SYNCMOLD — Annual Report 2021

Nov 9, 2021

Syncmold Enterprise Corporation

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

INDEPENDENT AUDITORS’ REPORT

The Board of Directors and Shareholders Syncmold Enterprise Corporation

Opinion

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

In our opinion, based on our audits and the report of other auditors (refer to the other matter paragraph), the accompanying financial statements present fairly, in all material respects, the financial position of the Corporation as of December 31, 2021 and 2020, and its financial performance and its cash flows for the years then ended in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers.

Basis for Opinion

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

Key Audit Matters

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

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

Occurrence of Sales Revenue

The sales revenue of the Corporation is mainly generated from the sales of monitor hinge products. Most of the sales were highly concentrated on major customers, which revenue accounted for 62.31% of total sales revenue in 2021. Due to the high frequency and significant amounts of transactions with major customers, the occurrence of sales revenue was deemed as a key audit matter for the year ended December 31, 2021. Refer to Note 4 to the financial statements for the related revenue recognition policies.

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

1. We understood the design and implementation of internal controls and assessed the operating effectiveness of relevant controls.

2. We performed detailed verification tests on the selected samples of sales revenue, and checked transaction vouchers and amount received or reconciliation with customers to confirm the occurrence of sales revenue.

Other Matter

We did not audit the financial statements of associates accounted for using the equity method, these were instead audited by other auditors. Our opinion, insofar as it relates to the amounts included for associates accounted for using the equity method, is based solely on the report of other auditors. As of December 31, 2021 and 2020, the amounts of investments accounted for using the equity method were NT$172,058 thousand and NT$418,523 thousand, respectively, which accounted for 1.91% and 4.54% of the Corporation’s total assets, respectively. For the years ended December 31, 2021 and 2020, share of profit of associates accounted for using the equity method amounted to NT$16,496 thousand and NT$9,671 thousand, respectively, which accounted for 8.12% and 1.00% of the Corporation’s total comprehensive income, respectively.

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

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

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

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

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Auditors’ Responsibilities for the Audit of the Financial Statements

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

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

1. Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

2. Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Corporation’s internal control.

3. Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.

4. Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Corporation’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditors’ report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditors’ report. However, future events or conditions may cause the Corporation to cease to continue as a going concern.

5. Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

6. Obtain sufficient and appropriate audit evidence regarding the financial information of entities or business activities within the Corporation to express an opinion on the financial statements. We are responsible for the direction, supervision, and performance of the audit. We remain solely responsible for our audit opinion.

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

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

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

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

Deloitte & Touche Taipei, Taiwan Republic of China

March 15, 2022

Notice to Readers

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

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

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SYNCMOLD ENTERPRISE CORPORATION

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

ASSETS CURRENT ASSETS Cash (Notes 4 and 6) Financial assets at fair value through profit or loss - current (Notes 4 and 7) Notes receivable (Note 4) Trade receivables, net (Notes 4 and 8) Trade receivables from related parties (Notes 4 and 26) Other receivables from related parties (Notes 4 and 26) Current tax assets (Notes 4 and 21) Inventories (Notes 4 and 9) Other current assets (Note 4) Total current assets NON-CURRENT ASSETS Financial assets at fair value through profit or loss - non-current (Notes 4, 7 and 16) Investments accounted for using the equity method (Notes 4 and 10) Property, plant and equipment (Notes 4, 11, 26 and 27) Right-of-use assets (Notes 4, 12 and 26) Goodwill (Notes 4 and 13) Intangible assets (Notes 4 and 14) Deferred tax assets (Notes 4 and 21) Prepayments for land, property and equipment Net defined benefit assets (Notes 4 and 18) Refundable deposits Total non-current assets TOTAL LIABILITIES AND EQUITY CURRENT LIABILITIES Short-term borrowings (Notes 4 and 15) Financial liabilities at fair value through profit or loss - current (Notes 4 and 7) Notes payable and trade payables Trade payables from related parties (Note 26) Other payables (Note 17) Other payables from related parties (Note 26) Current tax liabilities (Notes 4 and 21) Lease liabilities - current (Notes 4, 12 and 26) Current portion of long-term borrowing (Notes 4, 15 and 27) Other current liabilities Total current liabilities NON-CURRENT LIABILITIES Bonds payable (Notes 4 and 16) Long-term borrowing (Notes 4, 15 and 27) Deferred tax liabilities (Notes 4 and 21) Lease liabilities - non-current (Notes 4, 12 and 26) Guarantee deposits received Other non-current liabilities (Notes 4 and 10) Total non-current liabilities Total liabilities EQUITY Ordinary shares Capital surplus Retained earnings Legal reserve Special reserve Unappropriated earnings Total retained earnings Other equity Exchange differences on translating the financial statements of foreign operations Unrealized gain (loss) of financial assets at fair value through other comprehensive income Total other equity Total equity TOTAL		2021 Amount % $ 516,182 6 81,383 1 268 - 1,072,488 12 230,090 3 24,503 - - - 17,494 - 8,921 - 1,951,329 22 65,430 1 6,425,412 71 231,944 2 10,204 - 324,597 4 13,788 - 58 - 1,250 - 2,898 - 2,008 - 7,077,589 78 $ 9,028,918 100 $ 200,000 2 41 - 18,739 - 1,299,360 15 113,635 1 264,804 3 133,333 2 9,957 - 4,545 - 4,163 - 2,048,577 23 1,166,288 13 48,185 - 105,574 1 287 - 136 - 2,787 - 1,323,257 14 3,371,834 37 1,237,242 14 2,769,331 31 1,001,175 11 635,615 7 700,911 8 2,337,701 26 (698,561) (8) 11,371 - (687,190) (8) 5,657,084 63 $ 9,028,918 100		2020
				Amount % $ 438,447 5 220,572 3 - - 766,631 8 245,735 3 22,565 - 8,474 - 15,838 - 10,354 - 1,728,616 19 70,286 1 6,885,352 75 152,098 2 23,591 - 324,597 3 15,593 - 505 - 17,160 - 2,567 - 2,161 - 7,493,910 81 $ 9,222,526 100 $ 1,214,800 13 - - 6,029 - 1,226,682 13 167,585 2 327,520 4 98,120 1 13,175 - - - 2,934 - 3,056,845 33 - - - - 254,065 3 10,397 - - - 2,522 - 266,984 3 3,323,829 36 1,237,242 14 2,592,857 28 904,665 10 634,020 7 1,165,528 12 2,704,213 29 (639,134) (7) 3,519 - (635,615) (7) 5,898,697 64 $ 9,222,526 100

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

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

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SYNCMOLD ENTERPRISE CORPORATION

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

OPERATING REVENUE (Notes 4 and 26) Sales revenue Other operating revenue Total operating revenue OPERATING COSTS (Notes 4, 9, 20 and 26) GROSS PROFIT OPERATING EXPENSES (Notes 20 and 26) Selling and marketing expenses General and administrative expenses Research and development expenses Expected credit (gain) loss (Notes 4 and 8) Total operating expenses PROFIT FROM OPERATIONS NON-OPERATING INCOME AND EXPENSES Other income (Notes 20 and 26) Other gains and losses Interest income (Note 26) Gain from bargain purchase - acquisition of subsidiaries (Notes 4 and 10) Net foreign exchange gain (Notes 4 and 29) Net gain on financial assets at fair value through profit (Notes 4 and 7) Share of profit (loss) of subsidiaries and associates (Notes 4 and 10) Interest expenses (Note 26) Impairment loss on investment accounted for using the equity method (Notes 4 and 10) Total non-operating income and expenses PROFIT BEFORE INCOME TAX INCOME TAX EXPENSE (Notes 4 and 21) NET PROFIT FOR THE YEAR		2021 Amount % $ 3,689,164 92 330,543 8 4,019,707 100 3,342,422 83 677,285 17 62,783 2 204,838 5 157,429 4 (617) - 424,433 11 252,852 6 49,968 1 759 - 384 - - - 9,069 - 38,362 1 (16,247) - (10,903) - (10,633) - 60,759 2 313,611 8 61,856 2 251,755 6		2020
				Amount % $ 3,597,648 92 333,466 8 3,931,114 100 3,413,366 87 517,748 13 62,610 1 184,044 5 169,754 4 601 - 417,009 10 100,739 3 21,224 1 - - 993 - 19,323 - 32,949 1 40,215 1 924,709 23 (9,767) - - - 1,029,646 26 1,130,385 29 164,647 4 965,738 25 (Continued)

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SYNCMOLD ENTERPRISE CORPORATION

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

OTHER COMPREHENSIVE INCOME (LOSS) Items that will not be reclassified subsequently to profit or loss: Remeasurement of defined benefit plans Share of other comprehensive income of subsidiaries accounted for using the equity method Income tax relating to items that will not be reclassified subsequently to profit or loss Items that may be reclassified subsequently to profit or loss: Exchange differences on translating the financial statements of foreign operations Other comprehensive loss for the year TOTAL COMPREHENSIVE INCOME FOR THE YEAR EARNINGS PER SHARE (Note 22) Basic Diluted		2021 Amount % $ 322 - 10,589 - (64) - (59,427) (1) (48,580) (1) $ 203,175 5 $ 2.03 $ 2.02		2020
				Amount % $ 283 - 2,891 - (57) - (5,350) - (2,233) - $ 963,505 25 $ 7.81 $ 7.73
		$		$

The accompanying notes are an integral part of the financial statements. (With Deloitte & Touche auditors’ report dated March 15, 2022)

(Concluded)

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SYNCMOLD ENTERPRISE CORPORATION

