TMC - Interim / Quarterly Report 2022

Taiwan Mask Corporation and Subsidiaries Consolidated Financial Statements and Independent Auditor’s Review Report Q1 2022 and 2021 (Stock Code: 2338)

Company address: No. 11, Chuangxin 1st Road, Baoshan, Hsinchu County, Hsinchu Science Park

Telephone: (03)563-4370

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Taiwan Mask Corporation and Subsidiaries

’ Q1 2022 and 2021 Consolidated Financial Statements and Independent Auditor s

Review Report

		Items`	Page
I.	Cover		1
II.	Table	of Contents	2 ~ 3
III.	Independent Auditors’ Review Report		4 ~ 6
IV.	Consolidated Balance Sheet		7 ~ 8
V.	Consolidated Comprehensive Income Statements		9 ~ 10
VI.	Consolidated Statement of Changes in Equity		11
VII.	Consolidated Statement of Cash Flows		12 ~ 13
VIII.	Notes	to the Consolidated Financial Statements	14 ~ 65
	(I)	Company History	14
	(II)	Date and procedures for passing the financial statement	14
	(III)	Application of New and Revised International Financial Reporting
		Standards	14 ~ 15
	(IV)	Summary of Significant Accounting Policies	15 ~ 20
	(V)	Critical Accounting Judgments and Key Sources of Estimation and
		Uncertainty	20
	(VI)	Summary of Significant Accounting Items	20 ~ 47
	(VII)	Related Party Transactions	47 ~ 48

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	Items`	Page
(VIII)	Pledge Assets	49
(IX)	Material contingent liabilities and unrecognized contractual
	commitments	49 ~ 50
(X)	Losses due to major disasters	50
(XI)	Major Events after Financial Statement Date	50
(XII)	Others	50 ~ 63
(XIII)	Supplementary Disclosure	63 ~ 64
(XIV)	Segment Information	64 ~ 65

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Independent Auditor's Review Report (111) Tsai-Sheng-Bao-Zi No. 22000064

To Taiwan Mask Corporation,

Introduction

We have audited the accompanying consolidated balance sheets for the periods starting January 1 and ending March 31, 2022 and 2021, and the consolidated statements of comprehensive income, changes in equity and cash flows for the period starting January 1 and ending on March 31, 2022 and 2021, as well as the notes to the consolidated financial statements (including the summary of significant accounting policies), for Taiwan Mask Corporation and its subsidiaries (collectively referred to as the Group). The management is responsible for the preparation and fair presentation of the consolidated financial statements in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and IAS 34: "Interim financial reporting" endorsed and issued into effect by the Financial Supervisory Commission. The CPA is responsible for making conclusions on the consolidated financial statements based on the review results.

Scope

Unless otherwise described in the basic paragraph of a qualified opinion, the CPA performs the review in accordance with Statement on Auditing Standards No. 65 Review of financial statements. The procedures performed when reviewing the consolidated financial statements include inquiries (mainly inquiring personnel responsible for financial and accounting tasks), analytical procedures and other review procedures. The scope of review is obviously smaller than that of audit. Therefore, the accountant may not be able to detect all the significant matters that can be identified through audit, so it is impossible to express an audit opinion.

Basis for qualified opinion

As stated in Note 4 (3) of the consolidated financial statements, the financial statements of the same period of some insignificant subsidiaries included in the abovementioned consolidated financial statements have not been reviewed by the CPA, and the total amounts of their assets as of March 31, 2022 and 2021 were NT$1,949,899 thousand and NT$859,827

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thousand, accounting for 12.01% and 8.05% of the total consolidated assets, respectively; the total amounts of their liabilities were NT$1,332,882 thousand and NT$627,097 thousand, accounting for 11.45% and 9.05% of the total consolidated liabilities, respectively; the total amounts of comprehensive income from January 1 to March 31, 2022 and 2021 were NT$ (138,250) thousand and NT$ (83,937) thousand, accounting for 46.27% and (30.04%) the total consolidated comprehensive income, respectively. As stated in Notes 6 (6) to the Consolidated Financial Statements, the investment using the equity method is prepared based on the financial statements from each company for the same period not reviewed by an CPA. The balance of investments using the equity method as of March 31, 2022 and 2021 was NT$154,605 thousand and NT$382,631 thousand, accounting for 0.95% and 3.58% of the total consolidated assets, respectively; the share of losses of associates recognized using the equity method from January to March 31, 2022 and 2021 was NT$(10,129) thousand and NT$(50,867) thousand, accounting for 3.39% and (18.20%) of the consolidated comprehensive income, respectively.

Qualified opinion

According to our results of the review, except for the part described by the basis for qualified opinion that the financial statement of insignificant subsidiaries and the investments using the equity method may affect adjustments to the consolidated financial statements upon the CPA's review, the consolidated financial statements referred to above present fairly, in all material respects, the consolidated financial position of the Group as of March 31, 2022 and 2021, and the results of the consolidated financial operations and the consolidated cash flows from January 1 to March 31, 2022 and 2021 in conformity with the Regulations Governing the Preparation of Financial Reports by Securities Issuers, and IAS 34: Interim financial reporting endorsed by the Financial Supervisory Commission.

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PricewaterhouseCoopers Taiwan

Ya-Hui Cheng

Accountant

Chien-Yu Liu

Securities and Futures Bureau of Financial Supervisory Commission of the Executive Yuan

Approval Document for Attestation: Jin-Guan-Zheng-LiuZi No. 0960072936

Financial Supervisory Commission of the Executive Yuan Approval Document for Attestation: Jin-Guan-Zheng-ShenZi No. 1090350620

May 6, 2022

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Taiwan Mask Corporation and Subsidiaries Consolidated Balance Sheets

March 31, 2022 and December 31 and March 31, 2021

(Consolidated balance sheets as of March 31, 2022 and 2021 were for review only, not audited in accordance with the Generally Accepted Auditing Standards)

Unit: NT$Thousand

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March 31, 2022 December 31, 2021 (After adjustment)
March 31, 2021
Assets Notes Amount % Amount % Amount %
Current assets
1100 Cash and Cash Equivalents 6(1) $ 2,162,231 14 $ 2,681,819 17 $ 1,880,081 18
1110 Financial Assets at Fair Value 6(2) and 8
Through Profit or Loss -
Current 3,607,530 22 3,603,920 22 500 -
1136 Financial Assets at Amortized 6(3) and 8
Cost - Current 37,838 - 38,338 - 38,337 -
1140 Contract Asset - Current 6(20) 118,094 1 155,763 1 77,505 1
1150 Notes Receivables (Net) 6(4) 11,048 - 63 - 159 -
1170 Accounts Receivables (Net) 6(4) 1,299,954 8 1,263,748 8 893,423 8
1180 Accounts Receivables - 6(4) and 7
- - -
Related Parties (Net) 20,964 16,812 4,048
1200 Other Receivables - - -
2,484 68,997 15,855
1210 Other Receivables - Related 7
Parties - - - - 752 -
1220 Tax Assets - - -
22,699 22,600 9,949
130X Inventories 6(5) 431,717 3 432,015 3 210,890 2
1410 Prepayments 145,669 1 121,866 1 39,581 1
1470 Other Current Assets - - -
25,176 29,897 7,392
11XX Total Current Assets
7,885,404 49 8,435,838 52 3,178,472 30
Non-Current Assets
1510 Financial Asset at Fair Value 6(2) and 8
Through Profit or Loss - Non
Current 1,470,383 9 1,433,752 9 2,655,033 25
1535 Financial Assets at Amortized 6(3) and 8
Cost - Non Current 48,445 - 39,925 - 41,422 -
1550 Investment under Equity 6(6)
Method 154,605 1 164,707 1 382,631 3
1600 Property, plant and equipment 6(7) and 8 4,417,639 27 4,142,224 26 3,368,828 31
1755 Right-of-use Asset 6(8) 604,585 4 652,652 4 502,667 5
1760 Investment property (Net) 6(10) and 8 172,797 1 163,042 1 311,551 3
1780 Intangible assets 384,219 2 387,866 3 179,512 2
1840 Deferred Income Tax Assets - - -
3,750 3,241 1,590
1900 Other Non-Current Assets 6(11) 1,090,011 7 690,980 4 65,195 1
15XX Total Non-Current Assets
8,346,434 51 7,678,389 48 7,508,429 70
1XXX Total Assets
$ 16,231,838 100 $ 16,114,227 100 $ 10,686,901 100
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Taiwan Mask Corporation and Subsidiaries Consolidated Balance Sheets

March 31, 2022 and December 31 and March 31, 2021

(Consolidated balance sheets as of March 31, 2022 and 2021 were for review only, not audited in accordance with the Generally Accepted Auditing Standards)

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Unit: NT$Thousand
March 31, 2022 December 31, 2021 (After adjustment)
March 31, 2021
Liabilities and Equities Notes Amount % Amount % Amount %
Current liabilities
2100 Short Term Loans 6(12) $ 4,746,899 29 $ 4,376,766 27 $ 3,266,720 31
2120 Financial liabilities at fair value 6(2)
- - - - -
through profit or loss -- Current 2,786
2130 Contract Liabilities - Current 6(21) 288,455 2 179,315 1 137,215 1
2150 Notes Payable 34,850 - 66 - 66 -
2170 Accounts Payable 451,586 3 477,232 3 364,722 4
2200 Other Payables 6(13) 650,758 4 742,008 5 597,669 6
2230 Current Income Tax Liabilities 179,961 1 186,481 1 105,570 1
2250 Provision for Liabilities - Current 10,739 - 10,964 - 11,708 -
2280 Lease Liability - Current 303,621 2 287,157 2 230,871 2
2320 Long-term liabilities due within 6(15)
one year or one business cycle 81,581 1 70,391 1 144,364 1
2399 Other Current Liabilities - Other 38,085 - 39,281 - 31,885 -
21XX Total Current Liabilities 6,789,321 42 6,369,661 40 4,890,790 46
Non-current liabilities
2530 Corporate bonds payable 6(14) 1,661,537 10 1,657,049 10 - -
2540 Long-term Loans 6(15) 2,651,171 16 2,651,808 17 1,669,125 16
2570 Deferred Income Tax. 77,993 1 74,493 - 60,237 -
2580 Lease liability - Non Current 307,761 2 368,484 2 275,906 3
2640 Defined Benefit Liabilities -
Non Current 15,006 - 14,999 - 25,857 -
2645 Guarantee Deposits Received 40,662 - 6,908 - 6,871 -
2670 Other Non-Current Liabilities -
Other 95,235 1 100,646 1 1,490 -
25XX Total Non-Current
Liabilities 4,849,365 30 4,874,387 30 2,039,486 19
2XXX Total Liabilities 11,638,686 72 11,244,048 70 6,930,276 65
Equity attributable to
shareholders of the parent
company
Capital 6(17)
3110 Capital stock 2,556,735 16 2,556,735 16 2,527,136 24
Capital surplus 6(18)
3200 Capital surplus 1,332,539 8 1,315,828 8 572,272 5
Retained earnings 6(19)
3310 Legal reserve 656,037 4 656,037 4 587,990 5
3320 Special reserve - - - - 2,666 -
3350 Unappropriated earnings 1,264,620 8 1,509,318 10 1,150,743 11
Other equity interests 6(20)
3400 Other equity interests 18,648 - 4,032 - ( 2,351) -
3500 Treasury stock 6(17) ( 936,443) ( 6) ( 941,423) ( 6) ( 942,818) ( 9)
31XX Total Equities Attributable
to Parent Company 4,892,136 30 5,100,527 32 3,895,638 36
36XX Non-controlling Interests ( 298,984) ( 2) ( 230,348) ( 2) ( 139,013) ( 1)
3XXX Total Equities 4,593,152 28 4,870,179 30 3,756,625 35
Major Commitments and 9
Contingencies
Major Events after Financial 11
Statement Date
3X2X Total Liabilities and Equities $ 16,231,838 100 $ 16,114,227 100 $ 10,686,901 100
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The accompanying notes are an integral part of the consolidated financial statements and should be read in conjunction.

Chairperson: Sean Chen

Managerial Officer: Lidon Chen

Accounting Officer: Eve Yang

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Taiwan Mask Corporation and Subsidiaries Consolidated Comprehensive Income Statements January 1 to March 31, 2022 and 2021

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

Unit: NT$Thousand (Except for earnings (loss) per share in NT$)

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January 1 to March 31, 2022 (After adjustment)
January 1 to March 31, 2021
Items Notes Amount % Amount %
4000 Operating revenue 6 (21) and 7
$ 1,707,492 100 $ 1,276,063 100
5000 Operating costs 6(5)
( 1,304,178) ( 77) ( 941,503) ( 74 [)]
5900 Gross profit
403,314 23 334,560 26
Operating expenses 6(26)
(27)
6100 Selling Expenses
( 46,507) ( 3) ( 38,545) ( 3 [)]
6200 Administrative Expenses
( 92,961) ( 5) ( 201,377) ( 16 [)]
6300 R&D Expenses
( 52,561) ( 3) ( 24,075) ( 2 [)]
6450 Expected loss on credit 12(2)
- -
impairment ( 1,458) ( 90)
6000 Total Operating Expenses
( 193,487) ( 11) ( 264,087) ( 21 [)]
6900 Operating profit
209,827 12 70,473 5
Non-operating income and
expenses
7100 Interest income 6(22)
1,767 - 681 -
7010 Other Incomes 6(23)
12,270 1 14,657 1
7020 Other Gains and Losses 6(24)
( 487,591) ( 28) 320,955 25
7050 Financial Costs 6(25)
( 34,738) ( 2) ( 18,625) ( 1 [)]
7060 The share of affiliates and joint 6(6)
venture profits and losses
recognized by the equity method ( 10,129) ( 1) ( 50,867) ( 4 [)]
7000 Total Non-Operating Incomes
and Losses ( 518,421) ( 30) 266,801 21
7900 Net (loss) profit before tax
( 308,594) ( 18) 337,274 26
7950 Income Tax Expense 6(28)
( 4,832) ( 1) ( 56,355) ( 4 [)]
8200 Net (loss) profit for the period
($ 313,426) ( 19) $ 280,919 22
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Taiwan Mask Corporation and Subsidiaries Consolidated Comprehensive Income Statements January 1 to March 31, 2022 and 2021

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

Unit: NT$Thousand (Except for earnings (loss) per share in NT$)

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January 1 to March 31, 2022 (After adjustment)
January 1 to March 31, 2021
Items Notes Amount % Amount %
Other Comprehensive Incomes
(Net)
Components of other
comprehensive income that will
not be reclassified to profit or
loss
8311 Re-measurements of defined $ - - $ 1,758 -
benefit plan
8310 Total items that will not be - - 1,758 -
reclassified subsequently to
profit or loss
Components of other
comprehensive income that will
be reclassified to profit or loss
8361 Financial statement translation 6(20) 14,616 1 ( 3,240) -
differences of foreign operations
8360 Total Components of other 14,616 1 ( 3,240) -
comprehensive income that
will be reclassified to profit or
loss
8500 Total comprehensive income for ($ 298,810) ( 18) $ 279,437 22
the year
Net Incomes (Losses) Attributable
to:
8610 Parent Company ($ 244,698) ( 15) $ 334,368 26
8620 Non-controlling Interests ( 68,728) ( 4) ( 53,449) ( 4)
Total ($ 313,426) ( 19) $ 280,919 22
Total Comprehensive Incomes
(Losses) Attributable to:
8710 Parent Company ($ 230,082) ( 14) $ 332,886 26
8720 Non-controlling Interests ( 68,728) ( 4) ( 53,449) ( 4)
Total ($ 298,810) ( 18) $ 279,437 22
Basic earnings (loss) per share 6(29)
9750 Net (loss) profit for the period ($ 1.14) $ 1.63
Diluted earnings (loss) per share 6(29)
9850 Net (loss) profit for the period ($ 1.14) $ 1.61
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The accompanying notes are an integral part of the consolidated financial statements and should be read in conjunction.

Chairperson: Sean Chen

Managerial Officer: Lidon Chen

Accounting Officer: Eve Yang

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Taiwan Mask Corporation and Subsidiaries Consolidated Statement of Changes in Equity January 1 to March 31, 2022 and 2021

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

Unit: NT$Thousand

January 1 to March 31, 2021 (after adjustment) Balance as of 2021/1/1 Net Income Other Comprehensive Profit or Loss Total comprehensive income for the year Changes in shares of affiliates and joint ventures recognized under the equity method Share-based payment transaction Treasury Stock Buyback Cash increase of non-controlling equity in Subsidiaries Balance March 3, 2021 January 1 to March 31, 2022 Balance January 1, 2022 Net loss Other Comprehensive Profit or Loss Total comprehensive income for the year Changes in shares of affiliates and joint ventures recognized under the equity method Share-based payment transaction Treasury stock donation Balance March 31, 2022	Notes 6(20) 6(18) 6(18) 6(20) 6(18) 6(18) 6(17)						Equityattributable to shareholders	Equityattributable to shareholders	Equityattributable to shareholders	Equityattributable to shareholders	of theparent company	of theparent company						Non- controlling Interests ($ 90,165 ) ( 53,449 ) - ( 53,449 ) ( 34,821 ) 7,093 - 32,329 ($ 139,013 ) ($ 230,348 ) ( 68,728 ) - ( 68,728 ) ( 2,138 ) 2,230 - ($ 298,984 )	Total Equity $ 3,448,433 280,919 ( 1,482 ) 279,437 ( 11,464 ) 423,030 ( 415,140 ) 32,329 $ 3,756,625 $ 4,870,179 ( 313,426 ) 14,616 ( 298,810 ) ( 2,258 ) 19,061 4,980 $ 4,593,152
			Capital stock $ 2,527,136 - - - - - - - $ 2,527,136 $ 2,556,735 - - - - - - $ 2,556,735		Capital surplus $ 439,898 - - - 23,357 109,017 - - $ 572,272 $ 1,315,828 - - - ( 120 ) 16,831 - $ 1,332,539		R	etained earnings			Other equityinterests Financial statement translation differences of foreign operations Unrealized gain (loss) on investments on financial assets at fair value through other comprehensive income $ 3,555 ($ 2,666 ) - - ( 3,240 ) - ( 3,240 ) - - - - - - - - - $ 315 ($ 2,666 ) $ 6,698 ($ 2,666 ) - - 14,616 - 14,616 - - - - - - - $ 21,314 ($ 2,666 )			Treasury stock ($ 834,598 ) - - - - 306,920 ( 415,140 ) - ($ 942,818 ) ($ 941,423 ) - - - - - 4,980 ($ 936,443 )		Total $ 3,538,598 334,368 ( 1,482 ) 332,886 23,357 415,937 ( 415,140 ) - $ 3,895,638 $ 5,100,527 ( 244,698 ) 14,616 ( 230,082 ) ( 120 ) 16,831 4,980 $ 4,892,136
						Legal reserve $ 587,990 - - - - - - - $ 587,990 $ 656,037 - - - - - - $ 656,037		Special reserve $ 2,666 - - - - - - - $ 2,666 $ - - - - - - - $ -		Unappropriated earnings $ 814,617 334,368 1,758 336,126 - - - - $ 1,150,743 $ 1,509,318 ( 244,698 ) - ( 244,698 ) - - - $ 1,264,620	Financial statement translation differences of foreign operations $ 3,555 - ( 3,240 ) ( 3,240 ) - - - - $ 315 $ 6,698 - 14,616 14,616 - - - $ 21,314

The accompanying notes are an integral part of the consolidated financial statements and should be read in conjunction.

