SYNCMOLD - Interim / Quarterly Report 2021

Syncmold Enterprise Corporation and Subsidiaries

Consolidated Financial Statements for the Nine Months Ended September 30, 2021 and 2020 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 September 30, 2021 and 2020, the related consolidated statements of comprehensive income for the three months ended September 30, 2021 and 2020 and for the nine months ended September 30, 2021 and 2020, the consolidated statements of changes in equity and cash flows for the nine 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 September 30, 2021 and 2020, the combined total assets of these non-significant subsidiaries were NT$3,864,606 thousand and NT$4,001,150 thousand, respectively, representing 32.93% and 38.60%, respectively, of the consolidated total assets, and the combined total liabilities of these subsidiaries were NT$1,723,043 thousand and NT$1,597,193 thousand, respectively, representing 29.54% and 35.18%, respectively, of the consolidated total liabilities; for the three months ended September 30, 2021 and 2020 and the nine months ended September 30, 2021 and 2020, the amounts of combined comprehensive income (loss) of these subsidiaries were NT$(63,389) thousand, NT$142,284 thousand, NT$(119,834) thousand and NT$179,912 thousand, respectively, representing (156.35%), 41.98%, (113.54%) and 26.97%, respectively, of the consolidated total comprehensive income. As disclosed in Note 12 to the consolidated financial statements, the amounts of investments accounted for using the equity

method as of September 30, 2021 and 2020 were NT$172,469 thousand and NT$165,510 thousand, respectively; for the three months ended September 30, 2021 and 2020 and the nine months ended September 30, 2021 and 2020, the share of profit (loss) of associates of NT$7,115 thousand, NT$(186) thousand, NT$6,274 thousand and NT$8,658 thousand, respectively, were 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 give a true and fair view of the consolidated financial position of the Group as of September 30, 2021 and 2020, its consolidated financial performance for the three months ended September 30, 2021 and 2020, and its consolidated financial performance and its consolidated cash flows for the nine months ended September 30, 2021 and 2020 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-Lin Huang.

Deloitte & Touche Taipei, Taiwan Republic of China

November 8, 2021

Notice to Readers

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

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

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 (Note 26) Total current assets NON-CURRENT ASSETS Financial assets at fair value through profit or loss - non-current (Note 7) Financial assets at amortized cost - non-current (Note 8) Investments accounted for using the equity method (Note 12) Property, plant and equipment (Notes 13, 26 and 27) Right-of-use assets (Notes 14 and 26) Intangible assets (Notes 15 and 26) Goodwill (Note 16) Deferred tax assets (Notes 4 and 23) Prepayments for land, property and equipment Refundable deposits Net defined benefit assets (Notes 4 and 20) Other non-current assets Total non-current assets TOTAL LIABILITIES AND EQUITY CURRENT LIABILITIES Short-term borrowings (Notes 17 and 27) Short-term bills payable (Note 17) Notes payable and trade payables Other payables (Note 19) Current tax liabilities (Notes 4 and 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 (Notes 4 and 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		September 30, 2021 (Reviewed) Amount % $ 2,433,085 21 207,131 2 317,850 3 340,861 3 3,292,459 28 1,132,457 9 439,128 4 8,162,971 70 62,153 1 484 - 172,469 1 2,136,520 18 629,721 5 33,100 - 324,597 3 88,528 1 70,159 1 48,165 - 2,779 - 2,440 - 3,571,115 30 $ 11,734,086 100 $ 1,236,275 10 - - 1,970,300 17 433,280 4 146,774 1 183,345 2 15,498 - 23,399 - 4,008,871 34 1,163,164 10 199,189 2 194,943 2 237,358 2 12,116 - 1,441 - 15,467 - 1,823,678 16 5,832,549 50 1,237,242 10 2,768,275 23 1,001,175 9 635,615 5 672,683 6 2,309,473 20 (741,007) (6) 5,233 - (735,774) (6) 5,579,216 47 322,321 3 5,901,537 50 $ 11,734,086 100		December 31, 2020 (Audited) Amount % $ 2,420,807 21 375,949 3 605,827 5 392,958 3 3,616,529 31 967,154 8 429,744 4 8,808,968 75 70,286 1 - - 164,556 1 1,686,017 14 495,502 4 34,250 - 324,597 3 79,720 1 66,967 1 37,202 - 2,567 - 279 - 2,961,943 25 $ 11,770,911 100 $ 1,867,695 16 29,981 - 2,183,688 19 498,717 4 181,357 2 133,785 1 16,909 - 17,314 - 4,929,446 42 - - 56,227 1 331,939 3 170,268 1 20,763 - 1,308 - 19,125 - 599,630 5 5,529,076 47 1,237,242 10 2,592,857 22 904,665 8 634,020 5 1,165,528 10 2,704,213 23 (639,134) (5) 3,519 - (635,615) (5) 5,898,697 50 343,138 3 6,241,835 53 $ 11,770,911 100		September 30, 2020 (Reviewed)
						Amount % $ 2,307,250 22 476,886 5 402,048 4 425,547 4 3,223,821 31 750,335 7 337,895 3 7,923,782 76 57,690 1 - - 165,510 2 1,236,139 12 505,115 5 29,634 - 324,597 3 60,464 1 31,080 - 29,970 - 2,273 - 407 - 2,442,879 24 $ 10,366,661 100 $ 1,431,000 14 19,969 - 1,907,572 18 398,826 4 182,610 2 149,997 2 - - 21,339 - 4,111,313 40 - - - - 242,038 2 177,746 2 9,200 - 214 - - - 429,198 4 4,540,511 44 1,237,242 12 2,591,336 25 904,665 9 634,020 6 959,435 9 2,498,120 24 (730,983) (7) (236) - (731,219) (7) 5,595,479 54 230,671 2 5,826,150 56 $ 10,366,661 100

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

(With Deloitte & Touche review report dated November 8, 2021)

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, 22 and 26) Selling and marketing expenses General and administrative expenses Research and development expenses Expected credit gain Total operating expenses PROFIT FROM OPERATIONS NON-OPERATING INCOME AND EXPENSES Other income (Note 14) Other gains and losses (Note 28) Interest income Net foreign exchange gain (loss) (Note 29) Net gain on financial assets at fair value through profit or loss (Note 7) Share of profit (loss) 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 Ended September 30	For the Three Months Ended September 30	For the Three Months Ended September 30		For the Nine Months	Ended September 30	Ended September 30
		2021		2020		2021		2020
		Amount % $ 2,625,862 100 2,223,051 84 402,811 16 84,229 3 177,593 7 50,764 2 (2,942) - 309,644 12 93,167 4 20,894 1 (8,204 ) - 4,937 - 12,577 - 2,800 - 6,840 - (8,827) - 31,017 1 124,184 5 53,039 2 71,145 3		Amount % $ 2,590,123 100 1,904,371 74 685,752 26 68,625 3 128,876 5 44,854 2 (11,875) (1) 230,480 9 455,272 17 6,110 - 1,945 - 6,402 - (81,581 ) (3 ) 14,214 1 (186 ) - (5,720) - (58,816) (2) 396,456 15 136,865 5 259,591 10		Amount % $ 7,444,856 100 6,243,035 84 1,201,821 16 231,777 3 518,781 7 137,923 2 (4,205) - 884,276 12 317,545 4 50,219 1 (29,671 ) - 21,662 - (16,283 ) - 36,874 - 3,577 - (25,715) - 40,663 1 358,208 5 140,101 2 218,107 3		Amount % $ 6,990,623 100 5,114,927 73 1,875,696 27 189,036 3 382,975 5 127,968 2 (7,032) - 692,947 10 1,182,749 17 31,516 1 (3,688 ) - 27,927 - (59,132 ) (1 ) 14,739 - 8,658 - (20,701) - (681) - 1,182,068 17 416,716 6 765,352 11 (Continued)

SYNCMOLD ENTERPRISE CORPORATION AND SUBSIDIARIES

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

For the Three Months Ended September 30	For the Three Months Ended September 30	For the Nine Months	Ended September 30
2021	2020	2021	2020
Amount % $ 275 - (30,875) (1) (30,600) (1) $ 40,545 2 $ 74,718 3 (3,573) - $ 71,145 3 $ 47,720 2 (7,175) - $ 40,545 2 $ 0.60 $ 0.60	Amount % $ - - 79,345 3 79,345 3 $ 338,936 13 $ 261,623 10 (2,032) - $ 259,591 10 $ 337,599 13 1,337 - $ 338,936 13 $ 2.11 $ 2.10	Amount % $ 2,697 - (115,258) (2) (112,561) (2) $ 105,546 1 $ 225,539 3 (7,432) - $ 218,107 3 $ 126,363 1 (20,817) - $ 105,546 1 $ 1.82 $ 1.82	Amount % $ - - (98,315) (1) (98,315) (1) $ 667,037 10 $ 759,007 11 6,345 - $ 765,352 11 $ 661,808 10 5,229 - $ 667,037 10 $ 6.13 $ 6.08

$	$	$	$
$	$	$	$
$	$	$	$
$	$	$	$
$	$	$	$

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

(With Deloitte & Touche review report dated November 8, 2021)

(Concluded)

SYNCMOLD ENTERPRISE CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

(In Thousands of New Taiwan Dollars)

(Reviewed, Not Audited)

	Equity Attributable to Owners of	the Corporation (Note 21)	the Corporation (Note 21)
Ordinary Shares Capital Surplus $ 1,237,242 $ 2,591,280 - - - - - - - - - 56 - - - - - - - - $ 1,237,242 $ 2,591,336 $ 1,237,242 $ 2,592,857 - - - - - - - - - 175,396 - - - 22 - - - - - - - - $ 1,237,242 $ 2,768,275	Retained Earnings	Total $ 2,295,872 - - (556,759) (556,759) - 759,007 - 759,007 - $ 2,498,120 $ 2,704,213 - - (618,621) (618,621) - (2,641) - 225,539 - 225,539 983 $ 2,309,473	Other Equity	Total Other Equity $ (634,020) - - - - - - (97,199) (97,199) - $ (731,219 ) $ (635,615) - - - - - - - - (99,176) (99,176) (983) $ (735,774 )
			Exchange Differences on Translating of the Financial Statements of Unrealized Gain (Loss) on Financial Assets at Fair Value Through Other Foreign Operations Comprehensive Income $ (633,784) $ (236) - - - - - - - - - - - - (97,199) - (97,199) - - - $ (730,983 ) $ (236 ) $ (639,134) $ 3,519 - - - - - - - - - - - - - - - - (101,873) 2,697 (101,873) 2,697 - (983) $ (741,007 ) $ 5,233
	Legal Reserve Special Reserve Unappropriated Earnings $ 810,515 $ 431,506 $ 1,053,851 94,150 - (94,150 ) - 202,514 (202,514 ) - - (556,759) 94,150 202,514 (853,423) - - - - - 759,007 - - - - - 759,007 - - - $ 904,665 $ 634,020 $ 959,435 $ 904,665 $ 634,020 $ 1,165,528 96,510 - (96,510 ) - 1,595 (1,595 ) - - (618,621) 96,510 1,595 (716,726) - - - - - (2,641) - - - - - 225,539 - - - - - 225,539 - - 983 $ 1,001,175 $ 635,615 $ 672,683

