TEX YEAR - Interim / Quarterly Report 2021

Stock code: 4720

Tex Year Industries Inc. and Subsidiaries

Consolidated Financial Report and Independent Auditor’s Review Report Third 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 September 30, 2021 and 2020, the consolidated comprehensive income statement from July 1 to September 30, 2021 and 2020, consolidated statement of changes in equity and consolidated cash flow statement from January 1 to September 30, 2021 and 2020, and 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

We conducted our review in accordance with Statement of Auditing Standards No. 65, "Review of Financial Information Performed by the Independent Auditor of the Entity", except for retaining the statement in the basic paragraph of the conclusion. 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 September 30, 2021 and 2020 were NT$987,700 thousand and NT$895,481 thousand, accounting for 31.43% and 30.28% of the total consolidated assets; the total liabilities were NT$280,207 thousand and NT$239,322 thousand, accounting for 15.37%% and 13.92% of the total consolidated liabilities; the total comprehensive income, net of tax from July 1 to September 30, 2021 and 2020, and from January 1 to September 30, 2021 and 2020 were respectively NT$(706) thousand, NT$(45,057) thousand, NT$6,052 thousand and NT$(46,301) thousand, respectively accounting for 18.51%, (85.76)%, 192.49% and (95.65)% of the total comprehensive income, net of tax. The above-mentioned investment balances using the equity method as of September 30, 2021 and 2020 were NT$87,388 thousand and NT$129,667 thousand, respectively, accounting for 2.78% and 4.39% of the total consolidated assets; the comprehensive gains and losses recognized by the equity method from July 1 to September 30, 2021 and 2020 and from January 1 to September 30, 2021 and 2020 was $(1,466) thousand, $(496) thousand, $(4,844) thousand and $(571) thousand, respectively, accounting for 38.43%, (0.94)%, (154.07)% and (1.18)% of the total comprehensive income, net of tax, respectively.

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 September 30, and

the consolidated financial performance of July 1 to September 30, 2021 and 2020, and the consolidated financial performance and consolidated cash flow from January 1 to September 30, 2021 and 2020.

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

Deloitte & Touche Taipei, Taiwan Republic of China

November 12, 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 auditor’s 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 auditor’s report and consolidated financial statements shall prevail.

Tex Year Industries Inc. and Subsidiaries

Consolidated Balance Sheet

September 30, 2021 and December 31 and September 30, 2020

Unit: NT$1,000

Code 1100 1110 1150 1170 1180 1200 1210 130X 1470 11XX 1517 1535 1550 1600 1755 1780 1840 1915 1990 15XX 1XXX Code 2100 2120 2170 2180 2200 2230 2250 2280 2320 2399 21XX 2530 2540 2570 2580 2630 2640 2670 25XX 2XXX 3110 3130 3150 3100 3200 3310 3320 3350 3300 3410 3420 3400 31XX 36XX 3XXX	Assets Current Assets Cash and cash equivalents (note 6) Financial assets measured at fair value through profit or loss - current (note 7 and 19) Notes receivable (note 10) Accounts receivable (note 10) Accounts receivable due from related parties (notes 10 and 32) Other receivables (note 10) Other receivables due from related parties (notes 10 and 32) Inventories (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 amortized cost – non-current (notes 9 and 33) Investments accounted for using equity method (note 13) Property, plant and equipment (notes 14, 18, and 33) Right-of-use assets (note 15) Intangible assets (note 16) Deferred tax assets (notes 4 and 27) Prepayments for business facilities Other non-current assets (note 10, 13 and 17) Total Non-current Assets Total Assets Liabilities and Equity Current Liabilities Short-term borrowings (note 18) Financial liabilities measured at fair value through profit or loss - current (note 7) Accounts payable (note 20) Accounts payable to related parties (notes 20 and 32) Other payables (note 21) Current tax liabilities (notes 4) Current provisions (note 22) Current lease liabilities (note 15) Non-current portion of non-current borrowings due within one year and bonds payable (notes 18 and 33) Other current liabilities (notes 21 and 29) Total Current Liabilities Non-current Liabilities Corporate bonds payable (note 19) Non-current portion of non-current borrowings (notes 18 and 33) Deferred 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, 24 and 27) Share capital Common stock Certificate of entitlement to new shares from convertible bond Stock dividends to be distributed Total share capital Capital surplus Retained earnings Legal reserve Special reserve Unappropriated retained earnings Total retained earnings Other equity interest Exchange differences on translation of foreign financial statements Unrealized profit or loss of financial assets 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	September 30,2021(Reviewed) Amount % $ 384,709 12 69,177 2 28,125 1 604,835 19 37,157 1 14,646 1 166 - 657,110 21 98,134 3 1,894,059 60 - - 14,851 - 87,388 3 962,804 31 70,265 2 15,628 1 41,916 1 37,298 1 18,605 1 1,248,755 40 $ 3,142,814 100 $ 675,463 22 - - 282,748 9 - - 111,662 4 8,479 - 1,246 - 2,421 - 104,817 3 63,274 2 1,250,110 40 225,466 7 231,082 8 67,912 2 993 - 4,456 - 39,914 1 2,903 - 572,726 18 1,822,836 58 933,857 30 150 - 45,321 1 979,328 31 58,630 2 132,500 4 110,779 4 23,751 1 267,030 9 ( 111,141 ) ( 4 ) ( 12,586) - ( 123,727) ( 4) 1,181,261 38 138,717 4 1,319,978 42 $ 3,142,814 100	September 30,2021(Reviewed) Amount % $ 384,709 12 69,177 2 28,125 1 604,835 19 37,157 1 14,646 1 166 - 657,110 21 98,134 3 1,894,059 60 - - 14,851 - 87,388 3 962,804 31 70,265 2 15,628 1 41,916 1 37,298 1 18,605 1 1,248,755 40 $ 3,142,814 100 $ 675,463 22 - - 282,748 9 - - 111,662 4 8,479 - 1,246 - 2,421 - 104,817 3 63,274 2 1,250,110 40 225,466 7 231,082 8 67,912 2 993 - 4,456 - 39,914 1 2,903 - 572,726 18 1,822,836 58 933,857 30 150 - 45,321 1 979,328 31 58,630 2 132,500 4 110,779 4 23,751 1 267,030 9 ( 111,141 ) ( 4 ) ( 12,586) - ( 123,727) ( 4) 1,181,261 38 138,717 4 1,319,978 42 $ 3,142,814 100	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	September 30,2020(Reviewed)	September 30,2020(Reviewed)	September 30,2020(Reviewed)
			Amount $ 384,709 69,177 28,125 604,835 37,157 14,646 166 657,110 98,134 1,894,059 - 14,851 87,388 962,804 70,265 15,628 41,916 37,298 18,605 1,248,755 $ 3,142,814 $ 675,463 - 282,748 - 111,662 8,479 1,246 2,421 104,817 63,274 1,250,110 225,466 231,082 67,912 993 4,456 39,914 2,903 572,726 1,822,836 933,857 150 45,321 979,328 58,630 132,500 110,779 23,751 267,030 111,141 ) 12,586) 123,727) 1,181,261 138,717 1,319,978 $ 3,142,814		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 $ 378,307 70,599 17,118 560,612 49,025 9,162 2,189 490,036 68,741 1,645,789 3,586 24,288 129,667 1,005,170 72,743 18,143 39,899 3,916 13,784 1,311,196 $ 2,956,985 $ 398,360 4,896 295,454 41,626 115,688 8,550 1,305 2,976 68,025 40,713 977,593 276,493 338,175 76,879 1,695 7,536 39,769 1,154 741,701 1,719,294 893,857 - - 893,857 44,301 125,834 95,226 52,256 273,316 103,524 ) 9,000) 112,524) 1,098,950 138,741 1,237,691 $ 2,956,985	%
		( ( (		( ( (		( ( (		13 2 1 19 2 - - 17 2 56 - 1 4 34 2 1 1 - 1 44 100 14 - 10 2 4 - - - 2 1 33 9 12 3 - - 1 - 25 58 30 - - 30 2 4 3 2 9 ( 4 ) - ( 4) 37 5 42 100

The attached notes are part of the consolidated financial statements.

(please refer to the Independent Auditor’s Review Report of Deloitte & Touche on November 12, 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

July 1 to September 30, 2021 and 2020 and January 1 to September 30, 2021 and 2020

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

Unit: NT$1,000; for earnings per share is NT$1

			July 1 to September	July 1 to September	July 1 to September	30,		July 1 to September	July 1 to September	July 1 to September	30,		January 1 to September	January 1 to September	January 1 to September		January 1 to September	January 1 to September	January 1 to September
				2021					2020				30,2021				30,2020
Code				Amount		`％`			Amount		`％`		Amount		`％`		Amount		`％`
	Operating revenue (notes 25,
	32 and 37)
4110	Total operating revenue		$	884,785		101		$	858,209		101		$ 2,588,129		101		$ 2,244,437		101
4170	Less: sales returns			5,140		1			5,799		1		14,184		1		11,952		1
4190	Less: Sales discounts and
	allowances			32		-			369		-		877		-		837		-
4000	Net operating
	revenue			879,613		100			852,041		100		2,573,068		100		2,231,648		100
	Operating costs (notes 11, 22,
	23, 26 and 32)
5110	Cost of goods sold			713,426		81			645,280		76		2,101,587		82		1,721,246		77
5900	Operating margin			166,187		19			206,761		24		471,481		18		510,402		23
5910	Realized gain from
	investments and joint
	ventures			25		-	(		140)		-		140		-	(	86)		-
5950	Realized gross profit			166,212		19			206,621		24		471,621		18		510,316		23
	Operating expenses (notes 10,
	16, 23, 26 and 32)
6100	Selling expenses			89,116		10			82,625		10		258,921		10		224,986		10
6200	Administrative expenses			35,536		4			39,783		5		104,338		4		107,791		5
6300	Research and
	development expenses			20,248		2			21,132		2		65,142		2		81,761		4
6000	Total operating
	expenses			144,900		16			143,540		17		428,401		16		414,538		19
6900	Net-operating income			21,312		3			63,081		7		43,220		2		95,778		4
	Non-operating income and
	expenses
7060	Share of the profit or loss
	of joint ventures
	accounted for using
	the equity method
	(note 13)	(		1,401 )		-	(		756 )		-	(	4,596 )		-		1,242		-
7100	Interest income (note 26)			210		-			320		-		716		-		1,415		-
7010	Other income (notes 26,
	29 and 32)			1,770		-			5,143		1		14,694		-		23,294		1
7230	Foreign exchange losses -
	net (note 35)	(		3,756 )		-	(		940 )		-	(	10,137 )	(	1 )	(	5,345 )		-
7020	Other gains and losses
	(note 26)	(		6 )		-	(		804 )		-	(	1,194 )		-	(	2,786 )		-
7510	Finance costs (notes 18,
	19 and 26)	(		3,848 )	(	1 )	(		3,724 )	(	1 )	(	9,901 )		-	(	12,002 )	(	1 )
7590	Miscellaneous
	disbursements	(		1,413)		-	(		1,669)		-	(	5,459)		-	(	4,554)		-
7000	Total non-operating
	income and
	expenses	(		8,444)	(	1)	(		2,430)		-	(	15,877)	(	1)		1,264		-
7900	Profit before tax			12,868		2			60,651		7		27,343		1		97,042		4
7950	Income tax expense (notes 4
	and 27)	(		5,107)	(	1)	(		18,582)	(	2)	(	8,533)		-	(	28,368)	(	1)
8200	Net profit of the current
	period			7,761		1			42,069		5		18,810		1		68,674		3

(To be continued)

(Continued)

Code Other comprehensive income (note 4, 12, 13 and 27) Components of other comprehensive income that will be reclassified to profit or loss 8361 Exchange differences on translation of foreign financial statements 8370 Share of other comprehensive income of joint venture under the equity method 8399 Income tax related to components of other comprehensive income that will be reclassified to profit or loss 8360 8300 Other comprehensive income (net of tax) 8500 Total comprehensive income of the current period 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 per share (note 28) 9710 Basic 9810 Diluted	July 1 to September 30, 2021 Amount `％` ( $ 13,840 ) ( 1 ) ( 81 ) - 2,345 - ( 11,576) ( 1) ( 11,576) ( 1) ($ 3,815) - $ 6,681 1 1,080 - $ 7,761 1 ( $ 2,699 ) - ( 1,116) - ($ 3,815) - $ 0.07 $ 0.06		July 1 to September 30, 2020 Amount `％` $ 12,537 1 325 - 2,392) - 10,470 1 10,470 1 $ 52,539 6 $ 37,200 4 4,869 1 $ 42,069 5 $ 46,765 5 5,774 1 $ 52,539 6 $ 0.40 $ 0.33	January 1 to September 30,2021 Amount `％` ( $ 18,593 ) ( 1 ) ( 310 ) - 3,237 - ( 15,666) ( 1) ( 15,666) ( 1) $ 3,144 - $ 15,375 1 3,435 - $ 18,810 1 $ 2,427 - 717 - $ 3,144 - $ 0.16 $ 0.15	January 1 to September 30,2020	January 1 to September 30,2020
	Amount ( $ 13,840 ) ( 81 ) 2,345 ( 11,576) ( 11,576) ($ 3,815) $ 6,681 1,080 $ 7,761 ( $ 2,699 ) ( 1,116) ($ 3,815) $ 0.07 $ 0.06		Amount $ 12,537 325 2,392) 10,470 10,470 $ 52,539 $ 37,200 4,869 $ 42,069 $ 46,765 5,774 $ 52,539 $ 0.40 $ 0.33	Amount ( $ 18,593 ) ( 310 ) 3,237 ( 15,666) ( 15,666) $ 3,144 $ 15,375 3,435 $ 18,810 $ 2,427 717 $ 3,144 $ 0.16 $ 0.15	Amount ( $ 22,327 ) ( 2,266 ) 4,324 ( 20,269) ( 20,269) $ 48,405 $ 43,001 25,673 $ 68,674 $ 25,703 22,702 $ 48,405 $ 0.46 $ 0.41	`％`
		(				( 1 ) - - ( 1) ( 1) 2 2 1 3 1 1 2

The attached notes are part of the consolidated financial statements.