Managerial Officer: Lidon Chen

Chairperson: Sean Chen

Accounting Officer: Eve Yang

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Taiwan Mask Corporation and Subsidiaries Consolidated Statements of Cash Flow

January 1 to March 31, 2022 and 2021

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

Unit: NT$Thousand

Cash Flow from Operating Activities
Net (loss) profit before tax for the period
Adjustments to Reconcile Net Income to Net Cash
Flow from Operating Activities
Revenues and Expenses
Depreciation
Amortization
Expected loss on credit impairment
Interest income
Interest Incomes
Treasury stock donation expenses
Net Profit of Financial Asset at Fair Value
Through Loss (Profit)
Loss on disposal of investments
Share-based payment transaction
Share of losses of affiliated companies
recognized under the equity method
Disposal of interests in property, plant and
equipment
The Changes of Assets/ Liabilities related to
Operating Activities
The Changes of Assets/ Liabilities related to
Operating Activities
Mandatory financial assets at fair value
through profit or loss
Contract Assets
Notes Receivables
Accounts Receivables
Accounts Receivables－Related Parties
Other Receivables
Other Receivables－Related Parties
Inventories
Prepayments
Other Current Assets
Other Non-Current Assets
Net Changes of Liabilities related to
Operating Activities
Contract Liabilities
Notes Payable
Accounts Payable
Other Payables
Provisions
Other Current Liabilities
Defined Benefit Liabilities
Other Non-Current Liabilities
Net Cash In-Flow (Out-Flow) from
Operating
Interest Received
Interest Paid
Income Tax Paid
Net Cash In-Flow(Out-Flow) from Operating
Activities Notes
January 1 to March
31, 2022
January 1 to March
31, 2021
( $ 308,594 )
$ 337,274
6(26)
133,840
99,539
6(26)
4,296
3,530
12(2)
1,458
90
6(22)
(
1,767 )
(
681 )
6(25)
34,738
18,625
4,980
-
6(24)
413,171
(
317,262 )
6(24)
107,836
-
6(17)
19,061
116,110
6(6)
10,129
50,867
6(24)
(
5,942 )
(
10 )
(
561,248 )
(
202,858 )
37,669
16,304
(
10,985 )
720
(
37,664 )
1,099
(
4,152 )
2,551
66,533
31,831
-
2,316
298
(
14,810 )
(
23,803 )
19,690
4,721
46,488
(
590 )
(
241 )
109,140
37,797
34,784
-
(
25,646 )
(
32,515 )
(
63,730 )
32,518
(
225 )
(
1,209 )
(
1,196 )
21,389
7
7,644
(
5,411 )
388
(
68,292 )
277,184
1,747
663
(
33,485 )
(
18,533 )
(
8,278)
(
23,797)
(
108,308)
235,517

(continued on next page)

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Taiwan Mask Corporation and Subsidiaries Consolidated Statements of Cash Flow

January 1 to March 31, 2022 and 2021

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

Unit: NT$Thousand

Cash Flow from Investment Activities
Acquisition of Amortized Cost Financial Assets
Acquisition of investment property by the Equity
Method
Acquisition of Property, Plants and Equipment
Disposal of Property, Plants and Equipment
Acquisition of Intangible Assets
Increase in refundable deposit
Net Cash Outflow from Investing
Activities
Cash Flows from Financing Activities
Increase of Short Term Loan
Redemption of Short Term Loan
Increase of Long Term Loan
Redemption of Long Term Loan
Treasury stocks transfer to employees
Treasury stock buyback cost
Redemption of Lease Principal
Increase in Guarantee Deposits Received
Cash increase of non-controlling equity in
Subsidiaries
Net Cash In-Flow (Out-Flow) from
Funding Activities
Adjustments of Exchange Rate
Net increase (decrease) in cash and cash equivalents
Beginning Balance of Cash and Cash Equivalents
Ending Balance of Cash and Cash Equivalents

Notes
January 1 to March
31, 2022
January 1 to March
31, 2021
( $ 8,020 )
( $ 4,625 )
-
(
49,000 )
6(30)
(
809,824 )
(
295,255 )
6,020
10
(
420 )
(
9,318 )
(
9,439 )
(
3,093 )
(
821,683 )
(
361,281 )
6(31)
1,407,590
1,878,192
6(31)
(
1,037,457 )
(
910,190 )
6(31)
41,630
101,000
6(31)
(
31,077 )
(
19,594 )
-
306,920
-
(
415,140 )
6(31)
(
9,576 )
(
10,589 )
6(31)
33,754
1,742
-
32,329
404,864
964,670
5,539
4,517
(
519,588 )
843,423
6(1)
2,681,819
1,036,658
6(1)
$ 2,162,231
$ 1,880,081

The accompanying notes are an integral part of the consolidated financial statements and should be read in conjunction.

Chairperson: Sean Chen

Managerial Officer: Lidon Chen Accounting Officer: Eve Yang

~13~

Taiwan Mask Corporation and Subsidiaries Notes to the Consolidated Financial Statements

Q1 2022 and 2021

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

Unit: NT$Thousand (Unless otherwise specified)

(I) Company history

Taiwan Mask Corporation (hereinafter referred to as the "Company") was established on October 21, 1988, and started its operations in March 1989. The Company was approved by the shareholders meeting on June 12, 2000 to acquire Shin-Tai Technology Co., Ltd., on the merger record date of December 1, 2000, with the Company being the surviving entity.The Company and its subsidiary (collectively referred to as the "Group") mainly engage in the research, development, manufacturing and sales of photomask and integrated circuits, providing technical assistance, consultation, inspection and repair of the abovementioned products, and manufacturing and buying and selling of medical equipment.

(II) Date and procedures for passing the financial report

The accompanying consolidated financial statements were approved and authorized for issuance by the board of directors on May 6, 2022.

(III) Application of New and Revised International Financial Reporting Standards

(1) The impact from adopting the newly released and revised International Financial Reporting Standards recognized by the Financial Supervisory Commission (FSC).

The following table summarizes the applicable newly released, corrected and amended standards and interpretations of the International Financial Reporting Standards recognized by the Financial Supervisory Commission in 2022:

Newly released / corrected / amended standards and inte rpretations IFRS 3 amendment, "Reference to Conceptual Framework" Amendment to IAS 16 - "Property, Plant and Equipment: Proceeds before Intended Use". Amendment to IAS 37 "Onerous Contracts - Cost of Fulfilling a Contract" Annual improvements to 2018 - 2020 cycle	Effective Date Issued by IASB
	January 1, 2022 January 1, 2022 January 1, 2022 January 1, 2022

The Group believes that the adoption of aforementioned IFRSs will not have a significant effect on the financial position and performance.

(2) Impact of the newly released and amended IFRS recognized by the FSC not yet adopted by the Company.

Not applicable.

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

The following table summarizes the applicable newly released, corrected and amended standards and interpretations of the International Financial Reporting Standards issued by the IASB but not yet recognized by the FSC:

	Effective Date Issued
Newly released / corrected / amended standards and interpretations	by IASB
IFRS 10 and IAS 28 amendments, Sale or contribution of assets between	To be determined by
an investor and its associate or joint venture	the IASB
IFRS 17 - Insurance contracts	January 1, 2023
Amendment to IFRS 17 - Insurance contracts	January 1, 2023
Amendments to IFRS 17 "First-time Adoption of IFRS 17 and IFRS 9 -	January 1, 2023
Comparative Information"
Amendment to IAS 1 "Classification of Liabilities as Current or Non-	January 1, 2023
Current"
Amendment to IAS 1 - "Disclosure of Accounting Policies"	January 1, 2023
Amendment to IAS 8 - "Definition of Accounting Estimates"	January 1, 2023
Amendments to IAS 12, "Deferred Income Taxes Related to Assets and	January 1, 2023
Liabilities Arising from a Single Transaction"

The Group believes that the adoption of aforementioned IFRSs will not have a significant effect on the financial position and performance.

(IV) Summary of significant accounting policies

Significant accounting policies are the same as those in Note 4 of the 2021 consolidated financial statements, except for the compliance statements, basis of preparation, basis of consolidation, and applicable parts of interim financial statements. These policies have been consistently applied to all the periods presented, unless otherwise stated.

(1) Compliance statement

These standalone financial statements of the Company have been prepared in accordance with the "Rules Governing the Preparation of Financial Statements by Securities Issuers".
The consolidated financial report should be read in conjunction with the 2021 consolidated financial report.

(2) Basis of Preparation

Except for the following items, these consolidated financial statements have been prepared under the historical cost convention.
(1) Financial assets and financial liabilities at fair value through profit or loss (including derivatives).
(2) Financial assets at fair value through other comprehensive income
(3) Defined benefit liabilities recognized based on the net amount of pension fund assets less present value of defined benefit obligation.
The preparation of financial reports in compliance with the International Financial Reporting

~15~

Standards, International Accounting Standards, IFRIC Interpretations, and SIC Interpretations as endorsed by the FSC (collectively referred herein as the "IFRSs”) requires the use of some significant accounting estimates, and the management also requires the use of its judgment in the process of applying the Group's accounting policies. For items involving high degree of judgment or complexity, or items involving significant assumptions and estimates in the consolidated financial report, please refer to Note 5 for details.

(3) Basis of consolidation

The basis for preparation of consolidated financial statements

The principles for preparing the consolidated financial report are the same as those of the 2021 consolidated financial report.

Subsidiaries included in the consolidated financial statements:

==> picture [455 x 111] intentionally omitted <==

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

Ownership (%)
Name of December 31, March 31, Explanati
Name of Investor Subsidiary Main Business Activity March 31, 2022 2021 2021 on
Taiwan Mask SunnyLake Name of Investor 100 100 100 Note 6
Corporation Park
International
Holding, Inc.
Taiwan Mask Youe Chung Name of Investor 100 100 100
----- End of picture text -----

Taiwan Mask	Youe Chung	Name of Investor	100	100	100
Corporation	Capital
	Corporation
Taiwan Mask	Miracle	Electronics components	100	100	100
Corporation	Technology	manufacturing, electronics
	CO., LTD.	materials and precision
		equipment distribution and
		power component design
Taiwan Mask	Innova Vision	Manufacturing, retail,	91.53	91.53	91.53	Note 6
Corporation	INC.	wholesale and international
		trade of medical equipment
Youe Chung	Innova Vision	Manufacturing, retail,	0.23	0.23	0.23	Note 6
Capital	INC.	wholesale and international
Corporation		trade of medical equipment
Youe Chung	Aptos	Design, packaging and testing	38.16	38.16	38.16	Note 4,
Capital	Technology	of NAND flash memory,				Note 6
Corporation	INC.	solid state drives and the
		related products
Youe Chung	Xsense	Precious metal coating	41.43	41.43	-	Note 5,
Capital	Technology					Note 6
Corporation	Corporation
Youe Chung	DIGITAL-CAN	3D Printing and Plastic Mold	57.39	57.39	-	Note 1,
Capital	TECH. CO.,	Design				Note 6
Corporation	LTD.
Aptos	ADL Energy	Electronic parts and	100	100	52.19	Note 3,
Technology INC.	Corp	components and energy				Note 6
		technical services
Aptos	New Sunrise	Name of Investor	100	100	100	Note 6
Technology INC.	Limited
ADL Energy	Aptos Global	Name of Investor	100	100	100	Note 6
Corp	Holding Corp.

~16~

Aptos Global	Aptos	Name of Investor	100	100	100	Note 6
Holding Corp.	Technology
	Co.,Limited
Miracle	Jingjing	Name of Investor	100	100	100
Technology CO.,	Investment Co.,
LTD.	Ltd.
Miracle	Miracle	Electronics components	100	100	100
Technology CO.,	International	manufacturing, electronics
LTD.	Enterprise(Shan	materials and precision
	ghai) Co., Ltd.	equipment distribution and
		power component design
Jingjing	Miko-China	Electronics components	100	100	100
Investment Co.,	Enterprise	manufacturing, electronics
Ltd.	(Shanghai) Co.,	materials and precision
	Ltd.	equipment distribution and
		power component design
Jingjing	MIKO	Electronics components	100	100	100
Investment Co.,	Technology Co.,	manufacturing, electronics
Ltd.	Ltd.	materials and precision
		equipment distribution and
		power component design
Miko-China	Sichuan Miracle	IC product design,	79.17	79.17	79.17
Enterprise	Power	production and sales
(Shanghai) Co.,	Technology Co.,
Ltd.	Ltd.
Miracle	Sichuan Miracle	IC product design,	20.83	20.83	20.83
International	Power	production and sales
Enterprise(Shang	Technology Co.,
hai) Co., Ltd.	Ltd.
Innova Vision	Innova	Medical equipment retail and	100	100	100	Note 6
INC.	Technology	wholesale
Innova Vision	Innova Vision	Name of Investor	100	100	100	Note 6
INC.	(B.V.I.) Inc.
Innova Vision	Innova Vision	Medical equipment retail and	52.03	52.03	9.23	Note 6
INC.	Kabushiki Kaisha wholesale
Innova Vision	Calaview	Name of Investor	-	-	100	Note 2,
INC.	International					Note 6
	Holding
	Company
	Limited
Innova Vision	Innova Vision	Medical equipment retail and	47.97	47.97	90.77	Note 6
(B.V.I.) Inc.	Kabushiki Kaisha wholesale

Note 1: In August 2021, the Company's subsidiary, Youe Chung Capital Corporation, increased its investment in DIGITAL-CAN TECH. CO., LTD. to 57.39%.
Note 2: Calaview International Holding Company Limited was liquidated on April 30, 2021. Note 3: Adl Technology was renamed ADL Energy Corp on January 5, 2022.
Note 4: The Group accounts for more than half of the Company's board seats and has substantial control, so it is included as a consolidated entity in the consolidated financial statements.

~17~

Note 5: In April 2021, the Group participated in the management decisions and operating policies of Xsense Technology Corporation, and therefore included the firm in the consolidated financial statements as a consolidated entity from that date.
Note 6: As it does not meet the definition of a significant subsidiary, the financial statements of the period between January 1 and March 31, 2022 and 2021 have not been reviewed by the CPA.
Subsidiaries not included in the consolidated financial report: None.
Adjustments for subsidiaries with different balance sheet dates: None.
Significant restrictions: None.
Subsidiaries that have non-controlling interests that are material to the Corporate Group: None.

The total non-controlling interests of the Group as of March 31, 2022, December 31 and March 31, 2021 were ($298,984), ($230,348) and ($139,013), respectively. The following information shows subsidiaries that have non-controlling interests that are material to the Corporate Group:

Name of Subsidiary	Main location of business	Non-controllingInterests	Non-controllingInterests	Non-controllingInterests	Expla nation
		March 31,2022	December 31,2021
		Amount Ownership in%	Amount Ownership in%
Aptos Technology and its subsidiaries	Taiwan Main	($ 283,828) 61.84%	($ 245,715) 61.84% Non-controlling Interests
			March31,2021
Name of Subsidiary	location of business		Amount	Ownership in%	Explan ation
Aptos Technology and its subsidiaries	Taiwan		($ 111,089)	61.84%

Aggregate financial information of subsidiaries:

Balance Sheet

	Aptos	Technology and its subsidiaries	Technology and its subsidiaries
	March 31, 2022	December 31, 2021	March	31, 2021
Current assets	$ 482,458	$ 391,993	$	346,892
Non-Current Assets	580,806	560,687		429,568
Current liabilities	( 1,296,641)	( 1,159,778)	(	539,895)

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Non-current liabilities ( 225,615) ( 190,261) ( 156,178) Total net assets ($ 458,992) ($ 397,359) $ 80,387

Statement of Comprehensive Income

Revenue Net loss before taxes Income Tax Expense Net loss of current period from continuing operations Net loss Other comprehensive income (net after tax) Total comprehensive income for the year	January 1 $	Aptos Technology	and its subsidiaries January 1 to March 31, 2021 $ 103,575 ( 84,891) - ( 84,891) ( 84,891) - ($ 84,891)
		to March 31, 2022
		188,614 64,014) - 64,014) 64,014) - 64,014)
	(
	(
	(
	($

Statements of Cash Flows

Net Cash In-Flow(Out-Flow) from Operating Activities Net cash (outflow) inflow in investing activities Net Cash In-Flow (Out-Flow) from Funding Activities Increase (Decrease) of Cash and Cash Equivalents Beginning Balance of Cash and Cash Equivalents Ending Balance of Cash and Cash Equivalents	Aptos Technology and its subsidiaries January 1 to March 31, 2022 January 1 to March 31, 2021	Aptos Technology and its subsidiaries January 1 to March 31, 2022 January 1 to March 31, 2021
	$ 131,304 ( 87,630) 77,423 121,097 34,148 $ 155,245	$ 15,817 156 91,920 107,893 39,193 $ 147,086

(4) Employee benefits

Pensions

Defined benefit plans

The calculation of pension cost during the interim period adopts the pension cost rate determined by actuarial calculations at the end of the previous financial year, and is based on the beginning of the year to the end of the current period. If there are major market changes and major reductions, liquidation or other major one-off events after the end date, adjustments shall

~19~

be made and relevant information shall be disclosed in accordance with the abovementioned policies.

