SYNCMOLD - Interim / Quarterly Report 2022

Syncmold Enterprise Corporation and Subsidiaries

Consolidated Financial Statements for the Three Months Ended March 31, 2022 and 2021 and Independent Auditors’ Review Report

INDEPENDENT AUDITORS’ REVIEW REPORT

The Board of Directors and Shareholders Syncmold Enterprise Corporation

Introduction

We have reviewed the accompanying consolidated balance sheets of Syncmold Enterprise Corporation and its subsidiaries (collectively, the “Group”) as of March 31, 2022 and 2021, and the related consolidated statements of comprehensive income, the consolidated statements of changes in equity and cash flows for the three months then ended, and the related notes to the consolidated financial statements, including a summary of significant accounting policies (collectively referred to as the “consolidated financial statements”). Management is responsible for the preparation and fair presentation of the consolidated financial statements in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers, and International Accounting Standard 34 “Interim Financial Reporting” endorsed and issued into effect by the Financial Supervisory Commission of the Republic of China. Our responsibility is to express a conclusion on the consolidated financial statements based on our reviews.

Scope of Review

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

Basis for Qualified Conclusion

As disclosed in Note 11 to the consolidated financial statements, the financial statements of non-significant subsidiaries included in the consolidated financial statements referred to in the first paragraph were not reviewed. As of March 31, 2022 and 2021, the combined total assets of these non-significant subsidiaries were NT$4,279,523 thousand and NT$4,001,747 thousand, respectively, representing 34.53% and 33.40%, respectively, of the consolidated total assets, and the combined total liabilities of these subsidiaries were NT$1,748,472 thousand and NT$1,535,362 thousand, respectively, representing 28.44% and 27.17%, respectively, of the consolidated total liabilities; for the three months ended March 31, 2022 and 2021, the amounts of combined comprehensive income of these subsidiaries were NT$(7,735) thousand and NT$26,726 thousand, respectively, representing (2.88%) and 29.53%, respectively, of the consolidated total comprehensive income. In addition, as disclosed in Note 12 to the consolidated financial statements, the amounts of investments accounted for using the equity method as of March 31, 2022 and 2021 were NT$177,569 thousand and NT$166,399 thousand, respectively; for the three months ended March 31, 2022 and 2021, the share of profit of associates of NT$5,511 thousand and NT$1,843 thousand, respectively, was calculated based on financial statements which have not been reviewed.

The disclosure information in Note 30 about the aforementioned non-significant subsidiaries and associates was based on the unreviewed financial statements of the subsidiaries and associates for the same reporting periods as those of the Group.

Qualified Conclusion

Based on our reviews, except for adjustments, if any, as might have been determined to be necessary had the financial statements of the non-significant subsidiaries and associates accounted for using the equity method as described in the preceding paragraph been reviewed, nothing has come to our attention that caused us to believe that the accompanying consolidated financial statements do not present fairly, in all material respects, the consolidated financial position of the Group as of March 31, 2022 and 2021, and of its consolidated financial performance and its consolidated cash flows for the three months ended March 31, 2022 and 2021 in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers, and International Accounting Standard 34 “Interim Financial Reporting” endorsed and issued into effect by the Financial Supervisory Commission of the Republic of China.

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

Deloitte & Touche Taipei, Taiwan Republic of China

May 5, 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 review such consolidated financial statements are those generally applied in the Republic of China.

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

SYNCMOLD ENTERPRISE CORPORATION AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(In Thousands of New Taiwan Dollars)

ASSETS CURRENT ASSETS Cash and cash equivalents (Note 6) Financial assets at fair value through profit or loss - current (Note 7) Financial assets at amortized cost - current (Notes 8 and 27) Notes receivable Trade receivables, net (Note 9) Inventories (Note 10) Other current assets Total current assets NON-CURRENT ASSETS Financial assets at fair value through profit or loss - non-current (Notes 7 and 18) Financial assets at amortized cost - non-current (Note 8) Investments accounted for using the equity method (Note 12) Property, plant and equipment (Notes 13 and 27) Right-of-use assets (Notes 14 and 26) Intangible assets (Note 16) Goodwill (Note 15) Deferred tax assets (Notes 4 and 23) Prepayments for 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 17 and 27) Financial liabilities at fair value through profit or loss - current (Note 7) Notes payable and trade payables Other payables (Note 19) Current tax liabilities (Note 23) Lease liabilities - current (Notes 14 and 26) Current portion of long-term borrowings (Notes 17 and 27) Other current liabilities Total current liabilities NON-CURRENT LIABILITIES Bonds payable (Note 18) Long-term borrowings (Notes 17 and 27) Deferred tax liabilities (Note 23) Lease liabilities - non-current (Notes 14 and 26) Net defined benefit liabilities (Notes 4 and 20) Guarantee deposits received Other non-current liabilities 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) on 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		March 31, 2022 (Reviewed) Amount % $ 2,229,900 18 150,781 1 260,865 2 377,705 3 3,669,101 30 1,368,736 11 455,708 4 8,512,796 69 63,000 1 496 - 177,569 1 2,262,460 18 769,357 6 56,885 1 324,597 3 123,564 1 53,926 - 44,130 - 2,898 - 1,114 - 3,879,996 31 $ 12,392,792 100 $ 905,432 7 - - 2,470,751 20 417,438 3 178,271 2 204,043 2 16,555 - 20,046 - 4,212,536 34 1,169,344 9 190,043 2 179,110 2 369,655 3 10,129 - 1,226 - 15,132 - 1,934,639 16 6,147,175 50 1,237,242 10 2,769,360 23 1,001,175 8 635,615 5 731,832 6 2,368,622 19 (467,360) (4) 8,785 - (458,575) (4) 5,916,649 48 328,968 2 6,245,617 50 $ 12,392,792 100		December 31, 2021 (Audited) 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		March 31, 2021 (Reviewed)
						Amount % $ 2,611,471 22 281,406 2 540,060 4 372,637 3 3,110,349 26 1,259,407 11 428,505 4 8,603,835 72 69,949 1 - - 166,399 1 1,885,616 16 620,756 5 33,973 - 324,597 3 86,530 1 137,604 1 41,999 - 2,638 - 8,355 - 3,378,416 28 $ 11,982,251 100 $ 1,876,528 16 2,444 - 2,167,863 18 508,777 4 161,440 1 170,530 2 16,162 - 17,322 - 4,921,066 41 - - 108,170 1 339,329 3 242,075 2 20,763 - 1,389 - 17,127 - 728,853 6 5,649,919 47 1,237,242 10 2,592,857 22 904,665 8 634,020 5 1,292,169 11 2,830,854 24 (672,198) (6) 4,447 - (667,751) (6) 5,993,202 50 339,130 3 6,332,332 53 $ 11,982,251 100

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

(With Deloitte & Touche auditors’ review report dated May 5, 2022)

SYNCMOLD ENTERPRISE CORPORATION AND SUBSIDIARIES

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

OPERATING REVENUE OPERATING COSTS (Notes 10 and 22) GROSS PROFIT OPERATING EXPENSES (Notes 9 and 22) Selling and marketing expenses General and administrative expenses Research and development expenses Expected credit loss Total operating expenses PROFIT FROM OPERATIONS NON-OPERATING INCOME AND EXPENSES Other income (Note 14) Other gains and losses (Note 28) Interest income Net foreign exchange gain (Note 29) Net gain on financial assets at fair value through profit or loss (Note 7) Share of profit of associates (Note 12) Interest expenses (Note 26) Total non-operating income and expenses PROFIT BEFORE INCOME TAX FROM OPERATIONS INCOME TAX EXPENSE (Notes 4 and 23) NET PROFIT FOR THE PERIOD		For the Three Months	For the Three Months	Ended March 31
		2022 Amount % $ 2,765,060 100 2,398,165 87 366,895 13 83,336 3 185,089 6 46,966 2 8 - 315,399 11 51,496 2 5,347 - (2,450) - 3,953 - 7,917 - 1,165 - 8,097 - (12,006) - 12,023 - 63,519 2 35,172 1 28,347 1		2021
				Amount % $ 2,293,991 100 1,827,316 80 466,675 20 68,107 3 184,147 8 47,551 2 539 - 300,344 13 166,331 7 2,840 - (17,124) (1) 9,812 1 2,433 - 45,121 2 389 - (8,181) - 35,290 2 201,621 9 76,588 4 125,033 5 (Continued)

SYNCMOLD ENTERPRISE CORPORATION AND SUBSIDIARIES

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

OTHER COMPREHENSIVE INCOME (LOSS) Items that will not be reclassified subsequently to profit or loss: Share of other comprehensive income of subsidiaries accounted for using the equity method 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 period, net of income tax TOTAL COMPREHENSIVE INCOME FOR THE PERIOD NET PROFIT (LOSS) ATTRIBUTABLE TO: Owners of the Corporation Non-controlling interests TOTAL COMPREHENSIVE INCOME (LOSS) ATTRIBUTABLE TO: Owners of the Corporation Non-controlling interests EARNINGS PER SHARE (Note 24) Basic Diluted		For the Three Months	For the Three Months	Ended March 31
		2022 Amount % $ (2,586) - 242,555 9 239,969 9 $ 268,316 10 $ 30,921 1 (2,574) - $ 28,347 1 $ 259,536 10 8,780 - $ 268,316 10 $ 0.25 $ 0.24		2021
				Amount % $ 1,454 - (35,990) (1) (34,536) (1) $ 90,497 4 $ 126,115 5 (1,082) - $ 125,033 5 $ 94,505 4 (4,008) - $ 90,497 4 $ 1.02 $ 1.01

		$		$
		$		$
		$		$
		$		$
		$		$

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

(With Deloitte & Touche auditors’ review report dated May 5, 2022)

(Concluded)

SYNCMOLD ENTERPRISE CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (In Thousands of New Taiwan Dollars)

(Reviewed, Net Audited)

