TXC - Interim / Quarterly Report 2022

TXC Corporation and Subsidiaries Consolidated Financial Statements for the Six Months Ended June 30, 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 31) Other receivables Other receivables from related parties (Note 31) 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 31) Other payables (Note 20) Other payables to related parties (Note 31) Current tax liabilities (Note 25) Lease liabilities - current (Note 16) Deferred revenue - current (Notes 20 and 28) 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 28) 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		June 30, 2022 (Reviewed) Amount % $ 4,794,529 22 502,151 2 293,886 2 27,654 - 3,813,702 18 28,774 - 65,134 - 285 - 3,000,539 14 4,985 - 141,273 1 12,672,912 59 - - 929,763 5 47,343 - 464,508 2 6,173,140 29 208,948 1 491,207 2 55,808 - 51,926 - 323,608 2 15,244 - 8,761,495 41 $ 21,434,407 100 $ 593,961 3 88,584 1 8,341 - 11,063 - 1,921,078 9 1,014 - 3,583,210 17 8,230 - 278,568 1 3,070 - 23,292 - 481,525 2 47,729 - 7,049,665 33 1,177,942 6 1,460,842 7 147,009 1 3,145 - 60,867 - 55,744 - 79,561 - 2,985,110 14 10,034,775 47 3,097,570 14 1,703,036 8 1,946,812 9 - - 4,512,551 21 6,459,363 30 (425,776) (2) 565,439 3 139,663 1 11,399,632 53 $ 21,434,407 100		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		June 30, 2021 (Reviewed)
						Amount % $ 2,857,784 16 597,431 3 229,205 1 1,942 - 3,796,716 21 40,505 - 64,426 - 768 - 2,848,936 16 17,946 - 170,126 1 10,625,785 58 - - 813,479 5 133,095 1 424,307 2 5,165,498 28 88,513 1 288,784 2 43,717 - 34,470 - 596,375 3 15,896 - 7,604,134 42 $ 18,229,919 100 $ 1,023,494 6 - - 844 - 117,498 1 2,198,212 12 2,328 - 2,318,382 13 2,759 - 244,784 1 448 - - - 393,254 2 83,607 - 6,385,610 35 - - 1,415,217 8 69,763 1 947 - - - 57,706 - 68,484 - 1,612,117 9 7,997,727 44 3,097,570 17 1,668,353 9 1,635,942 9 346,761 2 3,628,254 20 5,610,957 31 (607,980) (3) 463,292 2 (144,688) (1) 10,232,192 56 $ 18,229,919 100

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

(With Deloitte & Touche review report dated August 8, 2022)

TXC CORPORATION AND SUBSIDIARIES

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

SALES (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 Expected credit loss recognized on trade receivables 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 profit of associates and joint ventures (Note 14) Total non-operating income and expenses PROFIT BEFORE INCOME TAX INCOME TAX EXPENSE (Note 25) NET PROFIT FOR THE PERIOD		For the Three Months Ended June 30	For the Three Months Ended June 30	For the Three Months Ended June 30		For the Six Months Ended June 30	For the Six Months Ended June 30	For the Six Months Ended June 30
		2022		2021		2022		2021
		Amount % $ 3,514,013 100 (2,132,089) (61) 1,381,924 39 139,748 4 177,370 5 264,095 7 - - 581,213 16 800,711 23 6,492 - 35,251 1 192,404 5 (12,027 ) - 8,280 - 230,400 6 1,031,111 29 (191,006) (5) 840,105 24		Amount % $ 4,341,126 100 (2,755,045) (63) 1,586,081 37 146,011 3 165,921 4 234,336 6 2 - 546,270 13 1,039,811 24 5,074 - 30,817 1 5,530 - (9,831 ) - 2,956 - 34,546 1 1,074,357 25 (154,051) (4) 920,306 21		Amount % $ 6,730,580 100 (4,149,579) (62) 2,581,001 38 273,653 4 333,345 5 505,843 7 - - 1,112,841 16 1,468,160 22 10,726 - 62,118 1 313,870 5 (22,998 ) (1 ) 10,641 - 374,357 5 1,842,517 27 (332,075) (5) 1,510,442 22		Amount % $ 7,651,835 100 (4,868,947) (64) 2,782,888 36 282,686 3 294,860 4 454,509 6 2 - 1,032,057 13 1,750,831 23 12,656 - 48,775 1 26,048 - (14,873 ) - 4,462 - 77,068 1 1,827,899 24 (275,743) (4) 1,552,156 20 (Continued)

TXC CORPORATION AND SUBSIDIARIES

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

OTHER COMPREHENSIVE (LOSS) INCOME 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 Share of the other comprehensive loss of associates and joint ventures accounted for using the equity method 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 (loss) income of associates and joint ventures accounted for using the equity method Other comprehensive income (loss) for the period, net of income tax TOTAL COMPREHENSIVE INCOME (LOSS) FOR THE PERIOD EARNINGS PER SHARE (Note 26) From continuing operations Basic Diluted		For the Three Months Ended June 30	For the Three Months Ended June 30	For the Three Months Ended June 30		For the Six Months Ended June 30	For the Six Months Ended June 30	For the Six Months Ended June 30
		2022		2021		2022		2021
		Amount % $ (241,486 ) (7 ) (8) - (241,494) (7) (118,595 ) (3 ) (3,816) - (122,411) (3) (363,905) (10) $ 476,200 14 $2.72 $2.63		Amount % $ 52,438 1 (51) - 52,387 1 (42,902 ) (1 ) (1,368) - (44,270) (1) 8,117 - $ 928,423 21 $2.97 $2.96		Amount % $ (687,373 ) (10 ) (8) - (687,381) (10) 129,089 2 4,714 - 133,803 2 (553,578) (8) $ 956,864 14 $4.88 $4.71		Amount % $ 286,779 4 (51) - 286,728 4 (82,011 ) (1 ) (2,694) - (84,705) (1) 202,023 3 $ 1,754,179 23 $5.01 $4.98

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

(With Deloitte & Touche review report dated August 8, 2022)

(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 Appropriation of 2020 earnings (Note 22) Legal reserve Special reserve Cash dividends distributed by the Company Net profit for the six months ended June 30, 2021 Other comprehensive income (loss) for the six months ended June 30, 2021, net of income tax Total comprehensive income (loss) for the six months ended June 30, 2021 Other changes in capital surplus BALANCE AT JUNE 30, 2021 BALANCE AT JANUARY 1, 2022 Appropriation of 2021 earnings (Note 22) Legal reserve Special reserve Cash dividends distributed by the Company Net profit for the six months ended June 30, 2022 Other comprehensive income (loss) for the six months ended June 30, 2022, net of income tax Total comprehensive income (loss) for the six months ended June 30, 2022 Disposal of investments in equity instruments designated as at fair value through other comprehensive income Other changes in capital surplus Changes in capital surplus from investment in associates and joint ventures accounted for using the equity method BALANCE AT JUNE 30, 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 - - - - - - - - (84,705) 286,779 (84,705) 286,779 - - $ (607,980) $ 463,292 $ (559,579) $ 1,357,362 - - - - - - - - 133,803 (687,405) 133,803 (687,405) - (104,518) - - - - $ (425,776) $ 565,439	Total Equity $ 9,655,006 - - (1,177,077) 1,552,156 202,023 1,754,179 84 $ 10,232,192 $ 12,759,694 - - (2,323,178) 1,510,442 (553,578) 956,864 - 283 5,969 $ 11,399,632
	Shares (In Thousands) Share Capital Capital Surplus 309,757 $ 3,097,570 $ 1,668,269 - - - - - - - - - - - - - - - - - - - - 84 309,757 $ 3,097,570 $ 1,668,353 309,757 $ 3,097,570 $ 1,696,784 - - - - - - - - - - - - - - - - - - - - - - - 283 - - 5,969 309,757 $ 3,097,570 $ 1,703,036	Retained Earnings Unappropriated Legal Reserve Special Reserve Earnings $ 1,480,696 $ 524,372 $ 3,230,861 155,246 - (155,246) - (177,611) 177,611 - - (1,177,077) - - 1,552,156 - - (51) - - 1,552,105 - - - $ 1,635,942 $ 346,761 $ 3,628,254 $ 1,635,942 $ 346,761 $ 5,184,854 310,870 - (310,870) - (346,761) 346,761 - - (2,323,178) - - 1,510,442 - - 24 - - 1,510,466 - - 104,518 - - - - - - $ 1,946,812 $ - $ 4,512,551

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

(With Deloitte & Touche review report dated August 8, 2022)

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 Expected credit loss recognized on trade receivables Net loss (gain) on fair value changes of financial assets and liabilities at fair value through profit or loss Finance costs Interest income Dividend income Share of profit of associates and joint ventures Loss (gain) 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 Cash generated from operations Interest paid Income tax paid Net cash generated from operating activities		For the Six Months Ended June 30	For the Six Months Ended June 30
		2022 $ 1,842,517 600,057 10,551 - 4,425 22,998 (10,726) (1,500) (10,641) 761 1,948 9,851 249 (22,975) 190,654 2,120 7,641 894 (371,192) (17,794) 249 (168,393) (1,126) (219,780) 4,735 26,615 (10,330) (6,045) 1,885,763 (17,277) (332,735) 1,535,751	2021 $ 1,827,899 506,165 4,591 2 (10,369) 14,873 (12,656) - (4,462) (1,221) 5,750 5,248 - 20,017 (323,017) (10,344) (19,866) (278) (282,412) 21,541 (611,581) 250,614 (1,215) 179,096 1,279 56,830 - (5,854) 1,610,630 (15,654) (131,446) 1,463,530 (Continued)

TXC CORPORATION AND SUBSIDIARIES

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

CASH FLOWS FROM INVESTING ACTIVITIES Purchase of financial assets/liabilities at fair value through profit or loss Proceeds from sale of financial assets 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 Purchase of financial assets at amortized cost Proceeds from sale of financial assets at amortized cost Acquisition 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 prepayments for equipment Interest received Net cash used in investing activities CASH FLOWS FROM FINANCING ACTIVITIES Proceeds from short-term borrowings Proceeds from long-term borrowings Repayments of long-term borrowings Proceeds from 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 THE BALANCE OF CASH HELD IN FOREIGN CURRENCIES NET INCREASE 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 Six Months Ended June 30	For the Six Months Ended June 30
		2022 $ - 238,524 (20,000) 117,447 (57,409) - (11,207) 1,745 (693,238) 1,204 (13,497) 2,114 - 10,524 (423,793) 14,386 87,919 (108,583) 9,071 (1,521) 283 1,555 49,371 1,162,884 3,631,645 $ 4,794,529	2021 $ (51,543) - (5,359) - - 547,719 (1,658) 17,946 (1,023,934) 123,621 (3,713) 2,314 (291,591) 12,646 (673,552) 108,531 100,000 (357,420) 32,357 (1,554) 84 (118,002) (32,469) 639,507 2,218,277 $ 2,857,784

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

(With Deloitte & Touche review report dated August 8, 2022)

(Concluded)

TXC CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS FOR THE SIX MONTHS ENDED JUNE 30, 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.

