TXC - Interim / Quarterly Report 2022

TXC Corporation and Subsidiaries Consolidated Financial Statements for the Three Months Ended March 31, 2022 and 2021

TXC CORPORATION AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(In Thousands of New Taiwan Dollars)

ASSETS CURRENT ASSETS Cash and cash equivalents (Note 6) Financial assets at fair value through profit or loss - current (Note 7) Financial assets at amortized cost - current (Note 9) Notes receivable (Note 10) Trade receivables (Note 10) Trade receivables from related parties (Notes 10 and 30) Other receivables Other receivables from related parties (Note 30) Current tax assets (Note 25) Inventories (Note 11) Non-current assets held for sale (Note 13) Other current assets Total current assets NON-CURRENT ASSETS Financial assets at fair value through profit or loss - non-current (Note 7) Financial assets at fair value through other comprehensive income - non-current (Note 8) Financial assets measured at cost - non-current (Note 9) Investments accounted for using equity method (Note 14) Property, plant and equipment (Note 15) Right-of-use assets (Note 16) Investment properties (Note 17) Other intangible assets Deferred tax assets (Note 25) Prepayment for equipment Other non-current assets Total non-current assets TOTAL LIABILITIES AND EQUITY CURRENT LIABILITIES Short-term borrowings (Note 18) Short-term bills payables (Note 18) Financial liabilities at fair value through profit or loss - current (Note 7) Contract liabilities - current (Notes 11 and 23) Trade payables Trade payables to related parties (Note 30) Other payables (Note 20) Other payables to related parties (Note 30) Current tax liabilities (Note 25) Lease liabilities - current (Note 16) Deferred revenue - current (Notes 20 and 27) Current portion of long-term borrowings (Note 18) Other current liabilities Total current liabilities NON-CURRENT LIABILITIES Bonds payable (Note 19) Long-term borrowings (Note 18) Deferred tax liabilities (Note 25) Lease liabilities - non-current (Note 16) Deferred revenue - non-current (Notes 20 and 27) Net defined benefit liabilities - non-current (Note 21) Guarantee deposits received Total non-current liabilities Total liabilities EQUITY ATTRIBUTABLE TO OWNERS OF THE COMPANY (Note 22) Share capital Ordinary shares Capital surplus Retained earnings Legal reserve Special reserve Unappropriated earnings Total retained earnings Other equity Exchange differences on translating the financial statements of foreign operations Unrealized gain on financial assets at fair value through other comprehensive income Total other equity Total equity TOTAL	March 31, 2022 (Reviewed) Amount % $ 4,087,371 20 565,067 3 316,494 1 7,018 - 3,883,133 19 37,837 - 65,455 - 771 - - - 2,752,976 13 4,985 - 133,525 1 11,854,632 57 600 - 1,165,334 6 92,839 1 443,625 2 6,200,188 30 214,538 1 504,600 2 54,902 - 51,356 - 287,741 1 16,342 - 9,032,065 43 $ 20,886,697 100 $ 824,271 4 90,174 - 6,801 - 11,262 - 1,726,027 8 132 - 1,151,360 6 1,814 - 403,491 2 3,061 - 24,589 - 335,253 2 17,192 - 4,595,427 22 1,175,314 6 1,548,730 8 124,782 1 3,916 - 67,228 - 58,735 - 71,924 - 3,050,629 15 7,646,056 37 3,097,570 15 1,697,067 8 1,635,942 8 346,761 2 5,959,709 28 7,942,412 38 (303,365) (2) 806,957 4 503,592 2 13,240,641 63 $ 20,886,697 100	December 31, 2021 (Audited) Amount % $ 3,631,645 17 723,028 4 133,186 1 4,679 - 4,004,421 19 30,894 - 71,073 - 1,179 - - - 2,639,289 13 6,979 - 123,479 1 11,369,852 55 1,080 - 1,710,092 8 135,907 1 431,301 2 5,843,828 28 209,079 1 494,368 3 51,890 - 49,979 - 488,534 2 17,358 - 9,433,416 45 $ 20,803,268 100 $ 562,508 3 86,974 1 1,383 - 10,814 - 2,089,471 10 2,140 - 1,479,312 7 3,495 - 330,380 2 3,051 - 23,717 - 280,343 1 21,114 - 4,894,702 24 1,172,721 6 1,674,959 8 93,456 1 4,685 - 70,772 - 61,789 - 70,490 - 3,148,872 15 8,043,574 39 3,097,570 15 1,696,784 8 1,635,942 8 346,761 1 5,184,854 25 7,167,557 34 (559,579) (3) 1,357,362 7 797,783 4 12,759,694 61 $ 20,803,268 100	March 31, 2021 (Reviewed)	March 31, 2021 (Reviewed)
				Amount % $ 1,993,038 12 500,707 3 125,613 1 7,920 - 3,795,594 22 32,612 - 42,446 - 675 - 16,495 - 3,061,109 18 17,946 - 377,938 2 9,972,093 58 - - 757,732 4 549,354 3 423,064 3 4,891,418 28 90,408 1 46,841 - 42,276 - 33,451 - 413,733 3 16,786 - 7,265,063 42 $ 17,237,156 100 $ 783,713 5 - - 8,331 - 920,970 5 1,829,406 11 4,844 - 838,674 5 1,422 - 216,265 1 1,114 - - - 466,654 3 40,697 - 5,112,090 30 - - 1,475,270 9 72,453 - 1,059 - - - 60,682 - 34,840 - 1,644,304 9 6,756,394 39 3,097,570 18 1,668,269 10 1,480,696 9 524,372 3 3,862,711 22 5,867,779 34 (563,710) (3) 410,854 2 (152,856) (1) 10,480,762 61 $ 17,237,156 100

The accompanying notes are an integral part of the consolidated financial statements

TXC CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (In Thousands of New Taiwan Dollars, Except Earnings Per Share) (Reviewed, Not Audited)

REVENUE (Note 23) COST OF GOODS SOLD (Note 24) GROSS PROFIT OPERATING EXPENSES (Note 24) Selling and marketing expenses General and administrative expenses Research and development expenses Total operating expenses PROFIT FROM OPERATIONS NON-OPERATING INCOME AND EXPENSES Interest income (Note 24) Other income (Note 24) Other gains and losses (Note 24) Finance costs (Note 24) Share of profits of associates and joint venture (Note 14) Total non-operating income and expenses PROFIT BEFORE INCOME TAX INCOME TAX EXPENSE (Note 25) NET PROFIT OTHER COMPREHENSIVE INCOME (LOSS) Items that will not be reclassified subsequently to profit or loss: Unrealized gain on investments in equity instruments at fair value through other comprehensive income		For the Three Months	For the Three Months	Ended March 31
		2022 Amount % $ 3,216,567 100 (2,017,490) (63) 1,199,077 37 133,905 4 155,975 5 241,748 7 531,628 16 667,449 21 4,234 - 26,867 1 121,466 4 (10,971) (1) 2,361 - 143,957 4 811,406 25 (141,069) (4) 670,337 21 (445,887) (14)		2021
				Amount % $ 3,310,709 100 (2,113,902) (64) 1,196,807 36 136,675 4 128,939 4 220,173 6 485,787 14 711,020 22 7,582 - 17,958 - 20,518 1 (5,042) - 1,506 - 42,522 1 753,542 23 (121,692) (4) 631,850 19 234,341 7 (Continued)

TXC CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (In Thousands of New Taiwan Dollars, Except Earnings Per Share) (Reviewed, Not Audited)

Items that may be reclassified subsequently to profit or loss: Exchange differences on translating the financial statements of foreign operations Share of the other comprehensive income of associates accounted for using the equity method Other comprehensive income for the period, net of income tax TOTAL COMPREHENSIVE INCOME FOR THE PERIOD EARNINGS PER SHARE (Note 26) From continuing operations Basic Diluted		For the Three Months	For the Three Months	Ended March 31
		2022 Amount % $ 247,684 8 8,530 - 256,214 8 (189,673) (6) $ 480,664 15 $ 2.16 $ 2.09		2021
				Amount % $ (39,109) (1) (1,326) - (40,435) (1) 193,906 6 $ 825,756 25 $ 2.04 $ 2.03


		$		$

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

(Concluded)

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (In Thousands of New Taiwan Dollars) (Reviewed, Not Audited)

TXC CORPORATION AND SUBSIDIARIES

BALANCE AT JANUARY 1, 2021 Net profit for the three months ended March 31, 2021 Other comprehensive loss for the three months ended March 31, 2021, net of income tax Total comprehensive income (loss) for the three months ended March 31, 2021 BALANCE AT MARCH 31, 2021 BALANCE AT JANUARY 1, 2022 Net profit for the three months ended March 31, 2022 Other comprehensive income (loss) for the three months ended March 31, 2022, net of income tax Total comprehensive income (loss) for the three months ended March 31, 2022 Disposal of equity instruments at fair value through other comprehensive income (Note 8) Surplus donated BALANCE AT MARCH 31, 2022	Equity Attributable to Owners of the Company	Equity Attributable to Owners of the Company	Other Equity Exchange Differences on Translating the Financial Unrealized Gain (Loss) on Financial Assets at Fair Value Through Other Statements of Comprehensive Foreign Operations Income $ (523,275) $ 176,513 - - (40,435) 234,341 (40,435) 234,341 $ (563,710) $ 410,854 $ (559,579) $ 1,357,362 - - 256,214 (445,887) 256,214 (445,887) - (104,518) - - $ (303,365) $ 806,957	Total Equity $ 9,655,006 631,850 193,906 825,756 $ 10,480,762 $ 12,759,694 670,337 (189,673) 480,664 - 283 $ 13,240,641
	Shares (In Thousands) Share Capital Capital Surplus 309,757 $ 3,097,570 $ 1,668,269 - - - - - - - - - 309,757 $ 3,097,570 $ 1,668,269 309,757 $ 3,097,570 $ 1,696,784 - - - - - - - - - - - - - - 283 309,757 $ 3,097,570 $ 1,697,067	Retained Earnings Unappropriated Legal Reserve Special Reserve Earnings $ 1,480,696 $ 524,372 $ 3,230,861 - - 631,850 - - - - - 631,850 $ 1,480,696 $ 524,372 $ 3,862,711 $ 1,635,942 $ 346,761 $ 5,184,854 - - 670,337 - - - - - 670,337 - - 104,518 - - - $ 1,635,942 $ 346,761 $ 5,959,709

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

TXC CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS (In Thousands of New Taiwan Dollars) (Reviewed, Not Audited)

CASH FLOWS FROM OPERATING ACTIVITIES Income before income tax Adjustments for: Depreciation expenses Amortization expenses Net loss on fair value change of financial assets and liabilities at fair value through profit or loss Finance costs Interest income Share of profits of associates and joint ventures (Gain) loss on disposal of property, plant and equipment Impairment losses recognized on property, plant and equipment Write-down of inventories Loss on disposal of non-current assets held for sale Changes in operating assets and liabilities: Notes receivable Trade receivables Trade receivables from related parties Other receivables Other receivables from related parties Inventories Other current assets Contract liabilities Trade payables Trade payables to related parties Other payables Other payables to related parties Other current liabilities Deferred revenue Net defined benefit liabilities - non-current Cash generated from operations Interest paid Income taxes paid Net cash generated from operating activities CASH FLOWS FROM INVESTING ACTIVITIES Proceeds from sale of financial assets and liabilities at fair value through profit or loss Purchase of financial assets at fair value through other comprehensive income Proceeds from sale of financial assets at fair value through other comprehensive income		For the Three Months Ended March 31	For the Three Months Ended March 31
		2022 $ 811,406 291,651 5,252 339 10,971 (4,234) (2,361) (294) 5 4,265 249 (2,339) 121,415 (6,943) 5,585 408 (118,152) (10,046) 448 (363,444) (2,008) (328,283) (1,681) (3,922) (2,672) (3,054) 402,561 (8,047) (38,988) 355,526 185,848 (10,000) 117,447	2021 $ 753,542 247,395 2,091 7,106 5,042 (7,582) (1,506) 27 5,453 3,436 - 14,039 (321,872) (2,451) 5,815 (185) (247,654) (185,305) 191,891 (118,192) 1,301 (122,361) (58) 12,236 - (2,878) 239,330 (5,313) (18,847) 215,170 36,020 - - (Continued)

TXC CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS (In Thousands of New Taiwan Dollars) (Reviewed, Not Audited)

Purchase of financial assets at amortized cost Proceeds from sale of financial assets at amortized cost Purchase of investments accounted for using equity method Proceeds from disposal of non-current assets held for sale Payments for property, plant and equipment Proceeds from disposal of property, plant and equipment Payments for intangible assets Decrease in other non-current assets Increase in prepayment for equipment Interest received Net cash used in investing activities CASH FLOWS FROM INVESTING ACTIVITIES Proceeds from (repayments of) short-term borrowings Repayments of short-term borrowings Proceeds from long-term borrowings Repayments of long-term borrowings Proceeds from guarantee deposits received Refund of guarantee deposits received Repayment of the principal portion of lease liabilities Other changes in capital surplus Net cash generated from (used in) financing activities EFFECTS OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS NET INCREASE (DECREASED) IN CASH AND CASH EQUIVALENTS CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE PERIOD CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD		For the Three Months Ended March 31	For the Three Months Ended March 31
		2022 $ (127,175) - - 1,745 (321,406) 496 (6,921) 1,016 - 4,267 (154,683) 236,410 - - (76,765) 1,434 - (759) 283 160,603 94,280 455,726 3,631,645 $ 4,087,371	2021 $ - 237,256 (1,658) 17,946 (352,594) - (418) 1,424 (108,949) 7,609 (163,364) - (136,031) 100,000 (227,174) - (1,287) (776) - (265,268) (11,777) (225,239) 2,218,277 $ 1,993,038

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

(Concluded)

TXC CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS FOR THE THREE MONTHS ENDED MARCH 31, 2022 AND 2021 (In Thousands of New Taiwan Dollars, Unless Stated Otherwise) (Reviewed, Not Audited)

1. GENERAL INFORMATION

TXC Corporation (the “Company”) was incorporated in the Republic of China (ROC) on December 28, 1983.

TXC specializes in producing high quality crystals and crystal oscillator (CXO) as well as develops a variety of sensors by core technology to satisfy the market demand. Sensors are applied to various applications including mobile communication, information and storage device, internet of things, vehicle electronics, telecommunication equipment, smart home, AI, medical care, and 5G, etc.