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

Ordinary Shares (Note 19) Capital Surplus (Notes 4 and 19) BALANCE AT JANUARY 1, 2020 $ 1,237,242 $ 2,591,280 Appropriation of 2019 earnings Legal reserve - - Special reserve - - Cash dividends distributed by the Corporation - - - - Unclaimed dividends - 56 Net profit for the year ended December 31, 2020 - - Other comprehensive loss for the year ended December 31, 2020, net of income tax - - Total comprehensive income (loss) for the year ended December 31, 2020 - - Actual acquisition of interests in subsidiaries - 1,521 BALANCE AT DECEMBER 31, 2020 1,237,242 2,592,857 Appropriation of 2020 earnings Legal reserve - - Special reserve - - Cash dividends distributed by the Corporation - - - - Equity component of convertible bonds issued by the company - 175,396 Change in percentage of ownership interests in associates accounted for using the equity method - - Unclaimed dividends - 22 Net profit for the year ended December 31, 2021 - - Other comprehensive loss for the year ended December 31, 2021, net of income tax - - Total comprehensive income (loss) for the year ended December 31, 2021 - - Actual acquisition of interests in subsidiaries - 1,056 Disposal of investment in equity instrument designed as at fair value through other comprehensive income by associates - - BALANCE AT DECEMBER 31, 2021 $ 1,237,242 $ 2,769,331	Retained Earnings (Note 19)	Total $ 2,295,872 - - (556,759) (556,759) - 965,738 (638) 965,100 - 2,704,213 - - (618,621) (618,621) - (2,641) - 251,755 1,871 253,626 - 1,124 $ 2,337,701	Other Equity	Total $ (634,020) - - - - - - (1,595) (1,595) - (635,615) - - - - - - - - (50,451) (50,451) - (1,124) $ (687,190 )	Total Equity $ 5,490,374 - - (556,759) (556,759) 56 965,738 (2,233) 963,505 1,521 5,898,697 - - (618,621) (618,621) 175,396 (2,641) 22 251,755 (48,580) 203,175 1,056 - $ 5,657,084
			Exchange Differences on Translating of the Unrealized Gain (Loss) on Financial Assets at Fair Value Through Other Financial Statements of Foreign Operations Comprehensive Income $ (633,784) $ (236) - - - - - - - - - - - - (5,350) 3,755 (5,350) 3,755 - - (639,134) 3,519 - - - - - - - - - - - - - - - - (59,427) 8,976 (59,427) 8,976 - - - (1,124) $ (698,561 ) $ 11,371
	Legal Reserve Special Reserve Unappropriated Earnings $ 810,515 $ 431,506 $ 1,053,851 94,150 - (94,150 ) - 202,514 (202,514 ) - - (556,759) 94,150 202,514 (853,423) - - - - - 965,738 - - (638) - - 965,100 - - - 904,665 634,020 1,165,528 96,510 - (96,510 ) - 1,595 (1,595 ) - - (618,621) 96,510 1,595 (716,726) - - - - - (2,641) - - - - - 251,755 - - 1,871 - - 253,626 - - - - - 1,124 $ 1,001,175 $ 635,615 $ 700,911

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

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

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SYNCMOLD ENTERPRISE CORPORATION

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

CASH FLOWS FROM OPERATING ACTIVITIES Profit before income tax Adjustments for: Depreciation expenses Amortization expenses Expected credit loss (gain) recognized on trade receivables Net gain on financial assets at fair value through profit or loss Share of profit of subsidiaries and associates Interest expenses Interest income Dividend income (Gain) loss on disposal of property, plant and equipment Write-downs of inventories Net loss (gain) on unrealized foreign currency exchange Impairment loss on investments accounted for using the equity method Gain from bargain purchase Gain on lease modification Changes in operating assets and liabilities Notes receivable Trade receivables Trade receivables from related parties Other receivables from related parties Inventories Other current assets Net defined benefit assets Notes payable and trade payables Trade payables from related parties Other payables Other current liabilities Cash generated from operations Interest paid Income tax paid Net cash (used in) generated from operating activities CASH FLOWS FROM INVESTING ACTIVITIES Purchase of financial assets at fair value through profit or loss Proceeds of financial assets at fair value through profit or loss Acquisition of associates Net cash outflow on acquisition of subsidiaries Payment for property, plant and equipment Proceeds from disposal of property, plant and equipment Decrease (increase) in refundable deposits Decrease in finance receivables from related parties	2021 $ 313,611 32,632 10,735 (617) (38,362) 16,247 10,903 (384) (23,299) (759) 5,881 23,452 10,633 - (3) (268) (305,240) 17,124 (1,938) (7,537) 1,433 (9) 16,229 57,322 (52,897) 1,229 86,118 (11,582) (166,277) (91,741) (87,839) 270,647 (15,680) (297,019) (86,064) 4,513 153 -	2020 $ 1,130,385 22,317 11,288 601 (40,215) (924,709) 9,767 (993) (6,229) 2 - (23,249) - (19,323) (3) 5,216 119,298 (48,753) (5,611) 9,892 24,241 (15) (1,567) 64,994 (26,481) (158) 300,695 (9,392) (111,962) 179,341 (217,884) 67,923 - (563,595) (43,312) 256 (445) 50,000 (Continued)

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SYNCMOLD ENTERPRISE CORPORATION

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

Purchase of intangible assets Increase in prepayments for land, property and equipment Interest received Dividends received Net cash generated from investing activities CASH FLOWS FROM FINANCING ACTIVITIES Proceeds from short-term borrowings Repayments of short-term borrowings Proceeds from issuance of convertible bonds Increase in finance payables from related parties Refunds of guarantee deposits received Proceeds of long-term borrowings Repayments of long-term borrowings Repayment of the principal portion of lease liabilities Dividends paid Net cash used in financing activities NET INCREASE IN CASH CASH AT THE BEGINNING OF THE YEAR CASH AT THE END OF THE YEAR	2021 $ (8,930) (1,250) 384 718,900 497,815 - (1,016,600) 1,337,453 (70,491) 136 56,000 (3,270) (12,946) (618,621) (328,339) 77,735 438,447 $ 516,182	2020 $ (9,722) (17,160) 993 773,562 40,616 487,818 - - (8,050) - - - (12,727) (556,759) (89,718) 130,239 308,208 $ 438,447

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

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

(Concluded)

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

SYNCMOLD ENTERPRISE CORPORATION

1. GENERAL INFORMATION

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

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

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

2. APPROVAL OF FINANCIAL STATEMENTS

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

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

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

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

• b. The IFRSs endorsed by the FSC for application starting from 2021

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

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

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• Note 2: The amendments are applicable to business combinations for which the acquisition date is on or after the beginning of the annual reporting period beginning on or after January 1, 2022.

• Note 3: The amendments are applicable to property, plant and equipment that are brought to the location and condition necessary for them to be capable of operating in the manner intended by management on or after January 1, 2021.

• Note 4: The amendments are applicable to contracts for which the entity has not yet fulfilled all its obligations on January 1, 2022.

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

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

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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 IFRS 17 “Initial Application of IFRS 9 and IFRS 17 -	January 1, 2023
Comparative Information”
Amendments to IAS 1 “Classification of Liabilities as Current or	January 1, 2023
Non-current”
Amendments to IAS 1 “Disclosure of Accounting Policies”	January 1, 2023 (Note 2)
Amendments to IAS 8 “Definition of Accounting Estimates”	January 1, 2023 (Note 3)
Amendments to IAS 12 “Deferred Tax related to Assets and	January 1, 2023 (Note 4)
Liabilities arising from a Single Transaction”

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

• Note 2: The amendments will be applied prospectively for annual reporting periods beginning on or after January 1, 2023.

• Note 3: The amendments are applicable to changes in accounting estimates and changes in accounting policies that occur on or after the beginning of the annual reporting period beginning on or after January 1, 2023.

• Note 4: Except for deferred taxes that will be recognized on January 1, 2022 for temporary differences associated with leases and decommissioning obligations, the amendments will be applied prospectively to transactions that occur on or after January 1, 2022.

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

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4. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

• a. Statement of compliance

The parent company only financial statements have been prepared in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers (the “Regulations”).

• b. Basis of preparation

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

The fair value measurements, which are grouped into Levels 1 to 3 based on the degree to which the fair value measurement inputs are observable and based on the significance of the inputs to the fair value measurement in its entirety, are described as follows:

• 1) Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities;

• 2) Level 2 inputs are inputs other than quoted prices included within Level 1 that are observable for an asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices); and

• 3) Level 3 inputs are unobservable inputs for an asset or liability.

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

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

Current assets include:

• 1) Assets held primarily for the purpose of trading;

• 2) Assets expected to be realized within 12 months after the reporting period; and

• 3) Cash unless the asset is restricted from being exchanged or used to settle a liability for at least 12 months after the reporting period.

Current liabilities include:

• 1) Liabilities held primarily for the purpose of trading;

• 2) Liabilities due to be settled within 12 months after the reporting period; and

• 3) Liabilities for which the Corporation does not have an unconditional right to defer settlement for at least 12 months after the reporting period.

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

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d. Business combinations

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

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

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

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

e. Foreign currencies

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

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

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

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

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

• 14 -

f. Inventories

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

• g. Investments in subsidiaries

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

A subsidiary is an entity that is controlled by the Corporation.

Under the equity method, an investment in a subsidiary is initially recognized at cost and adjusted thereafter to recognize the Corporation’s share of the profit or loss and other comprehensive income of the subsidiary. The Corporation also recognizes the changes in the Corporation’s share of equity of subsidiaries.

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

When the Corporation’s share of losses of a subsidiary exceeds its interest in that subsidiary (which includes any carrying amount of the investment accounted for using the equity method and long-term interests that, in substance, form part of the Corporation’s net investment in the subsidiary), the Corporation continues recognizing its share of further losses.

Any excess of the cost of acquisition over the Corporation’s share of the net fair value of the identifiable assets and liabilities of a subsidiary that constitutes a business at the date of acquisition is recognized as goodwill, which is included within the carrying amount of the investment and is not amortized. Any excess of the Corporation’s share of the net fair value of the identifiable assets and liabilities of a subsidiary that constitutes a business over the cost of acquisition is recognized immediately in profit or loss.

The Corporation assesses its investment for any impairment by comparing the carrying amount with the estimated recoverable amount as assessed based on the investee’s financial statements as a whole. An impairment loss recognized on goodwill cannot be reversed in a subsequent period.

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

• h. Investments in associates

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

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

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

• 15 -

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

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

Profits and losses resulting from upstream transactions and downstream transactions are recognized only in the parent company only financial statements only to the extent of interests in the associates that are not related to the Corporation.

• i. Property, plant and equipment

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

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

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

• j. Goodwill

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

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

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

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

• k. Intangible assets

• 1) Intangible assets acquired separately

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

• 2) Intangible assets acquired in a business combination

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

• 3) Derecognition of intangible assets

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

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

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

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

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

• m. Financial instruments

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

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

1) Financial assets

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

a) Measurement categories

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

• i. Financial assets at FVTPL

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

Financial assets at FVTPL are subsequently measured at fair value, with any gains or losses arising on remeasurement recognized in profit or loss. The net gain or loss recognized in profit or loss incorporates any dividends or interest earned on such a financial asset. Fair value is determined in the manner described in Note 25.

• ii. Financial assets at amortized cost

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

• i) The financial asset is held within a business model whose objective is to hold financial assets in order to collect contractual cash flows; and

• ii) The contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

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

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

• i) Purchased or originated credit-impaired financial assets, for which interest income is calculated by applying the credit-adjusted effective interest rate to the amortized cost of such financial assets; and

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

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

• i) Significant financial difficulty of the issuer or the borrower;

• ii) Breach of contract, such as a default;

• iii) It is becoming probable that the borrower will enter bankruptcy or undergo a financial reorganization; or

• iv) The disappearance of an active market for that financial asset because of financial difficulties.

• b) Impairment of financial assets

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

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

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

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

• c) Derecognition of financial assets

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

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

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2) Equity instruments

Equity instruments issued by the Corporation are classified as equity in accordance with the substance of the contractual arrangements and the definitions of an equity instrument.