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

(With Deloitte & Touche review report dated November 8, 2021)

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 gain Net gain on financial assets at fair value through profit or loss Interest expenses Interest income Dividend income Share of profit of associates Loss on disposal of property, plant and equipment Loss on disposal of intangible assets Write-downs (reversal) of inventories Net unrealized loss (gain) on 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 Purchase of financial assets at amortized cost Purchase of financial assets at fair value through profit or loss Proceeds from sale of financial assets at amortized cost Proceeds from sale of financial assets at fair value through profit or loss Acquisition of associates Payments for property, plant and equipment Proceeds from disposal of property, plant and equipment		For the Nine Months Ended September 30	For the Nine Months Ended September 30
		2021 $ 358,208 296,612 12,252 (4,205) (36,874) 25,715 (21,662) (23,299) (3,577) 3,665 1,087 21,795 (54,120) 570 (9) 46,236 361,369 (207,207) (22,873) (210,908) (52,135) 6,314 (8,859) (3,658) 484,437 (26,228) (336,473) 121,736 - (745,043) 279,816 956,816 (15,680) (592,102) 23,503	2020 $ 1,182,068 213,818 10,279 (7,032) (14,739) 20,701 (27,927) (6,229) (8,658) 1,533 - (21,941) 35,914 2,528 (1,476) (36,401) (250,182) (419) (103,948) 21,451 (12,717) 6,624 (1,760) - 1,001,487 (20,701) (382,284) 598,502 (237,840) (1,545,939) - 1,179,133 - (75,019) 12,260 (Continued)

SYNCMOLD ENTERPRISE CORPORATION AND SUBSIDIARIES

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

Decrease in (proceeds from) refundable deposits Payments for intangible assets Payments for right-of-use assets Increase in non-current assets Increase in prepayments for equipment Interest received Dividends received Net cash used in investing activities CASH FLOWS FROM FINANCING ACTIVITIES Proceeds from short-term borrowings Repayments of short-term borrowings Proceeds from (repayment of) short-term bills payable Proceeds from issuance of convertible bonds Repayments of bond payables Refunds of guarantee deposits received Proceeds of long-term borrowings Repayments of long-term borrowings Repayment of the principal portion of lease liabilities Cash dividends Changes in non-controlling interests Net cash generated from (used in) financing activities EFFECTS OF EXCHANGE RATE CHANGES ON THE BALANCE OF CASH HELD IN FOREIGN CURRENCIES NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE PERIOD CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD		For the Nine Months Ended September 30	For the Nine Months Ended September 30
		2021 $ (11,941) (12,464) - (89) (43,528) 21,662 34,699 (104,351) - (641,167) (29,981) 1,337,453 - 137 219,000 (77,449) (164,871) (618,621) - 24,501 (29,608) 12,278 2,420,807 $ 2,433,085	2020 $ 541 (13,327) (100,651) - (33,927) 27,927 17,629 (769,213) 427,518 - 19,969 - (150,000) - - - (114,195) (556,759) (3,815) (377,282) (34,064) (582,057) 2,889,307 $ 2,307,250

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

(With Deloitte & Touche review report dated November 8, 2021)

(Concluded)

SYNCMOLD ENTERPRISE CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2021 AND 2020 (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 its shares 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 November 8, 2021.

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 a material impact on the Group’s accounting policies.

b. The IFRSs endorsed by the FSC for application starting from 2022.

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

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

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

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

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

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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.
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, 2020.

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.

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2) Taxation

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

5. CRITICAL ACCOUNTING JUDGMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY

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

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

6. CASH AND CASH EQUIVALENTS

	September 30,	September 30,	December 31,	December 31,	September 30,	September 30,
		2021		2020		2020
Cash on hand	$	2,766	$	2,058	$	2,805
Checking accounts and demand deposits		2,224,229		2,188,915		1,808,949
Cash equivalents (with original maturities within
3 months)
Time deposits		206,090		229,834		495,496
	$	2,433,085	$	2,420,807	$	2,307,250

7. FINANCIAL INSTRUMENTS AT FAIR VALUE THROUGH PROFIT OR LOSS

	September	September	30,	December 31,	December 31,	September 30,	September 30,
		2021			2020		2020
Financial assets at fair value through profit or
loss (FVTPL)-current
Financial assets mandatorily classified as at
FVTPL
Derivative financial assets (not under hedge
accounting)
Foreign exchange forward contracts (a)	$		-	$	22,322	$	3,322
Non-derivative financial assets
Domestic listed shares		78,056			200,701		194,302
Hybrid financial assets
Structured deposits (b)		129,075			152,926		279,262
	$	207,131		$	375,949	$	476,886

(Continued)

12 -

	September 30,	September 30,	December	December	31,	September	September	30,
		2021		2020			2020
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)	$	240	$		-	$		-
Non-derivative financial assets
Domestic emerging market shares		15,535		15,619			13,973
Overseas unlisted shares		38,483		51,579			43,717
Private funds		7,895		3,088				-
	$	62,153	$	70,286		$	57,690
							(Concluded)

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

December 31, 2020

					Notional Amount
			Currency	Maturity Date	(In Thousands)
Sell			US$/RMB	2021.01	US$1,000/RMB6,528
Sell			US$/RMB	2021.02	US$1,000/RMB6,973
Sell			US$/RMB	2021.02	US$1,000/RMB6,854
Sell			US$/RMB	2021.02	US$1,000/RMB6,890
Sell			US$/RMB	2021.02	US$1,000/RMB6,891
Sell			US$/RMB	2021.03	US$1,000/RMB6,987
Sell			US$/RMB	2021.03	US$2,000/RMB13,882
Sell			US$/RMB	2021.03	US$2,000/RMB13,842
Sell			US$/RMB	2021.03	US$2,000/RMB13,682
Sell			US$/RMB	2021.04	US$1000/RMB6,760
Sell			US$/RMB	2021.05	US$1000/RMB6,832
Sell			US$/RMB	2021.06	US$1000/RMB6,670
Sell			US$/RMB	2021.06	US$1000/RMB6,612
Sell			US$/RMB	2021.06	US$1000/RMB6,597
September	30,	2020

			Notional Amount
	Currency	Maturity Date	(In Thousands)
Sell	US$/RMB	2021.01	US$1,000/RMB7,089
Sell	US$/RMB	2021.02	US$1,000/RMB6,973
Sell	US$/RMB	2021.02	US$1,000/RMB6,854
Sell	US$/RMB	2021.02	US$1,000/RMB6,890
Sell	US$/RMB	2021.02	US$1,000/RMB6,891
Sell	US$/RMB	2021.03	US$1,000/RMB6,987
Sell	US$/RMB	2021.03	US$2,000/RMB13,882
Sell	US$/RMB	2021.03	US$2,000/RMB13,842
Sell	US$/RMB	2021.03	US$2,000/RMB13,682

13 -

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 structured time deposit contracts with bank for the nine months ended September 30, 2021 and 2020. The structured time deposit contract includes an embedded derivative instrument which is not closely related to the host contract. The entire contract is assessed and mandatorily classified as at FVTPL since it contained a host that is an asset within the scope of IFRS 9.

8. FINANCIAL ASSETS AT AMORTIZED COST

	September	September	30,	December	December	31,	September	September	30,
		2021			2020			2020
Current
Time deposits with original maturities of more
than 3 months	$	316,140		$	601,313		$	402,048
Time deposits pledged as collateral with original
maturities of more than 3 months		1,710			3,964				-
Restricted deposit			-		550				-
	$	317,850		$	605,827		$	402,048
Non-current
Time deposits with original maturities of more
than 1 year	$	484		$		-	$		-

See Note 27 for detailed information on financial assets at amortized cost pledged as collateral.

9. TRADE RECEIVABLES, NET

	September 30,	December 31,	September 30,
	2021	2020	2020
At amortized cost
Gross carrying amount	$ 3,298,828	$ 3,627,405	$ 3,231,379
Less: Allowance for impairment loss	(6,369)	(10,876)	(7,558)
	$ 3,292,459	$ 3,616,529	$ 3,223,821

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.

14 -

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 to past default experience of the debtor and an analysis of the debtor’s current financial position, adjusted for general economic conditions of the industry in which the debtors operate and an assessment of both the current as well as the forecast direction of economic conditions at the reporting date. As the Group’s historical credit loss experience does not show significantly different loss patterns for different customer segments, the provision for loss allowance based on past due status is not further distinguished according to the Group’s different customer base.

The Group writes off a trade receivable when there is information indicating that the debtor is in severe financial difficulty and there is no realistic prospect of recovery. For trade receivables that have been written off, the Group continues to engage in enforcement activity to attempt to recover the receivables due. Where recoveries are made, these are recognized in profit or loss.

The following table details the loss allowance of trade receivables.

September 30, 2021

Not Past Due Expected credit loss rate - Gross carrying amount $ 3,253,266 Loss allowance (Lifetime ECLs) - Amortized cost $ 3,253,266 December 31, 2020 Not Past Due Expected credit loss rate - Gross carrying amount $ 3,542,654 Loss allowance (Lifetime ECLs) - Amortized cost $ 3,542,654 September 30, 2020 Not Past Due Expected credit loss rate - Gross carrying amount $ 3,127,612 Loss allowance (Lifetime ECLs) - Amortized cost $ 3,127,612	Less than 30 Days 31 to 90 Days 4.10% 7.78% $ 29,550 $ 9,192 (1,212) (715) $ 28,338 $ 8,477 Less than 30 Days 31 to 90 Days 5.51% 14.83% $ 41,942 $ 38,235 (2,313) (5,669) $ 39,629 $ 32,566 Less than 30 Days 31 to 90 Days 4.45% 16.07% $ 82,680 $ 20,211 (3,682) (3,247) $ 78,998 $ 16,964	91 to 180 Days 41.30% $ 4,051 (1,673) $ 2,378 91 to 180 Days 42.93% $ 2,944 (1,264) $ 1,680 91 to 180 Days 50.20% $ 496 (249) $ 247	Over 180 Days 100% $ 2,769 (2,769) $ - Over 180 Days 100% $ 1,630 (1,630) $ - Over 180 Days 100% $ 380 (380) $ -	Total $ 3,298,828 (6,369) $ 3,292,459 Total $ 3,627,405 (10,876) $ 3,616,529 Total $ 3,231,379 (7,558) $ 3,223,821

15 -

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

Balance at January 1 Less: Net remeasurement of loss allowance Foreign exchange gains and losses Balance at September 30		For the Nine Months Ended September 30	For the Nine Months Ended September 30
		2021 $ 10,876 (4,205) (302) $ 6,369	2020 $ 14,444 (7,032) 146 $ 7,558

10. INVENTORIES

	September 30,	September 30,	December 31,	December 31,	September 30,	September 30,
		2021		2020		2020
Finished goods	$	407,380	$	327,374	$	256,929
Work in progress		303,155		234,759		199,639
Raw materials		421,922		405,021		293,767
	$	1,132,457	$	967,154	$	750,335

The cost of goods sold for the nine months ended September 30, 2021 included inventory write-downs of $21,795 thousand. The cost of goods sold for the three months ended September 30, 2021 and 2020, and the nine months ended September 30, 2020 included reversals of inventory write-downs of $4,174 thousand, $9,213 thousand and $21,941 thousand, respectively. The reversal of inventory write-downs resulted from selling of slow-moving inventories.