(5) Income tax

Income tax expenses of the interim period are calculated based on the estimated annual average effective tax rate applied to the pre-tax profit and loss of the interim period, and the relevant information shall be disclosed in accordance with the aforementioned policies.

(V) Critical Accounting Judgments and Key Sources of Estimation and Uncertainty

There are no major changes, please refer to Note 5 of 2021 consolidated financial statements.

(VI) Summary of Significant Accounting Items

(1) Cash

Cash on hand Checking accounts and demand deposits Time deposits Total	March 31, 2022 $ 328 1,380,103 781,800 $ 2,162,231	December 31, 2021 $ 295 1,637,066 1,044,458 $ 2,681,819	March 31, 2021 $ 957 1,805,657 73,467 $ 1,880,081

The Group associates with a variety of financial institutions all with high credit quality to disperse credit risk, so it expects that the probability of counterparty default is remote.
The Group has no cash and cash and cash equivalents pledged to others.

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

Items March 31, 2022 Current items: Mandatory financial assets at fair value through profit or loss Shares of listed and OTC company $ 2,820,065 Convertible bond call/put options - Beneficiary certificates 500 2,820,565 Valuation adjustment 786,965 $ 3,607,530 Financial liabilities mandatorily measured at fair value through profit or loss Convertible bond call/put options $ 2,786	December 31, 2021 $ 2,464,617 5,000 500 2,470,117 1,133,803 $ 3,603,920 $ -		March 31, 2021 $ - - 500 500 - $ 500 $ -

~20~

Non-current items: Mandatory financial assets at fair value through profit or loss Shares of listed and OTC company Not listed, OTC or emerging stock board stocks Private equity Valuation adjustment	$ 1,247,317 125,064 10,000 1,382,381 88,002 $ 1,470,383	$ 1,155,128 124,287 10,000 1,289,415 144,337 $ 1,433,752	$ 1,505,173 95,354 10,000 1,610,527 1,044,506 $ 2,655,033

Details of financial assets/liabilities at fair value through profit or loss recognized in profit or loss are as follows:

January 1 to March 31, 2022 Mandatory financial assets at fair value through profit or loss Shares of listed and OTC company ($ 521,007) Not listed, OTC or emerging stock board stocks - ($ 521,007)	January 1 to March 31, 2022		January 1 to March 31, 2021
			$ 317,262 6,048 $ 323,310

Please see Note 8 on how the Group provides financial assets at fair value through profit or loss as a pledged collateral.
Please see Note 12 (2) and (3) for the price risk and fair value information related to financial assets at fair value through profit or loss.
(3) Financial assets measured at amortized cost

Items Current items: Demand Deposit Time deposits Non-current items: Time deposits		March 31, 2022 $ 15,338 22,500 $ 37,838 $ 48,445	December 31, 2021 $ 15,338 23,000 $ 38,338 $ 39,925		March 31, 2021 $ 15,337 23,000 $ 38,337 $ 41,422

~21~

Financial assets at amortized cost is recognized in the profit or loss shown as follows:

January 1 to March 31, 2022 January 1 to March 31, 2021 Interest income $ 31 $ 30

While not considering the collaterals or other credit enhancements, the financial assets at amortized cost held by the Group had the maximum exposure of credit risk at $86,283, $78,263 and $79,759 as of March 31, 2022, December 31 and March 31, 2021, respectively.
Please see Note 8 on how the Group provides financial assets at amortized cost as a pledged collateral.
(4) Notes and accounts receivable

Notes Receivables Accounts Receivables Accounts Receivables`－` Related Parties Less: Loss allowance	March 31, 2022 $ 11,048 $ 1,311,452 20,964 1,332,416 ( 11,498) $ 1,320,918	December 31, 2021 $ 63 $ 1,273,787 16,812 1,290,599 ( 10,039) $ 1,280,560	March 31, 2021 $ 159
			$ 904,910 4,048
			908,958 ( 11,487) $ 897,471

Aging of accounts receivable notes receivable is as follows:

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

March 31, 2022 December 31, 2021
Accounts Notes Accounts Notes
Receivables Receivables Receivables Receivables
Not past due $ 1,184,994 $ 11,048 $ 1,060,909 $ 63
Up to 30 days 102,080 - 188,933 -
31-90 days 25,741 - 29,361 -
91-180 days 1,189 - 1,891 -
More than 181 18,412 - 9,505 -
days past due
$ 1,332,416 $ 11,048 $ 1,290,599 $ 63
----- End of picture text -----

~22~

Not past due Up to 30 days 31-90 days 91-180 days More than 181 days past due	March 31, 2021 Accounts Receivables Notes Receivables $ 806,733 $ 159 67,457 - 22,864 - 5,642 - 6,262 - $ 908,958 $ 159	March 31, 2021 Accounts Receivables Notes Receivables $ 806,733 $ 159 67,457 - 22,864 - 5,642 - 6,262 - $ 908,958 $ 159
		$ 159

The above is an aging report based on the number of days past due.

As of March 31, 2022, December 31 and March 31, 2021, accounts receivable and notes receivable were all from contracts with customers. The balances of accounts receivable from contracts with customers as of January 1, 2021 was NT$$913,489.
While not considering the collaterals or other credit enhancements, the accounts receivable held by the Group had the maximum exposure of credit risk at $1,320,918, $1,280,560 and $897,471, respectively, as of March 31, 2022, December 31 and March 31 of 2021.
Please refer to Note 12 (2) for the information on credit risk of accounts receivable.

(5) Inventories

Raw materials Work in process Finished goods Merchandise Total	Cost	March 31, 2022 (Gain from reversal of) loss allowance on decline in market value of inventories	Book value
	$ 331,841 65,452 96,135 47,048 $ 540,476	($ 71,599) ( 12,664) ( 22,725) ( 1,771) ($ 108,759)	$ 260,242 52,788 73,410 45,277 $ 431,717

~23~

Raw materials Work in process Finished goods Merchandise Total	$	Cost 335,807 69,890 84,747 32,526 522,970	December 31, 2021 (Gain from reversal of) loss allowance on decline in market value of inventories ($ 61,865) $ ( 9,068) ( 18,889) ( 1,133) ($ 90,955) $	December 31, 2021 (Gain from reversal of) loss allowance on decline in market value of inventories ($ 61,865) $ ( 9,068) ( 18,889) ( 1,133) ($ 90,955) $	Book value 273,942 60,822 65,858 31,393 432,015
	$			$

Raw materials Work in process Finished goods Merchandise Total	$	Cost 227,343 22,971 19,146 21,262 290,722	March 31, 2021 (Gain from reversal of) loss allowance on decline in market value of inventories ($ 52,396) $ ( 10,452) ( 16,229) ( 755) ($ 79,832) $	March 31, 2021 (Gain from reversal of) loss allowance on decline in market value of inventories ($ 52,396) $ ( 10,452) ( 16,229) ( 755) ($ 79,832) $	March 31, 2021 (Gain from reversal of) loss allowance on decline in market value of inventories ($ 52,396) $ ( 10,452) ( 16,229) ( 755) ($ 79,832) $	Book value 174,947 12,519 2,917 20,507 210,890
			($ ( ( (	of inventories 52,396) 10,452) 16,229) 755)
	$		($	79,832)	$

The cost of inventories recognized as losses by the Corporate Group.

Cost of goods sold Loss on falling prices of inventory and inventory obsolescence (gain from recovery)	January 1 to March 31, 2022	January 1 to March 31, 2021
	$ 1,278,730 25,448 $ 1,304,178	$ 946,947 ( 5,444) $ 941,503

From January 1 to March 31, 2021, part of the inventory for which the provision for impairment losses had been made in the previous period was sold, resulting in a recovery in the net realizable value of the inventory, which was recognized as a decrease in operating costs.

~24~

(6) Investment under Equity Method

Affiliates: Advagene Biopharma Co., Ltd. Xsense Technology Corporation Weida Hi-Tech Company	March 31, 2022 $ 65,565 - 89,040 $ 154,605	December 31, 2021	March 31, 2021 $ 107,255 193,359 82,017 $ 382,631
		$ 76,809 - 87,898 $ 164,707

The book value and the share of operating results of each of the Group's insignificant affiliates are summarized as follows:

Net loss of current period from continuing operations Other comprehensive income (net after tax) Total comprehensive income for the year	January 1 to March 31, 2022	January 1 to March 31, 2021
	($ 10,129) - ($ 10,129)	($ 50,867) - ($ 50,867)

As of March 31, 2022, the Group held 30.76% and 28.20% of the shares of Advagene Biopharma Co., Ltd. and Weida Hi-Tech Company, respectively, and was the single largest shareholder of the companies. However, the Group did not hold a majority of the Board of Directors' seats and therefore did not actually participate in the business decisions and operating policies, including strategic decisions (such as financing, acquisitions, personnel and dividend policies) of Advagene Biopharma and Weida Hi-Tech. The Group's shareholding alone does no reach the statutory attendance percentage of shareholders meetings, indicating that the Group has no actual ability to direct relevant activities. Therefore it is judged that the Group has no control over the companies, and only has a significant influence on them.
As of March 31, 2021, the Group held 32.76%, 41.43%, and 36.70% of the shares of Advagene Biopharma, Xsense Technology Corporation and Weida Hi-Tech, and was the single largest shareholder. However, the Group did not hold a majority of the Board of Directors' seats and did not actually participate in the business decisions and operating policies, including strategic decisions (such as financing, acquisitions, personnel and dividend policies) of Advagene Biopharma, Xsense Technology (BVI) and Weida Hi-Tech. The Group's shareholding alone does not reach the statutory attendance percentage of shareholders meetings, indicating that the Group has no actual ability to direct relevant activities. Therefore it is judged that the Group has no control over the companies, and only has a significant influence on them.

~25~

(7) Property, plant and equipment

Buildings and structures (including land) $ 2,338,013 ( 654,360) $ 1,683,653	$ (	Transportation equipment $ 6,544 ( 3,444) $ 3,100 $ 3,100 - - - ( 263) - 34 ( 37) $ 2,834 $ 6,578 ( 3,744) $ 2,834	Mold equipment Other equipment $ 18,784 $ 91,048 ( 6,472) ( 5,504) $ 12,312 $ 85,544 $ 12,312 $ 85,544 1,810 1,705 - ( 7,588) - 7,565 ( 1,136) ( 5,506) - ( 468) - - - - $ 12,986 $ 81,252 $ 20,594 $ 84,697 ( 7,608) ( 3,445) $ 12,986 $ 81,252	Unfinished construction and equipment under acceptance $ 246,016 - $ 246,016 $ 246,016 372,309 - - - ( 887) - - $ 617,438 $ 617,438 - $ 617,438	Unfinished construction and	Unfinished construction and
					equipment under
						acceptance 246,016 - 246,016 246,016 372,309 - - - 887) - - 617,438 617,438 - 617,438
			$ 18,784 ( 6,472) $ 12,312 $ 12,312 1,810 - - ( 1,136) - - -
	$	$		$
$ 1,683,653 15,125 - - ( 35,737) ( 8,688) - -	$ ( ( (	$ ( (		$ (
$ 1,654,353	$	$	$ 12,986 $ 20,594 ( 7,608) $ 12,986	$
$ 2,344,450 ( 690,097) $ 1,654,353	$ (	$ (		$
	$	$		$

~26~

														Unfinished	Unfinished
	Buildings and													construction	and
	structures			Machinery and					Transportation					equipment under
	(including land)			equipment		Office equipment			equipment	Mold equipment		Other equipment		acceptance		Total
January 1, 2022
Cost	$ 1,841,566		$	2,931,096		$ 28,540		$	3,675	$ 10,391		$ 39,856		$ 135,172		$ 4,990,296
Accumulated depreciation	( 566,920)		(	1,273,724)		( 15,004)		(	2,620)	( 6,390)		( 17,539)			-	( 1,882,197)
	$ 1,274,646		$	1,657,372		$ 13,536		$	1,055	$ 4,001		$ 22,317		$ 135,172		$ 3,108,099
2022
January 1	$ 1,274,646		$	1,657,372		$ 13,536		$	1,055	$ 4,001		$ 22,317		$ 135,172		$ 3,108,099
Add - Cost	14,889			1,690		3,143			810		-	288		325,170		345,990
Disposals – Cost		-			-	-			-		-	( 22)			-	( 22)
Disposal - Accumulated
depreciation		-			-	-			-		-	22			-	( 22)
Depreciation	( 14,476)		(	65,547)		( 1,449)		(	133)	( 895)		( 2,747)			-	( 85,247)
Reclassification – Cost	28,443			57,614		-			-		-		-	( 86,057)		-
Net exchange differences - Cost		-	(		2)	( 13)		(	7)		-		-		-	( 22)
Net exchange differences -
Accumulated depreciation		-			-		3		5		-		-		-	8
March 31	$ 1,303,502		$	1,651,127		$ 15,220		$	1,730	$ 3,106		$ 19,858		$ 374,285		$ 3,368,828
March 31, 2022
Cost	$ 1,884,898		$	2,990,398		$ 31,670		$ 4,478		$ 10,391		$ 40,122		$ 374,285		$ 5,336,242
Accumulated depreciation	( 581,396)		(	1,339,271)		( 16,450)		(	2,748)	( 7,285)		( 20,264)			-	( 1,967,414)
	$ 1,303,502		$	1,651,127		$ 15,220		$ 1,730		$ 3,106		$ 19,858		$ 374,285		$ 3,368,828

~27~

The Group had no interest capitalization for investment property in the period between January 1 and March 31, 2022 and 2021.
The major components of the Group's houses and buildings include land, buildings and factory renovation projects. Except for land, they are depreciated for 3 to 56 years.
Information on property, plant and equipment pledged to others as collateral is provided in Note 8.
The abovementioned property, plant and equipment of the Group are for self-use.
(8) Leasing arrangements - lessee
The underlying assets leased by the Group include land, buildings and company vehicles. Leasing contracts are typically made for periods of 3 to 20 years. Lease contracts are negotiated separately and include a variety of terms and conditions. There are no restrictions for the leased assets, except that they cannot be used as loan collaterals.
The lease periods of other equipment leased by the Group did not exceed 12 months and the leased underlying assets were other equipment of low value.
The carrying amount of right-of-use assets and the depreciation charge are as follows:

$	March 31, 2022 December 31, 2021 March 31, 2021 Book value Book value Book value 526,362 $ 536,478 $ 389,704 35,467 70,758 95,634 - - 4,039 16,616 18,683 13,290 26,140 26,733 - 604,585 $ 652,652 $ 502,667 January 1 to March 31, 2022 January 1 to March 31, 2021 Depreciation Depreciation $ 6,115 $ 4,318 1,745 4,968 - 2,020 2,067 1,438 593 - $ 10,520 $ 12,744	March 31, 2022 December 31, 2021 March 31, 2021 Book value Book value Book value 526,362 $ 536,478 $ 389,704 35,467 70,758 95,634 - - 4,039 16,616 18,683 13,290 26,140 26,733 - 604,585 $ 652,652 $ 502,667 January 1 to March 31, 2022 January 1 to March 31, 2021 Depreciation Depreciation $ 6,115 $ 4,318 1,745 4,968 - 2,020 2,067 1,438 593 - $ 10,520 $ 12,744	March 31, 2022 December 31, 2021 March 31, 2021 Book value Book value Book value 526,362 $ 536,478 $ 389,704 35,467 70,758 95,634 - - 4,039 16,616 18,683 13,290 26,140 26,733 - 604,585 $ 652,652 $ 502,667 January 1 to March 31, 2022 January 1 to March 31, 2021 Depreciation Depreciation $ 6,115 $ 4,318 1,745 4,968 - 2,020 2,067 1,438 593 - $ 10,520 $ 12,744

$

	$	$	Depreciation 4,318 4,968 2,020 1,438 - 12,744
	$	$

For the period between January 1 and March 31, 2022 and 2021, the increase (decrease) in right-of-use assets were ($37,547) and $10,440, respectively.
The information on profit or loss items related to lease contracts is as follows:

~28~

Items affecting current profit and loss Interest expenses on lease liabilities Expenses for short-term lease contracts Lease of low-value assets	January 1 to March 31, 2022	January 1 to March 31, 2021
	$ 1,805 526 76	$ 1,359 2,405 42

The Group's total cash outflow on leases for the period between January and March 1, 2022 and 2021 was $11,983 and $14,395, respectively.
Options to extend or terminate leases
- In determining lease terms, the Corporate Group takes into consideration all facts and circumstances that create economic incentives to exercise an option to extend or terminate leases. The assessment of lease period is reviewed if a significant event occurs which affects the assessment of options to extend or options not to terminate.
(9) Leasing arrangements - lessor
The Corporate Group leases out assets such buildings. The lease contracts are typically made for periods of 1 to 2 years. The terms of lease contracts are negotiated separately and include various terms and conditions. In order to preserve the condition of leased assets, the Group usually requires lessees not to pledge the underlying leased assets.
The Group recognized rental income of $6,293 and $6,252 based on operating lease contracts in the period between January 1 and March 31, 2022 and 2021, respectively, and none of the lease contracts were variable lease payments.
The maturity analysis of the undiscounted lease payments under the operating leases is as follows:

2021 2022 2023		March 31, 2022 - 12,116 4,793 $ 8,939	December 31, 2021 - 13,613 2,043 $ 15,656		March 31, 2021 43,348 35,062 18,177 $ 96,587

(10) Real estate investment

January 1, 2022 Cost Accumulated depreciation 2022 January 1 Reclassification - Cost	Buildings and structures $ 175,370 ( 12,328) $ 163,042 $ 163,042 10,572

~29~

Depreciation March 31 March 31, 2022 Cost Accumulated depreciation January 1, 2021 Cost Accumulated depreciation 2021 January 1 Depreciation March 31 March 31, 2021 Cost Accumulated depreciation	( 817) $ 172,797 $ 185,942 ( 13,145) $ 172,797 Buildings and structures $ 319,557 ( 6,458) $ 313,099 $ 313,099 ( 1,548) $ 311,551 $ 319,557 ( 8,006) $ 311,551

Rental income and direct operating expenses of investment real estate:

Rental income from investment property Direct operating expenses incurred by investment properties that generate rent income in the period		January 1 to March 31, 2022		January 1 to March 31, 2021
		$ 4,067 $ 644		$ 7,940 $ 1,567

The fair value of the investment property held by the Group as of March 31, 2022, December 31 and March 31, 2021 were $165,969, $168,813 and $312,114, respectively. They were valuated using the income method and were of Level 3 fair value, and the key assumptions are as follows:

~30~

Discount rate Annual rent (net income) Number of years	March 31, 2022 3.90% $ 17,353 2~20	December 31, 2021 4.49% $ 16,286 2~20	March 31, 2021
			5.27% $ 31,778 2~20

No capitalization of interest for investment property in the period between January 1 and March 31, 2022 and 2021.
As of March 31, 2022, December 31 and March 31, 2021, the investment properties had been used as collaterals.