TXC’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 from 2018 to 2021. 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 August 8, 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.

7 -
b. The IFRSs endorsed by the FSC for application starting from 2023

New IFRSs 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
	January 1, 2023 (Note 1) January 1, 2023 (Note 2) January 1, 2023 (Note 3)

Note 1: The amendments will be applied prospectively for annual reporting periods beginning on or after January 1, 2023.
Note 2: 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 3: 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.

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.
8 -
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.

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

The amendments clarify that the initial recognition exemption under IAS 12 does not apply to transactions in which equal taxable and deductible temporary differences arise on initial recognition. The Group will recognize a deferred tax asset (to the extent that it is probable that taxable profit will be available against which the deductible temporary difference can be utilized) and a deferred tax liability for all deductible and taxable temporary differences associated with leases and decommissioning obligations on January 1, 2022, and recognize the cumulative effect of initial application in retained earnings at that date. The Group will apply the amendments prospectively to transactions other than leases and decommissioning obligations that occur on or after January 1, 2022.

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.

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

Effective Date New IFRSs Announced by IASB (Note) Amendments to IFRS 10 and IAS 28 “Sale or Contribution of Assets To be determined by IASB between An Investor and Its Associate or Joint Venture” IFRS 17 “Insurance Contracts” January 1, 2023 Amendments to IFRS 17 January 1, 2023 Amendments to IFRS 17 “Initial Application of IFRS 9 and IFRS 17 - January 1, 2023 Comparative Information” Amendments to IAS 1 “Classification of Liabilities as Current or January 1, 2023 Non-current”

Note : Unless stated otherwise, the above New IFRSs are effective for annual reporting periods beginning on or after their respective effective dates.

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 consolidated 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 an 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 an 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.

10 -
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.

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 of less than three months) Time deposits Repurchase agreements collateralized by bonds	June 30, 2022 December 31, 2021 $ 1,223 $ 1,115 3,190,894 3,069,037 502,412 251,493 1,100,000 310,000 $ 4,794,529 $ 3,631,645	June 30, 2021 $ 1,413 2,292,943 443,428 120,000 $ 2,857,784

11 -

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 assets Listed shares Mutual funds Hybrid financial assets Structured deposits (a) 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 instruments (not under hedge accounting) Foreign exchange forward contracts and exchange contracts (b)	June 30, 2022 December 31, 2021 $ - $ 2,399 19,575 - 54,038 191,487 428,538 529,142 502,151 720,629 $ 502,151 $ 723,028 $ - $ 1,080 $ 8,341 $ 1,383	June 30, 2021 $ 474 - 191,334 405,623 596,957 $ 597,431 $ - $ 844

a. The Group entered into structured time deposit contract with Bank during the six months ended June 30, 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 mandatorily classified 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, foreign exchange contracts and exchange contracts not under hedge accounting were as follows:

			Contract Amount
	Currency	Maturity Date	(In Thousands)
June 30, 2022
Sell	USD/RMB	2022.07.27-2022.10.27	USD9,500/RMB62,754
Sell	USD/JPY	2022.07.07-2022.07.26	USD5,500/JPY728,010
Knock-out forward	USD/NTD	2022.07.08	USD1,000/NTD29,300
Exchange contracts	USD/NTD	2022.08.03-2022.09.28	USD14,000/NTD414,046
			(Continued)

12 -

			Contract Amount
	Currency	Maturity Date	(In Thousands)
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
June 30, 2021
Knock-out forward	USD/JPY	2021.07.06	USD1,500/JPY166,350
Exchange contracts	USD/NTD	2021.07.23-2021.08.27	USD9,000/NTD250,877
Foreign exchange forward	USD/NTD	2021.08.20-2021.09.17	USD12,000/NTD339,300
contracts
Sell	USD/RMB	2021.07.05-2021.10.22	USD9,000/RMB58,477
Sell	USD/RMB	2021.07.28-2021.11.26	USD11,500/RMB75,012
Sell	USD/JPY	2021.07.08-2021.07.19	USD2,000/JPY220,473
			(Concluded)

The Group entered into foreign exchange forward contracts during the six months ended June 30, 2022 and 2021 to manage exposures due 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 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 and emerging market shares Foreign investments Unlisted shares	June 30, 2022 December 31, 2021 $ 594,174 $ - - 1,399,268 97,740 77,466 691,914 1,476,734 237,849 233,358 $ 929,763 $ 1,710,092	June 30, 2021 $ - 400,224 105,649 505,873 307,606 $ 813,479

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 30.

13 -

In 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.

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)	June 30, 2022 December 31, 2021 $ 66,287 $ 60,916 227,599 72,270 - - $ 293,886 $ 133,186 $ 47,343 $ 135,907	June 30, 2021 $ 61,007 70,323 97,875 $ 229,205 $ 133,095

a. Refer to Note 32 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 3 months were approximately 1.68%-4.125%, 3.91%-4.38% and 3.91%-4.38% per annum as of June 30, 2022, December 31, 2021 and June 30, 2021, respectively.
c. 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, TRADE RECEIVABLES AND OTHER RECEIVABLES

Notes receivable Notes receivable - operating Less: Allowance for impairment loss Trade receivables At amortized cost Gross carrying amount Less: Allowance for impairment loss	June 30, 2022 December 31, 2021 $ 27,660 $ 4,685 (6) (6) $ 27,654 $ 4,679 $ 3,856,028 $ 4,048,803 (13,552) (13,488) $ 3,842,476 $ 4,035,315	June 30, 2021 $ 1,948 (6) $ 1,942 $ 3,850,680 (13,459) $ 3,837,221

14 -

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 measures the loss allowance for trade receivables at an amount equal to lifetime ECLs. The expected credit losses on trade receivables are estimated using a provision matrix prepared by reference to the past default experience of the customer, the customer’s current financial position, economic condition of the industry in which the customer operates, as well as the GDP forecasts and industry outlook. 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 recognizes 100% loss allowance for trade receivables of greater than 120 days past due and unsecured.

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.

June 30, 2022

Expected credit loss rate Gross carrying amount Loss allowance (Lifetime ECL) Amortized cost December 31, 2021 Expected credit loss rate Gross carrying amount Loss allowance (Lifetime ECL) Amortized cost June 30, 2021 Expected credit loss rate Gross carrying amount Loss allowance (Lifetime ECL) Amortized cost	Not Past Due 0.36% $ 3,625,439 (13,113) $ 3,612,326 Not Past Due 0.3% $ 3,804,496 (11,253) $ 3,793,243 Not Past Due 0.3% $ 3,630,345 (11,424) $ 3,618,921	1 to 60 Days 61 to 120 Days 121 to 180 Days Over 180 Days 0.02%-0.2% 7.51%-15.03% 100% 100% $ 255,172 $ 3,077 $ - $ - (58) (387) - - $ 255,114 $ 2,690 $ - $ - 1 to 60 Days 61 to 120 Days 121 to 180 Days Over 180 Days 0.9% 5% 100% 100% $ 248,992 $ - $ - $ - (2,241) - - - $ 246,751 $ - $ - $ - 1 to 60 Days 61 to 120 Days 121 to 180 Days Over 180 Days 0.9% 5% 100% 100% $ 222,050 $ 200 $ - $ 33 (1,998) (10) - (33) $ 220,052 $ 190 $ - $ -	Total - $ 3,883,688 (13,558) $ 3,870,130 Total - $ 4,053,488 (13,494) $ 4,039,994 Total - $ 3,852,628 (13,465) $ 3,839,163

15 -

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

Balance at January 1 Add: Impairment losses recognized Foreign exchange gains and losses Balance at June 30		June 30
		2022 $ 13,494 - 64 $ 13,558	2021 $ 13,506 2 (43) $ 13,465

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	June 30, 2022 December 31, 2021 $ 589,191 $ 582,087 464,881 436,873 815,466 635,358 117,515 112,785 553,166 405,775 - - 460,320 466,411 $ 3,000,539 $ 2,639,289	June 30, 2021 $ 419,419 396,849 576,129 124,366 532,576 651,375 148,222 $ 2,848,936

The cost of crystal inventories recognized as cost of goods sold for the three and the six months ended June 30, 2022 and 2021 included $2,125,218 thousand, $2,216,534 thousand, $4,134,816 thousand and $4,330,436 thousand, respectively. The cost of goods sold for the three and the six months ended June 30, 2022 and 2021 included inventory write-downs of $5,586 thousand, $1,812 thousand, $9,851 thousand and $5,248 thousand, respectively.

The cost of real estate inventories recognized as cost of goods sold for the three and the six months ended June 30, 2022 and 2021 included $6,871 thousand, $538,511 thousand, $14,763 thousand and $538,511 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.

