TMC - Interim / Quarterly Report 2022

Taiwan Mask Corporation and Subsidiaries Consolidated Financial Statements and Independent Auditor’s Review Report Q2 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

’ Q2 2022 and 2021 Consolidated Financial Statements and Independent Auditor s

Review Report

Items	Page
I. Cover Page	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 ~ 67
(I) Company History	14
(II) Date and Procedures for Approving the Financial Report	14
(III) Newly Released and Amended Standards and Interpretations	14 ~ 15
(IV) Summary of Significant Accounting Policies	15 ~ 20
(V) Critical Accounting Judgments and Key Sources of Estimation and
Assumption Uncertainties	21
(VI) Statement of Significant Accounting Items	21 ~ 50
(VII) Related-Party Transactions	51 ~ 52

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	Items	Page
(VIII) Pledged Assets		53
(IX) Significant Contingent	Liabilities and Unrecognized Contractual
Commitments		53
(X) Losses Due to Major Disasters		54
(XI) Major Events after Financial Statement Date		54
(XII) Others		54 ~ 64
(XIII) Supplementary Disclosure		65
(XIV) Segment Information		66 ~ 67

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Independent Auditor's Review Report (111) Tsai-Sheng-Bao-Zi No. 22001244

To Taiwan Mask Corporation,

Introduction

We have audited the accompanying consolidated balance sheets for the periods starting January 1 and ending June 30, 2022 and 2021, the consolidated statements of comprehensive income for the periods starting April 1 and ending June 30, 2022 and 2021 and starting January 1 and ending June 30, 2022 and 2021 and the consolidated statements of changes in equity and cash flows for the period starting January 1 and ending June 30, 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

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consolidated financial statements have not been reviewed by the CPA and the total amount of their assets as of June 30, 2022 and 2021 was NT$1,748,320 thousand and NT$991,753 thousand, accounting for 10.06% and 8.95% of the total consolidated assets, respectively; the total amount of their liabilities was NT$1,698,039 thousand and NT$858,625 thousand, accounting for 11.96% and 11.81% of the total consolidated liabilities, respectively; the total amount of comprehensive income from April 1 to June 30, 2022 and 2021 was NT$ (63,474) thousand and NT$ (160,672) thousand and that from January 1 to June 30, 2022 and 2021 was NT$ (201,724) thousand and NT$ (244,609) thousand, accounting for 16.21%, 106.78%, 29.22% and (189.66%) 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 June 30, 2022 and 2021 was NT$151,152 thousand and NT$176,142 thousand, accounting for 0.87% and 1.59% of the total consolidated assets, respectively; the share of losses of associates recognized using the equity method from April 1 to June 30, 2022 and 2021 was NT$ (24,597) and NT$ (11,006) and that from January 1 to June 30, 2022 and 2021 was NT$ (34,726) thousand and NT$ (61,873) thousand, accounting for 6.28%, 7.31%, 5.03% and (47.97%) 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 June 30, 2022 and 2021, the results of the consolidated financial operations from April 1 to June 30, 2022 and 2021 and that from January 1 to June 30, 2022 and 2021 and the consolidated cash flows from January 1 to June 30, 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 Certificate No. 0960072936 Financial Supervisory Commission of the Executive Yuan

Approval Document for Attestation: Jin-Guan-ZhengShen-Zi No. 1090350620

August 5, 2022

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Taiwan Mask Corporation and Subsidiaries Consolidated Balance Sheets

June 30, 2022 and December 31 and June 30, 2021

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

Assets	Notes	June 30, 2022 Amount % $ 2,260,721 13 2,425,497 14 37,838 - 141,144 1 3,783 - 1,662,026 10 15,404 - 177,226 1 56,341 - 429,349 3 142,187 1 56,489 - 7,408,005 43 2,244,139 13 51,145 - 151,152 1 5,179,436 30 623,138 4 161,408 1 441,009 2 7,301 - 1,109,001 6 9,967,729 57 $ 17,375,734 100	(After adjustment) December 31, 2021 Amount % $ 2,681,819 17 3,603,920 22 38,338 - 155,763 1 63 - 1,263,748 8 16,812 - 68,997 - 22,600 - 403,717 3 121,866 1 29,897 - 8,407,540 52 1,433,752 9 39,925 - 164,707 1 4,088,250 26 652,652 4 163,042 1 456,498 3 8,060 - 690,980 4 7,697,866 48 $ 16,105,406 100	Unit: NT$Thousand (After adjustment) June 30, 2021 Amount % $ 1,585,164 14 500 - 38,338 - 120,360 1 - - 1,043,814 10 11,620 - 21,443 - 21,562 - 245,506 2 172,022 2 43,675 1 3,304,004 30 2,595,421 24 44,422 - 176,142 2 3,751,758 34 519,142 5 37,668 - 378,856 3 5,611 - 262,740 2 7,771,760 70 $ 11,075,764 100
		Amount $ 2,260,721 2,425,497 37,838 141,144 3,783 1,662,026 15,404 177,226 56,341 429,349 142,187 56,489 7,408,005 2,244,139 51,145 151,152 5,179,436 623,138 161,408 441,009 7,301 1,109,001 9,967,729 $ 17,375,734	Amount $ 2,681,819 3,603,920 38,338 155,763 63 1,263,748 16,812 68,997 22,600 403,717 121,866 29,897 8,407,540 1,433,752 39,925 164,707 4,088,250 652,652 163,042 456,498 8,060 690,980 7,697,866 $ 16,105,406	Amount $ 1,585,164 500 38,338 120,360 - 1,043,814 11,620 21,443 21,562 245,506 172,022 43,675 3,304,004 2,595,421 44,422 176,142 3,751,758 519,142 37,668 378,856 5,611 262,740 7,771,760 $ 11,075,764
Current assets 1100 Cash and Cash Equivalents 1110 Financial Assets at Fair Value Through Profit or Loss - Current 1136 Financial Assets at Amortized Cost - Current 1140 Contract Asset - Current 1150 Notes Receivables (Net) 1170 Accounts Receivables (Net) 1180 Accounts Receivables - Related Parties (Net) 1200 Other Receivables 1220 Tax Assets 130X Inventories 1410 Prepayments 1470 Other Current Assets 11XX Total Current Assets Non-Current Assets 1510 Financial Asset at Fair Value Through Profit or Loss - Non Current 1535 Financial Assets at Amortized Cost - Non Current 1550 Investment under Equity Method 1600 Property, plant and equipment 1755 Right-of-use Asset 1760 Investment property (Net) 1780 Intangible assets 1840 Deferred Income Tax Assets 1900 Other Non-Current Assets 15XX Total Non-Current Assets 1XXX Total Assets	6(1) 6(2) and 8 6(3) and 8 6(22) 6(4) 6(4) 6(4) and 7 6(5) 6(2) and 8 6(3) and 8 6(6) 6(7) and 8 6(8) 6(10) and 8 6(11) 6(12)

(Continued)

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Taiwan Mask Corporation and Subsidiaries Consolidated Balance Sheets

June 30, 2022 and December 31 and June 30, 2021

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

Liabilities and Equities	Notes	June 30, 2022 Amount % $ 6,362,017 37 13,408 - 343,655 2 33,002 - 483,791 3 1,296,536 7 177,525 1 10,739 - 320,517 2 82,729 - 104,651 1 9,228,570 53 1,666,038 10 2,742,957 16 107,569 1 310,509 2 14,581 - 40,178 - 86,651 - 4,968,483 29 14,197,053 82 2,556,735 15 1,119,766 6 769,952 5 - - 409,500 2 13,081 - ( 1,703,521 ) ( 10) 3,165,513 18 13,168 - 3,178,681 18 $ 17,375,734 100	Unit: NT$Thousand (After adjustment) December 31, 2021 (After adjustment) June 30, 2021 Amount % Amount % $ 4,376,766 27 $ 3,404,254 31 - - - - 179,315 1 139,574 1 66 - 66 - 477,232 3 476,971 4 742,008 5 619,871 6 186,481 1 81,269 1 10,964 - 11,471 - 287,157 2 246,710 2 70,391 1 198,581 2 39,281 - 37,294 - 6,369,661 40 5,216,061 47 1,657,049 10 - - 2,651,808 16 1,620,474 15 95,339 1 86,478 1 368,484 2 284,390 3 14,999 - 18,213 - 6,908 - 6,871 - 100,646 1 37,039 - 4,895,233 30 2,053,465 19 11,264,894 70 7,269,526 66 2,556,735 16 2,527,136 23 1,315,828 8 630,722 5 656,037 4 587,990 5 - - 2,666 - 1,470,151 9 1,041,207 10 4,032 - ( 2,901) - ( 941,423) ( 6) ( 942,818) ( 8) 5,061,360 31 3,844,002 35 ( 220,848) ( 1) ( 37,764) ( 1) 4,840,512 30 3,806,238 34 $ 16,105,406 100 $ 11,075,764 100
		Amount $ 6,362,017 13,408 343,655 33,002 483,791 1,296,536 177,525 10,739 320,517 82,729 104,651 9,228,570 1,666,038 2,742,957 107,569 310,509 14,581 40,178 86,651 4,968,483 14,197,053 2,556,735 1,119,766 769,952 - 409,500 13,081 ( 1,703,521 ) 3,165,513 13,168 3,178,681 $ 17,375,734	Amount $ 4,376,766 - 179,315 66 477,232 742,008 186,481 10,964 287,157 70,391 39,281 6,369,661 1,657,049 2,651,808 95,339 368,484 14,999 6,908 100,646 4,895,233 11,264,894 2,556,735 1,315,828 656,037 - 1,470,151 4,032 ( 941,423) 5,061,360 ( 220,848) 4,840,512 $ 16,105,406
Current liabilities 2100 Short Term Loans 2120 Financial liabilities at fair value through profit or loss -- Current 2130 Contract Liabilities - Current 2150 Notes Payable 2170 Accounts Payable 2200 Other Payables 2230 Current Income Tax Liabilities 2250 Provision for Liabilities - Current 2280 Lease Liability - Current 2320 Long-term liabilities due within one year or one business cycle 2399 Other Current Liabilities - Other 21XX Total Current Liabilities Non-current liabilities 2530 Corporate bonds payable 2540 Long-term Loans 2570 Deferred Income Tax. 2580 Lease liability - Non Current 2640 Defined Benefit Liabilities - Non Current 2645 Guarantee Deposits Received 2670 Other Non-Current Liabilities - Other 25XX Total Non-Current Liabilities 2XXX Total Liabilities Equity attributable to shareholders of the parent company Capital 3110 Capital stock Capital surplus 3200 Capital surplus Retained earnings 3310 Legal reserve 3320 Special reserve 3350 Unappropriated earnings Other equity interests 3400 Other equity interests 3500 Treasury stock 31XX Total Equities Attributable to Parent Company 36XX Non-controlling Interests 3XXX Total Equities Major Commitments and Contingencies Major Events after Financial Statement Date 3X2X Total Liabilities and Equities	6(13) 6(2) 6(22) 6(14) 6(16) 6(15) 6(16) 6(18) 6(19) 6(20) 6(21) 6(18) 9 11

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 June 30, 2022 and 2021

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

																	Unit: NT$Thousand	Unit: NT$Thousand	Unit: NT$Thousand
													(Except for earnings (loss) per share in NT$)
									(After adjustment)								(After adjustment)
					April 1 to June	30,			April 1 to June	30,		January 1 to June 30,				January 1 to June		30,
					2022				2021				2022				2021
	Items	Notes			Amount	%			Amount	%			Amount	%			Amount	%
4000	Operating revenue	6(22) and
		7		$	1,994,321	100		$	1,492,111	100		$	3,701,813	100		$	2,768,174	100
5000	Operating costs	6(5)	(		1,376,286) (	69) (			1,195,730 ) (	80)	(		2,680,464) (	73) (			2,137,233) (	77)
5900	Gross profit				618,035	31			296,381	20			1,021,349	27			630,941	23
	Operating expenses	6(27)
		(28)
6100	Selling Expenses		(		49,208) (		2) (		40,989 ) (	3)	(		95,715) (		2) (		79,534) (		3)
6200	Administrative Expenses		(		79,293) (		4) (		189,707 ) (	13)	(		172,254) (		5) (		391,084) (	14)
6300	R&D Expenses		(		53,808) (		3) (		38,969 ) (	2)	(		106,369) (		3) (		63,044) (		2)
6450	Expected Credit Impairment	12(2)
	Benefit (Loss)		(		3,144)		-		2,150	-	(		4,602)		-		2,060		-
6000	Total Operating Expenses		(		185,453) (		9) (		267,515 ) (	18)	(		378,940) (	10) (			531,602) (	19)
6900	Operating profit				432,582	22			28,866	2			642,409	17			99,339		4
	Non-operating income and
	expenses
7100	Interest income	6(23)			1,918		-		1,109	-			3,685		-		1,790		-
7010	Other Incomes	6(24)			168,536		8		9,300	1			180,806		5		23,957		1
7020	Other Gains and Losses	6(25)	(		793,503) (	40) (			99,934 ) (	7)	(		1,281,094) (	34)			221,021		8
7050	Financial Costs	6(26)	(		41,438) (		2) (		19,108 ) (	1)	(		76,176) (		2) (		37,733) (		2)
7060	The share of affiliates and	6(6)
	joint venture profits and losses
	recognized by the equity
	method		(		24,597) (		1) (		11,006 ) (	1)	(		34,726) (		1) (		61,873) (		2)
7000	Total Non-Operating
	Incomes and Losses		(		689,084) (	35) (			119,639 ) (	8)	(		1,207,505) (	32)			147,162		5
7900	Net profit (loss) before tax		(		256,502) (	13) (			90,773 ) (	6)	(		565,096) (	15)			246,501		9
7950	Income Tax Expense	6(29)	(		129,509) (		7) (		57,386 ) (	4)	(		134,341) (		4) (		113,741) (		4)
8200	Net profit (loss) for the period		($		386,011) (	20) ($			148,159 ) (	10)	($		699,437) (	19)		$	132,760		5

(Continued)

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Taiwan Mask Corporation and Subsidiaries Consolidated Comprehensive Income Statements January 1 to June 30, 2022 and 2021

