UNITECH - Annual Report 2021 | FinancialReports.eu

Stock Code:2367

Unitech Printed Circuit Board Corporation and Subsidiaries

Consolidated Financial Statements

With Independent Auditors’ Report For the Years Ended December 31, 2021 and 2020

Address: No. 3, Lane 4, Zhongshan Road, Tucheng District, New Taipei City Telephone: (02)2268-5071

The independent auditors’ report and the accompanying consolidated financial statements are the English translation of the Chinese version prepared and used in the Republic of China. If there is any conflict between, or any difference in the interpretation of the English and Chinese language independent auditors’ report and consolidated financial statements, the Chinese version shall prevail.

Contents 1. Cover Page 2. Table of Contents 3. Representation Letter 4. Independent Auditors’ Report 5. Consolidated Balance Sheets 6. Consolidated Statements of Comprehensive Income 7. Consolidated Statements of Changes in Equity 8. Consolidated Statements of Cash Flows 9. Notes to the Consolidated Financial Statements (1) Company history (2) Approval date and procedures of the consolidated financial statements (3) New standards, amendments and interpretations adopted (4) Summary of significant accounting policies (5) Significant accounting assumptions and judgments, and major sources of estimation uncertainty (6) Explanation of significant accounts (7) Related-party transactions (8) Pledged assets (9) Significant commitments and contingencies (10) Losses Due to Major Disasters (11) Subsequent Events (12) Other (13) Other disclosures (a) Information on significant transactions (b) Information on investees (c) Information on investment in mainland China (d) Major shareholders (14) Segment information	Page
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Contents
1. Cover Page
2. Table of Contents
3. Representation Letter
4. Independent Auditors’ Report
5. Consolidated Balance Sheets
6. Consolidated Statements of Comprehensive Income
7. Consolidated Statements of Changes in Equity
8. Consolidated Statements of Cash Flows
9. Notes to the Consolidated Financial Statements
(1)
Company history
(2)
Approval date and procedures of the consolidated financial statements
(3)
New standards, amendments and interpretations adopted
(4)
Summary of significant accounting policies
(5)
Significant accounting assumptions and judgments, and major sources
of estimation uncertainty
(6)
Explanation of significant accounts
(7)
Related-party transactions
(8)
Pledged assets
(9)
Significant commitments and contingencies
(10) Losses Due to Major Disasters
(11) Subsequent Events
(12) Other
(13) Other disclosures
(a) Information on significant transactions
(b) Information on investees
(c) Information on investment in mainland China
(d) Major shareholders
(14) Segment information

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Representation Letter

The entities that are required to be included in the combined financial statements of Unitech Printed Circuit Board Corporation as of and for the year ended December 31, 2021 under the Criteria Governing the Preparation of Affiliation Reports, Consolidated Business Reports, and Consolidated Financial Statements of Affiliated Enterprises are the same as those included in the consolidated financial statements prepared in conformity with International Financial Reporting Standards No. 10, "Consolidated Financial Statements. " endorsed by the Financial Supervisory Commission of the Republic of China. In addition, the information required to be disclosed in the combined financial statements is included in the consolidated financial statements. Consequently, Unitech Printed Circuit Board Corporation and Subsidiaries do not prepare a separate set of combined financial statements.

Company name: Unitech Printed Circuit Board Corporation Chairman: CHANG, YUAN-MING Date: March 30, 2022

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KPMG

台北市110615信義路5段7號68樓(台北101大樓) 電話 Tel + 886 2 8101 6666 68F., TAIPEI 101 TOWER, No. 7, Sec. 5, 傳真 Fax + 886 2 8101 6667 Xinyi Road, Taipei City 110615, Taiwan (R.O.C.) 網址 Web home.kpmg/tw

Independent Auditors’ Report

To the Board of Directors of Unitech Printed Circuit Board Corporation:

Opinion

We have audited the consolidated financial statements of Unitech Printed Circuit Board Corporation and its subsidiaries (“the Group”), which comprise the consolidated balance sheets as of December 31, 2021 and 2020, the consolidated statements of comprehensive income, changes in equity and cash flows for the years then ended and notes to the consolidated financial statements, including a summary of significant accounting policies.

In our opinion, based on our audits and the report of other auditors (please refer to Other Matter paragraph), the accompanying consolidated financial statements present fairly, in all material respects, the consolidated financial position of the Group as of December 31, 2021 and 2020, and its consolidated financial performance and its consolidated cash flows for the years then ended in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and with the International Financial Reporting Standards (“ IFRSs” ), International Accounting Standards (“ IASs” ), Interpretations developed by the International Financial Reporting Interpretations Committee (“ IFRIC” ) or the former Standing Interpretations Committee (“SIC”) endorsed and issued into effect by the Financial Supervisory Commission of the Republic of China.

Basis for Opinion

We conducted our audit in accordance with the Regulations Governing Auditing and Certification of Financial Statements by Certified Public Accountants and the auditing standards generally accepted in the Republic of China. Our responsibilities under those standards are further described in the Auditors’ Responsibilities for the Audit of the Consolidated Financial Statements section of our report. We are independent of the Group in accordance with the Certified Public Accountants Code of Professional Ethics in Republic of China (“ the Code”), and we have fulfilled our other ethical responsibilities in accordance with the Code. based on our audits and the report of other auditors, we believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis of our opinion.

Key Audit Matters

Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the consolidated financial statements of the current period. These matters were addressed in the context of our audit of the consolidated financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.

1. Estimation of impairment of non-financial assets

Please refer to note 4(m) “ Summary of Significant Accounting Policies- Impairment of non - financial assets” , Note 5 (b) “ Major Sources of Accounting Judgements, Estimations and Assumptions of Uncertainty- Impairment Assessment on non-financial Assets”, and note 6 (i), (j) and (k) “Description of Estimation of impairment of non-financial assets”.

KPMG, a Taiwan partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee.

4-1

Description of key audit matter:

The Group's overall operation was affected by the epdimics, resulting in a risk which the impairment loss of non-financial assets and the recoverable amount of assets may be lower than the carrying value of assets. The valuation of the impairment loss of assets that are based on the cash flow in the future is subject to the management’ s judgement to evaluate the adequacy of the valuation. Therefore, the impairment assessment on non-financial assets is one of the key audit matters for our audit.

How the matter was addressed in our audit:

Our principal audit procedures included：Conducting retrospective testing to compare the historical forecast cash flows with actualities to find out if there is the significant difference. Performing sensitivity analysis for the key assumptions. Consulting with our internal valuation specialist to evaluate the appropriateness of the weighted average cost of capital applied.

2. Valuation of Inventories

Please refer to note 4 (h) “Summary of Accounting Policies- Inventories”, note 5 (a) “Major Sources of Accounting Judgements, Estimations and Assumptions of Uncertainty- Valuation of inventories”, and note 6 (f) “Situation of allocate the impairment of inventories”.

Description of key audit matter:

Inventories is measured by the lower cost and net realizable value accounting. Due to the rapid change of terminal product market, the clients’ intention about placing and changing orders for products could be affected. Furthermore, it also resulted in a risk in which the carrying value of inventories may be higher than its net realizable value and caused the obsolete stock. Therefore, the valuation of inventories is one of the key audit matters for our audit.

How the matter was addressed in our audit:

Our principal audit procedures included: Evaluating the rationality of the policy of making provision to inventories impairment, evaluating the assumption of allowance for inventory valuation of the authorities, and the situation of obsolescence of inventory that has happened in prior periods; confirming whether the Group has undertaken the inventory valuation based on the policy; inspecting the inventory aging report and analyzing the difference in the inventory aging in comparison to prior periods. Understanding and evaluating the management' s judgment on the calculation of the net realizable value; testing the appropriateness of the inventory valuation, evaluating the management's calculations of allowance for inventory loss to ensure their appropriateness and considering the adequacy of the Company's disclosures in allowance for inventory valuation.

Other Matter

Part of the financial statements of subsidiaries that are included in the consolidated financial statements which were audited by other auditors. Our opinion, insofar as it related to the Group's part of subsidiaries are based solely on the report of other auditors. As of Dcember 31, 2021 and 2020, the total assets of subsidiaries which coustitued 5.26% and 4.69% of the Group's consolidated total assets, respectively. For the years ended December 31, 2021 and 2020, the net sales of subsidiaries constitued 0.00% and 0.00% of the Group's consolidated net sales, respectively.

4-2

The Group’s investee company was accounted for by the equity method based on its financial statements which was audited by other auditors. Our opinion, insofar as it related to the Group's investee company is based solely on the report of other auditors. As of December 31, 2021 and 2020, the total assets of investee company which coustitued 4.54% and 4.18% of the Group's consolidated total assets, respectively. For the year ended December 31, 2021 and 2020, the profit and loss of affiliated companies accounted for by using the equity method constitued (92.53)% and 4.12% of the income which the Group recognized before tax, respectively.

We have also audited the parent company only financial statements of Unitech Printed Circuit Board Crop. as of and for the years ended December 31, 2021 and 2020, on which we have issued an unmodified opinion.

Responsibilities of Management and Those Charged with Governance for the Consolidated Financial Statements

Management is responsible for the preparation and fair presentation of the consolidated financial statements in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and with the IFRSs, IASs, IFRC, SIC endorsed and issued into effect by the Financial Supervisory Commission of the Republic of China, and for such internal control as management determines is necessary to enable the preparation of consolidated financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the consolidated financial statements, management is responsible for assessing the Group’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Group or to cease operations, or has no realistic alternative but to do so.

Those charged with governance (including the Audit Committee or supervisors) are responsible for overseeing the Group’s financial reporting process.

Auditors’ Responsibilities for the Audit of the Consolidated Financial Statements

Our objectives are to obtain reasonable assurance about whether the consolidated financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors’ report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with the auditing standards generally accepted in the Republic of China will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these consolidated financial statements.

As part of an audit in accordance with auditing standards generally accepted in the Republic of China, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:

Identify and assess the risks of material misstatement of the consolidated financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Group’s internal control.
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.

4-3

Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Group’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditors’ report to the related disclosures in the consolidated financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditors’ report. However, future events or conditions may cause the Group to cease to continue as a going concern.
Evaluate the overall presentation, structure and content of the consolidated financial statements, including the disclosures, and whether the consolidated financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
Obtain sufficient and appropriate audit evidence regarding the financial information of the entities or business activities within the Group to express an opinion on the consolidated financial statements. We are responsible for the direction, supervision and performance of the group audit. We remain solely responsible for our audit opinion.

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.

From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the consolidated financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditors’ report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.

The engagement partners on the audit resulting in this independent auditors’ report are Chuang Chun Wei and Hsu Ming Fang.

KPMG

Taipei, Taiwan (Republic of China) March 30, 2022

Notes to Readers

The accompanying consolidated financial statements are intended only to present the consolidated statement of financial position, financial performance and its cash flows in accordance with the accounting principles and practices generally accepted in the Republic of China and not those of any other jurisdictions. The standards, procedures and practices to audit such consolidated financial statements are those generally accepted and applied in the Republic of China.

The auditors’ report and the accompanying consolidated financial statements are the English translation of the Chinese version prepared and used in the Republic of China. If there is any conflict between, or any difference in the interpretation of the English and Chinese language auditors’ report and consolidated financial statements, the Chinese version shall prevail.

(English Translation of Consolidated Financial Statements Originally Issued in Chinese)

Unitech Printed Circuit Board Corporation and Subsidiaries

Consolidated Balance Sheets

December 31, 2021 and 2020

(Expressed in Thousands of New Taiwan Dollars)

Assets Current assets: 1100 Cash and cash equivalents (note 6(a)(h)) 1110 Current financial assets at fair value through profit or loss (note 6(b)) 1150 Notes receivable, net (note 6(d)(h)) 1170 Accounts receivable, net (note 6(d)(h)) 1200 Other receivables, net (note 6(e)(g)) 1210 Other receivables-related parties, net (note 7) 1220 Current tax assets 1310 Inventories (note 6(e)(g)) 1410 Prepayments (note 9) 1476 Other financial assets-current (note 8) 1479 Other current assets (note 6(h)) Total current assets Non-current assets: 1517 Financial assets at fair value through other comprehensive income non- current (note 6(c)(h)) 1550 Investments accounted for using equity method, net (note 6(g) and 8) 1600 Property, plant and equipment (note 6(h)(i), 8 and 9) 1755 Right-of-use assets (note 6(j) and 8) 1780 Intangible assets (note 6(k)) 1840 Deferred tax assets (note 6(h)(q)) 1915 Prepayments for business facilities (note 9) 1920 Refundable deposits (note 8) 1990 Other non-current assets (note 6(h)) Total non-current assets Total assets	December 31, 2021 Amount % $ 612,449 3 59,073 - 5,510 - 4,106,720 18 72,792 - 594 - - - 2,378,249 10 85,135 - 4,134 - 11,520 - 7,336,176 31 547,536 3 1,047,217 5 13,015,790 57 513,777 3 112,671 - 320,756 1 21,170 - 53,929 - 93,067 - 15,725,913 69 $ 23,062,089 100	December 31, 2020 Amount % 1,065,212 4 - - 5,922 - 4,002,735 17 428,160 2 571 - 4,373 - 1,957,815 8 132,085 1 52,170 - 14,372 - 7,663,415 32 609,040 3 995,638 4 13,277,793 56 658,291 3 108,442 - 175,451 1 239,085 1 66,920 - 40,222 - 16,170,882 68 23,834,297 100 Liabilities and Equity Current liabilities: 2101 Short-term notes and bills payable (note 6(l)) 2100 Short-term borrowings (note 6(h)(l), and 8) 2170 Accounts payable (note 6(h)) 2200 Other payables (note 6(h)) 2230 Current tax liabilities 2280 Current lease liabilities (note 6(o)) 2322 Current portion of long-term borrowings (note 6(h)(n) and 8) 2399 Other current liabilities (note 6(h) (i)) Total current liabilities Non-Current liabilities: 2540 Long-term borrowings (note 6(h)(m), 7 and 8) 2570 Deferred tax liabilities (note 6(h)(r)) 2580 Non-current lease liabilities (note 6(o)) 2640 Net defined benefit liability, non-current (note 6(h)(p)) Total non-current liabilities Total liabilities Equity (note 6 (r)): 3110 Ordinary share 3200 Capital surplus Retained earnings: 3310 Legal reserve 3320 Special reserve 3350 Unappropriated earnings Other equity: 3410 Exchange differences on translation of foreign financial statements 3420 Unrealised gains (losses) from financial assets measured at fair value through other comprehensive income 3445 Gains (losses) on remeasurements of defined benefit 3491 Other equity, unearned compensation Total other equity Total equity Total liabilities and equity	December 31, 2021		December 31, 2020 Amount % 69,991 - 919,996 4 3,037,371 13 1,444,897 6 - - 99,462 - 1,438,954 6 749,648 3 7,760,319 32 5,605,779 24 176,350 1 407,326 2 212,723 1 6,402,178 28 14,162,497 60 6,194,072 26 2,843,140 12 306,606 1 174,327 1 64,399 - 545,332 2 41,694 - 232,996 1 (182,812) (1) (2,622) - 89,256 - 9,671,800 40 23,834,297 100
			Amount %
			$ - - 1,539,329 7 2,771,734 13 1,126,441 5 61 - 112,144 - 1,109,230 5 29,864 - 6,688,803 30 6,234,031 27 174,534 1 309,785 1 161,693 1 6,880,043 30 13,568,846 60 6,194,072 27 2,833,418 12 306,606 1 - - 386 - 306,992 1 33,030 - 306,303 1 (180,238) (1) (334) - 158,761 - 9,493,243 40 $ 23,062,089 100

See accompanying notes to consolidated financial statements.

(English Translation of Consolidated Financial Statements Originally Issued in Chinese) Unitech Printed Circuit Board Corporation and Subsidiaries

Consolidated Statements of Comprehensive Income

For the years ended December 31, 2021 and 2020

(Expressed in Thousands of New Taiwan Dollars , Except for Earnings Per Common Share)

4000
Operating revenue, net(note 6(t))
5110
Cost of sales (note 6(f)(p))
Gross loss from operations
Operating expenses:
6100
Selling expenses and administrative expenses (note 6(p) and 7)
6300
Research and development expenses
6450
Expected credit loss (gain) (note 6(d))
Total operating expenses
Net operating loss
Non-operating income and expenses (note 6(g)(h)(i)(v) and 7):
7100
Interest income
7010
Other income
7020
Other gains and losses, net
7050
Finance costs, net (note 6(i))
7060
Share of profit (loss) of associates and joint ventures accounted for using equity method, net
7670
Impairment loss (note 6(i))
Total non-operating income and expenses
Profit (loss) from continuing operations before tax
7950
Less: Income tax expenses (note 6(q))
Loss
8300
Other comprehensive income:
8310
Items that may not be reclassified subsequently to profit or loss
8311
Gains (losses) on remeasurements of defined benefit plans
8316
Unrealized gains (losses) from investments in equity instruments measured at fair value through
other comprehensive income
Items that may not be reclassified subsequently to profit or loss
8360
Items that may be reclassified subsequently to profit or loss
8361
Exchange differences (on translation of foreign financial statements)
Items that may be reclassified subsequently to profit or loss
8300
Other comprehensive income (after tax)
Comprehensive income
Profit (loss) attributable to:
Owners of parent
Non-controlling interests
Comprehensive income (loss) attributable to:
Owners of parent
Non-controlling interests
Basic earnings per share (NT dollars, note 6(s))

See accompanying notes to consolidated financial statements.

(English Translation of Consolidated Financial Statements Originally Issued in Chinese) Unitech Printed Circuit Board Corporation and Subsidiaries

Consolidated Statements of Changes in Equity

For the years ended December 31, 2021 and 2020

(Expressed in Thousands of New Taiwan Dollars)

					Equity attributa	Equity attributa	e to owners of	parent	parent	parent			Non- controlling interests	Total equity
Ordinary shares		Capital surplus		R	etained earnings			Total other equity interest				Total equity attributable to owners of parent
							Exchange differences on translation of foreign financial statements	Unrealized gains (losses) from financial assets measured at fair value through other comprehensive income (losses)		Gains (losses) on remeasurements of defined benefit	Unearned employee compensation
			Legal reserve		Special reserve	Unappropriated retained earnings
$ 6,194,072 - - - - - - - - - 6,194,072 - - - - - - - - $ 6,194,072		2,831,974	133,076		157,021	2,180,933	(37,584) - 64,067 64,067 - - - 15,211 - - 41,694 - (9,158) (9,158) - - 494 - - 33,030		53,104 - 182,380 182,380 - - - - - (2,488) 232,996 - 78,100 78,100 - - (1,016) - (3,777) 306,303	(189,847) - 7,499 7,499 - - - (464) - - (182,812) - 2,314 2,314 - - 260 - - (180,238)	(7,543) - - - - - - - 4,921 - (2,622) - - - - - 55 2,233 - (334)	11,315,206 (1,436,452) 253,946 (1,182,506) - - (495,526) 15,464 19,162 - 9,671,800 (242,117) 71,256 (170,861) - 337 2,426 (10,459) - 9,493,243	20,446 992 - 992 - - - (21,438) - - - - - - - - - - - -	11,335,652
	- -	- -	- -		- -									(1,435,460) 253,946
	-	-	-		-									(1,181,514)
	- - - - - -	- - - 717 10,449 -	173,530 - - - - -		- 17,306 - - - -									- - (495,526) (5,974) 19,162 -
	6,194,072	2,843,140	306,606		174,327									9,671,800
	- -	- -	- -		- -									(242,117) 71,256
	-	-	-		-									(170,861)
	- - - - -		- - - - -											- 337 2,426 (10,459) -
	$ 6,194,072		306,606											9,493,243

See accompanying notes to consolidated financial statements.