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

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

3) Financial liabilities

• a) Subsequent measurement

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

• b) Derecognition of financial liabilities

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

4) Convertible bonds

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

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

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

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

n. Revenue recognition

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

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• 1) Revenue from the sale of goods

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

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

• 2) Revenue from the rendering of services

Service income is recognized when services are provided.

• 3) Licensing revenue

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

o. Leasing

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

1) The Corporation as lessor

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

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

• 2) The Corporation as lessee

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

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

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

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

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

p. Borrowing costs

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

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

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

q. Employee benefits

1) Short-term employee benefits

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

• 2) Retirement benefits

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

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

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

• r. Taxation

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

• 1) Current tax

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

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

• 2) Deferred tax

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

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

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

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

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

• 3) Current and deferred taxes for the year

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

5. CRITICAL ACCOUNTING JUDGMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY

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

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

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6. CASH

Cash on hand Checking accounts and demand deposits		December 31	December 31
		2021 $ 1,029 515,153 $ 516,182	2020 $ 921 437,526 $ 438,447

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

Bank balance	December 31
	2021 2020 0.001%-0.2% 0.001%-0.2%

7. FINANCIAL INSTRUMENTS AT FAIR VALUE THROUGH PROFIT OR LOSS

Financial assets at fair value through profit or loss (FVTPL)-current Financial assets mandatorily classified as at FVTPL Derivative financial assets Foreign exchange forward contract Non-derivative financial assets Domestic listed shares 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 16) Non-derivative financial assets Domestic emerging market shares Overseas unlisted shares Private funds Financial Liabilities at fair value through profit or loss (FVTPL)-current Derivative financial assets (not under hedge accounting) Foreign exchange forward contracts		December 31	December 31
		2021 $ 4 81,379 $ 81,383 $ 360 17,528 38,508 9,034 $ 65,430 $ 41	2020 $ 19,871 200,701 $ 220,572 $ - 15,619 51,579 3,088 $ 70,286 $ -

• 24 -

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

December 31, 2021

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

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

8. TRADE RECEIVABLES, NET

At amortized cost Gross carrying amount Less: Allowance for impairment loss		December 31	December 31
		2021 $ 1,072,581 (93) $ 1,072,488	2020 $ 767,341 (710) $ 766,631

The average credit period of sales of goods was 90-120 days. No interest was charged on trade receivables. Credit rating information is obtained from independent rating agencies where available or, if not available, the Corporation uses other publicly available financial information or its own trading records to rate its major customers. The Corporation’s exposure and the credit ratings of its counterparties are continuously monitored and the aggregate value of transactions concluded is spread amongst approved counterparties. Credit exposure is controlled by counterparty limits that are reviewed and approved by the management annually.

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The Corporation measures the loss allowance for trade receivables at an amount equal to lifetime ECLs. The expected credit losses on trade receivables are estimated using a provision matrix by reference to the 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 forecasted direction of economic conditions at the reporting date. As the Corporation’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 Corporation’s different customer base.

The Corporation 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 Corporation continues to engage in enforcement activity to attempt to recover the receivables due. Where recoveries are made, these are recognized in profit or loss.

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

December 31, 2021

Not Past Due Expected credit loss rate - Gross carrying amount $ 1,066,446 Loss allowance (Lifetime ECLs) - Amortized cost $ 1,066,446	Less than 30 Days 31 to 90 Days 5.07% 0.07% $ 1,757 $ 4,371 (89) (3) $ 1,668 $ 4,368	91 to 180 Days 2.43% $ 7 (1) $ 6	Over 180 Days - $ - - $ -	Total $ 1,072,581 (93) $ 1,072,488

December 31, 2020

Not Past Due Expected credit loss rate - Gross carrying amount $ 763,791 Loss allowance (Lifetime ECLs) - Amortized cost $ 763,791	Less than 30 Days 31 to 90 Days - 20.00% $ - $ 3,550 - (710) $ - $ 2,840	91 to 180 Days - $ - - $ -	Over 180 Days - $ - - $ -	Total $ 767,341 (710) $ 766,631

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

Balance at January 1 Add: Net remeasurement of loss allowance Less: Net remeasurement of loss allowance Balance at December 31	For the Year Ended December 31	For the Year Ended December 31	For the Year Ended December 31
		2021 $ 710 - (617) $ 93	2020 $ 109 601 - $ 710

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9. INVENTORIES

Products Raw materials Work in process Finished goods		December	31
		2021 $ 9,997 6,806 626 65 $ 17,494	2020 $ 11,010 4,742 - 86 $ 15,838

The cost of inventories recognized as cost of goods sold for the years ended December 31, 2021 and 2020 was $3,342,000 thousand and $3,413,317 thousand, respectively. The cost of goods sold in 2021 included inventory write-down of $5,881 thousand.

10. INVESTMENTS ACCOUNTED FOR USING THE EQUITY METHOD

Investments in subsidiaries Investments in associates a. Investments in subsidiaries Grand Advance Inc. Syncmold Enterprise (Samoa) Corp. Syncmold Enterprise (USA) Corp. Gatetech Technology Inc. Syncmold Enterprise Vietnam Co., Ltd. Syncmold Enterprise (Malaysia) Sdn., Bhd Syncmold Enterprise (Singapore) Pte., Ltd. Syncmold Enterprise (Thailand) Co., Ltd. Leohab Enterprise Co., Ltd. Add: Credit balance of investments reclassified to non-current liabilities		December 31	December 31
		2021 2020 $ 6,253,354 $ 6,720,796 172,058 164,556 $ 6,425,412 $ 6,885,352 December 31
		2021 $ 2,741,122 2,139,272 (2,787) 626,258 500,521 2,154 3,219 11,867 228,941 6,250,567 2,787 $ 6,253,354	2020 $ 3,023,481 2,537,652 (2,522) 645,537 242,441 1,882 593 15,243 253,967 6,718,274 2,522 $ 6,720,796

• 27 -

Name of Subsidiaries Grand Advance Inc. Syncmold Enterprise (Samoa) Corp. Syncmold Enterprise (USA) Corp. Gatetech Technology Inc. Syncmold Enterprise Vietnam Co., Ltd. Syncmold Enterprise (Malaysia) Sdn., Bhd Syncmold Enterprise (Singapore) Pte., Ltd. Syncmold Enterprise (Thailand) Co., Ltd. Leohab Enterprise Co., Ltd.	Proportion of Ownership and Voting Rights
	December 31
	2021 2020 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 73.82% 73.43% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 70.00% 70.00%

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% and the Corporation had substantial control over Leohab Enterprise Co., Ltd. and listed it as a subsidiary. The acquisition was measured at fair value and the Corporation recognized a gain from bargain purchase of $19,323 thousand.

On December 15, 2021, the Corporation acquired additional 0.39% ownerships in Gatetech Technology Inc. for a cash consideration of $2,248 thousand, which increased the Corporation’s percentage of ownership to 73.82%.

The Corporation continued to support Syncmold Enterprise (USA) Corp. and recognized investment loss based on the proportion of the Corporation’s ownership. The credit balances of long-term equity investment transferred to other liabilities were $2,787 thousand and $2,522 thousand on December 31, 2021 and 2020, respectively.

For details of the investments in subsidiaries indirectly held by the Corporation, refer to Note 30.

See Note 25 of financial statements for more information about the acquisition of Leohab Enterprise Co., Ltd. by the Corporation.

The share of profit or loss of subsidiaries accounted for using the equity method in 2021 and 2020 was calculated based on the subsidiaries’ financial statements which have been audited for the same periods.

b. Investments in associates

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

• 28 -

Aggregate information of associates that are not individually material:

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

• Note 1: The Corporation’s percentage of ownership in High Grade Tech Co., Ltd. was 38% originally. After High Grade Tech Co., Ltd. handled employee stock option for new shares in September 2020, the Corporation’s percentage of ownership in High Grade Tech Co., Ltd. decrease to 35.63%. The effect of the change in ownership of investment accounted for using the equity method of $2,641 thousand was recognized in retained earnings.

• Note 2: Considering that the Corporation’s interest in Corebio Technologies Co., Ltd. on December 31, 2021 was lower than the market value, the management conducted an impairment test on the investment on December 31, 2021, and evaluated whether the carrying amount is less than the recoverable amount. After evaluation, the book value of the investment in Corebio Technologies Co., Ltd. was higher than the recoverable amount, and an impairment loss of $10,633 thousand was recognized in 2021.

• Note 3: On July 5, 2021, the Corporation completed the acquisition of Smart Automation Technology Inc. for a cash consideration of $15,680 thousand; after the acquisition, the Corporation’s percentage of ownership in Smart Automation Technology Inc. was 49%.

The share of profit or loss and other comprehensive income of associates accounted for using the equity method in 2021 and 2020 was calculated based on the associates’ financial statements which have been audited for the same periods.

11. PROPERTY, PLANT AND EQUIPMENT

Cost Balance at January 1, 2021 Additions Transfer from prepayments for land, buildings and equipment Disposal Balance at December 31, 2021 Accumulated depreciation and impairment Balance at January 1, 2021 Depreciation expenses Disposal Balance at December 31, 2021 Carrying amounts at December 31, 2021	Freehold Land $ 65,187 46,172 10,673 - $ 122,032 $ - - - $ - $ 122,032	Buildings $ 66,385 25,119 3,927 (131) $ 95,300 $ 18,863 8,689 (131) $ 27,421 $ 67,879	Equipment $ 40,111 11,097 - (4,937) $ 46,271 $ 6,790 8,225 (1,183) $ 13,832 $ 32,439	Transpor- tation Equipment $ 1,425 - - - $ 1,425 $ 812 201 - $ 1,013 $ 412	Office Equipment Total $ 7,980 $ 181,088 3,676 86,064 2,560 17,160 (1,038) (6,106) $ 13,178 $ 278,206 $ 2,525 $ 28,990 2,509 19,624 (1,038) (2,352) $ 3,996 $ 46,262 $ 9,182 $ 231,944 (Continued)

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Cost Balance at January 1, 2020 Additions Transfer from prepayments for land, buildings and equipment Disposals Balance at December 31, 2020 Accumulated depreciation and impairment Balance at January 1, 2020 Depreciation expenses Disposals Balance at December 31, 2020 Carrying amounts at December 31, 2020	Freehold Land $ 65,187 - - - $ 65,187 $ - - - $ - $ 65,187	Buildings $ 67,264 16,057 - (16,936) $ 66,385 $ 32,722 3,077 (16,936) $ 18,863 $ 47,522	Equipment $ 18,483 22,384 494 (1,250) $ 40,111 $ 2,788 4,994 (992) $ 6,790 $ 33,321	Transpor- tation Equipment $ 875 550 - - $ 1,425 $ 640 172 - $ 812 $ 613	Office Equipment Total $ 5,015 $ 156,824 4,321 43,312 - 494 (1,356) (19,542) $ 7,980 $ 181,088 $ 2,516 $ 38,666 1,365 9,608 (1,356) (19,284) $ 2,525 $ 28,990 $ 5,455 $ 152,098 (Concluded)

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

Buildings
Main buildings	20-50 years
Electromechanical power devices	4-5 years
Equipment	3-10 years
Transportation equipment	5-10 years
Office equipment	3-8 years

See Note 27 for detailed information on property, plant and equipment pledged as collateral.