	Equity Attributable to Owners of the Corporation (Note 21)	Equity Attributable to Owners of the Corporation (Note 21)	Equity Attributable to Owners of the Corporation (Note 21)
Ordinary Shares Capital Surplus $ 1,237,242 $ 2,592,857 - - - - - - - - $ 1,237,242 $ 2,592,857 $ 1,237,242 $ 2,769,331 - 29 - - - - - - $ 1,237,242 $ 2,769,360	Retained Earnings	Total $ 2,704,213 126,115 - 126,115 526 $ 2,830,854 $ 2,337,701 - 30,921 - 30,921 $ 2,368,622	Other Equity	Total $ (635,615) - (31,610) (31,610) (526) $ (667,751) $ (687,190) - - 228,615 228,615 $ (458,575)
			Exchange Differences on Translating the Financial Statements of Unrealized Gain (Loss) on Financial Assets at Fair Value Through Other Foreign Operations Comprehensive Income $ (639,134) $ 3,519 - - (33,064) 1,454 (33,064) 1,454 - (526) $ (672,198) $ 4,447 $ (698,561) $ 11,371 - - - - 231,201 (2,586) 231,201 (2,586) $ (467,360) $ 8,785
	Legal Reserve Special Reserve Unappropriated Earnings $ 904,665 $ 634,020 $ 1,165,528 - - 126,115 - - - - - 126,115 - - 526 $ 904,665 $ 634,020 $ 1,292,169 $ 1,001,175 $ 635,615 $ 700,911 - - - - - 30,921 - - - - - 30,921 $ 1,001,175 $ 635,615 $ 731,832

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

(With Deloitte & Touche auditors’ review report dated May 5, 2022)

SYNCMOLD ENTERPRISE CORPORATION AND SUBSIDIARIES

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

CASH FLOWS FROM OPERATING ACTIVITIES Profit before income tax Adjustments for: Depreciation expenses Amortization expenses Expected credit loss Net gain on financial assets at fair value through profit or loss Interest expenses Interest income Share of profit of associates Loss (gain) on disposal of property, plant and equipment Loss on disposal of intangible assets Write-downs of inventories Net gain on unrealized foreign currency exchange Impairment loss on property, plant and equipment Gain on lease modification Changes in operating assets and liabilities Notes receivable Trade receivables Inventories Other 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 Proceeds from sale of financial assets at amortized cost Purchase of financial assets at fair value through profit or loss Proceeds from sale of financial assets at fair value through profit or loss Payments for property, plant and equipment Proceeds from disposal of property, plant and equipment Increase in refundable deposits Payments for intangible assets		For the Three Months Ended March 31	For the Three Months Ended March 31
		2022 $ 63,519 113,579 5,824 8 (1,165) 12,006 (3,953) (8,097) 739 29 28,025 (18,314) - - (6,755) (37,922) (64,141) 9,947 116,841 (5,113) 13,506 (1,547) 225 217,241 (12,003) (35,172) 170,066 88,153 (330,578) 332,620 (79,886) 348 (1,198) (8,104)	2021 $ 201,621 94,605 4,572 539 (45,121) 8,181 (9,812) (389) (1,615) - 20,445 (38,700) 573 (9) 20,971 578,399 (309,531) 3,493 (43,655) 7,063 292 (71) (1,998) 489,853 (7,250) (99,362) 383,241 65,767 (109,415) 251,629 (255,642) 10,047 (4,715) (4,095) (Continued)

SYNCMOLD ENTERPRISE CORPORATION AND SUBSIDIARIES

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

Decrease (increase) in non-current assets Increase in prepayments for equipment Interest received Net cash used in investing activities CASH FLOWS FROM FINANCING ACTIVITIES Proceeds from short-term borrowings Decrease in short-term bills payable Proceeds from long-term borrowings Repayments of long-term borrowings Proceeds from guarantee deposits received Refunds of guarantee deposits received Repayment of the principal portion of lease liabilities Net cash used in financing activities EFFECTS OF EXCHANGE RATE CHANGES ON THE BALANCE OF CASH AND CASH EQUIVALENTS HELD IN FOREIGN CURRENCIES NET INCREASE IN CASH AND CASH EQUIVALENTS CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE PERIOD CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD		For the Three Months Ended March 31	For the Three Months Ended March 31
		2022 $ 124 (9,872) 3,953 (4,440) 9,571 - - (4,132) - (220) (55,390) (50,171) 54,908 170,363 2,059,537 $ 2,229,900	2021 $ (3,825) (85,817) 9,812 (126,254) 3,183 (29,981) 51,196 - 80 - (65,537) (41,059) (25,264) 190,664 2,420,807 $ 2,611,471

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

(With Deloitte & Touche auditors’ review report dated May 5, 2022)

(Concluded)

SYNCMOLD ENTERPRISE CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS FOR THE THREE MONTHS ENDED MARCH 31, 2022 AND 2021 (In Thousands of New Taiwan Dollars, Unless Stated Otherwise) (Reviewed, Not Audited)

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 market (OTC) on January 11, 2007. In November 2009, the Corporation obtained approval to transfer listing of to the Taiwan Stock Exchange (TWSE) and they 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 FINANCIAL STATEMENTS

The consolidated financial statements were approved by Corporation’s board of directors on May 5, 2022.

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

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

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

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

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Effective Date
New IFRSs Announced by IASB (Note 1)
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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)
	(Continued)

New IFRSs

Effective Date Announced by IASB (Note 1)

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”

(Concluded)

Note 1: Unless stated otherwise, the above New IFRSs are effective for annual reporting periods beginning on or after their respective effective dates.
Note 2: The amendments will be applied prospectively for annual reporting periods beginning on or after January 1, 2023.
Note 3: The amendments are applicable to changes in accounting estimates and changes in accounting policies that occur on or after the beginning of the annual reporting period beginning on or after January 1, 2023.
Note 4: Except for deferred taxes that are recognized on January 1, 2022 for temporary differences associated with leases and decommissioning obligations, the amendments are applied prospectively to transactions that occur on or after January 1, 2022.

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

4. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

a. Statement of compliance

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

b. Basis of preparation

The consolidated financial statements have been prepared on the historical cost basis except for financial instruments which are measured at fair value and net defined benefit liabilities (assets) 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 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 the asset or liability.
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c. Basis of consolidation

The consolidated financial statements incorporate the financial statements of the Corporation and the entities controlled by the Corporation (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 Corporation.

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

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

d. Other significant accounting policies

Except for the following, refer to the consolidated financial statements for the year ended December 31, 2021.

1) Retirement benefits

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

2) Taxation

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

5. CRITICAL ACCOUNTING JUDGMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY

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

The 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.

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6. CASH AND CASH EQUIVALENTS

7.	March 31, 2022 December 31, 2021 Cash on hand $ 2,701 $ 2,067 Checking accounts and demand deposits 2,124,149 1,944,790 Cash equivalents (with original maturities within 3 months) Time deposits 103,050 112,680 $ 2,229,900 $ 2,059,537 FINANCIAL ASSETS AT FAIR VALUE THROUGH PROFIT OR LOSS March 31, 2022 December 31, 2021 Financial assets at fair value through profit or loss (FVTPL)-current Financial assets mandatorily classified as at FVTPL Derivative financial assets Foreign exchange forward contracts (a) $ 1,030 $ 4 Non-derivative financial assets Domestic listed shares 81,898 81,379 Hybrid financial assets Structured deposits (b) 67,853 65,370 $ 150,781 $ 146,753 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) $ 360 $ 360 Non-derivative financial assets Domestic emerging market shares 16,655 17,528 Overseas unlisted shares 36,692 38,508 Private funds 9,293 9,034 $ 63,000 $ 65,430 Financial liabilities at fair value through profit or loss (FVTPL)-current Financial assets mandatorily classified as at FVTPL Derivative financial assets Foreign exchange forward contracts (a) $ - $ 41	March 31, 2021 $ 2,704 2,239,073 369,694 $ 2,611,471 March 31, 2021 $ 2,189 214,054 65,163 $ 281,406 $ - 17,491 49,965 2,493 $ 69,949 $ 2,444

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

March 31, 2022

			Notional Amount
	Currency	Maturity Date	(In Thousands)
Sell	US$/RMB	2022.07	US$1,000/RMB6,460
Sell	US$/RMB	2022.07	US$1,000/RMB6,470
Sell	US$/RMB	2022.08	US$1,000/RMB6,452
Sell	US$/RMB	2022.08	US$1,000/RMB6,413
Sell	US$/RMB	2022.08	US$1,000/RMB6,418
December 31, 2021
			Notional Amount
	Currency	Maturity Date	(In Thousands)
Sell	US$/RMB	2022.07	US$1,000/RMB6,460
Sell	US$/RMB	2022.07	US$1,000/RMB6,470
March 31, 2021
			Notional Amount
	Currency	Maturity Date	(In Thousands)
Sell	US$/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$1,000/RMB6,597
Sell	US$/RMB	2021.07	US$1,000/RMB6,522
Sell	US$/RMB	2021.07	US$1,000/RMB6,537
Sell	US$/RMB	2021.07	US$1,000/RMB6,539
Sell	US$/RMB	2021.08	US$1,000/RMB6,553
Sell	US$/RMB	2021.08	US$1,000/RMB6,561
Sell	US$/RMB	2021.08	US$1,000/RMB6,562
Sell	US$/RMB	2021.09	US$1,000/RMB6,600

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 1-6 month structured time deposit contracts with bank for the three months ended March 31, 2022 and 2021. 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.
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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 a year	March 31, 2022 December 31, 2021 $ 259,071 $ 336,972 1,794 1,728 - - $ 260,865 $ 338,700 $ 496 $ 480	March 31, 2021 $ 537,617 1,893 550 $ 540,060 $ -

See Note 27 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	March 31, 2022 December 31, 2021 $ 3,674,389 $ 3,421,964 (5,288) (5,071) $ 3,669,101 $ 3,416,893	March 31, 2021 $ 3,121,662 (11,313) $ 3,110,349

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.

The Group applies the simplified approach to providing for expected credit losses prescribed, 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.