The Company’s shares have been listed on the Taiwan Stock Exchange since August 26, 2002.

The consolidated financial statements are presented in the Company’s functional currency, the New Taiwan dollar.

To ensure the rights and interests of investors through full disclosure of operational governance, the Company applied for the Corporate Governance Assessment held by the Taiwan Corporate Governance Association (TCGA). The Company received “CG6005 Standard Corporate Governance Assessment Certification” and the “CG6008 Advanced Corporate Governance Assessment Certification” on March 23, 2011, and June 27, 2013, respectively. For the “Corporate Governance Evaluation” jointly held by the Taiwan Stock Exchange Corporation (TWSE) and Taipei Exchange, under the category of listed companies, the company was awarded as the top 20 percent in 2014, top 5 percent from 2015 to 2017, and top 6 to 20 percent in 2018 and 2019. The Company will continue to strengthen corporate governance with the intention to achieve international standards for protection of public interest.

2. APPROVAL OF FINANCIAL STATEMENTS

The consolidated financial statements were approved by the Company’s board of directors on May 9, 2022.

3. APPLICATION OF NEW, AMEND AND REVISED STANDARDS, AND INTERPRETATIONS

a. Initial application of the amendments to the International Financial Reporting Standards (IFRS), International Accounting Standards (IAS), IFRIC Interpretations (IFRIC), and SIC Interpretations (SIC) (collectively, the “IFRSs”) endorsed and issued into effect by the Financial Supervisory Commission (FSC)

The initial application of the IFRSs endorsed and issued into effect by the FSC did not have material impact on the Group’s accounting policies.

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b. New IFRSs in issue but not yet endorsed and issued into effect by the FSC

New IFRSs Amendments to IFRS 10 and IAS 28 “Sale or Contribution of Assets between An Investor and Its Associate or Joint Venture” IFRS 17 “Insurance Contracts” Amendments to IFRS 17 Amendments to IFRS 17 “Initial Application of IFRS 9 and IFRS 17 - Comparative Information” Amendments to IAS 1 “Classification of Liabilities as Current or Non-current” Amendments to IAS 1 “Disclosure of Accounting Policies” Amendments to IAS 8 “Definition of Accounting Estimates” Amendments to IAS 12 “Deferred Tax related to Assets and Liabilities arising from a Single Transaction”	Effective Date Announced by IASB (Note 1)
	To be determined by IASB January 1, 2023 January 1, 2023 January 1, 2023 January 1, 2023 January 1, 2023 (Note 2) January 1, 2023 (Note 3) January 1, 2023 (Note 4)

New IFRSs
Amendments to IFRS 10 and IAS 28 “Sale or Contribution of Assets
between An Investor and Its Associate or Joint Venture”

IFRS 17 “Insurance Contracts”

Amendments to IFRS 17

Amendments to IFRS 17 “Initial Application of IFRS 9 and IFRS 17 -
Comparative Information”

Amendments to IAS 1 “Classification of Liabilities as Current or
Non-current”

Amendments to IAS 1 “Disclosure of Accounting Policies”

Amendments to IAS 8 “Definition of Accounting Estimates”

Amendments to IAS 12 “Deferred Tax related to Assets and
Liabilities arising from a Single Transaction”

Effective Date
Announced by IASB (Note 1)

To be determined by IASB
January 1, 2023
January 1, 2023
January 1, 2023
January 1, 2023
January 1, 2023 (Note 2)
January 1, 2023 (Note 3)
January 1, 2023 (Note 4)

Note 1: Unless stated otherwise, the above New IFRSs are effective for annual reporting periods beginning on or after their respective effective dates.
Note 2: The amendments will be applied prospectively for annual reporting periods beginning on or after January 1, 2023.
Note 3: The amendments are applicable to changes in accounting estimates and changes in accounting policies that occur on or after the beginning of the annual reporting period beginning on or after January 1, 2023.
Note 4: Except for deferred taxes that will be recognized on January 1, 2022 for temporary differences associated with leases and decommissioning obligations, the amendments will be applied prospectively to transactions that occur on or after January 1, 2022.
1) Amendments to IAS 1 “Disclosure of Accounting Policies”

The amendments specify that the Group should refer to the definition of material to determine its material accounting policy information to be disclosed. Accounting policy information is material if it can reasonably be expected to influence decisions that the primary users of general purpose financial statements make on the basis of those financial statements. The amendments also clarify that:

Accounting policy information that relates to immaterial transactions, other events or conditions is immaterial and need not be disclosed;
The Group may consider the accounting policy information as material because of the nature of the related transactions, other events or conditions, even if the amounts are immaterial; and
Not all accounting policy information relating to material transactions, other events or conditions is itself material.
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The amendments also illustrate that accounting policy information is likely to be considered as material to the financial statements if that information relates to material transactions, other events or conditions and:

a) the Group changed its accounting policy during the reporting period and this change resulted in a material change to the information in the financial statements;
b) the Group chose the accounting policy from options permitted by the standards;
c) the accounting policy was developed in accordance with IAS 8 “Accounting Policies, Changes in Accounting Estimates and Errors” in the absence of an IFRS that specifically applies;
d) the accounting policy relates to an area for which the Group is required to make significant judgements or assumptions in applying an accounting policy, and the Group discloses those judgements or assumptions; or
e) the accounting is complex and users of the financial statements would otherwise not understand those material transactions, other events or conditions.
2) Amendments to IAS 8 “Definition of Accounting Estimates”

The amendments define that accounting estimates are monetary amounts in financial statements that are subject to measurement uncertainty. In applying accounting policies, the Group may be required to measure items at monetary amounts that cannot be observed directly and must instead be estimated. In such a case, the Group uses measurement techniques and inputs to develop accounting estimates to achieve the objective. The effects on an accounting estimate of a change in a measurement technique or a change in an input are changes in accounting estimates unless they result from the correction of prior period errors.

Except for the above impact, as of the date the consolidated financial statements were authorized for issue, the Group is continuously assessing the possible impact that the application of other standards and interpretations will have on the Group’s financial position and financial performance and will disclose the relevant impact when the assessment is completed.

4. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

a. Statement of compliance

These interim consolidated financial statements have been prepared in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and IAS 34 “Interim Financial Reporting” as endorsed and issued into effect by the FSC. Disclosure information included in these interim consolidated financial statements is less than the disclosure information required in a complete set of annual financial statements.

b. Basis of preparation

The consolidated financial statements have been prepared on the historical cost basis except for financial instruments which are measured at fair value.

The fair value measurements, which are grouped into Levels 1 to 3 based on the degree to which the fair value measurement inputs are observable and based on the significance of the inputs to the fair value measurement in its entirety, are described as follows:

1) Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities;
2) Level 2 inputs are inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e., as prices) or indirectly (i.e., derived from prices); and
3) Level 3 inputs are unobservable inputs for the asset or liability.
c. Basis of consolidation

The consolidated financial statements incorporate the financial statements of the Company and the entities controlled by the Company (i.e., its subsidiaries, including structured entities).

Income and expenses of subsidiaries acquired or disposed of during the period are included in the consolidated statement of profit or loss and other comprehensive income from the effective dates of acquisitions up to the effective dates of disposals, as appropriate.

When necessary, adjustments are made to the financial statements of subsidiaries to bring their accounting policies into line with those used by the Company.

All intra-group transactions, balances, income and expenses are eliminated in full upon consolidation

Changes in the Group’s ownership interests in subsidiaries that do not result in the Group losing control over the subsidiaries are accounted for as equity transactions.

d. Other significant accounting policies

Except for the following, please refer to the consolidated financial statements for the year ended December 31, 2021.

1) Retirement benefits

Pension cost for an interim period is calculated on a year-to-date basis by using the actuarially determined pension cost rate at the end of the prior financial year, adjusted for significant market fluctuations since that time and for significant plan amendments, settlements, or other significant one-off events.

2) Other long-term employee benefits

Other long-term employee benefits are accounted for in the same way as the accounting required for defined benefit plans except that remeasurement is recognized in profit or loss.

3) Taxation

Income tax expense represents the sum of the tax currently payable and deferred tax. Interim period income taxes are assessed on an annual basis and calculated by applying to an interim period's pre-tax income the tax rate that would be applicable to expected total annual earnings.

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5. CRITICAL ACCOUNTING JUDGMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY

In the application of the Group’s accounting policies, management is required to make judgments, estimations, and assumptions about the carrying amounts of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered relevant. Actual results may differ from these estimates.

The Group considers the recent development of the COVID-19 in Taiwan and its economic environment implications when making its critical accounting estimates in cash flow projections, growth rate, discount rate, profitability, etc. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the period in which the estimates are revised if the revisions affect only that period or in the period of the revisions and future periods if the revisions affect both current and future periods.

The same critical accounting judgments and key sources of estimation uncertainty of consolidated financial statements have been followed in these consolidated financial statements as were applied in the preparation of the consolidated financial statements for the year ended December 31, 2021.

6. CASH AND CASH EQUIVALENTS

Cash on hand Checking accounts and demand deposits Cash equivalents (investments with original maturities less than three months) Time deposits Repurchase agreements collateralized by bonds	March 31, 2022 December 31, 2021 $ 1,243 $ 1,115 3,436,128 3,069,037 150,000 251,493 500,000 310,000 $ 4,087,371 $ 3,631,645	March 31, 2021 $ 1,485 1,673,639 317,914 - $ 1,993,038

7. FINANCIAL INSTRUMENTS AT FAIR VALUE THROUGH PROFIT OR LOSS

Financial assets at FVTPL-current Financial assets mandatorily classified as at FVTPL Derivative financial instruments (not under hedge accounting) Foreign exchange forward contracts and exchange contracts (b) Non-derivative financial asset Listed shares Mutual funds Hybrid financial assets Structured deposits (a)	March 31, 2022 December 31, 2021 $ 484 $ 2,399 13,500 - 109,696 191,487 441,387 529,142 564,583 720,629 $ 565,067 $ 723,028	March 31, 2021 $ - - 259,418 241,289 500,707 $ 500,707 (Continued)

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Financial assets at FVTPL-non-current Financial assets mandatorily classified as at FVTPL Non-derivative financial assets Redemption options on convertible bonds Financial liabilities at FVTPL-current Financial liabilities mandatorily classified as at FVTPL Derivative financial liabilities (not under hedge accounting) Foreign exchange forward contracts and exchange contracts (b)	March 31, 2022 December 31, 2021 $ 600 $ 1,080 $ 6,801 $ 1,383	March 31, 2021 $ - $ 8,331 (Concluded)

a. The Group entered into structured time deposit contract with Bank during the three months ended March 31, 2022 and 2021. The structured time deposit contract includes an embedded derivative instrument which is not closely related to the host contract. The entire contract was assessed and classified mandatorily as at FVTPL since it contained a host that is an asset within the scope of IFRS 9.
b. At the end of the reporting period, outstanding foreign exchange contracts and exchange contracts not under hedge accounting were as follows:

			Contract Amount
	Currency	Maturity Date	(In Thousands)
March 31, 2022
Sell	USD/RMB	2022.04.27-2022.07.27	USD8,500/RMB54,276
Sell	USD/JPY	2022.04.06-2022.04.20	USD3,000/JPY349,360
Knock-out forward	USD/JPY	2022.04.11-2022.06.06	USD6,000/JPY259,070
Exchange contracts	USD/NTD	2022.04.11-2022.05.12	USD6,000/NTD166,016
Foreign exchange forward	USD/NTD	2022.05.19-2022.06.06	USD12,000/NTD337,800
contracts
December 31, 2021
Sell	USD/RMB	2022.01.27-2022.04.27	USD10,500/RMB67,946
Sell	USD/JPY	2022.01.24	USD2,000/JPY229,263
Knock-out forward	USD/JPY	2022.02.14	USD2,000/JPY231,150
Exchange contracts	USD/NTD	2022.01.18-2022.04.18	USD14,000/NTD387,709
Foreign exchange forward	USD/NTD	2022.01.03-2022.02.16	USD10,000/NTD280,250
contracts

(Continued)

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Contract Amount Currency Maturity Date (In Thousands)

March 31, 2021
Knock-out forward	USD/JPY	2021.04.06	USD1,500/JPY161,100
Knock-out forward	USD/NTD	2021.05.07-2021.05.24	USD5,000/NTD142,580
Sell	USD/JPY	2021.04.06-2021.04.21	USD3,500/JPY380,615
Sell	USD/RMB	2021.04.23-2021.07.05	USD6,000/RMB39,429
Sell	USD/RMB	2021.04.28-2021.09.28	USD14,000/RMB92,348
Exchange contracts	USD/NTD	2021.04.29-2021.06.16	USD13,000/NTD371,550
			(Concluded)

The Group entered into foreign exchange forward contracts and exchange contracts during the three months ended March 31, 2022 and 2021 to manage exposures to exchange rate fluctuations of foreign currency denominated assets and liabilities. However, those contracts did not meet the criteria of hedge effectiveness and therefore were not accounted for by using hedge accounting.

8. FINANCIAL ASSETS AT FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME

Non-current Domestic investments Listed shares UPI Semiconductor Corp. Emerging market shares UPI Semiconductor Corp. Unlisted shares Foreign investments Unlisted shares	March 31, 2022 December 31, 2021 $ 835,660 $ - - 1,399,268 87,740 77,466 923,400 1,476,734 241,934 233,358 $ 1,165,334 $ 1,710,092	March 31, 2021 $ - 347,786 100,290 448,076 309,656 $ 757,732

These investments in equity instruments are held for medium- to long-term strategic purposes. Accordingly, the management elected to designate these investments in equity instruments as at FVTOCI as they believe that recognizing short-term fluctuations in these investments’ fair value in profit or loss would not be consistent with the Group’s strategy of holding these investments for long-term purposes.

On March 12, 2021 and January 3, 2022, UPI Semiconductor Corp.’s shares were listed on the Taipei Exchange and Taiwan Stock Exchange . The transfer of fair value measurement level referred to Note 29.

In the first quarter of 2022, the Group sold its shares in UPI Semiconductor Corp. in order to manage credit concentration risk. The shares sold had a fair value of $117,447 thousand and its related unrealized gain of $104,518 thousand was transferred from other equity to retained earnings.