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

Area Jinfeng Group C Division	June 30, 2021	June 30, 2021
	Prepaid Land Rights Project Cost $ 194,957 $ 456,418	Total Contract Liabilities - Current $ 651,375 $ -

16 -

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

Area Jing Yuan Area Jing Yuan Area Jing Yuan	June 30, 2022
	Buildings and Land Held for Sale Contract Liabilities - Current $ 460,320 $ 11,063 December 31, 2021
	Buildings and Land Held for Sale Contract Liabilities - Current $ 466,411 $ 10,814 June 30, 2021
	Buildings and Land Held for Sale Contract Liabilities - Current $ 148,222 $ 117,498

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 32.

12. SUBSIDIARIES

Subsidiaries 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
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
June 30,
2022
December 31,
2021
June 30,
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
100
100
100
i
100
100
100
l
100
100
100
k

17 -
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 six months ended June 30, 2022 and 2021 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.

13. NON-CURRENT ASSETS CLASSIFIED AS HELD FOR SALE

Domestic investments Unlisted shares Godsmith Sensor Inc.	June 30, 2022 December 31 2021 $ 4,985 $ 6,979	June 30, 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 six months ended June 30, 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.

18 -

14. INVESTMENTS ACCOUNTED FOR USING THE EQUITY METHOD

June 30, 2022 December 31, 2021 June 30, 2021 Investments in associates and joint venture $ 464,508 $ 431,301 $ 424,307 a. Investment in associates June 30, 2022 December 31, 2021 June 30, 2021 Associates that are not individually material $ 409,756 $ 391,214 $ 379,707 For the Three Months Ended June 30 For the Six Months Ended June 30 2022 2021 2022 2021 The Group’s share of: Profit from continuing operations $ 9,538 $ 4,231 $ 13,836 $ 7,168 Other comprehensive (loss) income (3,824) (1,419) 4,706 (2,745) Total comprehensive income for the period $ 5,714 $ 2,812 $ 18,542 $ 4,423	June 30, 2022 December 31, 2021 June 30, 2021 Investments in associates and joint venture $ 464,508 $ 431,301 $ 424,307 a. Investment in associates June 30, 2022 December 31, 2021 June 30, 2021 Associates that are not individually material $ 409,756 $ 391,214 $ 379,707 For the Three Months Ended June 30 For the Six Months Ended June 30 2022 2021 2022 2021 The Group’s share of: Profit from continuing operations $ 9,538 $ 4,231 $ 13,836 $ 7,168 Other comprehensive (loss) income (3,824) (1,419) 4,706 (2,745) Total comprehensive income for the period $ 5,714 $ 2,812 $ 18,542 $ 4,423	June 30, 2022 December 31, 2021 June 30, 2021 Investments in associates and joint venture $ 464,508 $ 431,301 $ 424,307 a. Investment in associates June 30, 2022 December 31, 2021 June 30, 2021 Associates that are not individually material $ 409,756 $ 391,214 $ 379,707 For the Three Months Ended June 30 For the Six Months Ended June 30 2022 2021 2022 2021 The Group’s share of: Profit from continuing operations $ 9,538 $ 4,231 $ 13,836 $ 7,168 Other comprehensive (loss) income (3,824) (1,419) 4,706 (2,745) Total comprehensive income for the period $ 5,714 $ 2,812 $ 18,542 $ 4,423	June 30, 2022 December 31, 2021 June 30, 2021 Investments in associates and joint venture $ 464,508 $ 431,301 $ 424,307 a. Investment in associates June 30, 2022 December 31, 2021 June 30, 2021 Associates that are not individually material $ 409,756 $ 391,214 $ 379,707 For the Three Months Ended June 30 For the Six Months Ended June 30 2022 2021 2022 2021 The Group’s share of: Profit from continuing operations $ 9,538 $ 4,231 $ 13,836 $ 7,168 Other comprehensive (loss) income (3,824) (1,419) 4,706 (2,745) Total comprehensive income for the period $ 5,714 $ 2,812 $ 18,542 $ 4,423	June 30, 2022 December 31, 2021 June 30, 2021 Investments in associates and joint venture $ 464,508 $ 431,301 $ 424,307 a. Investment in associates June 30, 2022 December 31, 2021 June 30, 2021 Associates that are not individually material $ 409,756 $ 391,214 $ 379,707 For the Three Months Ended June 30 For the Six Months Ended June 30 2022 2021 2022 2021 The Group’s share of: Profit from continuing operations $ 9,538 $ 4,231 $ 13,836 $ 7,168 Other comprehensive (loss) income (3,824) (1,419) 4,706 (2,745) Total comprehensive income for the period $ 5,714 $ 2,812 $ 18,542 $ 4,423

			2022 $ 13,836 4,706 $ 18,542	2021 $ 7,168 (2,745) $ 4,423

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.

In 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.

b. Investment joint venture

June 30, 2022 December 31, 2021 June 30, 2021 Joint ventures that are not individually material $ 54,752 $ 40,087 $ 44,600 For the Three Months Ended June 30 For the Six Months Ended June 30 2022 2021 2022 2021 The Group’s share of: Profit from continuing operations $ (1,258) $ (1,275) $ (3,195) $ (2,706) Total comprehensive income for the period $ (1,258) $ (1,275) $ (3,195) $ (2,706)	June 30, 2022 December 31, 2021 June 30, 2021 Joint ventures that are not individually material $ 54,752 $ 40,087 $ 44,600 For the Three Months Ended June 30 For the Six Months Ended June 30 2022 2021 2022 2021 The Group’s share of: Profit from continuing operations $ (1,258) $ (1,275) $ (3,195) $ (2,706) Total comprehensive income for the period $ (1,258) $ (1,275) $ (3,195) $ (2,706)	June 30, 2022 December 31, 2021 June 30, 2021 Joint ventures that are not individually material $ 54,752 $ 40,087 $ 44,600 For the Three Months Ended June 30 For the Six Months Ended June 30 2022 2021 2022 2021 The Group’s share of: Profit from continuing operations $ (1,258) $ (1,275) $ (3,195) $ (2,706) Total comprehensive income for the period $ (1,258) $ (1,275) $ (3,195) $ (2,706)	June 30, 2022 December 31, 2021 June 30, 2021 Joint ventures that are not individually material $ 54,752 $ 40,087 $ 44,600 For the Three Months Ended June 30 For the Six Months Ended June 30 2022 2021 2022 2021 The Group’s share of: Profit from continuing operations $ (1,258) $ (1,275) $ (3,195) $ (2,706) Total comprehensive income for the period $ (1,258) $ (1,275) $ (3,195) $ (2,706)
		2022 $ (3,195) $ (3,195)	2021 $ (2,706) $ (2,706)

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 venture.

19 -

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 Reclassified as intangible assets Transfer to inventories Effect of foreign currency exchange differences Balance at June 30, 2021 Accumulated depreciation and impairment Balance at January 1, 2021 Disposals Depreciation expenses Impairment losses Transfer to inventories Effect of foreign currency exchange differences Balance at June 30, 2021 Carrying value at June 30, 2021 Cost Balance at January 1, 2022 Additions Disposals Transfer from investment properties Transfer from prepayment for equipment Effect of foreign currency exchange differences Balance at June 30, 2022 Accumulated depreciation and impairment Balance at January 1, 2022 Disposals Depreciation expenses Impairment losses Transfer from investment properties Effect of foreign currency exchange differences Balance at June 30, 2022 Carrying value at June 30, 2022	Freehold Land $ 593,855 28,000 - - - - $ 621,855 $ - - - - - - $ - $ 621,855 $ 621,855 - - - - - $ 621,855 $ - - - - - - $ - $ 621,855	Land Improvements $ 1,599 680 - - - - $ 2,279 $ 900 - 139 - - - $ 1,039 $ 1,240 $ 2,279 270 - - - - $ 2,549 $ 1,209 - 187 - - - $ 1,396 $ 1,153	Buildings Machinery and Equipment Transportation Equipment $ 2,607,379 $ 8,734,385 $ 20,583 120,366 813,212 850 (659 ) (389,163 ) (753 ) - - - - - - (13,855) (67,091) (240) $ 2,713,231 $ 9,091,343 $ 20,460 $ 1,345,469 $ 5,916,127 $ 13,849 (659 ) (270,821 ) (733 ) 69,400 413,125 1,231 - 5,750 - - - - (6,043) (41,513) (164) $ 1,408,167 $ 6,022,668 $ 14,183 $ 1,305,064 $ 3,068,675 $ 6,277 $ 2,728,943 $ 9,699,052 $ 21,149 34,901 620,808 - (297 ) (31,706 ) (1,084 ) 5,942 - - - 164,926 - 21,538 105,159 366 $ 2,791,027 $ 10,558,239 $ 20,431 $ 1,211,106 $ 6,157,842 $ 15,109 (297 ) (30,300 ) (564 ) 76,068 487,129 1,326 - 1,948 - 3,676 - - 9,638 60,014 253 $ 1,300,191 $ 6,676,633 $ 16,124 $ 1,490,836 $ 3,881,606 $ 4,307	Office Equipment Property under Construction $ 362,059 $ 2,440 56,850 3,976 (16,595 ) - - (2,429 ) (57 ) - (3,970) (43) $ 398,287 $ 3,944 $ 237,367 $ - (12,537 ) - 17,441 - - - (29 ) - (2,398) - $ 239,844 $ - $ 158,443 $ 3,944 $ 387,266 $ 13,137 35,026 2,233 (8,609 ) - - - - - 4,676 237 $ 418,359 $ 15,607 $ 244,587 $ - (8,570 ) - 21,777 - - - - - 2,789 - $ 260,583 $ - $ 157,776 $ 15,607	Total $ 12,322,300 1,023,934 (407,150 ) (2,429 ) (57 ) (85,199) $ 12,851,399 $ 7,513,712 (284,750 ) 501,336 5,750 (29 ) (50,118) $ 7,685,901 $ 5,165,498 $ 13,473,681 693,238 (41,696 ) 5,942 164,926 131,976 $ 14,428,067 $ 7,629,853 (39,731 ) 586,487 1,948 3,676 72,694 $ 8,254,927 $ 6,173,140

20 -

The above items of property, plant and equipment are depreciated on a straight-line basis over their 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 is set out in Note 32.

