GF Every Day The Red Haired Type
Money Market Fund B
GF Currency Fund B
Chongqing CYIT Communication
Technology Co., Ltd.
Ready Sun Investment Group Fund
Xiamen Xm-plus Technology Ltd.
Franklin Templeton Sinoam Money Market
Fund
Mega Diamond Money Market Fund
Yuanta 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		 -
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-		 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 FVTOCI -
non-current
Financial assets at FVTOCI -
non-current
Financial assets at FVTPL - current
Financial assets at FVTPL - current
Financial assets at FVTPL - current
Financial assets at FVTPL - current
Financial assets at FVTPL - current
Financial assets at FVTPL - current
Financial assets at FVTPL -
non-current
Financial assets at FVTPL -
non-current
Financial assets at FVTPL -
non-current
Financial assets at FVTPL - current
Financial assets at FVTPL - current
Financial assets at FVTPL - current
Financial assets at FVTPL - current
Financial assets at FVTPL - current
Financial assets at FVTPL - current
Financial assets at FVTPL - current		 5,000
1,000
900
5,210
-
-
-
-
962
1,247
3,000
1,364
800
800
400
9,400
5,300
9,600
-
-
-
8,725
810
6,610
3,933
6,658
2,792
5,877		 $ 55,752

17,590

41,850

75,962

34,646

68,174

40,584

42,691

7,663

47,923

22,114

2,520

30,160

22,000

25,120

41,105

23,170

41,956

-

41,216

56,544

91,055

10,254

80,080

60,025

90,440

40,004

80,248		 7
5
1
15
10
2
7
8
-
4
6
4
-
-
-
-
-
-
3
16
3
-
-
-
-
-
-
-		 $ 55,752
17,590
41,850
75,962
34,646
68,174
40,584
42,691
7,663
47,923
22,114
2,520
30,160
22,000
25,120
41,105
23,170
41,956
-
41,216
56,544
91,055
10,254
80,080
60,025
90,440
40,004
80,248		 Note 1
Note 1
Note 2
Note 1
Note 1
Note 1
Note 1
Note 1
Note 1
Note 4
Note 1
Note 1
Note 2
Note 2
Note 2
Note 3
Note 3
Note 3
Note 1
Note 1
Note 1
Note 3
Note 3
Note 3
Note 3
Note 3
Note 3
Note 3

(Continued)

  • 61 -
Holding Company Name Type and Name of Marketable Security Relationship with the Holding
Company		 Financial Statement Account March 31, 2021 March 31, 2021 Note
Shares or Units
(In Thousands)		 Carrying
Amount		 Percentage of
Ownership (%)		 Market Value or
Net Asset Value
Sunplus Innovation Technology Inc.
Sunext Technology Co., Ltd.
Jslilicon Technology Co., Ltd. (Ru
Dong)
Magic Sky Limited
Giant Rock Inc.		 Advanced Silicon SA
Advanced NuMicro System, Inc.
PointGrab Ltd.
Evergreen Steel Co., Ltd.
TSMC Co., Ltd
UMC Co., Ltd
Fuh Hwa Taiwan Good Income Fund
Franklin Utilities Fund Class A
BlackRock Global Funds - World Mining
Fund A2
GF Live Treasury Currency A
GF Every Day The Red Haired Type
Money Market Fund B
GF Purse Money Market Fund A
GTA Co., Ltd.
Xiamen Xm-plus Technology Ltd.		 -
-
-
-
-
-
-
-
-
-
-
-
-
-		 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 - current
Financial assets at FVTPL - current
Financial assets at FVTPL - current
Financial assets at FVTPL -
non-current
Financial assets at FVTPL -
non-current		 1,000
2,000
182
1,000
40
700
1,000
18
6
580
580
530
1,413
-		 $ 15,731

-

-

60,520

23,480

35,140

11,120

10,531

10,473

2,542

2,543

2,323

-

230,030		 10
8
1
-
-
-
-
-
-
-
-
-
-
13		 $ 15,731
-
-
60,520
23,480
35,140
11,120
10,531
10,473
2,542
2,543
2,323
-
230,030		 Note 1
Note 1
Note 1
Note 4
Note 2
Note 2
Note 3
Note 3
Note 3
Note 3
Note 3
Note 3
Note 1
Note 1

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

Note 4: The market value was based on the average quoted price as of March 31, 2021.