14 -

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

March 31, 2022

Not Past Due Expected credit loss rate - Gross carrying amount $ 3,620,842 Loss allowance (Lifetime ECLs) - Amortized cost $ 3,620,842 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 March 31, 2021 Not Past Due Expected credit loss rate - Gross carrying amount $ 3,048,263 Loss allowance (Lifetime ECLs) - Amortized cost $ 3,048,263	Less than 30 Days 31 to 90 Days 1.53% 4.83% $ 17,984 $ 31,872 (276) (1,540) $ 17,708 $ 30,332 Less than 30 Days 31 to 90 Days 2.86% 3.74% $ 30,590 $ 9,039 (876) (338) $ 29,714 $ 8,701 Less than 30 Days 31 to 90 Days 3.81% 18.04% $ 24,391 $ 46,382 (930) (8,365) $ 23,461 $ 38,017	91 to 180 Days 49.19% $ 431 (212) $ 219 91 to 180 Days 46.27% $ 3,674 (1,700) $ 1,974 91 to 180 Days 42.86% $ 1,064 (456) $ 608	Over 180 Days 100% $ 3,260 (3,260) $ - Over 180 Days 100% $ 2,157 (2,157) $ - Over 180 Days 100% $ 1,562 (1,562) $ -	Total $ 3,674,389 (5,288) $ 3,669,101 Total $ 3,421,964 (5,071) $ 3,416,893 Total $ 3,121,662 (11,313) $ 3,110,349

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

Balance at January 1 Add: Net remeasurement of loss allowance Foreign exchange gains and losses Balance at March 31	For the Three Months Ended March 31	For the Three Months Ended March 31	For the Three Months Ended March 31
		2022 $ 5,071 8 209 $ 5,288	2021 $ 10,876 539 (102) $ 11,313

15 -

10. INVENTORIES

Finished goods Work in progress Raw materials	March 31, 2022 December 31, 2021 $ 465,688 $ 476,793 341,938 309,137 561,110 499,211 $ 1,368,736 $ 1,285,141	March 31, 2021 $ 404,928 340,502 513,977 $ 1,259,407

The cost of goods sold for the three months ended March 31, 2022 and 2021 included inventory write-downs of $28,025 thousand and $20,445 thousand, respectively.

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
business.
Fullking Development
Limited
Import and export trade and investment
business.
Full Glary Holding
Limited
Import and export trade and investment
business.
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 and
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 and
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

Proportion of Ownership (%)
March 31,
2022
December 31,
2021
March 31,
2021
Note
100.00
100.00
100.00
Note 1
100.00
100.00
100.00
Note 1
100.00
100.00
100.00
Note 2
73.82
73.82
73.43
Notes 1
and 3
100.00
100.00
100.00
Note 2
100.00
100.00
100.00
Note 2
100.00
100.00
100.00
Note 2
100.00
100.00
100.00
Note 2
70.00
70.00
70.00
Note 2
100.00
100.00
100.00
Note 2
100.00
100.00
100.00
Note 2
100.00
100.00
100.00
Note 2
100.00
100.00
100.00
Note 2
100.00
100.00
100.00
Note 2
100.00
100.00
100.00
Note 2
100.00
100.00
100.00
Note 1
100.00
100.00
100.00
Note 2
100.00
100.00
100.00
Note 2
100.00
100.00
100.00
Note 2
100.00
100.00
100.00
Note 2
(Continued)

16 -

Investor
Investee
Nature of Activities
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 and
manufacturing, trading and related import
and export business.
Fullking
Development
Limited
Zhongshan Fulfil Tech.
Co., Ltd.
Electronic parts processing and
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 (%)
March 31,
2022
December 31,
2021
March 31,
2021
Note
100.00
100.00
100.00
Note 2
100.00
100.00
100.00
Note 1
100.00
100.00
100.00
Note 1
100.00
100.00
100.00
Note 2
100.00
100.00
100.00
Note 2
100.00
100.00
100.00
Note 2
100.00
100.00
100.00
Note 2
100.00
100.00
100.00
Note 2
100.00
100.00
100.00
Note 2
100.00
100.00
100.00
Note 2

(Concluded)

Note 1: Its financial statements for the three months ended March 31, 2022 and 2021 have been reviewed.

Note 2: As the subsidiary is not a major subsidiary, its financial statements for the three months ended March 31, 2022 and 2021 have not been reviewed.
Note 3: On December 15, 2021, the Corporation acquired additional 0.39% ownerships in Gatetech Technology Inc. for a cash consideration of $2,248 thousand.

12. INVESTMENTS ACCOUNTED FOR USING THE EQUITY METHOD

Associates that are not individually material Unlisted company High Grade Tech Co., Ltd. Corebio technologies Co., Ltd. Smart Automation Technology Inc. (Note)	March 31, 2022 December 31, 2021 $ 143,678 $ 136,170 19,835 20,730 14,056 15,158 $ 177,569 $ 172,058	March 31, 2021 $ 132,523 33,876 - $ 166,399

Note: 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%.

Investments were accounted for using the equity method and the share of profit or loss for the three months ended March 31, 2022 and 2021 was calculated based on financial statements which have not been reviewed.

17 -

13. PROPERTY, PLANT AND EQUIPMENT

Cost Balance at January 1, 2022 Additions Transfer from prepayments for equipment Disposals Reclassifications Effect of foreign currency exchange differences Balance at March 31, 2022 Accumulated depreciation and impairment Balance at January 1, 2022 Depreciation expense Disposals Reclassifications Effect of foreign currency exchange differences Balance at March 31, 2022 Carrying amount at March 31, 2022 Cost Balance at January 1, 2021 Additions Disposals Transfer from prepayments for equipment Reclassifications Effect of foreign currency exchange differences Balance at March 31, 2021 Accumulated depreciation and impairment Balance at January 1, 2021 Depreciation expense Disposals Impairment losses recognized Reclassifications Effect of foreign currency exchange differences Balance at March 31, 2021 Carrying amount at March 31, 2021	Freehold Land $ 770,538 - - - - 141 $ 770,679 $ - - - - - $ - $ 770,679 $ 714,292 45,441 - 11,404 - (203) $ 770,934 $ - - - - - - $ - $ 770,934	Buildings $ 924,441 4,378 495 (4,973 ) (1,172 ) 22,079 $ 945,248 $ 483,380 18,233 (4,973 ) (122 ) 14,539 $ 511,057 $ 434,191 $ 883,285 24,089 (9,782 ) 4,196 (215 ) (14,591) $ 886,982 $ 444,043 18,549 (9,782 ) - (202 ) (8,818) $ 443,790 $ 443,192	Equipment Transportation Equipment $ 1,581,096 $ 41,549 22,780 423 48,116 - (15,981 ) (513 ) 570 - 54,291 1,328 $ 1,690,872 $ 42,787 $ 1,045,195 $ 28,462 26,541 1,000 (15,651 ) (461 ) (207 ) 16 33,530 927 $ 1,089,408 $ 29,944 $ 601,464 $ 12,843 $ 1,497,074 $ 41,069 57,311 259 (23,938 ) - - - (4,786 ) 17 (36,847) (1,273) $ 1,488,814 $ 40,072 $ 1,056,696 $ 24,956 20,740 1,005 (15,849 ) - 342 - (2,330 ) 199 (29,174) 391 $ 1,030,425 $ 26,551 $ 458,389 $ 13,521	Office Equipment $ 63,002 584 - (345 ) - 1,753 $ 64,994 $ 36,460 2,153 (235 ) - 1,162 $ 39,540 $ 25,454 $ 50,318 5,059 (1,311 ) - 52 (200) $ 53,918 $ 32,117 1,812 (1,230 ) - 46 896 $ 33,641 $ 20,277	Other Equipment Property Under Construction $ 212,698 $ 268,260 3,441 48,280 259 - (5,034 ) - - - 6,491 9,734 $ 217,855 $ 326,274 $ 118,878 $ - 8,300 - (4,439 ) - - - 3,561 - $ 126,300 $ - $ 91,555 $ 326,274 $ 250,313 $ - 3,770 119,713 (2,022 ) - - - 3,380 (3,341 ) (9,731) (3,149) $ 245,710 $ 113,223 $ 192,522 $ - 4,532 - (1,760 ) - 231 - 1,645 - (17,540) - $ 179,630 $ - $ 66,080 $ 113,223	Total $ 3,861,584 79,886 48,870 (26,846 ) (602 ) 95,817 $ 4,058,709 $ 1,712,375 56,227 (25,759 ) (313 ) 53,719 $ 1,796,249 $ 2,262,460 $ 3,436,351 255,642 (37,053 ) 15,600 (4,893 ) (65,994) $ 3,599,653 $ 1,750,334 46,638 (28,621 ) 573 (642 ) (54,245) $ 1,714,037 $ 1,885,616

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

Building
Main building	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 27 for detailed information on property, plant and equipment pledged as collateral.

18 -

14. LEASE ARRANGEMENTS

a. Right-of-use assets

March 31, 2022 Carrying amount Lands $ 181,087 Buildings 586,468 Transportation equipment 1,802 $ 769,357 Additions to right-of-use assets 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, 2021 March 31, 2021 $ 178,078 $ 174,723 564,917 444,132 1,017 1,901 $ 744,012 $ 620,756 For the Three Months Ended March 31	December 31, 2021 March 31, 2021 $ 178,078 $ 174,723 564,917 444,132 1,017 1,901 $ 744,012 $ 620,756 For the Three Months Ended March 31	December 31, 2021 March 31, 2021 $ 178,078 $ 174,723 564,917 444,132 1,017 1,901 $ 744,012 $ 620,756 For the Three Months Ended March 31
		2022 $ 57,080 $ 1,204 55,861 287 $ 57,352 $ (144)	2021 $ 177,138 $ 901 46,776 290 $ 47,967 $ -

Except for the additions, recognized depreciation and subleasing the Group did not have any significant impairment of right-of-use assets during the three months ended March 31, 2022 and 2021.

b. Lease liabilities

	March 31,	December 31,	March 31,
	2022	2021	2021
Carrying amount
Current	$ 204,043	$ 182,430	$ 170,530
Non-current	$ 369,655	$ 368,731	$ 242,075
Range of discount rate for lease liabilities was as follows:
	March 31,	December 31,	March 31,
	2022	2021	2021
Buildings	0.94%-4.90%	0.94%-4.90%	0.94%-4.90%
Transportation equipment	0.94%-4.55%	0.94%-4.55%	0.94%-4.55%

c. Subleases

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.