16. LEASE ARRANGEMENTS

a. Right-of-use assets

June 30, 2022 December 31, 2021 June 30, 2021 $ 202,778 $ 201,375 $ 87,129 5,235 6,544 - 935 1,160 1,384 $ 208,948 $ 209,079 $ 88,513 $ - $ 123,059 $ - For the Three Months Ended June 30 For the Six Months Ended June 30 2022 2021 2022 2021 $ 1,173 $ 560 $ 2,331 $ 1,129 655 662 1,309 1,323 112 112 225 224 $ 1,940 $ 1,334 $ 3,865 $ 2,676	June 30, 2022 December 31, 2021 June 30, 2021 $ 202,778 $ 201,375 $ 87,129 5,235 6,544 - 935 1,160 1,384 $ 208,948 $ 209,079 $ 88,513 $ - $ 123,059 $ - For the Three Months Ended June 30 For the Six Months Ended June 30 2022 2021 2022 2021 $ 1,173 $ 560 $ 2,331 $ 1,129 655 662 1,309 1,323 112 112 225 224 $ 1,940 $ 1,334 $ 3,865 $ 2,676	June 30, 2022 December 31, 2021 June 30, 2021 $ 202,778 $ 201,375 $ 87,129 5,235 6,544 - 935 1,160 1,384 $ 208,948 $ 209,079 $ 88,513 $ - $ 123,059 $ - For the Three Months Ended June 30 For the Six Months Ended June 30 2022 2021 2022 2021 $ 1,173 $ 560 $ 2,331 $ 1,129 655 662 1,309 1,323 112 112 225 224 $ 1,940 $ 1,334 $ 3,865 $ 2,676	June 30, 2022 December 31, 2021 June 30, 2021 $ 202,778 $ 201,375 $ 87,129 5,235 6,544 - 935 1,160 1,384 $ 208,948 $ 209,079 $ 88,513 $ - $ 123,059 $ - For the Three Months Ended June 30 For the Six Months Ended June 30 2022 2021 2022 2021 $ 1,173 $ 560 $ 2,331 $ 1,129 655 662 1,309 1,323 112 112 225 224 $ 1,940 $ 1,334 $ 3,865 $ 2,676
	$
	$

2022 $ 1,173 655 112 $ 1,940		2022 $ 2,331 1,309 225 $ 3,865	2021 $ 1,129 1,323 224 $ 2,676

Right-of-use assets pledged as collateral for bank borrowings are set out in Note 32.

21 -

b. Lease liabilities

June 30, 2022 December 31, 2021 Carrying amounts Current $ 3,070 $ 3,051 Non-current 3,145 4,685 $ 6,215 $ 7,736 Range of discount rate for lease liabilities was as follows: June 30, 2022 December 31, 2021 Buildings 0.86%-1.27% 0.86%-1.27% Transportation equipment 0.86% 0.86%	June 30, 2021 $ 448 947 $ 1,395 June 30, 2021 0.86% 0.86%

c. Material lease-in activities and terms

The Group did not enter into significant lease contracts for the six months ended June 30, 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 June 30 2022 2021 $ 54 $ 55 $ (816) $ (833)	For the Three Months Ended June 30 2022 2021 $ 54 $ 55 $ (816) $ (833)		For the Six Months Ended June 30	For the Six Months Ended June 30
		2022 $ 54 $ (816)		2022 $ 109 $ (1,630)	2021 $ 109 $ (1,663)

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
Additions		245,157
Effect of foreign currency exchange differences		(2,739)
Balance at June 30, 2021	$	332,966
Accumulated depreciation and impairment
Balance at January 1, 2021	$	(42,465)
Depreciation expenses		(2,153)
Effect of foreign currency exchange differences		436
Balance at June 30, 2021	$	(44,182)
Carrying amounts at June 30, 2021	$	288,784
Cost
Balance at January 1, 2022	$	544,232
Disposals		(300)
Transfer to property, plant and equipment		(5,942)
Effect of foreign currency exchange differences		9,555
Balance at June 30, 2022	$	547,545
Accumulated depreciation and impairment
Balance at January 1, 2022	$	(49,864)
Depreciation expenses		(9,705)
Disposals		300
Transfer to property, plant and equipment		3,676
Effect of foreign currency exchange differences		(745)
Balance at June 30, 2022	$	(56,338)
Carrying amounts at June 30, 2022	$	491,207

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 June 30, 2022, December 31, 2021 and June 30, 2021 was $1,115,567 thousand, $1,152,787 thousand and $940,409 thousand, respectively. The determination of fair value was not performed by independent qualified professional valuers; however, the 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 were held under freehold interests. The investment properties pledged as collateral for bank borrowing are set out in Note 32.

18. BORROWINGS

a. Short-term borrowings

Secured borrowings (Note 32) Bank loans Unsecured borrowings Bank loans Letters of credit	June 30, 2022 December 31, 2021 $ 132,876 $ 130,461 350,355 432,047 110,730 - 461,085 432,047 $ 593,961 $ 562,508	June 30, 2021 $ -
		1,023,494 -
		1,023,494
		$ 1,023,494

The interest rate on the letters of credit were 1.20%-3.85%, 3.44%-3.85% and 0.65%-3.45% per annum as of June 30, 2022, December 31, 2021 and June 30, 2021, respectively.

b. Short-term bills payable

Bank acceptances	June 30, 2022 December 31, 2021 $ 88,584 $ 86,974	June 30, 2021 $ -

24 -

Outstanding short-term bills payable were as follows:

June 30, 2022

c.	Promissory Institution Nominal Amount Discount Amount Carrying Amount Interest Rate Collateral Carrying Amount of Collateral Bank acceptances Bank of Ningbo RMB 20,000 $ - $ 88,584 3.6% - $ - December 31, 2021 Promissory Institution Nominal Amount Discount Amount Carrying Amount Interest Rate Collateral Carrying Amount of Collateral Bank acceptances Bank of Ningbo RMB 20,000 $ - $ 86,974 3.6% - $ - Long-term borrowings June 30, 2022 December 31, 2021 June 30, 2021 Secured borrowings (Note 32) Bank loans $ - $ - $ 225,362 Less: Current portions - - (225,362) - - - Unsecured borrowings Bank loans 1,942,367 1,955,302 1,583,109 Less: Current portions (481,525) (280,343) (167,892) 1,460,842 1,674,959 1,415,217 Long-term borrowings $ 1,460,842 $ 1,674,959 $ 1,415,217 The borrowings of the Group were as follows: Maturity Date June 30, 2022 December 31, 2021 June 30, 2021 Floating rate borrowings Secured bank borrowing denominated in RMB 2021.09.04 $ - $ - $ 225,362 Unsecured bank borrowing denominated in NT$ 2025.01.03 65,217 78,261 91,304 Unsecured bank borrowing denominated in NT$ 2025.01.03 93,750 112,500 131,250 Unsecured bank borrowing denominated in NT$ 2025.01.03 62,500 75,000 87,500 Unsecured bank borrowing denominated in NT$ 2025.01.03 93,750 112,500 131,250 Unsecured bank borrowing denominated in NT$ 2026.08.17 200,000 200,000 - Unsecured bank borrowing denominated in NT$ 2024.09.15 300,000 300,000 300,000 Unsecured bank borrowing denominated in NT$ 2024.09.15 100,000 100,000 100,000 Unsecured bank borrowing denominated in NT$ 2024.09.15 200,000 200,000 200,000 Unsecured bank borrowing denominated in NT$ 2025.04.01 300,000 300,000 300,000 Unsecured bank borrowing denominated in NT$ 2023.09.16 180,000 180,000 - Unsecured bank borrowing denominated in NT$ 2025.04.15 200,000 200,000 200,000 Unsecured bank borrowing denominated in US$ 2022.02.26 - 41,589 41,805 Unsecured bank borrowing denominated in US$ 2023.08.31 43,849 - - Unsecured bank borrowing denominated in US$ 2023.09.08 43,849 - - Unsecured bank borrowing denominated in US$ 2023.09.24 59,452 55,452 - Less: Current portion (481,525) (280,343) (393,254) $ 1,460,842 $ 1,674,959 $ 1,415,217	Carrying Amount of Collateral $ -
		Carrying Amount of Collateral $ -

25 -

The weighted average effective interest rate of the bank borrowings at June 30, 2022, December 31, 2021 and June 30, 2021 was 0.35%-3.20% per annum, 0.10%-1.20% per annum and 0.10%-6.18% per annum, respectively.

19. BONDS PAYABLE

Unsecured domestic convertible bonds Less: Discount on bonds payable	June 30, 2022 December 31, 2021 $ 1,200,000 $ 1,200,000 (22,058) (27,279) $ 1,177,942 $ 1,172,721	June 30, 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 June 30, 2022

$ 1,194,573
(28,431)

2,040
1,168,182

4,539
1,172,721

5,221
$ 1,177,942

26 -

20. OTHER LIABILITIES

Current Other payables Payables for bonuses to employees and directors Payables for commissions Payables for salaries Payables for bonuses Payables for annual leave Payables for purchases of equipment Payables for dividends Others Deferred revenue Arising from government grants (Note 28) Non-current Deferred revenue Arising from government grants (Note 28)	June 30, 2022 December 31, 2021 $ 396,064 $ 413,264 22,274 24,273 155,911 166,626 288,269 472,609 42,640 43,683 153,229 212,665 2,323,178 - 201,645 146,192 $ 3,583,210 $ 1,479,312 $ 23,292 $ 23,717 $ 60,867 $ 70,772	June 30, 2021 $ 392,797 26,449 152,245 252,841 37,220 115,702 1,177,077 164,051 $ 2,318,382 $ - $ -

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 and the six months ended June 30, 2022 and 2021 were $421 thousand, $438 thousand, $842 thousand and $876 thousand, respectively. Employee benefit expense was calculated on the basis of the actuarial valuations in December 31, 2021 and 2020.