13 -

9. FINANCIAL ASSETS AT AMORTIZED COST

Current Domestic investments Pledge deposits (a) Time deposits with original maturity of more than three months (b) Restricted deposits (c) Non-current Domestic investment Time deposits with original maturities of more than one year (b) Restricted deposits (d)	March 31, 2022 December 31, 2021 $ 62,690 $ 60,916 253,804 72,270 - - $ 316,494 $ 133,186 $ 92,839 $ 135,907 - - $ 92,839 $ 135,907	March 31, 2021 $ 62,353 - 63,260 $ 125,613 $ 377,328 172,026 $ 549,354

a. Refer to Note 31 for information relating to investments in financial assets at amortized cost pledged as security.
b. The ranges of interest rates for time deposits with original maturities of more than three months were approximately 1.68%-4.38%, 3.91%-4.38% and 3.78%-4.38% per annum as of March 31, 2022, December 31, 2021 and March 31, 2021, respectively.
c. Restricted deposits are deposits for Chongqing Zhongyang’s presold items of the construction in progress, which should not be used for other purposes before acquiring the real estate registration certificate. The deposits restriction was lifted in May 2021.
d. According to “Regulations Governing the Management, Utilization, and Taxation of Repatriated Offshore Funds”, the Group had submitted an investment proposal and was approved by National Bureau, Ministry of Finance. Based on the regulation, the deposits are restricted only to approved investment project, and should not be used for other purposes.

10. NOTES RECEIVABLE AND TRADE RECEIVABLES

Notes receivable Notes receivable - operating Less: Allowance for impairment loss	March 31, 2022 December 31, 2021 $ 7,024 $ 4,685 (6) (6) $ 7,018 $ 4,679	March 31, 2021 $ 7,926 (6) $ 7,920 (Continued)

14 -

Trade receivables At amortized cost Gross carrying amount Less: Allowance for impairment loss	March 31, 2022 December 31, 2021 $ 3,934,584 $ 4,048,803 (13,614) (13,488) $ 3,920,970 $ 4,035,315	March 31, 2021 $ 3,841,684 (13,478) $ 3,828,206 (Concluded)

In order to minimize credit risk, the management of the Company has delegated a team responsible for determining credit limits, credit approvals and other monitoring procedures to ensure that follow-up action is taken to recover overdue debts. In addition, the Group reviews the recoverable amount of each individual trade debt at the end of the reporting period to ensure that adequate allowance is made for possible irrecoverable amounts. In this regard, the management believes the Group’s credit risk was significantly reduced.

The Group applies the simplified approach to providing for expected credit losses prescribed by IFRS 9, which permits the use of lifetime expected loss provision for all trade receivables. The expected credit losses on trade receivables are estimated using a provision matrix by reference to past default experience of the debtor and an analysis of the debtor’s current financial position, adjusted for general economic conditions of the industry in which the debtors operate and an assessment of both the current as well as the forecast direction of economic conditions at the reporting date. As the Group’s historical credit loss experience does not show significantly different loss patterns for different customer segments, the provision for loss allowance based on past due status is not further distinguished according to the Group’s different customer base.

The Group writes off a trade receivable when there is information indicating that the debtor is in severe financial difficulty and there is no realistic prospect of recovery. For trade receivables that have been written off, the Group continues to engage in enforcement activity to attempt to recover the receivables due. Where recoveries are made, these are recognized in profit or loss.

The following table details the loss allowance of notes receivable and trade receivables based on the Group’s provision matrix.

March 31, 2022

Not Past Due 31 to 90 Days Gross carrying amount $ 3,600,137 $ 341,471 Loss allowance (Lifetime ECL) (10,547) (3,073) Amortized cost $ 3,589,590 $ 338,398 December 31, 2021 Not Past Due 31 to 90 Days Gross carrying amount $ 3,804,496 $ 248,992 Loss allowance (Lifetime ECL) (11,253) (2,241) Amortized cost $ 3,793,243 $ 246,751	91 to 150 Days $ - - $ - 91 to 150 Days $ - - $ -	151 to 180 Days $ - - $ - 151 to 180 Days $ - - $ -	Over 180 Days $ - - $ - Over 180 Days $ - - $ -	Total $ 3,941,608 (13,620) $ 3,927,988 Total $ 4,053,488 (13,494) $ 4,039,994

15 -

March 31, 2021

Not Past Due 31 to 90 Days Gross carrying amount $ 3,609,378 $ 240,232 Loss allowance (Lifetime ECL) (11,322) (2,162) Amortized cost $ 3,598,056 $ 238,070	91 to 150 Days $ - - $ -	151 to 180 Days $ - - $ -	Over 180 Days $ - - $ -	Total $ 3,849,610 (13,484) $ 3,836,126

The expected credit loss rate for each above range of the Group is not more than 1% within and within 90 days of the overdue period; 5% or less within the overdue period from 91 days to 180 days; and 5%-100% when the overdue period exceeds 180 days.

The movements of the loss allowance of trade receivables were as follows:

Balance at January 1 Foreign exchange gains and losses Balance at March 31	For the Three Months Ended March 31	For the Three Months Ended March 31	For the Three Months Ended March 31
		2022 $ 13,494 126 $ 13,620	2021 $ 13,506 (22) $ 13,484

11. INVENTORIES

Finished goods Work in process Raw materials Supplies and spare parts Merchandise Land for development construction in progress Buildings and land held for sale	March 31, 2022 December 31, 2021 $ 560,819 $ 582,087 455,361 436,873 688,809 635,358 115,419 112,785 457,062 405,775 - - 475,506 466,411 $ 2,752,976 $ 2,639,289	March 31, 2021 $ 316,583 383,672 554,569 114,921 405,716 1,285,648 - $ 3,061,109

The cost of crystal inventories recognized as cost of goods sold for the three months ended March 31, 2022 and 2021 included $2,009,598 thousand and $2,113,902 thousand, respectively. The cost of goods sold for the three months ended March 31, 2022 and 2021 included inventory write-downs of $4,265 thousand and $3,436 thousand, respectively.

The cost of real estate inventories recognized as cost of goods sold for the three months ended March 31, 2022 and 2021 included $7,892 thousand and $0 thousand, respectively.

The construction in progress is the payment made by Chongqing Zhongyang Properties Co., Ltd. to acquire the land use right in Chongqing Gao-Shing District to develop and sell real estate in 2012. Chongqing Zhongyang Properties Co., Ltd. has acquired real estate certificate issued by Chongqing Association of land and real estate resources during 2013. The construction began in 2018 and continued to recognize revenue after completion in April 2021.

16 -

The details of the land for development site are as follows:

Area Jinfeng Group C Division		March 31, 2021	March 31, 2021
	Prepaid Land Rights $ 196,204	Project Cost $ 1,089,444	Total $ 1,285,648	Contract Liabilities - Current $ 920,970

The details of the buildings and land held for sale are as follows:

Area Jing Yuan Area Jing Yuan	March 31, 2022
	Buildings and Land Held for Sale Contract Liabilities - Current $ 475,506 $ 11,262 December 31, 2021
	Buildings and Land Held for Sale Contract Liabilities - Current $ 466,411 $ 10,814

The information about capitalization of interest are set out in Note 24.

Land for development construction in progress pledged as collateral for bank borrowings are set out in Note 31.

12. SUBSIDIARIES

Subsidiary Included in the Consolidated Financial Statements

The detail information of the subsidiaries at the end of reporting period was as follows:

Investor
Investee
Nature of Activities
TXC Corporation
Taiwan Crystal Technology International
Limited
Investment management
TXC Technology, Inc.
Marketing activities
TXC Japan Corporation
Marketing activities
Taiwan Crystal Technology (HK) Limited International trading
TXC Europe GmbH
Marketing activities
Taiwan Crystal Technology
International Limited
TXC (Ningbo) Corporation
Research and
development,
manufacture, and sale
of quartz elements and
related electronic
products
TXC (Ningbo) Corporation TXC (Chongqing) Corporation
Research and
development,
manufacture, and sale
of quartz elements and
related electronic
products
Chongqing Zhongyang Properties CO.
LTD.
Properties development
Ningbo Beilun Jingyu Trading Corporation International trading

Proportion of Ownership
March 31,
2022
December 31,
2021
March 31,
2021
Remark
100
100
100
a
100
100
100
b
100
100
100
c
100
100
100
e
100
100
100
j
100
100
100
d
100
100
100
f
100
100
100
g
100
100
100
h
(Continued)

17 -

Investor Investee Nature of Activities Ningbo Meishan Free Trade Port Area Ding Kai Investment Management Company Limited Investment management TETC Corp. NINGBO Research and development, manufacture, and sale of quartz elements and related electronic products Chongqing Zhongyang Properties CO. LTD. ChongQing Dingsen Commercial Management Co., Ltd Property management	Proportion of Ownership March 31, 2022 December 31, 2021 March 31, 2021 Remark 100 100 100 i 100 100 - l 100 100 100 k (Concluded)

Remarks:

a. Taiwan Crystal Technology International Limited was incorporated on December 23, 1998 in Samoa.
b. TXC Technology, Inc. was incorporated on December 1, 2000 in California, U.S.A.
c. TXC Japan Corporation was incorporated on September 13, 2005 in Yokohama, Japan.
d. TXC (Ningbo) Corporation was incorporated on March 12, 1999 in Ningbo, China.
e. Taiwan Crystal Technology (HK) Limited was incorporated on July 6, 2010 in Hong Kong Special Administrative Region, China.
f. TXC (Chongqing) Corporation was incorporated on October 11, 2010 in Chongqing, China.
g. Chongqing Zhongyang Properties CO. LTD. was incorporated on February 14, 2011 in Chongqing, China.
h. Ningbo Beilun Jingyu Trading Corporation was incorporated on September 7, 2011 in Ningbo, China.
i. Ningbo Meishan Free Trade Port Area Ding Kai Investment Management Company Limited was incorporated on May 12, 2017 in Beilun District, Ningbo, China.
j. TXC Europe GmbH was founded in Germany on August 17, 2018.
k. ChongQing Dingsen Commercial Management Co., Ltd. was incorporated on February 21, 2019 in Chongqing, China.
l. TETC Corp. Ningbo was incorporated on December 30, 2020 in Ningbo, China.
m. Except for the financial statements for the three months ended March 30, 2022 of Taiwan Crystal Technology International Limited, TXC (Ningbo) Corporation, TXC (Chongqing) Corporation, and Chongqing Zhongyang Properties Co., Ltd., all company are immaterial subsidiaries, their financial statements have not been reviewed. Except for the financial statements for the three months ended March 30, 2021 of Taiwan Crystal Technology International Limited, TXC (Ningbo) Corporation, and TXC (Chongqing) Corporation., all company are immaterial subsidiaries, their financial statements have not been reviewed.
18 -

13. NON-CURRENT ASSETS CLASSIFIED AS HELD FOR SALE

March 31, 2022 December 31 2021 Domestic investments Unlisted shares Godsmith Sensor Inc. $ 4,985 $ 6,979	March 31 2021 $ 17,946

In November 2020, the Company’s board of directors approved to dispose of 24% shares of Godsmith Sensor Inc. held with the expectation to complete the sale within twelve months. Accordingly, the Company has reclassified Godsmith Sensor Inc. as non-current assets held for sale, and were presented separately in the accompanying balance sheets.

For the three months ended March 31, 2022 and 2021, the Group had sold 100 thousand and 900 thousand shares in Godsmith Sensor Inc. at fair value of $1,745 thousand and $17,946 thousand and were recognized as loss on disposal $249 thousand and $0 thousand, respectively.

14. INVESTMENTS ACCOUNTED FOR USING EQUITY METHOD

Investments in associates and joint ventures a. Investment in associates Associates that are not individually material The Group’s share of: Profit from continuing operations Other comprehensive income Total comprehensive income for the period	March 31, 2022 $ 443,625 March 31, 2022 $ 404,042	December 31, 2021 March 31, 2021 $ 431,301 $ 423,064 December 31, 2021 March 31, 2021 $ 391,214 $ 376,895 For the Three Months Ended March 31	December 31, 2021 March 31, 2021 $ 431,301 $ 423,064 December 31, 2021 March 31, 2021 $ 391,214 $ 376,895 For the Three Months Ended March 31	December 31, 2021 March 31, 2021 $ 431,301 $ 423,064 December 31, 2021 March 31, 2021 $ 391,214 $ 376,895 For the Three Months Ended March 31
			2022 $ 4,298 8,530 $ 12,828	2021 $ 2,937 (1,326) $ 1,611

Refer to Table 4 “name, locations, and related information of investees on which the Company exercises significant influence” for the nature of activities, principal place of business and country of incorporation of the associates.

For the three months ended March 31, 2021, the Group subscribed 43 thousand ordinary shares of Tai-Shing for cash which amount to $1,658 thousand. After the subscription, the Group’s percentage of ownership in Tai-Shing was 32.11%. The Group recognized goodwill of $587 thousand as cost of investments in associates.

19 -

b. Investment joint ventures

March 31, 2022 Joint ventures that are not individually material $ 39,583 The Group’s share of: Profit from continuing operations Total comprehensive income for the period	December 31, 2021 March 31, 2021 $ 40,087 $ 46,169 For the Three Months Ended March 31	December 31, 2021 March 31, 2021 $ 40,087 $ 46,169 For the Three Months Ended March 31	December 31, 2021 March 31, 2021 $ 40,087 $ 46,169 For the Three Months Ended March 31
		2022 $ (1,937) $ (1,937)	2021 $ (1,431) $ (1,431)

Refer to Table 4 “name, locations, and related information of investees on which the Company exercises significant influence” and Table 5 “information on investment in mainland China” for the nature of activities, principal place of business and country of incorporation of the joint ventures.

Except for investments of Ningbo Longying Semiconductor Co., Ltd., which were accounted for using the equity method and the share of profit or loss and other comprehensive income of those investments were calculated based on financial statements which have been reviewed. Management believes there is no material impact on the equity method of accounting or the calculation of the share of profit or loss and other comprehensive income from the financial statements of Ningbo Longying Semiconductor Co., Ltd. which have not been reviewed.