19 -

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

March 31, 2022 Year 1 $ 409 d. Other lease information Expenses relating to short-term leases Total cash outflow for leases	December 31, 2021 March 31, 2021 $ 357 $ - For the Three Months Ended March 31	December 31, 2021 March 31, 2021 $ 357 $ - For the Three Months Ended March 31	December 31, 2021 March 31, 2021 $ 357 $ - For the Three Months Ended March 31
		2022 $ 5,459 $ (67,381)	2021 $ 8,539 $ (77,774)

The Group leases certain building 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

Cost Balance at January 1 Balance at end of period Accumulated impairment losses Balance at January 1 Balance at end of period Carrying amount at end of period INTANGIBLE ASSETS Trademarks Computer software Patents	March 31, 2022 December 31, 2021 $ 366,777 $ 366,777 $ 366,777 $ 366,777 $ 42,180 $ 42,180 $ 42,180 $ 42,180 $ 324,597 $ 324,597 March 31, 2022 December 31, 2021 $ 46 $ 49 56,064 52,104 775 827 $ 56,885 $ 52,980	March 31, 2021 $ 366,777 $ 366,777 $ 42,180 $ 42,180 $ 324,597 March 31, 2021 $ 61 31,785 2,127 $ 33,973

16. INTANGIBLE ASSETS

20 -

Except for the recognized amortization, the Group did not have any significant additions, disposals or impairment of intangible assets during the three months ended March 31, 2022 and 2021. The above items of intangible assets are amortized on a straight-line basis over their estimated useful lives as follows:

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

17. BORROWINGS

a. Short-term borrowings

Secured borrowings(Note 27) Mortgage loans Unsecured borrowings Line of credit borrowings	March 31, 2022 December 31, 2021 $ 400,432 $ 400,836 505,000 495,000 $ 905,432 $ 895,836	March 31, 2021 $ 479,804 1,396,724 $ 1,876,528

The weighted average effective interest rates on bank loans was 0.61%-3.75%, 0.61%-3.75% and 0.67%-3.75%, on March 31, 2022, December 31, 2021 and March 31, 2021, respectively.

b. Long-term borrowings

Secured borrowings(Note 27) Mortgage loans Unsecured borrowings Line of credit borrowings Less: Current portions	March 31, 2022 December 31, 2021 $ 206,598 $ 210,730 - - 206,598 210,730 (16,555) (16,545) $ 190,043 $ 194,185	March 31, 2021 $ 113,423 10,909 124,332 (16,162) $ 108,170

The effective interest rate on long-term borrowings was 0.9%-1%, 0.9%-1% and 1%-1.745%, on March 31, 2022, December 31, 2021 and March 31, 2021, respectively.

21 -

18. BONDS PAYABLE

Domestic third unsecured convertible bonds	March 31, 2022 December 31, 2021 $ 1,169,344 $ 1,166,288	March 31, 2021 $ -

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 March 31, 2022.

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.

The convertible bonds contain both liability and equity components: The equity components are 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 instruments were assessed at fair value of NT$360 thousand and NT$360 thousand (included in financial assets - non-current which were measured at fair value through profit or loss); non-derivative product liabilities of NT$1,169,344 thousand and NT$1,166,288 thousand (included in bonds payable) were measured at amortized cost on March 31, 2022 and December 31, 2021, respectively, and its effective interest rate which was originally recognized was 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
Interest charged at an effective interest rate of 1.0663%

Liability component on March 31, 2022

$ 1,337,453

(175,396)
1,162,057

3,871
1,165,928

3,056
$ 1,168,984

As of March 31, 2022, the third unsecured convertible bonds have no conversion.

22 -

19. OTHER PAYABLES

Current Other payables Payables for salaries or bonuses Others	March 31, 2022 December 31, 2021 $ 191,693 $ 201,376 225,745 204,369 $ 417,438 $ 405,745	March 31, 2021 $ 263,372 245,405 $ 508,777

20. RETIREMENT BENEFIT PLANS

For the three months ended March 31, 2022 and 2021, the pension expenses of defined benefit plans were $109 thousand and $116 thousand, respectively, and these were calculated based on the actuarially determined pension cost rate on December 31, 2021 and 2020, respectively.

21. EQUITY

a. Share capital

Ordinary shares

Number of shares authorized (in thousands) Amount of shares authorized Number of shares issued and fully paid (in thousands) Amount of shares issued	March 31, 2022 December 31, 2021 200,000 200,000 $ 2,000,000 $ 2,000,000 123,724 123,724 $ 1,237,242 $ 1,237,242	March 31, 2021 200,000 $ 2,000,000 123,724 $ 1,237,242

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

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

23 -

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	March 31, 2022 December 31, 2021 $ 1,184,809 $ 1,184,809 413,526 413,526 852,372 852,372 107 78 143,150 143,150 175,396 175,396 $ 2,769,360 $ 2,769,331	March 31, 2021 $ 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-b.

24 -

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 ratio every year and submit it to the shareholder’ meeting for approval. For the distribution of bonuses to shareholders, cash dividends are preferred. Distribution of earnings may also be made in the form of share dividends provided that the ratio of cash dividends distributed is 5% to 100% of the total dividends distributed.

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 2021 and 2020 which were approved in board of directors’ meeting on March 15, 2022 and the shareholders’ meeting on July 30, 2021, respectively, were as follows:

Legal reserve Special reserve Cash dividends Dividends per share	For the Three Months Ended March 31	For the Three Months Ended March 31	For the Three Months Ended March 31
		2022 $ 25,211 $ 51,576 $ 247,448 $ 2.00	2021 $ 96,510 $ 1,595 $ 618,621 $ 5.00

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 and March 31	For the Three Months Ended March 31	For the Three Months Ended March 31	For the Three Months Ended March 31
		2022 $ 635,615	2021 $ 634,020

On the initial application of the IFRSs, the balance of retained earnings was not enough to appropriate to special reserve the full amount of IFRS adjustments; the Group appropriated to special reserve only at the amount of $230,916 thousand representing the remaining amount in retained earnings that resulted from the conversion to IFRSs. 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.

25 -

e. Non-controlling interests

Balance at January 1 Share of loss for the year Other comprehensive income (loss) during the year Exchange differences on translating the financial statements of foreign operations Balance at March 31	For the Three Months Ended March 31 2022 2021 $ 320,188 $ 343,138 (2,574) (1,082) 11,354 (2,926) $ 328,968 $ 339,130	For the Three Months Ended March 31 2022 2021 $ 320,188 $ 343,138 (2,574) (1,082) 11,354 (2,926) $ 328,968 $ 339,130	For the Three Months Ended March 31 2022 2021 $ 320,188 $ 343,138 (2,574) (1,082) 11,354 (2,926) $ 328,968 $ 339,130
		2022 $ 320,188 (2,574) 11,354 $ 328,968	2021 $ 343,138 (1,082) (2,926) $ 339,130

22. NET PROFIT

a. Employee benefits expense, depreciation and amortization

Employee benefits expense Defined contribution plan Defined benefit plan Other employee benefits Depreciation Amortization			For the Three Months Ended March 31	For the Three Months Ended March 31	For the Three Months Ended March 31	For the Three Months Ended March 31	For the Three Months Ended March 31
			2022	Total $ 23,865 109 598,501 $ 622,475 $ 113,579 $ 5,824			2021
		Operating Costs $ 18,173 59 454,598 $ 472,830 $ 79,142 $ 633	Operating Expenses $ 5,692 50 143,903 $ 149,645 $ 34,437 $ 5,191			Operating Costs $ 20,931 70 456,410 $ 477,411 $ 60,093 $ 514	Operating Expenses $ 5,431 46 142,503 $ 147,980 $ 34,512 $ 4,058	Total $ 26,362 116 598,913 $ 625,391 $ 94,605 $ 4,572

b. Compensation of employees and remuneration of directors and supervisors

According to the Corporation’s Articles of Incorporation, the Corporation accrues compensation of employees and remuneration of directors 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. The compensation of employees and the remuneration of directors for the three months ended March 31, 2022 and 2021, respectively, are as follows:

Accrual rate

Compensation of employees Remuneration of directors	For the Three Months Ended March 31 2022 2021 8.01% 7.21% 1.76% 1.58%

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Amount

Compensation of employees Remuneration of directors	For the Three Months Ended March 31	For the Three Months Ended March 31	For the Three Months Ended March 31
		2022 $ 3,616 $ 794	2021 $ 10,990 $ 2,413

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.

The appropriations of compensation of employees and remuneration of directors and supervisors for 2021 and 2020 that were resolved by the board of directors on March 15, 2022 and March 16, 2021, respectively, are as shown below:

Amount

Compensation of employees Remuneration of directors and supervisors	For the Year Ended December 31	For the Year Ended December 31
	2021 Cash $ 31,000 7,000	2020
		Cash $ 80,000 18,000

The Corporation’s board of directors held their meetings on March 15, 2022 and March 16, 2021 to resolve the distribution of the compensation of employees and remuneration of directors and supervisors. The actual amounts of the compensation of employees and remuneration of directors and supervisors for 2021 and 2020 were different from the amounts recognized in the consolidated financial statements. Differences for 2020 were adjusted and recognized in the profit and loss for the year ended December 31, 2021.

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
	2021 Compensation of Employees Remuneration of Directors and Supervisors $ 31,000 $ 7,000 $ 31,000 $ 7,000	2020
		Compensation of Employees Remuneration of Directors and Supervisors $ 80,000 $ 18,000 $ 80,847 $ 17,747

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.

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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 Deferred tax In respect of the current period Income tax expense recognized in profit or loss	For the Three Months Ended March 31	For the Three Months Ended March 31	For the Three Months Ended March 31
		2022 $ 34,307 865 $ 35,172	2021 $ 74,332 2,256 $ 76,588

b. Income tax assessments

Except for the year 2018, the income tax returns of Leohab Enterprise Co., Ltd. through 2019 have been assessed by the tax authorities.

The income tax returns of the Corporation and Gatetech Technology Inc. through 2020 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

Net Profit for the Period

Earnings used in the computation of diluted earnings per share Effect of potentially dilutive ordinary shares Interest on convertible bonds	For the Three Months Ended March 31	For the Three Months Ended March 31	For the Three Months Ended March 31
		2022 $ 30,921 3,056 $ 33,977	2021 $ 126,115 - $ 126,115

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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 Convertible bonds Compensation of employees Weighted average number of ordinary shares used in the computation of diluted earnings per share	For the Three Months Ended March 31	For the Three Months Ended March 31	For the Three Months Ended March 31
		2022 123,724 17,964 414 142,102	2021 123,724 - 887 124,611

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

25. FINANCIAL INSTRUMENTS

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

March 31, 2022

Financial liabilities Financial liabilities at amortized cost Convertible bonds December 31, 2021 Financial liabilities Financial liabilities at amortized cost Convertible bonds March 31, 2021	Carrying Amount $ 1,169,344 Carrying Amount $ 1,166,288			Fair Value	Fair Value
			Level 1 $ 1,425,120	Level 2 Level 3 $ - $ - Fair Value		Total $ 1,425,120
			Level 1 $ 1,390,200	Level 2 $ -	Level 3 $ -	Total $ 1,390,200

None.