(please refer to the Independent Auditor’s Review Report of Deloitte & Touche on November 12, 2021)

Chairman: Hsiang-Chih Hsiao Manager: Hsiang-Chih Hsiao

Accounting Supervisor: Chih-Wen Kao

Unit: NT$1,000

Tex Year Industries Inc. and Subsidiaries

Consolidated Statement of Changes in Equity

January 1 to September 30, 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, 24 and 27)

	Share capital	Capital surplus $ 68,494 - - ( 26,753 ) 2,560 - - - - $ 44,301 $ 48,570 - - - - 10,060		Retained earnings	Unappropriated retained earnings $ 54,068 ( 4,418 ) ( 40,395 ) - - - 43,001 - 43,001 $ 52,256 $ 75,916 ( 6,666 ) ( 15,553 ) ( 45,321 ) - -	Other equityitems through other comprehensive income Foreign operating organizations through profit or loss Conversion of the financial statements Financial assets measured at fair value Exchange differences Unrealized profits and losses ( $ 86,226 ) ( $ 9,000 ) - - - - - - - - - - - - ( 17,298) - ( 17,298) - ($ 103,524) ($ 9,000) ( $ 98,193 ) ( $ 12,586 ) - - - - - - - - - -	Other equityitems through other comprehensive income Foreign operating organizations through profit or loss Conversion of the financial statements Financial assets measured at fair value Exchange differences Unrealized profits and losses ( $ 86,226 ) ( $ 9,000 ) - - - - - - - - - - - - ( 17,298) - ( 17,298) - ($ 103,524) ($ 9,000) ( $ 98,193 ) ( $ 12,586 ) - - - - - - - - - -	Non-controlling interests (note 12) $ 116,039 - - - - - 25,673 ( 2,971) 22,702 $ 138,741 $ 138,561 - - - ( 561 ) -		Total equity
						Foreign operating organizations Conversion of the financial statements Exchange differences ( $ 86,226 ) - - - - - - ( 17,298) ( 17,298) ($ 103,524) ( $ 98,193 ) - - - - -
Common stock $ 885,767 - - - 7,063 1,027 - - - $ 893,857 $ 893,857 - - - - 27,857	Rights to exchange bonds for shares Certificate $ 1,027 - - - - ( 1,027 ) - - - $ - $ 12,143 - - - - 150
			Legal reserve $ 121,416 4,418 - - - - - - - $ 125,834 $ 125,834 6,666 - - - -	Special reserve $ 54,831 - 40,395 - - - - - - $ 95,226 $ 95,226 - 15,553 - - -
	(	(			( ( ( ( (	( ( ( ( (	( ( (	( (	( ( (	$ 1,206,416 - - 26,753 ) 9,623 - 68,674 20,269) 48,405 $ 1,237,691 $ 1,279,328 - - - 561 ) 38,067

I3 Share capital converted from certificates of bond-to-share D1 Net profit from January 1 to September 30, 2021 D3 Other comprehensive income after tax from January 1 to September 30, 2021 D5 Total comprehensive income, net of tax from January 1 to September 30, 2021 Z1 Balance on September 30, 2021	12,143 ( - - - $ 933,857	12,143 ) - - - $ 150	- - - - $ 45,321	- - - - $ 58,630	- - - - $ 132,500	- - - - $ 110,779	- 15,375 - ( 15,375 ( $ 23,751 (	- - 12,948) 12,948) $ 111,141) (	- - - ( - $ 12,586)	- 3,435 2,718) ( 717 $ 138,717	- 18,810 15,666) 3,144 $ 1,319,978

The attached notes are part of the consolidated financial statements.

(please refer to the Independent Auditor’s Review Report of Deloitte & Touche on November 12, 2021)

Chairman: Hsiang-Chih Hsiao

Manager: Hsiang-Chih Hsiao Accounting Supervisor: Chih-Wen Kao

Tex Year Industries Inc. and Subsidiaries

Consolidated Cash Flow Statement

January 1 to September 30, 2021 and 2020

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

Standards)

Unit: NT$1,000

		Unit: NT$1,000
Code Net Cash flow from business activities A00010 Profit before tax A20010 Adjustments to reconcile profit (loss) A20100 Depreciation expense A20200 Amortization expenses A20300 Expected credit loss A20400 Loss on financial instruments measured at fair value through profit or loss A20900 Finance costs A21200 Interest income A22300 Share of profit of joint venture under the equity method A22500 Loss (gain) from Proceeds from disposal of property, plant and equipment A23800 Loss from falling inventory price and dead stock A23900 (Realized) unrealized gains on joint ventures A24100 Unrealized foreign currency exchange loss A29900 Amount of refund liability recognized (reversed) A29900 Reversal of deferred revenue A30000 Net change in operating assets and liabilities A31115 Financial instruments measured at fair value through profit or loss A31130 Notes receivable A31150 Accounts receivable A31160 Accounts receivable due from related parties A31180 Other receivables A31190 Other receivables due from related parties A31200 Inventories A31240 Other current assets A32150 Accounts payable A32160 Accounts payable to related parties A32180 Other payables A32190 Other payables to related parties	January 1 to September 30,2021 $ 27,343 65,641 6,215 3,709 1,243 9,901 ( 716 ) 4,596 ( 49 ) 1,584 ( 140 ) 1,690 200 ( 8,682 ) ( 14,795 ) ( 3,977 ) ( 10,973 ) ( 884 ) 6,760 1,263 ( 116,868 ) ( 27,321 ) ( 109,408 ) ( 26,859 ) ( 42,059 ) ( 39 )	January 1 to September 30,2020
		$ 97,042 67,818 7,598 8,173 2,759 12,002 ( 1,415 ) ( 1,242 ) 27 7,253 86 4,087 ( 360 ) ( 5,118 ) ( 53,630 ) 6,430 ( 26,533 ) ( 30,496 ) 2,221 ( 9 ) ( 42,844 ) ( 2,478 ) 3,210 ( 12,077 ) ( 13,955 ) ( 69 )

(To be continued)

10 -

(Continued)

Code A32230 Other current liabilities A32240 Non-current net defined benefit liability A33000 Cash inflow (outflow) generated from operations A33100 Interest received A33300 Interest paid A33500 Income tax paid AAAA Cash provided by (used in) operating activities Cash flows from (used in) investing activities B00040 Acquisition of financial assets at amortised cost B00050 Proceeds from disposal of financial assets at amortised cost B02000 Increase in prepayments for investments B02700 Acquisition of property, plant and equipment B02800 Proceeds from disposal of property, plant and equipment B04500 Acquisition of intangible assets B06700 Increase in other non-current assets B07100 Increase in Prepayments for business facilities B07600 Dividends received BBBB Net cash outflow from investment activities Cash flows from (used in) financing activities C00200 Increase in short-term loans C01600 Proceeds from long-term debt C01700 Repayments of long-term debt C04020 Payments of lease liabilities C04400 Increase in other non-current liabilities C04500 Cash dividends paid C05800 Cash dividends paid to non-controlling interests CCCC Cash provided by (used in) financing activities DDDD Effect of exchange rate changes on cash and cash equivalents EEEE Net decrease in cash and cash equivalents E00100 Cash and cash equivalents at beginning of period E00200 Cash and cash equivalents at end of period	January 1 to September 30,2021 $ 35,999 ( 2,577) ( 199,203 ) 716 ( 8,241 ) ( 25,607) ( 232,335) ( 14,775 ) - ( 5,757 ) ( 27,792 ) 935 ( 272 ) ( 442 ) ( 35,633 ) 32,419 ( 51,317) 320,180 - ( 60,630 ) ( 2,866 ) 1,999 - ( 561) 258,122 ( 10,142) ( 35,672 ) 420,381 $ 384,709	January 1 to September 30,2020	January 1 to September 30,2020
	( ( ( ( ( ( ( ( ( ( ( ( ( ( ( ( (	( ( ( ( ( ( ( ( ( ( ( ( ( (	$ 7,129 1,967) 33,642 1,561 8,574 ) 14,312) 12,317 - 31,977 - 40,482 ) 2 476 ) 4,299 ) 4,658 ) 5,316 12,620) 17,977 60,000 47,748 ) 4,001 ) 262 26,753 ) - 263) 10,398) 10,964 ) 389,271 $ 378,307

The attached notes are part of the consolidated financial statements. (please refer to the Independent Auditor’s Review Report of Deloitte & Touche on November 12, 2021)

Chairman: Hsiang-Chih Hsiao

Manager: Hsiang-Chih Hsiao Supervisor: Chih-Wen Kao

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Tex Year Industries Inc. and Subsidiaries

Notes to consolidated financial statements January 1 to September 30, 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 New Taiwan Dollar (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 November 12, 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.

The application of the amended IFRSs approved and issued by the FSC will not result in significant changes in the accounting policies of the consolidated Company.

(II) IFRSs approved by the FSC and applicable in 2022
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The effective date promulgated by IASB January 1, 2022 (note 1)

Newly Issued/ Amended/ Revised Standards and Interpretations

"IFRSs 2018~2020 Annual Improvements"

Amendment to IFRS 3 "Reference to the Conceptual Framework" Amendments to IAS 16 “Property, Plant and Equipment: Proceeds before Intended Use”

Conceptual Framework" January 1, 2022 (note 2) Amendments to IAS 16 “Property, Plant and January 1, 2022 (note 3) Equipment: Proceeds before Intended Use” Amendment to IAS 37 "Onerous Contracts — January 1, 2022 (note 4) Cost of Fulfilling a Contract"

Note 1: The amendment to IFRS 9 is applicable to the exchange of financial liabilities or revision of terms during annual reporting periods beginning on or after January 1, 2022; the amendment to IAS 41 "Agriculture" is applicable to fair value measurements in annual reporting periods beginning on or after January 1, 2022; the amendment to IFRS 1 "First-Time Adoption of IFRSs" is retrospectively applied to annual reporting periods beginning on or after January 1, 2022.
Note 2: The amendment is applicable to the merges of enterprises whose offer dates fall in annual reporting periods beginning on or after January 1, 2022.
Note 3: The amendment is applicable to the plant, property and equipment which reach the location and condition in the operation manner intended by the management as of January 1, 2021.
Note 4: The amendment is applicable to the contracts where not all obligations have been fulfilled by January 1, 2022.
As of the date of approval of this consolidated financial report, the
consolidated Company continues to evaluate the impact of amendments to the other standards and interpretations on the financial status and financial performance, and the relevant impact will be disclosed when the evaluation is completed.
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(III) IFRSs issued by IASB but not approved and effective by the FSC

The effective date Newly Issued/ Amended/ Revised Standards promulgated by IASB and Interpretations (note 1) 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 January 1, 2023 Liabilities as Current or Non-current" Amendment to IAS 1 "Disclosure of Accounting January 1, 2023 (note 2) Policies" Amendment to IAS 8 "Definition of Accounting January 1, 2023 (note 3) Estimates" Amendment to IAS 12 "Deferred Income Tax January 1, 2023 (note 4) Related to Assets and Liabilities Arising from a Single Transaction”

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 application of this amendment will be postponed till the annual reporting period beginning after January 1, 2023.
Note 3: 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.
Note 4: 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.
14 -

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.

(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

15 -

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 expenses among the entities have been eliminated. The total comprehensive income, net of tax 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 6 and schedule 7.

(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.

1. Defined benefits and post-employment 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.

2. 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	September 30, 2021 $ 1,010 376,406 7,293 $ 384,709	December 31, 2020 $ 1,783 414,282 4,316 $ 420,381	September 30, 2020
				$ 1,708 372,345 4,254 $ 378,307

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

Demand deposits Time deposit	September 30, 2021 0.01%`～`0.6% 1.9575%`～`2.9%	December 31, 2020 0.01%`～`0.6% 1.35%	September 30, 2020
			0.01%`～`0.6% 1.95%

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7. Financial Instruments Measured at Fair Value through Profit or Loss

Financial assets-current Non-derivative financial assets mandatorily measured at fair value through profit or loss - Wealth management products(1) - Limited Partnership Fund Derivatives (not for specified hedging) - Put and call rights of convertible corporate bonds (note 19) Financial liabilities - current Held for trading Derivatives (not for specified hedging) - Currency and interest swap contracts (2)	September 30, 2021 $ 64,051 4,966 160 $ 69,177 $ -	December 31, 2020 $ 59,518 - 560 $ 60,078 $ 4,102	September 30, 2020	September 30, 2020
				$ 70,319 - 280 $ 70,599 $ 4,896

(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	September 30, 2021 2.5%`～`3.61%	December 31, 2020 2.6%`～`2.97%	September 30, 2020
			2.3%`～`3.4%

(II) On the balance sheet date, the currency and interest swap contracts not covered by hedge accounting and not yet due are as follows: (September 30, 2021: None)
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December 31, 2020

Contract amount Range of interest Range of interest ( NT$1,000) Due date rate paid rate received EUR 1,481/PLN 6,293 January 10, 2021 3.45% WIBOR3M+3% to August 9, 2023

September 30, 2020

Contract amount Range of interest Range of interest ( NT$1,000) Due date rate paid rate received EUR 1,516/PLN 6,444 October 10, 2020 3.45% WIBOR3M+3% to August 9, 2023

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

September 30, December 31, September 30, 2021 2020 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.