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

																		Unit: NT$Thousand	Unit: NT$Thousand	Unit: NT$Thousand	Unit: NT$Thousand
													(Except for earnings (loss) per share in NT$)
									(After adjustment)									(After adjustment)
					April 1 to	June	30,		April 1 to June	30,		January 1 to		June 30,			January 1 to		June	30,
					2022				2021				2022					2021
	Items	Notes			Amount		%		Amount	%			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
	benefit plan			$		-	-	($	1,758 )		-	$		-	-		$		-		-
8310	Total items that will not be
	reclassified subsequently to
	profit or loss					-	-	(	1,758 )		-			-	-				-		-
	Components of other
	comprehensive income that will
	be reclassified to profit or loss
8361	Financial statement translation	6(21)
	differences of foreign
	operations		(		5,567)		-	(	550 )		-		9,049		-	(		3,790)			-
8360	Total Components of other
	comprehensive income that
	will be reclassified to profit
	or loss		(		5,567)		-	(	550 )		-		9,049		-	(		3,790)			-
8300	Other Comprehensive Incomes
	(Net)		($		5,567)		-	($	2,308 )		-	$	9,049		-	($		3,790)			-
8500	Total comprehensive income
	for the year		($		391,578) (		20)	($	150,467 ) (	10) ($			690,388) (		19)		$	128,970			5
	Net Incomes (Losses)
	Attributable to:
8610	Parent Company		($		333,098) (		17)	($	61,659 ) (		4) ($		577,796) (		16)		$	272,709		10
8620	Non-controlling Interests		(		52,913) (		3)	(	86,500 ) (		6) (		121,641) (		3)	(		139,949) (			5)
	Total		($		386,011) (		20)	($	148,159 ) (	10) ($			699,437) (		19)		$	132,760			5
	Total Comprehensive Incomes
	(Losses) Attributable to:
8710	Parent Company		($		338,665) (		17)	($	63,967 ) (		4) ($		568,747) (		16)		$	268,919		10
8720	Non-controlling Interests		(		52,913) (		3)	(	86,500 ) (		6) (		121,641) (		3)	(		139,949) (			5)
	Total		($		391,578) (		20)	($	150,467 ) (	10) ($			690,388) (		19)		$	128,970			5
	Basic earnings (loss) per share	6(30)
9750	Net (loss) profit for the period		($				1.58)	($		0.30) ($					2.72)		$			1.33
	Diluted earnings (loss) per share	6(30)
9850	Net (loss) profit for the period		($				1.58)	($		0.30) ($					2.72)		$			1.31

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 June 30, 2022 and 2021

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

Unit: NT$Thousand

Notes					Equityattributable to shareholders	Equityattributable to shareholders	Equityattributable to shareholders	of theparent company	of theparent company	of theparent company			Non- controlling Interests
	Capital stock	Capital surplus			R	etained earnings		Other equityinterests			Treasurystock	Total
			Legal reserve			Special reserve	Unappropriated earnings	Financial statement translation differences of foreign operations		Unrealized gain (loss) on investments on financial assets at fair value through other comprehensive income
6(21) 6(19) 6(19) 6(21) 6(20) 6(19) 6(19) 6(19) 6(19)	$ 2,527,136 - - - - - - - $ 2,527,136 $ 2,556,735 - - - - - - - - - - - - $ 2,556,735	$ 439,898 - - - 21,650 169,174 - - $ 630,722 $ 1,315,828 - - - - - ( 241,189 ) 7,189 21,107 16,831 - - - $ 1,119,766		$587,990 - - - - - - - $587,990 $656,037 - - - 113,915 - - - - - - - - $769,952		$2,666 - - - - - - - $2,666 $ - - - - - - - - - - - - - $ -	$ 814,617 272,709 - 272,709 ( 46,119 ) - - - $ 1,041,207 $ 1,470,151 ( 577,796 ) - ( 577,796 ) ( 113,915 ) ( 241,189 ) - ( 127,751 ) - - - - - $ 409,500		$ 3,555 - ( 3,790 ) ( 3,790 ) - - - - ($ 235 ) $ 6,698 - 9,049 9,049 - - - - - - - - - $ 15,747	($ 2,666 ) - - - - - - - ($ 2,666 ) ($ 2,666 ) - - - - - - - - - - - - ($ 2,666 )	($ 834,598 ) - - - - 306,920 ( 415,140 ) - ($ 942,818 ) ($ 941,423 ) - - - - - - - - - ( 767,078 ) 4,980 - ($1,703,521 )	$ 3,538,598 272,709 ( 3,790 ) 268,919 ( 24,469 ) 476,094 ( 415,140 ) - $ 3,844,002 $ 5,061,360 ( 577,796 ) 9,049 ( 568,747 ) - ( 241,189 ) ( 241,189 ) ( 120,562 ) 21,107 16,831 ( 767,078 ) 4,980 - $ 3,165,513	($90,165 ) ( 139,949 ) - ( 139,949 ) 152,215 7,806 - 32,329 ($37,764 ) ($220,848 ) ( 121,641 ) - ( 121,641 ) - - - 153,187 - 2,230 - - 200,240 $13,168	$3,448,433 132,760 ( 3,790 ) 128,970 127,746 483,900 ( 415,140 ) 32,329 $3,806,238 $4,840,512 ( 699,437 ) 9,049 ( 690,388 ) - ( 241,189 ) ( 241,189 ) 32,625 21,107 19,061 ( 767,078 ) 4,980 200,240 $3,178,681

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

~11~

Taiwan Mask Corporation and Subsidiaries Consolidated Statements of Cash Flow

January 1 to June 30, 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 Credit Impairment loss (reversal
gain)

Dividend income

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

Loss (gain) on disposal of 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
Dividends Received
Interest Paid
Income Tax Paid
Net Cash In-Flow (Out-Flow) from
Operating Activities Notes
January 1 to June
30,2022
(After adjustment)
January 1 to June
30,2021
( $ 565,096 ) $ 246,501
6(27)
223,558
229,740
6(27)
20,306
7,926
12(2)
4,602 (
2,060 )
6(24)
(
148,098 ) (
593 )
6(23)
(
3,685 ) (
1,790 )
6(26)
76,176
37,733
4,980
-
6(25)
1,272,501 (
247,232 )
6(25)
48,908
12,308
6(18)
19,061
176,980
6(6)
34,726
61,873
6(25)
(
5,942 )
987
(
953,373 ) (
203,779 )
14,619 (
26,551 )
(
3,720 )
879
(
402,880 ) (
128,455 )
1,408 (
5,021 )
(
108,211 )
32,900
-
3,068
(
25,632 ) (
30,299 )
(
20,321 ) (
85,602 )
(
26,592 )
25,812
(
1,137 )
21,018
164,340
39,806
32,936 (
4,257 )
6,559
65,117
34,155
116,215
(
225 ) (
1,446 )
65,370
14,713
(
418 )
-
(
13,994) (
6,037)
(
255,119 )
350,454
3,667
1,805
148,098
593
(
73,580 ) (
37,576 )
(
130,314) (
99,290)
(
307,248)
215,986

(Continued)

~12~

Taiwan Mask Corporation and Subsidiaries Consolidated Statements of Cash Flow

January 1 to June 30, 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
Cash inflows from changes in consolidated
entities

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 June
30,2022
(After adjustment)
January 1 to June
30,2021
( $ 10,720 ) ( $ 7,626 )
- (
49,000 )
6(31)
-
22,508
6 (32)
(
1,636,262 ) (
670,323 )
19,352
2,810
(
4,817 ) (
11,329 )
(
9,439 ) (
3,035 )
(
1,641,886 ) (
715,995 )
6 (33)
3,214,322
2,439,417
6 (33)
(
1,229,071 ) (
1,373,881 )
6 (33)
145,604
107,096
6 (33)
(
42,117 ) (
20,124 )
-
306,920
(
767,078 ) (
415,140 )
6 (33)
(
20,002 ) (
23,769 )
6 (33)
33,270
1,742
200,240
32,329
1,535,168
1,054,590
(
7,132 ) (
6,075 )

(
421,098 )
548,506
6(1)
2,681,819
1,036,658
6(1)
$ 2,260,721 $ 1,585,164

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

Q2 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 August 5, 2022.

III. Application of New and Revised International Financial Reporting Standards

(I) 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:

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

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

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

Effective Date Issued by Newly released / corrected / amended standards and interpretations IASB

~14~

Amendment to IAS 1 - "Disclosure of Accounting Policies" January 1, 2023 Amendment to IAS 8 - "Definition of Accounting Estimates" January 1, 2023 January 1, 2023 Amendments to IAS 12, "Deferred Income Taxes Related to Assets and 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.

(III) 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:

standards and interpretations of the International Financial Reporting IASB but not yet recognized by the FSC:	Standards issued by the
Newlyreleased/corrected/amended standards and interpretations	Effective Date Issued by IASB
IFRS 10 and IAS 28 amendments, Sale or contribution of assets between an investor and its associate or joint venture IFRS 17 - Insurance contracts Amendment to IFRS 17 - Insurance contracts Amendment to IFRS 17 "Initial Application of IFRS 17 and IFRS 9 -- Comparative Information" Amendment to IAS 1 "Classification of Liabilities as Current or Non- Current"	To be determined by the IASB January 1, 2023 January 1, 2023 January 1, 2023 January 1, 2023

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.

(I) 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". IAS 34 -- Interim Financial Reporting
The consolidated financial report should be read in conjunction with the 2021 consolidated financial report.

(II) 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.

~15~

The preparation of financial reports in compliance with the International Financial Reporting Standards, International Accounting Standards, IFRIC Interpretations, and SIC Interpretations as endorsed by the FSC (collectively referred herein as the "IFRSs”) requires the use of 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.

(III) 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:

Name of Investor	Name of Subsidiary	Main Business Activity	June 30, 2022	Ownership (%) December 31, 2021	June 30, 2021	Explanation

Taiwan Mask Corporation Taiwan Mask Corporation Taiwan Mask Corporation Taiwan Mask Corporation Youe Chung Capital Corporation Youe Chung Capital Corporation Youe Chung Capital Corporation Youe Chung Capital Corporation Aptos Technology INC. Aptos	SunnyLake Park International Holding, Inc. Youe Chung Capital Corporation Miracle Technology CO., LTD. Innova Vision INC. Innova Vision INC. Aptos Technology INC. Xsense Technology Corporation Digital-Can Tech. Co., Ltd. ADL Energy Corp New Sunrise	Name of Investor Name of Investor Electronics components manufacturing, electronics materials and precision equipment distribution and power component design Manufacturing, retail, wholesale and international trade of medical equipment Manufacturing, retail, wholesale and international trade of medical equipment Design and packaging of NANDflash memory, solid state drives and the related products and testing of precious metal coatings 3DPrinting and Plastic Mold Design Electronic parts and components and energy technical services Name of Investor	100 100 100 91.53 0.23 47.19 52.93 57.39 100 100	100 100 100 91.53 0.23 38.16 41.43 57.39 100 100	100 100 100 91.53 0.23 38.16 41.43 - 100 100	Note 5 Note 5 Note 5 Note 3, Note 5 Note 4, Note 5 Note 1, Note 5 Note 2, Note 5 Note 5

~16~

Name of Investor	Name of Subsidiary	Main Business Activity	June 30, 2022	Ownership (%) December 31, 2021	June 30, 2021	Explanation

Technology INC. ADL Energy Corp Miracle Technology CO., LTD. Miracle Technology CO., LTD. Jingjing Investment Co., Ltd. Jingjing Investment Co., Ltd. Miko-China Enterprise (Shanghai) Co., Ltd. Miracle International Enterprise (Shanghai) Co., Ltd. Innova Vision INC. Innova Vision INC. Innova Vision INC. Innova Vision (B.V.I.) Inc.	Limited Aptos Global Holding Corp. Jingjing Investment Co., Ltd. Miracle International Enterprise (Shanghai) Co., Ltd. Miko-China Enterprise (Shanghai) Co., Ltd. MIKO Technology Co., Ltd. Sichuan Miracle Power Technology Co., Ltd. Sichuan Miracle Power Technology Co., Ltd. Innova Technology Innova Vision (B.V.I.) Inc. Innova Vision Kabushiki Kaisha Innova Vision Kabushiki Kaisha	Name of Investor Name of Investor Electronics components manufacturing, electronics materials and precision equipment distribution and power component design Electronics components manufacturing, electronics materials and precision equipment distribution and power component design Electronics components manufacturing, electronics materials and precision equipment distribution and power component design IC product design, production and sales IC product design, production and sales Medical equipment retail and wholesale Name of Investor Medical equipment retail and wholesale Medical equipment retail and wholesale	100 100 100 100 100 79.17 20.83 100 100 52.03 47.97	100 100 100 100 100 79.17 20.83 100 100 52.03 47.97	100 100 100 100 100 79.17 20.83 100 100 52.03 47.97	Note 5 Note 5 Note 5 Note 5 Note 5

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: Adl Technology was renamed ADL Energy Corp on January 5, 2022.

Note 3: 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.
Note 4: In April 2021, the Group participated in the management decisions and operating

~17~

policies of Xsense Technology Corporation and therefore included the firm in the consolidated financial statements as a consolidated entity from that date.

Note 5: As it does not meet the definition of a significant subsidiary, the financial statements as of June 30, 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.

~18~

Subsidiaries that have non-controlling interests that are material to the Corporate Group: None.