12. LEASE ARRANGEMENTS

• a. Right-of-use assets

Carrying amounts Buildings Transportation equipment		December	31
		2021 $ 9,420 784 $ 10,204	2020 $ 22,307 1,284 $ 23,591

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Additions to right-of-use assets Depreciation charge for right-of-use assets Buildings Transportation equipment	For the Year Ended December 31	For the Year Ended December 31	For the Year Ended December 31
		2021 $ - $ 12,508 500 $ 13,008	2020 $ 15,463 $ 12,285 424 $ 12,709

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

• b. Lease liabilities

c.	Carrying amounts Current Non-current Range of discount rate for lease liabilities was as follows: Buildings Transportation equipment Other lease information Expenses relating to short-term leases Total cash outflow for leases		December	31
			2021 $ 9,957 $ 287 December	2020 $ 13,175 $ 10,397 31
		2021 2020 0.94% 0.94% 0.94% 0.94% For the Year Ended December 31
			2021 $ 213 $ (13,323)	2020 $ 367 $ (13,336)

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

• 31 -

13. GOODWILL

Cost Balance at January 1 Balance at December 31 Accumulated impairment losses Balance at January 1 Balance at December 31 Carrying amounts atDecember 31		December 31	December 31
		2021 $ 366,777 $ 366,777 $ 42,180 $ 42,180 $ 324,597	2020 $ 366,777 $ 366,777 $ 42,180 $ 42,180 $ 324,597

The Corporation acquired FulFil Tech Co., Ltd. on December 16, 2008 and recognized goodwill of $366,777 thousand relating to molding department and electronic components department. The goodwill is mainly arising from the expected benefit from sales growth of electronic components and molding products, and the potential of developing new electronic models

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

14. INTANGIBLE ASSETS

	Computer
	Software Cost
Cost
Balance at January 1, 2021	$ 32,891
Additions	8,930
Written off	(14,069)
Balance at December 31, 2021	$ 27,752
Accumulated amortization and impairment
Balance at January 1, 2021	$ 17,298
Amortization expenses	10,735
Written off	(14,069)
Balance at December 31, 2021	$ 13,964
Carrying amount at December 31, 2021	$ 13,788
	(Continued)

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Computer Software Cost

Cost Balance at January 1, 2020 Additions Written off Balance at December 31, 2020 Accumulated amortization and impairment Balance at January 1, 2020 Amortization expenses Written off Balance at December 31, 2020 Carrying amount at December 31, 2020	$ 30,610 9,722 (7,441) $ 32,891 $ 13,451 11,288 (7,441) $ 17,298 $ 15,593 (Concluded)

Computer software costs are amortized on a straight-line basis over one to five years.

15. BORROWINGS

• a. Short-term borrowings

Unsecured borrowings - line of credit borrowings		December 31	December 31
		2021 $ 200,000	2020 $ 1,214,800

The weighted average effective interest rates on bank loans were 0.61% and 0.67%-0.77% per annum as of December 31, 2021 and 2020, respectively.

• b. Long-term borrowings

Secured borrowings (Note 27) Mortgage loans Less: Current portion		December	31
		2021 $ 52,730 (4,545) $ 48,185	2020 $ - - $ -

The effective interest rate on long-term borrowings were 0.9% on December 31, 2021.

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16. BONDS PAYABLE

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

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

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

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

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

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

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

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

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

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17. OTHER PAYABLES

Payables for salaries or bonuses Payables for procurement Others		December 31	December 31
		2021 $ 75,060 3,519 35,056 $ 113,635	2020 $ 111,758 3,314 52,513 $ 167,585

18. RETIREMENT BENEFIT PLANS

a. Defined contribution plans

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

b. Defined benefit plans

The defined benefit plans adopted by the Corporation in accordance with the Labor Standards Law is operated by the government of the ROC. Pension benefits are calculated on the basis of the length of service and average monthly salaries of the 6 months before retirement. The Corporation contribute amounts equal to 2% of total monthly salaries and wages to a pension fund administered by the pension fund monitoring committee. Pension contributions are deposited in the Bank of Taiwan in the committee’s name. Before the end of each year, the Corporation assesses the balance in the pension fund. If the amount of the balance in the pension fund is inadequate to pay retirement benefits for employees who conform to retirement requirements in the next year, the Corporation is required to fund the difference in one appropriation that should be made before the end of March of the next year. The pension fund is managed by the Bureau of Labor Funds, Ministry of Labor (the “Bureau”); the Corporation has no right to influence the investment policy and strategy.

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

Present value of defined benefit obligation Fair value of plan assets Net defined benefit assets		December	31
		2021 $ 23,633 (26,531) $ (2,898)	2020 $ 23,501 (26,068) $ (2,567)

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Movements in net defined benefit assets were as follows:

	Present Value
	of the Defined
	Benefit	Fair Value of	Net Defined
	Obligation	the Plan Assets	Benefit Assets
Balance at January 1, 2020	$ 22,787	$ (25,056)	$ (2,269)
Service cost
Current service cost	-	-	-
Net interest expense (income)	142	(157)	(15)
Recognized in profit or loss	142	(157)	(15)
Remeasurement
Return on plan assets (excluding amounts
included in net interest)	-	(855)	(855)
Actuarial (gain) loss
Changes in demographic assumptions	4	-	4
Changes in financial assumptions	441	-	441
Experience adjustments	127	-	127
Recognized in other comprehensive income	572	(855)	(283)
Balance at December 31, 2020	23,501	(26,068)	(2,567)
Service cost
Current service cost	-	-	-
Net interest expense (income)	88	(97)	(9)
Recognized in profit or loss	88	(97)	(9)
Remeasurement
Return on plan assets (excluding amounts
included in net interest)	-	(366)	(366)
Actuarial (gain) loss
Changes in demographic assumptions	545	-	545
Changes in financial assumptions	(238)	-	(238)
Experience adjustments	(263)	-	(263)
Recognized in other comprehensive income	44	(366)	(322)
Balance at December 31, 2021	$ 23,633	$ (26,531)	$ (2,898)

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

• 1) Investment risk: The plan assets are invested in domestic and foreign equity and debt securities, bank deposits, etc. The investment is conducted at the discretion of the Bureau or under the mandated management. However, in accordance with relevant regulations, the return generated by plan assets should not be below the interest rate for a 2-year time deposit with local banks.

• 2) Interest risk: A decrease in the government bond interest rate will increase the present value of the defined benefit obligation; however, this will be partially offset by an increase in the return on the plans’ debt investments.

• 3) Salary risk: The present value of the defined benefit obligation is calculated by reference to the future salaries of plan participants. As such, an increase in the salary of the plan participants will increase the present value of the defined benefit obligation.

• 36 -

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

Discount rate Expected rate(s) of salary increase Mortality rate Turnover rate	December 31
	2021 2020 0.500% 0.375% 1.500% 1.500% According to the sixth experience life table of the insurance industry in Taiwan According to the fifth experience life table of the insurance industry in Taiwan 0%-7.5% 0%-7.5%

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

Discount rate(s) 25% increase 25% decrease Expected rate(s) of salary increase 25% increase 25% decrease		December	31
		2021 $ (473) $ 489 $ 477 $ (463)	2020 $ (441) $ 458 $ 445 $ (430)

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

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

19. EQUITY

a. Share capital

Ordinary shares

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

• 37 -

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

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

b. Capital surplus

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

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

• Note 2: Such capital surplus which arises from the effects of changes in ownership interests in subsidiaries may only be used to offset a deficit.

• c. Retained earnings and dividends policy

Under the dividends policy as set forth in the amended Articles, where the Corporation made a profit in a fiscal year, the profit shall be first utilized for paying taxes, offsetting losses of previous years, setting aside as a legal reserve of 10% of the remaining profit, setting aside or reversing a special reserve in accordance with the laws and regulations, and then any remaining profit together with any undistributed retained earnings shall be used by the Corporation’s board of directors as the basis for proposing a distribution plan, which should be resolved in the shareholders’ meeting for the distribution of dividends and bonuses to shareholders. For the policies on the distribution of compensation of employees and remuneration of directors and supervisors after the amendment, refer to compensation of employees and remuneration of directors and supervisors in Note 20-c.

• 38 -

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

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

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

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

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

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

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

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

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

• 39 -

d. Special reserve

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

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

20. NET PROFIT

Net profit comprises:

a. Other income

Consulting income (Note 26) Dividends Others	For the Year Ended December 31 2021 2020 $ 20,736 $ 14,518 23,299 6,229 5,933 477 $ 49,968 $ 21,224	For the Year Ended December 31 2021 2020 $ 20,736 $ 14,518 23,299 6,229 5,933 477 $ 49,968 $ 21,224	For the Year Ended December 31 2021 2020 $ 20,736 $ 14,518 23,299 6,229 5,933 477 $ 49,968 $ 21,224
		2021 $ 20,736 23,299 5,933 $ 49,968	2020 $ 14,518 6,229 477 $ 21,224

b. Depreciation, amortization and employee benefits expense

Employee benefits expense Salaries expenses Labor insurance expenses Pension expenses Defined contribution plan Defined benefit plan Director’s remuneration Other employee benefits Depreciation Amortization			For the Year Ended December 31	For the Year Ended December 31	For the Year Ended December 31	For the Year Ended December 31
			2021	Total $ 261,841 22,172 10,389 (9) 7,673 12,472 $ 314,538 $ 32,632 $ 10,735			2020
		Operating Costs $ 12,446 1,239 678 - - 655 $ 15,018 $ 11,131 $ 105	Operating Expenses $ 249,395 20,933 9,711 (9) 7,673 11,817 $ 299,520 $ 21,501 $ 10,630			Operating Costs $ 4,741 509 309 - - 329 $ 5,888 $ 5,708 $ -	Operating Expenses $ 229,708 17,589 8,921 (15) 15,287 9,645 $ 281,135 $ 16,609 $ 11,288	Total $ 234,449 18,098 9,230 (15) 15,287 9,974 $ 287,023 $ 22,317 $ 11,288

• 40 -

As of December 31, 2021 and 2020, the Corporation had 264 and 268 employees, respectively, which included 6 directors and 6 directors not concurrently serving as employees, respectively. The average employee benefits expenses were $1,189 thousand and $1,037 thousand, respectively. The average employees’ salaries were $1,015 thousand and $895 thousand, respectively. The average adjustment of employee salary was 13.4% which the calculation standard was the same as employee benefits expense. The remuneration of supervisors were $0 thousand and $3,060 thousand, respectively.