11. SUBSIDIARIES

Subsidiaries included in the consolidated financial statements:

Investor
Investee
Nature of Activities
Syncmold Enterprise
Corp.
Syncmold Enterprise
(Samoa) Corp.
The trading and commercial related practices
of all metal molds and plastic molds as
well as the reinvestment of subsidiaries in
mainland China.
Grand Advance Inc.
The trading, imports, exports and
investments of electronic parts.
Syncmold Enterprise
(USA) Corp.
The trading, imports and exports of
electronic parts.
Gatetech Technology Inc.
Precision molding and magnesium alloy die
caster manufacturing and transaction
business.
Syncmold Enterprise
Vietnam Co., Ltd.
Electronic parts processing manufacturing,
trading and related import and export
business.
Syncmold Enterprise
(MALAYSIA) Sdn.,
Bhd.
The trading, imports and exports of
electronic parts.
Syncmold Enterprise
(SINGAPORE) Pte.,
Ltd.
The trading, imports and exports of
electronic parts.
Syncmold Enterprise
(THAILAND) Co., Ltd.
Electronic parts processing manufacturing,
trading and related import and export
business.
Leohab Enterprise Co.,
Ltd.
Precision hardware components
manufacturing.

Proportion of Ownership (%)
September 30,
2021
December 31,
2020
September 30,
2020
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
73.43
73.43
73.43
Note 4
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
-
Note 3

(Continued)

16 -

Investor
Investee
Nature of Activities
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.
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 (%)
September 30,
2021
December 31,
2020
September 30,
2020
Note
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
-
Note 3
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
-
Note 3
100.00
100.00
-
Note 3
100.00
100.00
-
Note 3
(Concluded)

Note 1: Its financial statements for the nine months ended September 30, 2021 and 2020 have been reviewed.
Note 2: As the subsidiary is not a major subsidiary, its financial statements for the nine months ended September 30, 2021 and 2020 have not been reviewed.
Note 3: The subsidiary is not a major subsidiary. On November 30, 2020, the Corporation completed the acquisition of Leohab Enterprise Co., Ltd. for a cash consideration of $232,677 thousand; after the acquisition, the Corporation’s percentage of ownership in Leohab Enterprise Co., Ltd. was 70%. Its financial statements for the nine months ended September 30, 2021 have not been reviewed.
Note 4: It’s financial statements for the nine months ended September 30, 2021 and 2020 have been reviewed and not been reviewed, respectively.
17 -

12. INVESTMENTS ACCOUNTED FOR USING THE EQUITY METHOD

	September 30,	December 31,	September 30,
	2021	2020	2020
Associates that are not individually material
Unlisted company
High Grade Tech Co., Ltd. (Note 1)	$ 124,891	$ 128,639	$ 125,289
Corebio technologies Co., Ltd.	31,824	35,917	40,221
Smart Automation Technology Inc. (Note 2)	15,754	-	-
	$ 172,469	$ 164,556	$ 165,510

Note 1: The Corporation’s percentage of ownership in High Grade Tech Co., Ltd. was 38% originally. After High Grade Tech Co., Ltd. handled employee stock option for new shares in September 2020, the Corporation’s percentage of ownership in High Grade Tech Co., Ltd. decrease to 35.63%. The effect of the change in ownership of investment accounted for using the equity method of $2,641 thousand was recognized in retained earnings.
Note 2: 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 comprehensive income or loss for the nine months ended September 30, 2021 and 2020 were calculated based on financial statements which have not been reviewed.

13. PROPERTY, PLANT AND EQUIPMENT

Cost Balance at January 1, 2021 Additions Disposals Transfer from prepayments for equipment Reclassifications Effect of foreign currency exchange differences Balance at September 30, 2021 Accumulated depreciation and impairment Balance at January 1, 2021 Depreciation expenses Disposals Impairment losses recognized Reclassifications Effect of foreign currency exchange differences Balance at September 30, 2021 Carrying amounts at September 30, 2021	Freehold Land $ 714,292 46,172 - 10,673 - (642) $ 770,495 $ - - - - - - $ - $ 770,495	Buildings $ 883,285 66,885 (14,838) 3,927 (833 ) (24,916) $ 913,510 $ 444,043 50,332 (14,838 ) - (769 ) (16,298) $ 462,470 $ 451,040	Equipment Transportation Equipment $ 1,497,074 $ 41,069 163,416 3,070 (89,692) (1,311) 22,219 - (4,368 ) 71 (56,211) (1,706) $ 1,532,438 $ 41,193 $ 1,056,696 $ 24,956 63,139 3,082 (64,843 ) (1,180 ) 340 - (983 ) 283 (37,193) 5 $ 1,017,156 $ 27,146 $ 515,282 $ 14,047	Office Equipment $ 50,318 11,050 (4,564) 2,560 437 (938) $ 58,863 $ 32,117 5,920 (4,218 ) - (362 ) 295 $ 33,752 $ 25,111	Other Equipment P $ 250,313 46,662 (20,737) 352 (4,752 ) (18,729) $ 253,109 $ 192,522 20,250 (18,895 ) 230 (5,526 ) (25,521) $ 163,060 $ 90,049	roperty Under Construction Total $ - $ 3,436,351 254,847 592,102 - (131,142) - 39,731 - (9,445 ) 15,649 (87,493) $ 270,496 $ 3,840,104 $ - $ 1,750,334 - 142,723 - (103,974 ) - 570 - (7,357 ) - (78,712) $ - $ 1,703,584 $ 270,496 $ 2,136,520 (Continued)

18 -

Cost Balance at January 1, 2020 Additions Disposals Transfer from prepayments for equipment Reclassifications Effect of foreign currency exchange differences Balance at September 30, 2020 Accumulated depreciation and impairment Balance at January 1, 2020 Depreciation expenses Disposals Impairment losses recognized Reclassifications Effect of foreign currency exchange differences Balance at September 30, 2020 Carrying amounts at September 30, 2020	Freehold Land $ 495,581 - - - - - $ 495,581 $ - - - - - - $ - $ 495,581	Buildings $ 641,034 9,708 - 935 (4,271 ) (1,411) $ 645,995 $ 320,970 27,533 (86) - (9,062 ) (1,822) $ 337,533 $ 308,462	Equipment Transportation Equipment $ 1,119,133 $ 32,396 51,551 2,003 (37,367 ) (905 ) 26,259 - (10,275 ) - (4,101) (142) $ 1,145,200 $ 33,352 $ 747,814 $ 19,070 57,554 2,670 (24,057) (815) 2,528 - (11,521 ) - (4,730) (129) $ 767,588 $ 20,796 $ 377,612 $ 12,556	Office Equipment $ 41,780 5,244 (4,460 ) 1,110 (1,461 ) (285) $ 41,928 $ 29,435 3,510 (4,093) - (920 ) (176) $ 27,756 $ 14,172	Other Equipment P $ 84,415 6,513 (1,052 ) 608 1,494 (326) $ 91,652 $ 60,339 4,106 (940) - 580 (189) $ 63,896 $ 27,756	roperty Under Construction $ - - - - - - $ - $ - - - - - - $ - $ -	Total $ 2,414,339 75,019 (43,784 ) 28,912 (14,513 ) (6,265) $ 2,453,708 $ 1,177,628 95,373 (29,991) 2,528 (20,923 ) (7,046) $ 1,217,569 $ 1,236,139

(Concluded)

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

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.

14. LEASE ARRANGEMENTS

a. Right-of-use assets

	September 30,	December 31,	September 30,
	2021	2020	2020
Carrying amounts
Lands	$ 179,903	$ 174,905	$ 151,911
Buildings	448,522	318,942	352,562
Transportation equipment	1,296	1,655	642
	$ 629,721	$ 495,502	$ 505,115

19 -

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)	For the Three Months Ended September 30 2021 2020 $ 1,182 $ 591 50,621 39,161 283 113 $ 52,086 $ 39,865 $ - $ (250)	For the Three Months Ended September 30 2021 2020 $ 1,182 $ 591 50,621 39,161 283 113 $ 52,086 $ 39,865 $ - $ (250)		For the Nine Months Ended September 30	For the Nine Months Ended September 30
		2021 $ 1,182 50,621 283 $ 52,086 $ -		2021 $ 289,254 $ 3,229 149,801 859 $ 153,889 $ -	2020 $ 237,471 $ 1,140 117,006 299 $ 118,445 $ (9,862)

Except for the recognized depreciation, the Group did not have any significant impairment of right-of-use assets during the nine months ended September 30, 2021 and 2020.

b. Lease liabilities

	September 30,	December 31,	September 30,
	2021	2020	2020
Carrying amounts
Current	$ 183,345	$ 133,785	$ 149,997
Non-current	$ 237,358	$ 170,268	$ 177,746
Range of discount rate for lease liabilities was as follows:
	September 30,	December 31,	September 30,
	2021	2020	2020
Buildings	0.94%-4.90%	0.94%-4.90%	0.94%-4.90%
Transportation equipment	0.94%-4.55%	0.94%-1.69%	0.94%

c. Subleases

The Group subleases its right-of-use assets for buildings under operating leases with lease terms of 5 years 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.

d. Other lease information

Expenses relating to short-term leases Total cash outflow for leases	For the Three Months Ended September 30 2021 2020 $ 9,439 $ 6,137	For the Three Months Ended September 30 2021 2020 $ 9,439 $ 6,137		For the Nine Months Ended September 30	For the Nine Months Ended September 30
		2021 $ 9,439		2021 $ 25,872 $ (202,884)	2020 $ 15,132 $ (139,425)

20 -

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. INTANGIBLE ASSETS

	September 30,	September 30,	December 31,	December 31,	September	September	30,
		2021		2020		2020
Trademarks	$	54	$	66	$		-
Computer software		32,136		31,545		29,634
Patents		910		2,639			-
	$	33,100	$	34,250	$	29,634

Except for the recognized amortization, the Group did not have any significant additions, disposals or impairment of intangible assets during the nine months ended September 30, 2021 and 2020. 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

