SYNCMOLD - Annual Report 2021 | FinancialReports.eu

Syncmold Enterprise Corporation and Subsidiaries

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

DECLARATION OF CONSOLIDATION OF FINANCIAL STATEMENTS OF AFFILIATES

The companies that are required to be included in the consolidated financial statements of affiliates in accordance with the “Criteria Governing the Preparation of Affiliation Reports, Consolidated Business Reports and Consolidated Financial Statements of Affiliated Enterprises” for the year ended December 31, 2021 are all the same as those included in the consolidated financial statements of parent and subsidiary companies prepared in conformity with the International Financial Reporting Standards No. 10, “Consolidated Financial Statements”. In addition, relevant information that should be disclosed in the consolidated financial statements of affiliates has all been disclosed in the consolidated financial statements of parent and subsidiary companies. Consequently, Syncmold Enterprise Corporation and its subsidiaries did not prepare a separate set of consolidated financial statements of affiliates.

Very truly yours,

SYNCMOLD ENTERPRISE CORPORATION

March 15, 2022

INDEPENDENT AUDITORS’ REPORT

The Board of Directors and Shareholders Syncmold Enterprise Corporation

Opinion

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

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

Basis for Opinion

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

Key Audit Matters

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

Key audit matter of the Group’s consolidated financial statements for the year ended December 31, 2021 is stated as follows:

Occurrence of Sales Revenue

The sales revenue of the Group is mainly generated from the sales of monitor hinge products. Most of the sales were highly concentrated on major customers, which revenue accounted for 56.63% of total sales revenue in 2021. Due to the high frequency and significant amounts of transactions with major customers, the occurrence of sales revenue was deemed as a key audit matter for the year ended December 31, 2021. Refer to Note 4 to the consolidated financial statements for the related revenue recognition policies.

In response to this key audit matter, our main audit procedures performed in the assessment of the recognition of sales revenue of the Group were as follows:

We understood and assessed the operating effectiveness of design and implementation of the relevant internal controls.
We performed detailed verification tests on the selected samples of sales revenue, and checked transaction vouchers and sales returns and discounts of major customers to confirm the occurrence of sales revenue.

Other Matter

We did not audit the financial statements of certain subsidiaries of the Group as of and for the year ended December 31, 2020 which were included in the accompanying consolidated financial statements, but such financial statements were audited by other auditors whose reports have been furnished to us. Our opinion, insofar as it relates to the amounts included in the Group’s consolidated financial statements for such subsidiaries, is based solely on the reports of other auditors. The total assets of such subsidiaries amounted to NT$742,781 thousand, which represented 6.31% of the Group’s consolidated total assets. The operating revenue of such subsidiaries amounted to NT$51,837 thousand, which represented 0.54% of the Group’s consolidated total operating revenue. We did not audit the financial statements of associates accounted for using the equity method, these were instead audited by other auditors. Our opinion, insofar as it relates to the amounts included for associates accounted for using the equity method, is based solely on the report of other auditors. As of December 31, 2021 and 2020, the amounts of investments accounted for using the equity method were NT$172,058 thousand and NT$164,556 thousand, respectively, which accounted for 1.46% and 1.40% of the Group’s consolidated total assets, respectively. For the years ended December 31, 2021 and 2020, share of comprehensive income of associates accounted for using the equity method amounted to NT$16,496 thousand and NT$7,704 thousand, respectively, which accounted for 8.99% and 0.79% of the Group’s consolidated total comprehensive income, respectively.

We have also audited the parent company only financial statements of Syncmold Enterprise Corporation as of and for the years ended December 31, 2021 and 2020 on which we have issued an unmodified opinion with other matter paragraph.

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

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

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

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

Auditors’ Responsibilities for the Audit of the Consolidated Financial Statements

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

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

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

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

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

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

The engagement partners on the audit resulting in this independent auditors’ report are Chih-Yuan Chen and Yao-Lin Huang.

Deloitte & Touche Taipei, Taiwan Republic of China

March 15, 2022

Notice to Readers

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

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

SYNCMOLD ENTERPRISE CORPORATION AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS DECEMBER 31, 2021 AND 2020

(In Thousands of New Taiwan Dollars)

ASSETS CURRENT ASSETS Cash and cash equivalents (Notes 4 and 6) Financial assets at fair value through profit or loss - current (Notes 4 and 7) Financial assets at amortized cost - current (Notes 4, 8 and 30) Notes receivable Trade receivables, net (Notes 4 and 9) Inventories (Notes 4 and 10) Other current assets (Notes 4, 23 and 29) Total current assets NON-CURRENT ASSETS Financial assets at fair value through profit or loss - non-current (Notes 4, 7 and 18) Financial assets at amortized cost - non-current (Notes 4, 8 and 30) Investments accounted for using the equity method (Notes 4 and 12) Property, plant and equipment (Notes 4, 13, 29 and 30) Right-of-use assets (Notes 4, 14 and 29) Intangible assets (Notes 4, 16 and 29) Goodwill (Notes 4 and 15) Deferred tax assets (Notes 4 and 23) Prepayments for land, building and equipment Refundable deposits Net defined benefit assets (Notes 4 and 20) Other non-current assets Total non-current assets TOTAL LIABILITIES AND EQUITY CURRENT LIABILITIES Short-term borrowings (Notes 4, 17 and 30) Short-term bills payable (Notes 4 and 17) Financial liabilities at fair value through profit or loss - current (Notes 4 and 7) Notes payable and trade payables Other payables (Note 19) Current tax liabilities (Notes 4 and 23) Lease liabilities - current (Notes 4, 14 and 29) Current portion of long-term borrowing (Notes 4, 17 and 30) Other current liabilities Total current liabilities NON-CURRENT LIABILITIES Bonds payable (Note 18) Long-term borrowing (Notes 4, 17 and 30) Deferred tax liabilities (Notes 4 and 23) Lease liabilities - non-current (Notes 4, 14 and 29) Net defined benefit liabilities (Notes 4 and 20) Guarantee deposits received Other non-current liabilities (Note 20) Total non-current liabilities Total liabilities EQUITY ATTRIBUTABLE TO OWNERS OF THE CORPORATION Ordinary shares Capital surplus Retained earnings Legal reserve Special reserve Unappropriated earnings Total retained earnings Other equity Exchange differences on translating the financial statements of foreign operations Unrealized gain (loss) of financial assets at fair value through other comprehensive income Total other equity Total equity attributable to owners of the Corporation NON-CONTROLLING INTERESTS Total equity TOTAL		2021 Amount % $ 2,059,537 17 146,753 1 338,700 3 357,113 3 3,416,893 29 1,285,141 11 437,325 4 8,041,462 68 65,430 1 480 - 172,058 2 2,149,209 18 744,012 6 52,980 - 324,597 3 106,378 1 90,606 1 41,452 - 2,898 - 731 - 3,750,831 32 $ 11,792,293 100 $ 895,836 8 - - 41 - 2,210,109 19 405,745 3 161,944 1 182,430 2 16,545 - 6,284 - 3,878,934 33 1,166,288 10 194,185 2 179,383 1 368,731 3 11,676 - 1,443 - 14,381 - 1,936,087 16 5,815,021 49 1,237,242 11 2,769,331 23 1,001,175 9 635,615 5 700,911 6 2,337,701 20 (698,561) (6) 11,371 - (687,190) (6) 5,657,084 48 320,188 3 5,977,272 51 $ 11,792,293 100		2020
				Amount % $ 2,420,807 21 375,949 3 605,827 5 392,958 3 3,616,529 31 967,154 8 429,744 4 8,808,968 75 70,286 1 - - 164,556 1 1,686,017 14 495,502 4 34,250 - 324,597 3 79,720 1 66,967 1 37,202 - 2,567 - 279 - 2,961,943 25 $ 11,770,911 100 $ 1,867,695 16 29,981 - - - 2,183,688 19 498,717 4 181,357 2 133,785 1 16,909 - 17,314 - 4,929,446 42 - - 56,227 1 331,939 3 170,268 1 20,763 - 1,308 - 19,125 - 599,630 5 5,529,076 47 1,237,242 10 2,592,857 22 904,665 8 634,020 5 1,165,528 10 2,704,213 23 (639,134) (5) 3,519 - (635,615) (5) 5,898,697 50 343,138 3 6,241,835 53 $ 11,770,911 100

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

(With Deloitte & Touche auditors’ report dated March 15, 2022)

SYNCMOLD ENTERPRISE CORPORATION AND SUBSIDIARIES

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

OPERATING REVENUE (Note 4) OPERATING COSTS (Notes 4, 10 and 22) GROSS PROFIT OPERATING EXPENSES (Notes 22 and 29) Selling and marketing expenses General and administrative expenses Research and development expenses Expected credit gain Total operating expenses PROFIT FROM OPERATIONS NON-OPERATING INCOME AND EXPENSES Other income (Notes 4, 14 and 22) Other gains and losses (Notes 22 and 31) Interest income Gain from bargain purchase - acquisition of subsidiaries (Notes 4 and 25) Net foreign exchange loss (Note 32) Net gain on financial assets at fair value through profit (Notes 4 and 7) Share of profit of subsidiaries and associates (Notes 4 and 12) Interest expenses (Note 29) Impairment loss on investments accounted for using the equity method (Notes 4 and 12) Total non-operating income and expenses PROFIT BEFORE INCOME TAX INCOME TAX EXPENSE (Notes 4 and 23) NET PROFIT FOR THE YEAR		2021 Amount % $ 10,194,799 100 8,593,294 84 1,601,505 16 319,333 3 707,366 7 186,188 2 (5,568) - 1,207,319 12 394,186 4 55,661 1 (34,999) - 26,245 - - - (57,791) (1) 45,390 - 7,520 - (40,963) - (10,633) - (9,570) - 384,616 4 144,001 2 240,615 2		2020
				Amount % $ 9,663,341 100 7,122,648 74 2,540,693 26 254,095 2 584,491 6 175,753 2 (5,338) - 1,009,001 10 1,531,692 16 42,663 - (9,764) - 35,901 - 19,323 - (153,494) (2) 54,357 1 4,185 - (27,342) - - - (34,171) (1) 1,497,521 15 522,839 5 974,682 10 (Continued)

SYNCMOLD ENTERPRISE CORPORATION AND SUBSIDIARIES

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

OTHER COMPREHENSIVE INCOME (LOSS) Items that will not be reclassified subsequently to profit or loss: Remeasurement of defined benefit plans Share of other comprehensive income of subsidiaries accounted for using the equity method Income tax relating to items that will not be reclassified subsequently to profit or loss Items that may be reclassified subsequently to profit or loss: Exchange differences on translating the financial statements of foreign operations Other comprehensive income (loss) for the year TOTAL COMPREHENSIVE INCOME FOR THE YEAR NET PROFIT (LOSS) ATTRIBUTABLE TO: Owners of the Corporation Non-controlling interests TOTAL COMPREHENSIVE INCOME ATTRIBUTABLE TO: Owners of the Corporation Non-controlling interests EARNINGS PER SHARE (Note 24) Basic Diluted		2021 Amount % $ 376 - 8,976 - 2,180 - (68,618) - (57,086) - $ 183,529 2 $ 251,755 2 (11,140) - $ 240,615 2 $ 203,175 2 (19,646) - $ 183,529 2 $ 2.03 $ 2.02		2020
				Amount % $ (572) - 3,519 - (57) - (2,842) - 48 - $ 974,730 10 $ 965,738 10 8,944 - $ 974,682 10 $ 963,505 10 11,225 - $ 974,730 10 $ 7.81 $ 7.73

		$		$
		$		$
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		$		$
		$		$

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

(With Deloitte & Touche auditors’ report dated March 15, 2022)

(Concluded)

SYNCMOLD ENTERPRISE CORPORATION AND SUBSIDIARIES

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

	Equity Attributable to Owners of the Corporation(Notes 4, 21 and 26)	Equity Attributable to Owners of the Corporation(Notes 4, 21 and 26)	Equity Attributable to Owners of the Corporation(Notes 4, 21 and 26)
Ordinary Shares Capital Surplus $ 1,237,242 $ 2,591,280 - - - - - - - - - 56 - - - - - - - 1,521 1,237,242 2,592,857 - - - - - - - - - 175,396 - - - 22 - - - - - - - 1,056 - - $ 1,237,242 $ 2,769,331	Retained Earnings	Total $ 2,295,872 - - (556,759) (556,759) - 965,738 (638) 965,100 - 2,704,213 - - (618,621) (618,621) - (2,641) - 251,755 1,871 253,626 - 1,124 $ 2,337,701	Other Equity	Total Other Equity $ (634,020) - - - - - - (1,595) (1,595) - (635,615) - - - - - - - - (50,451) (50,451) - (1,124) $ (687,190 )
			Exchange Differences on Translating of the Financial Statements of Unrealized Gain (Loss) on Financial Assets at Fair Value Through Other Foreign Operations Comprehensive Income $ (633,784) $ (236) - - - - - - - - - - - - (5,350) 3,755 (5,350) 3,755 - - (639,134) 3,519 - - - - - - - - - - - - - - - - (59,427) 8,976 (59,427) 8,976 - - - (1,124) $ (698,561 ) $ 11,371
	Legal Reserve Special Reserve Unappropriated Earnings $ 810,515 $ 431,506 $ 1,053,851 94,150 - (94,150 ) - 202,514 (202,514 ) - - (556,759) 94,150 202,514 (853,423) - - - - - 965,738 - - (638) - - 965,100 - - - 904,665 634,020 1,165,528 96,510 - (96,510 ) - 1,595 (1,595 ) - - (618,621) 96,510 1,595 (716,726) - - - - - (2,641) - - - - - 251,755 - - 1,871 - - 253,626 - - - - - 1,124 $ 1,001,175 $ 635,615 $ 700,911

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

(With Deloitte & Touche auditors’ report dated March 15, 2022)

SYNCMOLD ENTERPRISE CORPORATION AND SUBSIDIARIES

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

CASH FLOWS FROM OPERATING ACTIVITIES Profit before income tax Adjustments for: Depreciation expenses Amortization expenses Expected credit gain Net gain on financial assets at fair value through profit or loss Interest expenses Interest income Dividend income Share of profit of associates Loss on disposal of property, plant and equipment Loss on disposal of intangible assets Write-downs (reversal) of inventories Impairment loss on property, plant and equipment Impairment loss on investments accounted for using the equity method Net (gain) loss on unrealized foreign currency exchange Gain from bargain purchase Gain on lease modification Changes in operating assets and liabilities Notes receivable Trade receivables Inventories Other current assets Other non-current assets Notes payable and trade payables Other payables Other current liabilities Net defined benefit assets and liabilities Other non-current liabilities Cash generated from operations Interest paid Income tax paid Net cash generated from operating activities CASH FLOWS FROM INVESTING ACTIVITIES Purchase of financial assets at amortized cost Purchase of financial assets at fair value through profit or loss Proceeds for sale of financial assets at amortized cost Proceeds from sale of financial assets at fair value through profit or loss Acquisition of associates Payment for property, plant and equipment	2021 $ 384,616 403,834 16,482 (5,568) (45,390) 40,963 (26,245) (23,299) (7,520) 2,086 1,143 15,185 570 10,633 (41,193) - (120) 33,751 229,276 (342,434) (19,721) (5,230) (57,212) 1,850 (10,932) (9,042) (3,925) 542,558 (40,754) (363,203) 138,601 - (947,066) 260,459 1,225,921 (15,680) (667,373)	2020 $ 1,497,521 301,651 14,034 (5,338) (54,357) 27,342 (35,901) (6,229) (4,185) 1,038 - (44,940) 2,528 - 19,139 (19,323) (1,476) (11,192) (478,209) (165,173) (177,692) 5,425 340,145 (60,884) 1,405 (2,086) - 1,143,243 (26,622) (472,288) 644,333 (431,933) (2,427,595) - 2,189,260 - (141,301) (Continued)

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SYNCMOLD ENTERPRISE CORPORATION AND SUBSIDIARIES

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

Proceeds from disposal of property, plant and equipment Increase in refundable deposits Payments for intangible assets Net cash outflow on business combinations Payments for right-of-use assets Increase in prepayments for land, property and equipment Interest received Dividends received Net cash used in investing activities CASH FLOWS FROM FINANCING ACTIVITIES Proceeds from short-term borrowings Payments of short-term borrowings (Repayments of) proceeds from short-term bills payable Proceeds from issuance of convertible bonds Repayments of bond payables Proceeds of long-term borrowings Repayments of long-term borrowings Refunds of guarantee deposits received Repayment of the principal portion of lease liabilities Cash dividends Actual acquisition of interest in subsidiaries Net cash 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 YEAR CASH AND CASH EQUIVALENTS AT THE END OF THE YEAR	2021 $ 29,048 (4,626) (36,471) - - (51,402) 26,245 34,699 (146,246) - (973,313) (29,981) 1,337,453 - 219,000 (81,406) 136 (202,184) (618,621) (2,248) (351,164) (2,461) (361,270) 2,420,807 $ 2,059,537	2020 $ 19,210 (7,493) (17,385) (107,113) (100,651) (81,567) 35,901 17,629 (1,053,038) 651,539 - 29,981 - (150,000) - (1,130) 1,093 (145,801) (556,759) (3,815) (174,892) 115,097 (468,500) 2,889,307 $ 2,420,807

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

(With Deloitte & Touche auditors’ report dated March 15, 2022)

(Concluded)

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SYNCMOLD ENTERPRISE CORPORATION AND SUBSIDIARIES

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

1. GENERAL INFORMATION

Syncmold Enterprise Corporation (the “Corporation”) was incorporated in the Republic of China (ROC) in July 1979 and is mainly engaged in the processing, manufacturing, trading, technology licensing and related import and export business of various metal molds, plastic molds and electronic parts.

The Corporation’s shares were approved for listing on the emerging stock board of the Taipei Exchange (TPEx) in December 2005, and after obtaining approval from the Financial Supervisory Commission, Executive Yuan in November 2006, the Corporation’s shares were listed on the over-the-counter (OTC) market on January 11, 2007. In November 2009, the Corporation obtained approval to transfer listing of its shares to the Taiwan Stock Exchange (TWSE) and were officially listed and started trading its shares on December 17, 2009.