The total non-controlling interests of the Group as of June 30, 2022, December 31 and June 30, 2021 were $13,168, ($220,848) and ($37,764), respectively. The following information shows subsidiaries that have non-controlling interests that are material to the Corporate Group:

Name of Subsidiary	Non-controllingInterests	Non-controllingInterests	Non-controllingInterests	Non-controllingInterests	Non-controllingInterests	Non-controllingInterests
	June 30,2022			December 31,2021
	Amount $ 580	Ownership in%		Amount ($ 245,715) Non-controlling		Ownership in%
Aptos Technology and its subsidiaries Name of Subsidiary		52.81%				61.84% Interests
				June 30, 2021
				Amount	Ownership in%
Aptos Technology and its subsidiaries			($ 153,965)		61.84%

Aggregate financial information of subsidiaries: Balance Sheet

Aptos Technologyand its subsidiaries	Aptos Technologyand its subsidiaries	Aptos Technologyand its subsidiaries
June30,2022	December31,2021	June30,2021
$ 505,969 572,273 ( 844,867) ( 232,276)	$ 391,993 560,687 ( 1,159,778) ( 190,261)	$ 390,360 403,487 ( 907,458) ( 155,649)
$ 1,099	($ 397,359)	($ 269,260)

Statement of Comprehensive Income

Aptos Technology and its subsidiaries

April 1 to June 30, 2022 April 1 to June 30, 2021

~19~

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 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	$ 167,951 $ 135,622 ( 39,909) ( 68,020) - - ( 39,909) ( 68,020) ( 39,909) ( 68,020) - - ($ 39,909) ($ 68,020) Aptos Technologyand its subsidiaries	$ 135,622
		( 68,020) -
		( 68,020)
		( 68,020) - ($ 68,020)
	January1 to June 30,2022 $ 356,565	January1 to June 30,2021
		$ 239,197
	( 103,923) - ( 103,923) ( 103,923) - ($ 103,923)	( 152,911) -
		( 152,911)
		( 152,911) -
		($ 152,911)

Statements of Cash Flows

Net cash generated from (used in) operating activities Net cash (used in) generated from financing activities Net cash generated from financing activities Increase in cash and cash equivalents Beginning balance of cash and cash equivalents End balance of cash and cash equivalent	Aptos Technologyand its subsidiaries January1 toJune30,2022 January1 toJune30,2021 $ 38,797 ($ 105,643) ( 63,088) 3,156 196,345 159,943 172,054 57,456 34,148 39,193 s $ 206,202 $ 96,649	Aptos Technologyand its subsidiaries January1 toJune30,2022 January1 toJune30,2021 $ 38,797 ($ 105,643) ( 63,088) 3,156 196,345 159,943 172,054 57,456 34,148 39,193 s $ 206,202 $ 96,649
		January1 toJune30,2021
		($ 105,643) 3,156 159,943
		57,456 39,193
		$ 96,649

(IV) Employee benefits

Pensions

Defined benefit plans

~20~

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

(V) 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. Statements of main accounting items

Statements of main accounting items
(I) Cash Cash on hand Checking accounts and demand deposits Time deposits Total		June 30, 2022 431 1,878,490 381,800 2,260,721	December 31, 2021 $ 295 1,637,066 1,044,458 $ 2,681,819		June 30, 2021
	$ $		$ $	$ $	2,826 1,511,973 70,365 1,585,164

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.

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

Items	June 30,2022 $ 2,282,211 - 500 2,282,711 142,786 $ 2,425,497 $ 13,408	December 31, 2021 $ 2,464,617 5,000 500 2,470,117 1,133,803 $ 3,603,920 $ -	June 30,2021
Current items: Financial assets enforced at fair value through profit or loss Shares of listed and OTC company Convertible bond call/put options Beneficiary certificates Valuation adjustment Financial liabilities enforced at fair value through profit or loss Convertible bond call/put options			$ - - 500
			500 -
			$ 500
			$ -

~21~

Non-current items:

n-current items:
Financial assets enforced 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	$ 2,213,423 122,619 20,000 2,356,042 ( 111,903) $ 2,244,139	$ 1,155,128 124,287 10,000 1,289,415 144,337 $ 1,433,752	$ 1,515,591 95,354 10,000
			1,620,945 974,476
			$ 2,595,421

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

loss are as follows:
Financial assets enforced at fair value through profit or loss Shares of listed and OTC company Not listed, OTC or emerging stock board stocks Financial assets enforced at fair value through profit or loss Shares of listed and OTC company Not listed, OTC or emerging stock board stocks	April 1 to June 30, 2022 ($ 800,402) `－` ($ 800,402) January 1 to June 30, 2022 ($ 1,321,409) `－` ($ 1,321,409)	April 1 to June 30, 2021
		($ 60,533) `－`
		($ 60,533)
		January 1 to June 30, 2021
		$ 256,729 6,048
		$ 262,777

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.

(III) Financial assets measured at amortized cost

Items Current items: Demand Deposit Time deposits Non-current items: Time deposits	June 30, 2022 $ 15,338 22,500 $ 37,838 $ 51,145	December 31, 2021 $ 15,338 23,000 $ 38,338 $ 39,925	June 30, 2021
			$ 18,338 20,000
			$ 38,338
			$ 44,422

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

~22~

Interest income Interest income	April 1 toJune30,2022 $ 35	April 1 toJune30,2021
		$ 28
	January1 to June 30,2022 $ 66	January1 to June 30,2021
		$ 58

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 $88,983, $78,263 and $82,760 as of June 30, 2022, December 31 and June 30, 2021, respectively.
Please see Note 8 on how the Group provides financial assets at amortized cost as a pledged collateral.

(IV) Notes and accounts receivable

Notes Receivables Accounts Receivables Accounts Receivables`－`Related Parties Less: Loss allowance	June 30,2022	December 31,2021 $ 63 $ 1,273,787 16,812 1,290,599 ( 10,039) $ 1,280,560	June 30,2021
	$ 3,783		$ -
	$ 1,676,667 15,404		$ 1,053,139 11,620
	1,692,071 ( 14,641)		1,064,759 ( 9,325)
	$ 1,677,430		$ 1,055,434

Aging of accounts receivable notes receivable is as follows:

June 30, 2022 Accounts Receivables Notes Receivables $ 1,333,744 $ 3,783 275,432 64,434 2,145 16,316 $ 1,692,071 $ 3,783	December 31, 2021	December 31, 2021
Accounts Receivables $ 1,333,744 275,432 64,434 2,145 16,316 $ 1,692,071	Accounts Receivables $ 1,060,909 188,933 29,361 1,891 9,505 $ 1,290,599	Notes Receivables
		$ 63
		63
	June 30,2021
	Accounts Receivables $ 917,253 103,447 34,961 1,193	Notes Receivables
		$

~23~

More than 181 days past due

7,905 $ 1,064,759
	$

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

As of June 30, 2022, December 31 and June 30, 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 $1,677,430, $1,280,560 and $1,055,434, respectively, as of June 30, 2022 and December 31 and June 30 of 2021.
Please refer to Note 12 (2) for the information on credit risk of accounts receivable.
(V) Inventories

	June 30, 2022
Cost $ 319,542 71,528 101,475 49,921 $ 542,466	(Gain from reversal of) loss allowance on decline in market value of inventories ($ 82,370) ( 8,694) ( 20,953) ( 1,100) ($ 113,117) December31,2021	Book value
		$ 237,172 62,834 80,522 48,821
		$ 429,349

Cost $ 333,094 62,502 66,550 32,526 $ 494,672	(Gain from reversal of) loss allowance on decline in market value of inventories ($ 61,865) ( 9,068) ( 18,889) ( 1,133) ($ 90,955) June 30,2021	Book value
		$ 271,229 53,434 47,661 31,393
		$ 403,717

Cost $ 219,439 26,698 35,071 20,551	(Gain from reversal of) loss allowance on decline in market value of inventories ($ 27,027) ( 10,424) ( 17,536) ( 1,266)	Book value
		$ 192,412 16,274 17,535 19,285

~24~

Total $ 301,759 ($ 56,253) $ 245,506

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) Cost of goods sold Loss on falling prices of inventory and inventory obsolescence (gain from recovery)	April 1 to June 30, 2022 $ 1,374,365 1,921 $ 1,376,286 January1 toJune30,2022 $ 2,653,095 27,369 $ 2,680,464	April 1 to June 30, 2021
		$ 1,217,233 ( 21,503)
		$ 1,195,730
		January1 toJune30,2021
		$ 2,164,180 ( 26,947)
		$ 2,137,233

From April 1 to June 30, 2021 and January 1 to June 30, 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.

(VI) Investment under Equity Method

Investment under Equity Method
Affiliates: Advagene Biopharma Co., Ltd. Weida Hi-Tech Company	June 30,2022 $ 60,119 91,033 $ 151,152	December 31, 2021 $ 76,809 87,898 $ 164,707	June 30,2021
			$ 96,573 79,569
			$ 176,142

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

are summarized as follows:
April 1 to June 30, 2022 Net loss of current period from continuing operations ($ 24,597)1 Other comprehensive income (net after tax) - Total comprehensive income for the year ($ 24,597) January1 to June 30, 2022 Net loss of current period from continuing operations ($ 34,726) Other comprehensive income (net after tax) -	April 1 to June 30, 2021
	($ 11,006) -
	($ 11,006)
	January1 to June 30, 2021
	($ 61,873) -

~25~

34,726) [（][$]

Total comprehensive income for the year ($

61,873)

As of June 30, 2022 and December 31 and June 30 , 2021, the Group held 30.76% and 28.20%, 30.76% and 28.20%, and 32.09% and 36.70% 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.

~26~

(VII) Property, plant and equipment

Buildings and structures (including land)	Machinery and equipment	Transportation equipment	Mold equipment	Other equipment	Unfinished construction and equipment under acceptance	Total
$ 2,338,013 ( 654,360)	$ 3,625,129 ( 1,563,467)	$ 6,544 । ( 3,444)	$ 18,784 ( 6,472)	$ 61,730 ( 5,504)	$ 246,016 -	$ 6,342,768 ( 2,254,518)
$ 1,683,653	$ 2,061,662	$ 3,100	$ 12,312	$ 56,226	$ 246,016	$ 4,088,250
	$ 2,061,662 776,165 ( 307,499) 307,499 ( 117,965) ( 3,223) 27 ( 3)	$ 3,100 - - - । ( 466) - 20 । ( 22)	$ 12,312 1,399 - - ( 1,257) - - -	$ 56,226 25,829 ( 13,796) 386 ( 9,131) 3,582 - -	$ 246,016 375,274 - - - ( 78,258) - -	$ 4,088,250 1,254,544 ( 321,295) 307,885 ( 199,213) 49,239 77 ( 51)
$ 1,810,045	$ 2,716,663	$ 2,632	$ 12,454	$ 63,096	$ 543,032	$ 5,179,436
$ 2,530,121 ( 720,076)	$ 4,090,599 ( 1,373,936)	$ 6,564 । ( 3,932)	$ 20,183 ( 7,729)	$ 77,345 ( 14,249)	$ 543,032 -	$ 7,325,333 ( 2,145,897)
$ 1,810,045	$ 2,716,663	$ 2,632	$ 12,454	$ 63,096	$ 543,032	$ 5,179,436

~27~

January 1,2021 Cost Accumulated depreciation 2021	Buildings and structures (including land)	Machinery and equipment	Office equipment	Transportation equipment	Other equipment	Unfinished construction and equipment under acceptance	Total
	$ 1,841,566 ( 566,920)	$ 2,931,096 ( 1,273,724)	$ 28,540 ( 15,004)	$ 3,675 ( 2,620)	$ 39,856 । ( 17,539)	$ 135,172 -	$ 4,990,296 ( 1,882,197)
	$ 1,274,646	$ 1,657,372	$ 13,536	$ 1,055	$ 22,317	$ 135,172	$ 3,108,099
	$ 1,274,646 164,230 - - ( 37,438) 303,534 - - - - $ 1,704,972	$ 1,657,372 142,717 ( 5,186) 5,186 ( 138,284) 85,893 ( 25,586) 38,318 12 - $ 1,760,442	$ 13,536 5,520 ( 300) 71 ( 3,392) - - 5,229 ( 26) 6 $ 20,644	$ 1,055 2,290 - - ( 343) - - - ( 14) 13 $ 3,001	$ 22,317 12,649 । ( 26,551) 22,983 । ( 11,808) ( 660) - 2,335 - - $ 21,265	$ 135,172 187,751 - - - ( 86,057) - - - - $ 236,866	$ 3,108,099 518,420 ( 35,261) 31,464 ( 193,961) 302,710 ( 25,586) 45,882 ( 28) 19 $ 3,751,758
January 1 Add - Cost Disposals - Cost Disposal - Accumulated depreciation Depreciation Reclassification - Cost Re-classification - Accumulated depreciation Consolidated transfer in Net exchange differences - Cost Net exchange differences - Accumulated depreciation June 30 June 30,2021 Cost Accumulated depreciation
	$ 2,309,330 ( 604,358) $ 1,704,972	$ 3,192,850 ( 1,432,408) $ 1,760,442	$ 38,963 ( 18,319) $ 20,644	$ 5,951 ( 2,950) $ 3,001	$ 27,629 । ( 6,364) $ 21,265	$ 236,866 - $ 236,866	$ 5,822,019 ( 2,070,261) $ 3,751,758

~28~

The Group had no interest capitalization for investment property in the period between January 1 and June 30, 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.
(VIII) 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:

Land Buildings and structures Transportation equipment (company vehicles) Other equipment Land Buildings and structures Machinery and equipment Transportation equipment (company vehicles) Other equipment Land Buildings and structures Machinery and equipment Transportation equipment (company vehicles) `Other equipment`		June 30, 2022 book value December 31, 2021 book value June 30, 2021 book value 526,351 $ 536,478 $ 385,386 56,468 70,758 112,095 14,476 18,683 21,661 25,843 26,733 623,138 $ 652,652 $ 519,142 April 1 to June 30, 2022 April 1 to June 30, 2021 Depreciation Depreciation $ 6,381 $ 6,340 3,373 9,232 - 4,040 2,140 1,705 297 - $ 12,191 $ 21,317 January1 toJune30,2022 January1 toJune30,2021 Depreciation Depreciation $ 12,496 $ 10,658 5,118 14,200 - 6,060 4,207 3,143 890 - $ 22,711 $ 34,061	June 30, 2021 book value
	$		$ 385,386 112,095 21,661
	$		$ 519,142

~29~

For the period between April 1 and June 30, 2022 and 2021 and January 1 and June 30, 2022 and 2021, the increase (decrease) in right-of-use assets were $30,744 and $37,503 and ($6,803) and $47,943, respectively.
The information on profit or loss items related to lease contracts is as follows:

Items affecting current profit and loss Interest expenses on lease liabilities Expenses for short-term lease contracts Lease of low-value assets Items affecting current profit and loss Interest expenses on lease liabilities Expenses for short-term lease contracts Lease of low-value assets	April 1 to June 30, 2022 $ 1,702 `－` 97 January 1 to June 30, 2022 $ 3,507 526 173	April 1 to June 30, 2021
		$ 1,363 260 42 January 1 to June 30, 2021
		$ 2,722 2,665 84

The Group's total cash flow used in leases for the period between April 1 and June 30 of 2022 and 2021 and January 1 and June 30 of 2022 and 2021 was $12,225 and $14,845 and $24,208 and $29,240, 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.

