TEX YEAR - Interim / Quarterly Report 2021

Stock code: 4720

Tex Year Industries Inc. and Subsidiaries

Consolidated Financial Report and Independent Auditor’s Review Report First Quarter of 2021 and 2020

Address: No. 9, Wuquan 6th Road, Wugu District, New Taipei City Telephone: (02)22992121

Independent Auditor’s Review Report

To: Tex Year Industries Inc.

Foreword

The consolidated balance sheet of Tex Year Industries Inc. and its subsidiaries as of March 31, 2021 and 2020 and the consolidated comprehensive income statement, consolidated statement of changes in equity and consolidated cash flow statement from January 1 to March 31, 2021 and 2020 as well as notes to the consolidated financial statements (including the summary of significant accounting policies) have been duly verified by us. The management shall be responsible for preparing the financial statements fairly presented based on the Regulations Governing the Preparation of Financial Reports by Securities Issuers and the International Accounting Standards No. 34 “Interim Financial Reporting,” recognized and released by the Financial Supervisory Commission. We are only responsible for concluding the financial statements based on the result of the review.

Scope

Except retaining the statement in the basic paragraph of the conclusion, we conducted the review in accordance with the "Review of Financial Statements" of the Auditing Standards Bulletin No. 65. The procedures to review the consolidated financial statements include inquiry (mainly with the person in charge of financial and accounting affairs), analytical procedures, and other review procedures. The scope of the review work is significantly smaller than that of the

audit work, so we may not be able to detect all significant matters that can be identified through the audit work. Therefore, we cannot express an audit opinion.

Basis of Reserved Opinion

As stated in notes 12 and 13 to the consolidated financial statements, the financial statements of the subsidiaries and investees are included in the consolidated financial statements mentioned above, and some of the non-significant subsidiaries and the investment under the equity method during the same period have not been verified by us. The total assets of the non-significant subsidiaries above as of March 31, 2021 and 2020 were NT$988,077 thousand and NT$910,918 thousand, accounting for 31.47% and 31.31% of the total consolidated assets; the total liabilities were NT$300,088 thousand and NT$197,794 thousand, accounting for 16.30% and 11.49% of the total consolidated liabilities; the total comprehensive income from January 1 to March 31, 2021 and 2020 were NT$8,467 thousand and NT$(996) thousand, accounting for 58.16% and 3.91% of the total consolidated comprehensive income. The balance of the investment under the equity method on March 31, 2021 and 2020 were NT$94,616 thousand and NT$129,140 thousand, accounting for 3.01% and 4.44% of the total consolidated assets; the comprehensive income recognized under the equity method from January 1 to March 31, 2021 and 2020 were NT$1,645 thousand and NT$(1,277) thousand, accounting for 11.3% and 5.01% of the total consolidated comprehensive income.

Reserved Conclusion

According to our review results, except that the financial statements of some non-important subsidiaries and investees under the equity method mentioned in the basic paragraph of the reserved conclusion, if audited by us, may lead to adjustments to the consolidated financial statements, it is not found that the consolidated financial statements above have not been prepared in accordance with the Regulations Governing the Preparation of

Financial Reports by Securities Issuers and IAS 34 “Interim Financial Reporting” approved and promulgated by the Financial Supervisory Commission which may lead to the inability to properly express the consolidated financial status of Tex Year Industries Inc. and its subsidiaries as of March 31, 2021 and 2020 and the consolidated financial performance and consolidated cash flow from January 1 to March 31, 2021 and 2020.

The engagement partners on the reviews resulting in this independent auditors’ review report are Ming-Yen Chien and Pi-Yu Chuang.

Deloitte & Touche Taipei, Taiwan Republic of China May 14, 2021

Notice to Readers

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

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

Unit: NT$1,000

Tex Year Industries Inc. and Subsidiaries

Consolidated Balance Sheet

March 31, 2021 and December 31 and March 31, 2020

Code 1100 1110 1150 1170 1180 1200 1210 130X 1470 11XX 1517 1540 1550 1600 1755 1821 1840 1915 1990 15XX 1XXX Code 2100 2120 2150 2170 2180 2200 2220 2230 2250 2280 2320 2399 21XX 2530 2540 2570 2580 2630 2640 2670 25XX 2XXX 3110 3130 3100 3200 3310 3320 3350 3300 3410 3420 3400 31XX 36XX 3XXX	Asset Current Asset Cash and cash equivalents (note 6) Financial assets measured at fair value through income statement - current (note 7) Notes receivable (note 10) Accounts receivable (note 10) Accounts receivable - related parties (notes 10 and 32) Other receivables (note 10) Other receivables - related parties (notes 10 and 32) Inventory (notes 11 and 33) Other current assets (note 17) Total Current Assets Non-current Assets Financial assets measured at fair value through other comprehensive income - non-current (note 8) Financial assets measured at cost after amortization – non-current (notes 9 and 33) Investment under the equity method (note 13) Property, plant and equipment (notes 14, 18, and 33) Right-of-use assets (note 15) Intangible assets (note 16) Deferred income tax assets (notes 4 and 27) Advance payment for equipment Other non-current assets (note 17) Total Non-current Assets Total Assets Liabilities and Equity Current Liabilities Short term borrowings (note 18) Financial liabilities measured at fair value through income statement - current (note 7) Notes payable (note 20) Accounts payable (note 20) Accounts payable - related parties (notes 20 and 32) Other payables (note 21) Other payables - related parties (note 32) Current income tax liabilities (note 4) Provision for liabilities - current (note 22) Lease liabilities - current (note 15) Long term loans due within one year (notes 18, 19, and 33) Other current liabilities (notes 21 and 29) Total Current Liabilities Non-current Liabilities Corporate bonds payable (note 19) Long term borrowings (notes 18 and 33) Deferred income tax liabilities (notes 4 and 27) Lease liabilities – non-current (note 15) Deferred income – non-current (note 29) Net defined benefit liabilities – non-current (notes 4 and 23) Other non-current liabilities (note 21) Total Non-current Liabilities Total Liabilities Equity attributable to owners of the Company (notes 8, 12, 13, 19, 23, 24, 27, and 31) Share capital Common stock Certificates of rights to exchange bonds for shares Total share capital Capital from retained earnings Retained earnings Legal reserve Special reserve Undistributed earnings Total retained earnings Other equity Exchange differences on the translation of financial statements of foreign operating organizations Unrealized profit or loss of financial assets measured at fair value through other comprehensive income Total other equity Total owner's equity of the Company Non-controlling interests Total Equity Total Liabilities and Equity	March 31,2021(Reviewed) Amount % $ 332,512 10 64,126 2 20,142 1 607,834 19 32,667 1 26,199 1 33,194 1 651,924 21 81,881 3 1,850,479 59 - - 23,346 1 94,616 3 989,609 31 71,621 2 18,817 1 38,070 1 33,504 1 20,061 1 1,289,644 41 $ 3,140,123 100 $ 472,443 15 5,754 - - - 428,430 14 1,944 - 112,336 4 - - 7,611 - 999 - 2,139 - 111,823 4 46,214 1 1,189,693 38 256,857 8 264,655 9 77,403 3 1,060 - 6,086 - 41,636 1 3,708 - 651,405 21 1,841,098 59 893,857 28 15,929 1 909,786 29 49,923 1 125,834 4 95,226 3 82,144 3 303,204 10 ( 92,151 ) ( 3 ) ( 12,586) - ( 104,737) ( 3) 1,158,176 37 140,849 4 1,299,025 41 $ 3,140,123 100	March 31,2021(Reviewed) Amount % $ 332,512 10 64,126 2 20,142 1 607,834 19 32,667 1 26,199 1 33,194 1 651,924 21 81,881 3 1,850,479 59 - - 23,346 1 94,616 3 989,609 31 71,621 2 18,817 1 38,070 1 33,504 1 20,061 1 1,289,644 41 $ 3,140,123 100 $ 472,443 15 5,754 - - - 428,430 14 1,944 - 112,336 4 - - 7,611 - 999 - 2,139 - 111,823 4 46,214 1 1,189,693 38 256,857 8 264,655 9 77,403 3 1,060 - 6,086 - 41,636 1 3,708 - 651,405 21 1,841,098 59 893,857 28 15,929 1 909,786 29 49,923 1 125,834 4 95,226 3 82,144 3 303,204 10 ( 92,151 ) ( 3 ) ( 12,586) - ( 104,737) ( 3) 1,158,176 37 140,849 4 1,299,025 41 $ 3,140,123 100	December 31,2020(Audited) Amount % $ 420,381 14 60,078 2 24,148 1 597,994 19 37,681 1 22,277 1 1,433 - 541,905 18 70,813 2 1,776,710 58 - - 76 - 124,574 4 1,006,358 33 72,943 2 20,385 1 37,428 1 3,854 - 13,659 1 1,279,277 42 $ 3,055,987 100 $ 356,408 12 4,102 - - - 392,391 13 26,942 1 154,551 5 - - 12,408 - 1,046 - 2,848 - 115,384 4 33,365 1 1,099,445 36 261,082 9 284,372 9 79,806 3 1,496 - 6,852 - 42,491 1 1,115 - 677,214 22 1,776,659 58 893,857 29 12,143 1 906,000 30 48,570 1 125,834 4 95,226 3 75,916 3 296,976 10 ( 98,193 ) ( 3 ) ( 12,586) ( 1) ( 110,779) ( 4) 1,140,767 37 138,561 5 1,279,328 42 $ 3,055,987 100	December 31,2020(Audited) Amount % $ 420,381 14 60,078 2 24,148 1 597,994 19 37,681 1 22,277 1 1,433 - 541,905 18 70,813 2 1,776,710 58 - - 76 - 124,574 4 1,006,358 33 72,943 2 20,385 1 37,428 1 3,854 - 13,659 1 1,279,277 42 $ 3,055,987 100 $ 356,408 12 4,102 - - - 392,391 13 26,942 1 154,551 5 - - 12,408 - 1,046 - 2,848 - 115,384 4 33,365 1 1,099,445 36 261,082 9 284,372 9 79,806 3 1,496 - 6,852 - 42,491 1 1,115 - 677,214 22 1,776,659 58 893,857 29 12,143 1 906,000 30 48,570 1 125,834 4 95,226 3 75,916 3 296,976 10 ( 98,193 ) ( 3 ) ( 12,586) ( 1) ( 110,779) ( 4) 1,140,767 37 138,561 5 1,279,328 42 $ 3,055,987 100	March 31,2020(Reviewed)	March 31,2020(Reviewed)	March 31,2020(Reviewed)
			Amount $ 332,512 64,126 20,142 607,834 32,667 26,199 33,194 651,924 81,881 1,850,479 - 23,346 94,616 989,609 71,621 18,817 38,070 33,504 20,061 1,289,644 $ 3,140,123 $ 472,443 5,754 - 428,430 1,944 112,336 - 7,611 999 2,139 111,823 46,214 1,189,693 256,857 264,655 77,403 1,060 6,086 41,636 3,708 651,405 1,841,098 893,857 15,929 909,786 49,923 125,834 95,226 82,144 303,204 92,151 ) 12,586) 104,737) 1,158,176 140,849 1,299,025 $ 3,140,123		Amount $ 420,381 60,078 24,148 597,994 37,681 22,277 1,433 541,905 70,813 1,776,710 - 76 124,574 1,006,358 72,943 20,385 37,428 3,854 13,659 1,279,277 $ 3,055,987 $ 356,408 4,102 - 392,391 26,942 154,551 - 12,408 1,046 2,848 115,384 33,365 1,099,445 261,082 284,372 79,806 1,496 6,852 42,491 1,115 677,214 1,776,659 893,857 12,143 906,000 48,570 125,834 95,226 75,916 296,976 98,193 ) 12,586) 110,779) 1,140,767 138,561 1,279,328 $ 3,055,987		Amount $ 371,068 46,358 25,733 459,059 24,491 12,283 6,746 542,006 76,652 1,564,396 3,586 32,754 129,140 1,019,359 75,388 21,199 42,371 8,907 12,645 1,345,349 $ 2,909,745 $ 380,819 5,304 21 309,062 48,707 99,360 58 4,834 1,415 4,378 50,019 43,734 947,711 277,343 381,130 62,333 1,999 9,099 41,328 1,132 774,364 1,722,075 886,794 4,965 891,759 70,283 121,416 54,831 42,697 218,944 100,716 ) 9,000) 109,716) 1,071,270 116,400 1,187,670 $ 2,909,745	%
		( ( (		( ( (		( ( (		13 1 1 16 1 - - 19 3 54 - 1 4 35 3 1 2 - - 46 100 13 - - 11 2 3 - - - - 2 1 32 10 13 2 - - 2 - 27 59 31 - 31 2 4 2 2 8 ( 4 ) - ( 4) 37 4 41 100

The attached notes are part of the consolidated financial statements.

(please refer to the Independent Auditor’s Review Report of Deloitte & Touche on May 14, 2021)

Chairman: Hsiang-Chih Hsiao

Manager: Hsiang-Chih Hsiao

Accounting Supervisor: Chih-Wen Kao

Tex Year Industries Inc. and Subsidiaries

Consolidated Statement of Comprehensive Income

January 1 to March 31, 2021 and 2020

(reviewed only, not audited in accordance with the Generally Accepted Auditing Standards)

Unit: NT$1,000, but earnings (loss) per share is NT$1

Code Operating income (notes 25, 32 and 37) 4110 Total operating income 4170 Less: sales return 4190 Less: sales discount 4000 Net operating income Operating costs (notes 11, 22, 23, 26 and 32) 5110 Cost of goods sold 5900 Operating margin 5910 Realized gain from investments and joint ventures 5950 Realized gross profit Operating expenses (notes 10, 15, 23, 26 and 32) 6100 Marketing expenses 6200 Administrative expenses 6300 Research and development costs 6000 Total operating expenses 6900 Net operating profit (loss) Non-operating income and expenditure 7060 Share of joint venture income recognized by equity method (note 13) 7100 Interest income (note 26)	January 1 to March 31, 2021 Amount % $ 836,185 101 4,430 1 ( 10) - 831,765 100 675,740 81 156,025 19 47 - 156,072 19 84,437 10 35,008 4 22,885 3 142,330 17 13,742 2 ( 1,437 ) - 267 -	January 1 to March 31, 2021 Amount % $ 836,185 101 4,430 1 ( 10) - 831,765 100 675,740 81 156,025 19 47 - 156,072 19 84,437 10 35,008 4 22,885 3 142,330 17 13,742 2 ( 1,437 ) - 267 -	January 1 to March 31, 2021 Amount % $ 836,185 101 4,430 1 ( 10) - 831,765 100 675,740 81 156,025 19 47 - 156,072 19 84,437 10 35,008 4 22,885 3 142,330 17 13,742 2 ( 1,437 ) - 267 -	January 1 to March 31, 2020	January 1 to March 31, 2020	January 1 to March 31, 2020	January 1 to March 31, 2020
		Amount $ 836,185 4,430 10) 831,765 675,740 156,025 47 156,072 84,437 35,008 22,885 142,330 13,742 1,437 ) 267			Amount $ 616,469 2,674 75) 613,870 496,965 116,905 95 117,000 74,160 33,717 23,709 131,586 14,586) 541 649		%
	( (			( (		(	100 - - 100 81 19 - 19 12 5 4 21 2) - -

(To be continued)

(Continued)

Code 7010 Other income (notes 26, 29 and 32) 7230 Foreign exchange gain (loss) - net (note 35) 7020 Other interests and losses (note 26) 7510 Financial cost (notes 18, 19 and 26) 7590 Miscellaneous expenses 7000 Total non-operating income and expenditure 7900 Net profit (loss) before tax 7950 Income tax benefit (expense) (notes 4 and 27) 8200 Net profit (loss) of the current period Other comprehensive income (notes 4, 8, 12, 13 and 27) Items that may be reclassified to income in the future 8361 Exchange differences on the translation of financial statements of foreign operating organizations 8370 Share of other comprehensive income of joint venture under the equity method 8399 Income tax related to items that may be reclassified 8360 8300 Other comprehensive income (net of tax) 8500 Total comprehensive income of the current period	January 1 to March 31, 2021 Amount % $ 9,058 1 ( 2,384 ) - ( 2,146 ) - ( 2,490 ) ( 1 ) ( 1,673) - ( 805) - 12,937 2 ( 4,979) ( 1) 7,958 1 4,259 1 3,852 - ( 1,511) - 6,600 1 6,600 1 $ 14,558 2	January 1 to March 31, 2021 Amount % $ 9,058 1 ( 2,384 ) - ( 2,146 ) - ( 2,490 ) ( 1 ) ( 1,673) - ( 805) - 12,937 2 ( 4,979) ( 1) 7,958 1 4,259 1 3,852 - ( 1,511) - 6,600 1 6,600 1 $ 14,558 2	January 1 to March 31, 2021 Amount % $ 9,058 1 ( 2,384 ) - ( 2,146 ) - ( 2,490 ) ( 1 ) ( 1,673) - ( 805) - 12,937 2 ( 4,979) ( 1) 7,958 1 4,259 1 3,852 - ( 1,511) - 6,600 1 6,600 1 $ 14,558 2	January 1 to March 31, 2020	January 1 to March 31, 2020	January 1 to March 31, 2020	January 1 to March 31, 2020
		Amount $ 9,058 2,384 ) 2,146 ) 2,490 ) 1,673) 805) 12,937 4,979) 7,958 4,259 3,852 1,511) 6,600 6,600 $ 14,558			Amount $ 8,735 662 3,473 ) 4,229 ) 1,585) 1,300 13,286 ) 5,223 8,063) 18,788 ) 2,272 ) 3,623 17,437) 17,437) $ 25,500)		%
	( ( ( ( ( ( (		( (	( ( ( ( ( ( ( ( ( (		( ( ( ( ( ( (	1 - - 1 ) - - 2 ) 1 1) 3 ) - - 3) 3) 4)

(To be continued)

(Continued)

Code Net profit (loss) attributable to 8610 owners of the Company 8620 Non-controlling interests 8600 Total comprehensive income attributable to 8710 owners of the Company 8720 Non-controlling interests 8700 Earnings (loss) per share (note 28) 9710 Basic 9810 Diluted	January 1 to March 31, 2021 Amount % $ 6,228 1 1,730 - $ 7,958 1 $ 12,270 2 2,288 - $ 14,558 2 $ 0.07 $ 0.06	January 1 to March 31, 2021 Amount % $ 6,228 1 1,730 - $ 7,958 1 $ 12,270 2 2,288 - $ 14,558 2 $ 0.07 $ 0.06	January 1 to March 31, 2021 Amount % $ 6,228 1 1,730 - $ 7,958 1 $ 12,270 2 2,288 - $ 14,558 2 $ 0.07 $ 0.06	January 1 to March 31, 2020	January 1 to March 31, 2020	January 1 to March 31, 2020	January 1 to March 31, 2020
		Amount $ 6,228 1,730 $ 7,958 $ 12,270 2,288 $ 14,558 $ 0.07 $ 0.06			Amount $ 11,371 ) 3,308 $ 8,063) $ 25,861 ) 361 $ 25,500) $ 0.13) $ 0.13)		%
				( ( ( ( ( (		( ( ( (	2 ) 1 1) 4 ) - 4)

The attached notes are part of the consolidated financial statements.