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

2. APPROVAL OF CONSOLIDATED FINANCIAL STATEMENTS

The consolidated financial statements were approved by the Corporation’s board of directors on March 15, 2022.

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

a. Initial application of the amendments to the Regulations Governing the Preparation of Financial Reports by Securities Issuers and 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. The IFRSs endorsed by the FSC for application starting from 2021

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

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Note 1: The amendments to IFRS 9 will be applied prospectively to modifications and exchanges of financial liabilities that occur on or after the annual reporting periods beginning on or after January 1, 2022. The amendments to IAS 41 “Agriculture” will be applied prospectively to the fair value measurements on or after the annual reporting periods beginning on or after January 1, 2022. The amendments to IFRS 1 “First-time Adoptions of IFRSs” will be applied retrospectively for annual reporting periods beginning on or after January 1, 2022.
Note 2: The amendments are applicable to business combinations for which the acquisition date is on or after the beginning of the annual reporting period beginning on or after January 1, 2022.
Note 3: The amendments are applicable to property, plant and equipment that are brought to the location and condition necessary for them to be capable of operating in the manner intended by management on or after January 1, 2021.
Note 4: The amendments are applicable to contracts for which the entity has not yet fulfilled all its obligations on January 1, 2022.

As of the date the consolidated financial statements were authorized for issue, the Group continues assessing other possible impacts that the application of the aforementioned amendments and the related amendments to the Regulations Governing the Preparation of Financial Reports by Securities Issuers will have on the Group’s financial position and financial performance and will disclose these other impacts when the assessment is completed.

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

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

Note 1: Unless stated otherwise, the above New IFRSs are effective for annual reporting periods beginning on or after their respective effective dates.
Note 2: The amendments will be applied prospectively for annual reporting periods beginning on or after January 1, 2023.
Note 3: The amendments are applicable to changes in accounting estimates and changes in accounting policies that occur on or after the beginning of the annual reporting period beginning on or after January 1, 2023.
Note 4: Except for deferred taxes that will be recognized on January 1, 2022 for temporary differences associated with leases and decommissioning obligations, the amendments will be applied prospectively to transactions that occur on or after January 1, 2022.
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As of the date the consolidated financial statements were authorized for issue, the Group is continuously assessing the possible impact that the application of other standards and interpretations will have on the Group’s financial position and financial performance, and will disclose the relevant impact when the assessment is completed.

4. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

a. Statement of compliance

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

b. Basis of preparation

The consolidated financial statements have been prepared on the historical cost basis except for financial instruments 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.

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. Classification of current and non-current assets and liabilities

Current assets include:

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

Current liabilities include:

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

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

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d. Basis of consolidation

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

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

All intra-group transactions, balances, income and expenses are eliminated in full upon consolidation.

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

e. Business combinations

Acquisitions of businesses are accounted for using the acquisition method. Acquisition-related costs are generally recognized in profit or loss as they are incurred.

Goodwill is measured as the excess of the sum of the consideration transferred, the amount of any non-controlling interests in the acquiree, and the fair value of the acquirer’s previously held equity interests in the acquiree over the net of the acquisition-date amounts of the identifiable assets acquired and the liabilities assumed. If, after re-assessment, the net of the acquisition date amounts of the identifiable assets acquired and liabilities assumed exceeds the sum of the consideration transferred, the amount of any non-controlling interests in the acquiree, and the fair value of the acquirer’s previously held interests in the acquiree, the excess is recognized immediately in profit or loss as a bargain purchase gain.

Non-controlling interests that are present ownership interests and entitle their holders to a proportionate share of the entity’s net assets in the event of liquidation may be initially measured at fair value. Other types of non-controlling interests are measured at fair value.

Where the consideration the Group transfers in a business combination includes assets or liabilities resulting from a contingent consideration arrangement, the contingent consideration is measured at its acquisition-date fair value and considered as part of the consideration transferred in a business combination. Changes in the fair value of the contingent consideration that qualify as measurement period adjustments are adjusted retrospectively, with the corresponding adjustments being made against goodwill or gains on bargain purchases. Measurement period adjustments are adjustments that arise from additional information obtained during the measurement period about facts and circumstances that existed as of the acquisition date. The measurement period does not exceed 1 year from the acquisition date.

f. Foreign currencies

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

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

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

Non-monetary items that are measured at historical cost in a foreign currency are translated using the exchange rate at the date of the transaction.

For the purpose of presenting the consolidated financial statements, the functional currencies of the Group and the group entities in the Group (including subsidiaries in other countries that use currencies which are different from the currency of the Group) are translated into the presentation currency, the New Taiwan dollar, as follows: Assets and liabilities are translated at the exchange rates prevailing at the end of the reporting period; and income and expense items are translated at the average exchange rates for the period. The resulting currency translation differences are recognized in other comprehensive income.

g. Inventories

Inventories consist of raw materials, supplies, work in progress and finished goods and are stated at the lower of cost or net realizable value. Inventory write-downs are made by item, except where it may be appropriate to group similar or related items. The net realizable value is the estimated selling price of inventories less all estimated costs of completion and costs necessary to make the sale. Inventories are recorded at the weighted-average cost on the balance sheet date.

h. Investments in associates

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

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

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

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

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

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Profits and losses resulting from upstream transactions and downstream transactions are recognized only in the Group’s consolidated financial statements only to the extent of interests in the associates that are not related to the Group.

i. Property, plant and equipment

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

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

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

j. Goodwill

Goodwill arising from the acquisition of a business is measured at cost as established at the date of acquisition of the business less accumulated impairment loss.

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

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

If goodwill has been allocated to a cash-generating unit and the entity disposes of an operation within that unit, the goodwill associated with the operation which is disposed of is included in the carrying amount of the operation when determining the gain or loss on disposal and is measured on the basis of the relative values of the operation disposed of and the portion of the cash-generating unit retained.

k. Intangible assets

1) Intangible assets acquired separately

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

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2) Intangible assets acquired in a business combination

Intangible assets acquired in a business combination and recognized separately from goodwill are initially recognized at their fair value at the acquisition date. Subsequent to initial recognition, they are measured on the same basis as intangible assets that are acquired separately.

3) Derecognition of intangible assets

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

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

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

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

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

m. Financial instruments

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

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

1) Financial assets

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

a) Measurement categories

Financial assets are classified into the following categories: Financial assets at FVTPL and financial assets at amortized cost.

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i. Financial assets at FVTPL

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

Financial assets at FVTPL are subsequently measured at fair value, with any gains or losses arising on remeasurement recognized in profit or loss. The net gain or loss recognized in profit or loss incorporates any dividends or interest earned on such a financial asset. Fair value is determined in the manner described in Note 28.

ii. Financial assets at amortized cost

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

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

Financial assets at amortized cost (including cash, and cash equivalents notes receivable, trade receivables, other receivables, other receivables from related parties and refundable deposits) are measured at amortized cost, which equals the gross carrying amount determined using the effective interest method less any impairment loss. Exchange differences are recognized in profit or loss.

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

i) Purchased or originated credit-impaired financial assets, for which interest income is calculated by applying the credit-adjusted effective interest rate to the amortized cost of such financial assets; and
ii) Financial assets that are not credit-impaired on purchase or origination but have subsequently become credit-impaired, for which interest income is calculated by applying the effective interest rate to the amortized cost of such financial assets in subsequent reporting periods.

A financial asset is credit impaired when one or more of the following events have occurred:

i) Significant financial difficulty of the issuer or the borrower;
ii) Breach of contract, such as a default;
iii) It is becoming probable that the borrower will enter bankruptcy or undergo a financial reorganization; or
iv) The disappearance of an active market for that financial asset because of financial difficulties.
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Cash equivalents include time deposits with original maturities within 3 months from the date of acquisition, which are highly liquid, readily convertible to a known amount of cash and are subject to an insignificant risk of changes in value. These cash equivalents are held for the purpose of meeting short-term cash commitments.

b) Impairment of financial assets

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

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

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

The Group recognizes an impairment gain or loss in profit or loss for all financial instruments with a corresponding adjustment to their carrying amount through a loss allowance account.

c) Derecognition of financial assets

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

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

2) Equity instruments

Debt and equity instruments issued by the Group are classified as either financial liabilities or as equity in accordance with the substance of the contractual arrangements and the definitions of a financial liability and an equity instrument.

Equity instruments issued by the Group are recognized at the proceeds received, net of direct issue costs.

The repurchase of the Group’s own equity instruments is recognized in and deducted directly from equity. No gain or loss is recognized in profit or loss on the purchase, sale, issuance or cancellation of the Group’s own equity instruments.

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3) Financial liabilities

a) Subsequent measurement

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

b) Derecognition of financial liabilities

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

4) Convertible bonds

The component parts of compound instruments (i.e., convertible bonds) issued by the Corporation are classified separately as financial liabilities and equity in accordance with the substance of the contractual arrangements and the definitions of a financial liability and an equity instrument.

On initial recognition, the fair value of the liability component is estimated using the prevailing market interest rate for similar non-convertible instruments. This amount is recorded as a liability on an amortized cost basis using the effective interest method until extinguished upon conversion or upon the instrument’s maturity date. Any embedded derivative liability is measured at fair value.

The conversion option classified as equity is determined by deducting the amount of the liability component from the fair value of the compound instrument as a whole. This is recognized and included in equity, net of income tax effects, and is not subsequently remeasured. In addition, the conversion option classified as equity will remain in equity until the conversion option is exercised; in which case, the balance recognized in equity will be transferred to capital surplus - share premiums. When the conversion option remains unexercised at maturity, the balance recognized in equity will be transferred to capital surplus - share premiums.

Transaction costs that relate to the issuance of the convertible notes are allocated to the liability and equity components in proportion to the allocation of the gross proceeds. Transaction costs relating to the equity component are recognized directly in equity. Transaction costs relating to the liability component are included in the carrying amount of the liability component.

n. Revenue recognition

The Group identifies contracts with customers, allocates the transaction price to the performance obligations and recognizes revenue when performance obligations are satisfied.

1) Revenue from the sale of goods

Revenue from the sale of goods comes from sales of electronic components and molding products. Sales of electronic components and molding products are recognized as revenue when the goods are delivered via the modes of transportation as stated in the agreements with customers, e.g. FOB shipping or FOB destination modes because it is the time when the customer has full discretion over the manner of distribution and price to sell the goods, has the primary responsibility for sales to future customers and bears the risks of obsolescence. Trade receivables are recognized concurrently. Goods are sold at fixed prices as stated in the agreements with customers.

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

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2) Revenue from the rendering of services

Service income is recognized when services are provided.

3) Licensing revenue

Royalty revenue is recognized when the technique remains functional without updates and technical supports. When the customer uses the intellectual property for mass production, the price is decided based on production, sales or other methods, and revenue is recognized according to royalty arrangements.

o. Leasing

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

1) The Group as lessor

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

Lease payments from operating leases are recognized as income on a straight-line basis over the terms of the relevant leases.

2) The Group as lessee

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

Right-of-use assets are initially measured at cost, which comprises the initial measurement of lease liabilities adjusted for lease payments made at or before the commencement date, plus any initial direct costs incurred and an estimate of costs needed to restore the underlying assets, and less any lease incentives received. Right-of-use assets are subsequently measured at cost less accumulated depreciation and impairment losses and adjusted for any remeasurement of the lease liabilities. Right-of-use assets are presented on a separate line in the consolidated balance sheets.

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

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

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

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p. Borrowing costs

Borrowing costs directly attributable to an acquisition, construction or production of qualifying assets are added to the cost of those assets, until such time as the assets are substantially ready for their intended use or sale.

Investment income earned on the temporary investment of specific borrowings pending their expenditure on qualifying assets is deducted from the borrowing costs eligible for capitalization.

Other than that which is stated above, all other borrowing costs are recognized in profit or loss in the period in which they are incurred.

q. Government grants

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

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

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

r. Employee benefits

1) Short-term employee benefits

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

2) Retirement benefits

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

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

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

s. Taxation

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

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1) Current tax

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

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

2) Deferred tax

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

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

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

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

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

3) Current and deferred taxes for the year

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

Where current tax or deferred tax arises from the initial accounting for a business combination, the tax effect is included in the accounting for the business combination.

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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 Corporation considers the possible impact of the recent development of the COVID-19 in Taiwan and its economic environment implications when making its critical accounting estimates on cash flow projections, growth rate, discount rate, profitability, etc. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the period in which the estimates are revised if the revisions affect only that period or in the period of the revisions and future periods if the revisions affect both current and future periods.

6. CASH AND CASH EQUIVALENTS

Cash on hand Checking accounts and demand deposits Cash equivalents (with original maturities within 3 months) Time deposits		December 31	December 31
		2021 $ 2,067 1,944,790 112,680 $ 2,059,537	2020 $ 2,058 2,188,915 229,834 $ 2,420,807

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

Bank balance	December 31
	2021 2020 0.001%-0.42% 0.001%-0.38%

7. FINANCIAL INSTRUMENTS AT FAIR VALUE THROUGH PROFIT OR LOSS

Financial assets at fair value through profit or loss (FVTPL)-current Financial assets mandatorily classified as at FVTPL Derivative financial assets Foreign exchange forward contract (a) Non-derivative financial assets Domestic listed shares Hybrid financial assets Structured deposits(b)		December 31	December 31
		2021 $ 4 81,379 65,370 $ 146,753	2020 $ 22,322 200,701 152,926 $ 375,949 (Continued)

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Financial assets at FVTPL-non-current Financial assets mandatorily classified as at FVTPL Derivative financial assets (not under hedge accounting) Domestic third convertible bonds (Note 18) Non-derivative financial assets Domestic emerging market shares Overseas unlisted shares Private funds Financial liabilities at fair value through profit or loss (FVTPL)-current Financial assets mandatorily classified as at FVTPL Derivative financial assets (not under hedge accounting) Foreign exchange forward contracts (a)		December 31	December 31
		2021 $ 360 17,528 38,508 9,034 $ 65,430 $ 41	2020 $ - 15,619 51,579 3,088 $ 70,286 $ - (Concluded)

a. At the end of the reporting period, outstanding foreign exchange forward contracts not under hedge accounting were as follows:

December 31, 2021

					Notional Amount
			Currency	Maturity Date	(In Thousands)
Sell			US$/RMB	2022.07	US$1,000/RMB6,460
Sell			US$/RMB	2022.07	US$1,000/RMB6,470
December	31,	2020
					Notional Amount
			Currency	Maturity Date	(In Thousands)
Sell			US$/RMB	2021.01	US$1,000/RMB6,528
Sell			US$/RMB	2021.02	US$1,000/RMB6,973
Sell			US$/RMB	2021.02	US$1,000/RMB6,854
Sell			US$/RMB	2021.02	US$1,000/RMB6,890
Sell			US$/RMB	2021.02	US$1,000/RMB6,891
Sell			US$/RMB	2021.03	US$1,000/RMB6,987
Sell			US$/RMB	2021.03	US$2,000/RMB13,882
Sell			US$/RMB	2021.03	US$2,000/RMB13,842
Sell			US$/RMB	2021.03	US$2,000/RMB13,682
Sell			US$/RMB	2021.04	US$1,000/RMB6,760
Sell			US$/RMB	2021.05	US$1,000/RMB6,832
Sell			US$/RMB	2021.06	US$1,000/RMB6,670
Sell			US$/RMB	2021.06	US$1,000/RMB6,612
Sell			US$/RMB	2021.06	US$1,000/RMB6,597

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The Group entered into foreign exchange forward contracts to manage exposures due to exchange rate fluctuations of foreign currency denominated assets and liabilities.

b. The Group successively entered into a one to 1-6 months structured time deposit contracts with bank in 2021 and 2020. The structured time deposit contract includes an embedded derivative instrument which is not closely related to the host contract. The entire contract is assessed and mandatorily classified as at FVTPL since it contained a host that is an asset within the scope of IFRS 9.

8. FINANCIAL ASSETS AT AMORTIZED COST

Current Time deposits with original maturities of more than 3 months Time deposits pledged as collateral with original maturities of more than 3 months Restricted deposit Non-current Time deposits with original maturities of more than 1 year		December 31	December 31
		2021 $ 336,972 1,728 - $ 338,700 $ 480	2020 $ 601,313 3,964 550 $ 605,827 $ -

The interest rates for time deposits with original maturities of more than 3 months were 2.45%-3.7% and 2.015%-3.8% per annum as of December 31, 2021 and 2020, respectively.

The interest rate for time deposits pledged as collateral with original maturities of more than 3 months were 0.375% and 0.35%-0.75% per annum as of December 31, 2021 and 2020, respectively.

See Note 30 for detailed information on financial assets at amortized cost pledged as collateral.

9. TRADE RECEIVABLES, NET

At amortized cost Gross carrying amount Less: Allowance for impairment loss		December 31	December 31
		2021 $ 3,421,964 (5,071) $ 3,416,893	2020 $ 3,627,405 (10,876) $ 3,616,529

The average credit period of sales of goods was 130-160 days. No interest was charged on trade receivables.

The Group uses other publicly available financial information or its own trading records to rate its major customers. The Group’s exposure and the credit ratings of its counterparties are continuously monitored and the aggregate value of transactions concluded is spread amongst approved counterparties. Credit exposure is controlled by counterparty limits that are reviewed and approved by the management annually.

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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 by reference to past default experience of the debtor and an analysis of the debtor’s current financial position, adjusted for general economic conditions of the industry in which the debtors operate and an assessment of both the current as well as 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. For trade receivables that have been written off, the Group continues to engage in enforcement activity to attempt to recover the receivables due. Where recoveries are made, these are recognized in profit or loss.

The following table details the loss allowance of trade receivables based on the Group’s provision matrix.