16. GOODWILL

	September 30,	December 31,	September 30,
	2021	2020	2020
Cost
Balance at January 1	$ 366,777	$ 366,777	$ 366,777
Balance at end of period	$ 366,777	$ 366,777	$ 366,777
Accumulated impairment losses
Balance at January 1	$ (42,180)	$ (42,180)	$ (42,180)
Balance at end of period	$ (42,180)	$ (42,180)	$ (42,180)
Carrying amounts at end of period	$ 324,597	$ 324,597	$ 324,597

17. BORROWINGS

a. Short-term borrowings

	September 30,	September 30,	December 31,	December 31,	September 30,	September 30,
		2021		2020		2020
Secured borrowings
Mortgage loans	$	400,000	$	484,000	$	390,000
Bank loans		3,309		8,895		-
Unsecured borrowings
Line of credit borrowings		832,966		1,374,800		1,041,000
	$	1,236,275	$	1,867,695	$	1,431,000

21 -

The range of interest rates on bank loans was 0.50%-3.75%, 0.67%-3.75% and 0.77%-1.00% on September 30, 2021, December 31, 2020 and September 30, 2020, respectively.

b. Short-term bills payable

	September	September	30,	December 31,	September 30,
		2021		2020	2020
Commercial paper	$		-	$ 30,000	$ 20,000
Less: Unamortized discounts on bills payable			-	(19)	(31)
	$		-	$ 29,981	$ 19,969

c. long-term borrowings

	September 30,	December 31,	December 31,	December 31,	September	September	30,	30,
	2021		2020			2020
Secured borrowings
Mortgage loans	$ 214,687	$	59,500		$		-
Unsecured borrowings
Line of credit borrowings	-		13,636				-
	214,687		73,136				-
Less: Current portion	(15,498)		(16,909)				-
	$ 199,189	$	56,227		$		-
BONDS PAYABLE
	September 30,	December 31,			September		30,
	2021		2020			2020
Domestic third unsecured convertible bonds	$ 1,163,164	$		-	$			-

18. BONDS PAYABLE

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.

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.

22 -

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 component was presented in equity under the heading of capital surplus-options. The liability components are recognized as liabilities of embedded derivative financial instruments and non-derivative products. Such embedded derivative financial instrument have been assessed at fair value of NT$240 thousand (included in financial assets - non-current which are measured through profit/loss based on fair value); non-derivative product liabilities have been measured on September 30, 2021 at NT$1,163,164 thousand (included in bonds payable) respectively based on amortized cost and its effective interest rate originally recognized is 1.0663%.

Proceeds from insurance (less transaction cost of NT$4,998 thousand) Equity component Liability component at the date of issue (including NT$1,162,417 thousand of bonds payable and NT$360 thousand of financial asset at fair value - non-current) Interest charged at an effective interest rate of 1.0663% Loss on valuation of financial instrument Liability component on September 30, 2021	$ 1,337,453 (175,396) 1,162,057 747 120 $ 1,162,924

As of September 30, 2021, the third unsecured convertible bonds have no conversion enforcement rights.

19. OTHER PAYABLES

	September 30,	December 31,	September 30,
	2021	2020	2020
Current
Other payables
Payables for salaries or bonuses	$ 184,136	$ 280,535	$ 214,921
Others	249,144	218,182	183,905
	$ 433,280	$ 498,717	$ 398,826

20. RETIREMENT BENEFIT PLANS

For the three months ended September 30, 2021 and 2020 and the nine months ended September 30, 2021 and 2020, the pension expenses of defined benefit plans were $112 thousand, $120 thousand, $346 thousand and $363 thousand, respectively, and these were calculated based on the actuarially determined pension cost rate on December 31, 2020 and 2019, respectively.

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21. EQUITY

a. Share capital

Ordinary shares

	September 30,	December 31,	September 30,
	2021	2020	2020
Number of shares authorized (in thousands)	200,000	200,000	200,000
Value of shares authorized	$ 2,000,000	$ 2,000,000	$ 2,000,000
Number of shares issued and fully paid (in
thousands)	123,724	123,724	123,724
Value of shares issued	$ 1,237,242	$ 1,237,242	$ 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 stock options.

b. Capital surplus

	September	30,	December	31,	September	30,
	2021		2020		2020
May be used to offset a deficit, distributed as
cash dividends, or transferred to share
capital (Note 1)
Issuance of ordinary shares	$ 1,184,809		$ 1,184,809		$ 1,184,809
The difference between the consideration paid
and the carrying amount of the
subsidiaries’ net assets during
actual acquisition	412,470		412,470		410,949
Consolidation excess	852,372		852,372		852,372
Unclaimed dividends		78		56		56
May only be used to offset a deficit (Note 2)
Changes in percentage of ownership interests
in subsidiaries	143,150		143,150		143,150
May not be used for any purpose
Convertible bonds option	175,396			-		-
	$ 2,768,275		$ 2,592,857		$ 2,591,336

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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.

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 shareholders’ 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 stock 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 2020 and 2019, which were approved in the shareholders’ meetings on July 30, 2021 and June 18, 2020, respectively, were as follows:

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

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d. Special reserve

Balance at January 1 Appropriations to special reserve Debits to other equity items Balance at September 30		For the Nine Months Ended September 30	For the Nine Months Ended September 30
		2021 $ 634,020 1,595 $ 635,615	2020 $ 431,506 202,514 $ 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.

e. Non-controlling interests

Balance at January 1 Non-controlling interests arising from acquisition of subsidiaries Share of profit (loss) for the year Other comprehensive income (loss) during the year Exchange differences on translating the financial statements of foreign operations Balance at September 30		For the Nine Months Ended September 30	For the Nine Months Ended September 30
		2021 $ 343,138 - (7,432) (13,385) $ 322,321	2020 $ 229,257 (3,815) 6,345 (1,116) $ 230,671

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 September 30	Three Months Ended September 30	Three Months Ended September 30	Three Months Ended September 30
			2021	Total $ 22,008 112 573,255 $ 595,375 $ 103,118 $ 3,856			2020
		Operating Costs $ 16,454 62 445,640 $ 462,156 $ 67,579 $ 231	Operating Expenses $ 5,554 50 127,615 $ 133,219 $ 35,539 $ 3,625			Operating Costs $ 9,364 67 328,251 $ 337,682 $ 48,783 $ 104	Operating Expenses $ 2,910 53 108,851 $ 111,814 $ 24,825 $ 3,395	Total $ 12,274 120 437,102 $ 449,496 $ 73,608 $ 3,499

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Employee benefits expense Defined contribution plan Defined benefit plan Other employee benefits Depreciation Amortization			For the Nine Months	For the Nine Months	Ended September 30	Ended September 30	Ended September 30
			2021	Total $ 69,722 346 1,743,632 $ 1,813,700 $ 296,612 $ 12,252			2020
		Operating Costs $ 53,171 203 1,362,735 $ 1,416,109 $ 190,298 $ 746	Operating Expenses $ 16,551 143 380,897 $ 397,591 $ 106,314 $ 11,506			Operating Costs $ 25,225 217 979,487 $ 1,004,929 $ 141,937 $ 118	Operating Expenses $ 9,126 146 312,817 $ 322,089 $ 71,881 $ 10,161	Total $ 34,351 363 1,292,304 $ 1,327,018 $ 213,818 $ 10,279

b. Compensation of employees and remuneration of directors

According to the Corporation’s Articles of Incorporation, the Corporation accrued 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 and supervisors. The compensation of employees and the remuneration of directors and supervisors for the three months and the nine months ended September 30, 2021 and 2020, respectively, are as follows:

Accrual rate

Compensation of employees Remuneration of directors and supervisors Amount For the Three Months Ended September 30 2021 2020 Compensation of employees $ 7,470 $ 21,580 Remuneration of directors and supervisors $ 1,640 $ 4,737	Compensation of employees Remuneration of directors and supervisors Amount For the Three Months Ended September 30 2021 2020 Compensation of employees $ 7,470 $ 21,580 Remuneration of directors and supervisors $ 1,640 $ 4,737	Compensation of employees Remuneration of directors and supervisors Amount For the Three Months Ended September 30 2021 2020 Compensation of employees $ 7,470 $ 21,580 Remuneration of directors and supervisors $ 1,640 $ 4,737	Compensation of employees Remuneration of directors and supervisors Amount For the Three Months Ended September 30 2021 2020 Compensation of employees $ 7,470 $ 21,580 Remuneration of directors and supervisors $ 1,640 $ 4,737		For the Nine Months Ended September 30	For the Nine Months Ended September 30	For the Nine Months Ended September 30
					2021 2020 6.60% 6.55% 1.53% 1.44% For the Nine Months Ended September 30
		2021 $ 7,470 $ 1,640	2020 $ 21,580 $ 4,737			2021 $ 19,901 $ 4,622	2020 $ 63,232 $ 13,880

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 for 2020 and 2019 that were resolved by the board of directors on March 16, 2021 and March 13, 2020, respectively, are as shown below:

Amount

Compensation of employees Remuneration of directors and supervisors	For the Year Ended December 31 2020 2019 Cash Cash $ 80,000 $ 79,000 18,000 18,000	For the Year Ended December 31 2020 2019 Cash Cash $ 80,000 $ 79,000 18,000 18,000
		2019
		Cash $ 79,000 18,000

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

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

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

23. INCOME TAXES

a. Income tax recognized in profit or loss

Major components of income tax expense are as follows:

Current tax In respect of the current period Income tax on unappropriated earnings Adjustments for prior periods Deferred tax In respect of the current period Adjustments for prior periods Income tax expense recognized in profit or loss	For the Three Months Ended September 30 2021 2020 $ 113,356 $ 243,162 9,200 - - (253) 122,556 242,909 (69,517) (103,427) - (2,617) (69,517) (106,044) $ 53,039 $ 136,865	For the Three Months Ended September 30 2021 2020 $ 113,356 $ 243,162 9,200 - - (253) 122,556 242,909 (69,517) (103,427) - (2,617) (69,517) (106,044) $ 53,039 $ 136,865		For the Nine Months Ended September 30	For the Nine Months Ended September 30
		2021 $ 113,356 9,200 - 122,556 (69,517) - (69,517) $ 53,039		2021 $ 280,636 9,200 (2,752) 287,084 (146,983) - (146,983) $ 140,101	2020 $ 445,923 4,404 2,235 452,562 (35,588) (258) (35,846) $ 416,716

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b. Income tax assessments

The income tax returns of the Leohab Enterprise Co., Ltd. through 2017 have been assessed by the tax authorities.

The income tax returns of the Gatetech Technology Inc. through 2018 have been assessed by the tax authorities.

The income tax returns of the Corporation through 2019 have been assessed by the tax authorities.