(please refer to the Independent Auditor’s Review Report of Deloitte & Touche on May 14,

2021)

Chairman: Hsiang-Chih Hsiao

Manager: Hsiang-Chih Hsiao

Accounting upervisor:Chin-Wen Kao

Unit: NT$1,000

Tex Year Industries Inc. and Subsidiaries

Consolidated Statement of Changes in Equity

January 1 to March 31, 2021 and 2020

(reviewed only, not audited in accordance with the Generally Accepted Auditing Standards)

Equity attributable to owners of the Company (notes 8, 12, 13, 19, 23, 24, 27, and 31) Other equity items Exchange differences on the translation of financial statements of foreign operating organizations Unrealized profit or loss of financial assets measured at fair value through other comprehensive income Share capital Common stock Certificates of rights to exchange bonds for shares Retained earnings Capital from retained earnings Legal reserve Special reserve Undistributed earnings $ 885,767 $ 1,027 $ 68,494 $ 121,416 $ 54,831 $ 54,068 ( $ 86,226 ) ( $ 9,000 ) - 4,965 1,789 - - - - - 1,027 ( 1,027 ) - - - - - - - - - - - ( 11,371 ) - - - - - - - - ( 14,490) - - - - - - ( 11,371) ( 14,490) - $ 886,794 $ 4,965 $ 70,283 $ 121,416 $ 54,831 $ 42,697 ($ 100,716) ($ 9,000) $ 893,857 $ 12,143 $ 48,570 $ 125,834 $ 95,226 $ 75,916 ( $ 98,193 ) ( $ 12,586 ) - 3,786 1,353 - - - - - - - - - - 6,228 - - - - - - - - 6,042 - - - - - - 6,228 6,042 - $ 893,857 $ 15,929 $ 49,923 $ 125,834 $ 95,226 $ 82,144 ($ 92,151) ($ 12,586)	Equity attributable to owners of the Company (notes 8, 12, 13, 19, 23, 24, 27, and 31) Other equity items Exchange differences on the translation of financial statements of foreign operating organizations Unrealized profit or loss of financial assets measured at fair value through other comprehensive income Share capital Common stock Certificates of rights to exchange bonds for shares Retained earnings Capital from retained earnings Legal reserve Special reserve Undistributed earnings $ 885,767 $ 1,027 $ 68,494 $ 121,416 $ 54,831 $ 54,068 ( $ 86,226 ) ( $ 9,000 ) - 4,965 1,789 - - - - - 1,027 ( 1,027 ) - - - - - - - - - - - ( 11,371 ) - - - - - - - - ( 14,490) - - - - - - ( 11,371) ( 14,490) - $ 886,794 $ 4,965 $ 70,283 $ 121,416 $ 54,831 $ 42,697 ($ 100,716) ($ 9,000) $ 893,857 $ 12,143 $ 48,570 $ 125,834 $ 95,226 $ 75,916 ( $ 98,193 ) ( $ 12,586 ) - 3,786 1,353 - - - - - - - - - - 6,228 - - - - - - - - 6,042 - - - - - - 6,228 6,042 - $ 893,857 $ 15,929 $ 49,923 $ 125,834 $ 95,226 $ 82,144 ($ 92,151) ($ 12,586)	Equity attributable to owners of the Company (notes 8, 12, 13, 19, 23, 24, 27, and 31) Other equity items Exchange differences on the translation of financial statements of foreign operating organizations Unrealized profit or loss of financial assets measured at fair value through other comprehensive income Share capital Common stock Certificates of rights to exchange bonds for shares Retained earnings Capital from retained earnings Legal reserve Special reserve Undistributed earnings $ 885,767 $ 1,027 $ 68,494 $ 121,416 $ 54,831 $ 54,068 ( $ 86,226 ) ( $ 9,000 ) - 4,965 1,789 - - - - - 1,027 ( 1,027 ) - - - - - - - - - - - ( 11,371 ) - - - - - - - - ( 14,490) - - - - - - ( 11,371) ( 14,490) - $ 886,794 $ 4,965 $ 70,283 $ 121,416 $ 54,831 $ 42,697 ($ 100,716) ($ 9,000) $ 893,857 $ 12,143 $ 48,570 $ 125,834 $ 95,226 $ 75,916 ( $ 98,193 ) ( $ 12,586 ) - 3,786 1,353 - - - - - - - - - - 6,228 - - - - - - - - 6,042 - - - - - - 6,228 6,042 - $ 893,857 $ 15,929 $ 49,923 $ 125,834 $ 95,226 $ 82,144 ($ 92,151) ($ 12,586)	Equity attributable to owners of the Company (notes 8, 12, 13, 19, 23, 24, 27, and 31) Other equity items Exchange differences on the translation of financial statements of foreign operating organizations Unrealized profit or loss of financial assets measured at fair value through other comprehensive income Share capital Common stock Certificates of rights to exchange bonds for shares Retained earnings Capital from retained earnings Legal reserve Special reserve Undistributed earnings $ 885,767 $ 1,027 $ 68,494 $ 121,416 $ 54,831 $ 54,068 ( $ 86,226 ) ( $ 9,000 ) - 4,965 1,789 - - - - - 1,027 ( 1,027 ) - - - - - - - - - - - ( 11,371 ) - - - - - - - - ( 14,490) - - - - - - ( 11,371) ( 14,490) - $ 886,794 $ 4,965 $ 70,283 $ 121,416 $ 54,831 $ 42,697 ($ 100,716) ($ 9,000) $ 893,857 $ 12,143 $ 48,570 $ 125,834 $ 95,226 $ 75,916 ( $ 98,193 ) ( $ 12,586 ) - 3,786 1,353 - - - - - - - - - - 6,228 - - - - - - - - 6,042 - - - - - - 6,228 6,042 - $ 893,857 $ 15,929 $ 49,923 $ 125,834 $ 95,226 $ 82,144 ($ 92,151) ($ 12,586)	Equity attributable to owners of the Company (notes 8, 12, 13, 19, 23, 24, 27, and 31) Other equity items Exchange differences on the translation of financial statements of foreign operating organizations Unrealized profit or loss of financial assets measured at fair value through other comprehensive income Share capital Common stock Certificates of rights to exchange bonds for shares Retained earnings Capital from retained earnings Legal reserve Special reserve Undistributed earnings $ 885,767 $ 1,027 $ 68,494 $ 121,416 $ 54,831 $ 54,068 ( $ 86,226 ) ( $ 9,000 ) - 4,965 1,789 - - - - - 1,027 ( 1,027 ) - - - - - - - - - - - ( 11,371 ) - - - - - - - - ( 14,490) - - - - - - ( 11,371) ( 14,490) - $ 886,794 $ 4,965 $ 70,283 $ 121,416 $ 54,831 $ 42,697 ($ 100,716) ($ 9,000) $ 893,857 $ 12,143 $ 48,570 $ 125,834 $ 95,226 $ 75,916 ( $ 98,193 ) ( $ 12,586 ) - 3,786 1,353 - - - - - - - - - - 6,228 - - - - - - - - 6,042 - - - - - - 6,228 6,042 - $ 893,857 $ 15,929 $ 49,923 $ 125,834 $ 95,226 $ 82,144 ($ 92,151) ($ 12,586)	Equity attributable to owners of the Company (notes 8, 12, 13, 19, 23, 24, 27, and 31) Other equity items Exchange differences on the translation of financial statements of foreign operating organizations Unrealized profit or loss of financial assets measured at fair value through other comprehensive income Share capital Common stock Certificates of rights to exchange bonds for shares Retained earnings Capital from retained earnings Legal reserve Special reserve Undistributed earnings $ 885,767 $ 1,027 $ 68,494 $ 121,416 $ 54,831 $ 54,068 ( $ 86,226 ) ( $ 9,000 ) - 4,965 1,789 - - - - - 1,027 ( 1,027 ) - - - - - - - - - - - ( 11,371 ) - - - - - - - - ( 14,490) - - - - - - ( 11,371) ( 14,490) - $ 886,794 $ 4,965 $ 70,283 $ 121,416 $ 54,831 $ 42,697 ($ 100,716) ($ 9,000) $ 893,857 $ 12,143 $ 48,570 $ 125,834 $ 95,226 $ 75,916 ( $ 98,193 ) ( $ 12,586 ) - 3,786 1,353 - - - - - - - - - - 6,228 - - - - - - - - 6,042 - - - - - - 6,228 6,042 - $ 893,857 $ 15,929 $ 49,923 $ 125,834 $ 95,226 $ 82,144 ($ 92,151) ($ 12,586)	Equity attributable to owners of the Company (notes 8, 12, 13, 19, 23, 24, 27, and 31) Other equity items Exchange differences on the translation of financial statements of foreign operating organizations Unrealized profit or loss of financial assets measured at fair value through other comprehensive income Share capital Common stock Certificates of rights to exchange bonds for shares Retained earnings Capital from retained earnings Legal reserve Special reserve Undistributed earnings $ 885,767 $ 1,027 $ 68,494 $ 121,416 $ 54,831 $ 54,068 ( $ 86,226 ) ( $ 9,000 ) - 4,965 1,789 - - - - - 1,027 ( 1,027 ) - - - - - - - - - - - ( 11,371 ) - - - - - - - - ( 14,490) - - - - - - ( 11,371) ( 14,490) - $ 886,794 $ 4,965 $ 70,283 $ 121,416 $ 54,831 $ 42,697 ($ 100,716) ($ 9,000) $ 893,857 $ 12,143 $ 48,570 $ 125,834 $ 95,226 $ 75,916 ( $ 98,193 ) ( $ 12,586 ) - 3,786 1,353 - - - - - - - - - - 6,228 - - - - - - - - 6,042 - - - - - - 6,228 6,042 - $ 893,857 $ 15,929 $ 49,923 $ 125,834 $ 95,226 $ 82,144 ($ 92,151) ($ 12,586)	Equity attributable to owners of the Company (notes 8, 12, 13, 19, 23, 24, 27, and 31) Other equity items Exchange differences on the translation of financial statements of foreign operating organizations Unrealized profit or loss of financial assets measured at fair value through other comprehensive income Share capital Common stock Certificates of rights to exchange bonds for shares Retained earnings Capital from retained earnings Legal reserve Special reserve Undistributed earnings $ 885,767 $ 1,027 $ 68,494 $ 121,416 $ 54,831 $ 54,068 ( $ 86,226 ) ( $ 9,000 ) - 4,965 1,789 - - - - - 1,027 ( 1,027 ) - - - - - - - - - - - ( 11,371 ) - - - - - - - - ( 14,490) - - - - - - ( 11,371) ( 14,490) - $ 886,794 $ 4,965 $ 70,283 $ 121,416 $ 54,831 $ 42,697 ($ 100,716) ($ 9,000) $ 893,857 $ 12,143 $ 48,570 $ 125,834 $ 95,226 $ 75,916 ( $ 98,193 ) ( $ 12,586 ) - 3,786 1,353 - - - - - - - - - - 6,228 - - - - - - - - 6,042 - - - - - - 6,228 6,042 - $ 893,857 $ 15,929 $ 49,923 $ 125,834 $ 95,226 $ 82,144 ($ 92,151) ($ 12,586)	Non-controlling interests (note 12) $ 116,039 - - 3,308 ( 2,947) 361 $ 116,400 $ 138,561 - 1,730 558 2,288 $ 140,849		Total equity
Share capital Common stock Certificates of rights to exchange bonds for shares $ 885,767 $ 1,027 - 4,965 1,027 ( 1,027 ) - - - - - - $ 886,794 $ 4,965 $ 893,857 $ 12,143 - 3,786 - - - - - - $ 893,857 $ 15,929		Capital from retained earnings $ 68,494 1,789 - - - - $ 70,283 $ 48,570 1,353 - - - $ 49,923		Retained earnings	Undistributed earnings $ 54,068 - - ( 11,371 ) - ( 11,371) $ 42,697 $ 75,916 - 6,228 - 6,228 $ 82,144
						Exchange differences on the translation of financial statements of foreign operating organizations ( $ 86,226 ) - - - ( 14,490) ( 14,490) ($ 100,716) ( $ 98,193 ) - - 6,042 6,042 ($ 92,151)
Common stock $ 885,767 - 1,027 - - - $ 886,794 $ 893,857 - - - - $ 893,857
			Legal reserve $ 121,416 - - - - - $ 121,416 $ 125,834 - - - - $ 125,834	Special reserve $ 54,831 - - - - - $ 54,831 $ 95,226 - - - - $ 95,226
	(				( (	( ( ( ( ( (	( ( ( (	(	( ( (	$ 1,206,416 6,754 - 8,063 ) 17,437) 25,500) $ 1,187,670 $ 1,279,328 5,139 7,958 6,600 14,558 $ 1,299,025

The attached notes are part of the consolidated financial statements.

Chairman: Hsiang-Chih Hsiao

(please refer to the Independent Auditor’s Review Report of Deloitte & Touche on May 14, 2021) Manager: Hsiang-Chih Hsiao Accounting Supervisor: Chih-Wen Kao

Tex Year Industries Inc. and Subsidiaries

Consolidated Cash Flow Statement

January 1 to March 31, 2021 and 2020

(reviewed only, not audited in accordance with the Generally Accepted Auditing Standards)

Unit: NT$1,000

Code Cash flow from business activities A00010 Net profit (loss) before tax A20010 Income expense loss item A20100 Depreciation expense A20200 Amortization expenses A20300 Expected credit impairment loss A20400 Loss on financial instruments measured at fair value through the income statement A20900 Financial cost A21200 Interest income A22300 Share of profit of joint venture under the equity method A22500 Loss from disposal of property, plant and equipment A23800 Loss from falling inventory price and dead stock A23900 Realized gain from joint ventures A24100 Unrealized foreign currency exchange loss A29900 Reversal of refund liabilities A29900 Reversal of deferred income A30000 Net change in operating assets and liabilities A31115 Financial instruments measured at fair value through the income statement A31130 Notes receivable A31150 Accounts receivable A31160 Accounts receivable - related parties A31180 Other receivables A31190 Other receivables - related parties A31200 Inventory A31240 Other current assets A32130 Notes payable A32150 Accounts payable A32160 Accounts payable - related parties A32180 Other payables	January 1 to March 31, 2021 $ 12,937 22,082 2,070 1,117 2,146 2,490 ( 267 ) 1,437 - 917 ( 47 ) 3,124 ( 47 ) ( 7,104 ) ( 4,290 ) 4,006 ( 11,068 ) 5,078 ( 14,824 ) 685 ( 110,835 ) ( 11,068 ) - 33,299 ( 25,137 ) ( 42,114 )	January 1 to March 31, 2020
		( $ 13,286 ) 22,736 2,435 9,690 3,445 4,229 ( 649 ) ( 541 ) 28 1,207 ( 95 ) 6,393 ( 250 ) ( 3,687 ) ( 29,967 ) ( 2,185 ) 76,545 ( 5,198 ) ( 1,075 ) 773 ( 88,755 ) ( 10,389 ) 21 13,685 ( 5,496 ) 40,773

(To be continued)

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(Continued)

Code A32190 Other payables - related parties A32230 Other current liabilities A32240 Net defined benefit liabilities – non-current A33000 Cash inflow (outflow) from operations A33100 Interest received A33300 Interest paid A33500 Income tax paid AAAA Net cash inflow (outflow) from business activities Cash flow from investment activities B00040 Acquisition of financial assets measured at cost after amortization B00050 Disposal of financial assets measured at cost after amortization B02700 Acquisition of property, plant and equipment B02800 Disposal of property, plant and equipment B04500 Acquisition of intangible assets B06700 Increase in other non-current assets B07100 Increase in advance payment for equipment BBBB Net cash outflow from investment activities Cash flow from financing activities C00100 Increase in short-term borrowings C00200 Decrease in short-term borrowings C01600 Long-term loans C01700 Repayment of long-term loans C04020 Repayment of lease principal C04400 Increase in other non-current liabilities CCCC Net cash inflow from financing activities DDDD Effect of exchange rate changes on cash and cash equivalents EEEE Net decrease in cash and cash equivalents E00100 Beginning cash and cash equivalent balance E00200 Ending cash and cash equivalent balance	January 1 to March 31, 2021 ( $ 39 ) 18,939 ( 855) ( 117,368 ) 267 ( 2,405 ) ( 3,105) ( 122,611) ( 23,270 ) - ( 5,867 ) 107 ( 18 ) ( 6,761 ) ( 30,705) ( 66,514) 115,884 - - ( 21,206 ) ( 1,243 ) 2,804 96,239 5,017 ( 87,869 ) 420,381 $ 332,512	January 1 to March 31, 2020	January 1 to March 31, 2020
	( ( ( ( ( ( ( ( ( ( ( ( ( ( (	( ( ( ( ( ( ( ( ( ( ( ( ( (	$ 11 ) 10,271 408) 30,239 795 3,021 ) 2,156) 25,857 - 23,779 87,701 ) - 374 ) 1,132 ) 5,668) 71,096) - 1,841 ) 60,000 22,703 ) 1,543 ) 240 34,153 7,117) 18,203 ) 389,271 $ 371,068

The attached notes are part of the consolidated financial statements. (please refer to the Independent Auditor’s Review Report of Deloitte Taiwan on May 14, 2021)

Chairman: Hsiang-Chih Hsiao

Manager: Hsiang-Chih Hsiao

Accounting Supervisor: Chih-Wen Kao

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Tex Year Industries Inc. and Subsidiaries

Notes to consolidated financial statements January 1 to March 31, 2021 and 2020

(reviewed only, not audited in accordance with the Generally Accepted Auditing Standards) (unless otherwise specified, the amount unit is in NT$1,000)

1. Company History and Business Scope

Tex Year Industries Inc. (hereinafter referred to as the “Company”) was established on June 28, 1976 with the approval of the Ministry of Economic Affairs. The main business items are the manufacturing and trading of glues, adhesives, hot-melt glues and medical equipment.

The Company's shares were listed and traded on the GreTai Securities Market of the Republic of China on March 16, 2001, and delisted on the GreTai Securities Market on June 24, 2015 and listed and traded on the Taiwan Stock Exchange on the same day.

The consolidated financial statements are expressed in NT$, the functional currency of the Company.

2. Date and Procedure of Adoption of Financial Statements

The consolidated financial statements were adopted and issued by the board meeting on May 14, 2021.

3. Application of New and Revised Standards and Interpretations

(I) The International Financial Reporting Standards (IFRS), International Accounting Standards (IAS), Interpretations (IFRIC) and Interpretations (SIC) (hereinafter referred to as "IFRSs") recognized and issued by the Financial Supervisory Commission (hereinafter referred to as the "FSC") is applied for the first time.

Except the following, the application of the revised IFRSs approved and issued by the FSC will not result in significant changes in the accounting policies of the consolidated Company:

Amendments to IFRS 16 "COVID-19 Related Rent Concessions" and "COVID-19 Related Rent Concessions after June 30, 2021.”

The consolidated Company chooses to apply these amended practical expedients to deal with rent negotiations directly related to COVID-19 with the lessor. Please refer to note 4 for the relevant accounting policies. Before applying the amendments, the consolidated Company shall determine whether the provisions of lease amendments apply to the aforementioned rent negotiation.

The amendments began to apply to the consolidated Company on January 1, 2021.

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(II) IFRSs issued by IASB but not approved and effective by the FSC

The effective date Newly Issued/ Amended/ Revised Standards and promulgated by IASB Interpretations (note 1) "Annual Improvement of IFRSs 2018~2020 Cycle" January 1, 2022 (note 2) Amendment to IFRS 3 "Update of the Index of January 1, 2022 (note 3) Conceptual Framework" The amendments to IFRS 10 and IAS 28, “Sale or Undetermined Contribution of Assets between an Investor and its Associate or Joint Venture” IFRS 17, “Insurance Contracts” January 1, 2023 Amendments to IFRS 17 January 1, 2023 Amendment to IAS 1 "Classification of Liabilities as January 1, 2023 Current or Non-current" Amendment to IAS 1 "Disclosure of Accounting January 1, 2023 (note 6) Policies" Amendment to IAS 8 "Definition of Accounting January 1, 2023 (note 7) Estimates" Amendment to IAS 12 "Deferred Income Tax January 1, 2023 (note 8) Related to Assets and Liabilities Arising from a Single Transaction” Amendments to IAS 16 “Property, Plant and January 1, 2022 (note 4) Equipment: Price before Reaching the Intended State of Use” Amendment to IAS 37 "Loss Contracts - Cost of January 1, 2022 (note 5) Performing Contracts"

Note 1: Unless otherwise expressly remarked, the aforementioned newly promulgated/Amendment/Amended Rules or Interpretation come into effect in the reporting year starting from the respective specified effective dates.
Note 2: The amendment to IFRS 9 is applicable to the exchanges of financial liabilities or amendments to terms and conditions incurring during the annual reporting period as of January 1, 2022. The amendment to IAS 41 “Agriculture” is applicable to fair value measurement during the annual reporting period as of January 1, 2022. The amendment to IFRS 1 “First-time Adoption of International Financial Reporting Standards (IFRSs)” is applicable retroactively during the annual reporting period as of January 1, 2022.
Note 3: The amendment is applicable to the mergers of enterprises after January 1, 2022 during the annual reporting period.
Note 4: The amendment is applicable to the plant, property and equipment which reach the required location and state of operation desired by the management after January 1, 2021.
Note 5: The amendment is applicable to the contracts, all the obligations of which have not yet been fulfilled before January 1, 2022.
Note 6: The application of this amendment will be postponed till the annual reporting period beginning after January 1, 2023.
Note 7: This amendment applies to changes in accounting estimates and changes in accounting policies that occur in the annual reporting period beginning after January 1, 2023.
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Note 8: Except for the recognition of deferred income tax on temporary differences between a lease and decommissioning obligations on January 1, 2022, the amendment applies to transactions that occur after January 1, 2022.

Amendment to IAS 1 "Classification of Liabilities as Current or Non-current.”

The amendment is to clarify that when determining whether a liability is classified as non-current, it should be assessed whether the consolidated Company has the right at the end of the reporting period to defer the settlement period to at least 12 months after the reporting period. If the consolidated Company has the right at the end of the reporting period, regardless of whether the consolidated Company expects to exercise the right, the liabilities are classified as non-current. The amendment also clarifies that if the consolidated Company must comply with certain conditions in order to have the right to defer the payment of liabilities, then the consolidated Company must have complied with the specific conditions at the end of the reporting period, even if the lender tests whether the consolidated Company complies with these conditions on a later date.