(11) Other Non-Current Assets

Prepayments for equipment Refundable deposit Others Total	March 31, 2022 $ 1,060,107 25,265 4,639 $ 1,090,011	December 31, 2021	March 31, 2021 $ 49,310 15,885 - $ 65,195
		$ 671,105 15,826 4,049 $ 690,980

(12) Short Term Loans

Range of interest Type of borrowings March 31, 2022 rate Collateral Bank borrowings Credit loan $ 1,715,932 1.00%~2.60% None Secured borrowings 3,030,967 1.04%~2.45% Certificates of deposit, reserve accounts, stocks of listed and OTC companies, treasury stock and investment properties.

$ 4,746,899

Type of borrowings December 31, 2021 Bank borrowings Credit loan $ 1,685,766 Secured borrowings 2,691,000	Range of interest rate 0.90%~2.60% 1.04%~2.45%	Collateral None Certificates of deposit, reserve accounts, stocks of listed and OTC companies, treasury stock and investment properties.

~31~

$ 4,376,766

Range of interest

Type of borrowings March 31, 2021 rate Collateral Bank borrowings Credit loan $ 2,464,720 0.90%~2.60% None Secured borrowings 802,000 1.05%~2.25% Certificates of deposit, reserve accounts, stocks of listed and OTC companies and investment properties. - $ 3,266,720

The interest expenses recognized in profit and loss in the period between January 1 and March 31, 2022 and 2021 were $7,516 and $6,436, respectively.

(13) Other Payables

Payroll and bonus payable Remunerations payable to employees and directors Payable on equipment Machine maintenance payable Others	March 31, 2022 $ 82,473 186,581 71,676 32,897 277,131 $ 650,758	December 31, 2021 $ 78,558 196,679 85,822 29,411 351,538 $ 742,008	March 31, 2021 $ 45,226 128,114 148,246 35,489 240,594 $ 597,669

(14) Corporate bonds payable

March 31, 2022 Corporate bonds payable $ 2,000,000 Less: Amount of exercised conversion options ( 258,700) Less: discount on corporate bonds payable ( 79,763) 1,661,537 Less: Corporate bonds matured in one year or a business cycle or have the put option exercised - $ 1,661,537	December 31, 2021	March 31, 2021 $ - - -
	$ 2,000,000 ( 258,700) ( 84,251) 1,657,049 - $ 1,657,049
		- -
		$ -

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The terms of issuance for the Group's 3rd domestic unsecured convertible bonds are as follows:
(1) The Group has been approved by the competent authority to raise and issue $2,000,000 of the 3rd domestic unsecured convertible bonds, with a coupon rate of 0% and an issuance period of 5 years from August 3, 2021 to August 3, 2026. The convertible bonds are repayable in cash at par value on maturity. The convertible bonds were listed for trading on August 3, 2021
(2) The bondholders may request the conversion of the convertible bonds into the Group's common shares at any time from the day after the expiration of three months from the date of issuance of the corporate bonds to the maturity date, except during the period when the transfer of the corporate bonds is suspended in accordance with the regulations or laws, and the rights and obligations of the converted common shares are the same as those of the original issued common shares.
(3) The conversion price of the convertible bonds is determined in accordance with the pricing model stipulated in the Measures, and the conversion price will be adjusted in accordance with the pricing model stipulated in the Conversion Measures in the event that the Group is subject to anti-dilution provisions. The conversion price will be reset on the base date set by the Regulations in accordance with the pricing model stipulated in the Conversion Measures. As of March 31, 2022, the conversion price was NT$87.4 per share.
(4) If the closing price of the Company's common stock exceeds 30% of the then conversion price for 30 consecutive business days from the day following the third month of the issuance of the convertible bonds to the 40th business day prior to the expiration of the issuance period, the Company may redeem the outstanding corporate bonds within the next 30 business days at the par value of the corporate bonds in cash.
(5) If the outstanding balance of the convertible bonds is less than 10% of the total par value of the corporate bonds issued, the Company may redeem the convertible bonds at any time thereafter for cash at the par value of the corporate bonds, from the day following the third month of the issuance of the corporate bonds to the 40th business day prior to the expiration of the issuance period.
(6) As of March 31, 2022, a total of $258,700 in face value had been converted into 2,960 thousand shares of common stock.
Upon issuance of convertible bonds, the Group separated the conversion options from the components of liabilities in accordance with IAS 32, "Financial Instruments: Presentation," and recorded "capital surplus - stock options" at $406,616. The embedded repurchase and repurchase rights are separated from the principal contractual debt instruments in accordance with IFRS 9, "Financial Instruments", because they are not closely related to the economic characteristics and risks of the principal contractual debt instruments, and are recorded as "financial assets or liabilities at fair value through profit or loss" on a net basis. The effective interest rate of the master contract debt after the separation was 0.0902%.

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(15) Long-term Loans

Type of borrowings Borrowing period and payment method Range of interest rate Collateral Long-term bank borrowings Secured borrowings Repaid in instalments and different amounts according to the agreed period between 2021/12/28 and 2027/01/28. 1.870%~2.050% Houses and buildings, machinery equipment and investment property Secured borrowings Repaid in instalments and different amounts according to the agreed period between 2021/12/27 and 2024/12/27. 1.580%~1.810% Buildings and structures Secured borrowings Repaid in instalments and different amounts according to the agreed period between 2021/12/27 and 2026/12/15. 1.300%~1.550% Machinery and equipment Secured borrowings Repaid in instalments and different amounts according to the agreed period between November 9, 2020 and November 9, 2023 1.022% Buildings and structures and investment properties Secured borrowings Repaid in instalments and different amounts according to the agreed period between September 27, 2017 and December 29, 2026 1.000%~3.730% Machinery, equipment and reserve account (Note) Less: Long-term borrowings (including current portion)	March 31, 2022 $1,250,000 250,000 285,000 850,000 97,752 - 2,732,752 ( 81,581) $ 2,651,171	March 31, 2022 $1,250,000 250,000 285,000 850,000 97,752 - 2,732,752 ( 81,581) $ 2,651,171

		2,732,752 ( 81,581)
		$ 2,651,171

~34~

Type of borrowings Borrowing period and payment method Range of interest rate Collateral Long-term bank borrowings Secured borrowings Repaid in instalments and different amounts according to the agreed period between 2021/12/28 and 2027/01/28. 1.800% Houses and buildings, machinery equipment and investment property Secured borrowings Repaid in instalments and different amounts according to the agreed period between 2021/12/27 and 2024/12/27. 1.580% Buildings and structures Secured borrowings Repaid in instalments and different amounts according to the agreed period between 2021/12/27 and 2026/12/15. 1.300% Machinery and equipment Secured borrowings Repaid in instalments and different amounts according to the agreed period between November 9, 2020 and November 9, 2023 1.440% Buildings and structures and investment properties Secured borrowings Repaid in instalments and different amounts according to the agreed period between September 27, 2017 and December 29, 2026 1.000%~3.730% Machinery, equipment and reserve account (Note) Less: Long-term borrowings (including current portion) (	Type of borrowings Borrowing period and payment method Range of interest rate Collateral Long-term bank borrowings Secured borrowings Repaid in instalments and different amounts according to the agreed period between 2021/12/28 and 2027/01/28. 1.800% Houses and buildings, machinery equipment and investment property Secured borrowings Repaid in instalments and different amounts according to the agreed period between 2021/12/27 and 2024/12/27. 1.580% Buildings and structures Secured borrowings Repaid in instalments and different amounts according to the agreed period between 2021/12/27 and 2026/12/15. 1.300% Machinery and equipment Secured borrowings Repaid in instalments and different amounts according to the agreed period between November 9, 2020 and November 9, 2023 1.440% Buildings and structures and investment properties Secured borrowings Repaid in instalments and different amounts according to the agreed period between September 27, 2017 and December 29, 2026 1.000%~3.730% Machinery, equipment and reserve account (Note) Less: Long-term borrowings (including current portion) (	December 31,
		2021 $ 1,250,000 250,000 300,000 850,000 72,199 - 2,722,199 70,391) $ 2,651,808
	(

~35~

Type of borrowings Borrowing period and payment method Long-term bank borrowings Secured borrowings Repaid in instalments and different amounts according to the agreed period between 2017/09/27 and 2022/09/27. Secured borrowings Repaid in instalments and different amounts according to the agreed period between 2020/11/09 and 2022/08/14. Less: Long-term borrowings (including current portion)	Borrowing	period and payment	Range of interest rate Collateral 1.797%~2.64% Houses and buildings, machine and other equipment and reserve account (Note) 1.070% Buildings and structures	March 31, 2021 $ 963,489 850,000 - 1,813,489 ( 144,364) $1,669,125	March 31, 2021 $ 963,489 850,000 - 1,813,489 ( 144,364) $1,669,125	March 31, 2021 $ 963,489 850,000 - 1,813,489 ( 144,364) $1,669,125
					(
						$1,669,125

Note: According to the loan contract provisions of some banks, the Group shall maintain a specific debt-to-equity ratio and interest solvency every six months during the loan duration.
(16) Pensions
1. (1) The Company and its domestic subsidiaries operate a defined benefit pension plan in accordance with the "Labor Standards Act", which cover all regular employees’ service years prior to the enforcement of the "Labor Pension Act" on July 1, 2005 and service years thereafter of employees who chose to continue to be subject to the pension mechanism under the Labor Standards Act. Under the defined benefit pension plan, two units are accrued for each year of service for the first 15 years and one unit for each additional year thereafter, subject to a maximum of 45 units. Pension benefits are based on the number of units accrued and the average monthly salaries and wages of the last six months prior to retirement. The Company and its domestic subsidiaries contribute a monthly amount equal to 2% of employees’ monthly salaries and wages to a retirement fund at the Bank of Taiwan, the trustee, under the name of the independent retirement fund committee. Also, the Company and its domestic subsidiaries would assess the balance in the aforementioned labor pension reserve account by December 31, every year. If the account balance is not enough to pay the pension calculated by the aforementioned method to the employees expected to qualify for retirement in the following year, the Company and its domestic subsidiaries will make contribution for the deficit by the end of next March.
  - (2) For the periods between January and March 31, 2022 and 2021, the pension costs recognized by the Corporate Group in accordance with the abovementioned pension measures were $0 and $537, respectively.
  - (3) The expected contributions to the defined benefit pension plans of the Group for the year ending December 31, 2023 are $2,133
2. (1) Effective July 1, 2005, the Company and its domestic subsidiaries have established a defined contribution pension plan (hereinafter referred to as the “New Plan”) under

~36~

the Labor Pension Act (hereinafter referred to as the “Act”), covering all regular employees with domestic citizenship. Under the New Plan, the Company and its domestic subsidiaries contribute monthly an amount based on 6% of the employees’ monthly salaries and wages to the employees’ individual pension accounts at the Bureau of Labor Insurance. The benefits accrued are paid monthly or in lump sum upon termination of employment.

(2) For the periods between January and March 31, 2022 and 2021, the pension costs recognized by the Corporate Group in accordance with the abovementioned pension measures were $8,130 and $4,534, respectively.

(17) Capital

As of March 31, 2022, the Company's authorized capital was $5,000,000, consisting of 500,000 thousand shares (including 20,000 thousand shares which can be subscribed to as employee stock options). The paid-in capital was $2,556,735 with a par value of NT$10. All proceeds from shares issued have been collected.

The movements in the number of the Company's common stocks outstanding are as follows:

January 1 Treasury stocks transfer to employees Treasury Stock Buyback Treasury stock donation March 31		2022 214,107 - - 350 214,457	Unit: Thousand shares 2021 205,632 10,000 ( 10,000) - 205,632

Treasury stock
(1) Reasons for repurchase of shares and changes in the quantity:

Company name of the shareholding Reasons for buyback Subsidiary: Youe Chung Capital Corporation Subsidiary holds the company's stock The Company Transfer shares to employees	Number	Number

~37~

Company name of the shareholding Reasons for buyback Subsidiary: Youe Chung Capital Corporation Subsidiary holds the company's stock The Company Transfer shares to employees	December 31, Number of shares (thousand) 37,081 4,485 41,566	December 31, Number of shares (thousand) 37,081 4,485 41,566	December 31,	2021 Book value $ 527,678 413,745

				$ 941,423

Company name of the shareholding Reasons for buyback Subsidiary: Youe Chung Capital Corporation Subsidiary holds the company's stock The Company Transfer shares to employees	Number	Number

(2) For the periods between January 1 and March 31, 2022 and 2021, the Group's sharebased payment arrangements were as follows:

Type of arrangement Transfer of treasury shares to employees Transfer of treasury shares to employees Transfer of treasury shares to employees Transfer of treasury shares to employees	Grant date 2022.01.26 2021.05.05 2021.03.15 2021.02.03	Quantity granted 4,485 3,000 7,000 3,000	Contract Period Immediate vesting Immediate vesting Immediate vesting Immediate vesting	Vesting conditions Note Note Note Note

Note: The Company grants treasury stocks to employees of the Company and its subsidiaries.
(3) Remuneration costs related to the transfer of treasury stocks of the Group between the periods of January 1 and March 31, 2022 and 2021 were $19,061 and $116,110, respectively
(4) The Securities and Exchange Act stipulates that the percentage of the Company's repurchase of outstanding shares shall not exceed 10% of the Company's total issued shares, and the total value of shares purchased shall not exceed the retained earnings plus the premium of issued shares and the amount of realized capital reserve.
(5) The shares bought back by the Company in accordance with the Securities and

~38~

Exchange Act shall not be pledged. Before transfer, shareholders are not entitled to the shareholders' rights.

(6) According to the provisions of the Securities and Exchange Act, the share repurchased to be transferred to employees shall be transferred within 5 years from the date of the purchase. If the transfer is not made within the time limit, the shares are deemed as unissued shares, and change of registration shall be made to cancel the shares. In order to maintain the Company’s credit and shareholders equity, the shares bought back should have the registration changed to cancel the shares within six months from the date of the purchase.
(7) The Company's stock held by the subsidiary Youe Chung Capital is treated as treasury stock. As of March 31, 2022, December 31 and March 31, 2021, Youe Chung Capital held 36,731 thousand, 37,081 thousand and 37,081 thousand shares of the Company. The average book value per share was NT$14.23, and the fair value per share was NT$96.9, NT$108.00 and NT$71.5, respectively. The cost of transferring treasury stocks is calculated based on the book value of the Company's stock held by Youe Chung Capital and the Company's indirect shareholding during each period.
(8) The Company was approved by the Board of Directors on February 3, 2021, to buy back 10,000 thousand shares of the Company in the centralized trading market and transfer them to employees, and the number of shares repurchased accounted for 3.96% of the total issued shares. The buy-back was completed and executed between February 4, 2021 and April 3, 2021
(9) The Company was approved by the Board of Directors on November 3, 2021, to buy back 6,000 thousand shares of the Company in the centralized trading market and transfer them to employees, and the number of shares repurchased accounted for 2.37% of the total issued shares. The buy-back of 4,485 thousand shares was completed and executed between November 4, 2021 and January 3, 2022
(18) Capital surplus

In accordance with the Company Act, any capital surplus arising from paid-in capital in excess of the par value on issuance of common stocks and donations can be used to cover accumulated deficit or to issue new stocks or cash to shareholders in proportion to their share ownership, provided that the Company has no accumulated deficit. Further, the Securities and Exchange Act requires that the amount of capital surplus to be capitalized, as above, should not exceed 10% of paid-in capital each year. Capital reserves should not be used to cover accumulated deficit unless the legal reserve is insufficient. The following is a breakdown of the capital reserve:

reserve:
January 1, 2022 Changes in shares of affiliates recognized under the equity method Share-based payment transaction March 31, 2022	Issue premiums $ 269,010 - -	(	Trading of	$	Changes in ownership interests in subsidiaries recognized 4,919 - - 4,919	stock option $ 295,074 - 16,831	Equity changes in affiliates $ 47,320 ( 19) - $ 47,301	Equity changes	Others $ 4,459 - - $ 4,459	Total $ 1,315,828 ( 120) 16,831
			treasury stock $ 695,046 101) -
	$ 269,010		$ 694,945	$		$ 311,905				$ 1,332,539

~39~

January 1, 2021 Changes in shares of affiliates recognized under the equity method Share-based payment transaction March 31, 2021		Trading of treasury stock $ 411,379 - 75,627 $ 487,006	$	Changes in ownership interests in subsidiaries recognized 6,097 5,150 - 11,247	stock option $ - - 33,390 $ 33,390		Equity changes	$	Others 3,882 - - 3,882	Total $ 439,898 23,357 109,017
							in affiliates $ 18,540 18,207 - $ 36,747
			$					$		$ 572,272

(19) Retained earnings

According to the Articles of Incorporation, any surplus from profit concluded at the end of year by the Company is first subject to reimbursement of previous losses and payment of taxes, followed by 10% provision for legal reserve and provision or reversal of special reserve as the laws may require. Any earnings remaining shall be distributed as shareholders’ dividends in whole or partially.
The Company takes into account the overall business environment, industrial growth, and the Company's long-term financial planning for stable operation and development to adopt a residual dividend policy, which is mainly based on the Company's future capital budgeting plan to measure the annual capital needs. After using the retained earnings for funding, the remaining surplus will be distributed in the form of dividends, and the distribution steps are shown as follows:
(1) Decide on the best capital budgeting.
(2) Decide on the financing required for one of the capital budgeting items.
(3) Decide on the amount of the financing to be supported by retained earnings (methods such as cash capital increase or corporate bonds and so on can be adopted as support).
(4) After retaining the portion required for operation needs out of the earnings remainder, the rest should be distributed to shareholders in the form of dividends. Cash dividends distribution proportion should not be lower than 20% of the total amount of dividends for the distribution proportion of the Company’s dividends.
Except for covering accumulated deficit or issuing new stocks or cash to shareholders in proportion to their share ownership, the legal reserve shall not be used for any other purpose. The use of the legal reserve for the issuance of stocks or cash to shareholders in proportion to their share ownership is permitted, provided that the distribution of the reserve is limited to the portion in excess of 25% of the Company’s paid-in capital.
In accordance with the regulations, the Company shall set aside special reserve from the debit balance on other equity items at the balance sheet date before distributing earnings. When debit balance on other equity items is reversed subsequently, the reversed amount could be included in the distributable earnings.
The Company's Board meeting resolved on March 4, 2022 to distribute a cash dividend of NT$1.00 per common share from the 2021 earnings, with a total dividend of $255,674 In

~40~

addition, a cash distribution of NT$1.00 per share was made from capital surplus for a total of NT$255,674. The above motions are subject to the resolution of the shareholders' meeting.