(IX) 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 $3,380 and $5,005, and $9,673 and $11,257 based on operating lease contracts in the period between April 1 and June 30 of 2022 and 2021 and January 1 and June 30 of 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:

follows:
2021 2022 2023	June 30,2022 $ - 7,318 4,793 $ 12,111	December 31,2021 $ — 13,613 2,043 $ 15,656	June 30,2021
			$ 7,318 5,529 4,793
			$ 17,640

~30~

(X) Real estate investment

Buildings and structures

) Real estate investment	Buildings and structures
January 1, 2022 Cost Accumulated depreciation 2022 January 1 Depreciation June 30 June 30, 2022 Cost Accumulated depreciation January 1, 2021 Cost Accumulated depreciation 2021 January 1 Business merger and transfer out Depreciation June 30 June 30, 2021 Cost Accumulated depreciation	$ 175,370 ( 12,328)
	$ 163,042
	$ 163,042 ( 1,634)
	$ 161,408
	$ 175,370 ( 13,962)
	$ 161,408
	Buildings and structures
	$ 319,557 ( 6,458)
	$ 313,099
	$ 313,099 ( 273,713) ( 1,718)
	$ 37,668
	$ 45,844 ( 8,176)
	$ 37,668

1. 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 Rental income from investment property	April 1 to June 30,2022 $ 2,929 $ 646 January1 toJune30,2022 $ 6,996	April 1 to June 30,2021
		$ 558
		$ 189
		January1 toJune30,2021
		$ 8,498

~31~

Direct operating expenses incurred by investment properties that generate rent income in the period $ 1,290 $ 1,756

The fair value of the investment property held by the Group as of June 30, 2022, December 31 and June 30, 2021 were $128,463, $168,813 and $40,043, respectively. They were evaluated using the income method and were of Level 3 fair value and the key assumptions are as follows:

are as follows:
Discount rate Annual rent (net income) Number of years	June 30, 2022 3.82% $ 17,359 2~20	December 31, 2021 4.49% $ 16,286 2~20	June 30, 2021
			4.98% $ 2,246 45

No capitalization of interest for investment property in the period between January 1 and June 30, 2022 and 2021.
As of June 30, 2022, December 31 and June 30, 2021, the investment properties had been used as collaterals.

(XI) Intangible assets

angible assets
January 1 Cost Accumulated amortization and impairments January 1 Addition - From separate acquisition Acquired Amortization expense June 30 June 30 Cost Accumulated amortization and impairments			2022
	Trademark and concession	Computer software	Patents $ 9,592 ( 5,735) $ 3,857 $ 3,857 - ( 264) $ 3,593 $ 9,592 ( 5,999) $ 3,593	Goodwill	Total
	$ 202,452 ( 9,502)	$ 68,980 ( 59,318)		$ 250,029 -	$ 531,053 ( 74,555)
	$ 192,950	$ 9,662		$ 250,029	$ 456,498
	$ 192,950 - ( 17,071)	$ 9,662 4,817 ( 2,971)		$ 250,029 - -	$ 456,498 4,817 ( 20,306)
	$ 175,879	$ 11,508		$ 250,029	$ 441,009
	$ 202,452 ( 26,573)	$ 73,797 ( 62,289)		$ 250,029 -	$ 535,870 ( 94,861)
	$ 175,879	$ 11,508		$ 250,029	$ 441,009

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2021

	Trademark and	Trademark and	Computer	Computer
		concession		software	Patents			Goodwill			Total
January 1
Cost	$	98,223		$ 54,079	$	9,522 $		69,173		$	230,997
Accumulated	(	1,403)		(50,646)	(	5,224)				(	57,273)
amortization and
impairments					1				-
	$	96,820	$	3,433	$	4,298 $		69,173		$	173,724
January 1	$	96,820	$	3,433	$	4,298 $		69,173		$	173,724
Consolidated							-
transfer in		104,229		2,836				94,664			201,729
Addition - From
separate acquisition
Acquired		-		11,329			-		-		11,329
Amortization	(	4,091)	(	3,580)	(	255)				(	7,926)
expense					1				-
June 30	$	196,958	$	14,018	$	4,043 $		163,837		$	378,856
June 30
Cost	$	202,452	$	68,244	$	9,522 $		163,837		$	444,055
Accumulated	(	5,494)	(	54,226)	(	5,479)				(	65,199)
amortization and
impairments									-
	$	196,958	$	14,018	$	4,043 $		163,837		$	378,856
Other Non-Current Assets
			June 30, 2022			December		31,	June		30, 2021
						2021
Prepayments for equipment			$	1,078,550		$		671,105	$		160,522
Refundable deposit				25,265				15,826			15,827
Others					5,186			4,049			86,391
Total			$	1,109,001		$		690,980	$		262,740

(XII) Other Non-Current Assets

(XIII) Short Term Loans

Type of borrowings June 30,2022 Bank borrowings Credit loan $ 3,376,732 Secured borrowings 2,985,285	Range of interest rate 1.00%~2.81% 1.04%~4.00%	Collateral None Certificates of deposit, reserve accounts, stocks of listed and OTC

~33~

companies, treasury stock and investment properties.

$ 6,362,017

Range of Type of borrowingsDecember 31, 2021 interest rate Collateral Bank borrowings Credit loan $ 1,685,766 0.90%~2.60% None Secured Certificates of deposit, reserve borrowings 2,691,000 1.04%~2.45% accounts, stocks of listed and OTC companies, treasury stock and investment properties. $ 4,376,766

Range of Type of borrowings June 30, 2021 interest rate Collateral Bank borrowings None Credit loan $ 1,402,254 0.90%~2.60% Certificates of deposit, reserve Secured accounts, stocks of listed and OTC borrowings 2,002,000 1.04%~2.25% companies, treasury stock and investment properties. $ 3,404,254

For the period between April 1 and June 30, 2022 and 2021 and January 1 and June 30, 2022 and 2021, the interest expenses recognized in profit and loss were $8,193 and $5,956, and $15,709 and $12,392, respectively.

(XIV) Other Payables

Other Payables
Payroll and bonus payable Remunerations payable to employees and directors Payable on equipment Machine maintenance payable Dividends payable Others	June 30, 2022 $ 78,949 194,035 111,549 35,651 482,378 393,974 $ 1,296,536	December 31, 2021 $ 78,558 196,679 85,822 29,411 - 351,538 $ 742,008	June 30, 2021
			$ 57,912 176,105 56,820 23,813 - 305,221
			$ 619,871

(XV) Corporate bonds payable

Corporate bonds payable
Corporate bonds payable Less: Amount of exercised conversion options Less: Discount on corporate bonds payable	June 30, 2022	December 31, 2021 $ 2,000,000 ( 258,700) ( 84,251)	June 30, 2021
	$ 2,000,000 ( 258,700) ( 75,262)		$ - - -

~34~

Less: Corporate bonds matured in one year or a business cycle or have the put option exercised 1,666,038 - $ 1,666,038	Less: Corporate bonds matured in one year or a business cycle or have the put option exercised 1,666,038 - $ 1,666,038	1,657,049 - $ 1,657,049	- -
	$ 1,666,038		$ -

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 June 30, 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 June 30, 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

~35~

separation was 0.0902%.

separation was 0.0902%.
(XVI) 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 2027/08/14 1.800%~2.175% 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 2024/12/127 1.580%~1.930% 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%~1.675% Machinery and equipment Secured borrowings Repaid in instalments and different amounts according to the agreed period between 2020/11/09 and 2023/11/09. 1.040%~1.350% Houses and buildings and investment property Secured borrowings Repaid in instalments and different amounts according to the agreed period between 2017/09/27 and 2026/12/29. 1.500%~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 2027/08/14 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 2024/12/127 1.580% Buildings and structures	Range of interest rate	Collateral	June 30, 2022
			$ 1,250,000 250,000 270,000 850,000 205,686
			2,825,686 ( 82,729)
			$ 2,742,957
			December 31, 2021 $ 1,250,000 250,000

~36~

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 2020/11/09 and 2023/11/09. 1.440% Houses and buildings and investment property Secured borrowings Repaid in instalments and different amounts according to the agreed period between 2017/09/27 and 2026/12/29. 1.000%~3.730% Machinery, equipment and reserve account (Note) Less: Long-term borrowings (including current portion)	300,000 850,000 72,199
	2,722,199 ( 70,391)
	$ 2,651,808

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
2020/11/09 and 2023/11/09.
1.440%
Houses and
buildings and
investment property
Secured
borrowings
Repaid in instalments and
different amounts according
to the agreed period between
2017/09/27 and 2026/12/29.
1.000%~3.730%
Machinery,
equipment and
reserve account
(Note)
Less: Long-term borrowings (including current portion)

300,000
850,000
72,199

2,722,199
(
70,391)

$ 2,651,808

Type of borrowings	Borrowing period and payment method	Range of interest rate	Collateral		June 30, 2021
Long-term bank	Repaid in instalments and	1.797%~2.64%	Houses and	$	969,055
borrowings	different amounts according		buildings, machine
secured loan	to the agreed period		and other
	between 2017/09/27 and		equipment and
	2022/09/27.		reserve account
			(Note)
Secured	Repaid in instalments and	1.070%	Buildings and		850,000
borrowings	different amounts according		structures
	to the agreed period
	between 2020/11/09 and
	2022/08/14.				1,819,055
Less: Long-term	borrowings (including current	portion)		(	198,581)
				$	1,620,474

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.

(XVII) Pensions

(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,

~37~

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 April 1 and June 30 of 2022 and 2021, and January 1 and June 30 of 2022 and 2021, the pension costs recognized by the Corporate Group in accordance with the abovementioned pension measures were $0 and $536 and $0 and $1,073, respectively.

  - (3) The expected contributions to the defined benefit pension plans of the Group for the year ending December 31, 2023 are $2,133

(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 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 April 1 and June 30 of 2022 and 2021, and January 1 and June 30 of 2022 and 2021, the pension costs recognized by the Corporate Group in accordance with the abovementioned pension measures were $8,683 and $8,154 and $16,813 and $12,688, respectively.
(XVIII) Capital
As of June 30, 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:

Unit: Thousand shares

January 1 Treasury stocks transfer to employees Treasury Stock Buyback Treasury stock donation June 30	2022		2021
	(	214,107 - 8,864) 350	(	205,632 10,000 10,000) -
		205,593		205,632

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2. Treasury stock

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

Company name of the shareholding Reasons for buyback	June30,2022	June30,2022
	Number of shares (thousand) Bookvalue 36,731 $ 522,698 13,349 1,180,823 50,080 $ 1,703,521 December 31,2021	Bookvalue
Subsidiary - Youe Chung Capital Corporation Subsidiary holds the Company's stock to transfer shares to employees The Company Company name of the shareholding Reasons for buyback		$ 522,698 1,180,823
		$ 1,703,521
	Number of shares (thousand) 37,081 4,485	Bookvalue
Subsidiary - Youe Chung Capital Corporation Subsidiary holds the Company's stock to transfer shares to employees The Company Company name of the shareholding Reasons for buyback		$ 527,678 413,745
	41,566 $ 941,423 June30,2021	$ 941,423
	Number of shares (thousand) 37,081 10,000 47,081	Book value
Subsidiary - Youe Chung Capital Corporation Subsidiary holds the Company's stock to transfer shares to employees The Company		$ 527,678 415,140
		$ 942,818

(2) For the periods between January 1 and June 30, 2022 and 2021, the Group's sharebased payment arrangements were as follows:

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

~39~

periods of January 1 and June 30, 2022 and 2021 were $19,061 and $176,980, 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 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 June 30, 2022, and December 31 and June 30, 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$72.9, NT$108.00 and NT$83.6, 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.
(10) The Company was approved by the Board of Directors on May 6, 2022, 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 3.91% of the total issued shares. The buy-back of 10,000 thousand shares was completed and executed between May 9, 2022 and July 8, 2022.

(XIX) 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:

~40~

Trading of treasury stock Changes in ownership interests in subsidiaries recognized $ 695,046 $ 4,919 - - - 7,189 - - - 2,700 $695,046 $ 14,808 Changes in ownership interests in subsidiaries recognized	Changes in ownership interests in subsidiaries recognized	Stock option	Others	Total
	$ 4,919 - 7,189 - 2,700	$ 295,074 - - - 14,131	$ 4,459 - - - -	$ 1,315,828 ( 241,189) 7,189 21,107 16,831
	$ 14,808	$ 309,205	$4,459	$ 1,119,766
		Stock option	Others	Total
$ 6,097 3,443 -		$ - - 93,547	$ 3,882 - -	$ 439,898 21,650 169,174
$ 9,540		$ 93,547	$3,882	$ 630,722

(XX) 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.

~41~

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 of directors resolved on May 26, 2022 to distribute a cash dividend of NT$1.00 per ordinary share from the 2021 surplus with a total dividend of $255,674. NT$1.00 per share is to be distributed from the capital surplus, with a total of $255,674. In addition, as the Company implemented the transfer of 14,485 thousand shares of treasury stock to employees, which changed the number of outstanding shares to 241,189 thousand shares, so the cash dividend was adjusted to $241,189 to be distributed from the capital surplus of $241,189.
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.