(Concluded)

  • 62 -

TABLE 4

SUNPLUS TECHNOLOGY COMPANY LIMITED AND SUBSIDIARIES

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

Company Name Counterparty Flow of
Transactions
(Note 5)		 Intercompany Transactions Intercompany Transactions Intercompany Transactions
Financial Statement Account Item Amount Terms Percentage of Consolidated
Total Gross Sales or Total
Assets
Sunplus Technology Co., Ltd.
(the “Company”)		 Generalplus Technology Inc. 1 Sales
Notes and accounts receivable
Non-operatingincome		 $ 1,629
1,188
33		 Note 1
Note 1
Note 3		 0.10%
0.01%
-
Sunext Technology Co., Ltd. 1 Sales
Non-operating income
Other receivable		 18
541
268		 Note 1
Note 2
Note 3		 -
0.03%
-
Sunplus Innovation Technology Inc. 1 Sales
Non-operating income
Notes and accounts receivable
Other receivables		 90
1,088
63
217		 Note 1
Note 2
Note 1
Note 3		 0.01%
0.06%
-
-
Jumplux Technology Co., Ltd. 1 Sales
Non-operating income
Notes and accounts receivable
Other receivables		 1,031
4,008
175
1,051		 Note 1
Notes 2 and 4
Note 1
Note 3		 0.06%
0.24%
-
0.01%
GenkiTek Co. 1 Other receivables
Non-operatingincome		 96
287		 Note 3
Note2		 -
0.02%
Chongqing CQPlus1 Technology Co., Ltd. 1 Cost of goods sold
Other accrued expenses		 6,152
1,616		 Note 2
Note 1		 0.36%
0.01%
Sunplus Innovation Technology Inc. Sun Media Technology Co., Ltd. 2 Other accrued expenses
Marketing expenses		 1,261
1,264		 Note 3
Note2		 0.01%
0.07%
Lingyao Technology 2 Marketing expenses
Other accrued expenses		 3,845
3,843		 Note 2
Note 3		 0.23%
0.03%
Generalplus Technology Inc. Generalplus Technology (H.K.) Inc. 2 Marketing expenses
Otheraccrued expenses		 2,510
2,531		 Note 2
Note 3		 0.15%
0.02%
Generalplus Technology (Shenzhen) Inc. 2 Sales
Research and development expenses
Notes and accounts receivable
Other accrued expenses		 747
17,307
756
17,454		 Note 2
Note 2
Note 3
Note 3		 0.04%
1.02%
0.01%
0.13%
Sunplus Innovation Technology Inc. 2 Sales
Notes and accountsreceivable		 858
911		 Note 1
Note 3		 0.05%
0.01%
Sunplus Technology (Shanghai) Co., Ltd. SunMedia Technology Co., Ltd. 2 Other accrued expenses
Research and development expenses		 76
77		 Note 3
Note 2		 0.01%
0.03%
Lin Shih Investment Co., Ltd. Sun Media Technology Co., Ltd. 2 Other receivables
Interest revenue		 102,784
158		 Note 3
Note 2		 0.79%
0.01%
Sunplus Venture Capital Co., Ltd. Sun Media Technology Co., Ltd. 2 Other receivables
Interestrevenue		 124,968
236		 Note 3
Note2		 0.96%
0.01%
Russell Holdings Limited Sun Media Technology Co., Ltd. 2 Other receivables 242,548 Note 3 1.86%