The amendment stipulates that, for the purpose of classification of liabilities, the aforementioned settlement refers to the elimination of liabilities due to the transfer of cash, other economic resources, or equity instruments of the consolidated Company to the counterparty. However, if the terms of the liability may be based on the choice of the counterparty to transfer the equity instruments of the consolidated Company and cause its liquidation, and if the option is separately recognized as equity according to IAS 32 "Financial Instruments: Expression," then the foregoing terms do not affect the classification of liabilities.

Amendment to IAS 1 "Disclosure of Accounting Policies"

The amendment clearly stipulates that the consolidated Company should determine the significant accounting policy information that should be disclosed based on the definition of significance. If accounting policy information can be reasonably expected to affect the decisions made by the main users of general-purpose financial statements based on these financial

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statements, the accounting policy information is significant. The amendment also clarifies:

Accounting policy information related to non-significant transactions, other events or circumstances is non-significant, and the consolidated Company does not need to disclose such information.
The consolidated Company may determine the relevant accounting policy information being significant due to the nature of the transaction or other events or circumstances, even if the amount is not significant.
Not all accounting policy information related to major transactions, other events or circumstances is significant.
In addition, the amendment also explains that if the accounting policy
information is related to major transactions or other matters or circumstances, and if any of the following circumstances exists, the information may be significant:
(1) The consolidated Company changes its accounting policies during the reporting period, and the change results in a significant change in the financial statement information;
(2) The consolidated Company selects its applicable accounting policies from the options allowed by the standards;
(3) Due to the lack of specific standards, the consolidated Company has established accounting policies in accordance with IAS 8 "Accounting Policies, Changes and Errors in Accounting Estimates";
(4) The consolidated Company discloses relevant accounting policies for which it must use significant judgments or assumptions to determine; or
(5) Complicated accounting regulations are involved, and users of financial statements rely on such information to understand such major transactions or other matters or situations.
Amendment to IAS 8 "Definition of Accounting Estimates"
The amendment specifies that the accounting estimate refers to the
monetary amount affected by measurement uncertainty in the financial statements. When the consolidated Company applies accounting policies, it may be necessary to measure financial statement items with monetary
15 -

amounts that cannot be directly observed and must be estimated. Therefore, measurement techniques and input values must be used to establish accounting estimates to achieve this purpose. If the impact of changes in measurement techniques or input values on accounting estimates is not due to corrections of previous errors, these changes are considered changes in accounting estimates.

In addition to the impacts above, if the consolidated Company continues to evaluate the impact of other standards and amendments to the interpretation on the financial status and financial performance as of the date of approval of the consolidated financial statements for publication, the relevant impacts shall be disclosed when the evaluation is completed.

4. Summary of Significant Accounting Policies

(I) Declaration of Compliance

The consolidated financial statements have been prepared in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and IAS 34 “Interim Financial Reporting” approved and issued by the FSC. The consolidated financial statements do not contain all IFRSs disclosures required by the entire annual financial statements.

(II) Basis of Preparation

In addition to financial instruments measured at fair value and net defined benefit liabilities recognized at the present value of defined benefit obligations less the fair value of planned assets, the consolidated financial statements are prepared based on historical cost.

Fair value measurement is divided into levels 1 to 3 according to the observability and importance of relevant input values:

Level 1 input value: refers to the quoted price (unadjusted) of the same assets or liabilities available in the active market on the measurement date.
Level 2 input value: refers to direct (i.e., price) or indirect (i.e., derived from price) observable input value of assets or liabilities other than the quotation of level 1.
Level 3 input value: refers to the unobservable input value of assets or liabilities.
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(III) Basis of Consolidation

The consolidated financial statements include the financial statements of the Company and the entities (subsidiaries) controlled by the Company. In the consolidated statement of comprehensive income, the operating income of the acquired or affiliated subsidiaries since the acquisition date or until the disposal date has been included. The financial statements of the subsidiaries have been adjusted so that their accounting policies are consistent with those of the consolidated Company. In the preparation of the consolidated financial statements, all transactions, account balances, gains and expense losses among the entities have been eliminated. The total comprehensive income of the subsidiaries is attributable to the owners and is the non-controlling interest of the Company, even if the non-controlling interest becomes a loss.

Where the change of ownership rights of the subsidiaries of the consolidated Company does not result in a loss of control, it shall be treated as an equity transaction. The book amounts of the consolidated Company and non-controlling interests have been adjusted to reflect the change in the relative interests in subsidiaries. The difference between the adjusted amount of non-controlling interests and the fair value of the consideration paid or received is directly recognized as equity and belongs to the owners of the Company.

For details of subsidiaries, shareholding ratio and business items, please refer to note 12, schedule 5 and schedule 6.

(IV) Other Significant Accounting Policies

Except for the following notes, please refer to the Summary of Significant Accounting Policies in the consolidated financial report of 2020.

Defined benefits and post-retirement benefits

The pension cost of the interim period is calculated based on the pension cost rate determined by actuarial calculation from the end of the previous year to the end of the current period, and adjusted for major market fluctuations of the current period, as well as major plan amendments, repayments or other major one-off events.

Income tax
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Income tax expense is the sum of current income tax and deferred income tax. The income tax of the interim period is assessed on an annual basis, and the profit before tax of the interim period is calculated at the tax rate applicable to the expected annual total earnings.

5. Main Sources of Uncertainty in Significant Accounting Judgments, Estimates and Assumptions

Please refer to the consolidated financial statements of 2020 for the main sources of significant accounting judgments, estimates and assumptions used in the consolidated financial statements.

6. Cash and Cash Equivalents

Cash and Cash Equivalents
Cash on hand and working capital Bank checks and demand deposits Cash equivalents Bank time deposits with original maturity in 3 months	March 31, 2021		December 31,2020 $ 1,783 414,282 4,316 $ 420,381	March 31, 2020
		$ 1,082 328,830 2,600 $ 332,512			$ 1,503 365,309 4,256 $ 371,068

The interest rate ranges of demand deposits and time deposits on the balance sheet date are as follows:

date are as follows:
Demand deposits Time deposit	March 31, 2021	December 31,2020 0.01%~0.6% 1.35%	March 31, 2020
	0.01%~0.6% 2.5%		0.01%~0.6% 1.95%

7. Financial Instruments Measured at Fair Value through Income Statement

March 31, 2021 December 31,2020 March 31, 2020

Financial assets-current Non-derivative financial assets mandatorily measured at fair value through income statement - Wealth management products (1) Derivatives (not for specified hedging) - Put and call rights of convertible corporate bonds (note 19)	$ 63,666 460 $ 64,126	$ 59,518 560 $ 60,078	$ 46,348 10
			$ 46,358

(To be continued)

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(Continued)

March 31, 2021 December 31,2020 March 31, 2020

Financial liabilities-current Held for trading Derivatives (not for specified hedging) - Foreign exchange forward contracts (2) - Currency and interest swap contracts (3)	$ 103 5,651 $ 5,754	$ - 4,102 $ 4,102	$ - 5,304
			$ 5,304

(I) Wealth management products are investment products undertaken by subsidiaries and banks. The details on the balance sheet date are as follows:

Expected annual rate of return	March 31, 2021	December 31,2020 2.6%~2.97%	March 31, 2020
	2.6%~3.1%		2%~3.5%

(II) Foreign exchange forward contracts not covered by hedge accounting and not yet due on the balance sheet date are as follows: (December 31, 2020 and March 31, 2020: none)

March 31, 2021

Sale of foreign exchange forward contracts	Currency USD: NTD	Due date April 12, 2021 ~ June 9, 2021	Contract amount ($1,000)
			USD 325/NTD 9,165

(III) On the balance sheet date, the currency and interest swap contracts not covered by hedge accounting and not yet due are as follows:

March 31, 2021

March 31, 2021
Contract amount ($1,000) EUR 1,445/PLN 6,142 December 31, 2020 Contract amount ($1,000) EUR 1,481/PLN 6,293 March 31, 2020 Contract amount ($1,000) EUR 1,587/PLN 6,746	Due date April 10, 2021 ~ August 9, 2023 Due date January 10, 2021 ~ August 9, 2023 Due date April 10, 2020 ~ August 9, 2023	Range of interest rate paid 3.45% Range of interest rate paid 3.45% Range of interest rate paid 3.45%	Range of interest rate received
			WIBOR3M+3% Range of interest rate received
			WIBOR3M+3% Range of interest rate received
			WIBOR3M+3%

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8. Financial assets measured at fair value through other comprehensive income Equity instrument investment

March 31, 2021 December 31,2020 March 31, 2020

Non-current Domestic investment Unlisted (OTC) stocks Common shares of Acute Touch - - Technology Co., Ltd $ $ $ 3,586

The consolidated Company invests in the common shares of Acute Touch Technology Co., Ltd. for medium and long-term strategic purposes and expects to make profits through long-term investment. In the opinion of the management of the consolidated Company, if the short-term fair value fluctuation of such investment is included in the income, it is not consistent with the aforesaid long-term investment plan, so they chose to designate such investment as measured at fair value through other comprehensive income.

Considering the operation and net equity value of Acute Touch Technology Co., Ltd, the consolidated Company may have a significant impairment in the recoverable amount of its relevant investment, and after evaluation, it recognized the impairment loss of NT$3,586 thousand in 2020.

Financial assets measured at cost after amortization

March 31, 2021 December 31,2020 March 31, 2020 Non-current Restricted bank deposits $ 23,346 $ 76 $ 32,754

The restricted bank deposits are the collaterals of the convertible corporate bonds issued by the Company and the foreign exchange deposits to which the special act on the repatriation of foreign funds is applicable. Please refer to note 33. 10. Notes receivable, accounts receivable and other receivables (including those of related parties)

March 31, 2021 December 31,2020 March 31, 2020

Notes receivable Measured at cost after amortization Total book value Accounts receivable Measured at cost after amortization Total book value Less: provision for loss (	$ 20,142 $ 632,327 24,493) ( $ 607,834	$ 24,148 $ 620,953 22,959) ( $ 597,994	$ 25,733 $ 484,476 25,417) $ 459,059

(To be continued)

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(Continued)

March 31, 2021 December 31,2020 March 31, 2020

Accounts receivable - related

parties Measured at cost after amortization Total book value Less: provision for loss ( Other receivables Tax refund receivable Others Less: provision for loss ( Other receivables - related parties Less: provision for loss (	$ 32,688 21) $ 32,667 $ 8,321 17,880 2) $ 26,199 $ 33,195 1) $ 33,194	$ 37,681 - $ 37,681 $ 10,852 11,425 - ( $ 22,277 $ 1,433 - $ 1,433	$ 24,491 - $ 24,491 $ 8,285 4,021 23) $ 12,283 $ 6,746 - $ 6,746

(I) Accounts receivable

The average credit period of the consolidated Company for commodity sales is 60 days, and the accounts receivable are not subject to interest.

In order to reduce credit risk, the management of the consolidated Company has assigned a special team to be responsible for the decision of credit facilities, credit approval and other monitoring procedures to ensure that appropriate actions have been taken for the recovery of overdue receivables. In addition, the consolidated Company will review the recoverable amounts of the receivables one by one on the balance sheet date to ensure that appropriate impairment loss has been provided for the receivables that cannot be recovered. Therefore, the management of the consolidated Company thinks that the credit risk of the consolidated Company has been significantly reduced.

The consolidated Company shall recognize the provision for loss of accounts receivable according to the expected credit loss during the period of existence. The expected credit loss during the existence period is calculated by the preparation matrix, which considers the past default records of customers and their current financial situation, the industrial economic situation, as well as the GDP forecast

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and industrial outlook. As the historical experience of credit loss of the consolidated Company shows that there is no significant difference in the loss pattern of different customer groups, the preparation matrix does not further distinguish customer groups. It only uses the overdue days of accounts receivable to determine the expected credit loss rate.

If there is evidence that the counterparty is facing serious financial difficulties and the consolidated Company cannot reasonably expect the recoverable amount, for example, if the transaction counterparty is in liquidation, the consolidated Company will directly write off the relevant receivables. Still, it will continue the recourse activities, and the amount recovered due to recourse will be recognized as income.

The consolidated Company measures the provision for loss of accounts receivable (including those of related parties) according to the preparation matrix as follows:

March 31, 2021

Not overdue Expected credit loss rate 0% Total book value $ 585,463 Provision for loss (expected credit loss during the period of existence) - Cost after amortization $ 585,463 December 31, 2020 Not overdue Expected credit loss rate 0% Total book value $ 600,991 Provision for loss (expected credit loss during the period of existence) - Cost after amortization $ 600,991	N	ot overdue		1 ~ 60 days overdue		61 ~ 120 days overdue		121 ~ 150 days overdue		151 ~ 180 days overdue		181 ~ 365 days overdue		More than 366 days overdue		Total
			(	0%~10% $ 55,316 1,452) $ 53,864 1 ~ 60 days overdue	(	5%~30% $ 1,640 695) $ 945 61 ~ 120 days overdue	(	20%~40% $ 80 16) $ 64 121 ~ 150 days overdue	(	50%~100% $ 505 340) $ 165 151 ~ 180 days overdue	(	100% $ 3,987 3,987) $ - 181 ~ 365 days overdue	(	100% $ 18,024 18,024) $ - More than 366 days overdue	(	$ 665,015 24.514) $ 640,501 Total
Expected credit loss rate Total book value Provision for loss (expected credit loss during the period of existence) Cost after amortization	N
		0% $ 600,991 - $ 600,991	(	0%~10% $ 31,650 490) $ 31,160	(	5%~30% $ 2,414 637) $ 1,777	(	20%~40% $ 2,283 543) $ 1,740	(	50%~100% $ 111 104) $ 7	(	100% $ 3,633 3,633) $ -	(	100% $ 17,552 17,552) $ -	(	$ 658,634 22,959) $ 635,675

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March 31, 2020

Expected credit loss rate Total book value Provision for loss (expected credit loss during the period of existence) Cost after amortization	N	ot overdue		1 ~ 60 days overdue		61 ~ 120 days overdue		121 ~ 150 days overdue		151 ~ 180 days overdue		181 ~ 365 days overdue		More than 366 days overdue		Total
		0% $ 419,799 - $ 419,799	(	0%~10% $ 55,904 1,936) $ 53,968	(	5%~30% $ 11,050 2,585) $ 8,465	(	20%~40% $ 1,965 765) $ 1,200	(	50%~100% $ 629 511) $ 118	(	100% $ 13,833 13,833) $ -	(	100% $ 5,787 5,787) $ -	(	$ 508,967 25,417) $ 483,550

Information on changes in provision for losses of accounts receivable (including those of related parties) is as follows:

Beginning balance Add: impairment loss in the current period Less: actual write off in the current period Foreign currency translation difference Ending balance	January 1 to March 31, 2021 $ 22,959 1,114 - 441 $ 24,514	January 1 to March 31, 2020	January 1 to March 31, 2020
		( (	$ 16,126 9,716 361 ) 64) $ 25,417

Compared with the balance at the beginning of the year, the total book value of accounts receivable as of March 31, 2021 and 2020 decreased by NT$6,381 thousand and NT$70,019 thousand, and the loss provision increased by NT$1,555 thousand and NT$9,291 thousand.

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(II) Collection

The information about the change of provision for collection loss is as follows:

Beginning balance Foreign currency translation difference Ending balance	January 1 to March 31,2021 $ 2,900 230 $ 3,130	January 1 to March 31,2020	January 1 to March 31,2020
		(	$ 3,381 4) $ 3,377

The collection amount is included in other assets and the provision for impairment losses has been made in full.

(III) Other receivables

Information about the change of provision for losses of other receivables (including those of related parties) is as follows:

Beginning balance Less: impairment loss provision (reversals) in the current period Ending balance	January 1 to March 31,2021 $ - 3 $ 3	January 1 to March 31,2020	January 1 to March 31,2020
		(	$ 49 26) $ 23

11. Inventory

Inventory
Finished products Semi-finished products Raw materials Merchandise inventory	March 31,2021		December 31,2020 $ 210,963 26,367 248,374 56,201 $ 541,905	March 31,2020
		$ 240,902 32,130 297,897 80,995 $ 651,924			$ 230,415 31,839 215,660 64,092 $ 542,006

The cost of goods sold related to inventory from January 1 to March 31 in 2021 and 2020 is NT$675,740 thousand and NT$496,965 thousand. The cost of goods sold from January 1 to March 31 in 2021 and 2020 include the loss from falling inventory price, which is NT$917 thousand and NT$1,207 thousand.

24 -

12. Subsidiaries

(I) Subsidiaries included in the consolidated financial statements

The consolidated financial statements are prepared by:

Name of investment company The Company The Company The Company The Company Tex Year International (Samoa) Corp. Tex Year (Hong Kong) Ltd. Tex Year Technology (Samoa) Corp. Tex Year Technology (Samoa) Corp. Tex Year Fine Chemical (Guangzhou) Co., Ltd. Tex Year Fine Chemical (Guangzhou) Co., Ltd. Shanghai C&M Filtration Solutions Limited	Name of subsidiary Tex Year International (Samoa) Corp. Tex Year (Hong Kong) Ltd. Tex Year Vietnam Co., Ltd. Tex Year Europe Sp. z o. o. Tex Year Technology (Samoa) Corp. Tex Year Technology (Samoa) Corp. Tex Year Fine Chemical (Guangzhou) Co., Ltd. Tex Year Technology (Jiangsu) Co., Ltd. Wuxi Tex Year International Trading Co., Ltd. Shanghai C&M Filtration Solutions Limited Jiangsu C&M Filtration Solutions Limited	Nature of business Holding company Sales of hot melt adhesive, adhesive and various appliances Manufacturing and trading of hot melt adhesives and water adhesives R&D, production, and sales of hot melt adhesives Holding company Holding company R&D, production, and sales of hot melt adhesives R&D, production, and sales of hot melt adhesives Sales of chemical products and adhesives Wholesale, import, and export of environmental filter materials, chemical products, and accessories R&D and manufacturing of filter materials	Percentage of equityheld March 31, 2021 December 31,2020 March 31, 2020 100% 100% 100% 100% 100% 100% 80% 80% 80% 80% 80% 80% 96.08% 96.08% 96.08% 3.92% 3.92% 3.92% 100% 100% 100% 100% 100% 100% 100% 100% 100% 50.10% 50.10% 50.10% 100% 100% 100%	Percentage of equityheld March 31, 2021 December 31,2020 March 31, 2020 100% 100% 100% 100% 100% 100% 80% 80% 80% 80% 80% 80% 96.08% 96.08% 96.08% 3.92% 3.92% 3.92% 100% 100% 100% 100% 100% 100% 100% 100% 100% 50.10% 50.10% 50.10% 100% 100% 100%	Explanation
			March 31, 2021 100% 100% 80% 80% 96.08% 3.92% 100% 100% 100% 50.10% 100%	December 31,2020 100% 100% 80% 80% 96.08% 3.92% 100% 100% 100% 50.10% 100%
					- note note note - - - note - note note

Note: It is a non-important subsidiary and its financial statements have not been reviewed by a certified public accountant.

25 -

(II) Information of subsidiaries with significant non-controlling interests

Name of subsidiary Tex Year Vietnam Co., Ltd. Tex Year Europe Sp. z o. o. Shanghai C&M Filtration Solutions Limited	Main business premises Pingyang Province, Vietnam Poland Shanghai	Proportion of shares and voting rights held bynon-controllinginterests	Proportion of shares and voting rights held bynon-controllinginterests
		March 31, 2021 December 31,2020	March 31, 2020 20% 20% 49.9%
		20% 20% 20% 20% 49.9% 49.9%

Name of subsidiary Tex Year Vietnam Co., Ltd. Tex Year Europe Sp. z o. o. Shanghai C&M Filtration Solutions Limited Total	Profit (loss) distributed to non-controllinginterests January 1 to March 31, 2021 January 1 to March 31, 2020 $ 64 $ 547 148 99 1,518 2,662 $ 1,730 $ 3,308	Profit (loss) distributed to non-controllinginterests January 1 to March 31, 2021 January 1 to March 31, 2020 $ 64 $ 547 148 99 1,518 2,662 $ 1,730 $ 3,308		Non-controllinginterests	Non-controllinginterests	Non-controllinginterests	Non-controllinginterests	Non-controllinginterests
	January 1 to March 31, 2021 $ 64 148 1,518 $ 1,730			March 31, 2021 $ 18,986 32,895 88,968 $ 140,849		December 31,2020		March 31, 2020
						$ 17,462 34,379 86,720 $ 138,561		$ 17,159 31,941 67,300 $ 116,400

The aggregate financial information of the following subsidiaries is based on the amounts before inter-company transaction cancellation:

Tex Year Vietnam Co., Ltd.