(XXI) Other equity interests

ther equity interests
January 1 Difference in foreign currency translation: - Group June 30		2022
	Unrealized gains and losses ($ 2,666) - ($ 2,666)	Foreign currency translation $ 6,698 9,049 $ 15,747	Total
			$ 4,032 9,049
			$ 13,081

	2021
Unrealized gains and losses	Foreign currency translation	Total
($ 2,666)	$ 3,555 ( 3,790)	$ 889 ( 3,790)
($ 2,666)	($ 235)	($ 2,901)

(XXII) Operating revenue

Revenue from contracts with customers Revenue from contracts with customers	April 1 to June 30,2022 April 1 to June 30,2021
	$ 1,994,321 $ 1,492,111 January1 to June 30,2022 January1 to June 30,2021
	$ 3,701,813 $ 2,768,174

Segmentation of revenue from contracts with customers

The Corporate Group derives its revenue from the transfer of goods and services either

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over time or at a point in time. The revenue can be divided into the following main product lines:

roduct lines:
April 1 to June 30, 2022	Photomask and semiconductor segment $ 1,982,931 $ 1,795,170 187,761 $ 1,982,931 Photomask and semiconductor segment $ 1,492,143 $ 1,356,521 135,622 $ 1,492,143 Photomask and semiconductor segment $ 3,681,374 $ 3,213,661 467,713 $ 3,681,374 Photomask and semiconductor segment $ 2,766,656 $ 2,527,459 239,197 $ 2,766,656	Medical segment $ 11,390 $ 11,390 - $ 11,390 Medical segment ($ 32) ($ 32) - ($ 32) Medical segment $ 20,439 $ 20,439 - $ 20,439 Medical segment $ 1,518 $ 1,518 - $ 1,518	Total
Revenue from contracts with external customers Cut-off point of income recognition Income recognized at a particular point in time Income recognized gradually over time April 1 to June 30, 2021			$ 1,994,321
			$ 1,806,560 187,761
			$ 1,994,321
			Total
Revenue from contracts with external customers Cut-off point of income recognition Income recognized at a particular point in time Income recognized gradually over time January1 to June 30, 2022			$ 1,492,111
			$ 1,356,489 135,622
			$ 1,492,111
			Total
Revenue from contracts with external customers Cut-off point of income recognition Income recognized at a particular point in time Income recognized gradually over time January1 to June 30,2021			$ 3,701,813
			$ 3,234,100 467,713
			$ 3,701,813
			Total
Revenue from contracts with external customers Cut-off point of income recognition Income recognized at a particular point in time Income recognized gradually over time			$ 2,768,174
			$ 2,528,977 239,197
			$ 2,768,174

2. Contract Liabilities

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

Group:
Contract Assets Contract Liabilities	June 30,2022 $ 141,144 $ 343,655	December 31,2021 $ 155,763 $ 179,315	June 30,2021 $ 120,360 $ 139,574	January1,2021
				$ 93,809
				$ 99,418

~43~

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

period
April 1 to June 30, 2022 Opening balance of contract liabilities recognized in the current period (Including transfer of other income) $ 148,390 January 1 to June 30, 2022 Opening balance of contract liabilities recognized in the current period (Including transfer of other income) $ 155,666	April 1 to June 30, 2021
	$ 5,642
	January 1 to June 30, 2021
	$ 17,973

(XXIII) Interest income

Interest from bank deposits Interest income from financial assets measured at amortized cost Interest from bank deposits Interest income from financial assets measured at amortized cost	April 1 to June 30, 2022 $ 1,883 35 $ 1,918 January1 to June 30,2022 $ 3,619 66 $ 3,685	April 1 to June 30, 2021
		$ 1,081 28
		$ 1,109
		January1 to June 30,2021
		$ 1,732 58
		$ 1,790

(XXIV) Other Incomes

her Incomes
Rental income Dividend income Other income -- Others Rental income Dividend income Other income -- Others	April 1 to June 30, 2022 $ 3,380 148,098 17,058 $ 168,536 January1 to June 30,2022 $ 9,673 148,098 23,035 $ 180,806	April 1 to June 30, 2021
		$ 5,005 593 3,702
		$ 9,300
		January1 to June 30,2021
		$ 11,257 593 12,107
		$ 23,957

~44~

(XXV) Other Gains and Losses

ther Gains and Losses
Loss on disposal of property, plant and equipment Gain (loss) on disposal of investment Gain (loss) on foreign exchange Losses of financial assets at fair value through profit or loss Other losses -- Depreciation of investment properties Other gains and losses Gain (loss) on disposal of property, plant and equipment Loss on disposal of investments Gain (loss) on foreign exchange Gains (losses) of financial assets at fair value through profit or loss Other losses -- Depreciation of investment properties Other gains and losses	April 1 to June 30, 2022	April 1 to June 30, 2021
	$ - 58,928 24,699 ( 859,330) ( 817) ( 16,983) ($ 793,503)	($ 997) ( 12,308) ( 9,573) ( 70,030) ( 170) ( 6,856) ($ 99,934)
	January1 to June 30,2022	January1 to June 30,2021
	$ 5,942 ( 48,908) 53,331 ( 1,272,501) ( 1,634) ( 17,324)	($ 987) ( 12,308) ( 5,647) 247,232 ( 1,718) ( 5,551)
	($ 1,281,094)	$ 221,021

(XXVI) Financial Costs

nancial Costs
Bank borrowings Lease liabilities Bank borrowings Lease liabilities	April 1 to June 30, 2022 $ 39,736 1,702 $ 41,438 January1 to June 30,2022 $ 72,669 3,507 $ 76,176	April 1 to June 30, 2021
		$ 17,745 1,363
		$ 19,108
		January1 to June 30,2021
		$ 35,011 2,722
		$ 37,733

~45~

(XXVII) Expenses by nature

(XXVII) Expenses by nature
Employee benefits expenditure Depreciation Amortization Employee benefits expenditure Depreciation Amortization (XXVIII) Employee benefits expenditure Payroll expenses Share-based payment to employees Labor and health insurance fees Pension expense Other personnel expenses Payroll expenses Share-based payment to employees Labor and health insurance fees Pension expense Other personnel expenses	April 1 to June 30,2022 $ 208,909 89,718 16,010 January1 to June 30,2022 $ 458,398 223,558 20,306 April 1 to June 30,2022 $ 172,335 - 15,357 8,683 12,534 $ 208,909 January1 toJune30,2022 $ 366,922 19,061 32,705 16,813 22,897 $ 458,398	April 1 to June 30,2021
		$ 346,036 130,201 4,396
		January1 to June 30,2021
		$ 673,139 229,740 7,926
		April 1 to June 30,2021
		$ 250,738 60,870 16,721 8,690 9,017
		$ 346,036
		January1 toJune30,2021
		$ 440,794 176,980 27,139 13,761 14,465
		$ 673,139

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 April 1 and June 30 of 2022 and 2021, and January 1 and June 30 of 2022 and 2021, employees' remuneration was accrued at $0 and $11,985 and $0 and $51,071, respectively, and director remunerations were accrued at $0 and $6,428, and $0 and $8,918, respectively. The abovementioned amounts were listed as payroll expenses.

The Company was in a state of losses in the period between January 1 and June 30, 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 11.39% and 0.99% of profit of current period distributable for the period between January 1 and June 30, 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.

~46~

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”.

(XXIX) Income tax

1. Income tax expense

Components of income tax expense:

Current tax: Current tax on profits for the year Total current tax Deferred income tax: Origin and reversal of temporary differences Deferred income tax: Income Tax Expense Current tax: Current tax on profits for the year Total current tax Deferred income tax: Origin and reversal of temporary differences Deferred income tax: Income Tax Expense	April 1 to June 30, 2022 $ 75,271 75,271 54,238 54,238 $ 129,509 January 1 to June 30, 2022 $ 85,637 85,637 48,704 48,704 $ 134,341	April 1 to June 30, 2021
		$ 50,747
		50,747
		6,639
		6,639
		$ 57,386
		January 1 to June 30, 2021
		$ 101,200
		101,200
		12,541
		12,541
		$ 113,741

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

(XXX) Earnings (loss) per share

Earnings (loss) per share
`~47~` Basic loss per share Net loss attributable to ordinary shareholders of the parent Basic loss per share Net loss attributable to ordinary shareholders of the parent	April 1 to June 30,2022
	Amount after tax Average weighted share outstanding (thousand shares) ($ 333,098) 211,016 April 1 toJune30,2021	Average weighted share outstanding (thousand shares)	Loss per share (NT$)
		211,016	($ 1.58)

	Amount after tax ($ 61,659)	Average weighted share outstanding (thousand shares)	Loss per share(NT$)
		205,632	($ 0.30)

January1 toJune30,2022	January1 toJune30,2022
Amount after tax Average weighted share outstanding (thousand shares) ($ 577,796) 212,700 January1 to June 30,2021	Average weighted share outstanding (thousand shares)	Loss per share(NT$)
	212,700	($ 2.72)
	Average weighted share outstanding (thousand shares)	Earnings per share (NT$)
	205,362	$ 1.33
	205,362 2,289	$ 1.31
	207,651

The weighted average number of shares outstanding during the periods between April 1 and June 30 of 2022 and 2021 and January 1 and June 30 of 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 periods between April 1 and June 30 of 2022 and January 1 and June 30 of 2022 were at 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.

(XXXI) Business combination

The Group owns 41.43% of Xsense Technology Corporation, and Xsense Technology Corporation and its subsidiary Xsense Technology Corporation (B.V.I.) held a Board of Directors' meeting on March 25, 2021 to re-elect the Chairperson of the Board of Directors, and the president of the Company was elected. The new management team in April 2021, led by the President of the Company, is involved in the operating decisions and business policies, including strategic decisions, of Xsense Technology Corporation and its subsidiary, Xsense Technology Corporation (B.V.I.) and therefore the firm is included in the consolidated financial statements.

The information on the fair value of the acquired assets and assumed liabilities on the acquisition date and the share of non-controlling interests in the acquiree's identifiable net assets for the acquisition of Xsense Technology Corporation is shown as follows:

April 1, 2021

~48~

Fair value of previously held interests in Xsense Technology Corporation at the acquisition date Share of non-controlling interests in the identifiable net assets of the acquiree Fair value of acquired identifiable assets and assumed liabilities Cash Accounts Receivables Other Receivables Inventories Prepayments Other current assets Property, plant and equipment Intangible assets Deferred Income Tax Assets Other non-current assets Short Term Loans Contract Liabilities Notes Payable Accounts Payable Other Payables Other current liabilities Deferred Income Tax. Other non-current liabilities Total identifiable net assets Goodwill	$ 154,192 106,819 $ 261,011 April 1,2021
	$ 22,508 18,687 6,690 19,127 27,149 15,607 45,882 107,065 4,819 96,544 ( 40,000) ( 350) ( 4,257) ( 14,617) ( 63,602) ( 12,085) ( 20,846) ( 41,974)
	166,347
	$ 94,664

Non-controlling interest is measured by the proportion of the acquiree's net identifiable assets to the non-controlling interest.
The fair value of the identifiable net assets acquired as of April 1, 2021 was originally assessed at a provisional amount and the fair value of these net assets was determined after the end of the measurement period as described above. Among them, the initial valuations of inventories, PP&P and intangible assets were $47,425, $99,856 and $8,574, respectively, which were different from the fair values of $19,127, $45,882 and $107,065, respectively, identified in the purchase price apportionment report. The consolidated balance sheet for June 30, 2021 and December 31, 2021 and the consolidated statement of comprehensive income for April 1 to June 30 of 2021 and January 1 to June 30, 2021 were adjusted.
Since the Group merged with Xsense Technology Corporation on April 1, 2021, Xsense Technology Corporation contributed operating revenue and net loss before tax of $37,788 and ($66,677), respectively. If Xsense Technology Corporation had been merged since January 1, 2021, the Group's operating revenue and net profit before tax

~49~

would have been $2,789,271 and $229,667, respectively, for the Q2 2021.

(XXXII) Supplemental cash flow information

1. 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 June 30, 2022	January 1 to June 30, 2021
	$ 1,254,544 1,078,550 85,822 ( 671,105) ( 111,549)	$ 518,420 160,522 53,809 ( 5,608) ( 56,820)
	$ 1,636,262	$ 670,323

Financing activities with no cash flow effects:

January 1 to June 30, 2022 January 1 to June 30, 2021 Dividends payable (Distribution of cash from capital surplus) $ 482,378 $

(XXXIII) Changes in liabilities arising from financing activities

Short Term Loans Dividends payable January 1,2022 $ 4,376,766 $ - Change in cash flow from financing activities 1,985,251 - Interest expense - - Interest Paid - - Declared cash dividend paid - 482,378 Other non-cash transactions - - June 30,2022 $ 6,362,017 $ 482,378 Short Term Loans January 1,2021 $ 2,298,718 Change in cash flow from financing activities 1,065,536 Interest expense - Interest Paid - Other non-cash transactions 40,000	Dividends payable	Corporate bondspayable Long-term borrowings (including current portion) Lease liabilities Guarantee Deposits Received Total liabilities arising from financingactivities $ 1,657,049 $ 2,722,199 $ 655,641 $ 6,908 $ 9,418,563 - 103,487 ( 20,002) 33,270 2,102,006 8,989 - 3,507 - 12,496 - - ( 3,507) - ( 3,507) - - - 482,378 - - ( 4,613) - ( 4,613) $1,666,038 $ 2,825,686 $ 631,026 $ 40,178 $ 12,007,323 Long-term borrowings (including currentportion) Lease liabilities Guarantee Deposits Received Total liabilities arising from financingactivities $ 1,732,083 $ 506,926 $ 5,129 $ 4,542,856 86,972 ( 23,769) 1,742 1,130,481 - 2,722 - 2,722 - ( 2,722) - ( 2,722) - 47, 943 - 87, 943	Total liabilities arising from financingactivities
	$ - - - - 482,378 -		$ 9,418,563 2,102,006 12,496 ( 3,507) 482,378 ( 4,613)
	$ 482,378		$ 12,007,323

~50~

June 30, 2021 $ 3,404,254 $ 1,819,055 $ 531,100 $ 6,871 $ 5,761,280

VII. Related-Party Transactions

(I) Related parties' names and relationship

Name of the related parties

Relationship with the Group

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

(II) Significant transactions with the related parties

Operating revenue

1. Operating revenue
Product sales: Affiliates: Other related party Total Product sales: Affiliates: Other related party Total	April 1 to June 30, 2022 $ 146 8,491 $ 8,637 January1 toJune30,2022 $ 3,460 22,984 $ 26,444	April 1 to June 30, 2021
		$ - 12,438
		$ 12,438
		January1 toJune30,2021
		$ - 16,247
		$ 16,247

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

Account receivable from related parties

Accounts Receivables: Affiliates: Other related party Total	June 30, 2022 $ 1,133 14,271 $ 15,404	December 31, 2021 $ - 16,812 $ 16,812	June 30, 2021
			$ - 11,620
			$ 11,620

~51~

3. Acquisition of financial assets

January 1 to June 30, 2022: None.