December 31, 2021

Not Past Due Expected credit loss rate - Gross carrying amount $ 3,376,504 Loss allowance (Lifetime ECLs) - Amortized cost $ 3,376,504 December 31, 2020	Less than 30 Days 31 to 90 Days 2.86% 3.74% $ 30,590 $ 9,039 (876) (338) $ 29,714 $ 8,701	91 to 180 Days 46.27% $ 3,674 (1,700) $ 1,974	Over 180 Days 100% $ 2,157 (2,157) $ -	Total $ 3,421,964 (5,071) $ 3,416,893

Not Past Due Expected credit loss rate - Gross carrying amount $ 3,542,654 Loss allowance (Lifetime ECLs) - Amortized cost $ 3,542,654	Less than 30 Days 31 to 90 Days 5.51% 14.83% $ 41,942 $ 38,235 (2,313) (5,669) $ 39,629 $ 32,566	91 to 180 Days 42.93% $ 2,944 (1,264) $ 1,680	Over 180 Days 100% $ 1,630 (1,630) $ -	Total $ 3,627,405 (10,876) $ 3,616,529

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

Balance at January 1 Add: Acquisitions through business combinations Less: Net remeasurement of loss allowance Foreign exchange gains and losses Balance at December 31	For the Year Ended December 31	For the Year Ended December 31	For the Year Ended December 31
		2021 $ 10,876 - (5,568) (237) $ 5,071	2020 $ 14,444 1,466 (5,338) 304 $ 10,876

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10. INVENTORIES

Finished goods Work in process Raw materials		December 31	December 31
		2021 $ 476,793 309,137 499,211 $ 1,285,141	2020 $ 327,374 234,759 405,021 $ 967,154

The cost of inventories recognized as cost of goods sold for the years ended December 31, 2021 and 2020 was $8,592,872 thousand and $7,122,599 thousand, respectively. The cost of goods sold included inventory write-downs (reversed) of $15,185 thousand and $(44,940) thousand. The reversals of previous write-downs resulted from selling of slow moving inventories.

11. SUBSIDIARIES

Subsidiaries Included in the Consolidated Financial Statements

Investor Investee Nature of Activities Syncmold Enterprise Corp. Syncmold Enterprise (Samoa) Corp. The trading and commercial related practices of all metal molds and plastic molds as well as the reinvestment of subsidiaries in mainland China. Grand Advance Inc. The trading, imports, exports and investments of electronic parts. Syncmold Enterprise (USA) Corp. The trading, imports and exports of electronic parts. Gatetech Technology Inc. Precision molding and magnesium alloy die caster manufacturing and transaction business Syncmold Enterprise Vietnam Co., Ltd. Electronic parts processing manufacturing, trading and related import and export business. Syncmold Enterprise (Malaysia) Sdn., Bhd. The trading, imports and exports of electronic parts. Syncmold Enterprise (Singapore) Pte., Ltd. The trading, imports and exports of electronic parts. Syncmold Enterprise (Thailand) Co., Ltd. Electronic parts processing manufacturing, trading and related import and export business. Leohab Enterprise Co., Ltd. Precision hardware components manufacturing Grand Advance Inc. Canford International Limited Import and export trade and investment. Fullking Development Limited Import and export trade and investment. Full Glary Holding Limited Import and export trade and investment.	Proportion of Ownership (%)
	December 31
	2021 2020 100.00 100.00 100.00 100.00 100.00 100.00 73.82 (Note 2) 73.43 (Note 2) 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 70.00 70.00 (Note 1) 100.00 100.00 100.00 100.00 100.00 100.00

Investor
Investee
Nature of Activities
Syncmold Enterprise
Corp.
Syncmold Enterprise (Samoa)
Corp.
The trading and commercial related
practices of all metal molds and
plastic molds as well as the
reinvestment of subsidiaries in
mainland China.
Grand Advance Inc.
The trading, imports, exports and
investments of electronic parts.
Syncmold Enterprise (USA) Corp.
The trading, imports and exports of
electronic parts.
Gatetech Technology Inc.
Precision molding and magnesium
alloy die caster manufacturing and
transaction business
Syncmold Enterprise Vietnam
Co., Ltd.
Electronic parts processing
manufacturing, trading and related
import and export business.
Syncmold Enterprise (Malaysia)
Sdn., Bhd.
The trading, imports and exports of
electronic parts.
Syncmold Enterprise (Singapore)
Pte., Ltd.
The trading, imports and exports of
electronic parts.
Syncmold Enterprise (Thailand)
Co., Ltd.
Electronic parts processing
manufacturing, trading and related
import and export business.
Leohab Enterprise Co., Ltd.
Precision hardware components
manufacturing
Grand Advance Inc.
Canford International Limited
Import and export trade and
investment.
Fullking Development Limited
Import and export trade and
investment.
Full Glary Holding Limited
Import and export trade and
investment.

Proportion of Ownership
(%)

December 31

2021
2020
100.00
100.00
100.00
100.00
100.00
100.00
73.82
(Note 2)
73.43
(Note 2)
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
70.00
70.00
(Note 1)
100.00
100.00
100.00
100.00
100.00
100.00

(Continued)

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Investor Investee Nature of Activities Syncmold Enterprise (Samoa) Corp. Full Big Limited Reinvesting subsidiaries of mainland China and international business. Forever Business Development Limited Reinvesting subsidiaries of mainland China and international business. Full Celebration Limited Reinvesting subsidiaries of mainland China and international business. Fuzhou Fulfil Tech Co., Ltd. Electronic parts processing manufacturing, trading and related import and export business. Fujian Khuan Hua Precise Mold Co., Ltd. Processing, manufacturing, trading and related import and export business of various metal molds, plastic molds and plastic injection molds. Fuqing Fuqun Electronic Hardware Tech Co., Ltd. Electronic parts processing manufacturing, trading and related import and export business. Gatetech Technology Inc. Gatech Holding Ltd. General investment business Leohab Enterprise Co., Ltd. Sweet International Group Ltd. General investment business Forever Business Development Limited Dongguan Khuan Huang Precise Mold Plastic Co., Ltd. Processing, manufacturing, trading and related import and export business of various metal molds, plastic molds and plastic injection molds. Canford International Limited Suzhou Fulfil Electronics Co., Ltd. Electronic parts processing manufacturing, trading and related import and export business. Fullking Development Limited Zhongshan Fulfil Tech. Co., Ltd. Electronic parts processing manufacturing, trading and related import and export business. Full Glary Holding Limited Kunshan Fulfil Tech Co., Ltd. Manufacturing and assembling of laptop components such as precision bearing, hardware and related accessories. Full Celebration Limited Chongqing Fulfil Tech Co., Ltd. The processing, manufacturing, related imports and exports of all electronic, plastic and electronic parts. Gatech Holding Ltd. Gatech International Ltd. General investment business Gatech International Ltd. Gatetech (Suzhou) Technology Co., Ltd. Aluminum and magnesium alloy manufacturing and trading Sweet International Group Ltd. Lucky King Holdings Ltd. General investment business Lucky King Holdings Ltd. Suzhou Leoho Electronics Co., Ltd. Precision hardware components manufacturing Commuwell Enterprise (Thailand) Co., Ltd. Plastic shot and hardware components manufacturing	Proportion of Ownership (%)
	December 31
	2021 2020 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 (Note 1) 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 (Note 1) 100.00 100.00 (Note 1) 100.00 100.00 (Note 1) (Concluded)

Investor
Investee
Nature of Activities
Syncmold Enterprise
(Samoa) Corp.
Full Big Limited
Reinvesting subsidiaries of mainland
China and international business.
Forever Business Development
Limited
Reinvesting subsidiaries of mainland
China and international business.
Full Celebration Limited
Reinvesting subsidiaries of mainland
China and international business.
Fuzhou Fulfil Tech Co., Ltd.
Electronic parts processing
manufacturing, trading and related
import and export business.
Fujian Khuan Hua Precise Mold
Co., Ltd.
Processing, manufacturing, trading
and related import and export
business of various metal molds,
plastic molds and plastic injection
molds.
Fuqing Fuqun Electronic
Hardware Tech Co., Ltd.
Electronic parts processing
manufacturing, trading and related
import and export business.
Gatetech Technology
Inc.
Gatech Holding Ltd.
General investment business
Leohab Enterprise Co.,
Ltd.
Sweet International Group Ltd.
General investment business
Forever Business
Development
Limited
Dongguan Khuan Huang Precise
Mold Plastic Co., Ltd.
Processing, manufacturing, trading
and related import and export
business of various metal molds,
plastic molds and plastic injection
molds.
Canford International
Limited
Suzhou Fulfil Electronics Co.,
Ltd.
Electronic parts processing
manufacturing, trading and related
import and export business.
Fullking Development
Limited
Zhongshan Fulfil Tech. Co., Ltd.
Electronic parts processing
manufacturing, trading and related
import and export business.
Full Glary Holding
Limited
Kunshan Fulfil Tech Co., Ltd.
Manufacturing and assembling of
laptop components such as
precision bearing, hardware and
related accessories.
Full Celebration
Limited
Chongqing Fulfil Tech Co., Ltd.
The processing, manufacturing,
related imports and exports of all
electronic, plastic and electronic
parts.
Gatech Holding Ltd.
Gatech International Ltd.
General investment business
Gatech International
Ltd.
Gatetech (Suzhou) Technology
Co., Ltd.
Aluminum and magnesium alloy
manufacturing and trading
Sweet International
Group Ltd.
Lucky King Holdings Ltd.
General investment business
Lucky King Holdings
Ltd.
Suzhou Leoho Electronics Co.,
Ltd.
Precision hardware components
manufacturing
Commuwell Enterprise (Thailand)
Co., Ltd.
Plastic shot and hardware components
manufacturing

Proportion of Ownership
(%)

December 31

2021
2020
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
(Note 1)
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
(Note 1)
100.00
100.00
(Note 1)
100.00
100.00
(Note 1)
(Concluded)

Note 1: On November 30, 2020, the Corporation completed the acquisition of Leohab Enterprise Co., Ltd. for a cash consideration of $232,677 thousand after the acquisition, the Corporations percentage of ownership in Leohab Enterprise Co., Ltd. was 70% See Note 25 for detailed information on the acquisition of Leohab Enterprise Co., Ltd.
Note 2: On December 15, 2021, the Corporation acquired additional 0.39% ownerships in Gatetech Technology Inc. for a cash consideration of $2,248 thousand, which increased the Corporation’s percentage of ownership to 73.82%. Refer to Note 26 for detailed information on the acquisition of non-controlling interests.
30 -

Information on the subsidiaries included in the consolidated financial statements for the years ended December 31, 2021 and 2020 in the table above was based on the financial statements of the subsidiaries audited by the auditors for the same periods.

12. INVESTMENTS ACCOUNTED FOR USING THE EQUITY METHOD

Associates that are not individually material Unlisted companies High Grade Tech Co., Ltd. (Note 1) Corebio technologies Co., Ltd. (Note 2) Smart Automation Technology Inc. (Note 3)		December 31	December 31
		2021 $ 136,170 20,730 15,158 $ 172,058	2020 $ 128,639 35,917 - $ 164,556

Aggregate information of associates that are not individually material

The Group’s share of: Net profit of the year Other comprehensive income	For the Year Ended December 31	For the Year Ended December 31	For the Year Ended December 31
		2021 $ 7,520 $ 8,976	2020 $ 4,185 $ 3,519

Note 1: The Corporation’s percentage of ownership in High Grade Tech Co., Ltd. was 38% originally. After High Grade Tech Co., Ltd. handled employee stock option for new shares in September 2020, the Corporation’s percentage of ownership in High Grade Tech Co., Ltd. decrease to 35.63%. The effect of the change in ownership of investment accounted for using the equity method of $2,641 thousand was recognized in retained earnings.
Note 2: Considering that the Group’s interest in Corebio Technologies Co., Ltd. on December 31, 2021 was lower than the market value, the management of the Corporation conducted an impairment test on the investment on December 31, 2021, and evaluated whether the carrying amount is less than the recoverable amount. After evaluation, the book value of the investment in Corebio Technologies Co., Ltd. was higher than the recoverable amount, and an impairment loss of $10,633 thousand was recognized in 2021.
Note 3: On July 5, 2021, the Corporation completed the acquisition of Smart Automation Technology Inc. for a cash consideration of $15,680 thousand; after the acquisition, the Corporation’s percentage of ownership in Smart Automation Technology Inc. was 49%.
31 -

13. PROPERTY, PLANT AND EQUIPMENT

Cost Balance at January 1, 2021 Additions Disposals Transfer from prepayments for equipments Reclassifications Effect of foreign currency exchange differences Balance at December 31, 2021 Accumulated depreciation and impairment Balance at January 1, 2021 Depreciation expenses Disposals Impairment losses recognized Reclassified as held for sale Effect of foreign currency exchange differences Balance at December 31, 2021 Carrying amounts at December 31, 2021 Cost Balance at January 1, 2020 Additions Disposals Acquisitions through business combinations Transfer from prepayments for equipments Reclassifications Effect of foreign currency exchange differences Balance at December 31, 2020 Accumulated depreciation and impairment Balance at January 1, 2020 Depreciation expenses Disposals Impairment losses recognized Acquisitions through business combinations Reclassified as held for sale Effect of foreign currency exchange differences Balance at December 31, 2020 Carrying amounts at December 31, 2020	Freehold Land $ 714,292 46,172 - 10,673 - (599) $ 770,538 $ - - - - - - $ - $ 770,538 $ 495,581 - - 218,709 - - 2 $ 714,292 $ - - - - - - - $ - $ 714,292	Buildings $ 883,285 72,823 (17,383 ) 3,927 824 (19,035) $ 924,441 $ 444,043 68,534 (17,383 ) - 712 (12,526) $ 483,380 $ 441,061 $ 641,034 29,310 (36,684 ) 237,954 - 2,141 9,530 $ 883,285 $ 320,970 45,002 (36,409 ) - 111,373 1,494 1,613 $ 444,043 $ 439,242	Equipment Transportation Equipment $ 1,497,074 $ 41,069 212,345 3,093 (98,396 ) (1,311 ) 9,353 - 2,832 93 (42,112) (1,395) $ 1,581,096 $ 41,549 $ 1,056,696 $ 24,956 87,089 4,182 (69,644 ) (1,180 ) 340 - (932 ) 274 (28,354) 230 $ 1,045,195 $ 28,462 $ 535,901 $ 13,087 $ 1,119,133 $ 32,396 86,126 3,681 (65,199 ) (1,212 ) 301,736 4,832 35,998 - 1,984 - 17,296 1,372 $ 1,497,074 $ 41,069 $ 747,814 $ 19,070 80,623 3,097 (45,966 ) (1,090 ) 2,528 - 261,440 3,599 2,425 - 7,832 280 $ 1,056,696 $ 24,956 $ 440,378 $ 16,113	Office Equipment $ 50,318 15,595 (5,205 ) 2,560 216 (482) $ 63,002 $ 32,117 8,224 (4,809 ) - 323 605 $ 36,460 $ 26,542 $ 41,780 8,522 (6,201 ) 6,769 - (2,113 ) 1,561 $ 50,318 $ 29,435 4,480 (5,771 ) - 5,015 (1,469 ) 427 $ 32,117 $ 18,201	Other Equipment Property Under Construction $ 250,313 $ - 58,027 259,318 (77,343 ) - - - (4,682 ) - (13,617) 8,942 $ 212,698 $ 268,260 $ 192,522 $ - 28,676 - (75,488 ) - 230 - (5,872 ) - (21,190) - $ 118,878 $ - $ 93,820 $ 268,260 $ 84,415 $ - 13,662 - (2,205 ) - 162,098 - 1,592 - 148 - (9,397) - $ 250,313 $ - $ 60,339 $ - 7,481 - (2,017 ) - - - 126,209 - - - 510 - $ 192,522 $ - $ 57,791 $ -	Total $ 3,436,351 667,373 (199,638 ) 26,513 (717 ) (68,298) $ 3,861,584 $ 1,750,334 196,705 (168,504 ) 570 (5,495 ) (61,235) $ 1,712,375 $ 2,149,209 $ 2,414,339 141,301 (111,501 ) 932,098 37,590 2,160 20,364 $ 3,436,351 $ 1,177,628 140,683 (91,253 ) 2,528 507,636 2,450 10,662 $ 1,750,334 $ 1,686,017

The Group expects that future cash inflows of some machinery and equipment will decrease, resulting in recoverable amount lower than the carrying amount and, therefore, recognized an impairment loss of $570 thousand and $2,528 thousand in 2021 and 2020. The impairment loss was recorded under other gains and losses in the consolidated statements of comprehensive income.

32 -

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

Buildings
Main buildings	5-60 years
Electromechanical power equipment	4-5 years
Equipment	1-23 years
Transportation equipment	5-10 years
Office equipment	3-10 years
Other equipment	1-20 years

See Note 30 for detailed information on property, plant and equipment pledged as collateral.

14. LEASE ARRANGEMENTS

a. Right-of-use assets

Carrying amounts Lands Buildings Transportation equipment Additions to right-of-use assets Acquisition through business combinations Depreciation charge for right-of-use assets Lands Buildings Transportation equipment Income from the subleasing of right-of-use assets (presented in other income)		December 31	December 31
	2021 $ 178,078 564,917 1,017 $ 744,012 For the Year Ended		2020 $ 174,905 318,942 1,655 $ 495,502 December 31
		2021 $ 465,252 $ - $ 4,414 201,575 1,140 $ 207,129 $ (16)	2020 $ 238,238 $ 27,123 $ 3,025 157,493 450 $ 160,968 $ (9,806)

Except for the additions, recognized depreciation and subleasing, the Group did not have any significant impairment of right-of-use assets for the years ended December 31, 2021 and 2020.

33 -

b. Lease liabilities

Carrying amounts Current Non-current		December 31	December 31
		2021 $ 182,430 $ 368,731	2020 $ 133,785 $ 170,268

Range of discount rate for lease liabilities was as follows:

Buildings Transportation equipment	December 31
	2021 2020 0.94%-4.90% 0.94%-4.90% 0.94%-4.55% 0.94%-1.69%

c. Subleases

Sublease of right-of-use assets

The Group subleases its right-of-use assets for buildings under operating leases with lease terms of 1 year and with the priority to extend the lease. The lease contracts contain market review clauses in the event that the lessees exercise their options to extend.