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9. Financial assets at amortised cost

Financial assets at amortised	cost
Non-current Restricted bank deposits	September 30, 2021 $ 14,851	December 31, 2020 $ 76	September 30, 2020
				$ 24,288

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.

Notes receivable, accounts receivable and other receivables (including those of related parties)

related parties)
Notes receivable Measured at amortized cost Total book value Accounts receivable Measured at amortized cost Total book value Less: provision for loss	September 30, 2021 $ 28,125 $ 630,811 ( 25,976) $ 604,835	December 31, 2020 $ 24,148 $ 620,953 ( 22,959) $ 597,994	September 30, 2020
	(	(	(	$ 17,118 $ 584,701 24,089) $ 560,612

(To be continued)

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(Continued)

Accounts receivable due from related parties Measured at amortized cost Total book value Less: provision for loss Other receivables Tax refund receivable Others Less: provision for loss Other receivables due from related parties Less: provision for loss	September 30, 2021 $ 37,257 ( 100) $ 37,157 $ 7,832 6,900 ( 86) $ 14,646 $ 166 - $ 166	December 31, 2020 $ 37,681 - $ 37,681 $ 10,852 11,425 - $ 22,277 $ 1,433 - $ 1,433	September 30, 2020	September 30, 2020
	( (		(	$ 49,025 - $ 49,025 $ 6,516 2,649 3) $ 9,162 $ 2,189 - $ 2,189

(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

21 -

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 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:

September 30, 2021

Not overdue Expected credit loss rate 0% Total book value $ 565,561 Provision for loss (expected credit loss during the period of existence) - Cost after amortization $ 565,561 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	Not 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
		( 1	0%`～`10% $ 68,145 2,427) $ 65,718 ~ 60 days overdue	(	5%`～`30% $ 10,288 2,064) $ 8,224 61 ~ 120 days overdue	20%`～`40% $ 3,985 ( 1,497) $ 2,488 121 ~ 150 days overdue	50%`～`100% $ 971 ( 970) $ 1 151 ~ 180 days overdue	(	100% $ 2,390 2,390) $ - 181 ~ 365 days overdue	(	100% $ 16,728 16,728) $ - More than 366 days overdue	(	$ 668,068 26,076) $ 641,992 Total
Expected credit loss rate Total book value Provision for loss (expected credit loss during the period of existence) Cost after amortization
	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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September 30, 2020

Expected credit loss rate Total book value Provision for loss (expected credit loss during the period of existence) Cost after amortization		Not 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% $ 559,115 - $ 559,115	(	0%`～`10% $ 47,786 1,270) $ 46,516	(	5%`～`30% $ 3,352 710) $ 2,642	(	20%`～`40% $ 2,014 650) $ 1,364	50%`～`100% $ 82 ( 82) $ -	(	100% $ 2,914 2,914) $ -	(	100% $ 18,463 18,463) $ -	(	$ 633,726 24,089) $ 609,637

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

Equity at beginning of period Add: impairment loss in the current period Less: actual write off in the current period Foreign currency translation difference Equity at end of period	January 1 to September 30, 2021 $ 22,959 3,622 ( 79 ) ( 426) $ 26,076	January 1 to September 30, 2020
		$ 16,126 8,220 ( 232 ) ( 25) $ 24,089

Compared with the Equity at beginning of period of the year, the total book value of accounts receivable as of September 30, 2021 and 2020 increased by NT$9,434 thousand and NT$54,740 thousand, and the loss provision increased by NT$3,117 thousand and NT$7,963 thousand.

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(II) Collection

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

follows:
Equity at beginning of period Foreign currency translation difference Equity at end of period	January 1 to September 30, 2021 $ 2,900 336 $ 3,236	January 1 to September 30, 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:

Equity at beginning of period Add: impairment loss in the current period Less: impairment loss provision (reversals) in the current period Foreign currency translation difference Equity at end of period	January 1 to September 30, 2021 $ - 87 - ( 1) $ 86	January 1 to September 30, 2020
	(	$ 49 ( 47 ) - 1 $ 3

11. Inventories

Inventories
Finished products Semi-finished products Raw materials Merchandise inventory	September 30, 2021 $ 244,482 32,185 284,993 95,450 $ 657,110	December 31, 2020 $ 210,963 26,367 248,374 56,201 $ 541,905	September 30, 2020
				$ 197,384 30,219 210,256 52,177 $ 490,036

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The inventory-related cost of goods sold from July 1 to September 30, 2021 and 2020, and from January 1 to September 30, 2021 and 2020 were NT$713,426 thousand, NT$645,280 thousand, NT$2,101,587 thousand and NT$1,721,246 thousand, respectively. The cost of goods sold including the inventory falling price losses were $1,539 thousand, $3,179 thousand, $1,584 thousand and $7,253 thousand, respectively.

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.	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	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,	Percentage of equityheld September 30,2021 December 31,2020 September 30,2020 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%	Percentage of equityheld September 30,2021 December 31,2020 September 30,2020 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%	Explan ation
			September 30,2021 100% 100% 80% 80% 96.08% 3.92% 100% 100% 100% 50.10%	December 31,2020 100% 100% 80% 80% 96.08% 3.92% 100% 100% 100% 50.10%
					- note note note - - - note - note

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		chemical
		products, and
		accessories
Shanghai C&M	Jiangsu C&M	R&D and	100%	100%	100%	note
Filtration Solutions	Filtration	manufacturing
Limited	Solutions	of filter
	Limited	materials

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

(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 by non-controlling interests September 30,2021 December 31,2020 September 30,2020 20% 20% 20% 20% 20% 20% 49.9% 49.9% 49.9%	Proportion of shares and voting rights held by non-controlling interests September 30,2021 December 31,2020 September 30,2020 20% 20% 20% 20% 20% 20% 49.9% 49.9% 49.9%
			September 30,2020
			20% 20% 49.9%

Name of subsidiary		Profit(loss)	Profit(loss)	distributed to	non-controllinginterests	non-controllinginterests	non-controllinginterests	non-controllinginterests		Non-controllinginte	Non-controllinginte	Non-controllinginte	re	sts
		July 1 to September 30,2021		July 1 to September 30,2020	January 1 to September 30,2021		January 1 to September 30,2020			September 30,2021	December 31, 2020			September 30,2020
Tex Year Vietnam Co., Ltd. Tex Year Europe Sp. z o. o. Shanghai C&M Filtration Solutions Limited Total	(	$ 317 ) 759 638 $ 1,080	(	$ 782 118 ) 4,205 $ 4,869		$ 32 563 2,840 $ 3,435		$ 1,445 620 23,608 $ 25,673		$ 16,944 32,310 89,463 $ 138,717		$ 17,462 34,379 86,720 $ 138,561		$ 18,057 32,467 88,217 $ 138,741

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The aggregate financial information of the following subsidiaries is based on the amounts before inter-company transaction cancellation: Tex Year Vietnam Co., Ltd.

Current Assets Non-current Assets Current Liabilities Equity Equity attributable to: owners of the Company Non-controlling interests	September 30, 2021 $ 115,344 11,641 ( 42,264) $ 84,721 $ 67,777 16,944 $ 84,721	December 31, 2020 $ 116,701 14,373 ( 43,765) $ 87,309 $ 69,847 17,462 $ 87,309	September 30, 2020	September 30, 2020
	(	(	(	$ 119,898 14,319 43,930) $ 90,287 $ 72,230 18,057 $ 90,287

Net profit (loss) of the current period Net (loss) profit attributable to: owners of the Company Non-controlling interests	July 1 to September 30, 2021 ($ 1,587) ( $ 1,270 ) ( 317) ($ 1,587)	July 1 to September 30, 2020 $ 3,912 $ 3,130 782 $ 3,912	January 1 to September 30, 2021 $ 158 $ 126 32 $ 158	January 1 to September 30, 2020	January 1 to September 30, 2020
	( ( ( (				$ 7,225 $ 5,780 1,445 $ 7,225

Tex Year Europe Sp. z o. o.

Current Assets Non-current Assets Current Liabilities Non-current Liabilities Equity Equity attributable to: owners of the Company Non-controlling interests	September 30, 2021 $ 188,904 112,463 ( 103,765 ) ( 36,051) $ 161,551 $ 129,241 32,310 $ 161,551	December 31, 2020 $ 129,821 129,888 ( 47,066 ) ( 40,745) $ 171,898 $ 137,519 34,379 $ 171,898	September 30, 2020
			$ 140,982 129,745 ( 67,409 ) ( 40,981) $ 162,337 $ 129,870 32,467 $ 162,337

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Net profit (loss) of the current period Profit (loss), attributable to: owners of the Company Non-controlling interests	July 1 to September 30, 2021 $ 3,797 $ 3,038 759 $ 3,797	July 1 to September 30, 2020 ($ 594) ( $ 476 ) ( 118) ($ 594)	January 1 to September 30, 2021 $ 2,816 $ 2,253 563 $ 2,816	January 1 to September 30, 2020	January 1 to September 30, 2020
		( ( ( (			$ 3,098 $ 2,478 620 $ 3,098

Shanghai C&M Filtration Solutions Limited and its subsidiaries

Shanghai C&M Filtration Solutions Limited and its subsidiaries	ies	ies	ies	ies
September 30, 2021 December 31, 2020 September 30, 2020 Current Assets $ 143,740 $ 146,596 $ 127,617 Non-current Assets 78,595 81,685 82,719 Current Liabilities ( 45,061) ( 53,096) ( 32,342) Equity $ 177,274 $ 175,185 $ 177,994 Equity attributable to: owners of the Company $ 87,811 $ 88,465 $ 89,777 Non-controlling interests 89,463 86,720 88,217 $ 177,274 $ 175,185 $ 177,994 July 1 to September 30, 2021 July 1 to September 30, 2020 January 1 to September 30, 2021 January 1 to September 30, 2020 Net profit of the current period $ 1,086 $ 8,249 $ 5,141 $ 46,774 attributable to: owners of the Company $ 448 $ 4,044 $ 2,301 $ 23,166 Non-controlling interests 638 4,205 2,840 23,608 $ 1,086 $ 8,249 $ 5,141 $ 46,774	September 30, 2020
		(	$ 127,617 82,719 32,342) $ 177,994 $ 89,777 88,217 $ 177,994 January 1 to September 30, 2020
				$ 46,774 $ 23,166 23,608 $ 46,774

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13. Investments Accounted for Using Equity Method

Investments in joint ventures

Significant joint ventures Wuxi More Tex Technology Co., Ltd. Individual non-significant joint ventures Tex Year Industrial Adhesives Pvt. Ltd. (Note)	September 30, 2021 $ 62,965 24,423 $ 87,388	December 31, 2020 $ 102,214 22,360 $ 124,574	September 30, 2020	September 30, 2020
				$ 107,644 22,023 $ 129,667

Note: The consolidated Company remitted a total of $5,757 thousand (recognized as other non-current assets) in the first three quarters of 2021 for a capital increase in proportion to its shareholding; however, the capital increase has not yet been completed because the local government has not yet approved such capital increase.

The percentage of shares and voting rights held by the consolidated Company in the 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.	September 30, 2021 50% 50%	December 31, 2020 50% 50%	September 30, 2020
			50% 50%

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(I) Significant joint ventures

Wuxi More Tex Technology Co., Ltd.

Wuxi More Tex Technology Co., Ltd.
September 30, 2021 December 31, 2020 September 30, 2020 Current Assets $ 125,730 $ 200,430 $ 228,539 Non-current Assets 43,541 47,504 51,201 Current Liabilities ( 15,035) ( 23,818) ( 63,953) Equity $ 154,236 $ 224,116 $ 215,787 Shareholding ratio of a consolidated Company 50% 50% 50% Rights and interests enjoyed by the consolidated Company $ 77,118 $ 112,058 $ 107,894 Provision of impairment loss ( 14,153 ) ( 9,522 ) - Unrealized profit and loss of side flow transactions - ( 322 ) ( 244 ) Unrealized profit and loss of downstream transactions - - ( 6) Book value of investment $ 62,965 $ 102,214 $ 107,644 July 1 to September 30, 2021 July 1 to September 30, 2020 January 1 to September 30, 2021 January 1 to September 30, 2020 Operating revenue $ 53,601 $ 113,750 $ 136,237 $ 290,186 Net profit (loss) for the year $ 326 ($ 3,362) ($ 5,538) $ 718 Total comprehensive income, net of tax $ 293 ($ 4,124) ($ 5,043) ($ 1,212)	September 30, 2020
		$ 228,539 51,201 ( 63,953) $ 215,787 50% $ 107,894 - ( 244 ) ( 6) $ 107,644 January 1 to September 30, 2020
			(	$ 290,186 $ 718 $ 1,212)

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(II) Summary information of individual non-significant joint ventures

Tex Year Industrial Adhesives Pvt. Ltd.

Share owned by a consolidated Company Net profit of continuing business units of the current year Other comprehensive income Total comprehensive income, net of tax	July 1 to September 30, 2021 $ 802 ( 65) $ 737	July 1 to September 30, 2020 $ 964 ( 128) $ 836	January 1 to September 30, 2021 $ 2,482 ( 558) $ 1,924	January 1 to September 30, 2020	January 1 to September 30, 2020
	(	(	(	( (	$ 922 1,301) $ 379)

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 September 30, 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 April 1, 2021 and September 30, 2021 and between April 1, 2020 and September 30, 2020.

The share of profit or loss and other comprehensive income generated by the joint venture or consolidated Company accounted for using the equity method are calculated based on the financial statements that a certified public accountant has not audited.

Please refer to Schedule 6 "Name, location, …. of the investee company" for the business nature, main business premises and country of incorporation of the joint ventures above, and Schedule 7 "Mainland China investment information”.