(Continued)

  • 63 -
Company Name Counterparty Flow of
Transactions
(Note 5)		 Intercompany Transactions Intercompany Transactions Intercompany Transactions
Financial Statement Account Item Amount Terms Percentage of Consolidated
Total Gross Sales or Total
Assets
Sunplus App Technology Sunplus Technology (Beijing) 2 Management expenses
Refundable deposits
Other current assets
Other accrued expenses		 $ 96
33
49
41		 Note 2
Note 2
Note 2
Note 2		 0.01%
-
-
-
SunplusProf-tek(Shenzhen) Co.,Ltd. LingyaoTechnology 2 Non-operatingincome 1,411 Note2 0.08%
Sun Media Technology Co., Ltd. Sunplus Technology (Beijing) 2 Research and development
Accounts payable		 517
514		 Note 2
Note 3		 0.03%
-

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

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

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

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

Note 5: 1 - From parent company to subsidiary. 2 - Between subsidiaries.

(Concluded)

  • 64 -

TABLE 5

SUNPLUS TECHNOLOGY COMPANY LIMITED AND SUBSIDIARIES

NAMES, LOCATIONS, AND RELATED INFORMATION OF INVESTEES OVER WHICH THE COMPANY EXERCISES SIGNIFICANT INFLUENCE MARCH 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 March 31, 2021 Balance as of March 31, 2021 Balance as of March 31, 2021 Net Income
(Loss) of the
Investee		 Investment
Gain (Loss)		 Note
March 31,
2021		 December 31,
2020		 Shares (In
Thousands)		 Percentage of
Ownership (%)		 Carrying
Amount
Sunplus Technology Company Limited
Lin Shih 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 Shih 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.
Yizhiliang Accelerator Co., Ltd.
Jumplux Technology Co., Ltd.
Sunplus Innovation Technology Inc.
iCatch Technology, Inc.
Sunplus mMedia Inc.
GenKi Tek Co.
Yizhiliang Accelerator Co., Ltd.
Autosys Co., Ltd.
Ventureplus Mauritius Inc.
Ventureplus Cayman Inc.
Generalplus International (Samoa) Inc.
Generalplus (Mauritius) Inc.
Generalplus Technology (Hong Kong) Co., Ltd.		 Belize
Belize
Hsinchu, Taiwan
Hsinchu, Taiwan
Hsinchu, Taiwan
Hsinchu, Taiwan
Hsinchu, Taiwan
Cayman Islands, British West Indies
Hsinchu, Taiwan
Hsinchu, Taiwan
Hsinchu, Taiwan
Hsinchu, Taiwan
Kowloon Bay, Hong Kong
Samoa
Hsinchu, Taiwan
Hsinchu, Taiwan
Hsinchu, Taiwan
Taipei, Taiwan
Hsinchu, Taiwan
Hsinchu, Taiwan
Hsinchu, Taiwan
Hsinchu, Taiwan
Hsinchu, Taiwan
Hsinchu, Taiwan
Hsinchu, Taiwan
Hsinchu, Taiwan
Hsinchu, Taiwan
Taipei, Taiwan
Hsinchu, Taiwan
Cayman Islands, British West Indies
Mauritius
Cayman Islands, British West Indies
Samoa
Mauritius
Hong Kong		 Investment
Investment
Consumer electronics, components and
rental of buildings
Investment
Design of ICs
Investment
Design of ICs
Investment
Design of ICs
Design of ICs
Design of ICs
Management
International trade
Investment
Design of ICs
Investment
Design of ICs
Information software service
Design of ICs
Design of ICs
Design of ICs
Design of ICs
Investment management consultant
Design of ICs
Design of ICs
Design of ICs
Design of ICs
Software development
Investment management consultant
Investment
Investment
Investment
Investment
Investment
Sales		 $ 2,293,491
( US$ 74,605
RMB 37,900 )
222,245
( US$ 5,642
RMB 14,100 )
315,658
699,988
281,001
829,982
382,894
716,514
( US$ 25,110 )
207,345
983,237
407,565
5,000
40,645
( HK$ 11,075 )
292,198
( US$ 10,240 )
2,596,792
70,157
132,000
174,000
86,256
15,701
9,645
19,408
1,250
101,000
57,388
33,439
44,878
20,000
1,250
71,338
( US$ 2,500 )
2,293,491
( US$ 74,605
RMB 37,900 )
2,293,491
( US$ 74,605
RMB 37,900 )
544,733
( US$ 19,090 )
544,733
( US$ 19,090 )
11,129
( US$ 390 )		 $ 2,293,491
( US$ 74,605
RMB 37,900 )
222,245
( US$ 5,642
RMB 14,100 )

