OPTO TECH CORPORATION AND SUBSIDIARIES

CONSOLIDATED FINANCIAL STATEMENTS AND INDEPENDENT AUDITORS’ REVIEW REPORT MARCH 31, 2021 AND 2020

For the convenience of readers and for information purpose only, 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. In the event of any discrepancy between the English version and the original Chinese version or any differences in the interpretation of the two versions, the Chinese-language auditors’ report and financial statements shall prevail.

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INDEPENDENT AUDITORS’ REVIEW REPORT TRANSLATED FROM CHINESE

To the Board of Directors and Shareholders of Opto Tech Corporation

Introduction

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

Scope of review

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

Basis for qualified conclusion

As explained in Notes 4(3)B and 6(7), the amounts and information of the financial statements of insignificant consolidated subsidiaries and investments accounted for using the equity method were not reviewed by independent auditors. Those statements reflect total assets of NT$782,112 thousand and NT$405,464 thousand, constituting 7.24% and 3.89% of the consolidated total assets, and total liabilities of NT$150,773 thousand and NT$145,043 thousand, constituting 4.26% and 4.19% of the consolidated total liabilities as at March 31, 2021 and 2020, and total comprehensive income (loss) (including income and loss of the associates accounted for using the equity method) of NT$10,301 thousand and NT($4,056) thousand, constituting 4.21% and (6.49%)of the consolidated total comprehensive income for the three

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months then ended.

Qualified conclusion

Except for the adjustments to the consolidated financial statements, if any, as might have been determined to be necessary had the financial statements of the insignificant subsidiaries and equity method investees been reviewed by independent auditors, that we might have become aware of had it not been for the situation described above, based on our reviews, nothing has come to our attention that causes us to believe that the accompanying consolidated financial statements do not present fairly, in all material respects, the consolidated financial position of the Group as at March 31, 2021 and 2020, and of its consolidated financial performance and its consolidated cash flows for the three months then ended in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and International Accounting Standard 34, “Interim Financial Reporting” as endorsed by the Financial Supervisory Commission.

Chiang, Tsai-Yen

[Lai, Chung-Hsi ]

For and on behalf of PricewaterhouseCoopers, Taiwan

May 6, 2021

The accompanying consolidated financial statements are not intended to present the financial position and results of operations and cash flows in accordance with accounting principles generally accepted in countries and jurisdictions other than the Republic of China. The standards, procedures and practices in the Republic of China governing the audit of such financial statements may differ from those generally accepted in countries and jurisdictions other than the Republic of China. Accordingly, the accompanying consolidated financial statements and report of independent accountants are not intended for use by those who are not informed about the accounting principles or auditing standards generally accepted in the Republic of China, and their applications in practice.

As the financial statements are the responsibility of the management, PricewaterhouseCoopers cannot accept any liability for the use of, or reliance on, the English translation or for any errors or misunderstandings that may derive from the translation.

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OPTO TECH CORPORATION AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

MARCH 31, 2021, DECEMBER 31, 2020 AND MARCH 31, 2020

(Expressed in thousands of New Taiwan dollars)

(The balance sheets as of March 31, 2021 and 2020 are reviewed, not audited)

Assets	Notes	December 31, 2020 AMOUNT % `$` `3,100,161` `29` `320,419` `3` `22,810` `-` `8,873` `-` `1,634,913` `16` `16,880` `-` `20,218` `-` `1,155,589` `11` `24,202` `-` `2,435` `-` `6,306,500` `59` `106,990` `1` `783,998` `7` `5,394` `-` `2,705,133` `26` `236,135` `2` `399,307` `4` `14,318` `-` `48,337` `1` `35,315` `-` `4,334,927` `41` `$` `10,641,427` `100`	March 31, 2020	March 31, 2020
		AMOUNT `$` `3,100,161` `320,419` `22,810` `8,873` `1,634,913` `16,880` `20,218` `1,155,589` `24,202` `2,435` `6,306,500` `106,990` `783,998` `5,394` `2,705,133` `236,135` `399,307` `14,318` `48,337` `35,315` `4,334,927` `$` `10,641,427`	AMOUNT `$` `3,116,624` `169,577` `22,810` `9,409` `1,363,147` `39,694` `25,070` `1,373,426` `43,387` `1,111` `6,164,255` `106,853` `858,835` `10,561` `2,877,948` `245,714` `-` `13,571` `88,035` `44,833` `4,246,350` `$` `10,410,605`	%
Current assets Cash and cash equivalents Financial assets at fair value through profit or loss - current Current financial assets at amortised cost, net Notes receivable, net Accounts receivable - net Accounts receivable - related parties - net Other receivables Inventories - net Prepayments Other current assets Current Assets Non-current assets Financial assets at fair value through profit or loss - noncurrent Non-current total financial assets at fair value through other comprehensive income Investments accounted for using equity method Property, plant and equipment - net Right-of-use assets Investment property, net Intangible assets Deferred tax assets Other non-current assets Non-current assets Total assets	6(1) 6(2) 6(3) and 8 6(5) 6(5) 6(5) and 7 6(6) 6(2) 6(4) 6(7) 6(8) and 8 6(9) 6(10) 6(11)			`30` `2` `-` `-` `13` `-` `-` `13` `1` `-`
				`59`
				`1` `8` `-` `28` `2` `-` `-` `1` `1`
				`41`
				`100`

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OPTO TECH CORPORATION AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

MARCH 31, 2021, DECEMBER 31, 2020 AND MARCH 31, 2020

(Expressed in thousands of New Taiwan dollars) (The balance sheets as of March 31, 2021 and 2020 are reviewed, not audited)

				March 31, 2021				December 31, 2020				March 31, 2020
Liabilities andEquity	Notes			AMOUNT	%			AMOUNT	%			AMOUNT	%
Current liabilities
Short-term loans	6(12)		`$`	`232,996`		`2`	`$`	`230,758`		`2`	`$`	`263,848`	`3`
Financial liabilities at fair value	6(2)
through profit or loss - current				`2,063`		`-`		`799`		`-`		`287`	`-`
Notes payable				`-`		`-`		`1,757`		`-`		`1,295`	`-`
Accounts payable				`675,092`		`6`		`665,926`		`6`		`623,824`	`6`
Accounts payable - related parties	7			`52,561`		`1`		`51,920`		`1`		`77,829`	`1`
Other payables	6(13)			`1,184,664`	`11`			`619,042`		`6`		`958,278`	`9`
Current income tax liabilities				`76,367`		`1`		`25,969`		`-`		`132,694`	`1`
Provisions for liabilities - current	6(16)			`6,260`		`-`		`4,033`		`-`		`7,848`	`-`
Current lease liabilities	7			`19,543`		`-`		`19,560`		`-`		`18,780`	`-`
Long-term liabilities, current portion	6(14)			`787,238`		`7`		`62,960`		`1`		`31,963`	`-`
Other current liabilities, others	6(21) and 7			`53,089`		`1`		`50,840`		`-`		`38,502`	`1`
Current Liabilities				`3,089,873`	`29`			`1,733,564`	`16`			`2,155,148`	`21`
Non-current liabilities
Long-term loans	6(14)			`-`		`-`		`748,555`		`7`		`786,657`	`7`
Provisions for liabilities - non-	6(16)
current				`18,760`		`-`		`18,808`		`-`		`15,493`	`-`
Deferred tax liabilities				`41,587`		`-`		`42,986`		`1`		`74,107`	`1`
Non-current lease liabilities	7			`211,868`		`2`		`216,706`		`2`		`225,442`	`2`
Other non-current liabilities	6(15)			`178,077`		`2`		`187,482`		`2`		`201,573`	`2`
Non-current liabilities				`450,292`		`4`		`1,214,537`	`12`			`1,303,272`	`12`
Total Liabilities				`3,540,165`	`33`			`2,948,101`	`28`			`3,458,420`	`33`
Equity attributable to owners of
parent
Capital	6(17)
Common stock				`3,786,228`	`35`			`3,786,228`	`35`			`3,786,228`	`36`
Capital Reserve	6(18)
Capital surplus				`703,108`		`6`		`703,108`		`7`		`702,965`	`7`
Retained Earnings	6(19)
Legal reserve				`729,360`		`7`		`729,360`		`7`		`669,312`	`7`
Special reserve				`3,743`		`-`		`3,743`		`-`		`8,392`	`-`
Unappropriated earnings				`2,092,052`	`19`			`2,361,920`	`22`			`1,584,407`	`15`
Other Equity Adjustments	6(20)
Other equity interest				`187,125`		`2`		`187,351`		`2`		`220,414`	`2`
Treasury stocks	6(17)
Treasury stocks		`(`		`244,429 ) (`		`2) (`		`82,021) (`		`1) (`		`23,172)`	`-`
Equity attributable to owners of
parent				`7,257,187`	`67`			`7,689,689`	`72`			`6,948,546`	`67`
Non-controlling interest				`3,639`		`-`		`3,637`		`-`		`3,639`	`-`
Total equity				`7,260,826`	`67`			`7,693,326`	`72`			`6,952,185`	`67`
Significant contingent liabilites and	9
unrecognised contract commitments
Significant events after the balance	11
sheet date
Total liabilities and equity			`$`	`10,800,991`	`100`		`$`	`10,641,427`	`100`		`$`	`10,410,605`	`100`

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

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OPTO TECH CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME THREE MONTHS ENDED MARCH 31, 2021 AND 2020

(Expressed in thousands of New Taiwan dollars , except earnings per share) (UNAUDITED)

Items Three months ended March 31
2021
2020
Notes
AMOUNT
%
AMOUNT
%
6(21) and 7
$
1,583,411
100
$
1,164,079
100
6(6)(26)(27) and
7
(
1,086,858 ) (
69) (
817,637) (
70 )
496,553
31
346,442
30
6(26)(27)
(
27,850 ) (
2) (
31,732) (
3 )
(
151,682 ) (
9) (
107,880) (
9 )
(
27,071 ) (
2) (
72,903) (
6 )
12(2)
(
7,791 )
- (
1,285)
-
(
214,394 ) (
13) (
213,800) (
18 )
282,159
18
132,642
12
6(22)
2,006
-
3,739
-
6(23)
16,772
1
18,463
2
6(24)
480
-
6,233
-
6(25)
(
5,648 )
- (
8,504) (
1 )
6(7)
3,607
-
1,976
-
17,217
1
21,907
1
299,376
19
154,549
13
6(28)
(
54,315 ) (
4) (
33,002) (
3 )
$
245,061
15
$
121,547
10

Operating revenue
Operating costs
Gross profit, net
Operating expenses
Selling expenses
General & administrative expenses
Research and development expenses
Expected credit loss on financial
Total operating expenses
Operating profit
Non-operating income and expenses
Interest income
Other income
Other gains and losses
Finance costs
Share of profit of associates and joint
ventures accounted for under equity
method
Total non-operating revenue and
expenses
Profit before income tax
Income tax expense
Profit for the period

Items	Three months ended March 31 2021 2020 Notes AMOUNT % AMOUNT % 6(21) and 7 `$` `1,583,411` `100` `$` `1,164,079` `100` 6(6)(26)(27) and 7 `(` `1,086,858 ) (` `69) (` `817,637) (` `70 )` `496,553` `31` `346,442` `30` 6(26)(27) `(` `27,850 ) (` `2) (` `31,732) (` `3 )` `(` `151,682 ) (` `9) (` `107,880) (` `9 )` `(` `27,071 ) (` `2) (` `72,903) (` `6 )` 12(2) `(` `7,791 )` `- (` `1,285)` `-` `(` `214,394 ) (` `13) (` `213,800) (` `18 )` `282,159` `18` `132,642` `12` 6(22) `2,006` `-` `3,739` `-` 6(23) `16,772` `1` `18,463` `2` 6(24) `480` `-` `6,233` `-` 6(25) `(` `5,648 )` `- (` `8,504) (` `1 )` 6(7) `3,607` `-` `1,976` `-` `17,217` `1` `21,907` `1` `299,376` `19` `154,549` `13` 6(28) `(` `54,315 ) (` `4) (` `33,002) (` `3 )` `$` `245,061` `15` `$` `121,547` `10`
Operating revenue Operating costs Gross profit, net Operating expenses Selling expenses General & administrative expenses Research and development expenses Expected credit loss on financial Total operating expenses Operating profit Non-operating income and expenses Interest income Other income Other gains and losses Finance costs Share of profit of associates and joint ventures accounted for under equity method Total non-operating revenue and expenses Profit before income tax Income tax expense Profit for the period

(Continued)

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OPTO TECH CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME THREE MONTHS ENDED MARCH 31, 2021 AND 2020

(Expressed in thousands of New Taiwan dollars , except earnings per share) (UNAUDITED)

Items	Three	months ended March 31
	2021	2020
Other comprehensive income (loss) Items that will not be reclassified to profit or loss Unrealised (loss) gains on valuation of fiancial assets at fair value through other comprehensive income Income tax related to components of other comprehensive income that will not be reclassified to profit or loss Total other comprehensive income that will not be reclassified to profit or loss, net of tax Items that will be reclassified to profit or loss Currency translation differences of foreign operations Share of other comprehensive loss of associates and joint ventures accounted for using equity method Total other comprehensive income(loss) that will be reclassified to profit or loss, net of tax Total other comprehensive (loss) income that will be reclassified to profit or loss, net of tax Total comprehensive income for the period Profit (loss), attributable to: Owners of the parent Non-controlling interest Total comprehensive income attributable to: Owners of the parent Non-controlling interest Earnings per share Profit for the period Diluted earnings per share Profit for the period
	`$`

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

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OPTO TECH CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY THREE MONTHS ENDED MARCH 31, 2021 AND 2020

(Expressed in thousands of New Taiwan dollars)

(UNAUDITED)