(English Translation of Consolidated Financial Statements Originally Issued in Chinese) Unitech Printed Circuit Board Corporation and Subsidiaries

Consolidated Statements of Cash Flows

For the years ended December 31, 2021 and 2020 (Expressed in Thousands of New Taiwan Dollars)

Cash flows from operating activities: Profit (loss) before tax Adjustments: Adjustments to reconcile profit (loss): Depreciation expense Amortization expense Expected credit loss (gain) Interest expense Interest revenue Dividend income Share of loss (profit) of associates and joint ventures accounted for using equity method Loss on disposal of property, plan and equipment Gain on disposal of investments accounted for using equity method Net loss (profit) on financial assets or liabilities at fair value through profit or loss Gain from loss of control of subsidiary Impairment loss on non-financial assets Other items Total adjustments to reconcile profit Changes in operating assets and liabilities: Notes receivable Accounts receivable Other receivable Other receivable due from related parties Inventories Prepayments Other financial assets-current Other current assets Notes payable Accounts payable Other payable Other current liabilities Net defined benefit liability Other non-current liabilities Total adjustments	2021 $ 91,398 1,407,408 35,710 12,942 116,147 (1,613) (5,306) (84,570) 6,409 (8,324) (7,549) - 26,194 21,480 1,518,928 412 (116,917) 355,368 (23) (420,434) 46,950 48,036 2,852 - (265,637) (308,983) (674,681) (47,964) - 137,907	2020 (1,583,127) 1,515,835 22,441 (1,758) 126,202 (5,841) (9,826) 65,212 460,231 - (403) 25,137 - 727 2,197,957 952 1,184,580 (120,011) 194 301,547 (12,843) 227 8,042 (148) 13,348 (855,775) 730,329 (72,377) (788,232) 2,587,790

See accompanying notes to consolidated financial statements.

8-1

(English Translation of Consolidated Financial Statements Originally Issued in Chinese) Unitech Printed Circuit Board Corporation and Subsidiaries

Consolidated Statements of Cash Flows

For the years ended December 31, 2021 and 2020

(Expressed in Thousands of New Taiwan Dollars)

Cash inflow generated from operations
Interest received
Dividends received
Interest paid
Income taxes refund paid
Net cash flows from (used in) operating activities
Cash flows from (used in) investing activities:
Proceeds from disposal of financial assets at fair value through other
comprehensive income
Acquisition of financial assets at fair value through profit or loss
Proceeds from disposal of financial assets at fair value through profit or loss
Proceeds from disposal of investments accounted for using equity method
Proceeds from disposal of subsidiaries
Acquisition of property, plant and equipment
Proceeds from disposal of property, plant and equipment
Increase (decrease) in refundable deposits
Acquisition of intangible assets
Decrease in other non-current assets
Net cash flows used in investing activities
Cash flows from (used in) financing activities:
Increase in short-term borrowings
Decrease in short-term borrowings
Increase (decrease) in short-term notes and bills payable
Proceeds from long-term borrowings
Repayments of long-term borrowings
Payment of lease liabilities
Cash dividends paid
Net cash flows from financing activities
Effect of exchange rate changes on cash and cash equivalents
Net decrease in cash and cash equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period

See accompanying notes to consolidated financial statements.

(English Translation of Consolidated Financial Statements Originally Issued in Chinese) Unitech Printed Circuit Board Corporation and Subsidiaries

Notes to the Consolidated Financial Statements

For the years ended December 31, 2021 and 2020

(Expressed in Thousands of New Taiwan Dollars, Unless Otherwise Specified)

(1) Company history

Unitech Printed Circuit Board Corporation (the “Company”) was incorporated on December 31, 1984, with registered address of No. 3, Lane 4, Zhongshan Road, Tucheng District, New Taipei City, Taiwan, as a company limited by shares under the Company Act of the Republic of China (R.O.C.). The major business activities of Unitech Printed Circuit Board Corporation and subsidiaries (the “ Consolidated Company”) are the design, manufacture and sale of PCB.

(2) Approval date and procedures of the consolidated financial statements:

These consolidated financial statements were authorized for issue by the Board of Directors on March 30, 2022.

(3) New standards, amendments and interpretations adopted:

(a) The impact of the International Financial Reporting Standards (“IFRSs”) endorsed by the Financial Supervisory Commission, R.O.C. which have already been adopted.

The Group has initially adopted the following new amendments, which do not have a significant impact on its consolidated financial statements, from January 1, 2021:

●Amendments to IFRS 4 “Extension of the Temporary Exemption from Applying IFRS 9”
●Amendments to IFRS 9, IAS39, IFRS7, IFRS 4 and IFRS 16 “Interest Rate Benchmark Reform— Phase 2”

The Group has initially adopted the following new amendments, which do not have a significant impact on its consolidated financial statements, from April 1, 2021:

●Amendments to IFRS 16 “Covid-19-Related Rent Concessions beyond June 30, 2021”
(b) The impact of IFRS issued by the FSC but not yet effective

The Group assesses that the adoption of the following new amendments, effective for annual period beginning on January 1, 2022, would not have a significant impact on its consolidated financial statements:

－
●Amendments to IAS 16 “Property, Plant and Equipment Proceeds before Intended Use”
－
●Amendments to IAS 37 “Onerous Contracts Cost of Fulfilling a Contract”
●Annual Improvements to IFRS Standards 2018–2020
●Amendments to IFRS 3 “Reference to the Conceptual Framework”

(Continued)

Unitech Printed Circuit Board Corporation and Subsidiaries Notes to the Consolidated Financial Statements

The following new and amended standards, which may be relevant to the Group, have been issued by the International Accounting Standards Board (IASB), but have yet to be endorsed by the FSC:

Standards or
Interpretations
Amendments to IAS 1
“Classification of Liabilities
as Current or Non-current”
Amendments to IAS 1
“Disclosure of Accounting
Policies”
Amendments to IAS 8
“Definition of Accounting
Estimates”

Content of amendment
Effective date per
IASB
The
amendments
aim
to
promote
consistency in applying the requirements
by helping companies determine whether,
in the statement of balance sheet, debt and
other
liabilities
with
an
uncertain
settlement date should be classified as
current (due or potentially due to be settled
within one year) or non-current. The
amendments
include
clarifying
the
classification requirements for debt a
company might settle by converting it into
equity.
January 1, 2023
The key amendments to IAS 1 include:
●requiring companies to disclose their
material accounting policies rather than
their significant accounting policies;
●clarifying
that
accounting
policies
related to immaterial transactions, other
events or conditions are themselves
immaterial and as such need not be
disclosed; and
●clarifying
that
not
all
accounting
policies
that
relate
to
material
transactions, other events or conditions
are themselves material to a company’s
financial statements.
January 1, 2023
The
amendments
introduce
a
new
definition
for
accounting
estimates:
clarifying that they are monetary amounts
in the financial statements that are subject
to measurement uncertainty.
The
amendments
also
clarify
the
relationship between accounting policies
and accounting estimates by specifying that
a company develops an accounting estimate
to achieve the objective set out by an
accounting policy.
January 1, 2023

(Continued)

Unitech Printed Circuit Board Corporation and Subsidiaries Notes to the Consolidated Financial Statements

Standards or Interpretations Amendments to IAS 12 “Deferred Tax related to Assets and Liabilities arising from a Single Transaction”	Content of amendment Effective date per IASB The amendments narrowed the scope of the recognition exemption so that it no longer applies to transactions that, on initial recognition, give rise to equal taxable and deductible temporary differences. January 1, 2023

The Group is evaluating the impact of its initial adoption of the abovementioned standards or interpretations on its consolidated financial position and consolidated financial performance. The results thereof will be disclosed when the Group completes its evaluation.

The Group does not expect the following other new and amended standards, which have yet to be endorsed by the FSC, to have a significant impact on its consolidated financial statements:

●Amendments to IFRS 10 and IAS 28 “Sale or Contribution of Assets Between an Investor and Its Associate or Joint Venture”
●IFRS 17 “ Insurance Contracts” and amendments to IFRS 17 “ Insurance Contracts”

(4) Summary of significant accounting policies:

The significant accounting policies presented in the consolidated financial statements are summarized below. Except for those specifically indicated, the following accounting policies were applied consistently throughout the periods presented in the consolidated financial statements.

(a) Statement of compliance

These consolidated financial statements have been prepared in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers (hereinafter referred to as “the Regulations” ) and the International Financial Reporting Standards, International Accounting Standards, IFRIC Interpretations, and SIC Interpretations endorsed and issued into effect by the Financial Supervisory Commission, R.O.C..

(b) Basis of preparation
(i) Basis of measurement

Except for the following significant accounts, the consolidated financial statements have been prepared on a historical cost basis:

1) Financial instruments at fair value through profit or loss are measured at fair value;
2) Financial assets at fair value through other comprehensive income are measured at fair value;
3) The defined benefit liabilities(assets) are measured at fair value of the plan assets less the present value of the defined benefit obligation, limited as explained in note (4) (q).

(Continued)

Unitech Printed Circuit Board Corporation and Subsidiaries Notes to the Consolidated Financial Statements

(ii) Functional and presentation currency

The functional currency of each Group entity is determined based on the primary economic environment in which the entity operates. The consolidated financial statements are presented in New Taiwan Dollar (NTD), which is the Company’ s functional currency. All financial information presented in NTD has been rounded to the nearest thousand.

(c) Basis of consolidation
(i) Principles of preparation of the consolidated financial statements

The consolidated financial statements comprise the Company and subsidiaries. Subsidiaries are entities controlled by the Group. The Group ‘controls’ an entity when it is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity.

The financial statements of subsidiaries are included in the consolidated financial statements from the date on which control commences until the date on which control ceases.Intragroup balances and transactions, and any unrealized income and expenses arising from Intragroup transactions are eliminated in preparing the consolidated financial statements. The Group attributes the profit or loss and each component of other comprehensive income to the owners of the parent and to the non-controlling interests, even if this results in the non-controlling interests having a deficit balance.

The Group prepares consolidated financial statements using uniform accounting policies for like transactions and other events in similar circumstances. Changes in the Group’s ownership interest in a subsidiary that do not result in a loss of control are accounted for as equity transactions. Any difference between the amount by which the non-controlling interests are adjusted and the fair value of the consideration paid or received will be recognized directly in equity, and the Group will attribute it to the owners of the parent.

When the Group loses control over a subsidiary, it derecognizes the assets (including any goodwill) and liabilities of the subsidiary, and any related non-controlling interests and other components of equity. Any interest retained in the former subsidiary is measured at fair value when control is lost, with the resulting gain or loss being recognized in profit or loss. The Group recognizes as gain or loss in profit or loss the difference between (i) the fair value of the consideration received as well as any investment retained in the former subsidiary at its fair value at the date when control is lost ;and (ii) the assets (including any goodwill), liabilities of the subsidiary as well as any related non-controlling interests at their carrying amounts at the date when control is lost, as gain or loss in profit or loss. When the Group loses control of its subsidiary, it accounts for all amounts previously recognized in other comprehensive income in relation to that subsidiary on the same basis as would be required if it had directly disposed of the related assets or liabilities.

(Continued)

Unitech Printed Circuit Board Corporation and Subsidiaries Notes to the Consolidated Financial Statements

(ii) List of subsidiaries in the consolidated financial statements

Name of investor	Name of subsidiary	Principal activity	Shareholding
			December 31, 2021 December 31, 2020
The Company The Company The Company Unitech BVI Unitech HK Unitech HK Shanghai Unitech Electronics Co., Ltd.	Unitech Electronics International Limited (Unitech BVI) DA-TAI Investment Co., Ltd. Unitech Electronics International (HK) Limited (Unitech HK) Unitech Electronics International (HK) Limited (Unitech HK) Shanghail Unitech Electronics Co., Ltd. Shanghai Unitech Electronics (Nontong) Co., Ltd. Shanghai Unitech Electronics (Nontong) Co., Ltd.	General investing General investing General investing General investing Manufactureing of electronics Manufactureing of electronics Manufactureing of electronics	% 100.00 % 100.00 % 100.00 % 100.00 % 6.10 % 6.10 % 93.90 % 93.90 % 100.00 % 100.00 % 9.23 % 10.00 % 90.77 % 90.00

(iii) Subsidiaries excluded from the consolidated financial statements: None.

(d) Foreign currencies
(i) Foreign currency transactions

Transactions in foreign currencies are translated into the respective functional currencies of Group entities at the exchange rates at the dates of the transactions. At the end of each subsequent reporting period, monetary items denominated in foreign currencies are translated into the functional currencies using the exchange rate at that date. Non-monetary items denominated in foreign currencies that are measured at fair value are translated into the functional currencies using the exchange rate at the date that the fair value was determined. Non-monetary items denominated in foreign currencies that are measured based on historical cost are translated using the exchange rate at the date of the transaction.

Exchange differences are generally recognized in profit or loss, except for those differences relating to the following, which are recognized in other comprehensive income:

1) an investment in equity securities designated as at fair value through other comprehensive income;
2) a financial liability designated as a hedge of the net investment in a foreign operation to the extent that the hedge is effective; or
3) qualifying cash flow hedges to the extent that the hedges are effective.

(Continued)

Unitech Printed Circuit Board Corporation and Subsidiaries Notes to the Consolidated Financial Statements

(ii) Foreign operations

The assets and liabilities of foreign operations, including goodwill and fair value adjustments arising on acquisition, are translated into the presentation currency at the exchange rates at the reporting date. The income and expenses of foreign operations are translated into the presentation currency at the average exchange rate. Exchange differences are recognized in other comprehensive income.

When a foreign operation is disposed of such that control, significant influence, or joint control is lost, the cumulative amount in the translation reserve related to that foreign operation is reclassified to profit or loss as part of the gain or loss on disposal. When the consolidated disposes of only part of its interest in a subsidiary that includes a foreign operation while retaining control, the relevant proportion of the cumulative amount is reattributed to non controlling interests. When the Group disposes of only part of its investment in an associate or joint venture that includes a foreign operation while retaining significant influence or joint control, the relevant proportion of the cumulative amount is reclassified to profit or loss.

When the settlement of a monetary receivable from or payable to a foreign operation is neither planned nor likely to occur in the foreseeable future, Exchange differences arising from such a monetary item that are considered to form part of the net investment in the foreign operation are recognized in other comprehensive income.

(e) Classification of current and non-current assets and liabilities

An asset is classified as current under one of the following criteria, and all other assets are classified as non current.

(i) It is expected to be realized, or intended to be sold or consumed, in the normal operating cycle;
(ii) It is held primarily for the purpose of trading;
(iii) It is expected to be realized within twelve months after the reporting period; or
(iv) The asset is cash or a cash equivalent unless the asset is restricted from being exchanged or used to settle a liability for at least twelve months after the reporting period.

A liability is classified as current under one of the following criteria, and all other liabilities are classified as non current.

(i) It is expected to be settled in the normal operating cycle;
(ii) It is held primarily for the purpose of trading;
(iii) It is due to be settled within twelve months after the reporting period; or
(iv) The Group does not have an unconditional right to defer settlement of the liability for at least twelve months after the reporting period. Terms of a liability that could, at the option of the counterparty, result in its settlement by issuing equity instruments do not affect its classification.

(Continued)

Unitech Printed Circuit Board Corporation and Subsidiaries Notes to the Consolidated Financial Statements

(f) Cash and cash equivalents

Cash comprises cash on hand and demand deposits. Cash equivalents are short term, highly liquid investments that are readily convertible to known amounts of cash and are subject to an insignificant risk of changes in value. Time deposits which meet the above definition and are held for the purpose of meeting short term cash commitments rather than for investment or other purposes should be recognized as cash equivalents.

Bank overdrafts that are repayable on demand and form an integral part of the Group’ s cash management are included as a component of cash and cash equivalents for the purpose of the consolidated statement of cash flows.

(g) Financial Instruments

Trade receivables and debt securities issued are initially recognized when they are originated. All other financial assets and financial liabilities are initially recognized when the Group becomes a party to the contractual provisions of the instrument. A financial asset (unless it is a trade receivable without a significant financing component) or financial liability is initially measured at fair value plus, for an item not at fair value through profit or loss (FVTPL), transaction costs that are directly attributable to its acquisition or issue. A trade receivable without a significant financing component is initially measured at the transaction price.

(i) Financial assets

All regular way purchases or sales of financial assets are recognized and derecognized on a trade date basis.

On initial recognition, a financial asset is classified as measured at: amortized cost; Fair value through other comprehensive income (FVOCI) – debt investment; FVOCI – equity investment; or FVTPL. Financial assets are not reclassified subsequent to their initial recognition unless the Group changes its business model for managing financial assets, in which case all affected financial assets are reclassified on the first day of the first reporting period following the change in the business model.

1) Financial assets measured at amortized cost

A financial asset is measured at amortized cost if it meets both of the following conditions and is not designated as at FVTPL:

it is held within a business model whose objective is to hold assets to collect contractual cash flows; and
its contractual terms give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

These assets are subsequently measured at amortized cost, which is the amount at which the financial asset is measured at initial recognition, plus/minus, the cumulative amortization using the effective interest method, adjusted for any loss allowance. Interest income, foreign exchange gains and losses, as well as impairment, are recognized in profit or loss. Any gain or loss on derecognition is recognized in profit or loss.

(Continued)

Unitech Printed Circuit Board Corporation and Subsidiaries Notes to the Consolidated Financial Statements

2) Fair value through other comprehensive income (FVOCI)

A debt investment is measured at FVOCI if it meets both of the following conditions and is not designated as at FVTPL：

it is held within a business model whose objective is achieved by both collecting contractual cash flows and selling financial assets; and
its contractual terms give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

On initial recognition of an equity investment that is not held for trading, the Group may irrevocably elect to present subsequent changes in the investment’s fair value in other comprehensive income. This election is made on an instrument-by-instrument basis.

Debt investments at FVOCI are subsequently measured at fair value. Interest income calculated using the effective interest method, foreign exchange gains and losses and impairment are recognized in profit or loss. Other net gains and losses are recognized in other comprehensive income. On derecognition, gains and losses accumulated in other comprehensive income are reclassified to profit or loss.

Equity investments at FVOCI are subsequently measured at fair value. Dividends are recognized as income in profit or loss unless the dividend clearly represents a recovery of part of the cost of the investment. Other net gains and losses are recognized in other comprehensive income and are never reclassified to profit or loss.

Dividend income is recognized in profit or loss on the date on which the Group’s right to receive payment is established.

3) Fair value through profit or loss (FVTPL)

All financial assets not classified as amortized cost or FVOCI described as above are measured at FVTPL, including derivative financial assets. On initial recognition, the Group may irrevocably designate a financial asset, which meets the requirements to be measured at amortized cost or at FVOCI, as at FVTPL if doing so eliminates or significantly reduces an accounting mismatch that would otherwise arise.

These assets are subsequently measured at fair value. Net gains and losses, including any interest or dividend income, are recognized in profit or loss.

4) Business model assessment

Financial assets that are held for trading or are managed and whose performance is evaluated on a fair value basis are measured at FVTPL.

5) Impairment of financial assets

The Group recognizes loss allowances for expected credit losses (ECL) on financial assets measured at amortized cost (including cash and cash equivalents, amortized costs, notes and trade receivables, other receivables), debt investments measured at FVOCI and contract assets.

(Continued)

Unitech Printed Circuit Board Corporation and Subsidiaries Notes to the Consolidated Financial Statements

The Group measures loss allowances at an amount equal to lifetime ECL, except for the following which are measured as 12-month ECL:

debt securities that are determined to have low credit risk at the reporting date； and
other debt securities and bank balances for which credit risk (i.e. the risk of default occurring over the expected life of the financial instrument) has not increased significantly since initial recognition.

Loss allowance for trade receivables and contract assets are always measured at an amount equal to lifetime ECL.

When determining whether the credit risk of a financial asset has increased significantly since initial recognition and when estimating ECL, the Group considers reasonable and supportable information that is relevant and available without undue cost or effort. This includes both quantitative and qualitative information and analysis based on the Group’s historical experience and informed credit assessment as well as forward-looking information.