315,658

699,988

281,001

829,982

382,894
716,514
( US$ 25,110 )

207,345

983,237

407,565

5,000
40,645
( HK$ 11,075 )
292,198
( 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
71,338
( US$ 2,500 )
2,293,491
( US$ 74,605
RMB 37,900 )
2,293,491
( US$ 74,605
RMB 37,900 )
544,733
( US$ 19,090 )
544,733
( US$ 19,090 )
11,129
( US$ 390 )		 -
-

8,229

70,000

37,324

83,000

29,949
25,110

20,735

58,778

22,441

500
11,075
-

16,240

5,400

13,200

17,400

14,892

1,075

965

650

125

10,100

2,904

3,332

1,909

2,000

125
5,000
-
-
19,090
19,090
-		 100
100
13
100
34
100
58
100
29
93
90
100
100
100
100
100
55
35
14
2
1
3
13
42
6
5
8
63
13
16
100
100
100
100
100		 $ 1,447,934
334,095
366,137
834,680
745,392
905,529
829,339
551,681
239,547
238,073
23,307
3,529
30
2,439
29,381
80,665
(15,313 )
171,489
298,715
27,542
12,104
5,339
963
(11,716 )
81,395
41,811
430
12,872
963
71,016
1,447,392
1,447,911
499,144
499,424
5,703		 $ (1,539 )

66,007

40,375

59,981

96,790

24,157

143,950

1,965

(12,741 )

28,471

(22 )

(49 )

-

-

(25 )

21,274

(9,585 )

(7,258 )

96,790

143,950

(12,741 )

(22 )

(805 )

(9,585 )

143,950

(12,741 )

(22 )

(3,434 )

(805 )

(3,870 )

(1,539 )

(1,539 )

3,887

3,887

(293 )		 $ (1,539 )

66,007

5,274

59,981

33,199

24,157

83,792

1,965

(4,544 )

26,350

(19 )

(49 )

-

-

(25 )

21,274

(5,272 )

(2,511 )

13,247

3,007

(171 )

(1 )

(101 )

(4,033 )

8,124

(592 )

(2 )

(2,146 )

(101 )

(628 )

(1,539 )

(1,539 )

3,887

3,887

(293 )		 Subsidiary
Subsidiary
Investee
Subsidiary
Subsidiary
Subsidiary
Subsidiary
Subsidiary
(Note 2)
Investee
Subsidiary
Subsidiary
Subsidiary
Subsidiary
Subsidiary
Subsidiary
Subsidiary
Subsidiary
Investee
Subsidiary
Subsidiary
Investee
Subsidiary
Investee
Subsidiary
Subsidiary
Investee
Subsidiary
Subsidiary
Investee
Investee
Subsidiary
Subsidiary
Subsidiary
Subsidiary
Subsidiary

(Continued)