24. EARNINGS PER SHARE

Net Profit for the Period

Earnings used in the computation of diluted earnings per share Shares	For the Three Months Ended September 30 2021 2020 $ 74,718 $ 261,623	For the Three Months Ended September 30 2021 2020 $ 74,718 $ 261,623		For the Nine Months Ended September 30	For the Nine Months Ended September 30
		2021 $ 74,718		2021 $ 225,539	2020 $ 759,007

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

Weighted average number of ordinary shares used in the computation of basic earnings per share Effect of potentially dilutive ordinary shares Compensation of employees Weighted average number of ordinary shares used in the computation of diluted earnings per share	For the Three Months Ended September 30 2021 2020 123,724 123,724 288 755 124,012 124,479	For the Three Months Ended September 30 2021 2020 123,724 123,724 288 755 124,012 124,479	For the Nine Months Ended September 30	For the Nine Months Ended September 30	For the Nine Months Ended September 30
		2021 123,724 288 124,012		2021 123,724 535 124,259	2020 123,724 1,023 124,747

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

29 -

25. FINANCIAL INSTRUMENTS

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

September 30, 2021

Financial liabilities Financial liabilities at amortized cost Convertible bonds	Carrying Amount $ 1,163,164			Fair Value	Fair Value
			Level 1 $ 1,351,320	Level 2 $ -	Level 3 $ -	Total $ 1,351,320

b. Fair value of financial instruments measured at fair value on a recurring basis 1) Fair value hierarchy September 30, 2021

Financial assets at FVTPL Listed shares Structured deposits Bonds payable Emerging market shares Overseas unlisted shares Private funds December 31, 2020 Financial assets at FVTPL Foreign exchange forward contracts Listed shares Structured deposits Emerging market shares Overseas unlisted shares Private funds	Level 1 $ 78,056 129,075 - 8,190 - - $ 215,321 Level 1 $ - 200,701 152,926 6,708 - - $ 360,335	Level 2 $ - - 240 - - - $ 240 Level 2 $ 22,322 - - - - - $ 22,322	Level 3 $ - - - 7,345 38,483 7,895 $ 53,723 Level 3 $ - - - 8,911 51,579 3,088 $ 63,578	Total $ 78,056 129,075 240 15,535 38,483 7,895 $ 269,284 Total $ 22,322 200,701 152,926 15,619 51,579 3,088 $ 446,235

30 -

September 30, 2020

Financial assets at FVTPL Foreign exchange forward contracts Listed shares Structured deposits Emerging market shares Overseas unlisted shares	Level 1 $ - 194,302 279,262 5,006 - $ 478,570	Level 2 $ 3,322 - - - - $ 3,322	Level 3 $ - - - 8,967 43,717 $ 52,684	Total $ 3,322 194,302 279,262 13,973 43,717 $ 534,576

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

The financial assets which is measured by the third level of fair value is FVTPL.

The followings are the adjustment for the nine months ended September 30, 2021 and 2020.

Balance at January 1 Purchase Recognized in profit or loss Balance at September 30		For the Nine Months Ended September 30	For the Nine Months Ended September 30
		2021 $ 63,578 8,105 (17,960) $ 53,723	2020 $ 57,409 - (4,725) $ 52,684

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

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Financial Instrument Valuation Technique and Inputs
----- End of picture text -----

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.

31 -

c. Categories of financial instruments

	September 30,	September 30,	December 31,	December 31,	September 30,	September 30,
		2021		2020		2020
Financial assets
Mandatorily classified as at FVTPL	$	269,284	$	446,235	$	534,576
Financial assets at amortized cost (Note 1)		6,480,146		7,124,038		6,436,091
Financial liabilities
Financial liabilities at amortized cost (Note 2)		4,835,011		4,373,990		3,452,660

Note 1: The balances include financial assets measured at amortized cost, which comprise cash and cash equivalents, financial assets at amortized cost, notes receivable and trade receivables, other receivables and refundable deposits.
Note 2: The balances include financial liabilities measured at amortized cost, which comprise short-term borrowings, notes payable and trade payables, other payables, long-term borrowings, bonds payable, and guarantee deposits received.
d. Financial risk management objectives and policies

The Group’s major financial instruments include equity and debt investments, trade receivables, trade payables, and borrowings. The Group’s corporate treasury function provides services to the business, coordinates access to domestic and international financial markets, and monitors and manages the financial risks relating to the operations of the Group through internal risk reports that analyze exposures by degree and magnitude of risks. These risks include market risk (including foreign currency risk and interest rate 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), interest rates (see (b) below) and other prices (see (c) below).

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 negative number below indicates a decrease in pre-tax profit associated with the New Taiwan dollar strengthening 1% against the relevant currency. For a 1% weakening of the New Taiwan dollar against the relevant currency, there would be an equal and opposite impact on pre-tax profit, and the balances below would be positive.

USD impact USD:NTD USD:RMB USD:VND RMB impact RMB:NTD RMB:USD		For the Nine Months Ended September 30	For the Nine Months Ended September 30
		2021 $ (527) $ (21,566) $ 1,198 $ (1,875) $ (436)	2020 $ 6,318 $ (20,893) $ (1,596) $ (1,367) $ (431)

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:

	September 30,	September 30,	December 31,	December 31,	September 30,
		2021		2020	2020
Fair value interest rate risk
Financial assets	$	653,498	$	988,587	$ 1,176,806
Financial liabilities		3,034,830		2,274,865	1,778,712
Cash flow interest rate risk
Financial assets		2,220,152		2,185,789	1,805,676

33 -

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 nine months ended September 30, 2021 and 2020 would have increased/decreased by $16,651 thousand and $13,543 thousand, respectively.

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 nine months ended September 30, 2021 and 2020 would have increased/decreased by $1,321 thousand and $2,520 thousand, respectively, as a result of the changes in fair value of financial assets at FVTPL.

2) Credit risk

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

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

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

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

3) Liquidity risk

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

34 -

The Group relies on bank borrowings as a significant source of liquidity. As of September 30, 2021, December 31, 2020 and September 30, 2020, the Group had available unutilized short-term bank loan facilities set out in below.

Financing facilities

	September 30,	September 30,	December 31,	December 31,	September 30,	September 30,
		2021		2020		2020
Unsecured bank overdraft facilities,
reviewed annually and payable on
demand
Amount used	$	832,966	$	1,388,436	$	1,041,000
Amount unused		3,347,034		1,930,200		2,209,000
	$	4,180,000	$	3,318,636	$	3,250,000
Secured bank overdraft facilities
Amount used	$	617,996	$	552,395	$	390,000
Amount unused		81,960		169,493		10,000
	$	699,956	$	721,888	$	400,000

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

Note: Before June 2020, Chen Chien Yuan was a related party in substance.

b. Operating expenses

Related Party Category Associate	For the Three Months Ended September 30 2021 2020 $ 12 $ -	For the Three Months Ended September 30 2021 2020 $ 12 $ -	For the Nine Months Ended September 30	For the Nine Months Ended September 30	For the Nine Months Ended September 30
		2021 $ 12		2021 $ 12	2020 $ 4

35 -

c. Property, plant and equipment

For the Three Months Ended September 30	For the Three Months Ended September 30		For the Nine Months Ended September 30	For the Nine Months Ended September 30	For the Nine Months Ended September 30
			2021 2020 $ - $ 550 For the Nine Months Ended September 30
		2021 2020 $ - $ 4,453 December 31, 2020 September 30, 2020 $ 1,685 $ 2,044 921 1,117 $ 2,606 $ 3,161 For the Nine Months Ended September 30 2021 2020 $ 8 $ 12 5 6 $ 13 $ 18 $ - $ 684
2021 $ 1 1 $ 2 $ -	2020 $ 6 3 $ 9 $ 225			2021 $ 8 5 $ 13 $ -	2020 $ 12 6 $ 18 $ 684

Lease expenses included expenses relating to short-term leases.

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

36 -
e. Acquisition of other assets

	For the Three	For the Three	For the Three	Months Ended	Months Ended	Months Ended	For the Nine	For the Nine	Months Ended	Months Ended	Months Ended
	Related Party	September 30						September		30
Line Item	Category	2021			2020		2021			2020
Intangible assets	Associate	$ 724		$		-	$	724	$		-
Prepayments
	Related Party	September 30,				December		31,	September 30,
Line Item	Category			2021			2020			2020
Prepaid expense	The legal representative		$		-		$	-	$	74
(including other	of the Corporation’s
current assets)	director

f. Prepayments

g. Compensation of key management personnel

Short-term employee benefits Post-employment benefits	For the Three Months Ended September 30 2021 2020 $ 3,500 $ 13,225 79 65 $ 3,579 $ 13,290	For the Three Months Ended September 30 2021 2020 $ 3,500 $ 13,225 79 65 $ 3,579 $ 13,290	For the Nine Months Ended September 30	For the Nine Months Ended September 30	For the Nine Months Ended September 30
		2021 $ 3,500 79 $ 3,579		2021 $ 33,328 236 $ 33,564	2020 $ 37,419 205 $ 37,624

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 bank borrowings:

		September 30,	September 30,	December 31,	December 31,	September 30,	September 30,
			2021		2020		2020
Financial	assets at amortized cost - current	$	1,710	$	3,964	$	-
Property,	plant and equipment		823,880		706,058		504,585
		$	825,590	$	710,022	$	504,585

28. OTHER ITEMS

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.

37 -

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:

September 30, 2021

		Foreign		Carrying
		Currency	Exchange Rate	Amount
Financial assets
Monetary items
USD	$	62,822	27.85 (USD:NTD)	$ 1,751,264
USD		79,364	6.4854 (USD:RMB)	2,210,287
USD		2,644	23,098 (USD:VND)	73,635
RMB		49,372	4.3050 (RMB:NTD)	212,546
RMB		10,127	0.1546 (RMB:USD)	43,597
Non-monetary items
Financial assets at FVTPL - non-current
USD		1,382	27.85 (USD:NTD)	38,483
Financial liabilities
Monetary items
USD		60,991	27.85 (USD:NTD)	1,698,599
USD		1,929	6.4854 (USD:RMB)	53,723
USD		6,947	23,098 (USD:VND)	193,474
RMB		5,818	4.3050 (RMB:NTD)	25,046
December 31, 2020
		Foreign		Carrying
		Currency	Exchange Rate	Amount
Financial assets
Monetary items
USD	$	45,597	28.48 (USD:NTD)	$ 1,298,603
USD		89,596	6.5423 (USD:RMB)	2,551,694
USD		4,686	25,689 (USD:VND)	133,457
RMB		64,678	4.3770 (RMB:NTD)	283,096
RMB		10,167	0.1537 (RMB:USD)	44,501
Non-monetary items
Financial assets at FVTPL - non-current
USD		1,342	28.48 (USD:NTD)	51,579
Financial liabilities
Monetary items
USD		69,530	28.48 (USD:NTD)	1,980,214
USD		4,083	6.5423 (USD:RMB)	116,284
RMB		8,095	4.3770 (RMB:NTD)	35,432