Tex Year Vietnam Co., Ltd.
Current Asset Non-current Assets Current Liabilities Equity Equity attributable to: owners of the Company Non-controlling interests	March 31,2021		December 31,2020 $ 116,701 14,373 ( 43,765) $ 87,309 $ 69,847 17,462 $ 87,309	March 31,2020
	(	$ 136,421 14,462 55,954) $ 94,929 $ 75,943 18,986 $ 94,929		(	$ 118,039 15,676 47,920) $ 85,795 $ 68,636 17,159 $ 85,795

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Net profit of the current period attributable to: owners of the Company Non-controlling interests	January 1 to March 31, 2021 $ 318 $ 254 64 $ 318	January 1 to March 31, 2020	January 1 to March 31, 2020
			$ 2,733 $ 2,186 547 $ 2,733

Tex Year Europe Sp. z o. o.

Tex Year Europe Sp. z o. o.
Current Asset Non-current Assets Current Liabilities Non-current Liabilities Equity Equity attributable to: owners of the Company Non-controlling interests	March 31, 2021		December 31,2020 $ 129,821 129,888 ( 47,066 ) ( 40,745) $ 171,898 $ 137,519 34,379 $ 171,898	March 31, 2020
	( (	$ 153,133 121,374 69,622 ) 40,412) $ 164,473 $ 131,578 32,895 $ 164,473	( (	( (	$ 147,989 134,474 79,517 ) 43,240) $ 159,706 $ 127,765 31,941 $ 159,706

Net profit of the current period attributable to: owners of the Company Non-controlling interests	January 1 to March 31, 2021 $ 742 $ 594 148 $ 742	January 1 to March 31, 2020	January 1 to March 31, 2020
			$ 496 $ 397 99 $ 496

Shanghai C&M Filtration Solutions Limited and its subsidiaries

Current Asset Non-current Assets Current Liabilities Equity Equity attributable to: owners of the Company Non-controlling interests	March 31, 2021	March 31, 2021	December 31,2020 $ 146,596 81,685 ( 53,096) $ 175,185 $ 88,465 86,720 $ 175,185	March 31, 2020	March 31, 2020
	(	$ 132,790 83,128 36,745) $ 179,173 $ 90,205 88,968 $ 179,173	(	(	$ 87,408 84,320 35,357) $ 136,371 $ 69,071 67,300 $ 136,371

27 -

Net profit of the current period attributable to: owners of the Company Non-controlling interests	January 1 to March 31,2021 $ 2,863 $ 1,345 1,518 $ 2,863	January 1 to March 31,2020	January 1 to March 31,2020
			$ 6,064 $ 3,402 2,662 $ 6,064

13. Investment under the equity method

Investments and joint ventures

Investments and joint ventures
Significant joint ventures Wuxi More Tex Technology Co., Ltd. Individual non-significant joint ventures Tex Year Industrial Adhesives Pvt. Ltd.	March 31,2021		December 31,2020 $ 102,214 22,360 $ 124,574	March 31,2020
		$ 68,119 26,497 $ 94,616			$ 107,401 21,739 $ 129,140

The percentage of shares and voting rights held by the consolidated company in the joint venture on the balance sheet date is as follows:

joint venture on the balance sheet	date is as follows:
Significant joint ventures Wuxi More Tex Technology Co., Ltd. Individual non-significant joint ventures Tex Year Industrial Adhesives Pvt. Ltd.	March 31,2021 50% 50%	December 31,2020 50% 50%	March 31,2020
			50% 50%

28 -

(I) Significant joint ventures Wuxi More Tex Technology Co., Ltd.

	March 31,2021	March 31,2021	March 31,2021	December 31,2020	December 31,2020	December 31,2020	March 31,	March 31,	March 31,	2020
Current Asset	$ 190,693				$ 200,430			$ 219,561
Non-current Assets		46,382			47,504			52,484
Current Liabilities	(	78,660	)	(	23,818 )		(	56,804 )
Non-current Liabilities	(	543	)			-				-
Equity	$	157,872			$ 224,116			$ 215,241
Shareholding ratio of a
consolidated company		50%				50%			50%
Rights and interests
enjoyed by the
consolidated company	$	78,936			$ 112,058			$ 107,621
Provision of impairment
loss	(	10,817	)	(	9,522 )					-
Unrealized profit and loss
of side flow
transactions		-		(		322 )	(		209 )
Unrealized profit and loss
of downstream
transactions		-				-	(			11)
Book value of investment	$	68,119			$ 102,214			$ 107,401
		January 1 to			March	January		1 to March
			31,2021				31,2020
Operating revenue		$ 40,678					$	77,634
Net profit (loss)/total
comprehensive income for
the period		($		2,606)			$	633
Summary information of individual unimportant joint ventures
Tex Year Industrial Adhesives Ltd.
		January 1 to			March	January		1 to March
			31,2021				31,2020
Share of a consolidated
company
Net profit of continuing
business units of the
current year		$		839			$	262
Other comprehensive
income				3,252		(		1,109	)
Total comprehensive
income		$		4,091		(	$	847	)

(II) Summary information of individual unimportant joint ventures Tex Year Industrial Adhesives Ltd.

29 -

The end date of the annual financial statements of Tex Year Industrial Adhesives Pvt. Ltd. is March 31. As it is difficult in practice to require the Company to prepare additional financial statements covering the period from January 1 to March 31, the consolidated company uses the financial statements of the Company covering the balance sheet dates of March 31, 2021 and March 31, 2020. It adjusts the significant transactions between January 1, 2021 and March 31, 2021 and between January 1, 2020 and March 31, 2020.

The share of income and other comprehensive income enjoyed by the joint venture or consolidated company under the equity method are calculated based on the financial statements that a certified public accountant has not audited.

Please refer to Schedule 5 "Name, location, …. of the investee company" for the business nature, main business premises and country of incorporation of the joint ventures above, and Schedule 6 "Mainland China investment information”.

14. Property, plant and equipment

Cost Balance on January 1, 2020 Addition Disposal Reclassification Net exchange differences Balance on March 31, 2020 Accumulated depreciation and impairment Balance on January 1, 2020 Disposal Depreciation expense Net exchange differences Balance on March 31, 2020 Net amount on March 31, 2020 Cost Balance on January 1, 2021 Addition Disposal Reclassification Net exchange differences Balance on March 31, 2021 Accumulated depreciation and impairment Balance on January 1, 2021 Disposal Depreciation expense Net exchange differences Balance on March 31, 2021 Net amount on March 31, 2021		Self-own land	a	Revaluation and ppreciation of land	Houses and buildings	Machinery and equipment	Office equipment		Other equipment		Unfinished project	Total
		$ 56,524 - - - ( 716) $ 55,808 $ - - - - $ - $ 55,808 $ 56,024 - - - ( 488) $ 55,536 $ - - - - $ - $ 55,536		$ 45,324 - - - - $ 45,324 $ - - - - $ - $ 45,324 $ 45,324 - - - - $ 45,324 $ - - - - $ - $ 45,324	$ 824,287 654 ( 400 ) - ( 8,844) $ 815,697 $ 259,330 ( 372 ) 6,805 ( 1,178) $ 264,585 $ 551,112 $ 842,002 80 - 73 ( 2,806) $ 839,349 $ 287,172 - 7,227 279 $ 294,678 $ 544,671	$ 549,820 1,072 ( 18 ) 2,393 ( 7,310) $ 545,957 $ 219,543 ( 18 ) 11,456 ( 2,438) $ 228,543 $ 317,414 $ 579,579 3,336 ( 1,010) 1,062 975 $ 583,942 $ 263,397 ( 1,010 ) 11,056 1,108 $ 274,551 $ 309,391	$ 24,500 328 ( 37 ) - ( 96) $ 24,695 $ 18,302 ( 37 ) 734 ( 81) $ 18,918 $ 5,777 $ 26,135 1,044 ( 49 ) 46 50 $ 27,226 $ 20,317 ( 49 ) 590 37 $ 20,895 $ 6,331	$ 96,104 2,047 - 1,090 ( 926) $ 98,315 $ 68,502 - 1,737 ( 629) $ 69,610 $ 28,705 $ 102,553 937 ( 230 ) - 467 $ 103,727 $ 74,846 ( 123 ) 1,586 277 $ 76,586 $ 27,141		$ 14,061 1,193 - - ( 35) $ 15,219 $ - - - - $ - $ 15,219 $ 473 815 - ( 73 ) - $ 1,215 $ - - - - $ - $ 1,215		$ 1,610,620 5,294 ( 455 ) 3,483 ( 17,927) $ 1,601,015 $ 565,677 ( 427 ) 20,732 ( 4,326) $ 581,656 $ 1,019,359 $ 1,652,090 6,212 ( 1,289 ) 1,108 ( 1,802) $ 1,656,319 $ 645,732 ( 1,182 ) 20,459 1,701 $ 666,710 $ 989,609

There is no sign of impairment in the assessment of the consolidated companies from

January 1 to March 31 in 2021 and 2020, so no impairment loss is provided.

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Depreciation expenses are accrued on a straight-line basis based on the following number of years of service life:

rs of service life:
Houses and buildings
Main building of the plant	5 to 40 years
Electromechanical and other
equipment	3 to 15 years
Machinery and equipment	2 to 15 years
Office equipment	3 to 6 years
Other equipment	4 to 15 years

Please refer to note 33 for the amount of property, plant and equipment pledged by the consolidated company as collateral for loans and letters of credit.

15. Lease agreement

(I) Right-of-use assets

March 31, 2021 December 31,2020 March 31, 2020

Book amount of right-of-use assets Land Buildings Transportation equipment Other equipment	$ 68,047 1,159 1,940 475 $ 71,621	$ 68,206 1,668 2,550 519 $ 72,943	$ 68,566 2,150 4,019 653
			$ 75,388

Depreciation expense of right-of-use assets Land Buildings Transportation equipment Other equipment	January 1 to March 31,2021 $ 443 515 620 45 $ 1,623	January 1 to March 31,2020	January 1 to March 31,2020
			$ 442 685 831 46 $ 2,004

(II) Lease liabilities

March 31, 2021 December 31,2020 March 31, 2020

Book value of lease liabilities Current Non-current	$ 2,139 $ 1,060	$ 2,848 $ 1,496	$ 4,378
			$ 1,999

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The range of discount rate of lease liabilities is as follows:

Buildings Transportation equipment Other equipment	March 31, 2021	December 31,2020 1.55%~3.08% 1.55%~3.08% 1.45%	March 31, 2020
	1.55%~3.08% 1.55%~3.08% 1.45%		1.55%~3.08% 1.55%~3.08% 1.45%

(III) Other lease information

Other lease information
Short term rental expenses Total cash (outflow) from lease	January 1 to March 31, 2021 $ 4,150 ($ 5,522)	January 1 to March 31, 2020
	(	(	$ 2,864 $ 4,452)

The consolidated company chooses to exempt the recognition of buildings, office equipment and transportation equipment conforming to the short-term lease. It does not recognize the relevant right-of-use assets and lease liabilities.

16. Intangible assets

Intangible assets
Cost Balance on January 1, 2020 Acquisition Net exchange differences Balance on March 31, 2020 Accumulated depreciation and impairment Balance on January 1, 2020 Amortization expenses Net exchange differences Balance on March 31, 2020 Net amount on March 31, 2020 Cost Balance on January 1, 2021 Acquisition Net exchange differences Balance on March 31, 2021	Patent rights $ 29,201 - ( 284) $ 28,917 $ 11,928 1,119 ( 120) $ 12,927 $ 15,990 $ 29,238 - 171 $ 29,409	Computer software $ 26,318 374 ( 118) $ 26,574 $ 21,040 442 ( 117) $ 21,365 $ 5,209 $ 30,291 18 ( 76) $ 30,233		Total
	( (	( ( (	( (	$ 55,519 374 402) $ 55,491 $ 32,968 1,561 237) $ 34,292 $ 21,199 $ 59,529 18 95 $ 59,642

(To be continued)

32 -

(Continued)

Accumulated depreciation and impairment Balance on January 1, 2021 Amortization expenses Net exchange differences Balance on March 31, 2021 Net amount on March 31, 2021	Patent rights $ 16,382 1,123 118 $ 17,623 $ 11,786	Computer software $ 22,762 516 ( 76) $ 23,202 $ 7,031		Total
		(		$ 39,144 1,639 42 $ 40,825 $ 18,817

Amortization expenses are accrued on a straight-line basis based on the following years of service life:

e life:
Patent rights	5 to 20 years
Computer software	2 to 8 years

As of March 31, 2021, the net value of the patent for manufacturing filter materials held by the consolidated company is NT$4,345 thousand, which will be amortized within 1.25 years.

17. Other assets

Other assets
Prepaid expenses Tax credit Advance payment for goods Refundable deposit Prepaid investment amount Long-term prepaid expenses Provisional payment Others Current Non-current	March 31,2021 $ 28,020 23,547 19,602 8,499 5,985 5,577 1,616 9,096 $ 101,942 $ 81,881 20,061 $ 101,942	December 31,2020 $ 17,799 28,949 16,548 5,296 - 8,363 2,736 4,781 $ 84,472 $ 70,813 13,659 $ 84,472	March 31,2020
				$ 16,190 35,191 12,238 5,687 - 6,958 2,572 10,461 $ 89,297 $ 76,652 12,645 $ 89,297

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18. Borrowings

(I) Short-term borrowings

Short-term borrowings
Secured loans(note 33) Bank loans Unsecured loans Credit loans Borrowing rates Long-term loans Secured borrowings (note 33) The Export-Import Bank of the Republic of China (1) Taiwan Cooperative Bank (2) Taiwan Business Bank (3) Taiwan Cooperative Bank (4) Taiwan Business Bank (5) Taiwan Business Bank (6) Taiwan Business Bank (7) ALIOR Bank (8) Taiwan Business Bank (9) Taiwan Cooperative Bank (10) Subtotal Unsecured loans Export-Import Bank of the Republic of China (11) Hua Nan Bank credit loan (12) Subtotal Less: due within one year Long-term loan	March 31, 2021 $ 33,027 439,416 $ 472,443 1.00%~4.7% March 31, 2021		December 31,2020 $ - 356,408 $ 356,408 0.98%~4.385% December 31,2020 $ 14,250 31,908 10,000 18,807 60,000 40,000 40,000 44,303 18,000 60,000 337,268 22,488 40,000 62,488 399,756 ( 115,384) $ 284,372		March 31, 2020
					$ 17,024 363,795 $ 380,819 1.10%~4.8% March 31, 2020 $ 21,375 42,541 10,000 26,829 60,000 40,000 40,000 46,704 18,000 60,000 365,449 25,700 40,000 65,700 431,149 ( 50,019) $ 381,130
	(	$ 7,125 28,338 9,791 16,115 58,750 39,167 39,167 41,125 17,625 60,000 317,203 19,275 40,000 59,275 376,478 111,823) $ 264,655		(	(

(II) Long-term loans

(1) The period is from September 29, 2016 to September 28, 2021. From March

2018, every six months is one period, for a total of eight periods. The principal and interest are amortized according to the average method. As of

34 -

March 31, 2021, and December 31 and March 31, 2020, the effective annual interest rates were 1.2386%, 1.2386%, and 1.4735%.

(2) The period is from December 28, 2017 to December 28, 2022. From January 2019, each month is one period, for a total of 48 periods. The principal and interest are amortized according to the average method. As of March 31, 2021 and December 31 and March 31, 2020, the effective annual interest rates were 1.4%, 1.4% and 1.45%.
(3) The period is from December 28, 2017 to December 28, 2032. From January 2021, each month is one period, for a total of 144 periods. The principal and interest are amortized according to the average method. As of March 31, 2021 and December 31 and March 31, 2020, the effective annual interest rates were all 1.25%.
(4) The period is from June 28, 2018 to December 28, 2022. From January 2019, each month is one period, for a total of 48 periods. The principal and interest are amortized according to the average method. As of March 31, 2021 and December 31 and March 31, 2020, the effective annual interest rates were 1.4%, 1.4% and 1.45%,.
(5) The period is from September 14, 2018 to December 28, 2032. From January 2021, each month is one period, for a total of 144 periods. The principal and interest are amortized according to the average method. As of March 31, 2021 and December 31 and March 31, 2020, the effective annual interest rates were all 1.25%.
(6) The period is from October 8, 2018 to December 28, 2032. From January 2021, each month is one period, for a total of 144 periods. The principal and interest are amortized according to the average method. As of March 31, 2021 and December 31 and March 31, 2020, the effective annual interest rates were all 1.25%.
(7) The period is from November 6, 2018 to December 28, 2032. From January 2021, each month is one period, for a total of 144 periods. The principal and interest are amortized according to the average method. As of March 31, 2021 and December 31 and March 31, 2020, the effective annual interest rates were all 1.25%.
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(8) The period is November 6, 2018 to June 10, 2031. From November 2018, each month is one period, for a total of 128 periods. The interest is amortized according to the average method. As of March 31, 2021, and December 31 and March 31, 2020, the effective annual interest rates were 4.7%, 4.7% and 4.72%.
(9) The period is from December 31, 2019 to December 28, 2032. From January 2021, each month is one period, for a total of 144 periods. The principal and interest are amortized according to the average method. As of March 31, 2021 and December 31 and March 31, 2020, the effective annual interest rates were all 1.25%.
(10) The period is from March 30, 2020 to March 30, 2025. From April 2020, each month is one period, for a total of 48 periods. The principal and interest are amortized according to the average method. As of March 31, 2021 and December 31 and March 31, 2020, the effective annual interest rates were 1.4%, 1.4% and 1.45%,.
(11) The period is from February 26, 2019 to February 25, 2024. From August 2020, six months is one period, for a total of 8 periods. The principal and interest are amortized according to the average method. As of March 31, 2021, and December 31 and March 31, 2020, the effective annual interest rates were 1.2356%, 1.2356% and 1.4736%.
(12) The period is from December 31, 2019 to December 29, 2021. From January 2020, each month is one period, for a total of 24 periods. The interest is paid in each period, and the principal is repaid at one time when due. As of March 31, 2021, and December 31 and March 31, 2020, the effective annual interest rates were 1.12%, 1.12% and 1.4%.
The consolidated company has provided part of the land, houses and buildings
as collateral. Please refer to notes 14 and 33.
36 -

19. Corporate bonds payable

March 31, 2021 December 31,2020 March 31, 2020

Domestic secured convertible corporate bonds Domestic unsecured convertible corporate bonds Less: convertible bond discounts (	$ 200,000 67,600 267,600 10,743) ( $ 256,857	$ 200,000 72,900 272,900 11,818) ( $ 261,082	$ 200,000 92,900 292,900 15,557) $ 277,343

The relevant information of domestic convertible corporate bonds issued by the Company is as follows:

(I) The conditions for the issuance of the Company's second domestic secured convertible corporate bond are as follows: the Company has been approved by the competent authority to raise and issue the second domestic secured convertible corporate bond, with a total issuance amount of NT$200,000 thousand and a coupon rate of 0%. The term is five years, and the circulation period is from October 23, 2019 to October 23, 2024. It was listed on the GreTai Securities Exchange of the Republic of China on October 23, 2019. When the convertible bond is due, it shall be paid in cash at one time according to the face value of the bonds. The holders of the convertible bond may, from three months after the day following the issuance date of this bond to the maturity date, request conversion into the common shares of the Company at any time, except for the period during which the transfer of ownership shall be suspended in accordance with the relevant measures or laws and regulations. After the conversion, the rights and obligations of the common shares are the same as those of the common shares originally issued. The conversion price of the convertible corporate bond is set in accordance with the pricing model prescribed in the conversion method, with the conversion price of NT$15.7 per share. In case of any anti-dilution provisions of the Company, the subsequent conversion price shall be adjusted in accordance with the pricing model prescribed in the conversion method.

37 -

corporate bond is less than 10% of the original issuance amount, the Company may recall all the bond certificates in cash according to the face value of the bond.

The consolidated company provides a demand deposit of NT$20,000 thousand as a guarantee for the issuance of corporate bonds. The guarantee is exempted after the agreement with Taiwan Business Bank on July 7, 2020. Please refer to note 33.

(II) The issuance conditions of the Company's third domestic unsecured convertible corporate bond are as follows: the Company has been approved by the competent authority to raise and issue the third domestic unsecured convertible corporate bond, with a total issuance amount of NT$100,000 thousand and a coupon rate of 0%. The term is three years, and the circulation period is from October 24, 2019 to October 24, 2022. It was listed on the GreTai Securities Exchange of the Republic of China on October 24, 2019. When the convertible bond is due, it shall be paid in cash at one time according to the face value of the bonds. The holders of the convertible bond may, from three months after the day following the issuance date of this bond to the maturity date, request conversion into the common shares of the Company at any time, except for the period during which the transfer of ownership shall be suspended in accordance with the relevant measures or laws and regulations. After the conversion, the rights and obligations of the common shares are the same as those of the common shares originally issued. The conversion price of this convertible corporate bond is set in accordance with the pricing model prescribed in the conversion method, with the conversion price of NT$14.3 per share. In case of any anti-dilution provisions of the Company, the subsequent conversion price shall be adjusted in accordance with the pricing model prescribed in the conversion method.