The Group considers a debt security to have low credit risk when its credit risk rating is equivalent to the globally understood definition of ‘investment grade which is considered to be BBB- or higher per Standard & Poor’s, Baa3 or higher per Moody’s or twA or higher per Taiwan Ratings’.

The Group assumes that the credit risk on a financial asset has increased significantly if it is more than 90 days past due.

The Group considers a financial asset to be in default when the financial asset is more than one year past due or the debtor is unlikely to pay its credit obligations to the Group in full.

ECL are a probability-weighted estimate of credit losses. Credit losses are measured as the present value of all cash shortfalls (i.e the difference between the cash flows due to theGroup in accordance with the contract and the cash flows that the Group expects to receive). ECL are discounted at the effective interest rate of the financial asset.

At each reporting date, the Group assesses whether financial assets carried at amortized cost and debt securities at FVOCI are credit-impaired. A financial asset is ‘ creditimpaired’ when one or more events that have a detrimental impact on the estimated future cash flows of the financial asset have occurred. Evidence that a financial asset is credit-impaired includes the following observable data:

significant financial difficulty of the borrower or issuer;
a breach of contract such as a default or being more than 90 days past due;
the lender of the borrower, for economic or contractual reasons relating to the borrower's financial difficulty, having granted to the borrower a concession that the lender would not otherwise consider;

(Continued)

Unitech Printed Circuit Board Corporation and Subsidiaries Notes to the Consolidated Financial Statements

it is probable that the borrower will enter bankruptcy or other financial reorganization；or
the disappearance of an active market for a security because of financial difficulties.

Loss allowances for financial assets measured at amortized cost are deducted from the gross carrying amount of the assets. For debt securities at FVOCI, the loss allowance is charge to profit or loss and is recognized in other comprehensive income instead of reducing the carrying amount of the asset.

The gross carrying amount of a financial asset is written off when the Group has no reasonable expectations of recovering a financial asset in its entirety or a portion thereof. For corporate customers, the Group individually makes an assessment with respect to the timing and amount of write-off based on whether there is a reasonable expectation of recovery. The Group expects no significant recovery from the amount written off. However, financial assets that are written off could still be subject to enforcement activities in order to comply with the Group’s procedures for recovery of amounts due.

6) Derecognition of financial assets

The Group derecognizes a financial asset when the contractual rights to the cash flows from the financial asset expire, or it transfers the rights to receive the contractual cash flows in a transaction in which substantially all of the risks and rewards of ownership of the financial asset are transferred or in which the Group neither transfers nor retains substantially all of the risks and rewards of ownership and it does not retain control of the financial asset.

The Group enters into transactions whereby it transfers assets recognized in its statement of balance sheet, but retains either all or substantially all of the risks and rewards of the transferred assets. In these cases, the transferred assets are not derecognized.

(ii) Financial liabilities and equity instruments
1) Classification of debt or equity

Debt and equity instruments issued by the Company are classified as financial liabilities or equity in accordance with the substance of the contractual arrangements and the definitions of a financial liability and an equity instrument.

2) Equity instrument

An equity instrument is any contract that evidences residual interest in the assets of an entity after deducting all of its liabilities. Equity instruments issued are recognized as the amount of consideration received, less the direct cost of issuing.

(Continued)

Unitech Printed Circuit Board Corporation and Subsidiaries Notes to the Consolidated Financial Statements

3) Treasury shares

When shares recognized as equity are repurchased, the amount of the consideration paid, which includes directly attributable costs, is recognized as a deduction from equity. Repurchased shares are classified as treasury shares. When treasury shares are sold or reissued subsequently, the amount received is recognized as an increase in equity, and the resulting surplus or deficit on the transaction is recognized in capital surplus or retained earnings (if the capital surplus is not sufficient to be written down).

4) Financial liabilities

Financial liabilities are classified as measured at amortized cost or FVTPL. A financial liability is classified as at FVTPL if it is classified as held-for-trading, it is a derivative or it is designated as such on initial recognition. Financial liabilities at FVTPL are measured at fair value and net gains and losses, including any interest expense, are recognized in profit or loss.

Other financial liabilities are subsequently measured at amortized cost using the effective interest method. Interest expense and foreign exchange gains and losses are recognized in profit or loss. Any gain or loss on derecognition is also recognized in profit or loss.

5) Derecognition of financial liabilities

The Group derecognizes a financial liability when its contractual obligations are discharged or cancelled, or expire. The Group also derecognizes a financial liability when its terms are modified and the cash flows of the modified liability are substantially different, in which case a new financial liability based on the modified terms is recognized at fair value.

On derecognition of a financial liability, the difference between the carrying amount of a financial liability extinguished and the consideration paid (including any non-cash assets transferred or liabilities assumed) is recognized in profit or loss.

6) Offsetting of financial assets and liabilities

Financial assets and financial liabilities are offset and the net amount presented in the statement of balance sheet when, and only when, the Group currently has a legally enforceable right to set off the amounts and it intends either to settle them on a net basis or to realize the asset and settle the liability simultaneously.

(h) Inventories

Inventories are measured at the lower of cost and net realizable value. The cost of inventories is calculated using the weighted average method, and includes expenditure incurred in acquiring the inventories, production or conversion costs, and other costs incurred in bringing them to their present location and condition. In the case of manufactured inventories and work in progress, cost includes an appropriate share of production overheads based on normal operating capacity.

Net realizable value is the estimated selling price in the ordinary course of business, less the estimated costs of completion and selling expenses.

(Continued)

Unitech Printed Circuit Board Corporation and Subsidiaries Notes to the Consolidated Financial Statements

(i) Investment in associates

Associates are those entities in which the Group has significant influence, but not control or joint control, over their financial and operating policies.

Investments in associates are accounted for using the equity method and are recognized initially at cost. The cost of the investment includes transaction costs. The carrying amount of the investment in associates includes goodwill arising from the acquisition less any accumulated impairment losses.

The consolidated financial statements include the Group’ s share of the profit or loss and other comprehensive income of those associates, after adjustments to align their accounting policies with those of the Group, from the date on which significant influence commences until the date on which significant influence ceases. The Group recognizes any changes of its proportionate share in the investee within capital surplus, when an associate’s equity changes due to reasons other than profit and loss or comprehensive income, which did not result in changes in actual proportionate share.

Gains and losses resulting from transactions between the Group and an associate are recognized only to the extent of unrelated Group’s interests in the associate.

When the Group’s share of losses of an associate equals or exceeds its interests in an associate, it discontinues recognizing its share of further losses. After the recognized interest is reduced to zero, additional losses are provided for, and a liability is recognized, only to the extent that the Group has incurred legal or constructive obligations or made payments on behalf of the associate.

(j) Property, plant and equipment

(i) Recognition and measurement

Items of property, plant and equipment are measured at cost, which includes capitalized borrowing costs, less accumulated depreciation and any accumulated impairment losses.

If significant parts of an item of property, plant and equipment have different useful lives, they are accounted for as separate items (major components) of property, plant and equipment.

Any gain or loss on disposal of an item of property, plant and equipment is recognized in profit or loss.

(ii) Subsequent expenditure

Subsequent expenditure is capitalized only if it is probable that the future economic benefits associated with the expenditure will flow to the Group.

(iii) Depreciation

Depreciation is calculated on the cost of an asset less its residual value and is recognized in profit or loss on a straight line basis over the estimated useful lives of each component of an item of property, plant and equipment.

Land is not depreciated.

(Continued)

Unitech Printed Circuit Board Corporation and Subsidiaries Notes to the Consolidated Financial Statements

The estimated useful lives of property, plant and equipment for current and comparative periods are as follows:

1)	Buildings and constructions	3~55 years
2)	Machinery equipment	3~12 years
3)	Office equipment	3~5 years
4)	Other equipment	3-5 years

Depreciation methods, useful lives and residual values are reviewed at each reporting date and adjusted if appropriate.

(k) Leases

At inception of a contract, the Group assesses whether a contract is, or contains, a lease. A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration.

(i) As a lessee

The Group recognizes a right-of-use asset and a lease liability at the lease commencement date. The right-of-use asset is initially measured at cost, which comprises the initial amount of the lease liability adjusted for any lease payments made at or before the commencement date, plus any initial direct costs incurred and an estimate of costs to dismantle and remove the underlying asset or to restore the underlying asset or the site on which it is located, less any lease incentives received.

The right-of-use asset is subsequently depreciated using the straight-line method from the commencement date to the earlier of the end of the useful life of the right-of-use asset or the end of the lease term. In addition, the right-of-use asset is periodically reduced by impairment losses, if any, and adjusted for certain remeasurements of the lease liability.

The lease liability is initially measured at the present value of the lease payments that are not paid at the commencement date, discounted using the interest rate implicit in the lease or, if that rate cannot be reliably determined, the Group’s incremental borrowing rate. Generally, the Group uses its incremental borrowing rate as the discount rate.

Lease payments included in the measurement of the lease liability comprise the following:

1) fixed payments, including in-substance fixed payments;
2) variable lease payments that depend on an index or a rate, initially measured using the index or rate as at the commencement date;
3) amounts expected to be payable under a residual value guarantee; and
4) payments for purchase or termination options that are reasonably certain to be exercised.

(Continued)

Unitech Printed Circuit Board Corporation and Subsidiaries Notes to the Consolidated Financial Statements

The lease liability is measured at amortized cost using the effective interest method. It is remeasured when:

1) there is a change in future lease payments arising from the change in an index or rate; or
2) there is a change in the Group’s estimate of the amount expected to be payable under a residual value guarantee; or
3) there is a change in the lease term resulting from a change of its assessment on whether it will exercise an option to purchase the underlying asset, or
4) there is a change of its assessment on whether it will exercise a extension or termination option; or
5) there is any lease modification

When the lease liability is remeasured, other than lease modifications, a corresponding adjustment is made to the carrying amount of the right-of-use asset, or in profit and loss if the carrying amount of the right-of-use asset has been reduced to zero.

When the lease liability is remeasured to reflect the partial or full termination of the lease for lease modifications that decrease the scope of the lease, the Group accounts for the remeasurement of the lease liability by decreasing the carrying amount of the right-of-use asset to reflect the partial or full termination of the lease, and recognize in profit or loss any gain or loss relating to the partial or full termination of the lease.

The Group presents right-of-use assets that do not meet the definition of investment and lease liabilities as a separate line item respectively in the statement of financial position.

The Group has elected not to recognize right-of-use assets and lease liabilities for short-term leases of machinery that have a lease term of 12 months or less and leases of low-value assets, including IT equipment. The Group recognizes the lease payments associated with these leases as an expense on a straight-line basis over the lease term.

From January 1, 2021, when the basis for determining future lease payments changes as required by interest rate benchmark reform, the Group will remeasure the lease liability by discounting the revised lease payments using the revised discount rate that reflects the change to an alternative benchmark interest rate.

(ii) As a lessor

When the Group acts as a lessor, it determines at lease commencement whether each lease is a finance lease or an operating lease. To classify each lease, the Group makes an overall assessment of whether the lease transfers to the lessee substantially all of the risks and rewards of ownership incidental to ownership of the underlying asset. If this is the case, then the lease is a finance lease; if not, then the lease is an operating lease. As part of this assessment, the Group considers certain indicators such as whether the lease is for the major part of the economic life of the asset.

(Continued)

Unitech Printed Circuit Board Corporation and Subsidiaries Notes to the Consolidated Financial Statements

When the Group is an intermediate lessor, it accounts for its interests in the head lease and the sub-lease separately. It assesses the lease classification of a sub-lease with reference to the right-of-use asset arising from the head lease. If a head lease is a short-term lease to which the Group applies the exemption described above, then it classifies the sub-lease as an operating lease.

If an arrangement contains lease and non-lease components, the Group applies IFRS15 to allocate the consideration in the contract.

The Group recognizes a finance lease receivable at an amount equal to its net investment in the lease. Initial direct costs, such as lessors to negotiate and arrange a lease, are included in the measurement of the net investment. The interest income is recognized over the lease term based on a pattern reflecting a constant periodic rate of return on the net investment in the lease. The Group recognizes lease payments received under operating leases as income on a straight-line basis over the lease term as part of ‘other income’.

(l) Intangible assets

(i) Recognition and measurement

Expenditure on research activities is recognized in profit or loss as incurred.

Development expenditure is capitalized only if the expenditure can be measured reliably, the product or process is technically and commercially feasible, future economic benefits are probable and the Group intends to, and has sufficient resources to, complete development and to use or sell the asset. Otherwise, it is recognized in profit or loss as incurred. Subsequent to initial recognition, development expenditure is measured at cost, less accumulated amortization and any accumulated impairment losses.

Other intangible assets that are acquired by the Group and have finite useful lives are measured at cost less accumulated amortization and any accumulated impairment losses.

(ii) Subsequent expenditure

Subsequent expenditure is capitalized only when it increases the future economic benefits embodied in the specific asset to which it relates. All other expenditure, including expenditure on internally generated goodwill and brands, is recognized in profit or loss as incurred.

(iii) Amortization

Amortization is calculated over the cost of the asset, less its residual value, and is recognized in profit or loss on a straight-line basis over the estimated useful lives of intangible assets, other than goodwill, from the date that they are available for use.

The estimated useful lives for current and comparative periods are as follows:

1) Computer software 5~10 years

Amortization methods, useful lives and residual values are reviewed at each reporting date and adjusted if appropriate.

(Continued)

Unitech Printed Circuit Board Corporation and Subsidiaries Notes to the Consolidated Financial Statements

(m) Impairment of non-financial assets

At each reporting date, the Group reviews the carrying amounts of its non-financial assets (other than inventories, contract assets, and deferred tax assets) to determine whether there is any indication of impairment. If any such indication exists, then the asset’ s recoverable amount is estimated. Goodwill is tested annually for impairment.

For impairment testing, assets are grouped together into the smallest group of assets that generates cash inflows from continuing use that are largely independent of the cash inflows of other assets or cash-generating units (CGUs). Goodwill arising from a business combination is allocated to CGUs or groups of CGUs that are expected to benefit from the synergies of the combination.

The recoverable amount of an asset or CGU is the greater of its value in use and its fair value less costs to sell. Value in use is based on the estimated future cash flows, discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset or CGU.

An impairment loss is recognized if the carrying amount of an asset or CGU exceeds its recoverable amount.

Impairment losses are recognized in profit or loss. They are allocated first to reduce the carrying amount of any goodwill allocated to the CGU, and then to reduce the carrying amounts of the other assets in the CGU on a pro rata basis.

An impairment loss in respect of goodwill is not reversed. For other assets, an impairment loss is reversed only to the extent that the asset’s carrying amount does not exceed the carrying amount that would have been determined, net of depreciation or amortization, if no impairment loss had been recognized.

(n) Revenue recognition

Revenue from contracts with customers

Revenue is measured based on the consideration to which the Group expects to be entitled in exchange for transferring goods or services to a customer. The Group recognizes revenue when it satisfies a performance obligation by transferring control of a good or a service to a customer. The accounting policies for the Group’s main types of revenue are explained below.

Sale of goods

The Group design, manufacture and sale PCB. The Group recognizes revenue when control of the products has transferred, being when the products are delivered to the customer, the customer has full discretion over the channel and price to sell the products, and there is no unfulfilled obligation that could affect the customer’ s acceptance of the products. Delivery occurs when the products have been shipped to the specific location, the risks of obsolescence and loss have been transferred to the customer, and either the customer has accepted the products in accordance with the sales contract, the acceptance provisions have lapsed, or the Group has objective evidence that all criteria for acceptance have been satisfied.

A receivable is recognized when the goods are delivered as this is the point in time that the Group has a right to an amount of consideration that is unconditional.

(Continued)

Unitech Printed Circuit Board Corporation and Subsidiaries Notes to the Consolidated Financial Statements

Financing components

The Group does not expect to have any contracts where the period between the transfer of the promised goods or services to the customer and payment by the customer exceeds one year. As a consequence, the group does not adjust any of the transaction prices for the time value of money.

(o) Contract costs
(i) Incremental costs of obtaining a contract

The Group recognizes as an asset the incremental costs of obtaining a contract with a customer if the Group expects to recover those costs. The incremental costs of obtaining a contract are those costs that the Group incurs to obtain a contract with a customer that it would not have incurred if the contract had not been obtained. Costs to obtain a contract that would have been incurred regardless of whether the contract was obtained shall be recognized as an expense when incurred, unless those costs are explicitly chargeable to the customer regardless of whether the contract is obtained.

The Group applies the practical expedient to recognize the incremental costs of obtaining a contract as an expense when incurred if the amortization period of the asset that the entity otherwise would have recognized is one year or less.

(ii) Costs to fulfil a contract

If the costs incurred in fulfilling a contract with a customer are not within the scope of another Standard (for example, IAS 2 Inventories, IAS 16 Property, Plant and Equipment or IAS 38 Intangible Assets), the Group recognizes an asset from the costs incurred to fulfil a contract only if those costs meet all of the following criteria:

1) the costs relate directly to a contract or to an anticipated contract that the Group can specifically identify;
2) the costs generate or enhance resources of the Group that will be used in satisfying (or in continuing to satisfy) performance obligations in the future; and
3) the costs are expected to be recovered.

General and administrative costs, costs of wasted materials, labor or other resources to fulfil the contract that were not reflected in the price of the contract, costs that relate to satisfied performance obligations (or partially satisfied performance obligations), and costs for which the Group cannot distinguish whether the costs relate to unsatisfied performance obligations or to satisfied performance obligations(or partially satisfied performance obligations), the Group recognizes these costs as expenses when incurred.

(Continued)

Unitech Printed Circuit Board Corporation and Subsidiaries Notes to the Consolidated Financial Statements

(p) Government grants and government assistance

The Group recognizes an unconditional government grant related to a salary and operations in profit or loss as other income when the grant becomes receivable. Other government grants related to assets are initially recognized as deferred income at fair value if there is reasonable assurance that they will be received and the Group will comply with the conditions associated with the grant; they are then recognized in profit or loss as other income on a systematic basis over the useful life of the asset. Grants that compensate the Group for expenses or losses incurred are recognized in profit or loss on a systematic basis in the periods in which the expenses or losses are recognized.

(q) Employee benefits

(i) Defined contribution plans

Obligations for contributions to defined contribution plans are expensed as the related service is provided.

(ii) Defined benefit plans

The Group’s net obligation in respect of defined benefit plans is calculated separately for each the plan by estimating the amount of future benefit that employees have earned in the current and prior periods, discounting that amount and deducting the fair value of any plan assets.

The calculation of defined benefit obligations is performed annually by a qualified actuary using the projected unit credit method. When the calculation results in a potential asset for the Group, the recognized asset is limited to the present value of economic benefits available in the form of any future refunds from the plan or reductions in future contributions to the plan. To calculate the present value of economic benefits, consideration is given to any applicable minimum funding requirements.

Remeasurements of the net defined benefit liability, which comprise actuarial gains and losses, the return on plan assets (excluding interest) and the effect of the asset ceiling (if any, excluding interest), are recognized immediately in other comprehensive income, and accumulated in retained earnings within equity. The Group determines the net interest expense (income) on the net defined benefit liability (asset) for the period by applying the discount rate used to measure the defined benefit obligation at the beginning of the annual period to the then-net defined benefit liability (asset). Net interest expense and other expenses related to defined benefit plans are recognized in profit or loss.

When the benefits of a plan are changed or when a plan is curtailed, the resulting change in benefit that relates to past service or the gain or loss on curtailment is recognized immediately in profit or loss. The Group recognizes gains and losses on the settlement of a defined benefit plan when the settlement occurs.

(iii) Short-term employee benefits

Short-term employee benefits are expensed as the related service is provided. A liability is recognized for the amount expected to be paid if the Group has a present legal or constructive obligation to pay this amount as a result of past service provided by the employee and the obligation can be estimated reliably.