The Company's shareholders’ meeting resolved on July 5, 2021 to distribute a cash dividend of NT$1.50 per common share from the 2020 earnings, with a total dividend of $379,071.

(20) Other equity interests

January 1 Difference in foreign currency translation: - Group March 31	Unrealized gains and losses ($ 2,666) - ($ 2,666)	2022 Foreign currency translation $ 6,698 14,616 $ 21,314	$ $	Total 4,032 14,616 18,648
	($
	($

January 1 Difference in foreign currency translation: - Group March 31	Unrealized gains and losses ($ 2,666) - ($ 2,666)	(	2021 Foreign currency translation $ 3,555 3,240) $ 315	$ (	Total 889 3,240) 2,351)
	($		$
	($		$	($

(21) Operating revenue

Revenue from contracts with customers	January 1 to March 31, 2022 $ 1,707,492	January 1 to March 31, 2021 $ 1,276,063	January 1 to March 31,	January 1 to March 31,
				2021 1,276,063

~41~

1. Segmentation of revenue from contracts with customers

The Corporate Group derives its revenue from the transfer of goods and services either over time or at a point in time. The revenue can be divided into the following main product lines:

$	$	$	Total 1,707,492

$	$ $	$	1,427,540 279,952
$		$	1,707,492

$	$	$	Total 1,276,063

$	$ $	$	1,172,488 103,575
$		$	1,276,063

2. Contract Liabilities

(1) Contract liabilities related to contracts with customers recognized by the Corporate Group:

Contract Assets Contract Liabilities Contract liabilities Opening balance of contract liabilities recognized in the current period (including other income transferred)		March 31, 2022 $ 118,094	December 31, 2021 $ 155,763	December 31, 2021 $ 155,763		March 31, 2021 $ 77,505		January 1, 2021 $ 93,809
		$ 288,455	$	179,315		$ 137,215		$ 99,418

(2) Contract liabilities at the beginning of the period recognized as revenue of the period

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(22) Interest income

January 1 to March 31, 2022 Interest from bank deposits $ 1,736 Interest income from financial assets measured at amortized cost 31 $ 1,767	January 1 to March 31, 2021 $ 651 30 $ 681

(23) Other Incomes

Rental income Other income -- Others	January 1 to March 31, 2022 $ 6,293 5,977 $ 12,270	January 1 to March 31, 2021 $ 6,252 8,405 $ 14,657

(24) Other Gains and Losses

Disposal of interests in property, plant and equipment Loss on disposal of investments Gains on foreign exchange Gains or losses of financial assets at fair value through profit or loss Other losses -- Depreciation of investment properties Other Gains and Losses	January 1 to March 31, 2022 $ 5,942 ( 107,836) 28,632 ( 413,171) ( 817) ( 341) ($ 487,591)	January 1 to March 31, 2021 $ 10 - 3,926 317,262 ( 1,548) 1,305 $ 320,955	January 1 to March 31, 2021

(25) Financial Costs

Bank borrowings Lease liabilities	January 1 to March 31, 2022	January 1 to March 31, 2021
	$ 32,933 1,805 $ 34,738	$ 17,266 1,359 $ 18,625

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(26) Expenses by nature

Employee benefits expenditure Depreciation Amortization	January 1 to March 31, 2022	January 1 to March 31, 2021
	$ 249,489 133,840 4,296	$ 327,103 99,539 3,530

(27) Employee benefits expenditure

Payroll expenses Share-based payment to employees Labor and health insurance fees Pension expense Other personnel expenses	January 1 to March 31, 2022	January 1 to March 31, 2021
	$ 194,587 19,061 17,348 8,130 10,363 $ 249,489	$ 190,056 116,110 10,418 5,071 5,448 $ 327,103

According to the Articles of Incorporation, the Company shall distribute not less than 10% of the current year’s profit situation for employee remuneration and not more than 2% of current year’s profit situation for director remuneration. However, profits must first be taken to offset against cumulative losses, if any.
For the periods between January 1 and March 31, 2022 and 2021, employees' remuneration was accrued at $0 and $39,086, respectively, and director remunerations was accrued at $0 and $2,490, respectively. The abovementioned amounts were listed as payroll expenses.

The Company was in a state of losses in the period between January 1 and March 31, 2022, so it is not necessary to accrue and distribute employee and director remuneration. The employee remuneration and director remuneration were estimated and accrued based on 10.01% and 0.64% of profit of current period distributable for the period between January 1 and March 31, 2021, respectively.

The employee remuneration and director remuneration resolved by the Board of Directors for 2021 were $158,000 and $18,000, respectively, which were different from $158,000 and $30,800 recognized in the 2021 financial report by $0 and $12,800. This is mainly due to changes in estimates which have been adjusted to the income of 2022.

Information about employees remuneration and director remuneration of the Company as resolved by the Board of Directors will be posted in the “Market Observation Post System”.

~44~

(28) Income tax

1. Income tax expense

Components of income tax expense:

January 1 to March 31, 2022 January 1 to March 31, 2021

Current tax: Current tax on profits for the year Total current tax Deferred income tax: Origination and reversal of temporary differences Deferred income tax: Income Tax Expense	$ 10,366 10,366 ( 5,534) ( 5,534) $ 4,832	$ 50,453 50,453 5,902 5,902 $ 56,355

The Company’s income tax returns through 2020 have been assessed and approved by the tax authority.

(29) Earnings (loss) per share

Basic loss per share Net loss attributable to ordinary shareholders of the parent Earnings per share Profit attributable to ordinary shareholders of the parent Diluted Earnings per share Profit attributable to ordinary shareholders of the parent Assumed conversion of all dilutive potential ordinary shares Employee remuneration	January 1 to March 31, 2022 Weighted average share outstanding (thousand shares) Loss per share Amount after tax (in dollars) ($ 244,698) 214,403 ($ 1.14) January 1 to March 31, 2021 Weighted average share outstanding (thousand shares) Earnings per share Amount after tax (in dollars) $ 334,368 205,089 $ 1.63 $ 334,368 205,089 - 2,682

~45~

Profit attributable to ordinary shareholders of the parent company plus assumed conversion of all dilutive potential ordinary shares $ 334,368 207,771 $ 1.61

The weighted average number of shares outstanding during the periods between January 1 and March 31, 2022 and 2021 has deducted the number of shares held by the subsidiary company Youe Chung Capital deemed as the Company's treasury stock (the number of shares is based on the Company’s shareholding). Since the period between January 1 and March 31, 2022 was a loss, there was no potential dilutive effect of ordinary shares, and the diluted loss per share was equal to the basic loss per share.

(30) Supplemental cash flow information

Investing activities with partial cash payments:

Purchase of property, plant and equipment Add: Prepayments for equipment at the end of the period Opening balance of payable on equipment Less: Prepayments for equipment at the beginning of the period Ending balance of payable on equipment Cash paid during the year	January 1 to March 31, 2022 $ 406,676 1,060,107 85,822 ( 671,105) ( 71,676) $ 809,824	January 1 to March 31, 2021 $ 345,990 49,310 53,809 ( 5,608) ( 148,246) $ 295,255

Changes in liabilities arising from financing activities

Corporate bonds payable Long-term borrowings (including current portion) Lease liabilities $1,657,049 $ 2,722,199 $ 655,641 $ - 10,553 ( 9,576) - - 1,805 - - ( 1,805) 4,488 - ( 34,683) $1,661,537 $ 2,732,752 $ 611,382 $	Corporate bonds payable Long-term borrowings (including current portion) Lease liabilities $1,657,049 $ 2,722,199 $ 655,641 $ - 10,553 ( 9,576) - - 1,805 - - ( 1,805) 4,488 - ( 34,683) $1,661,537 $ 2,732,752 $ 611,382 $	Corporate bonds payable Long-term borrowings (including current portion) Lease liabilities $1,657,049 $ 2,722,199 $ 655,641 $ - 10,553 ( 9,576) - - 1,805 - - ( 1,805) 4,488 - ( 34,683) $1,661,537 $ 2,732,752 $ 611,382 $	Corporate bonds payable Long-term borrowings (including current portion) Lease liabilities $1,657,049 $ 2,722,199 $ 655,641 $ - 10,553 ( 9,576) - - 1,805 - - ( 1,805) 4,488 - ( 34,683) $1,661,537 $ 2,732,752 $ 611,382 $	Guarantee	Total liabilities arising from financing activities
				Deposits Received 6,908 33,754 - - - 40,662
$	portion) 2,722,199 10,553 - - - 2,732,752
		$ 655,641 ( 9,576) 1,805 ( 1,805) ( 34,683) $ 611,382			$ 9,418,563 404,864 1,805 ( 1,805) ( 30,195) $ 9,793,232
$			$

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$	Long-term borrowings (including current portion) $ 1,732,083 81,406 - - - $ 1,813,489	Lease liabilities $ 506,926 ( 10,589) 1,359 ( 1,359) 10,440	Guarantee Deposits Received $ 5,129 1,742 - - - $ 6,871	Guarantee Deposits Received $ 5,129 1,742 - - - $ 6,871	Total liabilities
					arising from financing activities $ 4,542,856 1,040,561 1,359 1,359) 10,440 $ 5,593,857
				Received 5,129 1,742 - - - 6,871
$	$	$ 506,777	$		$

- (VII) Related Party Transactions

(1) Related parties' names and relationship

Name of the related parties Xsense Technology Corporation Xsense Technology Weida Hi-Tech Company Advanced Silicon SA Powerchip Technology Corporation Image Match Design Inc. BKS Tec Corp. Taiwan Mask Charity Foundation	Relationship with the Group Affiliate (Note) Affiliates Affiliates Affiliates Other related party Other related party Other related party Other related party

Note: In April 2021, the Group participated in the management and operating policies of Xsense Technology Corporation, including strategic decisions, and therefore included the firm in the consolidated financial statements as a consolidated entity as of that date.

(2) Significant transactions with the related parties

Operating revenue

January 1 to March 31, 2022 January 1 to March 31, 2021

Product sales: Affiliates Other related party Subtotal	$ 3,314 14,493 $ 17,807	$ - 3,809 $ 3,809

There are no major abnormalities in the transaction prices and payment terms of the related party compared to that of non-related parties.

~47~

2. Account receivable from related parties

Accounts Receivables: Affiliates Other related party Subtotal Other receivables: Affiliates Subtotal Total	March 31, 2022 $ 988 19,976 20,964 - - $ 20,964	December 31, 2021 $ - 16,812 16,812 - - $ 16,812	March 31, 2021 $ - 4,048 4,048 752 752 $ 4,800

Acquisition of financial assets January 1 to March 31, 2022: None

January 1 to March 31, 2021 Account item Number of shares traded Acquisition price Other related party Investment under Equity Method 14,000,000 $ 49,000 4. Others (1) Rental income January 1 to March 31, 2022 January 1 to March 31, 2021 Affiliates $ - $ 1,428 Other related party 175 126 $ 175 $ 1,554 (2) The Company's subsidiary Youe Chung Capital donated 350,000 shares of stocks, a total of NT$4,980, to the Taiwan Mask Charity Foundation. Compensation of key management personnel January 1 to March 31, 2022 January 1 to March 31, 2021 Salary and short-term employee benefits $ 5,354 $ 8,370 Post-employment benefits - 79 Other long-term employee benefits 80 9,419 Total $ 5,434 $ 17,868	January 1 to March 31, 2021 Account item Number of shares traded Acquisition price Other related party Investment under Equity Method 14,000,000 $ 49,000 4. Others (1) Rental income January 1 to March 31, 2022 January 1 to March 31, 2021 Affiliates $ - $ 1,428 Other related party 175 126 $ 175 $ 1,554 (2) The Company's subsidiary Youe Chung Capital donated 350,000 shares of stocks, a total of NT$4,980, to the Taiwan Mask Charity Foundation. Compensation of key management personnel January 1 to March 31, 2022 January 1 to March 31, 2021 Salary and short-term employee benefits $ 5,354 $ 8,370 Post-employment benefits - 79 Other long-term employee benefits 80 9,419 Total $ 5,434 $ 17,868	January 1 to March 31, 2021 Account item Number of shares traded Acquisition price Other related party Investment under Equity Method 14,000,000 $ 49,000 4. Others (1) Rental income January 1 to March 31, 2022 January 1 to March 31, 2021 Affiliates $ - $ 1,428 Other related party 175 126 $ 175 $ 1,554 (2) The Company's subsidiary Youe Chung Capital donated 350,000 shares of stocks, a total of NT$4,980, to the Taiwan Mask Charity Foundation. Compensation of key management personnel January 1 to March 31, 2022 January 1 to March 31, 2021 Salary and short-term employee benefits $ 5,354 $ 8,370 Post-employment benefits - 79 Other long-term employee benefits 80 9,419 Total $ 5,434 $ 17,868	January 1 to March 31, 2021
Salary and short-term employee benefits Post-employment benefits Other long-term employee benefits Total
		$ 5,354 - 80 $ 5,434

(3) Compensation of key management personnel

~48~

(VIII) Pledged Assets

Assets pledged by the Corporate Group as collateral are as follows:

Book value March 31, 2022	December 31, 2021	March 31, 2021

$ 15,338 48,759 3,094,134 416,512 1,654,353 1,566,105 172,797 - $ 6,967,998	$ 15,338 40,239 3,486,951 408,437 1,683,654 2,471,149 163,042 3,610 $ 8,272,420	$ 15,337 41,736 2,070,528 246,639 948,238 1,282,187 311,551 1,072 $ 4,917,288

Note: The cost of pledged treasury shares was $416,512, and fair value as of March 31, 2022 was $2,836,263.

(IX) Material contingent liabilities and unrecognized contractual commitments

(1) Contingencies Not applicable.
(2) Commitments
Machine equipment maintenance contracts that have been signed but not yet paid

~49~

Machine maintenance	March 31, 2022 $ 32,897	December 31, 2021	March 31, 2021 $ 35,489
		$ 29,411

Capital expenditures that have been signed but not yet incurred

Property, plant and equipment	March 31, 2022 $ 211,386	December 31, 2021	March 31, 2021 $ 87,463
		$ 119,059

3. Lease agreement

Please see Note 6 (8) and (9)

(X) Losses due to major disasters

Not applicable.

(XI) Major Events after Financial Statement Date

Some second-tier subsidiaries of the Company are located in Shanghai, China. They are in the trading business, so the lockdown policy in Shanghai starting April did not have a significant impact on the operations.

(XII) Others

(I) Capital management

There are no major changes, please refer to Note 12 of 2021 consolidated financial statements.