From three months after the day following the issuance date of this bond to 40 days before the maturity date, if the closing price of the common shares of the Company exceeds 30% (inclusive) of the conversion price at that time for 30 consecutive business days, or if the outstanding balance of the convertible corporate bond is less than 10% of the original issuance amount, the Company may recall all the bond certificates in cash according to the face value of the bond.

Due to the Company's stock ex-dividend operation in 2020, the conversion prices of the second and third secured convertible bonds have been adjusted to N

38 -

T$15.40 and NT$14.00 from the ex-dividend date July 27, 2020, in accordance with the issuance regulations.

The above-mentioned convertible corporate bonds include the conversion right of the main contractual debt instrument, the sale/redemption derivative instrument and the equity component, which are expressed under the equity by additional capital from retained earnings - conversion rights. The effective interest rate originally recognized for the liability component is 1.26% ~ 1.89%.

The changes in the main contractual debt instrument are as follows:

The changes in the main contractual debt instrument are	as follows:	as follows:
January 1 to March 31,2021 Component of liabilities at the beginning of the period $ 261,082 Interest calculated at an effective interest rate in the current period 915 Conversion of corporate bond payable into common shares ( 5,140) Component of liabilities at the end of the period $ 256,857 The changes in the put/call derivatives are as follows: January 1 to March 31,2021 Beginning balance $ 560 Gain (loss) from changes in fair value ( 100) Ending balance $ 460	January 1 to March 31,2020
	$ 283,058 1,039 ( 6,754) $ 277,343 January 1 to March 31,2020
		$ - 10 $ 10

The change of conversion right (under additional capital from retained earnings) of the equity component is as follows:

Beginning balance Conversion of corporate bond payable into common shares Ending balance	January 1 to March 31,2021 $ 11,661 ( 213) $ 11,448	January 1 to March 31,2020	January 1 to March 31,2020
	(	(	$ 12,753 286) $ 12,467

39 -

As of March 31, 2021, the total face value of the third domestic unsecured convertible corporate bond that the holders have exercised the conversion right is NT$32,400 thousand. 2,299,143 shares of common stock of the Company were converted into, and NT$8,182 thousand of the capital reserve was recognized.

20. Notes payable and accounts payable

March 31, 2021 December 31,2020 March 31, 2020

21.	Notes payable Arising from business Accounts payable Arising from business Accounts payable-related parties Arising from business Other liabilities Current Other payables Estimated expenses payable Salary payable Bonus payable Leave payment payable Remuneration payable to employees, directors and supervisors Payables on equipment Share capital payable Other expenses payable Other liabilities Contractual liabilities Deferred government subsidy income Collection on behalf of others Others Non-current Other liabilities Deposits received	$ - $ 428,430 $ 1,944 March 31,2021	$ - $ 428,430 $ 1,944 March 31,2021	$ - $ 392,391 $ 26,942 December 31,2020 $ 27,655 29,986 37,081 6,737 6,673 4,018 1,996 40,405 $ 154,551 $ 22,963 - 724 9,678 $ 33,365 $ 240	$ 21 $ 309,062 $ 48,707 March 31,2020	$ 21 $ 309,062 $ 48,707 March 31,2020

			$ 25,583 22,541 9,682 8,995 7,344 4,410 2,004 31,777 $ 112,336 $ 34,523 - 747 10,944 $ 46,214 $ 198			$ 19,435 20,861 4,333 8,455 4,666 11,713 - 29,897 $ 99,360 $ 33,302 242 678 9,512 $ 43,734 $ 157

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	Others		3,510		875			975
		$	3,708 $	1,115			$ 1,132
22.	Provision for liabilities-current
		March	31,2021 December 31,2020			March 31,		2020
	Warranty	$	999 $	1,046		$	1,415
			January 1 to March		January 1 to March
			31,2021			31,	2020
	Beginning balance		$ 1,046			$	1,665
	Reversal in the period		( 47)		(		250)
	Ending balance		$ 999			$	1,415

The provision for warranty liabilities is the present value of the best estimate of

the outflow of future economic benefits caused by the warranty obligation from the

management of the consolidated company in accordance with the contract for the sale of goods. This estimate is based on historical warranty experience, taking into account the adjustment for new raw materials, process changes or other factors affecting product quality.

23. Post-retirement benefit plans

(I) Defined contribution plans

The pension system of the “Labor Pension Act” is applicable to the Company of the consolidated company, and is a defined contribution plan managed by the government. The pension is allocated to the individual account of the Labor Insurance Bureau at 6% of the employee’s monthly salary.

The employees of the subsidiaries of the consolidated company in China and Vietnam are members of the local government operated retirement benefit plan. The subsidiary is required to allocate a specific proportion of the cost of salaries to the retirement benefit plan to fund the plan. The obligation of the consolidated company to the retirement benefit plan operated by the government is only the allocation of a specific amount.

(II) Defined benefit plan

The pension system implemented by the Company, among the consolidated companies, based on the “Labor Standards Act,” is a defined benefit plan managed by the Government. The relevant pension costs of the defined benefit plan

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recognized from January 1 to March 31, 2021 and 2020 are calculated based on the pension cost rate determined by actuarial calculation on December 31, 2020 and 2019, and the amounts are NT$202 thousand and NT$282 thousand.

24. Equity

(I) Share capital
Common stock

Common stock
Authorized number of shares (1000 shares) Authorized share capital Number of issued shares fully paid for (1000 shares) Capital of issued shares	March 31,2021		December 31,2020 150,000 $ 1,500,000 89,386 $ 893,857	March 31,2020
		150,000 $ 1,500,000 89,386 $ 893,857			150,000 $ 1,500,000 88,679 $ 886,794

The par value of each issued common share is NT$10. Each share has one voting right and the right to receive dividends.

2. Certificate of right to convert bonds into shares

March 31, 2021 December 31,2020 March 31, 2020

Number of shares converted but not yet registered for change (1000 shares) 1,593 1,214 497 Share capital converted but not yet registered for change $ 15,929 $ 12,143 $ 4,965

(II) Additional capital from retained earnings

March 31, 2021 December 31,2020 March 31, 2020

Can be used to cover

losses, issue cash or supplement share capital (1) Premium from share issuance $ 22,142 $ 22,142 $ 48,895

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Premium from convertible bond conversion can only be used to cover losses(2) Changes in net equity of subsidiaries and joint ventures recognized under the equity method The conversion right shall be paid off at maturity and cannot be used for any other purpose. Conversion right	9,997 29 6,307 11,448 $ 49,923	8,431 29 6,307 11,661 $ 48,570	2,585 29 6,307 12,467
			$ 70,283

Capital reserve - Premiums from share issuance and convertible bond conversion may be used to make up for losses, or may be used to distribute cash dividend or be allocated as the capital when the Company has no loss, provided that the allocation to capital is limited to a certain ratio of paid-in capital each year.
For the investment under the equity method, the capital reserve due to the change of the Company's equity in subsidiaries and payoff of conversion rights when due shall not be used for any purpose except for making up losses.

(III) Retained earnings and dividend policy

According to the provisions of the earnings distribution policy of the Articles of Association of the Company, if there are any earnings in the final annual accounts, tax shall be paid according to law. After making up the accumulated loss, 10% shall be set aside as the legal reserve, and the rest shall be set aside or reversed as the special additional capital from retained earnings according to the provisions of laws and regulations; if there is any remaining balance and the accumulated undistributed earnings, the board of directors shall prepare an earnings distribution proposal and submit it to the shareholders' meeting for resolution on dividend distribution. Please refer to note 26(7) on employees’ remuneration and directors’ and supervisors’ remuneration for the distribution

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policy of employees’ remuneration and directors’ and supervisors’ remuneration as stipulated in the Articles of Association.

The Company's products are diversified, its profits are stable, and its financial structure is sound. The dividend policy is based on the consideration of significant expansion plans and capital expenditures in the next few years. The board of directors shall propose the actual distribution to the shareholders' meeting according to the Company's operating conditions. The distribution of ' dividends to shareholders shall be at least 50% of the distributable earnings of the current year after deducting the legal reserve and special reserve. The cash dividend shall account for more than 20% of the total amount of dividends, but if the cash dividend per share is less than NT$0.5 (inclusive), it may be distributed in the form of a stock dividend instead.

The legal reserve shall be allocated until its balance reaches the total paid-in share capital of the Company. The legal reserve may be used to make up for losses. When the Company has no loss, the part of the legal reserve exceeding 25% of the total paid-in share capital may be distributed in cash in addition to being appropriated as share capital.

The Company’s board meeting held on March 26, 2021 and the general shareholders' meeting held on June 16, 2020 proposed and passed the following earnings distribution plans for 2020 and 2019:

Legal reserve Special reserve Cash dividend Cash dividend per share (NT$)		2020 $ 6,666 $ 15,554 $ 45,321 $ 0.5		2019
				$ 4,418 $ 40,395 $ - $ -

The earnings distribution plan for 2020 is pending the resolution of the general shareholders’ meeting to be held on June 18, 2021.

25. Revenue

Revenue
Revenue from goods sold	January 1 to March 31,2021 $ 831,765	January 1 to March 31,2020
			$ 613,870

Please refer to notes 10 and 21 for the contract balance.

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26. Net profit and other comprehensive income

(I) Interest income

nterest income
Bank deposits and wealth management products Others Total	January 1 to March 31,2021 $ 233 34 $ 267	January 1 to March 31,2020
			$ 615 34 $ 649

(II) Other income

(II) Other income
Rental income Management and technical service fee income Government subsidy income Others (III) Other benefits and (loss) Loss of financial assets/liabilities measured at fair value through profit and loss Loss from disposal of property, plant and equipment	January 1 to March 31,2021 $ 32 330 6,223 2,473 $ 9,058 January 1 to March 31,2021 ( $ 2,146 ) - ($ 2,146)	January 1 to March 31,2020
		$ 140 2,062 2,289 4,244 $ 8,735 January 1 to March 31,2020
	( (	( ( (	$ 3,445 ) 28) $ 3,473)

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(IV) Financial cost

Financial cost
Interest on bank loans Interest on lease liabilities Interest on convertible bonds (note 19) Depreciation and amortization Property, plant and equipment Intangible assets Long-term prepaid expenses Right-of-use assets Total Depreciation expenses summary by function Operating costs Operating expenses Amortized expenses summary by function Operating costs Operating expenses Employee benefits Short-term employee benefits Salary expense Labor and health insurance expenses Post-retirement benefits (note 23) Defined contribution plans	January 1 to March 31,2021 $ 1,446 129 915 $ 2,490 January 1 to March 31,2021 $ 20,459 1,639 431 1,623 $ 24,152 $ 16,418 5,664 $ 22,082 January 1 to March 31,2021 $ 580 1,490 $ 2,070 January 1 to March 31,2021 $ 87,422 10,665 98,087 5,784	January 1 to March 31,2020
		$ 3,145 45 1,039 $ 4,229 January 1 to March 31,2020
		$ 20,732 1,561 874 2,004 $ 25,171 $ 16,524 6,212 $ 22,736 January 1 to March 31,2020
		$ 472 1,963 $ 2,435 January 1 to March 31,2020
			$ 75,456 7,714 83,170 4,279

(V) Depreciation and amortization

(VI) Employee benefits

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Defined benefit plan Other employee benefits Total employee benefits Summary by function Operating costs Operating expenses	202 5,986 4,869 $ 108,942 $ 35,085 73,857 $ 108,942	282
		4,561
		4,582
		$ 92,313
		$ 30,291 62,022
		$ 92,313

(VII) Employees’ remuneration and directors’ and supervisors’ remuneration

In accordance with the Articles of Association, based on the net profit before

tax of the current year minus the benefits before the distribution of the employee's remuneration and the director's and supervisor's remuneration, the Company allocates 1% to 10% as the employee's remuneration and no more than 3% as the director's and supervisor's remuneration after making up the losses. From January 1 to March 31, 2020, due to the Company's operating loss, the

employees’ remuneration and the director's and supervisor's remuneration are not

estimated. From January 1 to March 31, 2021, the estimated employees’ remuneration and the director's and supervisor's remuneration are as follows:

Estimated proportion

Estimated proportion
Employees’ remuneration Director's and supervisor's remuneration Amount Employees’ remuneration Director's and supervisor's remuneration	January 1 to March 31,2021
	6% 2% January 1 to March 31,2021
		$ 503 $ 168

If there is any change in the amount of the annual consolidated financial statements after the date of issuance, it shall be handled according to the change in accounting estimates and recorded in the next year.

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The board meetings of the Company were held on March 26, 2021 and March 27, 2020, and the following resolutions on employees’ remuneration and directors' and supervisors' remuneration for 2020 and 2019 were passed:

Employees’ remuneration Director's and supervisor's remuneration	Cash
	2020 $ 5,005 1,668	2019
		$ 3,499 1,166

There is no difference between the actual distribution amount of employees’ remuneration and directors' and supervisors' remuneration in 2020 and 2019 and the amount recognized in the consolidated financial statements of 2020 and 2019.

For information on the employees’ remuneration and directors' and supervisors' remuneration resolved by the board of directors’ meetings, please visit MOPS of the Taiwan Stock Exchange.

27. Income tax

(I) Income tax recognized in income

The major components of income tax expenses (gains) are as follows:

Income tax of the current period Generated in the current period Levy on undistributed earnings Adjustment for previous years Deferred income tax Generated in the current period Adjustment for previous years Income tax expenses (gains) recognized in income	January 1 to March 31,2021 $ 9,272 44 300 9,616 ( 4,637 ) - ( 4,637) $ 4,979	January 1 to March 31,2020	January 1 to March 31,2020
	( (	( ( ( ( ( (	$ 455 - 1,507) 1,052) 1,606 ) 2,565) 4,171) $ 5,223)

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(II) Income tax recognized in other comprehensive income

Deferred income tax Generated in the current period - Conversion of foreign operating organizations	January 1 to March 31,2021 $ 1,511	January 1 to March 31,2020	January 1 to March 31,2020
		(	$ 3,623)

(III) Verification of income tax

The Company's declared cases up to 2018 have been approved by the tax collection authority.

28. Earnings (loss) per share

Earnings (loss) per share
Basic earnings (loss) per share Diluted earnings (loss) per share	January 1 to March 31,2021 $ 0.07 $ 0.06	Unit: NT$ per share January 1 to March 31,2020 ($ 0.13) ($ 0.13)
		( (

The earnings (loss) used for calculating earnings (loss) per share and weighted average number of common shares are as follows:

Net profit (loss) of the current period

Net profit (loss) of the current period
Net profit (loss) attributable to owners of the Company Net profit (loss) used to calculate basic earnings (loss) per share After-tax interest of convertible bonds After-tax evaluation loss of convertible bond put/call rights Net profit (loss) used to calculate diluted earnings (loss) per share	January 1 to March 31,2021 $ 6,228 $ 6,228 732 80 $ 7,040	January 1 to March 31,2020
			($ 11,371) ( $ 11,371 ) - - ($ 11,371)

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Number of shares


Number of shares Weighted average number of common shares used to calculate basic earnings (loss) per share Effect of potential common shares with dilution effect: Convertible bonds Employees’ remuneration Weighted average number of common shares used to calculate diluted earnings (loss) per share	January 1 to March 31,2021 90,703 18,106 325 109,134	unit: 1000 shares January 1 to March 31,2020
			88,838 - - 88,838

Suppose the consolidated company has the option to pay employee remuneration in shares or cash. In that case, the calculation of diluted earnings per share is based on the assumption that the employee remuneration will be issued in shares. The weighted average number of outstanding shares will be included in the calculation of diluted earnings per share when the potential common shares are diluted. When calculating the diluted earnings per share before the issuance of employee remuneration shares in the next annual resolution, the dilution effect of such potential common shares shall also be considered.

If the consolidated company’s convertible corporate bonds outstanding are converted from January 1 to March 31, 2020, they are not included in the calculation of diluted loss per share due to their anti-dilution effect.

29. Government subsidy

In May 2020, due to the implementation of the R&D and innovation project entrusted by the Ministry of Economic Affairs, the Company obtained a subsidy of NT$5,900 thousand according to the grant approval letter of the Taiwan Small and Medium Enterprises Counseling Foundation referenced Ji No. 1070001330B. This amount has been listed under deferred government subsidy income and recognized according to the actual development level of the plan. The entire amount was recognized as subsidy income in 2020.

30. Capital risk management

The purpose of the Company's capital management policy is to protect the Company's ability to continue as a going concern in order to provide returns to

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shareholders and benefits to other equity holders as much as possible. To ensure that the above objectives are achieved, the consolidated company must maintain a large amount of capital to meet the needs of the expansion and upgrading of plants and equipment. Therefore, the capital management of the consolidated company is to ensure that necessary financial resources and operation plans are available to meet the needs of working capital, capital expenditure, research and development costs, debt repayment and dividend expenditure in the next 12 months. The consolidated company is not subject to other external capital requirements.

31. Financial instruments

(I) Fair value information - financial instruments not measured at fair value March 31, 2021

March 31, 2021
Financial liability Financial liabilities measured at cost after amortization - Second domestic secured convertible corporate bond - Third domestic unsecured convertible corporate bond December 31, 2020	Carrying amount		Fair value
		Level 1	Level 2	Level 3	Total
	$ 191,230 65,627 $ 256,857	$ - - $ -	$ 231,138 76,394 $ 307,532	$ - - $ -	$ 231,138 76,394 $ 307,532

December 31, 2020
Financial liability Financial liabilities measured at cost after amortization - Second domestic secured convertible corporate bond - Third domestic unsecured convertible corporate bond	Carrying amount		Fair value
		Level 1	Level 2	Level 3	Total
	$ 190,638 70,444 $ 261,082	$ - - $ -	$ 223,629 85,243 $ 308,872	$ - - $ -	$ 223,629 85,243 $ 308,872

March 31, 2020

March 31, 2020
Financial liability Financial liabilities measured at cost after amortization - Second domestic secured convertible corporate bond - Third domestic unsecured convertible corporate bond	Carrying amount $ 188,840 88,503 $ 277,343		Fair value
		Level 1	Level 2	Level 3	Total
		$ - - $ -	$ 193,944 85,404 $ 279,348	$ - - $ -	$ 193,944 85,404 $ 279,348

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In addition to the above, the management of the consolidated company believes that the book value of financial assets and financial liabilities not measured at fair value approaches their fair value or their fair value cannot be reliably measured.

(II) Fair value information - financial instruments measured at fair value on a recurring basis

Fair value hierarchy

March 31, 2021

March 31, 2021
Financial assets measured at fair value through the income statement Wealth management products Derivatives Financial liabilities measured at fair value through the income statement Derivatives December 31, 2020 Financial assets measured at fair value through the income statement Wealth management products Derivatives Financial liabilities measured at fair value through the income statement Derivatives March 31, 2020 Financial assets measured at fair value through the income statement Wealth management products Derivatives Financial assets measured at fair value through other comprehensive income Equity instrument investment - Domestic unlisted (non-OTC) shares Financial liabilities measured at fair value through the income statement Derivatives	Level 1 $ - - $ - $ - Level 1 $ - - $ - $ - Level 1 $ - - $ - $ - $ -	Level 2 $ 63,666 - $ 63,666 $ 5,754 Level 2 $ 59,518 - $ 59,518 $ 4,102 Level 2 $ 46,348 - $ 46,348 $ - $ 5,304	Level 3 $ - 460 $ 460 $ - Level3 $ - 560 $ 560 $ - Level3 $ - 10 $ 10 $ 3,586 $ -	Total
				$ 63,666 460 $ 64,126 $ 5,754 Total
				$ 59,518 560 $ 60,078 $ 4,102 Total
				$ 46,348 10 $ 46,358 $ 3,586 $ 5,304

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There was no transfer between level 1 and level 2 fair value measurements from January 1 to March 31 in 2021 and 2020.

Adjustment of financial instruments measured at level 3 fair value

January 1 to March 31, 2021

January 1 to March 31, 2021
Financial asset Beginning balance Recognized in income Ending balance	Measured at fair value through the income statement Derivatives $ 560 ( 100) $ 460	Financial assets measured at fair value through other comprehensive income
		Equity instrument
	(		$ - - $ -

January 1 to March 31, 2020

January 1 to March 31, 2020
Financial asset Beginning balance Recognized in income Ending balance	Measured at fair value through the income statement Derivatives $ - 10 $ 10	Financial assets measured at fair value through other comprehensive income
		Equity instrument
			$ 3,586 - $ 3,586

The evaluation skills and inputs for Level 2 fair value measurement
Types of financial instruments Evaluation technology and input value
Wealth management Cash flow discount method: discount according products to the discount rate reflecting the final return rate of the financial product issuer.
Derivatives - forward Discounted cash flow method: the future cash foreign exchange flow is estimated according to the contracts observable forward exchange rate at the end of the period, the exchange rate and interest rate stipulated in the contract, and discounted separately at the discount rate reflecting the credit risk of each trading party.
Derivatives - exchange Cash flow discount method: estimate the rate and interest rate future cash flow according to the observable swap contracts forward exchange rate and interest rate at the end of the period, as well as the exchange rate and interest rate stipulated in the contract, and discount at the discount rate that can reflect the credit risk of each counterparty.
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The evaluation skills and inputs for Level 3 fair value measurement
(1) Derivative instrument-Redemption, for which the fair value is measured under the Binomial Tree Model and the important unobservable inputs as adopted serve as the stock price volatility. When the stock price volatility increases, the fair value of such derivative instrument increases relatively.
(2) The non-TWSE/TPEx-listed stocks are measured under the worth method. The fair value thereof is determined based on the most recent net worth of a comparable investee and financial position & overview of the business of any observable company. When the liquidity discount decreases, the fair value of such investment increases relatively.