(Continued)

Unitech Printed Circuit Board Corporation and Subsidiaries Notes to the Consolidated Financial Statements

(r) Income taxes

Income taxes comprise current taxes and deferred taxes. Except for expenses related to business combinations or recognized directly in equity or other comprehensive income, all current and deferred taxes are recognized in profit or loss.

Current taxes comprise the expected tax payables or receivables on the taxable profits (losses) for the year and any adjustment to the tax payable or receivable in respect of previous years. The amount of current tax payables or receivables are the best estimate of the tax amount expected to be paid or received that reflects uncertainty related to income taxes, if any. It is measured using tax rates enacted or substantively enacted at the reporting date.

Deferred taxes arise due to temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and their respective tax bases. Deferred taxes are recognized except for the following:

(i) Temporary differences on the initial recognition of assets and liabilities in a transaction that is not a business combination and that affects neither accounting nor taxable profits (losses) at the time of the transaction;
(ii) Temporary differences related to investments in subsidiaries, associates and joint arrangements to the extent that the Group is able to control the timing of the reversal of the temporary differences and it is probable that they will not reverse in the foreseeable future; and

(iii) Taxable temporary differences arising on the initial recognition of goodwill.

Deferred tax assets are recognized for the carry forward of unused tax losses, unused tax credits, and deductible temporary differences to the extent that it is probable that future taxable profits will be available against which they can be utilized. Deferred tax assets are reviewed at each reporting date and are reduced to the extent that it is no longer probable that the related tax benefits will be realized.

Deferred taxes are measured at tax rates that are expected to be applied to temporary differences when they reverse, using tax rates enacted or substantively enacted at the reporting date, and reflect uncertainty related to income taxes, if any.

Deferred tax assets and liabilities are offset if the following criteria are met:

(i) the Group has a legally enforceable right to set off current tax assets against current tax liabilities; and
(ii) the deferred tax assets and the deferred tax liabilities relate to income taxes levied by the same taxation authority on either:
1) the same taxable entity; or
2) different taxable entitie which intend to settle current tax assets and liabilities on a net basis, or to realize the assets and liabilities simultaneously, in each future period in which significant amounts of deferred tax liabilities or assets are expected to be settled or recovered.

(Continued)

Unitech Printed Circuit Board Corporation and Subsidiaries Notes to the Consolidated Financial Statements

(s) Earnings per share

The Group discloses the Company’s basic and diluted earnings per share attributable to ordinary shareholders of the Company. Basic earnings per share is calculated as the profit attributable to ordinary shareholders of the Company divided by the weighted average number of ordinary shares outstanding. Diluted earnings per share is calculated as the profit attributable to ordinary shareholders of the Company divided by the weighted average number of ordinary shares outstanding after adjustment for the effects of all potentially dilutive ordinary shares, such as employee compensation.

(t) Operating segments

An operating segment is a component of the Group that engages in business activities from which it may earn revenues and incur expenses (including revenues and expenses relating to transactions with other components of the Group). Operating results of the operating segment are regularly reviewed by the Group’s chief operating decision maker to make decisions about resources to be allocated to the segment and to assess its performance. Each operating segment consists of standalone financial information.

(5) Significant accounting assumptions and judgments, and major sources of estimation uncertainty:

The preparation of the consolidated financial statements in conformity with the Regulations and the IFRSs endorsed by the FSC requires management to make judgments, estimates, and assumptions that affect the application of the accounting policies and the reported amount of assets, liabilities, income, and expenses. Actual results may differ from these estimates.

The management continues to monitor the accounting estimates and assumptions. The management recognizes any changes in accounting estimates during the period and the impact of those changes in accounting estimates in the following period.

Information about judgments made in applying accounting policies that have the most significant effects on the amounts recognized in the consolidated financial statements is as follows:

(a) Judgement of whether the Group has substantive control over its investees

The Group holds 13.47% of the outstanding voting shares of Fulltech Fiber Glass Corp. and is the single largest shareholder of the investee. Although the remaining 86.53% of Fulltech Fiber Glass Corp.’s shares are not concentrated within specific shareholders, the Group still cannot obtain more than half of the total number of Fulltech Fiber Glass Corp.’s directors, and it also cannot obtain more than half of the voting rights at a shareholders’ meeting. Therefore, it is determined that the Group has significant influence on Fulltech Fiber Glass Corp.

Information about assumptions and estimation uncertainties that have a significant risk of resulting in a material adjustment to the carrying amounts of assets and liabilities within the next financial year is as follows. Those assumptions and estimation have been updated to reflect the impact of COVID-19 pandemic:

(Continued)

Unitech Printed Circuit Board Corporation and Subsidiaries Notes to the Consolidated Financial Statements

(a) Valuation of inventories

Since inventory must be measured at the lower of cost and net realizable value, the combined company assesses the amount of inventory due to normal wear and tear, obsolescence, or no market sales value on the reporting date, and offsets the inventory cost to net realizable value. This inventory evaluation is mainly based on the estimated product demand in a specific period in the future, so there may be major changes due to rapid changes in the industry. Please note 6 (f) for detailed inventory evaluation and estimation.

(b) Impairment of property, plant and equipment, and intangible assets

In the process of evaluating the potential impairment of tangible and intangible assets other than goodwill, the Group is required to make subjective judgments in determining the independent cash flows, useful lives, expected future income and expenses related to the specific asset groups considering of the nature of the industry. Any changes in these estimates based on changed economic conditions or business strategies and could result in significant impairment charges or reversal in future years. Refer to note 6 (i), (j) and (k) for further description of the key assumptions used to determine the recoverable amount.

(6) Explanation of significant accounts

(a) Cash and cash equivalents

Cash in stock Demand deposits	December 31, 2021 $ 3,468 608,981 $ 612,449	December 31, 2020
		1,919 1,063,293
		1,065,212

Please refer to note 6(w) for the exchange rate risk, interest rate risk, and sensitivity analysis of the financial assets and liabilities of the Group.

(b) Financial assets at fair value through profit or loss

nancial assets at fair value through profit or loss
Mandatorily measured at fair value through profit or loss: Open End Funds	December 31, 2021 $ 59,073	December 31, 2020
		-

Please refer to note 6(v) for gain on financial assets at fair value through profit or loss.

As of December 31,2021 and 2020, the financial assets at Financial assets at fair value through profit or loss of the Group had not been pledged as collateral for its long-term borrowings.

(Continued)

Unitech Printed Circuit Board Corporation and Subsidiaries Notes to the Consolidated Financial Statements

Listed common shares Unlisted common shares	December 31, 2021 $ 452,200 95,336 $ 547,536	December 31, 2020
		513,704 95,336
		609,040

(i) Equity investments at fair value through other comprehensive income

The Group designated the investments shown above as equity securities at fair value through other comprehensive income because these equity securities represent those investments that the Group intends to hold for long-term strategic purposes.

During 2021, the Group has sold its listed common shares as a result of a takeover offer for cash. The shares sold had a fair value of $118,715 thousand and the Group realized a gain of $3,777 thousand, which is already included in other comprehensive income. The gain has been transferred to retained earnings.

During 2020, the Group has sold its listed common shares held as a result of a takeover offer for cash. The shares sold had a fair value of $29,488 thousand and the Group realized a loss of $2,488 thousand, which was recognized as other comprehensive income, and thereafter, was reclassified to retained earnings.

(ii) For credit risk (including the impairment of debt investments) and market risk, please refer to note 6 (w).
(iii) As of December 31, 2021 and 2020 the financial assets at fair value through other comprehensive income of the Group had not been pledged as collateral for its borrowings.
(d) Notes and accounts receivables

Notes receivables–measured as amortized cost Trade receivables–measured as amortized cost Less: Loss allowance	December 31, 2021 $ 5,510 4,129,691 22,971 $ 4,112,230	December 31, 2020
		5,922 4,015,019 12,284
		4,008,657

The Group applies the simplified approach to provide for its expected credit losses, i.e. the use of lifetime expected loss provision for all receivables. To measure the expected credit losses, trade receivables have been grouped based on shared credit risk characteristics and the days past due, as well as the incorporated forward looking information, including macroeconomic and relevant industry information. The loss allowance provisions were determined as follows:

(Continued)

Unitech Printed Circuit Board Corporation and Subsidiaries Notes to the Consolidated Financial Statements

December 31, 2021	December 31, 2021
Gross carrying amount Weighted-average loss rate $ 3,884,633 0.00% 210,968 0.05% 11,133 1.67% 20,396 71.46% 8,071 100.00% $ 4,135,201 December 31, 2020		Loss allowance provision
		42 96 186 14,576 8,071
		22,971

	Weighted-average loss rate 0.09% 1.65% 28.91% 72.75% 100.00%	Loss allowance provision
		3,426 2,337 1,432 2,486 2,603
		12,284

The movement in the allowance for notes and trade receivables were as follows:

Balance at January 1 Impairment losses recognized Impairment losses reversed Disposal of subsidiary Amounts written off Foreign exchange (losses)/gains Balance at December 31	For the years ended December 31 2021 2020 $ 12,284 35,008 12,942 - - (1,758) - (233) (2,245) (20,754) (10) 21 $ 22,971 12,284
	2021 $ 12,284 12,942 - - (2,245) (10) $ 22,971

The aforementioned notes and trade receivables of the Group had not been pledged as collateral for long-term borrowings.

(e) Other receivables

Tax refund receivables Others	December 31, 2021 $ 68,105 4,687 $ 72,792	December 31, 2020
		426,291 1,869
		428,160

The company had no other receivables impairment as of December 31, 2021 and 2020.

(Continued)

Unitech Printed Circuit Board Corporation and Subsidiaries Notes to the Consolidated Financial Statements

(f) Inventories

Raw materials and consumables Work in progress Finished goods Merchandise inventory Allowance to reduce Inventory to market	December 31, 2021 $ 383,785 1,504,572 343,628 406,455 $ 2,638,440 (260,191) $ 2,378,249	December 31, 2020 385,257 1,200,249 337,096 295,620 2,218,222 (260,407) 1,957,815

For the years ended December 31, 2021 and 2020, the Group recognized cost of sales and expense amounted to $13,942,415 thousand and $14,454,230 thousand, respectively.

The details of the lot of sales were as follow:

Write-down of inventories Revenue from sales of scraps	2021 $ 25 (205,429) $ (205,404)	2020 24,594 (88,324) (63,730)

As of December 31, 2021 and 2020, the Group did not provide any inventories as collateral for its borrowings.

(g) Investments accounted for using equity method

A summary of the Group’ s financial information for investments accounted for using the equity method at the reporting date is as follows:

A summary of the Group’ s financial information for invest method at the reporting date is as follows:	ments accounted fo	r using the equit
Associates (i) Associates	December 31, 2021 $ 1,047,217	December 31, 2020
		995,638

The Group’s financial information for investments accounted for using the equity method that are individually insignificant was as follows:

The Group’s financial information for investments acco are individually insignificant was as follows:	unted for using the	equity method tha
Carrying amount of individually insignificant associates’ equity	December 31, 2021 $ 1,047,217	December 31, 2020
		995,638

(Continued)

Unitech Printed Circuit Board Corporation and Subsidiaries Notes to the Consolidated Financial Statements

In 2021 and 2020, the Group’s share of the net income of associates was as follows:

Attributable to the Group: Profit (loss) from continuing operations Other comprehensive income Comprehensive income	2021 $ 84,570 4,040 $ 88,610	2020 (65,212) 23,314 (41,898)

(ii) Guarantee

As of December 31, 2021 and 2020, investments accounted for using the equity method of the Group had been pledged as collateral. Please refer to note 8.

(h) Loss control of subsidiaries
(i) Schmidt scientific Taiwan Ltd.

The Group had sold 57.17% of its shares in Schmidt Taiwan International Ltd. to a third party with a consideration of $18,943 thousand on January 15, 2020. The Group derecognized Schmidt Scientific Taiwan Ltd. from the date of disposal as its subsidiary. The Group derecognized the assets, liabilities and the related equity components of Schmidt Scientific Taiwan Ltd., and recognized a loss on disposal of $25,137 thousand, and recorded it as net gains (losses) on disposal of investment.

Loss of disposal also included the amount $15,464 thousand due to loss control of subsidiaries that reclassified from equity to net gains (losses).

The carrying amount of assets and liabilities of Schmidt Scientific Taiwan Ltd. on the date of disposal was as follow:

disposal was as follow:
Cash and cash equivalents	$	73,132
Note and trade receivables (Includes related parties)		45,171
Inventories		22,882
Other current assets		10,878
Non-current financial assets at fair value through other comprehensive
income		5,985
Property, plant and equipment		63,358
Deferred tax assets		61,662
Other non-current assets		8,423
Short-term borrowings		(36,000)
Note and Trade payables (Includes related parties)		(47,452)
Other current liabilities		(14,786)
Long-term borrowings		(11,391)
Deferred tax liabilities		(114,466)
Net defined benefit liabilities—non-current		(17,312)
Other non-current liabilities		(30)
Carrying amount of net assets	$	50,054

(Continued)

Unitech Printed Circuit Board Corporation and Subsidiaries Notes to the Consolidated Financial Statements

(i) Property, plant, and equipment

The cost, depreciation, and impairment of the property, plant and equipment of the Group for the years ended December 31, 2021 and 2020, were as follows:

Cost or deemed cost: Balance on January 1, 2021 Additions Disposals Reclassification Effect of movements in exchange rates Balance on December 31, 2021 Balance at January 1, 2020 Additions Disposal Disposal of subsidiary Reclassification Effect of movements in exchange rates Balance on December 31, 2020 Deprecation and impairments loss: Balanceon January 1, 2021 Deprecation Disposal Imprairment Loss Reclassification Effect of movements in exchange rates Balance at December 31, 2021 Balance at January 1, 2020 Deprecation Disposal Disposal of subsidiary Reclassification Effect of movements in exchange rates Balanceon December 31, 2020 Carrying Value: Balance on December 31, 2021 Balance on January 1, 2020 Balance on December 31, 2020	Land $ 407,228 - - - - $ 407,228 $ 459,354 - - (52,126) - - $ 407,228 $ - - - - - - $ - $ - - - - - - $ - $ 407,228 $ 459,354 $ 407,228	Buildings and constructions 2,558,482 - - 3,098,306 898 5,657,686 3,916,170 167 (1,340,223) (23,609) 11,041 (5,064) 2,558,482 725,410 120,864 - - 17 21 846,312 1,802,401 65,394 (1,125,742) (12,446) - (4,197) 725,410 4,811,374 2,113,769 1,833,072	Machinery and equipment 12,686,242 - (21,486) 1,598,398 (3,202) 14,259,952 15,350,580 - (3,771,925) (454) 1,108,192 (151) 12,686,242 7,837,422 889,438 (12,288) 26,194 (208) 132 8,740,690 9,285,564 992,442 (2,432,333) (454) 296 (8,093) 7,837,422 5,519,262 6,065,016 4,848,820	Office facilities 319,493 - (7,626) 19,387 (9) 331,245 516,810 33 (198,557) (14,358) 16,259 (694) 319,493 250,383 22,174 (7,626) - 266 (3) 265,194 399,872 26,284 (160,395) (14,289) (538) (551) 250,383 66,051 116,938 69,110	Other facilities 4,706,780 1,054 (8,400) 124,016 (65) 4,823,385 4,613,457 - (22,193) - 115,320 196 4,706,780 3,288,987 268,172 (7,969) - (58) (47) 3,549,085 2,990,698 319,389 (21,243) - (2) 145 3,288,987 1,274,300 1,622,759 1,417,793	Testing equipment 236,150 483,960 - (439,270) - 280,840 470,250 554,203 - - (788,146) (157) 236,150 - - - - - - - - - - - - - - 280,840 470,250 236,150	Construction in progress 4,465,620 667,229 - (4,451,136) (24,978) 656,735 2,056,158 3,038,126 - - (706,379) 77,715 4,465,620 - - - - - - - - - - - - - - 656,735 2,056,158 4,465,620	Total 25,379,995 1,152,243 (37,512) (50,299) (27,356)
								26,417,071
								27,382,779 3,592,529 (5,332,898) (90,547) (243,713) 71,845
								25,379,995
								12,102,202 1,300,648 (27,883) 26,194 17 103
								13,401,281
								14,478,535 1,403,509 (3,739,713) (27,189) (244) (12,696)
								12,102,202
								13,015,790
								12,904,244
								13,277,793

(i) Guarantee

As of December 31, 2021 and 2020, the property, plant and equipment of the Group had been pledged as collateral for long-term borrowings. Please refer to note 8.

(Continued)

Unitech Printed Circuit Board Corporation and Subsidiaries Notes to the Consolidated Financial Statements

(ii) Acquistion of machinery and equipment

The Group calculated capitalization interest rate base on 1.85%~3.9% and 1.92%~4.8% for the year 2021 and 2020. The capitalized borrowing related to the acquisition of machinery and equipment were $99,822 and $77,176 thousand, respectively.

(iii) Shanghai Unitech Electronics Co., Ltd. cooperated with the Shanghai local government's house and land expropriation to relocate the Company’ s land and factory buildings, wherein Shanghai Unitech Electronics Co., Ltd. received the partial compensation totaling $1,816,447 thousand (CNY 415,460 thousand) in 2020 and 2019, and $1,345,475 thousand (CNY 310,002 thousand) in 2021. All payments received. As of December 31, 2020, the compensation of $727,944 thousand (CNY 166,775 thousand) had been classified to other non-current liabilities. Please refer to Note 6 (v) for the actual expenses and the recognition of compensation income.
(iv) The decrease in sales revenue was due to the impact of COVID-19 pandemic in 2021, which caused the carrying amount of property, plant and equipment to exceed its recoverable amount, resulting in the amount of $26,194 thousand to be recognized as impairment loss in the consolidated statement of comprehensive income. The key assumption of assessing the recoverable amount is based on the discount rate of 10.24%, and the recoverable amount is determined according to the financial forecast which is based on the pre-tax cash flow projections approved by management. The impairment test on property, plant and equipment is to determine the recoverable amount for the asset's cash-generating unit, because every business unit could generate independent cashflow, in which the Group assesses the deviation between the recoverable amount and the carrying value of business units to determine whether the impairment loss is recognized.
(j) Right-of-use-assets

The Group leases many assets including land and buildings, machinery and equipment and transportation facilities. Information about leases per which the Group as a lease was represented below:

Cost: Balance at January 1, 2021 Additions Disposal Effect on movements of exchange rates Balance at December 31, 2021 Balance at January 1, 2020 Additions Disposal Effect on movements of exchanges rates Balance at December 31, 2020	Land $ 635,731 - (65,621) (1,054) $ 569,056 $ 632,728 - - 3,003 $ 635,731	Buildings and constructions 163,050 1,251 (6,943) - 157,358 160,738 2,482 (170) - 163,050	Office facilities 15,900 1,598 - - 17,498 7,181 11,758 (3,039) - 15,900	Transportation facilities 39,773 23,401 (13,855) - 49,319 36,214 5,130 (1,571) - 39,773	Other assets 21,297 3,230 (4,102) - 20,425 18,981 3,154 (838) - 21,297	Total 875,751 29,480 (90,521) (1,054) 813,656 855,842 22,524 (5,618) 3,003 875,751

(Continued)

Unitech Printed Circuit Board Corporation and Subsidiaries Notes to the Consolidated Financial Statements

Accumulated depreciation and impairment losses: Balance at January 1, 2021 Deprecation for the year Disposal Effect on movements of exchange rates Balance at December 31, 2021 Balance at January 1, 2020 Depreciation for the year Disposal Effect on movements of exchange rates Balance at December 31, 2020 Carrying amount: Balance at December 31, 2021 Balance at January 1, 2020 Balance at December 31, 2020	Land $ 108,636 51,032 (3,420) (58) $ 156,190 $ 54,712 53,741 - 183 $ 108,636 $ 412,866 $ 578,016 $ 527,095	Buildings and constructions 73,765 37,537 (2,945) - 108,357 36,006 37,759 - - 73,765 49,001 124,732 89,285	Office facilities 4,410 3,627 - - 8,037 4,056 3,393 (3,039) - 4,410 9,461 3,125 11,490	Transportation facilities 22,169 9,799 (13,816) - 18,152 11,735 11,448 (1,014) - 22,169 31,167 24,479 17,604	Other assets 8,480 4,765 (4,102) - 9,143 3,333 5,985 (838) - 8,480 11,282 15,648 12,817	Total 217,460 106,760 (24,283) (58)
						299,879
						109,842 112,326 (4,891) 183
						217,460
						513,777
						746,000
						658,291

As of December 31, 2021 and 2020, the Right-of-use-assets of the Group had been pledged as collateral for long-term borrowings. Please refer to note 8.