38 -

September 30, 2020

		Foreign		Carrying
		Currency	Exchange Rate	Amount
Financial assets
Monetary items
USD	$	42,211	29.10 (USD:NTD)	$ 1,228,340
USD		74,800	6.8101 (USD:RMB)	2,176,680
USD		5,486	25,752 (USD:VND)	159,643
RMB		39,469	4.2690 (RMB:NTD)	168,493
RMB		10,107	0.1467 (RMB:USD)	43,147
Non-monetary items
Financial assets at FVTPL - non-current
USD		1,500	29.10 (USD:NTD)	43,717
Financial liabilities
Monetary items
USD		63,921	29.10 (USD:NTD)	1,860,101
USD		3,002	6.8101 (USD:RMB)	87,358
RMB		7,446	4.2690 (RMB:NTD)	31,787

The Group is mainly exposed to the USD and 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 VND THB SGD	For the Three Months Ended September 30	For the Three Months Ended September 30
	2021 Exchange Rate Net Foreign Exchange Losses 1 (NTD:NTD) $ 757 27.85 (USD:NTD) (173) 4.305 (RMB:NTD) 10,075 0.00121 (VND:NTD) 1,277 0.8284 (THB:NTD) 638 20.47 (SGD:NTD) 3 $ 12,577	2020
		Exchange Rate Net Foreign Exchange Gains 1 (NTD:NTD) $ 8,891 29.817 (USD:NTD) 2,733 4.259 (RMB:NTD) (93,002) 0.00116 (VND:NTD) (203) - - - - $ (81,581)

39 -

For the Nine Months Ended September 30

	For the Nine Months	Ended September 30
Foreign Currency NTD USD RMB VND THB SGD	2021 Exchange Rate Net Foreign Exchange Losses 1 (NTD:NTD) $ 7,351 27.85 (USD:NTD) 263 4.305 (RMB:NTD) (26,313) 0.00121 (VND:NTD) 1,083 0.8284 (THB:NTD) 1,326 20.47 (SGD:NTD) 7 $ (16,283)	2020
		Exchange Rate Net Foreign Exchange Gains 1 (NTD:NTD) $ 14,631 29.817 (USD:NTD) (10,652) 4.259 (RMB:NTD) (61,628) 0.00116 (VND:NTD) (1,483) - - - - $ (59,132)

30. SEPARATELY DISCLOSED ITEMS

a. Information about significant transactions and investees:
1) Financing provided to others (Table 1)
2) Endorsements/guarantees provided (Table 2)
3) Marketable securities held (excluding investments in subsidiaries, associates and joint ventures) (Table 3)
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)
40 -
b. Information on investees (Table 6)
c. Information on investments in mainland China:
1) Information on any investee company in mainland China, showing the name, principal business activities, paid-in capital, method of investment, inward and outward remittance of funds, ownership percentage, net income of investees, investment income or loss, carrying amount of the investment at the end of the period, repatriations of investment income, and limit on the amount of investment in the mainland China area (Table 7)
2) Any of the following significant transactions with investee companies in mainland China, either directly or indirectly through a third party, and their prices, payment terms, and unrealized gains or losses (Tables 1, 2, 4, 5 and 8)
- a) The amount and percentage of purchases and the balance and percentage of the related payables at the end of the period
- b) The amount and percentage of sales and the balance and percentage of the related receivables at the end of the period
- c) The amount of property transactions and the amount of the resultant gains or losses
- d) The balance of negotiable instrument endorsements or guarantees or pledges of collateral at the end of the period and the purposes
- e) The highest balance, the end of period balance, the interest rate range, and total current period interest with respect to 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.

41 -

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 loss 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 2021 2020 $ 7,213,653 $ 6,655,089 231,203 335,534 $ 7,444,856 $ 6,990,623		Loss	Loss
		2021 $ 7,213,653 231,203 $ 7,444,856		2021 $ 821,919 14,407 836,326 50,219 (29,671) 21,662 (16,283) 36,834 3,577 (25,715) (518,781) $ 358,208	2020 $ 1,465,168 100,556 1,565,724 31,516 (3,688) 27,927 (59,132) 14,739 8,658 (20,701) (382,975) $ 1,182,068

The above segment revenues and results were generated from the transactions with external customers. There were no inter-segment transactions for the nine months ended September 30, 2021 and 2020.

Segment profit represented the profit before tax earned by each segment without general and administrative expenses, interest income, net foreign exchange loss, 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.

42 -

TABLE 1

SYNCMOLD ENTERPRISE CORPORATION AND SUBSIDIARIES

FINANCING PROVIDED TO OTHERS FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2021 (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 $ - - - $1,115,843 $2,231,686
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 - - - $1,115,843 $2,231,686
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 250,000 100,000 - - Short-term - Operating capital - - - $1,115,843 $2,231,686
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 200,000 100,000 - - Short-term - Operating capital - - - $1,115,843 $2,231,686
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 300,000 100,000 - 1.55 Short-term - Operating capital - - - $1,115,843 $2,231,686
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 55,700 55,700 - - Short-term - Operating capital - - - $1,115,843 $2,789,608
Corp. Precise Mold Co., related parties financing (20% of the net worth (50% of the net worth
Ltd. of the Corporation) of the Corporation)
Forever Business Other receivables from Yes 83,550 - - - Short-term - Operating capital - - - $1,115,843 $2,789,608
Development related parties financing (20% of the net worth (50% of the net worth
Limited of the Corporation) of the Corporation)
Dongguan Khuan Other receivables from Yes 83,550 55,700 - - Short-term - Operating capital - - - $1,115,843 $2,789,608
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 208,875 153,175 41,775 0.00 Short-term - Operating capital - - - $1,115,843 $2,789,608
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 83,550 55,700 - - Short-term - Operating capital - - - $1,115,843 $2,789,608
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 83,550 55,700 - - Short-term - Operating capital - - - $1,115,843 $2,789,608
(Samoa) Corp. related parties financing (20% of the net worth (50% of the net worth
of the Corporation) of the Corporation)
Full Big Limited Other receivables from Yes 83,550 - - - Short-term - Operating capital - - - $1,115,843 $2,789,608
related parties financing (20% of the net worth (50% of the net worth
of the Corporation) of the Corporation)
Zhongshan Fulfil Tech. Other receivables from Yes 83,550 - - - Short-term - Operating capital - - - $1,115,843 $2,789,608
Co., Ltd. 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 83,550 83,550 - - Short-term - Operating capital - - - $1,115,843 $2,789,608
Co., Ltd. related parties financing (20% of the net worth (50% of the net worth
of the Corporation) of the Corporation)
Fuzhou Fulfil Tech Other receivables from Yes 83,550 - - - Short-term - Operating capital - - - $1,115,843 $2,789,608
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 83,550 55,700 - - Short-term - Operating capital - - - $1,115,843 $2,789,608
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 25,065 25,065 11,140 0.00 Short-term - Operating capital - - - $1,115,843 $2,789,608
(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 125,325 97,475 41,775 0.00 Short-term - Operating capital - - - $1,115,843 $2,789,608
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 403,825 320,275 236,725 0.00 Short-term - Operating capital - - - $1,115,843 $2,789,608
Corporation related parties financing (20% of the net worth (50% of the net worth
of the Corporation) of the Corporation)
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(Continued)

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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
3 Full Big Limited Fullking Development Other receivables from Yes $ 22,280 $ 22,280 $ 22,280 0.00 Short-term $ - Operating capital $ - - - $1,115,843 $2,789,608
Limited related parties financing (20% of the net worth (50% of the net worth
of the Corporation) of the Corporation)
4 Fuzhou Fulfil Tech Co., Ltd. Fujian Khuan Hua Other receivables from Yes 68,709 42,943 - - Short-term - Operating capital - - - $1,115,843 $2,789,608
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 68,709 55,826 - - Short-term - Operating capital - - - $1,115,843 $2,789,608
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 68,709 68,709 - - Short-term - Operating capital - - - $1,115,843 $2,789,608
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 38,649 38,649 - - Short-term - Operating capital - - - $1,115,843 $2,789,608
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 34,354 34,354 - - Short-term - Operating capital - - - $1,115,843 $2,789,608
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 42,943 42,943 - - Short-term - Operating capital - - - $1,115,843 $2,789,608
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 34,354 34,354 - - Short-term - Operating capital - - - $1,115,843 $2,789,608
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 September 2021.

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

(Concluded)

44 -

TABLE 2

SYNCMOLD ENTERPRISE CORPORATION AND SUBSIDIARIES

ENDORSEMENTS/GUARANTEES PROVIDED FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2021 (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 Syncmold Enterprise (Samoa) Subsidiary $1,673,765 $ 55,700 $ - $ - $ - 0.00 $2,789,608 Y N N
Corp. (30% of the net worth of (US$ 2,000 (50% of the net worth of
the Corporation) thousand ) the Corporation)
Fullking Development Subsidiary $1,673,765 278,500 - - - 0.00 $2,789,608 Y N N
Limited (30% of the net worth of (US$ 10,000 (50% of the net worth of
the Corporation) thousand ) the Corporation)
Forever Business Subsidiary $1,673,765 612,700 - - - 0.00 $2,789,608 Y N N
Development Limited (30% of the net worth of (US$ 22,000 (50% of the net worth of
the Corporation) thousand ) the Corporation)
Gatetech Technology Inc. Subsidiary $1,673,765 200,000 200,000 50,000 - 3.58 $2,789,608 Y N N
(30% of the net worth of (50% of the net worth of
the Corporation) the Corporation)
Leohab Enterprise Co., Ltd. Subsidiary $1,673,765 257,850 257,850 145,000 - 4.62 $2,789,608 Y N N
(30% of the net worth of (US$ 2,500 (US$ 2,500 (50% of the net worth of
the Corporation) thousand ) thousand ) the Corporation)
(NT$ 188,225 (NT$ 188,225
thousand ) thousand )
(Note)
Syncmold Enterprise Subsidiary $1,673,765 557,000 557,000 161,530 - 9.98 $2,789,608 Y N N
Vietnam Co., Ltd. (30% of the net worth of (US$ 20,000 (US$ 20,000 (50% of the net worth of
the Corporation) thousand ) thousand ) the Corporation)
1 Leohab Enterprise Co., Ltd. Commuwell Enterprise Subsidiary $128,402 81,340 - - - 0.00 $256,803 N N N
(THAILAND) Co., Ltd. (50% of the net worth of (THB 98,189 (100% of the net worth
the Corporation) thousand ) of the Corporation)
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Note: By the resolution of the board of directors of the Corporation on December 2, 2020, in order to obtain relatively favorable bank credit conditions, it is proposed that Syncmold that Syncmold Enterprise Corporation provide an endorsement guarantee within the limit of NT$260,000 thousand for Leohab Enterprise Co., Ltd. As of September 30, 2021, the remaining NT$2,150 thousand has not been implemented.