Note					Equity attr	ibutableto owners	of the parent	of the parent	of the parent				Non-controlling interest
	Common stock	Capital reserve		R	etainedEarnings		Otherequityinterest			Treasurystocks		Total
			Legal reserve		Special reserve	Unappropriated earnings	Financial statements translation differences of foreign operations		Unrealised gains (losses) from financial assets measured at fair value through other comprehensive income
6(4)(20) 6(19) 6(4)(20) 6(19) 6(17)	`$ 3,786,228` `-` `-` `-` `-` `$ 3,786,228` `$ 3,786,228` `-` `-` `-` `-` `-` `$ 3,786,228`	`$ 702,965` `-` `-` `-` `-` `$ 702,965` `$ 703,108` `-` `-` `-` `-` `-` `$ 703,108`	`$ 669,312` `-` `-` `-` `-` `$ 669,312` `$ 729,360` `-` `-` `-` `-` `-` `$ 729,360`		`$` `8,392` `-` `-` `-` `-` `$` `8,392` `$` `3,743` `-` `-` `-` `-` `-` `$` `3,743`	`$ 1,841,481` `121,549` `-` `121,549` `(` `378,623 )` `$ 1,584,407` `$ 2,361,920` `245,059` `-` `245,059` `(` `514,927 )` `-` `$ 2,092,052`	`($` `9,372` `)` `-` `(` `881` `)` `(` `881` `)` `-` `($` `10,253` `)` `($` `4,063` `)` `-` `492` `492` `-` `-` `($` `3,571` `)`	`$` `288,841` `-` `(` `58,174 )` `(` `58,174 )` `-` `$` `230,667` `$` `191,414` `-` `(` `718 )` `(` `718 )` `-` `-` `$` `190,696`		`($` `23,172` `)` `-` `-` `-` `-` `($` `23,172` `)` `($` `82,021` `)` `-` `-` `-` `-` `(` `162,408` `)` `($ 244,429` `)`	`$ 7,264,675` `121,549` `(` `59,055` `)` `62,494` `(` `378,623` `)` `$ 6,948,546` `$ 7,689,689` `245,059` `(` `226` `)` `244,833` `(` `514,927` `)` `(` `162,408` `)` `$ 7,257,187`		`$` `3,641` `(` `2` `)` `-` `(` `2` `)` `-` `$` `3,639` `$` `3,637` `2` `-` `2` `-` `-` `$` `3,639`	`$ 7,268,316` `121,547` `(` `59,055` `)` `62,492` `(` `378,623` `)` `$ 6,952,185` `$ 7,693,326` `245,061` `(` `226` `)` `244,835` `(` `514,927` `)` `(` `162,408` `)` `$ 7,260,826`

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

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OPTO TECH CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS

THREE MONTHS ENDED MARCH 31, 2021 AND 2020

(Expressed in thousands of New Taiwan dollars)

(UNAUDITED)

CASH FLOWS FROM OPERATING ACTIVITIES
Profit before tax
Adjustments
Income and expenses having no effect on cash flows
Expected credit losses on financial assets

Depreciation

Amortization

Net (gain) loss on financial assets and liabilities at fair
value through profit or loss

Interest expense

Interest income

Dividend income

Loss on disposal of property, plant and equipment

Share of profit of associates and joint ventures
accounted for using equity method

Changes in assets/liabilities relating to operating
activities
Changes in operating assets
Acquisition of financial assets at fair value through
profit or loss
Notes receivable - net
Accounts receivable - net
Accounts receivable - related parties - net
Other receivables
Inventories - net
Prepayments
Other current assets
Other non-current assets
Net changes in liabilities relating to operating
activities
Notes payable
Accounts payable
Accounts payable - related parties
Other payables
Other current liabilities.other
Provisions for liabilities
Net defined benefit liability
Cash inflow generated from operations
Interest received
Dividends received
Interest paid
Income tax paid
Net cash flows from operating activities Three months ended March 31
Notes
2021
2020
$
299,376 $
154,549
12(2)
7,791
1,285
6(8)(9)(26)
114,246
118,615
6(11)(26)
4,498
3,507
6(2)(24)
(
502 ) (
7 )
6(25)
5,179
8,040
6(22)
(
2,006 ) (
3,739 )
6(23)
(
10,344 ) (
12,443 )
6(8)(24)
69
-
6(7)
(
3,607 ) (
1,976 )
(
278,164 )
-
7,075
3,642
147,242
50,731
(
19,116 ) (
6,906 )
(
5,707 ) (
6,143 )
66,678 (
133,728 )
(
28,126 )
1,715
935
2,338
3,433 (
1,653 )
(
1,757 )
1,289
9,166 (
27,243 )
641 (
862 )
51,263
29,159
2,249
2,996
2,179 (
683 )
(
9,412 )
283
363,279
182,766
1,919
3,823
10,344
12,443
(
5,747 ) (
6,532 )
(
1,091 ) (
1,425 )
368,704
191,075

(Continued)

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OPTO TECH CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS

THREE MONTHS ENDED MARCH 31, 2021 AND 2020

(Expressed in thousands of New Taiwan dollars)

(UNAUDITED)

CASH FLOWS FROM INVESTING ACTIVITIES
Acquistion of financial assets at amortised cost

Acquisition of property, plant and equipment

Proceeds from disposal of property, plant and equipment
Acquisition of intangible assets

(Increase)Decrease deposits-out
Net cash flows used in investing activities
CASH FLOWS FROM FINANCING ACTIVITIES
Increase in short-term loans

Decrease in short-term loans

Decrease in long-term loans

Repayments of principal portion of lease liabilities

Decrease in guarantee deposits

Stock repurchased

Net cash flows (used in) from financing activities
Effect of change in exchange rate
Net (decrease) increase in cash and cash equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period Three months ended March 31
Notes
2021
2020
6(3)
($
280,000 ) $
-
6(8)
(
35,169 ) (
83,304 )
44
-
6(11)
(
4,584 ) (
2,849 )
(
2,440 )
313
(
322,149 ) (
85,840 )
6(31)
155,849
202,939
6(31)
(
157,063 ) (
190,259 )
6(31)
(
32,101 )
-
6(31)
(
4,855 ) (
5,308 )
6(31)
7 (
119 )
6(17)
(
162,408 )
-
(
200,571 )
7,253
10,866
6,671
(
143,150 )
119,159
3,100,161
2,997,465
$
2,957,011 $
3,116,624

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

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OPTO TECH CORPORATION AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS THREE MONTHS ENDED MARCH 31, 2021 AND 2020

(Expressed in thousands of New Taiwan dollars, except as otherwise indicated)

(Reviewed, not audited)

1. History and Organization

Opto Tech Corporation (the “Company”) was incorporated as a company limited by shares under the provisions of the Company Law of the Republic of China (R.O.C.). The shares of the Company have been traded on the Taiwan Stock Exchange since May 2, 1995. The Company and its subsidiaries (collectively referred herein as the “Group”) are primarily engaged in the manufacture and sales of semiconductor components as well as research and development, design, manufacture and sales of systems products.

The Date of Authorization for Issuance of the Consolidated Financial Statements And Procedures for

Authorization

These consolidated financial statements were reported to the Board of Directors on May 6, 2021.

3. Application of New Standards, Amendments and Interpretations

(1) Effect of the adoption of new issuances of or amendments to International Financial Reporting Standards (“IFRS”) as endorsed by the Financial Supervisory Commission (“FSC”)

New standards, interpretations and amendments endorsed by the FSC effective from 2021 are as follows:

	Effective date by
	International Accounting
New Standards,Interpretations and Amendments	Standards Board
Amendments to IFRS 4, ‘Extension of the temporary exemption	January 1, 2021
from applying IFRS 9’
Amendments to IFRS 9, IAS 39, IFRS 7, IFRS 4 and IFRS 16, ‘	January 1, 2021
Interest Rate Benchmark Reform— Phase 2’

The above standards and interpretations have no significant impact to the Group’s financial condition and financial performance based on the Group’s assessment.

(2) Effect of new issuances of or amendments to IFRSs as endorsed by the FSC but not yet adopted by

the Group

None.

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(3) IFRSs issued by IASB but not yet endorsed by the FSC

New standards, interpretations and amendments issued by IASB but not yet included in the IFRSs endorsed by the FSC are as follows:

==> picture [479 x 49] intentionally omitted <==

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

Effective date by
International Accounting
New Standards, Interpretations and Amendments Standards Board
----- End of picture text -----

New Standards,Interpretations and Amendments	Effective date by International Accounting Standards Board
Amendments to IFRS 3, ‘Reference to the conceptual framework’	January 1, 2022
Amendments to IFRS 10 and IAS 28, ‘Sale or contribution of assets	To be determined by
between an investor and its associate or joint venture’	International Accounting
	Standards Board
Amendment to IFRS 16, ‘Covid-19-related rent concessions beyond 30 June 2021’	April 1, 2021
IFRS 17, ‘Insurance contracts’	January 1, 2023
Amendments to IFRS 17, 'Insurance contracts'	January 1, 2023
Amendments to IAS 1, ‘Classification of liabilities as current or non-	January 1, 2023
current’
Amendments to IAS 1, ‘Disclosure of accounting policies’	January 1, 2023
Amendments to IAS 8, ‘Definition of accounting estimates’	January 1, 2023
Amendments to IAS 16, ‘Property, plant and equipment:proceeds before	January 1, 2022
intended use’
Amendments to IAS 37, ‘Onerous contracts—cost of fulfilling a contract	January 1, 2022
Annual improvements to IFRS Standards 2018–2020	January 1, 2022

The above standards and interpretations have no significant impact to the Group’s financial condition and financial performance based on the Group’s assessment.

4. Summary of Significant Accounting Policies

The principal accounting policies adopted are consistent with Note 4 in the consolidated financial statements for the year ended December 31, 2020, except for the compliance statement, basis of preparations, basis of consolidation and additional policies as set out below. These policies have been consistently applied to all the periods presented, unless otherwise stated.

(1) Compliance statement

A. The consolidated financial statements of the Group have been prepared in accordance with the “Regulations Governing the Preparation of Financial Reports by Securities Issuers” and the International Accounting Standard 34, ‘Interim Financial Reporting’ as endorsed by the FSC.
B. These consolidated financial statements are to be read in conjunction with the consolidated financial statements for the year ended December 31, 2020.

(2) Basis of preparation

A. Except for the following items, the consolidated financial statements have been prepared under the historical cost convention:
(a) Financial assets and financial liabilities (including derivative instruments) at fair value through

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profit or loss.

  - (b) Financial assets at fair value through other comprehensive income.

  - (c) Defined benefit liabilities recognised based on present value of defined benefit obligation less the net amount of pension fund assets.

B. The preparation of financial statements in conformity with International Financial Reporting Standards, International Accounting Standards, IFRIC Interpretations, and SIC Interpretations as endorsed by the FSC (collectively referred herein as the “IFRSs”) requires the use of certain critical accounting estimates. It also requires management to exercise its judgement in the process of applying the Group’s accounting policies. The areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates are significant to the consolidated financial statements are disclosed in Note 5.
(3) Basis of consolidation
A. The basis for preparation of consolidated financial statements are consistent with those of the year ended December 31, 2020.
B. Subsidiaries included in the consolidated financial statements:

Name of Investor	Name of Subsidiary	Main Business Activities	March 31,2021 December 31,2020 March 31, 2020 100.00 100.00 100.00 - - 100.00 - - 100.00 99.87 99.87 99.87 50.00 50.00 - 100.00 100.00 - - - 100.00 - - 50.00 100.00 100.00 100.00 Ownership (%)	March 31,2021 December 31,2020 March 31, 2020 100.00 100.00 100.00 - - 100.00 - - 100.00 99.87 99.87 99.87 50.00 50.00 - 100.00 100.00 - - - 100.00 - - 50.00 100.00 100.00 100.00 Ownership (%)	Description Notes 1 & 6 Notes 2 & 6 Notes 3 & 6 Notes 4 & 6 Notes 2 & 6 Notes 5 & 6 Notes 2 & 6 Notes 2 & 6 Notes 4 & 6
			March 31,2021	December 31,2020
Opto Tech Corp. Opto Tech Corp. Opto Tech Corp. Opto Tech Corp. Opto Tech Corp. Opto Tech Corp. OTIG OTIG CSB	Ho Chung Investment Co., Ltd. (Ho Chung Investment) Opto Technology International Group Co., Ltd. (OTIG) Opto Tech (Macao) Co., Ltd. (Opto Macao) CS Bright Corporation(CSB) Everyung Investment Ltd.( Everyung) Dongzhen Asset Co., Ltd. Opto Tech (Cayman) Co., Ltd. ( Opto (Cayman) ) Everyung Investment Ltd. (Everyung) Bright Investment International Ltd. (Bright)	Investment business Holding company International trade Manufacture and sales of LED and electronic products Holding company Investment business Holding company Holding company Holding company	100.00 - - 99.87 50.00 100.00 - - 100.00	100.00 - - 99.87 50.00 100.00 - - 100.00

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					Ownership (%)	Ownership (%)
Name	of	Name of	Main Business	March	December		March 31,
Investor		Subsidiary	Activities	31, 2021	31, 2020		2020		Description
Bright	Everyung Investment		Holding company	50.00	50.00	50.00		Note 6
		Ltd. (Everyung)
Everyung	Opto Plus		Manufacture and	100.00	100.00	100.00		Note 6
		Technology Co.,	sales of LED and
		Ltd. (Opto Plus)	electronic products

Note 1: Ho Chung Investment has been continuously acquiring the Company’s common stock amounting to 755 thousand shares and disposed 352 thousand shares from 1998 to 2000. It holds about 0.2% of the Company’s outstanding common stock.
Note 2: The Board of Directors of the Company resolved the liquidation of foreign subsidiaries, Opto Technology Intenational Group Co., Ltd.(OTIG) and OptoTech (Cayman)Co., Ltd.(Opto(Cayman)), on August 14, 2017. Opto(Cayman) has completed the liquidation process on September 16, 2020 and remitted share capital black to OTIG. OTIG has completed the liquidation process on October 26, 2020. The Company formerly held 50% equity shares of foreign controlling company, Everyung Investment Ltd. (Everyung), through OTIG. After OTIG completed the liquidation process, the Company generally accepted its assets and directly held 50% equity shares of Everyung.
Note 3: The Board of Directors of the Company resolved the liquidation of foreign subsidiaries, Opto Macao on April 28 , 2020. Opto Macao has completed the liquidation process on September 29, 2020 and remitted share capital back to Opto Tech Corporation.
Note 4: The Board of Directors of the Company resolved the liquidation of foreign subsidiaries, CB Bright Corporation (CSB), on September 10, 2020. The effective date was set on December 31, 2020, the liquidation is still in process. The share equity of Bright Investment International Ltd. which was held by CS Bright Corporation (CSB) had been transferred to the Company on April 22, 2021.
Note 5: The Company was established on November 25, 2020 and acquired 100% equity interests in subsidiary, Dongzhen Asset Co., Ltd., which was included in the consolidated statements starting from the acquisition date.
Note 6: The financial statements of the entity as of and for the three months ended March 31, 2021 and 2020 were not reviewed by the independent auditors as the entities did not meet the definition of significant subsidiaries.
C. Subsidiaries not included in the consolidated financial statements ： None.
D. Adjustments for subsidiaries with different balance sheet dates ： None.
E. Nature and extent of significant restrictions on its ability to access or use assets, and settle liabilities of the Group ： None.
F. Subsidiaries that have non-controlling interests that are material to the Group ： None.