January 1 to June 30, 2021 Number of shares Account item traded Acquisition price Investments accounted for using equity Other related party method 14,000,000 $ 49,000

4. Acquisition of other assets

Acquisition of other assets	her assets
Account item Other related party Intangible assets Others ) Rental income Affiliates: Other related party Affiliates: Other related party	Account item	January1 toJune30,2022 Acquisitionprice $ - April 1 to June 30, 2022 $ - 175 $ 175 January1 toJune30,2022 $ - 350 $ 350	January1 toJune30,2021 Acquisitionprice $ 8,926 April 1 to June 30, 2021
			$ 1,428 126
			$ 1,554
			January1 toJune30,2021
			$ 2,856 252
			$ 3,108

5. Others

(1) Rental income

(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.

(III) Compensation of key management personnel

Salary and short-term employee benefits Post-employment benefits Other long-term employee benefits Total Salary and short-term employee benefits Post-employment benefits Other long-term employee benefits Total	April 1 to June 30, 2022 $ 6,520 770 $ 7,290 January1 to June 30,2022 $ 11,874 850 $ 12,724	April 1 to June 30, 2021
		$ 5,889 31
		$ 5,920
		January1 to June 30,2021
		$ 14,259 110 9,419
		$ 23,788

~52~

VIII. Pledged assets

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

Assets Demand deposit (recognized as "Financial assets at amortized cost") Time deposit (recognized as "Financial assets at amortized cost") Stocks of publicly traded and OTC companies (recognized as "Financial assets at fair value through profit or loss") Shares of the Company (recorded as "treasury stock" Note) Buildings and structures (including land) Machinery and equipment and equipment under acceptance Real estate investment Other equipment		Book value December 31, 2021 June 30,2021 $ 15,338 $ 15,337 40,239 44,736 3,486,951 2,118,935 408,437 607,331 1,683,654 1,216,579 2,471,149 1,274,259 163,042 37,668 3,610 1,050 $ 8,272,420 $ 5,315,895	Purpose
	June 30,2022 $ 34,838 48,445 3,142,617 453,226 1,810,045 1,277,967 161,408 $ 6,928,546	December 31, 2021 $ 15,338 40,239 3,486,951 408,437 1,683,654 2,471,149 163,042 3,610 $ 8,272,420
			Reserve accounts for long- and short-term borrowings Short-term loans and guarantees for goods out of the free zone Short Term Loans Short Term Loans Long-term Loans Long- and short- term borrowings Long- and short- term borrowings Long- and short- term borrowings

Note: The cost of pledged treasury shares was $453,226, and fair value as of June 30, 2022 was $2,321,865.

IX. Material contingent liabilities and unrecognized contractual commitments

(I) Contingencies

Not applicable.

(II) Commitments

1. Machine equipment maintenance contracts that have been signed but not yet paid

June 30, 2022 Machine maintenance $ 35,651 Capital expenditures that have been signed but not yet June 30, 2022 Property, plant and equipment $ 319,475	December 31, 2021 $ 29,411 incurred December 31, 2021 $ 119,059	June 30, 2021
		$ 23,813
		June 30, 2021
		$ 66,098

2. Capital expenditures that have been signed but not yet incurred

3. Lease agreement

~53~

Please see Note 6 (8) and (9)

X. Losses due to major disasters

Not applicable.

XI. Major Events after Financial Statement Date

The extraordinary shareholder meeting on July 26, 2022 resolved to approve the issuance of ordinary shares by private placement.
The board meeting on August 5, 2022 resolved to approve the issuance of domestic secured corporate bonds.

XII. Others

(I) Capital management

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

(II) Financial instruments

Types of financial instrument

II) Financial instruments 1. Types of financial instrument
June30,2022 Financial assets Financial assets at fair value through profit or loss Financial assets enforced at fair value through profit or loss $ 4,669,636 Financial assets measured at amortized cost Cash $ 2,260,721 Financial assets measured at amortized cost 88,983 Notes Receivables 3,783 Accounts receivable (Including related parties) 1,677,430 Other accounts receivable (Including related parties) 177,226 Refundable deposit 25, 265 $ 4,233,408 Financial liabilities Financial liabilities at fair value through profit or loss Financial liabilities mandatorily measured at fair value through profit or loss $ 13,408 Financial liabilities at amortized cost Short Term Loans $ 6,362,017 Notes Payable 33,002 Accounts payable (Including related 483,791	December 31, 2021 $ 5,037,672 $ 2,681,819 78,263 63 1,280,560 68,997 15,826 $ 4,125,528 $ - $ 4,376,766 66 477,232	June30,2021
		$ 2,595,921
		$ 1,585,164 82,760 - 1,055,434 21,443 15,827
		$ 2,760,628
		$ —
		$ 3,404,254 66 476,971

~54~

parties) Other payables (Including related parties) Corporate bonds payable Long-term borrowings (including current portion) Guarantee Deposits Received Lease liabilities	1,296,536 1,666,038 2,825,686 40,178 $ 12,707,248 $ 631,026	742,008 1,657,049 2,722,199 6,908 $ 9,982,228 $ 655,641	619,871 - 1,819,055 6,871
			$ 6,327,088
			$ 531,100

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 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:

as follows:
(Foreign currency: functional currency) Financial assets Monetary items USD : NTD RMB : NTD JPY : NTD Financial liabilities Monetary items		June30,2022
	Foreign currency (in thousands) USD 46,791 CNY 187,820 JPY 37,755	Exchange rate 29.720 4.439 0.218	Book value (In thousands of NTD)
			$ 1,390,629 833,733 8,231

~55~

USD 20,778 29.720 617,522 CNY 14,355 4.439 63,722 JPY 349,895 0.218 76,277 December 31,2021	USD 20,778 29.720 617,522 CNY 14,355 4.439 63,722 JPY 349,895 0.218 76,277 December 31,2021	USD 20,778 29.720 617,522 CNY 14,355 4.439 63,722 JPY 349,895 0.218 76,277 December 31,2021
Foreign currency (in thousands) USD 45,460 CNY 146,650 JPY 92,077 USD 11,916 CNY 28,431 JPY 214,789	Exchange rate 27.680 4.344 0.241 27.680 4.344 0.241 June 30,2021	Book value (In thousands of NTD)
		$ 1,258,333 637,048 22,191 329,835 123,504 51,764
Foreign currency (in thousands) USD 29,443 CNY 144,019 JPY 86,782 USD 11,522 CNY 32,364 JPY 171,335	Exchange rate 27.865 4.310 0.252 27.865 4.310 0.252	Book value (In thousands of NTD)
		$ 820,429 620,722 21,869 321,061 139,489 43,176

B. Total exchange gains (losses), including realized and unrealized gains (losses) from significant foreign exchange variations on monetary items held by the Group amounted to $24,699 and ($9,573) for the periods between April 1 and June 30, 2022 and 2021 and $53,331 and ($5,647) for the periods between January 1 and June 30, 2022 and 2021, respectively.

~56~

C. The analysis of foreign currency risk due to significant exchange rate fluctuation is as follows:

January1 to June 30,2022	January1 to June 30,2022	January1 to June 30,2022
	SensitivityAnalysis
Fluctuation Effect on profit or loss Other comprehensive profit and loss affected 1% $ 13,906 $ - 1% 8,337 - 1% 82 - 1% ( 6,175) - 1% ( 637) - 1% ( 763) - January1 toJune30,2021		Other comprehensive profit and loss affected
	SensitivityAnalysis
Fluctuation 1% 1% 1% 1% 1% 1%	Effect on profit or loss $ 8,204 6,207 219 ( 3,211) ( 1,395) ( 432)	Other comprehensive profit and loss affected
		$ - - - - - -

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 June 30, 2022 and 2021 is an increase or decrease of $46,696 and $25,959, respectively; as for the other

~57~

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 June 30, 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 June 30, 2022 and 2021 is a decrease or increase of $9,188 and $5,223, respectively, mainly due to the interest expense changes caused by the floating interest rate.
(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 institutions 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:

~58~

(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 June 30, 2022, December 31 and June 30, 2021 are shown as follows:

Upto 30days	31-90days	91-180days	Total
0.05~1.95% $ 275,432 ( 69) Upto 30days	1.93~5.89% $ 64,434 ( 3,214) 31-90days	5.26~18.78% $ 2,145 ( 655) 91-180days	$ 1,692,071 ( 14,641) Total
0.01~1.95% $ 188,933 ( 2) Upto 30days	1.99~6.29% $ 29,361 ( 1,397) 31-90days	5.05~19.97% $ 1,891 ( 598) 91-180days	$ 1,290,599 ( 10,039) Total
0.01~1.95% $ 103,447 ( 1)	1.37~6.82% $ 34,961 ( 995)	4.52~21.60% $ 1,193 ( 535)	$ 1,064,759 ( 9,325)

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

receivable is shown as follows:
January 1 Recognize impairment loss June 30	2022
	Accounts Receivables
	$ 10,039 4,602
	$ 14,641

2021

~59~

January 1 Reversal for the period Impact from exchange rate June 30	Accounts Receivables
	$ 11,399 ( 2,060) ( 14)
	$ 9,325

(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 June 30, 2022, December 31 and June 30, 2021, the position of money market held by the Corporate Group is at $2,349,773, $2,760,287 and $1,621,175, 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	June 30,2022 $ 511,000 30,000 $ 541,000	December 31, 2021 $ 953,880 20,000 $ 973,880	June 30,2021
			$ 319,190 220,573
			$ 539,763

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:

June 30,2022 Non-derivative financial liabilities: Short Term Loans Notes Payable Accounts Payable	Within 1year $ 6,402,331 33,002 483,791	1to2years $ - - -	2to5years $ - - -	Over 5 years
				$ - - -

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Other payables (Including related parties) Lease liabilities Corporate bonds payable Long-term borrowings (including current portion) Guarantee Deposits Received December 31,2021 Non-derivative financial liabilities: Short Term Loans Notes Payable Accounts Payable Other payables (Including related parties) Lease liabilities Corporate bonds payable Long-term borrowings (including current portion) Guarantee Deposits Received June 30,2021 Non-derivative financial liabilities: Short Term Loans Notes Payable Accounts Payable Other payables (Including related parties) Lease liabilities Long-term borrowings (including current portion) Guarantee Deposits Received		1,296,536 425,294 - 84,623 - Within 1year		- 101,673 - 805,441 40,178 1to2years		- 127,154 1,741,300 1,859,994 - 2to5years $ - - - - 443,025 1,741,300 1,861,513 - 2to5years - - - - 206,844 - -		- - - - - Over 5 years
				$ - - - - 135,884 - 792,803 6,908 1to2years - - - - 119,383 1,674,675 6,871
			$		$

(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

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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:

June 30, 2022 Assets Recurring fair value measurements Financial Assets at Fair Value Through Profit or Loss Equity securities Beneficiary 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 or Loss Equity securities Beneficiary certificates Convertible bonds Total June 30, 2021 Assets	Level 1 $ 4,528,957 500 $ 4,529,457 $ 13,408 Level 1 $ 4,877,149 500 5,000 $ 4,882,649 Level 1	Level 2 $ 74,600 - $74,600 $ - Level 2 $ 102,400 - - $102,400 Level 2	Level 3 $ 65,579 - $65,579 $ - Level3 $ 52,622 - - $ 52,622 Level 3	Total $ 4,669,136 500 $ 4,669,636 $ 13,408
				Total
				$ 5,032,171 500 5,000
				$ 5,037,671
				Total

~62~

Recurring fair value measurements Financial Assets at Fair Value Through Profit or Loss Equity securities Beneficiary certificates Total	$ 2,563,713 500 $ 2,564,213	$ - - $ -	$ 31,708 - $ 31,708	$ 2,595,421 500
				$ 2,595,921

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 1), and the breakdown of the characteristics of the instrument is as follows:

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

(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 June 30, 2022 and 2021.
The following table shows the changes in Level 3 in the periods between January 1 and June 30, 2022 and 2021:

Equity securities

$ 52,622

January 1, 2022

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Acquisition cost of the period Impact from exchange rate June 30, 2022 January 1 to June 30, 2021	12,500 457
	$ 65,579
	Equitysecurities
	$ 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:

Significant unobservable inputs	Range (Weighted average)	Relationship between inputs and fair value
Net asset value Significant unobservable inputs	- Range (Weighted average)	The higher the net asset value, the higher the fair value. Relationship between inputs and fair value
Net asset value Significant unobservable inputs	- Range (Weighted average)	The higher the net asset value, the higher the fair value. Relationship between inputs and fair value
Net asset value	-	The higher the net asset value, the 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:

June 30, 2022

Financial assets Equity instrument s	Inputs Net asset value	Chang es ± 1%	Recognized in profit or loss Favorable changes Adverse changes $ 656 ($ 656)	Recognized in other comprehensive income	Recognized in other comprehensive income
			Favorable changes $ 656	Favorable changes $ -	Adverse changes
					$

December 31, 2021

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Recognized in profit or loss Recognized in other comprehensive income Favorable changes Adverse changes Favorable changes Adverse changes $ 526 ($ 526) $ - $ - June 30,2021	Recognized in other comprehensive income	Recognized in other comprehensive income
Favorable changes $ 526		Adverse changes
		$ -

Recognized in profit or loss Favorable changes Adverse changes $ 317 ($ 317)	Recognized in other comprehensive income
Favorable changes $ 317	Favorable changes $ -	Adverse 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 III.

Acquisition or sale of the same security with the accumulated cost exceeding $300 million or 20% of the Company's paid-in capital: Please refer to Table IV.
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 V.

(II) Information on investees

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

~65~

China): Please refer to Table VI.

(III) Information on investments in China

Basic information: Please refer to Table VIII.
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 VIII.