(II) Financial instruments

1. Types of financial instrument

Financial assets Financial assets at fair value through profit and loss Mandatory financial assets at fair value through profit or loss Financial assets measured at amortized cost Cash Financial assets measured at amortized cost Notes Receivables Accounts receivable (Including related parties) Other accounts receivable (Including related parties)	March 31, 2022 $ 5,077,913 $ 2,162,231 86,283 11,048 1,320,918 2,484	March 31, 2022 $ 5,077,913 $ 2,162,231 86,283 11,048 1,320,918 2,484	December 31, 2021 $ 5,037,672 $ 2,681,819 78,263 63 1,280,560 68,997	March 31, 2021 $ 2,655,533 $ 1,880,081 79,759 159 897,471 16,607

		$ 2,162,231 86,283 11,048 1,320,918 2,484

~50~

Refundable deposit Financial liabilities Financial liabilities at fair value through profit or loss Financial liabilities mandatorily measured at fair value through profit or loss Financial liabilities at amortized cost Short Term Loans Notes Payable Accounts payable (Including related parties) Other accounts payable (Including related parties) Corporate bonds payable Long-term borrowings (including current portion) Guarantee Deposits Received Lease liabilities	25,265 $ 3,608,229 $ 2,786 $ 4,746,899 34,850 451,586 650,758 1,661,537 2,732,752 40,662 $ 10,319,044 $ 611,382	15,826 $ 4,125,528 $ - $ 4,376,766 66 477,232 742,008 1,657,049 2,722,199 6,908 $ 9,982,228 $ 655,641	15,885 $ 2,889,962 $ - $ 3,266,720 66 364,722 597,669 - 1,813,489 6,871 $ 6,049,537 $ 506,777

2. Risk management policies

(1) The Group’s activities expose it to a variety of financial risks, including market risk (exchange rate, interest rate and price), credit risk and liquidity risk.The Group's overall risk management programme focuses on the unpredictability of financial markets and seeks to minimize potential adverse effects on the Group's financial position and performance.
(2) Risk management is carried out by a central finance department (Group finance) under policies approved by the Board of Directors.Group finance identifies, evaluates and hedges financial risks in close collaboration with the Group’s operating units. The Board provides written principles for overall risk management, as well as written policies covering specific areas and matters, such as currency exchange risk, interest rate risk, credit risk, the use of derivatives and non-derivative financial instruments and investment of excess liquidity.
Significant financial risks and degrees of financial risks
(1) Market risk

A. Foreign exchange risk

The Group's operations involve certain non-functional currencies (the Company’s and certain subsidiaries’ functional currency is the New Taiwan dollar (NTD), and

~51~

for other certain subsidiaries, the functional currency is the US Dollars, Japanese Yen and China's Renminbi (RMB)), so it is subject to the impact of exchange rate fluctuation. The details of assets and liabilities denominated in foreign currencies whose values that would be materially affected by exchange rate fluctuations are as follows:

March 31, 2022
(Foreign currency:
functional currency)
Foreign currency (in
thousand)
Exchange rate
Financial assets
Monetary items
USD : NTD
USD
38,376
28.625
RMB : NTD
CNY
147,076
4.506
JPY : NTD
JPY
38,315
0.235
Financial liabilities
Monetary items
USD : NTD
USD
13,909
28.625
RMB : NTD
CNY
17,999
4.506
JPY : NTD
JPY
200,126
0.235
December 31, 2021
(Foreign currency:
functional currency)
Foreign currency
(in thousand)
Exchange rate
Financial assets
Monetary items
USD : NTD
USD
45,460
27.680
RMB : NTD
CNY
146,650
4.344
JPY : NTD
JPY
92,077
0.241
Financial liabilities
Monetary items
USD : NTD
USD
11,916
27.680
RMB : NTD
CNY
28,431
4.344
JPY : NTD
JPY
214,789
0.241

Book value
(NT$Thousand)
$ 1,098,513
662,724
9,004
398,145
81,103
47,030
Book value
(NT$Thousand)
$ 1,258,333
637,048
22,191
329,835
123,504
51,764

March 31, 2021

Book value

~52~

(Foreign currency: functional currency) Foreign currency (in thousand) Financial assets Monetary items USD : NTD USD 28,857 RMB : NTD CNY 122,585 JPY : NTD JPY 131,271 Financial liabilities Monetary items USD : NTD USD 5,733 RMB : NTD CNY 31,625 JPY : NTD JPY 276,601	Exchange rate 28.535 4.344 0.258 28.535 4.344 0.258	(NT$Thousand)
		$ 823,447 532,509 33,829 163,587 137,380 71,280

B. Total exchange gain, including realized and unrealized gains (losses) from significant foreign exchange variations on monetary items held by the Group amounted to $28,632 and $3,926 for the periods between January 1 and March 31, 2022 and 2021, respectively.
C. The analysis of foreign currency risk due to significant exchange rate fluctuation is as follows:

(Foreign currency: functional currency) Financial assets Monetary items USD : NTD RMB : NTD JPY : NTD Financial liabilities Monetary items USD : NTD RMB : NTD JPY : NTD	Fluctuation 1% 1% 1% 1% 1% 1%	January 1 to March 31, 2022 Sensitivity Analysis Effect on profit or loss Other comprehensive profit and loss affected $ 10,985 $ - 6,627 - 90 - ( 3,981) - ( 811) - ( 470) -

~53~

(Foreign currency: functional currency) Financial assets Monetary items USD : NTD RMB : NTD JPY : NTD Financial liabilities Monetary items USD : NTD RMB : NTD JPY : NTD	Fluctuation 1% 1% 1% 1% 1% 1%	January 1 to March 31, 2021 Sensitivity Analysis Effect on profit or loss Other comprehensive profit and loss affected $ 8,234 $ - 5,325 - 338 - ( 1,636) - ( 1,374) - ( 713) -	January 1 to March 31, 2021 Sensitivity Analysis Effect on profit or loss Other comprehensive profit and loss affected $ 8,234 $ - 5,325 - 338 - ( 1,636) - ( 1,374) - ( 713) -
			$ - - - - - -

Price risk

A. The equity instruments owned by the Company exposing to the price risk are financial assets at fair value through profit or loss and financial assets at fair value through other comprehensive income.
B. The Group invests primarily in equity instruments and open-end funds issued by domestic and foreign companies. The price of such equity instrument is subject to the uncertainty of the future value of investment target. If the price of such equity instrument increases or decreases by 1%, while all other factors remain unchanged, the net profit after tax affected by equity instruments at fair value through profit or loss after tax for the periods between January 1 and March 31, 2022 and 2021 is an increase or decrease of $50,779 and $26,555, respectively; as for the other comprehensive income classified as equity instruments at fair value through other comprehensive income, it is $0 and $0, respectively.

Cash flow and fair value interest rate risk

A. The Group's interest rate risk mainly comes from long-term borrowings issued at floating rates, which exposes the Group to cash flow interest rate risk.For the periods between January 1 and March 31, 2022 and 2021, the Group's borrowings issued at floating rates were mainly denominated in New Taiwan dollars and US dollars.
B. The Group's borrowings are measured at amortized cost, and the annual interest rate is re-priced according to the contract, which exposes the Group to the risk of future market interest rate changes.
C. If the long- and short-term borrowing rates increase or decrease by 0.25%, while all other factors remain constant, the net profit after tax for the periods between January 1 and March 31, 2022 and 2021 is a decrease or increase of $3,740 and $2,540, respectively, mainly due to the interest expense changes caused by the floating interest rate.

~54~

(2) Credit risk

A. Credit risk refers to the risk of financial loss to the Group arising from default by the clients or counterparties of financial instruments under contract obligations, and the defaults are accounts receivable and the contract cash flow from debt instruments measured at amortized cost, measured at fair value through other comprehensive income and measured at fair value through profit or loss.
B. The management of credit risk is established with a Group perspective.Only the banks and financial institutional with an independent credit rating of at least "A" can be accepted as transaction partners of the Group. According to the Group’s credit policy, each local entity in the Group is responsible for managing and analyzing the credit risk for each of their new clients before standard payment and delivery terms and conditions are offered. Internal risk control assesses the credit quality of the customers, taking into account their financial position, past experience and other factors. Individual risk limits are set based on internal or external ratings in accordance with limits set by the Board of Directors. The utilization of credit limits is regularly monitored.
C. The Group considers a contract payment overdue in accordance with the agreed payment terms a breach of contract.
D. The Group uses IFRS 9 to provide the following assumption as a basis for determining whether there is a significant increase in the credit risk of financial instruments after the original recognition:
(A) If the contract payment is overdue for more than 30 days in accordance with the agreed payment terms, the credit risk of the financial asset is significantly increased since the original recognition.
(B) For bond investments in Taipei Exchange, if any external rating agency rates it as an investment grade on the balance sheet date, the credit risk of the financial asset is considered low.
E. The Group uses the following indicators to determine the status of credit impairments of debt instruments:
(A) The issuer has suffered significant financial difficulties or is likely to enter bankruptcy or other financial restructuring.
(B) The issuer has suffered significant financial difficulties or is likely to enter bankruptcy or other financial restructuring.
(C) The issuer delays or does not pay for the interest or principal.
(D) Unfavorable changes in the national- or regional-level economic situation resulting in the issuer's default.
F. The Group categorizes the accounts receivable from customers based on the characteristics of trade credit risks. The simplified approach is adopted for estimating the expected credit loss based on the provision matrix.
G. The Group may write off the amount of financial assets that cannot be reasonably expected to be recovered after recourse. However, the Group will continue the recourse to protect the rights of the claims.
H. The Group has incorporated forward-looking considerations to adjust the loss rate built according to historic and current data in order to estimate the loss allowance of accounts receivables. The provision matrix for the periods ended March 31, 2022, December 31 and March 31, 2021 are shown as follows:

~55~

Not past due Up to 30 days 31-90 days 91-180 days March 31, 2022 Expected loss rate 0.01~1% 0.01~1.94% 1.95~6.10% 5.40~19.42% Total book value $ 1,184,994 $ 102,080 $ 25,741 $ 1,189 Loss allowance - ( 24) ( 980) ( 416) Not past due Up to 30 days 31-90 days 91-180 days December 31, 2021 Expected loss rate 0.01~1% 0.01~1.95% 1.99~6.29% 5.05~19.97% Total book value $ 1,060,909 $ 188,933 $ 29,361 $ 1,891 Loss allowance - ( 2) ( 1,397) ( 598) Not past due Up to 30 days 31-90 days 91-180 days h 31, 2021 Expected loss rate 0.01~1% 0.01~1.95% 1.37~7.13% 3.88~22.57% Total book value $ 806,733 $ 67,457 $ 22,864 $ 5,642 Loss allowance - ( 1) ( 2,649) ( 2,770)	Not past due Up to 30 days 31-90 days 91-180 days March 31, 2022 Expected loss rate 0.01~1% 0.01~1.94% 1.95~6.10% 5.40~19.42% Total book value $ 1,184,994 $ 102,080 $ 25,741 $ 1,189 Loss allowance - ( 24) ( 980) ( 416) Not past due Up to 30 days 31-90 days 91-180 days December 31, 2021 Expected loss rate 0.01~1% 0.01~1.95% 1.99~6.29% 5.05~19.97% Total book value $ 1,060,909 $ 188,933 $ 29,361 $ 1,891 Loss allowance - ( 2) ( 1,397) ( 598) Not past due Up to 30 days 31-90 days 91-180 days h 31, 2021 Expected loss rate 0.01~1% 0.01~1.95% 1.37~7.13% 3.88~22.57% Total book value $ 806,733 $ 67,457 $ 22,864 $ 5,642 Loss allowance - ( 1) ( 2,649) ( 2,770)	More than 181	Total $ 1,332,416 ( 11,498) Total $ 1,290,599 ( 10,039) Total $ 908,958 ( 11,487)
		days past due 59.71~100% $ 18,412 ( 10,078) More than 181 days past due 57.18~100% $ 9,505 ( 8,042) More than 181 days past
	5.05~19.97% $ 1,891 ( 598) 91-180 days
	3.88~22.57% $ 5,642 ( 2,770)	due 44.08~100% $ 6,262 ( 6,067)

I. The Group adopts a simplified method in which the loss allowance for the accounts receivable is shown as follows:

January 1 Recognize impairment loss Impact from exchange rate March 31		2022 Accounts Receivables $ 10,039 1,458 1 $ 11,498

January 1 Recognize impairment loss Impact from exchange rate March 31		Accounts	2021 Receivables 11,399 90 2) 11,487
		$ (
		$

~56~

(3) Liquidity risk

A. Cash flow forecasting is performed by the operating entities of the Corporate Group and aggregated by the Group’s treasury department. It monitors rolling forecasts of liquidity requirements to ensure the Group has sufficient cash to meet operational needs.
B. The remaining cash held by each operating entity will be transferred back to the Group's finance department. B. The finance department of the Group invests the remaining funds in interest-bearing demand deposits, time deposits, financial assets at fair value through profit or loss, financial assets at amortized cost and bond investment without an active market (time deposits with a maturity of more than 3 months and less than 12 months), as the instruments chosen have appropriate maturities or sufficient liquidity to provide sufficient headroom as determined by the abovementioned forecasts. As of March 31, 2022, December 31 and March 31, 2021, the position of money market held by the Corporate Group is at $2,248,686, $2,760,287 and $1,917,961, respectively, and is expected to generate immediate cash flow to manage liquidity risk.
C. The Group's unutilized borrowings are shown as follows:

Floating rate Mature within one year Maturity of more than one year	March 31, 2022 $ 400,000 15,000 $ 415,000	December 31, 2021 $ 953,880 20,000 $ 973,880	March 31, 2021 $ 698,000 220,573 $ 918,573

D. The following table shows the Group’s non-derivative financial liabilities and derivative financial liabilities settled on a net or total amount, grouped according to the relevant maturity date. Non-derivative financial liabilities are analyzed based on the remaining period from the balance sheet date to the contract maturity date. The amounts disclosed in the table are the contractual undiscounted cash flows.

Non-derivative financial liabilities:

Within 1 year March 31, 2022 Non-derivative financial liabilities: Short Term Loans $ 4,754,415 Financial liabilities at fair value through profit or loss 2,786 Notes Payable 34,850	1 to 2 years $ - - -	2 to 5 years $ - - -	Over 5 years
			$ - - -

~57~

Accounts Payable 451,586 Other accounts payable (Including related parties) 650,758 Lease liabilities 307,070 Corporate bonds payable - Long-term borrowings (including current portion) 84,623 Guarantee Deposits Received - Within 1 year December 31, 2021 Non-derivative financial liabilities: Short Term Loans $ 4,404,500 Notes Payable 66 Accounts Payable 477,232 Other accounts payable (Including related parties) 742,008 Lease liabilities 159,795 Corporate bonds payable - Long-term borrowings (including current portion) 71,855 Guarantee Deposits Received - Within 1 year March 31, 2021 Non-derivative financial liabilities: Short Term Loans $ 3,273,156 Notes Payable 66	- - 131,736 - 805,441 40,662 1 to 2 years $ - - - - 135,884 - 792,803 6,908 1 to 2 years $ - -	- - 273,137 1,741,300 1,859,994 - 2 to 5 years $ - - - - 443,025 1,741,300 1,861,513 - 2 to 5 years $ - -	- - - - - - Over 5 years
			$ - - - - - - - - Over 5 years
			$ - -

~58~

Accounts Payable	364,722	-	-	-
Other accounts
payable (Including related	597,669	-	-	-
parties)
Lease liabilities	233,494	110,050	173,560	68,550
Long-term
borrowings (including current	91,978	1,785,353	-	-
portion)
Guarantee
Deposits	-	6,871	-	-
Received

(III) Fair value information

The different levels that the inputs to valuation techniques are used to measure fair value of financial and non-financial instruments have been defined as follows:
Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can access at the measurement date. A market is regarded as active where a market in which transactions for the asset or liability take place with sufficient frequency and volume to provide pricing information on an ongoing basis. The fair value of the Group’s investment in stocks of publicly traded or OTC firms and beneficiary certificates is included in Level 1.
Level 2:Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly.
Level 3:Unobservable inputs for the asset or liability. The fair value of the Group’s investment in stocks of non-publicly traded or non-OTC firms and private equity fund is included in Level 3.
Financial instruments not measured at fair value
Cash, notes receivable, accounts receivable, other receivable, short-term borrowings, notes payable, accounts payable and other payable as reasonable approximation of fair value.
The related information for financial and non-financial instruments measured at fair value by level on the basis of the nature, characteristics and risks of the assets and liabilities is as follows:

March 31, 2022 Assets Recurring fair value measurements Financial assets at fair value through profit and loss Equity securities Beneficiary	Level 1 $ 4,943,313 500		Level 2 $ 80,700 -		Level 3 $ 53,400 -	$	Total 5,077,413 500

~59~

certificates Total Liabilities Recurring fair value measurements Financial liabilities at fair value through profit or loss Convertible bond call/put options December 31, 2021 Assets Recurring fair value measurements Financial assets at fair value through profit and loss Equity securities Beneficiary certificates Convertible bonds Total March 31, 2021 Assets Recurring fair value measurements Financial assets at fair value through profit and loss Equity securities Beneficiary certificates Total			$ 4,943,813 $ 2,786 Level 1 $ 4,877,149 500 5,000 $ 4,882,649 Level 1 $ 2,623,325 500 $ 2,623,825		$ 80,700 $ - Level 2 $ 102,400 - - $ 102,400 Level 2 $ - - $ -



			$

The methods and assumptions adopted by the Group for assessing the fair value are as follows:
(1) The Group adopt market pricing as the input of fair value (i.e. Level ), and the breakdown of the characteristics of the instrument is as follows:

Market price

Shares of listed and OTC company Open-end funds Closing price Net Value

~60~

(2) Except for the abovementioned financial instruments with active markets, the fair value of the remaining financial instruments is obtained using valuation techniques. The fair value obtained through valuation techniques can refer to the current fair value of other financial instruments with similar substantive conditions and characteristics, discounted cash flow method, or other valuation techniques, including the use of market information available on the date of the consolidated balance sheet (for example, the Taipei Exchange refers to the yield curve, the Reuters adopts the average quotation of interest rate of commercial promissory notes).
(3) The output of the valuation model is the estimated value, and the valuation technique may not reflect all the relevant factors of the financial instruments and non-financial instruments held by the Group. Therefore, the estimated value of the valuation model will be appropriately adjusted according to additional parameters, such as model risk or liquidity risk. According to the Group's fair value valuation model management policies and related control procedures, the management believes that in order to properly express the fair value of financial instruments and non-financial instruments in the consolidated balance sheet, valuation adjustments are appropriate and necessary. The price information and parameters used in the valuation process are carefully assessed and appropriately adjusted according to current market conditions.
(4) The Group incorporates credit risk valuation adjustments into the consideration of fair value of financial instruments and non-financial instruments to reflect counterparty credit risk and the credit quality of the Group, respectively.
There were no transfers between Level 1 and 2 in the periods between January 1 and March 31, 2022 and 2021.
The following table shows the changes in Level 3 in the periods between January 1 and March 31, 2022 and 2021:

January 1, 2022 Impact from exchange rate March 31, 2022 January 1 to March 31, 2021	$	Equity securities 52,622 778 53,400 Equity securities 31,708
	$
	$

The quantitative information about the significant unobservable input value of the valuation model and the sensitivity analysis of the significant unobservable input value change used in the Level 3 fair value measurements are explained as follows:

~61~

March 31, 2022

March 31, 2022
Non-derivative equity instruments: Shares of non-listed and non-OTC company $ December 31, 2021 Non-derivative equity instruments: Shares of non-listed and non-OTC company $	Fair value Valuation technique 53,400 Net asset value method Fair value Valuation technique 52,622 Net asset value method	Significant unobservable inputs Net asset value Significant unobservable inputs Net asset value	Range (weighted average) - t Range (weighted average) - t	Relationship between inputs
				and fair value The higher the net asset value, he higher the fair value. Relationship between inputs
				and fair value The higher the net asset value, he higher the fair value.