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14. Property, Plant and Equipment

Cost Balance on January 1, 2020 Addition Disposal Reclassification Net exchange differences Balance on September 30, 2020 Accumulated depreciation and impairment Balance on January 1, 2020 Disposal Depreciation expense Net exchange differences Balance on September 30, 2020 Net amount on September 30, 2020 Cost Balance on January 1, 2021 Addition Disposal Reclassification Net exchange differences Balance on September 30, 2021 Accumulated depreciation and impairment Balance on January 1, 2021 Disposal Depreciation expense Net exchange differences Balance on September 30, 2021 Net amount on September 30, 2021	S	elf-own land		Revaluation and appreciation of land	Houses and buildings	Machinery and equipment	Office equipment	Other facilities	Unfinished construction	Total
		$ 56,524 - - - ( 711) $ 55,813 $ - - - - $ - $ 55,813 $ 56,024 - - - ( 781) $ 55,243 $ - - - - $ - $ 55,243		$ 45,324 - - - - $ 45,324 $ - - - - $ - $ 45,324 $ 45,324 - - - - $ 45,324 $ - - - - $ - $ 45,324	$ 824,287 5,373 ( 400 ) 14,061 ( 8,923) $ 834,398 $ 259,330 ( 372 ) 20,790 ( 1,217) $ 278,531 $ 555,867 $ 842,002 1,915 - 2,768 ( 8,006) $ 838,679 $ 287,172 - 21,655 ( 1,025) $ 307,802 $ 530,877	$ 549,820 19,485 ( 305 ) 3,514 ( 7,422) $ 565,092 $ 219,543 ( 305 ) 34,412 ( 2,483) $ 251,167 $ 313,925 $ 579,579 12,704 ( 3,026 ) 6,213 ( 6,197) $ 589,273 $ 263,397 ( 2,246 ) 33,198 ( 2,898) $ 291,451 $ 297,822	$ 24,500 1,376 ( 309 ) - ( 106) $ 25,461 $ 18,302 ( 308 ) 2,126 ( 87) $ 20,033 $ 5,428 $ 26,135 1,790 ( 312 ) 689 ( 56) $ 28,246 $ 20,317 ( 313 ) 1,783 ( 50) $ 21,737 $ 6,509	$ 96,104 5,006 ( 98 ) 1,184 ( 960) $ 101,236 $ 68,502 ( 98 ) 5,124 ( 677) $ 72,851 $ 28,385 $ 102,553 3,014 ( 230 ) 757 ( 701) $ 105,393 $ 74,846 ( 123 ) 4,746 ( 504) $ 78,965 $ 26,428	$ 14,061 428 - ( 14,061 ) - $ 428 $ - - - - $ - $ 428 $ 473 2,901 - ( 2,768 ) ( 5) $ 601 $ - - - - $ - $ 601	$ 1,610,620 31,668 ( 1,112 ) 4,698 ( 18,122) $ 1,627,752 $ 565,677 ( 1,083 ) 62,452 ( 4,464) $ 622,582 $ 1,005,170 $ 1,652,090 22,324 ( 3,568 ) 7,659 ( 15,746) $ 1,662,759 $ 645,732 ( 2,682 ) 61,382 ( 4,477) $ 699,955 $ 962,804

There is no sign of impairment in the assessment of the consolidated companies from January 1 to September 30 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 useful life:

useful 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

Right-of-use assets
September 30, 2021 December 31, 2020 September 30, 2020 Book value of right-of-use assets Land $ 66,523 $ 68,206 $ 67,663 Buildings 2,117 1,668 1,290 Transportation equipment 1,239 2,550 3,227 Other equipment 386 519 563 $ 70,265 $ 72,943 $ 72,743 July 1 to September 30, 2021 July 1 to September 30, 2020 January 1 to September 30, 2021 January 1 to September 30, 2020 Addition of right-of-use assets $ 1,968 $ 784 Depreciation expense of right-of-use assets Land use rights $ 441 $ 435 $ 1,328 $ 1,309 Buildings 487 417 1,492 1,523 Transportation equipment 314 765 1,305 2,398 Other equipment 45 45 134 136 $ 1,287 $ 1,662 $ 4,259 $ 5,366	September 30, 2020
		$ 67,663 1,290 3,227 563 $ 72,743 January 1 to September 30, 2020
			$ 784 $ 1,309 1,523 2,398 136 $ 5,366

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(II) Lease liabilities

Lease liabilities
Book value of lease liabilities Current Non-current	September 30, 2021 $ 2,421 $ 993	December 31, 2020 $ 2,848 $ 1,496	September 30, 2020
				$ 2,976 $ 1,695

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

Buildings Transportation equipment Other equipment	September 30, 2021 1.55%`～`3.08% 1.55%`～`3.08% 1.45%	December 31, 2020 1.55%`～`3.08% 1.55%`～`3.08% 1.45%	September 30, 2020
			1.55%`～`3.08% 1.55%`～`3.08% 1.45%

(III) Other lease information

Short term rental expenses Total cash (outflow) from lease	July 1 to September 30, 2021 $ 4,142	July 1 to September 30, 2020 $ 3,797	January 1 to September 30, 2021 $ 11,914 ($ 14,992)	January 1 to September 30, 2020	January 1 to September 30, 2020
			(	(	$ 10,404 $ 14,530)

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.

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16. Intangible assets

ngible assets
Cost Balance on January 1, 2020 Acquisition Net exchange differences Balance on September 30, 2020 Accumulated depreciation and impairment Balance on January 1, 2020 Amortization expenses Net exchange differences Balance on September 30, 2020 Net amount on September 30, 2020 Cost Balance on January 1, 2021 Acquisition Net exchange differences Balance on September 30, 2021 Accumulated depreciation and impairment Balance on January 1, 2021 Amortization expenses Net exchange differences Balance on September 30, 2021 Net amount on September 30, 2021		Patents $ 29,201 - 296) $ 28,905 $ 11,928 3,315 114) $ 15,129 $ 13,776 $ 29,238 - 145) $ 29,093 $ 16,382 3,363 100) $ 19,645 $ 9,448	Computer software $ 26,318 476 ( 117) $ 26,677 $ 21,040 1,386 ( 116) $ 22,310 $ 4,367 $ 30,291 272 ( 126) $ 30,437 $ 22,762 1,621 ( 126) $ 24,257 $ 6,180		Total
	( ( ( (		( ( ( (	( ( ( (	$ 55,519 476 413) $ 55,582 $ 32,968 4,701 230) $ 37,439 $ 18,143 $ 59,529 272 271) $ 59,530 $ 39,144 4,984 226) $ 43,902 $ 15,628

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Amortization expenses are accrued on a straight-line basis based on the following useful life:

Patents 5 to 20 years Computer software 2 to 8 years

As of September 30, 2021, the net value of the patents for manufacturing filter materials held by the consolidated Company is NT$2,582 thousand, which will be amortized within 0.75 year.

17. Other assets

Other assets
Other prepaid expenses Prepayments to suppliers Business tax carry forward Guarantee deposits paid Prepayments for investments Long-term prepaid expenses Provisional payment Others Current Non-current	September 30, 2021 $ 47,037 20,032 19,744 7,924 5,757 4,924 2,484 8,837 $ 116,739 $ 98,134 18,605 $ 116,739	December 31, 2020 $ 17,799 16,548 28,949 5,296 - 8,363 2,736 4,781 $ 84,472 $ 70,813 13,659 $ 84,472	September 30, 2020
				$ 16,358 12,770 27,358 8,101 - 5,683 2,497 9,758 $ 82,525 $ 68,741 13,784 $ 82,525

18. Borrowings

(I) Short-term borrowings

Short-term borrowings
Secured loans(note 33) Bank loans Unsecured loans Credit loans Borrowing rates	September 30, 2021 $ 73,107 602,356 $ 675,463 September 30, 2021 1.00%`～`4.15%	December 31, 2020 $ - 356,408 $ 356,408 December 31, 2020 0.98%`～`4.385%	September 30, 2020
			$ - 398,360 $ 398,360 September 30, 2020
			0.95%`～`4.50%

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(II) Non-current portion of non-current borrowings

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 Credit loans from Export-Import Bank of the Republic of China (11) Hua Nan Bank credit loan (12) Subtotal Less: due within one year Non-current portion of non-current borrowings	September 30, 2021 $ - 18,158 9,375 13,699 56,250 37,500 37,500 37,805 16,875 52,674 279,836 16,063 40,000 56,063 335,899 (104,817) $ 231,082	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	September 30, 2020	September 30, 2020
	(	(	(	$14,250 35,464 10,000 21,491 60,000 40,000 40,000 44,507 18,000 60,000 343,712 22,488 40,000 62,488 406,200 68,025) $ 338,175

(1) The loan period is from September 29, 2016 to September 28, 2021. Starting from March 2018, the loan is offered on a 6-monthly basis for a total of 8 installments. The loan was fully repaid in September 2021. The principal and interest were amortized according to the average method.

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As of December 31 and September 30, 2020, the effective annual interest rate was all 1.2386%.

(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 September 30, 2021, and December 31 and September 30, 2020, the effective annual interest rates were 1.3%, 1.4% and 1.4%.
(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 September 30, 2021, and December 31 and September 30, 2020, the effective annual interest rate was 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 September 30, 2021, and December 31 and September 30, 2020, the effective annual interest rates were 1.3%, 1.4% and 1.4%.
(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 September 30, 2021, and December 31 and September 30, 2020, the effective annual interest rate was 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 September 30, 2021, and December 31 and September 30, 2020, the effective annual interest rate was 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.
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As of September 30, 2021, and December 31 and September 30, 2020, the effective annual interest rate was all 1.25%.

(8) The period is from 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 September 30, 2021, and December 31 and September 30, 2020, the effective annual interest rates were 4.72%, 4.7% and 4.35%.
(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 September 30, 2021, and December 31 and September 30, 2020, the effective annual interest rate was all 1.25%.
(10) The period is from March 30, 2020 to March 30, 2025. From April 2021, each month is one period, for a total of 48 periods. The principal and interest are amortized according to the average method. As of September 30, 2021, and December 31 and September 30, 2020, the effective annual interest rates were 1.3%, 1.4% and 1.4%.
(11) The period is from February 26, 2019 to February 25, 2024. From August 2020, every six months is one period, for a total of 8 periods. The principal and interest are amortized according to the average method. As of September 30, 2021, and December 31 and September 30, 2020, the effective annual interest rates were 1.235%, 1.2356% and 1.4725%.
(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 September 30, 2021, and December 31 and September 30, 2020, the effective annual interest rate was all 1.12%.
The consolidated Company has provided part of the land, houses,
buildings and inventories as collateral. Please refer to Notes 14 and 33.
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19. Corporate Bonds Payable

Corporate Bonds Payable
Domestic secured convertible corporate bonds Domestic unsecured convertible corporate bonds Less: convertible bond discounts	September 30, 2021 $ 200,000 33,700 233,700 ( 8,234) $ 225,466	December 31, 2020 $ 200,000 72,900 272,900 ( 11,818) $ 261,082	September 30, 2020
	(	(	(	$ 200,000 89,900 289,900 13,407) $ 276,493

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

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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.

The consolidated Company provides a demand deposit of NT$200,000 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

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of the Company, the subsequent conversion price shall be adjusted in accordance with the pricing model prescribed in the conversion method.

Due to the ex-right and ex-dividend operations of the Company in 2021 and 2020, the conversion prices of the second secured and third unsecured convertible bonds have been adjusted to $15.4 and $14.0, respectively, effective on July 27, 2020, the ex-dividend date in accordance with the issuance rules; the conversion prices have been adjusted again to $14.7 and $13.4, respectively, effective on the ex-rights date of September 15, 2021.

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 surplus - 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:

Component of liabilities at the beginning of the period Interest calculated at an effective interest rate in the current period Conversion of corporate bond payable into common shares Component of liabilities at the end of the period	January 1, 2021 to September 30, 2021 $ 261,082 2,451 ( 38,067) $ 225,466	January 1, to September 30, 2020	January 1, to September 30, 2020
	(	(	$ 283,058 3,058 9,623) $ 276,493

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The changes in the put/call derivatives are as follows:

Equity at beginning of period Gain (loss) from changes in fair value Equity at end of period	January 1, 2021 to September 30, 2021 $ 560 ( 400) $ 160	January 1, to September 30, 2020	January 1, to September 30, 2020
	(		$ - 280 $ 280

The change of conversion right (under additional Capital surplus) of the equity component is as follows:

equity component is as follows:
Equity at beginning of period Conversion of corporate bond payable into common shares Equity at end of period	January 1, 2021 to September 30, 2021 $ 11,661 ( 1,579) $ 10,082	January 1, to September 30, 2020
	(	(	$ 12,753 407) $ 12,346

As of September 30, 2021, the total face value of the third domestic unsecured convertible corporate bond that the holders have exercised the conversion right is NT$66,300 thousand. 4,721,196 shares of common stock of the Company were converted into, and NT$16,889 thousand of the capital surplus was recognized.