27 -

22. EQUITY

a. Share capital

Ordinary shares

		June 30,	December 31,	December 31,		June 30,
		2022		2021		2021
Number of shares authorized (in thousands)		500,000		500,000		500,000
Shares authorized	$	5,000,000	$	5,000,000	$	5,000,000
Number of shares issued and fully paid (in
thousands)		309,757		309,757		309,757
Shares issued	$	3,097,570	$	3,097,570	$	3,097,570
Fully paid ordinary shares, which have a par value		of $10, carry one vote per share and carry a right t
dividends.
The Company’s 30,000 thousand shares authorized		were reserved for the issuance of			convertible bond
and employee share options.
Capital surplus
		June 30,	December 31,			June 30,
		2022		2021		2021
May be used to offset a deficit, distributed as
cash dividends, or transferred to share
capital*
Issuance of ordinary shares	$	611,776	$	611,776	$	611,776
Conversion of bonds		977,028		977,028		977,028
Overdue options		73,377		73,377		73,377
The difference between consideration
received or paid and the carrying amount of
the subsidiaries’ net assets during actual
disposal or acquisition		331		331		331
May only be used to offset a deficit
Share of changes in capital surplus of
associates or joint venture		8,681		2,712		2,712
Others		3,412		3,129		3,129
May not be used for any purpose
Employee share options		28,431		28,431		-
	$	1,703,036	$	1,696,784	$	1,668,353

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.

b. Capital surplus

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).
28 -

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.

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 approved in the shareholders’ meetings on May 31, 2022 and July 20, 2021 respectively. The appropriations and dividends per share were as follows:

Legal reserve Special reserve Cash dividends	Appropriation of Earnings For the Year Ended December 31 2021 2020 $ 310,870 $ 155,246 (346,761) (177,611) 2,323,178 1,177,077	Dividends Per Share (NT$)
		For the Year Ended December 31
		2021 2020 $ - $ - - - 7.5 3.8

d. Others 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 from associates accounted for using the equity method Balance at June 30		For the Six Months Ended June 30	For the Six Months Ended June 30
		2022 $ (559,579) 129,089 4,714 $ (425,776)	2021 $ (523,275) (82,011) (2,694) $ (607,980)

29 -
2) Unrealized gain (loss) on financial assets at FVTOCI

Balance at January 1 Recognized during the period Unrealized loss - equity instruments Share from associates accounted for using the equity method Other comprehensive income recognized in the period Cumulative unrealized gain/(loss) of equity instruments transferred to retained earnings due to disposal Balance at June 30		For the Six Months Ended June 30	For the Six Months Ended June 30
		2022 $ 1,357,362 (687,373) (32) (687,405) (104,518) $ 565,439	2021 $ 176,513 286,779 - 286,779 - $ 463,292

23. REVENUE

Revenue from contracts with customers Revenue from sale of goods Construction contract revenue Contract Balances Trade receivables (Note 10) Contract liabilities Construction of properties Sale of goods Contract liabilities - current		For the Three Months Ended June 30 2022 2021 $ 3,501,023 $ 3,542,264 12,990 798,862 $ 3,514,013 $ 4,341,126 June 30, 2022 December 31, 2021 $ 3,842,476 $ 4,035,315 $ 11,063 $ 10,814 31,197 15,654 $ 42,260 $ 26,468		For the Six Months Ended June 30	For the Six Months Ended June 30
				2022 $ 6,706,132 24,448 $ 6,730,580 June 30, 2021 $ 3,837,221 $ 117,498 23,470 $ 140,968	2021 $ 6,852,973 798,862 $ 7,651,835 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.

30 -

24. NET PROFIT (LOSS) AND OTHER COMPREHENSIVE INCOME (LOSS) FROM CONTINUING OPERATIONS

Net Profit (Loss) from Continuing Operations

a. Interest income

For the Three Months Ended June 30 2022 2021 $ 2,870 $ 1,828 2,739 2,819 883 427 $ 6,492 $ 5,074 For the Three Months Ended June 30 2022 2021 $ 24,068 $ 12,659 1,500 - 9,683 18,158 $ 35,251 $ 30,817 For the Three Months Ended June 30 2022 2021 $ (1,055) $ 1,248 - - (4,086) 17,475 210,189 (9,022) (1,943) (297) (4,882) (1,072) (5,819) (2,802) $ 192,404 $ 5,530	For the Six Months Ended June 30	For the Six Months Ended June 30
	2022 2021 $ 4,045 $ 5,400 5,171 6,616 1,510 640 $ 10,726 $ 12,656 For the Six Months Ended June 30
	2022 2021 $ 41,272 $ 21,048 1,500 - 19,346 27,727 $ 62,118 $ 48,775 For the Six Months Ended June 30
2022 $ (1,055) - (4,086) 210,189 (1,943) (4,882) (5,819) $ 192,404	2022 $ (761) (249) (4,425) 339,092 (1,948) (9,705) (8,134) $ 313,870	2021 $ 1,221 - 10,369 26,395 (5,750) (2,153) (4,034) $ 26,048

31 -

d. Finance costs

Interest on bank loans Interest on convertible bonds Interest on lease liabilities	For the Three Months Ended June 30 2022 2021 $ 9,380 $ 9,827 2,628 - 19 4 $ 12,027 $ 9,831	For the Three Months Ended June 30 2022 2021 $ 9,380 $ 9,827 2,628 - 19 4 $ 12,027 $ 9,831		For the Six Months Ended June 30	For the Six Months Ended June 30
		2022 $ 9,380 2,628 19 $ 12,027		2022 $ 17,736 5,221 41 $ 22,998	2021 $ 14,864 - 9 $ 14,873

The detail of capitalization of interest:

The amount of capitalisation of interest Interest rate of capitalisation of interest	For the Three Months Ended June 30 2022 2021 $ - $ - - 6.18%	For the Three Months Ended June 30 2022 2021 $ - $ - - 6.18%		For the Six Months Ended June 30	For the Six Months Ended June 30
		2022 $ - -		2022 $ - -	2021 $ 4,416 6.18%

e. Depreciation and amortization

Property, plant and equipment Investment properties Right-of-use assets Intangible assets An analysis of deprecation by function Operating costs Operating expenses Other gains and losses An analysis of amortization by function Operating costs Operating expenses	For the Three Months Ended June 30 2022 2021 $ 301,584 $ 256,364 4,882 1,072 1,940 1,334 5,299 2,500 $ 313,705 $ 261,270 $ 239,170 $ 218,517 64,354 39,181 4,882 1,072 $ 308,406 $ 258,770 $ 49 - 5,250 2,500 $ 5,299 $ 2,500	For the Three Months Ended June 30 2022 2021 $ 301,584 $ 256,364 4,882 1,072 1,940 1,334 5,299 2,500 $ 313,705 $ 261,270 $ 239,170 $ 218,517 64,354 39,181 4,882 1,072 $ 308,406 $ 258,770 $ 49 - 5,250 2,500 $ 5,299 $ 2,500		For the Six Months Ended June 30	For the Six Months Ended June 30
		2022 $ 301,584 4,882 1,940 5,299 $ 313,705 $ 239,170 64,354 4,882 $ 308,406 $ 49 5,250 $ 5,299		2022 $ 586,487 9,705 3,865 10,551 $ 610,608 $ 469,572 120,780 9,705 $ 600,057 49 10,502 $ 10,551	2021 $ 501,336 2,153 2,676 4,591 $ 510,756 $ 424,584 79,428 2,153 $ 506,165 - 4,591 $ 4,591

32 -

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 June 30 2022 2021 $ 27,049 $ 25,323 421 438 27,470 25,761 640,546 618,600 34,712 29,030 10,104 12,834 685,362 660,464 $ 712,832 $ 686,225 $ 435,354 $ 372,783 277,478 313,442 $ 712,832 $ 686,225		For the Six Months Ended June 30	For the Six Months Ended June 30
		2022 $ 27,049 421 27,470 640,546 34,712 10,104 685,362 $ 712,832 $ 435,354 277,478 $ 712,832		2022 $ 56,369 842 57,211 1,313,196 69,307 28,869 1,411,372 $ 1,468,583 $ 835,719 632,864 $ 1,468,583	2021 $ 46,597 876 47,473 1,220,322 59,360 28,015 1,307,697 $ 1,355,170 $ 774,595 580,575 $ 1,355,170

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 and supervisors. The employees’ compensation and remuneration of directors for the three and six months ended June 30, 2022 and 2021, respectively, were as follows:

Accrual rate

Employees’ compensation Remuneration of directors	For the Three Months Ended June 30 2022 2021 9.0% 9.0% 1.5% 1.5%	For the Six Months Ended June 30
		2022 2021 9.0% 9.0% 1.5% 1.5%

Amount

Employees’ compensation Remuneration to directors	For the Three Months Ended June 30 2022 2021 $ 97,960 $ 100,786 $ 16,327 $ 16,798	For the Three Months Ended June 30 2022 2021 $ 97,960 $ 100,786 $ 16,327 $ 16,798		For the Six Months Ended June 30	For the Six Months Ended June 30
		2022 $ 97,960 $ 16,327		2022 $ 176,526 $ 29,421	2021 $ 173,194 $ 28,866

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

33 -

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. Income tax recognized in profit or loss

Major components of tax expense were as follows:

Current tax In respect of the current period Income tax on unappropriated earnings Adjustments for prior periods Deferred tax In respect of the current period Income tax expense recognized in profit or loss	For the Three Months Ended June 30 2022 2021 $ 168,975 $ 168,687 28,817 19,887 (28,503) (30,778) 21,717 (3,745) $ 191,006 $ 154,051	For the Three Months Ended June 30 2022 2021 $ 168,975 $ 168,687 28,817 19,887 (28,503) (30,778) 21,717 (3,745) $ 191,006 $ 154,051		For the Six Months Ended June 30	For the Six Months Ended June 30
		2022 $ 168,975 28,817 (28,503) 21,717 $ 191,006		2022 $ 280,214 28,817 (28,503) 51,547 $ 332,075	2021 $ 278,551 19,887 (30,778) 8,083 $ 275,743

b. Income tax assessments

The income tax returns of 2020 and those before 2018 had been assessed by the tax authorities.