(III) Types of financial instruments

Financial asset Measured at fair value through the income statement Financial assets measured at cost after amortization (note 1) Financial assets - equity instrument investment measured at fair value through other comprehensive income Financial liability Measured at fair value through the income statement Measured at cost after amortization (note 2)	March 31,2021	December 31,2020 $ 60,078 1,101,501 - 4,102 1,591,130	March 31,2020
	$ 64,126 1,076,072 - 5,754 1,648,488		$ 46,358 929,536 3,586 5,304 1,546,519

Note 1: Balance refers to financial assets measured at cost after amortization, including cash and cash equivalents, financial assets measured at cost after amortization, notes receivable, accounts receivable (including those of

54 -

related parties), other receivables (including those of related parties, excluding tax refunds receivable) and refundable deposits.

Note 2: The balance includes short-term loans, notes payable, accounts payable (including those of related parties), other payables (including those of related parties), corporate bonds payable and long-term loans (including the part due within one year) and other financial liabilities measured at cost after amortization.
(IV) Purpose and policy of financial risk management

The main financial instruments of the consolidated company include equity investment, accounts receivable, accounts payable, corporate bonds payable, loans and lease liabilities. The financial management department of the consolidated company provides services for all business units, coordinates the entry into domestic and international financial markets, and supervises and manages the financial risks related to the operation of the consolidated company by analyzing the internal risk report of the exposure according to the risk level and breadth. These risks include market risk (including exchange rate risk and interest rate risk), credit risk and liquidity risk.

Market risk

The main financial risk caused by the operating activities of the consolidated company to the consolidated company is the foreign currency exchange rate change risk (refer to (1) below) and the interest rate change risk (refer to (2) below). The consolidated company is engaged in various derivative financial instruments to manage the foreign currency exchange rate and interest rate risk, including:

A. Using foreign exchange forward contracts to avoid the exchange rate risk caused by foreign currency borrowing;
B. Using interest rate swap to reduce the risk of an interest rate rise.

There is no change in the exposure of the consolidated company to the market risk of financial instruments and the management and measurement of such exposure.

(1) Exchange rate risk
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Part of the cash inflow and outflow of the consolidated company is in foreign currency, so it has the effect of natural hedging; the exchange rate risk management of the consolidated company is for hedging, not for profit.

Please refer to note 35 for the book value of monetary assets and monetary liabilities (including monetary items written off under non-functional currency in the consolidated financial statements) of the consolidated company denominated in non-functional currency on the balance sheet date.

Sensitivity analysis

The consolidated company is mainly affected by the exchange rate fluctuations of the US dollar and RMB.

The table below details the sensitivity analysis of the consolidated company when the exchange rate of the New Taiwan dollar (functional currency) changes 1% against relevant foreign currencies. The sensitivity analysis only includes the monetary items that are in circulation, and the conversion at the end of the period is adjusted by 1% of the exchange rate change. The positive number in the Table below refers to the amount that will reduce the pre-tax net loss/increase the pre-tax net profit when the New Taiwan dollar depreciates by 1% relative to each related foreign currency; when the New Taiwan dollar appreciates by 1% relative to each related foreign currency, its impact on the pre-tax net profit (loss) will be a negative number of the same amount.

Profit and loss	Impact of USD/RMB/Euro(note)	Impact of USD/RMB/Euro(note)
	January 1 to March 31,2021 $ 3,560	January 1 to March 31,2020
		$ 1,993

Note: It mainly comes from the consolidated company’s cash and

cash equivalents, accounts receivable, other receivables, short-term loans, accounts payable and other payables

56 -

denominated in foreign currencies that are still outstanding on the balance sheet date without cash flow hedging.

The management believes that the sensitivity analysis cannot represent the inherent risk of the exchange rate, because the foreign currency exposure on the balance sheet date cannot reflect the medium-term exposure. Therefore, the management will still conduct exchange rate risk management according to the consolidated company's policies.

(2) Interest rate risk

Interest rate exposure is caused by the fact that entities in the consolidated company borrow funds at fixed and floating rates and hold current and foreign currency bank deposits. The management of the consolidated company shall regularly monitor the interest rate risk. If required, necessary measures shall be taken for significant interest rate risks to control risks arising from the change of market interest rate.

The carrying amounts of the financial assets and financial liabilities of the consolidated company subject to interest rate exposure on the balance sheet date are as follows:

March 31, 2021 December 31,2020 March 31, 2020

Interest rate
risks with fair
value
- Financial
assets	$	2,600	$	4,316	$	4,256
- Financial
liabilities		647,749		588,436		576,519
Interest rate
risks with cash
flow
- Financial
assets		350,808		413,299		332,062
- Financial
liabilities		461,228		463,164		519,169

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Sensitivity analysis

The following sensitivity analysis is based on the interest rate exposure of non-derivative instruments on the balance sheet date. For floating rate assets and liabilities, it is assumed that the amount in assets and liabilities outstanding on the balance sheet date are also outstanding during the reporting period.

If the interest rate increases/decreases by 0.1%, and all other variables remain unchanged, the pre-tax net loss of the consolidated company from January 1 to March 31, 2021 will decrease/increase by NT$28 thousand; the pre-tax net profit from January 1 to March 31, 2020 will increase/decrease by NT$47 thousand, mainly due to the interest rate risk of floating interest assets and liabilities of the consolidated company.

2. Credit risk

Credit risk refers to the risk of financial loss caused by the default of contractual obligations of the counterparty. As of the balance sheet date, the maximum credit risk exposures (excluding collateral or other credit enhancement tools and the maximum amount of irrevocable exposure) of the consolidated company that may cause financial losses due to the failure of the counterparty and the financial guarantee provided by the consolidated company mainly come from:

(1) Book value of financial assets recognized in the consolidated balance sheet.
(2) The amount in contingent liabilities arising from the financial guarantee provided by the consolidated company.

Operation related credit risk and financial risk are managed separately.

Operation related credit risk

In order to maintain the quality of accounts receivable, the consolidated company has established operations-related procedures for credit risk management.

The risk assessment of an individual customer is to consider many factors that may affect the customer's ability to pay, including the customer's

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financial status, the credit rating by credit rating agencies, the consolidated company’s internal credit rating, the historical transaction records, and current economic conditions. The consolidated company will also use certain credit enhancement tools, such as advance payment, at the appropriate time to reduce the credit risk of specific customers.

Financial credit risk

The credit risk of bank deposits, fixed income investments and other financial instruments are measured and monitored by the financial department of the consolidated company. Since the trading partners and performing parties of the consolidated company are all banks and financial institutions with good credit, company organizations and government agencies with no significant performance concern, there is no significant credit risk.

3. Liquidity risk

The objective of the consolidated company on the management of the liquidity risk is to maintain the cash and cash equivalents, high liquidity securities, and sufficient bank credit facilities required for operation to ensure that the consolidated company has sufficient financial flexibility.

The consolidated company shall regularly review the inventory level, the turnover rate of various types of inventory, credit conditions of customers and turnover rate of accounts receivable to control the size of working capital. The cash and cash equivalent level of the group remains moderately loose, and funds are raised in advance according to capital demand. A low debt ratio and financial flexibility are maintained to effectively control the liquidity risk.

(1) Statement of liquidity and interest rate risk of non-derivative financial liabilities

The maturity analysis of the remaining contracts of non-derivative financial liabilities is based on the undiscounted cash flow (including principal and estimated interest) of financial liabilities on the earliest possible repayment date of the consolidated company. Therefore, the series of bank loans that the consolidated company may be required to

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repay immediately shall not take into account the probability of the bank executing the right immediately in the earliest period in the table below; the maturity analysis of other non-derivative financial liabilities shall be prepared according to the agreed repayment date.

March 31, 2021

Less than 1 month Non-derivative financial liabilities No-interest bearing liabilities $ 299,079 Lease liabilities 233 Floating rate liabilities - Fixed rate liabilities 351,339 $ 650,651 December 31, 2020		Less than 1 month		1 ~ 3 months		3 months ~ 1 year		1 ~ 5years		More than 5 years		Total
				$ 189,669 487 63,365 - $ 253,521		$ 61,279 1,633 196,574 30,635 $ 290,121		$ 294 1,224 183,654 267,600 $ 452,772		$ - - 99,947 - $ 99,947		$ 550,321 3,577 543,540 649,574 $ 1,747,012

Non-derivative financial liabilities No-interest bearing liabilities Lease liabilities Floating rate liabilities Fixed rate liabilities		Less than 1 month		1 ~ 3 months		3 months ~ 1 year		1 ~ 5years		More than 5 years		Total
		$ 333,987 660 - 120,067 $ 454,714		$ 180,843 628 23,055 120,186 $ 324,712		$ 71,462 1,837 121,955 53,191 $ 248,445		$ - 1,523 226,828 272,900 $ 501,251		$ - - 105,858 - $ 105,858		$ 586,292 4,648 477,696 566,344 $ 1,634,980

March 31, 2020

Non-derivative financial liabilities No-interest bearing liabilities Lease liabilities Floating rate liabilities Fixed rate liabilities		Less than 1 month		1 ~ 3 months		3 months ~ 1 year		1 ~ 5years		More than 5 years		Total
		$ 264,720 429 - 275,409 $ 540,558		$ 158,037 818 3,488 - $ 162,343		$ 11,977 3,321 143,043 18,750 $ 177,091		$ 27,308 2,035 294,583 292,900 $ 616,826		$ - - 110,239 - $ 110,239		$ 462,042 6,603 551,353 587,059 $ 1,607,057

(2) Table of liquidity and interest rate risk of derivative financial liabilities

On the analysis of the liquidity of derivative financial instruments, for the derivative instruments adopting net settlement, it is prepared on the basis of the net cash inflow and outflow of undiscounted contracts.

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March 31, 2021

On demand or less than 1 3 months ～ More than 5 month 1 ~ 3 months 1 year 1 ~ 5 years years Net settlement Foreign exchange forward $ - ( $ 103 ) $ - $ - $ - Exchange rate swap ( $ 46 ) ( $ 93 ) ( $ 417 ) ( $ 5,095 ) $ - December 31, 2020 On demand or less than 1 3 months ～ More than 5 month 1 ~ 3 months 1 year 1 ~ 5 years years Net settlement Exchange rate swap ( $ 33 ) ( $ 66 ) ( $ 295 ) ( $ 3,708 ) $ - March 31, 2020 On demand or less than 1 3 months ～ More than 5 month 1 ~ 3 months 1 year 1 ~ 5 years years Net settlement Exchange rate swap ( $ 40 ) ( $ 79 ) ( $ 356 ) ( $ 4,829 ) $ - Credit facilities March 31, 2021 December 31,2020 March 31,, 2021 December 31,2020 March 31, 2021 December 31,2020 March 31,,2020 March 31,2020 March 31,, 2020 Short-term bank credit facilities - Amount used $ 760,589 $ 628,271 $ 501,668 - Amount unused 277,582 368,810 523,870 $ 1,038,171 $ 997,081 $ 1,025,538

December 31, 2020

March 31, 2020

(3) Credit facilities

March 31, 2021 December 31,2020 March 31,, 2021 December 31,2020 March 31, 2021 December 31,2020 March 31,,2020 March 31,2020 March 31,, 2020

32. Related party transactions

Transactions, account balances, gains and expenses between the Company and its subsidiaries (which are related parties of the Company) are eliminated in full at the time of consolidation, so they are not disclosed in this note. The transactions between the consolidated company and other related parties are as follows:

61 -

(I) Name and relationship of related parties

Relationship with the consolidated Name of related party company Adhesive Technologies, Inc. Corporate director of the Company (Adhesive Technologies) Wuxi More Tex Technology Co., Ltd. Joint venture (Wuxi More Tex) Tex Year Industrial Adhesives Pvt. Joint venture Ltd. (Tex Year Industrial Adhesives) Wood Glue Industrial Co., Ltd. The chairman of the company is a director of this company. Huihong Petrochemical Co., Ltd The chairman of this company is the spouse of a director of the Company JPT Cooperation (JPT) The chairman of this company was a director of the Company (but a non-related party since July 1, 2020)

(II) Operating income

Account items Sales revenue	Category/name of relatedparty Corporate director of the Company Adhesive Technologies Joint venture Tex Year Industrial Adhesives Wuxi More Tex Technology Co., Ltd. The chairman of this company is the spouse of a director of the Company	January 1 to March 31,2021 $ 15,528 4,354 - 6 $ 19,888	January 1 to March 31,2020	January 1 to March 31,2020
				$ 17,682 4,381 740 - $ 22,803

The selling price of related parties is equal to that of general customers. In addition to the individual credit conditions, the remaining selling price is increased by a certain proportion according to the product type and cost.

(III) Purchase

Purchase
Category/name of related party Joint venture Wuxi More Tex Technology Co., Ltd. The chairman of the company is a director of this company.	January 1 to March 31,2021 $ - 74 $ 74	January 1 to March 31,2020
			$ 43,676 4 $ 43,680

62 -

The purchase price of related parties is equal to that of general manufacturers, and a certain proportion increases the remaining purchase price.

(IV) Receivables from related parties

Account items	Category/name of related party Corporate director of the Company Adhesive Technologies Joint venture Tex Year Industrial Adhesives Wuxi More Tex Technology Co., Ltd. The chairman of this company is the spouse of a director of the Company	March 31,2021 $ 24,551 8,110 - 6 $ 32,667	March 31,2021 $ 24,551 8,110 - 6 $ 32,667	December 31,2020 $ 29,838 7,843 - - $ 37,681	March 31,2020	March 31,2020
Accounts receivable - Related parties			$ 24,551 8,110 - 6 $ 32,667			$ 17,585 6,602 304 - $ 24,491

The consolidated company sells goods to the corporate director of the Company, and the term of collection is 75-day T/T remittance upon arrival of goods; the consolidated company sells goods to the joint venture partner, and the term of collection is 90-day T/T remittance upon arrival of goods.

Guarantees for the outstanding receivables from related parties are not collected.

(V) Payables to related parties

Account items Accounts payable - Related parties	Category/name of related party Joint venture Wuxi More Tex Technology Co., Ltd.	March 31,2021 $ 1,944	December 31,2020 $ 26,942	March 31,2020	March 31,2020
					$ 48,707

The consolidated company purchases goods from the joint venture partner on the term of 90-day T/T remittance upon arrival of the goods.

Guarantees for the balance of outstanding payables to related parties are not collected.

63 -

(VI) Others

The balance of other receivables from related parties on the balance sheet

date is as follows:

date is as follows:
Category/name of related party Joint venture Wuxi More Tex Technology Co., Ltd. Tex Year Industrial Adhesives Corporate director of the Company	March 31, 2021 $ 32,285 909 33,194 - $ 33,194	December 31,2020 $ 703 730 1,443 - $ 1,443	March 31, 2020
				$ 6,469 249 6,718 28 $ 6,746

Other receivables refer to the funds and advances for earnings distributed and technical management services provided by the consolidated company.

The balance of other payables to related parties on the balance sheet date is

as follows:

Category/name of related party March 31, 2021 December 31,2020 March 31, 2020 The chairman of the company is a director of this company. JPT Cooperation $ - $ - $ 58

Income from management and technical service fees (listed under other

income):

income):
Category/name of related party Joint venture Wuxi More Tex Technology Co., Ltd. Tex Year Industrial Adhesives Operating expenses: Category/name of related party Joint venture Wuxi More Tex Technology Co., Ltd.	January 1 to March 31, 2021 $ - 330 $ 330 January 1 to March 31, 2021 $ 151	January 1 to March 31, 2020
		$ 1,322 224 $ 1,546 January 1 to March 31, 2020
			$ 143

64 -

(VII) Rewards to key management

Rewards to key management
Short-term employee benefits Post-employment benefits	January 1 to March 31,2021 $ 5,440 353 $ 5,793	January 1 to March 31,2020
			$ 3,859 347 $ 4,206

The Compensation Committee determines the compensation of directors and other key management in accordance with individual performance and market trends.

33. Pledged assets

The following assets of the consolidated company are provided as collateral for bank loans, letters of credit and convertible corporate bonds:

Land Buildings and construction - net Inventory Demand deposits (financial assets measured at cost after amortization – non-current)	March 31,2021 $ 100,859 474,685 52,723 23,346 $ 651,613	December 31,2020 $ 101,348 391,793 39,510 76 $ 532,727	March 31,2020	March 31,2020
				$ 91,041 395,224 - 20,000 $ 506,265

34. Significant contingent liabilities and unrecognized contractual commitments

Except as stated in other notes, the consolidated company has the following major commitments and contingencies on the balance sheet date:

(I) Amount of unused letter of credit opened:

Amount of unused letter of	credit opened:
NTD USD JPY EUR	March 31,2021 $ 71,873 218 - -	December 31,2020 $ 41,249 7,131 254 -	March 31,2020
			$ 37,032 48 - 31

(II) The consolidated company appoints banks as the guarantors for contract performance, customs duty and goods tax bookkeeping. The guaranteed amount on March 31, 2021 and March 31 and December 31, 2020 and are NT$25,720 thousand, NT$29,620 thousand and NT$36,500 thousand.