20. Notes Payable and Accounts Payable

Notes Payable and Accounts	Payable
Accounts payable Arising from business Accounts payable to related parties Arising from business	September 30, 2021 $ 282,748 $ -	December 31, 2020 $ 392,391 $ 26,942	September 30, 2020
				$ 295,454 $ 41,626

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21. Other Liabilities

Other Liabilities
Current Other payables Estimated expenses payable Wages and salaries payable Bonus payable Leave payment payable Payable on machinery and equipment Remuneration payable to employees, directors and supervisors Dividend payable Other accrued expenses Other liabilities Contractual liabilities Receipts under custody Deferred government subsidy income Others Non-current Other liabilities Guarantee deposits received Others	September 30, 2021 $ 25,122 23,724 20,582 8,520 4,959 1,379 - 27,376 $ 111,662 $ 45,254 957 - 17,063 $ 63,274 $ 560 2,343 $ 2,903	December 31, 2020 $ 27,655 29,986 37,081 6,737 4,018 6,673 1,996 40,405 $ 154,551 $ 22,963 724 - 9,678 $ 33,365 $ 240 875 $ 1,115	September 30, 2020
				$ 24,151 25,728 21,275 6,864 2,578 4,020 - 31,072 $ 115,688 $ 28,999 679 362 10,673 $ 40,713 $ 240 914 $ 1,154

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22. Current provisions

ent provisions	ent provisions
September 30, 2021 December 31, 2020 September 30, 2020 Warranty $ 1,246 $ 1,046 $ 1,305 January 1, 2021 to September 30, 2021 January 1, to September 30, 2020 Equity at beginning of period $ 1,046 $ 1,665 Provision (reversal) for the current period 200 ( 360) Equity at end of period $ 1,246 $ 1,305		September 30, 2020
	(		$ 1,665 360) $ 1,305

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.

Post-Employment 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.

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(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 cost of pensions related to defined benefit plans recognized from July 1 to September 30, 2021 and 2020 from January 1 to September 30, 2021 and 2020 are based on the pension cost rate by actuarial calculation on December 31, 2020 and 2019, and the amounts were NT$202 thousand, NT$282 thousand, NT$606 thousand and NT$847 thousand, respectively.

24. Equity

(I) Share capital

1. 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	September 30, 2021 150,000 $ 1,500,000 93,386 $ 933,857	December 31, 2020 150,000 $ 1,500,000 89,386 $ 898,857	September 30, 2020
				150,000 $ 1,500,000 89,386 $ 893,857

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

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Certificate of entitlement to new shares from convertible bond

September 30, 2021 Number of shares converted but not yet registered for change (1000 shares) 15 Share capital converted but not yet registered for change $ 150 ock dividends to be distributed September 30, 2021 Number of shares for which the base date has passed but not yet registered for change (1000 shares) 4,532 Share capital for which the base date has passed but not yet registered for change $ 45,321	December 31, 2020 1,214 $ 12,143 December 31, 2020 - $ -	September 30, 2020	September 30, 2020
		- $ - September 30, 2020
			- $ -

Stock dividends to be distributed
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(II) Additional Capital surplus

Can be used to cover losses, issue cash or supplement share capital(1) Premium from share issuance 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	September 30, 2021 $ 22,142 20,070 29 6,307 10,082 $ 58,630	December 31, 2020 $ 22,142 8,431 29 6,307 11,661 $ 48,570	September 30, 2020	September 30, 2020
				$ 22,142 3,477 29 6,307 12,346 $ 44,301

Capital surplus - 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 surplus 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

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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 unappropriated retained 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 employee’s remuneration and directors’ and supervisors’ remuneration for the distribution policy of employee’s 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 held general shareholders’ meetings on July 26, 2021 and June 16, 2020, and passed the 2020 and 2019 earnings distribution proposals respectively as follows:

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Legal reserve Special reserve Stock dividend Dividend per share (NT$)		2020 $ 6,666 $ 15,553 $ 45,321 $ 0.5		2019
				$ 4,418 $ 40,395 $ - $ -

On June 16, 2020, the shareholders' meeting of the Company resolved to distribute cash dividends at NT$0.3 per share from the additional paid-in capital surplus in excess of the par value of common shares, for a total of NT$26,753 thousand.

The Company’s general shareholders’ meeting on July 26, 2021 passed the resolution of 4,532,144 new shares for free allotment, which became effective on July 30, 2021 through public announcement and reported to the FSC. It was approved by the board meeting on August 11, 2021. The ex-date of the resolution was September 15, 2021, and the registration of the change was completed on October 13, 2021. The rights and obligations of this issuance of new shares are the same as those of the original common shares.

Revenue

Revenue
Revenue from Sales of Goods	July 1 to September 30, 2021		July 1 to September 30, 2020 $ 852,041	January 1 to September 30, 2021		January 1 to September 30, 2020 $ 2,231,648
		$ 879,613			$ 2,573,068		$ 2,231,648

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

Interest income
July 1 to September 30, 2021 Bank deposits and wealth management products $ 210 Others - Total $ 210 Other income July 1 to September 30, 2021 Government subsidy income $ 869 Management and technical service fee income 275 Rent income 27 Incentive income - Others 599 Total $ 1,770 Other benefits and (loss) July 1 to September 30, 2021 Loss on financial assets/liabilities at fair value through profit or loss ( $ 55 ) Gain (loss) on disposal of property, plant and equipment 49 Total ($ 6) Finance costs July 1 to September 30, 2021 Interest on bank loans $ 3031 Interest on lease liabilities 51 Interest on convertible bonds (note 19) 766 Total $ 3,848	July 1 to September 30, 2020 $ 166 154 $ 320 July 1 to September 30, 2020 $ 1,122 2,644 202 - 1,175 $ 5,143 July 1 to September 30, 2020	January 1 to September 30, 2021 $ 681 35 $ 716 January 1 to September 30, 2021 $ 9,691 905 80 1,775 2,243 $ 14,694 January 1 to September 30, 2021 ( $ 1,243 ) 49 ($ 1,194) January 1 to September 30, 2021 $ 7,238 212 2,451 $ 9,901	January 1 to September 30, 2020
			$ 942 473 $ 1,415 January 1 to September 30, 2020
			$ 9,008 7,092 532 3,078 3,584 $ 23,294 January 1 to September 30, 2020
	( $ 805 ) 1 ($ 804) July 1 to September 30, 2020 $ 2,673 40 1,011 $ 3,724		( $ 2,759 ) ( 27) ($ 2,786) January 1 to September 30, 2020
				$ 8,819 125 3,058 $ 12,002

(II) Other income

(III) Other benefits and (loss)

(IV) Finance costs

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(V) 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	July 1 to September 30, 2021 $ 20,462 1,642 386 1,287 $ 23,777 $ 16,467 5,282 $ 21,749 $ 293 1,735 $ 2,028	July 1 to September 30, 2020 $ 21,098 1,613 931 1,662 $ 25,304 $ 17,061 5,699 $ 22,760 $ 847 1,697 $ 2,544	January 1 to September 30, 2021 $ 61,382 4,984 1,231 4,259 $ 71,856 $ 49,222 16,419 $ 65,641 $ 1,197 5,018 $ 6,215	January 1 to September 30, 2020	January 1 to September 30, 2020
					$ 62,452 4,701 2,897 5,366 $ 75,416 $ 50,181 17,637 $ 67,818 $ 1,975 5,623 $ 7,598

(VI) Employee benefits expenses

Short-term employee benefits Salary expense Labor and national health insurance expenses Post-employment benefits (note 23) Defined contribution plans Defined benefit plan Other employee benefits Total Employee benefits expenses	July 1 to September 30, 2021 $ 81,859 10,100 91,959 5,792 202 5,994 5,581 $ 103,534	July 1 to September 30, 2020 $ 93,570 6,556 100,126 3,269 282 3,551 4,796 $ 108,473	January 1 to September 30, 2021 $ 248,691 30,062 278,753 17,006 606 17,612 15,710 $ 312,075	January 1 to September 30, 2020	January 1 to September 30, 2020
					$ 248,427 18,795 267,222 9,954 847 10,801 13,411 $ 291,434

(To be continued)

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(Continued)

ed)
Summary by function Operating costs Operating expenses	July 1 to September 30, 2021		July 1 to September 30, 2020 $ 34,756 73,717 $ 108,473	January 1 to September 30, 2021 $ 100,745 211,330 $ 312,075	January 1 to September 30, 2020
		$ 31,768 71,766 $ 103,534				$ 95,829 195,605 $ 291,434

(VII) Employee’s 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 directors’ and supervisors’ remuneration,

the Company allocates 1% to 10% as the employee’s remuneration and no

more than 3% as the directors’ and supervisors’ remuneration after making

up the losses. The estimated remuneration of employees and remuneration of directors and supervisors for the periods from July 1 to September 30, 2021 and 2020 and from January 1 to September 30, 2021 and 2020 are as follows:

Estimated proportion

Estimated proportion	Estimated proportion
Employees’ remuneration Directors’ and supervisors’ remuneration Amount July 1 to September 30, 2021 Employees’ remuneration $ 633 Directors’ and supervisors’ remuneration $ 211		January 1 to September 30, 2021 January 1 to September 30, 2020 6% 6% 2% 2% July 1 to September 30, 2020 January 1 to September 30, 2021 January 1 to September 30, 2020 $ 3,015 $ 1,034 $ 3,015 $ 1,005 $ 345 $ 1,005	January 1 to September 30, 2020
		6% 2% July 1 to September 30, 2020 $ 3,015 $ 1,005		6% 2% January 1 to September 30, 2020
	$ 633 $ 211				$ 3,015 $ 1,005

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 Directors’ and supervisors’ remuneration	Cash	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 profit and loss

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

Income tax of the current period Generated in the current period Levy on Unappropriate d retained earnings Adjustment for previous years Deferred income tax Generated in the current period Adjustment for previous years Income tax expenses recognized in profit or loss	July 1 to September 30, 2021	July 1 to September 30, 2021	July 1 to September 30, 2020 $ 12,801 - - 12,801 5,779 2 5,781 $ 18,582	January 1 to September 30, 2021 $ 21,930 44 ( 196) 21,778 ( 12,475 ) ( 770) ( 13,245) $ 8,533	January 1 to September 30, 2020	January 1 to September 30, 2020
		$ 4,879 - - 4,879 228 - 228 $ 5,107		( ( ( (	( (	$ 28,741 - 8,737) 20,004 11,122 2,758) 8,364 $ 28,368

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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	July 1 to September 30, 2021 ($ 2,345)	July 1 to September 30, 2020 $ 2,392	January 1 to September 30, 2021 ($ 3,237)	January 1 to September 30, 2020	January 1 to September 30, 2020
	(		(	(	$ 4,324)

(III) Verification of income tax

The filings made by the Company up to FY2018 were approved by the tax collection authorities.

28. Earnings Per Share

nings Per Share
Basic earnings per share Diluted earnings per share	July 1 to September 30, 2021 $ 0.07 $ 0.06	July 1 to September 30, 2020 $ 0.40 $ 0.33	Unit: NT$ per share January 1 to September 30, 2021 January 1 to September 30, 2020 $ 0.16 $ 0.46 $ 0.15 $ 0.41

The effect of the stock dividend distribution has been adjusted retrospectively in calculating earnings per share. The base date for this stock dividend distribution is set on September 15, 2021. As a result of retrospective adjustments, the basic and diluted earnings per share from July 1 to September 30 and from January 1 to September 30, 2020 have changed to:

Basic earnings per share Diluted earnings per share	Before the retrospective adjustment July 1 to September 30, 2020 January 1 to September 30, 2020 $ 0.42 $ 0.48 $ 0.35 $ 0.42	Before the retrospective adjustment July 1 to September 30, 2020 January 1 to September 30, 2020 $ 0.42 $ 0.48 $ 0.35 $ 0.42	Unit: NT$ per share After the retrospective adjustment July 1 to September 30, 2020 January 1 to September 30, 2020 $ 0.40 $ 0.46 $ 0.33 $ 0.41	Unit: NT$ per share After the retrospective adjustment July 1 to September 30, 2020 January 1 to September 30, 2020 $ 0.40 $ 0.46 $ 0.33 $ 0.41
	July 1 to September 30, 2020 $ 0.42 $ 0.35		July 1 to September 30, 2020 $ 0.40 $ 0.33

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

Net profit of the current period

Net profit attributable to owners of the Company Net profit used to calculate basic earnings per share After-tax interest of convertible bonds After-tax evaluation loss of convertible bond put/call rights Net profit used to calculate diluted earnings per share Number of shares Weighted average number of common shares used to calculate basic earnings 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 per share	July 1 to September 30, 2021 $ 6,681 $ 6,681 613 24 $ 7,318 July 1 to September 30, 2021 97,918 18,283 70 116,271	July 1 to September 30, 2020 $ 37,200 $ 37,200 809 - $ 38,009 July 1 to September 30, 2020 93,918 19,423 227 113,568	January 1 to September 30, 2021 January 1 to September 30, 2020 $ 15,375 $ 43,001 $ 15,375 $ 43,001 1,961 2,446 320 - $ 17,656 $ 45,447 Unit: 1,000 shares January 1 to September 30, 2021 January 1 to September 30, 2020 96,967 93,677 17,313 17,917 167 325 114,447 111,919

Suppose the consolidated Company has the option to pay employees’ remuneration in shares or cash. In that case, the calculation of diluted earnings per share is based on the assumption that the employees’ 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

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common shares are diluted. When calculating the diluted earnings per share before the issuance of employees’ remuneration shares in the next annual resolution, the dilution effect of such potential common shares shall also be considered.

29. Government Subsidy

In May 2020 and 2021, due to the implementation of the R&D and innovation projects commissioned by the Ministry of Economic Affairs, the Company received subsidies of NT$5,900 thousand and NT$13,720 thousand respectively based on the subsidy approval letters of the Taiwan Small and Medium Enterprise Counseling Foundation referenced Ji No. 1070001330B and the Institute for Information Industry referenced Zi-Chi No. 1090006916. The amount was recognized as deferred government subsidy revenue and recognized as revenue based on the actual contribution to the plan. $6,711 thousand and $5,546 thousand of subsidy revenue were recognized from January 1, 2021 and September 30, 2020, respectively; and $675 thousand of the remaining balance for the plan was returned on August 20, 2021.

30. Capital Risk Management

The purpose of the consolidated Company’s capital management policy is to protect the consolidated Company’s ability to continue as a going concern in order to provide returns to 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 expenses, debt repayment and dividend expenditure in the next 12 months. The consolidated Company is not subject to other external capital requirements.