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b. Fair value of financial instruments measured at fair value on a recurring basis
1) Fair value hierarchy

March 31, 2022

Financial assets at FVTPL Foreign exchange forward contracts Listed shares Bonds payable Structured deposits Emerging market shares Overseas unlisted shares Private funds December 31, 2021 Financial assets at FVTPL Foreign exchange forward contracts Listed shares Bonds payable Structured deposits Emerging market shares Overseas unlisted shares Private funds Financial liabilities at FVTPL Foreign exchange forward contracts	Level 1 $ - 81,898 - 67,853 9,783 - - $ 159,534 Level 1 $ - 81,379 - 65,370 10,427 - - $ 157,176 $ -	Level 2 $ 1,030 - 360 - - - - $ 1,390 Level 2 $ 4 - 360 - - - - $ 364 $ 41	Level 3 $ - - - - 6,872 36,692 9,293 $ 52,857 Level 3 $ - - - - 7,101 38,508 9,034 $ 54,643 $ -	Total $ 1,030 81,898 360 67,853 16,655 36,692 9,293 $ 213,781 Total $ 4 81,379 360 65,370 17,528 38,508 9,034 $ 212,183 $ 41

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March 31, 2021

Financial assets at FVTPL Foreign exchange forward contracts Listed shares Structured deposits Emerging market shares Overseas unlisted shares Private funds Financial liabilities at FVTPL Foreign exchange forward contracts	Level 1 $ - 214,054 65,163 10,215 - - $ 289,432 $ -	Level 2 $ 2,189 - - - - - $ 2,189 $ 2,444	Level 3 $ - - - 7,276 49,965 2,493 $ 59,734 $ -	Total $ 2,189 214,054 65,163 17,491 49,965 2,493 $ 351,355 $ 2,444

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

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

Balance at January 1 Recognized in profit or loss Balance at March 31	For the Three Months Ended March 31	For the Three Months Ended March 31	For the Three Months Ended March 31
		2022 $ 54,643 (1,786) $ 52,857	2021 $ 63,578 (3,844) $ 59,734

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 are measured using the asset approach.

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c. Categories of financial instruments

	March 31,	March 31,	December 31,	December 31,	March 31,	March 31,
		2022		2021		2021
Financial assets
Mandatorily classified as at FVTPL	$	213,781	$	212,183	$	351,355
Financial assets at amortized cost (Note 1)		6,662,969		6,279,111		6,729,941
Financial liabilities
Mandatorily classified as at FVTPL		-		41		2,444
Financial liabilities at amortized cost (Note 2)		4,979,096		4,688,776		4,415,517

Note 1: The balances include financial assets measured at amortized cost, which comprise cash and cash equivalents, financial assets at amortized cost, notes receivable, trade receivables, other receivables, and refundable deposits.
Note 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.
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 sales and purchases denominated in foreign currencies, which exposed 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 29.

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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 (the 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 positive (negative) number below indicates increase (decrease) in pre-tax profit associated with the New Taiwan dollar weakening (strengthening) 1% against the relevant currency.

USD impact USD:NTD USD:RMB USD:VND RMB impact RMB:NTD RMB:USD	For the Three Months Ended March 31	For the Three Months Ended March 31	For the Three Months Ended March 31
		2021 $ (1,201) $ (22,741) $ (825) $ (1,064) $ (458)	2020 $ 6,471 $ (21,494) $ (687) $ (820) $ (437)

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:

	March 31,	March 31,	December 31,	December 31,	March 31,	March 31,
		2022		2021		2021
Fair value interest rate risk
Financial assets	$	432,264	$	517,230	$	974,917
Financial liabilities		2,855,072		2,824,014		2,413,465
Cash flow interest rate risk
Financial assets		2,120,548		1,940,437		2,234,930

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Sensitivity analysis

The sensitivity analysis below was determined based on the Group’s exposure to interest rates for non-derivative instruments at the end of the reporting period. For floating rate assets, the analysis was prepared assuming the amount of the assets 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 point higher/lower and all other variables were held constant, the Group’s pre-tax profit for the three months ended March 31, 2022 and 2021 would have increased/decreased by $5,301 thousand and $5,587 thousand, respectively.

The Group’s sensitivity to interest rates has not changed significantly from the prior period.

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 three months ended March 31, 2022 and 2021 would have increased/decreased by $1,352 thousand and $2,815 thousand, respectively, as a result of the changes in fair value of financial assets at FVTPL.

The Group’s sensitivity to other price risk has not changed significantly from the prior period.

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.

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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 Amount used Amount unused	March 31, 2022 December 31, 2021 $ 505,000 $ 495,000 3,494,895 3,410,000 $ 3,999,895 $ 3,905,000 $ 607,030 $ 611,566 52,520 47,633 $ 659,550 $ 659,199	March 31, 2021 $ 1,407,633 2,468,853 $ 3,876,486 $ 593,227 137,566 $ 730,793

26. 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
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
Dongguan Smart Automation Technology Inc.	The subsidiary of associate

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b. Lease agreements

Related Party Category Lease assets acquired Related party in substance The legal representative of the Corporation’s director Line Item Related Party Category March 31, 2022 Lease liabilities Related party in substance $ 2,758 The legal representative of the Corporation’s director 1,508 $ 4,266 Related Party Category Interest expense Related party in substance The legal representative of the Corporation’s director	For the Three Months Ended March 31	For the Three Months Ended March 31	For the Three Months Ended March 31
	2022 2021 $ 2,879 $ - 1,574 - $ 4,453 $ - December 31, 2021 March 31, 2021 $ 242 $ 1,325 132 724 $ 374 $ 2,049 For the Three Months Ended March 31
		2022 $ 1 1 $ 2	2021 $ 4 2 $ 6

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

c. Acquisition of other assets

Line Item Related Party Category Intangible assets The subsidiary of associate Compensation of key management personnel Related Party Category Short-term employee benefits Post-employment benefits	For the Three Months Ended March 31	For the Three Months Ended March 31	For the Three Months Ended March 31
	2022 2021 $ 67 $ - For the Three Months Ended March 31
		2022 $ 11,218 79 $ 11,297	2021 $ 14,914 79 $ 14,993

d. Compensation of key management personnel
36 -

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

27. ASSETS PLEDGED AS COLLATERAL OR FOR SECURITY

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

Financial assets at amortized cost Property, plant and equipment	March 31, 2022 December 31, 2021 $ 1,794 $ 1,728 822,410 822,189 $ 824,204 $ 823,917	March 31, 2021 $ 1,893 835,227 $ 837,120

28. SIGNIFICANT LOSSES ON DISASTER

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.

29. SIGNIFICANT ASSETS AND LIABILITIES DENOMINATED IN FOREIGN CURRENCIES

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

March 31, 2022
		Foreign		Carrying
		Currency	Exchange Rate	Amount
Financial assets
Monetary items
USD	$	63,969	28.625 (USD:NTD)	$ 1,831,113
USD		80,495	6.3482 (USD:RMB)	2,304,169
USD		3,594	23,120 (USD:VND)	102,878
RMB		27,530	4.5060 (RMB:NTD)	124,050
RMB		10,154	0.1574 (RMB:USD)	45,754
Non-monetary items
Financial assets at FVTPL -
non-current
USD		1,282	28.625 (USD:NTD)	36,692
Financial liabilities
Monetary items
USD		59,775	28.625 (USD:NTD)	1,711,059
USD		1,049	6.3482 (USD:RMB)	30,028
USD		713	23,120 (USD:VND)	20,410
RMB		3,922	4.5060 (RMB:NTD)	17,673

37 -

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
March 31, 2021
		Foreign		Carrying
		Currency	Exchange Rate	Amount
Financial assets
Monetary items
USD	$	36,775	28.535 (USD:NTD)	$ 1,049,375
USD		80,772	6.5713 (USD:RMB)	2,304,829
USD		2,409	25,558 (USD:VND)	68,741
RMB		28,698	4.3440 (RMB:NTD)	124,664
RMB		10,052	0.1522 (RMB:USD)	43,666
Non-monetary items
Financial assets at FVTPL -
non-current
USD		1,751	28.535 (USD:NTD)	49,965
Financial liabilities
Monetary items
USD		59,452	28.535 (USD:NTD)	1,696,463
USD		5,446	6.5713 (USD:RMB)	155,402
RMB		9,829	4.3440 (RMB:NTD)	42,697

38 -

The Group is mainly exposed to the USD and the RMB. The following information was aggregated by the functional currencies of the entities in the Group, and the exchange rates between the 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 Other	For the Three Months Ended March 31	For the Three Months Ended March 31
	2022 Exchange Rate Net Foreign Exchange Losses 1 (NTD:NTD) $ 15,557 28.625 (USD:NTD) 171 4.506 (RMB:NTD) (8,365) 554 $ 7,917	2021
		Exchange Rate Net Foreign Exchange Gains 1 (NTD:NTD) $ (3,573) 28.535 (USD:NTD) (312) 4.344 (RMB:NTD) 5,813 505 $ 2,433

30. SEPARATELY DISCLOSED ITEMS

a. Information on significant transactions:
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)
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 (Table 7)
10) Intercompany relationships and significant intercompany transactions (Table 8)
b. Information on significant investees (Table 6)
39 -
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 the financing of funds
- f) Other transactions that have a material effect on the profit or loss for the period or on the financial position, such as the rendering or receipt of services
d. Information of major shareholders: List all shareholders with ownership of 5% or greater showing the name of the shareholder, the number of shares owned, and percentage of ownership of each shareholder (Table 9)

31. 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.

No operating segments have ceased operation during the year.

40 -

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 Net foreign exchange gain Net gain on financial assets at fair value through profit or loss Share of profit of associates Interest expenses General and administrative expenses Income before tax		Income 2022 2021 $ 2,678,627 $ 2,192,987 86,433 101,004 $ 2,765,060 $ 2,293,991		Loss	Loss
		2022 $ 2,678,627 86,433 $ 2,765,060		2022 $ 236,337 248 236,585 5,347 (2,450) 3,953 7,917 1,165 8,097 (12,006) (185,089) $ 63,519	2021 $ 332,755 17,723 350,478 2,840 (17,124) 9,812 2,433 45,121 389 (8,181) (184,147) $ 201,621

The above segment revenue and results were generated from the transactions with external customers. There were no inter-segment transactions for the three months ended March 31, 2022 and 2021.