45 -

TABLE 3

SYNCMOLD ENTERPRISE CORPORATION AND SUBSIDIARIES

MARKETABLE SECURITIES HELD SEPTEMBER 30, 2021

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

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September 30, 2021
Relationship with the
Holding Company Name Type and Name of Marketable Securities Financial Statement Account Number of Carrying Percentage of Note
Holding Company Fair Value
Shares Amount Ownership (%)
Syncmold Enterprise Corporation Stock
Gigastone Corporation - Financial assets at FVTPL - non-current 847,011 $ 8,190 1.67 $ 8,190 (Notes 2 and 6)
Tiga Gaming Inc. - Financial assets at FVTPL - non-current 1,332,132 7,345 5.06 7,345 (Notes 3 and 6)
Foxfortune Technology Ventures Ltd., - Financial assets at FVTPL - non-current 1,000,000 26,950 5.80 26,950 (Notes 4 and 6)
Hercules BioVenture, L.P. - Financial assets at FVTPL - non-current 342,105 11,533 2.63 11,533 (Notes 4 and 6)
Winmate Inc. - Financial assets at FVTPL - current 1,038,000 78,056 1.44 78,056 (Notes 2 and 6)
Private funds
China Development of Healthcare Venture of - Financial assets at FVTPL - non-current 13,122,465 7,895 0.96 7,895 (Notes 4 and 6)
Limited Partnership
Structured commodity
Dongguan Khuan Huang Precise Mold People’s profit 268 - Financial assets at FVTPL - current - 21,600 - 21,600 (Notes 5 and 6)
Plastic Co., Ltd. ICBC structured deposits - Financial assets at FVTPL - current - 64,420 - 64,420 (Notes 5 and 6)
Zhongshan Fulfil Tech. Co., Ltd. Monthly profit 21070166 - Financial assets at FVTPL - current - 43,055 - 43,055 (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 September 30, 2021.

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

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

Note 5: The structured commodity is calculated at its contract worth as of September 30, 2021.

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

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

46 -

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 NINE MONTHS ENDED SEPTEMBER 30, 2021

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

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Notes/Accounts
Transaction Details Abnormal Transaction
Receivable (Payable)
Buyer Related Party Relationship Note
Purchase/ % of % of
Amount Payment Terms Unit Price Payment Terms Ending Balance
Sale Total Total
Syncmold Enterprise Corporation Zhongshan Fulfil Tech. Co., Ltd. Subsidiary Purchase $ 1,016,719 43 Note 1 $ - - $ (524,228) 47
Suzhou Fulfil Electronics Co., Ltd. Subsidiary Purchase 835,507 35 Note 1 - - (367,713) 33
Fuzhou Fulfil Tech Co., Ltd. Subsidiary Purchase 316,489 13 Note 1 - - (153,893) 14
Chongqing Fulfil Tech Co., Ltd. Subsidiary Purchase 135,320 6 Note 1 - - (56,665) 5
Zhongshan Fulfil Tech. Co., Ltd. Dongguan Khuan Huang Precise Mold Plastic Co., Indirect subsidiary Purchase 193,257 13 Note 1 - - (46,270) 8
Ltd.
Fuqing Fuqun Electronic Hardware Tech Co., Ltd. Indirect subsidiary Purchase 106,106 7 Note 1 - - (27,368) 5
Suzhou Fulfil Electronics Co., Ltd. Kunshan Fulfil Tech Co., Ltd. Indirect subsidiary Purchase 366,008 16 Note 1 - - (119,662) 20
Fuzhou Fulfil Tech Co., Ltd. Fuqing Fuqun Electronic Hardware Tech Co., Ltd. Indirect subsidiary Purchase 295,469 28 Note 1 - - (44,684) 15
Suzhou Fulfil Electronics Co., Ltd. Dongguan Khuan Huang Precise Mold Plastic Co., Indirect subsidiary Purchase 110,794 5 Note 1 - - (30,911) 5
Ltd.
Fuqing Fuqun Electronic Hardware Tech Co., Ltd. Indirect subsidiary Purchase 149,798 7 Note 1 - - (39,685) 7
Zhongshan Fulfil Tech. Co., Ltd. Syncmold Enterprise Corporation Parent company Sales (1,016,719) 54 Note 1 - - 524,228 58
Suzhou Fulfil Electronics Co., Ltd. Syncmold Enterprise Corporation Parent company Sales (835,507) 34 Note 1 - - 367,713 34
Fuzhou Fulfil Tech Co., Ltd. Syncmold Enterprise Corporation Parent company Sales (316,489) 25 Note 1 - - 153,893 18
Chongqing Fulfil Tech Co., Ltd. Syncmold Enterprise Corporation Parent company Sales (135,320) 30 Note 1 - - 56,665 26
Dongguan Khuan Huang Precise Zhongshan Fulfil Tech. Co., Ltd. Indirect subsidiary Sales (193,257) 47 Note 1 - - 46,270 42
Mold Plastic Co., Ltd.
Fuqing Fuqun Electronic Hardware Zhongshan Fulfil Tech. Co., Ltd. Indirect subsidiary Sales (106,106) 19 Note 1 - - 27,368 24
Tech Co., Ltd.
Kunshan Fulfil Tech Co., Ltd. Suzhou Fulfil Electronics Co., Ltd. Indirect subsidiary Sales (366,008) 100 Note 1 - - 119,662 100
Fuqing Fuqun Electronic Hardware Fuzhou Fulfil Tech Co., Ltd. Indirect subsidiary Sales (295,469) 54 Note 1 - - 44,684 40
Tech Co., Ltd.
(Continued)
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Note 1: Payment terms are the same as the payment terms of non-related parties.

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

(Concluded)

48 -

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 SEPTEMBER 30, 2021

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

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Overdue Amount
Allowance for
Ending Balance Turnover Received in
Company Name Related Party Relationship Impairment
(Note 1) Rate Amount Actions Taken Subsequent
Loss
Period
Grand Advance Inc. Syncmold Enterprise Corporation Parent company $ 236,725 - $ - - $ 13,925 $ -
(Note 1)
Fuzhou Fulfil Tech Co., Ltd. Syncmold Enterprise Corporation Parent company 153,893 - - - 37,440 -
Zhongshan Fulfil Tech. Co., Ltd. Syncmold Enterprise Corporation Parent company 524,228 - - - 93,554 -
Suzhou Fulfil Electronics Co., Ltd. Syncmold Enterprise Corporation Parent company 367,713 - - - 57,026 -
Kunshan Fulfil Tech Co., Ltd. Suzhou Fulfil Electronics Co., Ltd. Indirect subsidiary 119,662 - - - 58,394 -
Suzhou Leoho Electronics Co., Ltd. Leohab Enterprise Co., Ltd. Indirect subsidiary 101,118 - - - 10,015 -
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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.

49 -

TABLE 6

SYNCMOLD ENTERPRISE CORPORATION AND SUBSIDIARIES

INFORMATION ON INVESTEES FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2021 (In Thousands of New Taiwan Dollars, Unless Stated Otherwise)

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Original Investment Amount As of September 30, 2021 Net Income
Share of Profit
Investor Company Investee Company Location Main Businesses and Products September 30, December 31, Number of Carrying (Loss) of the Note
% (Loss)
2021 2020 Shares Amount Investee
Syncmold Enterprise Corporation Syncmold Enterprise (Samoa) Corp. Samoa Trading and related import and export businesses of metal $ 110,598 $ 110,598 3,546 100.00 $ 2,138,042 $ 45,444 $ 43,796 (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 2,751,032 57,757 58,278 (Note 1)
Syncmold Enterprise (USA) Corp. USA Trading, import and export in electronic parts 32 32 - 100.00 (2,776) (309) (309) (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 35.63 124,891 19,989 7,596 (Note 2)
export businesses
Corebio Technologies Co., Ltd. Taiwan Medical technology and precision instrument wholesale and 52,000 52,000 5,200 38.29 31,824 (10,689) (4,093) (Note 2)
retail
Smart Automation Technology Inc. Taiwan Software design services 15,680 - 1,568 49.00 15,754 (2,595) 74 (Note 2)
Leohab Enterprise Co., Ltd. Taiwan Precision hardware components manufacturing 232,677 232,677 16,620 70.00 230,634 (4) (1,067) (Note 2)
Gatetech Technology Inc. Taiwan Precise molding and magnesium alloy die caster manufacturing 553,815 553,815 42,207 73.43 621,516 (22,122) (17,212) (Note 1)
and transaction business
Syncmold Enterprise Vietnam Co., Ltd. Vietnam Trading, import and export and investment in electronic parts 302,444 302,444 - 100.00 239,465 (23,277) (23,277) (Note 2)
Syncmold Enterprise (MALAYSIA) Sdn. Malaysia Trading, import and export in electronic parts, customer support 7,192 3,639 - 100.00 3,027 (1,968) (1,968) (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 2,436 1,910 1,910 (Note 2)
Ltd. components and parts design
Syncmold Enterprise (THAILAND) Co., Thailand Trading, import and export and investment in electronic parts 33,638 19,920 - 100.00 18,318 (7,930) (7,930) (Note 2)
Ltd.
Grand Advance Inc. Canford International Limited Samoa Import and export trade and investment business 119,342 119,342 - 100.00 1,332,075 (61,272) (61,272) (Note 2)
Fullking Development Limited Hong Kong Import and export trade and investment business 160,175 160,175 - 100.00 840,376 155,105 155,085 (Note 2)
Full Glary Holding Limited Hong Kong Import and export trade and investment business 259,720 259,720 - 100.00 286,403 (20,321) (19,121) (Note 2)
Syncmold Enterprise (Samoa) Corp. Full Big Limited Samoa Reinvestment in subsidiaries in mainland China and 16,643 16,643 - 100.00 230,795 432 432 (Note 2)
international trade
Forever Business Development Limited Samoa Reinvestment in subsidiaries in mainland China and 125,957 125,957 - 100.00 331,733 1,895 1,937 (Note 2)
international trade
Full Celebration Limited Samoa Reinvestment in subsidiaries in mainland China and 147,710 147,710 - 100.00 205,646 (38,861) (38,861) (Note 2)
international trade
Gatetech Technology Inc. Gatech Holdings Ltd. Samoa General investment business 647,041 647,041 20,130 100.00 609,848 (6,873) (6,873) (Note 2)
Gatech Holdings Ltd. Gatech International Ltd. Samoa General investment business 657,284 657,284 20,268 100.00 609,848 (6,813) (6,813) (Note 2)
Leohab Enterprise Co., Ltd. Sweet International Group Ltd. British Virgin General investment business 280,368 280,368 - 100.00 500,912 23,286 24,172 (Note 2)
Islands
Sweet International Group Ltd. Lucky King Holdings Ltd. Mauritius General investment business 280,368 280,368 - 100.00 495,703 23,049 23,286 (Note 2)
Lucky King Holdings Ltd. Commuwell Enterprise (Thailand) Co., Thailand Plastic shot and hardware components manufacturing 113,236 113,236 - 100.00 178,411 27,293 27,293 (Note 2)
Ltd.
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Note 1: Calculated based on the reviewed 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.