The remuneration of directors and supervisors shall be allocated in accordance with the Articles of Incorporation and shall be paid by remuneration committee upon the resolution of the board of directors and reported in the shareholders' meeting. The remuneration is based on the content of work, education, expertise and other standards, and the Corporation's operating conditions. Employees’ performance and other factors such as salary increases or bonuses, and remuneration of managers are determined by compensation committee subject to the approval from the board of directors.

• c. Compensation of employees and remuneration of directors and supervisors

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

Accrual rate

Compensation of employees Remuneration of directors and supervisors Amount	For the Year Ended December 31
	2021 2020 8.82% 6.58% 1.99% 1.44%

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

If there is a change in the amounts after the annual financial statements are authorized for issue, the differences are recorded as a change in the accounting estimate.

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

• 41 -

Amounts approved in the board of directors’ meeting Amounts recognized in the annual 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.

21. INCOME TAXES

• a. Income tax recognized in profit or loss

Major components of income tax expense are as follows:

Current tax In respect of the current period Income tax on unappropriated earnings Adjustments for prior periods Deferred tax In respect of the current period Adjustments to deferred tax attributable to changes in tax rates and laws Income tax expense recognized in profit or loss	For the Year Ended	For the Year Ended	December 31
		2021 $ 203,486 9,230 (2,752) 209,964 (148,108) - (148,108) $ 61,856	2020 $ 180,475 4,404 1,242 186,121 (22,017) 543 (21,474) $ 164,647

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

Profit before tax Income tax expense calculated at the statutory rate Tax-exempt income Unrecognized deductible temporary differences Income tax on unappropriated earnings Adjustments for prior years’ tax Income tax expense recognized in profit or loss	For the Year Ended December 31	For the Year Ended December 31	For the Year Ended December 31
		2021 $ 313,611 $ 62,722 (9,471) 2,127 9,230 (2,752) $ 61,856	2020 $ 1,130,385 $ 226,077 (67,619) - 4,404 1,785 $ 164,647

• 42 -

b. Current tax assets and liabilities

Current tax assets Tax refund receivable Current tax liabilities Income tax payable		December 31	December 31
		2021 $ - $ 133,333	2020 $ 8,474 $ 98,120

c. Deferred tax assets and liabilities

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

For the year ended December 31, 2021

Deferred Tax Assets Temporary differences Allowance for exceeding limit Allowance for inventory valuation and obsolescence losses Deferred Tax Liabilities Temporary differences Gain on investments accounted for using the equity method Defined benefit obligations Unrealized exchange gains Financial assets at FVTPL	Opening Balance Recognized in Profit or Loss Recognized in Other Comprehen- sive Income $ 447 $ (447) $ - 58 - - $ 505 $ (447) $ - Opening Balance Recognized in Profit or Loss Recognized in Other Comprehen- sive Income $ 240,321 $ (139,152) $ - 514 1 64 6,133 (4,260) - 7,097 (5,144) - $ 254,065 $ (148,555) $ 64	Closing Balance $ - 58 $ 58 Closing Balance $ 101,169 579 1,873 1,953 $ 105,574

• 43 -

For the year ended December 31, 2020

Deferred Tax Assets Temporary differences Allowance for exceeding limit Allowance for inventory valuation and obsolescence losses Others Deferred Tax Liabilities Temporary differences Gain on investments accounted for using the equity method Defined benefit obligations Unrealized exchange gains Financial assets at FVTPL	Opening Balance Recognized in Profit or Loss Recognized in Other Comprehen- sive Income $ 159 $ 288 $ - 58 - - 543 (543) - $ 760 $ (255) $ - Opening Balance Recognized in Profit or Loss Recognized in Other Comprehen- sive Income $ 267,035 $ (26,714) $ - 454 3 57 6,206 (73) - 2,042 5,055 - $ 275,737 $ (21,729) $ 57	Closing Balance $ 447 58 - $ 505 Closing Balance $ 240,321 514 6,133 7,097 $ 254,065

d. Deductible temporary differences for which no deferred tax assets have been recognized in the balance sheets

Deductible temporary differences		December 31	December 31
		2021 $ 134,532	2020 $ 148,350

The unrecognized deductible temporary differences are goodwill amortization and excess loss allowance.

• e. Income tax assessments

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

• 44 -

22. EARNINGS PER SHARE

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

Net Profit for the Year

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

Shares

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

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

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

23. BUSINESS COMBINATIONS

Refer to Note 25 to the consolidated financial statements for detailed information relating to business combinations.

24. CAPITAL MANAGEMENT

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

• 45 -

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

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

25. FINANCIAL INSTRUMENTS

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

December 31, 2021

Financial liabilities Financial liabilities at amortized cost Convertible bonds	Carrying Amount $ 1,166,288			Fair Value	Fair Value
			Level 1 $ 1,390,200	Level 2 $ -	Level 3 $ -	Total $ 1,390,200

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

• 1) Fair value hierarchy

December 31, 2021

Financial assets at FVTPL Foreign exchange forward contracts Listed shares Bonds payable Emerging market shares Overseas unlisted shares Private funds Financial liabilities at FVTPL Foreign exchange forward contracts	Level 1 $ - 81,379 - 10,427 - - $ 91,806 $ -	Level 2 $ 4 - 360 - - - $ 364 $ 41	Level 3 $ - - - 7,101 38,508 9,034 $ 54,643 $ -	Total $ 4 81,379 360 17,528 38,508 9,034 $ 146,813 $ 41

• 46 -

December 31, 2020

Financial assets at FVTPL Listed shares Emerging market shares Overseas unlisted shares Forward foreign exchange Private funds	Level 1 $ 200,701 6,708 - - - $ 207,409	Level 2 $ - - - 19,871 - $ 19,871	Level 3 $ - 8,911 51,579 - 3,088 $ 63,578	Total $ 200,701 15,619 51,579 19,871 3,088 $ 290,858

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

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

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

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

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Financial Instrument Valuation Technique and Inputs
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Financial Instrument	Valuation Technique and Inputs
Foreign exchange forward	Discounted cash flows Future cash flows are estimated based on
contracts	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.

• 47 -

• c. Categories of financial instruments

Financial assets Mandatorily classified as at FVTPL Financial assets at amortized cost (1) Financial liabilities Mandatorily classified as at FVTPL Financial liabilities at amortized cost (2)	December 31
	2021 2020 $ 146,813 $ 290,858 1,845,539 1,476,437 41 - 3,040,496 2,830,858

• 1) The balances include financial assets at amortized cost, which comprise cash, financial assets at amortized cost, notes receivable, trade receivables, other receivables and refundable deposits.

• 2) The balances include financial liabilities at amortized cost, which comprise short-term borrowings, current portion of long-term borrowing and bonds payable, long-term borrowings, notes payable and trade payables, other payables, bonds payable, and guarantee deposits received.

• d. Financial risk management objectives and policies

The Corporation’s major financial instruments include cash, financial assets mandatorily classified as at FVTPL, financial assets at amortized cost, equity investments, trade receivables, trade payables, short-term borrowings and lease liabilities. The Corporation’s corporate treasury function provides services to the business, coordinates access to domestic and international financial markets, monitors and manages the financial risks relating to the operations of the Corporation through internal risk reports which analyze exposures by degree and magnitude of risks. These risks include market risk (including foreign currency risk, interest rate risk and other price risk), credit risk and liquidity risk.

1) Market risk

The Corporation’s activities exposed it primarily to the financial risks of changes in foreign currency exchange rates (see (a) below) and interest rates (see (b) below).

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

• a) Foreign currency risk

The Corporation has foreign currency sales and purchases, which exposes the Corporation to foreign currency risk. The carrying amounts of the Corporation’s foreign currency denominated monetary assets and monetary liabilities and of the derivatives exposed to foreign currency risk at the end of the reporting period are set out in Note 29.

Sensitivity analysis

The Corporation is mainly exposed to the USD and the RMB.

• 48 -

The following table details the Corporation’s sensitivity to a 1% increase and decrease in the New Taiwan dollar (i.e. 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.

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USD Impact RMB Impact
----- End of picture text -----

	USD Impact	RMB Impact
Equity	For the Year Ended December 31 2021 2020 $ (814) $ 7,029	For the Year Ended December 31
		2021 2020 $ 2,311 $ (2,430)

This was mainly attributable to the exposure on outstanding receivables and payables 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 Corporation is exposed to interest rate risk because the Corporation borrows funds at both fixed and floating interest rates.

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

Fair value interest rate risk Financial liabilities Cash flow interest rate risk Financial assets	December 31
	2021 2020 $ 1,429,262 $ 1,238,372 510,800 434,400

Sensitivity analysis

The sensitivity analysis below was determined based on the Corporation’s exposure to interest rates for both derivative and non-derivative instruments at the end of the reporting period. For floating rate liabilities, the analysis was prepared assuming the amount of each liability outstanding at the end of the reporting period was outstanding for the whole year. A 100 basis point increase or decrease is used when reporting interest rate risk internally to key management personnel and represents management’s assessment of the reasonably possible change in interest rates.

• 49 -

If interest rates had been 100 basis points higher/lower and all other variables were held constant, the Corporation’s pre-tax profit for the years ended December 31, 2021 and 2020 would have increased/decreased by $5,108 thousand and $4,344 thousand, respectively, which was mainly attributable to the Corporation’s exposure to interest rates on its variable-rate deposits.

c) Other price risk

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

Sensitivity analysis

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

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

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 Corporation. As at the end of the reporting period, the Corporation’s maximum exposure to credit risk, which would cause a financial loss to the Corporation due to the failure of the counterparty to discharge its obligation and due to the financial guarantees provided by the Corporation, could be equal to the total of carrying amount of the respective recognized financial assets as stated in the balance sheets; and

In order to reduce credit risk, the management team of the Corporation 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 Corporation reviews the recoverable amounts to ensure appropriate allowances have been made for doubtful accounts. Therefore, the Corporation considers its credit risk to be significantly reduced.

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

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

3) Liquidity risk

The Corporation manages liquidity risk by monitoring and maintaining a level of cash and cash equivalents deemed adequate to finance the Corporation’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.

• 50 -

The Corporation relies on bank borrowings as a significant source of liquidity. The Corporation had available unutilized short-term bank loan facilities set out below.

Financing facilities

Unsecured bank overdraft facilities, reviewed annually and payable on demand: Amount used Amount unused Secured bank overdraft facilities, review annually and payable on demand: Amount used Amount unused		December 31	December 31
		2021 $ 200,000 2,600,000 $ 2,800,000 $ 52,730 - $ 52,730	2020 $ 1,214,800 2,185,200 $ 3,400,000 $ - - $ -

26. TRANSACTIONS WITH RELATED PARTIES

Besides information disclosed elsewhere in the other notes, details of transactions between the Corporation and other related parties are disclosed below.