Segment profit represented the profit before tax earned by each segment without allocation of central administration costs and directors’ salaries, interest income, other income, other gains and losses, net foreign exchange gain, net gain on financial assets at fair value through profit or loss, share of profit of associates, interest expense 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.

41 -

TABLE 1

SYNCMOLD ENTERPRISE CORPORATION AND SUBSIDIARIES

FINANCING PROVIDED TO OTHERS FOR THE THREE MONTHS ENDED MARCH 31, 2022 (In Thousands of New Taiwan Dollars, Unless Stated Otherwise)

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Business Reasons for Allowance for Collateral
Financial Statement Related Highest Balance Interest Rate Nature of Financing Limit for Aggregate Financing
No. Lender Borrower Account Party for the Period Ending Balance [Actual Amount ] Borrowed (%) Financing Transaction Amount Short-term Financing Impairment Loss Item Value Each Borrower Limit
0 Syncmold Enterprise Syncmold Enterprise Other receivables from Yes $ 100,000 $ 100,000 $ - - Short-term $ - Operating capital $ - - - $,1,183,330 $2,366,660
Corporation (Samoa) Corp. related parties financing (20% of the net worth (40% of the net worth
of the Corporation) of the Corporation)
Grand Advance Inc. Other receivables from Yes 100,000 100,000 - - Short-term - Operating capital - - - $,1,183,330 $2,366,660
related parties financing (20% of the net worth (40% of the net worth
of the Corporation) of the Corporation)
Syncmold Enterprise Other receivables from Yes 100,000 100,000 - - Short-term - Operating capital - - - $,1,183,330 $2,366,660
Vietnam Co., Ltd. related parties financing (20% of the net worth (40% of the net worth
of the Corporation) of the Corporation)
Gatetech Technology Other receivables from Yes 100,000 100,000 - - Short-term - Operating capital - - - $,1,183,330 $2,366,660
Inc. related parties financing (20% of the net worth (40% of the net worth
of the Corporation) of the Corporation)
Leohab Enterprise Co., Other receivables from Yes 100,000 100,000 - - Short-term - Operating capital - - - $,1,183,330 $2,366,660
Ltd. related parties financing (20% of the net worth (40% of the net worth
of the Corporation) of the Corporation)
1 Syncmold Enterprise (Samoa) Fujian Khuan Hua Other receivables from Yes 57,250 57,250 - - Short-term - Operating capital - - - $1,183,330 $2,958,325
Corp. Precise Mold Co., related parties financing (20% of the net worth (50% of the net worth
Ltd. of the Corporation) of the Corporation)
Dongguan Khuan Other receivables from Yes 57,250 57,250 - - Short-term - Operating capital - - - $1,183,330 $2,958,325
Huang Precise Mold related parties financing (20% of the net worth (50% of the net worth
Plastic Co., Ltd. of the Corporation) of the Corporation)
Syncmold Enterprise Other receivables from Yes 157,438 157,438 42,938 0.00 Short-term - Operating capital - - - $1,183,330 $2,958,325
Corporation related parties financing (20% of the net worth (50% of the net worth
of the Corporation) of the Corporation)
2 Grand Advance Inc. Kunshan Fulfil Tech Other receivables from Yes 57,250 57,250 - - Short-term - Operating capital - - - $1,183,330 $2,958,325
Co., Ltd. related parties financing (20% of the net worth (50% of the net worth
of the Corporation) of the Corporation)
Syncmold Enterprise Other receivables from Yes 57,250 57,250 - - Short-term - Operating capital - - - $1,183,330 $2,958,325
(Samoa) Corp. related parties financing (20% of the net worth (50% of the net worth
of the Corporation) of the Corporation)
Chongqing Fulfil Tech Other receivables from Yes 85,875 85,875 - - Short-term - Operating capital - - - $1,183,330 $2,958,325
Co., Ltd. related parties financing (20% of the net worth (50% of the net worth
of the Corporation) of the Corporation)
Suzhou Fulfil Other receivables from Yes 57,250 57,250 - - Short-term - Operating capital - - - $1,183,330 $2,958,325
Electronics Co., Ltd. related parties financing (20% of the net worth (50% of the net worth
of the Corporation) of the Corporation)
Syncmold Enterprise Other receivables from Yes 25,763 25,763 11,450 0.00 Short-term - Operating capital - - - $1,183,330 $2,958,325
(USA) Corp. related parties financing (20% of the net worth (50% of the net worth
of the Corporation) of the Corporation)
Fullking Development Other receivables from Yes 100,188 100,188 42,938 0.00 Short-term - Operating capital - - - $1,183,330 $2,958,325
Limited related parties financing (20% of the net worth (50% of the net worth
of the Corporation) of the Corporation)
Syncmold Enterprise Other receivables from Yes 314,875 300,563 214,688 0.00 Short-term - Operating capital - - - $1,183,330 $2,958,325
Corporation related parties financing (20% of the net worth (50% of the net worth
of the Corporation) of the Corporation)
3 Full Big Limited Fullking Development Other receivables from Yes 22,900 22,900 22,900 0.00 Short-term - Operating capital - - - $1,183,330 $2,958,325
Limited related parties financing (20% of the net worth (50% of the net worth
of the Corporation) of the Corporation)
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(Continued)

42 -

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Business Reasons for Allowance for Collateral
No. Lender Borrower Financial Statement Account Related Party Highest Balance for the Period Ending Balance [Actual Amount ] Borrowed Interest Rate (%) Financing Nature of Transaction Amount Short-term Financing Impairment Loss Item Value Financing Limit for Each Borrower Aggregate Financing Limit
4 Fuzhou Fulfil Tech Co., Ltd. Fujian Khuan Hua Other receivables from Yes $ 45,092 $ 45,092 $ - - Short-term $ - Operating capital $ - - - $1,183,330 $2,958,325
Precise Mold Co., related parties financing (20% of the net worth (50% of the net worth
Ltd. of the Corporation) of the Corporation)
Fuqing Fuqun Other receivables from Yes 58,620 58,620 - - Short-term - Operating capital - - - $1,183,330 $2,958,325
Electronic Hardware related parties financing (20% of the net worth (50% of the net worth
Tech Co., Ltd. of the Corporation) of the Corporation)
Suzhou Fulfil Other receivables from Yes 72,147 72,147 - - Short-term - Operating capital - - - $1,183,330 $2,958,325
Electronics Co., Ltd. related parties financing (20% of the net worth (50% of the net worth
of the Corporation) of the Corporation)
5 Suzhou Fulfil Electronics Co., Kunshan Fulfil Tech Other receivables from Yes 40,583 40,583 - - Short-term - Operating capital - - - $1,183,330 $2,958,325
Ltd. Co., Ltd. related parties financing (20% of the net worth (50% of the net worth
of the Corporation) of the Corporation)
6 Zhongshan Fulfil Tech. Co., Dongguan Khuan Other receivables from Yes 36,074 36,074 - - Short-term - Operating capital - - - $1,183,330 $2,958,325
Ltd. Huang Precise Mold related parties financing (20% of the net worth (50% of the net worth
Plastic Co., Ltd. of the Corporation) of the Corporation)
Chongqing Fulfil Tech Other receivables from Yes 45,092 45,092 - - Short-term - Operating capital - - - $1,183,330 $2,958,325
Co., Ltd. related parties financing (20% of the net worth (50% of the net worth
of the Corporation) of the Corporation)
Suzhou Fulfil Other receivables from Yes 36,074 36,074 - - Short-term - Operating capital - - - $1,183,330 $2,958,325
Electronics Co., Ltd. related parties financing (20% of the net worth (50% of the net worth
of the Corporation) of the Corporation)
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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 March 2022.

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

(Concluded)

43 -

TABLE 2

SYNCMOLD ENTERPRISE CORPORATION AND SUBSIDIARIES

ENDORSEMENTS/GUARANTEES PROVIDED FOR THE THREE MONTHS ENDED MARCH 31, 2022 (In Thousands of New Taiwan Dollars, Unless Stated Otherwise)

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Endorsee/Guarantee Ratio of
Accumulated
Endorsement/ Endorsement/
Limit on Endorsement/ Maximum Amount Outstanding Amount Endorsed/ Endorsement/ Aggregate Guarantee Given Endorsement/ Guarantee Given
No. Endorser/Guarantor Name Relationship Behalf of Each PartyGuarantee Given on Guaranteed During the PeriodEndorsed/ End of the PeriodGuarantee at the Endorsement/ Actual Borrowing Amount Guaranteed by Collateral Guarantee to Net Equity in Latest Financial Guarantee LimitEndorsement/ by Parent on Behalf of by Subsidiaries on Guarantee Given Behalf of Parent Companies inon Behalf of
Subsidiaries Mainland China
Statements
(%)
0 Syncmold Enterprise Corporation Gatetech Technology Inc. Subsidiary $1,183,330 $ 200,000 $ 200,000 $ 70,000 $ - 3.38 $2,958,325 Y N N
(20% of the net worth of (50% of the net worth of
the Corporation) the Corporation)
Leohab Enterprise Co., Ltd. Subsidiary $1,183,330 255,000 255,000 195,000 - 4.31 $2,958,325 Y N N
(20% of the net worth of (Note) (50% of the net worth of
the Corporation) the Corporation)
Syncmold Enterprise Subsidiary $1,774,995 572,500 572,500 - - 9.68 $2,958,325 Y N N
Vietnam Co., Ltd. (30% of the net worth of (US$ 20,000 (US$ 20,000 (50% of the net worth of
the Corporation) thousand ) thousand ) the Corporation)
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Note: By the resolution of the board of directors of the Corporation on March 15, 2022, in order to obtain relatively favorable bank credit conditions, it is proposed that Syncmold Enterprise Corporation provide an endorsement guarantee within the limit of NT$260,000 thousand for Leohab Enterprise Co., Ltd. As of March 31, 2022, the remaining NT$5,000 thousand has not been implemented.