March 31, 2021

March 31, 2021
Non-derivative equity instruments: Shares of non-listed and non-OTC company $	Fair value Valuation technique 31,708 Net asset value method	Significant unobservable inputs Net asset value	Range (weighted average) - t	Relationship between inputs
				and fair value The higher the net asset value, he higher the fair value.

The Corporate Group has carefully assessed the valuation models and parameters used to measure fair value. However, use of different valuation models or parameters may result in different measurement. For financial assets or liabilities classified in Level 3, changes in valuation parameters have the following impacts on the income or other comprehensive income of the period:

Inputs Financial assets Equity instruments Net asset value	Changes ± 1%	March 31, 2022 Recognized in profit or loss Recognized in other comprehensive income Favorable changes Adverse changes Favorable changes Adverse changes $ 534 ($ 534) $ - $ -	March 31, 2022 Recognized in profit or loss Recognized in other comprehensive income Favorable changes Adverse changes Favorable changes Adverse changes $ 534 ($ 534) $ - $ -	March 31, 2022 Recognized in profit or loss Recognized in other comprehensive income Favorable changes Adverse changes Favorable changes Adverse changes $ 534 ($ 534) $ - $ -
			changes 534

~62~

Recognized in	Recognized in	Recognized in	Recognized in	Recognized in	Recognized in	Recognized in
			profit or
loss Favorable changes $ 526 ($		Adverse changes 526)
	($			Favorable	Adverse changes $ -	Adverse
changes $ 526				changes $ -

Inputs Financial assets Equity instruments Net asset value	Changes ± 1%	March 31, 2021 Recognized in profit or loss Recognized in other comprehensive income Favorable changes Adverse changes Favorable changes Adverse changes $ 317 ($ 317) $ - $ -	March 31, 2021 Recognized in profit or loss Recognized in other comprehensive income Favorable changes Adverse changes Favorable changes Adverse changes $ 317 ($ 317) $ - $ -	March 31, 2021 Recognized in profit or loss Recognized in other comprehensive income Favorable changes Adverse changes Favorable changes Adverse changes $ 317 ($ 317) $ - $ -
			$
				changes -

(IV) Others

The Company has evaluated the Group's operations and financial information, and amid the novel coronavirus crisis, the Group's ability to continue as a going concern, asset impairment and financing risks have not been greatly affected.

(XIII) Supplementary Disclosure

(I) Significant transactions information

Loans to others: Please refer to Table 1.
Provision of endorsements and guarantees to others: Please refer to Table 2.
Holding of marketable securities at the end of the period (not including subsidiaries, associates and joint ventures): Please refer to Table 3.
Acquisition or sale of the same security with the accumulated cost exceeding $300 million or 20% of the Company's paid-in capital: None.
Acquisition of real estate exceeding $300 million or 20% of paid-in capital or more: None.
Disposal of real estate exceeding $300 million or 20% of paid-in capital or more: None.
Purchases or sales of goods from or to related parties reaching $100 million or 20% of paid-in capital or more: None.
Receivables from related parties reaching NT$100 million or 20% of paid-in capital or more: None.
Engaged in derivative trading: None.
Significant inter-company transactions during the reporting periods: Please refer to Table 4.

~63~

(II) Information on investees

Names, locations and other information of investee companies (not including investees in China): Please refer to Table 5.

(III) Information on investments in China

Basic information: Please refer to Table 6.
Significant transactions, either directly or indirectly through a third area, with investee companies in China: None.

(IV) Information on Major Shareholders

Information on major shareholders: Detailed in Table 7.

(XIV) Segment Information

(I) General information

Management has determined the reportable operating segments based on reports reviewed by the president and used to make strategic decisions.

The Group's corporate structure, the basis for division of segments, and the basis for measurement of segment information have not changed significantly during the current period.

(II) Segments information

Information on the reporting segments provided to the chief operating decision maker is shown as follows:

January 1 to March 31, 2022:

Photomask and semiconductor segment Revenue from external clients $ 1,698,443 Segment revenue ($ 37,545) Segment margin ($ 290,623) Segment margin include: Depreciation ($ 128,190) Amortization expense ($ 2,235) Financial Costs ($ 34,146) Interest income $ 1,767 Investments income recognized by using equity method ($ 10,129) Segment assets $ 15,872,249		Medical segment	Total $ 1,707,492 ($ 37,545) ($ 308,594) ($ 133,840) ($ 4,296) ($ 34,738) $ 1,767 ($ 10,129) $ 16,231,838

January 1 to March 31, 2021:

Photomask and Medical segment

Total

~64~

semiconductor segment Revenue from external clients $ 1,274,513 Segment revenue ($ 30,451) Segment margin $ 365,138 Segment margin include: Depreciation ($ 98,178) Amortization expense ($ 1,473) Financial Costs ($ 18,355) Interest income $ 666 Investments income recognized by using equity method ($ 50,867) Segment assets $ 10,395,824	$ 1,550 $ - ($ 27,864) ($ 1,361) ($ 41) ($ 270) $ 15 $ - $ 291,077	$ 1,276,063 ($ 30,451) $ 337,274 ($ 99,539) ($ 1,514) ($ 18,625) $ 681 ($ 50,867) $ 10,686,901

(III) Reconciliation for segment income

Sales between segments are conducted according to the principle of transactions at fair value. The operating revenue from external customers reported to the operating decision maker is measured in a manner consistent with that in the income statement.

The consolidated income, assets and liabilities of related segments are consistent with the consolidated income, consolidated assets and consolidated liabilities, so there is no reconciliation information.

~65~

Taiwan Mask Corporation and Subsidiaries Loans to Others January 1 to March 31, 2022

Table 1

Unit: NT$Thousand (Unless otherwise specified)

Related	Maximum balance of the	Range of interest Nature of	Amount of	Reason for	Limit on loans granted to
			transaction
			with borrower - - - - -	short-term	a single party 26,544 166,586 1,952,177 1,952,177 1,952,177
party? Y Y Y Y Y	period 30,000 140,000 750,000 330,000 8,000	rate loan 2% Short- term financing 2% Short- term financing 2% Short- term financing 2% Short- term financing 2% Short- term financing		financing Business operations Working capital Working capital Working capital Working capital

Note 1: The description of the number columns are as follows:
(1) Fill in 0 for the issuer.
(2) The investee company is numbered in sequence starting from Arabic numeral 1 according to company type.
Note 2: Amendment to the Procedures for Lending Funds to Others:
(1) Total amount of loans:The total amount of the Company's loans shall not exceed 40% of the Company's net value.
(2) For companies or businesses that have business dealings with the Company, the loan amount of each individual borrowers shall not exceed the amount of transactions between the two parties in the most recent year and not exceed 40% of the Company net value.
(3) For companies or businesses that have a short-term financing need, the loan amount of each individual borrowers shall not exceed the amount of transactions between the two parties in the most recent year and not exceed 40% of the Company net value.
(4) Inter-company loans of funds between overseas companies in which the Company owns, directly or indirectly, 100% of the voting shares, are not restricted by the abovementioned paragraphs. However, the total amount of loans and the amount of loan to a single party shall not exceed 50% of the Company's net value.
Note 3: Subsidiary - ADL Energy Corp Procedures for Lending Funds to Others:
(1) The total loan amount shall not exceed 50% of the Company’s net value. However, for companies or businesses that have a short-term financing need, the loan amount of each individual borrowers shall not exceed 40% of the Company net value.
(2) In addition to the provisions in (1), the loan amount of each individual borrower of companies or businesses that have business dealings with the Company shall not exceed the amount of transactions between the two parties. The amount of business transactions refers to the higher of the amount of goods purchased or sold between the parties.
(3) In addition to the provisions in (1), in which companies or businesses have a short-term financing need, and the loan amount of each individual borrowers not exceeding 40% of the Company net value, the financing amount refers to the accumulated balance of the company's short-term financing.
- Inter-company loans of funds between overseas companies in which the Company owns, directly or indirectly, 100% of the voting shares, or loans to the Company from any overseas companies in which the Company holds, directly or indirectly, 100% of the voting shares are not restricted by the abovementioned paragraphs. However, the total loan amount, limits for each individual borrower, and the period of loan should be specified. The total amount of loans lent between the overseas companies or to the parent company and the limit for each limit are specified as follows:
- I. The total amount loans to enterprises shall not exceed 50% of the Company’s net value. However, for companies or businesses that have a short-term financing need, the loan amount of each individual borrower shall not exceed 40% of the Company net value.

Table 1, page 1

  - II. For overseas companies that have business dealings with each other, the individual loan amount shall not exceed the amount of transactions between the two parties. The amount of business transactions refers to the higher of the amount of goods purchased or sold between the parties.

  - III. If there is a need for short-term financing, the loan amount of each individual borrowers shall not exceed 40% of the company's net value, and the financing amount refers to the accumulated balance of the short-term financing between overseas companies.

(4) The highest balance for the current period is the amount resolved by the board.
Note 4: Subsidiary - Miracle Technology Procedures for Lending Funds to Others
(1) Total amount of loans:The total amount of the Company's loans shall not exceed 40% of the Company's net value.
(2) For companies or businesses that have business dealings with the Company, the loan amount of each individual borrowers shall not exceed the amount of transactions between the two parties in the most recent year and not exceed 40% of the Company net value.
(3) For companies or businesses that have a short-term financing need, the loan amount of each individual borrowers shall not exceed the amount of transactions between the two parties in the most recent year and not exceed 40% of the Company net value.
(4) Inter-company loans of funds between overseas companies in which the Company owns, directly or indirectly, 100% of the voting shares, are not restricted by the abovementioned paragraphs. However, the total amount of loans and the amount of loan to a single party shall not exceed 50% of the Company's net value.
Note 5: Subsidiary - Innova Vision Procedures for Lending Funds to Others
(1) Total amount of loans:The total amount of the Company's loans shall not exceed 40% of the Company's net value.
(2) The loan amount of each individual borrower of companies or businesses that have business dealings with the Company shall not exceed the amount of transactions between the two parties in the past year. The amount of business transactions refers to the higher of the amount of goods purchased or sold between the parties, and shall not exceed 20% of the Company's net value.
(3) For companies or businesses that have a short-term financing need, the loan amount of each individual borrowers shall not exceed the amount of transactions between the two parties in the most recent year and not exceed 40% of the Company net value.
Note 6: Subsidiary - Youe Chung Capital Corporation Procedures for Lending Funds to Others
(1) Total amount of loans:The total amount of the Company's loans shall not exceed 40% of the Company's net value.
(2) For companies or businesses that have a short-term financing need, the loan amount of each individual borrowers shall not exceed the amount of transactions between the two parties in the most recent year and not exceed 40% of the Company net value.

Table 1, page 2

Taiwan Mask Corporation and Subsidiaries Endorsements and Guarantees to Others January 1 to March 31, 2022

Limits on Endorsement/Guarantee Amount Provided to Each	Maximum Balance for the Period $ 200,375 $ 20,000 126,168 150,000 150,000	Amount of Endorsement /	Ratio of Accumulated Endorsement/ Guarantee to Net	Ratio of Accumulated Endorsement/ Guarantee to Net		Guarantee Provided by	Unit: NT$Thousand (Unless otherwise specified) Guarantee Provided by Subsidiary to Parent Company Guarantee Provided to Subsidiaries in Mainland China Note N N Note 3 Y N Note 4 Y N Note 5 N N Note 6 N N Note 6
		Guarantee Collateralized	Equity per Latest			Parent Company to	Subsidiary to Parent Company N Y Y N N
Guaranteed (Note 3, 4, 5,				Financial Statements 4.10% 29.39% 40.21% 12.01% 2.40%
6) $ 229,550 19,908 135,180 158,025 158,025	$	by Properties $ - 19,500 122,276 - -			5, 6) $ 1,956,854 26,544 135,180 166,586 166,586	Subsidiary Y N N N N

Note 1: The description of the number columns are as follows:

(1) Fill in 0 for the issuer.
(2) The investee company is numbered in sequence starting from Arabic numeral 1 according to company type.
Note 2: The relationship between the guarantor and the guarantee are one of the seven types indicated below:
(1) A company with which it does business.
(2) A company in which the Company directly and indirectly holds more than 50% of the voting shares.
(3) A company that directly and indirectly holds more than 50% of the voting shares in the Company.
(4) Companies in which the Company holds, directly or indirectly, 90%, or more of the voting shares may make endorsements/guarantees for each other.
(5) A company that is mutually insured by a contract between peers or co-founders based on the needs of the contracted work.
(6) A company that is guaranteed by all contributing shareholders in proportion to their shareholdings due to a joint investment relationship.
(7) Companies that are engaged in joint and several guarantees for the performance guarantee of pre-sale housing sales contracts in accordance with the regulations of the Consumer Protection Act. Note 3: The Company's endorsement and guarantee practices for others provide that:
(1) The total amount of the Company's external endorsement guarantee shall not exceed 30% of the Company's paid-in capital.
(2) The amount of business transactions refers to the higher of the amount of goods purchased or sold between the parties.
(3) Companies with which the Company has a parent-child relationship: The amount of endorsement and guarantee for a single enterprise shall not exceed 10% of the Company's paid-in capital and the paid-in capital of the company being endorsed and guaranteed.
(4) The aggregate amount of the endorsement and guarantee of the Company and its subsidiaries as a whole shall not exceed 40% of the net worth of the Company, of which the endorsement and guarantee of a single subsidiary shall not exceed 20% of the net worth of the Company.

Note 4: Subsidiary - ADL Energy Corp Endorsement and Guarantee Procedures:

(1) The aggregate amount of cumulative external endorsement guarantees shall not exceed 40% of the net value of the Company's most recent audited or reviewed financial statements.
(2) The amount of the endorsement guarantee for a single enterprise shall not exceed 30% of the net value of the company's most recent audited or reviewed financial statements.
(3) The Company and its subsidiaries shall state in the shareholders' meeting the necessity and reasonableness of any endorsement or guarantee of more than 50% of the net value of the Company's most recent audited or reviewed financial statements.

Note 5: Miko-China Enterprise (Shanghai) Co., Ltd. Endorsement and Guarantee Procedures:

The total amount of endorsement and guarantee obligation is limited to RMB30 million, while the amount of endorsement and guarantee for a single enterprise shall not exceed RMB30 million. Note 6: Subsidiary - Miracle Technology Co., Ltd. Endorsement and Guarantee Procedures:

The total amount of endorsement and guarantee obligation is limited to NT$100 million, while the amount of endorsement and guarantee for a single enterprise shall not exceed NT$60 million.

Table 2, page 1

Taiwan Mask Corporation and Subsidiaries

Holding of marketable securities at the end of the period (not including subsidiaries, associates and joint ventures) March 31, 2022

Table 3

Unit: NT$Thousand (Unless otherwise specified)

Company name of the shareholding Marketable securities Relationship Taiwan Mask Corporation Common stocks of United Microelectronics Corporation None Financial Assets a Current Taiwan Mask Corporation Common stock of CHINA STEEL STRUCTURE CO., LTD None Financial Assets a Current Taiwan Mask Corporation Common stocks of Acer None Financial Asset at Current Taiwan Mask Corporation Common stocks of AVISION INC. through private placement. None Financial Asset at Current Taiwan Mask Corporation Common stocks of Pu-Shi Venture Capital None Financial Asset at Current Taiwan Mask Corporation Common stocks of Athena Capital None Financial Asset at Current Taiwan Mask Corporation Common stocks of Fu-Run Investment None Financial Asset at Current Youe Chung Capital Corporation Common stocks of United Microelectronics Corporation None Financial Assets a Current Youe Chung Capital Corporation Common stock of CHINA STEEL STRUCTURE CO., LTD None Financial Assets a Current Youe Chung Capital Corporation Common stocks of Microtek International None Financial Assets a Current Youe Chung Capital Corporation Common stock warrants of United Microelectronics Corporation None Financial Assets a Current Youe Chung Capital Corporation Common stocks of China Steel Corporation None Financial Assets a Current Youe Chung Capital Corporation Common stocks of Taiwan Mask Parent company Financial Asset at Current Youe Chung Capital Corporation Image Match Design Inc. The Company is a director of that company Financial Asset at Current Youe Chung Capital Corporation B Current Impact Investment The Company is a director of that company Financial Asset at Current Youe Chung Capital Corporation Common stocks of Acer None Financial Asset at Current Youe Chung Capital Corporation Investment fund of IP Venture Investment and Management Company None Financial Asset at Current	General ledger account t Fair Value Through Profit or Loss - t Fair Value Through Profit or Loss - Fair Value Through Profit or Loss - Non Fair Value Through Profit or Loss - Non Fair Value Through Profit or Loss - Non Fair Value Through Profit or Loss - Non Fair Value Through Profit or Loss - Non t Fair Value Through Profit or Loss - t Fair Value Through Profit or Loss - t Fair Value Through Profit or Loss - t Fair Value Through Profit or Loss - t Fair Value Through Profit or Loss - Fair Value Through Profit or Loss - Non Fair Value Through Profit or Loss - Non Fair Value Through Profit or Loss - Non Fair Value Through Profit or Loss - Non Fair Value Through Profit or Loss - Non	Period end Note Number of shares Book value Ownership Fair value 7,554,000 $ 407,916 0.06% $ 407,916 6,980,000 402,048 3.49% 402,048 6,150,000 184,193 0.20% 184,193 10,000,000 80,700 5.28% 80,700 201,600 - - - 82,810 - - - 713,235 7,132 10.53% 7,132 30,700,000 1,657,800 0.25% 1,657,800 18,298,000 1,053,965 9.15% 1,053,965 2,840,000 26,667 1.38% 26,667 4,812,000 23,267 - 23,267 908,000 35,367 0.01% 35,367 36,731,440 3,559,277 14.37% 3,559,277 1,890,000 4,639 5.44% 4,639 1,000,000 10,000 10.00% 10,000 33,460,000 1,002,127 1.10% 1,002,127 - 10,000 - 10,000