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(4) Employee benefits

Pension cost for the interim period is calculated on a year-to-date basis by using the pension cost rate derived from the actuarial valuation at the end of the prior financial year, adjusted for significant market fluctuations since that time and for significant curtailments, settlements, or other significant one-off events. And, the related information is disclosed accordingly.

(5) Income tax

  - A. The interim period income tax expense is recognised based on the estimated average annual effective income tax rate expected for the full financial year applied to the pretax income of the interim period, and the related information is disclosed accordingly.

  - B. If a change in tax rate is enacted or substantively enacted in an interim period, the Group recognises the effect of the change immediately in the interim period in which the change occurs. The effect of the change on items recognised outside profit or loss is recognised in other comprehensive income or equity while the effect of the change on items recognised in profit or loss is recognised in profit or loss.

Critical Accounting Judgements, Estimates and Key Sources of Assumption Uncertainty
There have been no significant change as of March 31, 2021. Please refer to Note 5 in the consolidated financial statements for the year ended December 31, 2020.
Details of Significant Accounts

(1) Cash and cash equivalents

ancial statements for the year ended December 31, 2020. tails of Significant Accounts Cash and cash equivalents
March 31, 2021 Cash on hand 171 $ Checking accounts and demand deposits 901,606 Time deposits 1,695,234 Cash equivalents - Resale bonds 360,000 Total 2,957,011 $	December 31, 2020 341 $ 677,614 2,064,206 358,000 3,100,161 $	March 31,2020
		477 $ 518,787 2,172,360 425,000
		3,116,624 $

A. The Group transacts with a variety of financial institutions all with high credit quality to disperse credit risk, so it expects that the probability of counterparty default is remote.
B. Cash and cash equivalents all amounting to $22,810 were pledged to others as collateral for the leases of land and dormitory as of March 31, 2021, December 31, 2020 and March 31, 2020, and were classified as other financial assets at amortised cost. Please refer to Note 8 for the details.

~15~

(2) Financial assets at fair value through profit or loss

Items	March	31,2021		31,2020	March	31,2020
Current items:
Financial assets mandarorily measured at fair
value through profit or loss
Funds	$	565,000	$	315,000	$	165,000
Listed stocks		28,164		-		-
Valuation adjustment
Funds		5,506		5,248		4,548
Forward exchange contracts		8		171		29
Equity instruments		1,671		-		-
Total	$	600,349	$	320,419	$	169,577
Financial liabilities mandatority measured at
fair value through profit and loss
Forward exchange contracts	($	2,063)	($	799)	($	287)

Non-current items:
Financial assets mandarorily measured at fair
value through profit or loss
Unlisted stocks	$	127,048	$	127,048	$	127,048
Valuation adjustment	(	20,058)	(	20,058)	(	20,195)
Total	$	106,990	$	106,990	$	106,853

A. The Group recognised net gain of $502 and $7 on financial assets and financial liabilities held for trading for three months ended March 31, 2021 and 2020, respectively.
B. The non-hedging derivative instrument transactions and contract information are as follows:

		March 31, 2021
		Contract Amount
Derivative Instruments	(Nominal Principal)		Contractperiod
Assets - Current items:
Forward exchange contracts	USD	1,000 $	March 24, 2021~
		(thousands)	May 13, 2021
Liabilities-Current items:
Forward exchange contracts	USD	8,000 $	March 8, 2021~
		(thousands)	May 18, 2021

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==> picture [466 x 295] intentionally omitted <==

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

December 31, 2020
Contract Amount
Derivative Instruments (Nominal Principal) Contract period
Assets - Current items:
Forward exchange contracts USD $ 2,000 December 1, 2020~
January 21, 2021
(thousands)
Liabilities-Current items:
Forward exchange contracts USD $ 3,000 December 21, 2020~
(thousands) January 26, 2021
March 31, 2020
Contract Amount
Assets Financial instruments (Nominal Principal) Contract period
Assets-Current items:
Forward exchange contracts USD $ 1,000 March 17, 2020~
(thousands) May 7, 2020
Liabilities - Current items:
Forward exchange contracts USD $ 3,000 February 20, 2020~
(thousands) April 23, 2020
----- End of picture text -----

The Group entered into forward exchange contracts to sell USD and buy TWD to hedge exchange rate risk of export proceeds. However, these forward exchange contracts are not accounted for under hedge accounting.

C. The Group has no financial assets at fair value through other comprehensive income pledged to others as collateral.
D. Information relating to credit risk of financial assets at fair value through profit or loss is provided in Note 12(2).

(3) Financial assets at amortised cost

in Note 12(2). Financial assets at amortised cost
Items Current items: Time deposits with maturity over three months Restricted time deposit	March 31,2021 280,000 $ 22,810 302,810 $	December 31,2020 - $ 22,810 22,810 $	March 31,2020
			- $ 22,810
			22,810 $

A. The Group recognised interest income of $32 for financial assets at amortised cost for both three months ended March 31, 2021 and 2020.
B. Details of the Group’s financial assets at amortised cost pledged to others as collateral are provided in Note 8.
C. Information relating to credit risk of financial assets at amortised cost is provided in Note 12(2).

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(4) Financial assets at fair value through other comprehensive incomes

Items Non-current items: Equity instruments Listed stocks Unlisted stocks Subtotal Valuation adjustment Total	March 31,2021 December 31,2020 73,574 $ 73,574 $ 477,809 477,809 551,383 551,383 231,897 232,615 783,280 $ 783,998 $	March 31,2020 73,574 $ 481,409 554,983 303,852
		858,835 $

A. The Group has elected to classify equity instruments that are considered to be strategic investments as financial assets at fair value through other comprehensive income. The fair value of such investments amounted to $783,280, $783,998 and $858,835 as at March 31, 2021, December 31, 2020 and March 31, 2020, respectively.
B. The Group has no financial assets at fair value through other comprehensive income pledged to others as collateral.
C. Amounts recognized in profit or los and other comprehensive income in relation to the financial assets at fair value through other comprehensive income are listed below:

				2021 Three months	2021 Three months	2020 ended March	2020 ended March	31
Equity instrument at fair value through other
comprehensive income
Fair value change recognised in other			($		718)	($	58,174)
comprehensive income
Dividend income recongnised in profit or loss			$		10,344	$	12,443
Held at end of period
Notes and accounts receivable
		March 31,		2021	December		31,2020	March		31,2020
Notes reveivable	$			1,798	$		8,873	$		9,409
Accounts receivable			1,495,691				1,642,933		1,386,253
Accounts receivable - related parties			35,996				16,880			39,694
Less : Allowance for uncollectible accounts	(		15,811)		(		8,020)	(		23,106)
	$		1,517,674		$		1,660,666	$	1,412,250

(5) Notes and accounts receivable

As of March 31, 2021, December 31, 2020 and March 31, 2020, accounts receivable and notes receivable were all from contracts with customers. And as of January 1, 2020, the balance of receivables from contracts with customers amounted to $ 1,482,823.

~18~

A. The ageing analysis of accounts receivable is as follows:

Without past due Up to 180 days 181 to 365 days Over 365 days	March 31,2021 1,499,690 $ 26,789 2,759 2,449 1,531,687 $	December 31,2020 1,618,397 $ 34,823 4,771 1,822 1,659,813 $	March 31,2020 1,373,979 $ 30,237 2,287 19,444 1,425,947 $

The ageing analysis was based on past due date.

B. The ageing analysis of notes receivable is as follows:

The ageing analysis was based on past due date. The ageing analysis of notes receivable is as follows:
The ageing analysis was based on the maturity date of the promissory note. March 31, 2021 December 31, 2020 Without past due 1,798 $ 8,873 $	March 31,2020
	9,409 $

C Information relating to credit risk of accounts receivable and notes receivale is provided in Note 12(2).

(6) Inventories

12(2). Inventories
Raw materials Supplies Work in process Semi-finished goods Finished goods Total	March 31, 2021 215,613 $ 304,761 263,464 74,440 230,633 1,088,911 $	December 31,2020 196,857 $ 252,103 261,112 88,817 356,700 1,155,589 $	March 31,2020
			264,993 $ 251,009 386,639 63,831 406,954
			1,373,426 $

A.The cost of inventories recognised as expense for the period:

		Three months ended	Three months ended	March 31
		2021		2020
Cost of goods sold	$	1,095,601	$	802,091
(Gain on reversal ) loss on decline in
market value	(	8,743)		15,546
	$	1,086,858	$	817,637

B. During the three months ended March 31, 2021 , because of the rise of the Group’s product prices, the net realised value was reversed and recognised as reduction of cost of goods sold.
C. During the three months ended March 31, 2020 , the Group wrote down inventory from cost to net realisable value accounted for as ‘cost of goods sold’.

~19~

(7) Investments accounted for using equity method

==> picture [484 x 136] intentionally omitted <==

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

2021 2020
At January 1 $ 5,394 $ 8,768
Share of profit of investment accounted for using
equity method 3,607 1,976
Change in other equity items (Note 6(20)) ( 6) ( 183)
At March 31 $ 8,995 $ 10,561
Associated enterprises March 31, 2021 December 31, 2020 March 31, 2020
VML TECHNOLOGIES B.V. $ 8,995 $ 5,394 $ 10,561
----- End of picture text -----

~20~

(8) Property, plant and equipment

2021

												2021
																		Construction in
										Pollution								progress and
			Buildings				Utility		prevention		Transportation			Office		Other	prepayment for
At January 1		and structures			Machinery		facilities			facilities		equipment		equipment		equipment			equipment		Total
Cost	$		2,041,199	$	5,444,530	$	1,050,132	$		707,319	$	13,288	$	81,650	$	1,937,717	$		114,523	$	11,390,358
Accumulated depreciation	(		1,193,941)	(	4,277,941)	(	931,593)	(		597,978)	(	8,104)	(	69,172)	(	1,570,993)			-	(	8,649,722)
Accumulated impairment	(		59)	(	35,388)		-			-		-	(	19)	(	37)			-	(	35,503)
	$		847,199	$	1,131,201	$	118,539	$		109,341	$	5,184	$	12,459	$	366,687	$		114,523	$	2,705,133
Three months ended March 31
Opening net book amount	$		847,199	$	1,131,201	$	118,539	$		109,341	$	5,184	$	12,459	$	366,687	$		114,523	$	2,705,133
Additions			242		837		3,026			820		-		531		4,080			25,633		35,169
Disposals			-		-		-			-		-	(	113)		-			-	(	113)
Reclassifications			-		29,080		-			16,472		-		762		14,621	(		60,935)		-
Depreciation expense	(		14,720)	(	69,506)	(	4,749)	(		3,979)	(	341)	(	1,138)	(	14,465)			-	(	108,898)
Net exchange differences			680		203		-			-		3		2		-			-		888
Closing net book amount	$		833,401	$	1,091,815	$	116,816	$		122,654	$	4,846	$	12,503	$	370,923	$		79,221	$	2,632,179
At March 31
Cost	$		2,042,992	$	5,474,945	$	1,053,158	$		724,611	$	13,297	$	79,139	$	1,956,418	$		79,221	$	11,423,781
Accumulated depreciation	(		1,209,532)	(	4,347,742)	(	936,342)	(		601,957)	(	8,451)	(	66,617)	(	1,585,458)			-	(	8,756,099)
Accumulated impairment	(		59)	(	35,388)		-			-		-	(	19)	(	37)			-	(	35,503)
	$		833,401	$	1,091,815	$	116,816	$		122,654	$	4,846	$	12,503	$	370,923	$		79,221	$	2,632,179

~21~

2020

											2020
																	Construction in
									Pollution								progress and
		Buildings				Utility		prevention		Transportation			Office		Other	prepayment for
At January 1	and structures			Machinery		facilities			facilities		equipment		equipment		equipment			equipment		Total
Cost	$	2,028,554	$	5,625,019	$	1,118,047	$		717,932	$	8,703	$	78,865	$	1,949,344	$		116,824	$	11,643,288
Accumulated depreciation	(	1,135,179)	(	4,381,982)	(	974,309)	(		594,031)	(	7,337)	(	66,858)	(	1,567,562)			-	(	8,727,258)
Accumulated impairment	(	59)	(	6,742)		-			-		-	(	19)	(	83)			-	(	6,903)
	$	893,316	$	1,236,295	$	143,738	$		123,901	$	1,366	$	11,988	$	381,699	$		116,824	$	2,909,127
											2020
Three months ended March 31
Opening net book amount	$	893,316	$	1,236,295	$	143,738	$		123,901	$	1,366	$	11,988	$	381,699	$		116,824	$	2,909,127
Additions		470		10,643		791			765		-		-		6,409			64,226		83,304
Reclassifications		5,609		5,582		5,131			1,229		-		-		-	(		17,551)		-
Depreciation expense	(	14,509)	(	70,258)	(	5,392)	(		4,423)	(	175)	(	972)	(	17,075)			-	(	112,804)
Net exchange differences	(	1,291)	(	379)		-			-	(	6)	(	3)		-			-	(	1,679)
Closing net book amount	$	883,595	$	1,181,883	$	144,268	$		121,472	$	1,185	$	11,013	$	371,033	$		163,499	$	2,877,948
At March 31
Cost	$	2,031,772	$	5,635,317	$	1,123,969	$		719,925	$	8,687	$	78,696	$	1,955,753	$		163,499	$	11,717,618
Accumulated depreciation	(	1,148,118)	(	4,446,692)	(	979,701)	(		598,453)	(	7,502)	(	67,664)	(	1,584,637)			-	(	8,832,767)
Accumulated impairment	(	59)	(	6,742)		-			-		-	(	19)	(	83)			-	(	6,903)
	$	883,595	$	1,181,883	$	144,268	$		121,472	$	1,185	$	11,013	$	371,033	$		163,499	$	2,877,948