XIV. Segments 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 June 30, 2022:

shown as follows: January 1 to June 30, 2022:
Revenue from external clients Segment revenue Segment margin Segment margin include: Depreciation Amortization expense Financial Costs Interest income Investments income recognized by using equity method Segment assets	Photomask and semiconductor segment $ 3,681,374 ($ 65,122) ($ 514,746) ($ 212,288) ($ 16,045) ($ 75,014) $ 3,680 ($ 34,726) $ 16,962,440	Medical segment $ 20,439 $ - ($ 50,350) ($ 11,270) ($ 4,261) ($ 1,162) $ 5 $ - $ 413,294	Total
			$ 3,701,813
			($ 65,122)
			1($ 565,096)
			1($ 223,558)
			1($ 20,306)
			1($ 76,176)
			$ 3,685
			($ 34,726)
			$ 17,375,734

January 1 to June 30, 2021:

January 1 to June 30, 2021:
Revenue from external clients Segment revenue Segment margin	Photomask and semiconductor segment $ 2,766,656 ($ 62,489) $ 291,311	Medical segment $ 1,518 $ - ($ 44,810)	Total
			$ 2,768,174
			($ 62,489)
			1$ 246,501

~66~

Segment margin include: Depreciation Amortization expense Financial Costs Interest income Investments income recognized by using equity method Segment assets	($ 220,012) ($ 7,855) ($ 37,328) $ 1,779 ($ 61,873) $ 10,755,157	($ 9,728) 1($ 229,740) ($ 71) 1($ 7,926) ($ 405) 1($ 37,733) $ 11 $ 1,790 $ - ($ 61,873) $ 320,607 $ 11,075,764

(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.

~67~

Table 1

`Taiwan Mask Corporation and Subsidiaries`

Loans to Others

January 1 to June 30, 2022

Unit: NT$Thousand

(Unless otherwise specified)

`Related parties` `Reason` `No.` `Company that lent funds` `balance of the period` `Amount Actually Drawn` `Nature of lendi` `(Note 1)` `.` `Borrowing party` `General ledger` `Balance at` `Amount` `Range of` `1` `ADL Energy Corp` `Aptos Technology` `INC.` `Other Receivables－` `Related Parties` `Y` `28,000` `26,500` `26,500` `2%` `Short-term` `financing` `2` `Miracle Technology` `CO., LTD.` `Aptos Technology` `INC.` `Other Receivables－` `Related Parties` `Y` `140,000` `140,000` `140,000` `2%` `Short-term` `financing` `3` `Youe Chung Capital` `Corporation` `Aptos Technology` `INC.` `Other Receivables－` `Related Parties` `Y` `750,000` `200,000` `200,000` `2%` `Short-term` `financing` `3` `Youe Chung Capital` `Corporation` `Xsense Technology` `Other Receivables－` `Related Parties` `Y` `330,000` `200,000` `200,000` `2%` `Short-term` `financing` `3` `Youe Chung Capital` `Corporation` `Xsense Technology` `Corporation` `Other Receivables－` `Related Parties` `Y` `8,000` `-` `-` `2%` `Short-term` `financing`	`s for the need for short-term fin` `Business` `Amount of` `recognize` `d` `impairmen` `t loss` `Amount of` `-` `Business` `operations` `-` `-` `Working` `capital` `-` `-` `Working` `capital` `-` `-` `Working` `capital` `-` `-` `Working` `capital` `-`	`ancing` `Colla`	`Limit on loans` `granted to a` `single party` `Ceiling on` `total loan` `granted` `Value` `Note` `-` `26,544` `26,544` `Note 3` `-` `171,367` `171,367` `Note 4` `-` `1,336,066` `1,336,066` `Note 6` `-` `1,336,066` `1,336,066` `Note 6` `-` `1,336,066` `1,336,066` `Note 6` `teral`
		`Name`
		`-` `-` `-` `-` `-`

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 (4) 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.

       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.

(5) 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.

~68~

`Taiwan Mask Corporation and Subsidiaries`

Endorsements and Guarantees to Others

January 1 to June 30, 2022

`Table 2`

Unit: NT$Thousand
Unless otherwise specified)

`No.` `Endorser/guarantor` `(Note 1)` `0` `Taiwan Mask` `Corporation` `1` `ADL Energy Corp` `2` `Miko-China` `Enterprise` `(Sh` `h i) C` `3` `Miracle Technology` `CO., LTD.` `3` `Miracle Technology` `CO., LTD.`	`Guaranteed Pa`	`rty`	`Limit of` `endorsement and` `guarantee for a` `single` `enterprise` `Amount of` `Endorsemen` `t /` `Guarantee` `Collateral` `ized by` `Properties` `Ratio of` `Accumulated` `Endorsement/` `Guarantee to Net` `Equity per` `Latest Financial` `Statements` `Maximum` `Balance for` `the Period` `Ending Balance` `Amount` `Actually` `Drawn` `(Note 3, 4, 5,` `229,550` `$` `208,040` `$` `208,040` `$` `-` `$` `-` `$` `6.57%` `19,908` `19,500` `19,500` `19,500` `19,500` `29.39%` `133,170` `126,168` `124,292` `124,292` `124,292` `39.47%` `166,586` `150,000` `150,000` `150,000` `150,000` `35.01%` `166,586` `150,000` `-` `-` `-` `-`	`Maximum` `Endorsement/` `Guarantee Amount` `Allowable` `Guarantee` `Provided by` `Parent` `Company to` `Subsidiary` `Guarantee` `Provided by` `Subsidiary` `to Parent` `Company` `(Note 3, 4, 5, 6)` `Note` `1,266,206` `$` `Y` `N` `N` `Note` `3` `26,544` `N` `Y` `N` `Note` `4` `133,170` `N` `Y` `N` `Note` `5` `171,367` `N` `N` `N` `Note` `6` `171,367` `N` `N` `N` `Note` `6` `Guarantee Provided to Subsidiaries in Mainland China`
	`Name of Company`	`Relation` `ship` `(Note 2)`
	`Miracle Technology` `CO., LTD.` `Aptos Technology` `INC.` `Miracle Technology` `CO., LTD.` `Xsense Technology` `Aptos Technology` `INC.`	`2` `3` `3` `1` `1`

delete)

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 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.

~69~

Table 3

`Taiwan Mask Corporation and Subsidiaries`

Holding of marketable securities at the end of the period (not including subsidiaries, associates and joint ventures)
June 30, 2022

Unit: NT$Thousand
(Unless otherwise specified)

`Company name of` `the shareholding`	`Marketable securities`	`Relationship`	`General ledger account`		`End of`	`period`	`Fair value` `Note`
				`Number of` `shares`	`Book value`	`Ownership`
`Taiwan Mask` `Corporation` `Taiwan Mask` `Corporation` `Taiwan Mask` `Corporation` `Taiwan Mask` `Corporation` `Taiwan Mask` `Corporation` `Taiwan Mask` `Corporation` `Youe Chung` `Capital` `Corporation` `Youe Chung` `Capital` `Corporation` `Youe Chung` `Capital` `Corporation` `Youe Chung` `Capital` `Corporation` `Youe Chung` `Capital` `Corporation` `Youe Chung` `Capital` `Corporation` `Youe Chung` `Capital` `Corporation` `Youe Chung` `Capital` `Corporation` `Youe Chung` `Capital` `Corporation` `Youe Chung` `Capital` `Corporation` `Youe Chung` `Capital` `Corporation` `Youe Chung` `Capital` `Jingjing` `Investment Co.,` `Ltd.` `Jingjing` `Investment Co.,` `Ltd.` `Aptos Technology` `INC.` `ADL Energy Corp` `Miko-China` `Enterprise` `(Shanghai) Co.,` `Ltd.`	`Common stocks of United` `Microelectronics Corporation` `Common stocks of Acer` `Common stock of CHINA STEEL` `STRUCTURE CO., LTD` `Common stocks of AVISION INC.` `through private placement.` `Common stocks of Pu-Shi Venture` `Capital` `Common stocks of Fu-Run Investment` `Common stocks of United` `Microelectronics Corporation` `Common stocks of Acer` `Common stocks of Microtek` `International` `Common stock warrants of United` `Microelectronics Corporation` `Common stocks of China Steel` `Corporation` `Common stocks of Taiwan Mask` `Common stock of CHINA STEEL` `STRUCTURE CO., LTD` `Image Match Design Inc.` `B Current Impact Investment` `B Current Impact Investment` `Partnership` `Investment fund of IP Venture` `Investment and Management Company` `Common stocks of Taiwan Calsonic Co` `G-TECH ELECTRONICS LTD.` `Memchip Technology Co., Ltd.` `Common stocks of TOPFUN TECHNOLOGY` `INC.` `Franklin Templeton SinoAm Asia` `Pacific Balanced Fund-Accu.` `Beneficiary Certificate` `Common stocks of Shenzhen He Mei` `Jing Yi Semiconductor Technology` `Co., Ltd.`	`None` `None` `None` `None` `None` `None` `None` `None` `None` `None` `None` `Parent company` `None` `The Company is a director` `of that company` `The Company is a director` `of that company` `None` `None` `.` `None` `None` `None` `None` `None` `None`	`Financial Assets at Fair Value Through Profit or` `Loss - Current` `Financial Assets at Fair Value Through Profit or` `Loss - Current` `Financial Asset at Fair Value Through Profit or` `Loss - Non Current` `Financial Asset at Fair Value Through Profit or` `Loss - Non Current` `Financial Asset at Fair Value Through Profit or` `Loss - Non Current` `Financial Asset at Fair Value Through Profit or` `Loss - Non Current` `Financial Assets at Fair Value Through Profit or` `Loss - Current` `Financial Assets at Fair Value Through Profit or` `Loss - Current` `Financial Assets at Fair Value Through Profit or` `Loss - Current` `Financial Assets at Fair Value Through Profit or` `Loss - Current` `Financial Assets at Fair Value Through Profit or` `Loss - Current` `Financial Asset at Fair Value Through Profit or` `Loss - Non Current` `Financial Asset at Fair Value Through Profit or` `Loss - Non Current` `Financial Asset at Fair Value Through Profit or` `Loss - Non Current` `Financial Asset at Fair Value Through Profit or` `Loss - Non Current` `Financial Asset at Fair Value Through Profit or` `Loss - Non Current` `Financial Asset at Fair Value Through Profit or` `Loss - Non Current` `Financial Asset at Fair Value Through Profit or L` `Financial Asset at Fair Value Through Profit or` `Loss - Non Current` `Financial Asset at Fair Value Through Profit or` `Loss - Non Current` `Financial assets measured at fair value through` `other comprehensive income - Non Current` `Financial Assets at Fair Value Through Profit or` `Loss - Current` `Financial Asset at Fair Value Through Profit or` `Loss - Non Current`	`7,554,000` `2,000,000` `12,455,000` `10,000,000` `201,600` `713,235` `30,700,000` `19,200,000` `28,961,000` `8,322,000` `908,000` `36,731,440` `22,639,000` `1,890,000` `1,000,000` `250,000` `-` `5,659,000` `1,097,092` `187,915` `100,000` `50,000` `400,000`	`295,739` `$` `43,400` `688,762` `74,600` `-` `7,132` `1,201,905` `416,640` `438,759` `2,721` `25,833` `2,677,722` `1,251,937` `4,639` `10,000` `2,500` `20,000` `163,262` `-` `-` `-` `500` `21,307`	`0.06%` `0.07%` `6.23%` `5.18%` `-` `10.53%` `0.25%` `0.63%` `14.08%` `-` `0.01%` `14.37%` `11.32%` `5.44%` `10.00%` `-` `-` `8.84%` `8.08%` `3.13%` `12.27%` `-` `0.31%`	`295,739` `$` `43,400` `688,762` `74,600` `-` `7,132` `1,201,905` `416,640` `438,759` `2,721` `25,833` `2,677,722` `1,251,937` `4,639` `10,000` `2,500` `20,000` `163,262` `-` `-` `-` `500` `21,307`

~70~

`Taiwan Mask Corporation and Subsidiaries`

Acquisition or sale of the same security with the accumulated cost exceeding $300 million or 20% of the Company's paid-in capital

January 1 to June 30, 2022

Table 4

Unit: NT$Thousand

(Unless otherwise specified)

`Marketable securities (Note 1)` `Counterpartyelationsh` `Company that` `buys or sells` `General ledger` `account` `(Note 2)` `(Note` `2)` `Taiwan Mask` `Corporation` `CHINA STEEL` `STRUCTURE CO.,` `LTD` `Financial Asset at` `Fair Value Through` `Profit or Loss - Non` `Current` `-` `-` `Youe Chung` `Capital` `Corporation` `Microtek` `International` `Financial Assets at` `Fair Value Through` `Profit or Loss -` `Current` `-` `-` `Youe Chung` `Capital` `Corporation` `Acer` `Financial Assets at` `Fair Value Through` `Profit or Loss -` `Current` `-` `-` `Youe Chung` `Capital` `Corporation` `CHINA STEEL` `STRUCTURE CO.,` `LTD` `Financial Asset at` `Fair Value Through` `Profit or Loss - Non` `Current` `-` `-`	`Number of` `shares` `Amount` `Number of` `shares` `Amount` `6,980,000` `$ 413,216` `5,475,000` `$ 323,804` `-` `-` `35,151,000` `422,356` `33,460,000` `1,018,857` `-` `-` `15,923,000` `942,642` `6,716,000` `402,637` `Buy (Note 3)` `Beginning ofperiod`		`Sell/Reduc`	`e(Note 3)`		`End ofperiod`
		`Number of` `shares`	`Selling` `Price`	`Book Cost`	`Gains and` `Losses from` `Disposal`	`Number of` `shares` `Amount`
		`-` `( 6,190,000)` `( 14,260,000)` `-`	`$ -` `( 80,395)` `( 398,355)` `-`	`$ -` `( 69,019)` `( 354,931)` `-`	`$ -` `11,376` `43,424` `-`	`12,455,000` `$ 688,762` `28,961,000` `438,759` `19,200,000` `416,640` `22,639,000` `1,251,937`

Note 1: Marketable securities in the table refer to stocks, bonds, beneficiary certificates and other related derivative securities of the abovementioned items.
Note 2: For marketable securities that adopt the equity method, the two fields should be filled out and the rest are not required.
Note 3: Acquisition or sale of the same securities should be calculated separately at market price to see if they reach NT$300 million or 20% of the Company's paid-in capital.