15. PROPERTY, PLANT AND EQUIPMENT

Cost Balance at January 1, 2021 Additions Disposals Reclassification Effect of foreign currency exchange differences Balance at March 31, 2021 Accumulated depreciation and impairment Balance at January 1, 2021 Disposals Depreciation expense Impairment losses Effect of foreign currency exchange differences Balance at March 31, 2021 Carrying value at March 31, 2021 Cost Balance at January 1, 2022 Additions Disposals Transfer from investment property Transfer from prepayment for equipment Effect of foreign currency exchange differences Balance at March 31, 2022	Freehold Land $ 593,855 28,000 - - - $ 621,855 $ - - - - - $ - $ 621,855 $ 621,855 - - - - - $ 621,855	Land Improvements $ 1,599 - - - - $ 1,599 $ 900 61 - - $ 961 $ 638 $ 2,279 270 - - - - $ 2,549	Buildings Machinery and Equipment Transportation Equipment $ 2,607,379 $ 8,734,385 $ 20,583 117,495 159,099 - (659 ) (2,965 ) - - - - (7,457) (33,143) (119) $ 2,716,758 $ 8,857,376 $ 20,464 $ 1,345,469 $ 5,916,127 $ 13,849 (659 ) (2,965 ) - 33,682 201,792 608 - 5,453 - (3,011) (21,803) (84) $ 1,375,481 $ 6,098,604 $ 14,373 $ 1,341,277 $ 2,758,772 $ 6,091 $ 2,728,943 $ 9,699,052 $ 21,149 5,202 288,613 - - (5,070 ) - 5,903 - - - 200,793 - 43,008 214,724 722 $ 2,783,056 $ 10,398,112 $ 21,871	Office Equipment $ 362,059 45,579 (2,483 ) - (2,280) $ 402,875 $ 237,367 (2,456 ) 8,829 - (1,250) $ 242,490 $ 160,385 $ 387,266 26,704 (6,821 ) - - 10,257 $ 417,406	Property in Construction Total $ 2,440 $ 12,322,300 2,421 352,594 - (6,107 ) (2,447 ) (2,447 ) (14) (43,013) $ 2,400 $ 12,623,327 $ - $ 7,513,712 - (6,080 ) - 244,972 - 5,453 - (26,148) $ - $ 7,731,909 $ 2,400 $ 4,891,418 $ 13,137 $ 13,473,681 617 321,406 - (11,891 ) - 5,903 - 200,793 497 269,208 $ 14,251 $ 14,259,100 (Continued)

20 -

Accumulated depreciation and impairment Balance at January 1, 2022 Disposals Depreciation expense Impairment losses Transfer from investment property Effect of foreign currency exchange differences Balance at March 31, 2022 Carrying value at December 31, 2021 and January 1, 2022 Carrying value at March 31, 2022	Freehold Land $ - - - - - - $ - $ 621,855 $ 621,855	Land Improvements $ 1,209 - 93 - - - $ 1,302 $ 1,070 $ 1,247	Buildings Machinery and Equipment Transportation Equipment $ 1,211,106 $ 6,157,842 $ 15,109 - (4,895 ) - 34,976 238,588 706 - 5 - 3,652 - - 22,432 123,687 524 $ 1,272,166 $ 6,515,227 $ 16,339 $ 1,517,837 $ 3,541,210 $ 6,040 $ 1,510,890 $ 3,882,885 $ 5,532	Office Equipment $ 244,587 (6,794 ) 10,540 - - 5,545 $ 253,878 $ 142,679 $ 163,528	Property in Construction Total $ - $ 7,629,853 - (11,689 ) - 284,903 - 5 - 3,652 - 152,188 $ - $ 8,058,912 $ 13,137 $ 5,843,828 $ 14,251 $ 6,200,188 (Concluded)

The above items of property, plant and equipment are depreciated on a straight-line basis over the estimated useful lives as follows:

Land improvements 5-7 years Buildings Industrial building 3-51 years Electrical power systems 3-51 years Engineering systems 3-51 years Equipment Major production equipments 3-15 years Temperature control systems 4-7 years Transportation equipments 4-7 years Transportation equipments 4-5 years Office equipment 3-5 years

Property, plant and equipment pledged as collateral for bank borrowings were set out in Note 31.

16. LEASE ARRANGEMENTS

a. Right-of-use assets

Carrying amounts Land Buildings Transportation equipment Additions to right-of-use assets	March 31, 2022 December 31, 2021 $ 207,601 $ 201,375 5,890 6,544 1,047 1,160 $ 214,538 $ 209,079 $ - $ 123,059	March 31, 2021 $ 88,250 661 1,497 $ 90,408 $ -

21 -

Depreciation charge for right-of-use assets Land Buildings Transportation equipment	For the Three Months Ended March 31	For the Three Months Ended March 31	For the Three Months Ended March 31
		2022 $ 1,158 654 113 $ 1,925	2021 $ 569 661 112 $ 1,342

Right-of-use assets pledged as collateral for bank borrowings were set out in Note 31.

b. Lease liabilities

	March 31,	March 31,	December 31,	December 31,	March 31,	March 31,
		2022		2021		2021
Carrying amounts
Current	$	3,061	$	3,051	$	1,114
Non-current		3,916		4,685		1,059
	$	6,977	$	7,736	$	2,173
Range of discount rate for lease liabilities was as follows:
	March 31,		December 31,		March 31,
		2022		2021		2021
Buildings	0.86%-1.27%		0.86%-1.27%			0.86%
Transportation equipment		0.86%		0.86%		0.86%

c. Material lease-in activities and terms

The Group did not enter into significant lease contracts for the three months ended March 31, 2022 and 2021.

The Group also buys land use right for the construction of plants, offices and retail stores with use term of 50 years in mainland China specifies that payments will be paid at the time of contract and can be renewed upon the expiration of the period. The Group does not have purchase options to acquire the land and buildings at the end of the contract.

d. Other lease information

Expenses relating to short-term leases Total cash outflow for leases	For the Three Months Ended March 31	For the Three Months Ended March 31	For the Three Months Ended March 31
		2022 $ 55 $ (814)	2021 $ 54 $ (830)

The Group leases certain building which qualify as short-term leases. The Group has elected to apply the recognition exemption and thus, did not recognize right-of-use assets and lease liabilities for these leases.

22 -

17. INVESTMENT PROPERTIES

	Completed	Completed
	Investment
	Properties
Cost
Balance at January 1, 2021	$	90,548
Effect of foreign currency exchange differences		(377)
Balance at March 31, 2021	$	90,171
Accumulated depreciation and impairment
Balance at January 1, 2021	$	(42,465)
Depreciation expense		(1,081)
Effect of foreign currency exchange differences		216
Balance at March 31, 2021	$	(43,330)
Carrying amounts at March 31, 2021	$	46,841
Carrying amounts at January 1, 2022 and December 31,2021	$	494,368
Cost
Balance at January 1, 2022	$	544,232
Transfer to property, plant and equipment		(5,903)
Effect of foreign currency exchange differences		18,831
Balance at March 31, 2022	$	557,160
Accumulated depreciation and impairment
Balance at January 1, 2022	$	(49,864)
Depreciation expense		(4,823)
Transfer to property, plant and equipment		3,652
Effect of foreign currency exchange differences		(1,525)
Balance at March 31, 2022	$	(52,560)
Carrying amounts at March 31, 2022	$	504,600

The investment real estate held by the combined company is mainly located in Pingzhen District of Taoyuan City and Ningbo City, Mainland China, and some of the factories and offices are leased to collect rents. The other part of the investment real estate is located in Chongqing City, mainland China, and is mainly self-built shopping malls to collect rents.

The investment properties held by the Group are depreciated using the straight-line method over their useful lives of 3-60 years.

23 -

The fair value of the Group’s investment properties as of March 31, 2022, December 31, 2021 and March 31, 2021 was $1,180,496 thousand, $1,152,787 thousand and $130,783 thousand, respectively. The fair value valuation had not been performed by independent qualified professional valuers; however, management of the Group used the valuation model that market participants would use in determining the fair value. The valuation was arrived at by reference to market evidence of transaction prices for similar properties.

The above fair value measurement has taken into consideration the uncertainty on the volatility in the markets due to the evolution of the COVID-19 pandemic.

All of the Group’s investment properties was held under freehold interests. The investment properties pledged as collateral for bank borrowing were set out in Note 31.

18. BORROWINGS

a. Short-term borrowings

Secured borrowings (Note 31) Bank loans Unsecured borrowings Bank loans Letters of credit	March 31, 2022 December 31, 2021 $ 135,261 $ 130,461 621,379 432,047 67,631 - 689,010 432,047 $ 824,271 $ 562,508	March 31, 2021 $ - 783,713 - 783,713 $ 783,713

The interest rate on the bank loans and letters of credit were 2.65%-3.85%, 3.44%-3.85% and 0.65%-3.45% per annum as of March 31, 2022, December 31, 2021 and March 31, 2021, respectively.

b. Short-term bills payable

	March 31,	December 31,	March 31,	March 31,
	2022	2021		2021
Bank acceptances	$ 90,174	$ 86,974	$	-

Outstanding short-term bills payable were as follows:

March 31, 2022

Promissory Institution Bank acceptances Bank of Ningbo	Nominal Amount RMB 20,000	Discount Amount $ -	Carrying Amount Interest Rate Collateral $ 90,174 3.6% -	Carrying Amount of Collateral $ -

24 -

December 31, 2021

c.	Promissory Institution Nominal Amount Discount Amount Carrying Amount Interest Rate Collateral Bank acceptances Bank of Ningbo RMB 20,000 $ - $ 86,974 3.6% - Long-term borrowings March 31, 2022 December 31, 2021 Secured borrowings (Note 31) Bank loans $ - $ - Less: Current portions - - - - Unsecured borrowings Bank loans 1,883,983 1,955,302 Less: Current portion (335,253) (280,343) 1,548,730 1,674,959 Long-term borrowings $ 1,548,730 $ 1,674,959 The borrowings of the Group were as follows: Maturity Date March 31, 2022 December 31, 2021 Secured bank borrowing denominated in RMB 2021.09.04 $ - $ - Unsecured bank borrowing denominated in NT$ 2025.01.03 68,750 75,000 Unsecured bank borrowing denominated in NT$ 2025.01.03 103,125 112,500 Unsecured bank borrowing denominated in NT$ 2025.01.03 103,125 112,500 Unsecured bank borrowing denominated in NT$ 2025.04.01 300,000 300,000 Unsecured bank borrowing denominated in NT$ 2025.04.15 200,000 200,000 Unsecured bank borrowing denominated in NT$ 2024.09.15 200,000 200,000 Unsecured bank borrowing denominated in NT$ 2024.09.15 300,000 300,000 Unsecured bank borrowing denominated in NT$ 2024.09.15 100,000 100,000 Unsecured bank borrowing denominated in NT$ 2025.01.03 71,739 78,261 Unsecured bank borrowing denominated in NT$ 2026.08.17 200,000 200,000 Unsecured bank borrowing denominated in NT$ 2023.09.06 180,000 180,000 Unsecured bank borrowing denominated in US$ 2022.02.26 - 41,589 Unsecured bank borrowing denominated in US$ 2021.05.28 - - Unsecured bank borrowing denominated in US$ 2023.09.24 57,244 55,452 Less: Current portion (335,253) (280,343) $ 1,548,730 $ 1,674,959	Carrying Amount of Collateral $ - March 31, 2021 $ 283,504 (283,504) - 1,658,420 (183,150) 1,475,270 $ 1,475,270 March 31, 2021 $ 283,504 100,000 140,625 143,750 290,625 200,000 200,000 300,000 100,000 97,826 - - 57,063 28,531 - (466,654) $ 1,475,270	Carrying Amount of Collateral $ -



		$

The range of interest rate on bank loans was 0.10%-1.36%, 0.10%-1.2%, and 0.10%-6.18% per annum as of March 31, 2022, December 31, 2021 and March 31, 2021, respectively.

25 -

19. BONDS PAYABLE

Unsecured domestic convertible bonds Less: Discount on bonds payable	March 31, 2022 December 31, 2021 $ 1,200,000 $ 1,200,000 (24,686) (27,279) $ 1,175,314 $ 1,172,721	March 31, 2021 $ - - $ -

On July 26, 2021, the Company issued the 5th domestic unsecured convertible bonds with an aggregate principal amount of $1,200,000 thousand at 0% interest rate, and the issuance period is for three years from July 26, 2021 to July 26, 2024. The repayment will be made at face value in full by cash upon maturity. Bondholders are entitled to convert bonds into the Company’s ordinary shares from October 27, 2021 to July 26, 2024. The conversion price was set initially at $138 per share. According to the regulations on issuance and conversion of bonds, the conversion price should be adjusted to $133.7 per share starting from August 28, 2021.

The convertible bonds contain both liability and equity components. The equity component was presented in equity under the heading of capital surplus. The effective interest rate of the liability component was 0.8961% per annum on initial recognition.

Proceeds from issuance (less transaction costs of $5,427 thousand)

Equity component (less transaction costs allocated to the equity component of $129
thousand)
Assets component

Liability component at the date of issue (less transaction costs allocated to the liability
component of $5,298 thousand)
Interest charged at an effective interest rate

Liability component at December 31, 2021
Interest charged at an effective interest rate

Liability component at March 31, 2022

$ 1,194,573
(28,431)

2,040
1,168,182

4,539
1,172,721

2,593
$ 1,175,314

20. OTHER LIABILITIES

Current Other payables Payables for compensations to employees and directors Payables for commission Payables for salaries Payables for bonus Payables for annual leave Payables for purchase of equipment Others	March 31, 2022 December 31, 2021 $ 504,924 $ 413,264 27,931 24,273 149,930 166,626 154,641 472,609 43,425 43,683 104,842 212,665 165,667 146,192 $ 1,151,360 $ 1,479,312	March 31, 2021 $ 275,213 29,602 125,471 134,761 30,349 88,656 154,622 $ 838,674 (Continued)

26 -

Deferred revenue Arising from government grants (Note 27) Non-current Deferred revenue Arising from government grants (Note 27)	March 31, 2022 December 31, 2021 $ 24,589 $ 23,717 $ 67,228 $ 70,772	March 31, 2021 $ - $ - (Concluded)

21. RETIREMENT BENEFIT PLANS

a. Defined contribution plans

The Company adopted a pension plan under the Labor Pension Act (LPA), which is a state-managed defined contribution plan. Under the LPA, an entity makes monthly contributions to employees’ individual pension accounts at 6% of monthly salaries and wages.

The employees of the Group’s subsidiaries in mainland China are members of a state-managed retirement benefit plan operated by the government of China. The subsidiaries are required to contribute a specified percentage of payroll costs to the retirement benefit scheme to fund the benefits. The only obligation of the Group with respect to the retirement benefit plan is to make the specified contributions.

b. Defined benefit plans

Employee benefit expense for the three months ended March 31, 2022 and 2021 were $421 thousand and $438 thousand, respectively. Employee benefit expense was calculated on the basis of the actuarial valuations in December 31, 2021 and 2020.