• a. Related party name and category

Related Party Name Related Party Category Syncmold Enterprise (Samoa) Corp. Subsidiary Grand Advance Inc. Subsidiary Syncmold Enterprise (USA) Corp. Subsidiary Syncmold Enterprise Vietnam Co., Ltd. Subsidiary Syncmold Enterprise (Singapore) Pte. Ltd. Subsidiary Leohab Enterprise Co., Ltd. Subsidiary Gatetech Technology Inc. Subsidiary Gatetech (Suzhou) Technology Co., Ltd. Indirect subsidiary Fuzhou Fulfil Tech Co., Ltd. Indirect subsidiary Fujian Khuan Hua Precise Mold Co., Ltd. Indirect subsidiary Chongqing Fulfil Tech Co., Ltd. Indirect subsidiary Dongguan Khuan Huang Precise Mold Plastic Co., Ltd. Indirect subsidiary Suzhou Fulfil Electronics Co., Ltd. Indirect subsidiary Zhongshan Fulfil Tech. Co., Ltd Indirect subsidiary High Grade Tech Co., Ltd. Associate Smart Automation Technology Inc. Associate Chen Chien Yuan The legal representative of the Corporation’s director (Note) Chen Chien Hung Related party in substance (first-degree relative of the Corporation’s director) Kuan Chen Investment Co., Inc. Related party in substance (director is the first-degree relative of the Corporation’s director)

• 51 -

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

b. Sales of goods

Line Item Related Party Category/Name Sales Subsidiaries Indirect subsidiaries Other operating revenue Indirect subsidiaries - royalty Suzhou Fulfil Electronics Co., Ltd. Fuzhou Fulfil Tech Co., Ltd. Zhongshan Fulfil Tech. Co., Ltd. Chongqing Fulfil Tech Co., Ltd. Other operating revenue - service revenue Indirect subsidiaries	For the Year Ended December 31	For the Year Ended December 31	For the Year Ended December 31
		2021 $ 12,270 4 12,274 133,498 68,776 99,908 26,501 328,683 982 $ 341,939	2020 $ 17,091 11,307 28,398 149,848 66,178 93,004 23,270 332,300 1,108 $ 361,806

The transaction prices and terms of collection between the Corporation and its related parties are the same as the non-related parties, except for subsidiaries that purchase raw materials on behalf of the Corporation, whose service income is decided with reference to market prices, and royalty income which is based on that stated in the agreements.

• c. Purchases of goods

Related Party Category/Name Indirect subsidiaries Zhongshan Fulfil Tech. Co., Ltd Suzhou Fulfil Electronics Co., Ltd. Fuzhou Fulfil Tech Co., Ltd. Others	For the Year Ended December 31	For the Year Ended December 31	For the Year Ended December 31
		2021 $ 1,401,453 1,213,277 428,550 237,179 $ 3,280,459	2020 $ 1,505,534 1,365,186 340,741 165,084 $ 3,376,545

Prices of transactions between the Corporation and related parties were made with reference to market prices, and payment terms are the same as that with non-related parties.

• d. Operating expenses

Related Party Category Subsidiaries Indirect subsidiaries Associate	For the Year Ended December 31	For the Year Ended December 31	For the Year Ended December 31
		2021 $ 6,983 - 12 $ 6,995	2020 $ 1,321 367 7 $ 1,695

• 52 -

e. Property, plant and equipment

f.	Related Party Category Related party in substance Leases agreements Related Party Category Lease assets acquired Related party in substance The legal representative of the Corporation’s director Line Item Lease liabilities Related party in substance The legal representative of the Corporation’s director Related Party Category Interest expense Related party in substance The legal representative of the Corporation’s director	For the Year Ended December 31	For the Year Ended December 31	For the Year Ended December 31
		2021 2020 $ - $ 550 For the Year Ended December 31
			2021 2020 $ - $ 2,879 - 1,574 $ - $ 4,453 December 31
		2021 2020 $ 242 $ 1,685 132 921 $ 374 $ 2,606 For the Year Ended December 31
			2021 $ 10 5 $ 15	2020 $ 19 6 $ 25

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

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

Line Item Related Party Category/Name Trade receivables Subsidiaries Indirect subsidiaries Zhongshan Fulfil Tech. Co., Ltd Suzhou Fulfil Electronics Co., Ltd. Fuzhou Fulfil Tech Co., Ltd. Others		December 31	December 31
		2021 $ 3,758 100,668 74,450 36,816 14,398 $ 230,090	2020 $ 6,610 95,985 95,183 35,140 12,817 $ 245,735

• 53 -

Line Item Related Party Category/Name Other receivables Subsidiaries Indirect subsidiaries Fujian Khuan Hua Precise Mold., Ltd. Gatetech (Suzhou) Technology Co., Ltd. Fuzhou Fulfil Tech Co., Ltd. Others		December 31	December 31
		2021 $ 154 8,398 10,400 4,365 1,186 $ 24,503	2020 $ - 12,581 9,984 - - $ 22,565

The outstanding trade receivables from related parties are unsecured. For the years ended December 31, 2021 and 2020, no allowance loss was recognized for trade receivables from related parties.

Other receivables between the Corporation and its related parties are mainly from the purchase of raw materials. The Corporation recognizes the transactions that have not been paid to the suppliers as other payables.

• h. Payables to related parties (excluding loans from related parties)

Line Item Related Party Category/Name Trade payables Subsidiaries Indirect subsidiaries Suzhou Fulfil Electronics Co., Ltd. Zhongshan Fulfil Tech. Co., Ltd Fuzhou Fulfil Tech Co., Ltd. Chongqing Fulfil Tech Co., Ltd. Others Other payables Subsidiaries		December 31	December 31
		2021 $ 3,397 540,898 540,297 161,864 43,813 9,091 $ 1,299,360 $ 1,844	2020 $ - 560,484 518,441 79,865 59,883 8,009 $ 1,226,682 $ -

The outstanding trade payables from related parties are unsecured and would be repaid in cash.

• i. Loans to related parties

Interest revenue Related Party Category Other receivables Subsidiary	For the Year Ended December 31	For the Year Ended December 31	For the Year Ended December 31
		2021 $ 28	2020 $ 363

The Corporation provided Gatetech Technology Inc. with unsecured short-term loans at rate of 1.55% and 1.25%, which was comparable to market interest rates in 2021 and 2020.

• 54 -

• j. Loans from related parties

Related Party Category/Name Other payables Subsidiaries Grand Advance Inc. Syncmold Enterprise (Samoa) Corp.		December 31	December 31
		2021 $ 221,440 41,520 $ 262,960	2020 $ 284,800 42,720 $ 327,520

The interest rate of short-term borrowings from related parties was 0% in 2021 and 2020.

• k. Endorsements and guarantees

Related Party Category/Name Subsidiaries Amount endorsed Amount utilized		December 31	December 31
		2021 $ 1,008,600 $ 245,000	2020 $ 683,520 $ 570

l. Non-operating income

Line Item Related Party Category/Name Non-operating income Subsidiaries Service revenue Indirect subsidiaries Gatetech (Suzhou) Technology Co., Ltd. Other		December 31	December 31
		2021 $ 450 19,785 501 $ 20,736	2020 $ - 14,518 - $ 14,518

The Corporation provided management consultancy services to its subsidiaries in 2021 and 2020. The conditions of transaction price payment was based on to the market price agreed. Service revenue was agreed according to the content of the contract. The rest are comparable to non-related parties.

• m. Compensation of key management personnel

Short-term employee benefits Post-employment benefits	For the Year Ended December 31	For the Year Ended December 31	For the Year Ended December 31
		2021 $ 23,265 314 $ 23,579	2020 $ 36,503 279 $ 36,782

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

• 55 -

27. ASSETS PLEDGED AS COLLATERAL OR FOR SECURITY

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

Property, plant and equipment		December	31
		2021 $ 76,742	2020 $ -

28. SIGNIFICANT LOSSES FROM DISASTERS

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

29. SIGNIFICANT ASSETS AND LIABILITIES DENOMINATED IN FOREIGN CURRENCIES

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

December 31, 2021

		Foreign		Carrying
		Currency	Exchange Rate	Amount
Financial assets
Monetary items
USD	$	53,857	27.68 (USD:NTD)	$ 1,490,762
RMB		58,264	4.344 (RMB:NTD)	253,099
Non-monetary items
Subsidiaries accounted for using the equity
method
USD		176,315	27.68 (USD:NTD)	4,880,394
Financial assets at FVTPL - non-current
USD		1,375	27.68 (USD:NTD)	38,058
Financial liabilities
Monetary items
USD		56,796	27.68 (USD:NTD)	1,572,113
RMB		5,056	4.344 (RMB:NTD)	21,963

• 56 -

December 31, 2020

		Foreign		Carrying
		Currency	Exchange Rate	Amount
Financial assets
Monetary items
USD	$	38,749	28.48 (USD:NTD)	$ 1,103,572
RMB		63,623	4.377 (RMB:NTD)	278,478
Non-monetary items
Subsidiaries accounted for using the equity
method
USD		195,264	28.48 (USD:NTD)	5,561,133
Financial assets at FVTPL - non-current
USD		1,342	28.48 (USD:NTD)	51,579
Financial liabilities
Monetary items
USD		63,431	28.48 (USD:NTD)	1,806,515
RMB		8,095	4.377 (RMB:NTD)	35,432

The significant realized and unrealized foreign exchange gains (losses) were as follows:

Foreign Currency USD RMB Other	For the Year Ended December 31	For the Year Ended December 31
	2021 Exchange Rate Net Foreign Exchange Gains (Losses) 27.68 (USD:NTD) $ 11,614 4.344 (RMB:NTD) (2,329) (216) $ 9,069	2020
		Exchange Rate Net Foreign Exchange Gains (Losses) 28.48 (USD:NTD) $ 24,262 4.365 (RMB:NTD) 8,703 (16) $ 32,949

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)

• 57 -

• 7) Total purchases from or sales to related parties amounting to at least NT$100 million or 20% of the paid-in capital (Table 4)

• 8) Receivables from related parties amounting to at least NT$100 million or 20% of the paid-in capital (Table 5)

• 9) Trading in derivative instruments (Note 7)

• 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 7):