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

Year 1 d. Other lease information Expenses relating to short-term leases Total cash outflow for leases		December	31
	2021 $ 357 For the Year Ended		2020 $ - December 31
		2021 $ 34,472 $ (258,208)	2020 $ 22,469 $ (282,344)

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

15. GOODWILL

Balance at January 1 Balance at December 31	For the Year Ended	For the Year Ended	December 31
		2021 $ 366,777 $ 366,777	2020 $ 366,777 $ 366,777

(Continued)

34 -

Accumulated impairment losses Balance at January 1 Balance at December 31 Carrying amounts atDecember 31	For the Year Ended	For the Year Ended	December 31
		2021 $ 42,180 $ 42,180 $ 324,597	2020 $ 42,180 $ 42,180 $ 324,597 (Concluded)

The Group acquired FulFil Tech Co., Ltd. on June 27, 2007 and recognized goodwill of $366,777 thousand relating to molding department and electronic components department. The goodwill is mainly arising from the expected benefit from sales growth of electronic components and molding products, and the potential of developing new electronic models.

The recoverable amount of plastic molding department was determined based on a value in use calculation that used the cash flow projections in the financial budgets approved by management covering a 5-year period; the discount rate was 14.11% and 13.20% in 2021 and 2020, respectively. Other key assumptions included budgeted revenue and budgeted gross margin. Such assumptions were based on the past performance of the cash-generating unit and management’s expectations of future market development.

16. INTANGIBLE ASSETS

Trademarks Computer Software Cost Balance at January 1, 2021 $ 181 $ 72,346 Additions - 36,471 Disposals - - Written off (26) (23,191) Reclassifications - 505 Effect of foreign currency exchange differences - (921) Balance at December 31, 2021 $ 155 $ 85,210 Accumulated amortization and impairment Balance at January 1, 2021 $ 115 $ 40,801 Amortization expenses 17 16,195 Disposals - - Written off (26) (23,191) Reclassifications - 106 Effect of foreign currency exchange differences - (805) Balance at December 31, 2021 $ 106 $ 33,106 Carrying amount at December 31, 2021 $ 49 $ 52,104	Patents $ 6,392 - (3,906) - (505) - $ 1,981 $ 3,753 270 (2,763) - (106) - $ 1,154 $ 827	Total $ 78,919 36,471 (3,906) (23,217) - (921) $ 87,346 $ 44,669 16,482 (2,763) (23,217) - (805) $ 34,366 $ 52,980

(Continued)

35 -

Trademarks Computer Software Cost Balance at January 1, 2020 $ - $ 48,046 Additions - 17,385 Acquisitions through business combinations 181 16,822 Written off - (9,446) Reclassifications - (505) Effect of foreign currency exchange differences - 44 Balance at December 31, 2020 $ 181 $ 72,346 Accumulated amortization and impairment Balance at January 1, 2020 $ - $ 21,409 Acquisitions through business combinations 113 14,655 Amortization expenses 2 13,991 Disposals - (9,446) Effect of foreign currency exchange differences - 192 Balance at December 31, 2020 $ 115 $ 40,801 Carrying amount at December 31, 2020 $ 66 $ 31,545	Patents $ - - 5,887 - 505 - $ 6,392 $ - 3,606 41 - 106 $ 3,753 $ 2,639	Total $ 48,046 17,385 22,890 (9,446) - 44 $ 78,919 $ 21,409 18,374 14,034 (9,446) 298 $ 44,669 $ 34,250 (Concluded)

Except for the recognized amortization, the Group did not have any significant additions, disposals or impairment of intangible assets for the years ended December 31, 2021 and 2020.

The above items of intangible assets are amortized on a straight-line basis their estimated useful lives as follows:

Trademarks	7-10 years
Computer software	1-5 years
Patents	1-19 years

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17. BORROWINGS

a. Short-term borrowings

Secured borrowings (Note 30) Mortgage loans Bank loans Unsecured borrowings Line of credit borrowings		December 31	December 31
		2021 $ 400,836 - 495,000 $ 895,836	2020 $ 484,000 8,895 1,374,800 $ 1,867,695

The weighted average effective interest rates on bank loans were ranging from 0.61%-3.75% and 0.67%-3.75% per annum as of December 31, 2021 and 2020, respectively.

b. Short-term bills payable

Commercial paper Less: Unamortized discounts on bills payable Outstanding short-term bills payable were as follows:		December	31
		2021 $ - - $ -	2020 $ 30,000 (19) $ 29,981

December 31, 2020

							Carrying	Carrying
	Nominal	Discount		Carrying	Interest		Amount	of
Issuer	Amount	Amount		Amount	Rate	Collateral	Collateral
Commercial papers
Mega Bills Finance	$ 30,000	$	19	$ 29,981	1.05%	None	$	-
Co., Ltd.

37 -

c. Long-term borrowings

Secured borrowings (Note 30) Mortgage loans Unsecured borrowings Line of credit borrowings Less: Current portions		December 31	December 31
		2021 $ 210,730 - 210,730 (16,545) $ 194,185	2020 $ 59,500 13,636 73,136 (16,909) $ 56,227

The effective interest rate on long-term borrowings were 0.9%-1% and 1.70%-1.995% on December 31, 2021 and 2020, respectively.

18. BONDS PAYABLE

Domestic third unsecured convertible bonds		December 31	December 31
		2021 $ 1,166,288	2020 $ -

On September 9, 2021, the Company issued 12,000 units NTD denominated unsecured convertible corporate bonds with 0% coupon rate, 3 years issue period and total principal amount of NT$1,200,000 thousand.

The bonds are exchangeable into ordinary shares of the Company at any time on or after December 10, 2021 and prior to September 9, 2024 except during closed period or suspension period.

The conversion price of bonds is set based on the arithmetic mean of the business day’s closing share price multiplied by 102% premium rate before the effective date on August 20, 2021. In accordance with above method, the conversion price at the time of issuance of the convertible corporate bond is NT$66.8 per share on December 31, 2021.

If the bonds are not converted between December 10, 2021 and July 31, 2024, and the closing price of ordinary shares has exceeded 30% of the current conversion price for 30 consecutive business days, the Company may send a copy of “Bond Redemption Notice” with expiration of one month by registered mail, and the expiration date of the period is determined as the base date for recovery of bonds. The Company will redeem the bonds at their par value within 5 business days following the base date.

If the bonds are not converted between December 10, 2021 and July 31, 2024, and the closing price of ordinary shares is lower than 10% of original total issue amount, the Company will therefore be entitled to send out a 30-day-expiration “Bond Redemption Notice” based on names recorded on bondholder’s name list 5 business days prior to the mailing day. The Company will redeem the bonds at their par value within 5 business days following the base date.

38 -

The convertible bonds contain both liability and equity components: The equity component was presented in equity under the heading of capital surplus-options. The liability components are recognized as liabilities of embedded derivative financial instruments and non-derivative products. Such embedded derivative financial instrument have been assessed at fair value of NT$360 thousand (included in financial assets - non-current which are measured through profit/loss based on fair value); non-derivative product liabilities have been measured on December 31, 2021 at NT$1,166,288 thousand (included in bonds payable) respectively based on amortized cost and its effective interest rate originally recognized is 1.0663%.

Proceeds from insurance (less transaction cost of NT$4,998 thousand) Equity component Liability component at the date of issue (including NT$1,162,417 thousand of bonds payable and NT$360 thousand of financial asset at fair value - non-current) Interest charged at an effective interest rate of 1.0663% Liability component on December 31, 2021	$ 1,337,453 (175,396) 1,162,057 3,871 $ 1,165,928

As of December 31, 2021, the third unsecured convertible bonds have no conversion.

19. OTHER PAYABLES

Payables for salaries or bonuses Others		December 31	December 31
		2021 $ 201,376 204,369 $ 405,745	2020 $ 280,535 218,182 $ 498,717

20. RETIREMENT BENEFIT PLANS

a. Defined contribution plans

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

The subsidiaries operate a defined contribution retirement benefit plan for all qualifying employees of its subsidiaries in China. The subsidiary is required to contribute a specified percentage of payroll costs to the retirement benefit scheme to fund the benefits. Where employees leave the plan prior to full vesting of the contributions, the contributions payable by the Group are reduced by the amount of forfeited contributions.

b. Defined benefit plans

The defined benefit plans adopted by the Group of the Group in accordance with the Labor Standards Law is operated by the government of the ROC. Pension benefits are calculated on the basis of the length of service and average monthly salaries of the 6 months before retirement. The Group contributes amounts equal to 2% of total monthly salaries and wages to a pension fund administered by the pension fund monitoring committee. Pension contributions are deposited in the Bank of Taiwan in the committee’s name. Before the end of each year, the Group assesses the balance in the pension fund. If the amount of the balance in the pension fund is inadequate to pay retirement benefits for employees who conform to retirement requirements in the next year, the Group is required to fund the difference in one appropriation that should be made before the end of March of the next year. The pension fund is

39 -

managed by the Bureau of Labor Funds, Ministry of Labor (“the Bureau”); the Group has no right to influence the investment policy and strategy.

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

Present value of defined benefit obligation Fair value of plan assets Net defined benefit liabilities		December	31
		2021 $ 47,787 (39,009) $ 8,778	2020 $ 60,291 (42,095) $ 18,196

The net defined benefit liabilities (assets) were $11,676 thousand and $(2,898) thousand recognized in the consolidated balance sheets for the year ended December 31, 2021.

The net defined benefit liabilities (assets) were $20,763 thousand and $(2,567) thousand recognized in the consolidated balance sheets for the year ended December 31, 2020.

Movements in net defined benefit assets were as follows:

	Present Value
	of the Defined
	Benefit	Fair Value of	Net Defined
	Obligation	the Plan Assets	Benefit Assets
Balance at January 1, 2020	$ 42,157	$ (33,470)	$	8,687
Acquisition through business combinations	15,996	(4,973)		11,023
Service cost
Current service cost	62	-		62
Net interest expense (income)	336	(244)		92
Recognized in profit or loss	398	(244)		154
Remeasurement
Return on plan assets (excluding amounts
included in net interest)	-	(1,168)		(1,168)
Actuarial (gain) loss
Changes in demographic assumptions	4	-		4
Changes in financial assumptions	1,283	-		1,283
Experience adjustments	453	-		453
Recognized in other comprehensive income	1,740	(1,168)		572
Contributions from the employer	-	(2,240)		(2,240)
Balance at December 31, 2020	60,291	(42,095)		18,196
Service cost
Current service cost	244	-		244
Net interest expense (income)	294	(194)		100
Recognized in profit or loss	538	(194)		344
				(Continued)

40 -

	Present Value	Present Value
	of the Defined
	Benefit		Fair Value of		Net	Defined
	Obligation		the Plan Assets		Benefit Assets
Remeasurement
Return on plan assets (excluding amounts
included in net interest)	$	-	$	(474)	$	(474)
Actuarial (gain) loss
Changes in demographic assumptions		545		-		545
Changes in financial assumptions		155		-		155
Experience adjustments		(602)		-		(602)
Recognized in other comprehensive income		98		(474)		(376)
Contributions from the employer		-		(740)		(740)
Benefits paid		(13,140)		4,494		(8,646)
Balance at December 31, 2021	$	47,787	$ (39,009)		$	8,778
					(Concluded)

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

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

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

Discount rate Expected rate(s) of salary increase Mortality rate Turnover rate	December 31
	2021 2020 0.5%-0.55% 0.300%-0.800% 1.000%-2.000% 1.000%-2.000% According to the sixth experience life table of the insurance industry in Taiwan According to the fifth experience life table of the insurance industry in Taiwan 0%-7.5% 0%-8%

41 -

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

Discount rate(s) 25% increase 25% decrease Expected rate(s) of salary increase 25% increase 25% decrease		December	31
		2021 $ (917) $ 949 $ 938 $ (912)	2020 $ (1,206) $ 1,253 $ 1,239 $ (1,198)

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

Expected contributions to the plans for the next year Average duration of the defined benefit obligation		December	31
	2021 2020 $ 654 $ 659 8.1-13.9 years 7.6-13.3 years

c. Commuwell Enterprise (Thailand) Co., Ltd. calculates the pension of Thai employees on the basis of seniority, in accordance with section 118/1 of the Labor Protection Act (No. 6).

21. EQUITY

a. Share capital

Ordinary shares

Number of shares authorized (in thousands) Shares authorized Number of shares issued and fully paid (in thousands) Shares issued		December 31	December 31
		2021 200,000 $ 2,000,000 123,724 $ 1,237,242	2020 200,000 $ 2,000,000 123,724 $ 1,237,242

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

The authorized shares include 3,000 thousand shares allocated for the exercise of employee stock options.

42 -

b. Capital surplus

May be used to offset a deficit, distributed as cash dividends, or transferred to share capital (Note 1) Issuance of ordinary shares The difference between the consideration paid and the carrying amount of the subsidiaries’ net assets during actual acquisition Consolidation excess Unclaimed dividends May only be used to offset a deficit (Note 2) Changes in percentage of ownership interests in subsidiaries May not be used for any purpose Convertible bonds option		December 31	December 31
		2021 $ 1,184,809 413,526 852,372 78 143,150 175,396 $ 2,769,331	2020 $ 1,184,809 412,470 852,372 56 143,150 - $ 2,592,857

Note 1: Such capital surplus, which includes the amount in excess of par value of issued stocks (including the issuance of ordinary shares at the excess premium, the conversion premium of bonds, and the premium of stocks due to the consolidation excess, etc.), unclaimed dividends, and the difference between the consideration paid and the carrying amount of the subsidiaries’ net assets during actual acquisition, may be used to offset a deficit; in addition, when the Company has no deficit, such capital surplus may be distributed as cash dividends or transferred to share capital (limited to a certain percentage of the Company’s capital surplus and to once a year).
Note 2: Such capital surplus which arises from the effects of changes in ownership interests in subsidiaries may only be used to offset a deficit.
c. Retained earnings and dividends policy

Under the dividends policy as set forth in the amended Articles, where the Corporation made a profit in a fiscal year, the profit shall be first utilized for paying taxes, offsetting losses of previous years, setting aside as a legal reserve of 10% of the remaining profit, setting aside or reversing a special reserve in accordance with the laws and regulations, and then any remaining profit together with any undistributed retained earnings shall be used by the Corporation’s board of directors as the basis for proposing a distribution plan, which should be resolved in the shareholders’ meeting for the distribution of dividends and bonuses to shareholders. For the policies on the distribution of compensation of employees and remuneration of directors and supervisors after the amendment, refer to compensation of employees and remuneration of directors and supervisors in Note 22-d.

As the Corporation is currently in the growth stage, the Corporation considers its industry development and long-term interests of shareholders as well as its programs to maintain operating efficiency and meet its financial goals when determining the distribution of bonuses in shares or cash. The board of directors shall propose allocation ratios every year and propose such allocation ratio at the shareholder’s meeting. For the distribution of bonuses to shareholders, cash dividends are preferred. Distribution of earnings may also be made in the form of stock dividends; provided that the ratio of cash dividends distributed is 5% to 100% of the total dividends distributed.

43 -

An appropriation of earnings to a legal reserve shall be made until the legal reserve equals the Corporation’s paid-in capital. The legal reserve may be used to offset deficits. If the Corporation has no deficit and the legal reserve has exceeded 25% of the Corporation’s paid-in capital, the excess may be transferred to capital or distributed in cash.

Items referred to under Rule No. 1010012865 and Rule No. 1010047490 issued by the FSC and in the directive titled “Questions and Answers for Special Reserves Appropriated Following Adoption of IFRSs” should be appropriated to or reversed from a special reserve by the Corporation.

The appropriations of earnings for 2020 and 2019 which were approved in the shareholders’ meetings on July 30, 2021 and June 18, 2020, respectively, were as follows:

Legal reserve Special reserve Cash dividends Dividend per share (NT$)	Appropriation of Earnings	Appropriation of Earnings	Appropriation of Earnings
	For the Year Ended		December 31
		2020 $ 96,510 $ 1,595 $ 618,621 $ 5.00	2019 $ 94,150 $ 202,514 $ 556,759 $ 4.50

The appropriation of earnings for 2021 had been proposed by the Corporation’s board of directors on March 15, 2022. The appropriation and dividends per share were as follows:

	For the Year	For the Year
		Ended
	December 31,
		2021
Legal reserve	$	25,211
Special reserve	$	51,576
Cash dividends	$	247,448
Dividend per share (NT$)	$	2.00

The board of directors proposed to allocate capital surplus of $408,290 thousand for cash dividend of $3.30 per share.