22. EQUITY

a. Share capital

Ordinary shares

Numbers of shares authorized (in thousands) Shares authorized Number of shares issued and fully paid (in thousands) Shares issued	March 31, 2022 December 31, 2021 500,000 500,000 $ 5,000,000 $ 5,000,000 309,757 309,757 $ 3,097,570 $ 3,097,570	March 31, 2021 500,000 $ 5,000,000 309,757 $ 3,097,570

Fully paid ordinary shares, which have a par value of $10, carry one vote per share and carry a right to dividends.

The Company’s 30,000 thousand shares authorized were reserved for the issuance of convertible bonds and employee share options.

27 -

b. Capital surplus

May be used to offset a deficit, distributed as cash dividends, or transferred to share capital* Issuance of ordinary shares Conversion of bonds Overdue options The difference between consideration received or paid and the carrying amount of the subsidiaries’ net assets during actual disposal or acquisition Return of shareholders’ cash dividends May only be used to offset a deficit Share of changes in capital surplus of associates or joint venture Other May not be used for any purpose Employee share options	March 31, 2022 December 31, 2021 $ 611,776 $ 611,776 977,028 977,028 73,377 73,377 331 331 2,247 1,964 2,712 2,712 1,165 1,165 28,431 28,431 $ 1,697,067 $ 1,696,784	March 31, 2021 $ 611,776 977,028 73,377 331 1,964 2,712 1,081 - $ 1,668,269

Such capital surplus may be used to offset a deficit; in addition, when the Company has no deficit, such capital surplus may be distributed as cash dividends or transferred to share capital (limited to a certain percentage of the Company’s capital surplus and once a year).

c. Retained earnings and dividend policy

Under the dividends policy as set forth in the amended Articles, where the Company made profit in a fiscal year, the profit shall be first utilized for paying taxes, offsetting losses of previous years, setting aside as legal reserve 10% of the remaining profit, setting aside or reversing a special reserve in accordance with the laws and regulations, and then any remaining profit together with any undistributed retained earnings shall be used by the Company’s board of directors as the basis for proposing a distribution plan, which should be resolved in the shareholders’ meeting for distribution of dividends and bonuses to shareholders. For the policies on distribution of employees’ compensation and remuneration of directors and supervisors before and after amendment, refer to employee benefits expense in Note 24(g).

Dividends are recommended by the board of directors in accordance with the Corporation’s dividend policy. Under this policy, industry trends and growth should be evaluated, investment opportunities should be fully understood, and proper capital adequacy ratios should be considered in determining the dividends to be distributed. In addition, cash dividends should not be less than 20% of the total dividends to be appropriated.

Appropriation of earnings to the legal reserve shall be made until the legal reserve equals the Company’s paid-in capital. The legal reserve may be used to offset deficits. If the Company has no deficit and the legal reserve has exceeded 25% of the Company’s paid-in capital, the excess may be transferred to capital or distributed in cash.

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Items referred to under Rule No. 1010012865, Rule No. 1010047490 and Rule No. 1030006415 issued by the FSC and in the directive titled “Questions and Answers for Special Reserves Appropriated Following Adoption of IFRSs” should be appropriated to or reversed from a special reserve by the Company.

The appropriations of earnings for 2021 and 2020 that were proposed by the board of directors on May 9, 2022 and approved in the shareholders’ meetings on July 20, 2021 respectively. The appropriations and dividends per share were as follows:

Legal reserve Special reserve Cash dividends	Appropriation of Earnings For Fiscal Year 2021 For Fiscal Year 2020 $ 310,870 $ 155,246 (346,761) (177,611) 2,323,178 1,177,077	Dividends Per Share (NT$)
		For Fiscal Year 2021 For Fiscal Year 2020 $ - $ - - - 7.5 3.8

The appropriations of earnings for 2021 is subject to the resolution of the shareholders’ meeting to be held on May 31, 2022.

d. Other equity items

1) Exchange differences on translating the financial statements of foreign operations

Balance at January 1 Exchange differences on translating the financial statements of foreign operations Share of exchange differences of associates accounted for using the equity method Balance at March 31	For the Three Months Ended March 31	For the Three Months Ended March 31	For the Three Months Ended March 31
		2022 $ (559,579) 247,684 8,530 $ (303,365)	2021 $ (523,275) (39,109) (1,326) $ (563,710)

2) Unrealized gain (loss) on financial assets at FVTOCI

Balance at January 1 Recognized during the period Unrealized (loss) gain - equity instruments Other comprehensive income recognized in the period Cumulative unrealized gain/(loss) of equity instruments transferred to retained earnings due to disposal Balance at March 31		For the Three Months Ended March 31	For the Three Months Ended March 31
		2022 $ 1,357,362 (445,887) (445,887) (104,518) $ 806,957	2021 $ 176,513 234,341 234,341 - $ 410,854

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23. REVENUE

For the Three Months Ended March 31	For the Three Months Ended March 31	For the Three Months Ended March 31
$	2022 3,205,109 11,458 3,216,567 March 31, 2021 $ 3,828,206 $ 920,970 16,973 $ 937,943	2021 $ 3,310,709 - $ 3,310,709 January 1, 2021 $ 3,503,904 $ 729,079 12,730 $ 741,809
$

The contract liabilities were unearned sales revenue and accounted for other current liabilities.

24. NET PROFIT FROM CONTINUING OPERATIONS

a. Interest income

Bank deposits Financial assets at amortized cost Others	For the Three Months Ended March 31	For the Three Months Ended March 31	For the Three Months Ended March 31
		2022 $ 1,175 2,432 627 $ 4,234	2021 $ 3,572 3,797 213 $ 7,582

b. Other income

Income from government grants Others	For the Three Months Ended March 31	For the Three Months Ended March 31	For the Three Months Ended March 31
		2022 $ 17,204 9,663 $ 26,867	2021 $ 8,389 9,569 $ 17,958

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c. Other gains and losses

For the Three Months Ended March 31	For the Three Months Ended March 31	For the Three Months Ended March 31
2022 2021 $ (249) $ - 294 (27) (339) (7,106) 128,903 35,417 (5) (5,453) (4,823) (1,081) (2,315) (1,232) $ 121,466 $ 20,518 For the Three Months Ended March 31
2022 2021 $ 8,356 $ 5,037 2,593 - 22 5 $ 10,971 $ 5,042 For the Three Months Ended March 31
2022 2021 $ - $ 4,416 - 6.18% For the Three Months Ended March 31
	2022 $ 284,903 4,823 1,925 5,252 $ 296,903	2021 $ 244,972 1,081 1,342 2,091 $ 249,486 (Continued)

d. Finance costs

e. Depreciation and amortization

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An analysis of deprecation by function Operating costs Operating expenses Other gains and losses An analysis of amortization by function Operating expenses f. Employee benefits expense Post-employment benefits (see Note 21) Defined contribution plans Defined benefit plans Other employee benefits Payroll expense Labor and health insurance Others An analysis of employee benefits expense by function Operating costs Operating expenses	For the Three Months Ended March 31	For the Three Months Ended March 31	For the Three Months Ended March 31
	2022 2021 $ 230,402 $ 206,067 56,426 40,247 4,823 1,081 $ 291,651 $ 247,395 $ 5,252 $ 2,091 (Concluded) For the Three Months Ended March 31
		2022 $ 29,320 421 29,741 672,650 34,595 18,765 726,010 $ 755,751 $ 400,365 355,386 $ 755,751	2021 $ 21,274 438 21,712 601,722 30,330 15,181 647,233 $ 668,945 $ 401,812 267,133 $ 668,945

g. Employees’ compensation and remuneration of directors

The Company accrued employees’ compensation and remuneration of directors at the rates no less than 3% and no higher than 2%, respectively, of net profit before income tax, employees’ compensation, and remuneration of directors. The employees’ compensation and remuneration of directors for the three months ended March 31, 2022 and 2021, respectively, were as follows:

Accrual rate

Employees’ compensation Remuneration of directors	For the Three Months Ended March 31
	2022 2021 9.0% 9.0% 1.5% 1.5%

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Amount

Employees’ compensation Remuneration of directors	For the Three Months Ended March 31	For the Three Months Ended March 31	For the Three Months Ended March 31
		2022 $ 78,566 $ 13,094	2021 $ 72,408 $ 12,068

If there is a change in the amounts after the annual consolidated financial statements were authorized for issue, the differences are recorded as a change in the accounting estimate.

The employees’ compensation and remuneration of directors for the years ended December 31, 2021 and 2020 which were approved by the Company’s board of directors on March 7, 2022 and March 11, 2021, respectively, were as follows:

Employees’ compensation Remuneration of directors	For the Year Ended December 31	For the Year Ended December 31
	2021 Cash Share $ 354,226 $ - 59,038 -	2020
		Cash Share $ 163,489 $ - 27,248 -

There was no difference between the actual amounts of employees’ compensation and remuneration of directors paid and the amounts recognized in the consolidated financial statements for the year ended December 31, 2021 and 2020.

Information on the employees’ compensation and remuneration of directors resolved by the Company’s board of directors is available at the Market Observation Post System website of the Taiwan Stock Exchange.

25. INCOME TAXES RELATING TO CONTINUING OPERATIONS

a. Major components of tax expense recognized in profit or loss

The major components of tax expense were as follows:

Current tax In respect of the current year Deferred tax In respect of the current year Income tax expense recognized in profit or loss	For the Three Months Ended March 31	For the Three Months Ended March 31	For the Three Months Ended March 31
		2022 $ 111,239 29,830 $ 141,069	2021 $ 109,864 11,828 $ 121,692

b. Income tax assessments

The income tax returns of 2020 and those before 2017 had been assessed by the tax authorities.

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26. EARNINGS PER SHARE

The earnings and weighted average number of ordinary shares outstanding used in the computation of earnings per share from continuing operations were as follows:

Net Profit for the Period

Profit for the period attributable to owners of the Company Interest on convertible bonds after tax Earnings used in the computation of diluted earnings per share	For the Three Months Ended March 31	For the Three Months Ended March 31	For the Three Months Ended March 31
		2022 $ 670,337 2,593 $ 672,930	2021 $ 631,850 - $ 631,850

Weighted average number of ordinary shares outstanding (in thousand shares):

Weighted average number of ordinary shares in computation of basic earnings per share Effect of dilutive potential ordinary shares: Convertible bonds Employees’ compensation Weighted average number of ordinary shares used in the computation of diluted earnings per share	For the Three Months Ended March 31	For the Three Months Ended March 31	For the Three Months Ended March 31
		2022 309,757 8,975 3,425 322,157	2021 309,757 - 2,039 311,796

The Group may settle the compensation paid to employees by cash or shares; therefore, the Group presumes that the entire amount of the compensation will be settled in shares and the resulting potential shares will be included in the weighted average number of shares outstanding used in the computation of diluted earnings per share, if the shares had a dilutive effect. Such dilutive effect of the potential shares was included in the computation of diluted earnings per share until the shareholders resolve the number of shares to be distributed to employees at their meeting in the following year.

27. GOVERNMENT GRANTS

In November 2021, the Group received a government grant of $119,122 thousand for its investment of equipment. The amount was recognized as deferred revenue and subsequently transferred to profit or loss over the useful life of the related asset over the useful life of the related asset.

28. CAPITAL MANAGEMENT

The Group manages its capital to ensure that entities in the Group will be able to continue as going concerns while maximizing the return to stakeholders through the optimization of the debt and equity balance.

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The capital structure of the Group consists of net debt (borrowings offset by cash and cash equivalents) and equity attributable to owners of the Company (comprising issued capital, reserves, retained earnings and other equity).

The Group is not subject to any externally imposed capital requirements.

29. FINANCIAL INSTRUMENTS

a. Fair value of financial instruments
1) Fair value of financial instruments that are not measured at fair value

The management believes the carrying amounts of financial assets and financial liabilities recognized in the consolidated financial statements approximate their fair values.

2) Fair value of financial instruments that are measured at fair value on a recurring basis
a) Fair value hierarchy

March 31, 2022

Financial assets at FVTPL Domestic listed shares Redemption options on convertible bonds Foreign exchange forward contracts and exchange contracts Mutual funds Structured deposits Financial assets at FVTOCI Domestic listed shares Domestic unlisted shares Foreign unlisted shares Financial liabilities at FVTPL Foreign exchange forward contracts and exchange contracts	Level 1 $ 13,500 - - 109,696 - $ 123,196 $ 835,660 - - $ 835,660 $ -	Level 2 $ - 600 484 - 441,387 $ 442,471 $ - - - $ - $ 6,801	Level 3 $ - - - - - $ - $ - 87,740 241,934 $ 329,674 $ -	Total $ 13,500 600 484 109,696 441,387 $ 565,667 $ 835,660 87,740 241,934 $ 1,165,334 $ 6,801

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December 31, 2021

Financial assets at FVTPL Redemption options on convertible bonds Foreign exchange forward contracts and exchange contracts Mutual funds Structured deposits Financial liabilities at FVTPL Foreign exchange forward contracts and exchange contracts Financial assets at FVTOCI Domestic emerging shares Domestic unlisted shares Foreign unlisted shares March 31, 2021 Financial assets at FVTPL Mutual funds Structured deposits Financial assets at FVTOCI Domestic emerging shares Domestic unlisted shares Foreign unlisted shares Financial liabilities at FVTPL Foreign exchange forward contracts and exchange contracts	Level 1 $ - - 191,487 - $ 191,487 $ - $ 1,399,268 - - $ 1,399,268 Level 1 $ 259,418 - $ 259,418 $ 347,786 - - $ 347,786 $ -	Level 2 $ 1,080 2,399 - 529,142 $ 532,621 $ 1,383 $ - - - $ - Level 2 $ - 241,289 $ 241,289 $ - - - $ - $ 8,331	Level 3 $ - - - - $ - $ - $ - 77,466 233,358 $ 310,824 Level 3 $ - - $ - $ - 100,290 309,656 $ 409,946 $ -	Total $ 1,080 2,399 191,487 529,142 $ 724,108 $ 1,383 $ 1,399,268 77,466 233,358 $ 1,710,092 Total $ 259,418 241,289 $ 500,707 $ 347,786 100,290 309,656 $ 757,732 $ 8,331

For the three-month periods ended March 31, 2022 and 2021, there were no transfer between Level 1 and Level 2.