44 -

TABLE 3

SYNCMOLD ENTERPRISE CORPORATION AND SUBSIDIARIES

MARKETABLE SECURITIES HELD MARCH 31, 2022

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

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March 31, 2022
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 Shares
Gigastone Corporation - Financial assets at FVTPL - non-current 847,011 $ 9,783 1.67 $ 9,783 (Notes 2 and 6)
Tiga Gaming Inc. - Financial assets at FVTPL - non-current 1,332,132 6,872 5.06 6,872 (Notes 3 and 6)
Foxfortune Technology Ventures Ltd., - Financial assets at FVTPL - non-current 1,000,000 25,889 5.80 25,889 (Notes 4 and 6)
Hercules BioVenture, L.P. - Financial assets at FVTPL - non-current 342,105 10,803 2.63 10,803 (Notes 4 and 6)
Winmate Inc. - Financial assets at FVTPL - current 1,038,000 81,898 1.44 81,898 (Notes 2 and 6)
Private funds
China Development of Healthcare Venture of - Financial assets at FVTPL - non-current 13,122,465 9,293 0.96 9,293 (Notes 4 and 6)
Limited Partnership
Structured commodity
Dongguan Khuan Huang Precise Mold Peoples’ profit 328 from E.SUN Bank - Financial assets at FVTPL - current - 22,641 - 22,641 (Notes 5 and 6)
Plastic Co., Ltd.
Zhongshan Fulfil Tech. Co., Ltd. Monthly profit 22010367 - Financial assets at FVTPL - current - 45,212 - 45,212 (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 March 31, 2022.

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 March 31, 2022.

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

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

45 -

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 THREE MONTHS ENDED MARCH 31, 2022

(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 $ 525,108 47 Note 1 $ - - $ (723,680) 55
Fuzhou Fulfil Tech Co., Ltd. Subsidiary Purchase 128,317 12 Note 1 - - (178,398) 14
Suzhou Fulfil Electronics Co., Ltd. Subsidiary Purchase 386,703 35 Note 1 - - (379,316) 29
Suzhou Fulfil Electronics Co., Ltd. Kunshan Fulfil Tech Co., Ltd. Indirect subsidiary Purchase 147,142 20 Note 1 - - (117,048) 21
Zhongshan Fulfil Tech. Co., Ltd. Syncmold Enterprise Corporation Parent company Sales (525,108) 66 Note 1 - - 723,680 61
Fuzhou Fulfil Tech Co., Ltd. Syncmold Enterprise Corporation Parent company Sales (128,317) 25 Note 1 - - 178,398 18
Suzhou Fulfil Electronics Co., Ltd. Syncmold Enterprise Corporation Parent company Sales (386,703) 48 Note 1 - - 379,316 32
Kunshan Fulfil Tech Co., Ltd. Suzhou Fulfil Electronics Co., Ltd. Indirect subsidiary Sales (147,142) 100 Note 1 - - 117,048 100
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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.

46 -

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 MARCH 31, 2022

(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 1) Rate Amount Actions Taken Subsequent
Loss
Period
Grand Advance Inc. Syncmold Enterprise Corporation Parent company $ 214,688 - $ - - $ 14,313 $ -
(Note 1)
Zhongshan Fulfil Tech. Co., Ltd. Syncmold Enterprise Corporation Parent company 723,680 - - - 153,064 -
Fuzhou Fulfil Tech Co., Ltd. Syncmold Enterprise Corporation Parent company 178,398 - - - 41,202 -
Suzhou Fulfil Electronics Co., Ltd. Syncmold Enterprise Corporation Parent company 379,316 - - - 86,690 -
Kunshan Fulfil Tech Co., Ltd. Suzhou Fulfil Electronics Co., Ltd. Indirect subsidiary 117,048 - - - 61,966 -
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Note 1: Financing.

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

47 -

TABLE 6

SYNCMOLD ENTERPRISE CORPORATION AND SUBSIDIARIES

INFORMATION ON INVESTEES

FOR THE THREE MONTHS ENDED MARCH 31, 2022 (In Thousands of New Taiwan Dollars, Unless Stated Otherwise)

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Original Investment Amount As of March 31, 2022 Net Income
Share of Profit
Investor Company Investee Company Location Main Businesses and Products March 31, December 31, Number of Carrying (Loss) of the Note
% (Loss)
2022 2021 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 $ 2,229,710 $ 8,658 $ 9,477 (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 2,835,827 (9,083) (9,121) (Note 1)
Syncmold Enterprise (USA) Corp. USA Trading, import and export in electronic parts 32 32 - 100.00 (3,000) (116) (116) (Note 2)
High Grade Tech Co., Ltd. Taiwan The design and sale of television hangers and related import and 36,075 36,075 2,280 35.63 143,678 28,333 10,094 (Note 2)
export businesses
Corebio Technologies Co., Ltd. Taiwan Medical technology and precision instrument wholesale and 52,000 52,000 5,200 38.29 19,835 (2,337) (895) (Note 2)
retail
Smart Automation Technology Inc. Taiwan Software design services 15,680 15,680 1,568 49.00 14,056 (2,248) (1,102) (Note 2)
Leohab Enterprise Co., Ltd. Taiwan Precision hardware components manufacturing 232,677 232,677 16,620 70.00 233,742 (10,916) (7,996) (Note 2)
Gatetech Technology Inc. Taiwan Precise molding and magnesium alloy die caster manufacturing 556,063 556,063 42,432 73.82 645,275 3,954 2,413 (Note 1)
and transaction business
Syncmold Enterprise Vietnam Co., Ltd. Vietnam Trading, import and export and investment in electronic parts 579,944 579,944 - 100.00 508,197 (8,834) (8,834) (Note 2)
Syncmold Enterprise (Malaysia) Sdn., Malaysia Trading, import and export in electronic parts, customer support 7,192 7,192 - 100.00 1,266 (938) (938) (Note 2)
Bhd. and service center
Syncmold Enterprise (Singapore) Pte., Singapore Trading, import and export in electronic parts, electronic 1,100 1,100 - 100.00 3,877 538 538 (Note 2)
Ltd. components and parts design
Syncmold Enterprise (Thailand) Co., Ltd. Thailand Trading, import and export and investment in electronic parts 33,638 33,638 - 100.00 12,405 108 108 (Note 2)
-
Grand Advance Inc. Canford International Limited Samoa Import and export trade and investment business 119,342 119,342 - 100.00 1,352,566 (30,150) (30,150) (Note 2)
Fullking Development Limited Hong Kong Import and export trade and investment business 160,175 160,175 - 100.00 946,159 60,228 60,227 (Note 2)
Full Glary Holding Limited Hong Kong Import and export trade and investment business 259,720 259,720 - 100.00 283,935 (11,660) (11,617) (Note 2)
-
Syncmold Enterprise (Samoa) Corp. Full Big Limited Samoa Reinvestment in subsidiaries in mainland China and 16,643 16,643 - 100.00 237,480 136 136 (Note 2)
international trade
Forever Business Development Limited Samoa Reinvestment in subsidiaries in mainland China and 125,957 125,957 - 100.00 355,372 347 1,961 (Note 2)
international trade
Full Celebration Limited Samoa Reinvestment in subsidiaries in mainland China and 147,710 147,710 - 100.00 179,729 (15,721) (15,721) (Note 2)
international trade
Gatetech Technology Inc. Gatech Holdings Ltd. Samoa General investment business 647,041 647,041 20,130 100.00 620,754 (7,854) (7,854) (Note 2)
Gatech Holdings Ltd. Gatech International Ltd. Samoa General investment business 657,284 657,284 20,268 100.00 620,754 (7,854) (7,854) (Note 2)
Leohab Enterprise Co., Ltd. Sweet International Group Ltd. British Virgin General investment business 280,368 280,368 - 100.00 518,283 (4,394) (4,425) (Note 2)
Islands
Sweet International Group Ltd. Lucky King Holdings Ltd. Mauritius General investment business 280,368 280,368 - 100.00 512,101 (4,394) (4,394) (Note 2)
Lucky King Holdings Ltd. Commuwell Enterprise (Thailand) Co., Thailand Plastic shot and hardware components manufacturing 113,236 113,236 - 100.00 198,434 4,184 4,184 (Note 2)
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: Calculated based on the non-reviewed financial statements of the investee company and the Group’s shareholding ratio.

Note 3: Refer to Table 7 for related information on investees from mainland China.

Note 4: 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.

48 -

TABLE 7

SYNCMOLD ENTERPRISE CORPORATION AND SUBSIDIARIES

INFORMATION ON INVESTMENTS IN MAINLAND CHINA FOR THE THREE MONTHS ENDED MARCH 31, 2022 (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
Investee Company Main Businesses and Products Paid-in Capital Method of Investment as of Investment
Investment from Outward Inward Investment from of the Investee Indirect Gain (Loss)
March 31, 2022 Income as of
Taiwan as of Taiwan as of Investment
March 31, 2022
January 1, 2021 March 31, 2022
Fuzhou Fulfil Tech Co., Ltd. Electronic parts processing and $ 43,699 Invested through $ 59,626 $ - $ - $ 59,626 $ 34,756 100.00 $ 34,756 $ 928,505 $ 2,263,207
manufacturing. Trading and Syncmold Enterprise (US$ 2,083 (US$ 2,083 (Note 1) (US$ 79,064
related import and export (Samoa) Corp. thousand) thousand) thousand)
business
Fujian Khuan Hua Precise Mold Processing, manufacturing, trading 111,893 Invested through 38,816 - - 38,816 (10,196) 100.00 (10,196) 280,295 -
Co., Ltd. and related import and export Syncmold Enterprise (US$ 1,356 (US$ 1,356 (Note 2)
business of various metal molds, (Samoa) Corp. thousand) thousand)
plastic molds and plastic
injection molds
Fuqing Fuqun Electronic Hardware Electronic parts processing and 59,632 Invested through - - - - (2,526) 100.00 (2,526) 163,952 111,580
Tech Co., Ltd. manufacturing. Trading and Syncmold Enterprise (Note 2) (US$ 3,898
related import and export (Samoa) Corp. thousand)
business
Dongguan Khuan Huang Precise Processing, manufacturing, trading 126,439 Invested through Forever - - - - 299 100.00 299 355,572 -
Mold Plastic Co., Ltd. and related import and export Business Development (Note 2)
business of various metal molds, Limited
plastic molds and plastic
injection molds
Suzhou Fulfil Electronics Co., Ltd. Electronic parts processing and 18,661 Invested through Canford - - - - (30,150) 100.00 (30,150) 1,352,548 1,220,284
manufacturing. Trading and International Limited (Note 1) (US$ 42,630
related import and export thousand)
business
Zhongshan Fulfil Tech. Co., Ltd. Electronic parts processing and 153,885 Invested through Fullking - - - - 60,288 100.00 60,288 1,011,013 1,490,303
manufacturing. Trading and Development Limited (Note 1) (US$ 52,063
related import and export thousand)
business
Kunshan Fulfil Tech Co., Ltd. Manufacturing and assembling of 236,304 Invested through Full 171,750 - - 171,750 (11,660) 100.00 (11,660) 282,365 -
laptops uses precise bearing, Glary Holding Limited (US$ 6,000 (US$ 6,000 (Note 2)
hardware and related accessories thousand) thousand)
Chongqing Fulfil Tech Co., Ltd. The processing, manufacturing, 140,480 Invested through Full - - - - (15,721) 100.00 (15,721) 179,729 518,800
related imports and exports of all Celebration Limited (Note 2) (US$ 18,124
electronic, plastic and hardware thousand)
parts
Gatetech (Suzhou) Technology Co., Aluminum and magnesium alloy 695,588 Invested through Gatech 695,588 - - 695,588 (9,246) 73.82 (6,826) 620,754 -
Ltd. die caster International Ltd. (US$ 24,300 (US$ 24,300 (Note 2)
thousand) thousand)
Suzhou Leoho Electronics Co., Ltd. Precision hardware components 208,426 Invested through Lucky 128,183 - - 128,183 (8,578) 70.00 (6,005) 313,669 -
manufacturing King Holdings Ltd. (US$ 4,478 (US$ 4,478 (Note 2)
thousand) thousand)
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(Continued)