The appropriation of earnings and capital surplus for 2021 is subject to the resolution of the shareholders in the shareholders’ meeting to be held on June 10, 2022.

d. Special reserve

Balance at January 1 Appropriated special reserve Exchange differences on translating the financial statements of foreign operations Balance at December 31	For the Year Ended	For the Year Ended	December 31
		2021 $ 634,020 1,595 $ 635,615	2020 $ 431,506 202,514 $ 634,020

44 -

On the initial application of the IFRSs, the net increase arising from the retained earnings was not enough for the special reserve appropriation; thus, the Corporation appropriated a special reserve at the amount of $230,916 thousand. Additional special reserve should be appropriated for the amount equal to the difference between net debit balance reserves and the special reserve appropriated on the first-time adoption of IFRSs. Any special reserve appropriated may be reversed to the extent that the net debit balance reverses and is thereafter, distributed.

e. Non-controlling interests

Balance at January 1 Share in profit for the year Other comprehensive income (loss) during the year Exchange differences on translating the financial statements of foreign entities Remeasurement of defined benefit plans Income tax relating to items that will not be reclassified subsequently to profit or loss Non-controlling interests arising from acquisition of subsidiaries (Note 25) Changes in ownership interests in subsidiaries (Note 26) Balance at December 31	For the Year Ended December 31,	For the Year Ended December 31,	For the Year Ended December 31,
		2021 $ 343,138 (11,140) (9,191) 11 674 - (3,304) $ 320,188	2020 $ 229,257 8,944 2,508 (227) - 107,998 (5,342) $ 343,138

22. NET PROFIT

Net profit comprises:

a. Other income

Dividends Rental income Subsidy income Others Other gains and losses Loss on disposal of losses plant and equipment Loss from disaster Others	For the Year Ended December 31,	For the Year Ended December 31,	For the Year Ended December 31,
	2021 2020 $ 23,299 $ 6,229 90 9,896 18,124 24,033 14,148 2,505 $ 55,661 $ 42,663 For the Year Ended December 31,
		2021 $ (2,086) (17,833) (15,080) $ (34,999)	2020 $ (1,038) - (8,726) $ (9,764)

b. Other gains and losses

45 -

c. Depreciation, amortization and employee benefits expense:

Employee benefits expense Defined contribution plan Defined benefit plan Other employee benefits Depreciation Amortization			For the Year Ended December 31	For the Year Ended December 31	For the Year Ended December 31	For the Year Ended December 31
			2021	Total $ 91,487 344 2,342,718 $ 2,434,549 $ 403,834 $ 16,482			2020
		Operating Costs $ 69,201 263 1,809,127 $ 1,878,591 $ 264,343 $ 1,150	Operating Expenses $ 22,286 81 533,591 $ 555,958 $ 139,491 $ 15,332			Operating Costs $ 31,836 286 1,398,941 $ 1,431,063 $ 191,195 $ 396	Operating Expenses $ 12,443 (132) 467,048 $ 479,359 $ 110,456 $ 13,638	Total $ 44,279 154 1,865,989 $ 1,910,422 $ 301,651 $ 14,034

d. Compensation of employees and remuneration of directors and supervisors

According to the Corporation’s Articles of Incorporation, the Corporation accrued compensation of employees and remuneration of directors and supervisors at rates of no less than 3% and no higher than 2%, respectively, of net profit before income tax, compensation of employees, and remuneration of directors and supervisors. The compensation of employees and the remuneration of directors and supervisors for the years ended December 31, 2021 and 2020, which were approved by the Corporation’s board of directors on March 15, 2022 and March 16, 2021, respectively, are as follows:

Accrual rate

Compensation of employees Remuneration of directors and supervisors Amount Compensation of employees Remuneration of directors and supervisors	For the Year Ended December 31 2021 2020 8.82% 6.58% 1.99% 1.44% For the Year Ended December 31 2021 2020 Cash Cash $ 31,000 $ 80,847 7,000 17,747	For the Year Ended December 31 2021 2020 8.82% 6.58% 1.99% 1.44% For the Year Ended December 31 2021 2020 Cash Cash $ 31,000 $ 80,847 7,000 17,747
		2020
		Cash $ 80,847 17,747

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.

46 -

The Corporation held board of directors’ meetings on March 16, 2021 and March 13, 2020 and the meeting resulted in the actual amounts of the compensation of employees and remuneration of directors and supervisors paid for 2020 and 2019 to differ from the amounts recognized in the consolidated financial statements. The differences were adjusted to profit and loss for the years ended December 31, 2021 and 2020.

Amounts approved in the board of directors’ meeting Amounts recognized in the annual consolidated financial statements	For the Year Ended December 31	For the Year Ended December 31
	2020 Compensation of employees Remuneration of Directors and Supervisors $ 80,000 $ 18,000 $ 80,847 $ 17,747	2019
		Compensation of employees Remuneration of Directors and Supervisors $ 79,000 $ 18,000 $ 79,339 $ 17,416

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

23. INCOME TAXES

a. Income tax recognized in profit or loss

Major components of income tax expense are as follows:

Current tax In respect of the current period Income tax on unappropriated earnings Adjustments for prior periods Deferred tax In respect of the current period Adjustments to deferred tax attributable to changes in tax rates and laws Income tax expense recognized in profit or loss	For the Year Ended	For the Year Ended	December 31
		2021 $ 310,871 9,230 1,193 321,294 (181,696) 4,403 (177,293) $ 144,001	2020 $ 520,072 4,404 4,522 528,998 (6,702) 543 (6,159) $ 522,839

47 -

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

Profit before tax Income tax expense calculated at the statutory rate Permanent differences Unrecognized deductible temporary differences Unrecognized loss carryforwards Income tax on unappropriated earnings Adjustments for prior years’ tax Income tax expense recognized in profit or loss	For the Year Ended December 31	For the Year Ended December 31	For the Year Ended December 31
		2021 $ 384,616 $ 107,762 6,110 4,344 10,959 9,230 5,596 $ 144,001	2020 $ 1,497,521 $ 572,440 (60,355) (6,205) 7,490 4,404 5,065 $ 522,839

b. Current tax assets and liabilities

Current tax assets Tax refund receivable (included other current assets) Current tax liabilities Income tax payable		December 31	December 31
		2021 $ - $ 161,944	2020 $ 8,474 $ 181,357

c. Deferred tax assets and liabilities

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

For the year ended December 31, 2021

Deferred Tax Assets
Opening Balance
Acquisitions
through Business
Combinations
Recognized in
Profit or Loss
Recognized in
Other
Comprehensive
Income
Adjustments to
Deferred Tax
Attributable to
Changes in Tax
Rates and Laws
Temporary differences
Allowance loss for exceeding
limits
$ 2,394
$ -
$ (2,040 )
$ -
$ -

Allowance for inventory
valuation and obsolescence
losses
22,338
-
2,288
-
(418 )
Others
13,475
-
(2,555 )
17
(6,469 )
Loss carryforwards

41,513

-

36,525

-

-

$ 79,720
$ -
$ 34,218
$ 17
$ (6,887 )

Deferred Tax Liabilities
Opening Balance
Acquisitions
through Business
Combinations
Recognized in
Profit or Loss
Recognized in
Other
Comprehensive
Income
Adjustments to
Deferred Tax
Attributable to
Changes in Tax
Rates and Laws
Temporary differences
Gain on investments accounted
for using the equity method
$ 284,128
$ -
$ (135,264 )
$ -
$ -

Unrealized exchange gains
7,486
-
(4,564 )
-
(2,228 )
Land value income tax
22,171
-
-
-
-
Others

18,154

-

(7,650)

(2,163)

(256)

$ 331,939
$ -
$ (147,478 )
$ (2,163 )
$ (2,484 )

Exchange
Differences
Closing Balance
$ (43 )
$ 311
(209 )
23,999
(432 )
4,036

(6)

78,032
$ (690 )
$ 106,378
Exchange
Differences
Closing Balance
$ -
$ 148,864
-
694
-
22,171

(431)

7,654
$ (431 )
$ 179,383

48 -

For the year ended December 31, 2020

Deferred Tax Assets
Opening Balance
Acquisitions
through Business
Combinations
Recognized in
Profit or Loss
Recognized in
Other
Comprehensive
Income
Adjustments to
Deferred Tax
Attributable to
Changes in Tax
Rates and Laws
Temporary differences
Allowance loss for exceeding
limits
$ 3,678
$ 15
$ (1,267 )
$ -
$ -

Allowance for inventory
valuation and obsolescence
losses
18,680
7,992
(4,379 )
-
-
Others
4,761
6,402
2,762
-
(543 )
Loss carryforwards

43,419

6,073

(7,992)

-

-

$ 70,538
$ 20,482
$ (10,876 )
$ -
$ (543 )

Deferred Tax Liabilities
Opening Balance
Acquisitions
through Business
Combinations
Recognized in
Profit or Loss
Recognized in
Other
Comprehensive
Income
Adjustments to
Deferred Tax
Attributable to
Changes in Tax
Rates and Laws
Temporary differences
Gain on investments accounted
for using the equity method
$ 267,035
$ 39,341
$ (22,248 )
$ -
$ -

Unrealized exchange gains
6,425
1,461
(387 )
-
-
Land value income tax
-
22,171
-
-
-
Others

2,692

10,345

5,057

57

-

$ 276,152
$ 73,318
$ (17,578 )
$ 57
$ -

Exchange
Differences
Closing Balance
$ (32 )
$ 2,394
45
22,338
93
13,475

13

41,513
$ 119
$ 79,720
Exchange
Differences
Closing Balance
$ -
$ 284,128
(13 )
7,486
-
22,171

3

18,154
$ (10 )
$ 331,939

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

Deductible temporary differences Loss carryforwards		December 31	December 31
		2021 $ 149,634 87,361 $ 236,995	2020 $ 246,192 136,996 $ 383,188

The unrecognized deductible temporary differences are goodwill amortization, excess loss allowance, impairment loss on financial assets measured at cost, and loss on investments accounted for using the equity method.

e. Information about unused loss carryforwards

Loss carryforwards as of December 31, 2021 comprised:

Unused Amount	Unused Amount	Expiry Year
$	6,288	2022
	10,280	2023
	44,201	2024
	21,082	2025
	11,149	2026
	25,078	2029
	6,998	2030
$	125,076

f. Income tax assessments

Except for the year 2016, the income tax returns of Leohab Enterprise Co., Ltd. through 2018 have been assessed by the tax authorities.

49 -

The income tax returns of the Corporation and Gatetech Technology Inc. through 2019 have been assessed by the tax authorities.

All the subsidiaries in China and Thailand have completed income tax returns within the time limit specified by the local tax collection authority.

24. EARNINGS PER SHARE

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

Net Profit for the Year

Earnings used in the computation of diluted earnings per share Effect of potentially dilutive ordinary shares Interest on convertible bonds	For the Year Ended	For the Year Ended	December 31
		2021 $ 251,755 1,052 $ 252,807	2020 $ 965,738 - $ 965,738

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

Weighted average number of ordinary shares used in the computation of basic earnings per share Effect of potentially dilutive ordinary shares Compensation of employees Convertible bonds Weighted average number of ordinary shares used in the computation of diluted earnings per share	For the Year Ended December 31	For the Year Ended December 31	For the Year Ended December 31
		2021 123,724 629 1,083 125,436	2020 123,724 1,133 - 124,857

If the Group offered to settle the compensation or bonuses paid to employees in cash or shares, the Group assumed that the entire amount of the compensation or bonuses will be settled in shares, and the resulting potential shares were 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.

50 -

25. BUSINESS COMBINATIONS

2020

a. Subsidiaries acquired

			Proportion of
			Voting Equity
			Interests	Consideration
Subsidiary	Principal Activity	Date of Acquisition	Acquired (%)	Transferred
Leohab Enterprise	Precision hardware	November 30, 2020	70	$ 232,677
Co., Ltd. and	component
subsidiaries	manufacturing and
	plastic ejection

Leohab Enterprise Co., Ltd. and subsidiaries was acquired in order to further enhance the Group’s supply chain integration.

b. Consideration transferred

Leohab Enterprise Co., Ltd. and Subsidiaries Cash $ 232,677

c. Assets acquired and liabilities assumed at the date of acquisition

	Leohab
	Enterprise Co.,
	Ltd. and
	Subsidiaries
Current assets
Cash and cash equivalents	$ 125,564
Trade and other receivables	227,318
Inventories	49,510
Other current assets	7,798
Non-current assets
Property, plant and equipment	424,462
Right-of-use assets	27,123
Intangible assets	4,516
Deferred tax assets	20,482
Other non-current assets	752
Current liabilities
Short-term borrowings	(209,174)
Trade and notes payables	(72,002)
Other payables	(63,057)
Current tax liabilities	(14,644)
Lease liabilities	(695)
Current Portions of long-term borrowings	(710)
Other current liabilities	(1,362)
	(Continued)

51 -

	Leohab
	Enterprise Co.,
	Ltd. and
	Subsidiaries
Non-current liabilities
Long-term borrowings	$ (73,556)
Deferred tax liabilities	(62,188)
Net defined benefit liabilities	(11,023)
Other non-current liabilities	(19,116)
	$ 359,998
	(Concluded)

d. Gain from bargain purchase recognized on acquisitions

	Leohab
	Enterprise Co.,
	Ltd. and
	Subsidiaries
Consideration transferred	$ 232,677
Plus: Non-controlling interests (30% in Leohab Enterprise Co., Ltd.)	107,998
Less: Fair value of identifiable net assets acquired	(359,998)
Gain from bargain purchase recognized on acquisitions	$ 19,323

The gain from bargain purchase recognized in the acquisitions of Leohab Enterprise Co., Ltd. and subsidiaries is generated from the differences between consideration transferred and the acquisition of fair value of identifiable net assets acquired, which was recognized as net profit/loss for the year.

e. Net cash outflow on the acquisition of subsidiaries

	Leohab
	Enterprise Co.,
	Ltd. and
	Subsidiaries
Consideration paid in cash	$ 232,677
Less: Cash and cash equivalent balances acquired	(125,564)
	$ 107,113

f. Impact of acquisitions on the results of the Group

The financial results of the acquirees since the acquisition dates, which are included in the consolidated statements of comprehensive income, are as follows:

	Leohab
	Enterprise Co.,
	Ltd. and
	Subsidiaries
Revenue	$ 51,837
Profit	$ 3,689

52 -

Had these business combinations been in effect at the beginning of the financial year, the Group’s revenue would have been $10,239,213 thousand, and the profit would have been $996,570 thousand for the year ended December 31, 2020. This pro-forma information is for illustrative purposes only and is not necessarily an indication of the revenue and results of operations of the Group that actually would have been achieved had the acquisition been completed on January 1, 2020, nor is it intended to be a projection of future results.

26. EQUITY TRANSACTIONS WITH NON-CONTROLLING INTERESTS

On April 21, 2020, July 27, 2020 and December 15, 2021, the Corporation subscribed for additional new shares of Gatetech Technology Inc. at 0.17%, 0.45% and 0.39% from its existing ownership percentage for a cash consideration of $1,345 thousand, $2,470 thousand and $2,248 thousand, respectively, and increased the Corporation’s percentage of ownership from 72.81% to 73.43% and from 73.43% to 73.82% as of December 31, 2020 and 2021, respectively.

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

Consideration paid The proportionate share of carrying amount of the net assets of the subsidiary transferred to non-controlling interests Exchange differences on translating the financial statements of foreign operations Difference recognized from equity transactions Adjustment of difference recognized from equity transactions Capital surplus-difference between actual acquisition of subsidiary’s equity prices and carrying amount	For the Year Ended December 31	For the Year Ended December 31	For the Year Ended December 31
		2021 $ (2,248) 3,304 - $ 1,056 $ 1,056	2020 $ (3,815) 5,342 (6) $ 1,521 $ 1,521

27. 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 stockholders through the optimization of the debt and equity balance.

The strategy for managing the capital structure of the Group is based on the scale of the business, the future growth of the industry and the blueprints of the products’ development. The Group calculates trading fund and cash based on its production capacity in order to have a long-term and completed plan. The Group takes into account product competition to estimate the products’ contribution, operating profit margin and cash flow. It also considers the business cycle and the product’s’ life cycle and risks when deciding the appropriate capital structure.

Key management personnel of the Group review the capital structure on a regular basis. As part of this review, the key management personnel consider the cost of capital and the risks associated with each class of capital. Generally, the Group uses a cautious risk management strategy.

53 -

28. FINANCIAL INSTRUMENTS

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

December 31, 2021

b.	Carrying FairValue Amount Level 1 Level 2 Level 3 Financial liabilities Financial liabilities at amortized cost Convertible bonds $ 1,166,288 $ 1,390,200 $ - $ - Fair value of financial instruments measured at fair value on a recurring basis 1) Fair value hierarchy December 31, 2021 Level 1 Level 2 Level 3 Financial assets at FVTPL Foreign exchange forward contracts $ - $ 4 $ - Listed shares 81,379 - Bonds payable - 360 - Structured deposits 65,370 - Emerging market shares 10,427 - 7,101 Overseas unlisted shares - - 38,508 Private funds - - 9,034 $ 157,176 $ 364 $ 54,643 Financial liabilities at FVTPL Foreign exchange forward contracts $ - $ 41 $ - December 31, 2020 Level 1 Level 2 Level 3 Financial assets at FVTPL Foreign exchange forward contracts $ - $ 22,322 $ - Listed shares 200,701 - - Structured deposits 152,926 - - Emerging market shares 6,708 - 8,911 Overseas unlisted shares - - 51,579 Private funds - - 3,088 $ 360,335 $ 22,322 $ 63,578			FairValue	FairValue
				Level 2 $ -	Level 3 $ - basis Level 3 $ - - 7,101 38,508 9,034 $ 54,643 $ - Level 3 $ - - - 8,911 51,579 3,088 $ 63,578	Total $ 1,390,200 Total $ 4 81,379 360 65,370 17,528 38,508 9,034 $ 212,183 $ 41 Total $ 22,322 200,701 152,926 15,619 51,579 3,088 $ 446,235

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

54 -
2) Reconciliation of Level 3 fair value measurements of financial instruments

Balance at January 1 Recognized in profit or loss (included in net gain on fair value changes of financial assets at fair value through profit or loss) Purchases Refund of capital reduction Balance at December 31	For the Year Ended December 31	For the Year Ended December 31	For the Year Ended December 31
		2021 $ 63,578 (17,040) 8,105 - $ 54,643	2020 $ 57,409 5,589 5,017 (4,437) $ 63,578

3) Valuation techniques and inputs applied for Level 2 fair value measurement

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Financial Instrument Valuation Technique and Inputs
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Financial Instrument	Valuation Technique and Inputs
Foreign exchange forward	Discounted cash flows Future cash flows are estimated based
contracts	on observable forward exchange rates at the end of the year
	and contract forward rates, discounted at a rate that reflects
	the credit risk of various counterparties.
Domestic third unsecured	Under the assumption that bonds will be redeemed on
convertible bonds	September 9, 2024, discount rate adopted is calculated via
	interpolation method using government bond yield rates
	from public offer 2-year and 5- year period.