  • 65 -
Investor Investee Location Main Businesses and Products Investment Amount Investment Amount Balance as of March 31, 2021 Balance as of March 31, 2021 Balance as of March 31, 2021 Net Income
(Loss) of the
Investee		 Investment
Gain (Loss)		 Note
March 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		 $ 222,245
( US$ 5,642
RMB 14,100 )
22,029
( US$ 772 )
97,490
( US$ 1,270
RMB 14,100 )
102,726
( US$ 3,600 )
(Note 3 )		 $ 222,245
( US$ 5,642
RMB 14,100 )
22,029
( US$ 772 )
97,490
( US$ 1,270
RMB 14,100 )
102,726
( US$ 3,600 )

(Note 3 )		 -
-
-
-

(Note 3 )		 100
100
100
100
(Note 3)		 $ 334,095
301
231,915
101,878
(Note 3 )		 $ 66,007

1

68,299

(2,293 )

(Note 3 )		 $ 66,007

1

68,299

(2,293 )

(Note 3 )		 Subsidiary
Subsidiary
Subsidiary
Subsidiary
Subsidiary

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

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

Note 3: The establishment registration has been completed at the end of March 2021, but the actual remittance has not completed remitted:

(Concluded)

  • 66 -

TABLE 6

SUNPLUS TECHNOLOGY COMPANY LIMITED AND SUBSIDIARIES

INFORMATION ON INVESTMENTS IN MAINLAND CHINA FOR THE THREE MONTHS ENDED MARCH 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 Investment Flows Accumulated
Outflow of
Investment from
Taiwan as of
March 31, 2021		 % Ownership of
Direct or Indirect
Investment
Net Income
(Loss) of the
investee		 Investment Loss
(Note 2)		 Carrying Value
as of
March 31, 2021		 Accumulated
Inward
Remittance of
Earnings as of
March 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.
Sunplus Technology (Beijing)
JSilicon Technology Co., Ltd.
(Ru Domg)
Lingyao 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
Sale of electronic components 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		 $ 490,802
(US$ 17,200
920,254
(US$ 32,250)
570,700
(US$ 20,000)
118,157
(RMB
27,200)
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 4
Note 6
Note 5		 $ 503,785
(US$ 17,655)
920,254
(US$ 32,250)
570,700
(US$ 20,000)
113,158
(US$ 586
RMB
22,200)
117,288
(RMB
27,000)
-
102,726
(US$ 3,600)
-		 $
-
-
-
-
-
-
-
-		 $ -

-

-

-

-

-

-

-		 $ 503,785
(US$ 17,655)

920,254
(US$ 32,250)

570,700
(US$ 20,000)

113,158
(US$ 586
RMB
22,200)

117,288
(RMB
27,000)

-

102,726
(US$ 3,600)

-		 100%
100%
100%
96%
100%
100%
100%
100%		 $ 28,245
(15,466)
(13,501)
(571)
(528)
85
(1,960)
(9,562)		 $ 28,245
(Note 2)

(15,466)
(Note 2)

(13,501)
(Note 3)

(550)
(Note 3)

(528)
(Note 3)

85
(Note 3)

(2,293)
(Note 3)

(9,562)
(Note 3)		 $ 481,377
729,444
179,543
4,043
50,910
27,202
101,878
71,029		 $ -

-

-

-

-

-

-

-
Accumulated Investment in Mainland China as of
March 31, 2021		 Investment Amounts Authorized by the Investment Commission, MOEA Limit on Investment
$ 2,501,126
( US$ 79,872
RMB
51,100
)		 $ 2,512,236
( US$ 78,602
RMB
62,000
)		 $ 5,186,235
Sunplus Venture Capital Co., Ltd.
Accumulated Investment in Mainland China as of
March 31, 2021(Note 7)		 Investment Amounts Authorized by Investment Commission, MOEA
(Note 8)		 Limit on Investment
$ 35,954
( US$ 1,260
)		 $ 35,954
( US$ 1,260
)		 $ 522,119

(Continued)