Assets of the group that have indications of impairment on the reporting date are tested for impairment on the basis of individual assets or their CGUs. According to the test for impairment for 2021 and 2020, the recoverable amount for an asset or a CGU is the higher than its book value. Therefore the group did not recognize any impairment loss on right-or-use assets.

(k) Intangible assets

The cost, amortization and impairment of the intangible assets of the Group for the years ended December 31, 2021 and 2020, were as follows:

Costs: Balance at January 1, 2021 Additions Balance at December 31, 2021 Balance at January 1, 2020 Additions Balance at December 31, 2020 Accumulated amortization and impairment losses: Balance at January 1, 2021 Amortization for the year Balance at December 31, 2021	Computer Software
	$ 125,454 21,299 $ 146,753 $ 41,311 84,143 $ 125,454 $ 17,012 17,070 $ 34,082

(Continued)

Unitech Printed Circuit Board Corporation and Subsidiaries Notes to the Consolidated Financial Statements

Balance at January 1, 2020 Amortization for the year Balance at December 31, 2020 Carrying value: Balance at December 31, 2021 Balance at January 1, 2020 Balance at December 31, 2020	Computer Software
	$ 4,940 12,072 $ 17,012 $ 112,671 $ 36,371 $ 108,442

(i) Amortization and impairment

The amortization of intangible assets and their repairment losses are in clued in the statement of comprehensive income:

Cost of sales Operating expense	2021 $ 2,931 $ 14,139	2020
		1,327
		10,745

Assets of the Group that have indications of impairment on reporting date are tested for impairment on the basis of individual assets on their CGUs. According to the test for important for 2021 and 2020, the recoverable amount for an asset or a CGU is higher than its book value. Therefore, the group did not recognize any impairment loss on intangible assets.

(l) Short-term notes and bills payable

As the year of December 31, 2021: None.

Commercial paper payable Less: Prepaid interest Total	December 31, 2020 Guarantee or acceptance institution Range of interest rates (%) Amount The Shanghai Commercial & Savings Bank, LTD. 0.92% $ 70,000 (9) $ 69,991
	Guarantee or acceptance institution
	The Shanghai Commercial & Savings Bank, LTD.

(Continued)

Unitech Printed Circuit Board Corporation and Subsidiaries Notes to the Consolidated Financial Statements

(m) Short-term borrowings

The short-term borrowings were summarized as follows:

Letters of credit Unsecured bank loans Secured bank loans Unused short-term credit lines Range of interest rates	December 31, 2021 $ 17,386 1,421,893 100,050 $ 1,539,329 $ 4,729,994 0.56%~4.20%	December 31, 2020
		12,631 907,315 50
		919,996
		4,156,007
		0.46%~4.65%

For the collateral for short-term borrowings, please refer to note 8.

(n) Long-term borrowings

The details were as follows:

Unsecured bank loans Secured bank loans Other long-term payable Less: current portion Total Unused long-term credit lines		December 31, 2021 Rate Maturity year Amount 1.22% 2024 $ 415,200 1.20%~1.43% 2023~2024 515,000 4.80% 2024 1,770,371 1.10%~2.16% 2023~2026 4,637,500 0.68% 2022 5,190 7,343,261 (1,109,230) $ 6,234,031 $ 407,248
	Currency	Rate
	USD TWD RMB TWD USD	1.22% 1.20%~1.43% 4.80% 1.10%~2.16% 0.68%

Unused long-term credit lines		$ 407,248
Unsecured bank loans Secured bank loans Other long-term payable Less: current portion Total Unused long-term credit lines		December 31, 2020 Rate Maturity year Amount 1.32% 2022 $ 598,080 1.35%~1.68% 2022~2023 375,000 4.99% 2024 2,137,253 1.10%~1.79% 2022~2025 3,792,000 0.74% 2022 142,400 7,044,733 (1,438,954) $ 5,605,779 $ 2,361,638
	Currency	Rate
	USD TWD RMB TWD USD	1.32% 1.35%~1.68% 4.99% 1.10%~1.79% 0.74%

(Continued)

Unitech Printed Circuit Board Corporation and Subsidiaries Notes to the Consolidated Financial Statements

(i) Collateral for long-term borrowings

For the collateral for long-term borrowings, please refer to note (8).

(ii) Borrowings information as follow:
1) The Group entered into a syndicated credit agreement with financial institutions, dominated by Bank of Taiwan on March 30, 2017.
- a) The syndicated banks of the Syndicated Loan Agreement consist of Bank of Taiwan, Taiwan Business Bank Co., Ltd., Mega International Commercial Bank Co., Ltd., Taiwan Cooperative Bank, Taipei Fubon Commercial Bank Co., First Commercial Bank Ltd., Chang Hwa Commercial Bank, Ltd., Shin Kong Commercial Bank Co., Ltd. Land Bank of Taiwan, Agricultural Bank of Taiwan, and The Shanghai Commercial & Savings Bank, Ltd..
  - i) The amount of total credit lines is NTD4,500,000,000 which is to repay existing financial liabilities, purchase mechanical equipment, and afford the middle stage of working fund.

ii) Period of credit agreement, payment period and the way to repayment.

Period: Five years from the first draw down date.
Payment period:
- a. A type: Credit line of medium term secured loans is NTD2,800,000,000, which can be used partly but cannot be used by revolving. 6 months from the first draw down date. After six months, the unused amount will be cancelled automatically and shall not be used.
- b. B type: Credit line of medium term secured loans is NTD1,000,000,000, which can be used partly but cannot be used by revolving. 18 months from the first draw down date. After 18 months, the unused amount will be cancelled automatically and shall not be used.
- c. C type: Credit line of medium term loans is NTD700,000,000, which can be used partly and can be used by revolving.
iii) According to the syndicated credit agreement, during the credit period, the Group is based on the second quarter consolidated financial statements and auditor report to calculate and maintain certain financial ratios on balance sheet date. (i.e. equity ratio, interest coverage ratio, tangible net worth, self owned asset ratio, etc.)
iv) The Company provided the guarantees of promissory notes, mechanical equipment, and buildings and constructions as collaterals for this syndicated credit agreement.
v) The Company started to use this credit line on May 31, 2017.
vi) The Company repaid all credit line on April 30, 2020.

(Continued)

Unitech Printed Circuit Board Corporation and Subsidiaries Notes to the Consolidated Financial Statements

2) The Group entered into a syndicated credit agreement with financial institutions, dominated by Bank of Taiwan on September 26, 2019.
a) The syndicated banks of the Syndicated Loan Agreement consist of the leading bank and the managing bank is Bank of Taiwan. The participating banks are Taishin International Bank Co., Ltd., Chang Hwa Commercial Bank, Ltd., Taiwan Business Bank Co., Ltd., Bank SinoPac Co., Ltd. The Shanghai Commercial & Savings Bank, Ltd., First Commercial Bank.
- i) The amount of total credit lines is US$24,000,000 which is to expand working capital.

ii) Period of credit agreement, payment period and the way to repayment.

Period: Three years from the first draw down date, but should be used within three months after the contract date.
Payment period: On the regulation of agreement and under each condition, the period of using is 9 months from the starting date. After the maturity date, the unused amount will be cancelled automatically and shall not be used.
Method of repayment: The repayment is every six months beginning from 1 year after the date of first borrowing. For the 1st repayment to the 4th repayment, the Group should repay 12.5% principal at each time. The expiration date of the loan will be extended for one year starting from November 18, 2022, and thereafter, every three months is deemed as one installment for loan repayment. The fifth and sixth instalments will be repaid the principal amounting to USD 3.6 million. The seventh and eighth instalments will repaid the principal amounting to USD 2.4 million.

Under any conditions, the borrowing should be repaid on the basis of the contract within the time and amount. If not, the borrowings should be fully repaid ahead of schedule.

The Group should repay all principal, interest, other payables, and expenses which were not repaid on the expiry date of the credit agreement.

iii) According to the syndicated credit agreement, during the credit period, the Group is based on the consolidated financial statements and auditor report to calculate and maintain certain financial ratios on balance sheet date. (i.e. equity ratio, interest coverage ratio, tangible net worth, self owned asset ratio, etc.)
iv) The Group provided guarantees of promissory notes and the related parties will be the joint guarantee for the credit loan from this agreement.
v) The first drawn date is on November 18, 2019.

(Continued)

Unitech Printed Circuit Board Corporation and Subsidiaries Notes to the Consolidated Financial Statements

3) The Group entered into a syndicated credit agreement with financial institutions, dominated by Bank of Taiwan on September 26, 2019.
a) The syndicated banks of the Syndicated Loan Agreement consist of Bank of Taiwan, Land Bank of Taiwan, Taiwan Cooperative Bank, Hua Nan Commercial Bank, Ltd., First Commercial Bank, Chang Hwa Commercial Bank, Ltd., Bank SinoPac Co., Ltd (China)., Mega International Commercial Bank Co., Ltd..
- i) The amount of total credit lines is CNY300,000,000, which is used for building the factories.

ii) Period of credit agreement, payment period and the way to repayment.

Period: Three years from the first draw down date, or if the expiry date is not a business day, then it is the previous business day.
Payment period: 18 month from first draw down date, or the date when the credit line becomes 0 (the earlier one). The loan will be cancelled automatically if the Group does not withdraw the credit line during the period.
Method of repayment: The date after 12 month from the first drawn date as one payment. The repayment will be divided into three payments, every six month is deemed as one payment. The detail payment period and repayment are as below:
- a. 24 month from the first draw down date, should repay 10% of credit loan balance.
- b. 30 month from the first draw down date, should repay 15% of credit loan balance.
- c. 36 month from the first draw down date, should repay 75% of credit loan balance.
iii) According to the syndicated credit agreement, during the credit period, the Group is based on the consolidated financial statements and auditor report to calculate and maintain certain financial ratios on balance sheet date (i.e. equity ratio, interest coverage ratio, tangible net worth, self owned asset ratio, etc.)
iv) The Group provided guarantees of promissory notes and the related parties will be the joint guarantors for the credit loan from this agreement.
v) The first drawn date is on October 29, 2019.

vi) The Group repaid the credit line on May 29, 2020.

4) The Group, entered into a syndicated credit agreement with financial institutions, dominated by Bank of Taiwan on March 31, 2020.

(Continued)

Unitech Printed Circuit Board Corporation and Subsidiaries Notes to the Consolidated Financial Statements

a) The syndicated banks of the Syndicated Loan Agreement consist of Bank of Taiwan, Chang Hwa Commercial Bank, Ltd., Taiwan Business Bank Co., Ltd., Land Bank of Taiwan, Taiwan Cooperative Bank, First Commercial Bank, Bank SinoPac Co., Ltd., The Shanghai Commercial & Savings Bank, Ltd., Taipei Fubon Commercial Bank Co., Ltd., Mega International Commercial Bank Co., Ltd..
i) The amount of total credit lines is NT$3,800,000,000, which is used for repaying existing financial liabilities and expanding working capital.

ii) Period of credit agreement, payment period and the way to repayment.

Period: Five years from the first draw down date, but should be used within 6 month from the contract date, otherwise, the 6 month date from the contract date will be deemed as the first draw down date.
Payment period:
a. A type: Credit line of medium term secured loans is NTD2,900,000,000, which can be used partly but cannot be used by revolving. 6 months from the first drawn date. After six months, the unused amount will be cancelled automatically and shall not be used.
b. B type: Credit line of medium term loans is NTD900,000,000, which can be used by revolving.
Method of repayment:
a. A type: The date after 18 month from the first drawn date as one payment. The repayment will be divided into eight payments, every six month is deemed as one payment.
b. B type: The B type borrowing has the revolving credit facility. If the part of credit lines expires, the remaining of the credit line could be borrowed further to repay for the original borrowings.

Under any circumstances, the Group should repay all principal, interest, other payables, and expenses which were not repaid on the expiry date of the credit agreement.

iii) According to the syndicated credit agreement, during the credit period, the Group is based on the former three quarters of years of consolidated financial statements and auditor report to calculate and maintain certain financial ratios on balance sheet date. (i.e. equity ratio, interest coverage ratio, tangible net worth, self owned asset ratio, etc.)
iv) The Group provided guarantees of promissory notes, mechanical equipment, buildings and constructions as collaterals for this syndicated credit agreement. Besides, the related parties will be joint guarantors for the credit loan from this agreement.

(Continued)

Unitech Printed Circuit Board Corporation and Subsidiaries Notes to the Consolidated Financial Statements

(o) Lease liabilities

The carrying values of the Group’s lease liabilities were as follows:

The carrying values of the Group’s lease liabilities were as fol	lows:
Current Non-current	December 31, 2021 $ 112,144 $ 309,785	December 31, 2020
		99,462
		407,326

For the maturity analysis, please refer to note 6(w).

The amounts recognized in profit or loss was as follows:

		For the years ended	For the years ended
		December 31, 2021	December	31, 2020
Interest on lease liabilities	$	8,326		10,151
Expenses relating to leases of low-value assets, excluding
short-term leases of low-value assets	$	13,161		7,963

The amounts recognized in the statement of cash flows for the Group was as follows:

Total cash outflow for leases		For the years ended	For the years ended
			December 31, 2020
			94,615

(i) Real estate leases

The Group leases land and buildings for its office space and employee accommodation . The leases of office space and employee accommodation typically run for 2-10 years. Some leases include an option to renew the lease for an additional period of the same duration after the end of the contract term.

The Group expects the relative proportions of fixed and variable lease payments to remain broadly consistent in future years.

(ii) Other leases

The Group leases vehicles and equipment, with lease terms of one to four years. In some cases, the Group has options transporation to purchase the assets at the end of the contract term; in other cases, it guarantees the residual value of the leased assets at the end of the contract term.

The Group also leases office facilities and parking space with contract terms of one to four years. These leases are short-term and leases of low-value items. The Group has selected not to recognize right-of-use assets and lease liabilities for these leases.

(Continued)

Unitech Printed Circuit Board Corporation and Subsidiaries Notes to the Consolidated Financial Statements

(p) Employee benefits

(i) Defined benefit plans

Reconciliation of defined benefit obligation at present value and plan asset at fair value are as follows:

Present value of the defined benefit obligations Fair value of plan assets Impact of asset ceiling Net defined benefit liabilities	December 31, 2021 $ 628,409 (466,716) 161,693 - $ 161,693	December 31, 2020 658,758 (446,035) 212,723 - 212,723

The Group makes defined benefit plan contributions to the pension fund account with Bank of Taiwan that provides pensions for employees upon retirement. Plans (covered by the Labor Standards Law) entitle a retired employee to receive retirement benefits based on years of service and average monthly salary for the six months prior to retirement.

1) Composition of plan assets

The Group allocates pension funds in accordance with the Regulations for Revenues, Expenditures, Safeguard and Utilization of the Labor Retirement Fund, and such funds are managed by the Bureau of Labor Funds, Ministry of Labor. With regard to the utilization of the funds, minimum earnings shall be no less than the earnings attainable from two-year time deposits with interest rates offered by local banks.

The Group’ s Bank of Taiwan labor pension reserve account balance amounted to $466,716 thousand and 446,035 thousand as of December 31, 2021 and 2020. For information on the utilization of the labor pension fund assets, including the asset allocation and yield of the fund, please refer to the website of the Bureau of Labor Funds, Ministry of Labor.

2) Movements in present value of the defined benefit obligations

The movement in present value of the defined benefit obligations for the Group were as follows:

Defined benefit obligations at January 1 Disposal of subsidiary Current service costs and interest Remeasurements loss (gain) －Actuarial loss (gain) arising from: －Financial assumptions Benefits paid Defined benefit obligations at December 31	2021 $ 658,758 - 18,076 (608) (47,817) $ 628,409	2020 730,504 (33,482) 25,494 3,576 (67,334) 658,758

(Continued)

Unitech Printed Circuit Board Corporation and Subsidiaries Notes to the Consolidated Financial Statements

3) Movements of defined benefit plan assets

The movements in the present value of the defined benefit plan assets for the Group were as follows:

Fair value of plan assets at January 1 Disposal of subsidiary Interest income Remeasurements loss (gain): －Return on plan assets excluding interest income Contributions Benefits paid Contributions paid by the employer Fair value of plan assets at December 31	2021 $ 446,035 - 5,695 2,458 60,345 (47,817) $ 466,716	2020 421,579 (16,170) 6,625 10,090 91,245 (67,334) 446,035

4) Movements of the effect of the asset ceiling

There were no movements in the number of impacts of the consolidated company’ s defined benefit plan asset ceiling in 2021 and 2020.

5) Expenses recognized in profit or loss

The expenses recognized in profit or loss for the Group were as follows:

Current service costs Net interest of net liabilities for defined benefit obligations Past service costs Operating cost Administration expense	2021 $ 9,842 2,539 $ 12,381 2021 $ 3,356 9,025 $ 12,381	2020
		13,296 5,573
		18,869
		2020
		4,900 13,969
		18,869

6) Actuarial assumptions

The principal actuarial assumptions at the reporting date were as follows:

Discount rate Future salary increase rate	December 31, 2021 December 31, 2021 1.000% 1.250% 0.750% 0.750%

(Continued)

Unitech Printed Circuit Board Corporation and Subsidiaries Notes to the Consolidated Financial Statements

The expected allocation payment to be made by the Group to the defined benefit plans for the one-year period after the reporting date is $12,092 thousand. The weighted average lifetime of the defined benefits plans is 11 years

7)

Sensitivity analysis

If the actuarial assumptions had changed, the impact on the present value of the defined benefit obligation shall be as follows:

December 31,2021 Discount rate Future salary increasing (decreasing) rate December 31,2020 Discount rate Future salary increasing (decreasing) rate	Influences of defined benefit obligations Increased0.25％ Decreased0.25％ (16,289) 16,903 16,734 (16,205) (17,580) 18,262 18,124 (17,531)

Reasonably possible changes at the reporting date to one of the relevant actuarial assumptions, holding other assumptions constant, would have affected the defined benefit obligation by the amounts shown above. The method used in the sensitivity analysis is consistent with the calculation of pension liabilities in the balance sheets.

There is no change in the method and assumptions used in the preparation of sensitivity analysis for 2021 and 2020.

(ii) Defined contribution plans

The Group allocates 6% of each employee’ s monthly wages to the labor pension personal account at the Bureau of Labor Insurance in accordance with the provisions of the Labor Pension Act. Under these defined contribution plans, the Company allocates a fixed amount to the Bureau of Labor Insurance without additional legal or constructive obligation.

The pension costs incurred from the contributions to the Bureau of the Labor Insurance amounted to $186,123 and $151,940 thousand for the years ended December 31, 2021 and 2020, respectively.