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

Fair values of emerging market shares are measured using the market approach, while the fair values of overseas unlisted shares and private funds are measured using the asset approach.

c. Categories of financial instruments

Financial assets Mandatorily classified as at FVTPL Financial assets at amortized cost (1) Financial liabilities Mandatorily classified as at FVTPL Financial liabilities at amortized cost (2)	December 31
	2021 2020 $ 212,183 $ 446,235 6,279,111 7,124,038 41 - 4,688,776 4,373,990

1) The balances include financial assets at amortized cost, which comprise cash and cash equivalents, financial assets at amortized costs, notes receivable, trade receivables, other receivables, and refundable deposits.
2) The balances include financial liabilities at amortized cost, which comprise short-term borrowings, current portion of long-term borrowing and bonds payable, long-term borrowings, notes payable and trade payables, other payables, bonds payable, and guarantee deposits received.
55 -

d. Financial risk management objectives and policies

The Group’s major financial instruments include cash and cash equivalents, financial assets mandatorily classified as at FVTPL, financial assets at amortized costs, equity investment, trade receivables, trade payables, accounts payable, bonds payable, short-term 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 foreign currency risk, interest rate risk and other price risk), credit risk and liquidity risk.

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). There is no change in the method of the measurement of market risk.

There has been no change to the Group’s exposure to market risks or the manner in which these risks are managed and measured.

a) Foreign currency risk

Several subsidiaries of the Group have foreign currency sales and purchases, which exposes the Group to foreign currency risk. The carrying amounts of the Group’s foreign currency denominated monetary assets and monetary liabilities (including those eliminated on consolidation) and of the derivatives exposed to foreign currency risk at the end of the reporting period are set out in Note 32.

Sensitivity analysis

The Group is mainly exposed to the USD and RMB.

The following table details the Group’s sensitivity to a 1% increase and decrease in the New Taiwan dollar (functional currency) against the relevant foreign currencies. The sensitivity rate used when reporting foreign currency risk internally to key management personnel and representing management’s assessment of the reasonably possible change in foreign exchange rates is 1%. The sensitivity analysis included only outstanding foreign currency denominated monetary items and foreign exchange forward contracts designated as cash flow hedges, and adjusts their translation at the end of the reporting period for a 1% change in foreign currency rates. A negative number below indicates a decrease in pre-tax profit associated with the New Taiwan dollar strengthening 1% against the relevant currency. For a 1% weakening of the New Taiwan dollar against the relevant currency, there would be an equal and opposite impact on pre-tax profit, and the balances below would be positive.

USD impact USD:NTD USD:RMB USD:VND RMB impact RMB:NTD RMB:USD	For the Year Ended December 31	For the Year Ended December 31	For the Year Ended December 31
		2021 $ 84 $ (24,472) $ (939) $ (2,311) $ (441)	2020 $ 6,816 $ (24,354) $ (1,335) $ (2,477) $ (445)

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This was mainly attributable to the exposure on outstanding receivables in USD and RMB which were not hedged at the end of the reporting period.

In management’s opinion, the sensitivity analysis is unrepresentative of the inherent foreign currency risk because the exposure at the end of the reporting period did not reflect the exposure during the period.

b) Interest rate risk

The Group is exposed to interest rate risk because entities in the Group borrow funds at both fixed and floating interest rates.

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

Fair value interest rate risk Financial assets Financial liabilities Cash flow interest rate risk Financial assets Sensitivity analysis	December 31
	2021 2020 $ 517,230 $ 988,587 2,824,014 2,274,865 1,940,437 2,185,789

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 year. A 100 basis point increase or decrease is used when reporting interest rate risk internally to key management personnel and represents management’s assessment of the reasonably possible change in interest rates.

If interest rates had been 100 basis points higher/lower and all other variables were held constant, the Group’s pre-tax profit for the years ended December 31, 2021 and 2020 would have increased/decreased by $19,404 thousand and $21,858 thousand, respectively, which was mainly attributable to the Group’s exposure to interest rates on its variable-rate deposits.

c) Other price risk

The Group was exposed to equity price risk through its investments in domestic listed shares, domestic emerging market shares, mutual funds and overseas unlisted shares. In addition, the Group has appointed a special team to monitor the price risk and will consider hedging the risk exposure should the need arise.

Sensitivity analysis

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

If equity prices had been 1% higher/lower, pre-tax profit for the years ended December 31, 2021 and 2020 would have increased/decreased by $1,374 thousand and $2,679 thousand, respectively, as a result of the changes in fair value of financial assets at FVTPL.

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2) Credit risk

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

In order to reduce credit risk, the management team of the Group designated a special team to decide the credit ratings of counterparties and other monitoring procedures to make sure there are appropriate actions taken to collect the overdue receivables. Additionally, on each balance sheet date, the Group reviews the recoverable amounts to ensure appropriate allowances have been made for doubtful accounts. Therefore, the Group considers its credit risk to be significantly reduced.

The Group continuously assesses the financial conditions of customers with outstanding receivables.

As the counterparties of the Group are financial institutions and companies with good credit ratings, the Group has limited credit risk.

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, The Group had available unutilized short-term bank loan facilities set out in below.

Financing facilities

Unsecured bank overdraft facilities, reviewed annually and payable on demand: Amount used Amount unused Secured bank overdraft facilities, review annually and payable on demand: Amount used Amount unused		December 31	December 31
		2021 $ 495,000 3,410,000 $ 3,905,000 $ 611,566 47,633 $ 659,199	2020 $ 1,388,436 1,930,200 $ 3,318,636 $ 552,395 169,493 $ 721,888

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29. TRANSACTIONS WITH RELATED PARTIES

Balances and transactions between the Group and its subsidiaries, which are related parties of the Group, have been eliminated on consolidation and are not disclosed in this note. Besides information disclosed elsewhere in the other notes, details of transactions between the Group and other related parties are disclosed below.

a. Related party name and category

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Related Party Name Related Party Category
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Related Party Name	Related Party Category
High Grade Tech Co., Ltd.	Associate
Smart Automation Technology Inc.	Associate
Chen Chien Hung	Related party in substance (first-degree relative of the
	Corporation’s director)
Chen Chien Yuan	The legal representative of the Corporation’s director (Note)
Kuan Chen Investment Co., Inc.	Related party in substance (director is the first-degree relative
	of the Corporation’s director)

Note: Since June 2020, related party in substance has been changed to the legal representative of the Corporation’s director.

b. Operating expense

For the Year Ended December 31	For the Year Ended December 31	For the Year Ended December 31
2021 2020 $ 12 $ 7 For the Year Ended December 31
2021 2020 $ - $ 550 197 - $ 197 $ 550 For the Year Ended December 31
	2021 $ - - $ -	2020 $ 2,879 1,574 $ 4,453

c. Property, plant and equipment
d. Lease agreements
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Line Item Related Party Category Lease liabilities Related party in substance The legal representative of the Corporation’s director Related Party Category Interest expense Related party in substance The legal representative of the Corporation’s director Lease expense Related party in substance The legal representative of the Corporation’s director		December	31
	2021 2020 $ 242 $ 1,685 132 921 $ 374 $ 2,606 For the Year Ended December 31
		2021 $ 10 5 $ 15 $ - - $ -	2020 $ 19 6 $ 25 $ 458 297 $ 755

Lease expenses included expenses relating to short-term leases.

The rental amounts agreed in lease contracts between the Group and other related parties are determined based on market prices and general payment terms.

e. Other assets

Line Item Related Party Category Intangible assets Associate f. Compensation of key management personnel Short-term employee benefits Post-employment benefits	For the Year Ended December 31	For the Year Ended December 31	For the Year Ended December 31
	2021 2020 $ 730 $ - For the Year Ended December 31
		2021 $ 44,873 314 $ 45,187	2020 $ 59,549 279 $ 59,828

The remuneration of directors and key executives was determined by the remuneration committee based on the performance of individuals and market trends.

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30. ASSETS PLEDGED AS COLLATERAL OR FOR SECURITY

The following assets were provided as collateral for borrowings and current portion of bonds payable:

Financial assets at amortized cost Property, plant and equipment		December 31	December 31
		2021 $ 1,728 822,189 $ 823,917	2020 $ 3,964 706,058 $ 710,022

31. SIGNIFICANT LOSSES FROM DISASTERS

A fire broke out in the premises of Suzhou Fulfil Electronics Co., Ltd. on January 20, 2021, which caused damage to some of the plant, machinery, equipment and inventories. The Corporation has property insurance and public liability insurance for the aforementioned plant, machinery, equipment and inventories. The estimated cost of damage in the amount of NT$17,833 thousand was recognized in other gains and losses.

32. SIGNIFICANT ASSETS AND LIABILITIES DENOMINATED IN FOREIGN CURRENCIES

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

December 31, 2021

		Foreign		Carrying
		Currency	Exchange Rate	Amount
Financial assets
Monetary items
USD	$	59,638	27.68 (USD:NTD)	$ 1,650,780
USD		90,378	6.3757 (USD:RMB)	2,501,663
USD		4,417	23,130 (USD:VND)	122,263
RMB		58,264	4.3440 (RMB:NTD)	253,099
RMB		10,158	0.1569 (RMB:USD)	44,126
Non-monetary items
Financial assets at FVTPL - non-current
USD		1,391	27.68 (USD:NTD)	38,508
Financial liabilities
Monetary items
USD		59,940	27.68 (USD:NTD)	1,659,139
USD		1,967	6.3757 (USD:RMB)	54,447
USD		1,026	23,130 (USD:VND)	28,400
RMB		5,056	4.3440 (RMB:NTD)	21,963

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December 31, 2020

		Foreign		Carrying
		Currency	Exchange Rate	Amount
Financial assets
Monetary items
USD	$	45,597	28.48 (USD:NTD)	$ 1,298,603
USD		89,596	6.5423 (USD:RMB)	2,551,694
USD		4,686	25,689 (USD:VND)	133,457
RMB		64,678	4.3770 (RMB:NTD)	283,096
RMB		10,167	0.1537 (RMB:USD)	44,501
Non-monetary items
Financial assets at FVTPL - non-current
USD		1,342	28.48 (USD:NTD)	51,579
Financial liabilities
Monetary items
USD		69,530	28.48 (USD:NTD)	1,980,214
USD		4,083	6.5423 (USD:RMB)	116,284
RMB		8,095	4.3770 (RMB:NTD)	35,432

The Group is mainly exposed to the USD and RMB. The following information was aggregated by the functional currencies of the group entities in the Group, and the exchange rates between respective functional currencies and the presentation currency were disclosed. The significant realized and unrealized foreign exchange gains (losses) were as follows:

Foreign Currency NTD USD RMB VND THB SGD	For the Year Ended December 31	For the Year Ended December 31
	2021 Exchange Rate Net Foreign Exchange Gains (Losses) 1 (NTD:NTD) $ 7,331 27.680 (USD:NTD) 1,013 4.3440 (RMB:NTD) (70,355) 0.00120 (VND:NTD) 2,798 0.8347 (THB:NTD) 1,416 20.46 (SGD:NTD) 6 $ (57,791)	2020
		Exchange Rate Net Foreign Exchange Gains (Losses) 1 (NTD:NTD) $ 27,444 28.480 (USD:NTD) (9,026) 4.3770 (RMB:NTD) (169,930) 0.00111 (VND:NTD) (1,967) 0.9556 (THB:NTD) (1) 21.56 (SGD:NTD) (14) $ (153,494)

33. SEPARATELY DISCLOSED ITEMS

a. Information about significant transactions and investees:
1) Financing provided to others (Table 1)
2) Endorsements/guarantees provided (Table 2)
3) Marketable securities held (excluding investments in subsidiaries, associates and joint ventures) (Table 3)
62 -
4) Marketable securities acquired or disposed of at costs or prices of at least NT$300 million or 20% of the paid-in capital (None)
5) Acquisition of individual real estate at costs of at least NT$300 million or 20% of the paid-in capital (None)
6) Disposal of individual real estate at prices of at least NT$300 million or 20% of the paid-in capital (None)
7) Total purchases from or sales to related parties amounting to at least NT$100 million or 20% of the paid-in capital (Table 4)
8) Receivables from related parties amounting to at least NT$100 million or 20% of the paid-in capital (Table 5)
9) Trading in derivative instruments (Note 7)
10) Intercompany relationships and significant intercompany transactions (Table 8)
b. Information on investees (Table 6)
c. Information on investments in mainland China
1) Information on any investee company in mainland China, showing the name, principal business activities, paid-in capital, method of investment, inward and outward remittance of funds, ownership percentage, net income of investees, investment income or loss, carrying amount of the investment at the end of the period, repatriations of investment income, and limit on the amount of investment in the mainland China area (Table 7)
2) Any of the following significant transactions with investee companies in mainland China, either directly or indirectly through a third party, and their prices, payment terms, and unrealized gains or losses (Tables 1, 2, 4, 5 and 8):
- a) The amount and percentage of purchases and the balance and percentage of the related payables at the end of the period.
- b) The amount and percentage of sales and the balance and percentage of the related receivables at the end of the period.
- c) The amount of property transactions and the amount of the resultant gains or losses.
- d) The balance of negotiable instrument endorsements or guarantees or pledges of collateral at the end of the period and the purposes.
- e) The highest balance, the end of period balance, the interest rate range, and total current period interest with respect to financing of funds.
- f) Other transactions that have a material effect on the profit or loss for the year 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 9)
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34. SEGMENT INFORMATION

Information reported to the chief operating decision maker for the purpose of resource allocation and assessment of segment performance focuses on the types of goods or services delivered or provided. Specifically, the Group’s reportable segments under IFRS 8 “Operating Segments” were electronic equipment and molding.

No operating segments were closed during the year.

a. Segment revenue and results

The following was an analysis of the Group’s revenue and results from continuing operations by reportable segments:

Equipment - electronic parts - plastic molding Revenue from continuing operations Other income Other gains and losses Interest income Gain from bargain purchase - acquisitions of subsidiaries Net foreign exchange loss Net gain on financial assets at fair value through profit Share of profit of associates Interest expenses Impairment loss on investments accounted for using the equity method General and administrative expenses Income before tax		Segment Revenue For the Year Ended December 31 2021 2020 $ 9,894,007 $ 9,222,383 300,792 440,958 $ 10,194,799 $ 9,663,341		Segment Income	Segment Income
				For the Year Ended December 31
		2021 $ 9,894,007 300,792 $ 10,194,799		2021 $ 1,090,029 11,523 1,101,552 55,661 (34,999) 26,245 - (57,791) 45,390 7,520 (40,963) (10,633) (707,366) $ 384,616	2020 $ 1,985,317 130,866 2,116,183 42,663 (9,764) 35,901 19,323 (153,494) 54,357 4,185 (27,342) - (584,491) $ 1,497,521

The above segment revenue and results were generated from the transactions with external customers. There were no inter-segment transactions in 2021 and 2020.

Segment profit represented the profit before tax earned by each segment without allocation of central administration costs and directors’ salaries, other income, other gains and losses, interest income, gain from bargain purchase - acquisitions of subsidiaries, net foreign exchange loss, net gain on financial assets at fair value through profit, share of profit of associates, interest expense, impairment loss on investments accounted for using the equity method and income tax expense. This was the measure reported to the chief operating decision maker for the purpose of resource allocation and assessment of segment performance.

b. Segment total assets

The Group has no key operational personnel to monitor segment performance, and thus, the amount of segment assets is zero.

64 -

c. Other segment information

Plastic molding department Electronic parts department	Depreciation and Amortization	Depreciation and Amortization	Depreciation and Amortization
	For the Year Ended		December 31
		2021 $ 49,132 371,184 $ 420,316	2020 $ 54,331 261,354 $ 315,685

d. Revenue from major products and services

The following is an analysis of the Group’s revenue from continuing operations from its major products and services.

Display hinges Molding equipment	For the Year Ended December 31	For the Year Ended December 31	For the Year Ended December 31
		2021 $ 9,894,007 300,792 $ 10,194,799	2020 $ 9,222,383 440,958 $ 9,663,341

e. Geographical information

The Group operates in three principal geographical areas - China, Thailand and Taiwan.