~22~

Amount of borrowing costs capitalised as part of property, plant and equipment and the range of the interest rates for such capitalization are as follows:

	Three months	ended March 31
	2021	2020
Amount capitalised	103 $	351 $
Rang of the interest rate for capitalisation	0.43%~0.53%	0.88%.15%

－
(9) Leasing arrangements lessee
A. The Group leases various assets including land, buildings and business vehicles. Rental contracts are typically made for periods of 3 to 20 years.
B. The carrying amount of right-of-use assets and the depreciation charge are as follows:

Land Buildings Transportation equipment (Business Vehicles) Office equipment (Internet equipment) Land Buildings Transportation equipment (Business Vehicles) Office equipment (Internet equipment)	March 31, 2021 December 31,2020 March 31, 2020 Carryingamount Carryingamount Carryingamount 219,689 $ 223,498 $ 234,936 $ 4,056 4,635 7,202 4,769 5,400 1,806 2,293 2,602 1,770 230,807 $ 236,135 $ 245,714 $ 2021 2020 Depreciation charge Depreciation charge 3,829 $ 3,829 $ 580 780 631 971 308 231 5,348 $ 5,811 $ Three months ended March 31	March 31, 2021 December 31,2020 March 31, 2020 Carryingamount Carryingamount Carryingamount 219,689 $ 223,498 $ 234,936 $ 4,056 4,635 7,202 4,769 5,400 1,806 2,293 2,602 1,770 230,807 $ 236,135 $ 245,714 $ 2021 2020 Depreciation charge Depreciation charge 3,829 $ 3,829 $ 580 780 631 971 308 231 5,348 $ 5,811 $ Three months ended March 31	December 31,2020 March 31, 2020 Carryingamount Carryingamount 223,498 $ 234,936 $ 4,635 7,202 5,400 1,806 2,602 1,770 236,135 $ 245,714 $ Three months ended March 31	December 31,2020 March 31, 2020 Carryingamount Carryingamount 223,498 $ 234,936 $ 4,635 7,202 5,400 1,806 2,602 1,770 236,135 $ 245,714 $ Three months ended March 31

				2020
				Depreciation charge
				3,829 $ 780 971 231
				5,811 $

C. For the three months ended March 31, 2021 and 2020, the additions to right-of-use assets amounted to $0 and $23, respectively.
D. The information on income and expense accounts relating to lease contracts is as follows:

Items affecting profit or loss Interest expense on lease liabilities Expense on short-term lease contracts	Three months ended March 31	Three months ended March 31
	2021 1,047 $ 2,390 $	2020
		1,113 $
		2,536 $

E. For the three month ended March 31, 2021 and 2020, the Group’s total cash outflow for leases amounted to $8,292 and $8,957, respectively.

~23~

(10) Investment property

At January 1 (March 31)

		2021
		Land
	$	399,307

March 31, 2020: None.

A. On March 31, 2021, the fair value of investment properties was $410,640, which based on the market evidence on transaction price of similar property and publicly announced present value. On December 31, 2020, the fair value of investment properties was $410,640, which based on the valuation results from independent appraisers.

(11) Intangible assets

		2021		2021
At January 1		Software		Software
Cost	$	40,624	$	38,298
Accumulated amortisation	(	26,306)	(	24,069)
	$	14,318	$	14,229
Three months ended March 31
Opening net book amount	$	14,318	$	14,229
Additions		4,584		2,849
Amortisation expense	(	4,498)	(	3,507)
Closing net book amount	$	14,404	$	13,571
At March 31
Cost	$	34,114	$	28,831
Accumulated amortisation	(	19,710)	(	15,260)
	$	14,404	$	13,571

Details of amortisation on intangible assets are as follows:

etails of amortisation on intangible assets are as follows:
Operating costs Operating expenses Total	Three months ended December 31
	2021 2,340 $ 2,158 4,498 $	2020
		1,061 $ 2,446
		3,507 $

(12) Short-term borrowings

Short-term borrowings
Type of borrowings Unsecured bank borrowings Interest rate range	March 31,2021 232,996 $ 0.53%~5%	December 31,2020 230,758 $ 0.51%~5.25%	March 31,2020
			263,848 $
			0.55%~5.25%

~24~

(13) Other payables

Other payables
Salaries and bonus payable Compensation payable to employee Remuneration payable to directors Divedends payable Others Total	March 31,2021 180,502 $ 171,340 57,113 514,927 260,782 1,184,664 $	December 31,2020 186,138 $ 115,354 38,410 - 279,140 619,042 $	March 31,2020 130,401 $ 138,977 46,203 378,623 264,074
			958,278 $

- (14) Long term borrowings

			Interest rate
Type of borrowings	Credit line	Period	range		March 31,2021
Syndicated borrowings with	$ 1,200,000	2019.02.20~	1.143%~
four financial institutions		2022.02.20	1.797%
including China Trust				$	787,238
Commercial
Bank(Unsecured)
Less: Current portion (shown as “Other current		liabilities”)		(	787,238)
				$	-

			Interest rate
Type of borrowings	Credit line	Period	range December 31, 2020
Syndicated borrowings with	$ 1,200,000	2019.02.20~	1.169%~
four financial institutions		2022.02.20	1.797%
including China Trust			$	811,515
Commercial
Bank(Unsecured)
Less: Current portion (shown as “Other current		liabilities”)	(	62,960)
			$	748,555
			Interest rate
Type of borrowings	Credit line	Period	range	March 31,2020
Syndicated borrowings with	$ 1,200,000	2019.02.20~	1.797%~
four financial institutions		2022.02.20	3.0444%
including China Trust			$	818,620
Commercial
Bank(Unsecured)
Less: Current portion (shown as “Other current		liabilities”)	(	31,963)
			$	786,657

A. On January 15, 2019, the Company signed a joint credit facility of $1.2 billion with four financial

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institution including China Trust Commercial Bank. The loan agreement includes the following covenants.

(a) The current ratio should be no less than 100% per share half year.
(b) The debt ratio should not be higher than 100%.
(c) The interest coverage ratio shall not be less than 300%.
(d) The tangible net value shall be maintained at more than 5 billion yuan (inclusive).

If the company fails to meet the required financial ratios, the bank will stop the allocation. In case of violation of the contract, the bank has the right to ask the Company to repay in full the unpaid balance of the loan in advance.

B. Although the long-term borrowing contracts are due on June 7, 2021 and August 28, 2021, the Company had settled the loan in advance on February 20, 2019 dur to financial planning considerations.

(15) Pensions

A. (a) The Company and CS Bright Corporation have a defined benefit pension plan in accordance with the Labor Standards Law, covering all regular employees’ service years prior to the enforcement of the Labor Pension Act on July 1, 2005 and service years thereafter of employees who chose to continue to be subject to the pension mechanism under the Law. Under the defined benefit pension plan, two units are accrued for each year of service for the first 15 years and one unit for each additional year thereafter, subject to a maximum of 45 units. Pension benefits are based on the number of units accrued and the average monthly salaries and wages of the last 6 months prior to retirement. The Company and CS Bright Corporation contribute monthly an amount equal to 2.68% and 3.18% of the employees’ monthly salaries and wages to the retirement fund deposited with Bank of Taiwan, the trustee, under the name of the independent retirement fund committee. Also, the Company would assess the balance in the aforementioned labor pension reserve account by the end of December 31, every year. If the account balance is insufficient to pay the pension calculated by the aforementioned method, to the employees expected to be qualified for retirement next year, the Company will make contributions to cover the deficit.
(b) For the aforementioned pension plan, the Group recognised pension costs of $1,710 and $2,410 for the three months ended March 31, 2021 and 2020, respectively.
(c) Expected contributions to the defined benefit pension plans of the Group for the year ending December 31, 2021 amount to $8,059.
B. (a) Effective July 1, 2005, the Company and its CS Bright Corporation established a defined contribution pension plan (the “New Plan”) under the Labor Pension Act (the “Act”), covering all regular employees with R.O.C. nationality. Under the New Plan, the Company and CS Bright Corporation contribute monthly an amount based on 6% of the employees’ monthly salaries and wages to the employees’ individual pension accounts at the Bureau of Labor Insurance. The benefits accrued are paid monthly or in lump sum upon termination of

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employment.

(b) The Company’s Mainland China subsidiaries, Opto Plus Technology Co., Ltd., have defined contribution plans. Monthly contributions to an administered by the government in accordance with the pension regulations in the People’s Republic of China (P.R.C.) are based on certain percentage of employees’ monthly salaries and wages. The above Mainland China subsidiaries’ contribution percentage for both the three years months ended March 31, 2021 and 2020 was both 14%, respectively. Other than the monthly contributions, the Group has no further obligations.
(c) The pension costs under defined contribution pension plans of the Group for the three months ended March 31, 2021 and 2020 were $8,272 and $9,529, respectively.

(16) Provisions

==> picture [479 x 173] intentionally omitted <==

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

Warranty 2021 2020
At January 1 $ 22,841 $ 24,017
Accrued during the period 3,160 1,377
Used during the period ( 981) ( 2,060)
Exchange differences - 7
At March 31 $ 25,020 $ 23,341
Analysis of total provisions:
March 31, 2021 December 31, 2020 March 31, 2020
Current $ 6,260 $ 4,033 $ 7,848
Non-current $ 18,760 $ 18,808 $ 15,493
----- End of picture text -----

The Group provides on products sold. Provision for warranties is estimated based on historical warranty date of products

(17) Share capital

A. As of March 31, 2021, the Company’s authorized capital was $10,000,000, consisting of 1,000,000 thousand shares of common stock, and the paid-in capital was $3,786,228, consisting of 378,623 thousand shares of common stock with a par value of $10 (in dollars) per share. All proceeds from shares issued have been collected. Movements in the number of the Company’s ordinary shares outstanding for the three months ended March 31, 2021 and 2020.

(In 2021 At January 1 375,541 Purchased of treasury shares 6,566) ( At March 31 368,975	thousands of shares) 2020 377,868 - 377,868

B. In accordance with paragraph 7, Article 43-6 of Securities and Exchange Act, private placements of securities can be conducted subsequently within one year after the date that shareholders made their resolution as approved by the Board of Directors on March 18, 2021, which has not yet

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been approved at the shareholders’ meeting. Taken into consideration capital market condition, the Company discontinued the private replacement of securities as approved by the shareholders in 2020.

C. Treasury stock
(a) Reason for share reacquisition and movements in the number of the Company’s treasury shares are as follows: (In thousands of shares)

Name of company holdingthe shares The Company The Company Subsidiary-Ho Chung Investment Co., Ltd. Name of company holdingthe shares The Company The Company Subsidiary-Ho Chung Investment Co., Ltd. Name of company holdingthe shares The Company Subsidiary-Ho Chung Investment Co., Ltd.	Reason for reacquisition For transfer of shares to empoyees The Company’s shares held by its subsidiary Reason for reacquisition For transfer of shares to empoyees The Company’s shares held by its subsidiary Reason for reacquisition The Company’s shares held by its subsidiary	Number of Shares Carrying amount 8,893 221,257 $ 755 23,172 9,648 244,429 $ March 31, 2021 December 31, 2020	Number of Shares Carrying amount 8,893 221,257 $ 755 23,172 9,648 244,429 $ March 31, 2021 December 31, 2020
			221,257 $ 23,172
			244,429 $
			31, 2020
		Number of Shares Carryingamount 2,327 58,849 $ 755 23,172 3,082 82,021 $ March31,2020	Carryingamount
			58,849 $ 23,172
			82,021 $
		Number of Shares 755	Carryingamount
			23,172 $

(b) The Company’s shares held by its subsidiary had no voting rights before being transferred to the third party.
(c) On November 6, 2020, the Board of Directors of the Company approved to repurchase the Company’s common shares and transfer to employees. The Company expected to repurchase 7,500,000 shares with an upper limit of cash amount of $3,103,739. As of January 8 , 2021, the final date of repurchase period, the Company repurchased 4,294 thousand shares for a total consideration of $109,251.
(d) On January 8, 2021, the Board of Directors of the Company approved to repurchase the Company’s common shares and transfer to employees. The Company expected to repurchase 7,500,000 shares with an upper limit of cash amount of $3,482,361. As of March 10, 2021,

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the final date of repurchase period, the Company repurchased 4,599 thousand shares for a total consideration of $112,006.

(e) On March 18, 2021, the Board of Directors of the Company resolved to transfer treasury shares to employees at a price lower than the actual average repurchased price. This case is pending for the discussion of shareholders’ meeting in 2021.
(f) Pursuant to R.O.C Securities and Exchange. Act, the number of shares bought back as treasury shares should not exceed 10% of the number of the Company’s issued and outstanding shares and the amount bought back should not exceed the sum of retained earnings, paid-in capital in excess of par value and raised capital surplus.
(g) Pursuant to the R.O.C Securities and Exchange Act, treasury shares not be pledged as collateral and is not entitled to dividends before it is reissued.
(h) Pursuant to the R.O.C Securities and Exchange Act, treasury shares not be reissued to the employees within five years from the reacquisition date and shares not reissued within the five-year period are to be retired.

(18) Capital reserve

Pursuant to the R.O.C. Company Law, capital reserve arising from paid-in capital in excess of par value on issuance of common stocks and donations can be used to cover accumulated deficit or to issue new stocks or cash to shareholders in proportion to their share ownership, provided that the Company has no accumulated deficit. Further, the R.O.C. Securities and Exchange Law requires that the amount of capital reserve to be capitalized mentioned above should not exceed 10% of the paid-in capital each year. Capital reserve should not be used to cover accumulated deficit unless the legal reserve is insufficient.

(19) Retained earnings

A. Under the Company’s Articles of Incorporation, the current year’s earnings, if any, shall first be distributed as follows:
(a) Offset prior years’ operating losses.
(b) 10% of the remaining amount shall be set aside as legal reserve, unless the accumulated legal reserve equals the total capital of the Company.
(c) Special reserve set aside in accordance with relevant laws or regulations or as required for operations.
(d) Aside from some of accumulated unappropriated retained earnings will be reserved, remaining retained earnings will be allocated to shareholders as dividends. The Board of Directors proposes a dividend distribution plan for approval by resolution at the shareholders’ meeting.
(e) The Company appropriated all or some dividends, bonus, capital surplus or legal reserve in the form of cash, which were resolved by the Board of Directors and reported to the shareholders.
B. The Company operates in the high-tech industry and its business life cycle is in the growth stage.