49 -

(Concluded)

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Accumulated Outward Remittance for Upper Limit on the Amount of
Investment Amount Authorized by the
Investment in Mainland China as of Investment Stipulated by the
Investment Commission, MOEA
March 31, 2022 Investment Commission, MOEA
$1,307,447 $2,216,806 $3,747,370
(US$45,675 thousand) (US$77,443 thousand)
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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: Calculated based on the non-reviewed financial statements of the investee company and the Group’s shareholding ratio.

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.

50 -

TABLE 8

SYNCMOLD ENTERPRISE CORPORATION AND SUBSIDIARIES

INTERCOMPANY RELATIONSHIPS AND SIGNIFICANT INTERCOMPANY TRANSACTIONS FOR THE THREE MONTHS ENDED MARCH 31, 2022 (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 receivables from related parties $ 15,283 Based on the contract between both parties -
1 Zhongshan Fulfil Tech. Co., Ltd. Syncmold Enterprise Corporation 2 Sale 525,108 No significant difference with non-related parties 19
Syncmold Enterprise Corporation 2 Trade receivables from related parties 723,680 No significant difference with non-related parties 6
2 Dongguan Kwan Huang Precision Mold Zhongshan Fulfil Tech. Co., Ltd. 3 Sale 61,490 No significant difference with non-related parties 2
Plastic Co., Ltd. Zhongshan Fulfil Tech. Co., Ltd. 3 Trade receivables from related parties 59,690 No significant difference with non-related parties -
Fuzhou Fulfil Tech Co., Ltd. 3 Sale 26,373 No significant difference with non-related parties 1
Fuzhou Fulfil Tech Co., Ltd. 3 Trade receivables from related parties 12,658 No significant difference with non-related parties -
Suzhou Fulfil Electronics Co., Ltd. 3 Sale 22,322 No significant difference with non-related parties 1
Suzhou Fulfil Electronics Co., Ltd. 3 Trade receivables from related parties 16,598 No significant difference with non-related parties -
3 Fuzhou Fulfil Tech Co., Ltd. Syncmold Enterprise Corporation 2 Sale 128,317 No significant difference with non-related parties 5
Syncmold Enterprise Corporation 2 Trade receivables from related parties 178,398 No significant difference with non-related parties 1
4 Fuqing Fuqun Electronic Hardware Tech Fuzhou Fulfil Tech Co., Ltd. 3 Sale 77,886 No significant difference with non-related parties 3
Co., Ltd. Fuzhou Fulfil Tech Co., Ltd. 3 Trade receivables from related parties 38,158 No significant difference with non-related parties -
Suzhou Fulfil Electronics Co., Ltd. 3 Sale 39,647 No significant difference with non-related parties 1
Suzhou Fulfil Electronics Co., Ltd. 3 Trade receivables from related parties 29,135 No significant difference with non-related parties -
Zhongshan Fulfil Tech. Co., Ltd. 3 Sale 39,847 No significant difference with non-related parties 1
Zhongshan Fulfil Tech. Co., Ltd. 3 Trade receivables from related parties 36,620 No significant difference with non-related parties -
5 Grand Advance Inc. Syncmold Enterprise Corporation 2 Other receivables from related parties - 214,688 Based on the contract between both parties 2
financing
Fullking Development Limited 3 Other receivables from related parties - 42,938 Based on the contract between both parties -
financing
6 Suzhou Fulfil Electronics Co., Ltd. Syncmold Enterprise Corporation 2 Sale 386,703 No significant difference with non-related parties 14
Syncmold Enterprise Corporation 2 Trade receivables from related parties 379,316 No significant difference with non-related parties 3
7 Full Big Limited Fullking Development Limited 3 Other receivables from related parties - 22,900 Based on the contract between both parties -
financing
8 Kunshan Fulfil Tech Co., Ltd. Suzhou Fulfil Electronics Co., Ltd. 3 Sale 147,142 No significant difference with non-related parties 5
Suzhou Fulfil Electronics Co., Ltd. 3 Trade receivables from related parties 117,048 No significant difference with non-related parties 1
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(Continued)

51 -

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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 Suzhou Leoho Electronics Co., Ltd. Leohab Enterprise Co., Ltd. 3 Trade receivables from related parties $ 78,799 No significant difference with non-related parties 1
10 Chongqing Fulfil Tech Co., Ltd. Syncmold Enterprise Corporation 2 Sale 36,510 No significant difference with non-related parties 1
11 Syncmold Enterprise (Samoa) Corp. Syncmold Enterprise Corporation 2 Other receivables from related parties - 42,938 Based on the contract between both parties -
financing
Fujian Khuan Hua Precise Mold Co., Ltd. 3 Other receivables from related parties - 45,301 Based on the contract between both parties -
dividend
12 Gatetech (Suzhou) Technology Co., Ltd. Gatetech Technology Inc. 3 Sale 31,063 No significant difference with non-related parties 1
Gatetech Technology Inc. 3 Trade receivables from related parties 60,290 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)

52 -

TABLE 9

SYNCMOLD ENTERPRISE CORPORATION AND SUBSIDIARIES

INFORMATION ON MAJOR SHAREHOLDERS MARCH 31, 2022

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Shares
Name of Major Shareholder Number of Percentage of
Shares Ownership (%)
Chen Chiu-Lang 8,708,211 7.03
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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 preference shares held by shareholders with ownership of 5% or greater, that have been issued without physical registration (including treasury shares) by the Company as of the last business day for the current quarter. The share capital in the consolidated financial statements may differ from the actual number of shares that have been issued without physical registration because of different preparation basis.
Note 2: If a shareholder delivers the shareholdings to the trust, the above information will be disclosed by the individual truster who opened the trust account. For shareholders who declare insider shareholdings with ownership greater than 10% in accordance with the Security and Exchange Act, the shareholdings include shares held by shareholders and those delivered to the trust over which shareholders have rights to determine the use of trust property. For information relating to insider shareholding declaration, please refer to Market Observation Post System.
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SYNCMOLD — Interim / Quarterly Report 2022

51868_rns_2022-11-08_fd3a1e4b-29d0-4378-8166-1224b28e86fe.pdf

Syncmold Enterprise Corporation and Subsidiaries

INDEPENDENT AUDITORS’ REVIEW REPORT

Introduction

Scope of Review

Basis for Qualified Conclusion

Qualified Conclusion

Notice to Readers

SYNCMOLD ENTERPRISE CORPORATION AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(In Thousands of New Taiwan Dollars)

SYNCMOLD ENTERPRISE CORPORATION AND SUBSIDIARIES

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

SYNCMOLD ENTERPRISE CORPORATION AND SUBSIDIARIES

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

SYNCMOLD ENTERPRISE CORPORATION AND SUBSIDIARIES

SYNCMOLD ENTERPRISE CORPORATION AND SUBSIDIARIES

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

SYNCMOLD ENTERPRISE CORPORATION AND SUBSIDIARIES

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

SYNCMOLD ENTERPRISE CORPORATION AND SUBSIDIARIES

1. GENERAL INFORMATION

2. APPROVAL OF FINANCIAL STATEMENTS

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

New IFRSs

Effective Date Announced by IASB (Note 1)

4. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

c. Basis of consolidation

d. Other significant accounting policies

1) Retirement benefits

5. CRITICAL ACCOUNTING JUDGMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY

6. CASH AND CASH EQUIVALENTS

8. FINANCIAL ASSETS AT AMORTIZED COST

9. TRADE RECEIVABLES, NET

March 31, 2022

10. INVENTORIES

11. SUBSIDIARIES

12. INVESTMENTS ACCOUNTED FOR USING THE EQUITY METHOD

13. PROPERTY, PLANT AND EQUIPMENT

14. LEASE ARRANGEMENTS

a. Right-of-use assets

b. Lease liabilities

c. Subleases

15. GOODWILL

16. INTANGIBLE ASSETS

17. BORROWINGS

18. BONDS PAYABLE

19. OTHER PAYABLES

20. RETIREMENT BENEFIT PLANS

21. EQUITY

b. Capital surplus

d. Special reserve

e. Non-controlling interests

22. NET PROFIT

Accrual rate

Amount

Amount

23. INCOME TAXES

24. EARNINGS PER SHARE

Net Profit for the Period

Shares

25. FINANCIAL INSTRUMENTS

March 31, 2021

c. Categories of financial instruments

1) Market risk

a) Foreign currency risk

Sensitivity analysis

Sensitivity analysis

Sensitivity analysis

2) Credit risk

3) Liquidity risk

Financing facilities

26. TRANSACTIONS WITH RELATED PARTIES

b. Lease agreements

27. ASSETS PLEDGED AS COLLATERAL OR FOR SECURITY

28. SIGNIFICANT LOSSES ON DISASTER

29. SIGNIFICANT ASSETS AND LIABILITIES DENOMINATED IN FOREIGN CURRENCIES

December 31, 2021

SYNCMOLD Interim / Quarterly Report 2022