34 -

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 June 30 2022 2021 $ 840,105 $ 920,306 2,628 - $ 842,733 $ 920,306		For the Six Months Ended June 30	For the Six Months Ended June 30
		2022 $ 840,105 2,628 $ 842,733		2022 $ 1,510,442 5,221 $ 1,515,663	2021 $ 1,552,156 - $ 1,552,156

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

Weighted average number of ordinary shares in the computation of basic earnings per share Effect of potentially dilutive 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 June 30 2022 2021 309,757 309,757 8,975 - 1,946 668 320,678 310,425	For the Three Months Ended June 30 2022 2021 309,757 309,757 8,975 - 1,946 668 320,678 310,425		For the Six Months Ended June 30	For the Six Months Ended June 30
		2022 309,757 8,975 1,946 320,678		2022 309,757 8,975 3,261 321,993	2021 309,757 - 2,034 311,791

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. NON-CASH TRANSACTIONS

The Group entered into the following non-cash investing activities which were not reflected in the consolidated statements of cash flows for the six months ended June 30, 2022 and 2021:

The Company declared cash dividends for 2021 and 2020 in May 2022 and July 2021 for $2,323,178 thousand and $1,177,077 thousand, respectively (refer to Note 22). As of June 30, 2022 and 2021, cash dividends are not yet distributed, and accounted for other payables.

35 -

28. 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.

29. 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.

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.

30. FINANCIAL INSTRUMENTS

a. Fair value of financial instruments
1) Fair value of financial instruments 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 measured at fair value on a recurring basis
a) Fair value hierarchy

June 30, 2022

Financial assets at FVTPL Domestic listed shares Beneficiary certificate Structured deposits	Level 1 $ 19,575 54,038 - $ 73,613	Level 2 $ - - 428,538 $ 428,538	Level 3 $ - - - $ -	Total $ 19,575 54,038 428,538 $ 502,151 (Continued)

36 -

Financial assets at FVTOCI Investments in equity instruments Domesticlistedshares Domestic unlisted shares Foreign unlisted shares Financial liabilities at FVTPL Foreign exchange forward contracts and exchange contracts December 31, 2021 Financial assets at FVTPL Redemption options on convertible bonds Foreign exchange forward contracts and exchange contracts Beneficiary certificate Structured deposits Financial assets at FVTOCI Investments in equity instruments Domestic emerging shares Domestic unlisted shares Foreign unlisted shares Financial liabilities at FVTPL Foreign exchange forward contracts and exchange contracts	Level 1 $ 594,174 - - $ 594,174 $ - Level 1 $ - - 191,487 - $ 191,487 $ 1,399,268 - - $ 1,399,268 $ -	Level 2 $ - - - $ - $ 8,341 Level 2 $ 1,080 2,399 - 529,142 $ 532,621 $ - - - $ - $ 1,383	Level 3 $ - 97,740 237,849 $ 335,589 $ - Level 3 $ - - - - $ - $ - 77,466 233,358 $ 310,824 $ -	Total $ 594,174 97,740 237,849 $ 929,763 $ 8,341 (Concluded) Total $ 1,080 2,399 191,487 529,142 $ 724,108 $ 1,399,268 77,466 233,358 $ 1,710,092 $ 1,383

37 -

June 30, 2021

Financial assets at FVTPL Foreign exchange forward contracts and exchange contracts Beneficiary certificate Structured deposits Financial assets at FVTOCI Investments in equity instruments Domestic emerging shares Domestic unlisted shares Foreign unlisted shares Financial liabilities at FVTPL Foreign exchange forward contracts and exchange contracts	Level 1 $ - 191,334 - $ 191,334 $ 400,224 - - $ 400,224 $ -	Level 2 $ 474 - 405,623 $ 406,097 $ - - - $ - $ 844	Level 3 $ - - - $ - $ - 105,649 307,606 $ 413,255 $ -	Total $ 474 191,334 405,623 $ 597,431 $ 400,224 105,649 307,606 $ 813,479 $ 844

There were no transfers between Levels 1 and 2 between January 1 to June 30, 2022 and 2021.

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

June 30, 2022

Financial Assets Balance at January 1, 2022 Purchases Recognized in other comprehensive income Effect of foreign currency exchange differences Balance at June 30, 2022	Financial Assets at FVTPL Equity Instruments $ - - - - $ -	Financial Assets at FVTOCI
		Equity Instruments $ 310,824 20,000 274 4,491 $ 335,589

38 -

June 30, 2021

Financial Assets Balance at January 1, 2021 Purchases Sales Transfer to Level 1 Effect of foreign currency exchange differences Balance at June 30, 2021	Financial Assets at FVTPL Equity Instruments $ 9,255 - (9,255) - - $ -	Financial Assets at FVTOCI
		Equity Instruments $ 525,304 5,359 - (113,445) (3,963) $ 413,255

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 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.

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.

39 -

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

		June 30,	December 31,	December 31,		June 30,
		2022		2021		2021
Financial assets
FVTPL
Mandatorily at FVTPL (1)	$	502,151	$	724,108	$	597,431
Financial assets at amortized cost (2)		9,078,030		8,019,825		7,129,804
Financial assets at FVTOCI
Equity instruments		929,763		1,710,092		813,479
Financial liabilities
FVTPL
Mandatorily at FVTPL (3)		8,341		1,383		844
Amortized cost (4)		9,395,947		7,422,413		7,422,130

1) The balances included the carrying amount of beneficiary certificate, foreign exchange forward contracts and exchange contracts, structured deposits, redemption options on convertible bonds and investment of equity instruments.
2) The balances included 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 contract 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 payables, 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.

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.

40 -

The corporate treasury function reports 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 were managed and measured.

a) Foreign currency risk

Several subsidiaries of the Company have foreign currency sales and purchases, which exposes 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 34).

Sensitivity analysis

The Group is 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 Six Months Ended June 30 2022 2021 $ 40,317 $ 26,350	JPY Impact
		For the Six Months Ended June 30
		2022 2021 $ (3,849) $ (3,706)

i. This was mainly attributable to the exposure on outstanding receivables and payables in USD which were not hedged at the end of the reporting period.
ii. This was mainly attributable to the exposure on outstanding payables in JPY which were not hedged at the end of the reporting period.
41 -

b) Interest rate risk

The Group is exposed to interest rate risk because entities in the Group deposit and borrow 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:

	June 30,	December 31,	December 31,		June 30,
	2022		2021		2021
Fair value interest rate risk
Financial assets	$ 1,896,674	$	786,559	$	663,802
Financial liabilities	2,848,185		2,763,792		2,134,921
Cash flow interest rate risk
Financial assets	3,234,575		3,112,326		2,553,499
Financial liabilities	954,669		1,013,713		697,044

Sensitivity analysis

The sensitivity analysis below was determined based on the Group’s exposure to interest rates for both derivative and non-derivative instruments at the end of the reporting period. For floating rate liabilities, the analysis was prepared assuming the amount of each liability outstanding at the end of the reporting period was outstanding for the whole year. A 25 basis point increase or decrease is 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 25 basis points higher/lower and all other variables were held constant, the Group’s pre-tax profit for the six months ended June 30, 2022 and 2021 would increase by $2,850 thousand and $2,321 thousand, respectively, 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.

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.

42 -

The Group relies on bank borrowings as a significant source of liability. As of June 30, 2022, December 31, 2021 and June 30, 2021, the Group had available unutilized short-term bank loan facilities of $6,739,562 thousand, $6,909,081 thousand and $5,796,964 thousand, respectively.

Liquidity and interest rate risk tables for non-derivative financial liabilities

The following table details the Group’s remaining contractual maturity for its non-derivative financial liabilities with agreed 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 repayment dates.

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

June 30, 2022

	Weighted
	Average
	Effective
	Interest Rate	Less than
	(%)	1 Year	2-3 Years	4-5 Years	5+ Years		Total
Non-derivative financial
liabilities
Trade payables	-	$ 1,922,092 $	- $	- $		-	$ 1,922,092
Other payables	-	3,591,440	-	-		-	3,591,440
Lease liabilities	0.86-1.27	3,070	3,145	-		-	6,215
Variable interest rate
liabilities	0.35-0.91	191,753	704,583	58,333		-	954,669
Fixed interest rate
liabilities	0.68-3.85	972,317	1,875,868	-		-	2,848,185
December 31, 2021
	Weighted
	Average
	Effective
	Interest 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
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

43 -

June 30, 2021

	Weighted
	Average
	Effective
	Interest Rate	Less than
	(%)	1 Year	2-3 Years	4-5 Years	5+ Years		Total
Non-derivative financial
liabilities
Trade payables	-	$ 2,200,540 $	- $	- $		-	$ 2,200,540
Other payables	-	2,321,141	-	-		-	2,321,141
Lease liabilities	0.86	448	909	38		-	1,395
Variable interest rate
liabilities	0.10-3.44	181,827	372,174	143,043		-	697,044
Fixed interest rate
liabilities	0.30-6.18	1,234,921	720,000	180,000		-	2,134,921

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 details the Group’s liquidity analysis of its derivative financial instruments. The table is 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.