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b) Reconciliation of Level 3 fair value measurements of financial assets

For the three months ended March 31, 2022

Financial Assets Balance at January 1, 2022 Purchase Recognized in other comprehensive income Effect of foreign currency exchange differences Balance at March 31, 2022 For the three months ended March 31, 2021 Financial Assets Balance at January 1, 2021 Sales Transfer to Level 1 Effect of foreign currency exchange differences Balance at March 31, 2021	Financial Assets at FVTPL Equity Instruments $ - - - - $ - Financial Assets at FVTPL Equity Instruments $ 9,255 (9,255) - - $ -	Financial Assets at FVTOCI
		Equity Instruments $ 310,824 10,000 274 8,576 $ 329,674 Financial Assets at FVTOCI
		Equity Instruments $ 525,304 - (113,445) (1,913) $ 409,946

Since the UPI Semiconductor Corp.’s shares were listed on the Taipei Exchange on March 12, 2021, the fair value hierarchy was transferred from Level 3 to Level 1 when observable market data became available for such equity investment.

c) Valuation techniques and inputs applied for the purpose of measuring Level 2 fair value measurement

Financial Instruments
Derivatives - foreign
exchange forward
contracts and exchange
contracts
Structured deposits
Redemption options on
convertible bonds

Valuation Techniques and Inputs

Discounted cash flow.
Future cash flows are estimated based on observable forward
exchange rates at the end of the reporting period and contract
forward rates, discounted at a rate that reflects the credit risk
of various counterparties.
Discounted cash flow.
Future cash flows are discounted at a rate that reflects current
borrowing interest rates of the bond issuers at the end of the
reporting period
Binomial tree valuation model.
Binomial tree valuation model were evaluated by the observable
closing price of the stocks, volatility, risk-free interest rate,
risk discount rate, and liquidity risk at the balance sheet date.

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d) Valuation techniques and inputs applied for the purpose of measuring Level 3 fair value measurement

The Group uses price-book ratio approach, comparing the net value per share with other public companies among similar industries or evaluating share price based on average price-book ratio of other competitors, to capture the present value of the expected future economic benefits to be derived from the ownership of these investees.

The fair values of unlisted equity securities - ROC were determined using income approach. In this approach, the discounted cash flow method was used to capture the present value of the expected future economic benefits to derived from the ownership of these investees. The significant unobservable inputs used are listed in the table below. An increase in long-term revenue growth rates or long-term pre-tax operating margin or a decrease in the WACC or discount for lack of marketability used in isolation would result in increase in the fair value.

b. Categories of financial instruments

	March 31,	March 31,	December 31,	December 31,	March 31,	March 31,
		2022		2021		2021
Financial assets
FVTPL
Mandatorily at FVTPL (1)	$	565,667	$	724,108	$	500,707
Financial assets at amortized cost (2)		8,497,813		8,019,825		6,564,038
Financial assets at FVTOCI
Equity instruments		1,165,334		1,710,092		757,732
Financial liabilities
FVTPL
Mandatorily at FVTPL (3)	$	6,801	$	1,383	$	8,331
Amortized cost (4)		6,924,999		7,422,413		5,434,823

1) The balances included the carrying amount of beneficiary certificate, foreign exchange forward contracts and exchange contracts, structured deposits and redemption options on convertible bonds.
2) The balances include financial assets measured at amortized cost, which comprise cash and cash equivalents, notes receivable, trade receivables, other receivables and refundable deposits.
3) The balances included the carrying amount of foreign exchange forward contracts and exchange contracts.
4) The balances included financial liabilities measured at amortized cost, which comprise short-term and long-term loans, short-term bills payable, bonds payable, notes payable, trade, payable, other payables and guarantee deposits received.
c. Financial risk management objectives and policies

The Group’s major financial instruments included equity and debt investments, trade receivables, trade payables and borrowings. The Group’s corporate treasury function provides services to the business, coordinates access to domestic and international financial markets, and monitors and manages the financial risks relating to the operations of the Group through internal risk reports which analyze exposures by degree and magnitude of risks. These risks include market risk (including foreign currency risk, interest rate risk and other price risk), credit risk and liquidity risk.

38 -

The Group sought to minimize the effects of these risks by using derivative financial instruments to hedge risk exposures. The use of financial derivatives was governed by the Group’s policies approved by the board of directors, which provided written principles on foreign currency risk, interest rate risk, credit risk, the use of financial derivatives and non-derivative financial instruments, and the investment of excess liquidity. Compliance with policies and exposure limits was reviewed by the internal auditors on a continuous basis. The Group did not enter into or trade financial instruments, including derivative financial instruments, for speculative purposes.

The corporate treasury function reported quarterly to the Group’s risk management committee, an independent body that monitors risks and policies implemented to mitigate risk exposures.

1) Market risk

The Group’s activities exposed it primarily to the financial risks of changes in foreign currency exchange rates (see (a) below) and interest rates (see (b) below). The Group entered into a variety of derivative financial instruments to manage its exposure to foreign currency risk and interest rate risk, including: Foreign exchange forward contracts to hedge the exchange rate risk arising on the Group’s foreign currency monetary.

There has been no change to the Group’s exposure to market risks or the manner in which these risks are managed and measured.

a) Foreign currency risk

Several subsidiaries of the Company had foreign currency sales and purchases, which exposed the Group to foreign currency risk.

The carrying amounts of the Group’s foreign currency denominated monetary assets and monetary liabilities (including those eliminated on consolidation) at the end of the reporting period (see Note 33).

Sensitivity analysis

The Group was mainly exposed to the USD and JPY.

The following table details the Group’s sensitivity to a 1% increase and decrease in the New Taiwan dollar (the functional currency) against the relevant foreign currencies. The sensitivity rate used when reporting foreign currency risk internally to key management personnel and representing management’s assessment of the reasonably possible change in foreign exchange rates is 1%. The sensitivity analysis included only outstanding foreign currency denominated monetary items and foreign exchange forward contracts designated as cash flow hedges, and adjusts their translation at the end of the reporting period for a 1% change in foreign currency rates. The sensitivity analysis included external loans/borrowings as well as loans/borrowings to foreign operations within the Group where the denomination of the loan is in a currency other than the functional currency of the lender or the borrower. A positive number below indicates an increase in post-tax profit and other equity associated with the New Taiwan dollar strengthening 1% against the relevant currency. For a 1% weakening of the New Taiwan dollar against the relevant currency, there would be an equal and opposite impact on post-tax profit and other equity and the balances below would be negative.

Profit or loss	USD Impact For the Three Months Ended March 31 2022 2021 $ 44,130 $ 23,777	JPY Impact
		For the Three Months Ended March 31
		2022 2021 $ (1,492) $ (2,416)

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i. This was mainly attributable to the exposure outstanding on USD receivables and payables, which were not hedged at the end of the reporting period.
ii. This was mainly attributable to the exposure to outstanding JPY payables, which were not hedged, at the end of the reporting period.
b) Interest rate risk

The Group was exposed to interest rate risk because the Group’s bank deposits and the Group borrowed funds at floating interest rates.

The carrying amounts of the Group’s financial assets and financial liabilities with exposure to interest rates at the end of the reporting period were as follows:

	March 31,	March 31,	December 31,	December 31,	March 31,	March 31,
		2022		2021		2021
Fair value interest rate risk
Financial assets	$	1,014,109	$	786,559	$	712,547
Financial liabilities		2,989,759		2,763,792		1,995,749
Cash flow interest rate risk
Financial assets		3,479,707		3,112,326		1,953,357
Financial liabilities		983,983		1,013,713		729,889

Sensitivity analysis

The sensitivity analyses below were determined based on the Group’s exposure to interest rates for both derivatives and non-derivative instruments at the end of the reporting period. For floating rate liabilities, the analysis was prepared assuming the amount of the liability outstanding at the end of the reporting period was outstanding for the whole year. A 0.25% basis point increase or decrease was used when reporting interest rate risk internally to key management personnel and represents management’s assessment of the reasonably possible change in interest rates.

If interest rates had been 0.25% basis points higher/lower and all other variables were held constant, the Group’s pre-tax profit for the three months ended March 31, 2022 and 2021 would increase by $1,560 thousand and $765 thousand, which was mainly attributable to the Group’s exposure to interest rates on its floating rate bank deposits and bank borrowings.

2) Credit risk

Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in a financial loss to the Group. As at the end of the reporting period, the Group’s maximum exposure to credit risk, which would cause a financial loss to the Group due to the failure of the counterparty to discharge its obligation and due to the financial guarantees provided by the Group, could be equal to the total of the following:

a) The carrying amount of the respective recognized financial assets as stated in the balance sheets; and
b) The maximum amount the entity would have to pay if the financial guarantee is called upon, irrespective of the likelihood of the guarantee being exercised.
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3) Liquidity risk

The Group manages liquidity risk by monitoring and maintaining a level of cash and cash equivalents deemed adequate to finance the Group’s operations and mitigate the effects of fluctuations in cash flows. In addition, management monitors the utilization of bank borrowings and ensures compliance with loan covenants.

The Group relies on bank borrowings as a significant source of liquidity. As of March 31, 2022, December 31, 2021 and March 31, 2021, the Group had available unutilized short-term bank loan facilities of approximately $7,041,760 thousand, $6,909,081 thousand and $6,907,537 thousand, respectively.

Liquidity and interest risk rate tables

The following table details the Group’s remaining contractual maturities for its non-derivative financial liabilities with agreed upon repayment periods. The table has been drawn up based on the undiscounted cash flows of financial liabilities from the earliest date on which the Group can be required to pay. The table included both interest and principal cash flows. Specifically, bank loans with a repayment on demand clause were included in the earliest time band regardless of the probability of the banks choosing to exercise their rights. The maturity dates for other non-derivative financial liabilities were based on the agreed upon repayment dates.

To extent that interest flows are floating rates, the undiscounted amount was derived from the interest rate curve at the end of the reporting period.

March 31, 2022

	Weighted
	Interest
	Average
	Effective Rate	Less Than
	(%)	1 Year		2-3 Years		4-5 Years		5+ Years			Total
Non-derivative financial
liabilities
Trade payables	-	$ 1,726,159	$	-	$	-	$			-	$ 1,726,159
Other payables	-	1,153,174		-		-				-	1,153,174
Other current liabilities	-	28,454		-		-				-	28,454
Lease liabilities	0.86-1.27	3,061		3,916		-				-	6,977
Variable interest rate
liabilities	0.1-0.68	155,253		749,897		78,833				-	983,983
Fixed interest rate
liabilities	0.3-3.85	1,094,445		1,895,314		-				-	2,989,759
December 31, 2021
	Weighted
	Interest
	Average
	Effective Rate	Less Than
	(%)	1 Year		2-3 Years		4-5 Years		5+ Years			Total
Non-derivative financial
liabilities
Trade payables	-	$ 2,091,611	$	-	$	-	$		-		$ 2,091,611
Other payables	-	1,482,807		-		-			-		1,482,807
Other current liabilities	-	31,928		-		-			-		31,928
Lease liabilities	0.86-1.27	3,051		4,685		-			-		7,736
Variable interest rate
liabilities	0.3-3.85	142,754		755,626		115,333			-		1,013,713
Fixed interest rate
liabilities	0.1-4.1	787,071		1,940,721		36,000			-		2,763,792

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March 31, 2021

	Weighted
	Interest
	Average
	Effective Rate	Less Than
	(%)		1 Year	2-3 Years	4-5 Years	5+ Years		Total
Non-derivative financial
liabilities
Trade payables	-	$	1,834,250 $	- $	- $		-	$ 1,834,250
Other payables	-		840,096	-	-		-	840,096
Other current liabilities	-		961,667	-	-		-	961,667
Lease liabilities	0.86		1,114	681	378		-	2,173
Variable interest rate
liabilities	0.1-3.4		183,150	348,174	198,565		-	729,889
Fixed interest rate
liabilities	0.3-6.18		1,067,218	640,531	288,000		-	1,995,749

The amounts included above for variable interest rate instruments for both non-derivative financial assets and liabilities was subject to change if changes in variable interest rates differ from those estimates of interest rates determined at the end of the reporting period.

Liquidity and interest rate risk tables for derivative financial liabilities

The following table detailed the Group’s liquidity analysis for its derivative financial instruments. The table was based on the undiscounted contractual net cash inflows and outflows on derivative instruments that settle on a net basis, and the undiscounted gross inflows and outflows on those derivatives that require gross settlement.

March 31, 2022

On Demand or Less Than 1 Month 1-3 Months 3 Months to 1 Year Net settled Foreign exchange forward contracts and exchange contracts $ (2,065) $ (4,259) $ 5 December 31, 2021 On Demand or Less Than 1 Month 1-3 Months 3 Months to 1 Year Net settled Foreign exchange forward contracts and exchange contracts $ 1,024 $ 84 $ (92) March 31, 2021 On Demand or Less Than 1 Month 1-3 Months 3 Months to 1 Year Net settled Foreign exchange forward contracts and exchange contracts $ (2,916) $ (3,618) $ (1,797)	1-5 Years $ - 1-5 Years $ - 1-5 Years $ -	5+ Years $ -
		5+ Years $ -
		5+ Years $ -

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30. RELATED-PARTY TRANSACTIONS

Balances and transactions between the Company and its subsidiaries, which are related parties of the Company, have been eliminated on consolidation and are not disclosed in this note. Details of transactions between the Group and other related parties are disclosed as follows.