(Continued)

Unitech Printed Circuit Board Corporation and Subsidiaries Notes to the Consolidated Financial Statements

(q) Income tax

(i) Income tax expense

The components of income tax and profit in the years 2021 and 2020 were as follows:

Current tax expense Current period Adustments for prior periods Deferred tax expense Origination and reversal of temporary differences Income tax (gain) expense	2021 $ 502,862 (22,159) 480,703 (147,188) $ 333,515	2020
		- 7,806
		7,806
		(155,473)
		(147,667)

(ii) Reconciliation of income tax and profit (loss) before tax for 2021 and 2020 is as follows:

Profit (Loss) excluding income tax Income tax using the Company’s domestic tax rate Effect of tax rates in foreign jurisdiction Tax-exempt income Prior-period tax adjustments Tax free subsisdy income attributed to the epidemic Current-year losses for which no deferred tax asset was recognized Change in unrecognized temporary differences Others Income tax expense(gain)	2021 $ 91,398 $ 18,278 86,851 (1,062) (22,159) - 263,146 6,448 (17,987) $ 333,515	2020
		(1,583,127) (316,625) (30,065) (1,858) 7,806 (70,357) 244,137 1,795 17,500 (147,667)

(iii) Deferred tax assets and liabilities

1) Unrecognized deferred tax liabilities

The consolidated entity is able to control the timing of the reversal of the temporary differences associated with investments in subsidiaries as of December 31, 2021 and 2020. Also, management considers it probable that the temporary differences will not reverse in the foreseeable future Hence, such temporary differences are not recognized under deferred tax liabilities. Details are as follows:

December 31, 2021 Aggregate amount of temporary differences related to investments in subsidiaries $ 1,383,494 Unrecognizeddeferred tax liabilities $ 276,699	December 31, 2020
	-
	-

(Continued)

Unitech Printed Circuit Board Corporation and Subsidiaries Notes to the Consolidated Financial Statements

2) Unrecognized deferred tax assets

Deferred tax assets have not been recognized in respect of the following items:

Tax effect of deductible temporary differences The carryforward of unused tax losses	December 31, 2021 $ 62,835 517,266 $ 580,101	December 31, 2020
		78,490 244,137
		322,627

The R.O.C. Income Tax Act allows net losses, as assessed by the tax authorities, to offset taxable income over a period of ten years for local tax reporting purposes.

Deferred tax assets have not been recognized in respect of these items because it is not probable that future taxable profit will be available against which the Group can utilize the benefits therefrom.

As of December 31, 2021, the information of the Group’ s unused tax losses for which no deferred tax assets were recognized are as follows:

Year of loss	Unused tax loss Epiry date $ 3,753 2029 1,621,914 2030 1,761,041 2031 $ 3,386,708
2019(declared) 2020(declared) 2021(estimated)

3) Recognized deferred tax assets and liabilities

Changes in the amount of deferred tax assets and liabilities for 2021 and 2020 were as follows:

Deferred Tax Assets: Balance at January 1, 2021 Recognized in profit or loss Exchange Differences Balance at December 31, 2021 Balance at January 1, 2020 Recognized in profit or loss Disposal of subsidiary Balance at December 31, 2020	Loss carryforward $ 160,000 120,000 - $ 280,000 $ 59,343 160,000 (59,343) $ 160,000	Others 15,451 25,372 (67) 40,756 18,113 (343) (2,319) 15,451	Total 175,451 145,372 (67) 320,756 77,456 159,657 (61,662) 175,451

(Continued)

Unitech Printed Circuit Board Corporation and Subsidiaries Notes to the Consolidated Financial Statements

Deferred tax liabilities: Balance at January 1, 2021 Recognized in profit or loss Balance at December 31, 2021 Balance at January 1, 2020 Recognized in profit or loss Exchange Differences Disposal of subsidiary Balance at December 31, 2020	Land revalue added rovaluation $ 171,517 - $ 171,517 $ 171,517 - - - $ 171,517	investment subsidiary net income - - 114,466 - - (114,466) -	Other 4,833 (1,816) 3,017 - 4,184 649 - 4,833	Total 176,350 (1,816) 174,534 285,983 4,184 649 (114,466) 176,350

(iv) The Corporation’ s income tax return for the year 2019 had been examined by the tax authorities.

(r) Capital and other equitiy

As of December 31, 2021, the number of authorized ordinary shares were 700,000 shares (2020: 700,000 shares) with par value of $10 per share. The total value of authorized ordinary shares was amounted to $7,000,000 thousand (2020: $7,000,000 thousand). As of that date, 619,407 thousand (2020: 619,407 thousand) of ordinary shares amounted $6,194,070 thousand (2020:$6,194,070 thousand) were issued. All issued shares were paid up upon issuance.

(i) Capital surplus

The balances of capital surplus as of December 31, 2021 and 2020, were as follows:

Share capital premium Stock options-fair value differences of associate under equity method Unclaimed dividend Disposal of subsidiares	December 31, 2021 $ 2,675,703 157,208 507 - $ 2,833,418	December 31, 2020
		2,675,703 166,550 170 717
		2,843,140

According to the R.O.C. Company Act, capital surplus can only be used to offset a deficit, and only the realized capital surplus can be used to increase the common stock or be distributed as cash dividends. The aforementioned realized capital surplus includes capital surplus resulting from premium on issuance of capital stock and earnings from donated assets received. According to the Regulations Governing the Offering and Issuance of Securities by Securities Issuers, capital increases by transferring capital surplus in excess of par value should not exceed 10% of the total common stock outstanding.

(Continued)

Unitech Printed Circuit Board Corporation and Subsidiaries Notes to the Consolidated Financial Statements

(ii) Retained earnings

The Company's article of incorporation stipulate that Company's net earnings should first be used to offset the prior years' deficits, if any, before paying any income taxes. Of the remaining balance, 10% is to be appropriated as legal reserve, and then any remaining profit together with any undistributed retained earnings shall be distributed according to the distribution plan proposed by the Board of Directors and submitted to the stockholders’ meeting for approval.

Due to demand of expanding business, coordinating with Group’s long-term financial plan for sustainable development and stable economic development, The Group adopts Residual Dividend Policy. The main purpose for this policy is to measure financial demand that based on budget of future capital. The steps of distributions are as below: (1)The best capital budget. (2) Determine the financing required to meet the capital budget in the preceding paragraph. (3) Determine the amount of financing required to be financed by retained surplus (the remaining can be financed by cash increase or corporate bonds). (4) The remaining surplus can be distributed to shareholders in the form of dividends after retaining an appropriate amount according to operational needs. The distribution of future dividends takes into account the use of funds, and draws up an appropriate ratio of cash to stock dividends for the current year, in which cash dividends are 50% to 100%, and stock dividends are 50% to zero.

1) Legal reserve

When a company incurs no loss, it may, pursuant to a resolution by a shareholders’ meeting, distribute its legal reserve by issuing new shares or by distributing cash, and only the portion of legal reserve which exceeds 25% of capital may be distributed.

2) Special reserve

In accordance with Ruling No. 1010012865 issued by the FSC on April 6, 2012, a portion of current-period earnings and undistributed prior-period earnings shall be reclassified as special earnings reserve during earnings distribution. The amount to be reclassified should equal the current-period total net reduction of other shareholders’ equity. Similarly, a portion of undistributed prior-period earnings shall be reclassified as special earnings reserve (and does not qualify for earnings distribution) to account for cumulative changes to other shareholders’ equity pertaining to prior periods. Amounts of subsequent reversals pertaining to the net reduction of other shareholders’ equity shall qualify for additional distributions.

The company’s "other equity" item under the equity item on December 31, 2019 was negative and a resolution was passed during the general meeting of shareholders held on June 9, 2020 made a special surplus of $17,306 thousand.

The reversal of the Company’s special surplus reserve of $174,327 thousand had been recognized as other equity under equity item on December 31, 2020 based on the resolution approved during the general meeting of the shareholders held on June 29, 2021.

(Continued)

Unitech Printed Circuit Board Corporation and Subsidiaries Notes to the Consolidated Financial Statements

As of December 31, 2021 and 2020, the value of special reserve was 0 and 174,327 thousand, respectively.

3) Earnings distribution

Earnings distribution for 2020 and 2019 was decided by the resolution adopted, at the general meeting of shareholders held on July 29, 2021 and June 9, 2020, respectively. The relevant dividend distributions to shareholders were as follows:

Dividends distributed to ordinary shareholders: Cash	2020 Amount per share Total amount $ - -	2019	2019
	Amount per share $ -	Amount per share 0.80	Total amount
			495,526

(iii) Other comprehensive income accumulated in reserves, net of tax and non-controlling interest

Balance at January 1, 2021 Exchange differences on foreign operations The Company Unrealized gains (losses) from financial assets measured at fair value through other comprehensive income: The Company Subsidiary Associate Remeasurement of defined benefits plan: The Company Unearned employee compensation: Associate Disposal of investments in equity instruments designated at fair value through other comprehensive income: The Company Subsidiary Balance at December 31, 2021	Exchange differences on translation of foreign financial statements $ 41,694 (9,158) - - - - - 494 - - $ 33,030	Unrealized gains (losses) from financial assets measured at fair value through other comprehensive income 232,996 - 58,857 19,012 231 - - (1,016) 486 (4,263) 306,303	Remeasure -ment of defined benefits plan (182,812) - - - - 2,314 - 260 - - (180,238)	Unearned employee compensation (2,622) - - - - - 2,233 55 - - (334)	NCI - - - - - - - - - - -	Total 89,256 (9,158) 58,857 19,012 231 2,314 2,233 (207) 486 (4,263)
						158,761

(Continued)

Unitech Printed Circuit Board Corporation and Subsidiaries Notes to the Consolidated Financial Statements

Balance at January 1, 2020 Exchange differences on translation of foreign financial statements The Company Unrealized gains (losses) from financial assets measured at fair value through other comprehensive income: The Company Subsidiary Associate Remeasurement of defined benefits plan: The Company Subsidiary Associate Unearned employee compensation: Associate Disposal of investments in equity instruments designed at fair valiue through other comprehensive income:Subsidiary Other Disposal of Subsidiary Balance at December 31, 2020	Exchange differences on translation of foreign financial statements $ (37,584) 64,067 - - - - - - - - - 15,211 $ 41,694	Unrealized gains (losses) from financial assets measured at fair value through other comprehensive income 53,104 - 143,525 38,014 841 - - - - (2,488) - - 232,996	Remeasure -ment of defined benefits plan (189,847) - - - - 6,514 943 42 - - - (464) (182,812)	Unearned employee compensation (7,543) - - - - - - - 4,921 - - - (2,622)	NCI 20,446 - - - - - - - - - 992 (21,438) -	Total (161,424) 64,067 143,525 38,014 841 6,514 943 42 4,921 (2,488) 992 (6,691)
						89,256

(s) Earnings per share

The details on the calculation of basic earnings per share and diluted earnings per share as of December 31, 2021 and 2020 as follow:

2021 Basic earnings per share: Loss attributable to ordinary shareholders of the Company $ (242,117) Weighted average number of ordinary shares at December 31 (in thousand of shares) 619,407 $ (0.39)	2020 (1,436,452) 619,407 (2.32)

The net imcome for 2021 and 2020 were negative and there is no potential for dilution common stock.

(Continued)

Unitech Printed Circuit Board Corporation and Subsidiaries Notes to the Consolidated Financial Statements

(t) Revenue from contracts with customers

(i) Details of revenue

The details of revenue were as follows:

	2021
Electronics department $ 305,618 2,221,289 3,344,596 2,419,190 5,067,056 143,820 $ 13,501,569	Other - - - - - - - 2020	Total
		305,618 2,221,289 3,344,596 2,419,190 5,067,056 143,820
		13,501,569

	Other - - - - - 3,664 3,664	Total
		248,025 1,892,399 3,011,574 1,893,771 7,225,776 115,427
		14,386,972

(u) Employee compensation and directors' remuneration

In accordance with the articles of incorporation the Company should contribute 1% to 5% of the profit as employee compensation and no more than 3% as directors' remuneration when there is profit for the year. However, if the Company has accumulated deficits, the profit should be reserved to offset the deficit.

Due to the loss, there is no surpulus to be allocated. Therefore, the Company did not accrue the remuneration to employee and directors in 2021 and 2020.

Relevant information can be inquired at the Public Information Observatory.

(Continued)

Unitech Printed Circuit Board Corporation and Subsidiaries Notes to the Consolidated Financial Statements

(v) Non-operating income

(i) Interest income

The details of interest income were as follows:

Interest income from bank deposits Other interest income Interest income from bank deposits	2021 $ 1,610 3 $ 1,613	2020
		5,838 3
		5,841

(ii) Other income

The details of other income were as follows:

Compensation income Design income Subsidy Other income Dividend income	2021 $ 2,399 25,634 2,083,146 34,044 5,306 $ 2,150,529	2020
		12,773 29,658 1,446,239 32,951 9,826
		1,531,447

Shanghai Unitech Electronics Co., Ltd. entered into an agreement with Xujing Town Land Expropriation Office in April 2018 for the acquisition of land-use right, relocation of plant, and compensation of laying off of its employees. The total amount of government subsidy the Group had received was $1,816,447 thousand (CNY 415,460 thousand) in 2019 and 2018, and $ 2,026,099 thousand (CNY 466,843 thousand) in 2021. Furthermore, Shanghai Unitech Electronics Co., Ltd. had completed the estimation of the amounts related to its obligation of soil remediation and handover of land, resulting in its recognition of the total operating expenses and other losses related to laying-off employees, relocation of plant, and disposal of equipment of $62,725 thousand (CNY14,452 thousand) and $1,016,548 thousand (CNY 237,440 thousand), in 2021 and in 2020, respectively.

In order to coordinate with Nantong City Government for land development, Shanghai Unitech Electronics Co., Ltd. and Unitech Electronics HK International Limited signed an agreement with the committee of Nantong High Tech Industrial Development Zone to set up a new company (“Shanghai Unitech Electronics (Nantong) Co., Ltd.”) in October, 2017. According to the agreement, Nantong City Government would provide Shanghai Unitech Electronics Co., Ltd. 50% of the subsidy once the project has commenced, and the remaining subsidy would be granted in 15 days after the date of final acceptance of the construction. In addition, Shanghai Unitech Electronics (Nantong) Co., Ltd. had received and recognized the amounts of $61,045 thousand (CNY 14,259 thousand) and $63,677 thousand (CNY 14,250 thousand) as government subsidy in 2020 and 2019, respectively.

(Continued)

Unitech Printed Circuit Board Corporation and Subsidiaries Notes to the Consolidated Financial Statements

Shanghai Unitech Electronics (Nantong) Co. and Shanghai Unitech Electronics Co. had recognized the amounts of $27,643 thousand (CNY 6,369 thousand) and $27,885 thousand (CNY 6,425 thousand), respectively, as government subsidies in 2021.

The Covid 19 pandemic had a significant impact on the Group’ s operations. In order to cope with the situation, the Group applied for a government subsidy, wherein the amount of $351,785 thousand was granted in 2020.

(iii) Other gains and losses

The details of other gains and losses were as follows:

Foreign exchange gains (losses) Losses on disposal of subsidiary Gain on financial assets at fair value through profit Gain on disposal of investment accounted for using equity method Losses on disposals of property, plant and equipment Compensation losses Others Miscellaneous disbursements	2021 $ (13,283) - 7,549 8,324 (6,409) (2,131) (423) (117) $ (6,490)	2020 (58,375) (25,137) 403 - (460,231) (4,831) (512) (70,180) (618,863)

(iv) Financial costs

The details of finance costs were as follows:

Interest expense on borrowings Handling fee Interest expense on lease liabilities Less: interest capitalization	2021 $ (203,523) (4,120) (8,326) 99,822 $ (116,147)	2020 (184,456) (8,771) (10,151) 77,176 (126,202)

(w) Financial instruments

(i) Credit risk

1) Credit risk exposure

The carrying amount of financial assets and contract assets represents the maximum amount exposed to credit risk.

(Continued)

Unitech Printed Circuit Board Corporation and Subsidiaries Notes to the Consolidated Financial Statements

2) Concentration of Credit risk

During 2021, the Group has a large customer base, it has not concentrated on transactions with a single customer. Therefore, there was no concentration of credit risk in its trade receivables. To minimize credit risk, the Group periodically evaluates the Group’s financial positions.

(ii) Liquidity risk

The following table shows the contractual maturities of financial liabilities, including estimated interest payments and excluding the impact of netting agreements.

Carrying amount December 31,2021 Non-derivative financial liabilities Short-term borrowings $ 1,539,329 Trade payables 2,771,734 Other payable 905,757 Leases liabilities 421,929 Long term borrowings, current portion 1,109,230 Long-term borrowings 6,234,031 $ 12,982,010 December 31,2020 Non-derivative financial liabilities Short-term borrowings $ 919,996 Short-term notes and bills payable 69,991 Trade payable 3,037,371 Other payable 997,369 Lease liabilities 506,788 Long term borrowings, current portion 1,438,954 Long-term borrowings 5,605,779 $ 12,576,248	Contractual cash flows 1,552,430 2,771,734 905,757 442,338 1,121,143 6,747,054 13,540,456 925,945 69,991 3,037,371 997,369 546,092 1,466,041 6,187,245 13,230,054	Within 12 months 1,552,430 2,771,734 905,757 118,768 1,121,143 166,094 6,635,926 925,945 69,991 3,037,371 997,369 107,676 1,466,041 152,116 6,756,509	1-5 years - - - 271,791 - 6,580,960 6,852,751 - - - - 335,743 - 6,035,129 6,370,872	Over 5 years
				- - - 51,779 - -
				51,779
				- - - - 102,673 - -
				102,673

The Group does not expect the cash flows included in the maturity analysis to occur significantly earlier or at significantly different amounts.

(Continued)

Unitech Printed Circuit Board Corporation and Subsidiaries Notes to the Consolidated Financial Statements

(iii) Currency risk

1) Exposure to foreign currency risk

The Group’s significant exposure to foreign currency risk were as follows:

	The Group’	s significa	nt exposure to fore	ign curren	cy risk we	re as follows:
F	inancial assets: Monetary items USD EUR JPY CNY inancial liabilities: Monetary items USD EUR JPY CNY		December 31, 2021		Foreign currency 175,077 4,447 1,278 53,310 118,320 264 79,471 24,894	December 31, 2020
		Foreign currency $ 171,373 - 281 66,939 $ 116,534 296 79,808 27,755	Exchange rate USD/TWD 27.68 EUR/TWD 31.32 JPY/TWD 0.24 CNY/TWD 4.34 USD/TWD 27.68 EUR/TWD 31.32 JPY/TWD 0.24 CNY/TWD 4.34	TWD		Exchange rate TWD USD/TWD 28.48 4,986,180 EUR/TWD 35.02 155,730 JPY/TWD 0.28 353 CNY/NTD 4.38 233,338 USD/TWD 28.48 3,369,765 EUR/TWD 35.02 9,262 JPY/TWD 0.28 21,958 CNY/TWD 4.38 108,960
				4,743,705 - 68 290,784 3,225,659 9,263 19,194 120,569
F

2) Sensitivity ananlysis

The Group’s exposure to foreign currency risk arises from the translation of the foreign currency exchange gains and losses on cash and cash equivalents, trade and other receivables, financial assets at fair value through other comprehensive income, loans and borrowings; and trade and other payables that are denominated in foreign currency.

A strengthening (weakening) of 1% of the NTD against the USD, EUR, JPY and CNY as of December 31, 2021 and 2020 would have increased (decreased) the equity by $13,279 thousand and 14,925 thousand. This analysis is based on foreign currency exchange rate variances that the Group considered to be reasonably possible at the reporting date. The analysis assumes that all other variables remain constant and ignores any impact of forecasted sales and purchases.

3) Foreign exchange gain and loss on monetary items

Since the Group has many kinds of functional currency, the information on foreign exchange loss on monetary items is disclosed by total amount. For years 2021 and 2020, foreign exchange loss (including realized and unrealized portions) amounted to $13,283 thousand and 58,375 thousand respectively.

(iv) Interest rate analysis

Please refer to the notes on liquidity risk management and interest rate exposure of the Group's financial assets and liabilities.