June 30, 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 $ (8,506) $ (56) $ 221 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) June 30, 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 $ 1,819 $ (1,851) $ (338)	1-5 Years $ - 1-5 Years $ - 1-5 Years $ -	5+ Years $ -
		5+ Years $ -
		5+ Years $ -

44 -

31. TRANSACTIONS WITH RELATED PARTY

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 below.

Related Party Name and Category

Related Party Name Tai-shing Electronics Components Corp. TSE Technology (Ningbo) Co., Ltd. EcLife Co., Ltd. Ningbo Longying Semiconductor Co., Ltd.	Related Party Category
	Associates Associates Other associates Other associates

a. Sales of goods

Related Party Line Items Categories Sales Associates Other associates	For the Three Months Ended June 30 2022 2021 $ 20,749 $ 33,555 4,318 2,484 $ 25,067 $ 36,039	For the Three Months Ended June 30 2022 2021 $ 20,749 $ 33,555 4,318 2,484 $ 25,067 $ 36,039	For the Six Months Ended June 30	For the Six Months Ended June 30	For the Six Months Ended June 30
		2022 $ 20,749 4,318 $ 25,067		2022 $ 52,419 7,269 $ 59,688	2021 $ 60,650 5,848 $ 66,498

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

b. Purchases of goods

Related Party Categories Others associates	For the Three Months Ended June 30 2022 2021 $ 907 $ 3,446	For the Three Months Ended June 30 2022 2021 $ 907 $ 3,446		For the Six Months Ended June 30	For the Six Months Ended June 30
		2022 $ 907		2022 $ 2,221	2021 $ 7,776

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

c. Operating expenses

Related Party Categories Other associates	For the Three Months Ended June 30 2022 2021 $ 700 $ 593	For the Three Months Ended June 30 2022 2021 $ 700 $ 593		For the Six Months Ended June 30	For the Six Months Ended June 30
		2022 $ 700		2022 $ 1,226	2021 $ 1,088

45 -

d. Commission revenue

Related Party Categories Associates Other associates	For the Three Months Ended June 30 2022 2021 $ 379 $ 611 - 12 $ 379 $ 623	For the Three Months Ended June 30 2022 2021 $ 379 $ 611 - 12 $ 379 $ 623		For the Six Months Ended June 30	For the Six Months Ended June 30
		2022 $ 379 - $ 379		2022 $ 754 - $ 754	2021 $ 1,231 25 $ 1,256

e. Rental revenue

Related Party Location Rent Collection Ningbo Xingmao Electron Technology Co., Ltd. Building P5, 1F., No. 189, Huangshan W. Rd., Beilun Dist., Ningbo City Based on contract, and paid on a monthly basis Ningbo Longying Semiconductor Co., Ltd. Building D4, 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 Based on contract, and paid on a monthly basis		For the Three Mon	ths	EndedJune 30		For the Six Mont	hs	EndedJune 30
		2022 Amount % to Total Account Balance $ 1,150 - 45 - 880 - $ 2,075 -		2021		2022 Amount % to Total Account Balance $ 2,284 - 89 - 1,764 - $ 4,137 -		2021
				Amount % to Total Account Balance $ 740 - 31 - 893 - $ 1,664 -				Amount % to Total Account Balance $ 1,491 - 62 - 1,789 - $ 3,342 -

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	June 30, 2022 December 31, 2021 $ 24,243 $ 27,256 4,599 3,706 (68) (68) $ 28,774 $ 30,894	June 30, 2021 $ 37,310 3,264 (69) $ 40,505

The outstanding trade receivables from related parties are unsecured.

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

Related Party Categories Other associates	June 30, 2022 December 31, 2021 $ 1,014 $ 2,140	June 30, 2021 $ 2,328

The outstanding trade payables from related parties are unsecured.

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

46 -
h. Other receivables from related parties

Related Party Categories Associates Other associates i. Other payables to related parties Related Party Categories Other associates j. Prepayments Related Party Categories Other associates	June 30, 2022 December 31, 2021 $ 276 $ 1,154 9 25 $ 285 $ 1,179 June 30, 2022 December 31, 2021 $ 8,230 $ 3,495 June 30, 2022 December 31, 2021 $ 3,784 $ 4,247	June 30, 2021 $ 768 - $ 768 June 30, 2021 $ 2,759 June 30, 2021 $ 41

The prepayments were accounted for prepaid equipment.

k. Acquisitions of property, plant and equipment

Related Party Categories Others associates	For the Three Months Ended June 30 2022 2021 $ 7,002 $ 1,879	For the Three Months Ended June 30 2022 2021 $ 7,002 $ 1,879		For the Six Months Ended June 30	For the Six Months Ended June 30
		2022 $ 7,002		2022 $ 8,202	2021 $ 2,697

l. Compensation of key management personnel

The remuneration of directors and key executives for the three and the six months ended June 30, 2022 and 2021 were as follows:

Short-term employee benefits Post-employment benefits	For the Three Months Ended June 30 2022 2021 $ 45,280 $ 45,010 956 878 $ 46,236 $ 45,888	For the Three Months Ended June 30 2022 2021 $ 45,280 $ 45,010 956 878 $ 46,236 $ 45,888		For the Six Months Ended June 30	For the Six Months Ended June 30
		2022 $ 45,280 956 $ 46,236		2022 $ 102,124 1,918 $ 104,042	2021 $ 94,909 1,894 $ 96,803

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

47 -

32. ASSETS PLEDGED AS COLLATERAL OR FOR SECURITY

The following assets were provided as collateral for bank borrowings:

Building and equipment, net Investment property Land for development Pledged deposits Right-of-use assets	June 30, 2022 December 31, 2021 $ 270,177 $ 284,332 14,016 16,775 - - 66,287 60,916 10,946 10,931 $ 361,426 $ 372,954	June 30, 2021 $ 280,808 234,942 358,100 61,007 11,026 $ 945,883

33. SIGNIFICANT CONTINGENT LIABILITIES AND UNRECOGNIZED COMMITMENTS

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

a. Unused letters of credit amounted to approximately JPY82,616 thousand as of June 30, 2022.
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 and the total contract amount and paid anount are as follows:

Plant project	Contract Amount RMB 95,863	Paid Amount Unpaid Amount RMB 800 RMB 95,063

c. As of June 30, 2022, the Group unrecognized commitments were as follows:

Acquisition of machinery and equipment Acquisition of machinery and equipment Acquisition of machinery and equipment Acquisition of machinery and equipment Acquisition of machinery and equipment	Contract Amount $ 100,065 RMB 72,755 JPY 1,486,550 US$ 1,069 EUR 1,697	Paid Amount Unpaid Amount $ 48,600 $ 51,465 RMB 19,725 RMB 53,030 JPY 624,604 JPY 861,946 US$ 509 US$ 560 EUR 509 EUR 1,188

48 -

34. 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:

June 30, 2022

		Foreign		Carrying
	Currencies		Exchange Rate	Amount
Financial assets
Monetary items
USD	$	144,220	29.726 (USD:NTD)	$ 4,287,084
USD		6,951	6.7114 (USD:RMB)	206,625
JPY		623,696	0.2182 (JPY:NTD)	136,090
JPY		498,168	0.0493 (JPY:RMB)	108,700
JPY		517,376	0.0073 (JPY:USD)	112,891
Financial liabilities
Monetary items
USD		7,477	29.726 (USD:NTD)	222,261
USD		8,064	6.7114 (USD:RMB)	239,710
JPY		1,737,054	0.2182 (JPY:NTD)	379,025
JPY		1,432,149	0.0493 (JPY:RMB)	312,495
JPY		234,152	0.0073 (JPY:USD)	51,092
December 31, 2021
		Foreign		Carrying
	Currencies		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

49 -

June 30, 2021

		Foreign		Carrying
	Currencies		Exchange Rate	Amount
Financial assets
Monetary items
USD	$	129,835	27.87 (USD:NTD)	$ 3,618,501
USD		5,111	6.4601 (USD:RMB)	142,444
JPY		1,441,825	0.2521 (JPY:NTD)	363,484
JPY		290,880	0.0584 (JPY:RMB)	73,331
Financial liabilities
Monetary items
USD		35,487	27.87 (USD:NTD)	989,023
USD		4,912	6.4601 (USD:RMB)	136,897
JPY		1,868,508	0.2521 (JPY:NTD)	471,051
JPY		1,334,243	0.0584 (JPY:RMB)	336,363

For the three and the six months ended June 30, 2022 and 2021, realized and unrealized net foreign exchange gains (losses) were $210,189 thousand, $(9,022) thousand, $339,092 thousand and $26,395 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.

35. SEPARATELY DISCLOSED ITEMS

a. Information about significant transactions and investees:
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 individual real estate at costs of at least NT$300 million or 20% of the paid-in
- capital. (None)
6) Disposal of real estate at prices of at least NT$300 million or 20% of the paid-in capital. (None)
7) Purchases or sales of goods or to related parties reaching least NT$100 million or 20% of the paid-in capital. (Table 2)
8) Trade receivables from related parties amounting to at least NT$100 million or 20% of the paid-in capital. (Table 3)
9) Trading in derivative instruments. (Note 7)
10) Others: Intercompany relationships and significant intercompany transactions. (Table 7)
50 -
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, ownership percentage, net income of investees, investment income or loss, carrying amount of the investment at the end of the period, repatriations of investment income, 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 party, 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.
- 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)

36. 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 segment

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.
51 -
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 segment Real estate development segment Continuing operations Interest income Other income Other gains and losses Finance costs Share of profit of associates accounted for using the equity method Profit before tax (continuing operations)		Segment Revenue For the Six Months Ended June 30 2022 2021 $ 6,706,132 $ 6,852,973 24,448 798,862 $ 6,730,580 $ 7,651,835		Segment Profit	Segment Profit
				For the Six Months Ended June 30
		2022 $ 6,706,132 24,448 $ 6,730,580		2022 $ 1,472,887 (4,727) 1,468,160 10,726 62,118 313,870 (22,998) 10,641 $ 1,842,517	2021 $ 1,526,892 223,939 1,750,831 12,656 48,775 26,048 (14,873) 4,462 $ 1,827,899

Segment revenue reported above represents revenue generated from external customers. There were no inter-segment sales for the six months ended June 30, 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.