65 -
Information on foreign currency financial assets and liabilities with significant impact

The following information is summarized and expressed in foreign currencies other than the functional currencies of each entity of the consolidated company. The disclosed exchange rate refers to the exchange rate converted from such foreign currencies to functional currencies. Foreign currency assets and liabilities with significant impact are as follows:

March 31, 2021

March 31, 2021
Foreign currency assets Monetary items USD USD USD USD USD EUR EUR JPY JPY JPY RMB Non-monetary items Equity based joint venture RMB RP Foreign currency liabilities Monetary items USD USD USD USD EUR JPY JPY JPY HKD RMB RMB	Foreign currency $ 9,413 1,441 361 1,212 28 1,382 3,076 12,289 9,163 10,970 35,239 15,717 68,082 2,175 760 1,558 6,984 50 27,584 2,973 43,097 335 343 203	Exchange rate 28.5000 (USD: NTD) 7.7678 (USD: HKD) 21,923.08 (USD: VND) 6.5713 (USD: RMB) 3.9595 (USD: PLN) 33.4800 (EUR: NTD) 4.6514 (EUR: PLN) 0.2587 (JPY: NTD) 199.0000 (JPY: VND) 0.0596 (JPY: RMB) 4.3340 (RMB: NTD) 4.3340 (RMB: NTD) 0.3892 (INR: NTD) 28.5000 (USD: NTD) 7.7678 (USD: HKD) 21,923.08 (USD: VND) 66.5713 (USD: RMB) 33.4800 (EUR: NTD) 0.2587 (JPY: NTD) 199.0000 (JPY: VND) 0.0596 (JPY: RMB) 0.8452 (HKD: RMB) 4.3340 (RMB: NTD) 1.1832 (RMB: HKD)	Functional currency $ 268,276 11,191 7,914,611 7,963 112 46,285 14,307 3,179 1,823,358 653 152,726 68,119 26,497 61,976 5,901 34,147,849 45,891 1,662 7,136 591,601 2,567 283 1,486 240		NTD
					$ 268,276 41,059 10,289 34,512 807 46,285 102,982 3,179 2,370 2,831 152,726 $ 665,316 $ 68,119 26,497 $ 94,616 $ 61,976 21,650 44,392 198,893 1,662 7,136 769 11,124 1,228 1,486 880 $ 351,196

66 -

December 31, 2020

Foreign currency assets Monetary items USD USD USD USD EUR EUR JPY JPY JPY RMB Non-monetary items Equity based joint venture RMB RP Foreign currency liabilities Monetary items USD USD USD USD EUR JPY JPY RMB RMB	Foreign currency $ 8,857 1,396 206 1,883 1,543 2,811 9,735 4,388 6,843 12,191 23,683 58,274 1,058 451 1,141 4,692 2,831 25,387 2,973 317 149	Exchange rate 28.0900 (USD: NTD) 7.7526 (USD: HKD) 23,408.33 (USD: VND) 6.5249 (USD: RMB) 34.5600 (EUR: NTD) 4.5268 (EUR: PLN) 0.2725 (JPY: NTD) 227.0833 (JPY: VND) 0.0632 (JPY: RMB) 4.3160 (RMB: NTD) 4.3160 (RMB: NTD) 0.3837 (INR: NTD) 28.0900 (USD: NTD) 7.7526 (USD: HKD) 23,408.33 (USD: VND) 6.5249 (USD: RMB) 4.5268 (EUR: PLN) 0.2725 (JPY: NTD) 227.0833 (JPY: VND) 4.3160 (RMB: NTD) 1.1888 (RMB: HKD)	Functional currency $ 248,802 10,826 4,816,423 12,290 53,317 12,723 2,653 996,442 433 52,618 102,214 22,360 29,715 3,499 26,703,420 30,614 12,815 6,918 675,089 1,366 177		NTD
					$ 248,802 39,235 5,780 53,042 53,317 96,131 2,653 1,196 1,868 52,618 $ 554,642 $ 102,214 22,360 $ 124,574 $ 29,715 12,679 32,044 132,131 96,826 6,918 810 1,366 642 $ 313,131

March 31, 2020

March 31, 2020
Foreign currency assets Monetary items USD USD USD USD EUR EUR JPY JPY JPY RMB	Foreign currency $ 4,457 1,348 227 1,473 2,032 3,003 10,799 2,161 15,344 20,831	Exchangerate 30.2300 (USD: NTD) 7.7493 (USD: HKD) 23,253.85 (USD: VND) 7.0851 (USD: RMB) 33.5100 (EUR: NTD) 4.5299 (EUR: PLN) 0.2812 (JPY: NTD) 216.3077 (JPY: VND) 0.0655 (JPY: RMB) 4.2560 (RMB: NTD)	Functional currency $ 134,731 10,444 5,267,349 10,435 68,092 13,604 3,037 467,398 1,006 88,656		NTD
					$ 134,731 40,741 6,848 44,412 68,092 100,634 3,037 608 4,280 88,656 $ 492,039

(To be continued)

67 -

(Continued)

Non-monetary items Equity based joint venture RMB RP Foreign currency liabilities Monetary items USD USD USD USD EUR EUR JPY JPY JPY HKD RMB RMB	Foreign currency $ 25,235 54,159 782 351 1,257 4,756 1,738 176 11,123 2,973 31,713 375 971 205	Exchange rate 4.2560 (RMB: NTD) 0.4014 (INR: NTD) 30.2300 (USD: NTD) 7.7493 (USD: HKD) 23,253.85 (USD: VND) 7.0851 (USD: RMB) 4.5299 (EUR: PLN) 33.5100 (EUR: NTD) 0.2812 (JPY: NTD) 216.3077 (JPY: VND) 0.0655 (JPY: RMB) 0.9137 (HKD: RMB) 4.2560 (RMB: NTD) 1.0945 (RMB: HKD)	Functional currency $ 107,401 21,739 23,635 2,718 29,222,905 33,694 7,872 5,895 3,128 643,055 2,079 343 4,132 225		NTD
					$ 107,401 21,739 $ 129,140 $ 23,635 10,602 37,990 143,402 58,232 5,895 3,128 836 8,847 1,460 4,132 877 $ 299,036

The foreign currency exchange gains (realized and unrealized) of the consolidated

company from January 1 to March 31, 2021 and 2020 were NT$2,384 thousand and

NT$662 thousand. Due to the variety of foreign currency transactions and functional currencies of the group entities, the exchange gains and losses could not be disclosed according to the foreign currencies with significant influence.

Please refer to note 7 for the foreign exchange forward and foreign exchange and interest swap contracts which the consolidated company has entered into as of March 31, 2021 and December 31 and March 31, 2020.

36. Disclosure and notes

(I) Major transactions and (2) related information on reinvested enterprises:
Loan of funds to others (Schedule 1).
Endorsements/guarantees for others (Schedule 2).
Securities held at the end of the period (excluding investment in subsidiaries and affiliated enterprises and equity of joint ventures) (Schedule 3).
68 -
The accumulated amount of buying or selling the same securities amounts to NT$300 million or more than 20% of the paid-in capital: None.
The amount of property acquired reaches NT$300 million or more than 20% of the paid-in capital: None.
The amount of property disposed of reaches NT$300 million or more than 20% of the paid-in capital: None.
The amount of goods purchased or sold with related parties is NT$100 million or more than 20% of the paid-in capital: None.
Receivables from related parties reach NT$100 million or more than 20% of paid-in capital: None.
Engagement in derivatives transactions (notes 7 and 19).
Others: business relationship between parent and subsidiary companies and among subsidiaries, as well as important transactions and amounts (Schedule 4).
Information of invested company (Schedule 5).
(III) Mainland China investment information:
Name of the invested company in mainland China, main business items, paid-in capital, investment method, capital emitted in and out, shareholding ratio, investment profit and loss, period-end investment book amount, repatriated investment profit or loss and investment limit in mainland China (Schedule 6).
Major transactions with the mainland China invested company directly or indirectly through a third region, and their prices, payment terms, unrealized profits and losses: (Schedule 1, Schedule 2, and Schedule 4)
- (1) Purchase amount and percentage, and period-end balance and percentage of related payables.
- (2) Amount and percentage of goods sold, and period-end balance and percentage of related receivables.
- (3) The amount of asset transaction and the profit or loss arising therefrom.
- (4) The period-end balance and the purpose of bill endorsement/guarantee or provision of collateral.
69 -
(5) The maximum balance of financing, the period-end balance, the interest rate range and the total interest of the current period.
(6) Other transactions that have a significant impact on the current income or financial position.
(IV) Information of major shareholders: names of shareholders with a shareholding ratio of more than 5%, the number of shares held and the percentage (Schedule 7).

37. Segment information

In accordance with the provisions of IFRS 8 "Operating segments," the reporting segments of the Company and its subsidiaries shall include the three segments including the chemical business in Taiwan, the mainland China business and others.

(I) Segment revenue and operating results

The revenue and operating results of the consolidated company are analyzed according to the reporting segment as follows:

January 1 to March 31, 2021

Revenue from external customers Intersegmental revenue Segment revenue Internal write-off Consolidated income Segment income Share of joint venture income under the equity method Profit before tax		Chemical business in Taiwan $ 277,323 94,720 372,043 94,720) $ 277,323 $ 11,526		Mainland China business $ 376,528 193,193 569,721 ( 193,193) $ 376,528 $ 764		Others $ 177,914 3,926 181,840 3,926) $ 177,914 $ 2,084		Total
	(			(	(		( (	$ 831,765 291,839 1,123,604 291,839) $ 831,765 $ 14,374 1,437) $ 12,937

January 1 to March 31, 2020

Revenue from external customers Intersegmental revenue Segment revenue Internal write-off Consolidated		Chemical business in Taiwan $ 279,936 53,020 332,956 53,020) $ 279,936	Mainland China business $ 210,306 62,337 272,643 ( 62,337) $ 210,306		Others $ 123,628 505 124,133 505) $ 123,628		Total
	(		(	(		(	$ 613,870 115,862 729,732 115,862) $ 613,870

70 -

income Segment income $ 2,056 ( $ 9,475 ) ( $ 6,408 ) ( $ 13,827 ) Share of joint venture income under the equity method 541 Net loss before tax ( $ 13,826 )

Segment income refers to the profit earned by each segment, excluding the share of joint venture income recognized by equity method and income tax expense which are to be apportioned. This measured amount is to serve as a reference to key operational decision makers to allocate resources to segments and assess their performance.

(II)

Total segment assets

March 31, 2021 December 31,2020 March 31, 2020

	March 31,2021	December 31,2020	March 31,2020	March 31,2020
Segment assets Segments with continuing business Notes receivable - Chemical business in Taiwan - Mainland China business - Others Accounts receivable - Chemical business in Taiwan - Mainland China business - Others Accounts receivable - related parties - Chemical business in Taiwan - Mainland China	$ 8,295 5,849 5,998 20,142 March 31,2021 $ 146,834 383,453 77,547 607,834 27,817 4,850	$ 10,195 5,745 8,208 24,148 December 31,2020 $ 153,514 385,754 58,726 597,994 32,334 5,347	$ 9,150 7,745 8,838 25,733 March 31,2020
				$ 144,616 253,496 60,947 459,059 20,342 4,149

71 -

business Inventory - Chemical business in Taiwan - Mainland China business - Others Property, plant and equipment - Chemical business in Taiwan - Mainland China business - Others Total unamortized assets Total assets	32,667 170,079 351,579 130,266 651,924 493,346 361,312 134,951 989,609 837,947 $ 3,140,123	37,681 142,666 297,107 102,132 541,905 496,302 366,798 143,258 1,006,358 847,901 $ 3,055,987	24,491
			187,588 230,336 124,082
			542,006
			489,744 380,792 148,823
			1,019,359
			839,097
			$ 2,909,745

For the purposes of the performance of the supervisory authority and the allocation of resources to segments, except for cash and cash equivalents, financial assets measured at fair value through income statement - current, financial assets measured at cost after amortization - current and non-current, other receivables (including those of related parties), other current assets, financial assets measured at fair value through other comprehensive income – non-current, investment under the equity method, intangible assets, right-of-use assets, deferred income tax assets, equipment prepayment, lease prepayment and other non-current assets, all other assets shall be allocated to the respective segment to be reported. The assets shared by the reporting segments are to be shared based on the income earned by each reporting segment.

72 -

Tex Year Industries Inc. and Subsidiaries

Loans to others

January 1 to March 31, 2021

Schedule I

Unit: NT$1000 unless otherwise noted

Serial No. (note 1)	Lending company	Loan recipient	Transaction item (note 2)	Related party or not	Maximum balance of the current period (note 3)	Ending balance (note 8)	Actual drawdown amount (note 9)	Interest rate range	Loan nature (note 4)	Business transaction amount (note 5)	Reason for short-term financing (note 6)	Provision for bad debts	Collateral	Collateral	Loans and limits to individual objects (note 7)	Loans and total limit (note 7)	Remarks
													Name	Value
0 0 0 1 1 2	Tex Year Industries Inc. Tex Year Industries Inc. Tex Year Industries Inc. Tex Year Technology Corp. Tex Year Technology Corp. Tex Year (Hong Kong) Ltd.	Tex Year Fine Chemical (Guangzhou) Co., Ltd. Tex Year Technology (Jiangsu) Co., Ltd. Tex Year Technology (Jiangsu) Co., Ltd. Tex Year Fine Chemical (Guangzhou) Co., Ltd. Tex Year Technology (Jiangsu) Co., Ltd. Tex Year Fine Chemical (Guangzhou) Co.,Ltd.	Other receivables - related parties - other Other receivables - related parties - other Other receivables - related parties - other Other receivables - related parties - other Other receivables - related parties - other Other receivables - related parties - other	Yes Yes Yes Yes Yes Yes	$ 50,000 34,000 34,000 50,000 20,000 43,000	$ 50,000 34,000 34,000 50,000 20,000 43,000	$ - - 30,338 (RMB 7,000 thousand) - 15,169 (RMB 3,500 thousand) 37,050 (USD 1,300 thousand)	2.5% 3% 3% 2.5% 2.5% 2.5%	Short term financing funds Short term financing funds Short term financing funds Short term financing funds Short term financing funds Short term financing funds	$ - - - - - -	Operation turnover Operation turnover Operation turnover Operation turnover Operation turnover Operation turnover	$ - - - - - -	- - - - - -	- - - - - -	$ 231,635 231,635 231,635 923,922 923,922 80,074	$ 463,270 463,270 463,270 923,922 923,922 80,074

Note 1: The description of the number column is as follows:

(1) Fill in 0 for the issuer.
(2) Investee companies are numbered in sequence in each company type starting from Arabic numeral 1.

Note 2: This field must be filled in for accounts receivable from affiliated enterprises, receivables from related parties, transactions with shareholders, prepayments, provisional payments, etc. if the nature is loan to others.

Note 3: The maximum balance of loans to others in the current year.

Note 4: The loan nature of the fund shall be filled in if it is a business transaction or if there is a need for short-term financing.

Note 5: Where the nature of the loan is a business transaction, the amount of the business transaction shall be filled in. The business transaction amount refers to the amount of business transactions between the lending company and the borrowing object in the most recent year

Note 6: If the nature of the loan is necessary for short-term financing, the reason for the loan and the purpose of the loan borrower shall be specified, such as loan repayment, purchase of equipment, business turnover, etc.

Note 7: In accordance with the Procedures of Loans to Others, the total amount of loans shall not exceed 50% of the Company's net worth. Still, the total amount of loans to others due to the necessity of short-term financing between companies or between firms shall not exceed 40% of the
Company's net worth; the amount of loans to each individual company or firm necessary for short-term financing shall not exceed 20% of the Company's net worth. When it is necessary for a foreign company directly or indirectly holding 100% of the Company's voting shares to engage in short-term financing of funds, the amount is not subject to the restrictions above. Still, the maximum amount shall not exceed the net value of the lending company. Tex Year Industries Inc. has a net loan amount of NT$923,922 thousand, which is NT$4,278 thousand different from the book amount of NT$919,644 thousand held by the Company in Schedule 5; the difference is the unrealized gross profit on sales; Tex Year (Hong Kong) Ltd. has a net loan amount of NT$80,074 thousand, which is NT$1,160 thousand different from the book amount of NT$78,914 thousand held by the Company in Schedule 5; the difference is the unrealized gross sales profit.
Note 8: If a public company submits its lending to the board of directors’ meeting for resolution one by one in accordance with paragraph 1, Article 14 of the Regulations Governing Loaning of Funds and Making of Endorsements/ Guarantees by Public Companies, the amount of the resolution of the board of directors’ meeting shall be included in the announced balance to disclose the risks it bears before the funds are lent out; if the funds are repaid later, the balance after repayment shall be disclosed to reflect the adjustment of risks. If the board of directors’ meeting of a public company authorizes the chairman of the board to extend loans in several trenches or recycle the loan balance within a certain limit in a year in accordance with paragraph 2, Article 14 of the Regulations, the loan limit approved by the board of directors’ meeting shall still be used as the balance for the public announcement and declaration. Although the funds will be repaid later, other loans may still be extended again, so the loan limit approved by the board of directors’ meeting shall still be used as the balance for the public announcement and declaration.
Note 9: It was converted at the exchange rates of RMB and USD on March 31, 2021.
73 -

Unit: NT$1,000 unless otherwise specified

Tex Year Industries Inc. and Subsidiaries

Endorsements/guarantees for others

January 1 to March 31, 2021

Schedule 2

Serial No. (note 1)	Endorsement guarantor company name	Endorsement/guarantee object	Endorsement/guarantee object	Limit of endorsements/ guarantees for a single enterprise (note 3)	Maximum balance of endorsements/guarantees in the current period (note 4)	Ending balance of endorsements and guarantees (note 5)	Actual drawdown amount (note 6)	Endorsement/ guarantee amount secured by property	Ratio of accumulated endorsements/ guarantees amount to net value in the latest financial statements(%)	Maximum endorsement/ guarantee amount (note 3)	Endorsements /guarantees of parent company to subsidiaries (note 7)	Endorsements/ guarantees of subsidiaries to parent company (note 7)	Endorsements/ guarantees for mainland China (note 7)	Remarks
		Company name	Relationship (note 2)
0 0 0 0 0 0	Tex Year Industries Inc. Tex Year Industries Inc. Tex Year Industries Inc. Tex Year Industries Inc. Tex Year Industries Inc. Tex Year Industries Inc.	Tex Year Technology (Jiangsu) Co., Ltd. Tex Year Fine Chemical (Guangzhou) Co., Ltd. Tex Year Fine Chemical (Guangzhou) Co., Ltd. Tex Year Europe Sp. z o. o. Tex Year Vietnam Co., Ltd. Shanghai C&M Filtration Solutions Limited	2 2 2 2 2 2	$ 347,452 347,452 347,452 231,635 231,635 231,635	$ 28,500 (USD1,000 thousand) 85,500 (USD3,000 thousand) 86,680 (RMB20,000 thousand) 67,860 (EUR2,000 thousand) 75,525 (USD2,650 thousand) 1,734 (USD400 thousand)	$ 28,500 (USD1,000 thousand) 85,500 (USD3,000 thousand) 86,680 (RMB20,000 thousand) 66,960 (EUR2,000 thousand) 75,525 (USD2,650 thousand) 1,734 (USD400 thousand)	$ 13,934 (USD489 thousand) 57,000 (USD2,000 thousand) 70,159 (RMB 16,188 thousand) 60,599 (EUR1,810 thousand) 34,506 (USD1,211 thousand) 1,734 (USD400 thousand)	$ - - - - - -	2.46% 7.38% 7.48% 5.78% 6.52% 0.15%	$ 579,088 579,088 579,088 579,088 579,088 579,088	Y Y Y Y Y Y	N N N N N N	Y Y Y N N Y	note 8

Note 1: The description of the number column is as follows:

(1) Fill in 0 for the issuer.
(2) Investee companies are numbered in sequence in each company type starting from Arabic numeral 1.
Note 2: There are 7 kinds of relations between the endorsement guarantor and the endorsed/guaranteed indicated as follows:
(1) A company with business contacts.
(2) A company with more than 50% of its voting shares held by the Company.
(3) A company directly or indirectly holding more than 50% of the voting shares of the Company.
(4) Companies directly or indirectly holding more than 90% of the voting shares of each other.
(5) A company with mutual guarantees in accordance with the contract which is in the same industry or a joint producer for the purpose of contracting the project.
(6) A company that has been endorsed/guaranteed by all the contributing shareholders in accordance with their shareholding ratios due to a joint investment relationship.
(7) Joint and several guarantees for the performance of a contract for the sale of pre-sold houses among companies in the same industry in accordance with the provisions of the Consumer Protection Act.

Note 3: According to the Company's "Measures on Endorsements/guarantees," the total amount of external endorsements/guarantees shall not exceed 50% of the Company's net value, and the limit of endorsements/guarantees for a single enterprise shall not exceed 20% of the Company's net value. However, for subsidiaries directly or indirectly owned by the Company, the limit shall not exceed 30% of the Company's net value.

Note 4: The maximum balance of endorsements/guarantees for others in the current year.
Note 5: The amount approved by the board of directors’ meeting shall be filled in. However, if the board of directors’ meeting authorizes the chairman of the board to make a decision in accordance with paragraph 8, Article 12 of the Regulations Governing Loaning of Funds and Making of Endorsements/ Guarantees by Public Companies, it refers to the amount decided by the chairman of the board.
Note 6: The actual amount of the Company's disbursement within the range of using the balance of the endorsements/ guarantees shall be entered.
Note 7: Y is required only for those which are endorsements/guarantees of a listed parent company to subsidiaries, endorsements/guarantees of subsidiaries to a listed parent company, and endorsements/guarantees in mainland China.
Note 8: Among them, RMB20,000 thousand is the bank credit line of E.Sun Bank shared by Tex Year Fine Chemical (Guangzhou) Co., Ltd. and Tex Year Technology (Jiangsu) Co., Ltd.
74 -

Tex Year Industries Inc. and Subsidiaries

Securities held at the end of the period

March 31, 2021

Schedule 3

Unit: NT$1000 unless otherwise noted

Holding company	Types and names of securities (note 1)	Relationship with the securities issuer (note 2)	Ledger account		End ofperiod	End ofperiod		Remarks
				Unit/share (1000 shares)	Carrying amount (note 3)	Shareholding ratio(%)	Fair value
Tex Year Industries Inc.	Acute Touch Technology Co., Ltd	-	Financial assets measured at fair value through other comprehensive income – non-current	1,500	$ -	3	$ -	note 4

Note 1: The term “securities” in this table refers to the stocks, bonds, beneficiary certificates and securities derived from the above items within the scope of IFRS 9 “Financial instruments.” Note 2: If the issuer of securities is not a related party, this column is not required to be filled in.

Note 3: If measured at fair value, the book amount is the book balance after adjustment of fair value evaluation and deduction of loss provision; if not measured at fair value, the book amount is the book balance of cost after amortization (after deduction of loss provision).

Note 4: There is no pledge.

Note 5: Please refer to attached Schedules 5 and 6 for information on investment in subsidiaries, affiliated enterprises and equity joint ventures.