(Continued)

Unitech Printed Circuit Board Corporation and Subsidiaries Notes to the Consolidated Financial Statements

The following sensitivity analysis is based on the exposure to the interest rate risk of derivative and non derivative financial instruments on the reporting date. Regarding assets with variable interest rates, the analysis is based on the assumption that the amount of assets outstanding at the reporting date was outstanding throughout the year. The rate of change is expressed as the interest rate increases or decreases by 1% when reporting to management internally, which also represents the Group management's assessment of the reasonably possible interest rate change.

If the interest rate had increased or decreased by 1% basis points, the Group’s net loss would have increased or decreased by $84,453 and 76,139 thousand for 2021 and 2020 with all other variable factors remaining constant. This is mainly due to the Group’s borrowing at variable rates and investment in variable-rate bills.

(v) Other market price risk

For the years ended December 31, 2021 and 2020, the sensitivity analyses for the changes in the securities price at the reporting date were performed using the same basis for the profit and loss as illustrated below:

For the years ended December 31,	For the years ended December 31,	For the years ended December 31,	For the years ended December 31,
2021	Net income - -	2020
Other comprehensive income after tax $ 5,475 $ (5,475)		Other comprehensive income after tax 6,090 (6,090)	Net income
			-
			-

(vi) Fair value of financial instruments
1) Fair value hierarchy

The fair value of financial assets and liabilities at fair value through profit or loss, financial instruments used for hedging, and financial assets at fair value through other comprehensive income is measured on a recurring basis. The carrying amount and fair value of the Group’ s financial assets and liabilities, including the information on fair value hierarchy were as follows; however, except as described in the following paragraphs, for financial instruments not measured at fair value whose carrying amount is reasonably close to the fair value, and lease liabilities, disclosure of fair value information is not required:

(Continued)

Unitech Printed Circuit Board Corporation and Subsidiaries Notes to the Consolidated Financial Statements

	December 31, 2021	December 31, 2021	December 31, 2021
Book Value $ 59,073 $ 547,536 612,449 5,510 4,106,720 4,687 594 4,134 4,734,094 $ 5,340,703 $ 8,882,590 2,771,734 905,757 421,929 12,982,010 $ 12,982,010		Fair value
	Level 1 Level 2 Level 3 59,073 - - 452,200 - 95,336 - - - - - - - - - - - - - - - - - - - - - 511,273 - 95,336 - - - - - - - - - - - - - - - - - - December 31, 2020			Total
				59,073
				547,536
				- - - - - -
				-
				606,609
				- - - -
				-
				-

Book Value $ 609,040 1,065,212 5,922 4,002,735 1,869 571 52,170 5,128,479 $ 5,737,519		Fair value
	Level 1 513,704 - - - - - - - 513,704	Level 2 - - - - - - - - -	Level 3 95,336 - - - - - - - 95,336	Total
				609,040
				- - - - - -
				-
				609,040

(Continued)

Unitech Printed Circuit Board Corporation and Subsidiaries Notes to the Consolidated Financial Statements

	December 31, 2020	December 31, 2020	December 31, 2020
Book Value $ 7,964,729 69,991 3,037,371 997,369 506,788 12,576,248 $ 12,576,248		Fair value
	Level 1 - - - - - - -	Level 2 - - - - - - -	Level 3 - - - - - - -	Total
				- - - - -
				-
				-

2) Valuation techniques for financial instruments not measured at fair value

The Group’ s valuation techniques and assumptions used for financial instruments not measured at fair value are as follows:

a) Financial assets measured at amortized cost

If the quoted prices in active markets are available, the market price is established as the fair value. However, if quoted prices in active markets are not available, the estimated valuation or prices used by competitors are adopted.

b) Financial assets and financial liabilities measured at amortized cost

If there is quoted price generated by transactions, the recent transaction price and quoted price data is used as the basis for fair value measurement. However, if no quoted prices are available, the discounted cash flows are used to estimate fair values.

3) Quantified information on significant unobservable inputs (Level 3) used in fair value measurement

The Group’s financial instruments that use Level 3 inputs to measure fair value include “financial assets measured at fair value through profit or loss – debt investments” and “fair value through other comprehensive income – equity investments”.

(Continued)

Unitech Printed Circuit Board Corporation and Subsidiaries Notes to the Consolidated Financial Statements

Quantified information of significant unobservable inputs was as follows:

Item Financial assets at fair value through other comprehensive income equity investments without an active market	Valuation technique Comparable public and company method	Significant unobservable inputs Inter-relationship between significant unobservable inputs and fair value measurement ‧Price-Earnings ratio (2021.12.31:1.30%、 2020.12.31:1.33%) ‧Lack of market liquidity discount rate (2021.12.31:12.78%、 2020.12.31: 18.55%) ‧Higher the rate, higher the fair value ‧Lack of market liquidity, the higher the discount, the lower the fair value

4) Fair value measurements in Level 3 – sensitivity analysis of reasonably possible alternative assumptions.

The Group's measurement on the fair vlaue of financial instruments may change if different valuation models or inputs are used.For fair value measuerments in Level 3, changing one or more of the assumptions would have the following effects on other comprehensive income:

comprehensive income:
December 31, 2021 Financial assets fair value through other comprehensive income December 31, 2020 Financial assets fair value through other comprehensive income	Input Value Multiplier Equity Multiplier Value Multiplier Equity Multiplier	Change in Other Compehase income A favour unfavour 5% $ 82,000 95,940 5% $ 56,580 56,580 5% $ 75,440 76,260 5% $ 59,040 59,040	Other Compehase income
				unfavour
				95,940
				56,580
				76,260
				59,040

The favorable and unfavorable effects represent the changes in fair value, and fair value is based on a variety of unobservable inputs calculated using a valuation technique. The analysis above only reflects the effects of changes in a single input, and it does not include the interrelationships with another input.

(x) Financial risk management
(i) Overview

The Group have exposures to the following risks from its financial instruments:

1) credit risk
2) liquidity risk
3) market risk

(Continued)

Unitech Printed Circuit Board Corporation and Subsidiaries Notes to the Consolidated Financial Statements

The following likewise discusses the Group’s objectives, policies and processes for measuring and managing the above mentioned risks. For more disclosures about the quantitative effects of these risks exposures, please refer to the respective notes in the accompanying consolidated financial statements.

(ii) Structure of risk management

The Group’s risk management policies are established to identify and analyze the risks faced by the Group, to set appropriate risk limits and controls, and to monitor risks and adherence to limits. Risk management policies and systems are reviewed regularly to reflect changes in market conditions and the Group’s activities. The Group, through its training and management standards and procedures, aims to develop a disciplined and constructive control environment in which all employees understand their roles and obligations.

The Group Audit Committee oversees how management monitors compliance with the Group’ s risk management policies and procedures and reviews the adequacy of the risk management framework in relation to the risks faced by the Group. The Group Audit Committee is assisted in its oversight role by Internal Audit. Internal Audit undertakes both regular and ad hoc reviews of risk management controls and procedures, the results of which are reported to the Audit Committee.

(iii) Credit risk

Credit risk is the risk of financial loss to the Group if a customer or counterparty to a financial instrument fails to meet its contractual obligations, and arises principally from the Group’s receivables from customers and investments in debt securities.

The main potential credit risk of the Group is derived from financial products, such as accounts receivable, but the main sales target are world-renowned manufacturers. In order to reduce the credit risk, the merged company also regularly evaluates the customer’s operating conditions and the possibility of recovery for period receivables. Because the customer has a large customer base and has a good reputation of profit and credit history, there is no risk of concentration on the credit risk of the consolidated company's accounts receivable.

1) Investments

The exposure to credit risk for the bank deposits, fixed income investments, and other financial instruments is measured and monitored by the Group’s finance department. The Group only deals with banks, other external parties, corporate organizations, government agencies and financial institutions with good credit rating. The Group does not expect any counterparty above fails to meet its obligations hence there is no significant credit risk arising from these counterparties.

2) Guarantees

The Group’s policy is to provide financial guarantees only to wholly owned subsidiaries. At December 31, 2021, no other guarantees were outstanding (2020: none).

(Continued)

Unitech Printed Circuit Board Corporation and Subsidiaries Notes to the Consolidated Financial Statements

(iv) Liquidity risk

The Group manages sufficient cash and cash equivalents so as to cope with its operations and mitigate the effects of fluctuations in cash flows. The Group’ s management supervises the banking facilities and ensures compliance with the terms of loan agreements.

Loans and borrowings from the bank form an important source of liquidity for the Group. As of December 31, 2021 and 2020, the Group’s unused credit line were amounted to $5,137,242 and 6,517,645 thousand, respectively.

(v) Market risk

Market risk is the risk that changes in market prices, such as foreign exchange rates, interest rates, and equity prices, will affect the Group’s income or the value of its holdings of financial instruments. The objective of market risk management is to manage and control market risk exposures within acceptable parameters, while optimizing the return.

1) Currency risk

The Group is exposed to currency risk on sales, purchases, and borrowings that are denominated in a currency other than the respective functional currencies of the Group’s entities, primarily the NTD, US Dollar (USD), and Chinese Yuan (CNY). The currencies used in these transactions are the NTD, USD and CNY.

For the company that use the NTD as their functional currency, all borrowed CNY and U.S. dollar loans will use forward contracts with the same maturity date as the loan repayment date for hedging.

Loan interest is priced in the currency of the principal of the loan. Generally speaking, the currency of the borrowing is the same as the currency of the cash flow generated by the operation of the consolidated company, mainly in the NTD, except for CNY and US dollars. In this case, economic hedging is provided without the need to sign derivatives, so hedging accounting is not adopted.

Regarding other monetary assets and liabilities denominated in foreign currencies, when short-term imbalance occurs, the Group buys or sells foreign currencies at real-time exchange rates to ensure that the net risk of risk remains at an acceptable level.

2) Interest rate risk

This is achieved partly by entering into fixed-rate instruments and partly by borrowing at a floating rate and using interest rate swaps as hedges of variability in cash flows attributable to movements in interest rates.

3) Other market price risk

The Group is exposed to equity price risk due to the investments in equity securities. This is a strategic investment and is not held for trading. The Group does not actively trade in these investments as the management of the Group minimizes the risk by holding different investment portfolios.

(Continued)

Unitech Printed Circuit Board Corporation and Subsidiaries Notes to the Consolidated Financial Statements

(y) Capital management

The Group’s objectives for managing capital to safeguard the capacity to continue to operate, to continue to provide a return on shareholders, to maintain the interest of other related parties, and to maintain an optimal capital structure to reduce the cost of capital.

As of December 31, 2021 the Group’s capital management strategy is consistent with the prior year as of December 31, 2020 . The Group’s debt-to-equity ratio at the end of the reporting period as of December 31, 2021 and 2020 are as follows:

Total liabilities Less: cash and cash equivalents Net debt Total equity Debt-to-equity ratio at December 31	December 31, 2021 $ 13,568,846 (612,449) $ 12,956,397 $ 9,493,243 % 136.48	December 31, 2020 14,162,497 (1,065,212) 13,097,285 9,671,800 % 135.42
	$ $ $

(z) Investing and financing activities not affecting current cash flow

Non-cash changes	December 31, 2021 7,343,261 1,539,329 421,929 9,304,519 December 31, 2020	December 31, 2021
Other
- - 8,326		7,343,261 1,539,329 421,929
8,326		9,304,519
	7,044,733 919,996 506,788
	8,471,517

(Continued)

Unitech Printed Circuit Board Corporation and Subsidiaries Notes to the Consolidated Financial Statements

(7) Related-party transactions

(a) Parent company and ultimate controlling company

The company is both the parent company and the ultimate controlling party of the Group.

(b) Names and relationship with related parties

The followings are entities that have had transactions with related party during the periods covered in the consolidated financial statements.

in the consolidated financial statements.
Name of related party	Relationship with the Group
CHANG, YUAN-MING	President of the company
CHEN, CHENG-HSIUNG	Director of the company
Fulltech Fiber Glass Corp.	An associate
Ideal Bike Corporation	The entity’s president is the second immediate
	family of the president of the Company
Unitech Printed Circuit Humanities and	The entity’s president is the first immediate family
Education Foundation	of the president of the Company
Taiwan Federation of commerce	The entity’s chairman is the first immediate family
	of the president of the Company
Pan-Pacific & Southeast Asia Women’s	The entity’s chairman is the first immediate family
Association Ppseawa Taiwan R.O.C.	of the president of the Company
TESD Foundation	The entity’s president is the first immediate family
	of the president of the Company
Taiwan Coalition of Service Industries	The entity’s chairman is the president of the
	Company
The Business Development Foundation on the	The entity’s Vice-president is the president of the
Chinese Straits	Company

(c) Significant transactions with related parties
(i) Loans and guarantee to Related Parties

December 31, 2021 and 2020, the related parties had provided a guarantee for loans taken out by the Group.

(ii) As of December 31, 2021 and 2020, other receivables raised due to collection and payment and various expense between the Group and related parties is $594 thousand and 571 thousand respectively which classified into on account other receivables-related parties.
(iii) As of December 31, 2021 and 2020, donation to associates is $4,300 thousand and 4,600 thousand respectively, which are classified into under the item “ Selling expenses and administrative expenses ”.

(Continued)

Unitech Printed Circuit Board Corporation and Subsidiaries Notes to the Consolidated Financial Statements

(d) Key management personnel compensation

Key management personnel compensation comprised:

Short-term employee benefits

2021 $ 58,637	2020
	67,081

(8) Pledged assets

The carrying values of pledged assets were as follows:

Pledged assets	Object	December 31, 2021 $ 407,228 1,712,050 135,234 2,935,996 1,655 - 46,491 181,300 $ 5,419,954	December 31, 2020
Land Building and construction Right-of-used assets Machinery and equipments Other Assets Certificate of deposit (Note 1) Certificate of deposit (Note 2) Stock (Note 3)	Short-term and long-term borrowings Short-term and long-term borrowings Long-term borrowings Long-term borrowings Long-term borrowings Domestic (Foreign) sight L/C endorsement Bureau of Costoms’endorsement, shipping, Center deposits, Letzer Industrial Park deposit and foreign workers’deposit, Loung Te Industrial Park deposit Short-term borrowings		407,228 1,833,072 138,885 3,302,485 - 48,000 55,733 165,400
			5,950,803

“ ” (Note1) Classified into the account of Other financial assets-current .

“ ” (Note2) Classified into the account of Refundable Deposits .

“ ” (Note3) Classified into the account of Investment accounted for using equity method .

(9) Significant commitments and contingencies:

(a) As of December 31, 2021, the total amount of the significant machinery and equipment contracts signed by the Group was approximately $633,155 thousand, and the payment of $493,612 thousand was classified into “Property, Plant and Equipment” and “Prepaid Equipment”.
(b) The Group’s outstanding standby letter of credit are as follows:

USD JPY EUR	December 31, 2021 $ 569 $ 13,920 $ 264	December 31, 2020 623 96,540 264

(Continued)

Unitech Printed Circuit Board Corporation and Subsidiaries Notes to the Consolidated Financial Statements

(c) The Group and other 9 companies that are also shareholders of Capital Securities Corp. (hereinafter referred to as Capital Securities), entered into an agreement with Capital Securities Corp. (hereinafter referred to as Capital Securities) stipulating that the issue of investor compensation for the dispute over the sale of GVEC private investment products within $173,000 thousand by employees of Jinding Securities in 2005 will be handled by Capital Securities Corp. as a priority; the rest and risks will be dealt with by the signing of the agreement The book company is responsible for handling. However, the content and scope of "responsible processing" are not clearly defined, and the relevant cases are still in progress. Therefore, the Group is unlikely to be liable for compensation and should not have a significant impact on the company's shareholders' equity.

(10) Losses Due to Major Disasters:None

(11) Subsequent Events:None

(12) Other:

(a) A summary of current-period employee benefits, depreciation, and amortization, by function, is as follows:

By funtion By item	2021	2021		2020	2020	2020
	Cost of Sale	Operating Expense	Total	Cost of Sale	Operating Expense	Total
Employee benefits
Salary	2,853,800	621,785	3,475,585	2,885,990	994,580	3,880,570
Labor and health insurance	286,261	50,079	336,340	279,707	50,157	329,864
Pension	154,404	44,100	198,504	131,662	39,147	170,809
Remuneration of directors	-	5,525	5,525	-	5,485	5,485
Others	138,378	64,904	203,282	125,794	57,621	183,415
Depletion	1,269,591	137,817	1,407,408	1,432,578	83,257	1,515,835
Amortization	19,409	16,301	35,710	5,153	17,288	22,441

(Continued)

Unitech Printed Circuit Board Corporation and Subsidiaries Notes to the Consolidated Financial Statements

(13) Other disclosures:

(a) Information on significant transactions:

The following is the information on significant transactions required by the “Regulations Governing the Preparation of Financial Reports by Securities Issuers” for the Group:

(i) Loans to other parties:

(i) Loans to other parties:	(i) Loans to other parties:	(i) Loans to other parties:	(i) Loans to other parties:	(i) Loans to other parties:	(i) Loans to other parties:
						(In Thousands of New Taiwan Dollars)
Number	Name of lender	Name of borrower	Account name	Related party	Highest balance of financing to other parties during the period	Ending balance	Actual usage amount during the period	Range of interest rates during the period	Purposes of fund financing for the borrower	Transaction amount for business between two parties	Reasons for short-term financing	Allowance for bad debt	Collateral		Individual funding loan limits	Maximum limit of fund financing	Note
													Item	Value
1	Shanghai Unitech Electronics Co., Ltd. S U E ( C	hanghai nitech lectronics Nontong) o., Ltd.	Other receivable- related parties	Yes	919,491	916,052	916,052	4.0%	2	-	General operating and return the loan	-	-	-	3,769,571	3,769,571	Note

Note: This transaction has been eliminated when the consolidated financial report is prepared.

Note 1: The subsidiary directly or indirectly holds 100% of the voting shares to engage in capital lending between foreign companies, subject to the limit of 100% of the company's net worth.

Note 2: The filling method of capital loan and nature is as follows:

(1) Fill in 1 for those who have business dealings.
(2) Fill in 2 if there is a need for short-term financing.

(ii) Guarantees and endorsements for other parties:

								(In Thousands of New Taiwan Dollars)	(In Thousands of New Taiwan Dollars)	(In Thousands of New Taiwan Dollars)	(In Thousands of New Taiwan Dollars)	(In Thousands of New Taiwan Dollars)	(In Thousands of New Taiwan Dollars)
No.	Name of guarantor	Counter-party of guarantee and endorsement		Limitation on amount of guarantees and endorsements for a specific enterprise	Highest balance for guarantees and endorsements during the period	Balance of guarantees and endorsements as of reporting date	Actual usage amount during the period	Property pledged for guarantees and endorsements (Amount)	Ratio of accumulated amounts of guarantees and endorsements to net worth of the latest financial statements	Maximum amount for guarantees and endorsements	Parent company endorsements/ guarantees to third parties on behalf of subsidiary	Subsidiary endorsements/ guarantees to third parties on behalf of parent company	Endorsements/ guarantees to third parties on behalf of companies in Mainland China
		Name	Relationship with the Company
0	The Company	Unitech BVI	2	4,746,621	1,069,150	896,960	314,168	-	% 9.45	7,594,594	Y	N	N
0	The Company	Shanghai Unitech Electronics Co., Ltd.	2	4,746,621	599,235	415,200	415,200	-	% 4.37	7,594,594	Y	N	Y
0	The Company	Shanghai Unitech Electronics (Nontong) Co., Ltd.	2	4,746,621	838,325	800,537	645,684	-	% 8.43	7,594,594	Y	N	Y
1	Shanghai Unitech Electronics Co., Ltd.	Shanghai Unitech Electronics (Nontong) Co., Ltd.	2	1,884,786	2,610,960	1,694,904	1,694,904	-	% 44.96	7,539,142	Y	N	Y

Note1: The numbers filled in for the loans provided by the Company or subsidiaries are as follows:

(a)The Company is ‘0’.
(b)The subsidiaries are numbered in order starting from ‘1’.
Note2: 7 forms of relationships in which corporate guarantees exist are defined as follows:
(a) Entities have business relations with Company.
(b) The Company directly or indirectly holds more than 50% of voting shares of its subsidiaries.
(c) Investees directly or indirectly own more than 50% of voting shares of the Company
(d) The Company directly or indirectly holds 90% of voting shares of its subsidiaries.
(e) Entities have construction contract agreements with the Company.
(f) The reason for the Company jointly invested in the entities is to provide proportionate endorsements.
(g) The Company has contractual pre sold home agreements with its related parties under the Consumer Protection Law.