52 -

TABLE 1

TXC CORPORATION AND SUBSIDIARIES

MARKETABLE SECURITIES HELD JUNE 30, 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			June 30, 2022	June 30, 2022			Note
				Shares		Carrying Amount	Percentage of Ownership		Fair Value
TXC Corporation TXC (Ningbo) Corporation TXC (Chongqing) Limited Ningbo Beilun Jingyu Trading Corporation	Stock-unlisted company Godsmith Sensor Inc RFIC Technology Corporation Gallopwave Inc. Win Precision Technology Co., Ltd. Stock-listed company 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 China Minsheng Bank Chongqing Rural Commercial Bank Beneficiary certificate Southern Cash Fund	None ″ TXC Corporation is a director of the Company None ″ ″ A director of one of the TXC Corporation’s director 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	250 550 3,334 5,000 1,365 1,316 500 RMB 12,136 RMB 6,000 RMB 5,573 RMB 5,365 RMB 21,088 RMB 22,173 RMB 5,012 RMB 10,611 RMB 64		$ 4,985 $ 9,596 15,359 10,000 62,785 594,174 $ 691,914 $ 19,575 $ 53,752 $ 54,458 $ 24,684 23,761 93,401 98,211 22,201 46,997 $ 309,255 $ 286	1 3 12 10 3 2 - - 5 - - - - - - -		$ 4,985 $ 9,596 15,359 10,000 62,785 594,174 $ 691,914 $ 19,575 $ 53,752 $ 54,458 $ 24,684 23,761 93,401 98,211 22,201 46,997 $ 309,255 $ 286

(Continued)

53 -

Holding Company Name	Type and Name of Marketable Securities	Relationship with the Holding Company	Financial Statement Account			June 30, 2022	June 30, 2022			Note
				Shares		Carrying Amount	Percentage of Ownership		Fair Value
Ningbo Meishan Free Trade Port Area Ding Kai Investment Management Company Limited TXC Technologies Inc. Chongqing Zhongyang Properties Co., Ltd. ChongQing Dingsen Commercial Management Co., Ltd.	Shares overseas-unlisted company Zhejiang Bright Semiconductor Technology Co., Ltd. Shares overseas-unlisted company Investment QST LLC Structured deposits Chongqing Rural Commercial Bank Structured deposits China Construction Bank Corporation	None None None None	Financial assets at fair value through other comprehensive income - non 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	RMB 7,000 US$ 250 RMB 26,565 RMB 366		$ 180,048 $ 3,343 $ 117,660 $ 1,623	3 - - -		$ 180,048 $ 3,343 $ 117,660 $ 1,623

(Concluded)

54 -

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 SIX MONTHS ENDED JUNE 30, 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 (Ningbo) Corporation TXC (Chongqing) Limited TETC CORP. NINGBO	Subsidiary ″ ″ ″	Purchase Sale Purchase Purchase	$ 1,300,380 237,524 653,987 139,253	38 4 19 4	Payment term of the transactions to related parties were similar to those for third parties ″ ″ ″	Its trading price depends on its function within the Group ″ ″ ″	Payment term of the transactions to related parties were similar to those for third parties ″ ″ ″	$ (707,373) 165,119 (347,004) (81,898)	(40) 5 (20) (5)

55 -

TABLE 3

TXC CORPORATION AND SUBSIDIARIES

RECEIVABLES FROM RELATED PARTIES AMOUNTING TO AT LEAST NT$100 MILLION OR 20% OF THE PAID-IN CAPITAL JUNE 30, 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 Corporation TXC Corporation	Subsidiary Parent entity Parent entity	$ 165,119 707,373 347,004	3.45 3.96 3.91	$ - - -	- - -	$ 57,048 238,003 98,277	$ - - -

56 -

TABLE 4

TXC CORPORATION AND SUBSIDIARIES

NAMES, LOCATIONS, AND RELATED INFORMATION OF INVESTEES ON WHICH THE COMPANY EXERCISES SIGNIFICANT INFLUENCE FOR THE SIX MONTHS ENDED JUNE 30, 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	As of June 30, 2022	As of June 30, 2022	As of June 30, 2022	Net Income (Losses) of the Investee	Share of Profits (Loss)	Note
				June 30, 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 6,127 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	$ 6,702,365 181,695 29,912 22,752 409,756 8,681	$ 519,097 (4,186) 2,415 247 41,498 4,174	$ 498,583 (4,186) 2,415 247 13,836 4,174

57 -

TABLE 5

TXC CORPORATION AND SUBSIDIARIES

INFORMATION ON INVESTMENT IN MAINLAND CHINA FOR THE SIX MONTHS ENDED JUNE 30, 2022 (In Thousands of New Taiwan Dollars or U.S. 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 June 30, 2022	Net Income (Loss) of the Investee	% Ownership of Direct or Indirect Investment	Investment Gain (Loss)	Carrying Amount as of June 30, 2022	Accumulated Repatriation of Investment Income as of June 30, 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 7,090 197,659 160,043 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 - - - - - - -	$ 519,096 103,784 174,397 (10,703) 79 (8,731) - (1,941)	100.00 100.00 100.00 100.00 100.00 36.64 100.00 100.00	$ 519,096 103,784 174,397 (10,703) 79 (3,195) - (1,941)	$ 6,745,410 1,616,431 728,529 806,229 6,082 54,752 180,319 (1,001)	$ 720,617 306,500 - - - - - -

Accumulated Outward Remittance for Investments in mainland China as of June 30, 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.

58 -

TABLE 6

FOR THE SIX MONTHS ENDED JUNE 30, 2022 (In Thousands of New Taiwan Dollars)

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

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	Notes/Accounts Receivable (Payable)	Notes/Accounts 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) Limited TETC CORP. NINGBO	Purchase Sale Purchase Purchase	$ 1,300,380 237,524 653,987 139,253	38 4 19 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 ″ ″ ″	$ (707,373) 165,119 (347,004) (81,898)	(40) 5 (20) (5)	$ 1,069 3,482 2,721 -

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
59 -

TABLE 7

TXC CORPORATION AND SUBSIDIARIES

INTERCOMPANY RELATIONSHIPS AND SIGNIFICANT INTERCOMPANY TRANSACTIONS FOR THE SIX MONTHS ENDED JUNE 30, 2022 (In Thousands of New Taiwan Dollars)

No.	Company Name	Counterparty	Nature of Relationship (Note 1)		Intercompany Transactions	Intercompany Transactions
				Accounts	Amount	Terms (Notes 1 and 2)	Percentage of Consolidated Total Gross Sales or Total Assets (%)
0	TXC Corporation	TXC (Ningbo) Corporation TXC (Chongqing) Limited TETC CORP. NINGBO	a a a	Sales Purchase Trade receivables Trade payables Purchase Trade payables Other receivables Sales Purchase Trade payables	$ 237,524 1,300,380 165,119 707,373 653,987 347,004 42,077 38,163 139,253 81,898	a a a a a a a a a a	4 19 1 3 10 2 - 1 2 -
1	TXC (Ningbo) Corporation	TXC (Chongqing) Limited TETC CORP. NINGBO	c c	Purchase Trade payables Sales Trade receivables	98,526 53,610 82,515 49,245	c c c c	1 - 1 -

Note 1: a. Represent the transactions from parent company to subsidiary.

c. Represent the transactions between subsidiaries.

Note 2: For the six months ended June 30, 2022, the selling price and purchasing price were not significantly different from those of third parties, except those 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.

60 -

AI assistant

TXC — Interim / Quarterly Report 2022

52274_rns_2022-12-16_3791a77c-d06d-4d60-bd14-2463bed80c2c.pdf

TXC CORPORATION AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

TXC CORPORATION AND SUBSIDIARIES

TXC CORPORATION AND SUBSIDIARIES

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

1) Retirement benefits

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

8. FINANCIAL ASSETS AT FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME

9. FINANCIAL ASSETS AT AMORTIZED COST

10. NOTES RECEIVABLE, TRADE RECEIVABLES AND OTHER RECEIVABLES

11. INVENTORIES

12. SUBSIDIARIES

Subsidiaries Included in the Consolidated Financial Statements

13. NON-CURRENT ASSETS CLASSIFIED AS HELD FOR SALE

14. INVESTMENTS ACCOUNTED FOR USING THE EQUITY METHOD

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

June 30, 2022

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

23. REVENUE

24. NET PROFIT (LOSS) AND OTHER COMPREHENSIVE INCOME (LOSS) FROM CONTINUING OPERATIONS

Net Profit (Loss) from Continuing Operations

a. Interest income

d. Finance costs

e. Depreciation and amortization

f. Employee benefits expense

g. Employees’ compensation and remuneration of directors

Accrual rate

Amount

25. INCOME TAXES RELATING TO CONTINUING OPERATIONS

b. Income tax assessments

26. EARNINGS PER SHARE

Net Profit for the Period

27. NON-CASH TRANSACTIONS

28. GOVERNMENT GRANTS

29. CAPITAL MANAGEMENT

30. FINANCIAL INSTRUMENTS

June 30, 2021

June 30, 2022

June 30, 2021

1) Market risk

a) Foreign currency risk

Sensitivity analysis

b) Interest rate risk

Sensitivity analysis

2) Credit risk

3) Liquidity risk

Liquidity and interest rate risk tables for non-derivative financial liabilities

June 30, 2022

Liquidity and interest rate risk tables for derivative financial liabilities

June 30, 2022

31. TRANSACTIONS WITH RELATED PARTY

TXC Interim / Quarterly Report 2022