Name Tai-Shing Electronics Components Corporation TSE Technology (Ningbo) Co., Ltd. EcLife Co., Ltd. Ningbo Longying Semiconductor Co., Ltd.	Relationship with the Group
	Associate Associate Other associate Other associate

a. Sale of goods

Line Items Related Party Categories Sales Associates Other associates	For the Three Months Ended March 31	For the Three Months Ended March 31	For the Three Months Ended March 31
		2022 $ 31,670 2,951 $ 34,621	2021 $ 27,095 3,364 $ 30,459

Selling prices and payment terms offered to related parties were similar to those offered to third parties.

b. Purchase of goods

Related Party Categories Other associates	For the Three Months Ended March 31	For the Three Months Ended March 31	For the Three Months Ended March 31
		2022 $ 1,314	2021 $ 4,330

Purchase prices and payment terms offered by related parties were similar to those offered by third parties.

c. Operating expenses

Related Party Categories Other associates Commission revenue Related Party Categories Associates Other associates	For the Three Months Ended March 31	For the Three Months Ended March 31	For the Three Months Ended March 31
	2022 2021 $ 526 $ 495 For the Three Months Ended March 31
		2022 $ 375 - $ 375	2021 $ 620 12 $ 632

d. Commission revenue
43 -

e. Rental income

Related Party Categories Location Rent Collection TSE Technology (Ningbo) Co., Ltd. 1F., No. 189, Huangshan W. Rd., Beilun Dist., Ningbo City Based on contract, and paid on a monthly basis Tai-Shing Electronics Components Corporation 6F., No. 4, Gongye 6th Rd., Pingzhen Dist., Taoyuan City 324, Taiwan (R.O.C.) Based on contract, and paid on a monthly basis Ningbo Longying Semiconductor Co., Ltd. 1F., No. 189, Huangshan W. Rd., Beilun Dist., Ningbo City Based on contract, and paid on a monthly basis		For the Three Months Ended March 31	For the Three Months Ended March 31	For the Three Months Ended March 31
		2022 Amount % to Total Account Balance $ 1,134 - 884 - 44 - $ 2,062		2021
				Amount % to Total Account Balance $ 751 - 896 - 31 $ 1,678

There is no significant difference in transaction terms between related parties and unrelated parties.

f. Receivables from related parties (excluding loans to related parties)

Related Party Categories Associates Other associates Less: Allowance for impairment loss	March 31, 2022 December 31, 2021 $ 34,158 $ 27,256 3,747 3,706 (68) (68) $ 37,837 $ 30,894	March 31, 2021 $ 28,707 3,974 (69) $ 32,612

The outstanding trade receivables from related parties are unsecured.

g. Payables to related parties (excluding loans from related parties)

Related Party Categories Other associates	March 31, 2022 December 31, 2021 $ 132 $ 2,140	March 31, 2021 $ 4,844

The outstanding trade payables to related parties are unsecured.

Payment term of the transactions to related parties were similar to those for third parties.

h. Other receivables from related parties

Related Party Categories Associates Other associates	March 31, 2022 December 31, 2021 $ 732 $ 1,154 39 25 $ 771 $ 1,179	March 31, 2021 $ 13 662 $ 675

44 -

i. Other payables to related parties

December 31, 2021 March 31, 2021 $ 3,495 $ 1,422 December 31, 2021 March 31, 2021 $ 4,247 $ 18 Acquisition Amounts	December 31, 2021 March 31, 2021 $ 3,495 $ 1,422 December 31, 2021 March 31, 2021 $ 4,247 $ 18 Acquisition Amounts	December 31, 2021 March 31, 2021 $ 3,495 $ 1,422 December 31, 2021 March 31, 2021 $ 4,247 $ 18 Acquisition Amounts
For the Three Months Ended March 31
2022 2021 $ 1,200 $ 818 For the Three Months Ended March 31
	2022 $ 56,844 962 $ 57,806	2021 $ 49,899 1,016 $ 50,915

The remuneration of directors and key executives, as determined by the remuneration committee, was based on the performance of individuals and market trends.

31. ASSETS PLEDGED AS COLLATERAL OR FOR SECURITY

The following assets were provided as collateral for bank borrowings:

Land and land improvement Building equipment, net Investment property Land for development Pledged deposits Right-of-use assets	March 31, 2022 December 31, 2021 $ - $ - 286,061 284,332 14,679 16,775 - - 62,690 60,916 11,238 10,931 $ 374,668 $ 372,954	March 31, 2021 $ 569,909 932,032 37,204 1,285,648 62,353 11,188 $ 2,898,334

45 -

32. SIGNIFICANT CONTINGENT LIABILITIES AND UNRECOGNIZED COMMITMENTS

In addition to those disclosed in other notes, significant commitments and contingencies of the Group as of March 31, 2022 and 2021 were as follows:

a. As of March 31, 2022, unused letters of credit amounted to approximately JPY202,616 thousand and EUR1,188 thousand.
b. On November 8, 2021, the board of directors of the Company approved its subsidiary TETC CORP. NINGBO to construct a plant project, with an estimated investment of RMB145,000 thousand, related construction matters are still under design and planning. On April 19, 2022, the Company signed a construction contract amounted to RMB102,000 thousand (tax included).
c. As of March 31, 2022, the Company unrecognized commitments are as follows:

Acquisition of equipment Acquisition of equipment Acquisition of equipment Acquisition of equipment Acquisition of equipment	Contract Amount $ 90,857 RMB 58,050 JPY 1,166,050 US$ 914 EUR 1,697	Paid Amount Unpaid Amount $ 59,543 $ 31,314 RMB 21,959 RMB 36,091 JPY 349,804 JPY 816,246 US$ 404 US$ 510 EUR 509 EUR 1,188

33. EXCHANGE RATE OF FINANCIAL ASSETS AND LIABILITIES DENOMINATED IN FOREIGN CURRENCIES

The significant financial assets and liabilities of entities in Group denominated in foreign currencies aggregated by the foreign currencies other than functional currencies and the related exchange rates between foreign currencies and respective functional currencies were as follows:

Unit: In Thousands of Foreign Currencies and New Taiwan Dollars)

March 31, 2022

		Foreign		Carrying
		Currency	Exchange Rate	Amount
Financial assets
Monetary items
USD	$	148,269	28.622 (USD:NTD)	$ 4,243,755
USD		15,146	6.3482 (USD:RMB)	433,509
JPY		940,516	0.2353 (JPY:NTD)	221,303
JPY		681,516	0.0522 (JPY:RMB)	160,361
JPY		329,603	0.0082 (JPY:USD)	77,556
Financial liabilities
Monetary items
USD		8,044	28.622 (USD:NTD)	230,235
USD		1,189	6.3482 (USD:RMB)	34,032
JPY		1,207,984	0.2353 (JPY:NTD)	284,239
JPY		1,127,101	0.0522 (JPY:RMB)	265,207
JPY		250,686	0.0082 (JPY:USD)	58,986

46 -

December 31, 2021

		Foreign		Carrying
		Currency	Exchange Rate	Amount
Financial assets
Monetary items
USD	$	149,297	27.69 (USD:NTD)	$ 4,134,034
USD		18,499	6.3674 (USD:RMB)	512,237
JPY		655,609	0.2406 (JPY:NTD)	157,740
JPY		593,346	0.0553 (JPY:RMB)	142,759
JPY		779,162	0.0087 (JPY:USD)	187,466
Financial liabilities
Monetary items
USD		11,401	27.69 (USD:NTD)	315,694
USD		4,764	6.3674 (USD:RMB)	131,915
JPY		1,524,360	0.2406 (JPY:NTD)	366,761
JPY		1,353,526	0.0553 (JPY:RMB)	325,658
JPY		382,816	0.0087 (JPY:USD)	92,106
March 31, 2021
		Foreign		Carrying
		Currency	Exchange Rate	Amount
Financial assets
Monetary items
USD	$	114,966	28.5310 (USD:NTD)	$ 3,280,095
USD		6,767	6.5712 (USD:RMB)	193,069
JPY		1,013,239	0.2576 (JPY:NTD)	261,010
JPY		616,410	0.0593 (JPY:RMB)	158,787
Financial liabilities
Monetary items
USD		31,809	28.5310 (USD:NTD)	907,543
USD		6,588	6.5712 (USD:RMB)	187,962
JPY		1,215,730	0.2576 (JPY:NTD)	313,172
JPY		1,351,993	0.0593 (JPY:RMB)	348,273

For the three months ended March 31, 2022 and 2021, realized and unrealized net foreign exchange gains were $128,903 thousand and $35,417 thousand, respectively. It is impractical to disclose net foreign exchange gains (losses) by each significant foreign currency due to the variety of the foreign currency transactions and functional currencies of the group entities.

47 -

34. SEPARATELY DISCLOSED ITEMS

a. Information on significant transactions:
1) Lending funds to others. (None)
2) Providing endorsements or guarantees for others. (None)
3) Holding of securities at the end of the period. (Table 1)
4) Aggregate purchases or sales of the same securities reaching NT$300 million or 20 percent of paid-in capital or more. (None)
5) Acquisition of real estate reaching NT$300 million or 20 percent of paid-in capital or more. (None)
6) Disposal of real estate reaching NT$300 million or 20 percent of paid-in capital or more. (None)
7) Purchases or sales of goods from or to related parties reaching NT$100 million or 20 percent of paid-in capital or more. (Table 2)
8) Trade receivables from related parties reaching NT$100 million or 20 percent of paid-in capital or more. (Table 3)
9) Trading in derivative instruments. (Note 7)
10) Others: The business relationship between the parent and the subsidiaries and between each subsidiary, and the circumstances and amounts of any significant transactions between them. (Table 7)
b. Information on investees (Table 4)
c. Information on investments in mainland China
1) Information on any investee company in mainland China, showing the name, principal business activities, paid-in capital, method of investment, inward and outward remittance of funds, shareholding ratio, investment gain or loss, carrying amount of the investment at the end of the period, repatriated investment gains, and limit on the amount of investment in the mainland China area. (Table 5)
2) Any of the following significant transactions with investee companies in mainland China, either directly or indirectly through a third area, and their prices, payment terms, and unrealized gains or losses: (Table 6)
- a) The amount and percentage of purchases and the balance and percentage of the related payables at the end of the period.
- b) The amount and percentage of sales and the balance and percentage of the related receivables at the end of the period.
- c) The amount of property transactions and the amount of the resultant gains or losses.
- d) The balance of negotiable instrument endorsements or guarantees or pledges of collateral at the end of the period and the purposes.
48 -
e) The highest balance, the end of period balance, the interest rate range, and total current period interest with respect to financing of funds.
f) Other transactions that have a material effect on the profit or loss for the period or on the financial position, such as the rendering or receipt of services.
d. Information of major shareholders ： List all shareholders with ownership of 5% or greater showing the name of the shareholder, the number of shares owned, and percentage of ownership of each shareholder (None)

35. SEGMENT INFORMATION

Information reported to the chief operating decision maker for the purpose of resource allocation and assessment of segment performance focuses on the types of goods or services delivered or provided. Specifically, the Group’s reportable segments under IFRS 8 “Operating Segments” were as follows:

a. Crystal

The chief operating decision maker see every crystal selling unit in Taiwan and China as an operating segment. While preparing the financial report, the Group considers the following reasons:

1) The similar gross profit between the selling units.
2) The similar product’s nature and manufacturing process.
3) The same product’s delivery type.
b. Real estate development segment

The department and sales of real estate, along with mall space leasing in Chongqing is considered a separate operating segment by the chief operating decision maker (CODM)

Segment revenue and results

Crystal Real estate development segment Continuing operations Interest income Other income Other gains and losses Financial costs Share of profit or loss of subsidiaries, associates and joint ventures Profit before tax (continuing operations)	Segment Revenue For the Three Months Ended March 31 2022 2021 $ 3,205,109 $ 3,310,709 11,458 - $ 3,216,567 $ 3,310,709	Segment Revenue For the Three Months Ended March 31 2022 2021 $ 3,205,109 $ 3,310,709 11,458 - $ 3,216,567 $ 3,310,709	Segment Profit	Segment Profit	Segment Profit
			For the Three Months Ended March 31
		2022 $ 3,205,109 11,458 $ 3,216,567		2022 $ 671,302 (3,853) 667,449 4,234 26,867 121,466 (10,971) 2,361 $ 811,406	2021 $ 711,020 - 711,020 7,582 17,958 20,518 (5,042) 1,506 $ 753,542

49 -

Segment revenue reported above represents revenue generated from external customers. There were no inter-segment sales for the three months ended March 31, 2022 and 2021.

Segment profit represents the profit before tax earned by each segment without allocation of central administration costs and directors’ salaries, share of profit of associates, gains recognized on disposal of interests in former associates, rental revenue, interest income, gains or losses on disposal of property, plant and equipment, gains or losses on disposal of financial instruments, exchange gains or losses, valuation gains or losses on financial instruments, finance costs and income tax expense. This was the measure reported to the chief operating decision maker for the purpose of resource allocation and assessment of segment performance.

50 -

TABLE 1

TXC CORPORATION AND SUBSIDIARIES

MARKETABLE SECURITIES HELD MARCH 31, 2022

(In Thousands of New Taiwan Dollars, Unless Stated Otherwise)

Holding Company Name	Type and Name of Marketable Securities	Relationship with the Holding Company	Financial Statement Account		March 31, 2022	March 31, 2022
				Shares	Carrying Amount	Percentage of Ownership	Fair Value
TXC Corporation TXC (Ningbo) Corporation TXC (Chongqing) Corporation Ningbo Beilun Jingyu Trading Corporation Ningbo Meishan Free Trade Port Area Ding Kai Investment Management Company Limited	Stock-unlisted company Godsmith Sensor Inc RFIC Technology Corporation Gallopwave Inc. Win Precision Technology Co., Ltd. Stock-listed shares UPI Semiconductor Corp. United Microelectronics Corporation Beneficiary certificate CICC Wealth Management 800 Fund Shares overseas-unlisted company Ningbo SJ Electronics Co., Ltd. Structured deposits China Merchants Bank Co., Ltd. Agricultural Bank of China. China CITIC Bank China Everbright Bank Beneficiary certificate Southern Cash Fund Shares overseas-unlisted company Zhejiang Bright Semiconductor Technology Co., Ltd.	None ″ ″ ″ ″ TXC Corporation is a direct of the Company A direct of one of the TXC Corporation’s direct None None None ″ ″ ″ None None	Non-current assets held for sale Financial assets at fair value through other comprehensive income - 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 other comprehensive income - 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 other comprehensive income - non-current	250 550 2,334 5,000 1,365 1,316 250 RMB 24,266 RMB 6,000 RMB 5,530 RMB 1,156 RMB 24,005 RMB 48,309 RMB 64 RMB 7,000	$ 4,985 $ 9,596 5,359 10,000 62,785 835,660 $ 923,400 $ 13,500 $ 109,406 $ 55,436 $ 24,931 5,210 108,233 217,809 $ 356,183 $ 290 $ 183,279	1 3 12 10 3 2 - - 5 - - - - - 4	$ 4,985 $ 9,596 5,359 10,000 62,785 835,660 $ 923,400 $ 13,500 $ 109,406 $ 55,436 $ 24,931 5,210 108,233 217,809 $ 356,183 $ 290 $ 183,279
							(Continued)