Note3: The Company’s aggregate amount allows endorsement or guarantee that does not exceed 50% of its net worth in December 31, 2021. Note4: The Company’s aggregate amount allows endorsement or guarantee that does not exceed 80% of its net worth in December 31, 2021. Note5: The Subsidiaries aggregate amount allows endorsement or guarantee that does not exceed 200% of its net worth in December 31, 2021.

(Continued)

Unitech Printed Circuit Board Corporation and Subsidiaries Notes to the Consolidated Financial Statements

(iii) Securities held as of December 31, 2021 (excluding investment in subsidiaries, associates and joint ventures):

				(Amounts in Thousands of New Taiwan Dollars/Shares)	(Amounts in Thousands of New Taiwan Dollars/Shares)	(Amounts in Thousands of New Taiwan Dollars/Shares)	(Amounts in Thousands of New Taiwan Dollars/Shares)	(Amounts in Thousands of New Taiwan Dollars/Shares)	(Amounts in Thousands of New Taiwan Dollars/Shares)
Name of holder	Category and name of security	Relationship with company	Account title	Ending balance				Highest Percentage of ownership (%)	Note
				Shares/Units (thousands)	Carrying value	Percentage of ownership (%)	Fair value
The Company	Ideal Bike Corporation	Related party	Financial assets at FVTOCI-noncurrent	34,000	452,200	% 11.35	452,200	% 13.98
DA TAI nvestment Co., Ltd.	ANCAD, INC	-	"	26	1,700	% 2.02	1,700	% 2.02
DA TAI nvestment Co., Ltd.	Taiwan First Biotechnology Inc	-	"	5,306	93,636	% 4.00	93,636	% 4.00
DA-TAI nvestment Co., Ltd.	JIH SUN MONEY MARKET FUND	-	Financial assets at fair value through profit or loss – current	3,942	59,073	% -	59,073	% -

(iv) Individual securities acquired or disposed of with accumulated amount exceeding the lower of NT$300 million or 20% of the capital stock:

Name of company	Category and name of security	Account name	Name of counter-party	Relationship with the company	Beginning Balance	Beginning Balance	Purchases	Purchases	Sales	Sales	Sales	Sales	Ending Balance	Ending Balance
					Shares	Amount	Shares	Amount	Shares	Price	Cost	Gain (loss) on disposal	Shares	Amount
Shanghai Unitech Electronics Co., Ltd.	Structured deposits	Financial assets at fair value through profit or loss – current	Bank of communications	None	-	-	-	187,500	-	187,958	187,500	458	-	-
Shanghai Unitech Electronics Co., Ltd.	Structured deposits	Financial assets at fair value through profit or loss – current	Bank of communications	None	-	-	-	37,500	-	37,596	37,500	96	-	-
Shanghai Unitech Electronics Co., Ltd.	Structured deposits	Financial assets at fair value through profit or loss – current	Bank of communications	None	-	-	-	25,000	-	25,039	25,000	39	-	-
Shanghai Unitech Electronics Co., Ltd.	Structured deposits	Financial assets at fair value through profit or loss – current	Bank of communications	None	-	-	-	16,000	-	16,031	16,000	31	-	-

Note: The transaction currency is CNY (thousands)

(v) Acquisition of individual real estate with amount exceeding the lower of NT$300 million or 20% of the capital stock: None.
(vi) Disposal of individual real estate with amount exceeding the lower of NT$300 million or 20% of the capital stock: None.

(Continued)

Unitech Printed Circuit Board Corporation and Subsidiaries Notes to the Consolidated Financial Statements

(vii) Related-party transactions for purchases and sales with amounts exceeding the lower of NT$300 million or 20% of the capital stock:

(In Thousands of New Taiwan Dollars)

Name of company	Related party	Nature of relationship	Transaction details	Transaction details	Transaction details	Transaction details	Transactions with terms different from others	Transactions with terms different from others	Notes/Accounts receivable (payable)	Notes/Accounts receivable (payable)	Note
			Purchase/ Sale	Amount	Percentage of total purchases/sales	Payment terms	Unit price	Payment terms	Ending balance	Percentage of total notes/accounts receivable (payable)
The Company	Shanghai Unitech Electronics (Nontong) Co., Ltd.	Subsidiary to parent	Purchase	2,841,037	% 37.72	The payment terms are based on the loose funds.	-	The payment terms are based on the loose funds.	(973,031)	(35.50)%	None
Shanghai Unitech Electronics (Nontong) Co., Ltd.Ltd.	The Company	The parent Company	Sale	(2,841,038)	% (65.92)	The payment terms are based on the loose funds.	-	The payment terms are based on the loose funds.	973,031	64.37%	None

(viii) Receivables from related parties with amounts exceeding the lower of NT$100 million or 20% of the capital stock:

(In Thousands of New Taiwan Dollars)

Counter-party	Nature of relationship	Ending balance	Turnover rate	Overdue	Overdue	Amounts received in subsequent period	Allowance for bad debts	Note
				Amount	Action taken
The Company	The parent Company	973,031	3.11	-	-	698,682 (CNY20,320) (USD21,999)	-	Note
Shanghai Unitech Electronics (Nontong) Co., Ltd.	Subsidiary to parent	923,693	-	-	-	8,629 (CNY1,947)	-	Note

Note: The inter company transactions have been eliminated in the consolidated statements.

(ix) Trading in derivative instruments: None.
(x) Business relationships and significant intercompany transactions:

(In Thousands of New Taiwan Dollars)

				(In Thousands of New Taiwan Dollars)	(In Thousands of New Taiwan Dollars)	(In Thousands of New Taiwan Dollars)	(In Thousands of New Taiwan Dollars)
No.	Name of company	Name of counter-party	Nature of relationship (Note 1)	Intercompany transactions
				Account name	Amount	Trading terms	Percentage of the consolidated net revenue or total assets
0	The Company	Shanghai Unitech Electronics (Nontong) Co., Ltd.	1	Sales	14,648	The payment terms are based on the loose funds.	0.11%
0	The Company	Shanghai Unitech Electronics (Nontong) Co., Ltd.	1	Accounts receivable	3,376	The payment terms are based on the loose funds.	0.01%
1	Shanghai Unitech Electronics Co., Ltd.	Shanghai Unitech Electronics (Nontong) Co., Ltd.	3	Other Receivaable	923,693	The payment terms are based on the loose funds.	4.01%
1	Shanghai Unitech Electronics Co., Ltd.	Shanghai Unitech Electronics (Nontong) Co., Ltd.	3	Other Revenue	67,447	The payment terms are based on the loose funds.	0.50%
1	Shanghai Unitech Electronics Co., Ltd.	Shanghai Unitech Electronics (Nontong) Co., Ltd.	3	Sales	828	The payment terms are based on the loose funds.	0.01%
1	Shanghai Unitech Electronics Co., Ltd.	Shanghai Unitech Electronics (Nontong) Co., Ltd.	3	Accounts Receivable	936	The payment terms are based on the loose funds.	-%

(Continued)

Unitech Printed Circuit Board Corporation and Subsidiaries Notes to the Consolidated Financial Statements

No.	Name of company	Name of counter-party	Nature of relationship (Note 1)	Intercompany transactions	Intercompany transactions	Intercompany transactions	Intercompany transactions
				Account name	Amount	Trading terms	Percentage of the consolidated net revenue or total assets
1	Shanghai Unitech Electronics Co., Ltd.	Shanghai Unitech Electronics Co., Ltd.	3	Interest Revenue	22,315	The payment terms are based on the loose funds.	0.17%
2	Shanghai Unitech Electronics (Nontong) Co., Ltd.	The Company	2	Sales	2,841,037	The payment terms are based on the loose funds.	21.04%
2	Shanghai Unitech Electronics (Nontong) Co., Ltd.	The Company	2	Accounts receivable	973,031	The payment terms are based on the loose funds.	4.22%
2	Shanghai Unitech Electronics (Nontong) Co., Ltd.	Shanghai Unitech Electronics Co., Ltd.	3	Sales	845	The payment terms are based on the loose funds.	0.01%
3	Unitech BVI	Unitech Electronics International (HK) Limited	3	Other Receivaable	2,052	The payment terms are based on the loose funds.	0.01%

Note 1: Company numbering as follow: (1). Parent company 0 (2). Subsidiaries starting from 1. Note 2: Relationship: (1). Transaction between the Parent Company and the subsidiary.

(2). Transaction between the subsidiary and the Parent Company. (3). Transaction between the subsidiary and the subsidiary. Note 3: Only disclouse sales, revenues and receivables.

(b) Information on investees:

The following is the information on investees for the years ended December 31, 2021 (excluding information on investees in Mainland China):

(Unit: thousand shares)

Name of investor	Name of investee	Location	Main businesses and products	Original investment amount	Original investment amount	Balance as of December 31, 2021	Balance as of December 31, 2021	Balance as of December 31, 2021	Highest Percentage of wnership	Net income (losses) of investee	Share of profits/losses of investee	Note
				December 31, 2021	December 31, 2020	Shares (thousands)	Percentage of wnership	Carrying value
The Company	Unitech BVI	British Virgin Islands	Reinvestment	2,414,937	2,414,937	3.75	% 100.00	3,556,522	% 100.00	1,212,957	1,219,912	1
The Company	DA-TAI Investment Co., Ltd.	Taiwan	General investment	820,019	820,019	82,000	% 100.00	1,212,906	% 100.00	84,199	84,199	1
The Company	Fulltech Fiber Glass Corp.	Taiwan	Manufacturing of glass and glass products	-	37,632	-	% -	-	% 0.61	614,208	420	2
The Company	Unitech Electronics International (HK)Limited	Hong Kong	Reinvestment	153,980	153,980	5,000	% 6.10	216,983	% 6.10	1,294,995	78,963	1
DA-TAI Investment Co., Ltd.	Fulltech Fiber Glass Corp.	Taiwan	Manufacturing of glass and glass products	600,684	600,684	57,734	% 13.47	1,047,217	% 13.47	614,208	84,150	-
Unitech BVI	Unitech Electronics International (HK)Limited	Hong Kong	Reinvestment	2,480,927	2,480,927	77,000	% 93.90	3,861,468	% 93.90	1,294,995	1,216,032	1

Note1: The intercompany transactions have been eliminated from consolidation. Note2: The Company disposed all investment on July 19,2021.

(Continued)

Unitech Printed Circuit Board Corporation and Subsidiaries Notes to the Consolidated Financial Statements

(c) Information on investment in mainland China:

(i) The names of investees in Mainland China, the main businesses and products, and other information:

(In Thousands of New Taiwan Dollars)

Name of investee	Main businesses and products	Total amount of paid-in capital	Method of investment	Accumulated outflow of investment from Taiwan as of January 1, 2020	Investment flows	Investment flows	Accumulated outflow of investment from Taiwan as of December 31, 2021	Net income (losses) of the investee	Percentage of ownership	Highest percentage of ownership	Investment income (losses) (Note2 and 3)	Book value (Note3)	Accumu-lated remittance of earnings in current period
					Outflow	Inflow
Shanghai Unitech Electronics Co., Ltd.	Manufacturing and sale of PCB	2,474,777	( 2 )	2,480,927	-	-	2,480,927	1,316,769	100.00%	100.00%	1,316,769	3,769,571	-
Shanghai Unitech Electronics (Nontong) Co., Ltd.	Manufacturing and sale of PCB	3,916,480	( 3 )	367,320 (Note4)	-	-	367,320 (Note4)	(255,192)	100.00%	100.00%	(255,192)	3,369,261	-

(ii) Limitation on investment in Mainland China:

Company Name	Accumulated Investment in Mainland China as of December 31, 2021 (Note 4)	Investment Amounts Authorized by Investment Commission, MOEA (Note 5)	Upper Limit on Investment (Note 6)
The Company	2,903,521 (USD 104,896 )	2,903,521 (USD 104,896 )	5,695,945 -

Note1: Three ways to investment in mainland China

(1) Direct investment

(2) Indirect investment through holding companies

(3) Others

Note2: Amount was recognized based on audited financial statements.

Note3: The intercompany transactions have been eliminated from consolidation.

Note4: Included USD 7,000 thousand of capital increased out of earnings.

Note5: As of December 31, 2021, exchange rate USD/NTD 1:27.68.

Note6: Calulated based on 60% of hte Company's net worth.

(iii) Significant transactions:

The significant inter-company transactions with the subsidiary in Mainland China, which were eliminated in the preparation of consolidated financial statements, are disclosed in “Information on significant transactions”.

(d) Major shareholders:None

Major shareholders:None	Major shareholders:None	Major shareholders:None
(Unit: share)
Shareholding Shareholder’s Name	Shares	Percentage
GUO-LING INVESTMENT CO.LTD	36,950,280	% 5.96

(Continued)

Unitech Printed Circuit Board Corporation and Subsidiaries Notes to the Consolidated Financial Statements

(14) Segment information:

(a) Information about reportable segments and their measurement and reconciliations

The Group’s operating segment information and reconciliation are as follows:

Revenue: Revenue from external customers Intersegment revenues Total revenue Reportable segment profit or loss Reportable segment assets Revenue: Revenue from external customers Intersegment revenues Total revenue Reportable segment profit or loss Reportable segment assets		2021	2021	Total 13,501,569 - 13,501,569 91,398 23,062,089 Total 14,386,972 - 14,386,972 (1,583,127) 23,834,297
	Domestic PCB and other $ 11,854,808 14,648 $ 11,869,456 $ (1,566,862) $ 20,596,420	Oversea PCB Reconciliation and elimination 1,646,761 - 2,867,763 (2,882,411) 4,514,524 (2,882,411) 1,658,260 - 8,436,349 (5,970,680) 2020
	Domestic PCB and other $ 13,040,613 17,379 $ 13,057,992 $ (1,231,392) $ 20,159,836	Oversea PCB 1,346,359 1,784,258 3,130,617 (351,735) 8,131,245	Reconciliation and elimination - (1,801,637) (1,801,637) - (4,456,784)

(Continued)

Unitech Printed Circuit Board Corporation and Subsidiaries Notes to the Consolidated Financial Statements

(b) Geographic information

In presenting information on basis of geography, segment revenue on the geographical location of customers and segment assets are based on the geographical location of the assets.

Geographical information Revenue from external customers: Taiwan China United States Other countries Non-current Assets: Taiwan China Total	2021 $ 654,217 4,367,959 3,445,156 5,034,237 $ 13,501,569 $ 8,053,190 5,757,214 $ 13,810,404	2020
		1,383,306 5,393,380 3,097,146 4,513,140
		14,386,972
		8,856,420 5,534,333
		14,390,753

Non-current assets include property,plant and equipment, intangible assets,and other assets,not including financial instruments and deferred tax assets (non-current).

(c) Major customers

A customer of PCB division B customer of PCB division C customer of PCB division Total	2021 $ 786,804 562,917 1,460,147 $ 2,809,868	2020
		2,083,779 2,022,574 1,917,241
		6,023,594

(Continued)

AI assistant

UNITECH — Annual Report 2021

52034_rns_2021-11-15_f2861a92-3a43-4df8-8767-d3d84a18e7b9.pdf

Unitech Printed Circuit Board Corporation and Subsidiaries

Consolidated Financial Statements

Table of contents

Representation Letter

KPMG

Independent Auditors’ Report

Opinion

Basis for Opinion

Key Audit Matters

1. Estimation of impairment of non-financial assets

Description of key audit matter:

How the matter was addressed in our audit:

2. Valuation of Inventories

Description of key audit matter:

How the matter was addressed in our audit:

Other Matter

Responsibilities of Management and Those Charged with Governance for the Consolidated Financial Statements

Auditors’ Responsibilities for the Audit of the Consolidated Financial Statements

KPMG

Notes to Readers

(English Translation of Consolidated Financial Statements Originally Issued in Chinese)

Unitech Printed Circuit Board Corporation and Subsidiaries

Consolidated Balance Sheets

December 31, 2021 and 2020

(English Translation of Consolidated Financial Statements Originally Issued in Chinese) Unitech Printed Circuit Board Corporation and Subsidiaries

Consolidated Statements of Comprehensive Income

For the years ended December 31, 2021 and 2020

(Expressed in Thousands of New Taiwan Dollars , Except for Earnings Per Common Share)

(English Translation of Consolidated Financial Statements Originally Issued in Chinese) Unitech Printed Circuit Board Corporation and Subsidiaries

Consolidated Statements of Changes in Equity

For the years ended December 31, 2021 and 2020

(English Translation of Consolidated Financial Statements Originally Issued in Chinese) Unitech Printed Circuit Board Corporation and Subsidiaries

Consolidated Statements of Cash Flows

For the years ended December 31, 2021 and 2020 (Expressed in Thousands of New Taiwan Dollars)

(English Translation of Consolidated Financial Statements Originally Issued in Chinese) Unitech Printed Circuit Board Corporation and Subsidiaries

Consolidated Statements of Cash Flows

For the years ended December 31, 2021 and 2020

(Expressed in Thousands of New Taiwan Dollars)

Notes to the Consolidated Financial Statements

For the years ended December 31, 2021 and 2020

(1) Company history

(2) Approval date and procedures of the consolidated financial statements:

(3) New standards, amendments and interpretations adopted:

Unitech Printed Circuit Board Corporation and Subsidiaries Notes to the Consolidated Financial Statements

Unitech Printed Circuit Board Corporation and Subsidiaries Notes to the Consolidated Financial Statements

(4) Summary of significant accounting policies:

(a) Statement of compliance

Unitech Printed Circuit Board Corporation and Subsidiaries Notes to the Consolidated Financial Statements

(ii) Functional and presentation currency

Unitech Printed Circuit Board Corporation and Subsidiaries Notes to the Consolidated Financial Statements

Unitech Printed Circuit Board Corporation and Subsidiaries Notes to the Consolidated Financial Statements

(ii) Foreign operations

Unitech Printed Circuit Board Corporation and Subsidiaries Notes to the Consolidated Financial Statements

(f) Cash and cash equivalents

(g) Financial Instruments

(i) Financial assets

Unitech Printed Circuit Board Corporation and Subsidiaries Notes to the Consolidated Financial Statements

Unitech Printed Circuit Board Corporation and Subsidiaries Notes to the Consolidated Financial Statements

Unitech Printed Circuit Board Corporation and Subsidiaries Notes to the Consolidated Financial Statements

6) Derecognition of financial assets

2) Equity instrument

Unitech Printed Circuit Board Corporation and Subsidiaries Notes to the Consolidated Financial Statements

3) Treasury shares

4) Financial liabilities

5) Derecognition of financial liabilities

6) Offsetting of financial assets and liabilities

(h) Inventories

Unitech Printed Circuit Board Corporation and Subsidiaries Notes to the Consolidated Financial Statements

(i) Investment in associates

(j) Property, plant and equipment

(i) Recognition and measurement

(ii) Subsequent expenditure

Unitech Printed Circuit Board Corporation and Subsidiaries Notes to the Consolidated Financial Statements

(k) Leases

Unitech Printed Circuit Board Corporation and Subsidiaries Notes to the Consolidated Financial Statements

(ii) As a lessor

Unitech Printed Circuit Board Corporation and Subsidiaries Notes to the Consolidated Financial Statements

UNITECH Annual Report 2021