~71~

Taiwan Mask Corporation and Subsidiaries

Significant inter-company transactions during the reporting periods

January 1 to June 30, 2022

`Table 5`

Unit: NT$Thousand
(Unless otherwise specified)

`No.` `(Note 1)`	`Name of the counterparty`	`Counterparty`	`Relationship`		`Status`	`of transaction`
				`General ledger`	`Amount`	`Transaction terms`	`Percentage of consolidated` `total operating revenues or` `total assets` `(Note 3)`
`0` `0` `0` `0` `0` `0` `0` `0` `1` `1` `1` `1` `1` `1` `1` `2` `3` `3` `4` `4` `4` `4` `5` `6` `6` `7` `delete)`	`Taiwan Mask Corporation` `Taiwan Mask Corporation` `Taiwan Mask Corporation` `Taiwan Mask Corporation` `Taiwan Mask Corporation` `Taiwan Mask Corporation` `Taiwan Mask Corporation` `Taiwan Mask Corporation` `Miracle Technology CO., LTD.` `Miracle Technology CO., LTD.` `Miracle Technology CO., LTD.` `Miracle Technology CO., LTD.` `Miracle Technology CO., LTD.` `Miracle Technology CO., LTD.` `Miracle Technology CO., LTD.` `Miko-China Enterprise (Shanghai)` `Co., Ltd.` `Sichuan Miracle Power Technology` `Co., Ltd.` `Sichuan Miracle Power Technology` `Co., Ltd.` `Youe Chung Capital Corporation` `Youe Chung Capital Corporation` `Youe Chung Capital Corporation` `Youe Chung Capital Corporation` `Aptos Technology INC.` `ADL Energy Corp` `ADL Energy Corp` `Innova Vision INC.`	`Miracle Technology CO., LTD.` `Miracle Technology CO., LTD.` `Miracle Technology CO., LTD.` `Miracle International` `Enterprise(Shanghai) Co., Ltd.` `Miracle International` `Enterprise(Shanghai) Co., Ltd.` `Aptos Technology INC.` `Innova Vision INC.` `Xsense Technology` `Aptos Technology INC.` `Aptos Technology INC.` `Xsense Technology` `Miracle International` `Enterprise(Shanghai) Co., Ltd.` `Miracle International` `Enterprise(Shanghai) Co., Ltd.` `Aptos Technology INC.` `ADL Energy Corp` `Miracle Technology CO., LTD.` `Miracle Technology CO., LTD.` `Miracle Technology CO., LTD.` `Aptos Technology INC.` `Aptos Technology INC.` `Xsense Technology` `Xsense Technology` `Miracle Technology CO., LTD.` `Aptos Technology INC.` `Aptos Technology INC.` `Innova Vision Kabushiki Kaisha`	`1` `1` `1` `1` `1` `1` `1` `1` `3` `3` `3` `3` `3` `3` `3` `3` `3` `3` `3` `3` `3` `3` `3` `3` `3` `3`	`Sales` `Endorsement and` `guarantee` `Rental income` `Sales` `Accounts Receivables` `Rental income` `Rental income` `Rental income` `Other Receivables` `Interest income` `Endorsement and` `guarantee` `Sales` `Accounts Receivables` `Sales` `Sales` `Endorsement and` `guarantee` `Sales` `Accounts Receivables` `Other Receivables` `Interest income` `Other Receivables` `Interest income` `Sales` `Other Receivables` `Endorsement and` `guarantee` `Sales`	`6,131` `208,040` `1,406` `5,749` `3,337` `26,951` `8,955` `24,367` `140,000` `1,338` `150,000` `13,712` `1,661` `3,739` `6,908` `124,292` `12,780` `1,117` `200,000` `4,405` `200,000` `2,719` `6,603` `26,500` `19,500` `7,569`	`Net 60` `Same with other` `customers` `Same with other` `customers` `Net 60` `Net 60` `Same with other` `customers` `Same with other` `customers` `Same with other` `customers` `Receipt and payment at` `an agreed time` `Receipt and payment at` `an agreed time` `Same with other` `customers` `Net 30` `Net 30` `Net 60` `Net 60` `Same with other` `customers` `Net 30` `Net 30` `Receipt and payment at` `an agreed time` `Receipt and payment at` `an agreed time` `Receipt and payment at` `an agreed time` `Receipt and payment at` `an agreed time` `Same with other` `customers` `Receipt and payment at` `an agreed time` `Same with other` `customers` `Same with other` `customers`	`0.17%` `1.20%` `0.04%` `0.16%` `0.02%` `0.73%` `0.24%` `0.66%` `0.81%` `0.04%` `0.86%` `0.37%` `0.01%` `0.10%` `0.19%` `0.72%` `0.35%` `0.01%` `1.15%` `0.12%` `1.15%` `0.07%` `0.18%` `0.15%` `0.11%` `0.20%`

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.

~72~

`Taiwan Mask Corporation and Subsidiaries`

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

January 1 to June 30, 2022

Table 6

Unit: NT$Thousand
(Unless otherwise specified)

Name of Investor
Investee
Location
Main business activities
Balance at the
end of period
End of the
previous year
Initial investment amount of the investee
income(loss)
Number of
shares
Ownership
Book value
Note
3,120,000
100%
5,519
$
1
$
1
$
534,877,568
100%
662,443
2,283,408)
(
961,315)
(
12,549,652
25.43%
49,758
54,477)
(
13,867)
(
22,955,033
100%
464,526
42,642

42,642
12,176,880
28.20%
91,033
4,997

17,972)
(
36,793,136
91.53%
189,707
46,389)
(
46,157)
(
2,613,223
5.30%
10,361
54,477)
(
2,887)
(
122,413,181
52.93%
39,486
86,148)
(
13,838)
(
28,481,161
47.19%
906
103,923)
(
39,640)
(
94,371
0.23%
620
46,389)
(
109)
(
7,281,250
57.39%
127,603
10,274)
(
5,896)
(
11,984,526
100%
61,471
6,419)
(
6,419)
(
-
100%
-
-
-
Note
10,000,000
100%
-
-
-
19,116,100
100%
259,625
22,613
22,613
10,000

100%
6,513
57)
(
57)
(
3,000,000
100%
3,282)
(
48)
(
48)
(
1,000,000
100%
114
504)
(
504)
(
6,400
52.03%
86
475)
(
247)
(
5,900
47.97%
80
475)
(
228)
(
Shares held as of the end of period

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
i l
d
i i
211,332
229,696
Taiwan Mask Corporation
Weida Hi-Tech Company
Taiwan
Display panel control chip and
other module’s research,
d
i
d
l
293,371
293,371
Taiwan Mask Corporation
Innova Vision INC.
Taiwan
Manufacturing, retail,
wholesale and international
d
f
di
l
i
578,321
578,321
Youe Chung Capital
Advagene Biopharma Co., Ltd.
Taiwan
Medical, R&D, manufacturing
60,021
60,021
Youe Chung Capital
Xsense Technology Corporation
British Virgin
Precious metal coating
325,965
317,965
Youe Chung Capital
Corporation
Aptos Technology INC.
Taiwan
Design, packaging and testing
of NAND flash memory, solid
d i
d
h
l
d
434,689
134,928
Youe Chung Capital
Corporation
Innova Vision INC.
Taiwan
Manufacturing, retail,
wholesale and international
d
f
di
l
i
151,533
151,533
Youe Chung Capital
C
i
DIGITAL-CAN TECH. CO., LTD.
Taiwan
3D Printing and Plastic Mold
D
i
139,072
139,072
Aptos Technology INC.
ADL Energy Corp
Taiwan
Electronic parts and
413,050
413,050
Aptos Technology INC.
New Sunrise Limited
Samoa
Re-investment
-
-
ADL Energy Corp
Aptos Global Holding Corp.
Seychelles
Re-investment
29,795
29,795
Miracle Technology CO., LTD.
Jingjing Investment Co., Ltd.
Taiwan
Re-investment
10,012
10,012
Jingjing Investment Co., Ltd.
Miko Technology Co., Ltd
Hong Kong
Electronics components
manufacturing, electronics
i l
d
i i
37
37
Innova Vision INC.
Innova Technology
Taiwan
Sales of contact lens
64,650
64,650
Innova Vision INC.
Innova Vision (B.V.I) Inc.
British Virgin
Re-investment
60,157
60,157
Innova Vision INC.
Innova Vision Kabushiki Kaisha
Japan
Sales of contact lens
84,204
84,204
Innova Vision (B.V.I) Inc.
Innova Vision Kabushiki Kaisha
Japan
Sales of contact lens
56,420
56,420

~73~

Taiwan Mask Corporation and Subsidiaries

Information on investments in China

January 1 to June 30, 2022

`Table 7`

Unit: NT$Thousand
(Unless otherwise specified)

`Investee in China`	`Main business` `activities`	`Paid-up` `capital`	`Accumulated amount of remittance f` `Investment method` `(Note 1)` `1` `3,283` `$` `1` `10,215` `3` `-`	`Remitted` `to` `China/Amou`	`Investment income (loss) recogn` `Accumulated amount` `of remittance from` `Taiwan to China` `Net profit` `(loss) of the` `investee for` `the current` `period` `Ownership held by` `the Company` `(direct or` `indirect)` `Remitted` `back` `-` `$` `3,283` `$` `28,384` `$` `100%` `-` `10,215` `5,370` `100%` `-` `-` `167` `100%` `nt remitted`	`ized by the Company for the current p` `Carrying` `amount as` `of the end` `of the` `period` `Accumulated` `amount of` `investment` `income` `remitted back` `to Taiwan` `(Note 2)` `28,384` `$` `314,933` `$` `-` `$` `5,370` `96,273` `-` `167` `62,802` `-`	`eriod` `Note`
`Miko-China Enterprise (Shanghai)` `Co., Ltd.` `Miracle International` `Enterprise(Shanghai) Co., Ltd.` `Sichuan Miracle Power Technology`	`Electronics` `components` `manufacturing,` `l` `t` `i` `t` `i l` `Electronics` `components` `manufacturing,` `electronics materials` `IC product design,`	`3,283` `$` `10,215` `53,268`		`-` `$` `-` `-`			`Note 2` `(2) B` `Note 2` `(2) B` `Note 4` `Note 2` `( )`

`Name of Company`	`remittance from` `Taiwan to China as of`	`Commission of` `the MOEA`	`g` `investments in China` `imposed by the`
`Miracle Technology CO., LTD.`	`13,498` `$`	`13,498` `$`	`$ 257,050`

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.
(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.

~74~

Taiwan Mask Corporation and Subsidiaries
Information on Major Shareholders

30-Jun-22

Table 8

`Name of Main Shareholders`	`Shares`	`Shares`
	`No. of shares held`	`Ownership`
`Youe Chung Capital Corporation` `Taiwan Mask Corporation`

~75~

AI assistant

TMC — Interim / Quarterly Report 2022

52014_rns_2022-12-29_ad798457-2a20-4d94-95a9-7b4e62e09426.pdf

Taiwan Mask Corporation and Subsidiaries

’ Q2 2022 and 2021 Consolidated Financial Statements and Independent Auditor s

Table of Contents

Introduction

Scope

Basis for qualified opinion

Qualified opinion

Taiwan Mask Corporation and Subsidiaries Consolidated Balance Sheets

June 30, 2022 and December 31 and June 30, 2021

Taiwan Mask Corporation and Subsidiaries Consolidated Balance Sheets

June 30, 2022 and December 31 and June 30, 2021

Taiwan Mask Corporation and Subsidiaries Consolidated Comprehensive Income Statements January 1 to June 30, 2022 and 2021

Taiwan Mask Corporation and Subsidiaries Consolidated Comprehensive Income Statements January 1 to June 30, 2022 and 2021

Taiwan Mask Corporation and Subsidiaries Consolidated Statement of Changes in Equity January 1 to June 30, 2022 and 2021

Taiwan Mask Corporation and Subsidiaries Consolidated Statements of Cash Flow

January 1 to June 30, 2022 and 2021

Taiwan Mask Corporation and Subsidiaries Consolidated Statements of Cash Flow

January 1 to June 30, 2022 and 2021

Taiwan Mask Corporation and Subsidiaries Notes to the Consolidated Financial Statements

Q2 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

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

IV. Summary of significant accounting policies

(I) Compliance statement

(II) Basis of Preparation

(III) Basis of consolidation

Aggregate financial information of subsidiaries: Balance Sheet

Statement of Comprehensive Income

Statements of Cash Flows

(IV) Employee benefits

(V) Income tax

V. Critical Accounting Judgments and Key Sources of Estimation and Uncertainty

VI. Statements of main accounting items

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

(III) Financial assets measured at amortized cost

(IV) Notes and accounts receivable

(VI) Investment under Equity Method

(VII) Property, plant and equipment

(IX) Leasing arrangements - lessor

(X) Real estate investment

Buildings and structures

1. Rental income and direct operating expenses of investment real estate:

(XI) Intangible assets

(XII) Other Non-Current Assets

(XIII) Short Term Loans

(XIV) Other Payables

(XV) Corporate bonds payable

separation was 0.0902%.

(XVII) Pensions

2. Treasury stock

(XIX) Capital surplus

(XXI) Other equity interests

(XXII) Operating revenue

2. Contract Liabilities

(XXIII) Interest income

(XXIV) Other Incomes

(XXV) Other Gains and Losses

(XXVI) Financial Costs

(XXVII) Expenses by nature

(XXIX) Income tax

1. Income tax expense

(XXX) Earnings (loss) per share

(XXXI) Business combination

(XXXII) Supplemental cash flow information

1. Investing activities with partial cash payments:

(XXXIII) Changes in liabilities arising from financing activities

VII. Related-Party Transactions

(I) Related parties' names and relationship

(II) Significant transactions with the related parties

3. Acquisition of financial assets

4. Acquisition of other assets

5. Others

(1) Rental income

(III) Compensation of key management personnel

VIII. Pledged assets

TMC Interim / Quarterly Report 2022

`Taiwan Mask Corporation and Subsidiaries`

`Taiwan Mask Corporation and Subsidiaries`

`Table 2`

`Taiwan Mask Corporation and Subsidiaries`

`Taiwan Mask Corporation and Subsidiaries`

`Table 5`

`Taiwan Mask Corporation and Subsidiaries`

`Table 7`