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

China Taiwan Other	For the Year Ended December 31	For the Year Ended December 31	For the Year Ended December 31
		2021 $ 5,696,024 4,170,460 328,315 $ 10,194,799	2020 $ 5,676,649 3,943,924 42,768 $ 9,663,341

f. Information about major customers

Revenue in 2021 and 2020 were $10,194,799 thousand and $9,663,341 thousand, respectively and each single customer contributing 10% or more to the Group’s revenue was as follows:

Client Code A B C	For the Year Ended December 31	For the Year Ended December 31
	2021 Sales % of Revenue $ 2,504,787 24.57 1,475,227 14.47 977,722 9.59	2020
		Sales % of Revenue $ 2,497,956 25.85 1,393,966 14.43 1,055,015 10.92

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TABLE 1

SYNCMOLD ENTERPRISE CORPORATION AND SUBSIDIARIES

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

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Highest Actual Business Reasons for Allowance for Collateral
Financial Statement Related Ending Interest Rate Nature of Financing Limit Aggregate
No. Lender Borrower Balance for Amount Transaction Short-term Impairment
Account Party Balance (%) Financing Item Value for Each Borrower Financing Limit
the Period Borrowed Amount Financing Loss
0 Syncmold Enterprise Syncmold Enterprise Other receivables Yes $ 100,000 $ 100,000 $ - - Short-term $ - Operating $ - - - $1,131,417 $2,262,834
Corporation (Samoa) Corp. from related parties financing capital (20% of the net (40% of the net
worth of the worth of the
Corporation) Corporation)
Grand Advance Inc. Other receivables Yes 100,000 100,000 - - Short-term - Operating - - - $1,131,417 $2,262,834
from related parties financing capital (20% of the net (40% of the net
worth of the worth of the
Corporation) Corporation)
Syncmold Enterprise Other receivables Yes 250,000 100,000 - - Short-term - Operating - - - $1,131,417 $2,262,834
Vietnam Co., Ltd. from related parties financing capital (20% of the net (40% of the net
worth of the worth of the
Corporation) Corporation)
Gatetech Other receivables Yes 200,000 100,000 - - Short-term - Operating - - - $1,131,417 $2,262,834
Technology Inc. from related parties financing capital (20% of the net (40% of the net
worth of the worth of the
Corporation) Corporation)
Leohab Enterprise Other receivables Yes 300,000 100,000 - 1.55 Short-term - Operating - - - $1,131,417 $2,262,834
Co., Ltd. from related parties financing capital (20% of the net (40% of the net
worth of the worth of the
Corporation) Corporation)
1 Syncmold Enterprise Fujian Khuan Hua Other receivables Yes 55,360 55,360 - - Short-term - Operating - - - $1,131,417 $2,828,542
(Samoa) Corp. Precise Mold Co., from related parties financing capital (20% of the net (50% of the net
Ltd. worth of the worth of the
Corporation) Corporation)
Forever Business Other receivables Yes 83,040 - - - Short-term - Operating - - - $1,131,417 $2,828,542
Development from related parties financing capital (20% of the net (50% of the net
Limited worth of the worth of the
Corporation) Corporation)
Dongguan Khuan Other receivables Yes 83,040 55,360 - - Short-term - Operating - - - $1,131,417 $2,828,542
Huang Precise from related parties financing capital (20% of the net (50% of the net
Mold Plastic Co., worth of the worth of the
Ltd. Corporation) Corporation)
Syncmold Enterprise Other receivables Yes 207,600 152,240 41,520 0.00 Short-term - Operating - - - $1,131,417 $2,828,542
Corporation from related parties financing capital (20% of the net (50% of the net
worth of the worth of the
Corporation) Corporation)
2 Grand Advance Inc. Kunshan Fulfil Tech Other receivables Yes 83,040 55,360 - - Short-term - Operating - - - $1,131,417 $2,828,542
Co., Ltd. from related parties financing capital (20% of the net (50% of the net
worth of the worth of the
Corporation) Corporation)
Syncmold Enterprise Other receivables Yes 83,040 55,360 - - Short-term - Operating - - - $1,131,417 $2,828,542
(Samoa) Corp. from related parties financing capital (20% of the net (50% of the net
worth of the worth of the
Corporation) Corporation)
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(Continued)

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Highest Actual Business Reasons for Allowance for Collateral
Financial Statement Related Ending Interest Rate Nature of Financing Limit Aggregate
No. Lender Borrower Balance for Amount Transaction Short-term Impairment
Account Party Balance (%) Financing Item Value for Each Borrower Financing Limit
the Period Borrowed Amount Financing Loss
Full Big Limited Other receivables Yes $ 83,040 $ - $ - - Short-term $ - Operating $ - - - $1,131,417 $2,828,542
from related parties financing capital (20% of the net (50% of the net
worth of the worth of the
Corporation) Corporation)
Zhongshan Fulfil Other receivables Yes 83,040 - - - Short-term - Operating - - - $1,131,417 $2,828,542
Tech. Co., Ltd. from related parties financing capital (20% of the net (50% of the net
worth of the worth of the
Corporation) Corporation)
Chongqing Fulfil Other receivables Yes 83,040 83,040 - - Short-term - Operating - - - $1,131,417 $2,828,542
Tech Co., Ltd. from related parties financing capital (20% of the net (50% of the net
worth of the worth of the
Corporation) Corporation)
Fuzhou Fulfil Tech Other receivables Yes 83,040 - - - Short-term - Operating - - - $1,131,417 $2,828,542
Co., Ltd. from related parties financing capital (20% of the net (50% of the net
worth of the worth of the
Corporation) Corporation)
Suzhou Fulfil Other receivables Yes 83,040 55,360 - - Short-term - Operating - - - $1,131,417 $2,828,542
Electronics Co., from related parties financing capital (20% of the net (50% of the net
Ltd. worth of the worth of the
Corporation) Corporation)
Syncmold Enterprise Other receivables Yes 24,912 24,912 11,072 0.00 Short-term - Operating - - - $1,131,417 $2,828,542
(USA) Corp. from related parties financing capital (20% of the net (50% of the net
worth of the worth of the
Corporation) Corporation)
Fullking Other receivables Yes 124,560 96,880 41,520 0.00 Short-term - Operating - - - $1,131,417 $2,828,542
Development from related parties financing capital (20% of the net (50% of the net
Limited worth of the worth of the
Corporation) Corporation)
Syncmold Enterprise Other receivables Yes 401,360 304,480 221,440 0.00 Short-term - Operating - - - $1,131,417 $2,828,542
Corporation from related parties financing capital (20% of the net (50% of the net
worth of the worth of the
Corporation) Corporation)
3 Full Big Limited Fullking Other receivables Yes 22,144 22,144 22,144 0.00 Short-term - Operating - - - $1,131,417 $2,828,542
Development from related parties financing capital (20% of the net (50% of the net
Limited worth of the worth of the
Corporation) Corporation)
4 Fuzhou Fulfil Tech Co., Ltd Fujian Khuan Hua Other receivables Yes 69,464 43,415 - - Short-term - Operating - - - $1,131,417 $2,828,542
Precise Mold Co., from related parties financing capital (20% of the net (50% of the net
Ltd. worth of the worth of the
Corporation) Corporation)
Fuqing Fuqun Other receivables Yes 69,464 56,440 - - Short-term - Operating - - - $1,131,417 $2,828,542
Electronic from related parties financing capital (20% of the net (50% of the net
Hardware Tech worth of the worth of the
Co., Ltd. Corporation) Corporation)
Suzhou Fulfil Other receivables Yes 69,464 69,464 - - Short-term - Operating - - - $1,131,417 $2,828,542
Electronics Co., from related parties financing capital (20% of the net (50% of the net
Ltd. worth of the worth of the
Corporation) Corporation)
5 Suzhou Fulfil Electronics Kunshan Fulfil Tech Other receivables Yes 39,074 39,074 - - Short-term - Operating - - - $1,131,417 $2,828,542
Co., Ltd. Co., Ltd. from related parties financing capital (20% of the net (50% of the net
worth of the worth of the
Corporation) Corporation)
(Continued)
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Note 1: The authorized amount of loans was approved by the board of directors.

Note 2: The highest balance, ending balance, and the actual amount borrowed were calculated based on the exchange rate at the end of 2021.

Note 3: All the transaction in the table above have been eliminated during the preparation of the consolidated financial statements.

(Concluded)

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TABLE 2

SYNCMOLD ENTERPRISE CORPORATION AND SUBSIDIARIES

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

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Endorsee/Guarantee Ratio of
Maximum Accumulated
Endorsement/ Endorsement/ Endorsement/
Limit on Amount Outstanding Amount Endorsement/
Actual Aggregate Guarantee Given Guarantee Given Guarantee Given
Endorsement/ Endorsed/ Endorsement/ Endorsed/ Guarantee to Net
No. Endorser/Guarantor Borrowing Endorsement/ by Parent on by Subsidiaries on Behalf of
Name Relationship Guarantee Given on Guaranteed Guarantee at the Guaranteed by Equity in Latest
Amount Guarantee Limit Behalf of on Behalf of Companies in
Behalf of Each Party During the End of the Period Collateral Financial
Subsidiaries Parent Mainland China
Period Statements
(%)
0 Syncmold Enterprise Corporation Syncmold Enterprise Subsidiary $1,697,125 $ 55,360 $ - $ - $ - 0.00 $2,828,542 Y N N
(Samoa) Corp. (30% of the net worth (US$ 2,000 (50% of the net worth
of the Corporation) thousand) of the Corporation)
Forever Business Subsidiary $1,697,125 608,960 - - - 0.00 $2,828,542 Y N N
Development Limited (30% of the net worth (US$ 22,000 (50% of the net worth
of the Corporation) thousand) of the Corporation)
Fullking Development Subsidiary $1,697,125 276,800 - - - 0.00 $2,828,542 Y N N
Limited (30% of the net worth (US$ 10,000 (50% of the net worth
of the Corporation) thousand) of the Corporation)
Gatetech Technology Inc. Subsidiary $1,697,125 200,000 200,000 70,000 - 3.54 $2,828,542 Y N N
(30% of the net worth (50% of the net worth
of the Corporation) of the Corporation)
Leohab Enterprise Co., Subsidiary $1,697,125 257,680 255,000 175,000 - 4.51 $2,828,542 Y N N
Ltd. (30% of the net worth (US$ 2,500 (Note) (50% of the net worth
of the Corporation) thousand) of the Corporation)
(NT$ 188,480
thousand)
Syncmold Enterprise Subsidiary $1,697,125 553,600 553,600 - - 9.79 $2,828,542 Y N N
Vietnam Co., Ltd. (30% of the net worth (US$ 20,000 (US$ 20,000 (50% of the net worth
of the Corporation) thousand) thousand) of the Corporation)
1 Leohab Enterprise Co., Ltd. Commuwell Enterprise Subsidiary $111,535 81,959 - - - 0.00 $223,070 N N N
(Thailand) Co., Ltd. (50% of the net worth (THB 98,189 (100% of the net
of Leohab thousand) worth of Leohab
Enterprise Co., Enterprise Co.,
Ltd.) Ltd.)
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Note: By the resolution of the board of directors of the Corporation on December 2, 2020, in order to obtain relatively favorable bank credit conditions, it is proposed that Syncmold that Syncmold Enterprise Corporation provide an endorsement guarantee within the limit of $260,000 thousand for Leohab Enterprise Co., Ltd. As of December 31, 2021, the remaining $5,000 thousand has not been implemented.

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TABLE 3

SYNCMOLD ENTERPRISE CORPORATION AND SUBSIDIARIES

MARKETABLE SECURITIES HELD DECEMBER 31, 2021

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

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December 31, 2021
Relationship with the
Holding Company Name Type and Name of Marketable Securities Financial Statement Account Number of Carrying Percentage of Note
Holding Company Fair Value
Shares Amount Ownership (%)
Syncmold Enterprise Corporation Stock
Gigastone Corporation - Financial assets at FVTPL - non-current 847,011 $ 10,427 1.67 $ 10,427 (Notes 2 and 6)
Tiga Gaming Inc. - Financial assets at FVTPL - non-current 1,332,132 7,101 5.06 7,101 (Notes 3 and 6)
Foxfortune Technology Limited - Financial assets at FVTPL - non-current 1,000,000 27,024 5.80 27,024 (Notes 4 and 6)
Hercules BioVenture, L.P. - Financial assets at FVTPL - non-current 342,105 11,484 2.63 11,484 (Notes 4 and 6)
Winmate Inc. - Financial assets at FVTPL - current 1,038,000 81,379 1.44 81,379 (Notes 2 and 6)
Private funds
China Development of Healthcare Venture of - Financial assets at FVTPL - non-current 13,122,465 9,034 0.96 9,034 (Notes 4 and 6)
Limited Partnership
Structured deposit
Dongguan Khuan Huang Precise Peoples’ profit 298 - Financial assets at FVTPL - current - 21,825 - 21,825 (Notes 5 and 6)
Mold Plastic Co., Ltd.
Zhongshan Fulfil Tech. Co., Ltd. Monthly profit 21100243 - Financial assets at FVTPL - current - 43,545 - 43,545 (Notes 5 and 6)
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Note 1: The negotiable securities in the table above are the shares, bonds and mutual funds recognized under IFRS 9 - “Financial Instruments”.

Note 2: The shares are calculated at the strike price as of December 31, 2021.

Note 3: The shares are measured using the market approach.

Note 4: The shares are measured using the asset approach.

Note 5: The structured commodity is calculated at its contract worth as of December 31, 2021.

Note 6: No guarantees, pledged collateral or other restricted situations.

Note 7: Refer to Tables 6 and 7 for information on investments in subsidiaries and associates.

70 -

TABLE 4

SYNCMOLD ENTERPRISE CORPORATION AND SUBSIDIARIES

TOTAL PURCHASES FROM OR SALES TO RELATED PARTIES AMOUNTING TO AT LEAST NT$100 MILLION OR 20% OF THE PAID-IN CAPITAL FOR THE YEAR ENDED DECEMBER 31, 2021

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

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Notes/Accounts
Transaction Details Abnormal Transaction
Receivable (Payable)
Buyer Related Party Relationship Note
Purchase/ % of % of
Amount Payment Terms Unit Price Payment Terms Ending Balance
Sale Total Total
Syncmold Enterprise Corporation Zhongshan Fulfil Tech. Co., Ltd. Subsidiary Purchase $ 1,401,453 42 Note 1 $ - - $ (540,297) 41
Suzhou Fulfil Electronics Co., Ltd. Subsidiary Purchase 1,213,277 37 Note 1 - - (540,898) 41
Fuzhou Fulfil Tech Co., Ltd. Subsidiary Purchase 428,550 13 Note 1 - - (161,864) 12
Chongqing Fulfil Tech Co., Ltd. Subsidiary Purchase 180,445 5 Note 1 - - (43,813) 3
Zhongshan Fulfil Tech. Co., Ltd. Dongguan Khuan Huang Precise Mold Plastic Indirect subsidiary Purchase 266,536 13 Note 1 - - (60,302) 9
Co., Ltd.
Fuqing Fuqun Electronic Hardware Tech Co., Indirect subsidiary Purchase 146,949 7 Note 1 - - (30,107) 4
Ltd.
Suzhou Fulfil Electronics Co., Ltd. Kunshan Fulfil Tech Co., Ltd. Indirect subsidiary Purchase 509,197 17 Note 1 - - (120,969) 19
Dongguan Khuan Huang Precise Mold Plastic Indirect subsidiary Purchase 145,246 5 Note 1 - - (33,159) 5
Co., Ltd.
Fuqing Fuqun Electronic Hardware Tech Co., Indirect subsidiary Purchase 198,957 7 Note 1 - - (39,992) 6
Ltd.
Chongqing Fulfil Tech Co., Ltd. Indirect subsidiary Purchase 100,400 3 Note 1 - - (18,789) 3
Fuzhou Fulfil Tech Co., Ltd. Fuqing Fuqun Electronic Hardware Tech Co., Indirect subsidiary Purchase 372,363 26 Note 1 - - (34,593) 10
Ltd.
Zhongshan Fulfil Tech. Co., Ltd. Syncmold Enterprise Corporation Parent company Sales (1,401,453) 55 Note 1 - - 540,297 59
Suzhou Fulfil Electronics Co., Ltd. Syncmold Enterprise Corporation Parent company Sales (1,213,277) 36 Note 1 - - 540,898 40
Fuzhou Fulfil Tech Co., Ltd. Syncmold Enterprise Corporation Parent company Sales (428,550) 25 Note 1 - - 161,864 18
Chongqing Fulfil Tech Co., Ltd. Syncmold Enterprise Corporation Parent company Sales (180,445) 31 Note 1 - - 43,813 22
Dongguan Khuan Huang Precise Zhongshan Fulfil Tech. Co., Ltd. Indirect subsidiary Sales (266,536) 48 Note 1 - - 60,302 49
Mold Plastic Co., Ltd.
Fuqing Fuqun Electronic Hardware Zhongshan Fulfil Tech. Co., Ltd. Indirect subsidiary Sales (146,949) 20 Note 1 - - 30,107 28
Tech Co., Ltd.
Kunshan Fulfil Tech Co., Ltd. Suzhou Fulfil Electronics Co., Ltd. Indirect subsidiary Sales (509,197) 100 Note 1 - - 120,969 99
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(Continued)

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Note 1: Payment terms are the same as the payment terms of non-related parties.

Note 2: All the transactions in the table above have been eliminated during the preparation of the consolidated financial statements.

(Concluded)

72 -

TABLE 5

SYNCMOLD ENTERPRISE CORPORATION AND SUBSIDIARIES

RECEIVABLES FROM RELATED PARTIES AMOUNTING TO AT LEAST NT$100 MILLION OR 20% OF THE PAID-IN CAPITAL DECEMBER 31, 2021

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

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Overdue Amount
Allowance for
Ending Balance Turnover Received in
Company Name Related Party Relationship Impairment
(Note) Rate Amount Actions Taken Subsequent
Loss
Period
Grand Advance Inc. Syncmold Enterprise Corporation Parent company $ 221,440 - $ - - $ 13,840 $ -
(Note 1)
Fuzhou Fulfil Tech Co., Ltd. Syncmold Enterprise Corporation Parent company 161,864 - - - 77,467 -
Zhongshan Fulfil Tech. Co., Ltd. Syncmold Enterprise Corporation Parent company 540,297 - - - 233,243 -
Suzhou Fulfil Electronics Co., Ltd. Syncmold Enterprise Corporation Parent company 540,898 - - - 405,243 -
Syncmold Enterprise Corporation Zhongshan Fulfil Tech. Co., Ltd. Subsidiary 100,668 - - - 100,668 -
Kunshan Fulfil Tech Co., Ltd. Suzhou Fulfil Electronics Co., Ltd. Indirect subsidiary 120,969 - - - 117,713 -
----- End of picture text -----

Note 1: Financing.

Note 2: All the transactions in the table above have been eliminated during the preparation of the consolidated financial statements.