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In view of its capital expenditure demand and comprehensive financial plan for continuous development, the Company issues both stock and cash dividends. The proportion of dividends to be distributed in stocks and cash is determined based on the Company’s rate of growth and capital expenditures. However, the amount of cash dividends shall not be lower than 50% of the dividends distributed.

C. Except for covering accumulated deficit or issuing new stocks or cash to shareholders in proportion to their share ownership, the legal reserve shall not be used for any other purpose. The use of legal reserve for the issuance of stocks or cash to shareholders in proportion to their share ownership is permitted, provided that the balance of the reserve excess 25% of the Company’s paid-in capital.
D. In accordance with the regulations, the Company shall set aside special reserve from the debit balance on other equity items at the balance sheet date before distributing earnings. When debit balance on other equity items is reversed subsequently, the reversed amount could be included in the distributable earnings.
E. The appropriation of 2020 earnings as resolved by the Board of Directors on March 18, 2021 and the appropriation of 2019 earnings as resolved by the shareholders on June 16, 2020 are as follows:

follows:
Legal reserve Provision for (reversal of) special reserve Cash dividends Total	Dividends Dividends per share per share Amount (in dollars) Amount (in dollars) 57,584 $ 60,048 $ 1,320 4,649) ( 514,927 1.39 $ - - $ 573,831 $ 55,399 $ 2020 2019	2019
	Amount 57,584 $ 1,320 514,927 573,831 $		Dividends per share (in dollars)
			- $

On March 19, 2020, the Board of Directors of the Company resolved the appropriation of earnings and expected to distribute cash dividends of $378,623 with $1 per share. On June 16, 2020, shareholders proposed an amendment, “ shareholders’ bonus – cash” is $0, for the proposed resolution of 2019 earnings appropriate, which means that cash dividends will be distributed at $0 per share. The Board of Directors shall subsequently distribute dividends following the resolution of shareholder. Consequently, the Company’s Board if Derectors resolved the amendments to the appropriation of earnings on December 18, 2020 and no cash dividend will be distributed. Please refer to the website of “ Market Observation Post System” for information about appropriate of earnings which was approved by the Board of Directors and resolved by the shareholders.

On March 18, 2021, the distribution of 2020 cash dividends was approved by the Board of Directors. The provision of legal reserve and special reserve are pending for approval from the shareholders’ meeting in 2021.

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(20) Other equity items

2021

(20)	Other equity items 2021	Other equity items 2021	Other equity items 2021
(21)	Operating revenue Currency translation differences of foreign Unrealized gain (loss) on operations valuation Total At January 1 4,063) ($ 191,414 $ 187,351 $ Financial assets at fair value through other comprehensive income(loss) Revaluation - Group - 718) ( 718) ( Currency translation differences: -Group 498 - 498 -Associates 6) ( - 6) ( At March 31 3,571) ($ 190,696 $ 187,125 $ Currency translation differences of foreign Unrealized gain (loss) on operations valuation Total At January 1 9,372) ($ 288,841 $ 279,469 $ Financial assets at fair value through other comprehensive income(loss) Revaluation - Group - 66,538) ( 66,538) ( Tax on revaluation - 8,364 8,364 Currency translation differences: -Group 698) ( - 698) ( -Associates 183) ( - 183) ( At March 31 10,253) ($ 230,667 $ 220,414 $ 2020 2021 2020 Revenue from contracts with customers 1,583,411 $ 1,164,079 $ Three months ended March 31
		2021	2020
		1,583,411 $	1,164,079 $

A. The Group derives revenue in the following major product lines:

Three months ended March 31,2021		LED and Silicon Sendor Chips Group 1,351,961 $	Displays and Lighting Group	Packaging Business Group		Other segments		Total
Revenue from external contracts customers			164,480 $	66,970 $		- $		1,583,411 $

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Three months ended March 31,2020 LED and Silicon Sendor Chips Group Revenue from external contracts customers 857,686 $	Displays and Lighting Group 250,353 $	Packaging Business Group 51,189 $	Other segments 4,851 $	Total
				1,164,079 $

B. The Group has recognized the following revenue-related contract liabilities:

March 31, 2021 December 31, 2020 March 31, 2020 January 1, 2020 Contract liabilities $ 46,099 $ 44,086 $ 33,419 $ 30,360 Three months ended March 31 2021 2020 Revenue recognised that was included in the contract liability balance at the beginning of the period $ 28,571 $ 7,246

(22) Interest income

Interest income
Interest income from bank deposits Interest income from resale bonds Other interest income	2021 2020 `1,745` `$` `3,290` `$` `257` `448` `4` `1` `2,006` `$` `3,739` `$` Three months ended March 31
	2021
	`1,745` `$` `257` `4` `2,006` `$`	`3,290` `$` `448` `1` `3,739` `$`

(23) Other income

Other income
Rental income Dividend income Other income	Three months ended March 31
	2021 20 $ 10,344 6,408 16,772 $	2020 20 $ 12,443 6,000 18,463 $

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(24) Other gains and losses

Loss on disposal of property, plant and equipment Net currency exchange gain Net gain on financial assets and liabilities at fair value through profit or loss Others Total

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

Three months ended March 31
2021 2020
-
($ 69) $
419 6,262
502 7
( 372) ( 36)
$ 480 $ 6,233
----- End of picture text -----

(25) Finance costs

Finance costs	Finance costs	Finance costs
Expenses by nature 2021 2020 Interest expense: Bank borrowings 4,235 $ 7,278 $ Lease liabilities 1,047 1,113 Less: Capitalisation of qualifying assets 103) ( 351) ( 5,179 8,040 Other financial costs 469 464 Total 5,648 $ 8,504 $ Three months ended March 31 2021 2020 Employee benefit expense 351,894 $ 312,043 $ Depreciation on property, plant and equipment 114,246 118,615 Amortisation on intangible assets 4,498 3,507 Total 470,638 $ 434,165 $ Three months ended March 31
	2021 351,894 $ 114,246 4,498 470,638 $	2020
		312,043 $ 118,615 3,507
		434,165 $

(26) Expenses by nature

(27) Employee benefit expense

Employee benefit expense
Wages and salaries Labor and health insurance fees Pension costs Other personnel expenses	Three months ended March 31
	2021 314,376 $ 21,258 9,982 6,278 351,894 $	2020
		270,753 $ 22,962 11,939 6,389
		312,043 $

A. According to the Articles of Incorporation of the Company, if the Company has profit during the year, the Company shall distribute bonus to the employees that account for 10%~15% and pay remuneration to the directors that shall not be higher than 5%, of the total distributed amount. If the Company has an accumulated deficit, earnings should be used to cover losses. Employees’

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compensation can be distributed in the form of shares or in cash. Qualification requirements of employees, including the employees of subsidiaries of the Company meeting certain specific requirements, entitled to receive aforementioned stock or cash may be specified in the Articles of Incorporation.
B. For the three months ended March 31, 2021 and 2020, employees’ compensation was accrued at $56,165 and $28,753, respectively; directors’ remuneration was accrued at $18,722 and $9,585, respectively, directors’ remuneration was accrued at $18,722 and $9,585, respectively. The aforementioned amounts were recognized in salary expense. The employees’ compensation and directors’ and supervisors’ remuneration were estimated and accrued based on 15%. and 5%, respectively.
C. For the three months ended March 31, 2021, the Company’s subsidiary, CS Bright Corporation, was liquidated. For the three months ended March 31, 2020, the subsidiary has incurred accumulated deficit and thus did not accrue employees’ compensation and directors’ remuneration.
D. Employees’ compensation and directors’ remuneration of 2020 as resolved by the stockholders’ meeting are the same as the amount recognised in the consolidated financial statements.
E. Information about employees’ compensation and directors’ remuneration of the Company as resolved at the Board of Directors’ meeting will be posted in the “Market Observation Post System” at the website of the Taiwan Stock Exchange.

(28) Income tax

A. Income tax expense
(a) Components of income tax expense:

olved at the Board of Directors’ meeting will be posted in the “Market Observation Pos stem” at the website of the Taiwan Stock Exchange. e tax ome tax expense Components of income tax expense:	l be posted in the “Market Observation Pos ange.	l be posted in the “Market Observation Pos ange.
The income tax charge relating to components of other comprehensive income are as follows 2021 2020 Current tax: Current tax on profits for the period 51,315 $ 32,418 $ Total current tax 51,315 32,418 Deferred tax: Origination and reversal of temporary differences 3,000 584 Total deferred tax 3,000 584 Income tax expense 54,315 $ 33,002 $ Three months ended March 31 2021 2020 Changes in fair value of financial assets at fair value through other comprehensive income - $ 8,364 $ Three months ended March 31	Three months ended March 31
		2020
		32,418 $
		32,418
		584
		584
		33,002 $
	2021 - $	2020
		8,364 $

(b) The income tax charge relating to components of other comprehensive income are as follows:

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B. As of March 31, 2021, the Company’s income tax returns through 2019 have been assessed and approved by the Tax Authority.

(29) Earnings per share

Weighted-average outstanding common shares Profit after tax (in thousands) 245,059 $ 370,556 - 5,830 245,059 $ 376,386 Three months ended March 31, Three months ended March 31,	Weighted-average outstanding common shares Profit after tax (in thousands) 245,059 $ 370,556 - 5,830 245,059 $ 376,386 Three months ended March 31, Three months ended March 31,	Earnings per share (in dollars) 0.66 $ 2021
		0.65 $
		2020
Profit after tax 121,549 $ - 121,549 $	Weighted-average outstanding common shares (in thousands) 377,868 7,605 385,473	Earnings per share (in dollars)
		0.32 $
		0.32 $

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(30) Supplemental cash flow information

Financing activities with no cash flow effects

	Three months	ended March 31
	2021	2020
Distribution of cash dividends (shown as "other payables")	$514,927	$378,623

(31) Changes in liabilities from financing activities

2021

Short-term borrowings At January 1 230,758 $ Changes in cash flow from financing activities 1,214) ( Interest payment - Amorization of interest expenses - Distribution of cash dividends - Impact of changes in foreign exchange rate 3,452 At March 31 232,996 $	Long-term borrowings ( including currentportion)	Lease liabilities		Guarantee deposits 869 $ 7 - - - - 876 $	Dividends payments - $ - - - 514,927 - 514,927 $	Liabilities from financing activities-gross
	811,515 $ 32,101) ( - - - 7,824 787,238 $	236,266 $ 4,855) ( 1,047) ( 1,047 - - 231,411 $				1,279,408 $ 38,163) ( 1,047) ( 1,047 514,927 11,276 1,767,448 $

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2020

At January 1 Changes in cash flow from financing activities Interest payment Interest in lease principal Amorization of interest expenses Distribution of cash dividends Impact of changes in foreign exchange rate At March 31		Short-term borrowings	Long-term borrowings ( including currentportion)	Long-term borrowings ( including currentportion)	Lease liabilities	Guarantee deposits		Dividends payments	Liabilities from financing activities-gross
		249,640 $ 12,680 - - - - 1,528 263,848 $		814,504 $ - - - - 4,116 818,620 $	249,496 $ 5,308) ( 1,113) ( 23 1,113 - 11 244,222 $	1,545 $ 119) ( - - - - 1,426 $		- $ - - - 378,623 - 378,623 $	1,315,185 $ 7,253 1,113) ( 23 1,113 378,623 5,655 1,706,739 $

7. Related Party Transactions

(1) Names of related parties and relationship Names of related parties

Shin-Etsu Opto Electronic Co., Ltd.

Giga Epitaxy Technology Corp.

Nichia Taiwan Corp. Nichia Corp.

VML Technologies B.V.

Shen Zhen Guabg Xin Vision Technology CO., Ltd.( Shen Zhen Guang Xin) Guang Xin Vision Tech. (HK) CO., Ltd. (Hong Kong Guang Xin)

Relationship with the Company

The Company is the director of this company; this company is the director of the Company.(Note 1)

The Company is the director of this company.(Note 3)

This company is the director of the Company. This company's subsidiary is the director of theCompany. This company is an investment of Ho ChungInvestment Co., Ltd. accounted for using equity method

The chairman of this company is an independent director of the Company.(Note 2) The chairman of this company is an independent director of the Company.(Note 2)

Note 1: The shareholders of the Company during their meeting resolved to reelect all its directors on June 16 , 2020. The shareholders of Shin-Etsu Opto Electronic Co., Ltd. (Shin-Etsu) also resolved to reelect all its directors on June 18, 2020. After the reelection, the Company is no

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longer a legal person of Shin-Etsu has not been a related party of the Company since June 18, 2020.

Note 2:The chairman of this Company was no longer an independent director of the Company after the re-election at the stockholder’s meeting on June 16, 2020. Thereafter, it became a nonrelated party.

Note 3: It was no longer is a related party of the Company after the Company resigned as director on February 28, 2021.

(2) Significant transactions and balances with related parties

A. Operating revenue:

Operating revenue:
		Three months	ended	March 31
		2021		2020
Sales of goods:
Associates	$	2,172	$	-
Other related parties		83,423		78,155
Total	$	85,595	$	78,155

The selling prices charged to the above related parties are not materially different from those charged to non-related parties. For the three months ended March 31, 2021 and 2020, the credit term was 45 ~ 136 days for the related parties, respectively, and 90 ~ 150 days for the non-related parties for both periods.

B. Purchases:

parties for both periods. Purchases:
Purchases of goods: Other related parties	Three months ended March 31
	2021 41,243 $	2020
		56,491 $

The purchase prices charged by the above related parties were not materially different from those charged by non-related parties. For the three months ended March 31, 2021 and 2020, the credit term was 60 ~ 120 days for the related parties, respectively, and 90 ~ 120 days for the non-related parties for both periods.