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

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

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

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

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

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

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

• 58 -

TABLE 1

SYNCMOLD ENTERPRISE CORPORATION

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

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

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Highest Actual Business Reasons for Allowance for Collateral
Financial Statement Related Ending Interest Rate Nature of Financing Limit Aggregate
No. Lender Borrower Balance for Amount Transaction Short-term Impairment
Account Party Balance (%) Financing Item Value for Each Borrower Financing Limit
the Period Borrowed Amount Financing Loss
Full Big Limited Other receivables Yes $ 83,040 $ - $ - - Short-term $ - Operating $ - - - $1,131,417 $2,828,542
from related parties financing capital (20% of the net (50% of the net
worth of the worth of the
Corporation) Corporation)
Zhongshan Fulfil Other receivables Yes 83,040 - - - Short-term - Operating - - - $1,131,417 $2,828,542
Tech. Co., Ltd. from related parties financing capital (20% of the net (50% of the net
worth of the worth of the
Corporation) Corporation)
Chongqing Fulfil Other receivables Yes 83,040 83,040 - - Short-term - Operating - - - $1,131,417 $2,828,542
Tech Co., Ltd. from related parties financing capital (20% of the net (50% of the net
worth of the worth of the
Corporation) Corporation)
Fuzhou Fulfil Tech Other receivables Yes 83,040 - - - Short-term - Operating - - - $1,131,417 $2,828,542
Co., Ltd. from related parties financing capital (20% of the net (50% of the net
worth of the worth of the
Corporation) Corporation)
Suzhou Fulfil Other receivables Yes 83,040 55,360 - - Short-term - Operating - - - $1,131,417 $2,828,542
Electronics Co., from related parties financing capital (20% of the net (50% of the net
Ltd. worth of the worth of the
Corporation) Corporation)
Syncmold Enterprise Other receivables Yes 24,912 24,912 11,072 0.00 Short-term - Operating - - - $1,131,417 $2,828,542
(USA) Corp. from related parties financing capital (20% of the net (50% of the net
worth of the worth of the
Corporation) Corporation)
Fullking Other receivables Yes 124,560 96,880 41,520 0.00 Short-term - Operating - - - $1,131,417 $2,828,542
Development from related parties financing capital (20% of the net (50% of the net
Limited worth of the worth of the
Corporation) Corporation)
Syncmold Enterprise Other receivables Yes 401,360 304,480 221,440 0.00 Short-term - Operating - - - $1,131,417 $2,828,542
Corporation from related parties financing capital (20% of the net (50% of the net
worth of the worth of the
Corporation) Corporation)
3 Full Big Limited Fullking Other receivables Yes 22,144 22,144 22,144 0.00 Short-term - Operating - - - $1,131,417 $2,828,542
Development from related parties financing capital (20% of the net (50% of the net
Limited worth of the worth of the
Corporation) Corporation)
4 Fuzhou Fulfil Tech Co., Ltd Fujian Khuan Hua Other receivables Yes 69,464 43,415 - - Short-term - Operating - - - $1,131,417 $2,828,542
Precise Mold Co., from related parties financing capital (20% of the net (50% of the net
Ltd. worth of the worth of the
Corporation) Corporation)
Fuqing Fuqun Other receivables Yes 69,464 56,440 - - Short-term - Operating - - - $1,131,417 $2,828,542
Electronic from related parties financing capital (20% of the net (50% of the net
Hardware Tech worth of the worth of the
Co., Ltd. Corporation) Corporation)
Suzhou Fulfil Other receivables Yes 69,464 69,464 - - Short-term - Operating - - - $1,131,417 $2,828,542
Electronics Co., from related parties financing capital (20% of the net (50% of the net
Ltd. worth of the worth of the
Corporation) Corporation)
5 Suzhou Fulfil Electronics Kunshan Fulfil Tech Other receivables Yes 39,074 39,074 - - Short-term - Operating - - - $1,131,417 $2,828,542
Co., Ltd. Co., Ltd. from related parties financing capital (20% of the net (50% of the net
worth of the worth of the
Corporation) Corporation)
(Continued)
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• 60 -

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Highest Actual Business Reasons for Allowance for Collateral
Financial Statement Related Ending Interest Rate Nature of Financing Limit Aggregate
No. Lender Borrower Balance for Amount Transaction Short-term Impairment
Account Party Balance (%) Financing Item Value for Each Borrower Financing Limit
the Period Borrowed Amount Financing Loss
6 Zhongshan Fulfil Tech. Co., Dongguan Khuan Other receivables Yes $ 34,732 $ 34,732 $ - - Short-term $ - Operating $ - - - $1,131,417 $2,828,542
Ltd. Huang Precise from related parties financing capital (20% of the net (50% of the net
Mold Plastic Co., worth of the worth of the
Ltd. Corporation) Corporation)
Chongqing Fulfil Other receivables Yes 43,415 43,415 - - Short-term - Operating - - - $1,131,417 $2,828,542
Tech Co., Ltd. from related parties financing capital (20% of the net (50% of the net
worth of the worth of the
Corporation) Corporation)
Suzhou Fulfil Other receivables Yes 34,732 34,732 - - Short-term - Operating - - - $1,131,417 $2,828,542
Electronics Co., from related parties financing capital (20% of the net (50% of the net
Ltd. worth of the worth of the
Corporation) Corporation)
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Note 1: The authorized amount of loans was approved by the board of directors.

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

(Concluded)

• 61 -

TABLE 2

SYNCMOLD ENTERPRISE CORPORATION

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

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

• 62 -

TABLE 3

SYNCMOLD ENTERPRISE CORPORATION

MARKETABLE SECURITIES HELD DECEMBER 31, 2021

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

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

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

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

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

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

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

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

• 63 -

TABLE 4

SYNCMOLD ENTERPRISE CORPORATION

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

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

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

• 64 -

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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
Dongguan Khuan Huang Precise Suzhou Fulfil Electronics Co., Ltd. Indirect subsidiary Sales $ (145,246) 26 Note $ - - $ 33,159 27
Mold Plastic Co., Ltd.
Fuqing Fuqun Electronic Hardware Suzhou Fulfil Electronics Co., Ltd. Indirect subsidiary Sales (198,957) 28 Note - - 39,992 38
Tech Co., Ltd.
Chongqing Fulfil Tech Co., Ltd. Suzhou Fulfil Electronics Co., Ltd. Indirect subsidiary Sales (100,400) 17 Note - - 18,789 10
Fuqing Fuqun Electronic Hardware Fuzhou Fulfil Tech Co., Ltd. Indirect subsidiary Sales (372,363) 52 Note - - 34,593 33
Tech Co., Ltd.
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Note: Payment terms are the same as the payment terms of non-related parties.

(Concluded)

• 65 -

TABLE 5

SYNCMOLD ENTERPRISE CORPORATION

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

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

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

• 66 -

TABLE 6

SYNCMOLD ENTERPRISE CORPORATION

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

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

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

• 67 -

TABLE 7

SYNCMOLD ENTERPRISE CORPORATION

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

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

• 68 -

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Accumulated Remittance of Funds Accumulated
Accumulated
Outward Outward
% Ownership of Carrying Amount Repatriation of
Remittance for Remittance for
Net Income (Loss) Direct or Investment as of Investment
Investee Company Main Businesses and Products Paid-in Capital Method of Investment Investment from Investment from
Outward Inward of the Investee Indirect Gain (Loss) December 31, Income as of
Taiwan as of Taiwan as of
Investment 2021 December 31,
December 31, December 31,
2021
2020 2021
Gatetech (Suzhou) Technology Co., The manufacture, processing and $ 672,624 Invested through Gatech $ 672,624 $ - $ - $ 672,624 $ (23,071) 73.82 $ (16,941) $ 606,138 $ -
Ltd. trading of aluminum and International Ltd. (US$ 24,300 (US$ 24,300
magnesium alloy die-casting thousand) thousand)
products
Suzhou Leoho Electronics Co., Ltd. Precision hardware components 200,676 Invested through Lucky 123,951 - - 123,951 (15,358) 70.00 (10,751) 310,412 -
manufacturing King Holdings Ltd. (US$ 4,478 (US$ 4,478
thousand) thousand)
Accumulated Outward Remittance for Upper Limit on the Amount of
Investment Amount Authorized by the
Investment in Mainland China as of Investment Stipulated by the
Investment Commission, MOEA
December 31, 2021 Investment Commission, MOEA
$1,264,284 $2,143,622 $3,586,363
(US$45,675 thousand) (US$77,443 thousand)
----- End of picture text -----

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

(Concluded)

• 69 -

TABLE 8

SYNCMOLD ENTERPRISE CORPORATION

INFORMATION ON MAJOR SHAREHOLDERS DECEMBER 31, 2021

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Shares
Name of Major Shareholder Number of Percentage of
Shares Ownership (%)
Chen Chiu-Lang 8,443,211 6.82
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• Note 1: The information of major shareholders presented in this table is provided by the Taiwan Depository & Clearing Corporation based on the number of ordinary shares and preferred shares held by shareholders with ownership of 5% or greater, that have been issued without physical registration (including treasury shares) by the Company as of the last business day for the current quarter. The share capital in the consolidated financial statements may differ from the actual number of shares that have been issued without physical registration because of different preparation basis.

• Note 2: If a shareholder delivers the shareholdings to the trust, the above information will be disclosed by the individual truster who opened the trust account. For shareholders who declare insider shareholdings with ownership greater than 10% in accordance with the Security and Exchange Act, the shareholdings include shares held by shareholders and those delivered to the trust over which shareholders have rights to determine the use of trust property. For information relating to insider shareholding declaration, please refer to Market Observation Post System.

• 70 -

SYNCMOLD ENTERPRISE CORPORATION

THE CONTENTS OF STATEMENTS OF MAJOR ACCOUNTING ITEMS

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Item Statement Index
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Item	Statement Index
Major Accounting Items in Assets, Liabilities and Equity
Statement of cash	1
Statement of financial assets at FVTPL - current	2
Statement of trade receivables	3
Statement of inventories	4
Statement of financial assets at FVTPL - non-current	5
Statement of changes in investments accounted for using the equity method	6
Statement of changes in property, plant and equipment	Note 11
Statement of changes in accumulated depreciation and accumulated impairment of	Note 11
property, plant and equipment
Statement of changes in intangible assets	Note 14
Statement of deferred income tax assets	Note 21
Statement of other payables	Note 17
Statement of deferred income tax liabilities	Note 21
Statement of short-term borrowings	7
Statement of long-term borrowings	8
Major Accounting Items in Profit or Loss
Statement of net operating revenue	9
Statement of operating cost	10
Statement of operating expenses	11

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STATEMENT 1

SYNCMOLD ENTERPRISE CORPORATION

STATEMENT OF CASH DECEMBER 31, 2021

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

Item Petty cash Cash in banks Checking accounts Demand deposits Foreign currency demand deposits (Note)	Amount $ 1,029 4,353 57,018 61,371 453,782 $ 516,182

Note: The amount of US$15,916 thousand was calculated based on the exchange rate of US$1=NT$27.680. The amount of RMB2,629 thousand was calculated based on the exchange rate of RMB1=NT$4.344. The amount of EUR4 thousand was calculated based on the exchange rate of EUR1=NT$31.32 and the amount of SGD21 thousand was calculated based on the exchange rate of SGD1=NT$20.46 and the amount of JPY2,922 thousand was calculated based on the exchange rate of JPY1=NT$0.2405 and the amount of THB639 thousand was calculated based on the exchange rate of THB1=NT$0.8347.