51 -

Holding Company Name	Type and Name of Marketable Securities	Relationship with the Holding Company	Financial Statement Account		March 31, 2022	March 31, 2022
				Shares	Carrying Amount	Percentage of Ownership	Fair Value
TXC Technologies Inc. Chongqing Zhongyang Properties Co., Ltd. ChongQing Dingsen Commercial Management Co., Ltd.	Shares overseas-unlisted company Investment QST LLC Structured deposits Chongqing Rural Commercial Bank Structured deposits China Construction Bank Corporation	None None None	Financial assets at fair value through other comprehensive income - non-current Financial assets at fair value through profit or loss - current Financial assets at fair value through profit or loss - current	US$ 250 RMB 18,534 RMB 363	$ 3,219 $ 83,565 $ 1,639	- - -	$ 3,219 $ 83,565 $ 1,639
							(Concluded)

52 -

TABLE 2

TXC CORPORATION AND SUBSIDIARIES

TOTAL PURCHASES FROM OR SALES TO RELATED PARTIES AMOUNTING TO AT LEAST $100 MILLION OR 20% OF THE PAID-IN CAPITAL FOR THE THREE MONTHS ENDED MARCH 31, 2022

(In Thousands of New Taiwan Dollars)

Buyer	Related Party	Relationship		Transaction Details	Transaction Details	Transaction Details	Abnormal Transaction	Abnormal Transaction	Notes/Accounts Receivable (Payable)	Notes/Accounts Receivable (Payable)	Note
			Purchase/ Sale	Amount	% to Total	Payment Terms	Unit Price	Payment Terms	Ending Balance	% to Total
TXC Corporation	TXC (Ningbo) Corporation TXC (Chongqing) Corporation	Subsidiary `〃`	Purchase Purchase	$ 628,167 319,484	39 20	No significant differences with the third parties. `〃`	Its trading price depends on its function within the Group `〃`	No significant differences with the third parties. `〃`	$ (641,351) (327,710)	(42) (22)

53 -

TABLE 3

TXC CORPORATION AND SUBSIDIARIES

RECEIVABLES FROM RELATED PARTIES AMOUNTING TO AT LEAST NT$100 MILLION OR 20% OF THE PAID-IN CAPITAL MARCH 31, 2022

(In Thousands of New Taiwan Dollars)

Company Name	Related Party	Relationship	Ending Balance	Turnover Rate		Overdue	Amount Received in Subsequent Period	Allowance for Impairment Loss
					Amount	Action Taken
TXC Corporation TXC (Ningbo) Corporation TXC (Chongqing) Corporation TXC (Ningbo) Corporation	TXC (Ningbo) Corporation TXC Corporation TXC Corporation TETC CORP. NINGBO	Subsidiary Parent entity Parent entity Subsidiary	$ 111,812 641,351 327,710 138,163	3.33 4.03 3.94 Note	$ - - - -		$ 27,960 170,579 113,322 46,384	$ - - - -

Note: The ending balance is primarily consisted of other receivables, which is not applicable for the calculation of turnover rate.

54 -

TABLE 4

TXC CORPORATION AND SUBSIDIARIES

NAMES, LOCATIONS, AND RELATED INFORMATION OF INVESTEES ON WHICH THE COMPANY EXERCISES SIGNIFICANT INFLUENCE FOR THE THREE MONTHS ENDED MARCH 31, 2022

(In Thousands of New Taiwan Dollars, Unless Stated Otherwise)

Investor Company	Investee Company	Location	Main Businesses and Products	Original Investment Amount	Original Investment Amount	Balance as of March 31, 2022	Balance as of March 31, 2022	Balance as of March 31, 2022	Net Income (Losses) of the Investee	Equity in the Earnings (Losses)	Note
				March 31, 2022	December 31, 2021	Shares (In Thousands)	Percentage of Ownership	Carrying Value
TXC Corporation	Taiwan Crystal Technology International Ltd. Taiwan Crystal Technology International (HK) Limited TXC Japan Corporation TXC Technology Inc. Tai-Shing Electronics Components Corporation TXC Europe GmbH	Western Samoa Hong Kong Japan U.S.A. Taiwan Germany	Investment management International trading Marketing activities Marketing activities Manufacture and sales of electronics products Marketing activities	$ 1,390,461 2,371 6,172 9,879 373,432 1,746	$ 1,390,461 2,371 6,172 9,879 373,432 1,746	42,835 80 2 300 8,802 50	100.00 100.00 100.00 100.00 33.34 100.00	$ 6,861,738 176,309 31,015 23,763 404,042 7,233	$ 191,228 (2,785) 1,218 2,057 12,892 2,513	$ 185,249 (2,785) 1,218 2,057 4,298 2,513

55 -

TABLE 5

TXC CORPORATION AND SUBSIDIARIES

INFORMATION ON INVESTMENT IN MAINLAND CHINA FOR THE THREE MONTHS ENDED MARCH 31, 2022 (In Thousands of New Taiwan Dollars)

Name of the investees in mainland China, main businesses and products, paid-in capital, method of investment, information on inflow or outflow of capital, percentage of ownership, investment income or loss, ending balance of investment, dividends remitted by the investee, and the limit of investment in mainland China:

Investee Company	Main Businesses and Products	Main Businesses and Products	Paid-in Capital	Method of Investment	Method of Investment	Accumulated Outflow of Investments from Taiwan as of January 1, 2022	Investment Flows	Investment Flows	Accumulated Outflow of Investments from Taiwan as of March 31, 2022	Investee Company Current Net Income	Percentage of Ownership	Investment Income (Loss) Recognized	Carrying Amount as of March 31, 2022	Accumulated Inward Remittance of Earnings as of March 31, 2022
							Outflow	Inflow
TXC (Ningbo) Corporation TXC (Chongqing) Corporation TETC CORP. NINGBO Chongqing Zhongyang Properties Co. Ltd. Ningbo Beilun Jingyu Trading Corporation Ningbo Longying Semiconductor Co., ltd. Ningbo Meishan Free Trade Port Area Ding Kai Investment Management Company Limited ChongQing Dingsen Commercial Management Co., Ltd.	Research and development, manufacture, and sale of quartz elements and related electronic products Research and development, manufacture, and sale of quartz elements and related electronic products Research and development, manufacture, and sale of quartz elements and related electronic products Properties development International trading Research and development in integrated circuit Investment management Property management		$ 2,350,052 1,162,074 433,440 684,908 7,090 183,180 160,043 2,185	Indirect investment of the Corporation in mainland China through the Corporation’s subsidiary in a third region Other investment of the Corporation in mainland China Other investment of the Corporation in mainland China Other investment of the Corporation in mainland China Other investment of the Corporation in mainland China Other investment of the Corporation in mainland China Other investment of the Corporation in mainland China Other investment of the Corporation in mainland China		$ 1,427,630 - - - - - - -	$ - - - - - - - -	$ - - - - - - - -	$ 1,427,630 - - - - - - -	$ 191,228 51,087 70,273 (6,932) 9 (4,842) - (567)	100 100 100 100 100 40 100 100	$ 191,228 51,087 70,273 (6,932) 9 (1,937) - (567)	$ 6,889,501 1,726,305 636,346 824,482 6,120 39,583 183,555 373	$ 720,617 306,500 - - - - - -

Accumulated Outward Remittance for Investments in mainland China as of March 31, 2022		Investment Amounts Authorized by the Investments Commission, MOEA			Upper Limit on the Amount of Investments Stipulated by Investment Commission, MOEA
$ 1,427,630		$ 2,350,052			$ -

Note: The investment in mainland China has no maximum limit since the Company has acquired the approval from the Industrial Development Bureau for the establishment of the Company’s operating headquarters in Taiwan.

56 -

TABLE 6

TXC CORPORATION AND SUBSIDIARIES

SIGNIFICANT TRANSACTIONS WITH INVESTEE COMPANIES IN MAINLAND CHINA, EITHER DIRECTLY OR INDIRECTLY THROUGH A THIRD PARTY, AND THEIR PRICES, PAYMENT TERMS, AND UNREALIZED GAINS OR LOSSES

FOR THE THREE MONTHS ENDED MARCH 31, 2022 (In Thousands of New Taiwan Dollars)

Significant direct or indirect transactions with the investees, prices and terms of payment, unrealized gain or loss:

Company Name	Investee Company	Transaction Type	Purchase/Sale	Purchase/Sale	Price	Transaction Details	Transaction Details	Accounts/Notes Receivable/Payable	Accounts/Notes Receivable/Payable	Unrealized (Gain) Loss	Note
			Amount	%		Payment Term	Comparison with Normal Transaction	Ending Balance	%
TXC Corporation	TXC (Ningbo) Corporation TXC (Ningbo) Corporation TXC (Chongqing) Corporation TETC CORP. NINGBO	Purchase Sale Purchase Purchase	$ 628,167 92,447 319,484 63,883	39 4 20 4	Its trading price depends on its function within the Group `〃` `〃`	Similar with third parties `〃` `〃`	Its trading price depends on its function within the Group `〃` `〃`	$ (641,351) 111,812 (327,710) (65,186)	(42) 3 (22) (4)	$ 2,142 2,866 82 471

The transactions of properties and the profit or loss: None.
Endorsements guarantees or collateral directly or indirectly provided to the investees: None
Financing directly or indirectly provided to the investees: None
Other transactions that significantly impacted the current year’s profit or loss or financial position: None
57 -

TABLE 7

TXC CORPORATION AND SUBSIDIARIES

INTERCOMPANY RELATIONSHIPS AND SIGNIFICANT INTERCOMPANY TRANSACTIONS FOR THE THREE MONTHS ENDED MARCH 31, 2022

(In Thousands of New Taiwan Dollars)

For the three months ended March 31, 2022

No.	Company Name	Counterparty	Nature of Relationship (Note 1)		Intercompany Transactions	Intercompany Transactions
				Accounts	Amount	Terms (Note 2)	Percentage of Consolidated Total Gross Sales or Total Assets (%)
0	TXC Corporation	TXC (Ningbo) Corporation TXC (Chongqing) Corporation TETC CORP. NINGBO	a a a	Sales Purchase Trade receivables Trade payables Purchase Trade payables Purchase Trade payables	$ 92,447 628,167 111,812 641,351 319,484 327,710 63,883 65,186	a a a a a a a a	3 20 1 3 10 2 2 -
1	TXC (Ningbo) Corporation	TXC (Chongqing) Corporation TETC CORP. NINGBO	c c	Purchase Trade payables Sales Trade receivables Other receivables	50,632 61,709 45,034 67,206 138,163	c c c c c	2 - 1 - 1

Note 1: a. Represent the transactions from parent company to subsidiary.
c. Represent the transactions between subsidiaries.
Note 2: For the three months ended March 31, 2022 and 2021, the selling price and purchasing price were not significantly different from those of third parties, except for TXC (Ningbo) Corporation, TXC (Chongqing) Limited, TETC CORP. NINGBO and Taiwan Crystal Technology (HK) Limited which is depending on its function within the Group.
Note 3: The company may decide whether to list the material transactions in this table according to the principle of materiality.
58 -

AI assistant

TXC — Interim / Quarterly Report 2022

52274_rns_2022-12-16_028d122e-f453-4619-a46b-b041fb352423.pdf

TXC CORPORATION AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(In Thousands of New Taiwan Dollars)

TXC CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (In Thousands of New Taiwan Dollars, Except Earnings Per Share) (Reviewed, Not Audited)

TXC CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (In Thousands of New Taiwan Dollars, Except Earnings Per Share) (Reviewed, Not Audited)

TXC CORPORATION AND SUBSIDIARIES

TXC CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS (In Thousands of New Taiwan Dollars) (Reviewed, Not Audited)

TXC CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS (In Thousands of New Taiwan Dollars) (Reviewed, Not Audited)

TXC CORPORATION AND SUBSIDIARIES

1. GENERAL INFORMATION

2. APPROVAL OF FINANCIAL STATEMENTS

3. APPLICATION OF NEW, AMEND AND REVISED STANDARDS, AND INTERPRETATIONS

4. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

5. CRITICAL ACCOUNTING JUDGMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY

6. CASH AND CASH EQUIVALENTS

7. FINANCIAL INSTRUMENTS AT FAIR VALUE THROUGH PROFIT OR LOSS

Contract Amount Currency Maturity Date (In Thousands)

8. FINANCIAL ASSETS AT FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME

9. FINANCIAL ASSETS AT AMORTIZED COST

10. NOTES RECEIVABLE AND TRADE RECEIVABLES

March 31, 2021

11. INVENTORIES

12. SUBSIDIARIES

Subsidiary Included in the Consolidated Financial Statements

Remarks:

13. NON-CURRENT ASSETS CLASSIFIED AS HELD FOR SALE

14. INVESTMENTS ACCOUNTED FOR USING EQUITY METHOD

b. Investment joint ventures

15. PROPERTY, PLANT AND EQUIPMENT

16. LEASE ARRANGEMENTS

b. Lease liabilities

c. Material lease-in activities and terms

d. Other lease information

17. INVESTMENT PROPERTIES

18. BORROWINGS

a. Short-term borrowings

b. Short-term bills payable

December 31, 2021

19. BONDS PAYABLE

20. OTHER LIABILITIES

21. RETIREMENT BENEFIT PLANS

a. Defined contribution plans

b. Defined benefit plans

22. EQUITY

Ordinary shares

b. Capital surplus

c. Retained earnings and dividend policy

d. Other equity items

23. REVENUE

24. NET PROFIT FROM CONTINUING OPERATIONS

c. Other gains and losses

d. Finance costs

Accrual rate

Amount

25. INCOME TAXES RELATING TO CONTINUING OPERATIONS

26. EARNINGS PER SHARE

Net Profit for the Period

27. GOVERNMENT GRANTS

28. CAPITAL MANAGEMENT

29. FINANCIAL INSTRUMENTS

December 31, 2021

For the three months ended March 31, 2022

1) Market risk

a) Foreign currency risk

Sensitivity analysis

Sensitivity analysis

2) Credit risk

3) Liquidity risk

Liquidity and interest risk rate tables

March 31, 2021

Liquidity and interest rate risk tables for derivative financial liabilities

March 31, 2022

30. RELATED-PARTY TRANSACTIONS

TXC Interim / Quarterly Report 2022