C. Accounts receivable:

parties for both periods. C. Accounts receivable:
D. Accounts payable: Receivables from related parties: Other related parties Payables to related parties: Other related parties	March31,2021 35,996 $ March 31,2021 52,561 $	December31,2020 16,880 $ December 31,2020 51,920 $	March31,2020
			39,694 $
			March 31,2020
			77,829 $

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E. Advance receipt

March 31, 2021 December 31, 2020 March 31, 2020 Associates $ 8,139 $ 942 $ -

F. Lease

(a) Rent expense

Three months ended March 31 2021 2020 $ 600 $ 600

Other related parties $ 600 $ 600 The Company leases plant and machinery from related parties. The monthly rental payments are mutually agreed upon. The payment terms are not materially different from those charged by non-related parties.

(b) Lease liabilities

(i) Outstanding balance:

March 31, 2021 December 31, 2020 March 31, 2020 Other related parties $ 3,938 $ 4,518 $ 6,245 (ii) Interest expense

Interest expense Other related parties $	3,938 4,518 $ 6,245 $	3,938 4,518 $ 6,245 $
Other related parties	Three months ended March 31
	2021 19 $	2020
		30 $

(3) Key management compensation

Key management compensation Other related parties $	19 3 $	19 3 $
Salaries and other short-term employee benefits Post-employment benefits Total	Three months ended March 31
	2021 37,284 $ 103 37,387 $	2020
		19,579 $ 109
		19,688 $

8. Pledged Assets

The Group’s assets pledged as collateral are as follows:

Pledged assets Restricted assets-Time deposits, (shown as "other current assets)	Book value	March, 31 2020 22,810 $	Creditor Bank Type Chang Hwa Commercial Bank Far Eastern International Bank Land lease and dormitory lease deposits Purpose of pledge	Creditor Bank Type Chang Hwa Commercial Bank Far Eastern International Bank Land lease and dormitory lease deposits Purpose of pledge
	March 31, December 31, 2021 2020 22,810 $ 22,810 $
			Chang Hwa Commercial Bank Far Eastern International Bank	Land lease and dormitory lease deposits

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9. Significant Contingent Liabilities and Unrecognised Contract Commitments

(1) As of March 31, 2021, the guarantees provided by the Company through banks were as follows:

Guarantor Nature of Guarantee Far Eastern International Bank Warranty Chang Hwa Commercial Bank Customs duty Chang Hwa Commercial Bank Warranty Mega International Commercial Bank Warranty Taipei Fubon Commercial Bank Warranty Taishin International Bank Borrowing	Amount
	19,450 $ 13,000 3,360 20,816 2,055 100,100
	158,781 $

(2) As of March 31, 2021, the outstanding letters of credit issued for the importation of raw materials and machinery were as follows:

==> picture [145 x 15] intentionally omitted <==

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

Amount (thousands)
----- End of picture text -----

TWD	20,439
JPY	6,057
USD	829

(3) Operating lease commitments:

See Note 6(9).

(4) As of March 31, 2021, the promissory notes issued by the Company for loans, performance guarantee for purchases and loans granted for subsidiaries amounted to $4,288,964.
(5) As of March 31, 2021, the capital expenditure contracted but not yet incurred is $14,426.

10. Significant Disaster Loss

None.

11. Significant Events After the Balance Sheet Date

In response to the Company’s long-term development’s strategic cooperation needs and to strengthen the C ompany’s competitiveness, on April 7, 2021, the Board of Directors of the Company resolved to issue the ordinary shares through cash capital increase within a quota of no more than 60,000 thousand shares by way of private placement. This matter is pending for the discussion at the shareholders’ meeting in 2021.

12. Others

(1) Capital risk management

The Group’s objectives when managing capital are to safeguard the Group’s ability to continue as a going concern in order to provide returns for shareholders and to maintain an optimal capital structure to reduce the cost of capital. In order to maintain or adjust the capital structure, the Group may adjust the amount of dividends paid to shareholders or issue new shares to reduce debt. The Group monitors capital on the basis of the gearing ratio. This ratio is calculated as net debt divided by total capital. Net debt is calculated as total borrowings less cash and cash equivalents. Total capital is calculated as ‘equity’ as shown in the consolidated balance sheet plus net debt.

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As of March 31, 2021, December 31, 2020 and March 31, 2020, the gearing ratios were (36.38%), (36.52%) and (41.36%), respectively.

(2) Financial instruments

A. Financial instrument by category.

.52%) and (41.36%), respectively. ancial instruments Financial instrument by category.
		March 31,2021			December 31,2020			March 31,2020
Financial assets
Financial assets at fair value through profit or
loss
Financial assets mandatorily measured at fair		$	707,339		$	427,409			$	276,430
value through profit or loss
Financial assets at fair value through other			783,280			783,998				858,835
comprehensive income
Financial assets at amortised cost/Loans and
receivables
Cash and cash equivalents			2,957,011			3,100,161				3,116,624
Financial assets at amortised cost			302,810			22,810				22,810
Notes receivable			1,798			8,873				9,409
Accounts receivable - net (including related			1,515,876			1,651,793				1,402,841
parties)
Other accounts reveivable			26,012			20,218				25,070
Guarantee deposits paid			14,203			11,763				16,234
		$	6,308,329		$	6,027,025			$	5,728,253
	March 31,2021			December 31,2020			March 31,2020
Financial assets
Financial liabilities mandatorily measured at	$		2,063	$		799		$		287
fair value through profit or loss
Financial liabilities at amortised cost
Financial assets at fair value through other
comprehensive income
Short-term borrowings			232,996			230,758				263,848
Notes payable			-			1,757				1,295
Accounts payable (including related			727,653			717,846				701,653
parties)
Other accounts payable			1,184,664			619,042				958,278
Long-term borrowings (including current			787,238			811,515				818,620
portion)
Guarantee deposits received			876			869				1,426
	$		2,935,490	$		2,382,586		$		2,745,407
Lease liabilities	$		231,411	$		236,266		$		244,222

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B. Financial risk management policies
There was no significant change in the reporting period. Please refer to Note 12 in the consolidated financial statements for the year ended December 31, 2020.
C. Significant financial risks and degrees of financial risks
(a) Market risk

Foreign exchange risk

i. The Group operates internationally and is exposed to foreign exchange risk arising from the transactions of the Company and its subsidiaries used in various currency exposures, primarily with respect to the USD and JPY. Exchange rate risk arises from future commercial transactions and recognised assets and liabilities.
ii.To manage their foreign exchange risk arising from future commercial transactions and recognised assets and liabilities, entities in the Group use forward foreign exchange contracts, transacted with Group treasury. The expired dates of these forward foreign exchange contracts are shorter than 6 months and are not accounted for under hedge accounting. Foreign exchange risk arises when future commercial transactions or recognised assets or liabilities are denominated in a currency that is not the entity’s functional currency.
iii. As the foreign operations are strategic investments, the Company does not hedge for them.
iv. The Group’s businesses involve some non-functional currency operations (the Company’s and certain subsidiaries’ functional currency: TWD; other subsidiaries’ functional currency: CNY). The information on assets and liabilities denominated in foreign currencies whose values would be materially affected by the exchange rate fluctuations is as follows:

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Extent of variation Effect on profit or loss Effect on other compre- hensive income Unrealized exchange gain (loss) Three months ended March 31,2021 SensitivityAnalysis	Extent of variation Effect on profit or loss Effect on other compre- hensive income Unrealized exchange gain (loss) Three months ended March 31,2021 SensitivityAnalysis	Extent of variation Effect on profit or loss Effect on other compre- hensive income Unrealized exchange gain (loss) Three months ended March 31,2021 SensitivityAnalysis	Extent of variation Effect on profit or loss Effect on other compre- hensive income Unrealized exchange gain (loss) Three months ended March 31,2021 SensitivityAnalysis
	SensitivityAnalysis
Extent of variation	Effect on profit or loss	Effect on other compre- hensive income
1% 1% 1% 1% 1% 1% 1%	11,449 $ 1,025 1,049 74 9,218) ($ 1,440) ( 199) (	- $ - - - - $ - -	7,150 $ 2,026) ( 548) ( 148 3,211) ($ 2,327 9

Note ： If the consolidated entities’ functional currency is not TWD, the foreign currency denominated assets and liabilities of the consolidated entities should be disclosed. For example, when the functional currency of a subsidiary is CNY, its USD foreign currency positions should also be disclosed.

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December 31,	Book value (TWD) 2020	Extent of variation Effect on profit or loss Effect on other compre- hensive income Unrealized exchange gain(loss) 1% 13,416 $ - $ 33,270) ($ 1% 810 - 483) ( 1% 1,091 - 97) ( 1% 246 - 136 1% 9,197) ($ - $ 24,369 $ 1% 1,414) ( - 265) ( 1% 13) ( - 51) ( Year ended December 31,2020 SensitivityAnalysis	Extent of variation Effect on profit or loss Effect on other compre- hensive income Unrealized exchange gain(loss) 1% 13,416 $ - $ 33,270) ($ 1% 810 - 483) ( 1% 1,091 - 97) ( 1% 246 - 136 1% 9,197) ($ - $ 24,369 $ 1% 1,414) ( - 265) ( 1% 13) ( - 51) ( Year ended December 31,2020 SensitivityAnalysis	Extent of variation Effect on profit or loss Effect on other compre- hensive income Unrealized exchange gain(loss) 1% 13,416 $ - $ 33,270) ($ 1% 810 - 483) ( 1% 1,091 - 97) ( 1% 246 - 136 1% 9,197) ($ - $ 24,369 $ 1% 1,414) ( - 265) ( 1% 13) ( - 51) ( Year ended December 31,2020 SensitivityAnalysis
			SensitivityAnalysis
Exchange rate		Extent of variation	Effect on profit or loss Effect on other compre- hensive income 13,416 $ - $ 810 - 1,091 - 246 - 9,197) ($ - $ 1,414) ( - 13) ( -
28.43 0.2743 4.3520 6.5091 28.53 0.2783 6.5091	1,341,555 $ 81,008 109,065 26,644 919,722 $ 141,377 1,265	1% 1% 1% 1% 1% 1% 1%		33,270) ($ 483) ( 97) ( 136 24,369 $ 265) ( 51) (

positions should also be disclosed.	uld also be disclosed.	uld also be disclosed.	uld also be disclosed.
Foreign currency amount (in thousands) Exchange rate Book value (TWD) (Foreign currency: functional currency) Financial assets Monetary items USD : TWD 43,767 $ 30.18 1,320,669 $ JPY : TWD 311,776 0.277 86,300 CNY : TWD 24,317 4.23 102,861 USD : CNY (Note) 190 7.1034 5,743 Non-monetary items :None. Financial liabilities Monetary items USD : TWD 30,067 $ 30.28 910,278 $ JPY : TWD 465,340 0.2808 130,667 USD : CNY (Note) 213 7.1034 6,438 Non-monetary items :None. March 31,2020	Foreign currency amount (in thousands) Exchange rate Book value (TWD) March 31,2020			Extent of variation Effect on profit or loss Effect on other compre- hensive income Unrealized exchange gain or (loss) Three months ended March 31,2020 SensitivityAnalysis
					SensitivityAnalysis
		Exchange rate		Extent of variation	Effect on profit or loss	Effect on other compre- hensive income
		30.18 0.277 4.23 7.1034 30.28 0.2808 7.1034	1,320,669 $ 86,300 102,861 5,743 910,278 $ 130,667 6,438	1% 1% 1% 1% 1% 1% 1%	13,207 $ 863 1,029 57 9,103) ($ 1,307) ( 64) (	- $ - - - - $ - -	350 $ 317) ( 1,493) ( 229) ( 5,531 $ 372 6) (

Note ： If the consolidated entities’ functional currency is not TWD, the foreign currency

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denominated assets and liabilities of the consolidated entities should be disclosed. For example, when the functional currency of a subsidiary is CNY, its USD foreign currency positions should also be disclosed.

Price risk

i. The Group’s equity securities which are exposed to price risk, are the held financial assets at fair value through profit or loss and financial assets at fair value through other comprehensive income. To manage its price risk arising from investments in equity securities, the Group diversifies its portfolio.
ii. The Group’s investments in equity securities comprise domestic listed and unlisted stocks. The prices of equity securities would change due to the change of the future value of investee companies. If the prices of these domestic funds, equity securities of listed company or unlisted company had increased/decreased by 5%, 20% or 10%, respectively, with all other variables held constant, post-tax profit for the three months ended March 31, 2021 and 2020 would have increased/decreased by $45,191 and $19,163 respectively, as a result of gains/losses on equity securities classified as at fair value through profit or loss. Other components of equity would have increased/decreased by $86,835 and $91,488 as a result of gains/losses on equity securities classified as at fair value through other comprehensive income.

Cash flow and fair value interest rate risk

i. The Group’s main interest rate risk arises from long-term and short-term borrowings. Borrowings issued at floating rates expose the Group to cash flow interest rate risk which is partially offset by cash and cash equivalents held at floating rates. During the three months ended March 31, 2021 and 2020, the Group’s borrowings at floating rate were denominated in TWD, USD and JPY.
ii. At March 31, 2021, December 31, 2020 and March 31, 2020, if interest rates on borrowings had been 100 basis point higher/lower with all other variables held constant, post-tax profit for the three months ended March 31, 2021 and 2020 would have been $2,029 and $2,153 lower/higher, respectively, mainly as a result of higher/lower interest expense on floating rate borrowings.
(b) Credit risk
i. Credit risk refers to the risk of financial loss to the Group arising from default by the clients or counterparties of financial instruments on the contract obligations. According to the Group’s credit policy, each local entity in the Group is responsible for managing and analysing the credit risk for each of their new clients before standard payment and delivery terms and conditions are offered. Internal risk control assesses the credit quality of the customers, taking into account their financial position, past experience and other factors, the utilisation of credit limits is regularly monitored. Credit risk arises from cash and cash equivalents, derivative financial instruments and deposits with banks and financial institutions, as well as operating activities, including outstanding receivables.