73 -

TABLE 6

SYNCMOLD ENTERPRISE CORPORATION AND SUBSIDIARIES

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

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Original Investment Amount As of December 31, 2021 Net Income
Share of Profit
Investor Company Investee Company Location Main Businesses and Products December 31, December 31, Number of Carrying (Loss) of the Note
% (Loss)
2021 2020 Shares Amount Investee
Syncmold Enterprise Corporation Syncmold Enterprise (Samoa) Corp. Samoa Trading and related import and export businesses of metal $ 110,598 $ 110,598 3,546 100.00 $ 2,139,272 $ 31,538 $ 28,229 (Note 1)
molds and plastic molds as well as the reinvestment of
subsidiaries in mainland China
Grand Advance Inc. Samoa Trading, import and export and investment in electronic parts 506,240 506,240 - 100.00 2,741,122 21,392 21,897 (Note 1)
Syncmold Enterprise (USA) Corp. USA Trading, import and export in electronic parts 32 32 - 100.00 (2,787) (336) (336) (Note 1)
High Grade Tech Co., Ltd. Taiwan The design and sale of television hangers and related import 36,075 36,075 2,280 35.63 136,170 34,024 12,596 (Note 1)
and export businesses
Corebio Technologies Co., Ltd. Taiwan Medical technology and precision instrument wholesale and 52,000 52,000 5,200 38.29 20,730 (11,892) (4,554) (Note 1)
retail
Smart Automation Technology Inc. Taiwan Software design services 15,680 - 1,568 49.00 15,158 (3,211) (522) (Note 1)
Leohab Enterprise Co., Ltd. Taiwan Precision hardware components manufacturing 232,677 232,677 16,620 70.00 228,941 (9,410) (8,004) (Note 1)
Gatetech Technology Inc. Taiwan Precise molding and magnesium alloy die caster 556,063 553,815 42,432 73.82 626,258 (24,195) (19,240) (Note 1)
manufacturing and transaction business
Syncmold Enterprise Vietnam Co., Vietnam Trading, import and export and investment in electronic parts 579,944 302,444 - 100.00 500,521 (31,617) (31,617) (Note 1)
Ltd.
Syncmold Enterprise (MALAYSIA) Malaysia Trading, import and export in electronic parts, customer 7,192 3,639 - 100.00 2,154 (2,827) (2,827) (Note 1)
Sdn. Bhd. support and service center
Syncmold Enterprise (SINGAPORE) Singapore Trading, import and export in electronic parts, electronic 1,100 1,100 - 100.00 3,219 2,695 2,695 (Note 1)
Pte., Ltd. components and parts design
Syncmold Enterprise (THAILAND) Thailand Trading, import and export and investment in electronic parts 33,638 19,920 - 100.00 11,867 (14,564) (14,564) (Note 1)
Co., Ltd.
Grand Advance Inc. Canford International Limited Samoa Import and export trade and investment business 119,342 119,342 - 100.00 1,332,234 (75,797) (75,797) (Note 1)
Fullking Development Limited Hong Kong Import and export trade and investment business 160,175 160,175 - 100.00 852,117 156,541 156,521 (Note 1)
Full Glary Holding Limited Hong Kong Import and export trade and investment business 259,720 259,720 - 100.00 284,875 (26,891) (23,811) (Note 1)
Syncmold Enterprise (Samoa) Corp. Full Big Limited Samoa Reinvestment in subsidiaries in mainland China and 16,643 16,643 - 100.00 229,505 552 552 (Note 1)
international trade
Forever Business Development Samoa Reinvestment in subsidiaries in mainland China and 125,957 125,957 - 100.00 340,820 8,254 8,802 (Note 1)
Limited international trade
Full Celebration Limited Samoa Reinvestment in subsidiaries in mainland China and 147,710 147,710 - 100.00 188,539 (58,277) (58,277) (Note 1)
international trade
Gatetech Technology Inc. Gatech Holdings Ltd. Samoa General investment business 647,041 647,041 20,130 100.00 606,138 (16,090) (16,090) (Note 1)
Gatech Holdings Ltd. Gatech International Ltd. Samoa General investment business 657,284 657,284 20,268 100.00 606,138 (16,067) (16,067) (Note 1)
Leohab Enterprise Co., Ltd. Sweet International Group Ltd. British Virgin Islands General investment business 280,368 280,368 - 100.00 504,425 20,389 21,903 (Note 1)
Sweet International Group Ltd. Lucky King Holdings Ltd. Mauritius General investment business 280,368 280,368 - 100.00 498,209 19,441 20,389 (Note 1)
Lucky King Holdings Ltd. Commuwell Enterprise (Thailand) Thailand Plastic shot and hardware components manufacturing 113,236 113,236 - 100.00 187,799 34,802 34,802 (Note 1)
Co., Ltd.
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Note 1: Calculated based on the audited financial statements of the investee company and the Corporation’s shareholding ratio.

Note 2: Refer to Table 7 for related information on investees from mainland China.

Note 3: The profit and loss of investments between reinvested companies, investments accounted for using the equity method, and the equity of investee companies were all eliminated during the preparation of the consolidated financial statements, except for High Grade Tech Co., Ltd., Corebio Technology Co., Ltd. and Smart Automation Technology Inc.

74 -

TABLE 7

SYNCMOLD ENTERPRISE CORPORATION AND SUBSIDIARIES

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

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Accumulated Remittance of Funds Accumulated
Accumulated
Outward Outward
% Ownership of Carrying Amount Repatriation of
Remittance for Remittance for
Net Income (Loss) Direct or Investment as of Investment
Investee Company Main Businesses and Products Paid-in Capital Method of Investment Investment from Investment from
Outward Inward of the Investee Indirect Gain (Loss) December 31, Income as of
Taiwan as of Taiwan as of
Investment 2021 December 31,
December 31, December 31,
2021
2020 2021
Fuzhou Fulfil Tech Co., Ltd. Electronic parts processing and $ 42,074 Invested through $ 57,657 $ - $ - $ 57,657 $ 104,105 100.00 $ 104,105 $ 859,879 $ 2,188,492
manufacturing. Trading and Syncmold Enterprise (US$ 2,083 (US$ 2,083 (US$ 79,064
related import and export (Samoa) Corp. thousand) thousand) thousand)
business
Fujian Khuan Hua Precise Mold Processing, manufacturing, trading 107,732 Invested through 37,534 - - 37,534 (34,523) 100.00 (34,523) 278,022 -
Co., Ltd. and related import and export Syncmold Enterprise (US$ 1,356 (US$ 1,356
business of various metal molds, (Samoa) Corp. thousand) thousand)
plastic molds and plastic
injection molds
Fuqing Fuqun Electronic Hardware Electronic parts processing and 57,415 Invested through - - - - 3,858 100.00 3,858 160,390 107,897
Tech Co., Ltd. manufacturing. Trading and Syncmold Enterprise (US$ 3,898
related import and export (Samoa) Corp. thousand)
business
Dongguan Khuan Huang Precise Processing, manufacturing, trading 121,737 Invested through Forever - - - - 7,807 100.00 7,807 258,683 -
Mold Plastic Co., Ltd. and related import and export Business Development
business of various metal molds, Limited
plastic molds and plastic
injection molds
Suzhou Fulfil Electronics Co., Ltd. Electronic parts processing and 17,967 Invested through Canford - - - - (75,797) 100.00 (75,797) 1,332,217 1,179,998
manufacturing. Trading and International Limited (US$ 42,630
related import and export thousand)
business
Zhongshan Fulfil Tech. Co., Ltd. Electronic parts processing and 148,163 Invested through Fullking - - - - 156,540 100.00 156,540 914,832 1,441,104
manufacturing. Trading and Development Limited (US$ 52,063
related import and export thousand)
business
Kunshan Fulfil Tech Co., Ltd. Manufacturing and assembling of 227,517 Invested through Full 166,080 - - 166,080 (26,891) 100.00 (26,891) 283,363 -
laptops uses precise bearing, Glary Holding Limited (US$ 6,000 (US$ 6,000
hardware and related accessories thousand) thousand)
Chongqing Fulfil Tech Co., Ltd. The processing, manufacturing, 135,256 Invested through Full - - - - (58,277) 100.00 (58,277) 188,529 501,672
related imports and exports of all Celebration Limited (US$ 18,124
electronic, plastic and hardware thousand)
parts
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(Continued)

75 -

(Concluded)

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Note 1: Calculated based on the audited financial statements of the investee company and the Corporation’s shareholding ratio.

Note 2: The profit and loss of investments between reinvested companies, investments accounted for using the equity method, and the equity of investee companies were all eliminated during the preparation of the consolidated financial statements.

76 -

TABLE 8

SYNCMOLD ENTERPRISE CORPORATION AND SUBSIDIARIES

INTERCOMPANY RELATIONSHIPS AND SIGNIFICANT INTERCOMPANY TRANSACTIONS FOR THE YEAR ENDED DECEMBER 31, 2021

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

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Transaction Details % of Total
No. Relationship
Investee Company Counterparty Payment Terms Sales or Asset
(Note 1) (Note 2) Financial Statement Account Price
(Note 3)
0 Syncmold Enterprise Corporation Gatetech (Suzhou) Technology Co., Ltd. 1 Other income $ 19,785 Based on the contract between both parties -
Gatetech (Suzhou) Technology Co., Ltd. 1 Other receivables from related parties 10,400 Based on the contract between both parties -
1 Zhongshan Fulfil Tech. Co., Ltd. Syncmold Enterprise Corporation 2 Sale 1,401,453 No significant difference with non-related parties 14
Syncmold Enterprise Corporation 2 Trade receivables from related parties 540,297 No significant difference with non-related parties 5
2 Dongguan Khuan Huang Precision Mold Zhongshan Fulfil Tech. Co., Ltd. 3 Sale 266,536 No significant difference with non-related parties 3
Plastic Co., Ltd. Zhongshan Fulfil Tech. Co., Ltd. 3 Trade receivables from related parties 60,302 No significant difference with non-related parties 1
Fuzhou Fulfil Tech Co., Ltd. 3 Sale 90,419 No significant difference with non-related parties 1
Fuzhou Fulfil Tech Co., Ltd. 3 Trade receivables from related parties 17,078 No significant difference with non-related parties -
Suzhou Fulfil Electronics Co., Ltd. 3 Sale 145,246 No significant difference with non-related parties 1
Suzhou Fulfil Electronics Co., Ltd. 3 Trade receivables from related parties 33,159 No significant difference with non-related parties -
3 Fuzhou Fulfil Tech Co., Ltd. Syncmold Enterprise Corporation 2 Sale 428,550 No significant difference with non-related parties 4
Syncmold Enterprise Corporation 2 Trade receivables from related parties 161,864 No significant difference with non-related parties 1
4 Fuqing Fuqun Electronic Hardware Tech Fuzhou Fulfil Tech Co., Ltd. 3 Sale 372,363 No significant difference with non-related parties 4
Co., Ltd. Fuzhou Fulfil Tech Co., Ltd. 3 Trade receivables from related parties 34,593 No significant difference with non-related parties -
Suzhou Fulfil Electronics Co., Ltd. 3 Sale 198,957 No significant difference with non-related parties 2
Suzhou Fulfil Electronics Co., Ltd. 3 Trade receivables from related parties 39,992 No significant difference with non-related parties -
Zhongshan Fulfil Tech. Co., Ltd. 3 Sale 146,949 No significant difference with non-related parties 1
Zhongshan Fulfil Tech. Co., Ltd. 3 Trade receivables from related parties 30,107 No significant difference with non-related parties -
5 Grand Advance Inc. Syncmold Enterprise Corporation 2 Other receivables from related parties - 221,440 Based on the contract between both parties 2
financing
Fullking Development Limited 3 Other receivables from related parties - 41,520 Based on the contract between both parties -
financing
Syncmold Enterprise (USA) Corp. 3 Other receivables from related parties - 11,072 Based on the contract between both parties -
financing
6 Suzhou Fulfil Electronics Co., Ltd. Syncmold Enterprise Corporation 2 Sale 1,213,277 No significant difference with non-related parties 12
Syncmold Enterprise Corporation 2 Trade receivables from related parties 540,898 No significant difference with non-related parties 5
7 Full Big Limited Fullking Development Limited 3 Other receivables from related parties - 22,144 Based on the contract between both parties -
financing
8 Gatetech (Suzhou) Technology Co., Ltd. Gatetech Technology Inc. 3 Sale 72,576 No significant difference with non-related parties 1
Gatetech Technology Inc. 3 Trade receivables from related parties 49,744 No significant difference with non-related parties -
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(Continued)

77 -

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Transaction Details % of Total
No. Relationship
Investee Company Counterparty Payment Terms Sales or Asset
(Note 1) (Note 2) Financial Statement Account Price
(Note 3)
9 Kunshan Fulfil Tech Co., Ltd. Suzhou Fulfil Electronics Co., Ltd. 3 Sale $ 509,197 No significant difference with non-related parties 5
Suzhou Fulfil Electronics Co., Ltd. 3 Trade receivables from related parties 120,969 No significant difference with non-related parties 1
10 Chongqing Fulfil Tech Co., Ltd. Syncmold Enterprise Corporation 2 Sale 180,445 No significant difference with non-related parties 2
Syncmold Enterprise Corporation 2 Trade receivables from related parties 43,813 No significant difference with non-related parties -
Suzhou Fulfil Electronics Co., Ltd. 3 Sale 100,400 No significant difference with non-related parties 1
11 Syncmold Enterprise (Samoa) Corp. Fujian Khuan Hua Precise Mold Co., Ltd. 3 Other receivables from related parties - 43,617 Based on the contract between both parties -
dividend
Syncmold Enterprise Corporation 2 Other receivables from related parties - 41,520 Based on the contract between both parties -
financing
12 Fujian Khuan Hua Precise Mold Co., Ltd. Fuzhou Fulfil Tech Co., Ltd. 3 Sale 37,840 No significant difference with non-related parties -
Fuzhou Fulfil Tech Co., Ltd. 3 Trade receivables from related parties 21,370 No significant difference with non-related parties -
13 Suzhou Leoho Electronics Co., Ltd. Leohab Enterprise Co., Ltd. 3 Trade receivables from related parties 77,343 No significant difference with non-related parties 1
14 Leohab Enterprise Co., Ltd. Commuwell Enterprise (Thailand) Co., Ltd. 3 Sale 12,600 No significant difference with non-related parties -
----- End of picture text -----

Note 1: 0 represents the parent company and the subsidiaries are numbered from 1.

Note 2: 1 represents transactions from the parent company to the subsidiaries, 2 represents transactions from the subsidiaries to the parent company, and 3 represents transactions between the subsidiaries.

Note 3: The monetary amount of the transaction is calculated based on percentage of total sales or assets. If the account is an asset or a liability, the ratio is calculated using the ending balance. If the account is in the income statement, the ratio is calculated using cumulative amount during that period.

Note 4: The disclosure standard of the table above was 10% of the specified account and reached to $10,000 thousand.

Note 5: All the transactions in the table above have been eliminated during the preparation of the consolidated financial statements.

(Concluded)

78 -

TABLE 9

SYNCMOLD ENTERPRISE CORPORATION AND SUBSIDIARIES

INFORMATION ON MAJOR SHAREHOLDERS DECEMBER 31, 2021

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Shares
Name of Major Shareholder Number of Percentage of
Shares Ownership (%)
Chen Chiu-Lang 8,443,211 6.82
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Note 1: The information of major shareholders presented in this table is provided by the Taiwan Depository & Clearing Corporation based on the number of ordinary shares and preferred shares held by shareholders with ownership of 5% or greater, that have been issued without physical registration (including treasury shares) by the Company as of the last business day for the current quarter. The share capital in the consolidated financial statements may differ from the actual number of shares that have been issued without physical registration because of different preparation basis.
Note 2: If a shareholder delivers the shareholdings to the trust, the above information will be disclosed by the individual truster who opened the trust account. For shareholders who declare insider shareholdings with ownership greater than 10% in accordance with the Security and Exchange Act, the shareholdings include shares held by shareholders and those delivered to the trust over which shareholders have rights to determine the use of trust property. For information relating to insider shareholding declaration, please refer to Market Observation Post System.
79 -

AI assistant

SYNCMOLD — Annual Report 2021

51868_rns_2021-11-09_48bf18d7-cce2-4d2e-b7d6-9409dde9f590.pdf

Syncmold Enterprise Corporation and Subsidiaries

DECLARATION OF CONSOLIDATION OF FINANCIAL STATEMENTS OF AFFILIATES

INDEPENDENT AUDITORS’ REPORT

Opinion

Basis for Opinion

Key Audit Matters

Occurrence of Sales Revenue

Other Matter

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

Auditors’ Responsibilities for the Audit of the Consolidated Financial Statements

Notice to Readers

SYNCMOLD ENTERPRISE CORPORATION AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS DECEMBER 31, 2021 AND 2020

SYNCMOLD ENTERPRISE CORPORATION AND SUBSIDIARIES

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

SYNCMOLD ENTERPRISE CORPORATION AND SUBSIDIARIES

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

SYNCMOLD ENTERPRISE CORPORATION AND SUBSIDIARIES

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

SYNCMOLD ENTERPRISE CORPORATION AND SUBSIDIARIES

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

SYNCMOLD ENTERPRISE CORPORATION AND SUBSIDIARIES

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

SYNCMOLD ENTERPRISE CORPORATION AND SUBSIDIARIES

1. GENERAL INFORMATION

2. APPROVAL OF CONSOLIDATED FINANCIAL STATEMENTS

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

4. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

d. Basis of consolidation

e. Business combinations

f. Foreign currencies

g. Inventories

h. Investments in associates

k. Intangible assets

1) Intangible assets acquired separately

1) Financial assets

2) Equity instruments

3) Financial liabilities

a) Subsequent measurement

b) Derecognition of financial liabilities

4) Convertible bonds

n. Revenue recognition

1) Revenue from the sale of goods

2) Revenue from the rendering of services

3) Licensing revenue

o. Leasing

2) The Group as lessee

p. Borrowing costs

r. Employee benefits

1) Current tax

5. CRITICAL ACCOUNTING JUDGMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY

6. CASH AND CASH EQUIVALENTS

7. FINANCIAL INSTRUMENTS AT FAIR VALUE THROUGH PROFIT OR LOSS

8. FINANCIAL ASSETS AT AMORTIZED COST

9. TRADE RECEIVABLES, NET

December 31, 2021

10. INVENTORIES

11. SUBSIDIARIES

Subsidiaries Included in the Consolidated Financial Statements

12. INVESTMENTS ACCOUNTED FOR USING THE EQUITY METHOD

13. PROPERTY, PLANT AND EQUIPMENT

14. LEASE ARRANGEMENTS

a. Right-of-use assets

b. Lease liabilities

15. GOODWILL

16. INTANGIBLE ASSETS

17. BORROWINGS

a. Short-term borrowings

c. Long-term borrowings

18. BONDS PAYABLE

19. OTHER PAYABLES

20. RETIREMENT BENEFIT PLANS

a. Defined contribution plans

b. Defined benefit plans

21. EQUITY

Ordinary shares

b. Capital surplus

SYNCMOLD Annual Report 2021