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Tex Year Industries Inc. and Subsidiaries

Business relations and important transactions between the parent company and the subsidiaries and the amounts

January 1 to March 31, 2021

Schedule 4

Unit: NT$1,000 unless otherwise specified

Transaction situation

				Transaction situation	Transaction situation	Transaction situation	Transaction situation
Serial No. (note 1)	Name of transaction party	Transaction counterparty	Relationship with the counterparty (note 2)	Accounting subject	Amount (note 4)	Terms of transaction	Ratio to total consolidated revenue or total assets (notes 3 and 5)
0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 1 1 1 1 1 1 1 1	Tex Year Industries Inc. Tex Year Industries Inc. Tex Year Industries Inc. Tex Year Industries Inc. Tex Year Industries Inc. Tex Year Industries Inc. Tex Year Industries Inc. Tex Year Industries Inc. Tex Year Industries Inc. Tex Year Industries Inc. Tex Year Industries Inc. Tex Year Industries Inc. Tex Year Industries Inc. Tex Year Industries Inc. Tex Year Industries Inc. Tex Year Industries Inc. Tex Year Industries Inc. Tex Year Fine Chemical (Guangzhou) Co., Ltd. Tex Year Fine Chemical (Guangzhou) Co., Ltd. Tex Year Fine Chemical (Guangzhou) Co., Ltd. Tex Year Fine Chemical (Guangzhou) Co., Ltd. Tex Year Fine Chemical (Guangzhou) Co., Ltd. Tex Year Fine Chemical (Guangzhou) Co., Ltd. Tex Year Fine Chemical (Guangzhou) Co., Ltd. Tex Year Fine Chemical (Guangzhou) Co., Ltd. Tex Year Fine Chemical(Guangzhou)Co.,Ltd.	Tex Year (Hong Kong) Ltd. Tex Year (Hong Kong) Ltd. Tex Year Vietnam Co., Ltd. Tex Year Vietnam Co., Ltd. Tex Year Vietnam Co., Ltd. Tex Year Vietnam Co., Ltd. Wuxi Tex Year International Trading Co., Ltd. Wuxi Tex Year International Trading Co., Ltd. Tex Year Fine Chemical (Guangzhou) Co., Ltd. Tex Year Fine Chemical (Guangzhou) Co., Ltd. Tex Year Fine Chemical (Guangzhou) Co., Ltd. Tex Year Fine Chemical (Guangzhou) Co., Ltd. Tex Year Europe Sp. z o. o. Tex Year Europe Sp. z o. o. Tex Year Technology (Jiangsu) Co., Ltd. Tex Year Technology (Jiangsu) Co., Ltd. Tex Year Technology (Jiangsu) Co., Ltd. Tex Year (Hong Kong) Ltd. Wuxi Tex Year International Trading Co., Ltd. Wuxi Tex Year International Trading Co., Ltd. Tex Year Technology (Jiangsu) Co., Ltd. Tex Year Technology (Jiangsu) Co., Ltd. Tex Year Technology (Jiangsu) Co., Ltd. Tex Year Technology (Jiangsu) Co., Ltd. Tex Year Vietnam Co., Ltd. Tex Year Vietnam Co.,Ltd.	1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 3 3 3 3 3 3 3 3 3	Operating revenue Accounts receivable Accounts receivable Operating revenue Accounts payable Purchase Operating revenue Accounts receivable Accounts payable Accounts receivable Operating revenue Purchase Accounts receivable Operating revenue Accounts receivable Operating revenue Other receivables Other payables Accounts receivable Operating revenue Accounts payable Accounts receivable Purchase Operating revenue Accounts receivable Operatingrevenue	$ 13,189 21,226 7,870 3,725 10,835 9,068 7,558 10,265 5,266 52,307 33,858 3,998 10,735 10,871 10,411 9,534 30,338 37,050 35,593 58,765 19,269 2,747 33,547 2,428 2,068 1,878	Cost markup - - Cost markup - Cost markup Cost markup - - - Cost markup Cost markup - Cost markup - Cost markup - - - Cost markup - - Cost markup Cost markup - Cost markup	1.6% 0.7% 0.3% 0.4% 0.3% 1.1% 0.9% 0.3% 0.2% 1.7% 4.0% 0.5% 0.3% 1.3% 0.3% 1.1% 1.0% 1.2% 1.1% 7.0% 0.6% 0.1% 4.0% 0.3% 0.1% 0.2%

(To be continued)

76 -

(Continued)

Serial No. (note 1)	Name of transaction party	Transaction counterparty	Relationship with the counterparty (note 2)		Transaction situation	Transaction situation
				Accounting subject	Amount (note 4)	Terms of transaction	Ratio to total consolidated revenue or total assets (notes 3 and 5)
1 1 2 2 2 2 2 3 3 3 3 3 4	Tex Year Fine Chemical (Guangzhou) Co., Ltd. Tex Year Fine Chemical (Guangzhou) Co., Ltd. Wuxi Tex Year International Trading Co., Ltd. Wuxi Tex Year International Trading Co., Ltd. Wuxi Tex Year International Trading Co., Ltd. Wuxi Tex Year International Trading Co., Ltd. Wuxi Tex Year International Trading Co., Ltd. Shanghai C&M Filtration Solutions Limited Shanghai C&M Filtration Solutions Limited Shanghai C&M Filtration Solutions Limited Shanghai C&M Filtration Solutions Limited Shanghai C&M Filtration Solutions Limited Tex Year Technology (Jiangsu)Co.,Ltd.	Tex Year Europe Sp. z o. o. Tex Year Europe Sp. z o. o. Tex Year Technology (Jiangsu) Co., Ltd. Tex Year Technology (Jiangsu) Co., Ltd. Tex Year Technology (Jiangsu) Co., Ltd. Tex Year Vietnam Co., Ltd. Tex Year Vietnam Co., Ltd. Tex Year Technology (Jiangsu) Co., Ltd. Tex Year Technology (Jiangsu) Co., Ltd. Jiangsu C&M Filtration Solutions Limited Jiangsu C&M Filtration Solutions Limited Jiangsu C&M Filtration Solutions Limited Tex Year TechnologyCorp.	3 3 3 3 3 3 3 3 3 3 3 3 3	Accounts receivable Operating revenue Accounts payable Operating revenue Purchase Accounts payable Purchase Accounts payable Purchase Accounts payable Operating revenue Purchase Otherpayables	$ 2,759 1,858 50,252 496 76,231 2,112 2,110 2,639 4,667 29,653 3,295 11,308 15,169	- Cost markup - Cost markup Cost markup - Cost markup - Cost markup - Cost markup Cost markup -	0.1% 0.2% 1.6% 0.1% 9.1% 0.1% 0.3% 0.1% 0.6% 0.9% 0.4% 1.4% 0.5%

Note 1: The business information between the parent company and the subsidiaries shall be indicated in the number column, and the number shall be filled in as follows:

Fill in 0 for the parent company.
Subsidiaries are numbered in sequence in each company type starting from Arabic numeral 1.

Note 2: There are three types of relationship between transaction parties, which can be indicated as follows:

Parent company and subsidiary company.
Subsidiary company and parent company.
Subsidiary company and subsidiary company.
Note 3: For the calculation of the ratio of the transaction amount to the total consolidated revenue or total assets, if it belongs to the account of assets and liabilities, it shall be calculated in the way that the ending balance accounts for the total consolidated assets; if it belongs to the account of income, it shall be calculated in the way that the accumulated amount in the period accounts for the total consolidated revenue.
Note 4: The related transactions have been written off in the consolidated financial statements.

Note 5: Other transactions account for less than 0.1% of the total assets or consolidated revenue, and are therefore not disclosed.

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Tex Year Industries Inc. and Subsidiaries

Related information such as name of investee company, location, etc.

January 1 to March 31, 2021

Schedule 5

Unit: NT$1000 unless otherwise noted

Name of investment company	Name of investee	Location	Main business items	Original investment amount(note 1)	Original investment amount(note 1)	Holding	at the end of theperiod	at the end of theperiod	Current profit (loss) of the investee company	Investment profit (loss) recognized in the current period	Remarks
				End of the period	End of last year	Number of shares (1000 shares)	Percentage %	Carrying amount (note 2)
Tex Year Industries Inc. Tex Year International (Samoa) Corp. Tex Year (Hong Kong) Ltd.	Tex Year International (Samoa) Corp. Tex Year (Hong Kong) Ltd. Tex Year Vietnam Co., Ltd. Tex Year Industrial Adhesives Pvt. Ltd. Tex Year Europe Sp. z o. o. Tex Year Technology (Samoa) Corp. Tex Year Technology (Samoa) Corp.	Samoa Hong Kong Vietnam India Poland Samoa Samoa	Holding company Sales of hot melt adhesive, adhesive and various appliances Manufacturing and trading of hot melt adhesives and water adhesives Hot melt adhesive manufacturing and trading; trading of adhesives and various equipment R&D, production, and sales of hot melt adhesives Holding company Holding company	$ 782,923 (USD 24,500 thousand) 33,735 (USD 1,000 thousand) 44,920 (USD 1,440 thousand) 15,029 (USD500 thousand) 145,537 (PLN 17,600 thousand) 782,923 (USD 24,800 thousand) 34,501 (USD 1,000 thousand)	$ 782,923 (USD24,500 thousand) 33,735 (USD 1,000 thousand) 44,920 (USD 1,440 thousand) 15,029 (USD 500 thousand) 145,537 (PLN 17,600 thousand) 782,923 (USD 24,800 thousand) 34,501 (USD 1,000 thousand)	- 8,010 - 72 17.6 - -	100.00 100.00 80.00 50.00 80.00 96.08 3.92	$ 882,614 78,914 75,191 26,497 131,339 919,644 37,034	$ 8,045 ( 1,311 ) (HKD(362) thousand) 318 (VND264,824 thousand)) 1,677 (INR 4,355 thousand) 742 (PLN100 thousand) 8,045 8,045	$ 8,045 ( 1,311 ) (HKD(362) thousand) 254 (VND 211,859 thousand)) 839 (INR 2,178 thousand) 594 (PLN80 thousand) 8,045 -	(note 3) (note 3)

Note 1: It is calculated according to the original investment cost.

Note 2: The unrealized gross profit of goods sold has been deducted.

Note 3: The total net profit of this period of Tex Year Technology (Samoa) Co., Ltd. is recognized under Tex Year International (Samoa) Co., Ltd.

Note 4: Please refer to Schedule 6 for information about reinvested companies in mainland China.

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Tex Year Industries Inc. and Subsidiaries

Information about investment in mainland China.

January 1 to March 31, 2021

Schedule 6

Unit: NT$1,000 unless otherwise specified

Name of reinvested company in mainland China	Main business items	Paid-in capital (note 1)	Investment mode	Accumulated investment amount remitted from Taiwan at the beginning of the period	Amount of investment repatriated or recovered in the currentperiod	Amount of investment repatriated or recovered in the currentperiod	Accumulated investment amount remitted from Taiwan at the end of the period	Current profit or loss of the investee company	Shareholding ratio of direct or indirect investment of the Company	Investment profit or loss recognized in the current period (note 10)	Investment book amount at the end of the period	Investment income repatriated as of the current period	Remarks
					Repatriation	Recovery
Wuxi More Tex Technology Co., Ltd. Deyuan Chemical Technology (Shenzhen) Co., Ltd. Deyuan Business Machine (Shenzhen) Co., Ltd. Tex Year Fine Chemical (Guangzhou) Co., Ltd. Wuxi Tex Year International Trading Co., Ltd. Tex Year Technology (Jiangsu) Co., Ltd. Shanghai C&M Filtration Solutions Limited Jiangsu C&M Filtration Solutions Limited	Development, production and sales of hot melt adhesives and lubricants Development, production and sales of hot melt adhesives and lubricants Development and production of laminators, shredders, and manufacturing and trading of various appliances. R&D, production, and sales of hot melt adhesives Sales of chemical products and adhesives R&D, production, and sales of hot melt adhesives R&D and sales of environmental protection materials R&D and manufacturing of non-gauze filter materials	$ 100,581 (USD 3,000 thousand) - - 389,798 (USD 12,000 thousand) 14,265 (RMB 3,000 thousand) 308,108 (USD 10,000 thousand) 124,839 (RMB 27,298 thousand) 107,160 (RMB 23,340 thousand)	note 4 - - note 5 note 6 note 7 note 6 note 12	$ 50,291 (USD1,500 thousand) 34,507 (USD1,000 thousand) 34,726 (USD1,000 thousand) 389,798 (USD12,000 thousand) - 308,108 (USD10,000 thousand) - -	$ - - - - - - - -	$ - - - - - - - -	$ 50,291 (USD1,500 thousand) 34,507 (USD1,000 thousand) 34,726 (USD1,000 thousand) 389,798 (USD12,000 thousand) - 308,108 (USD10,000 thousand) - -	($ 2,606 ) (RMB (602) thousand) - - 8,800 (RMB2,033 thousand) 1,026 (RMB237 thousand) 1,422 (RMB329 thousand) 3,770 (RMB871 thousand) 1,579 (RMB365 thousand)	50% - - 100% 100% 100% 50.10% 100%	($ 2,276 ) (RMB (526) thousand) - - 8,606 (RMB 1,988 thousand) 1,026 (RMB 237 thousand) 1,792 (RMB 414 thousand) 1,345 (RMB 316 thousand) 1,579 (RMB 365 thousand)	$ 68,119 - - 548,620 62,206 284,339 90,205 113,655	$ 108,323 (Note 2) None. None. None. None. None. None. None.	notes 9 and 10 note 8 note 8 note 10 and note 13 note 10 note 10 and note 14 notes 10 and 11 note 10

In compliance with the mainland China investment Accumulated amount of investment remitted from Investment amount approved by the Investment limit set by the Investment Commission of the Taiwan to mainland China at the end of the period Commission of the Ministry of Economic Affairs Ministry of Economic Affairs NTD817,430 thousand (USD25,500 thousand) NTD894,394 thousand (USD27,500 thousand) (note 3)

Note 1: It is calculated based on the original investment cost.

Note 2: As of March 23, 2021, the board meeting of Wuxi MoreTex Technology Co., Ltd. passed the resolution to distribute a cash dividend of NT$64,839 thousand (RMB14,899 thousand), and then repatriate it to the Company through Tex Year Technology; it has not been remitted as of March 3, 2021 (recorded as other receivables).and a total of NT$108,323 thousand has already been repatriated.

Note 3: In accordance with the provisions of the letter of the Ministry of Economic Affairs referenced Jing-Shen Zi No. 09704604680, the value is calculated on the basis of 60% of the net value of the Company as of March 31, 2020, except for the Taiwan subsidiary of an enterprise or

multinational enterprise which is approved by the Industrial Development Bureau of the Ministry of Economic Affairs and a certificate of compliance on the headquarters’ operation scope issued. The Company obtained the certificate of compliance on the headquarters’ operation scope (letter referenced Jing-Shou-Gong Zi No. 10820409330) issued by the Industrial Development Bureau of the Ministry of Economic Affairs on April 17, 2019. The period of validity is from April 11, 2019 to April 10, 2022, so it is not subject to the limit.

79 -
Note 4: The Company invested NT$50,291 thousand through Tex Year International (Samoa) Co., Ltd., a third-region investment enterprise, and then indirectly invested in Wuxi MoreTex Technology Co., Ltd. through Tex Year Technology (Samoa) Co., Ltd.
Note 5: The Company invested NT$389,798 thousand through Tex Year International (Samoa) Co., Ltd., a third-region investment enterprise, and then indirectly invested in Tex Year Fine Chemical (Guangzhou) Co. through Tex Year Technology (Samoa) Co., Ltd.
Note 6: Tex Year Fine Chemical (Guangzhou) Co., Ltd. directly invested in Wuxi Tex Year International Trading Co., Ltd. and Shanghai C&M Filtration Solutions Limited, for NT$14,265 thousand and NT$80,975 thousand.
Note 7: The Company invested NT$308,108 thousand through Tex Year International (Samoa) Co., Ltd., a third-region investment enterprise, and then indirectly invested in Tex Year Technology (Jiangsu) Co., Ltd. through Tex Year Technology (Samoa) Co., Ltd.
Note 8: As the operation of Deyuan Chemical Technology (Shenzhen) Co., Ltd. was incorporated into Tex Year Fine Chemical (Guangzhou) Co., Ltd. and the liquidation was completed in December 2012; Deyuan Business Machine (Shenzhen) Co., Ltd. completed the liquidation in September 2014.
Note 9: The remaining balance after the NT$322 thousand (RMB74 thousand) unrealized net loss of the adjusted side-flow transactions recognized and the NT$1,295 thousand (RMB299 thousand) impairment loss in the current period).
Note 10: For the investment profit or loss, except Wuxi MoreTex Technology Co., Ltd., Tex Year Technology (Jiangsu) Co., Ltd., Shanghai C&M Filtration Solutions Limited and Jiangsu C&M Filtration Solutions Limited, which are calculated according to the financial statements that independent auditors have not verified, the rest are calculated according to the financial statements that have been verified by independent auditors.
Note 11: According to the shareholding ratio, the investment gains recognized in the current period are the balance after deducting NT$544 thousand of investment premium amortization.
Note 12: Tex Year Fine Chemical (Guangzhou) Co., Ltd. directly invests in Shanghai C&M Filtration Solutions Limited and indirectly invests in Jiangsu C&M Filtration Solutions Limited through Shanghai C&M Filtration Solutions Limited
Note 13: The realized net profit of the adjusted side-flow transaction recognized in the current period is NT$194 thousand (RMB 45 thousand). The book value of the investment at the end of the period is the balance after deducting the unrealized side-flow transactions and downstream transactions at the end of the period.
Note 14: The unrealized net loss of the adjusted side-flow transactions recognized in the current period is NT$370 thousand (RMB85 thousand). The book value of the investment at the end of the period is the balance after deducting the unrealized side-flow transactions and downstream flow transactions at the end of the period.
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Tex Year Industries Inc. and Subsidiaries

Information of major shareholders

March 31, 2021

Schedule 7

Name of major shareholders	Equity	Equity
	Number of shares held	Shareholding ratio
Chin-Tsung Hsiao Tex YardInvestment Co., Ltd. Tex YuanInvestment Co., Ltd.	15,646,012 6,611,215 6,774,987	17.20% 7.27% 7.45%

Note: The major shareholder information in this schedule is based on the Central Depository’s record of common shares and special shares of the Company (including treasury shares) held by shareholders, which reached 5% or more on the last business day at the end of the quarter. There may be a difference between the number of shares recorded in the Company's consolidated financial statements and the number of shares actually delivered for scripless registration due to a different calculation basis.

81 -

AI assistant

TEX YEAR — Interim / Quarterly Report 2021

52420_rns_2021-11-15_6d8b0b2c-01cf-4bbc-9f51-0501d037bc4b.pdf

Tex Year Industries Inc. and Subsidiaries

Consolidated Financial Report and Independent Auditor’s Review Report First Quarter of 2021 and 2020

Independent Auditor’s Review Report

Foreword

Scope

Basis of Reserved Opinion

Reserved Conclusion

Notice to Readers

Tex Year Industries Inc. and Subsidiaries

Consolidated Balance Sheet

March 31, 2021 and December 31 and March 31, 2020

Tex Year Industries Inc. and Subsidiaries

Consolidated Statement of Comprehensive Income

(Continued)

(Continued)

Tex Year Industries Inc. and Subsidiaries

Tex Year Industries Inc. and Subsidiaries

Consolidated Cash Flow Statement

(Continued)

Notes to consolidated financial statements January 1 to March 31, 2021 and 2020

1. Company History and Business Scope

2. Date and Procedure of Adoption of Financial Statements

3. Application of New and Revised Standards and Interpretations

4. Summary of Significant Accounting Policies

(III) Basis of Consolidation

5. Main Sources of Uncertainty in Significant Accounting Judgments, Estimates and Assumptions

6. Cash and Cash Equivalents

7. Financial Instruments Measured at Fair Value through Income Statement

March 31, 2021 December 31,2020 March 31, 2020

8. Financial assets measured at fair value through other comprehensive income Equity instrument investment

(I) Accounts receivable

March 31, 2021

March 31, 2020

(II) Collection

(III) Other receivables

11. Inventory

12. Subsidiaries

(I) Subsidiaries included in the consolidated financial statements

The consolidated financial statements are prepared by:

Tex Year Vietnam Co., Ltd.

Shanghai C&M Filtration Solutions Limited and its subsidiaries

13. Investment under the equity method

Investments and joint ventures

(I) Significant joint ventures Wuxi More Tex Technology Co., Ltd.

14. Property, plant and equipment

15. Lease agreement

(I) Right-of-use assets

(II) Lease liabilities

(III) Other lease information

16. Intangible assets

(Continued)

17. Other assets

18. Borrowings

(I) Short-term borrowings

19. Corporate bonds payable

20. Notes payable and accounts payable

23. Post-retirement benefit plans

(I) Defined contribution plans

(II) Defined benefit plan

24. Equity

2. Certificate of right to convert bonds into shares

(III) Retained earnings and dividend policy

25. Revenue

26. Net profit and other comprehensive income

(I) Interest income

(IV) Financial cost

(V) Depreciation and amortization

(VI) Employee benefits

(VII) Employees’ remuneration and directors’ and supervisors’ remuneration

27. Income tax

(I) Income tax recognized in income

(II) Income tax recognized in other comprehensive income

(III) Verification of income tax

28. Earnings (loss) per share

Number of shares

29. Government subsidy

30. Capital risk management

TEX YEAR Interim / Quarterly Report 2021