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ii. The Group adopts following assumptions under IFRS 9 to assess whether there has been a significant increase in credit risk on that instrument since initial recognition: If the contract payments were past due over 30 days based on the terms, there has been a significant increase in credit risk on that instrument since initial recognition.
iii. The default occurs when the contract payments are past due over 180 days for distributors and 360 days for other customers, respectively.
iv. The Group classifies customer’s accounts receivable, in accordance with credit risk on trade and customer types. The Group applies the simplified approach using loss rate methodology to estimate expected credit loss under the provision matrix basis.
v. The following indicators are used to determine whether the credit impairment of debt instruments has occurred:
(i) It becomes probable that the issuer will enter bankruptcy or other financial reorganisation due to their financial difficulties;
(ii) The disappearance of an active market for that financial asset because of financial difficulties;
(iii) Default or delinquency in interest or principal repayments;
(iv) Adverse changes in national or regional economic conditions that are expected to cause a default.
viii. The Group used historical and timely information to assess the default possibility of notes receivable and accounts receivable ( including related parties). As of March 31, 2021, December 31, 2020 and March 31, 2020, the loss rate methodology is as follows :

Individual	Group	Total
100% 13,631 $ 13,631 $ Individual	0.01%~100% 1,519,854 $ 2,180 $ Group	1,533,485 $ 15,811 $ Total
100% 4,997 $ 4,997 $ Individual	0.01%~100% 1,663,689 $ 3,023 $ Group	1,668,686 $ 8,020 $ Total
100% 1,216 $ 1,216 $	0.01%~100% 1,434,140 $ 21,890 $	1,435,356 $ 23,106 $

vi. As at March 31, 2021, December 31, 2020 and March 31, 2020, without taking into account any collateral held or other credit enhancements, the maximum exposure to credit

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risk in respect of the amount that best represents the Group’s accounts receivable and notes receivable was 1,517,674, $1,660,666 and $1,412,250, respectively.

vii. Movements in relation to the Group applying the simplified approach to provided loss allowance for accounts receivable are as follows:

		2021		2020
		Accounts receivable		Accounts receivable
At January 1	$	8,020	$	21,821
Provision for impairment loss		7,791		1,285
At March 31	$	15,811	$	23,106

vii. The Group conducts business with banks and financial institutions with sound reputation, and therefore do not expect the financial assets at amortized cost to have credit risk.
ix. For investments in debt instruments at amortised cost, the credit rating levels are presented below:

low:
Financial assets at amortised cost Financial assets at amortised cost Financial assets at amortised cost		March 31, 2021
		Lifetime
	12 months	Significant increase in credit risk $- December		Impairment of credit	Total
	302,810 $			$- 31, 2020	302,810 $
	12 months	Significant increase in credit risk Impairment of credit $- $- Lifetime March 31,2020			Total
	22,810 $				22,810 $
		Lifetime
	12 months	Significant increase in credit risk	Impairment of credit		Total
	22,810 $	$-	$-		22,810 $

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(c) Liquidity risk

i. Cash flow forecasting is performed in the operating entities of the Group and aggregated by Group treasury. Group treasury monitors rolling forecasts of the Group’s liquidity requirements to ensure it has sufficient cash to meet operational needs while maintaining sufficient headroom on its undrawn committed borrowing facilities at all times.
ii. The table below analyses the Group’s non-derivative financial liabilities and derivative financial liabilities into relevant maturity groupings based on the remaining period at the balance sheet date to the contractual maturity date for non-derivative financial liabilities and to the expected maturity date for derivative financial liabilities.

March 31, 2021 Non-derivative financial liabilities ： Short-term borrowings Accounts payable (including related parties) Lease liabilities Other payables Long-term borrowings (including current portion) Derivative financial liabilities ： Forward exchange contracts December 31, 2020 Non-derivative financial liabilities ： Short-term borrowings Notes payable Accounts payable (including related parties) Lease liabilities Other payables Long-term borrowings (including current portion) Derivative financial liabilities ： Forward exchange contracts	Less than 1year 233,254 $ 727,653 23,543 1,184,664 795,885 2,063 $ Less than 1year 231,089 $ 1,757 717,846 23,642 619,042 74,285 799 $	Between 1 and 2 years - $ - 21,498 - - - $ Between 1 and 2 years - $ - - 22,305 - 751,637 - $	Between 2 and 3 years - $ - 18,435 - - - $ Between 2 and 3 years - $ - - 18,933 - - - $	Between 3 and 5 years - $ - 35,702 - - - $ Between 3 and 5 years - $ - - 35,782 - - - $	Over 5 years
					- $ - 163,711 - - - $ Over 5 years
					- $ - - 168,130 - - - $

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Less than March 31, 2020 1year Non-derivative financial liabilities ： Short-term borrowings 264,392 $ Notes payable 1,295 Accounts payable 701,653 (including related parties) Lease liabilities 23,002 Other payables 958,278 Long-term borrowings 51,309 (including current portion) Derivative financial liabilities ： Forward exchange contracts 287 $	Between Between 1 and 2 2 and 3 years years - $ - $ - - - 21,162 19,181 - - 784,564 - - $ - $	Between 3 and 5 Over 5 years years - $ - $ - - 35,135 185,279 - - - - - $ - $

(3) Fair value information

A. The different levels that the inputs to valuation techniques are used to measure fair value of financial and non-financial instruments have been defined as follows:
Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can access at the measurement date. A market is regarded as active where a market in which transactions for the asset or liability take place with sufficient frequency and volume to provide pricing information on an ongoing basis.
Level 2: Inputs other than quoted prices included within level 1 that are observable for the asset or liability, either directly or indirectly.
Level 3: Unobservable inputs for the asset or liability.
B. Fair value information of investment property at cost is provided in Note 6(10).
C. The carrying amounts of cash and cash equivalent, notes receivable, accounts receivable, other receivables, long-term and short-term borrowings, notes payable, accounts payable, other payables and lease liabilities are approximate to their fair value.
D. The related information of financial and non-financial instruments measured at fair value by level on the basis of the nature, characteristics and risks of the assets and liabilities at March 31, 2021, December 31, 2020 and March 31, 2020 is as follows:

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March 31, 2021 Assets: Recurring fair value measurements Financial assets at fair value through profit or loss Domestic funds Equity securities Forward exchange contract Financial assets at fair value through other comprehensive income Equity securities Total Liabilities: Recurring fair value measurements Financial liabilities at fair value through profit or loss Forward exchange contract December 31, 2020 Assets: Recurring fair value measurements Financial assets at fair value through profit or loss Domestic funds Equity securities Forward exchange contract Financial assets at fair value through other comprehensive income Equity securities Total Liabilities: Recurring fair value measurements Financial liabilities at fair value through profit or loss Forward exchange contract March 31, 2020 Assets: Recurring fair value measurements Financial assets at fair value through profit or loss Domestic funds Equity securities Forward exchange contract Financial assets at fair value through other comprehensive income Equity securities Total Liabilities: Recurring fair value measurements Financial liabilities at fair value through profit or loss Forward exchange contract	Level 1 570,506 $ 29,835 - 85,071 685,412 $ - $ Level 1 320,248 $ - - 85,789 406,037 $ - $ Level 1 169,548 $ - - 56,043 225,591 $ - $	Level 2 - $ - 8 - 8 $ 2,063 $ Level 2 - $ - 171 - 171 $ 799 $ Level 2 - $ - 29 - 29 $ 287 $	Level 3 - $ 106,990 - 698,209 805,199 $ - $ Level 3 - $ 106,990 - 698,209 805,199 $ - $ Level 3 - $ 106,853 - 802,792 909,645 $ - $	Total 570,506 $ 136,825 8 783,280
				1,490,619 $
				2,063 $
				Total
				320,248 $ 106,990 171 783,998
				1,211,407 $
				799 $
				Total
				169,548 $ 106,853 29 858,835
				1,135,265 $
				287 $

E. The methods and assumptions the Group used to measure fair value are as follows:

(a) The instruments the Group used market quoted prices as their fair values (that is, Level 1)

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are composed of: listed shares using closing price and open-end fund using net asset value at balance sheet date.

(b) Except for financial instruments with active markets, the fair value of other financial instruments is measured by using valuation techniques or by reference to counterparty quotes.
(c) When assessing non-standard and low-complexity financial instruments, the Group adopts valuation technique that is widely used by market participants. The inputs used in the valuation method to measure these financial instruments are normally observable in the market. Forward exchange contracts are usually valued based on the current forward exchange rate.
(d) The output of valuation model is an estimated value and the valuation technique may not be able to capture all relevant factors of the Group’s financial and non-financial instruments. Therefore, the estimated value derived using valuation model is adjusted accordingly with additional inputs. In accordance with the Group’s management policies and relevant control procedures relating to the valuation models used for fair value measurement, management believes adjustment to valuation is necessary in order to reasonably represent the fair value of financial and non-financial instruments at the consolidated balance sheet. The inputs and pricing information used during valuation are carefully assessed and adjusted based on current market conditions.
F. For the three months ended March 31, 2021 and 2020, there was no transfer between Level 1 and Level 2.
G. The following chart is the movement of Level 3 financial instruments of equity securities for the three months ended March 31, 2021and 2020:

At January 1 Losses recognised in other comprehensive income At March 31	2021 2020 805,199 $ 951,466 $ - 41,822) ( 805,199 $ 909,644 $

H.For the three months ended March 31, 2021 and 2020, there was no transfer into or out from Level 3.
I. Financial segment is in charge of valuation procedures for fair value measurements being categorized within Level 3, which is to verify independent fair value of financial instruments. Such assessment is to ensure the valuation results are reasonable by applying independent information to make results close to current market conditions and reviewing periodically.
J. The following is the qualitative information of significant unobservable inputs and sensitivity analysis of changes in significant unobservable inputs to valuation model used in Level 3 fair value measurement:

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Unlisted shares Unlisted shares Non-derivative equity: Unlisted shares Unlisted shares Non-derivative equity:	Fair value at March 31,2021 698,209 $ 106,990 Fair value at December 31,2020 698,209 $ 106,990	Valuation technique Market comparable companies Net asset value Valuation technique Market comparable companies Net asset value	Significant unobservable input Price to earnings ratio multiple Discount for lack of volatility Discount for lack of volatility Significant unobservable input Price to earnings ratio multiple Discount for lack of volatility Discount for lack of volatility	Range (weighted average) 0.94~2.3 30%~35% 19.25% Range (weighted average) 0.94~2.3 30%~35% 19.25%	Relationship of inputs to fair value The higher the multiple, the higher the fair value. The higher the discount for lack of marketability, the lower the fair value. The higher the discount for lack of marketability, the lower the fair value. Relationship of inputs to fair value The higher the multiple, the higher the fair value. The higher the discount for lack of marketability, the lower the fair value. The higher the discount for lack of marketability, the lower the fair value.

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Unlisted shares Unlisted shares Non-derivative equity:	Fair value at March Valuation 31,2020 technique 799,191 $ Market comparable companies 106,853 Net asset value	Significant unobservable Range (weighted Relationship of inputs to input average) fair value Price to 0.75~1.09 The higher the multiple, earnings the higher the fair value. ratio multiple Discount for 25%~35% The higher the discount lack of for lack of marketability, volatility the lower the fair value. Discount for 19.25% The higher the discount lack of for lack of marketability, volatility the lower the fair value.

K. The Group has carefully assessed the valuation models and assumptions used to measure fair value; therefore, the fair value measurement is reasonable. However, use of different valuation models or assumptions may result in difference measurements. The following is the effect of profit or loss or of other comprehensive income from financial assets and liabilities categorised within Level 3 if the inputs used to valuation models have changed:

Financial assets Equity instrument Financial assets Equity instrument	Input	Change ±5% Change ±5%	Favourable Unfavourable Favourable Unfavourable change change change change 1,275 $ 1,275) ($ 15,582 $ 15,582) ($ March31,2021 Recognised in other Recognised in profit or loss comprehensive income Favourable Unfavourable Favourable Unfavourable change change change change 1,275 $ 1,275) ($ 15,582 $ 15,582) ($ December31,2020 Recognised in other Recognised inprofit or loss comprehensive income
			Favourable Unfavourable change change 1,275 $ 1,275) ($ Recognised in profit or loss December
	Discount of lack of volatility Input
			Favourable Unfavourable change change 1,275 $ 1,275) ($ Recognised inprofit or loss
	Discount of lack of volatility

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==> picture [465 x 124] intentionally omitted <==

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

March 31, 2020
Recognised in other
Recognised in profit or loss comprehensive income
Favourable Unfavourable Favourable Unfavourable
Input Change change change change change
Financial assets
Discount of
Equity lack of ±5% $ 1,274 ($ 1,274) $ 13,874 ($ 13,874)
instrument
volatility
----- End of picture text -----

’ (4) Explanation of the impact of the COVID 19 pandemic to the Group s operation in first quarter of

2021

With the ever-changing situation of the global pandemic, the global supply chains were impacted at different levels by the preventive measures against the pandemic and the stress on shipping. Moreover, the prices of raw materials have risen due to the strong demand to replenish inventories. The Group will continue to follow up the situation and timely adjust the countermeasures.

13. Supplementary Disclosures

(1) Significant transactions information

A. Loans to others: None.
B. Provision of endorsements and guarantees to others: Please refer to table 1.
C. Holding of marketable securities at the end of the period (not including subsidiaries, associates and joint ventures): Please refer to table 2.
D. Acquisition or sale of the same security with the accumulated cost exceeding $300 million or 20% of the Company’s paid-in capital: None.
E. Acquisition of real estate reaching $300 million or 20% of paid-in capital or more: None.
F. Disposal of real estate reaching $300 million or 20% of paid-in capital or more: None.
G. Purchases or sales of goods from or to related parties reaching $100 million or 20% of paid-in capital or more: None.
H. Receivables from related parties reaching $100 million or 20% of paid-in capital or more: None.
I. Trading in derivative instruments undertaken during the reporting periods: Please refer to Note 6(2).
J. Significant inter-company transactions during the reporting periods: Amounts were not significant and did not reach the Company’s disclosure threshold of $10,000.

(2) Information on investees

Names, locations and other information of investee companies (not including investees in Mainland China) ： Please refer to table 3.

(3) Information on investments in Mainland China

Basic information: Please refer to table 4.

(4) Information on major shareholders

Please refer to table 5.

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14. SEGMENT INFORMATION

(1) General information

There was no significant change in the reporting period. Please refer to Note 14 in the consolidated financial statements for the year ended December 31, 2020.