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STATEMENT 2

SYNCMOLD ENTERPRISE CORPORATION

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

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

Item Stock Largan Precision Co., Ltd. Winmate Inc. Advance Wireless Semiconductor Company Auras Technology Co., Ltd. CO-TECH DEVELOPMENT CORP. Foreign exchange forward contract Sell	Balance, January 1, 2021 Shares Amount 9,000 $ 28,755 1,038,000 77,954 379,198 51,192 200,000 42,800 - - 200,701 - 19,871 $ 220,572	Acquisition Shares Amount - $ - - - - - - - 1,563,000 79,734 79,734 - - $ 79,734	Decrease Gain (Losses) on Financial Assets at FVTPL - Shares Amount Non-current 9,000 $ (26,235) $ (2,520) - - 3,425 379,198 (57,911) 6,719 200,000 (38,362) (4,438) 1,563,000 (122,296) 42,562 (244,804) 45,748 - (25,843) 5,976 $ (270,647) $ 51,724	Balance, December 31, 2021 Shares Stock Price Amount Collateral Note - - $ - None - 1,038,000 78.4 81,379 None - - - - None - - - - None - - - - None - 81,379 - - 4 None - $ 81,383
	Shares 9,000 1,038,000 379,198 200,000 - -	Shares - - - - 1,563,000 -	Shares 9,000 - 379,198 200,000 1,563,000 -	Shares Stock Price - - 1,038,000 78.4 - - - - - - - -

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STATEMENT 3

SYNCMOLD ENTERPRISE CORPORATION

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

Client Name A B C Others (Note) Less: Allowance for impairment loss	Amount $ 682,757 202,446 54,203 133,175 1,072,581 (93) $ 1,072,488

Note: The amount from each individual client included in others does not exceed 5% of the account balance.

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STATEMENT 4

SYNCMOLD ENTERPRISE CORPORATION

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

Item Product Finished goods Work in process Raw material Less: Allowance for inventory valuation losses		Amount
		Cost Net Realized Value $ 14,522 $ 15,109 94 124 626 626 8,427 8,427 23,669 $ 24,286 (6,175) $ 17,494

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STATEMENT 5

SYNCMOLD ENTERPRISE CORPORATION

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

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

Item Domestic emerging market shares Gigastone Corporation Tiga Gaming Inc. Overseas unlisted shares Hercules BioVenture, L.P. Foxfortune Technology Limited Private fund China Development of Healthcare Venture of Limited Partnership Domestic third convertible bonds	Balance, January 1, 2021 Shares Amount 847,011 $ 6,708 1,332,132 8,911 15,619 342,105 12,154 1,000,000 39,425 51,579 5,017,715 3,088 - - $ 70,286	Acquisition Shares Amount - $ - - - - - - - - - 8,104,750 8,105 - 360 $ 8,465	Decrease Gain (Losses) on Financial Assets at FVTPL - Shares Amount Non-current - $ - $ 3,719 - - (1,810) - 1,909 - - (670) - - (12,401) - (13,071) - - (2,159) - - - $ - $ (13,321)	Balance, December 31, 2021 Shares Amount Collateral Note 847,011 $ 10,427 None - 1,332,132 7,101 None - 17,528 342,105 11,484 None - 1,000,000 27,024 None - - 38,508 13,122,465 9,034 None - - 360 None - - $ 65,430
	Shares 847,011 1,332,132 342,105 1,000,000 5,017,715 -	Shares - - - - 8,104,750 -	Shares - - - - - -	Shares 847,011 1,332,132 342,105 1,000,000 - 13,122,465 - -

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STATEMENT 6

SYNCMOLD ENTERPRISE CORPORATION

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

Unlisted companies Grand Advance Inc. Syncmold Enterprise (Samoa) Corp. Syncmold Enterprise (USA) Corp. High Grade Tech Co., Ltd. Corebio Technologies Co., Ltd. Smart Automation Technology Inc. Leohab Enterprise Co., Ltd. Gatetech Technology Inc. Syncmold Enterprise Vietnam Co., Ltd. Syncmold Enterprise (Malaysia) Sdn., Bhd. Syncmold Enterprise (Singapore) Pte., Ltd. Syncmold Enterprise (Thailand) Co., Ltd. Add: Credit balance of Investments reclassified to non-current liabilities	Balance as of January 1, 2021 Shares (In Thousands) Shareholding Ratio % Amount 3,546 100.00 $ 2,537,652 - 100.00 3,023,481 - 100.00 (2,522 ) 2,280 38.00 128,639 5,200 38.29 35,917 - - - 16,620 70.00 253,967 42,207 73.43 645,537 - 100.00 242,441 - 100.00 1,882 - 100.00 593 - 100.00 15,243 6,882,830 2,522 $ 6,885,352			Adjustments of the Year Exchange Share of Other Share of Profit Differences on Translating the Financial Adjustment Differences between Adjustment Differences between Actual Comprehensive Income of Subsidiaries or Loss of Statements of Acquisition of Acquisition of Accounted for Decrease in Investments Subsidiaries and Associates Foreign Operations Subsidiaries and Book Value Interest in Subsidiaries Using the Equity Method Cash Dividends $ - $ 28,229 $ (26,672 ) $ - $ - $ - $ (399,937 ) - 21,897 (19,992 ) - - - (284,264 ) - (336 ) 71 - - - - - 12,596 - (2,641 ) - 8,976 (11,400 ) (10,633 ) (4,554 ) - - - - - - (522 ) - - - - - - (8,004 ) (18,535 ) - - 1,513 - - (19,240 ) (3,443 ) - 1,056 100 - - (31,617 ) 12,197 - - - - - (2,827 ) (454 ) - - - - - 2,695 (69 ) - - - - - (14,564) (2,530) - - - - $ (10,633 ) $ (16,247 ) $ (59,427 ) $ (2,641 ) $ 1,056 $ 10,589 $ (695,601 )	Balance of December 31, 2021 Shares (In Thousands) Shareholding Ratio % Amount Note 3,546 100.00 $ 2,139,272 Notes 1 and 2 - 100.00 2,741,122 Notes 1 and 2 - 100.00 (2,787 ) Notes 1 and 2 2,280 35.63 136,170 Notes 1, 2 and 5 5,200 38.29 20,730 Notes 1, 2 and 4 1,568 49.00 15,158 Notes 1 and 2 16,620 70.00 228,941 Notes 1, 2 and 3 42,432 73.82 626,258 Notes 1 and 2 - 100.00 500,521 Notes 1 and 2 - 100.00 2,154 Notes 1 and 2 - 100.00 3,219 Notes 1 and 2 - 100.00 11,867 6,422,625 2,787 $ 6,425,412
			Increase in Investments $ - - - - - 15,680 - 2,248 277,500 3,553 - 13,718 $ 312,699
	Shares (In Thousands) Shareholding Ratio % 3,546 100.00 - 100.00 - 100.00 2,280 38.00 5,200 38.29 - - 16,620 70.00 42,207 73.43 - 100.00 - 100.00 - 100.00 - 100.00				Shares (In Thousands) Shareholding Ratio % 3,546 100.00 - 100.00 - 100.00 2,280 35.63 5,200 38.29 1,568 49.00 16,620 70.00 42,432 73.82 - 100.00 - 100.00 - 100.00 - 100.00

Note 1: Calculated based on the audited financial statements of the investee companies and the shareholding ratio.

Note 2: No pledges or guaranteed investments accounted for using the equity method as at the end of 2021.

Note 3: On December 15, 2021, the Corporation acquired additional 0.39% ownerships for $2,248 thousand, which increased the Corporation’s percentage of ownership to 73.82%.

Note 4: On July 5, 2021, the Corporation acquired 49% ownerships for $15,680 thousand.

Note 5: Considering that the Corporation’s interest in Corebio Technologies Co., Ltd. on December 31, 2021 was lower than the market value, the management conducted an impairment test on the investment on December 31, 2021, and evaluated whether the carrying amount is less than the recoverable amount. After evaluation, the book value of the investment in Corebio Technologies Co., Ltd. was higher than the recoverable amount, and an impairment loss of $10,633 thousand was recognized in 2021.

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STATEMENT 7

SYNCMOLD ENTERPRISE CORPORATION

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

Credit Type Contract Date Annual Rate (%) Ending Balance Bank loan E.SUN Commercial Bank, Ltd. 2021/10/22- 2022/01/21 0.61 $ 200,000 Chinatrust Commercial Bank Co., Ltd. - - - Yuanta Commercial Bank Co., Ltd. - - - Taishin International Bank - - - Bank SinoPac Company Limited - - - Mega International - - - Commercial Bank $ 200,000	Credit Line Security Guarantees $ 600,000 None 500,000 None 500,000 None 500,000 None 500,000 None 200,000 None $ 2,800,000

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STATEMENT 8

SYNCMOLD ENTERPRISE CORPORATION

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

Credit Type Contract Date Annual Rate (%) Bank loan E.SUN Commercial Bank, Ltd. 2021/01/27- 2033/01/27 0.90 E.SUN Commercial Bank, Ltd. 2021/01/29- 2033/01/29 0.90 Less: Current portions	Ending Balance Credit Line Security Guarantees $ 46,137 $ 46,137 Property, plant and equipment 6,593 6,593 Property, plant and equipment 52,730 $ 52,730 (4,545) $ 48,185

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STATEMENT 9

SYNCMOLD ENTERPRISE CORPORATION

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

Item Quantity Average Price Sales revenue Display hinges 22,514,683 $ 164 Others - - Other operating revenue	Amount $ 3,686,795 2,369 3,689,164 330,543 $ 4,019,707

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STATEMENT 10

SYNCMOLD ENTERPRISE CORPORATION

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

Item Raw material, beginning of year Add: Raw material purchased Less: Raw material, end of the year Sale of raw material Transferred to operating expense Raw materials used Direct labor Manufacturing expense Manufacturing cost Add: Work in process, beginning of year Less: Work in process, end of year Cost of finished goods Add: Finished goods, beginning of year Less: Finished goods, end of year Transferred to operating expense Cost of finished goods sold Add: Product, beginning of year Purchase of products Less: Product, end of year Transferred to operating expense Cost of products Add: Sale of product Inventory write-down Cost of goods sold Other operating cost

Amount $ 4,811 31,315 (8,427) (5) (8) 27,686 3,378 33,312 64,376 - (626) 63,750 101 (94) (364) 63,393 11,220 3,276,050 (14,522) (27) 3,272,721 5 5,881 3,342,000 422 $ 3,342,422

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STATEMENT 11

SYNCMOLD ENTERPRISE CORPORATION

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

Item Salary (Note 2) Others (Note 1)	Selling Expenses General and Administrative Research and Development Expense Expected Credit Loss Reversed on Trade Receivables $ 24,950 $ 145,644 $ 96,176 $ - 37,833 59,194 61,253 (617) $ 62,783 $ 204,838 $ 157,429 $ (617)	Total $ 266,770 157,663 $ 424,433

Note 1: The amount of each item in others does not exceed 5% of the account balance.

Note 2: Included salary, pension and remuneration of directors.

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