  • 67 -

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
March 31, 2021		 % Ownership of
Direct or Indirect
Investment
Net Loss of the
investee		 Investment Loss
(Note 2)		 Carrying Value
as of
March 31, 2021		 Accumulated
Inward
Remittance of
Earnings as of
March 31, 2021
Outflow Inflow
Generalplus Shenzhen Design of ICs, after sales service and marketing
research		 $ 533,605
(US$ 18,700)		 Note 1 $ 533,605
(US$ 18,700)		 $ - $ - $ 533,605
(US$ 18,700)		 100% $ 4,180 $ 4,180 $ 493,701 $ -
Accumulated Investment in Mainland China as of
March 31, 2021		 Investment Amount Authorized by the Investment Commission, MOEA Limit on Investment
$ 533,605
( US$ 18,700
)		 $ 533,605
( US$ 18,700
)		 $ 1,321,408

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: Based on the financial statements which had not been reviewed in the same period.

  • Note 4: Sunplus Technology (Shanghai) Co., Ltd.’s indirect investment in a company located in mainland China.

  • Note 5: Shanghai Sunplus Technology Co., Ltd. and Sunplus Lihua (Shenzhen) Technology Co., Ltd. reinvested in a company located in mainland China.

  • Note 6: It is a company located in mainland China that acquired the investment of the third regional investment company on September 2, 2019.

  • Note 7: The Ministry of Economic Affairs approved an investment in the shares of San Neng Group Holding Co., Ltd., which is accounted for under the financial assets at fair value through profit or loss- non-current.

Note 8: The original foreign currency was derived from the exchange rate on March 31, 2021.

(Concluded)

  • 68 -

TABLE 7

SUNPLUS TECHNOLOGY COMPANY LIMITED AND SUBSIDIARIES

SIGNIFICANT TRANSACTIONS WITH INVESTEE COMPANIES IN MAINLAND CHINA, EITHER DIRECTLY OR INDIRECTLY THROUGH A THIRD PARTY, AND THEIR PRICES, PAYMENT TERMS, AND UNREALIZED GAINS OR LOSSES

FOR THE THREE MONTHS ENDED MARCH 31, 2021

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

Investee Company Transaction Type Research and Development
Expense		 Research and Development
Expense		 Price Transaction Details Transaction Details Notes/Trade Receivables
and other accrued expenses		 Notes/Trade Receivables
and other accrued expenses		 Unrealized
(Gain) Loss		 Note
Amount % Payment Terms Comparison with
Market Transactions		 Ending Balance
%
Generalplus Technology (Shenzhen)
Corp.		 Development and
processing services
Sales		 $ 17,307
747		 14.13
0.11		 Based on contract
Based on contract		 Based on contract
Based on contract		 Not comparable with
market transactions
Not comparable with
market transactions		 $ 17,454
756		 87.20
45.36
$ -

167		 NA
NA
  • 69 -

TABLE 8

SUNPLUS TECHNOLOGY COMPANY LIMITED AND SUBSIDIARIES

INFORMATION OF MAJOR SHAREHOLDERS MARCH 31, 2021 (In Thousands of New Taiwan Dollars, Unless Stated Otherwise)

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

  • Note 1: The information of major shareholder in this table is calculated by Taiwan Depository & Clearing Corporation on the last business day at the end of the quarter, and the total number of ordinary shares and special shares held by the shareholders who have completed the delivery of the company which is not physical registration (including treasury shares) is more than 5%. The share capital recorded in the Company’s consolidated financial report and the actual number of shares delivered without physical registration may be different or different due to the basis of preparation and calculation.

  • Note 2: If the above information is a shareholder’s shareholding trust, the trustee will open a trust account to set up a separate account. As for shareholders who deal with the distribution of insider shares with a shareholding ratio of more than 10% in accordance with the Securities Exchange Act, their shareholdings include their shareholdings, including their delivery of trusts and shares that have the right to make decisions on trust property, etc. Refer to Market Observation Post System website.

  • 70 -

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