(2) Segment information

The segment information provided to the Chief Operating Decision-Maker for the reportable segments is as follows:

segments is as follows:
Revenue from external customers Segment income (loss) Revenue from external customers Segment income (loss)	LED and Displays and Packaging Silicon Sensor Lighting Business Chips Group Group Group 1,351,961 $ 164,480 $ 66,970 $ 310,569 $ 26,816) ($ 3,997 $ Three months ended March Three months ended March		Other segments - $ 11,626 $ 31, 2021 31, 2020	Total
				1,583,411 $
				299,376 $

	LED and Silicon Sensor Chips Group 857,686 $ 128,741 $	Displays and Packaging Lighting Business Group Group 250,353 $ 51,189 $ 17,555 $ 2,426) ($	Other segments 4,851 $ 10,679 $	Total
				1,164,079 $
				154,549 $

(3) Reconciliation for segment income (loss)

A. The revenue from external customers reported to the Chief Operating Decision-Maker is measured in a manner consistent with that in the statement of comprehensive income.
B. A reconciliation of reportable segment income or loss to the income (loss) before tax from continuing operations is measured in a manner consistent with that in the statement of comprehensive income.

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Opto Tech Corporation and subsidiaries

Table 1

Expressed in thousands of TWD

Provision of endorsements and guarantees to others

Three months ended March 31, 2021

Number (Note 1) Endorser/ guarantor	Party being endorsed/guaranteed	Limit on endorsements/ guarantees provided for a single party (Note 3)	Maximum outstanding endorsement/ guarantee amount as of March 31, 2021	Outstanding endorsement/ guarantee amount at March 31, 2021	Actual amount drawn down	Amount of endorsements/ guarantees secured with collateral	Ratio of accumulated endorsement/ guarantee amount to net asset value of the endorser/ guarantor company	Ceiling on total amount of endorsements/ guarantees provided (Note 3)	Provision of endorsements/ guarantees by parent company to subsidiary	Provision of endorsements/ guarantees by subsidiary to parent company	Provision of endorsements/ guarantees to the party in Mainland China	Remark
	Company name Relationship with the endorser/ guarantor (Note2)
0 Opto Tech Corp.	Opto Plus Technology Co., Ltd. 3	1,451,437 $	100,048 $	100,048 $	90,851 $	- $	1.38%	3,628,594 $	Y	N	Y	-

Note 1: The numbers filled in for the endorsements/guarantees provided by the Company or subsidiaries are as follows:

(1)The Company is “0”.
(2)The subsidiaries are numbered in order starting from “1”.
Note 2: Relationship between the endorser/guarantor and the party being endorsed/guaranteed is classified into the following six categories; fill in the number of category each case belongs to:
(1) Having business relationship.
(2)The endorser/guarantor parent company owns directly and indirectly more than 50% voting shares of the endorsed/guaranteed subsidiary.
(3)The Endorser/guarantor parent company and its subsidiaries jointly own more than 50% voting shares of the endorsed/ guaranteed company.
(4) The endorsed/guaranteed parent company directly or indirectly owns more than 50% voting shares of the endorser/guarantor subsidiary.
(5) Mutual guarantee of the trade made by the endorsed/guaranteed company as required under the construction contract.
(6) Due to joint venture, each shareholder provides endorsements/guarantees to the endorsed/guaranteed company in proportion to its ownership.
Note 3: The calculation and amount of ceiling on providing endorsement / guarantee to others shall be disclosed. It there was contingent loss recogniSed in the financial statements, the recognised amount shall be disclosed Under the Company’s “Procedures for Provision of Endorsements and Guarantees” , the Company’s total guarantees and endorsements to others should not exceed 50% of the Company’s net asset value, and total guarantees and
endorsements provided for a single party should not exceed 20% of the Company’s net asset value. The calculation is shown below:
(1) $7,257,187 thousand dollars × 20% ＝ $1,451,437 thousand dollars
(2) $7,257,187 thousand dollars × 50% ＝ $3,628,594 thousand dollars

Opto Tech Corporation and subsidiaries

Table 2

Expressed in thousands of TWD

Holding of marketable securities at the end of the period (not including subsidiaries, associates and joint ventures)

March 31, 2021

Securities held by	Type of marketable securities	Name of marketable securities	Relationship with the securities issuer	General ledger account		As of March 31, 2021	As of March 31, 2021		Remark
					Number of shares	Book value	Ownership (%)	Fair value
Opto Tech Corp. `〞` `〞` `〞` `〞` `〞` `〞` Ho Chung Investment Co., Ltd. Dongzhen Asset Co., Ltd. Opto Tech Corp. `〞` `〞` `〞` `〞` `〞` `〞`	Stock `〞` `〞` `〞` `〞` `〞` `〞` `〞` `〞` Fund `〞` `〞` `〞` `〞` `〞` `〞`	AXT, Inc. Nichia Corp. Viking Tech Corporation Lu Zhu Development Co., Ltd. Giga Epitaxy Technology Corp. Shin-Etsu Opto Electronic Co., Ltd. Top Increasing Technology Co., Ltd. Opto Tech Corp. Taiwan Surface Mounting Technology Corp. Fuanklin Templeton Sinoam Money Market Fund Taishin 1699 Money Market fund FSITC Taiwan Money Market fund Jih Sun Money Market fund TCB Taiwan Money Market Fund Union Money Market Capital Money Market	None. This company is the parent company of Nichia Taiwan Corp. None. None. None. None. None. Parent company None. None. None. None. None. None. None. None.	Financial assets at fair value through profit or loss Financial assests at fair value through other comprehensive income `〞` Financial assets at fair value through profit or loss Financial assests at fair value through other comprehensive income `〞` Financial assets at fair value through profit or loss Financial assets at fair value through profit or loss `〞` `〞` `〞` `〞` `〞` `〞` `〞` `〞`	124,100 10,000 2,873,994 13,808,725 4,950,491 2,000,000 10,000,000 754,543 255,000 9,247,290 4,477,862 5,965,267 5,391,133 4,885,150 7,134,275 5,837,819	- $ 585,253 85,071 106,990 16,391 96,565 - 20,146 29,835 96,506 61,147 92,134 80,661 50,037 95,011 95,010	- 0.45 2.45 6.38 15.00 10.00 16.67 0.20 0.09 None None None None None None None	- $ 585,253 85,071 106,990 16,391 96,565 - 20,146 29,835 96,506 61,147 92,134 80,661 50,037 95,011 95,010	Note None None None None None None None None None None None None None None

Note : The 124,000 shares of AXT, Inc. which are owned by the Company, are preferred stocks.

Opto Tech Corporation and subsidiaries

Table 3

Expressed in thousands of TWD

Information on investees

Three months ended March 31, 2021

Investor	Investee	Location	Main business activities	Initial investment amount	Initial investment amount	Shares held	as at March 31,2021	as at March 31,2021	Net income (loss) of the investee	Investment income (loss) recognized by investor	Remark
				Balance as of March 31, 2021	Balance as of December 31, 2020	Number of shares	Ownership (%)	Bookvalue
Opto Tech Corp. Opto Tech Corp. Opto Tech Corp. Opto Tech Corp. Ho Chung Investment Co., Ltd. CS Bright Corporation Bright Investment International Ltd.	Ho Chung Investment Co., Ltd. CS Bright Corporation Everyung Investment Ltd. Dongzhen Asset Co., Ltd. VML TECHNOLOGIES B.V. Bright Investment International Ltd. Everyung Investment Ltd.	Taiwan Taiwan Samoa Taiwan Netherlands B.V. I. Samoa	Investment business Manufacture and Sales of Displays, SMD Lamps a nd other LED related products International trading Investment business Manufacture and Design of system products Investment business Investment business	258,348 $ 50,170 42,343 400,000 37,436 171,332 168,421	258,348 $ 50,170 42,343 29,800 37,436 171,332 168,421	1,298,800 4,993,562 5,000,000 40,000,000 6,000 5,100,000 5,000,000	100 100 50 100 25 100 50	26,570 $ 153,179 45,583 401,544 8,995 46,029 45,583	2,984 $ 1,165 5,977 1,579 14,426 2,995 5,977	3,588 $ 1,164 2,989 1,579 3,607 2,995 2,988	Subsidiary of the Company Subsidiary of the Company (Note) Subsidiary of the Company Subsidiary of the Company Investment accounted for using equity method Indirect subsidairy (Note) Indirect subsidairy

Note: The Board of Directors of the Company resolved to process liquidation through the company on September 10, 2020 . the liquidation was still in process.

Opto Tech Corporation and subsidiaries

Information on investments in Mainland China

Three months ended March 31, 2021

Table 4

Expressed in thousands of TWD

Investee in Mainland China	Main business activities	Paid-in capital	Investment method (Note 1)	Accumulated amount of remittance to Mainland China as of January 1, 2021	Amount remitted to Mainland China during the period	Amount remitted back to Taiwan during the period	Accumulated amount of remittance to Mainland China as of March 31, 2021	Net income of investee for the three months ended March 31,2021	Ownership held by the Company (direct or indirect)	Investment income (loss) recognised by the Company for the three months March 31, 2021 (Note 2)	Book value of investments in Mainland China as of March 31, 2021	Accumulated amount of investment income remitted back to Taiwan as of March 31,2021	Remark
Opto Plus Technology Co., Ltd.	Manufacture and Sales of LED and Electronic products	317,341	(2)	317,341 $	- $	- $	317,341 $	5,977 $	99.94%	5,974 $	91,166 $	- $

Note 1: The investment methods are classified into three categories as follows:

(1) Directly investing in the investee company in Mainland China.

(2) Through investing in an existing company in the third area, which then invested in the investee company in Mainland China. (Opto Tech (Cayman) Co., Ltd. invests Opto Tech (Suzhou) Co., Ltd. and Everyung Investment Ltd. invests Opto plus Technology Co., Ltd.)

(3) Others.

Note 2: The investment income or loss was recognised by indirect weighted ownership based on the financial statements of these investees which were not reviewed by the independent accountants of the parent company for the corresponding periods.

corresponding periods.	corresponding periods.	corresponding periods.	corresponding periods.
Investments in Mainland China for the three months ended March 31, 2021: Name of company Accumulated amount of remittance from Taiwan to Mainland China as of March31,2021 Investment amount approved by the Investment Commission of the Ministry of Economic Ceiling on investments in Mainland China imposed by the Investment Commission of MOEA
Opto Tech Corp.	$ 317,341	$ 317,849	$ 4,354,312

Opto Tech Corporation and its subsidiaries Major shareholders information March 31, 2021

	March 31, 2021
Table 5 Name of major shareholders		Shares
	Number of share held	Ownership (%)
Nichia Taiwan Corp.	26,448,822	6.98%

Description: If company applies to Taiwan Depository & Clearning Corporation for the information of the table, the following can be explained in the notes of the table.

(a) The major shareholders information was from the data that the Company issued common shares(including treasury shares) and preference shares in dematerialised from which were registered and held by the shareholders above 5% on the last operating date of each quarter and was calculated by Taiwan Depository & Clearing Corporation.The share capital which was recorded in the financial statements is different from the actual number of share issued in dematerialised from because of the different calculation basis or the differences.
(b) If the aforementioned data contains share which were kept at the trust by the shareholders, the data was disclosed as separate account of client which was set by the trustee. As for the shareholder whp reports share equity as an insider whose shareholding ratio greater than 10% in accordance with Securities and Exchange Act, the shareholding ratio ncluding the self-owned shares and trusted shares, at the same time.persons who have power to decide how to allocate the trust assets. For the information of reported share equity of insider, please refer toMarket Obsevation Post System.

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TASC — Interim / Quarterly Report 2021

52015_rns_2021-12-14_db8cf48e-9740-4125-9d47-61cd9b6c498d.pdf

OPTO TECH CORPORATION AND SUBSIDIARIES

INDEPENDENT AUDITORS’ REVIEW REPORT TRANSLATED FROM CHINESE

Introduction

Scope of review

Basis for qualified conclusion

months then ended.

Qualified conclusion

Chiang, Tsai-Yen

OPTO TECH CORPORATION AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

MARCH 31, 2021, DECEMBER 31, 2020 AND MARCH 31, 2020

OPTO TECH CORPORATION AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

MARCH 31, 2021, DECEMBER 31, 2020 AND MARCH 31, 2020

OPTO TECH CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME THREE MONTHS ENDED MARCH 31, 2021 AND 2020

OPTO TECH CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME THREE MONTHS ENDED MARCH 31, 2021 AND 2020

OPTO TECH CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY THREE MONTHS ENDED MARCH 31, 2021 AND 2020

OPTO TECH CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS

THREE MONTHS ENDED MARCH 31, 2021 AND 2020

OPTO TECH CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS

THREE MONTHS ENDED MARCH 31, 2021 AND 2020

OPTO TECH CORPORATION AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS THREE MONTHS ENDED MARCH 31, 2021 AND 2020

1. History and Organization

3. Application of New Standards, Amendments and Interpretations

(3) IFRSs issued by IASB but not yet endorsed by the FSC

4. Summary of Significant Accounting Policies

(1) Compliance statement

(2) Basis of preparation

(4) Employee benefits

(5) Income tax

(1) Cash and cash equivalents

(2) Financial assets at fair value through profit or loss

(3) Financial assets at amortised cost

(4) Financial assets at fair value through other comprehensive incomes

(5) Notes and accounts receivable

(6) Inventories

(7) Investments accounted for using equity method

(8) Property, plant and equipment

(10) Investment property

(11) Intangible assets

(12) Short-term borrowings

(13) Other payables

- (14) Long term borrowings

(15) Pensions

(16) Provisions

(17) Share capital

(18) Capital reserve

(19) Retained earnings

(20) Other equity items

2021

B. The Group has recognized the following revenue-related contract liabilities:

(22) Interest income

(23) Other income

(24) Other gains and losses

(25) Finance costs

(26) Expenses by nature

(27) Employee benefit expense

(28) Income tax

(30) Supplemental cash flow information

(31) Changes in liabilities from financing activities

7. Related Party Transactions

E. Advance receipt

F. Lease

(a) Rent expense

(b) Lease liabilities

(i) Outstanding balance:

(3) Key management compensation

8. Pledged Assets

9. Significant Contingent Liabilities and Unrecognised Contract Commitments

(3) Operating lease commitments:

10. Significant Disaster Loss

11. Significant Events After the Balance Sheet Date

12. Others

(1) Capital risk management

TASC Interim / Quarterly Report 2021