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31. Financial Instruments

(I) Fair value information - financial instruments not measured at fair value September 30, 2021

September 30, 2021
Financial liability Financial liabilities measured at amortized cost - Second domestic secured convertible corporate bond - Third domestic unsecured convertible corporate bond December 31, 2020 Financial liability Financial liabilities measured at amortized cost - Second domestic secured convertible corporate bond - Third domestic unsecured convertible corporate bond September 30, 2020 Financial liability Financial liabilities measured at amortized cost - Second domestic secured convertible corporate bond - Third domestic unsecured convertible corporate bond	Carrying amount		Fair value
		Level 1	Level 2	Level 3	Total
	$ 192,438 33,028 $ 225,466 Carrying amount	$ - - $ -			$ 226,090 38,033 $ 264,123
		Level 1	Level 2	Level 3	Total
	$ 190,638 70,444 $ 261,082 Carrying amount	$ - - $ -			$ 223,629 85,243 $ 308,872
		Level 1	Level 2	Level 3	Total
	$ 190,034 86,459 $ 276,493	$ - - $ -	$ 206,446 89,754 $ 296,200	$ - - $ -	$ 206,446 89,754 $ 296,200

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

September 30, 2021

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Financial assets at fair value through profit or loss Wealth management products Limited Partnership Fund Derivatives December 31, 2020 Financial assets at fair value through profit or loss Wealth management products Derivatives Financial liabilities at fair value through profit or loss Derivatives September 30, 2020 Financial assets at fair value through profit or loss Wealth management products Derivatives Financial assets at fair value through other comprehensive income Equity instrument investment - Domestic unlisted (non-OTC) shares Financial liabilities at fair value through profit or loss Derivatives		Level 1 $ - - - $ - Level 1 $ - - $ - $ - Level 1 $ - - $ - $ - $ -		Level 2 $ 64,051 - - $ 64,051 Level 2 $ 59,518 - $ 59,518 $ 4,102 Level 2 $ 70,319 - $ 70,319 $ - $ 4,896		Level 3 $ - 4,966 160 $ 5,126 Level 3 $ - 560 $ 560 $ - Level 3 $ - 280 $ 280 $ 3,586 $ -		Total
								$ 64,051 4,966 160 $ 69,177 Total
								$ 59,518 560 $ 60,078 $ 4,102 Total
								$ 70,319 280 $ 70,599 $ 3,586 $ 4,896

There was no transfer between level 1 and level 2 fair value measurements from January 1 to September 30 in 2021 and 2020.

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Adjustment of financial instruments measured at level 3 fair value January 1 to September 30, 2021

Financial asset Equity at beginning of period Recognized in profit or loss Purchase Equity at end of period	Measured at fair value through profit or loss Derivatives Limited PartnershipFund $ 560 $ - ( 400 ) ( 34 ) - 5,000 $ 160 $ 4,966	Measured at fair value through profit or loss Derivatives Limited PartnershipFund $ 560 $ - ( 400 ) ( 34 ) - 5,000 $ 160 $ 4,966	Measured at fair value through profit or loss Derivatives Limited PartnershipFund $ 560 $ - ( 400 ) ( 34 ) - 5,000 $ 160 $ 4,966	Through other comprehensive income Financial assets measured at fair value	Through other comprehensive income Financial assets measured at fair value
		Derivatives $ 560 400 ) - $ 160		Equityinstrument
	(		(		$ - - - $ -

January 1 to September 30, 2020

Financial asset Equity at beginning of period Recognized in profit or loss Equity at end of period	Measured at fair value through profit or loss Derivatives Limited PartnershipFund $ - $ - 280 - $ 280 $ -	Measured at fair value through profit or loss Derivatives Limited PartnershipFund $ - $ - 280 - $ 280 $ -	Measured at fair value through profit or loss Derivatives Limited PartnershipFund $ - $ - 280 - $ 280 $ -	Through other comprehensive income Financial assets measured at fair value	Through other comprehensive income Financial assets measured at fair value
		Derivatives $ - 280 $ 280		Equityinstrument
					$ 3,586 - $ 3,586

The valuation techniques and inputs for Level 2 fair value measurement

Types of financial instruments Valuation techni ues and in ut value q p Wealth management Cash flow discount method: discount products according to the discount rate reflecting the final return rate of the financial product issuer. Derivatives - exchange Cash flow discount method: estimate the rate and interest rate future cash flow according to the swap contracts observable 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

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reflect the credit risk of each counterparty.

The valuation technique 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 asset-based approach. 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.
- (3) The limited partnership funds are measured under the asset-based approach. The fair value thereof is determined based on the most recent net worth and observable financial position and overview of the business of the investment targets. 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 profit or loss Financial assets at amortised cost (note 1)	September 30, 2021 $ 69,177 1,084,581	December 31, 2020 $ 60,078 1,101,501	September 30, 2020
			$ 70,599 1,042,286

(To be continued)

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(Continued)

Financial assets at fair value through other comprehensive income - investments in equity instruments Financial liability Measured at fair value through profit or loss Measured at amortized cost (note 2)	September 30, 2021 $ - - 1,631,238	December 31, 2020 $ - 4,102 1,591,130	September 30, 2020
			$ 3,586 4,896 1,533,821

Note 1: Balance refers to financial assets measured at amortized cost, including cash and cash equivalents,financial assets at amortised cost, notes receivable, accounts receivable (including those of related parties), other receivables (including those of related parties, excluding tax refunds receivable) and refundable deposits.
Note 2: The balance includes short-term borrowings, accounts payable (including those of related parties), other payables, Bonds payable and Non-current portion of non-current borrowings (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
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(including exchange rate risk and interest rate risk), credit risk and liquidity risk.

1. 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

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

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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 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 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 September 30, 2021 $ 2,373	January 1 to September 30, 2020
		$ 3,396

Note: It mainly comes from the consolidated Company’s cash and cash equivalents, accounts receivable, other receivables, short-term borrowings, accounts payable and other payables 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

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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:

Interest rate risks with fair value - Financial assets - Financial liabilities Interest rate risks with cash flow - Financial assets - Financial liabilities	September 30, 2021 $ 7,293 804,819 390,095 435,423	December 31, 2020 $ 4,316 588,436 413,299 463,164	September 30, 2020
			$ 4,254 604,164 396,155 481,560

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 September 30, 2021 will decrease/increase by NT$34 thousand; the pre-tax net profit from January 1 to September 30, 2020 will increase/decrease by NT$64 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

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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 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.

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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 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.

September 30, 2021

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
		$ 164,205 310 - 559,861 $ 724,376		$ 161,168 536 61,855 - $ 223,559		$ 76,943 1,762 204,341 42,930 $ 325,976		$ 573 1,005 155,127 233,700 $ 390,405		$ - - 91,378 - $ 91,378		$ 402,889 3,613 512,701 836,491 $ 1,755,694

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December 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
		$ 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

September 30, 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
		$ 236,977 423 - 335,672 $ 573,072		$ 160,746 777 60,909 - $ 222,432		$ 59,956 1,942 90,070 - $ 151,968		$ 3,639 1,731 248,225 289,900 $ 543,495		$ - - 111,813 - $ 111,813		$ 461,318 4,873 511,017 625,572 $ 1,602,780

(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. (September 30, 2021: None)

December 31, 2020

Net settlement Exchange rate swap	On demand or less than 1 month	On demand or less than 1 month		1 ~ 3 months	3 months ~ 1year	3 months ~ 1year	1 ~ 5years	1 ~ 5years	More than 5 years	More than 5 years
	(	$ 33 )	(	$ 66 )	(	$ 295 )	(	$ 3,708 )		$ -

September 30, 2020

Net settlement Exchange rate swap	On demand or less than 1 month	On demand or less than 1 month		1 ~ 3 months	3 months ~ 1year	3 months ~ 1year	1 ~ 5years	1 ~ 5years	More than 5 years	More than 5 years
	(	$ 38 )	(	$ 77 )	(	$ 344 )	(	$ 4,437 )		$ -

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(3) Credit facilities

Credit facilities
Short-term bank credit facilities - Amount used - Amount unused	September 30, 2021 $ 890,931 611,036 $ 1,501,967	December 31, 2020 $ 628,271 368,810 $ 997,081	September 30, 2020
				$ 583,025 436,931 $ 1,019,956

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:

(I) Name and relationship of related parties

Relationship with the consolidated Name of related art Com an p y p y Adhesive Technologies, Inc. Corporate director of the Company （ Adhesive Technologies ） Wuxi More Tex Technology Co., Joint venture Ltd. Tex Year Industrial Adhesives Pvt. Joint venture Ltd. （ Tex Year Industrial Adhesives ） Wood Glue Industrial Co., Ltd. The chairman of the company is a (Wood Glue) director of this Company. Huihong Petrochemical Co., Ltd The chairman of the company is the spouse of a director of this Company JPT Cooperation (JPT) The Chairman of the company is a director of this Company (become a non-related party since July 1, 2020) Tex Year Social Welfare Association Other related parties Taicera Enterprise Company The chairman of the company is a （ Taicera ） director of this Company.

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(II) Operating revenue

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 the company is a director of this Company. The chairman of the company is the spouse of a director of this Company Other related parties		July 1 to September 30,2021 $ 19,156 3,652 - 24 - - $ 22,832		July 1 to September 30,2020 $ 38,851 4,336 234 - - - $ 43,421	January 1 to September 30,2021 $ 57,569 11,218 - 174 6 1 $ 68,968	January 1 to September 30,2020	January 1 to September 30,2020
								$ 81,026 10,972 1,198 - - - $ 93,196

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 relatedparty Joint venture Wuxi More Tex Technology Co., Ltd. The chairman of the company is a director of this Company. Wood Glue Industrial Co., Ltd. JPT Cooperation	July 1 to September 30, 2021 $ - - - $ -	July 1 to September 30, 2020 $ 59,524 - - $ 59,524	January 1 to September 30, 2021 $ - 74 - $ 74	January 1 to September 30, 2020
					$ 158,129 37 4 $ 158,170

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

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(IV) Receivables from related parties

Account items Accounts receivable - Related parties	Category/name of relatedparty Corporate director of the Company Adhesive Technologies Joint venture Tex Year Industrial Adhesives Wuxi More Tex Technology Co., Ltd.	September 30, 2021 $ 31,286 5,871 - $ 37,157	December 31, 2020 $ 29,838 7,843 - $ 37,681	September 30, 2020	September 30, 2020
					$ 44,517 4,270 238 $ 49,025

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

Payables to	related parties
Account items Accounts payable - Related parties	Category/name of relatedparty Joint venture Wuxi More Tex Technology Co., Ltd.	September 30, 2021 $ -	December 31, 2020 $ 26,942	September 30, 2020
					$ 41,626

The consolidated Company purchases goods from the joint venture related parties, with payment terms of 90 days T/T remittance upon delivery.

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

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(VI) Others

The balance of other receivables from related parties on the balance sheet date is as follows:

sheet date is as follows:
Category/name of relatedparty September 30, 2021 December 31, 2020 September 30, 2020 Joint venture Wuxi More Tex Technology Co., Ltd. $ - $ 703 $ 1,613 Tex Year Industrial Adhesives 166 730 576 $ 166 $ 1,433 $ 2,189 Other receivables refer to the funds and advances for technical management services provided by the consolidated Company. Income from management and technical service fees (listed under other income): Category/name of relatedparty July 1 to September 30, 2021 July 1 to September 30, 2020 January 1 to September 30, 2021 January 1 to September 30, 2020 Joint venture Wuxi More Tex Technology Co., Ltd. $ - $ 1,719 $ - $ 4,657 Tex Year Industrial Adhesives 275 416 905 906 $ 275 $ 2,135 $ 905 $ 5,563 Operating expenses: Category/name of relatedparty July 1 to September 30, 2021 July 1 to September 30, 2020 January 1 to September 30, 2021 January 1 to September 30, 2020 Joint venture Wuxi More Tex Technology Co., Ltd. $ 159 $ 144 $ 481 $ 440	September 30, 2020
		$ 4,657 906 $ 5,563 January 1 to September 30, 2020
			$ 440

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

Income from management and technical service fees (listed under other income):

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(VII) Rewards to key management

Short-term employee benefits Post-employment benefits	July 1 to September 30, 2021 $ 4,908 361 $ 5,269	July 1 to September 30, 2020 $ 7,039 347 $ 7,386	January 1 to September 30, 2021 $ 13,490 1,067 $ 14,557	January 1 to September 30, 2020	January 1 to September 30, 2020
					$ 14,824 1,040 $ 15,864

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 structures - net Inventories Demand deposits (financial assets measured at cost after amortization – non-current)	September 30, 2021 $ 100,567 464,850 52,307 - $ 617,724	December 31, 2020 $ 101,348 391,793 39,510 - $ 532,651	September 30, 2020	September 30, 2020
				$ 101,137 485,983 - 20,000 $ 607,120

Significant contingent liabilities and unrecognized contractual commitments

Except for those stated in other notes, the material commitments and contingencies of the consolidated Company on the balance sheet date are as follows:

(I) Amount of unused letter of credit opened:

NTD USD JPY EUR	September 30, 2021 $ 23,688 581 - -	December 31, 2020 $ 41,249 7,131 254 -	September 30, 2020
			$ 17,490 47 - 52

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(II) The consolidated Company appoints banks as the guarantors for contract performance, customs duty and goods tax bookkeeping. The guaranteed amount on September 30, 2021 and September 30 and December 31, 2020 and are NT$12,000 thousand, NT$29,620 thousand and NT$15,900 thousand.
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:

September 30, 2021

Foreign currencyassets Monetary items USD USD USD USD EUR EUR JPY JPY RMB Non-monetary items Equity based joint venture RMB INR Foreign currency liabilities Monetary items USD USD USD USD USD EUR JPY	Foreign currency $ 7,665 1,461 120 1,499 2,833 2,938 25,797 11,379 33,725 14,667 65,164 2,994 537 1,305 5,721 116 2,630 8,225	Exchange rate 27.8100`（`USD: NTD`）` 7.7812`（`USD: HKD`）` 23,175.00 (USD: VND) 6.4662 (USD: RMB) 32.2900 (EUR: NTD) 0.4711 (EUR: PLN) 0.2488 (JPY: NTD) 0.0580 (JPY: RMB) 4.2930 (RMB: NTD) 4.2930 (RMB: NTD) 0.3748 (INR: NTD) 27.8100`（`USD: NTD`）` 7.7812`（`USD: HKD`）` 23,175.00 (USD: VND) 6.4662 (USD: RMB) 3.9822 (USD: PLN) 0.4711 (EUR: PLN) 0.2488`（`JPY: NTD`）`	Functional currency $ 213,158 11,371 2,774,674 9,693 91,483 1,384 6,418 659 144,782 62,965 24,423 83,274 4,179 30,247,728 36,992 463 1,239 2,046		NTD
					$ 213,158 40,641 3,330 41,613 91,483 9,665 6,418 2,831 144,782 $ 553,921 $ 62,965 24,423 $ 87,388 $ 83,274 14,935 36,297 158,805 3,233 8,652 2,046

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JPY 2,973 RMB 358 RMB 149 December 31, 2020 Foreign currency Foreign currencyassets Monetary items USD $ 8,857 USD 1,396 USD 206 USD 1,883 EUR 1,543 EUR 2,811 JPY 9,735 JPY 4,388 JPY 6,843 RMB 12,191 Non-monetary items Equity based joint venture RMB 23,683 INR 58,274 Foreign currency liabilities Monetary items USD 1,058 USD 451 USD 1,141 USD 4,692 EUR 2,831 JPY 25,387 JPY 2,973 RMB 317 RMB 149	207.3333 (JPY: VND) 4.2930 (RMB: NTD) 1.2037 (RMB: HKD) 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)	616,375 1,537 179 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		740 1,537 641 $ 310,160 NTD
Foreign currencyassets Monetary items USD USD USD USD EUR EUR JPY JPY JPY RMB Non-monetary items Equity based joint venture RMB INR Foreign currency liabilities Monetary items USD USD USD USD EUR JPY JPY RMB RMB
				$ 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

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September 30, 2020

Foreign currencyassets Monetary items USD USD USD USD EUR EUR JPY JPY JPY RMB Non-monetary items Equity based joint venture RMB INR Foreign currency liabilities Monetary items USD USD USD USD EUR JPY JPY JPY HKD RMB RMB	Foreign currency $ 9,804 1,349 293 1,075 1,868 2,811 22,866 4,358 9,267 11,529 25,304 55,982 1,375 274 1,112 5,023 $ 105 16,025 2,973 17,324 513 230 275	Exchange rate 29.01(USD: NTD) 7.7443(USD: HKD) 22,315.38 (USD: VND) 6.8171 (USD: RMB) 33.95 (EUR: NTD) 4.59 (EUR: PLN) 0.2751 (JPY: NTD) 211.6154 (JPY: VND) 0.0646 (JPY: RMB) 4.2540 (RMB: NTD) 4.2540 (RMB: NTD) 0.3934 (INR: NTD) 29.0100 (USD: NTD) 7.7443 (USD: HKD) 22,315.38 (USD: VND) 6.8171 (USD: RMB) 33.9500 (EUR: NTD) 0.2751 (JPY: NTD) 211.6154 (JPY: VND) 0.0646 (JPY: RMB) 0.8796 (HKD: RMB) 4.2540 (RMB: NTD) 1.1369 (RMB: HKD)	Functional currency $ 284,414 10,445 6,527,686 7,329 63,428 12,892 6,290 922,220 599 49,044 107,644 22,023 39,895 2,119 24,807,109 34,242 $ 3,553 4,408 629,105 1,119 451 977 312		NTD
					$ 284,414 39,127 8,486 31,179 63,428 95,418 6,290 1,199 2,547 49,044 $ 581,132 $ 107,644 22,023 $ 129,667 $ 39,895 7,939 32,249 145,664 $ 3,553 4,408 818 4,761 1,919 977 1,170 $ 243,353

The foreign currency exchange losses (realized and unrealized) of the consolidated Company from July 1 to September 30, 2021 and 2020, and from January 1 to September 30, 2021 and 2020 were respectively NT$3,756 thousand, NT$940 thousand, NT$10,137 thousand and NT$5,345 thousand. Due to the wide variety of foreign currency transactions and functional currencies of the group entities, it is impossible to disclose the exchange gains and losses according to the foreign currencies that have a material impact.

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36. Disclosure and notes

(I) Major transactions and (II) 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).
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 (Schedule 4).
Receivables from related parties reach NT$100 million or more than 20% of paid-in capital: None.
Engagement in derivatives transactions (notes 7).
Others: business relationship between parent and subsidiary companies and among subsidiaries, as well as important transactions and amounts (Schedule 5).
Information of invested company (Schedule 6).
77 -
(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 7).
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, Schedule 4 and Schedule 5).
- (1) Purchase amount and percentage, and equity at end of period and percentage of related payables.
- (2) Amount and percentage of goods sold, and equity at end of period and percentage of related receivables.
- (3) The amount of asset transaction and the profit or loss arising therefrom.
- (4) The equity at end of period and the purpose of bill endorsement/ guarantee or provision of collateral.
- (5) The maximum balance of financing, the equity at end of period, 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 8).

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.

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(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 September 30, 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 $ 1,884,917 314,026 2,198,943 314,026) $ 1,884,917 $ 288	Mainland China business $ 185,658 463,722 649,380 ( 463,722) $ 185,658 ($ 10,078)		Others $ 502,493 10,084 512,577 10,084) $ 502,493 $ 41,729		Total
	(		( (	(		( (	$ 2,573,068 787,832 3,360,900 787,832) $ 2,573,068 $ 31,939 4,596) $ 27,343

January 1 to September 30, 2020

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 $ 1,644,834 180,730 1,825,564 180,730) $ 1,644,834 $ 55,153	Mainland China business $ 239,092 322,186 561,278 ( 322,186) $ 239,092 $ 55,620		Others $ 347,722 1,371 349,093 1,371) $ 347,722 $ 14,973)		Total
	(		(	( (		(	$ 2,231,648 504,287 2,735,935 504,287) $ 2,231,648 $ 95,800 1,242 $ 97,042

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.

79 -

(II) Total segment assets

Total segment assets
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 due from related parties - Chemical business in Taiwan - Mainland China business Inventories - Chemical business in Taiwan - Mainland China business - Others	September 30, 2021 $ 8,365 14,688 5,072 28,125 166,670 368,619 69,546 604,835 35,830 1,327 37,157 195,758 300,411 160,941 657,110	December 31, 2020 $ 10,195 5,745 8,208 24,148 153,514 385,754 58,726 597,994 32,334 5,347 37,681 142,666 297,107 102,132 541,905	September 30, 2020
				$ 9,055 5,052 3,011 17,118 152,888 344,815 62,909 560,612 47,236 1,789 49,025 170,883 205,518 113,635 490,036

(To be continued)

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(Continued)

Property, plant and equipment - Chemical business in Taiwan - Mainland China business - Others Total unamortized assets Total assets	September 30, 2021 $ 491,387 348,168 123,249 962,804 852,783 $ 3,142,814	December 31, 2020 $ 496,302 366,798 143,258 1,006,358 847,901 $ 3,055,987	September 30, 2020	September 30, 2020
				$ 496,206 365,761 143,203 1,005,170 835,024 $ 2,956,985

For the purposes of the performance of the supervisory authority and the allocation of resources to segments, except for cash and cash equivalents, current financial assets at fair value through profit or loss, financial assets at amortised cost - current and non-current, other receivables (including those of related parties), other current assets, Non-current financial assets at fair value through other comprehensive income, investments accounted for using equity method, intangible assets, right-of-use assets, deferred tax assets, advance payment for equipment and other non-current assets, all other assets shall be allocated to the respective segment to be reported. Assets shared by reporting segments should be allocated based on the revenue earned by each reporting segment.

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Tex Year Industries Inc. and Subsidiaries

Lending funds to others January 1 to September 30, 2021

Schedule I

Unit: NT$1,000 unless otherwise specified

Serial No. (note 1)	Lending company	Loan recipient	Transaction item (note 2)	Relate d party or not	Maximum balance of the current period (note 3)	Equity at end of period (note 8)	Actual drawdown amount (note 9)	Interest rate range	The nature of the loan (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 2	Tex Year Industries Inc. Tex Year Industries Inc. Tex Year Industries Inc. Tex Year Technology Corp. Tex Year (Hong Kong) 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 due from related parties-others Other receivables due from related parties-others Other receivables due from related parties-others Other receivables due from related parties-others Other receivables due from related parties-others	Yes Yes Yes Yes Yes	$ 34,000 34,000 50,000 20,000 43,000	$ 34,000 34,000 50,000 20,000 43,000	$ 30,051 (RMB 7,000 thousand) 30,051 (RMB 7,000 thousand) - 15,026 ( RMB 3,500 thousand ) 36,153 (USD 1,300 thousand)	3% 2.5-3% 2.5-3% 2.5-3% 2.5-3%	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	$ - - - - -	`－` `－` `－` `－` `－`	`－` `－` `－` `－` `－`	$ 236,252 236,252 236,252 914,959 77,807	$ 472,504 472,504 472,504 914,959 77,807

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, shareholder accounts, prepayments, temporary debits, etc. if the nature is loan to others. Note 3: The maximum balance of loans to others in the current year.
Note 4: The nature of the loan 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 Lending Funds 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 Technology Corp. has a net loan amount of NT$914,959 thousand, which is NT$3,601 thousand different from the book amount of NT$911,358 thousand held by the Company in Schedule 6; the difference is the unrealized gross profit on sales; Tex Year (Hong Kong) Ltd. has a net loan amount of NT$77,807 thousand, which is NT$738 thousand different from the book amount of NT$77,069 thousand held by the Company in Schedule 6; the difference is the unrealized gross sales profit.
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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 installments or revolve 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 September 30, 2021.

83 -

unless otherwise specified

Tex Year Industries Inc. and Subsidiaries

Endorsements/guarantees for others January 1 to September 30, 2021

Schedule 2

Unit: NT$1,000

Serial No. (note 1)	Endorsement guarantor company name	Endorsement/guarantee object	Endorsement/guarantee object	Limit of endorsements/gua rantees for a single enterprise (note 3)	Maximum balance of endorsements/gua rantees in the current period (note 4)	Ending balance of endorsements and guarantees (note 5)	Actual drawdown amount (note 6)	Endorsement/guar antee amount secured by property	Ratio of accumulated endorsements /guarantees amount to net value in the latest financial statements (%)	Maximum endorsement/guar antee amount (note 3)	Endorse ments/g uarantee s of parent compan y to subsidiar ies (note 7)	Endorse ments/g uarantee s of subsidiar ies to parent compan y (note 7)	Endorse ments/g uarantee s for mainlan d 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. Shanghai C&M Filtration Solutions Limited Tex Year Europe Sp. z o. o. Tex Year Vietnam Co., Ltd.	2 2 2 2 2 2	$ 354,378 354,378 354,378 236,252 236,252 236,252	$ 28,500 ( USD 1,000 thousand ) 85,500 ( USD 3,000 thousand ) 86,680 ( RMB 20,000 thousand ) 1,744 ( RMB400 thousand ) 67,860 ( EUR 2,000 thousand ) 75,525 ( USD 2,650 thousand )	$ 27,810 ( USD 1,000 thousand ) 83,430 ( USD 3,000 thousand ) 85,860 ( RMB 20,000 thousand ) 1,717 ( RMB400 thousand ) 64,580 ( EUR 2,000 thousand ) 73,697 ( USD 2,650 thousand )	$ 19,038 ( USD685 thousand ) 55,620 ( USD 2,000 thousand ) 38,175 ( RMB 8,892 thousand ) 1,717 ( RMB400 thousand ) 64,580 ( EUR 2,000 thousand ) 27,215 ( USD979 thousand )	$ - - - - - -	2.41% 7.24% 7.34% 0.15% 5.74 % 6.39%	$ 590,630 590,630 590,630 590,630 590,630 590,630	Y Y Y Y Y Y	N N N N N N	Y Y Y Y N N	note 8 note 8 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 director’s meeting shall be filled in. However, if the board of director’s 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.
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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.

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Tex Year Industries Inc. and Subsidiaries

Securities held at the end of the period

September 30, 2021

Schedule 3

Unit: NT$1,000 unless otherwise specified

Holding company	Types and names of securities (note 1)	Relationship with the securities issuer (note 2)	Ledger account		End ofperiod	End ofperiod		Remarks
				Number of shares (thousand shares)/Amount of capital (NT$1,000)	Carrying amount (note 3)	Shareholdin g ratio (%)	Fair value
Tex Year Industries Inc. Tex Year Industries Inc.	Acute Touch Technology Co., Ltd Innolux Limited Partnership	- -	Financial assets at fair value through other comprehensive income financial assets at fair value throughprofit or loss	1,500 5,000	$ - 4,966	3.00 1.75	$ - 4,966	note 4 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 6 and 7 for information on investment in subsidiaries, affiliated enterprises and joint ventures.

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Tex Year Industries Inc.

The amount of goods purchased or sold with related parties is NT$100 million or more than 20% of the paid-in capital.