Table 3, page 1

Youe Chung Capital	Common stocks of Taiwan Calsonic		Financial Asset at Fair Value Through Profit or Loss - Non
Corporation	Co., Ltd.	None	Current	5,659,000 149,963	8.84% 149,963
			Financial Asset at Fair Value Through Profit or Loss - Non
Jingjing Investment Co., Ltd. G-TECH ELECTRONICS LTD.		None	Current	1,097,092 -	8.08% -
			Financial Asset at Fair Value Through Profit or Loss - Non
Jingjing Investment Co., Ltd. Memchip Technology Co., Ltd.		None	Current	187,915 -	3.13% -
	Common stocks of TOPFUN		Financial assets measured at fair value through other
Aptos Technology INC.	TECHNOLOGY INC.	None	comprehensive income - Non Current	100,000 -	9.52% -
	Franklin Templeton SinoAm Asia
	Pacific Balanced Fund-Accu.		Financial Assets at Fair Value Through Profit or Loss -
ADL Energy Corp	Beneficiary Certificate	None	Current	50,000 500	- 500
	Common stocks of Shenzhen He Mei
Miko-China Enterprise	Jing Yi Semiconductor Technology		Financial Asset at Fair Value Through Profit or Loss - Non
(Shanghai) Co., Ltd.	Co., Ltd.	None	Current	400,000 21,629	0.31% 21,629

Table 3, page 2

Taiwan Mask Corporation and Subsidiaries Significant inter-company transactions during the reporting periods January 1 to March 31, 2022 Table 4

	January 1 to March 31, 2022
Table 4 No. (Note 1) Name of the counterparty Counterparty 0 Taiwan Mask Corporation Miracle Technology CO., LTD. 0 Taiwan Mask Corporation Miracle Technology CO., LTD. 0 Taiwan Mask Corporation Miracle International Enterprise(Shanghai) Co., Ltd. 0 Taiwan Mask Corporation Miracle International Enterprise(Shanghai) Co., Ltd. 0 Taiwan Mask Corporation Aptos Technology INC. 0 Taiwan Mask Corporation Innova Vision INC. 0 Taiwan Mask Corporation Xsense Technology 1 Miracle Technology CO., LTD. Aptos Technology INC. 1 Miracle Technology CO., LTD. Aptos Technology INC. 1 Miracle Technology CO., LTD. Xsense Technology 1 Miracle Technology CO., LTD. Miracle International Enterprise(Shanghai) Co., Ltd. 1 Miracle Technology CO., LTD. Miracle International Enterprise(Shanghai) Co., Ltd. 1 Miracle Technology CO., LTD. Aptos Technology INC. 1 Miracle Technology CO., LTD. Aptos Technology INC. 1 Miracle Technology CO., LTD. ADL Energy Corp 1 Miracle Technology CO., LTD. ADL Energy Corp 2 Miko-China Enterprise (Shanghai) Co., Ltd. Miracle Technology CO., LTD. 3 Sichuan Miracle Power Technology Co., Ltd. Miracle Technology CO., LTD. 3 Sichuan Miracle Power Technology Co., Ltd. Miracle Technology CO., LTD. 4 Youe Chung Capital Corporation Aptos Technology INC. 4 Youe Chung Capital Corporation Aptos Technology INC. 4 Youe Chung Capital Corporation Xsense Technology 4 Youe Chung Capital Corporation Xsense Technology 4 Youe Chung Capital Corporation Xsense Technology Corporation	Relationship (Note 2) General ledger account 1 Sales 1 Endorsement and guarantee 1 Sales 1 Accounts Receivables 1 Rental income 1 Rental income 1 Rental income 3 Other Receivables 3 Endorsement and guarantee 3 Endorsement and guarantee 3 Sales 3 Accounts Receivables 3 Sales 3 Accounts Receivables 3 Sales 3 Accounts Receivables 3 Endorsement and guarantee 3 Sales 3 Accounts Receivables 3 Other Receivables 3 Interest income 3 Other Receivables 3 Interest income 3 Other Receivables	Unit: NT$Thousand (Unless otherwise specified) Status of transaction Percentage of consolidated total operating revenues or total assets (Note 3) Amount Transaction terms 2,625Net 60 0.15% 200,375 Same with other customers 1.23% 2,157Net 60 0.13% 2,897Net 60 0.02% 13,731 Same with other customers 0.80% 4,208Same with other customers 0.25% 12,184 Same with other customers 0.71% 140,000Receipt and payment at an agreed time 0.86% 10,000 Same with other customers 0.06% 50,000 Same with other customers 0.31% 4,439Net 30 0.26% 1,210Net 30 0.01% 2,659Net 60 0.16% 6,233Net 60 0.04% 6,894Net 60 0.40% 7,239Net 60 0.04% 122,276 Same with other customers 0.75% 8,047Net 30 0.47% 6,130Net 30 0.04% 450,000Receipt and payment at an agreed time 2.77% 2,315Receipt and payment at an agreed time 0.14% 230,000Receipt and payment at an agreed time 1.42% 1,436Receipt and payment at an agreed time 0.08% 8,000Receipt and payment at an agreed time 0.05%

Table 4, page 1

5	Aptos Technology INC.	Miracle Technology CO., LTD.	3	Sales	5,937Same with other customers	0.35%
6	ADL Energy Corp	Aptos Technology INC.	3	Other Receivables	26,500Receipt and payment at an agreed time	0.16%
6	ADL Energy Corp	Aptos Technology INC.	3	Endorsement and guarantee	19,500 Same with other customers	0.12%
7	Innova Vision INC.	Innova Vision Kabushiki Kaisha	3	Sales	2,887Same with other customers	0.17%
Note	1: The numbers filled in for	the transaction company in respect of inter-company	transactions	are as follows:

(1) Parent company is "0".
(2) The subsidiaries are numbered in order starting from "1".

Note 2: Relationship between transaction company and counterparty is classified into the following three categories; fill in the number of category each case belongs to (If transactions between parent company and subsidiaries or between subsidiaries refer to the same transaction, it is not required to disclose twice. For example, if the parent company has already disclosed its transaction with a subsidiary, then the subsidiary is not required to disclose the transaction; for transactions between two subsidiaries, if one of the subsidiaries has disclosed the transaction, then the other is not required to disclose the transaction):

(1) Parent company to subsidiary.
(2) Subsidiary to parent company.
(3) Subsidiary to subsidiaries.

Note 3: Regarding percentage of transaction amount to consolidated total operating revenues or total assets, it is computed based on period-end balance of transaction to consolidated total assets for balance sheet accounts and based on accumulated transaction amount for the period to consolidated total operating revenues for income statement account. Note 4: Only transactions with an amount of more than NT$1 million will be disclosed, and transactions with related parties will not be disclosed separately.

Table 4, page 2

Taiwan Mask Corporation and Subsidiaries

Names, locations and other information of investee companies (not including investees in China)

January 1 to March 31, 2022

Table 5 Initial investment amount Name of Investor Investee Location Main business activities Balance at the end of period End of the previous year Taiwan Mask Corporation SunnyLake Park International Holdings, Inc. British Virgin Islands Re-investment $ 103,045 $ 103,045 Taiwan Mask Corporation Youe Chung Capital Corporation Taiwan Re-investment 1,260,000 1,260,000 Taiwan Mask Corporation Advagene Biopharma Co., Ltd. Taiwan Medical, R&D, manufacturing 165,691 165,691 Taiwan Mask Corporation Miracle Technology CO., LTD. Taiwan Electronics components manufacturing, electronics materials and precision equipment distribution and power component design 211,332 229,696 Taiwan Mask Corporation Weida Hi-Tech Company Taiwan Display panel control chip and other module’s research, design, development, manufacturing and sales 293,371 293,371 Taiwan Mask Corporation Innova Vision INC. Taiwan Manufacturing, retail, wholesale and international trade of medical equipment 578,321 578,321 Youe Chung Capital Corporation Advagene Biopharma Co., Ltd. Taiwan Medical, R&D, manufacturing 60,021 60,021 Youe Chung Capital Corporation Xsense Technology Corporation British Virgin Islands Precious metal coating 317,965 317,965 Youe Chung Capital Corporation Aptos Technology INC. Taiwan Design, packaging and testing of NAND flash memory, solid state drives and 134,928 134,928	Shares held as of the end of period Number of shares Ownership Book value 3,120,000 100% $ 5,315 255,567,666 100% 1,321,166 12,549,652 25.46% 54,265 22,955,033 100% 452,574 12,176,880 28.20% 89,040 36,793,136 91.53% 219,410 2,613,223 5.30% 11,300 95,818,181 41.43% 76,158 33,732,108 38.16% ( 174,777)	Net profit (loss) of the investee for the current	Unit: NT$Thousand (Unless otherwise specified) Investment income(loss) recognized by the Company for the current period Note $ - ( 462,222) ( 9,289) 24,921 1,094 ( 16,453) ( 1,934) ( 19,945) ( 24,430)
		period $ - ( 902,761) ( 36,485) 24,921 3,880 ( 15,955) ( 36,485) ( 48,143) ( 64,014)

Table 5, page 1

			the related
			products
Youe Chung Capital	Innova Vision INC.	Taiwan	Manufacturing,	151,533	151,533	94,371	0.23%	692	( 15,955)	( 37)
Corporation			retail, wholesale
			and international
			trade of medical
			equipment
Youe Chung Capital	DIGITAL-CAN TECH. CO.,	Taiwan	3D Printing and	139,072	139,072	7,281,250	57.39%	131,506	( 3,471)	( 1,992)
Corporation	LTD.		Plastic Mold
			Design
Aptos Technology INC.	ADL Energy Corp	Taiwan	Electronic parts	413,050	413,050	11,984,526	100%	65,798	( 2,092)	( 2,092)
			and components
			and energy
			technical services
Aptos Technology INC.	New Sunrise Limited	Samoa	Re-investment	-	-	-	100%	-	-	-	Note
ADL Energy Corp	Aptos Global Holding Corp.	Seychelles	Re-investment	29,795	29,795	10,000,000	100%	-	-	-
Apotos Global Holding Corp.	Aptos Technology	Hong Kong	Re-investment	29,648	29,648	78,000,000	100%	-	-	-
	Co.,Limited
Miracle Technology CO., LTD.	Jingjing Investment Co., Ltd.	Taiwan	Re-investment	10,012	10,012	19,116,100	100%	252,059	10,751	10,751
Jingjing Investment Co., Ltd.	Miko Technology Co., Ltd	Hong Kong	Electronics	37	37	10,000	100%	6,279	( 50)	( 50)
			components
			manufacturing,
			electronics
			materials and
			precision
			equipment
			distribution and
			power component
			design
Innova Vision INC.	Innova Technology	Taiwan	Sales of contact	64,650	64,650	3,000,000	100%	( 3,257)	( 23)	( 23)
			lens
Innova Vision INC.	Innova Vision (B.V.I) Inc.	British Virgin	Re-investment	60,157	60,157	1,000,000	100%	80	( 520)	( 520)
		Islands
Innova Vision INC.	Innova Vision Kabushiki	Japan	Sales of contact	84,204	84,204	6,400	52.03%	168	( 515)	( 268)
	Kaisha		lens
Innova Vision (B.V.I) Inc.	Innova Vision Kabushiki	Japan	Sales of contact	56,420	56,420	5,900	47.97%	155	( 515)	( 247)
	Kaisha		lens

Note: As of March 31, 2022, the funds for shares have not been remitted.

Table 5, page 2

Taiwan Mask Corporation and Subsidiaries Information on investments in China Accumulated amount of remittance from Taiwan to China Amount remitted from Taiwan to China/Amount remitted back to Taiwan for the period Accumulated amount of remittance from Taiwan to China Net profit (loss) of the investee for the current period Remitted to Remitted back $ 3,283 $ - $ - $ 3,283 $ 13,002 10,215 - - 10,215 5,115 - - - - 8	Taiwan Mask Corporation and Subsidiaries Information on investments in China Accumulated amount of remittance from Taiwan to China Amount remitted from Taiwan to China/Amount remitted back to Taiwan for the period Accumulated amount of remittance from Taiwan to China Net profit (loss) of the investee for the current period Remitted to Remitted back $ 3,283 $ - $ - $ 3,283 $ 13,002 10,215 - - 10,215 5,115 - - - - 8	Taiwan Mask Corporation and Subsidiaries Information on investments in China Accumulated amount of remittance from Taiwan to China Amount remitted from Taiwan to China/Amount remitted back to Taiwan for the period Accumulated amount of remittance from Taiwan to China Net profit (loss) of the investee for the current period Remitted to Remitted back $ 3,283 $ - $ - $ 3,283 $ 13,002 10,215 - - 10,215 5,115 - - - - 8	Ownership	Recognized
the period Remitted to Remitted back $ - $ - - - - -			held by the
			Company
			(direct or indirect) 100% 100% 100%
	Taiwan to China	current period $ 13,002 5,115 8		2) period $ 13,002 $ 304,089 5,115 97,491 8 63,588
	$ 3,283 10,215 -

Name of Company Accumulated amount of remittance from Taiwan to China as of the end of the period Miracle Technology CO., LTD. $ 13,498	Accumulated amount of remittance from	Accumulated amount of remittance from	Investment amount approved by the Investment Commission of the Ministry	Investment amount approved by the Investment Commission of the Ministry	Ceiling on investments in China imposed	Ceiling on investments in China imposed
		Taiwan to China as of the end of the period $ 13,498				by the Investment Commission of MOEA $ 249,879
		$		of Economic Affairs (MOEA) $ 13,498		$

Note 1: Investment methods are classified into the following three categories; fill in the number of categories each case belongs to: (1). Directly invest in a company in China.
(2) Through investing in an existing company in the third area (please specify the company), which then invested in China.
(3). Others
Note 2: Investment income recognized by the Company for the current period
(1) If it is still under preparation with no actual gain or loss, it shall be indicated in the box.

Table 6, page 1

(2) The basis for recognition of the investment gains or losses is divided into the following three,
A. Financial statements reviewed by an international accounting firm that has a collaborative relationship with CPA firms in Taiwan.
B. Financial statements reviewed by a certified accountant or accounting firm who work with the parent company in Taiwan.
C. Unaudited financial reports.

Note 3: The relevant figures in this table should be presented in New Taiwan Dollars.

Note 4: It was originally invested through Misun Technology Co., Ltd. Since the aforementioned company has gone through dissolution and liquidation, it has been changed to Miracle Technology Co., Ltd. directly investing in Miracle International Enterprise(Shanghai) Co., Ltd.

Table 6, page 2

Taiwan Mask Corporation and Subsidiaries Information on Major Shareholders March 31, 2022 Table 7 Shares Name of Main Shareholders No. of shares held Ownership Youe Chung Capital Corporation 36,731,440 14.37%

Table 7, page 1

AI assistant

TMC — Interim / Quarterly Report 2022

52014_rns_2022-12-29_06c26079-e58c-47d0-8c53-83dcf58735f1.pdf

Taiwan Mask Corporation and Subsidiaries

’ Q1 2022 and 2021 Consolidated Financial Statements and Independent Auditor s

Review Report

Table of Contents

Introduction

Scope

Basis for qualified opinion

Qualified opinion

PricewaterhouseCoopers Taiwan

Taiwan Mask Corporation and Subsidiaries Consolidated Balance Sheets

March 31, 2022 and December 31 and March 31, 2021

Taiwan Mask Corporation and Subsidiaries Consolidated Balance Sheets

March 31, 2022 and December 31 and March 31, 2021

Taiwan Mask Corporation and Subsidiaries Consolidated Comprehensive Income Statements January 1 to March 31, 2022 and 2021

Taiwan Mask Corporation and Subsidiaries Consolidated Comprehensive Income Statements January 1 to March 31, 2022 and 2021

Taiwan Mask Corporation and Subsidiaries Consolidated Statement of Changes in Equity January 1 to March 31, 2022 and 2021

Taiwan Mask Corporation and Subsidiaries Consolidated Statements of Cash Flow

January 1 to March 31, 2022 and 2021

Taiwan Mask Corporation and Subsidiaries Consolidated Statements of Cash Flow

January 1 to March 31, 2022 and 2021

Taiwan Mask Corporation and Subsidiaries Notes to the Consolidated Financial Statements

Q1 2022 and 2021

(I) Company history

(II) Date and procedures for passing the financial report

(III) Application of New and Revised International Financial Reporting Standards

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

(IV) Summary of significant accounting policies

(1) Compliance statement

(2) Basis of Preparation

(3) Basis of consolidation

Balance Sheet

Statement of Comprehensive Income

Statements of Cash Flows

(4) Employee benefits

Pensions

Defined benefit plans

(5) Income tax

(V) Critical Accounting Judgments and Key Sources of Estimation and Uncertainty

(VI) Summary of Significant Accounting Items

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

(5) Inventories

(6) Investment under Equity Method

(7) Property, plant and equipment

(10) Real estate investment

(11) Other Non-Current Assets

(12) Short Term Loans

Range of interest

(13) Other Payables

(14) Corporate bonds payable

(15) Long-term Loans

(17) Capital

(19) Retained earnings

(20) Other equity interests

(21) Operating revenue

1. Segmentation of revenue from contracts with customers

2. Contract Liabilities

(22) Interest income

(23) Other Incomes

(24) Other Gains and Losses

(25) Financial Costs

(26) Expenses by nature

(27) Employee benefits expenditure

(28) Income tax

1. Income tax expense

January 1 to March 31, 2022 January 1 to March 31, 2021

(29) Earnings (loss) per share

(30) Supplemental cash flow information

Changes in liabilities arising from financing activities

- (VII) Related Party Transactions

(1) Related parties' names and relationship

(2) Significant transactions with the related parties

2. Account receivable from related parties

(VIII) Pledged Assets

3. Lease agreement

(X) Losses due to major disasters

(XI) Major Events after Financial Statement Date

(XII) Others

TMC Interim / Quarterly Report 2022