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TABLE 7

SYNCMOLD ENTERPRISE CORPORATION AND SUBSIDIARIES

INFORMATION ON INVESTMENTS IN MAINLAND CHINA FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2021 (In Thousands of New Taiwan Dollars, Unless Stated Otherwise)

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Accumulated Remittance of Funds Accumulated
Accumulated
Outward Outward
% Ownership of Carrying Amount Repatriation of
Remittance for Remittance for
Net Income (Loss) Direct or Investment as of Investment
Investee Company Main Businesses and Products Paid-in Capital Method of Investment Investment from Investment from
Outward Inward of the Investee Indirect Gain (Loss) September 30, Income as of
Taiwan as of Taiwan as of
Investment 2021 September 30,
December 31, September 30,
2021
2020 2021
Fuzhou Fulfil Tech Co., Ltd. Electronic parts processing and $ 41,616 Invested through $ 58,012 $ - $ - $ 58,012 $ 83,977 100.00 $ 83,977 $ 830,669 $ 2,201,932
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 106,560 Invested through 37,765 - - 37,765 (17,576) 100.00 (17,576) 289,984 -
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 56,790 Invested through - - - - 13,145 100.00 13,145 167,555 108,559
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 120,413 Invested through Forever - - - - 1,483 100.00 1,483 249,636 -
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 17,772 Invested through Canford - - - - (61,272) 100.00 (61,272) 1,332,058 1,187,246
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 146,552 Invested through Fullking - - - - 155,105 100.00 155,105 903,475 1,449,955
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 225,042 Invested through Full 167,100 - - 167,100 (20,321) 100.00 (20,321) 286,768 -
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, 133,785 Invested through Full - - - - (38,861) 100.00 (38,861) 205,635 504,753
related imports and exports of all Celebration Limited (Note 2) (US$ 18,124
electronic, plastic and hardware thousand)
parts
(Continued)
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Note 1: Calculated based on the reviewed 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.

(Concluded)

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TABLE 8

SYNCMOLD ENTERPRISE CORPORATION AND SUBSIDIARIES

INTERCOMPANY RELATIONSHIPS AND SIGNIFICANT INTERCOMPANY TRANSACTIONS FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2021 (In Thousands of New Taiwan Dollars, Unless Stated Otherwise)

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Transaction Details % of Total
No. Relationship
Investee Company Counterparty Payment Terms Sales or Asset
(Note 1) (Note 2) Financial Statement Account Price
(Note 3)
0 Syncmold Enterprise Corporation Gatetech (Suzhou) Technology Co., Ltd. 1 Other receivables from related parties $ 14,040 Based on the contract between both parties 0
1 Zhongshan Fulfil Tech. Co., Ltd. Syncmold Enterprise Corporation 2 Sale 1,016,719 No significant difference with non-related parties 14
Syncmold Enterprise Corporation 2 Trade receivables from related parties 524,228 No significant difference with non-related parties 4
2 Dongguan Khuan Huang Precision Mold Zhongshan Fulfil Tech. Co., Ltd. 3 Sale 193,257 No significant difference with non-related parties 3
Plastic Co., Ltd. Zhongshan Fulfil Tech. Co., Ltd. 3 Trade receivables from related parties 46,270 No significant difference with non-related parties 0
Fuzhou Fulfil Tech Co., Ltd. 3 Sale 61,504 No significant difference with non-related parties 1
Fuzhou Fulfil Tech Co., Ltd. 3 Trade receivables from related parties 12,877 No significant difference with non-related parties 0
Suzhou Fulfil Electronics Co., Ltd. 3 Sale 110,794 No significant difference with non-related parties 1
Suzhou Fulfil Electronics Co., Ltd. 3 Trade receivables from related parties 30,911 No significant difference with non-related parties 0
Syncmold Enterprise Corporation 2 Trade receivables from related parties 11,812 No significant difference with non-related parties 0
3 Fuqing Fuqun Electronic Hardware Tech Fuzhou Fulfil Tech Co., Ltd. 3 Sale 295,469 No significant difference with non-related parties 4
Co., Ltd. Fuzhou Fulfil Tech Co., Ltd. 3 Trade receivables from related parties 44,684 No significant difference with non-related parties 0
Suzhou Fulfil Electronics Co., Ltd. 3 Sale 149,798 No significant difference with non-related parties 2
Suzhou Fulfil Electronics Co., Ltd. 3 Trade receivables from related parties 39,685 No significant difference with non-related parties 0
Zhongshan Fulfil Tech. Co., Ltd. 3 Sale 106,106 No significant difference with non-related parties 1
Zhongshan Fulfil Tech. Co., Ltd. 3 Trade receivables from related parties 27,368 No significant difference with non-related parties 0
4 Grand Advance Inc. Syncmold Enterprise Corporation 2 Other receivables from related parties - 236,725 Based on the contract between both parties 2
financing
Fullking Development Limited 3 Other receivables from related parties - 41,775 Based on the contract between both parties 0
financing
Syncmold Enterprise (USA) Corp. 3 Other receivables from related parties - 11,140 Based on the contract between both parties 0
financing
5 Suzhou Fulfil Electronics Co., Ltd. Syncmold Enterprise Corporation 2 Sale 835,507 No significant difference with non-related parties 11
Syncmold Enterprise Corporation 2 Trade receivables from related parties 367,713 No significant difference with non-related parties 3
6 Full Big Limited Fullking Development Limited 3 Other receivables from related parties - 22,280 Based on the contract between both parties 0
financing
7 Fujian Khuan Hua Precise Mold Co., Ltd. Fuzhou Fulfil Tech Co., Ltd. 3 Trade receivables from related parties 21,642 No significant difference with non-related parties 0
8 Kunshan Fulfil Tech Co., Ltd. Suzhou Fulfil Electronics Co., Ltd. 3 Sale 366,008 No significant difference with non-related parties 5
Suzhou Fulfil Electronics Co., Ltd. 3 Trade receivables from related parties 119,662 No significant difference with non-related parties 1
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(Continued)

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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 Chongqing Fulfil Tech Co., Ltd. Syncmold Enterprise Corporation 2 Sale $ 135,320 No significant difference with non-related parties 2
Syncmold Enterprise Corporation 2 Trade receivables from related parties 56,665 No significant difference with non-related parties 0
Suzhou Fulfil Electronics Co., Ltd. 3 Sale 89,215 No significant difference with non-related parties 1
Suzhou Fulfil Electronics Co., Ltd. 3 Trade receivables from related parties 31,722 No significant difference with non-related parties 0
10 Fuzhou Fulfil Tech Co., Ltd. Syncmold Enterprise Corporation 2 Sale 316,489 No significant difference with non-related parties 4
Syncmold Enterprise Corporation 2 Trade receivables from related parties 153,893 No significant difference with non-related parties 1
11 Syncmold Enterprise (Samoa) Corp. Syncmold Enterprise Corporation 2 Other receivables from related parties - 41,775 Based on the contract between both parties 0
financing
Fujian Khuan Hua Precise Mold Co., Ltd. 3 Other receivables from related parties - 43,142 Based on the contract between both parties 0
dividend
12 Gatetech (Suzhou) Technology Co., Ltd. Gatetech Technology Inc. 3 Sale 49,617 No significant difference with non-related parties 1
Gatetech Technology Inc. 3 Trade receivables from related parties 49,016 No significant difference with non-related parties 0
13 Suzhou Leoho Electronics Co., Ltd. Leohab Enterprise Co., Ltd. 3 Trade receivables from related parties 101,188 No significant difference with non-related parties 1
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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)

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TABLE 9

SYNCMOLD ENTERPRISE CORPORATION AND SUBSIDIARIES

INFORMATION ON MAJOR SHAREHOLDERS SEPTEMBER 30, 2021

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Shares
Name of Major Shareholder Number of Percentage of
Shares Ownership (%)
Chen Chiu-Lang 7,128,211 5.76
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Note 1: The information of major shareholders presented in this table is provided by the Taiwan Depository & Clearing Corporation based on the number of ordinary shares and preferred shares held by shareholders with ownership of 5% or greater, that have been issued without physical registration (including treasury shares) by the Company as of the last business day for the current quarter. The share capital in the consolidated financial statements may differ from the actual number of shares that have been issued without physical registration because of different preparation basis.
Note 2: If a shareholder delivers the shareholdings to the trust, the above information will be disclosed by the individual truster who opened the trust account. For shareholders who declare insider shareholdings with ownership greater than 10% in accordance with the Security and Exchange Act, the shareholdings include shares held by shareholders and those delivered to the trust over which shareholders have rights to determine the use of trust property. For information relating to insider shareholding declaration, please refer to Market Observation Post System.
55 -

AI assistant

SYNCMOLD — Interim / Quarterly Report 2021

51868_rns_2021-11-09_06e78efd-9116-4472-b4f7-848f16ab6b20.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

SYNCMOLD ENTERPRISE CORPORATION AND SUBSIDIARIES

SYNCMOLD ENTERPRISE CORPORATION AND SUBSIDIARIES

SYNCMOLD ENTERPRISE CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

SYNCMOLD ENTERPRISE CORPORATION AND SUBSIDIARIES

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

SYNCMOLD ENTERPRISE CORPORATION AND SUBSIDIARIES

SYNCMOLD ENTERPRISE CORPORATION AND SUBSIDIARIES

1. GENERAL INFORMATION

2. APPROVAL OF FINANCIAL STATEMENTS

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

4. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

2) Taxation

5. CRITICAL ACCOUNTING JUDGMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY

6. CASH AND CASH EQUIVALENTS

7. FINANCIAL INSTRUMENTS AT FAIR VALUE THROUGH PROFIT OR LOSS

December 31, 2020

8. FINANCIAL ASSETS AT AMORTIZED COST

9. TRADE RECEIVABLES, NET

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

c. Subleases

d. Other lease information

15. INTANGIBLE ASSETS

16. GOODWILL

17. BORROWINGS

b. Short-term bills payable

18. BONDS PAYABLE

19. OTHER PAYABLES

20. RETIREMENT BENEFIT PLANS

21. EQUITY

Ordinary shares

d. Special reserve

22. NET PROFIT

Accrual rate

Amount

23. INCOME TAXES

b. Income tax assessments

24. EARNINGS PER SHARE

Net Profit for the Period

25. FINANCIAL INSTRUMENTS

September 30, 2021

September 30, 2020

c. Categories of financial instruments

1) Market risk

a) Foreign currency risk

Sensitivity analysis

Sensitivity analysis

c) Other price risk

Sensitivity analysis

2) Credit risk

3) Liquidity risk

Financing facilities

26. TRANSACTIONS WITH RELATED PARTIES

c. Property, plant and equipment

27. ASSETS PLEDGED AS COLLATERAL OR FOR SECURITY

28. OTHER ITEMS

29. SIGNIFICANT ASSETS AND LIABILITIES DENOMINATED IN FOREIGN CURRENCIES

September 30, 2021

September 30, 2020

30. SEPARATELY DISCLOSED ITEMS

31. SEGMENT INFORMATION

a. Segment revenue and results

b. Segment total assets

SYNCMOLD Interim / Quarterly Report 2021