January 1 to September 30, 2021

Schedule 4

Unit: NT$1,000 unless otherwise specified

Companies that purchase (sell) products	Name of the counterparty	Relationship		Transaction terms	Transaction terms		different from normal transactions and why	different from normal transactions and why	Notes receivable (payable), accountspayable	Notes receivable (payable), accountspayable	Remarks
			Purchase (Sale)	Amount	Percentage`％` of total purchases (sales)	Credit period	Unit price	Credit period	Remaining balance	Percentage`％` of total notes receivable (payable) and accounts payable
Tex Year Industries Inc. Tex Year Fine Chemical (Guangzhou) Co., Ltd. Tex Year Fine Chemical (Guangzhou) Co., Ltd. Wuxi Tex Year International Trading Co., Ltd. Tex Year Technology (Jiangsu) Co., Ltd. Wuxi Tex Year International Trading Co., Ltd.	Tex Year Fine Chemical (Guangzhou) Co., Ltd. Tex Year Industries Inc. Wuxi Tex Year International Trading Co., Ltd. Tex Year Fine Chemical (Guangzhou) Co., Ltd. Wuxi Tex Year International Trading Co., Ltd. Tex Year Technology (Jiangsu) Co., Ltd.	A 100% owned subsidiary of the Company Parent company A 100% owned subsidiary of the Company Parent company Associates Associates	Sale Purchase Sale Purchase Sale Purchase	( $ 108,597 ) 108,597 ( 131,630 ) 131,630 ( 178,343 ) 178,343	( 4% ) 4% ( 5% ) 7% ( 7% ) 9%	`－` `－` `－` `－` `－` `－`	Cost markup Cost markup Cost markup Cost markup Cost markup Cost markup	120-day payment terms 120-day payment terms 120-day payment terms 120-day payment terms 120-day payment terms 120-day payment terms	$ 40,846 ( 40,846 ) 22,137 ( 22,137 ) 12,468 ( 12,468 )	6% ( 14% ) 3% ( 8% ) 2% ( 4% )

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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 September 30, 2021

Schedule 5	Schedule 5	Schedule 5		Unit: NT$1,000 unless otherwise specified	Unit: NT$1,000 unless otherwise specified	Unit: NT$1,000 unless otherwise specified	Unit: NT$1,000 unless otherwise specified
Serial No. (note 1)	Name of transaction party	Transaction counterparty	Relationship with the counterparty (note 2)	Transaction situation
				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 0 0 0 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 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`（`Hong Kong`）`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. 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 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. Tex Year`（`Hong Kong`）`Ltd. Wuxi Tex Year International Trading Co., Ltd.	1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 3 3 3	Accounts receivable Operating revenue Management service fee Accounts receivable Operating revenue Accounts payable Purchase Other receivables Accounts receivable Operating revenue Accounts payable Accounts receivable Operating revenue Purchase Accounts receivable Operating revenue Other receivables Accounts receivable Operating revenue Other receivables Purchase Other payables Accounts receivable	$ 13,862 32,294 1,446 4,753 8,611 6,423 25,517 3,395 6,021 21,259 4,297 40,846 108,597 13,178 57,636 77,054 29,020 17,738 23,467 60,394 1,822 36,153 22,137	`－` Cost markup `－` `－` Cost markup `－` Cost markup `－` `－` Cost markup `－` `－` Cost markup Cost markup `－` Cost markup `－` `－` Cost markup `－` Cost markup `－` `－`	0.4% 1.2% 0.1% 0.2% 0.3% 0.2% 1.0% 0.1% 0.2% 0.8% 0.1% 1.3% 4.2% 0.5% 1.8% 3.0% 0.9% 0.6% 0.9% 1.9% 0.1% 1.2% 0.7%

(To be continued)

88 -

(Continued)	(Continued)
Serial No. (note 1)	Name of transaction party
1	Tex Year Fine Chemical (Guangzhou) Co.,
	Ltd.
1	Tex Year Fine Chemical (Guangzhou) Co.,
	Ltd.
1	Tex Year Fine Chemical (Guangzhou) Co.,
	Ltd.
1	Tex Year Fine Chemical (Guangzhou) Co.,
	Ltd.
1	Tex Year Fine Chemical (Guangzhou) Co.,
	Ltd.
1	Tex Year Fine Chemical (Guangzhou) Co.,
	Ltd.
1	Tex Year Fine Chemical (Guangzhou) Co.,
	Ltd.
1	Tex Year Fine Chemical (Guangzhou) Co.,
	Ltd.
1	Tex Year Fine Chemical (Guangzhou) Co.,
	Ltd.
2	Wuxi Tex	Year International Trading Co.,
	Ltd.
2	Wuxi Tex	Year International Trading Co.,
	Ltd.
2	Wuxi Tex	Year International Trading Co.,
	Ltd.
2	Wuxi Tex	Year International Trading Co.,
	Ltd.
3	Shanghai	C&M Filtration Solutions
	Limited
3	Shanghai	C&M Filtration Solutions
	Limited
3	Shanghai	C&M Filtration Solutions
	Limited
3	Shanghai	C&M Filtration Solutions
	Limited
4	Tex Year Technology (Jiangsu) Co., Ltd.
5	Tex Year Vietnam Co., Ltd.
5	Tex Year Vietnam Co.,Ltd.

(Continued)	(Continued)	(Continued)	(Continued)	(Continued)	(Continued)	(Continued)	(Continued)
Serial No. (note 1)	Name of transaction party	Transaction counterparty	Relationship with the counterparty (note 2)		Transaction situation
				Accounting subject	Amount (note 4)	Terms of transaction	Ratio to total consolidated revenue or total assets (notes 3 and 5)
1 1 1 1 1 1 1 1 1 2 2 2 2 3 3 3 3 4 5 5	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. 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 Tex Year Technology (Jiangsu) 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. 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 Europe Sp. z o. o. 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. Jiangsu C&M Filtration Solutions Limited Jiangsu C&M Filtration Solutions Limited Jiangsu C&M Filtration Solutions Limited Tex Year Technology Corp. Tex Year Europe Sp. z o. o. Tex Year Europe Sp. z o. o.	3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3	Accounts payable Operating revenue Purchase Accounts payable Accounts receivable Purchase Operating revenue Operating revenue Operating revenue Accounts payable Purchase Accounts payable Purchase Purchase Accounts payable Operating revenue Purchase Other payables Accounts receivable Operatingrevenue	3,878 131,630 4,612 22,367 5,842 82,119 15,838 $ 1,929 2,898 12,468 178,343 6,163 6,208 10,315 40,037 4,815 29,394 15,026 1,872 1,894	`－` Cost markup Cost markup `－` `－` Cost markup Cost markup Cost markup Cost markup `－` Cost markup `－` Cost markup Cost markup `－` Cost markup Cost markup `－` `－` Cost markup	0.1% 5.1% 0.2% 0.7% 0.2% 3.2% 0.6% 0.1% 0.1% 0.4% 6.9% 0.2% 0.2% 0.4% 1.3% 0.2% 1.1% 0.5% 0.1% 0.1%

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:

89 -
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 Equity at end of period 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.

90 -

Tex Year Industries Inc. and Subsidiaries

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

January 1 to September 30, 2021

Schedule 6

Unit: NT$1,000 unless otherwise specified

Name of investment company	Name of investee	Location	Main business items	Original investment amount(note 1)	Original investment amount(note 1)	Holdingat the end of theperiod	Holdingat the end of theperiod	Holdingat the end of theperiod	Current profit (loss) of the investee company	Investment profit (loss) recognized in the current period	Remark s
				End of the period	End of last year	Number of shares (1000 shares)	Percentag e %	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 (USD 500 thousand) 145,537 (PLN 17,600 thousand) 782,923 (USD 24,800 thousand) 34,501 (USD 1,000 thousand)	$ 782,923 (USD 24,500 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	$ 874,328 77,069 66,931 24,423 125,192 911,358 37,034	$ 7,375 ( 1,738 ) ( HKD (482) thousand ) 158 ( VND 131 thousand ) 4,964 ( INR 13,066 thousand ) 2,816 (PLN 383 thousand) 7,374 7,374	$ 7,375 ( 1,738 ) ( HKD (482) thousand ) 126 ( VND 105 thousand ) 2,482 ( INR 6,533 thousand ) 2,253 (PLN 306 thousand) 7,374 -	(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 7 for information about reinvested companies in mainland China.

91 -

Unit: NT$1,000 unless otherwise specified

Tex Year Industries Inc. and Subsidiaries

Information about investment in mainland China.

January 1 to September 30, 2021

Schedule 7

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 revenues repatriated as of the current period	Remarks
					Repatriatio n	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 (USD 1,500 thousand) 34,507 (USD 1,000 thousand) 34,726 (USD 1,000 thousand) 389,798 (USD 12,000 thousand) - 308,108 (USD 10,000 thousand) - -	$ - - - - - - - -	$ - - - - - - - -	$ 50,291 (USD 1,500 thousand) 34,507 (USD 1,000 thousand) 34,726 (USD 1,000 thousand) 389,798 (USD 12,000 thousand) - 308,108 (USD 10,000 thousand) - -	( $ 5,538 ) ( RMB (1,281) thousand ) - - 9,157 (RMB 2,135 thousand) ( 4,809 ) ( RMB (1,113) thousand ) 3,779 (RMB 874 thousand) 7,849 (RMB 1,816 thousand) 4,903 (RMB 1,134 thousand)	50% - - 100% 100% 100% 50.10% 100%	( $ 7,078 ) ( RMB (1,637) thousand ) - - 9,319 (RMB 2,156 thousand) ( 4,809 ) ( RMB (1,113) thousand ) 5,167 (RMB 1,195 thousand) 2,301 (RMB 549 thousand) 4,903 (RMB 1,134 thousand)	$ 62,965 - - 548,166 55,737 285,020 90,351 116,365	$ 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 14 notes 10 and 11 note 10

92 -

Accumulated amount of investment remitted from Taiwan to mainland China at the end of the period	Investment amount approved by the Investment Commission of the Ministry of Economic Affairs	In compliance with the mainland China investment limit set by the Investment Commission of the 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: 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) on March 23, 2021, and then repatriate it to the Company through Tex Year Technology; as of September 30, 2021, 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 September 30, 2021, 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.
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$4,631thousand (RMB1,071 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$1,631 thousand (RMB361 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 Chuangzhi Environmental Tech Co. Note 13: The realized net profit of the adjusted side-flow transactions recognized in the current period is NT$162 thousand (RMB37 thousand). The book value of the investment at the end of the period is the balance after adjusting the unrealized side-flow transactions and downstream flow transactions at the end of the period.

Note 14: The unrealized net profit of the adjusted side-flow transactions recognized in the current period is NT$1,388 thousand (RMB321 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.

93 -

Tex Year Industries Inc. and Subsidiaries

Information of major shareholders

September 30, 2021

Schedule 8

Name of major shareholders	Equity	Equity
	Number of shares held	Shareholding ratio
Chin-Tsung Hsiao Tex Yard Investment Co., Ltd. Tex Yuan Investment Co., Ltd. Hsiang-Chih Hsiao	15,486,012 7,734,215 7,405,987 4,845,521	16.58% 8.28% 7.93% 5.18%

Note 1: 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 dematerialized registration due to a different calculation basis.

94 -

AI assistant

TEX YEAR — Interim / Quarterly Report 2021

52420_rns_2021-11-15_c121eb19-0848-4422-a63c-263ea45f4f9c.pdf

Tex Year Industries Inc. and Subsidiaries

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

Independent Auditor’s Review Report

To: Tex Year Industries Inc.

Foreword

Basis of Reserved Opinion

Reserved Conclusion

Notice to Readers

Tex Year Industries Inc. and Subsidiaries

Consolidated Balance Sheet

September 30, 2021 and December 31 and September 30, 2020

Tex Year Industries Inc. and Subsidiaries

Consolidated Statement of Comprehensive Income

July 1 to September 30, 2021 and 2020 and January 1 to September 30, 2021 and 2020

Tex Year Industries Inc. and Subsidiaries

Tex Year Industries Inc. and Subsidiaries

Consolidated Cash Flow Statement

January 1 to September 30, 2021 and 2020

Standards)

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 (I) Declaration of Compliance

(III) Basis of Consolidation

(IV) Other Significant Accounting Policies

1. Defined benefits and post-employment benefits

2. Income tax

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 Profit or Loss

December 31, 2020

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

9. Financial assets at amortised cost

(Continued)

(I) Accounts receivable

September 30, 2021

September 30, 2020

(II) Collection

11. Inventories

12. Subsidiaries

The consolidated financial statements are prepared by:

Tex Year Europe Sp. z o. o.

Shanghai C&M Filtration Solutions Limited and its subsidiaries

13. Investments Accounted for Using Equity Method

(I) Significant joint ventures

Wuxi More Tex Technology Co., Ltd.

Tex Year Industrial Adhesives Pvt. Ltd.

14. Property, Plant and Equipment

15. Lease Agreement

(I) Right-of-use assets

(II) Lease liabilities

(III) Other lease information

16. Intangible assets

17. Other assets

18. Borrowings

19. Corporate Bonds Payable

20. Notes Payable and Accounts Payable

21. Other Liabilities

22. Current provisions

(I) Defined contribution plans

(II) Defined benefit plan

24. Equity

(I) Share capital

1. Common stock

26. Net Profit and Other Comprehensive Income

(I) Interest income

(II) Other income

(III) Other benefits and (loss)

(IV) Finance costs

(V) Depreciation and amortization

(VI) Employee benefits expenses

(Continued)

Estimated proportion

27. Income Tax

(II) Income tax recognized in other comprehensive income

(III) Verification of income tax

28. Earnings Per Share

TEX YEAR Interim / Quarterly Report 2021